JLL says Australia strong as Asia-Pacific revenue rises 15pc in March quarter
JLL said its Australian revenue was likely to remain strong after its US-based parent said Asia-Pacific revenue grew 15.6 per cent in the three months to March.
The local unit of the Chicago-based real estate agency did not disclose absolute figures, but said revenue was up 10 per cent year on year in the first quarter in its retail investments unit and 23 per cent in its capital markets business.
In results reported to the New York Stock Exchange on Friday, local time, JLL said its adjusted EBITDA earnings for the Asia-Pacific region in the three months to March more than tripled to $US9.9 million ($13.1 million) from a year earlier as revenue increased to $US304.7 million from $US263.4 million.
“Growth was highlighted by property and facility management and project and development services business lines and was led by Greater China and India,” the company said.
Group revenue jumped nearly 21 per cent to $US1.6 billion, but expenses also rose and the company’s EBITDA earnings attributable to shareholders fell to $US66.7 million from $US74.1 million a year earlier. Revenue in JLL’s home US market jumped 20 per cent to $US722.8 million.
“More than 70 per cent of fee revenue growth was from organic expansion and reflected strong transactional performance, primarily in the US leasing business, highlighted by New York, Houston and Seattle markets,” the company said.
JLL Australia chief executive Stephen Conry said it was winning more sales mandates – including for QIC Real Estate’s 50 per cent stake in Sydney’s MLC Centre – at a time of great appetite for CBD office assets. Strong leasing markets were also benefiting the business, Mr Conry said.
“We saw a strong start in Q1 for Australia’s office leasing markets,” he said. “Sydney and Melbourne are currently placed at the top of global office market rent expectations in 2017. There was good news for Perth, with the leasing market recovery gathering further momentum, and an improvement in the Brisbane CBD leasing market continued into the first quarter.”
