JLL ‘cautiously optimistic’ on deals pick-up
JLL is remaining optimistic on its outlook for the investment market despite an uplift in revenue from its capital markets business in the second quarter of 2024.
Chief financial officer Karen Brennan said that while its global investment sales revenue had grown by 17% in Q2 2024, the business was “cautiously optimistic” about deals picking up in the remaining months of the year.
JLL’s growth in investment sales outperformed the wider global market which, according to its own research, has seen investment volumes fall by 1% to $155bn (£122bn).
JLL is remaining optimistic on its outlook for the investment market despite an uplift in revenue from its capital markets business in the second quarter of 2024.
Chief financial officer Karen Brennan said that while its global investment sales revenue had grown by 17% in Q2 2024, the business was “cautiously optimistic” about deals picking up in the remaining months of the year.
JLL’s growth in investment sales outperformed the wider global market which, according to its own research, has seen investment volumes fall by 1% to $155bn (£122bn).
EMEA and Asia Pacific saw “modest gains” in investment activity in Q2, said JLL chief executive Christian Ulbrich, while in the US deals activity slowed by 3% year-on-year.
Ulbrich said the growth in JLL’s investment sales revenue was a translation of the green shoots it had talked about earlier this year into “additional client engagements”.
“Investments in this part of our business are generating higher quality leads for our brokers and supporting market growth rates,” said Ulbrich.
Brennan said growth in its capital markets segment, which includes mortgage activity, was evident across most geographies but was led by the UK, Australia and the US. Growth was also mixed across asset classes, she added, but with “notable growth” in offices, industrial and hotels offsetting a decline in residential and retail.
The agent’s capital markets division reported revenue up by 2% over Q2 to $457.6m and up by 4% for the half-year to $835.2m.
Looking ahead, Brennan said: “We are cautiously optimistic for an acceleration in transaction activity in the back half of the year, as macro and geopolitical risks remain key factors in the timing and shape of sustained recovery. With this in mind and given the strong performance in the first half of the year, we are increasing our full-year 2024 adjusted EBIDTA target range to $1bn to $1.2bn.”
Revenue across the whole business in the first six months of the year was up by 10% to $10.7bn, with adjusted EBITDA up by 28% to $433.4m.
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