JLL predicts coronavirus’ impact to extend past 2020

The brokerage’s NOI fell to $5.3M in Q1 from $21.3M a year ago

TRD NATIONAL /
May.May 05, 2020 12:40 PM
JLL CEO Christian Ulbrich (Ulbrich by JP Yim/Getty Images for Women's Forum of New York)
JLL CEO Christian Ulbrich (Ulbrich by JP Yim/Getty Images for Women’s Forum of New York)

As the coronavirus crisis cripples property sales and leasing, JLL’s latest financials may offer a glimpse of what’s ahead for the first-quarter earnings season.

The commercial brokerage reported a net operating income of $5.3 million during the first three months of 2020, compared to $21.3 million a year ago, Crain’s reported. JLL said global leasing fell 22 percent year over year, and investment in commercial real estate slipped 5 percent.

CEO Christian Ulbrich said on the company’s Tuesday earnings call that the global health crisis will have “significant repercussions” on the economy and real estate that “will go beyond this year.”

JLL’s Asia-Pacific region was hit hardest by the coronavirus pandemic during the first quarter, with revenue falling by 2 percent year over year. Its business in the Americas — which wasn’t shaken by the pandemic until mid-March — saw a 13 percent uptick in revenue.
Overall, the company reported roughly $4.1 billion in revenue for the quarter, up 9 percent from a year ago.

The global brokerage came into 2020 following two strong quarters, which were driven in part by the company’s acquisition of HFF in mid-2019. The revenue growth helped propel JLL’s stock price to a near record-high above $170 per share in January.

Ulbrich said it would take some time for leasing activity to return to normal levels as buyers and sellers “find a new kind of match on price expectations.” [Crain’s] — Dennis Lynch 


Related Articles

arrow_forward_ios
Rendering of the Vignes Street housing project (Credit: Los Angeles County via Urbanize)

LA County and city will develop supportive housing complex in DTLA

LA County and city will develop supportive housing complex in DTLA
Los Angeles County plans to clear several businesses to reopen over the next 10 days

Malls, nail salons, other LA businesses to open in next 10 days

Malls, nail salons, other LA businesses to open in next 10 days
L.A. County will allow breweries and wineries to reopen next week

Cheers: Breweries and wineries can reopen across LA County

Cheers: Breweries and wineries can reopen across LA County
Westfield Century City mall

Mallspats: Unibail-Rodamco sues LA County over retail closures

Mallspats: Unibail-Rodamco sues LA County over retail closures
The Los Angeles County Board of Supervisors

LA County mulls plan to buy motels for homeless housing

LA County mulls plan to buy motels for homeless housing
(iStock)

SoCal home sale prices keep rising

SoCal home sale prices keep rising
Heidi Marston (Twitter, Getty)

LA to phase out hotel program for homeless

LA to phase out hotel program for homeless
City Attorney Mike Feuer, and Dan Yukelson

SoCal landlords file court injunction to end LA’s eviction ban

SoCal landlords file court injunction to end LA’s eviction ban
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...