Resilient business line revenues drove performance as
pullback in transaction activity continued into Q2
CHICAGO, Aug. 3, 2023
/PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today
reported operating income of $149.2
million for the second quarter of 2023. Diluted earnings per
share were $0.05 and adjusted diluted
earnings per share1 were $0.50 for the quarter; both included a loss of
$1.69 per diluted share associated
with equity losses. In the prior-year quarter, equity earnings
contributed earnings of $0.89 per
diluted share.
- Second-quarter revenue was $5.1
billion, down 4% in local currency1, and fee
revenue1 was $1.8 billion,
down 13% in local currency1
-
- Market-wide transaction slowdown and extended interest rate
uncertainty continued to impact Capital Markets volumes
- Lower Leasing activity across asset classes and most
geographies overshadowed Property Management growth within Markets
Advisory
- Project Management demand continued in several geographies,
more than offsetting lower Portfolio Services revenues in Work
Dynamics
- Margin contraction was driven by lower transaction-based
revenues, particularly in United
States and Europe, and a
non-cash change in equity earnings/losses primarily associated with
two JLL Technologies investments
- Annual run-rate savings rose $70
million to $210 million in
total; recent cost reduction actions mostly offset investments to
drive future growth
- Generated year-over-year improvement in Q2 cash provided by
operating activities despite transaction-based revenue
headwinds
"Our second quarter financial results reflect continued growth
in our resilient revenues. While investment sales and leasing
volumes remained muted across the industry this quarter, we are
beginning to see recovery signs as credit spreads narrow and asset
prices adjust to the current rate environment," said Christian Ulbrich, JLL CEO. "We continue to make
progress on our long-term plan to improve operating efficiency
while also making targeted investments in our brokerage teams that
will drive profitable growth as market conditions improve. We are
well positioned to provide exceptional service to our clients
globally and capitalize on the significant growth opportunities we
see in the years ahead."
Summary Financial
Results
($ in millions,
except per share data, "LC" = local currency)
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
2023
|
|
2022
|
% Change
in USD
|
% Change
in LC
|
|
2023
|
|
2022
|
% Change
in USD
|
% Change
in LC
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
5,052.5
|
|
$
5,278.4
|
(4) %
|
(4) %
|
|
$
9,768.0
|
|
$ 10,079.8
|
(3) %
|
(2) %
|
Fee
revenue1
|
1,847.3
|
|
2,138.8
|
(14)
|
(13)
|
|
3,431.3
|
|
4,039.3
|
(15)
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
2.5
|
|
$
193.9
|
(99) %
|
(99) %
|
|
$
(6.7)
|
|
$
339.5
|
(102) %
|
(104) %
|
Adjusted net income
attributable to common shareholders1
|
24.2
|
|
222.4
|
(89)
|
(89)
|
|
55.5
|
|
399.3
|
(86)
|
(88)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
$
0.05
|
|
$
3.90
|
(99) %
|
(99) %
|
|
$
(0.14)
|
|
$
6.75
|
(102) %
|
(104) %
|
Adjusted diluted
earnings per share1
|
0.50
|
|
4.48
|
(89)
|
(89)
|
|
1.15
|
|
7.94
|
(86)
|
(87)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
$
116.1
|
|
$
359.0
|
(68) %
|
(68) %
|
|
$
225.1
|
|
$
632.6
|
(64) %
|
(65) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow5
|
$
198.1
|
|
$
136.7
|
45 %
|
n/a
|
|
$
(567.5)
|
|
$
(626.3)
|
9 %
|
n/a
|
|
Note: For discussion
and reconciliation of non-GAAP financial measures, see the Notes
following the Financial Statements in this news release.
|
Consolidated
Second-Quarter 2023 Performance Highlights:
|
Consolidated
($ in millions, "LC" =
local currency)
|
Three Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
|
Six Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Markets
Advisory
|
$
1,025.4
|
|
$
1,118.2
|
|
(8) %
|
|
(7) %
|
|
$
1,931.8
|
|
$
2,117.7
|
|
(9) %
|
|
(7) %
|
Capital
Markets
|
448.0
|
|
684.5
|
|
(35)
|
|
(34)
|
|
805.1
|
|
1,285.1
|
|
(37)
|
|
(36)
|
Work
Dynamics
|
3,374.6
|
|
3,310.5
|
|
2
|
|
3
|
|
6,650.8
|
|
6,344.1
|
|
5
|
|
7
|
JLL
Technologies
|
60.6
|
|
50.7
|
|
20
|
|
20
|
|
122.0
|
|
100.1
|
|
22
|
|
22
|
LaSalle
|
143.9
|
|
114.5
|
|
26
|
|
26
|
|
258.3
|
|
232.8
|
|
11
|
|
13
|
Total
revenue
|
$
5,052.5
|
|
$
5,278.4
|
|
(4) %
|
|
(4) %
|
|
$
9,768.0
|
|
$
10,079.8
|
|
(3) %
|
|
(2) %
|
Gross contract
costs1
|
(3,205.8)
|
|
(3,128.4)
|
|
2
|
|
3
|
|
(6,339.1)
|
|
(6,032.9)
|
|
5
|
|
7
|
Net non-cash MSR and
mortgage banking
derivative activity
|
0.6
|
|
(11.2)
|
|
(105)
|
|
(106)
|
|
2.4
|
|
(7.6)
|
|
(132)
|
|
(132)
|
Total fee
revenue1
|
$
1,847.3
|
|
$
2,138.8
|
|
(14) %
|
|
(13) %
|
|
$
3,431.3
|
|
$
4,039.3
|
|
(15) %
|
|
(14) %
|
Markets
Advisory
|
741.1
|
|
855.8
|
|
(13)
|
|
(13)
|
|
1,368.4
|
|
1,597.0
|
|
(14)
|
|
(13)
|
Capital
Markets
|
435.5
|
|
660.7
|
|
(34)
|
|
(34)
|
|
785.1
|
|
1,252.2
|
|
(37)
|
|
(36)
|
Work
Dynamics
|
477.8
|
|
467.0
|
|
2
|
|
3
|
|
919.8
|
|
877.5
|
|
5
|
|
7
|
JLL
Technologies
|
56.5
|
|
48.0
|
|
18
|
|
18
|
|
114.3
|
|
93.3
|
|
23
|
|
23
|
LaSalle
|
136.4
|
|
107.3
|
|
27
|
|
28
|
|
243.7
|
|
219.3
|
|
11
|
|
14
|
Operating
income
|
$
149.2
|
|
$
235.1
|
|
(37) %
|
|
(37) %
|
|
$
167.0
|
|
$
410.8
|
|
(59) %
|
|
(61) %
|
Equity (losses)
earnings
|
$
(103.5)
|
|
$
53.6
|
|
(293) %
|
|
(293) %
|
|
$
(106.1)
|
|
$
72.1
|
|
(247) %
|
|
(247) %
|
Adjusted
EBITDA1
|
$
116.1
|
|
$
359.0
|
|
(68) %
|
|
(68) %
|
|
$
225.1
|
|
$
632.6
|
|
(64) %
|
|
(65) %
|
Net income (loss)
margin attributable to
common shareholders (USD basis)
|
— %
|
|
3.7 %
|
|
(370) bps
|
|
n/a
|
|
(0.1) %
|
|
3.4 %
|
|
(350) bps
|
|
n/a
|
Adjusted EBITDA margin
(local currency basis)
|
6.2 %
|
|
16.8 %
|
|
(1,050) bps
|
|
(1,060) bps
|
|
6.3 %
|
|
15.7 %
|
|
(910) bps
|
|
(940) bps
|
Adjusted EBITDA margin
(USD basis)
|
6.3 %
|
|
|
|
|
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.
|
Revenue
Revenue and fee revenue decreased 4% and 13%, respectively,
compared with the prior-year quarter. Businesses with resilient
revenues continued to deliver fee revenue growth for the quarter,
as JLL Technologies was up 18%; Property Management, within Markets
Advisory, grew 9%; and Workplace Management, within Work Dynamics,
grew 2%. Consistent with the first quarter, economic headwinds and
continued interest rate uncertainty adversely impacted most of the
transaction-based businesses, notably Investment Sales and
Debt/Equity Advisory within Capital Markets, Leasing within Markets
Advisory, and Portfolio Services and Other within Work Dynamics.
However, Project Management, within Work Dynamics, was up 8% due to
continued project demand in several geographies. LaSalle's double-digit top-line growth was
attributable to higher incentive fees.
Refer to segment performance highlights for additional detail.
The following charts reflect the segment proportion of revenue and
fee revenue for the current and prior-year quarters.
Net income (loss), Adjusted EBITDA and Margin
Performance
Net income attributable to common shareholders for the second
quarter was $2.5 million, compared
with $193.9 million in 2022, and
Adjusted EBITDA was $116.1 million,
compared with $359.0 million last
year. The current quarter included $103.5
million of equity losses compared with $53.6 million of equity earnings in the
prior-year quarter. In addition, interest expense, net of interest
income, increased $24.8 million,
compared with the prior year, due to an increase in the average
outstanding borrowings under our credit facilities and a higher
effective interest rate.
Diluted earnings per share for the second quarter were
$0.05, down from $3.90 in 2022; adjusted diluted earnings per
share were $0.50, compared with
$4.48 last year.
Approximately 740 basis points, or 70%, of the adjusted EBITDA
margin contraction was driven by the change in equity
earnings/losses, net of carried interest. The residual decline was
primarily due to lower transaction-based revenue, specifically
Investment Sales, Debt/Equity Advisory, and Leasing. In addition,
recent cost reduction actions mostly offset investments in the
business to drive future growth.
The six months ended June 30,
2023, had a net loss attributable to common shareholders of
$6.7 million, compared with income of
$339.5 million last year, and
Adjusted EBITDA was $225.1 million
this year, compared with $632.6
million in 2022. Diluted loss per share was $0.14 for the six months ended June 30, 2023, down from diluted earnings per
share of $6.75 in 2022; adjusted
diluted earnings per share were $1.15, compared with $7.94 last year.
Cash Flows and Capital Allocation:
Net cash provided by operating activities was $237.0 million for the second quarter of 2023,
compared with $177.0 million in the
comparative quarter. Free Cash Flow5 was an inflow of
$198.1 million this quarter, compared
with $136.7 million in the second
quarter of 2022. Incremental cash flows associated with net
reimbursables and trade receivables outpaced a decline in cash
provided by earnings. The year-over-year decline in cash provided
by earnings and lower cash outflows associated with commission
payments for the second quarter were largely driven by the Capital
Markets and Markets Advisory change in business performance.
In the second quarter of 2023, the company resumed its share
repurchase program, buying back 139,295 shares for $20.0 million. In the second quarter of 2022,
1,397,900 shares were repurchased, returning $297.7 million to shareholders. As of
June 30, 2023, $1,135.6 million remained authorized for
repurchase under the share repurchase program.
Net Debt, Leverage
and Liquidity5:
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
|
|
|
|
|
Total Net Debt (in
millions)
|
$
1,941.5
|
|
$
2,099.3
|
|
$
1,575.9
|
|
|
|
|
|
|
Net Leverage
Ratio
|
2.3x
|
|
1.9x
|
|
1.0x
|
|
|
|
|
|
|
Corporate Liquidity (in
billions)
|
$
1.9
|
|
$
1.7
|
|
$
1.9
|
The decrease in Net Debt from March 31,
2023, was primarily due to positive cash flow from operating
activities in the second quarter. The higher leverage ratio was
entirely driven by a decline in the trailing twelve month Adjusted
EBITDA (which includes the impact of equity losses this
quarter).
Markets Advisory
Second-Quarter 2023 Performance Highlights:
|
Markets
Advisory
($ in millions, "LC" = local
currency)
|
Three Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
|
Six Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
1,025.4
|
|
$
1,118.2
|
|
(8) %
|
|
(7) %
|
|
$
1,931.8
|
|
$
2,117.7
|
|
(9) %
|
|
(7) %
|
Gross contract
costs1
|
(284.3)
|
|
(262.4)
|
|
8
|
|
10
|
|
(563.4)
|
|
(520.7)
|
|
8
|
|
11
|
Fee
revenue1
|
$
741.1
|
|
$
855.8
|
|
(13) %
|
|
(13) %
|
|
$
1,368.4
|
|
$
1,597.0
|
|
(14) %
|
|
(13) %
|
Leasing
|
588.0
|
|
703.5
|
|
(16)
|
|
(16)
|
|
1,070.5
|
|
1,300.4
|
|
(18)
|
|
(17)
|
Property
Management
|
131.0
|
|
122.2
|
|
7
|
|
9
|
|
258.1
|
|
240.8
|
|
7
|
|
10
|
Advisory, Consulting
and Other
|
22.1
|
|
30.1
|
|
(27)
|
|
(25)
|
|
39.8
|
|
55.8
|
|
(29)
|
|
(26)
|
Segment operating
income
|
$
84.0
|
|
$
116.2
|
|
(28) %
|
|
(28) %
|
|
$
139.6
|
|
$
207.6
|
|
(33) %
|
|
(33) %
|
Adjusted
EBITDA1
|
$
99.4
|
|
$
134.0
|
|
(26) %
|
|
(26) %
|
|
$
171.0
|
|
$
245.2
|
|
(30) %
|
|
(31) %
|
Adjusted EBITDA margin
(local currency basis)
|
13.2 %
|
|
15.7 %
|
|
(230) bps
|
|
(250) bps
|
|
12.3 %
|
|
15.4 %
|
|
(290) bps
|
|
(310) bps
|
Adjusted EBITDA margin
(USD basis)
|
13.4 %
|
|
|
|
|
12.5 %
|
|
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 declines in Markets Advisory revenue and fee revenue,
compared with the prior-year quarter, were predominantly driven by
Leasing, which continues to reflect (i) lower transaction volume
across asset types, particularly in the office and industrial
sectors, and (ii) a decrease in average deal size across most asset
types, most notably in the United
States industrial sector. Specific to the office sector, the
change in Leasing fee revenue was largely in line with trends in
global market volumes as gross absorption fell 14%, globally,
according to JLL Research. The decrease in Advisory, Consulting and
Other was substantially driven by the absence of revenues
associated with a business exited during the fourth quarter of
2022. These decreases were partially offset by Property Management
growth, which was primarily attributable to portfolio expansion in
the Americas and incremental fees from interest-rate sensitive
contract terms in the U.K.
The adjusted EBITDA margin contraction was predominantly
attributable to the lower Leasing fee revenue described above.
Capital Markets
Second-Quarter 2023 Performance Highlights:
|
Capital
Markets
($ in millions, "LC" = local currency)
|
Three Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
|
Six Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
448.0
|
|
$
684.5
|
|
(35) %
|
|
(34) %
|
|
$
805.1
|
|
$
1,285.1
|
|
(37) %
|
|
(36) %
|
Gross contract
costs1
|
(13.1)
|
|
(12.6)
|
|
4
|
|
6
|
|
(22.4)
|
|
(25.3)
|
|
(11)
|
|
(9)
|
Net non-cash MSR and
mortgage banking derivative activity
|
0.6
|
|
(11.2)
|
|
(105)
|
|
(106)
|
|
2.4
|
|
(7.6)
|
|
(132)
|
|
(132)
|
Fee
revenue1
|
$
435.5
|
|
$
660.7
|
|
(34) %
|
|
(34) %
|
|
$
785.1
|
|
$
1,252.2
|
|
(37) %
|
|
(36) %
|
Investment Sales,
Debt/Equity Advisory and Other
|
309.9
|
|
528.0
|
|
(41)
|
|
(41)
|
|
545.1
|
|
996.5
|
|
(45)
|
|
(45)
|
Valuation
Advisory
|
86.6
|
|
92.3
|
|
(6)
|
|
(5)
|
|
163.6
|
|
175.4
|
|
(7)
|
|
(4)
|
Loan
Servicing
|
39.0
|
|
40.4
|
|
(3)
|
|
(3)
|
|
76.4
|
|
80.3
|
|
(5)
|
|
(5)
|
Segment operating
income
|
$
14.1
|
|
$
121.8
|
|
(88) %
|
|
(89) %
|
|
$
6.0
|
|
$
220.0
|
|
(97) %
|
|
(98) %
|
Equity
earnings
|
$
4.8
|
|
$
0.6
|
|
700 %
|
|
761 %
|
|
$
5.4
|
|
$
1.4
|
|
286 %
|
|
285 %
|
Adjusted
EBITDA1
|
$
36.0
|
|
$
126.7
|
|
(72) %
|
|
(72) %
|
|
$
46.7
|
|
$
244.9
|
|
(81) %
|
|
(81) %
|
Adjusted EBITDA margin
(local currency basis)
|
8.2 %
|
|
19.2 %
|
|
(1,090) bps
|
|
(1,100) bps
|
|
5.8 %
|
|
19.6 %
|
|
(1,370) bps
|
|
(1,380) bps
|
Adjusted EBITDA margin
(USD basis)
|
8.3 %
|
|
|
|
|
5.9 %
|
|
|
|
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 Capital Markets revenue and fee revenue continued to
reflect muted transaction volume compared with 2022. This impact
was most acute in Investment Sales and Debt/Equity Advisory, which
experienced declines across all asset classes and most geographies
compared with the prior-year quarter. This outperformed broader
market trends as Q2 global market volumes for investment sales were
down 54% in USD (53% in local currency) according to JLL Research.
The decline in Loan Servicing was attributable to $3.7 million of lower prepayment fees, as
refinancing activity slowed over the last twelve months, mostly
offset by continued growth in the portfolio originated under the
Fannie Mae DUS program.
The adjusted EBITDA margin contraction for the quarter was
predominantly driven by the decline in fee revenue described above
and a $7.0 million year-over-year
negative change in loan loss credit reserves. In addition, higher
equity earnings, which are not expected to recur in future years,
provided a modest boost for the current quarter.
Work Dynamics
Second-Quarter 2023 Performance Highlights:
|
Work
Dynamics
($ in millions, "LC" = local currency)
|
Three Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
|
Six Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
3,374.6
|
|
$
3,310.5
|
|
2 %
|
|
3 %
|
|
$
6,650.8
|
|
$
6,344.1
|
|
5 %
|
|
7 %
|
Gross contract
costs1
|
(2,896.8)
|
|
(2,843.5)
|
|
2
|
|
3
|
|
(5,731.0)
|
|
(5,466.6)
|
|
5
|
|
7
|
Fee
revenue1
|
$
477.8
|
|
$
467.0
|
|
2 %
|
|
3 %
|
|
$
919.8
|
|
$
877.5
|
|
5 %
|
|
7 %
|
Workplace
Management
|
188.2
|
|
184.9
|
|
2
|
|
2
|
|
371.4
|
|
366.9
|
|
1
|
|
3
|
Project
Management
|
229.7
|
|
214.9
|
|
7
|
|
8
|
|
440.6
|
|
390.6
|
|
13
|
|
15
|
Portfolio Services
and Other
|
59.9
|
|
67.2
|
|
(11)
|
|
(11)
|
|
107.8
|
|
120.0
|
|
(10)
|
|
(9)
|
Segment operating
income
|
$
35.7
|
|
$
39.7
|
|
(10) %
|
|
(12) %
|
|
$
41.9
|
|
$
58.1
|
|
(28) %
|
|
(34) %
|
Adjusted
EBITDA1
|
$
56.2
|
|
$
57.6
|
|
(2) %
|
|
(3) %
|
|
$
81.9
|
|
$
92.8
|
|
(12) %
|
|
(15) %
|
Adjusted EBITDA margin
(local currency basis)
|
11.6 %
|
|
12.4 %
|
|
(60) bps
|
|
(80) bps
|
|
8.5 %
|
|
10.6 %
|
|
(170) bps
|
|
(210) bps
|
Adjusted EBITDA margin
(USD basis)
|
11.8 %
|
|
|
|
|
8.9 %
|
|
|
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 and fee revenue increases compared with
the prior-year quarter were driven by strength in Project
Management and modest growth in Workplace Management, partially
offset by lower Portfolio Services and Other. Project Management
growth reflected continued demand in certain geographies, most
notably Australia,
France, MENA and the U.K. The decline in Portfolio Services
revenue reflected the meaningful correlation between Portfolio
Services and Leasing activity.
The net margin contraction was attributable to the decline in
higher-margin Portfolio Services revenue and continued investments
in technology and headcount to support future growth. In addition,
and partially offsetting these dilutive impacts, the prior-year
margin reflected $4.1 million of net
contract losses in Europe which
did not recur this quarter.
JLL Technologies
Second-Quarter 2023 Performance Highlights:
|
JLL
Technologies
($ in millions, "LC" = local currency)
|
Three Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
|
Six Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
60.6
|
|
$
50.7
|
|
20 %
|
|
20 %
|
|
$
122.0
|
|
$
100.1
|
|
22 %
|
|
22 %
|
Gross contract
costs1
|
(4.1)
|
|
(2.7)
|
|
52
|
|
53
|
|
(7.7)
|
|
(6.8)
|
|
13
|
|
13
|
Fee
revenue1
|
$
56.5
|
|
$
48.0
|
|
18 %
|
|
18 %
|
|
$
114.3
|
|
$
93.3
|
|
23 %
|
|
23 %
|
Segment operating
loss(a)
|
$
(5.4)
|
|
$
(35.6)
|
|
85 %
|
|
84 %
|
|
$
(27.5)
|
|
$
(70.5)
|
|
61 %
|
|
60 %
|
Equity (losses)
earnings
|
$
(103.9)
|
|
$
44.7
|
|
(332) %
|
|
(332) %
|
|
$
(99.0)
|
|
$
63.5
|
|
(256) %
|
|
(256) %
|
Adjusted
EBITDA1
|
$
(105.2)
|
|
$
12.9
|
|
(916) %
|
|
(914) %
|
|
$
(118.5)
|
|
$
0.6
|
|
n.m.
|
|
n.m.
|
Adjusted EBITDA margin
(local currency basis)
|
(186.9) %
|
|
27.0 %
|
|
n.m.
|
|
n.m.
|
|
(104.1) %
|
|
0.6 %
|
|
n.m.
|
|
n.m.
|
Adjusted EBITDA margin
(USD basis)
|
(186.2) %
|
|
|
|
|
(103.7) %
|
|
|
|
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 operating loss for JLL
Technologies is a reduction in carried interest expense of $10.0
million and $9.3 million for the three and six months ended June
30, 2023, respectively, and carried interest expense of $9.8
million and $16.0 million for the three and six months ended June
30, 2022, related to Equity earnings of the
segment.
|
The increases in JLL Technologies revenue and fee revenue
over the prior-year quarter were primarily driven by growth in
solutions and service offerings, largely from existing enterprise
clients.
The current-quarter equity loss resulted from valuation declines
in JLL Technologies' investments due to subsequent financing rounds
at decreased per-share values. The equity losses this quarter were
predominantly driven by two investments for which we previously
recognized significant equity earnings.
A notable driver of the change in Segment operating loss is a
$10.0 million reduction in carried
interest expense this quarter, associated with the equity losses,
compared with $9.8 million of
incremental expense last year, associated with the equity
earnings.
The margin decline was entirely driven by the year-over-year
change in equity earnings/losses, net of carried interest, as fee
revenue growth and recent cost reductions drove improvement in
segment operating loss.
LaSalle
Second-Quarter 2023 Performance Highlights:
|
|
LaSalle
($ in millions, "LC" = local currency)
|
Three Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
|
Six Months Ended
June 30,
|
|
% Change in
USD
|
|
% Change in
LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
143.9
|
|
$
114.5
|
|
26 %
|
|
26 %
|
|
$
258.3
|
|
$
232.8
|
|
11 %
|
|
13 %
|
Gross contract
costs1
|
(7.5)
|
|
(7.2)
|
|
4
|
|
4
|
|
(14.6)
|
|
(13.5)
|
|
8
|
|
8
|
Fee
revenue1
|
$
136.4
|
|
$
107.3
|
|
27 %
|
|
28 %
|
|
$
243.7
|
|
$
219.3
|
|
11 %
|
|
14 %
|
Advisory
fees
|
94.4
|
|
98.2
|
|
(4)
|
|
(3)
|
|
189.1
|
|
188.9
|
|
—
|
|
2
|
Transaction fees and
other
|
6.2
|
|
8.1
|
|
(23)
|
|
(19)
|
|
15.3
|
|
25.2
|
|
(39)
|
|
(36)
|
Incentive
fees
|
35.8
|
|
1.0
|
|
n.m.
|
|
n.m.
|
|
39.3
|
|
5.2
|
|
656
|
|
671
|
Segment operating
income
|
$
32.6
|
|
$
18.9
|
|
72 %
|
|
72 %
|
|
$
54.5
|
|
$
41.0
|
|
33 %
|
|
34 %
|
Equity (losses)
earnings
|
$
(5.1)
|
|
$
7.0
|
|
(173) %
|
|
(172) %
|
|
$
(13.9)
|
|
$
5.1
|
|
(373) %
|
|
(372) %
|
Adjusted
EBITDA1
|
$
29.7
|
|
$
27.8
|
|
7 %
|
|
7 %
|
|
$
44.0
|
|
$
49.1
|
|
(10) %
|
|
(9) %
|
Adjusted EBITDA margin
(local currency basis)
|
21.7 %
|
|
26.0 %
|
|
(420) bps
|
|
(430) bps
|
|
17.9 %
|
|
22.4 %
|
|
(430) bps
|
|
(450) bps
|
Adjusted EBITDA margin
(USD basis)
|
21.8 %
|
|
|
|
|
18.1 %
|
|
|
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.
|
LaSalle revenue and fee revenue
growth over the prior-year quarter was driven by incentive fees
earned on assets managed on behalf of clients, specifically in
Japan and United States. This increase was offset by
slightly lower advisory fees as a result of recent valuation
declines impacting assets under management.
The current quarter's equity losses were primarily attributable
to valuation declines in the co-investment portfolio, compared with
valuation increases in the prior year.
The adjusted EBITDA margin contraction was primarily
attributable to the net equity losses, partially offset by higher
incentive fees in the current-year quarter.
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 $20.9
billion and operations in over 80 countries around the
world, our more than 103,000 employees bring the power of a global
platform combined with local expertise. Driven by our purpose to
shape the future of real estate for a better world, we help our
clients, people and communities SEE A BRIGHTER WAYSM.
JLL is the brand name, and a registered trademark, of Jones Lang
LaSalle Incorporated. For further information, visit jll.com.
Connect with us
https://www.linkedin.com/company/jll
https://www.facebook.com/jll
https://twitter.com/jll
https://www.instagram.com/jll
Live
Webcast
|
|
Conference
Call
|
Management will offer a
live webcast for shareholders, analysts and investment
professionals on Thursday, August 3, 2023, 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 second quarter 2023 earnings call has
been posted to the Investor Relations section of JLL's website:
ir.jll.com.
|
|
If you have any
questions, please contact Scott Einberger, Investor Relations
Officer.
|
|
Phone:
|
+1 312 252
8943
|
|
Email:
|
JLLInvestorRelations@am.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 shares 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, 2022, soon to be filed Quarterly
Report on Form 10-Q for the quarter ended June 30, 2023 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
June 30,
|
|
Six Months Ended
June 30,
|
(in millions, except
share and per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Revenue
|
$
5,052.5
|
|
$
5,278.4
|
|
$
9,768.0
|
|
$
10,079.8
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
2,417.0
|
|
$
2,554.4
|
|
$
4,670.0
|
|
$
4,965.2
|
Operating,
administrative and other
|
2,414.6
|
|
2,407.6
|
|
4,766.1
|
|
4,548.6
|
Depreciation and
amortization
|
59.9
|
|
55.4
|
|
117.4
|
|
109.8
|
Restructuring and
acquisition charges2
|
11.8
|
|
25.9
|
|
47.5
|
|
45.4
|
Total operating
expenses
|
$
4,903.3
|
|
$
5,043.3
|
|
$
9,601.0
|
|
$
9,669.0
|
|
|
|
|
|
|
|
|
Operating
income
|
$
149.2
|
|
$
235.1
|
|
$
167.0
|
|
$
410.8
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
40.5
|
|
15.7
|
|
66.8
|
|
25.9
|
Equity (losses)
earnings
|
(103.5)
|
|
53.6
|
|
(106.1)
|
|
72.1
|
Other (expense)
income
|
(1.2)
|
|
135.3
|
|
(1.1)
|
|
135.5
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and noncontrolling interest
|
4.0
|
|
408.3
|
|
(7.0)
|
|
592.5
|
Income tax provision
(benefit)
|
0.8
|
|
72.8
|
|
(1.5)
|
|
113.1
|
Net income
(loss)
|
3.2
|
|
335.5
|
|
(5.5)
|
|
479.4
|
|
|
|
|
|
|
|
|
Net income attributable
to noncontrolling interest(a)
|
0.7
|
|
141.6
|
|
1.2
|
|
139.9
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
2.5
|
|
$
193.9
|
|
$
(6.7)
|
|
$
339.5
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per common share
|
$
0.05
|
|
$
3.98
|
|
$
(0.14)
|
|
$
6.89
|
Basic weighted average
shares outstanding (in 000's)
|
47,748
|
|
48,718
|
|
47,652
|
|
49,247
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per common share
|
$
0.05
|
|
$
3.90
|
|
$
(0.14)
|
|
$
6.75
|
Diluted weighted
average shares outstanding (in 000's)
|
48,334
|
|
49,651
|
|
47,652
|
|
50,292
|
|
|
|
|
|
|
|
|
Please reference
accompanying financial statement notes.
|
|
|
|
|
|
|
|
|
(a) During the second
quarter of 2022, Other income included a $142.3 million gain by a
consolidated variable interest entity in which the company held no
equity interest. This gain, therefore, is also included in the
period's net income attributable to noncontrolling interest. As a
result, there is no net impact to Net income attributable to common
shareholders (or other measures like Adjusted EBITDA, Adjusted net
income and Adjusted diluted earnings per share).
|
JONES LANG LASALLE
INCORPORATED
|
Selected Segment
Financial Data (Unaudited)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
MARKETS
ADVISORY
|
|
|
|
|
|
|
|
Revenue
|
$
1,025.4
|
|
$
1,118.2
|
|
$
1,931.8
|
|
$
2,117.7
|
Gross contract
costs1
|
(284.3)
|
|
(262.4)
|
|
(563.4)
|
|
(520.7)
|
Fee
revenue1
|
$
741.1
|
|
$
855.8
|
|
$
1,368.4
|
|
$
1,597.0
|
Compensation
and benefits, excluding gross contract costs
|
$
546.4
|
|
$
618.5
|
|
$
1,007.4
|
|
$
1,159.3
|
Operating,
administrative and other, excluding gross contract costs
|
93.3
|
|
103.8
|
|
186.9
|
|
195.7
|
Depreciation
and amortization
|
17.4
|
|
17.3
|
|
34.5
|
|
34.4
|
Segment fee-based
operating expenses
|
657.1
|
|
739.6
|
|
1,228.8
|
|
1,389.4
|
Gross contract
costs1
|
284.3
|
|
262.4
|
|
563.4
|
|
520.7
|
Segment operating
expenses
|
$
941.4
|
|
$
1,002.0
|
|
$
1,792.2
|
|
$
1,910.1
|
Segment operating
income
|
$
84.0
|
|
$
116.2
|
|
$
139.6
|
|
$
207.6
|
Add:
|
|
|
|
|
|
|
|
Equity (losses)
earnings
|
(0.1)
|
|
0.4
|
|
0.2
|
|
0.9
|
Depreciation
and amortization(a)
|
16.5
|
|
16.3
|
|
32.6
|
|
33.4
|
Other (expense)
income
|
(1.6)
|
|
132.3
|
|
(1.3)
|
|
132.5
|
Net income
attributable to noncontrolling interest
|
(0.4)
|
|
(141.7)
|
|
(0.6)
|
|
(139.7)
|
Adjustments:
|
|
|
|
|
|
|
|
Loss on
disposition
|
1.8
|
|
10.5
|
|
1.8
|
|
10.5
|
Interest on
employee loans, net of forgiveness
|
(0.8)
|
|
—
|
|
(1.3)
|
|
—
|
Adjusted
EBITDA1
|
$
99.4
|
|
$
134.0
|
|
$
171.0
|
|
$
245.2
|
|
|
|
|
|
|
|
|
CAPITAL
MARKETS
|
|
|
|
|
|
|
|
Revenue
|
$
448.0
|
|
$
684.5
|
|
$
805.1
|
|
$
1,285.1
|
Gross contract
costs1
|
(13.1)
|
|
(12.6)
|
|
(22.4)
|
|
(25.3)
|
Net non-cash
MSR and mortgage banking derivative activity
|
0.6
|
|
(11.2)
|
|
2.4
|
|
(7.6)
|
Fee
revenue1
|
$
435.5
|
|
$
660.7
|
|
$
785.1
|
|
$
1,252.2
|
Compensation
and benefits, excluding gross contract costs
|
$
335.4
|
|
$
469.9
|
|
$
619.3
|
|
$
888.1
|
Operating,
administrative and other, excluding gross contract costs
|
69.2
|
|
64.8
|
|
125.3
|
|
120.7
|
Depreciation
and amortization
|
16.2
|
|
15.4
|
|
32.1
|
|
31.0
|
Segment fee-based
operating expenses
|
420.8
|
|
550.1
|
|
776.7
|
|
1,039.8
|
Gross contract
costs1
|
13.1
|
|
12.6
|
|
22.4
|
|
25.3
|
Segment operating
expenses
|
$
433.9
|
|
$
562.7
|
|
$
799.1
|
|
$
1,065.1
|
Segment operating
income
|
$
14.1
|
|
$
121.8
|
|
$
6.0
|
|
$
220.0
|
Add:
|
|
|
|
|
|
|
|
Equity
earnings
|
4.8
|
|
0.6
|
|
5.4
|
|
1.4
|
Depreciation
and amortization
|
16.2
|
|
15.4
|
|
32.1
|
|
31.0
|
Other
income
|
0.4
|
|
0.1
|
|
0.2
|
|
0.1
|
Adjustments:
|
|
|
|
|
|
|
|
Net non-cash
MSR and mortgage banking derivative activity
|
0.6
|
|
(11.2)
|
|
2.4
|
|
(7.6)
|
Interest on
employee loans, net of forgiveness
|
(0.1)
|
|
—
|
|
0.6
|
|
—
|
Adjusted
EBITDA1
|
$
36.0
|
|
$
126.7
|
|
$
46.7
|
|
$
244.9
|
(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
June 30,
|
|
Six Months Ended
June 30,
|
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
WORK
DYNAMICS
|
|
|
|
|
|
|
|
|
Revenue
|
$
3,374.6
|
|
$
3,310.5
|
|
$
6,650.8
|
|
$
6,344.1
|
|
Gross contract
costs1
|
(2,896.8)
|
|
(2,843.5)
|
|
(5,731.0)
|
|
(5,466.6)
|
|
Fee
revenue1
|
$
477.8
|
|
$
467.0
|
|
$
919.8
|
|
$
877.5
|
|
Compensation
and benefits, excluding gross contract costs
|
$
321.0
|
|
$
304.0
|
|
$
626.0
|
|
$
585.8
|
|
Operating,
administrative and other, excluding gross contract costs
|
101.2
|
|
106.3
|
|
212.7
|
|
200.1
|
|
Depreciation
and amortization
|
19.9
|
|
17.0
|
|
39.2
|
|
33.5
|
|
Segment fee-based
operating expenses
|
442.1
|
|
427.3
|
|
877.9
|
|
819.4
|
|
Gross contract
costs1
|
2,896.8
|
|
2,843.5
|
|
5,731.0
|
|
5,466.6
|
|
Segment operating
expenses
|
$
3,338.9
|
|
$
3,270.8
|
|
$
6,608.9
|
|
$
6,286.0
|
|
Segment operating
income
|
$
35.7
|
|
$
39.7
|
|
$
41.9
|
|
$
58.1
|
|
Add:
|
|
|
|
|
|
|
|
|
Equity
earnings
|
0.8
|
|
0.9
|
|
1.2
|
|
1.2
|
|
Depreciation
and amortization
|
19.9
|
|
17.0
|
|
39.2
|
|
33.5
|
|
Net income
attributable to noncontrolling interest
|
(0.2)
|
|
—
|
|
(0.4)
|
|
—
|
|
Adjusted
EBITDA1
|
$
56.2
|
|
$
57.6
|
|
$
81.9
|
|
$
92.8
|
|
|
|
|
|
|
|
|
|
|
JLL
TECHNOLOGIES
|
|
|
|
|
|
|
|
|
Revenue
|
$
60.6
|
|
$
50.7
|
|
$
122.0
|
|
$
100.1
|
|
Gross contract
costs1
|
(4.1)
|
|
(2.7)
|
|
(7.7)
|
|
(6.8)
|
|
Fee
revenue1
|
$
56.5
|
|
$
48.0
|
|
$
114.3
|
|
$
93.3
|
|
Compensation
and benefits, excluding gross contract
costs(a)
|
$
45.3
|
|
$
65.8
|
|
$
106.6
|
|
$
128.0
|
|
Operating,
administrative and other, excluding gross contract costs
|
12.5
|
|
13.9
|
|
27.2
|
|
28.1
|
|
Depreciation
and amortization
|
4.1
|
|
3.9
|
|
8.0
|
|
7.7
|
|
Segment fee-based
operating expenses
|
61.9
|
|
83.6
|
|
141.8
|
|
163.8
|
|
Gross contract
costs1
|
4.1
|
|
2.7
|
|
7.7
|
|
6.8
|
|
Segment operating
expenses
|
$
66.0
|
|
$
86.3
|
|
$
149.5
|
|
$
170.6
|
|
Segment operating
loss
|
$
(5.4)
|
|
$
(35.6)
|
|
$
(27.5)
|
|
$
(70.5)
|
|
Add:
|
|
|
|
|
|
|
|
|
Equity (losses)
earnings
|
(103.9)
|
|
44.7
|
|
(99.0)
|
|
63.5
|
|
Depreciation
and amortization
|
4.1
|
|
3.9
|
|
8.0
|
|
7.7
|
|
Other
income
|
—
|
|
2.9
|
|
—
|
|
2.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on
disposition
|
—
|
|
(3.0)
|
|
—
|
|
(3.0)
|
|
Adjusted
EBITDA1
|
$
(105.2)
|
|
$
12.9
|
|
$
(118.5)
|
|
$
0.6
|
|
(a) Included in
Compensation and benefits expense for JLL Technologies is carried
interest benefit of $10.0 million and $9.3 million for the three
and six months ended June 30, 2023, respectively, and carried
interest expense of $9.8 million and $16.0 million for the three
and six months ended June 30, 2022, related to Equity earnings of
the segment.
|
|
|
|
|
|
JONES LANG LASALLE
INCORPORATED
|
|
Selected Segment
Financial Data (Unaudited) Continued
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
LASALLE
|
|
|
|
|
|
|
|
|
Revenue
|
$
143.9
|
|
$
114.5
|
|
$
258.3
|
|
$
232.8
|
|
Gross contract
costs1
|
(7.5)
|
|
(7.2)
|
|
(14.6)
|
|
(13.5)
|
|
Fee
revenue1
|
$
136.4
|
|
$
107.3
|
|
$
243.7
|
|
$
219.3
|
|
Compensation
and benefits, excluding gross contract costs
|
$
84.4
|
|
$
72.2
|
|
$
153.3
|
|
$
147.0
|
|
Operating,
administrative and other, excluding gross contract costs
|
17.1
|
|
14.4
|
|
32.3
|
|
28.1
|
|
Depreciation
and amortization
|
2.3
|
|
1.8
|
|
3.6
|
|
3.2
|
|
Segment fee-based
operating expenses
|
103.8
|
|
88.4
|
|
189.2
|
|
178.3
|
|
Gross contract
costs1
|
7.5
|
|
7.2
|
|
14.6
|
|
13.5
|
|
Segment operating
expenses
|
$
111.3
|
|
$
95.6
|
|
$
203.8
|
|
$
191.8
|
|
Segment operating
income
|
$
32.6
|
|
$
18.9
|
|
$
54.5
|
|
$
41.0
|
|
Add:
|
|
|
|
|
|
|
|
|
Equity (losses)
earnings
|
(5.1)
|
|
7.0
|
|
(13.9)
|
|
5.1
|
|
Depreciation
and amortization
|
2.3
|
|
1.8
|
|
3.6
|
|
3.2
|
|
Net (income)
loss attributable to noncontrolling interest
|
(0.1)
|
|
0.1
|
|
(0.2)
|
|
(0.2)
|
|
Adjusted
EBITDA1
|
$
29.7
|
|
$
27.8
|
|
$
44.0
|
|
$
49.1
|
|
JONES LANG LASALLE
INCORPORATED
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
(in
millions)
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Net (loss)
income
|
$
(5.5)
|
|
$ 479.4
|
|
Net capital additions
– property and equipment
|
$ (88.2)
|
|
$ (86.9)
|
Reconciliation
of net (loss) income to net cash used in operating
activities:
|
|
|
|
|
Net investment asset
activity (less than wholly-owned)
|
—
|
|
137.0
|
Depreciation
and amortization
|
117.4
|
|
109.8
|
|
Business acquisitions,
net of cash acquired
|
(13.6)
|
|
(2.0)
|
Equity losses
(earnings)
|
106.1
|
|
(72.1)
|
|
Capital contributions
to investments
|
(66.2)
|
|
(121.4)
|
Net loss (gain)
on dispositions
|
1.8
|
|
(134.8)
|
|
Distributions of
capital from investments
|
12.7
|
|
13.1
|
Distributions
of earnings from investments
|
6.0
|
|
9.9
|
|
Other, net
|
(5.4)
|
|
(2.9)
|
Provision for
loss on receivables and other assets
|
19.0
|
|
11.8
|
|
Net cash used in
investing activities
|
(160.7)
|
|
(63.1)
|
Amortization of
stock-based compensation
|
53.0
|
|
44.4
|
|
Cash flows from
financing activities:
|
|
|
|
Net non-cash
mortgage servicing rights and mortgage banking derivative
activity
|
2.4
|
|
(7.6)
|
|
Proceeds from
borrowings under credit facility
|
4,478.0
|
|
4,060.0
|
Accretion of
interest and amortization of debt issuance costs
|
2.1
|
|
2.5
|
|
Repayments of
borrowings under credit facility
|
(3,853.0)
|
|
(2,835.0)
|
Other,
net
|
3.6
|
|
2.6
|
|
Net repayments of
short-term borrowings
|
(55.3)
|
|
(12.5)
|
Change
in:
|
|
|
|
|
Payments of deferred
business acquisition obligations and earn-outs
|
(21.8)
|
|
(9.2)
|
Receivables
|
137.7
|
|
64.6
|
|
Repurchase of common
stock
|
(19.5)
|
|
(447.7)
|
Reimbursable
receivables and reimbursable payables
|
(51.0)
|
|
(94.2)
|
|
Noncontrolling
interest distributions, net
|
—
|
|
(134.6)
|
Prepaid expenses and
other assets
|
(46.5)
|
|
(21.3)
|
|
Other, net
|
(24.5)
|
|
(19.7)
|
Deferred tax assets,
net
|
(17.3)
|
|
78.8
|
|
Net cash provided by
financing activities
|
503.9
|
|
601.3
|
Accounts payable and
accrued liabilities
|
(216.5)
|
|
(339.6)
|
|
Effect of currency
exchange rate changes on cash, cash equivalents and restricted
cash
|
3.8
|
|
(37.6)
|
Accrued
compensation
|
(591.6)
|
|
(673.6)
|
|
Net change in cash,
cash equivalents and restricted cash
|
$
(132.3)
|
|
$ (38.8)
|
Net cash used in
operating activities
|
$
(479.3)
|
|
$
(539.4)
|
|
Cash, cash equivalents
and restricted cash, beginning of the period
|
746.0
|
|
841.6
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of the period
|
$ 613.7
|
|
$ 802.8
|
|
|
|
|
|
|
|
|
|
Please reference
accompanying financial statement notes.
|
JONES LANG LASALLE
INCORPORATED
|
Consolidated Balance
Sheets
|
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
|
June
30,
|
|
December 31,
|
(in millions, except
share and per share data)
|
2023
|
|
2022
|
|
|
|
|
2023
|
|
2022
|
ASSETS
|
(Unaudited)
|
|
|
|
LIABILITIES AND
EQUITY
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Cash and cash
equivalents
|
$
402.5
|
|
$
519.3
|
|
|
Accounts payable and
accrued liabilities
|
$
1,054.6
|
|
$
1,236.8
|
|
Trade receivables, net
of allowance
|
1,982.0
|
|
2,148.8
|
|
|
Reimbursable
payables
|
1,430.2
|
|
1,579.5
|
|
Notes and other
receivables
|
410.9
|
|
469.5
|
|
|
Accrued compensation
and benefits
|
1,141.2
|
|
1,749.8
|
|
Reimbursable
receivables
|
1,910.9
|
|
2,005.7
|
|
|
Short-term
borrowings
|
112.1
|
|
164.2
|
|
Warehouse
receivables
|
1,049.0
|
|
463.2
|
|
|
Short-term contract
liability and deferred income
|
213.6
|
|
216.5
|
|
Short-term contract
assets, net of allowance
|
357.2
|
|
359.7
|
|
|
Short-term
acquisition-related obligations
|
20.5
|
|
23.1
|
|
Prepaid and
other
|
593.3
|
|
603.5
|
|
|
Warehouse
facilities
|
941.8
|
|
455.3
|
|
|
Total current
assets
|
6,705.8
|
|
6,569.7
|
|
|
Short-term operating
lease liability
|
164.3
|
|
156.4
|
Property and equipment,
net of accumulated depreciation
|
585.5
|
|
582.9
|
|
|
Other
|
412.4
|
|
330.5
|
Operating lease
right-of-use asset
|
761.3
|
|
776.3
|
|
|
|
Total current
liabilities
|
5,490.7
|
|
5,912.1
|
Goodwill
|
4,577.7
|
|
4,528.0
|
|
Noncurrent
liabilities:
|
|
|
|
Identified intangibles,
net of accumulated amortization
|
821.1
|
|
858.5
|
|
|
Credit facility, net of
debt issuance costs
|
1,840.5
|
|
1,213.8
|
Investments
|
872.7
|
|
873.8
|
|
|
Long-term debt, net of
debt issuance costs
|
380.7
|
|
372.8
|
Long-term
receivables
|
372.1
|
|
331.1
|
|
|
Long-term deferred tax
liabilities, net
|
191.6
|
|
194.0
|
Deferred tax assets,
net
|
394.6
|
|
379.6
|
|
|
Deferred
compensation
|
518.3
|
|
492.4
|
Deferred compensation
plans
|
559.5
|
|
517.9
|
|
|
Long-term
acquisition-related obligations
|
58.6
|
|
76.3
|
Other
|
175.2
|
|
175.9
|
|
|
Long-term operating
lease liability
|
766.6
|
|
775.8
|
|
|
Total assets
|
$
15,825.5
|
|
$
15,593.7
|
|
|
Other
|
386.6
|
|
407.0
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
9,633.6
|
|
$
9,444.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
$
7.1
|
|
$
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Common stock
|
0.5
|
|
0.5
|
|
|
|
|
|
|
Additional paid-in
capital
|
2,015.3
|
|
2,022.6
|
|
|
|
|
|
|
|
|
Retained
earnings
|
5,567.6
|
|
5,590.4
|
|
|
|
|
|
|
Treasury
stock
|
(895.8)
|
|
(934.6)
|
|
|
|
|
|
|
|
|
Shares held in
trust
|
(11.6)
|
|
(9.8)
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss
|
(611.4)
|
|
(648.2)
|
|
|
|
|
|
|
|
|
Total company
shareholders' equity
|
6,064.6
|
|
6,020.9
|
|
|
|
|
|
|
Noncontrolling
interest
|
120.2
|
|
121.6
|
|
|
|
|
|
|
|
Total equity
|
6,184.8
|
|
6,142.5
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
15,825.5
|
|
$
15,593.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
Fee revenue and Fee-based operating expenses,
(ii)
Adjusted EBITDA attributable to common shareholders ("Adjusted
EBITDA") and Adjusted EBITDA margin,
(iii)
Adjusted net income (loss) attributable to common shareholders and
Adjusted diluted earnings (loss) per share,
(iv)
Percentage changes against prior periods, presented on a local
currency basis, and
(v)
Free Cash Flow.
However, non-GAAP financial measures should not be considered
alternatives to measures determined in accordance with U.S.
generally accepted accounting principles ("GAAP"). Any measure that
eliminates components of a company's capital structure, cost of
operations or investments, or other results has limitations as a
performance measure. In light of these limitations, management also
considers GAAP financial measures and does not rely solely on
non-GAAP financial measures. Because the company's non-GAAP
financial measures are not calculated in accordance with GAAP, they
may not be comparable to similarly titled measures used by other
companies.
Adjustments to GAAP Financial Measures Used to Calculate
non-GAAP Financial Measures
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 equal amount of corresponding
fees in Revenue. Excluding gross contract costs from both Fee
revenue and Fee-based operating expenses more accurately reflects
how the company manages its expense base and operating margins and
also enables a more consistent performance assessment across a
portfolio of contracts with varying payment terms and
structures.
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,
primarily composed of the estimated fair value ascribed at closing
of an acquisition to assets such as acquired management contracts,
customer backlog and relationships, and trade name, is more notable
following the company's increase in acquisition activity in recent
years. Such non-cash activity is excluded as 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
$1.8 million loss related to
the disposition of a business in Markets Advisory. In 2022,
the $7.5 million net loss included
$10.5 million of loss related to the
disposition of the Russia
business, partially offset by a $3.0
million gain related to a disposition within JLL
Technologies.
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.
Reconciliation of Non-GAAP Financial Measures
Below are reconciliations of (i) Revenue to Fee revenue and (ii)
Operating expenses to Fee-based operating expenses:
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Revenue
|
$
5,052.5
|
|
$
5,278.4
|
|
$
9,768.0
|
|
$
10,079.8
|
Gross contract
costs1
|
(3,205.8)
|
|
(3,128.4)
|
|
(6,339.1)
|
|
(6,032.9)
|
Net non-cash MSR and
mortgage banking derivative activity
|
0.6
|
|
(11.2)
|
|
2.4
|
|
(7.6)
|
Fee revenue
|
$
1,847.3
|
|
$
2,138.8
|
|
$
3,431.3
|
|
$
4,039.3
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
4,903.3
|
|
$
5,043.3
|
|
$
9,601.0
|
|
$
9,669.0
|
Gross contract
costs1
|
(3,205.8)
|
|
(3,128.4)
|
|
(6,339.1)
|
|
(6,032.9)
|
Fee-based operating
expenses
|
$
1,697.5
|
|
$
1,914.9
|
|
$
3,261.9
|
|
$
3,636.1
|
Below are (i) a reconciliation of Net income (loss) attributable
to common shareholders to EBITDA and Adjusted EBITDA, (ii) a
reconciliation to adjusted net income and (iii) components of
adjusted diluted earnings per share.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
2.5
|
|
$
193.9
|
|
$
(6.7)
|
|
$
339.5
|
Add:
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
40.5
|
|
15.7
|
|
66.8
|
|
25.9
|
Income tax provision
(benefit)
|
0.8
|
|
72.8
|
|
(1.5)
|
|
113.1
|
Depreciation and
amortization(a)
|
59.0
|
|
54.4
|
|
115.5
|
|
108.8
|
EBITDA
|
$
102.8
|
|
$
336.8
|
|
$
174.1
|
|
$
587.3
|
Adjustments:
|
|
|
|
|
|
|
|
Restructuring and
acquisition charges2
|
11.8
|
|
25.9
|
|
47.5
|
|
45.4
|
Net loss on
disposition
|
1.8
|
|
7.5
|
|
1.8
|
|
7.5
|
Net non-cash MSR and
mortgage banking derivative activity
|
0.6
|
|
(11.2)
|
|
2.4
|
|
(7.6)
|
Interest on employee
loans, net of forgiveness
|
(0.9)
|
|
—
|
|
(0.7)
|
|
—
|
Adjusted
EBITDA
|
$
116.1
|
|
$
359.0
|
|
$
225.1
|
|
$
632.6
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(In millions, except
share and per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
2.5
|
|
$
193.9
|
|
$
(6.7)
|
|
$
339.5
|
Diluted shares (in
thousands)(b)
|
48,334
|
|
49,651
|
|
47,652
|
|
50,292
|
Diluted earnings (loss)
per share
|
$
0.05
|
|
$
3.90
|
|
$
(0.14)
|
|
$
6.75
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
2.5
|
|
$
193.9
|
|
$
(6.7)
|
|
$
339.5
|
Adjustments:
|
|
|
|
|
|
|
|
Restructuring and
acquisition charges2
|
11.8
|
|
25.9
|
|
47.5
|
|
45.4
|
Net non-cash MSR and
mortgage banking derivative activity
|
0.6
|
|
(11.2)
|
|
2.4
|
|
(7.6)
|
Amortization of
acquisition-related intangibles(a)
|
17.2
|
|
15.8
|
|
33.7
|
|
32.7
|
Net loss on
disposition
|
1.8
|
|
7.5
|
|
1.8
|
|
7.5
|
Interest on employee
loans, net of forgiveness
|
(0.9)
|
|
—
|
|
(0.7)
|
|
—
|
Tax impact of adjusted
items(c)
|
(8.8)
|
|
(9.5)
|
|
(22.5)
|
|
(18.2)
|
Adjusted net income
attributable to common shareholders
|
$
24.2
|
|
$
222.4
|
|
$
55.5
|
|
$
399.3
|
Diluted shares (in
thousands)
|
48,334
|
|
49,651
|
|
48,357
|
|
50,292
|
Adjusted diluted
earnings per share
|
$
0.50
|
|
$
4.48
|
|
$
1.15
|
|
$
7.94
|
|
(a) This adjustment
excludes the noncontrolling interest portion of amortization of
acquisition-related intangibles which is not attributable to common
shareholders.
|
|
(b) Basic shares
outstanding were used in the calculation of dilutive loss per share
for the six months ended June 30, 2023, as the impact of unvested
stock-based compensation awards would be anti-dilutive.
|
|
(c) For the first half
of 2023 and second quarter of 2022, the tax impact of adjusted
items was calculated using the applicable statutory rates by tax
jurisdiction. For the first quarter of 2022, 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.
|
Below is a reconciliation of net cash provided by operating
activities to Free Cash Flow5.
|
Six Months Ended
June 30,
|
(in
millions)
|
2023
|
|
2022
|
|
|
|
|
Net cash used in
operating activities
|
$
(479.3)
|
|
$
(539.4)
|
|
|
|
|
Net capital additions -
property and equipment
|
(88.2)
|
|
(86.9)
|
|
|
|
|
Free Cash
Flow5
|
$
(567.5)
|
|
$
(626.3)
|
Operating Results - Local Currency
In discussing operating results, the company reports Adjusted
EBITDA margins and 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 U.S. dollars using the foreign currency exchange
rates from the comparative period. Management believes this
methodology provides a framework for assessing performance and
operations excluding the effect of foreign currency
fluctuations.
The following table reflects the reconciliation to local
currency amounts for consolidated (i) revenue, (ii) fee revenue,
(iii) operating income and (iv) Adjusted EBITDA.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
($ in
millions)
|
2023
|
|
%
Change
|
|
2023
|
|
%
Change
|
Revenue:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
5,052.5
|
|
(4) %
|
|
$
9,768.0
|
|
(3) %
|
Impact of change in
exchange rates
|
37.5
|
|
n/a
|
|
158.1
|
|
n/a
|
At comparative period
exchange rates
|
$
5,090.0
|
|
(4) %
|
|
$
9,926.1
|
|
(2) %
|
|
|
|
|
|
|
|
|
Fee
revenue:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
1,847.3
|
|
(14) %
|
|
$
3,431.3
|
|
(15) %
|
Impact of change in
exchange rates
|
9.5
|
|
n/a
|
|
50.3
|
|
n/a
|
At comparative period
exchange rates
|
$
1,856.8
|
|
(13) %
|
|
$
3,481.6
|
|
(14) %
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
149.2
|
|
(37) %
|
|
$
167.0
|
|
(59) %
|
Impact of change in
exchange rates
|
(1.5)
|
|
n/a
|
|
(6.6)
|
|
n/a
|
At comparative period
exchange rates
|
$
147.7
|
|
(37) %
|
|
$
160.4
|
|
(61) %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
116.1
|
|
(68) %
|
|
$
225.1
|
|
(64) %
|
Impact of change in
exchange rates
|
(1.1)
|
|
n/a
|
|
(4.1)
|
|
n/a
|
At comparative period
exchange rates
|
$
115.0
|
|
(68) %
|
|
$
221.0
|
|
(65) %
|
2. 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
June 30,
|
|
Six Months Ended
June 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Severance and other
employment-related charges
|
$
5.8
|
|
$
8.3
|
|
$
31.5
|
|
$
11.6
|
Restructuring,
pre-acquisition and post-acquisition charges
|
6.6
|
|
16.6
|
|
16.6
|
|
33.5
|
Fair value adjustments
that resulted in a net (decrease) increase to earn-out liabilities
from prior-period acquisition activity
|
(0.6)
|
|
1.0
|
|
(0.6)
|
|
0.3
|
Total restructuring and
acquisition charges
|
$
11.8
|
|
$
25.9
|
|
$
47.5
|
|
$
45.4
|
3. n.m.: "not meaningful", represented by a
percentage change of greater than 1,000% or a change in margin of
greater than 10,000 basis points ("bps"), favorable or
unfavorable.
4. As of June 30,
2023, LaSalle had
$78.2 billion of real estate assets
under management ("AUM"), composed of $34.6
billion invested in separate accounts, $40.5 billion invested in fund management
vehicles and $3.1 billion invested in
public securities. The geographic distribution of separate accounts
and fund management investments was $30.1
billion in North America,
$15.2 billion in the U.K.,
$15.0 billion in Asia Pacific and $7.5
billion in continental Europe. The remaining $7.3 billion relates to Global Partner Solutions
which is a global business line.
AUM changed less than 1% in both USD and local currency from
$78.5 billion as of March 31, 2023. The AUM change resulted from (i)
$0.8 billion of dispositions and
withdrawals, (ii) $0.5 billion of net
valuation decreases and (iii) $0.1
billion of foreign currency decreases, partially offset by
(iv) $1.1 billion of
acquisitions.
Assets under management data for separate accounts and fund
management amounts are reported on a one-quarter lag. In addition,
LaSalle raised $0.3 billion in private equity capital for the
quarter ended June 30, 2023.
5. "Net Debt" is defined as the sum of the (i)
Credit facility, (ii) Long-term debt and (iii) 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.
"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.
"MENA" is defined as Middle
East and North Africa.
6. The company defines "Resilient" revenue as (i)
Property Management, within Markets Advisory, (ii) Valuation
Advisory and Loan Servicing, within Capital Markets, (iii)
Workplace Management, within Work Dynamics, (iv) JLL Technologies,
and (v) Advisory Fees (within LaSalle). 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 LaSalle.
Appendix: Revenue
and Fee Revenue Segment Detail
|
|
Three Months Ended
June 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
|
Valuation
Advisory
|
Loan
Servicing
|
|
Total Capital
Markets
|
|
Workplace
Mgmt
|
Project Mgmt
|
Portfolio Services and
Other
|
|
Total Work
Dynamics
|
|
JLLT
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 591.4
|
409.9
|
24.1
|
|
$
1,025.4
|
|
$ 319.5
|
89.5
|
39.0
|
|
$ 448.0
|
|
$
2,553.4
|
703.2
|
118.0
|
|
$
3,374.6
|
|
$
60.6
|
|
$ 143.9
|
|
$
5,052.5
|
Gross contract
costs1
|
(3.4)
|
(278.9)
|
(2.0)
|
|
(284.3)
|
|
(10.2)
|
(2.9)
|
—
|
|
(13.1)
|
|
(2,365.2)
|
(473.5)
|
(58.1)
|
|
(2,896.8)
|
|
(4.1)
|
|
(7.5)
|
|
(3,205.8)
|
Net non-cash MSR
and mortgage banking derivative activity
|
—
|
—
|
—
|
|
—
|
|
0.6
|
—
|
—
|
|
0.6
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
0.6
|
Fee
revenue
|
$ 588.0
|
131.0
|
22.1
|
|
$ 741.1
|
|
$ 309.9
|
86.6
|
39.0
|
|
$ 435.5
|
|
$ 188.2
|
229.7
|
59.9
|
|
$ 477.8
|
|
$
56.5
|
|
$ 136.4
|
|
$
1,847.3
|
|
Three Months Ended June
30, 2022
|
(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
|
Valuation
Advisory
|
Loan
Servicing
|
|
Total Capital
Markets
|
|
Workplace
Mgmt
|
Project Mgmt
|
Portfolio Services and
Other
|
|
Total Work
Dynamics
|
|
JLLT
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 708.4
|
378.2
|
31.6
|
|
$
1,118.2
|
|
$ 549.7
|
94.4
|
40.4
|
|
$ 684.5
|
|
$
2,434.0
|
754.8
|
121.7
|
|
$
3,310.5
|
|
$ 50.7
|
|
$ 114.5
|
|
$
5,278.4
|
Gross contract
costs1
|
(4.9)
|
(256.0)
|
(1.5)
|
|
(262.4)
|
|
(10.5)
|
(2.1)
|
—
|
|
(12.6)
|
|
(2,249.1)
|
(539.9)
|
(54.5)
|
|
(2,843.5)
|
|
(2.7)
|
|
(7.2)
|
|
(3,128.4)
|
Net non-cash MSR
and mortgage banking derivative activity
|
—
|
—
|
—
|
|
—
|
|
(11.2)
|
—
|
—
|
|
(11.2)
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
(11.2)
|
Fee
revenue
|
$ 703.5
|
122.2
|
30.1
|
|
$ 855.8
|
|
$ 528.0
|
92.3
|
40.4
|
|
$ 660.7
|
|
$ 184.9
|
214.9
|
67.2
|
|
$ 467.0
|
|
$ 48.0
|
|
$ 107.3
|
|
$
2,138.8
|
Appendix: Revenue
and Fee Revenue Segment Detail (continued)
|
|
Six Months Ended
June 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
|
Valuation
Advisory
|
Loan
Servicing
|
|
Total Capital
Markets
|
|
Workplace
Mgmt
|
Project Mgmt
|
Portfolio Services and
Other
|
|
Total Work
Dynamics
|
|
JLLT
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
1,078.4
|
810.1
|
43.3
|
|
$
1,931.8
|
|
$ 560.1
|
168.6
|
76.4
|
|
$ 805.1
|
|
$
5,050.6
|
1,379.5
|
220.7
|
|
$
6,650.8
|
|
$ 122.0
|
|
$ 258.3
|
|
$
9,768.0
|
Gross contract
costs1
|
(7.9)
|
(552.0)
|
(3.5)
|
|
(563.4)
|
|
(17.4)
|
(5.0)
|
—
|
|
(22.4)
|
|
(4,679.2)
|
(938.9)
|
(112.9)
|
|
(5,731.0)
|
|
(7.7)
|
|
(14.6)
|
|
(6,339.1)
|
Net non-cash MSR
and mortgage banking derivative activity
|
—
|
—
|
—
|
|
—
|
|
2.4
|
—
|
—
|
|
2.4
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
2.4
|
Fee
revenue
|
$
1,070.5
|
258.1
|
39.8
|
|
$
1,368.4
|
|
$ 545.1
|
163.6
|
76.4
|
|
$ 785.1
|
|
$ 371.4
|
440.6
|
107.8
|
|
$ 919.8
|
|
$ 114.3
|
|
$ 243.7
|
|
$
3,431.3
|
|
Six Months Ended June
30, 2022
|
(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
|
Valuation
Advisory
|
Loan
Servicing
|
|
Total Capital
Markets
|
|
Workplace
Mgmt
|
Project Mgmt
|
Portfolio Services and
Other
|
|
Total Work
Dynamics
|
|
JLLT
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
1,309.3
|
748.7
|
59.7
|
|
$
2,117.7
|
|
$
1,025.8
|
179.0
|
80.3
|
|
$
1,285.1
|
|
$
4,754.4
|
1,367.1
|
222.6
|
|
$
6,344.1
|
|
$ 100.1
|
|
$ 232.8
|
|
$ 10,079.8
|
Gross contract
costs1
|
(8.9)
|
(507.9)
|
(3.9)
|
|
(520.7)
|
|
(21.7)
|
(3.6)
|
—
|
|
(25.3)
|
|
(4,387.5)
|
(976.5)
|
(102.6)
|
|
(5,466.6)
|
|
(6.8)
|
|
(13.5)
|
|
(6,032.9)
|
Net non-cash MSR
and mortgage banking derivative activity
|
—
|
—
|
—
|
|
—
|
|
(7.6)
|
—
|
—
|
|
(7.6)
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
(7.6)
|
Fee
revenue
|
$
1,300.4
|
240.8
|
55.8
|
|
$
1,597.0
|
|
$ 996.5
|
175.4
|
80.3
|
|
$
1,252.2
|
|
$ 366.9
|
390.6
|
120.0
|
|
$ 877.5
|
|
$ 93.3
|
|
$ 219.3
|
|
$
4,039.3
|
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SOURCE JLL-IR