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SEC Filings

S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
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  Corporate and Financial Services. The Corporate and Financial Services
segment's revenue, which represented about 26.5% of the Company's total revenue
in 1996, increased $9.4 million, or 25.2%, to $46.7 million in 1996 from $37.3
million in 1995. This record revenue resulted primarily from an $8.2 million
increase in revenue from the Company's tenant representation business. A number
of significant tenant representation transactions and a series of transactions
generated from a new facility management client accounted for the majority of
the increased tenant representation revenue. The tenant representation business
completed 256 transactions totaling over 6.7 million square feet in 1996
compared to 132 transactions and 3.6 million square feet in 1995. General
improvements in real estate market fundamentals, including declining vacancies
in Class A buildings and increases in office rents, have prompted several of
the Company's clients to complete large relocations or lease extensions.
Approximately 79% of tenant representation revenue in 1996 was generated from
strategic alliances with large corporations or professional service firms.
 
  Operating expenses for the Corporate and Financial Services segment increased
$6.4 million, or 21.7%, to $35.9 million in 1996 from $29.5 million in 1995,
principally as a result of higher staffing levels to meet the higher levels of
activity throughout the year and as a result of increased incentive
compensation earned by employees. The Corporate and Financial Services
segment's operating income, which represented 40.2% of the Company's total
operating income in 1996, increased $3.0 million in 1996, or 38.6%, to $10.8
million in 1996 from $7.8 million in 1995. As a percentage of segment revenue,
operating income increased to 23.1% in 1996 from 20.9% in 1995.
 
  Investment Management. The Investment Management segment's revenue, which
represented 33.3% of the Company's total revenue in 1996, increased $5.9
million, or 11.1%, to $58.6 million in 1996 from $52.7 million in 1995. The net
gain in revenue was primarily attributable to growth in the Company's European
advisory business resulting from the CIN Property Management acquisition in
October 1996, and, to a lesser extent, the increase in assets under management
from the Company's co-investment activities and the Company's securities
advisory business. Strong fundamentals in the publicly traded real estate
securities markets during 1996, and the resulting capital inflows to this
sector, contributed to the growth in the Company's securities advisory
business.
 
  Revenue was negatively impacted by a $1.0 million decline in investment
management fees from the Company's four large commingled funds in 1996, as a
result of the sale of several commingled fund assets during the year. The funds
had a net asset value of $726 million at the end of 1996, compared to $983
million at the end of 1995. Investment Management segment revenue from these
funds, which totaled $5.9 million in 1996, will continue to decline as
substantially all of the remaining properties are expected to be sold by the
end of 1998.
 
  Operating expenses increased $1.7 million, or 3.3%, to $53.2 million in 1996
from $51.5 million in 1995. The increase is primarily attributable to
additional operating expenses and amortization of goodwill and intangible
assets associated with the acquisition of CIN Property Management totaling $2.6
million and, to a lesser extent, to employee relocation costs totaling $1.2
million. The 1996 increase in expenses was offset by $2.0 million in certain
one-time expenses incurred in 1995 related to the reorganization of this
segment.
 
  Operating income, which represented 19.9% of the Company's total operating
income in 1996, increased $4.1 million to $5.3 million in 1996 from $1.2
million in 1995. As a percentage of segment revenue, operating income increased
to 9.2% in 1996 from 2.3% in 1995.
 
 
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