Jones Lang Lasalle Incorporated · NYSE:JLL
Jones Lang Lasalle — Q1 2024 Earnings Presentation
27 slides from Jones Lang Lasalle's earnings presentation, May 6, 2024
Slide 1: Earnings Presentation First Quarter 2024
Earnings Presentation First Quarter 202414.88 May 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: First quarter 2024 industry highlights
First quarter 2024 industry highlights
Slide 4: Capital markets industry highlights
Capital markets industry highlights Benchmark yields, 2006 – Mar 2024 Real estate investment volumes by region, 2007 – Q1 2024 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 EMEA Ame
Slide 5: Capital markets industry trends
Capital markets industry trends Quarterly investment volumes by sector, Q1 2022 – Q1 2024 Dry powder in closed-end funds, 2007 – Q1 2024 $125 $476 Residential $500 Office $410 $404 $392 $396 $100 Industrial $400 $351 Retail US$ Billions US$ Billions $75 Hotels $300 $50 $200 $163 $100 $25 $0 $0 Q1 20
Slide 6: Office leasing industry highlights
Office leasing industry highlights Global office leasing volumes by region, 2007 – Q1 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 -6% 7 8 -8% 0 -10% First Quarter Highlights
Slide 7: Industrial leasing industry highlights
Industrial leasing industry highlights North America Gross Leasing Europe Gross Leasing Asia Pacific Net Absorption 8 3 5% 18 15 -2% 6 Millions sqm -15% 2 12 4 9 6 1 2 3 0 0 0 5-year Q1 Avg Q1 2023 Q1 2024 5-year Q1 Avg Q1 2023 Q1 2024 5-year Q1 Avg Q1 2023 Q1 2024 (2019-2023) (2019-2023) (2019-2023
Slide 8: Consolidated financials
Consolidated financials @ JLL SEE A BRIGHTER WAY
Slide 9: Reporting changes effective January 1, 2024
Reporting changes effective January 1, 2024 JLL Recast Historical Financial Information is available on our Investor Relations website at ir.jll.com • JLL no longer reports the non-GAAP measures "Fee revenue" and "Fee-based operating expenses." o This change follows the conclusion of a comment lette
Slide 10: Consolidated first quarter 2024 financial results
Consolidated first quarter 2024 financial results Growth rates represent % change over Q1 2023 ’24/’23 % Chg. Q1 2024 Q1 2023 ’24/’23 % Chg. USD Local Currency Revenue $5,125M $4,716M 9% 9% Gross Contract Costs $3,499M $3,133M 12% 12% Platform operating expenses $1,510M $1,529M (1)% (1)%
Slide 11: Business segments results
Business segments results @ JLL SEE A BRIGHTER WAY
Slide 12: First quarter 2024 financial results – Business segments
First quarter 2024 financial results – Business segments $M. Growth rates in local currency; represent % change over Q1 2023 Segment Platform Revenue Gross Contract Costs Adjusted EBITDA Operating Expenses Markets $950 $305 $567 $95 Advisory 5% 10% (1)% 33% Capital $378 $14 $365 $25 Markets
Slide 13: Markets Advisory
Markets Advisory Growth rates represent % change over Q1 2023 Revenue Segment Adjusted EBITDA $M $M $906 $950 $23 $19 $400 $430 $95 $72 $487 $497 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Leasing Property Management Advisory, Consulting and Other Gross contract costs: $279 $305 First Quarter Highlights • Mark
Slide 14: Capital Markets
Capital Markets Growth rates represent % change over Q1 2023 Revenue Segment Adjusted EBITDA $M $M $378 $357 $39 $37 $25 $80 $79 $11 $241 $259 Q1 2023 Axis Title Q1 2024 Q1 2023 Q1 2024 Investment Sales, Debt/Equity Advisory Value and Risk Advisory Loan Servicing Gross contract costs: $9 $14 and Oth
Slide 15: Work Dynamics
Work Dynamics Growth rates represent % change over Q1 2023 Revenue Segment Adjusted EBITDA $M $M $3,640 $3,276 $111 $103 $656 $676 $51 $2,872 $26 $2,497 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Workplace Management Project Management Portfolio Services and Other Gross contract costs: $2,834 $3,171 First Quar
Slide 16: JLL Technologies
JLL Technologies Growth rates represent % change over Q1 2023 Revenue Segment Adjusted EBITDA $M $M $61 $54 ($5) ($18) Q1 2023 Q1 2024 Q1 2023 Q1 2024 Gross contract costs: $4 $1 First Quarter Highlights • JLL Technologies revenue declined 12% local currency / USD reflecting lower contract signings
Slide 17: LaSalle
LaSalle Growth rates represent % change over Q1 2023 Revenue Segment Adjusted EBITDA $M $M $114 $4 $103 $10 $2 $9 $23 $21 $101 $92 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Advisory Fees Transaction Fees and Other Incentive Fees Gross contract costs: $7 $8 First Quarter Highlights • LaSalle’s revenue decline
Slide 18: Capital allocation and balance sheet
Capital allocation and balance sheet
Slide 19: Debt and leverage
Debt and leverage Highlights: • Strong balance sheet with ample liquidity provides operational flexibility Investment Grade Credit Ratings • Sequential quarter increase in net debt primarily attributable to annual incentive compensation payments and Moody’s: Baa1 reflects the normal seasonality of c
Slide 20: Return of capital to shareholders
Return of capital to shareholders $M $601 $343 $100 $43 $62 $20 2019 2020 2021 2022 2023 Q1 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 Q1 202
Slide 21: Financial targets
Financial targets @ JLL SEE A BRIGHTER WAY
Slide 22: 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 $950 – 1,150M Gross Contract Costs $15-19B Adjusted EBITDA $1.6 – 2.1B Net Debt / Adj. EBITDA < 2x 22 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserv
Slide 23: Supplemental materials & non-GAAP reconciliations
Supplemental materials & non-GAAP reconciliations
Slide 24: Reconciliation of net income (loss) to adjusted EBITDA
Reconciliation of net income (loss) attributable to common shareholders to adjusted EBITDA Three Months Ended Mar 31 ($M) 2024 2023 Net income (loss) attributable to common shareholders $66.1 $(9.2) Interest expense, net of interest income 30.5 26.3 Income tax provision (benefit) 15.9 (2.3) Deprecia
Slide 25: Reconciliation of net income to adjusted net income and adjusted diluted EPS
Reconciliation of net income (loss) to adjusted net income and adjusted diluted earnings per share Three Months Ended Mar 31 ($M except per share data) 2024 2023 Net income (loss) attributable to common shareholders $66.1 $(9.2) Shares (in 000s)(1) 48,280 47,555 Diluted earnings (loss) per share $1.
Slide 26: 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 27: 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