Growth in resilient business line revenues
helped offset continued market-wide pullback in transaction
activity
CHICAGO, Nov. 2, 2023
/PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today
reported operating income of $119.1
million for the third quarter of 2023. Diluted earnings per
share were $1.23 and Adjusted diluted
earnings per share1 were $2.01 for the quarter.
- Third-quarter revenue was $5.1
billion, down 2% in local currency1, and fee
revenue1 was $1.8 billion,
down 13% in local currency1
- Capital Markets impacted by dampened transaction market in
rising interest rate environment
- Leasing, within Markets Advisory, declined across asset
classes, notably in large-scale transactions, amidst elevated
economic uncertainty
- Also within Markets Advisory, Property Management momentum
delivered double-digit growth
- Work Dynamics achieved broad-based growth across all service
lines as new contract wins ramped up
- Margin reflected lower transaction-based revenues and equity
losses, with recent cost mitigation actions reducing expense
base
- Generated nearly $190 million
incremental cash provided by operating activities for the quarter,
despite lower net income
"JLL's third-quarter financial results reflected continued focus
on diversifying our business. During the quarter, fee revenue
expanded across our resilient business lines while the
industry-wide slowdown in investment sales and leasing transactions
continued," said Christian Ulbrich,
JLL CEO. "Our investments in technology and the improved efficiency
of our operating model position us to expand margins even if a
slower transaction environment persists. When combined with our
global scale and 'One JLL' approach, these factors will enable
long-term growth and shareholder value creation."
Summary Financial
Results
($ in millions, except per share data, "LC" = local
currency)
|
Three Months Ended September
30,
|
|
Nine Months Ended September 30,
|
2023
|
|
2022
|
% Change
in USD
|
% Change
in LC
|
|
2023
|
|
2022
|
% Change
in USD
|
% Change
in LC
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
5,111.4
|
|
$
5,177.5
|
(1) %
|
(2) %
|
|
$
14,879.4
|
|
$ 15,257.3
|
(2) %
|
(2) %
|
Fee
revenue1
|
1,791.4
|
|
2,048.6
|
(13)
|
(13)
|
|
5,222.7
|
|
6,087.9
|
(14)
|
(14)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
$
59.7
|
|
$
140.2
|
(57) %
|
(50) %
|
|
$
53.0
|
|
$
479.7
|
(89) %
|
(88) %
|
Adjusted net income
attributable to common shareholders1
|
97.5
|
|
165.3
|
(41)
|
(35)
|
|
153.0
|
|
564.5
|
(73)
|
(72)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.23
|
|
$
2.88
|
(57) %
|
(50) %
|
|
$
1.10
|
|
$
9.65
|
(89) %
|
(87) %
|
Adjusted diluted
earnings per share1
|
2.01
|
|
3.40
|
(41)
|
(35)
|
|
3.17
|
|
11.35
|
(72)
|
(71)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
$
205.2
|
|
$
276.2
|
(26) %
|
(23) %
|
|
$
430.3
|
|
$
908.8
|
(53) %
|
(52) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow5
|
$
276.2
|
|
$
88.4
|
212 %
|
n/a
|
|
$
(291.3)
|
|
$
(537.9)
|
46 %
|
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 2023 Performance
Highlights:
|
Consolidated
($ in
millions, "LC" = local currency)
|
Three Months Ended September
30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
|
Nine Months Ended September 30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Markets
Advisory
|
$
992.4
|
|
$
1,111.5
|
|
(11) %
|
|
(11) %
|
|
$
2,924.2
|
|
$
3,229.2
|
|
(9) %
|
|
(9) %
|
Capital
Markets
|
435.8
|
|
595.2
|
|
(27)
|
|
(28)
|
|
1,240.9
|
|
1,880.3
|
|
(34)
|
|
(34)
|
Work
Dynamics
|
3,514.2
|
|
3,289.8
|
|
7
|
|
6
|
|
10,165.0
|
|
9,633.9
|
|
6
|
|
6
|
JLL
Technologies
|
58.9
|
|
56.5
|
|
4
|
|
4
|
|
180.9
|
|
156.6
|
|
16
|
|
16
|
LaSalle
|
110.1
|
|
124.5
|
|
(12)
|
|
(13)
|
|
368.4
|
|
357.3
|
|
3
|
|
4
|
Total revenue
|
$
5,111.4
|
|
$
5,177.5
|
|
(1) %
|
|
(2) %
|
|
$
14,879.4
|
|
$
15,257.3
|
|
(2) %
|
|
(2) %
|
Gross contract
costs1
|
(3,327.1)
|
|
(3,123.7)
|
|
7
|
|
6
|
|
(9,666.2)
|
|
(9,156.6)
|
|
6
|
|
7
|
Net non-cash MSR and
mortgage banking
derivative
activity
|
7.1
|
|
(5.2)
|
|
(237)
|
|
(236)
|
|
9.5
|
|
(12.8)
|
|
(174)
|
|
(174)
|
Total fee revenue1
|
$
1,791.4
|
|
$
2,048.6
|
|
(13) %
|
|
(13) %
|
|
$
5,222.7
|
|
$
6,087.9
|
|
(14) %
|
|
(14) %
|
Markets Advisory
|
704.0
|
|
847.9
|
|
(17)
|
|
(17)
|
|
2,072.4
|
|
2,444.9
|
|
(15)
|
|
(15)
|
Capital Markets
|
431.4
|
|
579.1
|
|
(26)
|
|
(27)
|
|
1,216.5
|
|
1,831.3
|
|
(34)
|
|
(33)
|
Work Dynamics
|
497.7
|
|
452.9
|
|
10
|
|
9
|
|
1,417.5
|
|
1,330.4
|
|
7
|
|
7
|
JLL Technologies
|
55.6
|
|
52.7
|
|
6
|
|
5
|
|
169.9
|
|
146.0
|
|
16
|
|
16
|
LaSalle
|
102.7
|
|
116.0
|
|
(11)
|
|
(13)
|
|
346.4
|
|
335.3
|
|
3
|
|
4
|
Operating income
|
$
119.1
|
|
$
202.6
|
|
(41) %
|
|
(39) %
|
|
$
286.1
|
|
$
613.4
|
|
(53) %
|
|
(53) %
|
Equity (losses) earnings
|
$
(11.2)
|
|
$
0.5
|
|
n.m.
|
|
n.m.
|
|
$
(117.3)
|
|
$
72.6
|
|
(262) %
|
|
(262) %
|
Adjusted EBITDA1
|
$
205.2
|
|
$
276.2
|
|
(26) %
|
|
(23) %
|
|
$
430.3
|
|
$
908.8
|
|
(53) %
|
|
(52) %
|
Net income margin
attributable to common
shareholders (USD
basis)
|
1.2 %
|
|
2.7 %
|
|
(150) bps
|
|
n/a
|
|
0.4 %
|
|
3.1 %
|
|
(270) bps
|
|
n/a
|
Adjusted EBITDA margin
(local currency basis)
|
12.0 %
|
|
13.5 %
|
|
(200) bps
|
|
(150) bps
|
|
8.3 %
|
|
14.9 %
|
|
(670) bps
|
|
(660) bps
|
Adjusted EBITDA margin
(USD basis)
|
11.5 %
|
|
|
|
|
8.2 %
|
|
|
|
|
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 2% and 13%, respectively,
compared with the prior-year quarter. Businesses with resilient
revenues continued to deliver fee revenue growth for the quarter,
as Property Management, within Markets Advisory, grew 12%;
Workplace Management, within Work Dynamics, grew 5%; and JLL
Technologies increased 5%. Consistent with the first half of 2023,
economic uncertainty and elevated interest rates along with
geopolitical instability in several geographies adversely impacted
most of the transaction-based businesses, notably Investment Sales
and Debt/Equity Advisory within Capital Markets, and Leasing within
Markets Advisory. However, Project Management, within Work
Dynamics, was up 8% due to continued project execution in several
geographies, and Portfolio Services and Other within Work Dynamics
benefited from outsized transaction activity in the current
quarter. The decline in LaSalle's
top-line was largely due to the absence of 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, Adjusted EBITDA and Margin Performance
Net income attributable to common shareholders for the third
quarter was $59.7 million, compared
with $140.2 million in 2022, and
Adjusted EBITDA was $205.2 million,
compared with $276.2 million last
year. Compared with 2022, interest expense, net of interest income,
increased $13.9 million for the
quarter due to a higher effective interest rate as well as an
increase in the average outstanding borrowings under our credit
facilities. In addition, the increase in restructuring and
acquisition charges was primarily driven by higher severance and
other employment-related charges associated with cost-out
actions.
Diluted earnings per share for the third quarter were
$1.23, down from $2.88 in 2022; Adjusted diluted earnings per
share were $2.01, compared with
$3.40 last year.
Margin was impacted by lower transaction-based revenue and the
change in Equity earnings/losses, net of carried interest.
Partially offsetting these items was the benefit of recent cost
reduction actions.
The nine months ended September 30,
2023, had Net income attributable to common shareholders of
$53.0 million, compared with income
of $479.7 million last year, and
Adjusted EBITDA was $430.3 million
this year, compared with $908.8
million in 2022. Diluted earnings per share were
$1.10 for the nine months ended
September 30, 2023, down from diluted
earnings per share of $9.65 in 2022;
Adjusted diluted earnings per share were $3.17, compared with $11.35 last year.
Cash Flows and Capital Allocation:
Net cash provided by operating activities was $325.7 million for the third quarter of 2023,
compared with $137.5 million in the
comparative quarter. Free Cash Flow5 was an inflow of
$276.2 million this quarter, compared
with $88.4 million in the third
quarter of 2022. Incremental cash flows associated with trade
receivables, lower commission payments and $59.0 million less in cash taxes paid outpaced
the decline in cash provided by earnings for the quarter. This
$67.2 million year-over-year decline
in Q3 cash provided by earnings was largely driven by the Capital
Markets and Markets Advisory change in business performance.
In the third quarter of 2023, the company repurchased 123,160
shares for $20.1 million. In the
third quarter of 2022, 909,200 shares were repurchased, returning
$153.5 million to shareholders.
As of September 30, 2023,
$1,115.5 million remained authorized
for repurchase.
Net Debt, Leverage and Liquidity5:
|
September 30, 2023
|
|
June 30,
2023
|
|
September 30,
2022
|
|
|
|
|
|
|
Total Net Debt (in
millions)
|
$
1,698.6
|
|
1,941.5
|
|
1,697.6
|
|
|
|
|
|
|
Net Leverage
Ratio
|
2.2x
|
|
2.3x
|
|
1.1x
|
|
|
|
|
|
|
Corporate Liquidity (in
billions)
|
$
2.1
|
|
1.9
|
|
2.1
|
The decrease in Net Debt from June 30,
2023, was primarily due to cash provided by operating
activities in the third quarter. The higher year-over-year leverage
ratio was entirely driven by a decline in the trailing twelve month
Adjusted EBITDA (which includes the impact of equity losses from
the second quarter).
Markets Advisory Third-Quarter 2023 Performance
Highlights:
|
Markets Advisory
($ in
millions, "LC" = local currency)
|
Three Months Ended September
30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
|
Nine Months Ended September 30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
992.4
|
|
$
1,111.5
|
|
(11) %
|
|
(11) %
|
|
$
2,924.2
|
|
$
3,229.2
|
|
(9) %
|
|
(9) %
|
Gross contract
costs1
|
(288.4)
|
|
(263.6)
|
|
9
|
|
10
|
|
(851.8)
|
|
(784.3)
|
|
9
|
|
11
|
Fee revenue1
|
$
704.0
|
|
$
847.9
|
|
(17) %
|
|
(17) %
|
|
$
2,072.4
|
|
$
2,444.9
|
|
(15) %
|
|
(15) %
|
Leasing
|
542.5
|
|
696.4
|
|
(22)
|
|
(22)
|
|
1,613.0
|
|
1,996.8
|
|
(19)
|
|
(19)
|
Property Management
|
138.4
|
|
122.9
|
|
13
|
|
12
|
|
396.5
|
|
363.7
|
|
9
|
|
11
|
Advisory, Consulting and Other
|
23.1
|
|
28.6
|
|
(19)
|
|
(19)
|
|
62.9
|
|
84.4
|
|
(25)
|
|
(24)
|
Segment operating income
|
$
69.4
|
|
$
113.0
|
|
(39) %
|
|
(38) %
|
|
$
209.0
|
|
$
320.6
|
|
(35) %
|
|
(35) %
|
Adjusted EBITDA1
|
$
85.1
|
|
$
132.1
|
|
(36) %
|
|
(33) %
|
|
$
256.1
|
|
$
377.3
|
|
(32) %
|
|
(31) %
|
Adjusted EBITDA margin
(local currency basis)
|
12.6 %
|
|
15.6 %
|
|
(350) bps
|
|
(300) bps
|
|
12.4 %
|
|
15.4 %
|
|
(300) bps
|
|
(300) bps
|
Adjusted EBITDA margin
(USD basis)
|
12.1 %
|
|
|
|
|
12.4 %
|
|
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 year-over-year declines in Markets Advisory revenue and fee
revenue were largely driven by Leasing and reflected lower
transaction volumes and a decline in average deal size across
nearly all asset types, particularly in the office sector.
Continued economic uncertainty has delayed commercial real estate
decision making, particularly for large-scale leasing actions. 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. Property Management continued to
achieve top-line growth, primarily attributable to portfolio
expansion in the Americas and incremental fees from interest-rate
sensitive contract terms in the U.K.
The lower margin was predominantly attributable to the lower
Leasing fee revenue described above, partially offset by cost
containment measures.
Capital Markets Third-Quarter 2023 Performance
Highlights:
|
Capital Markets
($ in
millions, "LC" = local currency)
|
Three Months Ended September
30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
|
Nine Months Ended September 30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
435.8
|
|
$
595.2
|
|
(27) %
|
|
(28) %
|
|
$
1,240.9
|
|
$
1,880.3
|
|
(34) %
|
|
(34) %
|
Gross contract
costs1
|
(11.5)
|
|
(10.9)
|
|
6
|
|
1
|
|
(33.9)
|
|
(36.2)
|
|
(6)
|
|
(6)
|
Net non-cash MSR and
mortgage banking
derivative
activity
|
7.1
|
|
(5.2)
|
|
(237)
|
|
(236)
|
|
9.5
|
|
(12.8)
|
|
(174)
|
|
(174)
|
Fee revenue1
|
$
431.4
|
|
$
579.1
|
|
(26) %
|
|
(27) %
|
|
$
1,216.5
|
|
$
1,831.3
|
|
(34) %
|
|
(33) %
|
Investment Sales, Debt/Equity Advisory
and
Other
|
308.9
|
|
452.1
|
|
(32)
|
|
(33)
|
|
854.0
|
|
1,448.6
|
|
(41)
|
|
(41)
|
Value and Risk Advisory
|
84.4
|
|
86.5
|
|
(2)
|
|
(4)
|
|
248.0
|
|
261.9
|
|
(5)
|
|
(4)
|
Loan Servicing
|
38.1
|
|
40.5
|
|
(6)
|
|
(6)
|
|
114.5
|
|
120.8
|
|
(5)
|
|
(5)
|
Segment operating income
|
$
25.8
|
|
$
72.5
|
|
(64) %
|
|
(65) %
|
|
$
31.8
|
|
$
292.5
|
|
(89) %
|
|
(90) %
|
Equity earnings
|
$
0.7
|
|
$
0.7
|
|
— %
|
|
12 %
|
|
$
6.1
|
|
$
2.1
|
|
190 %
|
|
195 %
|
Adjusted EBITDA1
|
$
50.3
|
|
$
83.2
|
|
(40) %
|
|
(40) %
|
|
$
97.0
|
|
$
328.1
|
|
(70) %
|
|
(71) %
|
Adjusted EBITDA margin
(local currency basis)
|
11.7 %
|
|
14.4 %
|
|
(270) bps
|
|
(270) bps
|
|
7.9 %
|
|
17.9 %
|
|
(990) bps
|
|
(1,000)
bps
|
Adjusted EBITDA margin
(USD basis)
|
11.7 %
|
|
|
|
|
8.0 %
|
|
|
|
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.
|
Note: "Valuation
Advisory" was changed to "Value and Risk Advisory" in the third
quarter of 2023.
|
The lower Capital Markets revenue and fee revenue continued to
reflect the meaningful drop in transaction volumes compared with
2022, as ample capital continues to remain heavily sidelined with
economic and interest rate uncertainty. This impact was most
pronounced in Investment Sales and Debt/Equity Advisory, which
experienced declines across nearly all asset sectors and
geographies compared with the prior-year quarter. This outperformed
broader market trends as Q3 global market volumes for investment
sales were down 46% in USD (48% in local currency) according to JLL
Research. The decline in Loan Servicing was attributable to
$3.8 million of lower prepayment
fees, as refinancing activity slowed over the last twelve months,
overshadowing continued growth in servicing fees from the portfolio
originated under the Fannie Mae DUS program.
The margin reduction for the quarter was predominantly driven by
lower Investment Sales and Debt/Equity Advisory revenue.
Work Dynamics Third-Quarter 2023 Performance
Highlights:
|
Work Dynamics
($ in
millions, "LC" = local currency)
|
Three Months Ended September
30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
|
Nine Months Ended September 30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
3,514.2
|
|
$
3,289.8
|
|
7 %
|
|
6 %
|
|
$
10,165.0
|
|
$
9,633.9
|
|
6 %
|
|
6 %
|
Gross contract
costs1
|
(3,016.5)
|
|
(2,836.9)
|
|
6
|
|
6
|
|
(8,747.5)
|
|
(8,303.5)
|
|
5
|
|
6
|
Fee revenue1
|
$
497.7
|
|
$
452.9
|
|
10 %
|
|
9 %
|
|
$
1,417.5
|
|
$
1,330.4
|
|
7 %
|
|
7 %
|
Workplace Management
|
195.1
|
|
183.6
|
|
6
|
|
5
|
|
566.5
|
|
550.5
|
|
3
|
|
4
|
Project Management
|
229.6
|
|
210.0
|
|
9
|
|
8
|
|
670.2
|
|
600.6
|
|
12
|
|
13
|
Portfolio Services and Other
|
73.0
|
|
59.3
|
|
23
|
|
21
|
|
180.8
|
|
179.3
|
|
1
|
|
1
|
Segment operating income
|
$
41.8
|
|
$
35.7
|
|
17 %
|
|
21 %
|
|
$
83.7
|
|
$
93.8
|
|
(11) %
|
|
(13) %
|
Adjusted EBITDA1
|
$
61.6
|
|
$
53.4
|
|
15 %
|
|
17 %
|
|
$
143.5
|
|
$
146.2
|
|
(2) %
|
|
(3) %
|
Adjusted EBITDA margin
(local currency basis)
|
12.7 %
|
|
11.8 %
|
|
60 bps
|
|
90 bps
|
|
9.9 %
|
|
11.0 %
|
|
(90) bps
|
|
(110) bps
|
Adjusted EBITDA margin
(USD basis)
|
12.4 %
|
|
|
|
|
10.1 %
|
|
|
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.
|
Work Dynamics revenue and fee revenue growth was broad-based
across service lines and included strong Project Management results
from ongoing project execution, particularly in the U.K., MENA,
Italy and Southeast Asia. Portfolio Services
outperformed the prior-year quarter primarily due to one large
transaction on behalf of a client in the
United States. Workplace Management continued to deliver
growth, highlighted by the ramp-up of new, global client wins that
began this quarter.
The net margin expansion was primarily attributable to the
revenue growth described above, notably from Portfolio Services,
together with continued cost management.
JLL Technologies Third-Quarter 2023 Performance
Highlights:
|
JLL Technologies
($ in
millions, "LC" = local currency)
|
Three Months Ended September
30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
|
Nine Months Ended September 30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
58.9
|
|
$
56.5
|
|
4 %
|
|
4 %
|
|
$
180.9
|
|
$
156.6
|
|
16 %
|
|
16 %
|
Gross contract
costs1
|
(3.3)
|
|
(3.8)
|
|
(13)
|
|
(12)
|
|
(11.0)
|
|
(10.6)
|
|
4
|
|
4
|
Fee revenue1
|
$
55.6
|
|
$
52.7
|
|
6 %
|
|
5 %
|
|
$
169.9
|
|
$
146.0
|
|
16 %
|
|
16 %
|
Segment operating loss(a)
|
$
(9.6)
|
|
$
(20.0)
|
|
52 %
|
|
53 %
|
|
$
(37.1)
|
|
$
(90.5)
|
|
59 %
|
|
58 %
|
Equity (losses) earnings
|
$
(3.0)
|
|
$
1.0
|
|
(400) %
|
|
(394) %
|
|
$
(102.0)
|
|
$
64.5
|
|
(258) %
|
|
(258) %
|
Adjusted EBITDA1
|
$
(8.7)
|
|
$
(15.3)
|
|
43 %
|
|
44 %
|
|
$
(127.2)
|
|
$
(14.7)
|
|
(765) %
|
|
(773) %
|
Adjusted EBITDA margin
(local currency basis)
|
(15.5) %
|
|
(29.0) %
|
|
1,340 bps
|
|
1,350 bps
|
|
(75.2) %
|
|
(10.1) %
|
|
(6,480)
bps
|
|
(6,510)
bps
|
Adjusted EBITDA margin
(USD basis)
|
(15.6) %
|
|
|
|
|
(74.9) %
|
|
|
|
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.
|
(a) Included in Segment
operating loss for JLL Technologies is a reduction in carried
interest expense of $0.1 million and $9.4 million for the three and
nine months ended September 30, 2023, respectively, and carried
interest expense of $0.6 million and $16.6 million for the three
and
nine months ended
September 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 due to growth in solutions
and service offerings, largely from existing enterprise clients.
The current quarter's expansion follows a 54% increase (28%
organic) in the prior-year quarter (compared with 2021).
Equity losses this quarter were primarily attributable to modest
valuation decreases to a handful of JLL Technologies' investments,
reflecting subsequent financing rounds at decreased per-share
values and lower NAV per share values for proptech funds.
Margin improvement was attributable to (i) fee revenue growth,
(ii) an approximate $5 million
reduction to incentive compensation, related to current-quarter
true-ups based on performance achievement, and (iii) improved
operating efficiencies, partially offset by the change in equity
earnings/losses, net of carried interest.
LaSalle Third-Quarter 2023 Performance
Highlights:
|
LaSalle
($ in
millions, "LC" = local currency)
|
Three Months Ended September
30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
|
Nine Months Ended September 30,
|
|
%
Change
in USD
|
|
%
Change
in LC
|
2023
|
|
2022
|
|
|
|
2023
|
|
2022
|
|
|
Revenue
|
$
110.1
|
|
$
124.5
|
|
(12) %
|
|
(13) %
|
|
$
368.4
|
|
$
357.3
|
|
3 %
|
|
4 %
|
Gross contract
costs1
|
(7.4)
|
|
(8.5)
|
|
(13)
|
|
(13)
|
|
(22.0)
|
|
(22.0)
|
|
—
|
|
—
|
Fee revenue1
|
$
102.7
|
|
$
116.0
|
|
(11) %
|
|
(13) %
|
|
$
346.4
|
|
$
335.3
|
|
3 %
|
|
4 %
|
Advisory fees
|
95.3
|
|
95.4
|
|
—
|
|
(2)
|
|
284.4
|
|
284.3
|
|
—
|
|
1
|
Transaction fees and other
|
7.4
|
|
8.7
|
|
(15)
|
|
(14)
|
|
22.7
|
|
33.9
|
|
(33)
|
|
(30)
|
Incentive fees
|
—
|
|
11.9
|
|
(100)
|
|
(105)
|
|
39.3
|
|
17.1
|
|
130
|
|
130
|
Segment operating income
|
$
23.3
|
|
$
22.4
|
|
4 %
|
|
1 %
|
|
$
77.8
|
|
$
63.4
|
|
23 %
|
|
23 %
|
Equity (losses) earnings
|
$
(9.1)
|
|
$
(1.1)
|
|
(727) %
|
|
(667) %
|
|
$
(23.0)
|
|
$
4.0
|
|
(675) %
|
|
(680) %
|
Adjusted EBITDA1
|
$
16.9
|
|
$
22.8
|
|
(26) %
|
|
(28) %
|
|
$
60.9
|
|
$
71.9
|
|
(15) %
|
|
(15) %
|
Adjusted EBITDA margin
(local currency basis)
|
16.3 %
|
|
19.7 %
|
|
(320) bps
|
|
(340) bps
|
|
17.4 %
|
|
21.4 %
|
|
(380) bps
|
|
(400) bps
|
Adjusted EBITDA margin
(USD basis)
|
16.5 %
|
|
|
|
|
17.6 %
|
|
|
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.
|
Lower revenue over the prior-year quarter was primarily due to
continued subdued transaction volumes, as evidenced by lower
incentive and transaction fees. Advisory fee performance remained
resilient despite real estate valuation declines over the trailing
twelve months, impacting assets under management.
The current quarter's equity losses were primarily attributable
to valuation declines in the co-investment portfolio compared with
negligible valuation changes in 2022.
The Adjusted EBITDA margin reduction was driven by the equity
losses and reduction in incentive fees. Partially offsetting these
items were the absence of prior-year expenses to right-size the
advisory fee platform as well as lower incentive compensation
expense.
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 105,000 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
Live Webcast
|
|
Conference Call
|
Management will offer a
live webcast for shareholders, analysts and investment
professionals on Thursday, November 2,
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 third 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 September 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 September
30,
|
|
Nine Months Ended September 30,
|
(in millions, except
share and per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Revenue
|
$
5,111.4
|
|
$
5,177.5
|
|
$
14,879.4
|
|
$
15,257.3
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Compensation and
benefits
|
$
2,434.6
|
|
$
2,496.2
|
|
$
7,104.6
|
|
$
7,461.4
|
Operating,
administrative and other
|
2,467.0
|
|
2,402.0
|
|
7,233.1
|
|
6,950.6
|
Depreciation and
amortization
|
59.1
|
|
55.7
|
|
176.5
|
|
165.5
|
Restructuring and
acquisition charges2
|
31.6
|
|
21.0
|
|
79.1
|
|
66.4
|
Total operating
expenses
|
$
4,992.3
|
|
$
4,974.9
|
|
$
14,593.3
|
|
$
14,643.9
|
|
|
|
|
|
|
|
|
Operating
income
|
$
119.1
|
|
$
202.6
|
|
$
286.1
|
|
$
613.4
|
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
37.1
|
|
23.2
|
|
103.9
|
|
49.1
|
Equity (losses)
earnings
|
(11.2)
|
|
0.5
|
|
(117.3)
|
|
72.6
|
Other income
|
3.0
|
|
0.5
|
|
1.9
|
|
136.0
|
|
|
|
|
|
|
|
|
Income before income
taxes and noncontrolling interest
|
73.8
|
|
180.4
|
|
66.8
|
|
772.9
|
Income tax
provision
|
14.5
|
|
42.3
|
|
13.0
|
|
155.4
|
Net income
|
59.3
|
|
138.1
|
|
53.8
|
|
617.5
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to noncontrolling interest(a)
|
(0.4)
|
|
(2.1)
|
|
0.8
|
|
137.8
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
$
59.7
|
|
$
140.2
|
|
$
53.0
|
|
$
479.7
|
|
|
|
|
|
|
|
|
Basic earnings per
common share
|
$
1.25
|
|
$
2.93
|
|
$
1.11
|
|
$
9.83
|
Basic weighted average
shares outstanding (in 000's)
|
47,662
|
|
47,863
|
|
47,655
|
|
48,782
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share
|
$
1.23
|
|
$
2.88
|
|
$
1.10
|
|
$
9.65
|
Diluted weighted
average shares outstanding (in 000's)
|
48,394
|
|
48,629
|
|
48,317
|
|
49,727
|
|
|
|
|
|
|
|
|
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 September
30,
|
|
Nine Months Ended September 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
MARKETS ADVISORY
|
|
|
|
|
|
|
|
Revenue
|
$
992.4
|
|
$
1,111.5
|
|
$
2,924.2
|
|
$
3,229.2
|
Gross contract
costs1
|
(288.4)
|
|
(263.6)
|
|
(851.8)
|
|
(784.3)
|
Fee
revenue1
|
$
704.0
|
|
$
847.9
|
|
$
2,072.4
|
|
$
2,444.9
|
Compensation
and benefits, excluding gross contract costs
|
$
531.2
|
|
$
620.4
|
|
$
1,538.6
|
|
$
1,779.7
|
Operating,
administrative and other, excluding gross contract costs
|
86.5
|
|
96.9
|
|
273.4
|
|
292.6
|
Depreciation
and amortization
|
16.9
|
|
17.6
|
|
51.4
|
|
52.0
|
Segment fee-based
operating expenses
|
634.6
|
|
734.9
|
|
1,863.4
|
|
2,124.3
|
Gross contract
costs1
|
288.4
|
|
263.6
|
|
851.8
|
|
784.3
|
Segment operating
expenses
|
$
923.0
|
|
$
998.5
|
|
$
2,715.2
|
|
$
2,908.6
|
Segment operating
income
|
$
69.4
|
|
$
113.0
|
|
$
209.0
|
|
$
320.6
|
Add:
|
|
|
|
|
|
|
|
Equity earnings
(losses)
|
0.1
|
|
(0.2)
|
|
0.3
|
|
0.7
|
Depreciation
and amortization(a)
|
15.9
|
|
16.6
|
|
48.5
|
|
50.0
|
Other
income
|
1.8
|
|
0.4
|
|
0.5
|
|
132.9
|
Net (income)
loss attributable to noncontrolling interest
|
(0.2)
|
|
2.3
|
|
(0.8)
|
|
(137.4)
|
Adjustments:
|
|
|
|
|
|
|
|
Net (gain) loss
on disposition
|
(0.9)
|
|
—
|
|
0.9
|
|
10.5
|
Interest on
employee loans, net of forgiveness
|
(1.0)
|
|
—
|
|
(2.3)
|
|
—
|
Adjusted
EBITDA1
|
$
85.1
|
|
$
132.1
|
|
$
256.1
|
|
$
377.3
|
|
|
|
|
|
|
|
|
CAPITAL MARKETS
|
|
|
|
|
|
|
|
Revenue
|
$
435.8
|
|
$
595.2
|
|
$
1,240.9
|
|
$
1,880.3
|
Gross contract
costs1
|
(11.5)
|
|
(10.9)
|
|
(33.9)
|
|
(36.2)
|
Net non-cash
MSR and mortgage banking derivative activity
|
7.1
|
|
(5.2)
|
|
9.5
|
|
(12.8)
|
Fee
revenue1
|
$
431.4
|
|
$
579.1
|
|
$
1,216.5
|
|
$
1,831.3
|
Compensation
and benefits, excluding gross contract costs
|
$
323.8
|
|
$
430.6
|
|
$
943.1
|
|
$
1,318.7
|
Operating,
administrative and other, excluding gross contract costs
|
58.3
|
|
66.0
|
|
183.6
|
|
186.7
|
Depreciation
and amortization
|
16.4
|
|
15.2
|
|
48.5
|
|
46.2
|
Segment fee-based
operating expenses
|
398.5
|
|
511.8
|
|
1,175.2
|
|
1,551.6
|
Gross contract
costs1
|
11.5
|
|
10.9
|
|
33.9
|
|
36.2
|
Segment operating
expenses
|
$
410.0
|
|
$
522.7
|
|
$
1,209.1
|
|
$
1,587.8
|
Segment operating
income
|
$
25.8
|
|
$
72.5
|
|
$
31.8
|
|
$
292.5
|
Add:
|
|
|
|
|
|
|
|
Equity
earnings
|
0.7
|
|
0.7
|
|
6.1
|
|
2.1
|
Depreciation
and amortization
|
16.4
|
|
15.2
|
|
48.5
|
|
46.2
|
Other
income
|
1.3
|
|
—
|
|
1.5
|
|
0.1
|
Adjustments:
|
|
|
|
|
|
|
|
Net non-cash
MSR and mortgage banking derivative activity
|
7.1
|
|
(5.2)
|
|
9.5
|
|
(12.8)
|
Interest on
employee loans, net of forgiveness
|
(0.6)
|
|
—
|
|
—
|
|
—
|
Gain on
disposition
|
(0.4)
|
|
—
|
|
(0.4)
|
|
—
|
Adjusted
EBITDA1
|
$
50.3
|
|
$
83.2
|
|
$
97.0
|
|
$
328.1
|
(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)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
WORK DYNAMICS
|
|
|
|
|
|
|
|
|
Revenue
|
$
3,514.2
|
|
$
3,289.8
|
|
$
10,165.0
|
|
$
9,633.9
|
|
Gross contract
costs1
|
(3,016.5)
|
|
(2,836.9)
|
|
(8,747.5)
|
|
(8,303.5)
|
|
Fee
revenue1
|
$
497.7
|
|
$
452.9
|
|
$
1,417.5
|
|
$
1,330.4
|
|
Compensation
and benefits, excluding gross contract costs
|
$
332.9
|
|
$
285.0
|
|
$
958.9
|
|
$
870.8
|
|
Operating,
administrative and other, excluding gross contract costs
|
103.3
|
|
114.6
|
|
316.0
|
|
314.7
|
|
Depreciation
and amortization
|
19.7
|
|
17.6
|
|
58.9
|
|
51.1
|
|
Segment fee-based
operating expenses
|
455.9
|
|
417.2
|
|
1,333.8
|
|
1,236.6
|
|
Gross contract
costs1
|
3,016.5
|
|
2,836.9
|
|
8,747.5
|
|
8,303.5
|
|
Segment operating
expenses
|
$
3,472.4
|
|
$
3,254.1
|
|
$
10,081.3
|
|
$
9,540.1
|
|
Segment operating
income
|
$
41.8
|
|
$
35.7
|
|
$
83.7
|
|
$
93.8
|
|
Add:
|
|
|
|
|
|
|
|
|
Equity
earnings
|
0.1
|
|
0.1
|
|
1.3
|
|
1.3
|
|
Depreciation
and amortization
|
19.7
|
|
17.6
|
|
58.9
|
|
51.1
|
|
Other
income
|
—
|
|
0.1
|
|
—
|
|
0.1
|
|
Net income
attributable to noncontrolling interest
|
—
|
|
(0.1)
|
|
(0.4)
|
|
(0.1)
|
|
Adjusted
EBITDA1
|
$
61.6
|
|
$
53.4
|
|
$
143.5
|
|
$
146.2
|
|
|
|
|
|
|
|
|
|
|
JLL TECHNOLOGIES
|
|
|
|
|
|
|
|
|
Revenue
|
$
58.9
|
|
$
56.5
|
|
$
180.9
|
|
$
156.6
|
|
Gross contract
costs1
|
(3.3)
|
|
(3.8)
|
|
(11.0)
|
|
(10.6)
|
|
Fee
revenue1
|
$
55.6
|
|
$
52.7
|
|
$
169.9
|
|
$
146.0
|
|
Compensation
and benefits, excluding gross contract
costs(a)
|
$
48.7
|
|
$
57.7
|
|
$
155.3
|
|
$
185.7
|
|
Operating,
administrative and other, excluding gross contract costs
|
12.6
|
|
11.3
|
|
39.8
|
|
39.4
|
|
Depreciation
and amortization
|
3.9
|
|
3.7
|
|
11.9
|
|
11.4
|
|
Segment fee-based
operating expenses
|
65.2
|
|
72.7
|
|
207.0
|
|
236.5
|
|
Gross contract
costs1
|
3.3
|
|
3.8
|
|
11.0
|
|
10.6
|
|
Segment operating
expenses
|
$
68.5
|
|
$
76.5
|
|
$
218.0
|
|
$
247.1
|
|
Segment operating
loss
|
$
(9.6)
|
|
$
(20.0)
|
|
$
(37.1)
|
|
$
(90.5)
|
|
Add:
|
|
|
|
|
|
|
|
|
Equity (losses)
earnings
|
(3.0)
|
|
1.0
|
|
(102.0)
|
|
64.5
|
|
Depreciation
and amortization
|
3.9
|
|
3.7
|
|
11.9
|
|
11.4
|
|
Other
income
|
—
|
|
—
|
|
—
|
|
2.9
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Gain on
disposition
|
—
|
|
—
|
|
—
|
|
(3.0)
|
|
Adjusted
EBITDA1
|
$
(8.7)
|
|
$
(15.3)
|
|
$
(127.2)
|
|
$
(14.7)
|
|
(a) Included in
Compensation and benefits expense for JLL Technologies is carried
interest benefit of $0.1 million and $9.4 million for the three and
nine months ended September 30, 2023, respectively, and carried
interest expense of $0.6 million and $16.6 million for the three
and nine months ended September 30, 2022, related to Equity
earnings of the segment.
|
|
|
|
|
|
JONES LANG LASALLE INCORPORATED
|
|
Selected Segment Financial Data (Unaudited)
Continued
|
|
|
|
|
|
|
|
Three Months Ended September
30,
|
|
Nine Months Ended September 30,
|
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
LASALLE
|
|
|
|
|
|
|
|
|
Revenue
|
$
110.1
|
|
$
124.5
|
|
$
368.4
|
|
$
357.3
|
|
Gross contract
costs1
|
(7.4)
|
|
(8.5)
|
|
(22.0)
|
|
(22.0)
|
|
Fee
revenue1
|
$
102.7
|
|
$
116.0
|
|
$
346.4
|
|
$
335.3
|
|
Compensation
and benefits, excluding gross contract costs
|
$
63.2
|
|
$
78.7
|
|
$
216.5
|
|
$
225.7
|
|
Operating,
administrative and other, excluding gross contract costs
|
14.0
|
|
13.3
|
|
46.3
|
|
41.4
|
|
Depreciation
and amortization
|
2.2
|
|
1.6
|
|
5.8
|
|
4.8
|
|
Segment fee-based
operating expenses
|
79.4
|
|
93.6
|
|
268.6
|
|
271.9
|
|
Gross contract
costs1
|
7.4
|
|
8.5
|
|
22.0
|
|
22.0
|
|
Segment operating
expenses
|
$
86.8
|
|
$
102.1
|
|
$
290.6
|
|
$
293.9
|
|
Segment operating
income
|
$
23.3
|
|
$
22.4
|
|
$
77.8
|
|
$
63.4
|
|
Add:
|
|
|
|
|
|
|
|
|
Equity (losses)
earnings
|
(9.1)
|
|
(1.1)
|
|
(23.0)
|
|
4.0
|
|
Depreciation
and amortization
|
2.2
|
|
1.6
|
|
5.8
|
|
4.8
|
|
Other
expense
|
(0.1)
|
|
—
|
|
(0.1)
|
|
—
|
|
Net loss
(income) attributable to noncontrolling interest
|
0.6
|
|
(0.1)
|
|
0.4
|
|
(0.3)
|
|
Adjusted
EBITDA1
|
$
16.9
|
|
$
22.8
|
|
$
60.9
|
|
$
71.9
|
|
JONES LANG LASALLE INCORPORATED
|
Consolidated Statement of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
(in
millions)
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
Cash flows from operating
activities:
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
Net income
|
$
53.8
|
|
$ 617.5
|
|
Net capital additions
– property and equipment
|
$
(137.7)
|
|
$
(136.0)
|
Reconciliation of net
income to net cash used in operating activities:
|
|
|
|
|
Net investment asset
activity (less than wholly-owned)
|
—
|
|
132.4
|
Depreciation
and amortization
|
176.5
|
|
165.5
|
|
Business acquisitions,
net of cash acquired
|
(13.6)
|
|
(5.7)
|
Equity losses
(earnings)
|
117.3
|
|
(72.6)
|
|
Capital contributions
to investments
|
(86.8)
|
|
(142.3)
|
Net loss (gain)
on dispositions
|
0.5
|
|
(134.8)
|
|
Distributions of
capital from investments
|
21.5
|
|
19.1
|
Distributions
of earnings from investments
|
8.2
|
|
14.9
|
|
Other, net
|
(3.8)
|
|
(15.3)
|
Provision for
loss on receivables and other assets
|
21.7
|
|
17.4
|
|
Net cash used in investing
activities
|
(220.4)
|
|
(147.8)
|
Amortization of
stock-based compensation
|
59.5
|
|
69.7
|
|
Cash flows from financing
activities:
|
|
|
|
Net non-cash
mortgage servicing rights and mortgage banking derivative
activity
|
9.5
|
|
(12.8)
|
|
Proceeds from
borrowings under credit facility
|
5,969.0
|
|
5,756.0
|
Accretion of
interest and amortization of debt issuance costs
|
3.1
|
|
3.7
|
|
Repayments of
borrowings under credit facility
|
(5,594.0)
|
|
(4,306.0)
|
Other,
net
|
15.4
|
|
4.2
|
|
Repayment of senior
notes
|
—
|
|
(275.0)
|
Change
in:
|
|
|
|
|
Net (repayments of)
proceeds from short-term borrowings
|
(46.4)
|
|
109.6
|
Receivables
|
162.9
|
|
(49.7)
|
|
Payments of deferred
business acquisition obligations and earn-outs
|
(22.6)
|
|
(10.4)
|
Reimbursable
receivables and reimbursable payables
|
(110.7)
|
|
(162.6)
|
|
Repurchase of common
stock
|
(39.4)
|
|
(596.6)
|
Prepaid expenses and
other assets
|
(104.4)
|
|
(74.6)
|
|
Noncontrolling
interest distributions, net
|
(4.2)
|
|
(135.8)
|
Deferred tax assets,
net
|
(36.0)
|
|
95.0
|
|
Other, net
|
(31.2)
|
|
(41.3)
|
Accounts payable and
accrued liabilities
|
(174.5)
|
|
(390.7)
|
|
Net cash provided by financing
activities
|
231.2
|
|
500.5
|
Accrued
compensation
|
(356.4)
|
|
(492.0)
|
|
Effect of currency
exchange rate changes on cash, cash equivalents and restricted
cash
|
(9.6)
|
|
(63.6)
|
Net cash used in operating
activities
|
$
(153.6)
|
|
$
(401.9)
|
|
Net change in cash, cash equivalents and restricted
cash
|
$
(152.4)
|
|
$
(112.8)
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash, beginning of the period
|
746.0
|
|
841.6
|
|
|
|
|
|
Cash, cash equivalents and restricted cash, end of
the period
|
$
593.6
|
|
$ 728.8
|
|
|
|
|
|
|
|
|
|
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)
|
2023
|
|
2022
|
|
|
|
|
2023
|
|
2022
|
ASSETS
|
(Unaudited)
|
|
|
|
LIABILITIES AND EQUITY
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Cash and cash
equivalents
|
$
389.5
|
|
$
519.3
|
|
|
Accounts payable and
accrued liabilities
|
$
1,074.2
|
|
$
1,236.8
|
|
Trade receivables, net
of allowance
|
1,912.7
|
|
2,148.8
|
|
|
Reimbursable
payables
|
1,469.4
|
|
1,579.5
|
|
Notes and other
receivables
|
393.3
|
|
469.5
|
|
|
Accrued compensation
and benefits
|
1,338.8
|
|
1,749.8
|
|
Reimbursable
receivables
|
2,005.6
|
|
2,005.7
|
|
|
Short-term
borrowings
|
117.6
|
|
164.2
|
|
Warehouse
receivables
|
705.2
|
|
463.2
|
|
|
Short-term contract
liability and deferred income
|
206.5
|
|
216.5
|
|
Short-term contract
assets, net of allowance
|
359.7
|
|
359.7
|
|
|
Short-term
acquisition-related obligations
|
20.8
|
|
23.1
|
|
Prepaid and
other
|
612.6
|
|
603.5
|
|
|
Warehouse
facilities
|
574.9
|
|
455.3
|
|
|
Total current
assets
|
6,378.6
|
|
6,569.7
|
|
|
Short-term operating
lease liability
|
158.5
|
|
156.4
|
Property and equipment,
net of accumulated depreciation
|
589.4
|
|
582.9
|
|
|
Other
|
464.8
|
|
330.5
|
Operating lease
right-of-use asset
|
755.3
|
|
776.3
|
|
|
|
Total current
liabilities
|
5,425.5
|
|
5,912.1
|
Goodwill
|
4,541.8
|
|
4,528.0
|
|
Noncurrent
liabilities:
|
|
|
|
Identified intangibles,
net of accumulated amortization
|
803.2
|
|
858.5
|
|
|
Credit facility, net of
debt issuance costs
|
1,591.4
|
|
1,213.8
|
Investments
|
865.2
|
|
873.8
|
|
|
Long-term debt, net of
debt issuance costs
|
369.5
|
|
372.8
|
Long-term
receivables
|
394.4
|
|
331.1
|
|
|
Long-term deferred tax
liabilities, net
|
161.0
|
|
194.0
|
Deferred tax assets,
net
|
382.5
|
|
379.6
|
|
|
Deferred
compensation
|
542.2
|
|
492.4
|
Deferred compensation
plans
|
590.3
|
|
517.9
|
|
|
Long-term
acquisition-related obligations
|
57.6
|
|
76.3
|
Other
|
179.8
|
|
175.9
|
|
|
Long-term operating
lease liability
|
764.5
|
|
775.8
|
|
|
Total assets
|
$
15,480.5
|
|
$
15,593.7
|
|
|
Other
|
399.1
|
|
407.0
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
9,310.8
|
|
$
9,444.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest
|
$
6.8
|
|
$
7.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Common stock
|
0.5
|
|
0.5
|
|
|
|
|
|
|
Additional paid-in
capital
|
2,009.5
|
|
2,022.6
|
|
|
|
|
|
|
|
|
Retained
earnings
|
5,624.5
|
|
5,590.4
|
|
|
|
|
|
|
Treasury
stock
|
(907.2)
|
|
(934.6)
|
|
|
|
|
|
|
|
|
Shares held in
trust
|
(11.4)
|
|
(9.8)
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive loss
|
(671.4)
|
|
(648.2)
|
|
|
|
|
|
|
|
|
Total company
shareholders' equity
|
6,044.5
|
|
6,020.9
|
|
|
|
|
|
|
Noncontrolling
interest
|
118.4
|
|
121.6
|
|
|
|
|
|
|
|
Total equity
|
6,162.9
|
|
6,142.5
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
$
15,480.5
|
|
$
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
$0.5 million net loss included
$1.8 million of loss related to the
disposition of a business in Markets Advisory, partially offset by
a $1.3 million gain related to the
disposition of a business in Markets Advisory and Capital Markets.
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 September
30,
|
|
Nine Months Ended September 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Revenue
|
$
5,111.4
|
|
$
5,177.5
|
|
$
14,879.4
|
|
$
15,257.3
|
Gross contract
costs1
|
(3,327.1)
|
|
(3,123.7)
|
|
(9,666.2)
|
|
(9,156.6)
|
Net non-cash MSR and
mortgage banking derivative activity
|
7.1
|
|
(5.2)
|
|
9.5
|
|
(12.8)
|
Fee revenue
|
$
1,791.4
|
|
$
2,048.6
|
|
$
5,222.7
|
|
$
6,087.9
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
4,992.3
|
|
$
4,974.9
|
|
$
14,593.3
|
|
$
14,643.9
|
Gross contract
costs1
|
(3,327.1)
|
|
(3,123.7)
|
|
(9,666.2)
|
|
(9,156.6)
|
Fee-based operating
expenses
|
$
1,665.2
|
|
$
1,851.2
|
|
$
4,927.1
|
|
$
5,487.3
|
Below are (i) a reconciliation of Net income 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 September
30,
|
|
Nine Months Ended September 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
$
59.7
|
|
$
140.2
|
|
$
53.0
|
|
$
479.7
|
Add:
|
|
|
|
|
|
|
|
Interest expense, net
of interest income
|
37.1
|
|
23.2
|
|
103.9
|
|
49.1
|
Income tax
provision
|
14.5
|
|
42.3
|
|
13.0
|
|
155.4
|
Depreciation and
amortization(a)
|
58.1
|
|
54.7
|
|
173.6
|
|
163.5
|
EBITDA
|
$
169.4
|
|
$
260.4
|
|
$
343.5
|
|
$
847.7
|
Adjustments:
|
|
|
|
|
|
|
|
Restructuring and
acquisition charges2
|
31.6
|
|
21.0
|
|
79.1
|
|
66.4
|
Net (gain) loss on
disposition
|
(1.3)
|
|
—
|
|
0.5
|
|
7.5
|
Net non-cash MSR and
mortgage banking derivative activity
|
7.1
|
|
(5.2)
|
|
9.5
|
|
(12.8)
|
Interest on employee
loans, net of forgiveness
|
(1.6)
|
|
—
|
|
(2.3)
|
|
—
|
Adjusted
EBITDA
|
$
205.2
|
|
$
276.2
|
|
$
430.3
|
|
$
908.8
|
|
Three Months Ended September
30,
|
|
Nine Months Ended September 30,
|
(In millions, except
share and per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
$
59.7
|
|
$
140.2
|
|
$
53.0
|
|
$
479.7
|
Diluted shares (in
thousands)
|
48,394
|
|
48,629
|
|
48,317
|
|
49,727
|
Diluted earnings per
share
|
$
1.23
|
|
$
2.88
|
|
$
1.10
|
|
$
9.65
|
|
|
|
|
|
|
|
|
Net income attributable
to common shareholders
|
$
59.7
|
|
$
140.2
|
|
$
53.0
|
|
$
479.7
|
Adjustments:
|
|
|
|
|
|
|
|
Restructuring and
acquisition charges2
|
31.6
|
|
21.0
|
|
79.1
|
|
66.4
|
Net non-cash MSR and
mortgage banking derivative activity
|
7.1
|
|
(5.2)
|
|
9.5
|
|
(12.8)
|
Amortization of
acquisition-related intangibles(a)
|
16.2
|
|
16.9
|
|
49.9
|
|
49.5
|
Net (gain) loss on
disposition
|
(1.3)
|
|
—
|
|
0.5
|
|
7.5
|
Interest on employee
loans, net of forgiveness
|
(1.6)
|
|
—
|
|
(2.3)
|
|
—
|
Tax impact of adjusted
items(b)
|
(14.2)
|
|
(7.6)
|
|
(36.7)
|
|
(25.8)
|
Adjusted net income
attributable to common shareholders
|
$
97.5
|
|
$
165.3
|
|
$
153.0
|
|
$
564.5
|
Diluted shares (in
thousands)
|
48,394
|
|
48,629
|
|
48,317
|
|
49,727
|
Adjusted diluted
earnings per share
|
$
2.01
|
|
$
3.40
|
|
$
3.17
|
|
$
11.35
|
(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 nine
months 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 and third 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.
|
Nine Months Ended September 30,
|
(in
millions)
|
2023
|
|
2022
|
|
|
|
|
Net cash used in
operating activities
|
$
(153.6)
|
|
$
(401.9)
|
|
|
|
|
Net capital additions -
property and equipment
|
(137.7)
|
|
(136.0)
|
|
|
|
|
Free Cash
Flow5
|
$
(291.3)
|
|
$
(537.9)
|
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 September
30,
|
|
Nine Months Ended September 30,
|
($ in
millions)
|
2023
|
|
% Change
|
|
2023
|
|
% Change
|
Revenue:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
5,111.4
|
|
(1) %
|
|
$
14,879.4
|
|
(2) %
|
Impact of change in
exchange rates
|
(39.6)
|
|
n/a
|
|
118.5
|
|
n/a
|
At comparative period
exchange rates
|
$
5,071.8
|
|
(2) %
|
|
$
14,997.9
|
|
(2) %
|
|
|
|
|
|
|
|
|
Fee revenue:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
1,791.4
|
|
(13) %
|
|
$
5,222.7
|
|
(14) %
|
Impact of change in
exchange rates
|
(18.4)
|
|
n/a
|
|
31.9
|
|
n/a
|
At comparative period
exchange rates
|
$
1,773.0
|
|
(13) %
|
|
$
5,254.6
|
|
(14) %
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
119.1
|
|
(41) %
|
|
$
286.1
|
|
(53) %
|
Impact of change in
exchange rates
|
5.0
|
|
n/a
|
|
1.6
|
|
n/a
|
At comparative period
exchange rates
|
$
124.1
|
|
(39) %
|
|
$
287.7
|
|
(53) %
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
|
|
|
|
|
|
|
|
At current period
exchange rates
|
$
205.2
|
|
(26) %
|
|
$
430.3
|
|
(53) %
|
Impact of change in
exchange rates
|
6.8
|
|
n/a
|
|
5.9
|
|
n/a
|
At comparative period
exchange rates
|
$
212.0
|
|
(23) %
|
|
$
436.2
|
|
(52) %
|
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 September
30,
|
|
Nine Months Ended September 30,
|
(in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Severance and other
employment-related charges
|
$
16.4
|
|
$
9.4
|
|
$
47.9
|
|
$
21.0
|
Restructuring,
pre-acquisition and post-acquisition charges
|
15.1
|
|
11.7
|
|
31.7
|
|
45.2
|
Fair value adjustments
that resulted in a net increase (decrease) to earn-out liabilities
from prior-period acquisition activity
|
0.1
|
|
(0.1)
|
|
(0.5)
|
|
0.2
|
Total Restructuring and
acquisition charges
|
$
31.6
|
|
$
21.0
|
|
$
79.1
|
|
$
66.4
|
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 September 30,
2023, LaSalle had
$77.7 billion of real estate assets
under management ("AUM"), composed of $35.4
billion invested in separate accounts, $39.2 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 $29.3
billion in North America,
$15.8 billion in the U.K.,
$14.5 billion in Asia Pacific and $7.4
billion in continental Europe. The remaining $7.6 billion relates to Global Partner Solutions
which is a global business line.
AUM decreased 1% in USD (with no change in local currency) from
$78.2 billion as of June 30, 2023. The AUM change resulted from (i)
$0.7 billion of foreign currency
decreases, (ii) $0.5 billion of net
valuation decreases and (iii) $0.4
billion of dispositions and withdrawals, 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 $0.2 billion in private equity capital for the
quarter ended September 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) Value and Risk
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 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
|
|
LaSalle
|
|
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
costs1
|
(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)
|
Net non-cash MSR and mortgage banking derivative
activity
|
—
|
—
|
—
|
|
—
|
|
7.1
|
—
|
—
|
|
7.1
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
7.1
|
Fee revenue
|
$
542.5
|
138.4
|
23.1
|
|
$
704.0
|
|
$
308.9
|
84.4
|
38.1
|
|
$
431.4
|
|
$
195.1
|
229.6
|
73.0
|
|
$
497.7
|
|
$
55.6
|
|
$
102.7
|
|
$
1,791.4
|
|
Three Months Ended
September 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
|
Value and Risk
Advisory
|
Loan
Servicing
|
|
Total Capital
Markets
|
|
Workplace
Mgmt
|
Project
Mgmt
|
Portfolio Services
and Other
|
|
Total Work
Dynamics
|
|
JLLT
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$ 703.3
|
377.8
|
30.4
|
|
$
1,111.5
|
|
$ 465.0
|
89.7
|
40.5
|
|
$ 595.2
|
|
$
2,429.1
|
748.3
|
112.4
|
|
$
3,289.8
|
|
$
56.5
|
|
$ 124.5
|
|
$
5,177.5
|
Gross contract
costs1
|
(6.9)
|
(254.9)
|
(1.8)
|
|
(263.6)
|
|
(7.7)
|
(3.2)
|
—
|
|
(10.9)
|
|
(2,245.5)
|
(538.3)
|
(53.1)
|
|
(2,836.9)
|
|
(3.8)
|
|
(8.5)
|
|
(3,123.7)
|
Net non-cash MSR and mortgage banking derivative
activity
|
—
|
—
|
—
|
|
—
|
|
(5.2)
|
—
|
—
|
|
(5.2)
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
(5.2)
|
Fee revenue
|
$ 696.4
|
122.9
|
28.6
|
|
$ 847.9
|
|
$ 452.1
|
86.5
|
40.5
|
|
$ 579.1
|
|
$ 183.6
|
210.0
|
59.3
|
|
$ 452.9
|
|
$
52.7
|
|
$ 116.0
|
|
$
2,048.6
|
Appendix: Revenue and Fee Revenue Segment Detail
(continued)
|
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
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
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
costs1
|
(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)
|
Net non-cash MSR and mortgage banking derivative
activity
|
—
|
—
|
—
|
|
—
|
|
9.5
|
—
|
—
|
|
9.5
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
9.5
|
Fee revenue
|
$
1,613.0
|
396.5
|
62.9
|
|
$
2,072.4
|
|
$
854.0
|
248.0
|
114.5
|
|
$
1,216.5
|
|
$
566.5
|
670.2
|
180.8
|
|
$
1,417.5
|
|
$
169.9
|
|
$
346.4
|
|
$
5,222.7
|
|
Nine Months Ended
September 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
|
Value and Risk
Advisory
|
Loan
Servicing
|
|
Total Capital
Markets
|
|
Workplace
Mgmt
|
Project
Mgmt
|
Portfolio Services
and Other
|
|
Total Work
Dynamics
|
|
JLLT
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
2,012.6
|
1,126.5
|
90.1
|
|
$
3,229.2
|
|
$
1,490.8
|
268.7
|
120.8
|
|
$
1,880.3
|
|
$
7,183.5
|
2,115.4
|
335.0
|
|
$
9,633.9
|
|
$ 156.6
|
|
$ 357.3
|
|
$ 15,257.3
|
Gross contract
costs1
|
(15.8)
|
(762.8)
|
(5.7)
|
|
(784.3)
|
|
(29.4)
|
(6.8)
|
—
|
|
(36.2)
|
|
(6,633.0)
|
(1,514.8)
|
(155.7)
|
|
(8,303.5)
|
|
(10.6)
|
|
(22.0)
|
|
(9,156.6)
|
Net non-cash MSR and mortgage banking derivative
activity
|
—
|
—
|
—
|
|
—
|
|
(12.8)
|
—
|
—
|
|
(12.8)
|
|
—
|
—
|
—
|
|
—
|
|
—
|
|
—
|
|
(12.8)
|
Fee revenue
|
$
1,996.8
|
363.7
|
84.4
|
|
$
2,444.9
|
|
$
1,448.6
|
261.9
|
120.8
|
|
$
1,831.3
|
|
$ 550.5
|
600.6
|
179.3
|
|
$
1,330.4
|
|
$ 146.0
|
|
$ 335.3
|
|
$
6,087.9
|
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SOURCE JLL-IR