CHICAGO, May 28, 2025 /PRNewswire/ -- JLL Income Property Trust, an institutionally managed, daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with approximately $6.5 billion in portfolio equity and debt investments, announced today that it has fully subscribed JLLX Diversified VIII, DST. The $158 million program was structured as a Delaware Statutory Trust designed to provide 1031 exchange investors the opportunity to reinvest proceeds from the sale of appreciated real estate while also deferring tax ...

Group 1: Office Leasing Market - The overall Grade A office leasing market recorded a positive net absorption of 39,700 square feet in April after a negative absorption in March, with a stable vacancy rate of 13.7% [1] - The demand for office leasing is primarily driven by relocations for office upgrades, with The Payment Cards Group Limited leasing 12,100 square feet in Tsim Sha Tsui [1] - Certain industries, particularly finance, insurance, and education, are actively seeking office space, indicating a rising demand in specific sectors [1] Group 2: Rental Trends - Despite the stable vacancy rate, overall rental prices continued to decline, with a slight monthly decrease of 0.5% in April, marking the 36th consecutive month of rental decline since May 2022 [2] - Central and East Hong Kong recorded minor rental declines of 0.4% and 0.6% respectively, while other major districts also experienced similar decreases [2] Group 3: Residential Market - The overall residential transaction volume increased by 6.1% month-on-month in April, with the secondary market transactions rising to 4,080, indicating a recovery in demand [2] - The primary market transactions decreased to 1,614, but the performance remained strong due to the successful launch of several large projects [2] - A decrease in the one-month HIBOR by 3.36 percentage points to 0.59% as of May 26 is expected to alleviate pressure on mortgage borrowers, potentially boosting the residential market [2]

CHICAGO, May 21, 2025 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) announced that Catherine Clay was elected as an independent, non-executive member of its Board of Directors effective May 21, 2025. She initially will serve as a member of the Audit and Risk, Compensation, and Nominating, Governance and Sustainability Committees. Catherine Clay, JLL Clay brings extensive experience in derivatives markets, digital assets, data analytics and financial technology to the JLL Board. Currently, ...

Group 1 - The average design and construction cost for office buildings in Hong Kong is expected to remain stable at $133 per square foot in 2024, ranking 28th globally and 4th in the Asia-Pacific region [1] - Despite an increase in labor costs last year, stable material costs and intensified competition among contractors have kept the costs unchanged, with expectations of a significant reduction in costs by 2025 [1][2] - Companies in the Asia-Pacific region show a strong willingness to increase investment in office renovations, with 74% of Indian and 72% of Australian firms planning to invest more in space design and renovations over the next five years, surpassing the global average of 59% [1] Group 2 - The average renovation cost for office buildings in the Asia-Pacific region is $136 per square foot, the lowest globally, reflecting a growing emphasis on technology integration and hybrid work models [2] - There is a notable increase in investment in audiovisual and technology equipment in the Asia-Pacific region, indicating a focus on enhancing efficiency to support hybrid work environments [2] - 66% of global companies plan to increase investments in sustainable performance over the next five years, with mechanical and electrical services accounting for a significant portion of renovation costs in the Asia-Pacific region [2] Group 3 - The supply gap for Grade A office buildings is expected to widen, leading to a focus on lease renewals and upgrading existing spaces as alternative solutions [3] - The ongoing supply constraints are anticipated to result in more suitable renovation projects in the Asia-Pacific region [3] - Early planning for lease arrangements and decisive investments in existing properties will be beneficial for owners and tenants in managing costs effectively amid uncertain economic and geopolitical conditions [3]

Core Insights - One Congress, a new trophy office asset in Boston, has achieved 100% pre-leasing 12 months prior to its completion, indicating strong demand for premium office space in the area [1][3] Financing Details - JLL's Capital Markets group arranged a $650 million refinancing for One Congress, a single-asset, single-borrower loan led by Wells Fargo and Bank of America [1][2] Property Features - One Congress is a 43-story building with a total area of 1,008,000 square feet, designed by Pelli Clarke & Partners, featuring sustainable and energy-efficient office space with column-free floor plans and views of the Charles River and downtown Boston [3][4] - The building includes a full-floor amenity center, 15,000 square feet of rooftop terrace space, a 7,000-square-foot fitness center, and a triple-height lobby with a coffee bar [3] Location and Accessibility - Situated within the Bulfinch Crossing redevelopment, One Congress connects Boston's Financial District, West End, North End, and Beacon Hill neighborhoods, with direct access to public transportation and major highways [4] Company Background - Carr Properties is a privately held real estate investment trust with a portfolio of 11 commercial office properties totaling approximately 4 million square feet, along with future multi-family development sites [8] - National Real Estate Advisors focuses on developing and managing commercial real estate projects across the U.S., with a diverse investment portfolio [9][10] JLL Overview - JLL is a leading global commercial real estate and investment management company with annual revenue of $23.4 billion, operating in over 80 countries and employing more than 112,000 people [11]

Core Viewpoint - The report by JLL highlights that China's non-performing assets (NPAs) are at a pivotal point for value reconstruction, indicating significant investment potential in this sector [1] Industry Overview - The National Financial Regulatory Administration estimates that banks will dispose of over 3 trillion yuan in non-performing assets in 2024 [1] - According to the 2025 China Financial Non-Performing Asset Market Survey Report by Dongfang Asset, the NPA market is expected to show a trend of "stable growth in total volume and continuous structural adjustment" [1] - National financial asset management companies are expected to lead local debt disposal under supportive debt reduction policies, with a projected 30% increase in the volume of NPAs they handle by 2025 [1] Investment Opportunities - The NPA sector is not merely "negative assets" but may represent undervalued value carriers, suggesting a need to broaden the definition of NPAs and focus on "non-negative assets" [1] - The restructuring of debts and the separation of debt and equity from underlying assets can reveal valuable components within NPAs, making them worthy of investment [2] - Innovative approaches such as NPA funds and asset securitization are gaining traction, presenting new opportunities for investment compared to traditional methods like debt-to-equity swaps and principal and interest recovery [2][3] Market Dynamics - The NPA industry exhibits a notable characteristic of "counter-cyclical acquisition and pro-cyclical sale," where the best time to acquire is during market downturns when asset prices are undervalued, and the optimal time to sell is during economic recovery when asset prices rise [3][4] - Emerging investment groups, such as family offices, are increasingly entering the NPA investment space, indicating a growing interest in this sector [4] Future Directions - JLL plans to further explore the classification and valuation strategies of NPAs, as well as disposal strategies, in collaboration with market participants to uncover the potential value of NPAs [4]

Core Points - JLL Income Property Trust declared a second-quarter dividend of $0.1575 per share, marking the 54th consecutive dividend payment to stockholders [1][2][3] - The annualized gross dividend equates to $0.63 per share, representing a yield of approximately 5.5% based on a NAV per share of $11.41 as of March 31, 2025 [2][3] - Over its 13-year history, the company has increased its dividend nine times, averaging an annual increase of 4.0%, providing inflation-hedging income to stockholders [3] Dividend Details - The dividend is payable on or around June 27, 2025, to stockholders of record as of June 24, 2025 [2] - A first-quarter 2025 dividend of $0.1575 per share was paid on March 28, 2025, to stockholders of record as of March 25, 2025 [3] - The net dividend per share varies by share class due to specific fees, with the M-I Share and A-I Share receiving $0.1575, while M Share and A Share receive lower amounts after fees [4] 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][5] - The trust focuses on a diversified portfolio of high-quality, income-producing real estate investments across various sectors, including residential, industrial, retail, healthcare, and office [6] - The company aims to further diversify its real estate portfolio, potentially on a global scale [6]

CHICAGO, May 8, 2025 /PRNewswire/ -- JLL Income Property Trust, an institutionally managed, daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with approximately $6.5 billion in portfolio equity and debt investments, will hold a public earnings call on Wednesday, May 14, 2025 at 9:00 AM CT to review first quarter operating and financial results. Allan Swaringen, Chief Executive Officer, and Gregg Falk, Chief Financial Officer, will present an overview of recent economic events that directly influence t ...

Group 1: Commercial Real Estate Investment Trends - The Asia-Pacific commercial real estate investment in Q1 increased by 20% year-on-year to $36.3 billion, marking the highest first-quarter investment since the start of the 2022 interest rate hike cycle [1] - All real estate sectors, except for industrial and logistics properties, saw increased investment, indicating that investors are making rational decisions based on objective fundamentals [1] - In Hong Kong, commercial property transactions over HKD 50 million totaled $850 million, a decrease of 17.8% year-on-year, with the investment market remaining subdued due to high interest rates [1] Group 2: Cross-Border Investment and Market Outlook - The Asia-Pacific region recorded $8.6 billion in overseas capital inflow in Q1, a significant increase of 152% year-on-year, the highest for the same period since 2019 [2] - Japan remains a favored market for foreign investment, attracting $13.7 billion in foreign capital in Q1 2025, a 20% increase year-on-year, despite rising interest rates [2] - The investment sentiment is expected to remain subdued in the short term due to high borrowing costs exceeding investment returns, although potential U.S. interest rate cuts and economic stimulus measures in China could improve investor confidence [2] Group 3: Economic Impact of U.S. Tariff Policies - U.S. tariff policies are anticipated to impact the economies of several countries, particularly those heavily reliant on exports to the U.S., such as Vietnam, Malaysia, and South Korea [3] - The weakening economic growth outlook in the U.S. may lead to reduced leasing and investment activities in commercial real estate, affecting demand for office spaces and retail performance [3] - Despite challenges, structural trends such as rising e-commerce penetration and an expanding middle class are expected to support internal trade in the Asia-Pacific region [3]

Part I. Financial Information [Item 1. Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Jones Lang LaSalle Incorporated, including the Balance Sheets, Statements of Comprehensive Income, Statements of Changes in Equity, and Statements of Cash Flows, along with detailed notes explaining accounting policies, segment information, debt, investments, and other financial disclosures for the periods ended March 31, 2025 and 2024 [Consolidated Balance Sheets](index=3&type=section&id=Balance%20Sheets) The consolidated balance sheets show a slight decrease in total assets and liabilities from December 31, 2024, to March 31, 2025, while total equity increased, primarily driven by retained earnings and foreign currency translation adjustments Consolidated Balance Sheet Highlights (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Total assets | $16,631.1 | $16,763.8 | | Total liabilities | $9,669.0 | $9,868.7 | | Total equity | $6,962.1 | $6,895.1 | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Statements%20of%20Comprehensive%20Income) For the three months ended March 31, 2025, revenue increased year-over-year, but net income attributable to common shareholders decreased due to higher operating expenses, particularly restructuring and acquisition charges, and increased equity losses Consolidated Statements of Comprehensive Income Highlights (in millions, except per share data) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $5,746.4 | $5,124.5 | | Operating income | $120.0 | $114.2 | | Net income attributable to common shareholders | $55.3 | $66.1 | | Basic earnings per common share | $1.17 | $1.39 | | Diluted earnings per common share | $1.14 | $1.37 | - Restructuring and acquisition charges significantly increased to **$19.7 million** in Q1 2025 from **$1.7 million** in Q1 2024, contributing to higher operating expenses[8](index=8&type=chunk) - Equity losses increased substantially from **$3.7 million** in Q1 2024 to **$25.6 million** in Q1 2025[8](index=8&type=chunk) [Consolidated Statements of Changes in Equity](index=6&type=section&id=Statements%20of%20Changes%20in%20Equity) Total equity increased from $6,895.1 million at December 31, 2024, to $6,962.1 million at March 31, 2025, primarily due to net income and positive foreign currency translation adjustments, partially offset by share repurchases and equity compensation plan activities Key Changes in Total Equity (in millions) | Metric | December 31, 2024 | March 31, 2025 | | :-------------------------------- | :---------------- | :------------- | | Total Equity (Beginning/Ending Balance) | $6,895.1 | $6,962.1 | | Net income | - | $57.5 | | Foreign currency translation adjustments | - | $36.8 | | Repurchase of common stock | - | $(19.7) | [Consolidated Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) Operating activities used more cash in Q1 2025 compared to Q1 2024, while financing activities provided significantly more cash, largely due to increased commercial paper issuance and credit facility utilization. Investing activities also used more cash, primarily for capital contributions to investments Consolidated Cash Flow Summary (in millions) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(767.6) | $(677.5) | | Net cash used in investing activities | $(152.8) | $(54.3) | | Net cash provided by financing activities | $900.7 | $703.4 | | Net change in cash, cash equivalents and restricted cash | $(8.0) | $(38.1) | - The increase in cash used in investing activities was primarily due to a **$100 million** capital contribution to JLL Income Property Trust in January 2025[176](index=176&type=chunk) - Financing activities were boosted by **$1,000.0 million** in proceeds from commercial paper issuance in Q1 2025, compared to none in Q1 2024[15](index=15&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide essential context to the financial statements, detailing interim information, new accounting standards, revenue recognition policies, business segment performance, goodwill and intangible assets, investment activities, fair value measurements, debt structure, commitments and contingencies, restructuring charges, and accumulated other comprehensive income [Note 1. Interim Information](index=8&type=section&id=Note%201.%20Interim%20Information) This note clarifies that the interim financial statements are unaudited and include only normal recurring adjustments. It highlights the historical seasonality of revenue and profits, with a general increase towards year-end, though annuity-based services have somewhat lessened this effect. Compensation expenses, particularly incentive-based, can fluctuate significantly quarterly - Quarterly revenue and profits historically increase as the year progresses, driven by year-end transaction focus in real estate, while certain expenses are recognized evenly[19](index=19&type=chunk) - Growth in Workplace Management, Property Management, and other annuity-based services has reduced seasonality[19](index=19&type=chunk) - Incentive compensation, a significant portion of compensation and benefits, is accrued based on annual targets, leading to potential quarterly fluctuations[20](index=20&type=chunk) [Note 2. New Accounting Standards](index=9&type=section&id=Note%202.%20New%20Accounting%20Standards) The company is evaluating the impact of two recently issued FASB ASUs: ASU 2023-09, which enhances income tax disclosures effective for annual periods after December 15, 2024, and ASU 2024-03, requiring disaggregated income statement expense disclosures for annual periods after December 15, 2026 - ASU 2023-09 (Income Taxes) is effective for annual periods beginning after December 15, 2024, and the company is evaluating its effect on tax disclosures[23](index=23&type=chunk) - ASU 2024-03 (Expense Disaggregation) is effective for annual periods beginning after December 15, 2026, and the company is evaluating its effect on disclosures[24](index=24&type=chunk) [Note 3. Revenue Recognition](index=9&type=section&id=Note%203.%20Revenue%20Recognition) Certain Capital Markets Services revenue, such as mortgage banking and servicing operations, is excluded from ASC Topic 606. The company also details its contract assets and liabilities, with most contract liabilities recognized as revenue within 90 days Revenue Excluded from ASC Topic 606 (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue excluded from scope of ASC Topic 606 | $70.4 | $67.2 | Contract Assets and Liabilities (in millions) | Metric | March 31, 2025 | December 31, 2024 | | :------------------ | :------------- | :---------------- | | Contract assets, net | $368.6 | $384.4 | | Contract liabilities | $140.9 | $154.7 | [Note 4. Business Segments](index=10&type=section&id=Note%204.%20Business%20Segments) Effective January 1, 2025, the company reorganized its segments, moving Property Management into Real Estate Management Services and renaming Capital Markets, LaSalle, and JLL Technologies. It now operates five global segments, with performance evaluated based on Adjusted EBITDA - Effective January 1, 2025, Property Management was moved from Leasing Advisory to Real Estate Management Services, and segments were renamed to Capital Markets Services, Investment Management, and Software and Technology Solutions[30](index=30&type=chunk) - The five global business segments are Real Estate Management Services, Leasing Advisory, Capital Markets Services, Investment Management, and Software and Technology Solutions[31](index=31&type=chunk)[36](index=36&type=chunk) - Segment results are measured and evaluated based on Adjusted EBITDA by the Global Executive Board (CODM)[35](index=35&type=chunk) Consolidated Adjusted EBITDA (in millions) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Real Estate Management Services | $66.3 | $71.4 | | Leasing Advisory | $97.0 | $74.8 | | Capital Markets Services | $48.6 | $25.0 | | Investment Management | $15.8 | $21.0 | | Software and Technology Solutions | $(2.9) | $(5.1) | | **Adjusted EBITDA - Consolidated** | **$224.8** | **$187.1** | [Note 5. Business Combinations, Goodwill and Other Intangible Assets](index=13&type=section&id=Note%205.%20Business%20Combinations%2C%20Goodwill%20and%20Other%20Intangible%20Assets) The company made no strategic acquisitions in Q1 2025 or Q1 2024 but paid $0.6 million for deferred acquisition obligations. Goodwill was reassigned and tested for impairment as of January 1, 2025, due to organizational changes, with no impairment found. Goodwill increased slightly due to exchange rate movements - No strategic acquisitions were completed in Q1 2025 or Q1 2024; **$0.6 million** was paid for deferred acquisition obligations in Q1 2025[44](index=44&type=chunk) Goodwill Movements by Segment (in millions) | Segment | Balance as of January 1, 2025 | Impact of exchange rate movements | Balance as of March 31, 2025 | | :-------------------------------- | :---------------------------- | :-------------------------------- | :--------------------------- | | Real Estate Management Services | $961.2 | $4.0 | $965.2 | | Leasing Advisory | $1,372.6 | $12.8 | $1,385.4 | | Capital Markets Services | $1,971.5 | $14.2 | $1,985.7 | | Investment Management | $55.9 | $0.5 | $56.4 | | Software and Technology Solutions | $250.1 | $(0.3) | $249.8 | | **Consolidated** | **$4,611.3** | **$31.2** | **$4,642.5** | - Goodwill was reassigned and tested for impairment as of January 1, 2025, following organizational structure changes, with no impairment identified[48](index=48&type=chunk)[49](index=49&type=chunk) [Note 6. Investments](index=15&type=section&id=Note%206.%20Investments) Total investments increased to $902.4 million as of March 31, 2025, primarily driven by Investment Management co-investments. The company has significant unfunded commitments and reports most investments at fair value, with changes recognized in Equity earnings/losses Summarized Investment Balances (in millions) | Investment Type | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Investment Management co-investments | $514.5 | $406.1 | | Software and Technology Solutions investments | $352.9 | $372.8 | | Other investments | $35.0 | $33.8 | | **Total** | **$902.4** | **$812.7** | - Unfunded commitments to direct investments or investment vehicles totaled **$192.2 million** for Investment Management and **$8.8 million** for Software and Technology Solutions as of March 31, 2025[56](index=56&type=chunk) Fair Value Investments Movement (in millions) | Metric | 2025 | 2024 | | :-------------------------------- | :----- | :----- | | Fair value investments as of January 1, | $742.0 | $740.8 | | Investments | $115.7 | $15.6 | | Change in fair value, net | $(27.7) | $(3.1) | [Note 7. Fair Value Measurements](index=16&type=section&id=Note%207.%20Fair%20Value%20Measurements) The company measures certain assets and liabilities at fair value using a three-tier hierarchy. It details the fair value of long-term debt, investments, foreign currency forward contracts, warehouse receivables, deferred compensation, earn-out liabilities, and mortgage banking derivatives, with significant unobservable inputs (Level 3) used for certain investments, earn-outs, and mortgage banking derivatives - The fair value of long-term debt was **$797.5 million** as of March 31, 2025, compared to its carrying value of **$772.1 million**[63](index=63&type=chunk) Recurring Fair Value Measurements (in millions) as of March 31, 2025 | Asset/Liability | Level 1 | Level 2 | Level 3 | | :-------------------------------- | :------ | :------ | :------ | | Investments - fair value | $44.0 | — | $311.0 | | Warehouse receivables | — | $601.6 | — | | Deferred compensation plan assets | — | $673.4 | — | | Mortgage banking derivative assets | — | — | $71.4 | | Earn-out liabilities | — | — | $37.5 | | Mortgage banking derivative liabilities | — | — | $54.7 | - Foreign currency forward contracts had a gross notional value of **$2.16 billion** and a net basis of **$0.96 billion** as of March 31, 2025, used to manage currency exchange rate risk[74](index=74&type=chunk) [Note 8. Debt](index=22&type=section&id=Note%208.%20Debt) Total debt increased significantly to $2,168.0 million as of March 31, 2025, from $1,198.4 million at December 31, 2024, primarily due to increased commercial paper and credit facility utilization. The company maintains a $2.5 billion commercial paper program and a $3.3 billion unsecured revolving credit facility, and remains in compliance with all debt covenants Debt Obligations (in millions) | Debt Type | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Short-term debt, net | $986.6 | $353.1 | | Credit facility, net | $409.3 | $88.6 | | Long-term senior notes | $772.1 | $756.7 | | **Total debt, net** | **$2,168.0** | **$1,198.4** | - The company has a **$2.5 billion** commercial paper program and a **$3.3 billion** unsecured revolving credit facility maturing in November 2028[88](index=88&type=chunk)[89](index=89&type=chunk) Average Borrowings and Interest Rate (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------- | :-------------------------------- | :-------------------------------- | | Average outstanding borrowings | $1,003.3 | $1,056.7 | | Average effective interest rate | 5.0% | 6.1% | - The company was in compliance with all financial and other covenants as of March 31, 2025[94](index=94&type=chunk) [Note 9. Commitments and Contingencies](index=25&type=section&id=Note%209.%20Commitments%20and%20Contingencies) The company is involved in various litigation matters, which are not expected to have a material adverse effect on its financial position. It manages professional indemnity risk through a captive insurance company and participates in the DUS program, retaining a portion of loan loss risk, with no loan losses incurred in Q1 2025 or Q1 2024 - Professional indemnity accrual decreased from **$4.2 million** at December 31, 2024, to **$2.0 million** at March 31, 2025, after **$2.4 million** in claims paid[101](index=101&type=chunk) - Under the DUS program, the company had **$23.4 billion** in loans subject to loss-sharing arrangements as of March 31, 2025, with a loan loss guarantee reserve of **$27.6 million**[102](index=102&type=chunk)[104](index=104&type=chunk) - No loan losses were incurred under the DUS program during the three months ended March 31, 2025, or 2024[103](index=103&type=chunk) [Note 10. Restructuring and Acquisition Charges](index=26&type=section&id=Note%2010.%20Restructuring%20and%20Acquisition%20Charges) Restructuring and acquisition charges significantly increased to $19.7 million in Q1 2025 from $1.7 million in Q1 2024, primarily due to a year-over-year change in fair value adjustments to earn-out liabilities Restructuring and Acquisition Charges (in millions) | Charge Type | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Severance and other employment-related charges | $7.4 | $4.5 | | Restructuring, pre-acquisition and post-acquisition charges | $7.7 | $7.4 | | Stock-based compensation expense for post-acquisition retention awards | $0.7 | $0.3 | | Fair value adjustments to earn-out liabilities | $3.9 | $(10.5) | | **Total Restructuring and acquisition charges** | **$19.7** | **$1.7** | [Note 11. Accumulated Other Comprehensive Income (Loss) by Component](index=26&type=section&id=Note%2011.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29%20by%20Component) Accumulated other comprehensive loss improved from $(646.9) million at December 31, 2024, to $(610.6) million at March 31, 2025, primarily driven by positive foreign currency translation adjustments Changes in Accumulated Other Comprehensive Income (Loss) (in millions) | Component | Balance as of December 31, 2024 | Other comprehensive (loss) income before reclassification | Balance as of March 31, 2025 | | :-------------------------------- | :------------------------------ | :------------------------------------------------------ | :--------------------------- | | Pension and postretirement benefit | $(55.5) | $(0.5) | $(56.0) | | Cumulative foreign currency translation adjustment | $(591.4) | $36.8 | $(554.6) | | **Total** | **$(646.9)** | **$36.3** | **$(610.6)** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a comprehensive analysis of the company's financial performance, condition, and liquidity for the three months ended March 31, 2025. It discusses critical accounting policies, factors affecting comparability, detailed operating results by segment, and an overview of liquidity and capital resources [Summary of Critical Accounting Policies and Estimates](index=27&type=section&id=Summary%20of%20Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies and estimates, detailed in its 2024 Annual Report on Form 10-K, remain unchanged for the three months ended March 31, 2025. These estimates involve significant management judgment and impact financial statement amounts - No material changes to critical accounting policies and estimates occurred during the three months ended March 31, 2025[113](index=113&type=chunk) [Items Affecting Comparability](index=27&type=section&id=Items%20Affecting%20Comparability) Comparability of results is influenced by macroeconomic conditions, geopolitical environment, real estate and financial markets, timing of acquisitions and dispositions, and the inherent variability of transaction-based revenues and equity earnings. Foreign currency fluctuations and seasonality also impact period-to-period comparisons - Macroeconomic trends, geopolitical environment, global/regional real estate markets, and financial/credit markets significantly influence operating results and variability[114](index=114&type=chunk) - Transaction-based revenues (e.g., investment sales, leasing, incentive fees) and equity earnings (e.g., valuation changes, asset dispositions) can vary significantly due to their size and timing[117](index=117&type=chunk)[118](index=118&type=chunk) - The company typically reports smaller revenue and profit in Q1, increasing throughout the year, due to real estate industry's year-end transaction focus and constant non-variable expenses[121](index=121&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Consolidated revenue increased by 13% in local currency, driven by strong growth in both resilient and transactional businesses. Adjusted EBITDA saw a 20% increase, while net income attributable to common shareholders decreased due to higher equity losses and restructuring charges. The section also defines non-GAAP measures and provides detailed segment performance [Consolidated Operating Results](index=29&type=section&id=Consolidated%20Operating%20Results) Consolidated revenue grew by 13% in local currency, with strong performance across most segments. Operating income increased by 4% in local currency, and Adjusted EBITDA rose by 20% in local currency, despite a significant increase in equity losses Consolidated Operating Results (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | Change in U.S. dollars | % Change in Local Currency | | :-------------------------------- | :----- | :----- | :--------------------- | :------------------------- | | Revenue | $5,746.4 | $5,124.5 | $621.9 | 13% | | Total operating expenses | $5,626.4 | $5,010.3 | $616.1 | 14% | | Operating income | $120.0 | $114.2 | $5.8 | 4% | | Equity losses | $(25.6) | $(3.7) | $(21.9) | (593)% | | Adjusted EBITDA | $224.8 | $187.1 | $37.7 | 20% | [Non-GAAP Financial Measures](index=30&type=section&id=Non-GAAP%20Financial%20Measures) Management uses non-GAAP measures like Adjusted EBITDA and local currency percentage changes to assess core operating performance. Adjustments include excluding non-cash MSR and mortgage banking derivative activity, restructuring and acquisition charges, gain/loss on disposition, interest on employee loans, equity earnings/losses from Investment Management and Software and Technology Solutions, and credit losses on convertible note investments - Adjusted EBITDA and local currency percentage changes are key non-GAAP measures used for budgeting, performance measurement, and comparability[126](index=126&type=chunk)[132](index=132&type=chunk) - Adjustments to GAAP measures primarily exclude non-cash items or those not indicative of core operating performance, such as non-cash MSR activity, restructuring charges, and certain equity earnings/losses[127](index=127&type=chunk)[128](index=128&type=chunk)[131](index=131&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income attributable to common shareholders | $55.3 | $66.1 | | Add: Interest expense, net of interest income | $24.6 | $30.5 | | Add: Income tax provision | $14.0 | $15.9 | | Add: Depreciation and amortization | $70.7 | $60.0 | | Adjustments: Restructuring and acquisition charges | $19.7 | $1.7 | | Adjustments: Net non-cash MSR and mortgage banking derivative activity | $12.9 | $9.0 | | Adjustments: Equity losses - Investment Management and Software and Technology Solutions | $28.7 | $4.9 | | **Adjusted EBITDA** | **$224.8** | **$187.1** | [Revenue Analysis](index=33&type=section&id=Revenue%20Analysis) Consolidated revenue increased by 13% in local currency, driven by strong growth in both Resilient revenues (up 13%, led by Workplace Management and Project Management) and Transactional revenues (up 14%, led by Leasing and Investment Sales, Debt/Equity Advisory and Other) - Consolidated revenue increased **13%** in local currency compared to the prior-year quarter[140](index=140&type=chunk) - Resilient revenues collectively grew **13%**, with Workplace Management up **15%** and Project Management up **16%**[140](index=140&type=chunk) - Transactional revenue increased **14%**, led by Leasing (up **15%**) and Investment Sales, Debt/Equity Advisory and Other (up **22%**, excluding non-cash MSR activity)[140](index=140&type=chunk) [Operating Expenses Analysis](index=33&type=section&id=Operating%20Expenses%20Analysis) Consolidated operating expenses rose 14% to $5.6 billion, primarily due to a 14% increase in gross contract costs from growth in client pass-through businesses and an 11% increase in platform operating expenses, reflecting revenue-related growth and investments in technology and AI - Consolidated operating expenses were **$5.6 billion** for Q1 2025, up **14%** from Q1 2024[143](index=143&type=chunk) - Gross contract costs increased **14%** to **$3.9 billion**, driven by growth in businesses with higher client pass-through expenses (Workplace Management, Property Management)[143](index=143&type=chunk) - Platform operating expenses increased **11%** to **$1.7 billion**, due to revenue-related growth and investments in technology and AI capabilities[143](index=143&type=chunk) - Restructuring and acquisition charges increased significantly to **$19.7 million** in Q1 2025, mainly due to fair value adjustments to earn-out liabilities[144](index=144&type=chunk)[145](index=145&type=chunk) [Interest Expense](index=34&type=section&id=Interest%20Expense) Net interest expense decreased to $24.6 million in Q1 2025 from $30.5 million in Q1 2024, primarily due to a lower effective interest rate and reduced average borrowings Interest Expense, Net of Interest Income (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Interest expense, net of interest income | $24.6 | $30.5 | - Lower interest expense resulted from a lower effective interest rate and lower average borrowings[146](index=146&type=chunk) [Equity (Losses) Earnings](index=34&type=section&id=Equity%20%28Losses%29%20Earnings) Equity losses significantly increased to $25.6 million in Q1 2025 from $3.7 million in Q1 2024, primarily driven by valuation declines in investments within Software and Technology Solutions and Investment Management Equity (Losses) Earnings by Segment (in millions) | Segment | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Investment Management | $(6.1) | $(3.9) | | Software and Technology Solutions | $(21.5) | $(1.0) | | Other | $2.0 | $1.2 | | **Total Equity losses** | **$(25.6)** | **$(3.7)** | - The increase in equity losses was largely attributable to valuation declines of investments within Software and Technology Solutions[147](index=147&type=chunk) [Income Taxes](index=34&type=section&id=Income%20Taxes) The income tax provision for Q1 2025 was $14.0 million, resulting in an effective tax rate (ETR) of 19.5%, consistent with Q1 2024. The company does not expect a material impact from Pillar Two taxation in 2025 Income Tax Provision and Effective Tax Rate (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Income tax provision | $14.0 | $15.9 | | Effective tax rate (ETR) | 19.5% | 19.5% | - Pillar Two taxation legislation enacted through March 31, 2025, is not expected to have a material impact on the effective tax rate for the full year 2025[150](index=150&type=chunk) [Net Income and Adjusted EBITDA](index=35&type=section&id=Net%20Income%20and%20Adjusted%20EBITDA) Net income attributable to common shareholders decreased to $55.3 million in Q1 2025 from $66.1 million in Q1 2024, primarily due to higher equity losses and restructuring charges. Conversely, Adjusted EBITDA increased to $224.8 million from $187.1 million, as these excluded items are not factored into Adjusted EBITDA Net Income and Adjusted EBITDA (in millions) | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income attributable to common shareholders | $55.3 | $66.1 | | Adjusted EBITDA | $224.8 | $187.1 | - The decrease in net income was driven by higher equity losses from Software and Technology Solutions and Investment Management, and increased restructuring and acquisition charges[151](index=151&type=chunk) [Segment Operating Results](index=35&type=section&id=Segment%20Operating%20Results) This section provides a detailed breakdown of the financial performance for each of the company's five business segments, highlighting revenue drivers, expense trends, and Adjusted EBITDA changes, reflecting the impact of recent organizational restructuring and market dynamics [Real Estate Management Services](index=36&type=section&id=Real%20Estate%20Management%20Services) Revenue grew 14% in local currency, driven by strong performance in Workplace Management (up 15%) and Project Management (up 16%). However, Adjusted EBITDA declined by 9% due to increased investments in technology and human capital that outpaced revenue growth Real Estate Management Services Performance (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | % Change in Local Currency | | :-------------------------------- | :----- | :----- | :------------------------- | | Revenue | $4,569.4 | $4,069.2 | 14% | | Workplace Management revenue | $3,263.6 | $2,871.7 | 15% | | Project Management revenue | $747.5 | $656.4 | 16% | | Adjusted EBITDA | $66.3 | $71.4 | (9)% | - Revenue growth was driven by client wins and mandate expansions in Workplace Management and increases in the U.S. and Asia Pacific for Project Management[158](index=158&type=chunk) - Adjusted EBITDA decline was due to investments in the technology platform (including AI) and human capital, which outpaced revenue growth[159](index=159&type=chunk)[160](index=160&type=chunk) [Leasing Advisory](index=37&type=section&id=Leasing%20Advisory) Leasing Advisory revenue increased 13% in local currency, primarily from broad-based leasing growth across asset classes and geographies, notably in the U.S., Canada, Greater China, and Germany. This revenue growth, coupled with improved platform leverage, led to a 29% increase in Adjusted EBITDA Leasing Advisory Performance (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | % Change in Local Currency | | :-------------------------------- | :----- | :----- | :------------------------- | | Revenue | $586.1 | $520.4 | 13% | | Leasing revenue | $566.1 | $497.3 | 15% | | Adjusted EBITDA | $97.0 | $74.8 | 29% | - Global office leasing grew **18%** over the prior-year quarter, outperforming market volume growth of **9%**[161](index=161&type=chunk) - Higher Adjusted EBITDA was largely driven by revenue growth and improved platform leverage[162](index=162&type=chunk) [Capital Markets Services](index=38&type=section&id=Capital%20Markets%20Services) Revenue for Capital Markets Services grew 16% in local currency, fueled by strong performance in debt advisory (over 45% growth) and investment sales (approximately 15% growth), particularly in the U.S. This led to a significant 90% increase in Adjusted EBITDA, as revenue growth outpaced operating expenses Capital Markets Services Performance (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | % Change in Local Currency | | :-------------------------------- | :----- | :----- | :------------------------- | | Revenue | $435.3 | $377.6 | 16% | | Investment Sales, Debt/Equity Advisory and Other revenue | $312.6 | $258.7 | 21% | | Adjusted EBITDA | $48.6 | $25.0 | 90% | - Debt advisory grew over **45%** and investment sales were up approximately **15%**, with U.S. investment sales growing approximately **46%**, outperforming the broader market[164](index=164&type=chunk) - Adjusted EBITDA improvement was largely attributable to transactional revenue growth and continued improvement in platform leverage[166](index=166&type=chunk) [Investment Management](index=39&type=section&id=Investment%20Management) Investment Management revenue declined 4% in local currency, primarily due to lower advisory fees resulting from decreased assets under management (AUM). This, combined with increased operating expenses from foreign currency transaction losses, led to a 22% decrease in Adjusted EBITDA Investment Management Performance (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | % Change in Local Currency | | :-------------------------------- | :----- | :----- | :------------------------- | | Revenue | $98.5 | $103.4 | (4)% | | Advisory fees | $89.3 | $92.3 | (2)% | | Adjusted EBITDA | $15.8 | $21.0 | (22)% | | Equity losses | $(6.1) | $(3.9) | (60)% | - Advisory fees declined due to lower AUM, reflecting asset dispositions in Q4 2024[169](index=169&type=chunk) - AUM decreased **7%** in USD (**4%** in local currency) during the quarter to **$82.3 billion**[170](index=170&type=chunk) [Software and Technology Solutions](index=40&type=section&id=Software%20and%20Technology%20Solutions) Software and Technology Solutions revenue grew 6% in local currency, driven by increased software bookings. Adjusted EBITDA improved by 37% due to a higher year-over-year carried interest benefit and increased revenue, despite higher revenue-related expenses. However, equity losses significantly increased Software and Technology Solutions Performance (Three Months Ended March 31, in millions) | Metric | 2025 | 2024 | % Change in Local Currency | | :-------------------------------- | :----- | :----- | :------------------------- | | Revenue | $57.1 | $53.9 | 6% | | Adjusted EBITDA | $(2.9) | $(5.1) | 37% | | Equity losses | $(21.5) | $(1.0) | n.m. | - Revenue growth was due to increased bookings from software, partially offset by technology solutions[172](index=172&type=chunk) - Adjusted EBITDA improvement was a product of the change in carried interest benefit and higher revenue, partially tempered by revenue-related expense growth[173](index=173&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company finances its operations through internal funds, credit facilities, and commercial paper. Operating activities used more cash in Q1 2025, while financing activities provided more cash due to commercial paper utilization. Investing activities increased significantly due to a large capital contribution to an Investment Management fund. The company also details its debt, investment, capital expenditure, acquisition, and share repurchase activities - Operating activities used **$767.6 million** of cash in Q1 2025, an increase from **$677.5 million** in Q1 2024, primarily due to timing of reimbursables and higher commission payments[175](index=175&type=chunk) - Investing activities used **$152.8 million** of cash in Q1 2025, up from **$54.3 million** in Q1 2024, mainly due to a **$100 million** contribution to JLL Income Property Trust[176](index=176&type=chunk) - Financing activities provided **$900.7 million** of cash in Q1 2025, compared to **$703.4 million** in Q1 2024, driven by the utilization of the commercial paper program[177](index=177&type=chunk) Outstanding Borrowings (in millions) | Borrowing Type | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Outstanding borrowings under the Facility | $420.0 | $100.0 | | Short-term borrowings | $88.3 | $153.8 | | Outstanding commercial paper | $900.0 | $200.0 | - As of March 31, 2025, **$993.4 million** remained authorized for repurchases under the share repurchase program[189](index=189&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from interest rate fluctuations on variable-rate debt and foreign currency exchange rate movements. A 50 basis point increase in short-term interest rates would result in an incremental $1.3 million interest expense for Q1 2025. Approximately 36% of total revenue is exposed to foreign exchange rates, with the British pound and Euro being significant functional currencies - A **50 basis point** increase in short-term interest rates would result in an incremental **$1.3 million** of interest expense for the three months ended March 31, 2025[194](index=194&type=chunk) Revenue Exposure to Foreign Exchange Rates | Currency | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | British pound | 7% | 8% | | Euro | 6% | 6% | | Other | 23% | 25% | | **Total revenue exposed to foreign exchange rates** | **36%** | **39%** | - The company uses foreign currency forward contracts to manage currency exchange rate risk related to intercompany lending and cash management practices[198](index=198&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) The company's disclosure controls and procedures were evaluated and deemed effective as of March 31, 2025. There were no material changes to internal control over financial reporting during the quarter - Disclosure controls and procedures were effective as of March 31, 2025[200](index=200&type=chunk) - No material changes to internal control over financial reporting occurred during the quarter ended March 31, 2025[200](index=200&type=chunk) Part II. Other Information [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, some with substantial claims. While many are covered by insurance, the ultimate liability is not determinable, but management believes the resolution will not materially adversely affect its financial position, results of operations, or liquidity - The company is a defendant or plaintiff in various litigation matters, some involving substantial claims for damages[201](index=201&type=chunk) - Management believes the ultimate resolution of these claims will not have a material adverse effect on the company's financial position, results of operations, or liquidity[201](index=201&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes to risk factors were reported since the 2024 Annual Report on Form 10-K[202](index=202&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased 75,334 shares of common stock for a total of $19.8 million under its publicly announced plan. As of March 31, 2025, $993.4 million remained authorized for repurchases Equity Securities Repurchases (Q1 2025) | Period | Total number of shares purchased | Weighted average price paid per share | | :-------------------------------- | :----------------------------- | :------------------------------------ | | January 1, 2025 - January 31, 2025 | 24,456 | $261.59 | | February 1, 2025 - February 28, 2025 | 23,471 | $275.15 | | March 1, 2025 - March 31, 2025 | 27,407 | $253.28 | | **Total** | **75,334** | | - As of March 31, 2025, **$993.4 million** remained authorized for repurchases under the share repurchase program[204](index=204&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) Andy Poppink, CEO of Leasing Advisory, entered into a pre-planned stock trading arrangement (Rule 10b5-1 plan) on March 21, 2025, to sell up to 13,820 shares over approximately eleven months, starting no earlier than June 20, 2025. No other directors or officers adopted or terminated similar trading plans during the quarter - Andy Poppink, CEO of Leasing Advisory, entered into a Rule 10b5-1 trading plan on March 21, 2025, to sell up to **13,820 shares** of common stock[205](index=205&type=chunk) - Sales under the plan may commence no earlier than June 20, 2025, and will terminate on May 29, 2026[205](index=205&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Amended and Restated Severance Pay Plan, CEO and CFO certifications (Sarbanes-Oxley Act Sections 302 and 906), and Inline XBRL documents - Exhibits include the Amended and Restated Severance Pay Plan, CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, and Inline XBRL documents[207](index=207&type=chunk) [Signature](index=43&type=section&id=Signature) The report was duly signed on behalf of Jones Lang LaSalle Incorporated by Karen Brennan, Chief Financial Officer, on May 7, 2025, pursuant to the requirements of the Securities Exchange Act of 1934 - The report was signed by Karen Brennan, Chief Financial Officer, on May 7, 2025[208](index=208&type=chunk)[209](index=209&type=chunk)