Jones Lang LaSalle Incorporated Company History

And so on those buildings, you will see an increase in vacancy rates. But at the same time, we see good demand on the best space in all of those markets. And that’s why we still have that very unusual situation which we saw around the world in every major market in ‘22, that vacancy rates went up and the top rents went also up.

• All considered, we remain focused on achieving our full year 2023 target adjusted EBITDA margin range of 14% to 16%.
• From tech startups to global firms, our clients span industries including banking, energy, healthcare, law, life sciences, manufacturing, and technology.
• We expect the investments to help accelerate growth as a recovery unfolds.
• And then very strong performance in the fourth quarter 18% plus, that would be to achieve something close to a 14% margin.

JLL’s acquisition of this exceptional firm aligns with one of the key priorities of JLL’s Beyond strategic vision, which is to grow its Capital Markets business. The combination of JLL and HFF enables greatly enhanced capital markets services and significantly expanded client reach. Clients will benefit from a global team of more than 3,700 capital markets professionals across 47 countries, delivering new expertise and scale, more extensive market coverage and greater deal flow.

We made a very thorough review of our LaSalle business and the portfolio where we have equity in there. And even if we have to take some write-downs on a quarter basis, we are very confident that we will recover that over the coming years. And on the JLL T side, it’s a pretty similar picture, there may be some smaller investments, which will face some challenges over the coming quarters. But more importantly, some of our very large investments have a really strong medium term outlook.

LaSalle is one of the world’s leading investment managers

Jones Lang LaSalle Incorporated, a professional services company, provides real estate and investment management services in Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company’s new and expanded programs will focus on attracting, developing and retaining diverse talent by targeting systemic challenges in the CRE sector. Moving forward, JLL plans to leverage its diversity, inclusion and equity work in the U.S. as a blueprint for taking further broad actions across the globe to accelerate industry progress. For the last three months, six of the eight Wall Street analysts with JLL in their coverage universe have revised their respective FY 2023 bottom line projections for the company. In specific terms, the sell-side’s consensus current year normalized EPS estimate for Jones Lang LaSalle was lowered by -25.7% in the same time frame. In other words, JLL’s earnings are expected to contract by -41.2% for this year.

• Karen and I look forward to speaking with you again following the second quarter.
• Returned to office assets are driving an uptick in attendance rates across much of the US.
• Although global fundraising has slowed, elevated levels of capital remain on the sidelines with dry powder and closed end funds now worth $389 billion globally.

Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. That wasn’t the case last year for the reasons you all know; this year will be particularly pronounced on relying on that fourth quarter performance. But for the time being, we have no reason to believe that it will not come because our working hand in the different business lines give us the confidence that we can still hold up to that 14% the counter trend move to 16%. So first, let’s just recap what happened in the first quarter on the positive, we had improvements in our working capital. That were primarily from improvements in trade receivables collections, and then also lower accrued comp, because we had lower bonus and commission payments in the first quarter relating to the prior year. We also had some headwinds in our working capital, an extra pay period and then some growth of the work dynamics business impacting the reimbursable and the timing of that reimbursable cycle.

But still we are confident that we deliver against our own plan. I kick it from a high level and then I’ll hand it over to Karen for more detail. As we said, we had a couple of pretty significant wins over the last weeks. And the usual pattern is when you onboard those contracts, you have a lot of costs. And then over the time of the contract, which is usually five years, you kind of re-earn those losses of the beginning to onboard those contracts.

Jones Lang LaSalle’s relatively higher exposure to capital markets as compared to its key listed peers might have driven the company’s stock price underperformance. Well, first of all, we tend to be very conservative, and we wouldn’t reinstate our 14% to 16% margin guidance if we weren’t believing in it. We clearly have continuous delivery: a maturity assessment model looked at all of our assumptions, we made various scenario planning, what could happen along those lines, obviously, which was much more detailed. How I kind of explained it to you earlier business line by business line within the business line by segment, what type of risk do we see if something goes wrong this year.

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A London-based investment advisor, CIN Property Management Limited, was added two years later, followed by the acquisition of a property and development management company named Galbreath Company in 1997. After completing its initial public offering of stock in July 1997, LaSalle Partners purchased the project management business belonging to Satulah Group in January 1998. Later in the year, the company purchased the fourth largest management services firm in the United States, COMPASS Management and Leasing, Inc. In its last major transaction before its merger with Jones Lang Wootton, LaSalle Partners acquired the U.S. retail property management business of Lend Lease Real Estate Investments, Inc., completing the deal in October 1998. Fee revenue grew 29% and acceleration from fourth quarter 2022 organic growth of 21%. An existing large enterprise clients continue to increase their utilization of our platform, particularly our solutions and services offerings.

JLL Spark:

Looking at the two periods on a stacked year-over-year growth basis in USD, they totaled a 17% increase. First quarter adjusted EBITDA was $109 million, down 61% and the adjusted EBITDA margin contracted 780 basis points to 6.6%. The declines are mostly attributable to the drop in fee revenue and our leasing and investment sales, debt and equity advisory business lines as well as a $21 million adverse change in equity earnings. The lower equity earnings contributed approximately 130 basis points to the margin decline. Higher fixed compensation expense tied to growth related investments and headcount during the first nine months of 2022 was also a headwind to profitability, partially offset by the ongoing cost reduction actions we discussed last quarter. Adjusted EPS of $0.65 declined 84% driven in part by higher interest on top of the lower adjusted EBITDA, partially offset by a 5% reduction in the average share count.

We help buy, build, occupy and invest in a variety of assets including industrial, commercial, retail, residential and hotel real estate. From tech startups to global firms, our clients span industries including banking, energy, healthcare, law, life sciences, manufacturing, and technology. JLL is also furthering a workplace of inclusion through the Best Buddies Jobs program. Since 2017, JLL has partnered with Best Buddies to advance career opportunities for people with intellectual and developmental disabilities.

Jones Lang LaSalle Inc

Equity earnings in the quarter were driven by a handful of valuation increases, largely reflecting subsequent financing rounds at increased valuations. Overall, we are pleased with the underlying performance of work dynamics business and are confident in the segment’s growth trajectory. The first quarter was one of the strongest on record for new sales, as measured by contract wins and expansion, and had a 98% contract renewal rate, supporting growing momentum for the rest of the year and into 2024.

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The company plans to continue building on its strong progress in 2020, where JLL spent nearly $1 billion with diverse and small businesses in the Americas alone and aims to increase its spending with minority suppliers to $1.5B by 2025. Additionally, the company will host its fourth annual Supplier Diversity Summit in August what is swing trading for dummies to better understand the needs and opportunities of its vendors and partners. Since the program launch, many other business lines have followed this blueprint and developed similar mentoring programs with diverse new hires and existing employees. The changes JLL is making are already having a notable impact this year.

Separately, there are positive read-throughs from the market’s consensus financial projections for Jones Lang LaSalle. In the preceding section, I noted that JLL’s consensus fiscal 2023 bottom line forecast was cut by -25.7% in the past three months. In comparison, the company’s fiscal 2024 and fiscal 2025 consensus normalized EPS projections were reduced to a lesser extent by -12.8% and -9.7%, respectively. In fact, the market still sees JLL’s core earnings growing by +53.6% and +21.3% for FY 2024 and FY 2025, respectively. Analysts also predict that Jones Lang LaSalle’s FY 2026 adjusted EPS of $20.55 will set a new historical high. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking.

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Offices were established in New Zealand, Singapore, Kuala Lumpur, Hong Kong, and Tokyo. As the company fleshed out its presence in the Southeast Asia and Pacific regions, it also broadened the scope of its operations closer to home. Jones Lang Wootton expanded into Scotland in 1962 and into Ireland in 1965, followed by a push into continental Europe. An office was opened in Brussels in 1965, paving the way for expansion into Holland, France, and Germany. Mindful of opportunities to the east, the company opened offices in Budapest, Prague, and Warsaw.