Managing director says S'pore business in good position for the year ahead
The improving Jones Lang LaSalle Singapore has reported a 27 per cent year on year increase in revenue for the first three months of this year.
Chris Fossick, managing director Singapore and South East Asia, said: 'The Singapore business is in a good position for the year ahead due to the strong performance of our residential project sales, office leasing, investment sales and property and asset management divisions.
'Our newly-formed Singapore residential project sales team is capitalising on the increased demand for luxury residential real estate in Singapore, and during Q1, secured marketing appointments for high-end projects including The Holland Collection, The Marina Collection and Centennia Suites,' he added.
JLL has also been able to ride on the strong recovery in the Singapore office market, retaining marketing agency appointments on the majority of the choicest office developments under construction.
The firm's investment sales unit too has clinched a number of appointments for collectives sales this year. 'Considering that government efforts to streamline this process are under discussion, we expect to see further en-bloc activity this year,' he added.
'Following on from a remarkable performance in 2009, the property and asset management team added more than one million sq ft of space to their portfolio in a fiercely competitive market, a testament to the teams' trusted service delivery model,' Mr Fossick notes.
JLL's revenue in the Asia-Pacific region was US$136 million in Q1 2010, a 29 per cent rise from US$105 million for the same period last year. The region's earnings before interest, taxes, depreciation and amortisation for Q1 2010 was US$9 million, against a loss of US$1 million in the same year-ago period.
'Economic forecasts in the Asia-Pacific region are upbeat and recovery in the business environment is filtering through to real estate . . . however, there are concerns about inflationary pressures, particularly in the residential market, which has prompted anti-speculative measures like the introduction of a stamp duty for sellers in Singapore,' said Mr Fossick.
On Tuesday, NYSE-listed Jones Lang LaSalle Incorporated reported net income (on US GAAP basis) of US$246,000, or one US cent per share in Q1 2010. In Q1 2009, it had chalked up a net loss of US$61.5 million, or US$1.78 per share.
'Net income in the first quarter (of 2010) benefited from continued momentum from the fourth quarter of 2009 and the transition to a more variable compensation structure in a number of the firm's transactional businesses,' JLL said in its news release issued on Tuesday out of Chicago.
The firm's adjusted ebitda was US$37 million for Q1 2010, up from US$11 million in the same year-ago period. Revenue rose 18 per cent year on year to US$581 million.
Source: Business Times, 29 Apr 2010