Earnings Presentation
Third Quarter 202414.88
November 6th, 2024
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 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 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 September 30, 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.
2 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape or included in any information store and/or retrieval system without prior written permission of Jones Lang LaSalle IP, Inc.
Third quarter 2024 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 |
||
|
6% |
|||
|
1,200 |
|||
|
5% |
1,000 |
||
|
4% |
|||
|
3% |
800 |
||
|
2% |
600 |
||
|
1% |
400 |
||
|
0% |
200 |
||
|
-1% |
0 |
|
Total |
Asia Pacific |
1,274 |
||
|
EMEA |
Americas |
1,073 |
||
885
807
612
471
244
145 182
Third Quarter Highlights
- Global direct investment was up 21% local currency (26% USD) in the third quarter; with the Americas up 19% local currency (20% USD) and Asia Pacific up 81% local currency (82% USD), while EMEA was down 3% in local currency but up 8% in USD
- Investor sentiment continues to improve compared to year-end 2023, and more signals are emerging of a new liquidity cycle in real estate capital markets while major central banks have eased monetary policy
- Bid-askspreads are improving toward healthy levels for in-favor sectors, and yields are beginning to compress
Notes:
- Source: JLL Research, Preqin as of October 8, 2024, FRED Economic Data; Benchmark yields data as of October 1, 2024
- Real estate investment includes office, multifamily residential, retail, hotels, industrial, mixed use, healthcare and alternatives sectors. Excludes entity-level and development transactions.
4 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
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 |
|||||||||||
|
$500 |
||||||||||||||
|
Industrial |
$391 |
$409 |
$373 |
|||||||||||
|
$75 |
Office |
|||||||||||||
|
Billions |
Billions |
$400 |
$350 |
|||||||||||
|
Retail |
||||||||||||||
|
Hotels |
$300 |
|||||||||||||
|
$50 |
||||||||||||||
|
US$ |
US$ |
$163 |
||||||||||||
|
$200 |
||||||||||||||
|
$25 |
$100 |
|||||||||||||
|
$0 |
||||||||||||||
|
$0 |
||||||||||||||
|
Q3 2022 |
Q4 2022 |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
|
Global fundraising for closed-end funds |
Share of investment volume by sector |
US$ Billions
|
$250 |
$252 |
||||||||||||||||||||||||
|
$205 |
100% |
||||||||||||||||||||||||
|
$200 |
$202 |
98 |
|||||||||||||||||||||||
|
$176 |
48 |
$168 |
|||||||||||||||||||||||
|
$143 |
$151 |
$157 |
66 |
$151 |
75% |
||||||||||||||||||||
|
$150 |
$144 |
$140 |
50 |
43 |
32 |
||||||||||||||||||||
|
$100 |
46 |
24 |
$103 |
$115 |
$120 |
33 |
42 |
59 |
40 |
61 |
31 |
64 |
41 |
$96 |
50% |
||||||||||
|
37 |
$89 |
50 |
44 |
50 |
25 |
31 |
|||||||||||||||||||
|
30 |
$58 |
$73 |
47 |
31 |
46 |
41 |
48 |
20 |
|||||||||||||||||
|
47 |
33 |
20 |
41 |
59 |
65 |
41 |
|||||||||||||||||||
|
$50 |
41 |
18 |
24 |
18 |
19 |
30 |
40 |
39 |
50 |
25% |
|||||||||||||||
|
13 |
26 |
||||||||||||||||||||||||
|
35 |
12 |
16 |
22 |
18 |
25 |
46 |
47 |
34 |
49 |
51 |
35 |
||||||||||||||
|
27 |
14 |
30 |
29 |
28 |
24 |
23 |
|||||||||||||||||||
|
$0 |
13 |
20 |
16 |
18 |
10 |
||||||||||||||||||||
|
0% |
|||||||||||||||||||||||||
|
Notes: |
Q1 |
Q2 |
Q3 |
Q4 |
|||||||||||||||||||||
- Source: JLL Research, Preqin, as of October 8, 2024. Upward revisions to 2023 dry powder were made at the close of H1 2024 by Preqin 5 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
|
24% |
20% |
15% |
10% |
14% |
15% |
15% |
||||||
|
25% |
||||||||||||
|
24% |
21% |
21% |
||||||||||
|
35% |
||||||||||||
|
39% |
37% |
|||||||||||
|
22% |
20% |
24% |
24% |
|||||||||
|
13% |
||||||||||||
|
10% |
||||||||||||
|
10% |
33% |
31% |
||||||||||
|
20% |
23% |
26% |
26% |
|||||||||
|
15% |
||||||||||||
|
2010 |
2015 |
2018 |
2021 |
2022 |
2023 |
YTD 2024 |
||||||
|
Residential |
Industrial |
Office |
Retail |
Hotels |
Other |
|||||||
Office leasing industry highlights
Global office leasing volumes by region, 2007 - Q3 2024
|
50 |
U.S. |
Europe |
Asia Pacific |
||||||||
|
40 |
41 |
||||||||||
|
35 |
|||||||||||
|
sqm |
|||||||||||
|
30 |
32 |
32 |
|||||||||
|
millions |
26 |
26 |
|||||||||
|
20 |
|||||||||||
|
10 |
9 |
8 |
9 |
||||||||
|
0 |
|||||||||||
Rental growth for prime office assets, quarterly
|
8% |
|
|
%) |
6% |
|
(q-o-q |
4% |
|
2% |
|
|
change |
-2% |
|
Rental |
0% |
|
-6% |
|
|
-4% |
-8% -10%
Third Quarter Highlights
- Global office leasing volumes in the third quarter were up 12% versus the prior-year quarter, with the start of the Fed's loosening cycle, moderating downsizing trends and progress on office attendance policies contributing to strong U.S. growth (up 25%), while Asia Pacific (up 1%) and EMEA (up 1%) remained largely unchanged.
- The global vacancy rate inched higher to 16.7%, rising by 10bp across all three regions in the third quarter 2024, compared with 16.6% in the second quarter 2024 and 15.9% a year ago.
- New groundbreakings have fallen to their lowest level on record in the U.S.; Europe supply expected to slow into 2025, while new deliveries expected to remain above historic averages in Asia Pacific
Notes:
- Source: JLL Research, October 2024
- Prime Office Rental Growth: unweighted average of 30 major markets
6 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
Industrial leasing industry highlights
Millions sqm
North America Gross Leasing
|
21 |
|||
|
18 |
|||
|
15 |
|||
|
12 |
-26% |
||
|
9 |
|||
|
6 |
|||
|
3 |
|||
|
0 |
|||
|
5-year Q3 Avg |
Q3 2023 |
Q3 2024 |
|
|
(2019-2023) |
8
6
4
2
0
Europe Gross Leasing
-19%
|
5-year Q3 Avg |
Q3 2023 |
Q3 2024 |
|
(2019-2023) |
Asia Pacific Net Absorption
|
6 |
||
|
5 |
||
|
4 |
-22% |
|
|
3 |
||
|
2 |
||
|
1 |
||
|
0 |
||
|
5-year Q3 Avg |
Q3 2023 |
Q3 2024 |
|
(2019-2023) |
Third Quarter Highlights
- Global activity in the industrial sector declined during the third quarter of 2024 across all geographies with occupiers looking to push utilization of existing space and delaying decisions amid high interest rates and energy costs.
- Activity is in line with pre-pandemic averages and the long-term outlook remains favorable.
- US pipeline continues to decline with new completions 22% lower for the quarter, marking third consecutive quarter of slowing deliveries; EMEA construction pipeline continues to decline with limited supply of modern space.
Notes:
- Source: JLL Research, October 2024
- North America Gross Leasing: 60 city markets; EMEA Gross Leasing: 5 national markets; Asia Pacific Net Absorption: 6 city markets
7 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
Consolidated financials
Consolidated third quarter 2024 financial results
Growth rates represent % change over Q3 2023
|
Q3 2024 |
Q3 2023 |
'24/'23 % Chg. USD |
|
|
Revenue |
$5,869M |
$5,111M |
15% |
|
Gross Contract Costs |
$3,862M |
$3,327M |
16% |
|
Platform operating expenses |
$1,788M |
$1,634M |
9% |
|
Adjusted Net Income |
$170M |
$106M |
60% |
|
Adjusted Diluted EPS |
$3.50 |
$2.19 |
60% |
|
Adjusted EBITDA |
$298M |
$217M |
37% |
Third Quarter Highlights
'24/'23 % Chg. Local Currency
- 15%
- 16%
- 9%
- 60%
- 60%
- 37%
- Resilient revenue business lines continued to deliver strong growth, collectively up 16% local currency in the third quarter, led by Workplace Management and Property Management
- Transaction-basedbusinesses were collectively up 11% local currency, driven by broad-based geographic growth in Leasing and Investment Sales, Debt/Equity Advisory and Other
- The increase in Adjusted EBITDA primarily reflected double-digit revenue growth, coupled with ongoing cost discipline
Notes:
- Q3 2024 Organic Revenue growth of 14% local currency
- Non-GAAPitems listed above include Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA
- Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
9 | © 2024 Jones Lang LaSalle IP, Inc. All rights reserved.
Business segments results
Attachments
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Jones Lang LaSalle Inc. published this content on November 06, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 06, 2024 at 12:50:38.461.
