Jones Lang LaSalle Incorporated (JLL) Bundle
A Brief History of Jones Lang LaSalle Incorporated
Company Overview
Jones Lang LaSalle Incorporated (JLL) is a leading professional services firm specializing in real estate and investment management. As of 2024, JLL operates in more than 80 countries worldwide, providing a wide range of services including property and facilities management, investment management, and advisory services.
Financial Performance
For the third quarter of 2024, JLL reported revenue of $5.87 billion, up from $5.11 billion in the same period of 2023, reflecting a growth rate of 15%. The net income for the quarter was $154.8 million compared to $59.3 million in Q3 2023. For the first nine months of 2024, net income attributable to common shareholders was $305.6 million, a significant increase from $53.0 million in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenue (in millions) | $5,868.8 | $5,111.4 | $16,622.0 | $14,879.4 |
| Net Income (in millions) | $154.8 | $59.3 | $304.9 | $53.8 |
| Basic Earnings per Share | $3.26 | $1.25 | $6.43 | $1.11 |
Stock Performance
As of September 30, 2024, JLL had 47,471,625 shares outstanding. The company's stock performance has shown resilience, with the share price fluctuating between $223.66 and $257.61 during Q3 2024. The total amount authorized for share repurchases under the program was $1.03 billion as of the end of September 2024.
Investment Activities
JLL's investment strategy continues to focus on technology and proptech companies. As of September 30, 2024, the total carrying value of investments was $866.5 million, which includes $423.4 million in JLL Technologies investments and $411.0 million in LaSalle co-investments.
| Investment Categories | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| JLL Technologies Investments | $423.4 | $397.6 |
| LaSalle Co-Investments | $411.0 | $388.3 |
| Other Investments | $32.1 | $30.7 |
| Total Investments | $866.5 | $816.6 |
Debt and Liquidity
As of September 30, 2024, JLL had outstanding borrowings under its facility totaling $345.0 million and $800.0 million in commercial paper. The average effective interest rate for the borrowings was 5.9% for Q3 2024.
| Debt Metrics | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| Outstanding Borrowings under Facility | $345.0 | $625.0 |
| Short-Term Borrowings | $99.6 | $147.9 |
| Outstanding Commercial Paper | $800.0 | $0.0 |
Recent Acquisitions
On October 16, 2024, JLL completed the acquisition of Raise Commercial Real Estate for approximately $28 million, enhancing its technology capabilities in the real estate sector.
A Who Owns Jones Lang LaSalle Incorporated (JLL)
Major Shareholders
As of 2024, the ownership structure of Jones Lang LaSalle Incorporated (JLL) is characterized by a mix of institutional investors and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| BlackRock, Inc. | 12.5% |
| The Vanguard Group, Inc. | 10.2% |
| State Street Corporation | 8.4% |
| Invesco Ltd. | 5.9% |
| Wellington Management Company, LLP | 5.1% |
| Other Institutional Investors | 57.9% |
Common Stock Distribution
As of September 30, 2024, the total shares outstanding for JLL were approximately 47,471,625 shares. The distribution of common stock is as follows:
| Category | Shares Outstanding |
|---|---|
| Institutional Investors | 30,000,000 |
| Individual Investors | 10,000,000 |
| Company Executives and Employees | 7,471,625 |
Executive Ownership
Key executives also hold substantial shares in the company, aligning their interests with those of shareholders. The following table lists the top executives and their shareholdings:
| Executive | Position | Shares Held |
|---|---|---|
| Christian Ulbrich | CEO | 150,000 |
| Mark Gibson | Global CEO, Capital Markets | 75,000 |
| Jenna M. Barnett | Chief Financial Officer | 50,000 |
Market Capitalization
As of September 30, 2024, JLL's market capitalization stood at approximately $6.77 billion. This reflects the company's stock performance and underlying financial fundamentals.
Stock Performance
The stock price of JLL as of September 30, 2024, was $142.75, marking a year-to-date increase of 15%. The following table summarizes the stock performance over the past year:
| Date | Stock Price |
|---|---|
| September 30, 2023 | $123.50 |
| December 31, 2023 | $135.00 |
| March 31, 2024 | $140.00 |
| June 30, 2024 | $141.00 |
| September 30, 2024 | $142.75 |
Recent Developments
In 2024, JLL has focused on expanding its global footprint and enhancing its service offerings, particularly in the areas of technology and sustainability. The company continues to invest in proptech startups, with total investments reaching approximately $866.5 million as of September 30, 2024, which includes:
| Investment Type | Amount (in millions) |
|---|---|
| JLL Technologies | $423.4 |
| LaSalle Co-investments | $411.0 |
| Other Investments | $32.1 |
Financial Summary
For the third quarter of 2024, JLL reported:
- Total Revenue: $5.87 billion
- Net Income: $155.1 million
- Adjusted EBITDA: $298.1 million
The company's financial performance reflects strong growth across various segments and effective cost management strategies.
Jones Lang LaSalle Incorporated (JLL) Mission Statement
Mission Statement Overview
The mission statement of Jones Lang LaSalle Incorporated (JLL) emphasizes the company's commitment to delivering exceptional real estate services and solutions to clients globally. JLL aims to foster a sustainable future while enhancing the value of clients' real estate assets.
Core Values
- Integrity: Upholding the highest ethical standards in all dealings.
- Collaboration: Working together as a unified team to achieve common goals.
- Innovation: Continuously seeking to improve and innovate in service delivery.
- Sustainability: Promoting sustainable practices within the real estate industry.
Financial Performance Indicators (2024)
As of September 30, 2024, JLL has reported significant financial metrics indicating a robust performance:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income (in millions) | $155.1 | $59.7 | +160% |
| Adjusted EBITDA (in millions) | $298.1 | $217.3 | +37% |
| Total Revenue (in millions) | $5,868.8 | $5,100.0 | +15% |
| Operating Income (in millions) | $228.3 | $118.8 | +92% |
| Assets Under Management (AUM) (in billions) | $84.6 | $92.9 | -9% |
Business Segments and Revenue Breakdown
JLL operates through various business segments, each contributing to the overall revenue:
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | % Change |
|---|---|---|---|
| Markets Advisory | $1,143.8 | $992.4 | +15% |
| Capital Markets | $498.8 | $435.8 | +14% |
| Work Dynamics | $4,068.2 | $3,514.2 | +16% |
| JLL Technologies | $56.7 | $58.9 | -4% |
| LaSalle | $101.3 | $110.1 | -8% |
Investment and Capital Expenditure
Investment activities and capital expenditures reflect JLL's commitment to growth:
| Investment Category | September 30, 2024 (in millions) | December 31, 2023 (in millions) |
|---|---|---|
| JLL Technologies Investments | $423.4 | $397.6 |
| LaSalle Co-investments | $411.0 | $388.3 |
| Other Investments | $32.1 | $30.7 |
| Total Investments | $866.5 | $816.6 |
Cash Flow Analysis
Cash flow dynamics for JLL indicate effective financial management:
| Cash Flow Activity | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|
| Cash Flows from Operating Activities | $(142.0) | $(153.6) |
| Cash Flows from Investing Activities | $(219.0) | $(220.4) |
| Cash Flows from Financing Activities | $349.0 | $231.2 |
Conclusion on Financial Health
JLL's financial indicators, segment performance, and investment strategies highlight its commitment to achieving its mission statement objectives while navigating the complexities of the real estate market.
How Jones Lang LaSalle Incorporated (JLL) Works
Business Model
Jones Lang LaSalle Incorporated (JLL) operates as a global professional services firm specializing in real estate and investment management. The company manages its operations through five primary segments:
- Markets Advisory
- Capital Markets
- Work Dynamics
- JLL Technologies
- LaSalle
Financial Performance
As of September 30, 2024, JLL reported the following consolidated financial figures:
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue | $5,868.8 million | $5,111.4 million | 15% |
| Net Income | $155.1 million | $59.7 million | >150% |
| Adjusted EBITDA | $298.1 million | $217.3 million | 37% |
| Operating Expenses | $5,640.5 million | $4,992.3 million | 13% |
Segment Analysis
Each segment contributes differently to JLL's overall performance:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | % Change |
|---|---|---|---|
| Markets Advisory | $3,172.7 million | $2,924.2 million | 8% |
| Capital Markets | $1,334.0 million | $1,240.9 million | 8% |
| Work Dynamics | $4,068.2 million | $3,514.2 million | 16% |
| JLL Technologies | $167.0 million | $180.9 million | (8)% |
| LaSalle | $307.3 million | $368.4 million | (17)% |
Assets Under Management
As of September 30, 2024, JLL's Assets Under Management (AUM) stood at:
- $84.6 billion
This represents a decline from $92.9 billion as of September 30, 2023, attributed to various factors including:
- $5.4 billion in dispositions and withdrawals
- $3.9 billion in net valuation decreases
- $1.7 billion in foreign currency decreases
- $0.8 billion decrease in uncalled committed capital and cash held
- $3.5 billion in acquisitions
Liquidity and Capital Resources
JLL finances its operations primarily through:
- Internally generated funds
- Borrowings on its credit facility
- Issuance of long-term debt and commercial paper
As of September 30, 2024, JLL had:
| Debt Type | Outstanding Amount |
|---|---|
| Facility Borrowings | $345.0 million |
| Short-term Borrowings | $99.6 million |
| Outstanding Commercial Paper | $800.0 million |
Cash Flow Overview
For the first nine months of 2024, JLL reported cash flows from operating activities as follows:
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $142.0 million | $153.6 million |
| Cash Used for Investing Activities | $219.0 million | $220.4 million |
| Cash Provided by Financing Activities | $349.0 million | $231.2 million |
Equity Earnings
JLL's equity earnings (losses) for the third quarter of 2024 were as follows:
| Segment | Q3 2024 | Q3 2023 |
|---|---|---|
| JLL Technologies | $11.6 million | ($3.0 million) |
| LaSalle | ($13.8 million) | ($9.1 million) | Other | $1.3 million | $0.9 million |
Tax Provisions
The effective tax rate for the three and nine months ended September 30, 2024 was:
- 19.5%
This is consistent with the prior year, indicating stability in JLL's tax position.
Shareholder Equity
As of September 30, 2024, JLL's consolidated statements of changes in equity indicated:
| Equity Metric | Amount (in millions) |
|---|---|
| Total Shareholders' Equity | $6,769.0 million |
| Common Stock Outstanding | 47,471,625 shares |
How Jones Lang LaSalle Incorporated (JLL) Makes Money
Revenue Segments
Jones Lang LaSalle Incorporated (JLL) generates revenue through several key segments, including Markets Advisory, Capital Markets, Work Dynamics, JLL Technologies, and LaSalle. As of 2024, the company's total revenue reached $16.6 billion, reflecting a 12% increase compared to 2023.
| Segment | Revenue (2024) ($ in millions) | Revenue (2023) ($ in millions) | % Change |
|---|---|---|---|
| Markets Advisory | 3,172.7 | 2,924.2 | 8% |
| Capital Markets | 1,334.0 | 1,240.9 | 8% |
| Work Dynamics | 11,641.0 | 10,165.0 | 15% |
| JLL Technologies | 167.0 | 180.9 | (8)% |
| LaSalle | 307.3 | 368.4 | (17)% |
Markets Advisory
The Markets Advisory segment encompasses services such as leasing, property management, and advisory consulting. In 2024, leasing revenue was $1.78 billion, up 10% from 2023, while property management generated $1.32 billion, reflecting a 7% increase.
| Sub-segment | Revenue (2024) ($ in millions) | Revenue (2023) ($ in millions) | % Change |
|---|---|---|---|
| Leasing | 1,781.8 | 1,626.1 | 10% |
| Property Management | 1,318.6 | 1,229.3 | 7% |
| Advisory, Consulting and Other | 72.3 | 68.8 | 5% |
Capital Markets
Capital Markets includes investment sales, debt/equity advisory, and value and risk advisory. The segment's revenue reached $1.33 billion in 2024, an 8% increase from 2023. Investment sales alone saw a 20% revenue growth, driven by improved investor sentiment.
| Sub-segment | Revenue (2024) ($ in millions) | Revenue (2023) ($ in millions) | % Change |
|---|---|---|---|
| Investment Sales, Debt/Equity Advisory | 950.8 | 870.3 | 9% |
| Value and Risk Advisory | 262.0 | 256.1 | 2% |
| Loan Servicing | 121.2 | 114.5 | 6% |
Work Dynamics
The Work Dynamics segment focuses on integrated services for occupiers of real estate, including workplace management and project management. Revenue was $11.64 billion in 2024, up 15% from the previous year, driven by strong performance in workplace management.
| Sub-segment | Revenue (2024) ($ in millions) | Revenue (2023) ($ in millions) | % Change |
|---|---|---|---|
| Workplace Management | 9,057.4 | 7,687.7 | 15% |
| Project Management | 2,215.8 | 2,126.5 | 3% |
| Portfolio Services and Other | 367.8 | 350.8 | 5% |
JLL Technologies
The JLL Technologies segment offers software and technological solutions for real estate management. In 2024, revenue decreased to $167 million, an 8% drop from 2023, primarily due to lower contract signings in service offerings.
LaSalle
LaSalle provides investment management services, generating $307.3 million in revenue in 2024, down 17% from the previous year. The decrease is attributed to declines in assets under management (AUM), which fell to $84.6 billion from $92.9 billion year-over-year.
Operating Expenses
JLL's total operating expenses for the first nine months of 2024 were $5.6 billion, up 13% from the same period in 2023. The increase was driven by higher gross contract costs and platform operating expenses.
| Expense Type | Amount (2024) ($ in millions) | Amount (2023) ($ in millions) | % Change |
|---|---|---|---|
| Total Operating Expenses | 5,640.5 | 4,992.3 | 13% |
| Gross Contract Costs | 3,861.8 | 3,327.1 | 16% |
| Platform Compensation and Benefits | 1,406.9 | 1,299.8 | 8% |
| Platform Operating, Administrative and Other Expenses | 315.1 | 274.7 | 15% |
Net Income and Adjusted EBITDA
Net income attributable to common shareholders for the three months ended September 30, 2024, was $155.1 million, compared to $59.7 million in the prior-year quarter. Adjusted EBITDA for the same period was $298.1 million, up 37% from $217.3 million in 2023.
| Period | Net Income ($ in millions) | Adjusted EBITDA ($ in millions) |
|---|---|---|
| Q3 2024 | 155.1 | 298.1 |
| Q3 2023 | 59.7 | 217.3 |
Cash Flow and Financing Activities
In the first nine months of 2024, operating activities used $142 million in cash, while financing activities provided $349 million, reflecting greater net borrowings.
| Cash Flow Activity | Amount ($ in millions) |
|---|---|
| Cash Used in Operating Activities | (142.0) |
| Cash Provided by Financing Activities | 349.0 |
As of September 30, 2024, JLL had outstanding borrowings under its $3.3 billion Facility amounting to $345 million, with a variable interest rate.
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Resources:
- Jones Lang LaSalle Incorporated (JLL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Jones Lang LaSalle Incorporated (JLL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Jones Lang LaSalle Incorporated (JLL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.