Weak Capital Markets Weigh on Jones Lang LaSalle’s Fourth-Quarter Results; We Maintain Our $217 FVE

Narrow-moat-rated Jones Lang LaSalle’s fourth-quarter results were weighed down by a weak capital market environment due to higher interest rates and a constrained supply of money. Global direct investment sales volume was down 56% in the fourth quarter, with the Americas down 61%, EMEA down 54%, and Asia-Pacific down 35%. Global office and industrial leasing volumes were also down significantly in the fourth quarter compared with the previous year. Management expects that the investment and leasing volumes will remain under significant pressure in the first half of 2023 with the volumes recovering in the second half of the current year.