Jones Lang - Best Positioned In Tough Market

Chicago-based Jones Lang LaSalle, Incorporated (NYSE:JLL) is a leading full-service real estate firm that provides corporate, financial, and investment management services. The company caters to corporations and other real estate owners, users, and investors worldwide.

JLL reported net income of $1.17 per share in 4Q08 compared to $3.16 in 4Q07. Full year earnings were $2.44 per share vs. $7.64 in 2007. Excluding nonrecurring charges, full year earnings were $3.71 per share. The company’s Americas region performed well in the quarter while Asia and Europe lagged. Transaction and leasing volumes declined in 2008, and this year will not be much better.

As such, we expect revenue to continue trending down well into 2009. We maintain our Hold rating based on valuation and the company’s long term outlook. JLL is still the best positioned commercial real estate services company. In addition, recent acquisitions should incrementally add to earnings and overall expenses cut as operating synergies are realized.

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