Earnings Presentation
Fourth Quarter 202414.88
February 19, 2025
Fourth quarter 2024 industry highlights
Capital markets industry highlights
|
Benchmark yields, 2006 - December 2024 |
Real estate investment volumes by region, 2007 - 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 |
||
|
6% |
|||
|
1,200 |
|||
1,274
|
Asia Pacific |
EMEA |
Americas |
||
|
5% |
|||||||||||||||||||
|
4% |
1,000 |
||||||||||||||||||
|
3% |
800 |
||||||||||||||||||
|
2% |
600 |
||||||||||||||||||
|
1% |
400 |
||||||||||||||||||
|
0% |
200 |
||||||||||||||||||
|
-1% |
0 |
||||||||||||||||||
|
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
2024 |
|
885
1,073
807
703
615
217 169 232
Fourth Quarter Highlights
- Global direct investment was up 42% local currency (37% USD) in the fourth quarter across all three geographies; with the Americas up 45% local currency / USD, EMEA up 46% local currency (40% USD), and Asia Pacific up 29% local currency (10% USD).
- A more optimistic economic growth outlook and greater interest rate stability beginning in the third quarter, coupled with the increased prevalence of institutional capital and larger deals in the fourth quarter, accelerated transaction activity, despite the volatility late in the year.
- Debt markets further strengthened in the fourth quarter, with originations balanced across lender types with banks again more actively quoting on and closing loans, particularly in the U.S.
Notes:
- Source: JLL Research, January 2025, FRED Economic Data; Benchmark yields data as of December 2024
- Real estate investment includes office, multifamily residential, retail, hotels, industrial, mixed use, healthcare and alternatives sectors. Excludes entity-level and development transactions.
4 | © 2025 Jones Lang LaSalle IP, Inc. All rights reserved.
Capital markets industry trends
Dry powder in closed-end funds, 2007 - H1 2024
|
$684 |
||||
|
$630 |
$642 |
|||
|
600 |
$549 |
$573 |
$600 |
|
Quarterly investment volumes by sector, Q4 2021 - Q4 2024
|
200 |
|||
|
175 |
Living / Multi-housing |
Industrial & Logistics |
Office |
|
150 |
|||
|
Retail |
Hotels & Hospitality |
||
US$ Billions
400
200
0
$170
|
Billions |
125 |
||||||||||||
|
100 |
|||||||||||||
|
US$ |
75 |
||||||||||||
|
50 |
|||||||||||||
|
25 |
|||||||||||||
|
0 |
|||||||||||||
|
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
|
|
2021 |
2022 |
2022 |
2022 |
2022 |
2023 |
2023 |
2023 |
2023 |
2024 |
2024 |
2024 |
2024 |
US$ Billions
|
Global fundraising for closed-end funds |
$260 |
Share of investment volume by sector |
||||||||||||||||||||||||||||||
|
250 |
100% |
|||||||||||||||||||||||||||||||
|
$217 |
5% |
5% |
5% |
5% |
||||||||||||||||||||||||||||
|
$205 |
98 |
7% |
8% |
7% |
4% |
|||||||||||||||||||||||||||
|
200 |
$196 |
15% |
10% |
|||||||||||||||||||||||||||||
|
$169 |
49 |
$172 |
71 |
75% |
24% |
20% |
||||||||||||||||||||||||||
|
$144 |
$143 |
$155 |
$146 |
$159 |
25% |
|||||||||||||||||||||||||||
|
150 |
52 |
43 |
35 |
|||||||||||||||||||||||||||||
|
24 |
$122 |
35 |
65 |
63 |
35% |
|||||||||||||||||||||||||||
|
46 |
$113 |
45 |
62 |
46 |
$111 |
50% |
||||||||||||||||||||||||||
|
$103 |
39 |
32 |
32 |
39% |
36% |
22% |
||||||||||||||||||||||||||
|
100 |
37 |
$89 |
47 |
45 |
50 |
25 |
12 |
|||||||||||||||||||||||||
|
30 |
$73 |
47 |
32 |
43 |
49 |
21 |
||||||||||||||||||||||||||
|
$58 |
33 |
20 |
42 |
48 |
61 |
13% |
||||||||||||||||||||||||||
|
50 |
47 |
24 |
30 |
40 |
53 |
69 |
42 |
25% |
10% |
|||||||||||||||||||||||
|
41 |
18 |
18 |
19 |
26 |
41 |
10% |
||||||||||||||||||||||||||
|
13 |
33% |
|||||||||||||||||||||||||||||||
|
12 |
16 |
22 |
18 |
25 |
46 |
47 |
56 |
52 |
23% |
|||||||||||||||||||||||
|
27 |
35 |
14 |
31 |
29 |
29 |
27 |
35 |
23 |
36 |
15% |
20% |
|||||||||||||||||||||
|
20 |
16 |
18 |
||||||||||||||||||||||||||||||
|
0 |
13 |
10 |
0% |
|||||||||||||||||||||||||||||
|
2010 |
2015 |
2018 |
2021 |
|||||||||||||||||||||||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Living / Multi-housing |
Industrial & Logistics |
|||||||||||||||||||||||||||
|
Notes: |
Retail |
Hotels & Hospitality |
||||||||||||||||||||||||||||||
- Source: JLL Research, January 2025, Preqin, as of January 16, 2025. Upward revisions to dry powder were made at the close of 2024 by Preqin. Full year 2024 dry powder will become available via Preqin in Q3 2025. 5 | © 2025 Jones Lang LaSalle IP, Inc. All rights reserved.
|
5% |
7% |
5% |
||
|
6% |
7% |
8% |
||
|
14% |
15% |
15% |
||
|
24% |
21% |
21% |
||
|
20% |
24% |
24% |
||
|
31% |
26% |
27% |
||
|
2022 |
2023 |
2024 |
||
|
Office |
||||
|
Other |
||||
Office leasing industry highlights
Global office leasing volumes by region, 2007 - 2024
|
50 |
U.S. |
Europe |
Asia Pacific |
|||||||||
|
41 |
||||||||||||
|
sqm |
40 |
36 |
36 |
|||||||||
|
33 |
||||||||||||
|
32 |
||||||||||||
|
30 |
||||||||||||
|
millions |
26 |
|||||||||||
|
20 |
||||||||||||
|
10 |
9 |
10 |
10 |
|||||||||
-
Rental growth for prime office assets, annual
|
25% |
20.9% |
||
|
%) |
20% |
||
|
15% |
|||
|
-o-q |
|||
|
10% |
|||
|
(q |
|||
|
change |
5% |
||
|
0% |
|||
|
Rental |
-5% |
||
|
-10% |
|||
|
-15% |
|||
|
-20% |
|||
|
-25% |
|||
3.1% 2.9%
0.1%
-0.2%
-2.6%
Fourth Quarter Highlights
- Global office leasing volumes in the fourth quarter were up 7% versus the prior-year quarter, led by North America (up 16%), as higher office attendance and headcount growth helped occupiers gain clarity on future space needs and led to a moderation in downsizing trends. Volumes also rose in Asia Pacific (up 4%), while in EMEA decision-making continues to be elongated (down 9%).
- The global vacancy rate inched 10bps higher to 16.8% in the fourth quarter, driven by EMEA and North America, compared with 16.7% in the third quarter 2024 and 16.2% a year ago.
- In the U.S. office market, the fourth quarter marked the first quarter of positive net absorption since Q4 2021, as construction activity remained near historical lows and leasing demand increased.
Notes:
- Source: JLL Research, January 2025
- Prime Office Rental Growth: unweighted average of 30 major markets
6 | © 2025 Jones Lang LaSalle IP, Inc. All rights reserved.
Industrial leasing industry highlights
Millions sqm
North America Gross Leasing
|
21 |
|
|
18 |
|
|
15 |
-28% |
|
12 |
|
9
6
3
0
|
5-year Q4 Avg |
Q4 2023 |
Q4 2024 |
|
(2019-2023) |
8
6
4
2
0
Europe Gross Leasing
+2%
|
5-year Q4 Avg |
Q4 2023 |
Q4 2024 |
|
(2019-2023) |
Asia Pacific Net Absorption
|
5 |
||
|
-4% |
||
|
4 |
||
|
3 |
||
|
5-year Q4 Avg |
Q4 2023 |
Q4 2024 |
|
(2019-2023) |
Fourth Quarter Highlights
- Global activity in the industrial sector declined during the fourth quarter across North America and Asia Pacific, as occupiers focus on increasing utilization of existing space and delay decisions amid a shifting geopolitical backdrop, increased rental rates and higher operational costs.
- In the U.S., declining construction starts are expected to shift supply and demand more into balance in 2025; in EMEA new construction is falling and availability remains limited for prime space.
- Sustained e-commerce growth, increasing demand for last-mile facilities and an emphasis on nearshoring manufacturing operations underpin the sector's long-term growth prospects.
Notes:
- Source: JLL Research, January 2025
- North America Gross Leasing: 60 city markets; EMEA Gross Leasing: 13 national markets; Asia Pacific Net Absorption: 34 city markets
7 | © 2025 Jones Lang LaSalle IP, Inc. All rights reserved.
Consolidated financials
Consolidated fourth quarter 2024 financial results
Growth rates represent % change over Q4 2023
|
Q4 2024 |
Q4 2023 |
'24/'23 % Chg. USD |
|
|
Revenue |
$6,811M |
$5,881M |
16% |
|
Gross Contract Costs |
$4,283M |
$3,710M |
15% |
|
Platform operating expenses |
$2,136M |
$1,860M |
15% |
|
Adjusted Net Income |
$298M |
$259M |
15% |
|
Adjusted Diluted EPS |
$6.15 |
$5.36 |
15% |
|
Adjusted EBITDA |
$455M |
$383M |
19% |
'24/'23 % Chg. Local Currency
- 16%
- 16%
- 15%
- 18%
- 17%
- 20%
Fourth Quarter Highlights
- Transaction-basedbusinesses were collectively up 22% local currency, driven by broad-based growth across nearly all asset classes in Investment Sales, Debt/Equity Advisory and Other and Leasing.
- Resilient revenue business lines continued to deliver strong growth, collectively up 13% local currency in the fourth quarter, led by Workplace Management.
- The increase in Adjusted EBITDA was led by double-digit revenue growth.
Notes:
- Q4 2024 Organic Revenue growth up 16% local currency
- Non-GAAPitems listed above include Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA
- Refer to pages 27 - 31 for definitions and reconciliations of non-GAAP financial measures
9 | © 2025 Jones Lang LaSalle IP, Inc. All rights reserved.
Consolidated YTD 2024 financial results
Growth rates represent % change over twelve months ended Q4 2023
|
Q4 2024 YTD |
Q4 2023 YTD |
'24/'23 % Chg. USD |
|
|
Revenue |
$23,433M |
$20,761M |
13% |
|
Gross Contract Costs |
$15,391M |
$13,376M |
15% |
|
Platform operating expenses |
$7,151M |
$6,708M |
7% |
|
Adjusted Net Income |
$678M |
$502M |
35% |
|
Adjusted Diluted EPS |
$14.01 |
$10.39 |
35% |
|
Adjusted EBITDA |
$1,186M |
$938M |
26% |
'24/'23 % Chg. Local Currency
- 13%
- 15%
- 7%
- 38%
- 38%
- 28%
Notes:
- YTD 2024 Organic Revenue growth up 13% local currency
- Non-GAAPitems listed above include Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA
- Refer to pages 27 - 31 for definitions and reconciliations of non-GAAP financial measures
10 | © 2025 Jones Lang LaSalle IP, Inc. All rights reserved.
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Jones Lang LaSalle Inc. published this content on February 19, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 19, 2025 at 12:32:21.581.
