JLL Stock Fair Value Calculation – Jones Lang LaSalle Negotiates $750 Million Construction Loan for Enterprise Research Campus
June 30, 2023
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Jones ($NYSE:JLL) Lang LaSalle Incorporated is a renowned professional services company specializing in real estate and investment management. It operates through four business segments: Americas; Europe, Middle East and Africa (EMEA); Asia Pacific, and LaSalle Investment Management. Recently, the Company has arranged a $750 Million Construction Loan for the Enterprise Research Campus through its Americas business segment. This construction loan will cover costs associated with the building of the Research Campus, which is a first-of-its-kind technology campus in the United States. The project is expected to transform the area into a premier destination for businesses throughout the region.
It will be home to many leading technology companies and research institutions, and is expected to create thousands of new jobs. The construction loan is the result of Jones Lang LaSalle’s comprehensive financial advisory services, which include market analysis, loan structuring, and debt placement. The company has established long-term relationships with leading lenders and investors, allowing them to secure the best financing for their clients’ projects. Overall, the $750 Million Construction Loan arranged by Jones Lang LaSalle demonstrates their commitment to providing quality advice and services to clients, while helping to foster economic development in the region.
Market Price
This loan is set to be used for the development of a research and development center, located in the heart of Silicon Valley. The announcement of this major loan is likely to have had a positive effect on the company’s stock, which opened on Friday at $146.4 and closed at $146.0, down by only 1.5% from its previous closing price of 148.3. This slight decline reflects the optimism of the market in response to this significant loan. With the loan, JONES LANG LASALLE is one step closer to completing the development of the research center. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for JLL. More…
| Total Revenues | Net Income | Net Margin |
| 20.78k | 499.7 | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for JLL. More…
| Operations | Investing | Financing |
| 200 | -223.1 | -44.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for JLL. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.85k | 9.69k | 126.74 |
Key Ratios Snapshot
Some of the financial key ratios for JLL are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.4% | -3.8% | 3.8% |
| FCF Margin | ROE | ROA |
| -0.0% | 8.2% | 3.1% |
Analysis – JLL Stock Fair Value Calculation
At GoodWhale, we recently made an analysis of JONES LANG LASALLE’s fundamentals. Our proprietary Valuation Line revealed that the intrinsic value of JONES LANG LASALLE share is around $192.3. To put it into perspective, now JONES LANG LASALLE stock is traded at $146.0, which means that it is currently undervalued by 24.1%. This could be a great buying opportunity for investors looking for an undervalued investment. However, it is important to note that JONES LANG LASALLE’s stock performance might be difficult to predict in the current market. Therefore, investors must make their own informed decisions before investing. More…
Peers
The commercial real estate services industry is highly competitive. The four largest firms, Jones Lang LaSalle Inc, CBRE Group Inc, Cushman & Wakefield PLC, and Gabetti Property Solutions SPA, account for about 60 percent of industry revenue. These companies compete primarily on the basis of price, service quality, and geographical coverage.
– CBRE Group Inc ($NYSE:CBRE)
CBRE Group, Inc. is an American commercial real estate services and investment firm. The Company operates through five segments: Americas, Europe, Asia Pacific, Global Investment Management, and Development Services. CBRE Group offers services such as brokerage, valuation, property and facilities management, mortgage banking, asset management, investment banking, consulting, project management, and development services. As of December 31, 2018, the Company owned and/or managed approximately 3.6 billion square feet of commercial real estate space.
– Cushman & Wakefield PLC ($NYSE:CWK)
Cushman & Wakefield PLC is a global professional services firm that helps organizations succeed by enhancing their value through real estate. The company has a market cap of 2.5 billion as of 2022 and a return on equity of 27.74%. The company helps its clients maximize the value of their real estate assets through a comprehensive range of services, including transaction and advisory, valuation, property management, investment management, and research.
– Gabetti Property Solutions SPA ($LTS:0QU7)
Gabetti Property Solutions SPA is an Italian company that specializes in providing property solutions. As of 2022, the company had a market capitalization of €63.59 million and a return on equity of 47.65%. The company offers a variety of services including property management, valuation, and consulting.
Summary
Jones Lang LaSalle (JLL) recently arranged a $750 million construction loan for the Enterprise Research Campus. This loan is an example of JLL’s expertise in investing analysis, as the loan provides capital to the research campus, which is expected to bolster regional economic growth. JLL’s analysis of the loan also includes an assessment of the risk associated with the loan, as well as an evaluation of the potential return on investment.
This shows JLL’s commitment to its clients, as it strives to make the best possible decisions that will maximize returns while minimizing risk. JLL’s investment analysis services are highly sought after, and the recent loan provides further evidence of its success in this sector.
