News Release
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024
Double-digit revenue growth and cost discipline throughout 2024 drove strong earnings per share expansion
CHICAGO, February 19, 2025 - Jones Lang LaSalle Incorporated (NYSE: JLL) today reported 2024 operating performance for the fourth quarter and full year. Transactional4 revenue growth again surpassed 20% and complemented Resilient4 business line revenues which delivered the fifth consecutive quarter of double-digit growth. For the fourth quarter, diluted earnings per share were $4.97, up $1.40 from the prior-year quarter; adjusted diluted earnings per share1 were $6.15, up $0.79. For the full year, diluted earnings per share were $11.30, up $6.63 from 2023, and adjusted diluted earnings per share1 were $14.01, up $3.62.
- Fourth-quarterrevenue was $6.8 billion, up 16% in local currency1 with Transactional4 revenues up 22% and Resilient4 revenues up 13%
-
- Capital Markets achieved 32% growth as momentum accelerated, notably in investment sales and debt advisory
- Leasing, within Markets Advisory, increased 14% with broad-based growth across all asset classes
- Work Dynamics delivered its fourth consecutive quarter of double-digit growth, led by Workplace Management and Project Management
- Revenue growth with continued cost discipline drove bottom-line and margin improvement for both the quarter and full year
- JLL generated $785 million of operating cash flows in 2024, an incremental $210 million over the prior year
"JLL delivered strong fourth-quarter and full-year 2024 financial results, led by an acceleration in transactional activity and sustained growth in resilient revenues. Throughout 2024, our focus on operating efficiency helped drive significant margin expansion and free cash flow generation," said Christian Ulbrich, JLL CEO. "Clients continue to look to JLL for innovative real estate management solutions, industry expertise and data-driven insights. With our strong momentum amidst an improving real estate cycle, JLL's talent and differentiated platform position us well to gain market share and drive profitable growth in 2025."
|
Summary Financial Results |
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||
|
($ in millions, except per share data, "LC" = local currency) |
2024 |
2023 |
% Change |
% Change |
2024 |
2023 |
% Change |
% Change |
|||||
|
in USD |
in LC |
in USD |
in LC |
||||||||||
|
Revenue |
$ |
6,810.9 |
$ |
5,881.4 |
16 % |
16 % |
$ |
23,432.9 |
$ |
20,760.8 |
13 % |
13 % |
|
|
Net income attributable to common shareholders |
$ |
241.2 |
$ |
172.4 |
40 % |
44 % |
$ |
546.8 |
$ |
225.4 |
143 % |
149 % |
|
|
Adjusted net income attributable to common shareholders1 |
298.3 |
259.1 |
15 |
18 |
677.5 |
501.8 |
35 |
38 |
|||||
|
Diluted earnings per share |
$ |
4.97 |
$ |
3.57 |
39 % |
43 % |
$ |
11.30 |
$ |
4.67 |
142 % |
149 % |
|
|
Adjusted diluted earnings per share1 |
6.15 |
5.36 |
15 |
17 |
14.01 |
10.39 |
35 |
38 |
|||||
|
Adjusted EBITDA1 |
$ |
454.8 |
$ |
383.1 |
19 % |
20 % |
$ |
1,186.3 |
$ |
938.4 |
26 % |
28 % |
|
|
Cash flows from operating activities |
$ |
927.3 |
$ |
729.4 |
27 % |
n/a |
$ |
785.3 |
$ |
575.8 |
36 % |
n/a |
|
|
Free Cash Flow6 |
868.1 |
680.2 |
28 % |
n/a |
599.8 |
388.9 |
54 % |
n/a |
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. -continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 2
Consolidated 2024 Performance Highlights:
|
Consolidated |
Three Months Ended December 31, |
% |
% |
|||
|
Change |
Change |
|||||
|
($ in millions, "LC" = local currency) |
2024 |
2023 |
||||
|
in USD |
in LC |
|||||
|
Markets Advisory |
$ |
1,328.0 |
$ |
1,197.4 |
11 % |
11 % |
|
Capital Markets |
706.4 |
537.1 |
32 |
32 |
||
|
Work Dynamics |
4,556.6 |
3,966.1 |
15 |
15 |
||
|
JLL Technologies |
59.3 |
65.5 |
(9) |
(9) |
||
|
LaSalle |
160.6 |
115.3 |
39 |
42 |
||
|
Total revenue |
$ |
6,810.9 |
$ |
5,881.4 |
16 % |
16 % |
|
Platform operating expenses |
$ |
2,135.9 |
$ |
1,859.7 |
15 % |
15 % |
|
Gross contract costs6 |
4,283.1 |
3,709.7 |
15 |
16 |
||
|
Restructuring and acquisition charges5 |
18.7 |
21.6 |
(13) |
(13) |
||
|
Total operating expenses |
$ |
6,437.7 |
$ |
5,591.0 |
15 % |
15 % |
|
Net non-cash MSR and mortgage banking |
$ |
7.7 |
$ |
(8.7) |
189 % |
188 % |
|
derivative activity1 |
||||||
|
Adjusted EBITDA1 |
$ |
454.8 |
$ |
383.1 |
19 % |
20 % |
|
Year Ended December 31, |
% |
% |
|||
|
Change |
Change |
||||
|
2024 |
2023 |
||||
|
in USD |
in LC |
||||
|
$ |
4,500.7 |
$ |
4,121.6 |
9 % |
9 % |
|
2,040.4 |
1,778.0 |
15 |
15 |
||
|
16,197.6 |
14,131.1 |
15 |
15 |
||
|
226.3 |
246.4 |
(8) |
(8) |
||
|
467.9 |
483.7 |
(3) |
(2) |
||
|
$ |
23,432.9 |
$ |
20,760.8 |
13 % |
13 % |
|
$ |
7,150.7 |
$ |
6,707.7 |
7 % |
7 % |
|
15,391.0 |
13,375.9 |
15 |
15 |
||
|
23.1 |
100.7 |
(77) |
(77) |
||
|
$ |
22,564.8 |
$ |
20,184.3 |
12 % |
12 % |
|
$ |
(18.2) |
$ |
(18.2) |
- % |
- % |
|
$ |
1,186.3 |
$ |
938.4 |
26 % |
28 % |
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
-continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 3
Revenue
Revenue increased 16% compared with the prior-year quarter. The collective 22% increase in Transactional revenue was led by (i) Investment Sales, Debt/Equity Advisory and Other, within Capital Markets, up 37% (excluding the impact of non-cash MSR and mortgage banking derivative activity), (ii) Project Management, within Work Dynamics, up 18%, and (iii) Leasing, within Markets Advisory, up 14%. Several businesses with Resilient revenues continued to deliver strong growth, collectively up 13%, highlighted by Workplace Management, within Work Dynamics, up 15%. Growth in these businesses meaningfully outpaced the 4% and 9% declines in LaSalle Advisory Fees and JLL Technologies, respectively.
On a full-year basis, revenue increased 13%. Resilient revenues grew 14% collectively, highlighted by Workplace Management, up 17%, and Property Management, within Markets Advisory, up 8%. Growth in these businesses outpaced declines in LaSalle Advisory Fees, down 7%, and JLL Technologies, down 8%. Fueled by a strong second half of 2024, Transactional revenues increased 11% collectively, led by (i) Leasing, up 11%, (ii) Investment Sales, Debt/Equity Advisory and Other, up 19% (excluding the impact of non-cash MSR and mortgage banking derivative activity), and (iii) Project Management, up 8%.
Refer to segment performance highlights for additional detail.
The following chart reflects the year-over-year change in revenue for each of the trailing eight quarters (QTD revenues, on a local currency basis). The chart shows the change in Transactional, Resilient and total revenue.
YOY Revenue Growth (QTD; in local currency)
|
20% |
22% |
||||||||||
|
16% |
16% |
16% |
|||||||||
|
12% |
12% |
||||||||||
|
10% |
15% |
13% |
|||||||||
|
10% |
6% |
7% |
4% |
9% |
12% |
11% |
|||||
|
1% |
Resilient |
||||||||||
|
(2)% |
5% |
||||||||||
|
-% |
Transactional |
||||||||||
|
(4)% |
1% |
Total |
|||||||||
|
(10)% |
|||||||||||
|
(8)% |
|||||||||||
|
(14)% |
(16)% |
||||||||||
|
(20)% |
(17)% |
||||||||||
|
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 |
-continued-
|
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 4 |
||||||||||||
|
Net income and Adjusted EBITDA |
||||||||||||
|
Three Months Ended December 31, |
Year Ended December 31, |
|||||||||||
|
($ in millions, except per share data, "LC" = local currency) |
2024 |
2023 |
% Change |
% Change |
2024 |
2023 |
% Change |
% Change |
||||
|
in USD |
in LC |
in USD |
in LC |
|||||||||
|
Net income attributable to common shareholders |
$ |
241.2 |
$ |
172.4 |
40 % |
44 % |
$ |
546.8 |
$ |
225.4 |
143 % |
149 % |
|
Adjusted net income attributable to common shareholders1 |
298.3 |
259.1 |
15 |
18 |
677.5 |
501.8 |
35 |
38 |
||||
|
Diluted earnings per share |
$ |
4.97 |
$ |
3.57 |
39 % |
43 % |
$ |
11.30 |
$ |
4.67 |
142 % |
149 % |
|
Adjusted diluted earnings per share1 |
6.15 |
5.36 |
15 |
17 |
14.01 |
10.39 |
35 |
38 |
||||
|
Adjusted EBITDA1 |
$ |
454.8 |
$ |
383.1 |
19 % |
20 % |
$ |
1,186.3 |
$ |
938.4 |
26 % |
28 % |
|
Effective tax rate ("ETR") |
19.5 % |
19.6 % |
(10) bps |
n/a |
19.5 % |
10.2 % |
930 bps |
n/a |
For the fourth quarter, improved profit was largely driven by Transactional revenues (notably Investment Sales, Debt/Equity Advisory, Leasing and LaSalle incentive fees), partially offset by the impact of certain prior-year items including (i) the timing of incentive compensation accruals and (ii) an outsized actuarial benefit associated with U.S. medical self-insurance.
For the full year, profit expansion was primarily attributable to (i) higher revenues, both Transactional and certain Resilient revenue streams, including Workplace Management within Work Dynamics, and (ii) cost discipline and enhanced leverage of the company's platform. These drivers notably outpaced the $19.5 million expense associated with the Fannie Mae loan repurchase and the impact associated with an outsized prior-year actuarial benefit (noted in the quarterly highlights above). Refer to the segment performance highlights for additional detail.
The following charts reflect the aggregation of 2024 and 2023 segment Adjusted EBITDA for the fourth quarter and full year.
Aggregation of Segment Adjusted EBITDA (in millions)
|
$500 |
$455 |
$1,200 |
$1,186 |
|
$400 |
$383 |
$1,000 |
$938 |
|
$171 |
$548 |
|
$300 |
$161 |
Markets Advisory |
$800 |
|
$120 |
Capital Markets |
$600 |
|
|
$200 |
Work Dynamics |
||
|
$76 |
JLL Technologies |
||
|
$400 |
|||
|
LaSalle |
|||
$417
$244
$173
|
$100 |
$121 |
$120 |
$200 |
$264 |
$316 |
|
$6 |
$2 |
$104 |
$100 |
||
|
$- |
$43 |
$- |
|||
|
$20 |
$(19) |
$(22) |
|||
|
Q4 2023 |
Q4 2024 |
FY 2023 |
FY 2024 |
-continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 5
For the full year, the following items were the most notable year-over-year differences between net income and non-GAAP measures1:
- Total equity losses were $76.4 million in 2024, lower than the $201.7 million in 2023, primarily associated with JLL Technologies investments.
- Restructuring and acquisition charges were $77.6 million lower in 2024, compared with 2023, primarily due to (i) an expense credit in the third quarter of 2024 associated with a reduction to an acquisition-related earn-out and (ii) lower employment-related costs over the full year as significant cost-out actions were executed in 2023.
- The provision for income tax was $132.5 million in 2024, compared with $25.7 million in 2023. The 2023 ETR was unusually low due to relatively lower pre-tax earnings and the geographic mix of income, while the 2024 ETR reflects a more normal rate in JLL's recent history.
Cash Flows and Capital Allocation:
|
Three Months Ended December 31, |
Year Ended December 31, |
||||||||||
|
($ in millions, except per share data, "LC" = local currency) |
2024 |
2023 |
Change in USD |
2024 |
2023 |
Change in USD |
|||||
|
Cash flows from operating activities |
$ |
927.3 |
$ |
729.4 |
27 % |
$ |
785.3 |
$ |
575.8 |
36 % |
|
|
Free Cash Flow6 |
868.1 |
680.2 |
28 % |
599.8 |
388.9 |
54 % |
For the fourth quarter, higher cash flow performance was largely attributable to (i) improvements in Net reimbursables, (ii) higher commission and bonus accruals in the fourth quarter (versus payments made) and (iii) greater cash provided by earnings. These items were partially offset by an increase in receivables largely associated with year-over-year revenue growth.
For the full year, improved cash flow performance was primarily driven by (i) higher cash provided by earnings, (ii) higher commission and bonus accruals (versus payments made) and (iii) improvements in Net reimbursables. These were partially offset by an increase in receivables, $126.4 million of higher cash taxes paid and the repurchase of a loan from Fannie Mae.
Share repurchase activity is noted in the following table. As of December 31, 2024, $1,013.2 million remained authorized for repurchase.
|
Three Months Ended December 31, |
Year Ended December 31, 2024 |
||||||||
|
($ in millions; shares in thousands) |
2024 |
2023 |
2024 |
2023 |
|||||
|
Total number of shares repurchased |
75.2 |
147.8 |
373.1 |
410.3 |
|||||
|
Total paid for shares repurchased |
$ |
20.1 |
$ |
21.9 |
$ |
80.4 |
$ |
62.0 |
Net Debt, Leverage and Liquidity6:
|
December 31, 2024 |
September 30, 2024 |
December 31, 2023 |
||||
|
Total Net Debt (in millions) |
$ |
800.6 |
$ |
1,597.3 |
$ |
1,150.3 |
|
Net Leverage Ratio |
0.7x |
1.4x |
1.2x |
|||
|
Corporate Liquidity (in millions) |
$ |
3,616.3 |
$ |
3,392.8 |
$ |
3,085.0 |
The decrease in Net Debt from September 30, 2024 reflected incremental cash flows from operating activities during the fourth quarter of 2024. The Net Debt reduction from December 31, 2023 was largely attributable to improved cash flows from operations in 2024 compared with 2023.
In addition to the Corporate Liquidity detailed above, the company maintains a commercial paper program (the "Program") with $2.5 billion authorized for issuance. As of December 31, 2024, there was $200.0 million outstanding under the Program.
-continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 6
Markets Advisory 2024 Performance Highlights:
|
Markets Advisory |
Three Months Ended December 31, |
% |
% |
Year Ended December 31, |
|||||||||
|
Change |
Change |
% Change |
% Change |
||||||||||
|
($ in millions, "LC" = local currency) |
2024 |
2023 |
2024 |
2023 |
|||||||||
|
in USD |
in LC |
in USD |
in LC |
||||||||||
|
Revenue |
$ |
1,328.0 |
$ |
1,197.4 |
11 % |
11 % |
$ |
4,500.7 |
$ |
4,121.6 |
9 % |
9 % |
|
|
Leasing |
814.4 |
717.5 |
14 |
14 |
2,596.2 |
2,343.6 |
11 |
11 |
|||||
|
Property Management |
476.5 |
445.8 |
7 |
7 |
1,795.1 |
1,675.1 |
7 |
8 |
|||||
|
Advisory, Consulting and Other |
37.1 |
34.1 |
9 |
11 |
109.4 |
102.9 |
6 |
7 |
|||||
|
Segment operating expenses |
$ |
1,175.0 |
$ |
1,054.5 |
11 % |
12 % |
$ |
4,020.7 |
$ |
3,769.7 |
7 % |
7 % |
|
|
Segment platform operating expenses |
843.9 |
752.7 |
12 |
12 |
2,751.1 |
2,616.1 |
5 |
5 |
|||||
|
Gross contract costs6 |
331.1 |
301.8 |
10 |
10 |
1,269.6 |
1,153.6 |
10 |
11 |
|||||
|
Adjusted EBITDA1 |
$ |
170.8 |
$ |
160.5 |
6 % |
7 % |
$ |
547.6 |
$ |
416.6 |
31 % |
31 % |
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
The broad-based increases in Markets Advisory revenue for the fourth quarter and full year were primarily driven by Leasing, led by the office sector. Many geographies achieved double-digit Leasing revenue growth for the quarter, most notably the U.S., India and Greater China2 (full-year growth leaders included the U.S., India and the UK). Globally, office leasing grew 20% over the prior quarter, outperforming market growth of 7% according to JLL Research. In addition, the number of large deals increased over the prior year in nearly all asset classes. Property Management revenue growth for the fourth quarter and full year was led by expansions in the U.S. and several countries in Asia Pacific, largely due to greater pass-through costs, as management fees were flat for the fourth quarter and increased low single-digits for the full year.
Higher fourth-quarter and full-year Adjusted EBITDA was largely driven by transactional revenue growth. The fourth-quarter increase in profit was adversely impacted by the timing of prior-year incentive compensation accruals. Compared with the quarter, full-year profit performance more meaningfully reflected greater platform leverage.
-continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 7
Capital Markets 2024 Performance Highlights:
|
Capital Markets |
Three Months Ended December 31, |
% |
% |
Year Ended December 31, |
% |
% |
|||||||
|
Change |
Change |
Change |
Change |
||||||||||
|
($ in millions, "LC" = local currency) |
2024 |
2023 |
2024 |
2023 |
|||||||||
|
in USD |
in LC |
in USD |
in LC |
||||||||||
|
Revenue |
$ |
706.4 |
$ |
537.1 |
32 % |
32 % |
$ |
2,040.4 |
$ |
1,778.0 |
15 % |
15 % |
|
|
Investment Sales, Debt/Equity Advisory and |
547.7 |
400.0 |
37 |
37 |
1,524.4 |
1,279.8 |
19 |
19 |
|||||
|
Other, excluding Net non-cash MSR(a) |
|||||||||||||
|
Net non-cash MSR and mortgage banking |
7.7 |
(8.7) |
189 |
188 |
(18.2) |
(18.2) |
- |
- |
|||||
|
derivative activity (a) |
|||||||||||||
|
Value and Risk Advisory |
111.0 |
107.7 |
3 |
4 |
373.0 |
363.8 |
3 |
3 |
|||||
|
Loan Servicing |
40.0 |
38.1 |
5 |
5 |
161.2 |
152.6 |
6 |
6 |
|||||
|
Segment operating expenses |
$ |
597.9 |
$ |
487.8 |
23 % |
23 % |
$ |
1,885.7 |
$ |
1,696.9 |
11 % |
11 % |
|
|
Segment platform operating expenses |
586.2 |
474.2 |
24 |
24 |
1,837.1 |
1,649.4 |
11 |
11 |
|||||
|
Gross contract costs6 |
11.7 |
13.6 |
(14) |
(14) |
48.6 |
47.5 |
2 |
3 |
|||||
|
Equity earnings |
$ |
1.9 |
$ |
0.6 |
217 % |
200 % |
$ |
2.7 |
$ |
6.7 |
(60)% |
(59)% |
|
|
Adjusted EBITDA1 |
$ |
119.9 |
$ |
76.1 |
58 % |
60 % |
$ |
244.4 |
$ |
173.1 |
41 % |
42 % |
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
- Historically, net non-cash MSR and mortgage banking derivative activity was included in the Investment Sales, Debt/Equity Advisory and Other caption. Effective beginning Q2 2024, the net non-cash MSR and mortgage banking derivative activity revenue is separately presented in the above table and prior period financial information was recast to conform with this presentation.
Capital Markets fourth-quarter and full-year top-line results were driven by Investment Sales, Debt/Equity Advisory and Other as investor sentiment and greater interest rate stability supported year-over-year accelerated activity. For the fourth quarter, this revenue growth was led by investment sales and debt advisory, most notably in the U.S. and Asia Pacific, across all asset classes, with residential and industrial leading the way. On a full-year basis, both investment sales and debt advisory achieved double-digit growth across most geographies. Investment sales in the U.S. grew approximately 60% for the quarter (approximately 30% for the full year), outperforming the broader market for U.S. investment sales, which grew 51% for the quarter (12% for the full year) according to JLL Research.
The Adjusted EBITDA improvement for the fourth quarter and full year was largely attributable to transactional revenue growth, described above, together with cost discipline. Full-year Adjusted EBITDA expansion was tempered by (i) the $19.5 million adverse impact associated with the August repurchase of a Fannie Mae loan, and (ii) $5.1 million higher non-cash expense attributable to the year-over-year change in loan loss credit reserves.
-continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 8
Work Dynamics 2024 Performance Highlights:
|
Work Dynamics |
Three Months Ended December 31, |
% |
% |
Year Ended December 31, |
% |
% |
|||||||
|
Change |
Change |
Change |
Change |
||||||||||
|
($ in millions, "LC" = local currency) |
2024 |
2023 |
2024 |
2023 |
|||||||||
|
in USD |
in LC |
in USD |
in LC |
||||||||||
|
Revenue |
$ |
4,556.6 |
$ |
3,966.1 |
15 % |
15 % |
$ |
16,197.6 |
$ |
14,131.1 |
15 % |
15 % |
|
|
Workplace Management |
3,472.3 |
3,018.5 |
15 |
15 |
12,529.7 |
10,706.2 |
17 |
17 |
|||||
|
Project Management |
936.1 |
798.3 |
17 |
18 |
3,151.9 |
2,924.8 |
8 |
8 |
|||||
|
Portfolio Services and Other |
148.2 |
149.3 |
(1) |
- |
516.0 |
500.1 |
3 |
3 |
|||||
|
Segment operating expenses |
$ |
4,461.3 |
$ |
3,866.0 |
15 % |
16 % |
$ |
15,974.6 |
$ |
13,947.3 |
15 % |
15 % |
|
|
Segment platform operating expenses |
533.4 |
482.1 |
11 |
11 |
1,944.7 |
1,815.9 |
7 |
7 |
|||||
|
Gross contract costs6 |
3,927.9 |
3,383.9 |
16 |
16 |
14,029.9 |
12,131.4 |
16 |
16 |
|||||
|
Adjusted EBITDA1 |
$ |
120.0 |
$ |
120.5 |
- % |
- % |
$ |
316.3 |
$ |
264.0 |
20 % |
20 % |
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
Work Dynamics revenue growth for the fourth quarter and full year was led by continued strong performance in Workplace Management, largely from a balanced mix of client wins and mandate expansions, as well as incremental pass-through costs in the United States. For the fourth quarter, Project Management delivered double-digit revenue growth across geographies, as higher pass-through costs augmented management fee increases of nearly 10%. For the full year, Project Management revenue performance varied across geographies given shifts in business mix as management fees increased in the mid-single digits, supplemented by higher pass-through costs.
Adjusted EBITDA was flat for the fourth quarter as revenue growth was offset by (i) an approximately $13 million lower actuarial benefit associated with U.S. medical self-insurance compared with the prior-year quarter and (ii) incremental investments in our platform (including technology and artificial intelligence capabilities). Full-year Adjusted EBITDA expansion was driven by top-line performance, which more than overcame the fourth-quarter impacts described above as well as the U.S. state gross receipt tax expense reported in the third quarter of 2024.
-continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 9
JLL Technologies 2024 Performance Highlights:
|
JLL Technologies |
Three Months Ended December 31, |
% |
% |
|||
|
Change |
Change |
|||||
|
($ in millions, "LC" = local currency) |
2024 |
2023 |
||||
|
in USD |
in LC |
|||||
|
Revenue |
$ |
59.3 |
$ |
65.5 |
(9)% |
(9)% |
|
Segment operating expenses |
$ |
64.8 |
$ |
63.4 |
2 % |
3 % |
|
Year Ended December 31, |
% |
% |
|||
|
Change |
Change |
||||
|
2024 |
2023 |
||||
|
in USD |
in LC |
||||
|
$ |
226.3 |
$ |
246.4 |
(8)% |
(8)% |
|
$ |
276.1 |
$ |
281.4 |
(2)% |
(2)% |
|
Segment platform operating expenses, |
64.9 |
64.3 |
1 |
1 |
267.9 |
280.7 |
(5) |
(5) |
|||
|
excluding Carried interest |
|||||||||||
|
Carried interest (benefit) expense(a) |
(1.6) |
(4.4) |
64 |
64 |
2.7 |
(13.8) |
120 |
120 |
|||
|
Gross contract costs6 |
1.5 |
3.5 |
(57) |
(55) |
5.5 |
14.5 |
(62) |
(62) |
|||
|
Adjusted EBITDA1 |
$ |
1.5 |
$ |
6.1 |
(75)% |
(72)% $ |
(22.3) |
$ |
(19.1) |
(17)% |
(15)% |
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
(a) Carried interest expense (benefit) is associated with equity earnings/losses on Spark Venture Funds investments.
The fourth-quarter and full-year decreases in JLL Technologies revenue were due to lower contract signings in technology solutions over the past year, partially offset by modest growth in software services.
The fourth-quarter and full-year declines in Adjusted EBITDA were primarily attributable to lower revenue and the year-over-year change in carried interest expense/benefit.
-continued-
JLL Reports Financial Results for Fourth-Quarter and Full-Year 2024 - Page 10
LaSalle 2024 Performance Highlights:
|
LaSalle |
Three Months Ended December 31, |
% |
% |
Year Ended December 31, |
% |
% |
|||||||
|
Change |
Change |
Change |
Change |
||||||||||
|
($ in millions, "LC" = local currency) |
2024 |
2023 |
2024 |
2023 |
|||||||||
|
in USD |
in LC |
in USD |
in LC |
||||||||||
|
Revenue |
$ |
160.6 |
$ |
115.3 |
39 % |
42 % |
$ |
467.9 |
$ |
483.7 |
(3)% |
(2)% |
|
|
Advisory fees |
95.7 |
99.9 |
(4) |
(4) |
373.8 |
406.2 |
(8) |
(7) |
|||||
|
Transaction fees and other |
9.1 |
7.2 |
26 |
26 |
33.5 |
30.0 |
12 |
14 |
|||||
|
Incentive fees |
55.8 |
8.2 |
580 |
624 |
60.6 |
47.5 |
28 |
36 |
|||||
|
Segment operating expenses |
$ |
120.0 |
$ |
97.7 |
23 % |
25 % |
$ |
384.6 |
$ |
388.3 |
(1)% |
- % |
|
|
Segment platform operating expenses |
109.1 |
90.8 |
20 |
23 |
347.2 |
359.4 |
(3) |
(3) |
|||||
|
Gross contract costs6 |
10.9 |
6.9 |
58 |
58 |
37.4 |
28.9 |
29 |
30 |
|||||
|
Adjusted EBITDA1 |
$ |
42.6 |
$ |
19.9 |
114 % |
120 % |
$ |
100.3 |
$ |
103.8 |
(3)% |
1 % |
Note: For discussion and reconciliation of non-GAAP financial measures, see the Notes following the Financial Statements in this news release. Percentage variances in the Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.
The fourth-quarter increase in LaSalle revenue was due to higher incentive fees earned on asset dispositions on behalf of clients in Asia Pacific. Lower fourth-quarter and full-year advisory fees reflected (i) reduced fees in Europe as a result of structural changes to a lower-margin business, as discussed in previous quarters, and (ii) declines in assets under management ("AUM") over the trailing twelve months. Revenue decreased on a full- year basis, as the decline in advisory fees was partially offset by the increased incentive fees.
The fourth-quarter increase in Adjusted EBITDA was driven by higher incentive fees, net of related variable compensation expense (included within segment platform operating expenses). On a full-year basis, Adjusted EBITDA was flat compared to the prior year, reflecting lower revenues and a few discrete, individually immaterial items, offset by (i) the 2024 benefit of cost management actions and (ii) an $8.2 million gain recognized in the second quarter of 2024 following the purchase of a controlling interest in a LaSalle-managed fund.
As of December 31, 2024, year-to-date AUM decreased nominally in USD (3% in local currency) while quarter-to-date AUM increased 5% in USD (2% in local currency). Changes in AUM are detailed in the tables below (in billions):
Quarter-to-date
|
Beginning balance (September 30, 2024) |
$ |
84.6 |
|
Asset acquisitions/takeovers |
1.6 |
|
|
Asset dispositions/withdrawals |
(1.1) |
|
|
Valuation changes |
1.2 |
|
|
Foreign currency translation |
2.4 |
|
|
Change in uncalled committed capital and cash held |
0.1 |
|
|
Ending balance (December 31, 2024) |
$ |
88.8 |
Year-to-date
|
Beginning balance (December 31, 2023) |
$ |
89.0 |
|
Asset acquisitions/takeovers |
4.6 |
|
|
Asset dispositions/withdrawals |
(5.3) |
|
|
Valuation changes |
(1.3) |
|
|
Foreign currency translation |
2.4 |
|
|
Change in uncalled committed capital and cash held |
(0.6) |
|
|
Ending balance (December 31, 2024) |
$ |
88.8 |
-continued-
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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 15:17:26.146.
