Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q3 2024 Earnings Presentation
30 slides from Jones Lang Lasalle's earnings presentation, Nov 6, 2024
Slide 1: Earnings Presentation Third Quarter 2024
Earnings Presentation Third Quarter 2024 14.88 November 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: Third quarter 2024 industry highlights
Third quarter 2024 industry highlights
Slide 4: Capital markets industry highlights
Capital markets industry highlights Benchmark yields, 2006 – September 2024 Real estate investment volumes by region, 2007 – Q3 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 Total Asia
Slide 5: Capital markets industry trends
Capital markets industry trends Quarterly investment volumes by sector, Q3 2022 – Q3 2024 Dry powder in closed-end funds, 2007 – Q3 2024 $100 Residential $473 $513 Industrial $500 $391 $409 $373 $75 Office $350 Retail $400 US$ Billions US$ Billions Hotels $300 $50 $200 $163 $25 $100 $0 $0 Q3 2022 Q4
Slide 6: Office leasing industry highlights
Office leasing industry highlights Global office leasing volumes by region, 2007 – Q3 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 26 0% -2% 20 -4% 10 9 8 9 -6% -8% 0 -10% Third Quarter Highlig
Slide 7: Industrial leasing industry highlights
Industrial leasing industry highlights North America Gross Leasing Europe Gross Leasing Asia Pacific Net Absorption 8 6 21 18 5 6 Millions sqm -19% 15 4 -22% 12 -26% 4 3 9 2 6 2 1 3 0 0 0 5-year Q3 Avg Q3 2023 Q3 2024 5-year Q3 Avg Q3 2023 Q3 2024 5-year Q3 Avg Q3 2023 Q3 2024 (2019-2023) (2019-2023
Slide 8: Consolidated financials
Consolidated financials @ JLL SEE A BRIGHTER WAY
Slide 9: Consolidated third quarter 2024 financial results
Consolidated third quarter 2024 financial results Growth rates represent % change over Q3 2023 ’24/’23 % Chg. Q3 2024 Q3 2023 ’24/’23 % Chg. USD Local Currency Revenue $5,869M $5,111M 15% 15% Gross Contract Costs $3,862M $3,327M 16% 16% Platform operating expenses $1,788M $1,634M 9% 9% A
Slide 10: Business segments results
Business segments results @ JLL SEE A BRIGHTER WAY
Slide 11: Third quarter 2024 financial results – Business segments
Third quarter 2024 financial results – Business segments $M. Growth rates in local currency; represent % change over Q3 2023 Segment Platform Revenue Gross Contract Costs Adjusted EBITDA Operating Expenses Markets $1,144 $321 $688 $152 Advisory 15% 11% 8% 77% Capital $499 $12 $444 $66 Market
Slide 12: Markets Advisory
Markets Advisory Growth rates represent % change over Q3 2023 Revenue Segment Adjusted EBITDA $M $M $1,144 $992 $26 $152 $26 $452 $419 $85 $665 $548 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Leasing Property Management Advisory, Consulting and Other Gross contract costs: $288 $321 Third Quarter Highlights • M
Slide 13: Capital Markets
Capital Markets Growth rates represent % change over Q3 2023 Revenue $499 Segment Adjusted EBITDA $436 $41 $66 $M $38 $M $86 $50 $88 $372 $310 Q3 2023 Axis Title Q3 2024 Q3 2023 Q3 2024 Investment Sales, Debt/Equity Advisory Value and Risk Advisory Loan Servicing Gross contract costs: $12 $12 and Ot
Slide 14: Work Dynamics
Work Dynamics Growth rates represent % change over Q3 2023 Revenue Segment Adjusted EBITDA $M $M $74 $4,068 $62 $3,514 $132 $130 $771 $747 $3,165 $2,637 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Workplace Management Project Management Portfolio Services and Other Gross contract costs: $3,017 $3,519 Third Quar
Slide 15: JLL Technologies
JLL Technologies Growth rates represent % change over Q3 2023 Revenue Segment Adjusted EBITDA $M $M $59 $57 ($6) ($8) Q3 2023 Q3 2024 Q3 2023 Q3 2024 Gross contract costs: $3 $1 Third Quarter Highlights • JLL Technologies revenue declined 4% local currency / USD reflecting lower contract signings fo
Slide 16: LaSalle
LaSalle Growth rates represent % change over Q3 2023 Revenue Segment Adjusted EBITDA $M $M $110 $7 $101 $9 $26 $103 $93 $14 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Advisory Fees Transaction Fees and Other Incentive Fees Gross contract costs: $7 $9 Third Quarter Highlights • LaSalle’s revenue decline of 8% l
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 • $800M of commercial paper issued, with proceeds used for general corporate purposes including repayment of Credit S&P: BBB+ Facility borrowings •
Slide 19: Return of capital to shareholders
Return of capital to shareholders ($ in millions) (Shares in 000s) $700 52,000 $600 51,550 51,000 51,105 $601 $500 50,000 50,024 $400 49,000 $300 $343 48,000 $200 47,508 47,510 47,472 47,000 $100 46,000 $100 $43 $62 $60 $0 45,000 2019 2020 2021 2022 2023 Q3 2024 YTD Dividend Share Repurchase Shares
Slide 20: Financial targets
Financial targets @ JLL SEE A BRIGHTER WAY
Slide 21: 2024 Financial Targets
2024 Financial Targets 2024 Consolidated Financial Targets Adjusted EBITDA $1,150 – 1,200M *$150M increase to bottom of the range. Previous range was $1,000 – 1,200M 21 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
Slide 22: Supplemental materials
Supplemental materials @ JLL SEE A BRIGHTER WAY
Slide 23: Changes in reporting
Changes in reporting • As announced in September, Property Management will move out of Markets Advisory, effective January 1, 2025 • Markets Advisory and Work Dynamics will become Leasing Advisory and Real Estate Management Services, respectively Current New—to be effective January 1, 2025 Leasing L
Slide 24: Consolidated YTD 2024 financial results
Consolidated YTD 2024 financial results Growth rates represent % change over nine months ended Q3 2023 ’24/’23 % Chg. Q3 2024 YTD Q3 2023 YTD ’24/’23 % Chg. USD Local Currency Revenue $16,622M $14,879M 12% 12% Gross Contract Costs $11,108M $9,666M 15% 15% Platform operating expenses $5,015M
Slide 25: YTD 2024 financial results – Business segments
YTD 2024 financial results – Business segments $M. Growth rates in local currency; represent % change over nine months ended Q3 2023 Segment Platform Revenue Gross Contract Costs Adjusted EBITDA Operating Expenses Markets $3,173 $939 $1,907 $377 Advisory 9% 11% 3% 46% Capital $1,334 $37 $1,2
Slide 26: Non-GAAP reconciliations
Non-GAAP reconciliations @ JLL SEE A BRIGHTER WAY
Slide 27: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income to adjusted net income and adjusted diluted earnings per share Three Months Ended Sep 30 Nine Months Ended Sep 30 ($M except per share data) 2024 2023 2024 2023 Net income attributable to common shareholders $155.1 $59.7 $305.6 $53.0 Shares (in 000s) 48,497 48,394 48,355
Slide 28: Reconciliation of net income to adjusted EBITDA
Reconciliation of net income attributable to common shareholders to adjusted EBITDA Three Months Ended Sep 30 Nine Months Ended Sep 30 ($M) 2024 2023 2024 2023 Net income attributable to common shareholders $155.1 $59.7 $305.6 $53.0 Interest expense, net of interest income 38.1 37.1 110.3 103.9 Inco
Slide 29: 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 30: 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