Europe, the Middle East and Africa gained in prominence in the first half of 2007 as the region increased its revenue share in Jones Lang LaSalle’s half-year results.
The EMEA region accounted for 31.9% of total revenue earned by the property services firm in the first half of 2007, compared to 28%, and overtook the Americas region, which contributed 28.9% in 2007, to become the company’s biggest revenue earner.
Revenue for the region increased to $374 (£182m) in the first half of 2007, a rise of 56% from the same period in 2006. This compares to an overall increase in revenue across the company of 33%, to $676m (£330). Overall, the company announced an increase in net profits of 48% for 2007, $137.4m (£67m).
At the company’s investment arm, LaSalle Investment Management, revenue dropped in the first half of 2007, with Jones Lang putting this fact down to a one-off incentive fee of $109.5m (£53m) paid to the company in the second quarter of 2006.
Operating expenses for the EMEA region increased by 44% over the first half of the year, to $344m (£168), and the company’s margin in this area increased from 0.16% to 7.9%.`
EMEA chief executive Alastair Hughes said: ‘Everyone thought the first half of 2006 was a fantastic period, so to show growth on that period is great.’
However, he warned of a slowdown in the UK investment market, where deals would take longer to get done. ‘We have already seen yields softening in some areas,’ he said. ‘When the market was hot, you could put something on the market and straight away you would have 20 bidders and could sell it quickly. Now you don’t have as many, it will take longer, and this will affect prices also.’