JLL Reports Financial Results for Third-Quarter 2024
JLL reported strong Q3 2024 financial results with revenue increasing 15% to $5.9 billion. Diluted earnings per share rose to $3.20 from $1.23 last year, while adjusted diluted earnings reached $3.50, up from $2.19. The growth was driven by double-digit increases in both Transactional (11%) and Resilient (16%) business lines. Notable performance included a 21% increase in Leasing within Markets Advisory and 20% growth in Workplace Management. The company's net income grew to $155.1 million, up from $59.7 million in 2023, while Adjusted EBITDA increased to $298.1 million from $217.3 million.
JLL ha riportato forti risultati finanziari nel terzo trimestre del 2024, con un aumento del fatturato del 15% a $5,9 miliardi. Utili per azione diluiti sono saliti a $3,20 rispetto a $1,23 dell'anno scorso, mentre utili diluiti rettificati hanno raggiunto $3,50, in aumento rispetto a $2,19. La crescita è stata sostenuta da aumenti a due cifre sia nella linea di business Transactional (11%) che in quella Resilient (16%). Le performance notevoli includono un aumento del 21% in Leasing all'interno della consulenza ai mercati e una crescita del 20% nella gestione degli spazi di lavoro. Il reddito netto dell'azienda è cresciuto a $155,1 milioni, rispetto a $59,7 milioni nel 2023, mentre EBITDA rettificato è aumentato a $298,1 milioni, rispetto a $217,3 milioni.
JLL reportó sólidos resultados financieros en el tercer trimestre de 2024, con un aumento del 15% en los ingresos, alcanzando $5.9 mil millones. Las ganancias por acción diluidas aumentaron a $3.20 desde $1.23 el año pasado, mientras que las ganancias diluidas ajustadas alcanzaron $3.50, en comparación con $2.19. Este crecimiento fue impulsado por aumentos de dos dígitos en las líneas de negocio Transaccional (11%) y Resiliente (16%). Un desempeño notable incluyó un aumento del 21% en Leasing dentro de Asesoría de Mercados y un crecimiento del 20% en Gestión de Espacios de Trabajo. El ingreso neto de la compañía creció a $155.1 millones, frente a $59.7 millones en 2023, mientras que el EBITDA ajustado aumentó a $298.1 millones desde $217.3 millones.
JLL은 2024년 3분기에 수익이 15% 증가하여 59억 달러에 달하는 강력한 재무 결과를 보고했습니다. 희석 주당 순이익은 작년의 1.23달러에서 3.20달러로 상승했으며, 조정된 희석 주당 순이익은 2.19달러에서 3.50달러로 증가했습니다. 성장은 Transactional(11%) 및 Resilient(16%) 비즈니스 라인 모두에서 두 자릿수 성장이 이끌었습니다. 주목할 만한 성과로는 시장 자문 부문에서 Leasing이 21% 증가했으며, 근무 공간 관리에서 20% 성장했습니다. 회사의 순이익은 2023년 5,970만 달러에서 1억 5,510만 달러로 증가하였고, 조정 EBITDA는 2억 1,730만 달러에서 2억 9,810만 달러로 증가했습니다.
JLL a annoncé de solides résultats financiers pour le troisième trimestre 2024, avec un chiffre d'affaires en augmentation de 15% à 5,9 milliards de dollars. Le bénéfice par action dilué a grimpé à 3,20 $ contre 1,23 $ l'année précédente, tandis que le bénéfice dilué ajusté a atteint 3,50 $, contre 2,19 $. Cette croissance a été soutenue par des augmentations à deux chiffres dans les lignes d'affaires Transactionnel (11%) et Résilient (16%). Les performances notables incluent une augmentation de 21% dans le domaine de la location au sein de la consultation de marchés et une croissance de 20% dans la gestion des espaces de travail. Le revenu net de l'entreprise a augmenté à 155,1 millions de dollars, contre 59,7 millions de dollars en 2023, tandis que l'EBITDA ajusté a augmenté à 298,1 millions de dollars contre 217,3 millions de dollars.
JLL hat starke Finanzzahlen für das 3. Quartal 2024 vermeldet, mit einem Umsatzanstieg von 15% auf 5,9 Milliarden Dollar. Der verwässerte Gewinn pro Aktie stieg von 1,23 Dollar im letzten Jahr auf 3,20 Dollar, während der angepasste verwässerte Gewinn auf 3,50 Dollar anstieg, gegenüber 2,19 Dollar. Das Wachstum wurde durch zweistellige Zuwächse sowohl in der Transaktions- (11%) als auch in der Resilienten (16%) Geschäftssparte angetrieben. Hervorzuheben ist eine 21%ige Steigerung im Bereich Leasing innerhalb der Marktberatung und ein 20%iger Anstieg im Bereich Arbeitsplatzmanagement. Der Nettoertrag des Unternehmens wuchs auf 155,1 Millionen Dollar, von 59,7 Millionen Dollar im Jahr 2023, während Adjusted EBITDA auf 298,1 Millionen Dollar von 217,3 Millionen Dollar anstieg.
- Revenue growth of 15% to $5.9 billion
- Diluted EPS increased 160% to $3.20
- Adjusted EBITDA grew 37% to $298.1 million
- Leasing revenue up 21% with broad geographic growth
- Net income rose 160% to $155.1 million
- Operating cash flows declined 20% to $261.6 million
- Free Cash Flow decreased 22% to $216.7 million
- JLL Technologies revenue declined 4%
- LaSalle revenue decreased 8%
- Assets under management declined 9% to $84.6 billion
Insights
JLL delivered a strong Q3 2024 with notable improvements across key metrics.
1. Transactional revenue growth accelerated to
2. Resilient revenue streams grew
The company's focus on cost discipline and platform leverage helped expand margins, with Adjusted EBITDA growing
The results indicate a significant market recovery in commercial real estate transactions. Key market insights include:
- U.S. investment sales outperformed the broader market (
- Office sector led leasing growth despite broader market challenges, particularly in larger deals
- Industrial sector stabilization after multiple quarters of decline signals potential market bottom
The acquisition of Raise Commercial Real Estate enhances digital capabilities, positioning JLL well for evolving client needs. The
Double-digit revenue growth, coupled with ongoing cost discipline, drove strong bottom-line performance
- Third-quarter revenue was
$5.9 billion 15% in local currency1 - Resilient6 revenues grew
16% in local currency and Transactional6 revenues were up11% in local currency- Leasing, within Markets Advisory, increased
21% with broad-based geographic and asset class growth led byU.S. office - Capital Markets delivered
14% growth as momentum grew in investment sales and debt/equity advisory - Work Dynamics extended its growth momentum, highlighted by a
20% increase in Workplace Management
- Leasing, within Markets Advisory, increased
- Continued profitability improvement led by Transactional6 revenue growth and the combination of cost discipline and platform leverage
- JLL enhanced digital leasing capabilities, closing on the acquisition of Raise Commercial Real Estate in mid-October
"JLL achieved strong third-quarter revenue and profit growth fueled by continued high demand for our outsourcing services and an acceleration in transactional activity," said Christian Ulbrich, JLL CEO. "Amidst a dynamic macro backdrop, our combination of data insights, talented people, and investments in our platform and technology is enhancing the way we work, delivering innovative capabilities our clients value. We are excited by significant opportunities in front of us and expect to continue to capitalize on them, driving meaningful and increasingly resilient top and bottom-line growth, financial returns, and cash flow generation."
Summary Financial Results ($ in millions, except per share data, "LC" = local currency) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||
2024 | 2023 | % Change in USD | % Change in LC | 2024 | 2023 | % Change in USD | % Change in LC | ||||
Revenue | $ 5,868.8 | $ 5,111.4 | 15 % | 15 % | $ 16,622.0 | $ 14,879.4 | 12 % | 12 % | |||
Net income attributable to common shareholders | $ 155.1 | $ 59.7 | 160 % | 161 % | $ 305.6 | $ 53.0 | 477 % | 492 % | |||
Adjusted net income attributable to common shareholders1 | 170.0 | 106.3 | 60 | 60 | 379.2 | 242.7 | 56 | 60 | |||
Diluted earnings per share | $ 3.20 | $ 1.23 | 160 % | 160 % | $ 6.32 | $ 1.10 | 475 % | 492 % | |||
Adjusted diluted earnings per share1 | 3.50 | 2.19 | 60 | 60 | 7.84 | 5.02 | 56 | 59 | |||
Adjusted EBITDA1 | $ 298.1 | $ 217.3 | 37 % | 37 % | $ 731.5 | $ 555.3 | 32 % | 33 % | |||
Cash flows from operating activities | $ 261.6 | $ 325.7 | (20) % | n/a | $ (142.0) | $ (153.6) | 8 % | n/a | |||
Free Cash Flow5 | 216.7 | 276.2 | (22) % | n/a | (268.3) | (291.3) | 8 % | n/a | |||
Note: | For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. |
Consolidated Third-Quarter 2024 Performance Highlights: | |||||||||||||||
Consolidated
| Three Months Ended September 30, | % Change in USD | % Change in LC | Nine Months Ended September 30, | % Change in USD | % Change in LC | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Markets Advisory | $ 1,143.8 | $ 992.4 | 15 % | 15 % | $ 3,172.7 | $ 2,924.2 | 8 % | 9 % | |||||||
Capital Markets | 498.8 | 435.8 | 14 | 14 | 1,334.0 | 1,240.9 | 8 | 8 | |||||||
Work Dynamics | 4,068.2 | 3,514.2 | 16 | 16 | 11,641.0 | 10,165.0 | 15 | 15 | |||||||
JLL Technologies | 56.7 | 58.9 | (4) | (4) | 167.0 | 180.9 | (8) | (8) | |||||||
101.3 | 110.1 | (8) | (8) | 307.3 | 368.4 | (17) | (16) | ||||||||
Total revenue | $ 5,868.8 | $ 5,111.4 | 15 % | 15 % | $ 16,622.0 | $ 14,879.4 | 12 % | 12 % | |||||||
Gross contract costs5 | $ 3,861.8 | $ 3,327.1 | 16 % | 16 % | $ 11,107.9 | $ 9,666.2 | 15 % | 15 % | |||||||
Platform operating expenses | 1,787.5 | 1,633.6 | 9 | 9 | 5,014.8 | 4,848.0 | 3 | 3 | |||||||
Restructuring and acquisition charges4 | (8.8) | 31.6 | (128) | (128) | 4.4 | 79.1 | (94) | (95) | |||||||
Total operating expenses | $ 5,640.5 | $ 4,992.3 | 13 % | 13 % | $ 16,127.1 | $ 14,593.3 | 11 % | 11 % | |||||||
Net non-cash MSR and mortgage banking derivative activity1 | $ (5.1) | $ (7.1) | 28 % | 29 % | $ (25.9) | $ (9.5) | (173) % | (172) % | |||||||
Adjusted EBITDA1 | $ 298.1 | $ 217.3 | 37 % | 37 % | $ 731.5 | $ 555.3 | 32 % | 33 % | |||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. |
Revenue
Revenue increased
The collective
Several businesses with Resilient6 revenues continued to deliver strong revenue growth, collectively up
Refer to segment performance highlights for additional detail.
The following chart reflects the year-over-year change in revenue for each of the trailing eight quarters (QTD revenues, on a local currency basis). The chart shows the change in Transactional, Resilient and total revenue.
Net income and Adjusted EBITDA
Net income attributable to common shareholders for the third quarter was
Diluted earnings per share for the third quarter were
The growth in consolidated profit was primarily attributable to (i) higher revenues, both Transactional and certain Resilient revenues, including Workplace Management within Work Dynamics, and (ii) cost discipline and enhanced leverage of the company's platform. These drivers notably outpaced the timing of revenue-related expense accruals in Work Dynamics and lower contributions from
Net income attributable to common shareholders was
The following chart reflects the aggregation of segment Adjusted EBITDA for the third quarter of 2024 and 2023.
Cash Flows and Capital Allocation:
Net cash provided by operating activities was
The number of shares repurchased and cash paid for repurchases is noted in the following table:
Three Months Ended September 30, | Nine Months Ended September 30, 2024 | ||||
($ in millions) | 2024 | 2023 | 2024 | 2023 | |
Total number of shares repurchased (in 000's) | 83.5 | 123.2 | 297.9 | 262.5 | |
Total paid for shares repurchased | $ 20.1 | 20.1 | $ 60.3 | 40.1 | |
As of September 30, 2024,
Net Debt, Leverage and Liquidity5:
September 30, 2024 | June 30, 2024 | September 30, 2023 | |||
Total Net Debt (in millions) | $ 1,597.3 | 1,752.0 | 1,698.6 | ||
Net Leverage Ratio | 1.4x | 1.7x | 1.9x | ||
Corporate Liquidity (in millions) | $ 3,392.8 | 2,449.4 | 2,139.5 |
The decrease in Net Debt from June 30, 2024, reflected incremental cash flows from operating activities during the third quarter of 2024. The Net Debt reduction from September 30, 2023, was largely attributable to improved cash flows from operations over the trailing twelve months ended September 30, 2024, compared with the twelve-month period ended September 30, 2023.
In addition to the Corporate Liquidity detailed above, the company maintains a commercial paper program (the "Program") with
Markets Advisory Third-Quarter 2024 Performance Highlights: | |||||||||||||||
Markets Advisory
| Three Months Ended September 30, | % Change in USD | % Change in LC | Nine Months Ended September 30, | % Change in USD | % Change in LC | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ 1,143.8 | $ 992.4 | 15 % | 15 % | $ 3,172.7 | $ 2,924.2 | 8 % | 9 % | |||||||
Leasing | 665.4 | 547.7 | 21 | 21 | 1,781.8 | 1,626.1 | 10 | 10 | |||||||
Property Management | 452.3 | 419.2 | 8 | 8 | 1,318.6 | 1,229.3 | 7 | 8 | |||||||
Advisory, Consulting and Other | 26.1 | 25.5 | 2 | 2 | 72.3 | 68.8 | 5 | 5 | |||||||
Segment operating expenses | $ 1,008.4 | $ 923.0 | 9 % | 9 % | $ 2,845.7 | $ 2,715.2 | 5 % | 5 % | |||||||
Segment platform operating expenses | 687.5 | 634.6 | 8 | 8 | 1,907.2 | 1,863.4 | 2 | 3 | |||||||
Gross contract costs5 | 320.9 | 288.4 | 11 | 11 | 938.5 | 851.8 | 10 | 11 | |||||||
Adjusted EBITDA1 | $ 151.9 | $ 85.1 | 78 % | 77 % | $ 376.8 | $ 256.1 | 47 % | 46 % | |||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. | |||||||||||||||
The broad-based increase in Markets Advisory revenue was primarily driven by Leasing and was led by the office sector. Most geographies achieved double-digit growth, notably the
Higher Adjusted EBITDA was largely driven by transactional revenue growth and continued cost discipline. In addition, the timing of prior-year incentive compensation accruals positively impacted the year-over-year profit performance.
Capital Markets Third-Quarter 2024 Performance Highlights: | |||||||||||||||
Capital Markets
| Three Months Ended September 30, | % Change in USD | % Change in LC | Nine Months Ended September 30, | % Change in USD | % Change in LC | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ 498.8 | $ 435.8 | 14 % | 14 % | $ 1,334.0 | $ 1,240.9 | 8 % | 8 % | |||||||
Investment Sales, Debt/Equity Advisory and Other, excluding Net non-cash MSR(a) | 376.9 | 317.3 | 19 | 18 | 976.7 | 879.8 | 11 | 11 | |||||||
Net non-cash MSR and mortgage banking derivative activity (a) | (5.1) | (7.1) | 28 | 29 | (25.9) | (9.5) | (173) | (172) | |||||||
Value and Risk Advisory | 86.0 | 87.5 | (2) | (3) | 262.0 | 256.1 | 2 | 2 | |||||||
Loan Servicing | 41.0 | 38.1 | 8 | 8 | 121.2 | 114.5 | 6 | 6 | |||||||
Segment operating expenses | $ 455.9 | $ 410.0 | 11 % | 11 % | $ 1,287.8 | $ 1,209.1 | 7 % | 7 % | |||||||
Segment platform operating expenses | 444.4 | 398.5 | 12 | 11 | 1,250.9 | 1,175.2 | 6 | 6 | |||||||
Gross contract costs5 | 11.5 | 11.5 | — | (1) | 36.9 | 33.9 | 9 | 10 | |||||||
Equity earnings | $ 0.2 | $ 0.7 | (71) % | (67) % | $ 0.8 | $ 6.1 | (87) % | (86) % | |||||||
Adjusted EBITDA1 | $ 65.7 | $ 50.3 | 31 % | 30 % | $ 124.5 | $ 97.0 | 28 % | 29 % | |||||||
Note: | For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. |
(a) | Historically, net non-cash MSR and mortgage banking derivative activity was included in the Investment Sales, Debt/Equity Advisory and Other caption. Effective beginning Q2 2024, the net non-cash MSR and mortgage banking derivative activity revenue is separately presented in the above table and prior period financial information recast to conform with this presentation |
Capital Markets revenue growth was led by Investment Sales, Debt/Equity Advisory and Other, excluding Net non-cash MSR, as investor sentiment strengthened. This revenue growth was geographically broad-based, most notably in
The Adjusted EBITDA improvement was largely attributable to the transactional revenue growth described above and continued cost discipline.
Work Dynamics Third-Quarter 2024 Performance Highlights: | |||||||||||||||
Work Dynamics
| Three Months Ended September 30, | % Change in USD | % Change in LC | Nine Months Ended September 30, | % Change in USD | % Change in LC | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ 4,068.2 | $ 3,514.2 | 16 % | 16 % | $ 11,641.0 | $ 10,165.0 | 15 % | 15 % | |||||||
Workplace Management | 3,164.6 | 2,637.1 | 20 | 20 | 9,057.4 | 7,687.7 | 18 | 18 | |||||||
Project Management | 771.3 | 747.0 | 3 | 3 | 2,215.8 | 2,126.5 | 4 | 4 | |||||||
Portfolio Services and Other | 132.3 | 130.1 | 2 | 1 | 367.8 | 350.8 | 5 | 4 | |||||||
Segment operating expenses | $ 4,019.6 | $ 3,472.4 | 16 % | 16 % | $ 11,513.3 | $ 10,081.3 | 14 % | 14 % | |||||||
Segment platform operating expenses | 500.9 | 455.9 | 10 | 10 | 1,411.3 | 1,333.8 | 6 | 6 | |||||||
Gross contract costs5 | 3,518.7 | 3,016.5 | 17 | 17 | 10,102.0 | 8,747.5 | 15 | 16 | |||||||
Adjusted EBITDA1 | $ 74.3 | $ 61.6 | 21 % | 20 % | $ 196.3 | $ 143.5 | 37 % | 37 % | |||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. | |||||||||||||||
Work Dynamics revenue growth was led by continued strong performance in Workplace Management, largely from
Adjusted EBITDA expansion was driven by the top-line performance described above with enhanced platform leverage, which more than offset nearly
JLL Technologies Third-Quarter 2024 Performance Highlights: | |||||||||||||||
JLL Technologies
| Three Months Ended September 30, | % Change in USD | % Change in LC | Nine Months Ended September 30, | % Change in USD | % Change in LC | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ 56.7 | $ 58.9 | (4) % | (4) % | $ 167.0 | $ 180.9 | (8) % | (8) % | |||||||
Segment operating expenses | $ 75.7 | $ 68.5 | 11 % | 10 % | $ 211.3 | $ 218.0 | (3) % | (3) % | |||||||
Segment platform operating expenses(a) | 74.3 | 65.2 | 14 | 14 | 207.3 | 207.0 | — | — | |||||||
Gross contract costs5 | 1.4 | 3.3 | (58) | (59) | 4.0 | 11.0 | (64) | (64) | |||||||
Adjusted EBITDA1 | $ (7.8) | $ (5.7) | (37) % | (39) % | $ (23.8) | $ (25.2) | 6 % | 6 % | |||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. | |||||||||||||||
(a) Included in Segment platform operating expenses is carried interest expense of | |||||||||||||||
The decline in JLL Technologies revenue was due to lower contract signings over the trailing twelve months in services offerings, partially offset by continued growth in software offerings.
The increase in segment operating expenses is primarily driven by 1)
The lower Adjusted EBITDA was primarily attributable to lower revenue as well as the incentive compensation and carried interest expenses items described above, which overshadowed the benefits of cost discipline and improved operating efficiency over the trailing twelve months.
LaSalle Third-Quarter 2024 Performance Highlights: | |||||||||||||||
| Three Months Ended September 30, | % Change in USD | % Change in LC | Nine Months Ended September 30, | % Change in USD | % Change in LC | |||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ 101.3 | $ 110.1 | (8) % | (8) % | $ 307.3 | $ 368.4 | (17) % | (16) % | |||||||
Advisory fees | 92.7 | 102.7 | (10) | (10) | 278.1 | 306.3 | (9) | (8) | |||||||
Transaction fees and other | 8.6 | 7.4 | 16 | 17 | 24.4 | 22.8 | 7 | 10 | |||||||
Incentive fees | — | — | n.m. | n.m. | 4.8 | 39.3 | (88) | (87) | |||||||
Segment operating expenses | $ 89.7 | $ 86.8 | 3 % | 3 % | $ 264.6 | $ 290.6 | (9) % | (9) % | |||||||
Segment platform operating expenses | 80.4 | 79.4 | 1 | 1 | 238.1 | 268.6 | (11) | (11) | |||||||
Gross contract costs5 | 9.3 | 7.4 | 26 | 26 | 26.5 | 22.0 | 20 | 21 | |||||||
Adjusted EBITDA1 | $ 14.0 | $ 26.0 | (46) % | (45) % | $ 57.7 | $ 83.9 | (31) % | (28) % | |||||||
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted. | |||||||||||||||
The lower Adjusted EBITDA was largely driven by the decline in revenue. In addition, the prior-year quarter included a one-time reduction to a legacy incentive compensation accrual upon final determination of performance relative to target.
As of September 30, 2024,
Finally, the company committed to invest an incremental
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of
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Live Webcast | Conference Call | ||
Management will offer a live webcast for shareholders, analysts and investment professionals on Wednesday, November 6, 2024, at 9:00 a.m. Eastern. Following the live broadcast, an audio replay will be available. The link to the live webcast and audio replay can be accessed at the Investor Relations website: ir.jll.com. | The conference call can be accessed live over the phone by dialing (888) 660-6392; the conference ID number is 5398158. Listeners are asked to please dial in 10 minutes prior to the call start time and provide the conference ID number to be connected. | ||
Supplemental Information | Contact | ||
Supplemental information regarding the third quarter 2024 earnings call has been posted to the Investor Relations section of JLL's website: ir.jll.com. | If you have any questions, please contact Brian Hogan, Interim Head of Investor Relations. | ||
Phone: | +1 312 252 8943 | ||
Email: | JLLInvestorRelations@jll.com
| ||
Cautionary Note Regarding Forward-Looking Statements
Statements in this news release regarding, among other things, future financial results and performance, achievements, plans, objectives and share repurchases may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors, the occurrence of which are outside JLL's control which may cause JLL's actual results, performance, achievements, plans, and objectives to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to JLL's business in general, please refer to those factors discussed under "Risk Factors," "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in JLL's filed Annual Report on Form 10-K for the year ended December 31, 2023, soon to be filed Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, JLL expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in expectations or results, or any change in events.
JONES LANG LASALLE INCORPORATED | |||||||
Consolidated Statements of Operations (Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in millions, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||
Revenue | $ 5,868.8 | $ 5,111.4 | $ 16,622.0 | $ 14,879.4 | |||
Operating expenses: | |||||||
Compensation and benefits | $ 2,854.6 | $ 2,434.6 | $ 7,869.4 | $ 7,104.6 | |||
Operating, administrative and other | 2,729.2 | 2,467.0 | 8,064.5 | 7,233.1 | |||
Depreciation and amortization | 65.5 | 59.1 | 188.8 | 176.5 | |||
Restructuring and acquisition charges4 | (8.8) | 31.6 | 4.4 | 79.1 | |||
Total operating expenses | $ 5,640.5 | $ 4,992.3 | $ 16,127.1 | $ 14,593.3 | |||
Operating income | $ 228.3 | $ 119.1 | $ 494.9 | $ 286.1 | |||
Interest expense, net of interest income | 38.1 | 37.1 | 110.3 | 103.9 | |||
Equity losses | (0.9) | (11.2) | (20.0) | (117.3) | |||
Other income | 2.9 | 3.0 | 14.1 | 1.9 | |||
Income before income taxes and noncontrolling interest | 192.2 | 73.8 | 378.7 | 66.8 | |||
Income tax provision | 37.4 | 14.5 | 73.8 | 13.0 | |||
Net income | 154.8 | 59.3 | 304.9 | 53.8 | |||
Net (loss) income attributable to noncontrolling interest | (0.3) | (0.4) | (0.7) | 0.8 | |||
Net income attributable to common shareholders | $ 155.1 | $ 59.7 | $ 305.6 | $ 53.0 | |||
Basic earnings per common share | $ 3.26 | $ 1.25 | $ 6.43 | $ 1.11 | |||
Basic weighted average shares outstanding (in 000's) | 47,505 | 47,662 | 47,506 | 47,655 | |||
Diluted earnings per common share | $ 3.20 | $ 1.23 | $ 6.32 | $ 1.10 | |||
Diluted weighted average shares outstanding (in 000's) | 48,497 | 48,394 | 48,355 | 48,317 | |||
Please reference accompanying financial statement notes. | |||||||
JONES LANG LASALLE INCORPORATED | |||||||
Selected Segment Financial Data (Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||
MARKETS ADVISORY | |||||||
Revenue | $ 1,143.8 | $ 992.4 | $ 3,172.7 | $ 2,924.2 | |||
Platform compensation and benefits | $ 582.5 | $ 531.2 | $ 1,588.4 | $ 1,538.6 | |||
Platform operating, administrative and other | 87.7 | 86.5 | 266.7 | 273.4 | |||
Depreciation and amortization | 17.3 | 16.9 | 52.1 | 51.4 | |||
Segment platform operating expenses | 687.5 | 634.6 | 1,907.2 | 1,863.4 | |||
Gross contract costs5 | 320.9 | 288.4 | 938.5 | 851.8 | |||
Segment operating expenses | $ 1,008.4 | $ 923.0 | $ 2,845.7 | $ 2,715.2 | |||
Segment operating income | $ 135.4 | $ 69.4 | $ 327.0 | $ 209.0 | |||
Add: | |||||||
Equity earnings | 0.1 | 0.1 | 0.5 | 0.3 | |||
Depreciation and amortization(a) | 16.3 | 15.9 | 49.2 | 48.5 | |||
Other income | 1.4 | 1.8 | 3.0 | 0.5 | |||
Net income attributable to noncontrolling interest | (0.2) | (0.2) | (0.5) | (0.8) | |||
Adjustments: | |||||||
Net (gain) loss on disposition | — | (0.9) | — | 0.9 | |||
Interest on employee loans, net of forgiveness | (1.1) | (1.0) | (2.4) | (2.3) | |||
Adjusted EBITDA1 | $ 151.9 | $ 85.1 | $ 376.8 | $ 256.1 | |||
(a) This adjustment excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders. | |||||||
JONES LANG LASALLE INCORPORATED | |||||||
Selected Segment Financial Data (Unaudited) Continued | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||
CAPITAL MARKETS | |||||||
Revenue | $ 498.8 | $ 435.8 | $ 1,334.0 | $ 1,240.9 | |||
Platform compensation and benefits | $ 365.5 | $ 323.8 | $ 994.2 | $ 943.1 | |||
Platform operating, administrative and other | 62.3 | 58.3 | 206.4 | 183.6 | |||
Depreciation and amortization | 16.6 | 16.4 | 50.3 | 48.5 | |||
Segment platform operating expenses | 444.4 | 398.5 | 1,250.9 | 1,175.2 | |||
Gross contract costs5 | 11.5 | 11.5 | 36.9 | 33.9 | |||
Segment operating expenses | $ 455.9 | $ 410.0 | $ 1,287.8 | $ 1,209.1 | |||
Segment operating income | $ 42.9 | $ 25.8 | $ 46.2 | $ 31.8 | |||
Add: | |||||||
Equity earnings | 0.2 | 0.7 | 0.8 | 6.1 | |||
Depreciation and amortization | 16.6 | 16.4 | 50.3 | 48.5 | |||
Other income | 1.6 | 1.3 | 3.0 | 1.5 | |||
Adjustments: | |||||||
Net non-cash MSR and mortgage banking derivative activity | 5.1 | 7.1 | 25.9 | 9.5 | |||
Interest on employee loans, net of forgiveness | (0.7) | (0.6) | (1.7) | — | |||
Gain on disposition | — | (0.4) | — | (0.4) | |||
Adjusted EBITDA1 | $ 65.7 | $ 50.3 | $ 124.5 | $ 97.0 | |||
JONES LANG LASALLE INCORPORATED | ||||||||
Selected Segment Financial Data (Unaudited) Continued | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
WORK DYNAMICS | ||||||||
Revenue | $ 4,068.2 | $ 3,514.2 | $ 11,641.0 | $ 10,165.0 | ||||
Platform compensation and benefits | $ 348.8 | $ 332.9 | $ 1,002.4 | $ 958.9 | ||||
Platform operating, administrative and other | 127.3 | 103.3 | 342.6 | 316.0 | ||||
Depreciation and amortization | 24.8 | 19.7 | 66.3 | 58.9 | ||||
Segment platform operating expenses | 500.9 | 455.9 | 1,411.3 | 1,333.8 | ||||
Gross contract costs5 | 3,518.7 | 3,016.5 | 10,102.0 | 8,747.5 | ||||
Segment operating expenses | $ 4,019.6 | $ 3,472.4 | $ 11,513.3 | $ 10,081.3 | ||||
Segment operating income | $ 48.6 | $ 41.8 | $ 127.7 | $ 83.7 | ||||
Add: | ||||||||
Equity earnings | 1.0 | 0.1 | 2.1 | 1.3 | ||||
Depreciation and amortization | 24.8 | 19.7 | 66.3 | 58.9 | ||||
Net (income) loss attributable to noncontrolling interest | (0.1) | — | 0.2 | (0.4) | ||||
Adjusted EBITDA1 | $ 74.3 | $ 61.6 | $ 196.3 | $ 143.5 | ||||
JONES LANG LASALLE INCORPORATED | ||||||||
Selected Segment Financial Data (Unaudited) Continued | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
JLL TECHNOLOGIES | ||||||||
Revenue | $ 56.7 | $ 58.9 | $ 167.0 | $ 180.9 | ||||
Platform compensation and benefits(a) | $ 50.3 | $ 48.7 | $ 151.1 | $ 155.3 | ||||
Platform operating, administrative and other | 19.1 | 12.6 | 42.0 | 39.8 | ||||
Depreciation and amortization | 4.9 | 3.9 | 14.2 | 11.9 | ||||
Segment platform operating expenses | 74.3 | 65.2 | 207.3 | 207.0 | ||||
Gross contract costs5 | 1.4 | 3.3 | 4.0 | 11.0 | ||||
Segment operating expenses | $ 75.7 | $ 68.5 | $ 211.3 | $ 218.0 | ||||
Segment operating loss | $ (19.0) | $ (9.6) | $ (44.3) | $ (37.1) | ||||
Add: | ||||||||
Depreciation and amortization | 4.9 | 3.9 | 14.2 | 11.9 | ||||
Adjustments: | ||||||||
Credit losses on convertible note investments | 6.3 | — | 6.3 | — | ||||
Adjusted EBITDA1 | $ (7.8) | $ (5.7) | $ (23.8) | $ (25.2) | ||||
Equity earnings (losses) | $ 11.6 | $ (3.0) | $ 1.6 | $ (102.0) | ||||
(a) Included in Platform compensation and benefits is carried interest expense of |
JONES LANG LASALLE INCORPORATED | ||||||||
Selected Segment Financial Data (Unaudited) Continued | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Revenue | $ 101.3 | $ 110.1 | $ 307.3 | $ 368.4 | ||||
Platform compensation and benefits | $ 59.8 | $ 63.2 | $ 180.1 | $ 216.5 | ||||
Platform operating, administrative and other | 18.7 | 14.0 | 52.1 | 46.3 | ||||
Depreciation and amortization | 1.9 | 2.2 | 5.9 | 5.8 | ||||
Segment platform operating expenses | 80.4 | 79.4 | 238.1 | 268.6 | ||||
Gross contract costs5 | 9.3 | 7.4 | 26.5 | 22.0 | ||||
Segment operating expenses | $ 89.7 | $ 86.8 | $ 264.6 | $ 290.6 | ||||
Segment operating income | $ 11.6 | $ 23.3 | $ 42.7 | $ 77.8 | ||||
Add: | ||||||||
Depreciation and amortization | 1.9 | 2.2 | 5.9 | 5.8 | ||||
Other (expense) income | (0.1) | (0.1) | 8.1 | (0.1) | ||||
Net loss attributable to noncontrolling interest | 0.6 | 0.6 | 1.0 | 0.4 | ||||
Adjusted EBITDA1 | $ 14.0 | $ 26.0 | $ 57.7 | $ 83.9 | ||||
Equity losses | $ (13.8) | $ (9.1) | $ (25.0) | $ (23.0) | ||||
JONES LANG LASALLE INCORPORATED | ||||||||
Consolidated Statement of Cash Flows (Unaudited) | ||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | ||||
Cash flows from operating activities7: | Cash flows from investing activities: | |||||||
Net income | $ 304.9 | $ 53.8 | Net capital additions – property and equipment | $ (126.3) | $ (137.7) | |||
Reconciliation of net income to net cash used in operating activities: | Business acquisitions, net of cash acquired | (40.8) | (13.6) | |||||
Depreciation and amortization | 188.8 | 176.5 | Capital contributions to investments | (69.2) | (86.8) | |||
Equity losses | 20.0 | 117.3 | Distributions of capital from investments | 14.3 | 21.5 | |||
Net loss on dispositions | — | 0.5 | Acquisition of controlling interest, net of cash acquired | 3.7 | — | |||
Distributions of earnings from investments | 10.7 | 8.2 | Other, net | (0.7) | (3.8) | |||
Provision for loss on receivables and other assets | 34.7 | 21.7 | Net cash used in investing activities | (219.0) | (220.4) | |||
Amortization of stock-based compensation | 78.9 | 59.5 | Cash flows from financing activities: | |||||
Net non-cash mortgage servicing rights and mortgage banking derivative activity | 25.9 | 9.5 | Proceeds from borrowings under credit facility | 6,029.0 | 5,969.0 | |||
Accretion of interest and amortization of debt issuance costs | 4.1 | 3.1 | Repayments of borrowings under credit facility | (6,309.0) | (5,594.0) | |||
Other, net | (5.2) | 15.4 | Proceeds from issuance of commercial paper | 800.0 | — | |||
Change in: | Net repayments of short-term borrowings | (73.0) | (46.4) | |||||
Receivables | 59.7 | 158.1 | Payments of deferred business acquisition obligations and earn-outs | (5.1) | (22.6) | |||
Reimbursable receivables and reimbursable payables | (160.0) | (110.7) | Repurchase of common stock | (60.4) | (39.4) | |||
Prepaid expenses and other assets | (105.0) | (32.0) | Noncontrolling interest contributions (distributions), net | 2.1 | (4.2) | |||
Income taxes receivable, payable and deferred | (172.0) | (114.0) | Other, net | (34.6) | (31.2) | |||
Accounts payable, accrued liabilities and other liabilities | (100.1) | (91.7) | Net cash provided by financing activities | 349.0 | 231.2 | |||
Accrued compensation (including net deferred compensation) | (327.4) | (428.8) | Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (1.8) | (9.6) | |||
Net cash used in operating activities | $ (142.0) | $ (153.6) | Net change in cash, cash equivalents and restricted cash | $ (13.8) | $ (152.4) | |||
Cash, cash equivalents and restricted cash, beginning of the period | 663.4 | 746.0 | ||||||
Cash, cash equivalents and restricted cash, end of the period | $ 649.6 | $ 593.6 | ||||||
Please reference accompanying financial statement notes. | ||||||||
JONES LANG LASALLE INCORPORATED | ||||||||||||
Consolidated Balance Sheets | ||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||
(in millions, except share and per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
ASSETS | (Unaudited) | LIABILITIES AND EQUITY | (Unaudited) | |||||||||
Current assets: | Current liabilities: | |||||||||||
Cash and cash equivalents | $ 437.8 | $ 410.0 | Accounts payable and accrued liabilities | $ 1,162.0 | $ 1,406.7 | |||||||
Trade receivables, net of allowance | 1,998.5 | 2,095.8 | Reimbursable payables | 1,846.8 | 1,796.9 | |||||||
Notes and other receivables | 414.6 | 446.4 | Accrued compensation and benefits | 1,366.4 | 1,698.3 | |||||||
Reimbursable receivables | 2,535.4 | 2,321.7 | Short-term borrowings | 99.6 | 147.9 | |||||||
Warehouse receivables | 2,055.9 | 677.4 | Commercial paper, net of debt issuance costs | 798.0 | — | |||||||
Short-term contract assets, net of allowance | 327.3 | 338.3 | Short-term contract liability and deferred income | 200.1 | 226.4 | |||||||
Prepaid and other | 637.2 | 567.4 | Warehouse facilities | 2,053.1 | 662.7 | |||||||
Total current assets | 8,406.7 | 6,857.0 | Short-term operating lease liability | 162.8 | 161.9 | |||||||
Property and equipment, net of accumulated depreciation | 599.3 | 613.9 | Other | 339.2 | 345.3 | |||||||
Operating lease right-of-use asset | 746.8 | 730.9 | Total current liabilities | 8,028.0 | 6,446.1 | |||||||
Goodwill | 4,667.2 | 4,587.4 | Noncurrent liabilities: | |||||||||
Identified intangibles, net of accumulated amortization | 721.1 | 785.0 | Credit facility, net of debt issuance costs | 332.8 | 610.6 | |||||||
Investments | 866.5 | 816.6 | Long-term debt, net of debt issuance costs | 783.7 | 779.3 | |||||||
Long-term receivables | 390.9 | 363.8 | Long-term deferred tax liabilities, net | 41.6 | 44.8 | |||||||
Deferred tax assets, net | 525.9 | 497.4 | Deferred compensation | 653.0 | 580.0 | |||||||
Deferred compensation plans | 672.2 | 604.3 | Long-term operating lease liability | 783.1 | 754.5 | |||||||
Other | 220.6 | 208.5 | Other | 426.0 | 439.6 | |||||||
Total assets | $ 17,817.2 | $ 16,064.8 | Total liabilities | $ 11,048.2 | $ 9,654.9 | |||||||
Company shareholders' equity | ||||||||||||
Common stock | 0.5 | 0.5 | ||||||||||
Additional paid-in capital | 2,020.8 | 2,019.7 | ||||||||||
Retained earnings | 6,094.6 | 5,795.6 | ||||||||||
Treasury stock | (921.8) | (920.1) | ||||||||||
Shares held in trust | (12.1) | (10.4) | ||||||||||
Accumulated other comprehensive loss | (535.1) | (591.5) | ||||||||||
Total company shareholders' equity | 6,646.9 | 6,293.8 | ||||||||||
Noncontrolling interest | 122.1 | 116.1 | ||||||||||
Total equity | 6,769.0 | 6,409.9 | ||||||||||
Total liabilities and equity | $ 17,817.2 | $ 16,064.8 | ||||||||||
Please reference accompanying financial statement notes. | ||||||||||||
JONES LANG LASALLE INCORPORATED
Financial Statement Notes
1. Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods. These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following:
(i) Adjusted EBITDA attributable to common shareholders ("Adjusted EBITDA"),
(ii) Adjusted net income attributable to common shareholders and Adjusted diluted earnings per share,
(iii) Free Cash Flow (refer to Note 5),
(iv) Net Debt (refer to Note 5) and
(v) Percentage changes against prior periods, presented on a local currency basis.
However, non-GAAP financial measures should not be considered alternatives to measures determined in accordance with
Effective January 1, 2024, the definitions of Adjusted EBITDA and Adjusted net income attributable to common shareholders were updated to exclude certain equity earnings/losses as further described below. Comparable periods have been recast to conform to the revised presentation.
Also effective with first-quarter 2024 reporting, the company no longer reports the non-GAAP measures "Fee revenue" and "Fee-based operating expenses" following the conclusion of a comment letter from the Securities and Exchange Commission Staff in February 2024.
Adjustments to GAAP Financial Measures Used to Calculate non-GAAP Financial Measures
Net Non-Cash Mortgage Servicing Rights ("MSR") and Mortgage Banking Derivative Activity consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how the company manages and evaluates performance because the excluded activity is non-cash in nature.
Restructuring and Acquisition Charges primarily consist of: (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. Restructuring and acquisition charges are excluded from segment operating results and therefore are not line items in the segments' reconciliation to Adjusted EBITDA.
Amortization of Acquisition-Related Intangibles is primarily associated with the fair value ascribed at closing of an acquisition to assets such as acquired management contracts, customer backlog and relationships, and trade name. Such activity is excluded as it is non-cash and the change in period-over-period activity is generally the result of longer-term strategic decisions and therefore not necessarily indicative of core operating results.
Gain or Loss on Disposition reflects the gain or loss recognized on the sale of businesses. Given the low frequency of business disposals by the company historically, the gain or loss directly associated with such activity is excluded as it is not considered indicative of core operating performance. In 2023, the
Interest on Employee Loans, Net of Forgiveness reflects interest accrued on employee loans less the amount of accrued interest forgiven. Certain employees (predominantly in our Leasing and Capital Markets businesses) receive cash payments structured as loans, with interest. Employees earn forgiveness of the loan based on performance, generally calculated as a percentage of revenue production. Such forgiven amounts are reflected in Compensation and benefits expense. Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures.
Equity Earnings/Losses (JLL Technologies and
Note: Equity earnings/losses in the remaining segments represent the results of unconsolidated operating ventures (not investments), and therefore the amounts are included in adjusted profit measures on both a segment and consolidated basis.
Credit Losses on Convertible Note Investments reflects credit impairments associated with pre-equity convertible note investments in early-stage proptech enterprises. Such losses are similar to the equity investment-related losses included in equity earnings/losses for JLL Technologies' investments and are therefore consistently excluded from adjusted measures.
Reconciliation of Non-GAAP Financial Measures
Below are (i) a reconciliation of Net income attributable to common shareholders to Adjusted EBITDA, (ii) a reconciliation to Adjusted net income and (iii) components of Adjusted diluted earnings per share.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||
Net income attributable to common shareholders | $ 155.1 | $ 59.7 | $ 305.6 | $ 53.0 | |||
Add: | |||||||
Interest expense, net of interest income | 38.1 | 37.1 | 110.3 | 103.9 | |||
Income tax provision | 37.4 | 14.5 | 73.8 | 13.0 | |||
Depreciation and amortization(a) | 64.5 | 58.1 | 185.9 | 173.6 | |||
Adjustments: | |||||||
Restructuring and acquisition charges4 | (8.8) | 31.6 | 4.4 | 79.1 | |||
Net (gain) loss on disposition | — | (1.3) | — | 0.5 | |||
Net non-cash MSR and mortgage banking derivative activity | 5.1 | 7.1 | 25.9 | 9.5 | |||
Interest on employee loans, net of forgiveness | (1.8) | (1.6) | (4.1) | (2.3) | |||
Equity losses - JLL Technologies and | 2.2 | 12.1 | 23.4 | 125.0 | |||
Credit losses on convertible note investments | 6.3 | — | 6.3 | — | |||
Adjusted EBITDA | $ 298.1 | $ 217.3 | $ 731.5 | $ 555.3 | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(In millions, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||
Net income attributable to common shareholders | $ 155.1 | $ 59.7 | $ 305.6 | $ 53.0 | |||
Diluted shares (in thousands) | 48,497 | 48,394 | 48,355 | 48,317 | |||
Diluted earnings per share | $ 3.20 | $ 1.23 | $ 6.32 | $ 1.10 | |||
Net income attributable to common shareholders | $ 155.1 | $ 59.7 | $ 305.6 | $ 53.0 | |||
Adjustments: | |||||||
Restructuring and acquisition charges4 | (8.8) | 31.6 | 4.4 | 79.1 | |||
Net non-cash MSR and mortgage banking derivative activity | 5.1 | 7.1 | 25.9 | 9.5 | |||
Amortization of acquisition-related intangibles(a) | 15.6 | 16.2 | 46.6 | 49.9 | |||
Net (gain) loss on disposition | — | (1.3) | — | 0.5 | |||
Interest on employee loans, net of forgiveness | (1.8) | (1.6) | (4.1) | (2.3) | |||
Equity losses - JLL Technologies and | 2.2 | 12.1 | 23.4 | 125.0 | |||
Credit losses on convertible note investments | 6.3 | — | 6.3 | — | |||
Tax impact of adjusted items(b) | (3.7) | (17.5) | (28.9) | (72.0) | |||
Adjusted net income attributable to common shareholders | $ 170.0 | $ 106.3 | $ 379.2 | $ 242.7 | |||
Diluted shares (in thousands) | 48,497 | 48,394 | 48,355 | 48,317 | |||
Adjusted diluted earnings per share | $ 3.50 | $ 2.19 | $ 7.84 | $ 5.02 | |||
(a) | This adjustment excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders. |
(b) | For the first half of 2024 and the first nine months of 2023, the tax impact of adjusted items was calculated using the applicable statutory rates by tax jurisdiction. For the third quarter of 2024, the tax impact of adjusted items was calculated using the consolidated effective tax rate, as this was deemed to approximate the tax impact of adjusted items calculated using applicable statutory tax rates. |
Operating Results - Local Currency
In discussing operating results, the company refers to percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of foreign operations to
The following table reflects the reconciliation to local currency amounts for consolidated (i) Revenue, (ii) Operating income and (iii) Adjusted EBITDA.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
($ in millions) | 2024 | % Change | 2024 | % Change | |||
Revenue: | |||||||
At current period exchange rates | $ 5,868.8 | 15 % | $ 16,622.0 | 12 % | |||
Impact of change in exchange rates | (8.5) | n/a | 29.5 | n/a | |||
At comparative period exchange rates | $ 5,860.3 | 15 % | $ 16,651.5 | 12 % | |||
Operating income: | |||||||
At current period exchange rates | $ 228.3 | 92 % | $ 494.9 | 73 % | |||
Impact of change in exchange rates | 0.2 | n/a | 8.3 | n/a | |||
At comparative period exchange rates | $ 228.5 | 92 % | $ 503.2 | 76 % | |||
Adjusted EBITDA: | |||||||
At current period exchange rates | $ 298.1 | 37 % | $ 731.5 | 32 % | |||
Impact of change in exchange rates | (0.1) | n/a | 7.9 | n/a | |||
At comparative period exchange rates | $ 298.0 | 37 % | $ 739.4 | 33 % | |||
2. n.m.: "not meaningful", represented by a percentage change of greater than 1,
3. As of September 30, 2024,
Compared with AUM of
Assets under management data for separate accounts and fund management amounts are reported on a one-quarter lag. In addition, LaSalle raised
4. Restructuring and acquisition charges are excluded from the company's measure of segment operating results, although they are included within consolidated Operating income calculated in accordance with GAAP. For purposes of segment operating results, the allocation of Restructuring and acquisition charges to the segments is not a component of management's assessment of segment performance. The table below shows Restructuring and acquisition charges.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
(in millions) | 2024 | 2023 | 2024 | 2023 | |||
Severance and other employment-related charges | $ 6.1 | $ 16.4 | $ 17.8 | $ 47.9 | |||
Restructuring, pre-acquisition and post-acquisition charges | 6.0 | 15.1 | 20.1 | 31.7 | |||
Fair value adjustments that resulted in a net (decrease) increase to earn-out liabilities from prior-period acquisition activity | (20.9) | 0.1 | (33.5) | (0.5) | |||
Total Restructuring and acquisition charges | $ (8.8) | $ 31.6 | $ 4.4 | $ 79.1 | |||
5. "Gross contract costs" represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are directly or indirectly reimbursed through the fees we receive. These costs are presented on a gross basis in Operating expenses (with the corresponding fees in Revenue).
"Net Debt" is defined as the sum of the (i) Credit facility, inclusive of debt issuance costs, (ii) Long-term debt, inclusive of debt issuance costs, (iii) Commercial paper, inclusive of debt issuance costs and (iv) Short-term borrowings liability balances less Cash and cash equivalents.
"Net Leverage Ratio" is defined as Net Debt divided by the trailing twelve-month Adjusted EBITDA.
Below is a reconciliation of total debt to Net Debt and the components of Net Leverage Ratio.
($ in millions) | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||
Total debt | $ 2,035.1 | $ 2,176.4 | $ 2,088.1 | ||
Less: Cash and cash equivalents | 437.8 | 424.4 | 389.5 | ||
Net Debt | $ 1,597.3 | $ 1,752.0 | $ 1,698.6 | ||
Divided by: Trailing twelve-month Adjusted EBITDA | $ 1,114.6 | $ 1,033.8 | $ 915.3 | ||
Net Leverage Ratio | 1.4x | 1.7x | 1.9x |
"Corporate Liquidity" is defined as the unused portion of the company's Credit facility plus cash and cash equivalents.
"Free Cash Flow" is defined as cash provided by operating activities less net capital additions - property and equipment.
Below is a reconciliation of net cash used in operating activities to Free Cash Flow.
Nine Months Ended September 30, | |||
(in millions) | 2024 | 2023 | |
Net cash used in operating activities | $ (142.0) | $ (153.6) | |
Net capital additions - property and equipment | (126.3) | (137.7) | |
Free Cash Flow | $ (268.3) | $ (291.3) | |
6. The company defines "Resilient" revenue as (i) Property Management, within Markets Advisory, (ii) Value and Risk Advisory, and Loan Servicing, within Capital Markets, (iii) Workplace Management, within Work Dynamics, (iv) JLL Technologies and (v) Advisory Fees, within
The company defines "Transactional" revenue as (i) Leasing and Advisory, Consulting and Other, within Markets Advisory, (ii) Investment Sales, Debt/Equity Advisory and Other, within Capital Markets, (iii) Project Management and Portfolio Services and Other, within Work Dynamics and (iv) Incentive fees and Transaction fees and other, within
7. Within the Consolidated Statements of Cash Flows, the company made certain presentation changes and recast prior-period information to conform with the current presentation. More specifically, the company recast certain components and captions within Cash flows from operating activities, which had no impact on previously-reported Net cash provided by operating activities or on the other consolidated financial statements.
8.
Appendix: Additional Segment Detail
Three Months Ended September 30, 2024 | |||||||||||||||||||||||
(in millions) | Markets Advisory | Capital Markets | Work Dynamics | ||||||||||||||||||||
Leasing | Property Mgmt | Advisory, Consulting and Other | Total Markets Advisory | Invt Sales, Debt/Equity Advisory and Other | Value and Risk Advisory | Loan Servicing | Total Capital Markets | Workplace Mgmt | Project Mgmt | Portfolio Services and Other | Total Work Dynamics | JLLT | Total | ||||||||||
Revenue(a) | $ 665.4 | 452.3 | 26.1 | $ 1,143.8 | $ 371.8 | 86.0 | 41.0 | $ 498.8 | $ 3,164.6 | 771.3 | 132.3 | $ 4,068.2 | $ 56.7 | $ 101.3 | $ 5,868.8 | ||||||||
Gross contract costs5 | $ 5.1 | 311.2 | 4.6 | $ 320.9 | $ 7.9 | 3.6 | — | $ 11.5 | $ 2,928.0 | 528.5 | 62.2 | $ 3,518.7 | $ 1.4 | $ 9.3 | $ 3,861.8 | ||||||||
Platform operating expenses | $ 687.5 | $ 444.4 | $ 500.9 | $ 74.3 | $ 80.4 | $ 1,787.5 | |||||||||||||||||
Adjusted EBITDA1 | $ 151.9 | $ 65.7 | $ 74.3 | $ (7.8) | $ 14.0 | $ 298.1 | |||||||||||||||||
(a) | Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of |
Three Months Ended September 30, 2023 | |||||||||||||||||||||||
(in millions) | Markets Advisory | Capital Markets | Work Dynamics | ||||||||||||||||||||
Leasing | Property Mgmt | Advisory, Consulting and Other | Total Markets Advisory | Invt Sales, Debt/Equity Advisory and Other | Value and Risk Advisory | Loan Servicing | Total Capital Markets | Workplace Mgmt | Project Mgmt | Portfolio Services and Other | Total Work Dynamics | JLLT | Total | ||||||||||
Revenue | $ 547.7 | 419.2 | 25.5 | $ 992.4 | $ 310.2 | 87.5 | 38.1 | $ 435.8 | $ 2,637.1 | 747.0 | 130.1 | $ 3,514.2 | $ 58.9 | $ 110.1 | $ 5,111.4 | ||||||||
Gross contract costs5 | $ 5.2 | 280.8 | 2.4 | $ 288.4 | $ 8.4 | 3.1 | — | $ 11.5 | $ 2,442.0 | 517.4 | 57.1 | $ 3,016.5 | $ 3.3 | $ 7.4 | $ 3,327.1 | ||||||||
Platform operating expenses | $ 634.6 | $ 398.5 | $ 455.9 | $ 65.2 | $ 79.4 | $ 1,633.6 | |||||||||||||||||
Adjusted EBITDA1 | $ 85.1 | $ 50.3 | $ 61.6 | $ (5.7) | $ 26.0 | $ 217.3 | |||||||||||||||||
(a) | Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of |
Appendix: Additional Segment Detail (continued)
Nine Months Ended September 30, 2024 | |||||||||||||||||||||||
(in millions) | Markets Advisory | Capital Markets | Work Dynamics | ||||||||||||||||||||
Leasing | Property Mgmt | Advisory, Consulting and Other | Total Markets Advisory | Invt Sales, Debt/Equity Advisory and Other | Value and Risk Advisory | Loan Servicing | Total Capital Markets | Workplace Mgmt | Project Mgmt | Portfolio Services and Other | Total Work Dynamics | JLLT | Total | ||||||||||
Revenue(a) | $ 1,781.8 | 1,318.6 | 72.3 | $ 3,172.7 | $ 950.8 | 262.0 | 121.2 | $ 1,334.0 | $ 9,057.4 | 2,215.8 | 367.8 | $ 11,641.0 | $ 167.0 | $ 307.3 | $ 16,622.0 | ||||||||
Gross contract costs5 | $ 15.2 | 914.1 | 9.2 | $ 938.5 | $ 27.6 | 9.3 | — | $ 36.9 | $ 8,384.5 | 1,529.6 | 187.9 | $ 10,102.0 | $ 4.0 | $ 26.5 | $ 11,107.9 | ||||||||
Platform operating expenses | $ 1,907.2 | $ 1,250.9 | $ 1,411.3 | $ 207.3 | $ 238.1 | $ 5,014.8 | |||||||||||||||||
Adjusted EBITDA1 | $ 376.8 | $ 124.5 | $ 196.3 | $ (23.8) | $ 57.7 | $ 731.5 | |||||||||||||||||
(a) | Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of |
Nine Months Ended September 30, 2023 | |||||||||||||||||||||||
(in millions) | Markets Advisory | Capital Markets | Work Dynamics | ||||||||||||||||||||
Leasing | Property Mgmt | Advisory, Consulting and Other | Total Markets Advisory | Invt Sales, Debt/Equity Advisory and Other | Value and Risk Advisory | Loan Servicing | Total Capital Markets | Workplace Mgmt | Project Mgmt | Portfolio Services and Other | Total Work Dynamics | JLLT | Total | ||||||||||
Revenue(a) | $ 1,626.1 | 1,229.3 | 68.8 | $ 2,924.2 | $ 870.3 | 256.1 | 114.5 | $ 1,240.9 | $ 7,687.7 | 2,126.5 | 350.8 | $ 10,165.0 | $ 180.9 | $ 368.4 | $ 14,879.4 | ||||||||
Gross contract costs5 | $ 13.1 | 832.8 | 5.9 | $ 851.8 | $ 25.8 | 8.1 | — | $ 33.9 | $ 7,121.2 | 1,456.3 | 170.0 | $ 8,747.5 | $ 11.0 | $ 22.0 | $ 9,666.2 | ||||||||
Platform operating expenses | $ 1,863.4 | $ 1,175.2 | $ 1,333.8 | $ 207.0 | $ 268.6 | $ 4,848.0 | |||||||||||||||||
Adjusted EBITDA1 | $ 256.1 | $ 97.0 | $ 143.5 | $ (25.2) | $ 83.9 | $ 555.3 | |||||||||||||||||
(a) | Included as a reduction to Revenue is Net non-cash MSR and mortgage banking derivative activity of |
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SOURCE JLL-IR
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