In order to bolster its operating flexibility, Jones Lang LaSalle Incorporated (JLL), the Chicago, IL-based full-service real estate operations firm, has made amendments to its existing credit facility. In sync with its strategy 2020, JLL has raised the borrowing capacity around 66.7% to $2 billion and extended the maturity date to Feb 2020 from Oct 2018.
Notably, JLL’s strategy 2020 involves pursuance of operational and business strategies to sustain its performance in the long run. The enhanced credit facility will add to the company’s already robust financial position and help it conduct disciplined and continued investments in the better interests of investors and clients.
Per the news, the new pricing will be LIBOR + 1.00% – LIBOR + 2.05%, compared with the initial pricing of LIBOR + 1.00%. In order to provide additional operating flexibility, certain terms and conditions of the facility were revised as well.
JLL holds an investment grade balance sheet with a manageable debt position. In Dec 2014, Standard & Poor’s raised JLL’s investment-grade rating to BBB. Thus, we believe the company remains well poised to continue with its growth saga, apart from possessing the wherewithal to carry on with investments as growth drivers. In addition, this new enhanced credit facility will help it sustain growth momentum in the long run.
Currently, JLL carries a Zacks Rank #3 (Hold).
Investors interested in the real estate sector may consider stocks like Altisource Residential Corporation (RESI), Henderson Land Development Co. Ltd. (HLDCY) and Alexander & Baldwin, Inc. (ALEX). While Altisource Residential sports a Zacks Rank #1 (Strong Buy), both Henderson Land Development and Alexander & Baldwin hold a Zacks Rank #2 (Buy).
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