* F W S N S L X 5 W J X J S Y F Y N T S
8 J H T S I 6 Z F W Y J W
2 $ 2 0 1
8 J H T S I V Z F W Y J W N S I Z X Y W ^ M N L M Q N L M Y X
Capital markets industry highlights
Benchmark yields, 2006 - June 2025
Real estate investment volumes by region, 2007 - Q2 2025
Direct investment volumes (US$ billion)
7%
6%
5%
4%
3%
2%
1%
0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Q2 2023
Q2 2024
Q2 2025
-1%
1M SOFR
Euro Area 10-year Government Bond Yields
1,400
Asia Pacific EMEA Americas
1,275
1,075
884
615
713
155 157 179
1,200
1,000
800
600
400
200
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
0
Second Quarter Highlights
-
The pace of growth in global direct investment moderated in the second quarter to 13% local currency (14% USD) from 36% local currency (30% USD) in Q1 2025 as geopolitics, trade policy and fiscal uncertainty impacted investor sentiment.
-
Growth in the quarter was across all three regions, with Americas investment activity up 19% local currency (18% USD), Asia Pacific up 17% local currency (15% USD) and EMEA up 3% local currency (6% USD).
-
Debt markets remained resilient, with debt originations outpacing growth in direct transactions for the quarter as increased refinancing activity continued.
Notes:
-
Source: JLL Research, July 2025, FRED Economic Data; Benchmark yields data as of June 2025
-
Real estate investment includes office, multifamily residential, retail, hotels, industrial, mixed use, healthcare and alternatives sectors. Excludes entity-level and development transactions.
Capital markets industry trends
Dry powder in closed-end funds, 2007 - 2024
$729
$665
$676
$593 $585
$168
800
Quarterly investment volumes by sector, Q2 2023 - Q2 2025
Living / Multi-housing Office Industrial & Logistics Retail Hotels & Hospitality
600
100
US$ Billions
US$ Billions
75
400
50
200
25
0 0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Q2
2022
Q3 2022
Q4 2022
Q1 2022
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Global fundraising for closed-end funds Share of investment volume by sector
300
250
US$ Billions
200
150
100
50
0
100%
$266 $246
$206
$171 $182
49
46
30
41
27
24
37
47
35
$57
$73
24
$89 $102
35
48
33
12
13
14
13
47
19
16 18
20 16 18
47
30
25
11
45
20
27
31
46
32
42
29
65
24
55
27
53
39
43
62
$183
46
37
99
73
$144 $143
$153 $149
$113 $123
66
47
$162
40
30
$125
19
24
48
62
45
72
18
41
29
47 47
38
56 54
69
23
$89
49
36 40
22
18
46
75%
50%
25%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
H1 2025
0%
5%
7%
24%
5%
8%
20%
6%
7%
15%
4%
10%
6%
14%
5%
7%
7%
15%
6%
8%
15%
6%
7%
15%
25%
24%
35%
21%
21%
23%
39%
37%
22%
20%
24%
24%
21%
14%
10%
15%
10%
20%
23%
33%
31%
26%
27%
28%
5%
2010 2015 2018 2021 2022 2023 2024 H1 2025
Notes:
Q1
Living / Multi-housing Industrial & Logistics Office Retail Hotels & Hospitality Other
-
Source: JLL Research, July 2025, Preqin, as of July 17, 2025; Upward revisions to prior years dry powder were made in July 2025 by Preqin
Office leasing industry highlights
Global office leasing volumes by region, 2007 - Q2 2025 Rental growth for prime office assets, annual
20.4%
6.4% 8.1%
2.4% 2.8% 4.6% 4.1% 3.4% 4.2% 4.7% 4.0%
2.9%
3.1% 3.2%
(2.5)%
-2.4%
-0.1%
-0.1%
(17.6)%
30%
North America
Europe
Asia Pacific
41
32
36
33
36
9
10
10
50
40
Millions sqm
30
20
10
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Q2 2023
Q2 2024
Q2 2025
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Q2 2025
0
20%
Rental Change (y-o-y %)
10%
0%
-10%
-20%
Second Quarter Highlights
-
Office leasing demand held firm in the second quarter despite longer deal timelines, with global office leasing volumes up 4% versus the prior-year quarter, led by Asia Pacific up 18%; North America was up 1%, while EMEA was down 5%.
-
In Asia Pacific, growth was across most major markets, led by India; in the U.S., increased active tenant requirements offset the impact of delayed decisions and a slowdown in large-scale transactions.
-
The global vacancy rate inched 10 basis points higher to 17.0% in the second quarter compared with 16.9% in the first quarter 2025 and 16.6% a year ago; with supply shortages intensifying for best quality space, global vacancy is likely nearing a peak in the U.S. and EMEA.
Notes:
-
-
Source: JLL Research, July 2025
-
North America represents U.S. and Canadian markets only for quarterly results, U.S. only for annual results; Prime Office Rental Growth: unweighted average of 30 major markets
Industrial leasing industry highlights
North America Gross Leasing Europe Gross Leasing Asia Pacific Net Absorption
2%
21
18
15
Millions sqm
12
9
6
3
0
5-year Q2 Avg (2019-2023)
Q2 2024 Q2 2025
8
-24%
6
4
2
0
5-year Q2 Avg (2019-2023)
Q2 2024 Q2 2025
5
14%
4
3
2
1
0
5-year Q2 Avg (2019-2023)
Q2 2024 Q2 2025
Second Quarter Highlights
-
Global activity in the industrial sector declined year-over-year as tariff and trade uncertainty delayed decision-making and occupiers focused on short-term solutions; declines in EMEA were partially offset by APAC where shifting supply chains bolstered demand in select markets and in North America as occupiers searched for flexible solutions and high-quality space.
-
Shifting tariff and trade negotiation timelines are expected to continue to impact planning and inventory strategies; many companies more exposed to supply chain uncertainty are focused on flexible short-term solutions, looking to third-party logistics providers for agile space management or signing short-term deals or renewals. Markets and industries with lower exposure will continue to transact and may look to increase inventory levels to build resiliency.
Notes:
-
-
Source: JLL Research, July 2025
-
North America Gross Leasing: 60 city markets; EMEA Gross Leasing: 9 national markets; Asia Pacific Net Absorption: 38 city markets
( T S X T Q N I F Y J I K N S F S H N F Q X
Consolidated second quarter 2025 financial results
Growth rates represent % change over Q2 2024
Q2 2025
Q2 2024
'25/'24 % Chg. USD
'25/'24 % Chg.
Local Currency
Revenue
$6,250M
$5,629M
11%
10%
Gross Contract Costs
$4,187M
$3,747M
12%
11%
Platform operating expenses
$1,845M
$1,717M
7%
6%
Adjusted EBITDA
$292M
$246M
18%
17%
Adjusted Net Income
$159M
$123M
29%
29%
Adjusted Diluted EPS
$3.30
$2.55
29%
29%
Second Quarter Highlights
-
Resilient revenue business lines continued to deliver strong growth, collectively up 11% local currency, led by Project Management and Workplace Management.
-
Transactional businesses were collectively up 7% local currency, led by Investment Sales, Debt/Equity Advisory and Other.
-
The improved profit and margin were largely driven by Resilient revenue growth (primarily within Real Estate Management Services) as well as revenue growth from Investment Sales, Debt/Equity Advisory and Other, together with enhanced platform leverage and continued cost discipline (partially enabled by increased use of technology and shared service centers).
Notes:
-
-
Q2 2025 Organic Revenue growth up 10% local currency
-
Non-GAAP items 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
Consolidated YTD 2025 financial results
Growth rates represent % change over six months ended Q2 2024
Q2 2025 YTD
Q2 2024 YTD
'25/'24 % Chg. USD
'25/'24 % Chg.
Local Currency
Revenue
$11,997M
$10,753M
12%
12%
Gross Contract Costs
$8,129M
$7,246M
12%
13%
Platform operating expenses
$3,509M
$3,227M
9%
9%
Adjusted Net Income
$271M
$209M
30%
28%
Adjusted Diluted EPS
$5.60
$4.33
29%
28%
Adjusted EBITDA
$517M
$433M
19%
19%
Notes:
-
YTD 2025 Organic Revenue growth up 12% local currency
-
Non-GAAP items 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
' Z X N S J X X X J L R J S Y X W J X Z Q Y X
Second quarter 2025 financial results - Business segments
$M. Growth rates in local currency; represent % change over Q2 2024
Operating Expenses
Revenue Gross Contract Costs Segment Platform
Adjusted EBITDA
Real Estate
$4,894
$4,173
$644
$107
Management Services
11%
12%
7%
19%
Leasing
$677
$3
$565
$120
Advisory
5%
(60)%
6%
6%
Capital Markets
$520
$2
$487
$55
Services
12%
(85)%
9%
61%
Investment
$103
$8
$81
$16
Management
(2)%
(5)%
(3)%
(32)%
Software and
$56
$1
$69
$(6)
Technology Solutions
(1)%
(64)%
(3)%
43%
Consolidated
$6,250
10%
$4,187
11%
$1,845
6%
$292
17%
Notes:
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
YTD 2025 financial results - Business segments
$M. Growth rates in local currency; represent % change over six months ended Q2 2024
Operating Expenses
Revenue Gross Contract Costs Segment Platform
Adjusted EBITDA
Real Estate
$9,463
$8,103
$1,246
$173
Management Services
12%
13%
9%
7%
Leasing
$1,263
$5
$1,064
$217
Advisory
9%
(64)%
9%
15%
Capital Markets
$956
$3
$906
$103
Services
14%
(89)%
12%
73%
Investment
$202
$17
$159
$32
Management
(3)%
(4)%
-%
(28)%
Software and
$113
$1
$135
$(9)
Technology Solutions
3%
(51)%
2%
41%
Consolidated
$11,997
12%
$8,129
13%
$3,509
9%
$517
19%
Notes:
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
Real Estate Management Services
Growth rates represent % change over Q2 2024
Revenue Adjusted EBITDA
$M
$4,894
$3,021
$3,349
$788
$972
$437
$454
$4,370 $124
$M
$89
+19%
local currency
$119
$107
+11%
local currency
Q2 2024 Q2 2025
Property Management
Q2 2024 Q2 2025
Gross contract costs: $3,717 $4,173
Second Quarter Highlights
-
Real Estate Management Services revenue growth of 11% local currency (12% USD) was led by strong performance in Workplace Management (up 10% local currency / 11% USD) with client wins slightly outpacing mandate expansions, as incremental pass-through costs augmented high single-digit management fee growth.
-
Project Management revenue growth of 22% local currency (23% USD) was led by new or expanded contracts in the U.S. and Asia Pacific, as a mid-teens management fee increase was supplemented by higher pass-through costs.
-
The increases in Adjusted EBITDA and margin were primarily attributable to the revenue growth, coupled with continued cost discipline, more than offsetting the favorable prior-year impact of incentive compensation accruals timing.
Notes:
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
Leasing Advisory
Growth rates represent % change over Q2 2024
$M
$112
$120
+6%
local currency
Revenue Adjusted EBITDA
$619
$652
$677
$M
$642
$23 $25
+5%
local currency
Q2 2024 Q2 2025
Q2 2024 Q2 2025
Gross contract costs: $8 $3
Second Quarter Highlights
-
Leasing Advisory revenue growth of 5% local currency / USD was driven by Leasing growth across major asset classes, led by continued momentum in industrial and office. Geographically, Leasing revenue growth was led most significantly by the U.S., with notable contributions from France, Australia and Singapore.
-
With the backdrop of market-wide decelerating growth, Leasing performed in line with global office volumes and outperformed U.S. office volumes (down 3%) in 2Q, according to JLL Research.
-
The U.S. was primarily driven by growth in industrial, both from higher volume and deal size, while a notable increase in deal size for U.S. office was largely offset by lower volume as the asset class was up low single digits.
-
Adjusted EBITDA and margin improvements were largely driven by revenue growth, tempered by discrete variable operating expenses in the second quarter.
Notes:
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
Capital Markets Services
Growth rates represent % change over Q2 2024
Revenue Adjusted EBITDA
$M
$320
$381
$96
$42
$98
$42
$458
$M
$34
+61%
local currency
$520
$55
+12%
local currency
Q2 2024 Q2 2025
Q2 2024 Q2 2025
Gross contract costs: $12 $2
MSR: $(12) $(4)
Second Quarter Highlights
-
Capital Markets Services revenue growth of 12% local currency (14% USD) was led by debt advisory and investment sales.
-
Excluding the impact of Mortgage Servicing Rights (MSRs), Investment Sales, Debt/Equity Advisory and Other revenue growth of 14% local currency (16% USD) was led most notably by the residential sector, with office, industrial and retail also contributing. Geographically, the U.S., Japan and MENA led the revenue growth.
-
In Q2 2025, the company recognized $14.0 million of incremental expense associated with an enhanced loss-share agreement with Fannie Mae for a specific three-loan portfolio, which was more than offset by the $18.0 million expense recognized in the prior-year quarter associated with the August 2024 repurchase of a loan which JLL originated and then sold to Fannie Mae.
-
Adjusted EBITDA and margin improvements for the quarter were primarily attributable to revenue growth and the net impact of year-over-year loan-related losses described above.
Notes:
-
Net non-cash MSR and mortgage banking derivative activity shown as "MSR" above
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
Investment Management
Growth rates represent % change over Q2 2024
Revenue
$M
Adjusted EBITDA
$M
$103
$7
$3
$103
$7
$3
(2)%
local currency
$93
$93
$23
$16
(32)%
local currency
Q2 2024 Q2 2025
Advisory Fees
Transaction Fees and Other
Incentive Fees
Q2 2024 Q2 2025
Gross contract costs: $9 $8
Second Quarter Highlights
-
Investment Management's revenue decline of 2% local currency (0% USD) was primarily due to lower advisory fees (down 2% local currency / 0% USD) following declines in assets under management (AUM), continuing to reflect asset disposition activity on behalf of certain clients in the fourth quarter of 2024.
-
AUM of $84.9 billion at quarter end declined 2% local currency / USD over the trailing twelve months, reflecting net dispositions / withdrawals.
-
Adjusted EBITDA and margin change were largely driven by the absence of the $8.2 million gain recognized in the prior-year quarter following the purchase of a controlling interest in a fund managed by the company.
Notes:
-
-
AUM reported on a one quarter lag
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
Software and Technology Solutions
Growth rates represent % change over Q2 2024
Revenue Adjusted EBITDA
$M $M
$56 $56
$(6)
(1)%
local currency
$(11)
+43%
local currency
Q2 2024 Q2 2025
Q2 2024 Q2 2025
Gross contract costs: $1 $1
Second Quarter Highlights
-
Software and Technology Solutions revenue decreased 1% local currency / USD, primarily due to reduced technology spend from certain large existing clients, partially offset by low double-digit growth in software services.
-
Adjusted EBITDA improvement was primarily attributable to the $4.7 million favorable year-over-year change in carried interest expense/benefit.
Notes:
-
-
Included in Adjusted EBITDA for Software and Technology Solutions is a carried interest benefit of $2.5 million for Q2 2025 and a carried interest expense of $2.2 million for Q2 2024 related to equity (losses) earnings of the segment
-
As of June 30, 2025, JLL Spark - investments in proptech total ~$440 million, with the portfolio currently valued at ~$350 million, including notes receivables
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
( F U N Y F Q F Q Q T H F Y N T S F S I G F Q F S H J X M J J Y
Debt and leverage
Highlights:
-
Strong balance sheet with ample liquidity provides operational flexibility.
-
Sequential quarter reduction in net debt was driven by positive free cash flow in Q2 2025.
Debt and leverage ($M) Q2 2025 Q1 2025 Q2 2024
-
-
Year-over-year reduction in net debt reflected improved free cash flow over the trailing 12 months compared with the 12 month period ended June 30, 2024.
Cash and cash equivalents 401 432 424
Total debt
Short-term borrowings Commercial paper Credit facility
Long term senior notes
1,988
107
690
380
811
2,186
88
900
420
778
2,176
126
-
1,275
775
Total Net Debt $1,587 $1,754 $1,752
Adjusted TTM EBITDA $1,269 $1,224 $1,034
Net Debt /Adjusted TTM EBITDA 1.2x 1.4x 1.7x Corporate Liquidity $3,321 $3,312 $2,449
Notes:
-
Refer to pages 25 - 28 for definitions and reconciliations of non-GAAP financial measures
-
Commercial Paper, Credit Facility and Long-Term Senior Notes amounts shown are gross of debt issuance costs
-
Credit Facility figures shown in table above represent amounts drawn
Investment Grade Credit Ratings
Moody's: Baa1 S&P: BBB+
$3.3B
Credit Facility
Maturing in November 2028
$2.5B
Commercial Paper Program
$400M
LT Senior Notes (Public Offering)
5-yr debt 6.875% fixed (due 2028)
€350M
LT Senior Euro Notes (Private Placement)
10-yr debt 1.96% fixed (due 2027)
12-yr debt 2.21% fixed (due 2029)
Return of capital to shareholders
51,105
$601
50,024
$343
47,508
47,510
47,416
47,379
$61
$62
$80
$100
$700 52,000
$600 51,000
$500 50,000
US$ Millions
$400
$300
49,000
Shares in 000s
48,000
$200 47,000
$100 46,000
$0
2020 2021 2022 2023 2024 2025 YTD
45,000
Highlights
-
Share repurchases totaled $41 million in Q2 2025, doubling the amount in Q1 2025, bringing the year-to-date total to $61 million.
-
Approximately $950 million remains on our share repurchase authorization.
-
$1.2B repurchased at an average share price of $198 since the beginning of 2020.
+ N S F S H N F Q Y F W L J Y X
2025 Financial Targets
Adjusted EBITDA
$50M increase to the bottom of the range. Previous range was $1,250 - $1,450M.
2025 Consolidated Financial Targets
$1,300-$1,450M
3 T S , & & 5 W J H T S H N Q N F Y N T S X
Reconciliation of net income to adjusted net income and adjusted diluted earnings per share
Three Months Ended June 30 Six Months Ended June 30
|
($M except per share data) Net income attributable to common shareholders Shares (in 000s) |
2025 |
2024 |
|
$112.3 48,334 |
$84.4 48,317 |
|
|
Diluted earnings per share |
$2.32 |
$1.75 |
|
Net income attributable to common shareholders |
$112.3 |
$84.4 |
|
Restructuring and acquisition charges |
21.3 |
11.5 |
|
Net non-cash MSR and mortgage banking derivative activity |
4.2 |
11.8 |
|
Amortization of acquisition-related intangibles(1) |
16.0 |
15.8 |
|
Interest on employee loans, net of forgiveness |
(2.0) |
(1.3) |
|
Equity losses - Investment Management and Software and Technology Solutions(1) |
27.0 |
16.3 |
|
Credit losses on convertible note investments |
0.2 |
- |
|
Tax impact of adjusted items(2) |
(19.6) |
(15.3) |
|
Adjusted net income |
$159.4 |
$123.2 |
|
Shares (in 000s) |
48,334 |
48,317 |
|
Adjusted diluted earnings per share(3) |
$3.30 |
$2.55 |
|
2025 |
2024 |
|
$167.6 |
$150.5 |
|
48,372 |
48,302 |
|
$3.46 |
$3.12 |
|
$167.6 |
$150.5 |
|
41.0 |
13.2 |
|
17.1 |
20.8 |
|
32.1 |
31.0 |
|
(3.6) |
(2.3) |
|
55.7 |
21.2 |
|
0.7 |
- |
|
(39.6) |
(25.2) |
|
$271.0 |
$209.2 |
|
48,372 |
48,302 |
|
$5.60 |
$4.33 |
-
This adjustment excludes the noncontrolling interest portion which is not attributable to common shareholders.
-
For the first half of 2025 and 2024, the tax impact of adjusted items was calculated using the applicable statutory rates by tax jurisdiction.
-
Calculated on a local currency basis, the results for the three and six months ended June 30, 2025, include $0.01 and $0.04, respectively, favorable impact due to foreign exchange rate fluctuations.
Reconciliation of net income attributable to common shareholders to adjusted EBITDA
Three Months Ended June 30
Six Months Ended June 30
|
($M) |
2025 |
2024 |
2025 |
2024 |
|
|
Net income attributable to common shareholders |
$112.3 |
$84.4 |
$167.6 |
$150.5 |
|
|
Interest expense, net of interest income |
35.3 |
41.7 |
59.9 |
72.2 |
|
|
Income tax provision |
26.7 |
20.5 |
40.7 |
36.4 |
|
|
Depreciation and amortization(1) |
66.7 |
61.4 |
137.4 |
121.4 |
|
|
Restructuring and acquisition charges |
21.3 |
11.5 |
41.0 |
13.2 |
|
|
Net non-cash MSR and mortgage banking derivative activity |
4.2 |
11.8 |
17.1 |
20.8 |
|
|
Interest on employee loans, net of forgiveness |
(2.0) |
(1.3) |
(3.6) |
(2.3) |
|
|
Equity losses - Investment Management and Software and Technology Solutions(1) |
27.0 |
16.3 |
55.7 |
21.2 |
|
|
Credit losses on convertible note investments |
0.2 |
- |
0.7 |
- |
|
|
Adjusted EBITDA |
$291.7 |
$246.3 |
$516.5 |
$433.4 |
|
-
This adjustment excludes the noncontrolling interest portion which is not attributable to common shareholders.
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 stakeholders as supplemental measures of core operating performance and include the following:
-
Adjusted EBITDA attributable to common shareholders ("Adjusted EBITDA"),
-
Adjusted net income attributable to common shareholders and Adjusted diluted earnings per share,
-
Net Debt and
-
Percentage changes against prior periods, presented on a local currency basis.
-
However, non-GAAP financial measures should not be considered alternatives to measures determined in accordance with U.S. generally accepted accounting principles ("GAAP"). Any measure that eliminates components of a company's capital structure, cost of operations or investments, or other results has limitations as a performance measure. In light of these limitations, management also considers GAAP financial measures and does not rely solely on non-GAAP financial measures. Because the company's non-GAAP financial measures are not calculated in accordance with GAAP, they may not be comparable to similarly titled measures used by other companies.
Adjustments to GAAP Financial Measures Used to Calculate non-GAAP Financial Measures
Net Non-Cash Mortgage Servicing Rights ("MSR") and Mortgage Banking Derivative Activity consists of the balances presented within Revenue composed of (i) derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity and (ii) gains recognized from the retention of MSR upon origination and sale of mortgage loans, offset by (iii) amortization of MSR intangible assets over the period that net servicing income is projected to be received. Non-cash derivative gains/losses resulting from mortgage banking loan commitment and warehousing activity are calculated as the estimated fair value of loan commitments and subsequent changes thereof, primarily represented by the estimated net cash flows associated with future servicing rights. MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated cash
flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets segment. Excluding net non-cash MSR and mortgage banking derivative activity reflects how the company manages and evaluates performance because the excluded activity is non-cash in nature.
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 headcount, change in
leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) lease exit charges. Such activity is excluded as the amounts are generally either non-cash in nature or the anticipated benefits from the expenditures would not likely be fully realized until future periods. Restructuring and acquisition charges are excluded from segment operating results and therefore are not line items in the segments' reconciliation to Adjusted EBITDA.
Amortization of Acquisition-Related Intangibles is primarily associated with the fair value ascribed at closing of an acquisition to assets such as acquired management contracts, customer backlog and relationships, and trade name. Such activity is excluded as it is non-cash and the change in period-over-period activity is generally the result of longer-term strategic decisions and therefore not necessarily indicative of core operating results.
Gain or Loss on Disposition reflects the gain or loss recognized on the sale of businesses. Given the low frequency of business disposals by the company historically, the gain or loss directly associated with such activity is excluded as it is not considered indicative of core operating performance.
Interest on Employee Loans, Net of Forgiveness reflects interest accrued on employee loans less the amount of accrued interest forgiven. Certain employees (predominantly in our Leasing and Capital Markets businesses) receive cash payments structured as loans, with interest. Employees earn forgiveness of the loan based on performance, generally calculated as a percentage of revenue production. Such forgiven amounts are reflected in Compensation and benefits expense. Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures.
Equity Earnings/Losses (Investment Management and Software and Technology Solutions) primarily reflects valuation changes on investments reported at fair value. Investments reported at fair value are increased or decreased each reporting period by the change in the fair value of the investment. Where the measurement alternative has been elected, our investment is increased or decreased upon observable price changes. Such activity is excluded as the amounts are
generally non-cash in nature and not indicative of core operating performance.
Note: Equity earnings/losses in the remaining segments represent the results of unconsolidated operating ventures (not investments), and therefore the amounts are included in adjusted profit measures on both a segment and consolidated basis.
Credit Losses on Convertible Note Investments reflects credit impairments associated with pre-equity convertible note investments in early-stage
proptech enterprises. Such losses are similar to the equity investment-related losses included in equity earnings/losses for Software and Technology Solutions' investments and are therefore consistently excluded from adjusted measures.
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Jones Lang LaSalle Inc. published this content on August 06, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on August 06, 2025 at 11:34 UTC.
