Investors Too Pessimistic About JLL's Prospects
Despite a tough quarter, we think the commercial real estate broker is undervalued.
Jones Lang LaSalle’s (JLL) second-quarter results demonstrate the dramatic nature of investment volume declines in the commercial real estate industry. Companywide fee revenue for the quarter was $1.2 billion, a 22% decline from the second quarter of 2019. The decline was driven by weak performance from the capital markets and leasing businesses, with outsourced corporate solutions displaying resilience.
The current environment presents significant uncertainty for Jones Lang LaSalle, with the transaction-based nature of many of its business lines amplifying risk. But despite the deterioration in performance, we are maintaining our $168 fair value estimate for the narrow-moat-rated company, as we have already incorporated a period of near-term weakness into our valuation model.
Yousuf Hafuda does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.