Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q2 2024 Earnings Presentation
28 slides from Jones Lang Lasalle's earnings presentation, Aug 6, 2024
Slide 1: Earnings Presentation Second Quarter 2024
Earnings Presentation Second Quarter 2024 14.88 August 6th, 2024
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements Statements in this presentation regarding, among other things, future financial results and performance, achievements, plans, objectives and share repurchases may be considered forward-looking statements within the meaning of the Private Securitie
Slide 3: Second quarter 2024 industry highlights
Second quarter 2024 industry highlights
Slide 4: Capital markets industry highlights
Capital markets industry highlights Benchmark yields, 2006 – June 2024 Real estate investment volumes by region, 2007 – Q2 2024 YTD Direct investment volumes (US$ billion) 7% 1M SOFR* 10-year Treasury 1,400 Euro Area 10-year Government Bond Yields Asia 10-year Government Bond Yields Asia Pacific EME
Slide 5: Capital markets industry trends
Capital markets industry trends Quarterly investment volumes by sector, Q2 2022 – Q2 2024 Dry powder in closed-end funds, 2007 – H1 2024 $125 $474 Residential $500 Industrial $409 $403 $100 $391 $393 Office $400 $350 Retail US$ Billions US$ Billions $75 Hotels $300 $50 $200 $163 $100 $25 $0 $0 Q2 20
Slide 6: Office leasing industry highlights
Office leasing industry highlights Global office leasing volumes by region, 2007 – 2Q 2024 Rental growth for prime office assets, quarterly 50 8% U.S. Europe Asia Pacific 41 6% Rental change (q-o-q %) 40 4% 35 millions sqm 32 32 2% 30 26 0% -2% 20 -4% 10 9 8 9 -6% -8% 0 -10% Second Quarter Highlight
Slide 7: Industrial leasing industry highlights
Industrial leasing industry highlights North America Gross Leasing Europe Gross Leasing Asia Pacific Net Absorption 8 5 21 +4% 18 4 6 -33% Millions sqm 15 -40% 3 12 4 9 2 6 2 1 3 0 0 0 5-year Q2 Avg Q2 2023 Q2 2024 5-year Q2 Avg Q2 2023 Q2 2024 5-year Q2 Avg Q2 2023 Q2 2024 (2019-2023) (2019-2023) (
Slide 8: Consolidated financials
Consolidated financials @ JLL SEE A BRIGHTER WAY
Slide 9: Consolidated second quarter 2024 financial results
Consolidated second quarter 2024 financial results Growth rates represent % change over Q2 2023 ’24/’23 % Chg. Q2 2024 Q2 2023 ’24/’23 % Chg. USD Local Currency Revenue $5,629M $5,053M 11% 12% Gross Contract Costs $3,747M $3,206M 17% 18% Platform operating expenses $1,717M $1,686M 2% 2%
Slide 10: Business segments results
Business segments results @ JLL SEE A BRIGHTER WAY
Slide 11: Second quarter 2024 financial results – Business segments
Second quarter 2024 financial results – Business segments $M. Growth rates in local currency; represent % change over Q2 2023 Segment Platform Revenue Gross Contract Costs Adjusted EBITDA Operating Expenses Markets $1,079 $313 $653 $130 Advisory 6% 11% % 30% Capital $458 $12 $442 $34 Markets
Slide 12: Markets Advisory
Markets Advisory Growth rates represent % change over Q2 2023 Revenue Segment Adjusted EBITDA $M $M $1,079 $23 $1,025 $24 $130 $437 $410 $99 $591 $619 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Leasing Property Management Advisory, Consulting and Other Gross contract costs: $284 $313 Second Quarter Highlights
Slide 13: Capital Markets
Capital Markets Growth rates represent % change over Q2 2023 Revenue Segment Adjusted EBITDA $448 $458 $M $39 $42 $M $36 $34 $90 $96 $320 $320 Q2 2023 Axis Title Q2 2024 Q2 2023 Q2 2024 Investment Sales, Debt/Equity Advisory Value and Risk Advisory Loan Servicing Gross contract costs: $13 $12 and Ot
Slide 14: Work Dynamics
Work Dynamics Growth rates represent % change over Q2 2023 Revenue Segment Adjusted EBITDA $M $M $3,933 $71 $3,375 $124 $56 $118 $788 $703 $3,021 $2,553 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Workplace Management Project Management Portfolio Services and Other Gross contract costs: $2,897 $3,413 Second Qua
Slide 15: JLL Technologies
JLL Technologies Growth rates represent % change over Q2 2023 Revenue Segment Adjusted EBITDA $M $M $61 $56 ($1) ($11) Q2 2023 Q2 2024 Q2 2023 Q2 2024 Gross contract costs: $4 $1 Second Quarter Highlights • JLL Technologies revenue declined 7% local currency / USD reflecting lower new contract signi
Slide 16: LaSalle
LaSalle Growth rates represent % change over Q2 2023 Revenue Segment Adjusted EBITDA $M $M $144 $35 $36 $103 $5 $3 $7 $23 $103 $93 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Advisory Fees Transaction Fees and Other Incentive Fees Gross contract costs: $8 $9 Second Quarter Highlights • LaSalle’s revenue decline
Slide 17: Capital allocation and balance sheet
Capital allocation and balance sheet
Slide 18: Debt and leverage
Debt and leverage Highlights: Investment Grade Credit Ratings • Strong balance sheet with ample liquidity provides operational flexibility Moody’s: Baa1 • During the quarter, we further enhanced our liquidity profile by establishing a commercial paper program S&P: BBB+ of up to $2.5 billion short-te
Slide 19: Return of capital to shareholders
Return of capital to shareholders $M $601 $343 $100 $43 $62 $40 2019 2020 2021 2022 2023 Q2 2024 YTD Dividend Share Repurchase Highlights • Strong balance sheet provides flexibility to invest in the business while also returning cash to shareholders • Shares repurchases totaled $20 million in Q2 202
Slide 20: Financial targets
Financial targets @ JLL SEE A BRIGHTER WAY
Slide 21: 2024 and Mid-Term Financial Targets
2024 and Mid-Term Financial Targets 2024 Consolidated Financial Targets Mid-Term Consolidated Financial Targets Revenue $25-30B Adjusted EBITDA $1,000 – 1,200M Gross Contract Costs $15-19B *$50M increase to both the top and bottom Adjusted EBITDA $1.6 – 2.1B of the range. Previous range was $950 – 1
Slide 22: Supplemental materials & non-GAAP reconciliations
Supplemental materials & non-GAAP reconciliations
Slide 23: Consolidated YTD 2024 financial results
Consolidated YTD 2024 financial results Growth rates represent % change over six months ended Q2 2023 ’24/’23 % Chg. Q2 2024 YTD Q2 2023 YTD ’24/’23 % Chg. USD Local Currency Revenue $10,753M $9,768M 10% 10% Gross Contract Costs $7,246M $6,339M 14% 15% Platform operating expenses $3,227M $3,
Slide 24: YTD 2024 financial results – Business segments
YTD 2024 financial results – Business segments $M. Growth rates in local currency; represent % change over six months ended Q2 2023 Segment Platform Revenue Gross Contract Costs Adjusted EBITDA Operating Expenses Markets $2,029 $618 $1,220 $225 Advisory 5% 11% % 31% Capital $835 $25 $807 $59 M
Slide 25: Reconciliation of net income to adjusted EBITDA
Reconciliation of net income (loss) attributable to common shareholders to adjusted EBITDA Three Months Ended Jun 30 Six Months Ended Jun 30 ($M) 2024 2023 2024 2023 Net income (loss) attributable to common shareholders $84.4 $2.5 $150.5 $(6.7) Interest expense, net of interest income 41.7 40.5 72.2
Slide 26: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income (loss) to adjusted net income and adjusted diluted earnings per share Three Months Ended Jun 30 Six Months Ended Jun 30 ($M except per share data) 2024 2023 2024 2023 Net income (loss) attributable to common shareholders $84.4 $2.5 $150.5 $(6.7) Shares (in 000s)(1) 48,31
Slide 27: Non-GAAP measures
Non-GAAP measures 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 stakeholder
Slide 28: Non-GAAP measures (cont.)
Non-GAAP measures (cont.) 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 headcou