Jones Lang LaSalle(JLL) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for the year ended December 31, 2024, was $23,432.9 million, representing a 13$20,760.8 million in 2023[352]. - Operating income increased by 51% to $868.1 million in 2024, compared to$576.5 million in 2023[352]. - Net income attributable to common shareholders was $546.8 million, or$11.30 per diluted share, compared to $225.4 million, or$4.67 per diluted share in 2023[381]. - Adjusted EBITDA for 2024 was $1,186.3 million, a 26$938.4 million in 2023[366]. - The company’s comprehensive income attributable to common shareholders was $491.4 million in 2024, up from$282.1 million in 2023, reflecting a growth of 74.3%[459]. - Basic earnings per common share improved to $11.51 in 2024, up from$4.73 in 2023, indicating a growth of 143.5%[459]. - Cash flows from operating activities improved to $785.3 million in 2024, up from$575.8 million in 2023[407]. Revenue Breakdown - Revenue from the United States dollar accounted for 61.5% of total revenue in 2024, up from 59.0% in 2023[347]. - The company reported a 15% increase in Work Dynamics revenue, reaching $16,197.6 million in 2024, compared to$14,131.1 million in 2023[352]. - Workplace Management revenue grew by 17% to $12,529.7 million, contributing to the overall revenue increase in the Work Dynamics segment[392]. - Capital Markets revenue increased by 15$2,040.4 million, driven by strong investor sentiment and activity in Investment Sales[389]. - Transactional revenue grew by 11%, with Leasing and Investment Sales showing strong performance, up 11% and 20% respectively[371][389]. Expenses and Liabilities - Total operating expenses increased by 12% to $22,564.8 million in 2024, up from$20,184.3 million in 2023[352]. - The provision for income taxes was $132.5 million, resulting in an effective tax rate of 19.5$9,868.7 million in 2024, up from $9,654.9 million in 2023[457]. - Total operating expenses for 2024 were$22,564.8 million, an increase of 11.8% from $20,184.3 million in 2023[459]. Investments and Assets - The company invested in proptech funds and early to mid-stage companies to enhance its strategic position in the real estate technology landscape[316]. - Total assets increased to$16,763.8 million as of December 31, 2024, compared to $16,064.8 million in 2023[457]. - JLL Technologies had a carrying value of$812.7 million in investments as of December 31, 2024, primarily in early to mid-stage proptech companies[417]. - The company utilized $316.8 million for investing activities in 2024, an increase from$290.4 million in 2023, due to higher business acquisition volumes[408]. Tax and Goodwill - The company’s global effective tax rate is sensitive to changes in geographic profitability and is evaluated quarterly[322]. - The company evaluates goodwill for impairment at least annually, with the largest asset on the balance sheet being goodwill[310]. Market and Economic Influences - The company’s results are significantly influenced by macroeconomic trends, geopolitical environment, and global real estate markets[330]. - If interest rates were to increase by 50 basis points during 2024, the company's interest expense would rise by $6.9 million[341]. Operational Insights - The company employs over 112,000 employees, with approximately 53,900 being reimbursed by clients[468]. - The company has operations in over 90 countries, contributing to its global tax structure complexity[444]. - The company maintained effective internal control over financial reporting as of December 31, 2024[449]. Revenue Recognition - The company’s revenue recognition involves complex judgments regarding performance obligations and timing, impacting transaction commissions and advisory fees[309]. - Revenue recognition for LaSalle's transaction fees and incentive fees is generally constrained until all contingencies have cleared[498]. - JLL's performance obligation in Capital Markets is generally satisfied at the point in time upon which the performance obligation is met, leading to immediate revenue recognition[484]. Equity and Shareholder Information - Equity losses from JLL Technologies and LaSalle decreased by 64$76.4 million in 2024, down from $201.7 million in 2023[366]. - Company shareholders' equity increased to$6,771.5 million in 2024, compared to $6,293.8 million in 2023[457].