Jones Lang LaSalle (JLL) came out with quarterly earnings of $3.3 per share, beating the Zacks Consensus Estimate of $3.2 per share. This compares to earnings of $2.55 per share a year ago. These figures are adjusted for non-recurring items. Ahead of this earnings release, the estimate revisions trend for Jones Lang LaSalle was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 ...

Financial Performance - JLL's Q2 2025 revenue increased by 11% in USD (10% in local currency) to $6250 million compared to $5629 million in Q2 2024[29] - Adjusted EBITDA for Q2 2025 was $292 million, an 18% increase in USD (17% in local currency) compared to $246 million in Q2 2024[29] - Adjusted Net Income for Q2 2025 rose by 29% in both USD and local currency to $159 million, compared to $123 million in Q2 2024[29] - Adjusted Diluted EPS also increased by 29% to $330 in Q2 2025, up from $255 in Q2 2024[29] - Year-to-date 2025 revenue reached $11997 million, a 12% increase in both USD and local currency compared to $10753 million in the first six months of 2024[33] - The company is targeting an Adjusted EBITDA of $1300-$1450 million for 2025[68] Business Segment Performance - Real Estate Management Services revenue grew by 11% in local currency, reaching $4894 million in Q2 2025[35, 38] - Capital Markets Services revenue increased by 12% in local currency to $520 million in Q2 2025[35, 47] - Leasing Advisory revenue grew by 5% in local currency to $677 million in Q2 2025[35, 43] Capital Markets and Investment Trends - Global direct investment growth moderated to 13% in local currency (14% in USD) in Q2 2025[10] - Share repurchases totaled $41 million in Q2 2025, bringing the year-to-date total to $61 million[64]

[Financial Highlights](index=1&type=section&id=Financial_Highlights) Overview of JLL's strong Q2 2025 performance, with double-digit revenue growth and increased profitability [Q2 2025 Performance Summary](index=1&type=section&id=Q2_2025_Performance_Summary) JLL achieved its fifth consecutive quarter of double-digit revenue growth in Q2 2025, with revenue up 11% and EPS rising 32% Q2 & H1 2025 Key Financial Results | Metric | Q2 2025 | Q2 2024 | % Change (USD) | H1 2025 | H1 2024 | % Change (USD) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $6,250.1M | $5,628.7M | 11% | $11,996.5M | $10,753.2M | 12% | | **Net Income** | $112.3M | $84.4M | 33% | $167.6M | $150.5M | 11% | | **Diluted EPS** | $2.32 | $1.75 | 33% | $3.46 | $3.12 | 11% | | **Adjusted Diluted EPS** | $3.30 | $2.55 | 29% | $5.60 | $4.33 | 29% | | **Adjusted EBITDA** | $291.7M | $246.3M | 18% | $516.5M | $433.4M | 19% | | **Operating Cash Flow** | $332.8M | $273.9M | 22% | $(434.8)M | $(403.6)M | (8)% | - The company **doubled its share repurchases** in the second quarter and raised the midpoint of its full-year **Adjusted EBITDA target range**, citing strong year-to-date performance and solid business trends[1](index=1&type=chunk) - Investment Management raised **$2.9 billion in capital** during the first half of 2025, surpassing the total amount raised in the full year of 2024[2](index=2&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated_Financial_Performance) Detailed analysis of JLL's Q2 2025 consolidated revenue, profitability, cash flow, and balance sheet [Revenue Analysis](index=2&type=section&id=Revenue_Analysis) Consolidated revenue grew 10% in Q2 2025 to $6.3 billion, driven by Real Estate Management and Capital Markets Q2 2025 Revenue by Segment (in millions) | Segment | Q2 2025 Revenue | Q2 2024 Revenue | % Change (LC) | | :--- | :--- | :--- | :--- | | Real Estate Management Services | $4,894.0 | $4,369.9 | 11% | | Leasing Advisory | $676.8 | $642.2 | 5% | | Capital Markets Services | $520.3 | $457.6 | 12% | | Investment Management | $103.1 | $102.6 | (2)% | | Software and Technology Solutions | $55.9 | $56.4 | (1)% | | **Total Revenue** | **$6,250.1** | **$5,628.7** | **10%** | - **Resilient revenues grew 11%** in Q2, led by **Project Management (+22%)** and **Workplace Management (+10%)**[5](index=5&type=chunk) - **Transactional revenues increased by 7%** in Q2, primarily driven by a **14% rise in Investment Sales and Debt/Equity Advisory** within Capital Markets Services[5](index=5&type=chunk) [Profitability Analysis](index=4&type=section&id=Profitability_Analysis) Net income increased 32% to $112.3 million and Adjusted EBITDA rose 17% in Q2 2025, reflecting growth and cost discipline Q2 2025 Profitability Metrics (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (LC) | | :--- | :--- | :--- | :--- | | Net Income | $112.3 | $84.4 | 32% | | Adjusted Net Income | $159.4 | $123.2 | 29% | | Adjusted EBITDA | $291.7 | $246.3 | 17% | - Key factors widening the gap between GAAP Net Income and non-GAAP measures in Q2 2025 included: - Higher equity losses of **$28.7 million** (vs. **$16.3 million** in 2024) - Increased restructuring and acquisition charges of **$9.8 million** year-over-year[12](index=12&type=chunk) [Cash Flow and Capital Allocation](index=5&type=section&id=Cash_Flow_and_Capital_Allocation) Operating cash flow increased 22% to $332.8 million, with share repurchases more than doubling in Q2 2025 Cash Flow Summary (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (USD) | | :--- | :--- | :--- | :--- | | Cash flows from operating activities | $332.8 | $273.9 | 22% | | Free Cash Flow | $288.4 | $235.7 | 22% | Share Repurchase Activity | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Shares Repurchased (thousands) | 176.5 | 103.7 | | Total Paid (in millions) | $41.4 | $20.1 | - As of June 30, 2025, **$952.0 million** remained authorized for share repurchases[16](index=16&type=chunk) [Balance Sheet and Liquidity](index=6&type=section&id=Balance_Sheet_and_Liquidity) Net Debt decreased to $1.59 billion, Net Leverage Ratio improved to 1.2x, and corporate liquidity exceeded $3.3 billion Key Balance Sheet and Liquidity Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net Debt (in millions) | $1,586.7 | $1,754.0 | $1,752.0 | | Net Leverage Ratio | 1.2x | 1.4x | 1.7x | | Corporate Liquidity (in millions) | $3,321.4 | $3,312.4 | $2,449.4 | - The **reduction in Net Debt** from the previous quarter was driven by **positive free cash flow**[18](index=18&type=chunk) [Segment Performance](index=6&type=section&id=Segment_Performance) Analysis of JLL's Q2 2025 financial performance across its key business segments [Real Estate Management Services](index=6&type=section&id=Real_Estate_Management_Services) Revenue grew 11% to $4.9 billion, with Adjusted EBITDA up 19% driven by Workplace and Project Management Real Estate Management Services Q2 Financials (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (LC) | | :--- | :--- | :--- | :--- | | Revenue | $4,894.0 | $4,369.9 | 11% | | Adjusted EBITDA | $106.6 | $88.6 | 19% | - **Revenue growth was driven by new client wins and mandate expansions** in Workplace Management, and **new or expanded contracts in the U.S. and Asia Pacific** for Project Management[23](index=23&type=chunk) [Leasing Advisory](index=7&type=section&id=Leasing_Advisory) Revenue increased 5% to $676.8 million, with Adjusted EBITDA rising 6% due to strong industrial and office momentum Leasing Advisory Q2 Financials (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (LC) | | :--- | :--- | :--- | :--- | | Revenue | $676.8 | $642.2 | 5% | | Adjusted EBITDA | $120.4 | $112.1 | 6% | - Geographically, **leasing revenue growth was most significant in the United States**, with **notable contributions from France, Australia, and Singapore**[29](index=29&type=chunk) [Capital Markets Services](index=8&type=section&id=Capital_Markets_Services) Revenue surged 12% to $520.3 million, with Adjusted EBITDA up 61% fueled by debt advisory and investment sales Capital Markets Services Q2 Financials (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (LC) | | :--- | :--- | :--- | :--- | | Revenue | $520.3 | $457.6 | 12% | | Adjusted EBITDA | $54.7 | $33.8 | 61% | - The **residential sector was the most significant contributor** to the year-over-year increase, with **growth also seen in the office, industrial, and retail sectors**. The **U.S., Japan, and MENA regions led the revenue growth**[33](index=33&type=chunk) [Investment Management](index=9&type=section&id=Investment_Management) Revenue was flat at $103.1 million, with Adjusted EBITDA declining 32% due to lower advisory fees and a prior-year gain Investment Management Q2 Financials (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (LC) | | :--- | :--- | :--- | :--- | | Revenue | $103.1 | $102.6 | (2)% | | Adjusted EBITDA | $16.3 | $22.7 | (32)% | Assets Under Management (AUM) Roll-Forward (in billions) | AUM Change | Quarter-to-Date | Trailing Twelve Months | | :--- | :--- | :--- | | Beginning Balance | $82.3 | $86.6 | | Acquisitions/Takeovers | $1.3 | $5.8 | | Dispositions/Withdrawals | $(1.3) | $(7.6) | | **Ending Balance (June 30, 2025)** | **$84.9** | **$84.9** | [Software and Technology Solutions](index=10&type=section&id=Software_and_Technology_Solutions) Revenue declined 1% to $55.9 million, but Adjusted EBITDA improved significantly due to a favorable change in carried interest Software and Technology Solutions Q2 Financials (in millions) | Metric | Q2 2025 | Q2 2024 | % Change (LC) | | :--- | :--- | :--- | :--- | | Revenue | $55.9 | $56.4 | (1)% | | Adjusted EBITDA | $(6.3) | $(10.9) | 43% | - The **improvement in Adjusted EBITDA was mainly driven by a favorable change in carried interest**, which swung from a **$2.2 million expense** in Q2 2024 to a **$2.5 million benefit** in Q2 2025[39](index=39&type=chunk)[42](index=42&type=chunk) [Financial Statements and Notes](index=12&type=section&id=Financial_Statements_and_Notes) Detailed unaudited financial statements and comprehensive non-GAAP reconciliations for the reporting period [Unaudited Financial Statements](index=12&type=section&id=Unaudited_Financial_Statements) Detailed unaudited financial statements for Q2 2025, including Statements of Operations, Cash Flows, and Balance Sheets - The **Consolidated Statements of Operations** provide a detailed breakdown of revenues and operating expenses, leading to the **net income attributable to common shareholders**[47](index=47&type=chunk)[48](index=48&type=chunk) - The Consolidated Balance Sheets show total assets of **$17.3 billion** and total equity of **$7.2 billion** as of June 30, 2025[66](index=66&type=chunk)[67](index=67&type=chunk) [Non-GAAP Reconciliations and Definitions](index=20&type=section&id=Non-GAAP_Reconciliations_and_Definitions) Definitions and reconciliations of non-GAAP financial measures like Adjusted EBITDA and Free Cash Flow to GAAP equivalents Reconciliation of Net Income to Adjusted EBITDA (Q2 2025, in millions) | Line Item | Amount | | :--- | :--- | | **Net income attributable to common shareholders** | **$112.3** | | Add: Interest expense, net | $35.3 | | Add: Income tax provision | $26.7 | | Add: Depreciation and amortization | $66.7 | | Add: Restructuring and acquisition charges | $21.3 | | Add: Net non-cash MSR activity | $4.2 | | Add: Equity losses (IM & Tech) | $27.0 | | Other Adjustments | $(1.8) | | **Adjusted EBITDA** | **$291.7** | - The company defines **"Resilient" revenue** to include services like Workplace Management, Project Management, and Advisory Fees, while **"Transactional" revenue** includes Leasing Advisory and Investment Sales[88](index=88&type=chunk)[90](index=90&type=chunk) - **Definitions and reconciliations** are provided for key metrics including **Net Debt, Net Leverage Ratio, and Free Cash Flow**[93](index=93&type=chunk)[95](index=95&type=chunk) [Appendix: Additional Segment Detail](index=25&type=section&id=Appendix%3A%20Additional%20Segment%20Detail) Granular financial breakdowns for each business segment, detailing revenue and Adjusted EBITDA for sub-segments - Provides **detailed financial breakdowns for sub-segments** such as Workplace Management, Project Management, and Property Management within the Real Estate Management Services segment[97](index=97&type=chunk)[100](index=100&type=chunk) - Includes **specific revenue figures** for Investment Sales, Debt/Equity Advisory, Value and Risk Advisory, and Loan Servicing within the Capital Markets Services segment[97](index=97&type=chunk)[100](index=100&type=chunk)

Core Insights - Jones Lang LaSalle Incorporated (JLL) reported strong second-quarter results for 2025, with diluted earnings per share of $2.32, reflecting a 32% increase year-over-year, and adjusted diluted earnings per share of $3.30, up 29% [1][5][11] - The company achieved at least six consecutive quarters of growth in both Resilient and Transactional revenues, indicating robust operational performance [1][5] Financial Performance - Total revenue for the second quarter was $6.25 billion, representing an 11% increase compared to the same quarter in 2024, with Resilient revenues up 11% and Transactional revenues up 7% [5][11] - Net income attributable to common shareholders was $112.3 million, a 33% increase from $84.4 million in the prior year [12][40] - Adjusted EBITDA for the quarter was $291.7 million, an 18% increase year-over-year, driven by revenue growth and improved operating efficiency [12][40] Segment Performance - Real Estate Management Services revenue grew by 12% to $4.89 billion, with significant contributions from Workplace Management (up 11%) and Project Management (up 23%) [6][19] - Capital Markets Services revenue increased by 14% to $520.3 million, primarily driven by strong performance in debt advisory and investment sales [26][27] - Leasing Advisory revenue rose by 5% to $676.8 million, with notable growth in industrial and office sectors in the U.S. and Asia Pacific [23][24] Cash Flow and Capital Allocation - Cash flows from operating activities for the second quarter were $332.8 million, a 22% increase from the previous year, while free cash flow was $288.4 million, also up 22% [14][40] - The company doubled its share repurchases in the second quarter, with $952 million remaining authorized for repurchase as of June 30, 2025 [15][16] Debt and Liquidity - As of June 30, 2025, net debt was $1.59 billion, down from $1.75 billion in the previous quarter, reflecting improved free cash flow [17] - The net leverage ratio improved to 1.2x, down from 1.4x in the previous quarter, indicating stronger financial health [17]

Core Viewpoint - The upcoming earnings report from Jones Lang LaSalle (JLL) is anticipated to show significant growth in earnings per share and revenue compared to the previous year, indicating a positive outlook for the company. Financial Performance - JLL is expected to report quarterly earnings of $3.20 per share, reflecting a 25.5% increase year-over-year [1] - Analysts forecast revenues of $6.11 billion, representing an 8.5% increase compared to the same period last year [1] Earnings Projections - There has been a 0.2% upward revision in the consensus EPS estimate over the past 30 days, indicating analysts have adjusted their projections positively [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates by Segment - Revenue from Total Investment Management is projected to reach $104.80 million, a 2.2% increase year-over-year [5] - Revenue from Leasing Advisory / Markets Advisory is estimated at $667.26 million, indicating a significant decline of 38.2% from the previous year [5] - Revenue from Capital Markets is expected to be $498.67 million, reflecting a 9% increase year-over-year [6] - Revenue from Capital Markets - Loan Servicing is projected at $43.59 million, a 5% increase from the prior year [6] - Revenue from Capital Markets - Value and Risk Advisory is estimated at $95.85 million, showing a slight increase of 0.1% [6] - Revenue from Capital Markets - Investment Sales, Debt/Equity Advisory and Other is expected to be $359.57 million, indicating a 12.3% increase year-over-year [7] - Revenue from Software & Technology Solutions is projected at $58.02 million, a 2.9% increase from the prior year [8] - Revenue from Leasing Advisory / Markets Advisory - Leasing is expected to reach $644.81 million, reflecting a 4.2% increase [8] - Revenue from Real Estate Management Services - Workplace Management is projected at $242.68 million, indicating a drastic decline of 92% [9] - Revenue from Real Estate Management Services - Project Management is expected to be $249.44 million, reflecting a 68.4% decrease year-over-year [10] Stock Performance - Over the past month, JLL shares have returned +4.6%, outperforming the Zacks S&P 500 composite's +1% change [11] - JLL currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [11]

Company Overview - JLL Income Property Trust is an institutionally managed, daily NAV REIT with approximately $6.5 billion in portfolio equity and debt investments [1] - The company focuses on acquiring high-quality warehouse facilities located in target industrial markets [4] Recent Acquisition - The company announced the acquisition of Glendale Distribution Center, a Class A industrial warehouse facility in Glendale, AZ, for approximately $140 million [1] - The property totals 1 million square feet and is 100% leased to a leading global sportswear manufacturer with a strong credit profile [2] - The lease has a term of over 10 years with annual rent escalations of 3.25% [2] Property Features and Location - Glendale Distribution Center was newly constructed in 2023 and includes state-of-the-art features such as 40' clear heights, expansive truck courts, and LED lighting [2] - The property is located in a special Foreign Trade Zone, enhancing the tenant's ability to manage sales and inventory efficiently [3] - The Phoenix area is recognized as one of the fastest-growing markets in the U.S., making it highly desirable for industrial tenants [3] Market Trends - The industrial sector is a high-conviction area for JLL Income Property Trust, comprising 33% of its total portfolio as of June 30, 2025, with $2 billion in assets across 58 industrial properties [4] - The company has noted strong fundamentals in the industrial sector, generating stable demand, particularly near major distribution hubs [4]

Group 1 - The core viewpoint of the article highlights the challenges and opportunities in the M&A market, particularly focusing on sectors like semiconductors, biomedicine, artificial intelligence, and new energy vehicles, which have seen increased activity in recent years [1][2] - The complexity of valuation in these sectors is emphasized, as many companies possess significant patents and intangible assets but have not yet generated substantial revenue or profits, making traditional valuation methods less applicable [1] - Alternative valuation methods such as equity value to GMV ratio and equity value to R&D expenses ratio are suggested for better assessment in early-stage companies [1] Group 2 - The article discusses the operational difficulties in cross-border M&A, particularly for A+H share listed companies with state-owned backgrounds, which require multiple layers of regulatory approval [2] - It notes the differing regulatory logic among various authorities, with state-owned asset protection being a primary concern, leading to the necessity of using multiple valuation methods for cross-verification [2] - The article also points out the cautious approach of the Hong Kong market towards the income method, which requires additional documentation and can complicate the approval process [2]

Company Overview - Kushner Real Estate Group (KRE) is a full-service real estate investment and management company with a portfolio exceeding 9,000 existing apartments and 6 million square feet of commercial space across four states [9] - National Real Estate Advisors, LLC focuses on developing, operating, and managing commercial real estate and infrastructure projects across the United States [10] - JLL (Jones Lang LaSalle) is a leading global commercial real estate and investment management company with annual revenue of $23.4 billion and operations in over 80 countries [14] Project Details - Journal Squared III is a newly constructed, 58-story luxury multifamily high-rise located in Jersey City, New Jersey, featuring 598 luxury apartment units with an average size of 719 square feet [1][5] - The project offers a diverse mix of studio, one-, two-, and three-bedroom units, equipped with high-end finishes and amenities [5] - The development is strategically positioned adjacent to the Journal Square PATH station, providing excellent transit connectivity to Manhattan [3] Financial Aspects - JLL's Capital Markets group secured a $255 million refinancing for Journal Squared III through a 12-year fixed-rate loan arranged with Pacific Life [1][2] - The three-tower Journal Squared project represents a total investment of over $900 million and delivers 2.3 million square feet of new mixed-use development [6] Market Impact - The Journal Square neighborhood is undergoing significant growth due to redevelopment initiatives, attracting various retail, office, hotel, residential, and entertainment venues [4] - The completion of Journal Squared III is seen as a catalyst for continued growth and revitalization in the area, reestablishing Journal Square as a thriving, transit-connected neighborhood [7]

Core Viewpoint - McDonald's plans to sell a portfolio of retail properties in Hong Kong, which are under long-term leases, with a total market value of approximately HKD 1.2 billion [1][2]. Group 1: Property Details - The portfolio consists of 8 retail properties located in high-traffic areas such as Tsim Sha Tsui, Causeway Bay, Mong Kok, and others, with sizes ranging from approximately 6,800 to 19,000 square feet [1]. - The properties have a 100% occupancy rate and will be sold with existing leases, ensuring stable cash flow for potential buyers [1][2]. - Some properties are exclusively leased to McDonald's, while others also include tenants like 7-Eleven and pharmacies, providing diversified rental income [1]. Group 2: Market Context - This auction is considered rare in the market, as the properties have been leased by McDonald's for over 30 years, with many locations serving as landmark dining spots [2]. - McDonald's restaurants will continue to operate in these properties, with no plans for changes in operations [2]. - The first McDonald's restaurant in Hong Kong opened in 1975, and the company currently operates over 250 locations in the region, celebrating its 50th anniversary this year [2].

Core Viewpoint - McDonald's is planning to sell eight properties in Hong Kong through a public tender, with a total market value of approximately HKD 1.2 billion, while ensuring that its restaurant operations remain unaffected [1][6][7] Group 1: Property Sale Details - The properties for sale are located in areas such as Tsuen Wan, Kennedy Town, and Mong Kok, with sizes ranging from 6,746 to 18,746 square feet, built between 1969 and 1991 [1] - The first phase of the sale involves eight properties, with plans to sell the remaining 15 properties based on market response [6] - The highest valued property in the initial sale is a street-level shop in Tsim Sha Tsui, valued at approximately HKD 460 million [6] Group 2: Company Strategy and Market Commitment - McDonald's global representatives stated that the company regularly reviews its property holdings to optimize its real estate portfolio [1][7] - The sale is led by McDonald's headquarters in Chicago and does not impact the operations of its restaurants in Hong Kong, which will continue under existing lease agreements [1][7] - McDonald's is celebrating its 50th anniversary in Hong Kong and remains committed to the market's growth and innovation [7]