Annual Report 2024
Jones Lang LaSalle Incorporated
jll.com
JLL / Annual Report 2024
A year of achievements
A letter to our stakeholders
From Christian Ulbrich President and Chief Executive Officer
In 2024, JLL marked 25 years as a publicly listed company on the New York Stock Exchange, offering us an opportunity to reflect on our company's long history, and the road ahead. Today, with over 112,000 colleagues serving clients from our offices in 80 countries around the world, the scope of our organization has certainly evolved since our origins in 1783, but our commitment to our clients and colleagues endures.
Financial performance
In 2024, JLL delivered strong financial results, with revenue growth and continued cost discipline driving bottom-line and margin improvement, along with an increase in our free cash flow generation.
Our revenue rose 13% to $23.4 billion, while adjusted EBITDA for the year rose by 28% to $1.2 billion. Our resilient business lines continued to show solid growth, with 14% annual growth led by Workplace Management. Fueled by a strong second half of 2024, our transactional revenues also grew significantly, at 11% for the year.
These results demonstrate the strength of JLL's global platform which continues to enable resilient growth through the cycle.
Clients look to JLL for innovative real estate solutions, industry expertise and data-driven insights. With our strong momentum amidst an improving macroeconomic backdrop, JLL's talent and differentiated platform position us well to gain market share and drive profitable growth in 2025.
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JLL / Annual Report 2024
Strategy
The five macro trends we identified in our strategic vision Beyond, launched in 2017, continue to shape the real estate industry: corporate real estate outsourcing, rising capital flows to real estate, increasing urbanization, fourth industrial revolution, and sustainability. While all these trends are still valid, some have slowed in pace while others have accelerated, and sub-trends have emerged.
Technology and Artificial Intelligence
As an early-adopter of generative AI, JLL continues to invest in cutting-edge technologies, delivering industry-leading insights for our clients and significantly boosting our colleagues' productivity. In October 2024, we unveiled JLL Falcon, our groundbreaking AI platform designed to accelerate the commercial real estate industry's digital transformation. This innovative platform combines JLL's extensive proprietary data with advanced generative AI models, offering a suite of AI-enabled software services that provide timely, revenue- generating, and cost-saving insights while maximizing returns.
Two key innovations powered by JLL Falcon are JLL Azara and the next iteration of JLL GPT.
JLL Azara is an AI-driven data analysis application that revolutionizes how business leaders interact with corporate real estate and facilities management data. By converting complex information into actionable insights, JLL Azara enables us to address business challenges with unprecedented speed and adaptability, delivering customized solutions for our clients.
JLL GPT is the first generative AI assistant purpose-built for the commercial real estate industry. Since its introduction in August 2023, JLL GPT has empowered our workforce to generate specialized insights based on curated datasets, enhancing client outcomes across the enterprise.
Sustainability
Sustainability is fundamental to our long-term growth, allowing JLL to deliver long-term value to our shareholders, and create productive, healthy spaces for our clients and employees. As an organization, JLL is focused on the transition to net-zero to enhance portfolio performance and mitigate risk across the built environment. Our sustainability services are aligned to maximize tangible commercial outcomes for both investors and occupiers. In an era marked by energy insecurity, we are collaborating with our clients to ensure they have a resilient, reliable, and secure energy supply as grid demand intensifies.
Strategy in action
At JLL, we are continually adjusting our strategy and services in line with evolving trends, while also developing a forward- looking approach that will guide us past 2025. What was right in the past may not be the best way forward. With the advancements in technology and AI, we concluded that it is time to bring together all our building management groups under one segment, Real Estate Management Services, to better capitalize on synergies across platform operations, innovation, and client experience.
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JLL / Annual Report 2024
The impact of technology on our clients' businesses, needs, and service delivery has been a driver of our strategy with two important acquisitions in 2024: SKAE Power Solutions and Raise. At the intersection of technology and operations, SKAE Power Solutions expands our footprint and specialist expertise in the US, enabling us to provide significantly enhanced expertise and technical capabilities to our clients' critical environments, including data centers. As a technology-driven brokerage application, Raise provides transformative digital real estate solutions to our clients. This acquisition strengthens JLL's capabilities by integrating market-leading technology, experienced brokers, and elite engineers. We're developing innovative products for the entire leasing lifecycle, continually enhancing our expertise and service offering, and creating unparalleled experiences for our clients.
People
At JLL, we recognize that our people are our most valuable asset, which is why we are committed to attracting, developing, and retaining the best global talent. United by our shared values of teamwork, ethics, and excellence, our global team works together across geographies and cultures as One JLL to deliver for our clients, leveraging best-in-class insights powered by our global platform and our deep local expertise.
We were delighted to be named as one of Fortune's Most Admired Companies for the ninth consecutive year in January 2025, and as one the World's Most Ethical Companies for the 18th year in a row by Ethisphere in March 2025.
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JLL / Annual Report 2024
Looking ahead
Irrespective of the volatility in the markets at the time of writing, we see the start of a new real estate cycle, driving increased leasing activity and renewed investor confidence. We are well-positioned to capitalize on the opportunities ahead, with global borrowing costs stabilizing and transaction volumes
on the rise. For our resilient business lines, the ongoing return to office continues to create demand for top-tier, sustainable workspaces that optimize costs while facilitating greater productivity, collaboration, and wellbeing.
Closing
I would like to take this opportunity to acknowledge our stakeholders around the world, whose trust and partnership are the foundation of JLL's success. Thank you for your interest and support, which fuels our growth and cutting- edge innovation.
To my colleagues worldwide, thank you for your resilience, client focus, and dedication. You are the driving force behind our achievements, and you inspire me daily.
I am optimistic about the year ahead, as we pursue our goal to shape the future of real estate for a better world.
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JLL / Annual Report 2024
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United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-K
Annual Report Pursuant to Section 13 or 15(d) of the Securities Act of 1934
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For the fiscal year ended December 31, 2024 |
Commission File Number 1-13145 |
Jones Lang LaSalle Incorporated
(Exact name of registrant as specified in its charter)
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Maryland |
36-4150422 |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
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200 East Randolph Drive |
Chicago, IL |
60601 |
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(Address of principal executive offices) |
(Zip Code) |
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Registrant's telephone number, including area code: |
(312) 782-5800 |
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Securities registered pursuant to Section 12(b) of the Act: |
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Title of each class |
Trading Symbol |
Name of each exchange on which registered |
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Common Stock, par value $0.01 |
JLL |
The New York Stock Exchange |
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No o Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such period that the registrant was required to submit such files). Yes x No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth corporation (as defined in Rule 12b-2 of the Exchange Act).
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Large accelerated filer x Accelerated filer ☐ Non-accelerated filer ☐ |
Smaller reporting |
☐ |
Emerging growth |
☐ |
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company |
company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
The aggregate market value of the voting stock (common stock) held by non-affiliates of the registrant as of the close of business on June 30, 2024 was $9,675,058,454.
The number of shares outstanding of the registrant's common stock (par value $0.01) as of the close of business on February 13, 2025 was 47,391,812. Portions of the Registrant's Proxy Statement for its 2025 Annual Meeting of Shareholders are incorporated by reference in Part III of this report.
JONES LANG LASALLE INCORPORATED
ANNUAL REPORT ON FORM 10-K
TABLE OF CONTENTS
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Page |
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PART I |
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Item 1. |
Business |
3 |
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Item 1A. |
Risk Factors |
26 |
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Item 1B. |
Unresolved Staff Comments |
41 |
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Item 1C. |
Cybersecurity |
41 |
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Item 2. |
Properties |
42 |
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Item 3. |
Legal Proceedings |
42 |
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Item 4. |
Mine Safety Disclosures |
42 |
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PART II |
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Item 5. |
Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity |
43 |
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Securities |
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Item 6. |
[Reserved] |
44 |
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Item 7. |
Management's Discussion and Analysis of Financial Condition and Results of Operations |
45 |
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Item 7A. |
Quantitative and Qualitative Disclosures About Market Risk |
64 |
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Item 8. |
Financial Statements and Supplementary Data |
65 |
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Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
109 |
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Item 9A. |
Controls and Procedures |
110 |
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Item 9B. |
Other Information |
110 |
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Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections |
110 |
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PART III |
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Item 10. |
Directors, Executive Officers and Corporate Governance |
111 |
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Item 11. |
Executive Compensation |
111 |
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Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters |
112 |
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Item 13. |
Certain Relationships and Related Transactions, and Director Independence |
112 |
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Item 14. |
Principal Accounting Fees and Services |
112 |
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PART IV |
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Item 15. |
Exhibits and Financial Statement Schedules |
113 |
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Item 16. |
Form 10-K Summary |
113 |
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Cautionary Note Regarding Forward-Looking Statements |
113 |
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Power of Attorney |
113 |
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Signatures |
118 |
PART I
ITEM 1. BUSINESS
COMPANY OVERVIEW
Jones Lang LaSalle Incorporated, incorporated in 1997, is a Maryland corporation. References to "JLL," "the Company," "we," "us" and "our" refer to Jones Lang LaSalle Incorporated and include all of its consolidated subsidiaries, unless otherwise indicated or the context requires otherwise. Our common stock is listed on The New York Stock Exchange ("NYSE") under the symbol "JLL."
For over 200 years, 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. 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 by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions. JLL is a Fortune 500® company with annual revenue of $23.4 billion, operations in over 80 countries and a global workforce of more than 112,000 as of December 31, 2024. We provide services for a broad range of clients who represent a wide variety of industries and are based in markets throughout the world. Our clients vary greatly in size and include for-profit and not-for-profit entities, public-private partnerships and governmental ("public sector") entities. Through LaSalle Investment Management, we invest for clients on a global basis in both private assets and publicly-traded real estate securities.
Our global platform and diverse service and product offerings position us to take advantage of the opportunities in a consolidating industry and to successfully navigate the dynamic and challenging markets in which we compete worldwide.
We use JLL as our principal trading name. Jones Lang LaSalle Incorporated remains our legal name. JLL is a registered trademark in the countries in which we do business, as is our logo. In addition, LaSalle Investment Management, which uses LaSalle as its principal trading name, is a wholly-owned subsidiary of Jones Lang LaSalle Incorporated. LaSalle is also a registered trademark in the countries in which we conduct business, as is our logo.
In September 2024, we announced an organizational change that will bring together all building operation groups to address client needs and the changing dynamics of the real estate industry. As a result of these changes, effective January 1, 2025, we will report our Property Management business (currently included in Markets Advisory) within our Work Dynamics segment. Also effective January 1, 2025, this segment will be renamed Real Estate Management Services, and our Markets Advisory segment will become Leasing Advisory. Concurrently, Capital Markets will be renamed Capital Markets Services, LaSalle will be renamed Investment Management and JLL Technologies will be renamed Software and Technology Solutions; there are no reporting changes within these three segments.
OUR HISTORY
While our roots trace back to 1783 with the founding of Jones Lang Wootton in England, we began to establish our global services platform through the 1999 merger with LaSalle Partners Incorporated ("LaSalle Partners," founded in the United States in 1968 and incorporated in 1997). The Company has grown by expanding our client base as well as service and product offerings, both organically and through mergers and acquisitions. Our extensive global reach and in-depth knowledge of local real estate markets enable us to serve as a single-source provider of solutions for the full spectrum of our clients' real estate needs. The mergers and acquisitions have given us additional share and scale in key geographical markets, expanded our capabilities in certain service offerings and further broadened the global platform we make available to our clients.
For information on recent acquisitions, refer to Note 4, Business Combinations, Goodwill and Other Intangible Assets, of the Notes to the Consolidated Financial Statements, included in Item 8.
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A timeline of notable milestones in our history is illustrated below.
OUR SERVICES AND BUSINESS SEGMENTS
We are driven to shape the future of real estate for a better world. We do this by addressing the needs of real estate owners, occupiers and investors, leveraging our deep real estate expertise and experience to provide clients with a full range of services on a local, regional and global scale. For details on the range of services provided by each of the five segments, refer to the narrative starting on page 6.
We offer our real estate services locally, regionally and globally to real estate owners, occupiers, investors and developers for a variety of property types, including (ordered alphabetically):
- Critical Environments and Data Centers
- Cultural Facilities
- Educational Facilities
- Government Facilities
- Healthcare and Laboratory Facilities
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• Hotels and Hospitality Facilities |
• Office (including Flex Space) |
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• Industrial and Warehouse |
• Residential (Individual and Multifamily) |
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• Infrastructure Projects |
• Retail and Shopping Malls |
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• Logistics (Sort and Fulfillment) |
• Sports Facilities |
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• Military Housing and Other |
• Transportation Centers |
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