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Jones Lang (JLL) to Manage Rolls-Royce's Global FM Operations
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Jones Lang LaSalle (JLL - Free Report) recently entered into a long-term contract with multinational power and propulsion business — Rolls-Royce — to run its global facilities management (FM) operations in China, Germany, India, Singapore, the United Kingdom and the United States.
Amid the rising trend of outsourcing of real estate needs by companies, the move is likely to benefit JLL’s Work Dynamics business, which provides a broad suite of integrated services to occupiers of real estate, including facility and project management, as well as portfolio and other services. Shares of the company gained 2.89% on Aug 29 normal trading session on the NYSE.
Per the contract, beginning in February 2024, JLL will operate as Rolls-Royce's exclusive strategic global FM partner, overseeing manufacturing, warehouse and office space spanning 15 million square feet at 44 sites in six countries.
JLL’s FM services are expected to accelerate operational initiatives and deliver exceptional employee experiences on the back of its proprietary technology and data-driven insights. In addition, it will enable Rolls-Royce to inch closer to its sustainability commitments.
Per Neil Murray, CEO of Work Dynamics, JLL, “Facilities management plays a critical role in building resilience and creating a better workplace experience and outcomes in any enterprise's portfolio. JLL's global footprint, and an end-to-end approach to real estate including an in-house technology division, allows us to uniquely support Rolls-Royce in optimizing their portfolio and creating efficiencies to support their long-term strategy and achieve operational sustainability goals.”
JLL enjoys a broad range of real estate products and services, as well as an extensive knowledge of domestic and international real estate markets, enabling it to operate as a single-source provider of real estate solutions.
Of late, the company’s Work Dynamics segment has benefited from new contract wins and the expansion of services with existing clients. In the second quarter of 2023, continued strength in Project Management, predominantly in Australia, France, MENA and the U.K., and modest growth in Workplace Management aided year-over-year growth in the segment’s revenues and fee revenues.
Moreover, the company’s data-driven and experiential technology platform has been providing a competitive edge and leading to increased client engagements, poising it well for growth.
Nonetheless, persistent macroeconomic uncertainty and a high-interest rate environment have caused a slowdown in the capital markets due to restrictive underwriting assumptions and rising debt costs. This is expected to keep this Chicago-based real estate services company's transaction-based businesses under distress in the near term, stalling its growth tempo.
JLL currently carries a Zacks Rank #5 (Strong Sell).
The company’s shares have gained 9.6% in the year-to-date period compared with the industry’s growth of 17.7%.
Image: Shutterstock
Jones Lang (JLL) to Manage Rolls-Royce's Global FM Operations
Jones Lang LaSalle (JLL - Free Report) recently entered into a long-term contract with multinational power and propulsion business — Rolls-Royce — to run its global facilities management (FM) operations in China, Germany, India, Singapore, the United Kingdom and the United States.
Amid the rising trend of outsourcing of real estate needs by companies, the move is likely to benefit JLL’s Work Dynamics business, which provides a broad suite of integrated services to occupiers of real estate, including facility and project management, as well as portfolio and other services. Shares of the company gained 2.89% on Aug 29 normal trading session on the NYSE.
Per the contract, beginning in February 2024, JLL will operate as Rolls-Royce's exclusive strategic global FM partner, overseeing manufacturing, warehouse and office space spanning 15 million square feet at 44 sites in six countries.
JLL’s FM services are expected to accelerate operational initiatives and deliver exceptional employee experiences on the back of its proprietary technology and data-driven insights. In addition, it will enable Rolls-Royce to inch closer to its sustainability commitments.
Per Neil Murray, CEO of Work Dynamics, JLL, “Facilities management plays a critical role in building resilience and creating a better workplace experience and outcomes in any enterprise's portfolio. JLL's global footprint, and an end-to-end approach to real estate including an in-house technology division, allows us to uniquely support Rolls-Royce in optimizing their portfolio and creating efficiencies to support their long-term strategy and achieve operational sustainability goals.”
JLL enjoys a broad range of real estate products and services, as well as an extensive knowledge of domestic and international real estate markets, enabling it to operate as a single-source provider of real estate solutions.
Of late, the company’s Work Dynamics segment has benefited from new contract wins and the expansion of services with existing clients. In the second quarter of 2023, continued strength in Project Management, predominantly in Australia, France, MENA and the U.K., and modest growth in Workplace Management aided year-over-year growth in the segment’s revenues and fee revenues.
Moreover, the company’s data-driven and experiential technology platform has been providing a competitive edge and leading to increased client engagements, poising it well for growth.
Nonetheless, persistent macroeconomic uncertainty and a high-interest rate environment have caused a slowdown in the capital markets due to restrictive underwriting assumptions and rising debt costs. This is expected to keep this Chicago-based real estate services company's transaction-based businesses under distress in the near term, stalling its growth tempo.
JLL currently carries a Zacks Rank #5 (Strong Sell).
The company’s shares have gained 9.6% in the year-to-date period compared with the industry’s growth of 17.7%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader real estate industry are KE Holdings (BEKE - Free Report) , LGI Homes (LGIH - Free Report) and Forestar Group (FOR - Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for KE Holding’s 2023 EPS has moved 3.3% northward over the past month to 93 cents.
The consensus estimate for LGI Homes’ current-year EPS has been raised 7.5% over the past month to $8.14.
The consensus mark for Forestar Group’s ongoing year’s EPS has been raised 23.6% over the past two months to $2.83.