Jones Lang LaSalle cuts its dividend in half today as it revealed a 68% drop in third quarter profits.
Chicago-based JLL, the world’s second-largest property services firm, said net income for the third quarter was $15m (£9.4m), compared to $47m (£29.4m) in 2007, with revenue increasing 8% to $677m (£423.7m).
This equated to earnings of $0.43 a share, just less than half the $0.81 that analysts had forecast for the company.
The company will now pay a semi-annual dividend $0.25 a share, a 50% reduction, which it said was an effort to manage its balance sheet in light of continued uncertainty in global markets.
JLL’s third quarter net income included amortisation and costs of $11m (£6.9m) due to the acquisition of retail agency Kempers in
The company also incurred costs of $8m (£5m) due to redundancy severance charges, primarily in
The company pointed out that its balance sheet remained strong after these acquisitions, with debt taken on to fund the purchases having been paid back out of existing cash flow.
The Staubach purchase in particular was a strong driver in increased revenue, with leasing revenue increasing 45% to $192m (£120m). LaSalle Investment Management was also a star performer, with advisory fees increasing 12% to $71m (£44m).
Regionally, revenue for Europe, the Middle East and Africa dropped 7% to $209m (£130.6m), with earnings before interest, depreciation, tax and amortisation of $14m, compared to $9m in the second quarter.
