Shares of Jones Lang LaSalle Inc. (JLL Quick QuoteJLL - Free Report) — popularly known as JLL — appreciated 0.95% during Monday’s regular trading session on the NYSE after the real estate services company reported stellar results for the fourth quarter of 2021 on the strong rebound in its transaction-based businesses.

JLL reported fourth-quarter adjusted earnings of $8.66 per share, beating the Zacks Consensus Estimate of $6.68. The reported figure was also significantly ahead of the prior-year quarter’s figure of $5.29.

Revenues for the quarter came in at $5.9 billion, surpassing the Zacks Consensus Estimate of $5.5 billion and 22.7% higher than the year-ago quarter’s tally.

JLL’s results reflect the strength in Leasing and Capital markets as well as valuation increases on its strategic technological investments. Apart from this, the quarterly adjusted EBITDA margin, calculated on a fee-revenue basis, was 22.4% (same in the local currency) compared with 21.3% in 2020.

Behind the Headline Numbers

During the December-end quarter, JLL’s Real Estate Services (RES) revenues climbed 22% (23% in the local currency) year over year to $5.78 billion, highlighting broad-based growth across all service lines, and were led by the Leasing and Capital Markets.

In America, revenues and fee revenues came in at $3.66 billion and $1.7 billion, respectively, reflecting a 27% and 56% year-over-year jump. This reflected continued growth in transaction-based service lines. Growth in Leasing was fueled by higher transaction volumes and an increase in the average deal size in the United States, with a strong performance across all sectors, especially the office and industrial sectors. The growth in Capital Markets reflected investment sales nearly doubling year over year, the continued momentum in debt and equity advisory as well as a rise in servicing revenues from the multi-housing business. Property & Facility Management fee revenues were driven by new client wins and the expansion of existing client mandates in Work Dynamics.

Revenues and fee revenues in the EMEA segment came in at $1.1 billion and $574.1 million, up 16% and 21%, respectively, from the year-ago period. This was driven by transaction-based revenues, reflecting the continued recovery in most geographies. The growth in Capital Markets reflected higher deal volumes in investment sales across all sectors, particularly in the industrial and office sectors, compared with 2020. The increase in Leasing revenue marked transaction volume increases, mainly in the office and industrial sectors, and an increase in the average deal size.

In the Asia-Pacific segment, revenues and fee revenues came in at $1.0 billion and $364.7 million, respectively, marking a year-over-year increase of 11% and 19%. This was driven by the rebound in transaction-based revenues. Also, business growth continued in Valuation Advisory, mainly in Australia, resulting in the fee revenue increase in Advisory, Consulting and Other.

Revenues and fee revenues in the LaSalle segment increased 53% and 54% year over year to $163.3 million and $156.0 million, respectively. This was driven by higher incentives and advisory fees.

At the end of 2021, real estate assets under management were $76.6 billion, up 3% from the last quarter end, reflecting acquisitions, net valuation increases, partially offset by dispositions and withdrawals and foreign currency decreases.

Liquidity

JLL exited 2021 with cash and cash equivalents of $593.7 million, up from $574.3 million as of Dec 31, 2020. Additionally, as of Dec 31, 2021, the company’s net debt amounted to $375.9 million, marking a decrease of $111.4 million from the prior-quarter end. The net leverage ratio was 0.2 as of Dec 31, 2021, down from 0.4 as of Sep 30, 2021. Corporate liquidity was $3.2 billion as of Dec 31, 2021.

In the fourth quarter of 2021, the company repurchased 592,840 shares for $152.3 million. In February 2022, the company's board of directors authorized an additional $1.5 billion for share repurchases.

JLL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Jones Lang LaSalle Incorporated Price, Consensus and EPS Surprise

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Performance of Other Companies From the Broader Real Estate Industry

CBRE Group Inc. (CBRE Quick QuoteCBRE - Free Report) reported fourth-quarter 2021 adjusted earnings per share of $2.19, which beat the Zacks Consensus Estimate of $1.77 and increased from the year-ago tally of $1.45. The quarterly results of CBRE Group reflected the benefits of diversifying across asset types, business lines, client types and geographies as well as expanding the company’s resilient business in recent years. A healthy balance sheet and a supportive macro environment also benefited CBRE.

Public Storage's (PSA Quick QuotePSA - Free Report) fourth-quarter 2021 core funds from operations (FFO) per share of $3.54 surpassed the Zacks Consensus Estimate of $3.44. The figure also increased 20.8% year over year. Results reflected an improvement in the realized annual rent per available square foot and weighted average square foot occupancy in the reported quarter. Public Storage also benefited from its expansion efforts through acquisitions, developments and extensions. Management also provided an upbeat guidance for 2022 core FFO per share.

Extra Space Storage, Inc. (EXR Quick QuoteEXR - Free Report) reported fourth-quarter 2021 core FFO per share of $1.91, beating the Zacks Consensus Estimate of $1.86. The figure also came in 29.1% higher than the prior-year quarter’s $1.48. Quarterly revenues were $427.4 million, up 20.9% year over year. The top line also exceeded the Zacks Consensus Estimate of $423.1 million. Extra Space Storage’s results reflected the strong average occupancy and higher average rates to new and existing customers and higher late fees, partly offset by increased discounts.