Diluted earnings per share were $1.37, up from a loss of $0.19 last year; adjusted diluted earnings per
share1 were $1.78, up from
$0.71
CHICAGO, May 6, 2024
/PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL)
today reported operating performance for the first quarter of 2024.
Modestly higher Transactional revenues, following a softer 2023,
complemented continued Resilient business line revenue growth and
the benefits of cost mitigation actions taken over the last twelve
months to drive strong profit performance.
- First-quarter revenue was $5.1
billion, up 9% in local currency1
- Resilient6 revenues collectively increased 12% in
local currency and Transactional6 revenues collectively
increased 1% in local currency
- Work Dynamics achieved double-digit growth, highlighted by
continued momentum in Workplace Management from recent wins
- Property Management, within Markets Advisory, increased 8% with
contributions from most geographies
- Capital Markets delivered broad-based growth, up 6%, despite
first-quarter investment sales market volumes being at a 12-year
low
- Leasing, within Markets Advisory, increased 2% as performance
in the U.S. office sector outpaced declines in other regions
and sectors
- Bottom-line improvement reflected revenue growth and the
benefit of cost mitigation actions
"JLL's strong start to 2024 was driven by growth in both our
resilient and transactional business lines. In addition, the impact
of our cost actions over the last year allowed us to meaningfully
improve our profitability while still investing in our business to
take advantage of growth opportunities ahead," said Christian Ulbrich, JLL CEO. "With an uncertain
outlook, our clients are relying on JLL's advisory services, data
capabilities and real estate expertise more than ever. We continue
to execute on our strategy, focusing on helping our clients
navigate a difficult commercial real estate environment and
delivering value for our stakeholders."
Summary Financial
Results
($ in millions,
except per share data, "LC" = local currency)
|
Three Months Ended
March 31,
|
2024
|
|
2023
|
% Change
in USD
|
% Change
in LC
|
|
|
|
|
|
|
Revenue
|
$
5,124.5
|
|
$
4,715.5
|
9 %
|
9 %
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
66.1
|
|
$
(9.2)
|
818 %
|
883 %
|
Adjusted net income
attributable to common shareholders1
|
86.0
|
|
34.2
|
151
|
167
|
|
|
|
|
|
|
Diluted earnings (loss)
per share
|
$
1.37
|
|
$
(0.19)
|
821 %
|
871 %
|
Adjusted diluted
earnings per share1
|
1.78
|
|
0.71
|
151
|
168
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
$
187.1
|
|
$
112.9
|
66 %
|
70 %
|
|
|
|
|
|
|
Cash flows from
operating activities
|
$
(677.5)
|
|
$
(716.3)
|
5 %
|
n/a
|
Free Cash
Flow5
|
(720.7)
|
|
(765.6)
|
6
|
n/a
|
Note: For discussion
and reconciliation of non-GAAP financial measures, see the Notes
following the Financial Statements in this news release.
|
Consolidated First-Quarter 2024 Performance
Highlights:
Consolidated
($ in millions, "LC"
= local currency)
|
Three Months Ended
March 31,
|
|
% Change
in USD
|
|
% Change
in LC
|
2024
|
|
2023
|
|
|
Markets
Advisory
|
$
950.1
|
|
$
906.4
|
|
5 %
|
|
5 %
|
Capital
Markets
|
377.6
|
|
357.1
|
|
6
|
|
6
|
Work
Dynamics
|
3,639.5
|
|
3,276.2
|
|
11
|
|
11
|
JLL
Technologies
|
53.9
|
|
61.4
|
|
(12)
|
|
(12)
|
LaSalle
|
103.4
|
|
114.4
|
|
(10)
|
|
(8)
|
Total
revenue
|
$
5,124.5
|
|
$
4,715.5
|
|
9 %
|
|
9 %
|
Gross contract
costs5
|
$
3,498.7
|
|
$
3,133.3
|
|
12 %
|
|
12 %
|
Platform operating
expenses
|
1,509.9
|
|
1,528.7
|
|
(1)
|
|
(1)
|
Restructuring and
acquisition charges4
|
1.7
|
|
35.7
|
|
(95)
|
|
(96)
|
Total operating
expenses
|
$
5,010.3
|
|
$
4,697.7
|
|
7 %
|
|
7 %
|
Net non-cash MSR and
mortgage banking derivative activity1
|
$
(9.0)
|
|
$
(1.8)
|
|
(400) %
|
|
(405) %
|
Adjusted
EBITDA1
|
$
187.1
|
|
$
112.9
|
|
66 %
|
|
70 %
|
Note: For discussion
and reconciliation of non-GAAP financial measures, see the Notes
following the Financial Statements in this news release. Percentage
variances in the
Performance Highlights below are calculated and presented on a
local currency basis, unless otherwise noted.
|
Revenue
Revenue increased 9% compared with the prior-year quarter.
Businesses with Resilient revenues continued to deliver strong
revenue growth, collectively up 12%, highlighted by Workplace
Management, within Work Dynamics, up 15%, and Property Management,
within Markets Advisory, up 8%. Transactional-revenue businesses
were collectively up just over 1% as economic uncertainty and the
current interest rate environment continued to weigh on client
decision making. Transaction performance was led by Investment
Sales, Debt/Equity Advisory and Other, within Capital Markets,
which grew 8%.
Refer to segment performance highlights for additional
detail.
The following chart reflects changes in revenue ($ in millions),
and percentage changes, for the first quarter of 2024 compared with
2023.
Net income and Adjusted EBITDA
Net income attributable to common shareholders for the first
quarter was $66.1 million, compared
with a loss of $9.2 million in 2023,
and Adjusted EBITDA was $187.1
million, compared with $112.9
million last year.
Diluted earnings per share for the first quarter were
$1.37 compared with diluted loss per
share of $0.19 in the prior year.
Adjusted diluted earnings per share were $1.78 for the first quarter compared with
$0.71 in 2023. The effective tax
rates for the first quarters of 2024 and 2023 were 19.5% and 20.9%,
respectively. Refer to Note 4 in the footnotes following the
financial statements for detail on the lower restructuring and
acquisition charges.
The growth in consolidated profit was primarily attributable to
(i) higher revenues, particularly Resilient revenues as well as
certain Transactional revenue streams like investment sales within
Capital Markets, and (ii) the benefit of cost reduction actions
executed in the last twelve months coupled with continued cost
discipline.
The following chart reflects the aggregation of segment Adjusted
EBITDA for the first quarter of 2024 and 2023.
Cash Flows and Capital Allocation:
Net cash used in operating activities was $677.5 million for the first quarter of 2024,
compared with $716.3 million in the
prior-year quarter. Free Cash Flow5 was an outflow of
$720.7 million this quarter, compared
with an outflow of $765.6 million in
the prior year. The year-over-year improvement was primarily due to
an increase in cash provided by earnings driven by improved
business performance.
In the first quarter of 2024, the company repurchased 110,726
shares for $20.1 million. There were
no share repurchases in the first quarter of 2023. As of
March 31, 2024, $1,073.5 million remained authorized for
repurchase.
Net Debt, Leverage and Liquidity5:
|
March 31,
2024
|
|
December 31,
2023
|
|
March 31,
2023
|
|
|
|
|
|
|
Total Net Debt (in
millions)
|
$
1,900.8
|
|
1,150.3
|
|
2,099.3
|
|
|
|
|
|
|
Net Leverage
Ratio
|
1.9x
|
|
1.2x
|
|
2.0x
|
|
|
|
|
|
|
Corporate Liquidity (in
millions)
|
$
2,301.7
|
|
3,085.0
|
|
1,735.4
|
The increase in Net Debt from December
31, 2023, reflected typical seasonality and was primarily
attributable to annual incentive compensation payments made in the
first quarter. The Net Debt reduction from March 31, 2023, was largely attributable to
improved cash flows from operations over the trailing twelve months
ended March 31, 2024, compared with
the twelve-month period ended March 31,
2023.
Markets Advisory First-Quarter 2024 Performance
Highlights:
Markets
Advisory
($ in millions, "LC" = local
currency)
|
Three Months Ended
March 31,
|
|
% Change
in USD
|
|
% Change
in LC
|
2024
|
|
2023
|
|
|
Revenue
|
$
950.1
|
|
$
906.4
|
|
5 %
|
|
5 %
|
Leasing
|
497.3
|
|
487.0
|
|
2
|
|
2
|
Property
Management
|
429.7
|
|
400.2
|
|
7
|
|
8
|
Advisory, Consulting
and Other
|
23.1
|
|
19.2
|
|
20
|
|
20
|
Segment operating
expenses
|
$
871.7
|
|
$
850.8
|
|
2 %
|
|
3 %
|
Segment platform
operating expenses
|
566.8
|
|
571.7
|
|
(1)
|
|
(1)
|
Gross contract
costs5
|
304.9
|
|
279.1
|
|
9
|
|
10
|
Adjusted
EBITDA1
|
$
95.3
|
|
$
71.6
|
|
33 %
|
|
33 %
|
Note: For discussion
and reconciliation of non-GAAP financial measures, see the Notes
following the Financial Statements in this news release. Percentage
variances in the
Performance Highlights below are calculated and presented on a
local currency basis, unless otherwise noted.
|
Markets Advisory revenue growth was largely driven by Property
Management and a mid-single digit increase in U.S. Leasing revenue.
Higher Property Management revenue was primarily attributable to
portfolio expansions in the U.S., UK and Canada, including incremental revenue
associated with pass-through expenses. U.S. Leasing growth, which
follows a softer prior-year quarter, was led by the office sector,
which saw increased deal size and transaction volumes. The current
quarter growth in U.S. office was partially offset by industrial,
globally, where deal size decreased. Consistent with the trend from
recent quarters, economic uncertainty has delayed commercial real
estate decision making, particularly for large-scale leasing
actions where JLL has a greater presence.
The Adjusted EBITDA increase was predominantly driven by revenue
growth and the continued impact of cost management actions taken in
the last twelve months.
Capital Markets First-Quarter 2024 Performance
Highlights:
Capital
Markets
($ in millions, "LC" = local
currency)
|
Three Months Ended
March 31,
|
|
% Change
in USD
|
|
% Change
in LC
|
2024
|
|
2023
|
|
|
Revenue
|
$
377.6
|
|
$
357.1
|
|
6 %
|
|
6 %
|
Investment Sales,
Debt/Equity Advisory and Other
|
258.7
|
|
240.6
|
|
8
|
|
8
|
Value and Risk
Advisory
|
80.2
|
|
79.1
|
|
1
|
|
2
|
Loan
Servicing
|
38.7
|
|
37.4
|
|
3
|
|
3
|
Segment operating
expenses
|
$
378.4
|
|
$
365.2
|
|
4 %
|
|
4 %
|
Segment platform
operating expenses
|
364.8
|
|
355.9
|
|
3
|
|
3
|
Gross contract
costs5
|
13.6
|
|
9.3
|
|
46
|
|
50
|
Net non-cash MSR and
mortgage banking derivative activity1
|
$
(9.0)
|
|
$
(1.8)
|
|
(400) %
|
|
(405) %
|
Adjusted
EBITDA1
|
$
25.0
|
|
$
10.7
|
|
134 %
|
|
145 %
|
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.
|
Capital Markets revenue increased across all business lines
though market uncertainty persisted, especially around the future
of interest rates. Investment Sales and Debt/Equity Advisory
revenue increased compared to the prior-year quarter across most
asset classes, with strength in Japan and Germany, most notably office. Investment Sales
and Debt/Equity Advisory growth in the U.S. was low single digits
but outperformed the broader market for investment sales, which
declined 12% according to JLL Research.
The Adjusted EBITDA improvement was largely attributable to the
revenue growth described above and the benefit associated with cost
management actions taken over the trailing twelve months. These
drivers overcame $5.7 million of
headwind attributable to the year-over-year non-cash change in loan
loss credit reserves as the slight increase to the reserve this
quarter followed a decrease to the reserve last year.
Work Dynamics First-Quarter 2024 Performance
Highlights:
Work
Dynamics
($ in millions, "LC"
= local currency)
|
Three Months Ended
March 31,
|
|
% Change
in USD
|
|
% Change
in LC
|
2024
|
|
2023
|
|
|
Revenue
|
$
3,639.5
|
|
$
3,276.2
|
|
11 %
|
|
11 %
|
Workplace
Management
|
2,871.7
|
|
2,497.2
|
|
15
|
|
15
|
Project
Management
|
656.4
|
|
676.3
|
|
(3)
|
|
(3)
|
Portfolio Services
and Other
|
111.4
|
|
102.7
|
|
8
|
|
8
|
Segment operating
expenses
|
$
3,610.4
|
|
$
3,270.0
|
|
10 %
|
|
10 %
|
Segment platform
operating expenses
|
439.8
|
|
435.8
|
|
1
|
|
1
|
Gross contract
costs5
|
3,170.6
|
|
2,834.2
|
|
12
|
|
12
|
Adjusted
EBITDA1
|
$
50.9
|
|
$
25.7
|
|
98 %
|
|
102 %
|
Note: For discussion
and reconciliation of non-GAAP financial measures, see the Notes
following the Financial Statements in this news release. Percentage
variances in the
Performance Highlights below are calculated and presented on a
local currency basis, unless otherwise noted.
|
Work Dynamics revenue growth was led by continued strong
performance in Workplace Management, as 2023 contract wins and
mandate expansions in the Americas further ramped up this quarter.
This was partially offset by Project Management, where lower
pass-through costs drove the decrease in revenue while management
fees were flat. In addition, the quantum of new project contracts
reflected softer leasing activity in 2023.
The increase in Adjusted EBITDA was primarily attributable to
the (i) top-line performance described above, most notably from
Workplace Management, (ii) the absence of $9
million of Tetris contract losses recognized in 2023, and
(iii) continued cost discipline.
JLL Technologies First-Quarter 2024 Performance
Highlights:
JLL
Technologies
($ in millions, "LC"
= local currency)
|
Three Months Ended
March 31,
|
|
% Change
in USD
|
|
% Change
in LC
|
2024
|
|
2023
|
|
|
Revenue
|
$
53.9
|
|
$
61.4
|
|
(12) %
|
|
(12) %
|
Segment operating
expenses
|
$
63.5
|
|
$
83.5
|
|
(24) %
|
|
(24) %
|
Segment platform
operating expenses(a)
|
62.3
|
|
79.9
|
|
(22)
|
|
(22)
|
Gross contract
costs5
|
1.2
|
|
3.6
|
|
(67)
|
|
(68)
|
Adjusted
EBITDA1
|
$
(5.1)
|
|
$
(18.2)
|
|
72 %
|
|
73 %
|
Note: For discussion
and reconciliation of non-GAAP financial measures, see the Notes
following the Financial Statements in this news release. Percentage
variances in the
Performance Highlights below are calculated and presented on a
local currency basis, unless otherwise noted.
|
(a) Included in Segment
platform operating expenses is a reduction in carried interest
expense of $0.1 million for the first quarter of 2024 and carried
interest expense of $0.7 million for
the first quarter of 2023 related to Equity (losses) earnings of
the segment.
|
The decline in JLL Technologies revenue was partially due to
2023 cost-out activities in the business's go-to-market approach
aimed at improving profitability and resulted in lower contract
signings in the second half of 2023. In addition, the lower revenue
reflected delayed decisions on technology spend from existing
solutions clients, which included certain contract renewals.
The improvement in Adjusted EBITDA was driven by the reduction
of certain expenses associated with cost management actions and
improved operating efficiency over the trailing twelve months,
which outpaced the impact of lower revenue.
LaSalle First-Quarter 2024 Performance Highlights:
LaSalle
($ in millions, "LC" = local
currency)
|
Three Months Ended
March 31,
|
|
% Change
in USD
|
|
% Change
in LC
|
2024
|
|
2023
|
|
|
Revenue
|
$
103.4
|
|
$
114.4
|
|
(10) %
|
|
(8) %
|
Advisory
fees
|
92.3
|
|
100.5
|
|
(8)
|
|
(7)
|
Transaction fees and
other
|
8.9
|
|
10.4
|
|
(14)
|
|
(10)
|
Incentive
fees
|
2.2
|
|
3.5
|
|
(37)
|
|
(38)
|
Segment operating
expenses
|
$
84.6
|
|
$
92.5
|
|
(9) %
|
|
(9) %
|
Segment platform
operating expenses
|
76.2
|
|
85.4
|
|
(11)
|
|
(11)
|
Gross contract
costs5
|
8.4
|
|
7.1
|
|
18
|
|
19
|
Adjusted
EBITDA1
|
$
21.0
|
|
$
23.1
|
|
(9) %
|
|
(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.
|
LaSalle's decrease in revenue
was primarily due to lower advisory fees, attributable to (i)
valuation declines in assets under management ("AUM"), particularly
in North America and (ii) lower
fees in Europe as a result of
structural changes to a lower-margin business. Transaction fees and
incentive fees reflected the on-going global trend of dampened
investment sales transaction volumes.
The slight decline in Adjusted EBITDA reflected lower revenues
which were nearly offset by the benefit of cost management actions
over the last twelve months and lower variable compensation
accruals.
As of March 31, 2024, LaSalle had $89.7 billion of AUM. Compared with AUM of
$93.5 billion as of March 31, 2023, the AUM as of March 31,
2024, decreased 4% in USD (3% in local currency). The net decrease
in AUM over the trailing twelve months resulted from (i)
$4.4 billion of dispositions and
withdrawals, (ii) $3.4 billion
of net valuation decreases, (iii) $0.7 billion of foreign currency decreases,
partially offset by (iv) $4.2 billion of acquisitions and (v)
$0.5 billion increase in
uncalled committed capital and cash.
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 $20.8 billion and
operations in over 80 countries around the world, our more than
108,000 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 Monday, May 6, 2024, at 9:00 a.m. Eastern.
Following the live
broadcast, an audio replay will be available.
The link to the live
webcast and audio replay can be accessed at the Investor
Relations website: ir.jll.com.
|
|
The conference call can
be accessed live over the phone by
dialing (888) 660-6392; the conference ID number is 5398158.
Listeners are asked to please dial in 10 minutes prior to the
call
start time and provide the conference ID number to be
connected.
|
|
|
|
|
Supplemental
Information
|
|
Contact
|
Supplemental
information regarding the first quarter 2024 earnings call has
been
posted to the Investor Relations section of JLL's website:
ir.jll.com.
|
|
If you have any
questions, please contact 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, 2023, soon to be filed Quarterly
Report on Form 10-Q for the quarter ended March 31, 2024 and other reports filed with the
Securities and Exchange Commission. Any forward-looking statements
speak only as of the date of this release, and except to the extent
required by applicable securities laws, JLL expressly disclaims any
obligation or undertaking to publicly update or revise any
forward-looking statements contained herein to reflect any change
in expectations or results, or any change in events.
JONES LANG LASALLE
INCORPORATED
|
Consolidated
Statements of Operations (Unaudited)
|
|
|
Three Months Ended
March 31,
|
(in millions, except
share and per share data)
|
2024
|
|
2023
|
|
|
|
|
Revenue
|
$
5,124.5
|
|
$
4,715.5
|
|
|
|
|
Operating
expenses:
|
|
|
|
Compensation and
benefits
|
$
2,415.6
|
|
$
2,253.0
|
Operating,
administrative and other
|
2,532.0
|
|
2,351.5
|
Depreciation and
amortization
|
61.0
|
|
57.5
|
Restructuring and
acquisition charges4
|
1.7
|
|
35.7
|
Total operating
expenses
|
$
5,010.3
|
|
$
4,697.7
|
|
|
|
|
Operating
income
|
$
114.2
|
|
$
17.8
|
|
|
|
|
Interest expense, net
of interest income
|
30.5
|
|
26.3
|
Equity
losses
|
(3.7)
|
|
(2.6)
|
Other income
|
1.5
|
|
0.1
|
|
|
|
|
Income (loss) before
income taxes and noncontrolling interest
|
81.5
|
|
(11.0)
|
Income tax provision
(benefit)
|
15.9
|
|
(2.3)
|
Net income
(loss)
|
65.6
|
|
(8.7)
|
|
|
|
|
Net (loss) income
attributable to noncontrolling interest
|
(0.5)
|
|
0.5
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
66.1
|
|
$
(9.2)
|
|
|
|
|
Basic earnings (loss)
per common share
|
$
1.39
|
|
$
(0.19)
|
Basic weighted average
shares outstanding (in 000's)
|
47,485
|
|
47,555
|
|
|
|
|
Diluted earnings (loss)
per common share
|
$
1.37
|
|
$
(0.19)
|
Diluted weighted
average shares outstanding (in 000's)
|
48,280
|
|
47,555
|
|
|
|
|
Please reference
accompanying financial statement notes.
|
JONES LANG LASALLE
INCORPORATED
|
Selected Segment
Financial Data (Unaudited)
|
|
Three Months Ended
March 31,
|
(in
millions)
|
2024
|
|
2023
|
MARKETS
ADVISORY
|
|
|
|
Revenue
|
$
950.1
|
|
$
906.4
|
|
|
|
|
Platform compensation
and benefits
|
$
462.5
|
|
$
461.0
|
Platform operating,
administrative and other
|
86.9
|
|
93.6
|
Depreciation and
amortization
|
17.4
|
|
17.1
|
Segment platform
operating expenses
|
566.8
|
|
571.7
|
Gross contract
costs5
|
304.9
|
|
279.1
|
Segment operating
expenses
|
$
871.7
|
|
$
850.8
|
Segment operating
income
|
$
78.4
|
|
$
55.6
|
Add:
|
|
|
|
Equity
earnings
|
0.4
|
|
0.3
|
Depreciation and
amortization(a)
|
16.4
|
|
16.1
|
Other
income
|
0.9
|
|
0.3
|
Net income
attributable to noncontrolling interest
|
(0.1)
|
|
(0.2)
|
Adjustments:
|
|
|
|
Interest on employee
loans, net of forgiveness
|
(0.7)
|
|
(0.5)
|
Adjusted
EBITDA1
|
$
95.3
|
|
$
71.6
|
|
|
|
|
(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
March 31,
|
(in
millions)
|
2024
|
|
2023
|
CAPITAL
MARKETS
|
|
|
|
Revenue
|
$
377.6
|
|
$
357.1
|
|
|
|
|
Platform compensation
and benefits
|
$
287.6
|
|
$
283.9
|
Platform operating,
administrative and other
|
60.8
|
|
56.1
|
Depreciation and
amortization
|
16.4
|
|
15.9
|
Segment platform
operating expenses
|
364.8
|
|
355.9
|
Gross contract
costs5
|
13.6
|
|
9.3
|
Segment operating
expenses
|
$
378.4
|
|
$
365.2
|
Segment operating
loss
|
$
(0.8)
|
|
$
(8.1)
|
Add:
|
|
|
|
Equity
earnings
|
0.1
|
|
0.6
|
Depreciation and
amortization
|
16.4
|
|
15.9
|
Other income
(expense)
|
0.6
|
|
(0.2)
|
Adjustments:
|
|
|
|
Net non-cash MSR and
mortgage banking derivative activity
|
9.0
|
|
1.8
|
Interest on employee
loans, net of forgiveness
|
(0.3)
|
|
0.7
|
Adjusted
EBITDA1
|
$
25.0
|
|
$
10.7
|
JONES LANG LASALLE
INCORPORATED
|
Selected Segment
Financial Data (Unaudited) Continued
|
|
Three Months Ended
March 31,
|
(in
millions)
|
2024
|
|
2023
|
WORK
DYNAMICS
|
|
|
|
Revenue
|
$
3,639.5
|
|
$
3,276.2
|
|
|
|
|
Platform compensation
and benefits
|
$
319.8
|
|
$
305.0
|
Platform operating,
administrative and other
|
99.3
|
|
111.5
|
Depreciation and
amortization
|
20.7
|
|
19.3
|
Segment platform
operating expenses
|
439.8
|
|
435.8
|
Gross contract
costs5
|
3,170.6
|
|
2,834.2
|
Segment operating
expenses
|
$
3,610.4
|
|
$
3,270.0
|
Segment operating
income
|
$
29.1
|
|
$
6.2
|
Add:
|
|
|
|
Equity
earnings
|
0.7
|
|
0.4
|
Depreciation and
amortization
|
20.7
|
|
19.3
|
Net loss (income)
attributable to noncontrolling interest
|
0.4
|
|
(0.2)
|
Adjusted
EBITDA1
|
$
50.9
|
|
$
25.7
|
|
|
|
|
JONES LANG LASALLE
INCORPORATED
|
|
Selected Segment
Financial Data (Unaudited) Continued
|
|
|
Three Months Ended
March 31,
|
|
(in
millions)
|
2024
|
|
2023
|
|
JLL
TECHNOLOGIES
|
|
|
|
|
Revenue
|
$
53.9
|
|
$
61.4
|
|
|
|
|
|
|
Platform compensation
and benefits(a)
|
$
47.3
|
|
$
61.3
|
|
Platform operating,
administrative and other
|
10.5
|
|
14.7
|
|
Depreciation and
amortization
|
4.5
|
|
3.9
|
|
Segment platform
operating expenses
|
62.3
|
|
79.9
|
|
Gross contract
costs5
|
1.2
|
|
3.6
|
|
Segment operating
expenses
|
$
63.5
|
|
$
83.5
|
|
Segment operating
loss
|
$
(9.6)
|
|
$
(22.1)
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
4.5
|
|
3.9
|
|
Adjusted
EBITDA1
|
$
(5.1)
|
|
$
(18.2)
|
|
Equity (losses)
earnings
|
$
(1.0)
|
|
$
4.9
|
|
(a) Included in
Platform compensation and benefits is a reduction in carried
interest expense of $0.1 million for the first quarter of 2024 and
$0.7 million of carried
interest expense for the first quarter of 2023 related to Equity
(losses) earnings of the segment.
|
|
|
|
Three Months Ended
March 31,
|
|
(in
millions)
|
2024
|
|
2023
|
|
LASALLE
|
|
|
|
|
Revenue
|
$
103.4
|
|
$
114.4
|
|
|
|
|
|
|
Platform compensation
and benefits
|
$
61.3
|
|
$
68.9
|
|
Platform operating,
administrative and other
|
12.9
|
|
15.2
|
|
Depreciation and
amortization
|
2.0
|
|
1.3
|
|
Segment platform
operating expenses
|
76.2
|
|
85.4
|
|
Gross contract
costs5
|
8.4
|
|
7.1
|
|
Segment operating
expenses
|
$
84.6
|
|
$
92.5
|
|
Segment operating
income
|
$
18.8
|
|
$
21.9
|
|
Add:
|
|
|
|
|
Depreciation and
amortization
|
2.0
|
|
1.3
|
|
Net loss (income)
attributable to noncontrolling interest
|
0.2
|
|
(0.1)
|
|
Adjusted
EBITDA1
|
$
21.0
|
|
$
23.1
|
|
Equity
losses
|
$
(3.9)
|
|
$
(8.8)
|
|
JONES LANG LASALLE
INCORPORATED
|
Consolidated
Statement of Cash Flows (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
Three Months Ended
March 31,
|
(in
millions)
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
Cash flows from
operating activities7:
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Net income
(loss)
|
$
65.6
|
|
$
(8.7)
|
|
Net capital additions
– property and equipment
|
$ (43.2)
|
|
$ (49.3)
|
Reconciliation of net
income to net cash used in operating activities:
|
|
|
|
|
Capital contributions
to investments
|
(17.4)
|
|
(32.8)
|
Depreciation and
amortization
|
61.0
|
|
57.5
|
|
Distributions of
capital from investments
|
5.7
|
|
9.2
|
Equity
losses
|
3.7
|
|
2.6
|
|
Other, net
|
0.6
|
|
(1.1)
|
Distributions of
earnings from investments
|
3.2
|
|
3.8
|
|
Net cash used in
investing activities
|
(54.3)
|
|
(74.0)
|
Provision for loss on
receivables and other assets
|
9.9
|
|
7.1
|
|
Cash flows from
financing activities:
|
|
|
|
Amortization of
stock-based compensation
|
11.2
|
|
16.7
|
|
Proceeds from
borrowings under credit facility
|
2,760.0
|
|
2,668.0
|
Net non-cash mortgage
servicing rights and mortgage banking derivative
activity
|
9.0
|
|
1.8
|
|
Repayments of
borrowings under credit facility
|
(1,990.0)
|
|
(1,793.0)
|
Accretion of interest
and amortization of debt issuance costs
|
1.4
|
|
1.0
|
|
Net repayments of
short-term borrowings
|
(18.7)
|
|
(62.3)
|
Other, net
|
(8.6)
|
|
0.9
|
|
Payments of deferred
business acquisition obligations and earn-outs
|
(3.1)
|
|
(13.6)
|
Change in:
|
|
|
|
|
Repurchase of common
stock
|
(20.0)
|
|
—
|
Receivables
|
156.2
|
|
160.6
|
|
Noncontrolling
interest distributions, net
|
(1.5)
|
|
—
|
Reimbursable
receivables and reimbursable payables
|
(193.4)
|
|
(181.6)
|
|
Other, net
|
(23.3)
|
|
(23.8)
|
Prepaid expenses and
other assets
|
(18.7)
|
|
(26.5)
|
|
Net cash provided by
financing activities
|
703.4
|
|
775.3
|
Income taxes
receivable, payable and deferred
|
(24.4)
|
|
(43.7)
|
|
Effect of currency
exchange rate changes on cash, cash equivalents and restricted
cash
|
(9.7)
|
|
4.5
|
Accounts payable,
accrued liabilities and other liabilities
|
(154.5)
|
|
(56.0)
|
|
Net change in cash,
cash equivalents and restricted cash
|
$ (38.1)
|
|
$ (10.5)
|
Accrued compensation
(including net deferred compensation)
|
(599.1)
|
|
(651.8)
|
|
Cash, cash equivalents
and restricted cash, beginning of the period
|
663.4
|
|
746.0
|
Net cash used in
operating activities
|
$
(677.5)
|
|
$
(716.3)
|
|
Cash, cash
equivalents and restricted cash, end of the period
|
$ 625.3
|
|
$ 735.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please reference
accompanying financial statement notes.
|
JONES LANG LASALLE
INCORPORATED
|
Consolidated Balance
Sheets
|
|
|
March
31,
|
|
December 31,
|
|
|
March
31,
|
|
December 31,
|
(in millions, except
share and per share data)
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
ASSETS
|
(Unaudited)
|
|
|
|
LIABILITIES AND
EQUITY
|
(Unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Cash and cash
equivalents
|
$
396.7
|
|
$
410.0
|
|
|
Accounts payable and
accrued liabilities
|
$
1,232.8
|
|
$
1,406.7
|
|
Trade receivables, net
of allowance
|
1,915.2
|
|
2,095.8
|
|
|
Reimbursable
payables
|
1,612.0
|
|
1,796.9
|
|
Notes and other
receivables
|
441.2
|
|
446.4
|
|
|
Accrued compensation
and benefits
|
1,092.9
|
|
1,698.3
|
|
Reimbursable
receivables
|
2,326.8
|
|
2,321.7
|
|
|
Short-term
borrowings
|
124.6
|
|
147.9
|
|
Warehouse
receivables
|
322.4
|
|
677.4
|
|
|
Short-term contract
liability and deferred income
|
219.0
|
|
226.4
|
|
Short-term contract
assets, net of allowance
|
322.2
|
|
338.3
|
|
|
Warehouse
facilities
|
322.2
|
|
662.7
|
|
Prepaid and
other
|
590.6
|
|
567.4
|
|
|
Short-term operating
lease liability
|
158.1
|
|
161.9
|
|
|
Total current
assets
|
6,315.1
|
|
6,857.0
|
|
|
Other
|
337.5
|
|
345.3
|
Property and equipment,
net of accumulated depreciation
|
600.1
|
|
613.9
|
|
|
|
Total current
liabilities
|
5,099.1
|
|
6,446.1
|
Operating lease
right-of-use asset
|
744.0
|
|
730.9
|
|
Noncurrent
liabilities:
|
|
|
|
Goodwill
|
4,569.1
|
|
4,587.4
|
|
|
Credit facility, net of
debt issuance costs
|
1,381.4
|
|
610.6
|
Identified intangibles,
net of accumulated amortization
|
762.6
|
|
785.0
|
|
|
Long-term debt, net of
debt issuance costs
|
770.2
|
|
779.3
|
Investments
|
816.2
|
|
816.6
|
|
|
Long-term deferred tax
liabilities, net
|
45.3
|
|
44.8
|
Long-term
receivables
|
353.3
|
|
363.8
|
|
|
Deferred
compensation
|
594.2
|
|
580.0
|
Deferred tax assets,
net
|
490.2
|
|
497.4
|
|
|
Long-term operating
lease liability
|
758.9
|
|
754.5
|
Deferred compensation
plans
|
627.1
|
|
604.3
|
|
|
Other
|
425.7
|
|
439.6
|
Other
|
204.7
|
|
208.5
|
|
|
|
Total
liabilities
|
$
9,074.8
|
|
$
9,654.9
|
|
|
Total assets
|
$
15,482.4
|
|
$
16,064.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company shareholders'
equity
|
|
|
|
|
|
|
Common stock
|
0.5
|
|
0.5
|
|
|
|
Additional paid-in
capital
|
1,975.8
|
|
2,019.7
|
|
|
|
Retained
earnings
|
5,857.6
|
|
5,795.6
|
|
|
|
Treasury
stock
|
(901.2)
|
|
(920.1)
|
|
|
|
Shares held in
trust
|
(10.3)
|
|
(10.4)
|
|
|
|
Accumulated other
comprehensive loss
|
(628.9)
|
|
(591.5)
|
|
|
|
|
Total company
shareholders' equity
|
6,293.5
|
|
6,293.8
|
|
|
|
Noncontrolling
interest
|
114.1
|
|
116.1
|
|
|
|
|
Total equity
|
6,407.6
|
|
6,409.9
|
|
|
|
|
Total liabilities and
equity
|
$
15,482.4
|
|
$
16,064.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Please reference
accompanying financial statement notes.
|
JONES LANG LASALLE INCORPORATED
Financial
Statement Notes
1. Management uses certain non-GAAP financial measures to
develop budgets and forecasts, measure and reward performance
against those budgets and forecasts, and enhance comparability to
prior periods. These measures are believed to be useful to
investors and other external stakeholders as supplemental measures
of core operating performance and include the following:
(i) Adjusted EBITDA attributable to common shareholders
("Adjusted EBITDA"),
(ii) Adjusted net income (loss) attributable to common
shareholders and Adjusted diluted earnings (loss) per share,
(iii) Free Cash Flow, and
(iv) Percentage changes against prior periods, presented
on a local currency basis.
However, non-GAAP financial measures should not be considered
alternatives to measures determined in accordance with 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.
Effective January 1, 2024, the
definitions of Adjusted EBITDA and Adjusted net income attributable
to common shareholders were updated to exclude certain equity
earnings/losses as further described below. Comparable periods have
been recast to conform to the revised presentation.
Also effective with first-quarter 2024 reporting, the company no
longer reports the non-GAAP measures "Fee revenue" and "Fee-based
operating expenses" following the conclusion of a comment letter
from the Securities and Exchange Commission Staff in February 2024.
Adjustments to GAAP Financial Measures Used to Calculate
non-GAAP Financial Measures
Net Non-Cash Mortgage Servicing Rights ("MSR") and
Mortgage Banking Derivative Activity consists of the
balances presented within Revenue composed of (i) derivative
gains/losses resulting from mortgage banking loan commitment and
warehousing activity and (ii) gains recognized from the retention
of MSR upon origination and sale of mortgage loans, offset by (iii)
amortization of MSR intangible assets over the period that net
servicing income is projected to be received. Non-cash derivative
gains/losses resulting from mortgage banking loan commitment and
warehousing activity are calculated as the estimated fair value of
loan commitments and subsequent changes thereof, primarily
represented by the estimated net cash flows associated with future
servicing rights. MSR gains and corresponding MSR intangible assets
are calculated as the present value of estimated cash flows over
the estimated mortgage servicing periods. The above activity is
reported entirely within Revenue of the Capital Markets segment.
Excluding net non-cash MSR and mortgage banking derivative activity
reflects how the company manages and evaluates performance because
the excluded activity is non-cash in nature.
Restructuring and Acquisition
Charges primarily consist of: (i) severance and
employment-related charges, including those related to external
service providers, incurred in conjunction with a structural
business shift, which can be represented by a notable change in
headcount, change in leadership or transformation of business
processes; (ii) acquisition, transaction and integration-related
charges, including fair value adjustments, which are generally
non-cash in the periods such adjustments are made, to assets and
liabilities recorded in purchase accounting such as earn-out
liabilities and intangible assets; and (iii) lease exit charges.
Such activity is excluded as the amounts are generally either
non-cash in nature or the anticipated benefits from the
expenditures would not likely be fully realized until future
periods. Restructuring and acquisition charges are excluded from
segment operating results and therefore are not line items in the
segments' reconciliation to Adjusted EBITDA.
Amortization of Acquisition-Related Intangibles,
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.
Interest on Employee Loans, Net of Forgiveness
reflects interest accrued on employee loans less the amount of
accrued interest forgiven. Certain employees (predominantly in our
Leasing and Capital Markets businesses) receive cash payments
structured as loans, with interest. Employees earn forgiveness of
the loan based on performance, generally calculated as a percentage
of revenue production. Such forgiven amounts are reflected in
Compensation and benefits expense. Given the interest accrued on
these employee loans and subsequent forgiveness are non-cash and
the amounts perfectly offset over the life of the loan, the
activity is not indicative of core operating performance and is
excluded from non-GAAP measures.
Equity Earnings/Losses (JLL Technologies and LaSalle) primarily reflects
valuation changes on investments reported at fair value.
Investments reported at fair value are increased or decreased each
reporting period by the change in the fair value of the investment.
Where the measurement alternative has been elected, our investment
is increased or decreased upon observable price changes. Such
activity is excluded as the amounts are generally non–cash in
nature and not indicative of core operating performance.
Reconciliation of Non-GAAP Financial Measures
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
March 31,
|
(in
millions)
|
2024
|
|
2023
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
66.1
|
|
$
(9.2)
|
Add:
|
|
|
|
Interest expense, net
of interest income
|
30.5
|
|
26.3
|
Income tax provision
(benefit)
|
15.9
|
|
(2.3)
|
Depreciation and
amortization(a)
|
60.0
|
|
56.5
|
EBITDA
|
$
172.5
|
|
$
71.3
|
Adjustments:
|
|
|
|
Restructuring and
acquisition charges4
|
1.7
|
|
35.7
|
Net non-cash MSR and
mortgage banking derivative activity
|
9.0
|
|
1.8
|
Interest on employee
loans, net of forgiveness
|
(1.0)
|
|
0.2
|
Equity losses - JLL
Technologies and LaSalle
|
4.9
|
|
3.9
|
Adjusted
EBITDA
|
$
187.1
|
|
$
112.9
|
|
Three Months Ended
March 31,
|
(In millions, except
share and per share data)
|
2024
|
|
2023
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
66.1
|
|
$
(9.2)
|
Diluted shares (in
thousands)(b)
|
48,280
|
|
47,555
|
Diluted earnings (loss)
per share
|
$
1.37
|
|
$
(0.19)
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
$
66.1
|
|
$
(9.2)
|
Adjustments:
|
|
|
|
Restructuring and
acquisition charges4
|
1.7
|
|
35.7
|
Net non-cash MSR and
mortgage banking derivative activity
|
9.0
|
|
1.8
|
Amortization of
acquisition-related intangibles(a)
|
15.2
|
|
16.5
|
Interest on employee
loans, net of forgiveness
|
(1.0)
|
|
0.2
|
Equity losses - JLL
Technologies and LaSalle
|
4.9
|
|
3.9
|
Tax impact of adjusted
items(c)
|
(9.9)
|
|
(14.7)
|
Adjusted net income
attributable to common shareholders
|
$
86.0
|
|
$
34.2
|
Diluted shares (in
thousands)
|
48,280
|
|
48,360
|
Adjusted diluted
earnings per share
|
$
1.78
|
|
$
0.71
|
(a) This adjustment
excludes the noncontrolling interest portion of amortization of
acquisition-related intangibles which is not attributable to common
shareholders.
|
(b) For the three
months ended March 31, 2023, basic shares outstanding were used in
the calculation of dilutive loss per share as the impact of
unvested stock-based compensation awards would be
anti-dilutive.
|
(c) For the first
quarter of 2024 and 2023, the tax impact of adjusted items was
calculated using the applicable statutory rates by tax
jurisdiction.
|
Below is a reconciliation of net cash used in operating
activities to Free Cash Flow5.
|
Three Months Ended
March 31,
|
(in
millions)
|
2024
|
|
2023
|
|
|
|
|
Net cash used in
operating activities
|
$
(677.5)
|
|
$
(716.3)
|
|
|
|
|
Net capital additions -
property and equipment
|
(43.2)
|
|
(49.3)
|
|
|
|
|
Free Cash
Flow5
|
$
(720.7)
|
|
$
(765.6)
|
Operating Results - Local Currency
In discussing operating results, the company refers to
percentage changes in local currency, unless otherwise noted.
Amounts presented on a local currency basis are calculated by
translating the current period results of foreign operations to
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) Operating
income and (iii) Adjusted EBITDA.
|
Three Months Ended
March 31,
|
($ in
millions)
|
2024
|
|
%
Change
|
Revenue:
|
|
|
|
At current period
exchange rates
|
$
5,124.5
|
|
9 %
|
Impact of change in
exchange rates
|
5.6
|
|
n/a
|
At comparative period
exchange rates
|
$
5,130.1
|
|
9 %
|
|
|
|
|
Operating
income:
|
|
|
|
At current period
exchange rates
|
$
114.2
|
|
542 %
|
Impact of change in
exchange rates
|
5.3
|
|
n/a
|
At comparative period
exchange rates
|
$
119.5
|
|
569 %
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
At current period
exchange rates
|
$
187.1
|
|
66 %
|
Impact of change in
exchange rates
|
5.3
|
|
n/a
|
At comparative period
exchange rates
|
$
192.4
|
|
70 %
|
2. n.m.: "not meaningful", represented by a percentage
change of greater than 1,000%, favorable or unfavorable.
3. As of March 31, 2024,
LaSalle had $89.7 billion of real estate assets under
management ("AUM"), composed of $46.2
billion invested in fund management vehicles, $40.2 billion invested in separate accounts and
$3.3 billion invested in public
securities. The geographic distribution was $29.4 billion in North
America, $24.6 billion in
Europe and $20.4 billion in Asia
Pacific. The remaining $15.3
billion relates to Global Solutions which is a global
business line.
Compared with AUM of $89.0
billion as of December 31,
2023, the AUM as of March 31, 2024, increased 1% in USD
(decreased 1% in local currency). The net increase in AUM during
the quarter resulted from (i) $1.8
billion of foreign currency increases, (ii) $1.5 billion of acquisitions, (iii) $0.4 billion increase in uncalled committed
capital and cash, partially offset by (iv) $2.0 billion of dispositions and withdrawals and
(v) $1.0 billion of net valuation
decreases.
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
March 31, 2024.
4. Restructuring and acquisition charges are excluded from
the company's measure of segment operating results, although they
are included within consolidated Operating income calculated in
accordance with GAAP. For purposes of segment operating results,
the allocation of Restructuring and acquisition charges to the
segments is not a component of management's assessment of segment
performance. The table below shows Restructuring and acquisition
charges.
|
Three Months Ended
March 31,
|
(in
millions)
|
2024
|
|
2023
|
Severance and other
employment-related charges
|
$
4.5
|
|
$
25.7
|
Restructuring,
pre-acquisition and post-acquisition charges
|
7.7
|
|
10.0
|
Fair value adjustments
that resulted in a net decrease to earn-out liabilities from
prior-
period acquisition activity
|
(10.5)
|
|
—
|
Total Restructuring and
acquisition charges
|
$
1.7
|
|
$
35.7
|
5. "Gross contract costs" represent certain costs
associated with client-dedicated employees and third-party vendors
and subcontractors and are directly or indirectly reimbursed
through the fees we receive. These costs are presented on a gross
basis in Operating expenses (with the corresponding fees in
Revenue).
"Net Debt" is defined as the sum of the (i) Credit facility,
(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.
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.
7. Within the Consolidated Statements of Cash Flows, the
company made certain presentation changes and recast prior-period
information to conform with the current presentation. More
specifically, the company recast certain components and captions
within Cash flows from operating activities, which had no impact on
previously-reported Net cash provided by operating activities or on
the other consolidated financial statements.
Appendix: Additional Segment Detail
|
Three Months Ended
March 31, 2024
|
(in
millions)
|
Markets
Advisory
|
|
Capital
Markets
|
|
Work
Dynamics
|
|
|
|
|
|
|
|
Leasing
|
Property
Mgmt
|
Advisory,
Consulting
and Other
|
|
Total
Markets
Advisory
|
|
Invt Sales,
Debt/Equity
Advisory
and Other
|
Value and
Risk
Advisory
|
Loan
Servicing
|
|
Total
Capital
Markets
|
|
Workplace
Mgmt
|
Project
Mgmt
|
Portfolio
Services
and Other
|
|
Total Work
Dynamics
|
|
JLLT
|
|
LaSalle
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue(a)
|
$ 497.3
|
429.7
|
23.1
|
|
$
950.1
|
|
$ 258.7
|
80.2
|
38.7
|
|
$
377.6
|
|
$
2,871.7
|
656.4
|
111.4
|
|
$
3,639.5
|
|
$
53.9
|
|
$
103.4
|
|
$
5,124.5
|
Gross contract
costs5
|
$
4.2
|
298.5
|
2.2
|
|
$
304.9
|
|
$ 11.1
|
2.5
|
—
|
|
$
13.6
|
|
$
2,663.1
|
445.9
|
61.6
|
|
$
3,170.6
|
|
$ 1.2
|
|
$ 8.4
|
|
$
3,498.7
|
Platform
operating
expenses
|
|
|
|
|
$
566.8
|
|
|
|
|
|
$
364.8
|
|
|
|
|
|
$
439.8
|
|
$
62.3
|
|
$
76.2
|
|
$
1,509.9
|
Adjusted
EBITDA1
|
|
|
|
|
$
95.3
|
|
|
|
|
|
$
25.0
|
|
|
|
|
|
$ 50.9
|
|
$
(5.1)
|
|
$
21.0
|
|
$
187.1
|
(a) Included as a
reduction to Revenue is Net non-cash MSR and mortgage banking
derivative activity of $9.0 million for the three months ended
March 31, 2024 within Investment Sales, Debt/Equity Advisory and
Other.
|
|
Three Months Ended
March 31, 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(a)
|
$ 487.0
|
400.2
|
19.2
|
|
$
906.4
|
|
$ 240.6
|
79.1
|
37.4
|
|
$
357.1
|
|
$
2,497.2
|
676.3
|
102.7
|
|
$ 3,276.2
|
|
$
61.4
|
|
$
114.4
|
|
$ 4,715.5
|
Gross contract
costs5
|
$
4.5
|
273.1
|
1.5
|
|
$
279.1
|
|
$
7.2
|
2.1
|
—
|
|
$ 9.3
|
|
$
2,314.0
|
465.4
|
54.8
|
|
$ 2,834.2
|
|
$ 3.6
|
|
$ 7.1
|
|
$ 3,133.3
|
Platform
operating
expenses
|
|
|
|
|
$
571.7
|
|
|
|
|
|
$
355.9
|
|
|
|
|
|
$
435.8
|
|
$
79.9
|
|
$
85.4
|
|
$ 1,528.7
|
Adjusted
EBITDA1
|
|
|
|
|
$
71.6
|
|
|
|
|
|
$
10.7
|
|
|
|
|
|
$ 25.7
|
|
$
(18.2)
|
|
$
23.1
|
|
$
112.9
|
(a) Included as a
reduction to Revenue is Net non-cash MSR and mortgage banking
derivative activity of $1.8 million for the three months ended
March 31, 2023 within Investment Sales, Debt/Equity Advisory and
Other.
|
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SOURCE JLL-IR