Core Insights - The central bank has increased its gold reserves for six consecutive months, indicating a strategic shift towards gold accumulation [1] - According to the chief economist of JLL Greater China, the current proportion of gold reserves in China's total reserves is still low, suggesting room for further increases in gold holdings [1] - Factors such as financial security and the diversification of reserve assets are driving the need for continued gold accumulation in China [1]

Financial Data and Key Metrics Changes - The company reported double-digit revenue gains across both resilient and transactional businesses, with a 28% growth in adjusted EPS [6][7] - Adjusted EBITDA margin improved due to higher transactional revenues and operating efficiency [24][28] Business Line Data and Key Metrics Changes - Real Estate Management Services saw revenue growth led by Workplace Management, with nearly 30% increase on a two-year stacked basis [16] - Leasing Advisory experienced broad-based revenue growth, with an 18% increase in office leasing and a 14% increase in industrial leasing [19] - Capital Markets Services reported over 45% growth in debt advisory and 15% growth in investment sales [22] Market Data and Key Metrics Changes - U.S. office leasing increased for the fifth consecutive quarter, exceeding first quarter 2019 levels, although large transactions remain approximately 30% below pre-pandemic averages [20][58] - The industrial market showed a 14% revenue growth in the U.S., despite a 20% decline in overall market volume [61] Company Strategy and Development Direction - The company is focused on profitable and sustainable growth, investing in technology and people to enhance service delivery [8][30] - There is a strategic shift towards globalizing the Property Management business and capitalizing on outsourcing trends [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted that while the current economic climate presents challenges, the company remains confident in its strategy and long-term growth drivers [8][33] - The company is maintaining its full-year adjusted EBITDA target range of $1,250 million to $1,450 million, reflecting resilience in its operations [30][31] Other Important Information - The company has a strong liquidity position with $3.3 billion in total liquidity and a net leverage ratio of 1.4 times, down from 1.9 times a year earlier [29] - Leadership changes were announced, with Karen taking on a new role as CEO of Leasing Advisory and Kelly Howe succeeding her as CFO [12][13] Q&A Session Summary Question: How does the company underwrite long-term political risk? - Management acknowledged increased uncertainty and decreased visibility but emphasized the need for GDP growth, which correlates with their operations [36][38] Question: Will macro uncertainty affect real estate outsourcing? - Management indicated that companies may still seek to outsource for cost-cutting, but decision-making may slow due to lack of visibility [39][41] Question: What are the growth expectations for Real Estate Management Services? - Management expects high single-digit to low double-digit growth, with some downward pressure in the current year due to evolving property management integration [47][50] Question: How is the company addressing capital raising and asset management? - Management noted a significant increase in capital raised in Q1 2025 compared to the previous year, with expectations for continued investment opportunities [54] Question: Are there geographic trends in the office market? - Management observed strong performance in the West Coast and mixed results in gateway cities, with secondary markets improving [83] Question: How is hiring being managed in the current environment? - Management stated that hiring plans are tailored to market conditions, with a cautious approach in uncertain times [86]

Jones Lang LaSalle (JLL) came out with quarterly earnings of $2.31 per share, beating the Zacks Consensus Estimate of $2.02 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.36%. A quarter ago, it was expected that this financial and professional services company would post earnings of $5.80 per share when it actually produced earnings of $6.15, delivering a surprise of 6.03%.Over ...

Financial Performance - JLL's revenue increased by 9% to $5125 million in Q1 2024, compared to $4716 million in Q1 2023[33] - Gross Contract Costs increased by 12% to $3499 million in Q1 2024, compared to $3133 million in Q1 2023[33] - Adjusted EBITDA increased by 66% to $187 million in Q1 2024, compared to $113 million in Q1 2023[33] - Adjusted Net Income increased by 151% to $86 million in Q1 2024, compared to $34 million in Q1 2023[33] - Adjusted Diluted EPS increased by 151% to $1.78 in Q1 2024, compared to $0.71 in Q1 2023[33] Segment Performance - Markets Advisory revenue increased by 5% with adjusted EBITDA up by 33%[36] - Capital Markets revenue increased by 6% with adjusted EBITDA up by 145%[36] - Work Dynamics revenue increased by 11% with adjusted EBITDA up by 102%[36] - JLL Technologies revenue declined by 12% with adjusted EBITDA up by 73%[36] - LaSalle revenue declined by 8% with adjusted EBITDA down by 2%[36] Market Trends - Global direct investment was down 4% in local currency (6% USD) in Q1[10] - Global office leasing volumes in the first quarter were up 7% versus the prior-year quarter[24]

News Release JLL Reports Financial Results for First-Quarter 2025 Broad-based increases in resilient and transactional revenues drove fourth consecutive quarter of double-digit revenue growth CHICAGO, May 7, 2025 – Jones Lang LaSalle Incorporated (NYSE: JLL) today reported operating performance for the first quarter of 2025 with diluted earnings per share of $1.14 (down 19%, driven by non-cash losses) and adjusted diluted earnings per share of $2.31 (up 28%). Growth momentum of Resilient and Transactional r ...

Core Insights - Jones Lang LaSalle Incorporated (JLL) reported a 13% year-over-year increase in revenue for Q1 2025, reaching $5.746 billion, with both Resilient and Transactional revenues achieving double-digit growth [1][4][7] - Adjusted diluted earnings per share increased by 28% to $2.31, while diluted earnings per share decreased by 19% to $1.14 due to non-cash losses [1][6] - The company emphasized its focus on platform differentiation, efficiency, and resiliency, which contributed to the strong revenue growth despite a volatile market backdrop [2][3] Revenue Performance - Total revenue for Q1 2025 was $5,746.4 million, up from $5,124.5 million in Q1 2024, reflecting a 12% increase in USD and a 13% increase in local currency [3][4] - Resilient revenues grew by 13%, driven by Workplace Management (up 15%) and Project Management (up 16%), while Transactional revenues increased by 14%, led by Leasing Advisory (up 15%) and Capital Markets Services (up 16%) [4][7][21] - Real Estate Management Services revenue rose to $4,569.4 million, a 12% increase from the previous year, with significant contributions from Workplace and Project Management [3][15] Profitability Metrics - Adjusted EBITDA for Q1 2025 was $224.8 million, a 20% increase from $187.1 million in Q1 2024, driven by revenue growth and improved platform leverage [6][8] - Net income attributable to common shareholders was $55.3 million, down 16% from $66.1 million in the prior year, while adjusted net income increased by 30% to $111.6 million [6][9] Cash Flow and Capital Allocation - Cash flows from operating activities were negative at $(767.6) million, a 13% decline from $(677.5) million in Q1 2024, primarily due to timing of net reimbursables and higher commission payments [9][44] - Free cash flow also decreased by 13% to $(812.1) million compared to $(720.7) million in the previous year [9] Segment Performance - Leasing Advisory revenue increased by 13% to $586.1 million, with broad-based growth across asset classes, particularly in the U.S. [20][21] - Capital Markets Services revenue grew by 15% to $435.3 million, with notable performance in debt advisory and investment sales, particularly in the U.S. [23][25] - Investment Management revenue decreased by 5% to $98.5 million, primarily due to lower assets under management [27][28] Debt and Liquidity - Total net debt increased to $1,754.0 million as of March 31, 2025, compared to $800.6 million at the end of 2024, reflecting seasonal compensation payments and a $100 million investment in JLL Income Property Trust [12][13] - Corporate liquidity stood at $3,312.4 million, down from $3,616.3 million at the end of 2024 [12] Organizational Changes - Effective January 1, 2025, JLL implemented changes in its reporting segments to better align with client needs and industry dynamics, including renaming and restructuring certain segments [14]

Core Insights - The upcoming earnings report from Jones Lang LaSalle (JLL) is anticipated to show quarterly earnings of $2.02 per share, reflecting a 13.5% increase year-over-year, with revenues expected to reach $5.59 billion, a 9% increase from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.9% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts project 'Revenue- Capital Markets' at $410.10 million, an increase of 8.6% from the prior year [5]. - The estimate for 'Revenue- Markets Advisory' is $569.15 million, showing a significant decrease of 40.1% year-over-year [5]. - 'Revenue- Capital Markets- Loan Servicing' is expected to reach $38.16 million, reflecting a slight decline of 1.4% [5]. - The consensus for 'Revenue- Capital Markets- Value and Risk Advisory' is $81.45 million, indicating a 1.6% increase [6]. - 'Revenue- Markets Advisory- Leasing' is projected at $546.66 million, a 9.9% increase from the previous year [6]. - 'Revenue- LaSalle' is expected to be $106.48 million, showing a 3% increase [6]. - 'Revenue- Markets Advisory- Advisory, Consulting and Other' is estimated at $22.50 million, a decrease of 2.6% [7]. - 'Revenue- Capital Markets- Investment Sales, Debt/Equity Advisory and Other' is projected at $290.50 million, reflecting a 12.3% increase [7]. - 'Revenue- JLL Technologies' is expected to be $54.64 million, a 1.4% increase [8]. - 'Revenue- Work Dynamics- Portfolio Services and Other' is projected at $51.40 million, indicating a significant decrease of 53.9% [8]. - 'Revenue- Work Dynamics- Project Management' is expected to be $225.46 million, reflecting a 65.7% decrease [8]. - 'Revenue- Work Dynamics- Workplace Management' is projected at $232.40 million, indicating a drastic decline of 91.9% year-over-year [9]. Stock Performance - Over the past month, JLL shares have increased by 6.8%, outperforming the Zacks S&P 500 composite, which saw a 0.4% change [9].

Core Insights - The hotel investment market in China is transitioning from incremental expansion to stock optimization due to macroeconomic fluctuations and real estate policy impacts [1][6] - The total hotel investment transaction amount in mainland China from 2015 to 2024 is approximately 168.54 billion, with an average annual transaction amount of about 13.94 billion [1] - In 2024, hotel investments accounted for 10.7% of the overall investment market, reaching a recent high [1] Investment Trends - First-tier cities are the focal point for capital due to their anti-cyclical capabilities and composite value, with over 60% of hotel transactions occurring in these areas over the past decade [1][2] - New first-tier cities are emerging as new investment hotspots, with their hotel investment transaction share increasing by 6 percentage points from 2015-2019 to 2020-2024 [1][2] - The demand for hotel investments is driven by the dual effects of business and cultural tourism, particularly in first-tier cities, which host about 40% of national conference and exhibition activities [3] Market Dynamics - The hotel investment market has seen a rise in bulk transaction amounts, with 2023 marking a historical high for hotel investment transactions in mainland China [2] - The performance of hotels in new first-tier cities like Hangzhou, Chengdu, Chongqing, and Xi'an has improved significantly, attracting investor interest [3] - Urban hotels account for over 70% of total transaction amounts, driven by stable market demand and advantageous geographic locations [3] Risk Management - The growth of the hotel investment market brings associated risks, including legal issues related to property rights and compliance [4][5] - Investors need to enhance their asset selection and risk management capabilities due to market differentiation and valuation discrepancies [2][6] - Innovative exit strategies, such as public REITs, are being explored to improve liquidity and value of hotel assets, although they are not yet included in the underlying asset category for public REITs [5][6]

Core Insights - JLL Income Property Trust has fully subscribed its JLLX Diversified VII program, which is a $105 million Delaware Statutory Trust (DST) designed for 1031 exchange investors to reinvest proceeds from appreciated real estate while deferring taxes [1][3] 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][4] - The trust owns and manages a diversified portfolio of high-quality, income-producing assets across various sectors, including residential, industrial, retail, healthcare, and office properties throughout the United States [5] Investment Strategy - JLLX Diversified VII includes a 199-unit multifamily residential community in Trumbull, CT, and a Class A industrial warehouse facility in Chandler, AZ, reflecting a focus on high-conviction property sectors [2][3] - The program aims to provide estate planning solutions for investors, facilitating the transfer of generational wealth while mitigating tax consequences associated with real estate sales [3] Market Demand - There is strong demand from 1031 exchange investors and their advisors, indicating a robust interest in tax-efficient real estate investment solutions [3] - The residential and industrial sectors are showing strong fundamentals, with resilient rental growth trends [3] Historical Performance - Since its inception in 2019, JLL Exchange has attracted over $1.7 billion across 26 DST offerings, demonstrating significant interest from property owners in maintaining real estate allocations [3] - JLL Income Property Trust has completed 14 full cycle UPREIT transactions totaling $960 million to date, showcasing its active engagement in the market [3]

Core Points - Jones Lang LaSalle Incorporated (JLL) will host a conference call and webcast to discuss its first quarter 2025 results on May 7, 2025, at 9 a.m. Eastern time [1] - The conference call can be accessed by dialing (888) 660-6392 with a conference ID number of 5398158 [1] - The webcast will be available live on the company's Investor Relations website, with presentation slides accessible shortly before the event [2] Company Overview - JLL is a leading global commercial real estate and investment management company with over 200 years of experience [3] - The company reported annual revenue of $23.4 billion and operates in over 80 countries, employing more than 112,000 individuals [3] - JLL aims to shape the future of real estate for a better world, providing services across various property types including commercial, industrial, hotel, residential, and retail [3]