Jones Lang LaSalle, one of the world's largest real estate services companies, reported revenue of $903.2 million in the third quarter, up 28 percent from the previous year.
Net income was $34 million, or 76 cents of the share, down from $37 million and 84 cents per share in 2010, but the loss was attributed to acquisition-related expenses. In the third quarter, Chicago-based Jones Lang merged with King Sturge, a large competitor in the United Kingdom, to gain the largest market share in the region, spending $319 on acquisition costs and other one-time items.
Excluding these costs, adjusted net income was up 30 percent to $50 million, or $1.12 per share, up from $38 million, or 86 cents per share in 2010. Analysts had expected earnings of $1.08 per share, according to Reuters.
Our third-quarter results were solid, and we continue to see healthy business pipelines into our seasonally strong fourth quarter, said Colin Dyer, president and CEO of Jones Lang LaSalle, in a statement. While helping our clients keep a careful watch on market conditions, we are extending our winning competitive position with increased market share and superior service delivery.
Revenue was up in all regions, compared to the previous year. The Americas saw a 23 percent in revenue to $379.3 million, up from $309.1 million. Revenue in Europe, the Middle East and Africa increased 46 percent to $247.3 million, up from $169.3, while Asia was up 22 percent to $200.6 million, up from $165 million.
The firm's lines of business include brokering leases, the sale of buildings and debt, known as capital markets, property management, development services and advisor and consulting. The firm's subsidary LaSalle Investment Management, which handles property investments for outside clients, had $59 million in advisory fees in the third quarter, down from $62 million.
Jones Lang's major deals included a renewal and expansion of contracts with HSBC throughout the world, the $143.5 million sale of 1700 Market Street, an office building in Philadelphia, and the sale of the Rolls Building in London for over $480 million. In New York, Jones Lang recently hired leasing broker Mitch Konsker and his team from rival firm Cushman & Wakefield. In the third quarter, Konsker represented Oppenheimer & Co. in a 276,000 square foot lease at 85 Broad Street, the old Goldman Sachs headquarters, in one of the year's biggest leases in the city.
The firm is seeking to become a market leader in emerging markets, particularly Asia, with acquisitions of companies in Indonesia and Singapore, Dyer said in an earnings call on Thursday.
He added that the global leasing market remained positive, with some pullback in the U.S. due to job cuts in the finance industry and government. There may also be softening in rents in Chinese cities, where local investors are wary of the European debt crisis, he said.
Global real estate market fundamentals are probably on a firmer footing, said Dyer, Western leasing markets are relatively tight, with no major weaknesses looming.
Last week, Jones Lang's competitor CBRE Group reported net income of $63.8 million, or 20 cents per share, a 12 percent increase over 2010.
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