What Happened?

Shares of real estate firm JLL (JLL) jumped 7.5% in the afternoon session after the company secured over $1.2 billion in construction financing for four hyperscale data center campuses in Northern Virginia on behalf of The BlackChamber Group. Management added "We are seeing incredible demand for data centers with the consistent appetite from Cloud, AI and Enterprise tenants and this in turn has created a larger focus from various capital sources."

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What The Market Is Telling Us

JLL’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was about 2 months ago when the stock gained 8.4% on the news that a Wolfe analyst upgraded the stock's rating from Peer Perform (Hold) to Outperform (Buy). The analyst added, "JLL benefits from capital markets comps, improved disclosure supports multiple expansion, while sector tailwinds from potential deregulation and tax reform may accelerate earnings growth."

JLL is up 3.8% since the beginning of the year, and at $258.73 per share, it is trading close to its 52-week high of $283.67 from November 2024. Investors who bought $1,000 worth of JLL’s shares 5 years ago would now be looking at an investment worth $1,511. 

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