CHICAGO - Jones Lang LaSalle Incorporated (NYSE: JLL (NYSE:JLL)), a global commercial real estate and investment management firm, has announced the creation of a $2.5 billion commercial paper program through one of its wholly-owned subsidiaries. This move is aimed at bolstering the company's balance sheet and enhancing its short-term capital flexibility.
The commercial paper program, unveiled Monday, will enable JLL to issue short-term, unsecured, and unsubordinated notes. This initiative follows JLL's strategy to strengthen its financial position, which has included renewing its credit facility and issuing public bonds in 2023. The proceeds from the commercial paper will be used for general corporate purposes, such as repaying outstanding borrowings under the company's existing credit facilities.
JLL's new notes will be sold in the U.S. commercial paper market, adhering to customary market conditions. Jones Lang LaSalle Finance B.V., the subsidiary responsible for issuing the notes, has the full backing and guarantee of JLL.
The company has clarified that the notes and the guarantee under the commercial paper program will not be registered under the Securities Act of 1933, and thus, cannot be offered or sold in the United States without registration or exemption from registration requirements.
JLL, with over two centuries of history, operates in more than 80 countries and employs over 108,000 people worldwide. The company, which is part of the Fortune 500, generated annual revenue of $20.8 billion and continues to expand its services in the commercial, industrial, hotel, residential, and retail sectors.
In other recent news, Jones Lang LaSalle Incorporated, a global real estate and investment management firm, has made several significant moves. The company has set up a $2.5 billion commercial paper program, allowing for the issuance of short-term, unsecured, and unsubordinated commercial paper notes. The proceeds from these notes will be used for general corporate purposes, including potentially repaying outstanding borrowings under the company's existing credit facilities.
Jones Lang LaSalle also reported a 12% increase in resilient revenues and a 6% rise in Capital Markets revenue in their Q1 2024 earnings call, indicating significant profit growth. In board-related news, Susan Gore, known for her extensive background in accounting, auditing, and finance, has joined the company's Board of Directors. Her expertise is expected to enhance the company's global operations and contribute to its growth strategy.
The company has further expanded its data center services through the acquisition of SKAE Power Solutions, a move set to enhance JLL's technical service delivery for critical data center assets. Keefe, Bruyette & Woods has adjusted the price target for JLL shares, raising it to $200.00 from the previous target of $190.00, maintaining its Market Perform rating. The firm's forecasts suggest a revenue growth of approximately 4% for JLL in 2024, and over 10% in 2025. These recent developments highlight JLL's commitment to growth and profitability in an evolving market landscape.
InvestingPro Insights
As Jones Lang LaSalle Incorporated (NYSE: JLL) launches its $2.5 billion commercial paper program, investors may find the company's recent financial metrics and strategic moves indicative of its commitment to financial robustness. With a market capitalization of $9.43 billion and a price-to-earnings (P/E) ratio standing at 31.22, JLL seems to be leveraging its solid financial standing to enhance liquidity and fund corporate activities.
An InvestingPro Tip reveals that management has been aggressively buying back shares, signaling confidence in the company's valuation and future prospects. Additionally, JLL has a track record of raising its dividend for 9 consecutive years, which may appeal to income-focused investors.
The company's revenue growth, particularly the 8.67% quarterly increase as of Q1 2024, complements its strategy to fortify its financial position. Moreover, JLL's gross profit margin at a healthy 51.56% for the last twelve months as of Q1 2024, underscores its ability to maintain profitability amidst its expansion efforts.
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