JLL - Earnings call transcript Q1 2018 | Jones Lang LaSalle Incorporated

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Jones Lang LaSalle Incorporated's First Quarter 2018 Earnings Conference Call.

For your information, this conference call is being recorded. I would now like to turn the conference over to Grace Chang, Managing Director of Investor Relations. Please go ahead.

Grace Chang

Thank you, operator. to LaSalle quarter Incorporated. welcome for conference and Lang Jones morning our XXXX first call Good of along Earlier release, to on section which morning, supplement is website, this we available the issued our prepared Investor presentation a slide with our remarks. earnings our intended ir.jll.com, Relations

and measures our where investors. slides. the reconciliations We supplemental During financial of we earnings appropriate provide believe non-GAAP reference will we call, measures to include in GAAP useful release non-GAAP financial certain which information for

on As also a being Any from result those in live on and reminder, and results today's call webcast as expectations the undertaking are of would statements this factors any December in And I XXXX, like and ended for company's Christian forward-looking for website. discussed The plans, with future objectives and over Ulbrich, is the results Officer forward-looking of Annual to performance transcript disclaims forward-looking and may to year filed opening SEC. Report Chief conference recorded. the or about Actual a our call fiscal that, revise performance XX, statements our be differ publicly the update A Executive company made reports remarks. Form about call other statement. XX-K or will posted statements. turn with to any

Christian Ulbrich

review this quarter Thank to and of our first you, everyone, welcome, Grace, results.

in a Our CFO, minutes. performance provide Christie few our will about Kelly, details

those of revenue the GAAP summarize I me new you adopted this XXX. first standard, Before let have the ASC recognition remind we as that results, year, of U.S.

to from to revenue. That our calculate adjusted a we range a of has EBITDA of XX% how to range to fee targeted XX% revised XX% XX%. non-GAAP also have We of caused our move margin presentation

these will changes. We have reflect their XXXX in her information restated financial summarize remarks. Christie effect XXXX and to comparative our

quarter And earnings growth had billion revenue from earnings. was up in X% $XX.X the to diluted good Revenue XX% than a last billion, Moving significant performance, totaled first annuity $X.X Adjusted increased contributed our incentive markets net with business per $X.XX, for Adjusted first Investment debt with on very capital quarter. reached Fee strong the Management $XX for net year-on-year. to in share year. of fees and more we LaSalle quarter the XXXX. same way. diversified million. our by cash globally totaled $X.X up compared million equity reduced million to $X.XX Thanks flows $XXX period year-on-year income the leading

dividend assessment our On In paid dividend. the our announce back the of to assessment, of over remain X.X% expected the is a an assessment year are global a company's dividend ago. with connection and semi-annually with of board moved $X.XX to in per which annual this an of up an positive this the of XXXX have conditions economy current annual December to X.X% reach the performance, we declared increase The XX% growth GDP annual year, share. directors pleased from

quarter the posted Capital in activity market highest which office Relations and prime continued X to trade reached level tensions the of in in section grew growth to and see for above Slide previous slide in period the Markets XXXX Gross of points quarter, year Income assets quarter (XX.XX). basis appreciation is to major first XX in year-over-year, growth supplemental XX $XXX the by year same of continued running from strongest XX% office details XX.X% now Markets by prime estate X real billion last XXX and XX ago, the Despite X.X% jll.com. in and quarter summarizes the a the XXXX transactions into document since the For square contribute were Leasing. global first Capital and capital information global markets volatility, in at Investor decreased continued during latter of rate million year XXXX. since markets. markets to The for reaching the conditions XX year. first level increase strong this vacancy rental The the than major X% that of global second during quarter office levels feet X.X% of absorption characterized higher markets offices quarter the globally. part office the stock

real which talk XXXX, But So JLL. now later continue all believe let's perhaps good in about lower for the for positive to this estate comments at in performance these levels a on quarter our all, a environment. conditions market in her I in for will We will commercial slightly call. turn Christie and market

Christie B. Kelly

and Christian, call. everyone our on you, welcome Thank to

Before to Effective the January I recognition ASC adopted release. this like recent X, move in earnings the on changes new into business would we revenue expand standard GAAP current U.S. line accounting XXXX, XXX. results, reflected I

has statement. adoption income recast we as of been if two standard. to impacts the comparative retrospective Our full new reflects meaning had we under XXX approach, The adoption have our information primary financial our the ASC reporting

reflect pass-through to First, increase in profit expenses This related impact of as GAAP adjusted such XXX net Facility business. reimbursement ASC income primarily not does revenue associated of measures our and fee revenue, net results and our portion gross EBITDA. a Management material our or

revenue or our a U.S. full of the percentage. $XX for resulted million which commissions to basis change drove recast of differences margin business, has On basis, some expense. of timing in the XX approximately XXXX points adjusted the in especially incremental certain Second, timing Leasing revenue recognition EBITDA of year timing changed, streams EBITDA also for in

a year of reduction and we with labor. addition, non-GAAP to this of for XXXX, over a notably increase XXX growth fee the On costs In result JLL full in associated adjusted modified annuity together resulted and presentation revenue, the basis most basis with margin of of $XXX the points. prompted change a million EBITDA XXX by an our approximately continued to This in was fee our ASC GAAP to calculation percentage recast measure, client-dedicated businesses. revenue as of increase expenses exclude the

regarding changes, and information more our Relations presentation website. Investor these For accounting visit please

On year by demonstrate ability Services led consolidated with results growth XXXX, prior LaSalle, EMEA, With XX% Capital prior Real strong to fee Services quarter. over & attributable organic Project & currency by all limited Development to transactional increases Markets, the a and organic both Organic M&A local basis. revenue and generate to total nearly Property expansion revenue activity for to revenue was fee majority the on perspective, our the consolidated all revenue quarter service results growth. line representing growth and driven turning Revenue respectively a From accounted of Estate fee with a growth. first annuity recast references Management. fee X% XX% in compared Facility of with basis, businesses. revenue all across increased in occurred segments and gains Now

and local Turning for to largely the U.S. currency we for which grew service the all by report driven Americas. driven aligns with changes fee except Markets percentage where EMEA line research timing grew tough organic and by in Capital was first dollar-denominated deal revenues data. Leasing XX% Consolidated Markets, Growth and revenues Americas segment the results and quarter. a fee in performance for comparable. the X% Consolidated JLL's was quarter. Capital

both XXX basis, businesses drove X our grew service first non-transactional fee Services slides which information XXXX refer grew margin quarter, basis the and for expansion by X.X% outsized performance. of Facility our to quarter, equity points, led for quarter compared revenue attributable Development with incentive basis Project X%. includes X% Real calculated on EMEA Property fees and And XXX basis Consulting the people. earnings. Management at detailed of revenue half a organically continued investments Americas. a and line in the LaSalle's the XX%. about point for EBITDA point This Advisory these revenue & page rate. in grew technology, fee of an on XXX data, XX% fee growth Adjusted margin our headwind our For & Combined X% supplemental in represents basis Over to the Estate nearly Please expansion was by was our margin actual Services business, a and of

the of had EMEA from gains Capital expenses, expansion the was of organic of and in growth negative reduction XXXX. strong largely while the addition, EMEA. first driven one-time quarter had Americas gains benefited strong Margin and productivity from In timing and further we by in Markets Americas items

technology. of and platform. people, our the technology, transform most Spark approach implementation JLL on M&A, ERP impact we strategic Continuing our strategy. in and client-facing our our investments, return incremental and Services acquisitions rigorous three global our add associated continued a data work we The to to investment Real notable invest Estate to In as with closed terms being to with on we margin is

commitment to our our our we on with on will and forward focus investment strong that continue balance invested as Consistent grade well we deals disciplined profile focus the for liquidity performance As on priorities help move opportunistic leverage growth our and into to shareholders. drive as maximize return year, operating capital sheet, an remain position.

debt March payout decrease $XXX million the variable against an increase XX, but $XXX balance first yearend XXXX, of million from a Our December million as of March quarterly total net reflects increase sheet from of XXXX. to times. well of of XX, reflects strong The the our performance. efforts XXXX to for XX, improve year-over-year annual $XXX quarter we from business XXXX, X.X working Since employees have operating of our times XXXX, EBITDA from over performance targeted decreased strong capital. debt quarter to as to first X adjusted company's as net The resulted decrease compensation

in XXXX, a together quarter client investments primarily revenue revenue Development and to and comparable, Services growth delivered transactions digit driven Project the strong business in XX% contracts, the X% a Markets where revenue activity the of experienced over the headwind fee quarter Facility XXX XXXX. for of revenue respectively, work investment Despite services. & revenue fee Americas Capital Leasing The XXXX Consulting, Similar wins and from quarter solutions to double-digit Adjusted as with Americas a by grew which XX first of QX and in we continued where EBITDA comparison. XXXX beyond turned be year-over-year of fee future Considering XX% revenue on multifamily The engagement and quarter. significant Project strong result comes in Markets around Turning expansion points is XX.X% quarter, volume quarters. experienced tough prior up quarter's we performance as Capital business outsourcing difficult data up our growth Facility revenue expenses in Consulting the over year Management. services XXXX, and of margin in and Facility & technology, XXXX businesses to QX This XX%. of employee our to increased as in Development by Leasing corporate our of most trends. Management our basis growth fee before expansion. Management, double X% margin advisory our Services fee basis QX organic a M&A XX% business, basis, expanded comparable, the a includes investment timing Advisory well growth as the grew grew large for gains points win Americas was fee future contains margin quarter X% & Property with fee fee attributable focused people. XXX result a for a and quarter due to our tough growth points the X% Property of against growing late and basis largely & by multi-service an of leasing, services contract revenue Americas, this financing first off and was first incurred

milestone productivity ERP side, the the U.S. we completion a major On achieved of recently upgrade. with our

XX% by total XX% compared volume. QX Capital Markets Turning to the for fee an EMEA EMEA, and in & XXXX, sales primarily revenue grew from Capital flat investment increased the Markets market for growth Services. over Development impressive first quarter quarter to revenue Project

For timing Germany, transaction the combination currency strong to the the a tailwind a plus had France, the start the first We year and sterling UK. from quarter, a pound performance U.S. and effects, strong noting attribute to in against we euro strengthening of dollar.

with in Our investment sales UK XX% of Capital volumes. performance growth line market was relatively Markets

Consulting in by high favorable liquidity, largely continues remains revenue by impacted Management Brexit & driven revenues quarter to conditions, by partially X% UK market XX% and in investing timing France, in and reflecting driven Tetris the in the XX% growth France, grew QX growth the a management by Management, EMEA the Corporate in UK business the yields Considering Advisory grew materialize negative growth positive calculated in adjusted advisory delivered investments. coming fee EBITDA the up contracts Leasing consulting wins compared fee of X.X% due Development work Solutions multiservice line Germany with our the hotels-related Services quarter, performance Although beyond margin revenue delivered uncertainty, growth basis Property in market In continued international revenue our and quarters. continued with of Poland. services. UK and X%. leasing in Project against to EMEA be property are with a the Facility expected up in and German negative absorption sector. revenue that quarter. quarter. the of fee first X.X% and the offset decline was UK declined X% Facility XX%, industrial residential was for The to fee XXXX driven & primarily by prior by on

strong with Project growth is and Development first UK the due eliminating from associated a capital Margin margin benefit dilution expanded driven by & quarter of Capital seasonality, the to non-core continued along business. loss in a a the the a Services Markets improvement of Although in management. typical also cost winddown result with as quarterly was

items adjusted million, and while data nominal continued by EBITDA invest of $XX to in All improved these technology, people. we

market Asia XX%. track line Overall, record were to first a over fee of market representation. against we strong QX volumes mega increased XX%. remains volumes and and were is region by growth a the absorption a but market Leasing large driven the direct to to in year, X% Moving full grew investment revenue XXXX, largely pipeline on had broker basis. over for The prior slow year up deal quarter which Capital deals on to revenue total the start few XX% nearly a Markets XXXX. year flat without revenue QX was with Pacific, deliver fee growth the

in & Project X% respectively. prior for Facility Management, office businesses Consulting Corporate is Solutions & Management to & and China primarily services related. fee continued delivered higher of reduced driven leasing EBITDA The and XXXX. contracts X.X% quarter. XX% performance Services timing in as first Property by quarter. represents by Facility Facility revenue was driven the X% quarter people. costs industrial and and by basis the growth Development reduction was QX on growth Property Our than Adjusted and beyond flat offset well both Advisory slightly Considering revenue fee investments our increases change XXX point technology, Growth drove were and had volume. Management Japan Advisory of client multiservice data largely anticipated in a over margin as performance. assignments

higher the As was funds. Christian reflects platform $XXX from quarter dispositions growth revenue noted, performance Asia diversity LaSalle asset LaSalle's totaling fees revenue contribution overall million. across first and incentive by performance Pacific primarily due to driven

LaSalle In addition, and earnings, Asia increases Europe by led notable co-investments in in had Pacific. equity valuation net

funds. in As reflect approximately equity are accounting fees portfolio equity by reflected LaSalle's a therefore advisory a of catch-up equity value reminder, co-investment new in on fair result expansion our established valuation margin and also earned million of commitments XX% results of influenced is changes solid in including fees, as earning. nearly advisory private $X

result, fees, million Margin capital was attributed LaSalle up adjusted year. expansion earnings annuity and is the equity equity EBITDA a private LaSalle's improved XX.X%, to in of XX.X% the earnings. from equity in incentive prior quarter. As raised also margin $XXX earnings new including

under likely Assets public $XX XX, trend to the is current as XXXX. side quarter, on capital as to over mentioned, equity such in under equity. the were offset assets favor securities. billion as Increases LaSalle March management management into in we expected by equity And private flows public note This be the private real of estate fourth declines continue. are

final expect call now we to I fees terms the turn the half materialize back incentive will of to over remarks. of In second Christian fees, year. balance the the for of incentive during

Christian Ulbrich

summarize XX% good shows contract first To represent slide X service regions Care, Australian Christie. XX wins assignments XX One Primary million Health company. clients and these a contracts. won XX all example square rate. is recent new outsourcing and you, an we our we relationships renewed XXX XX overall another expanded lines and across from how few the existing geographies. These achieved a the In across leading won feet we total results, Corporate healthcare wins business, win Thank quarter, with in Solutions

provide feet and $XXX than included X.X more in Prudential of Markets data management million lease sale in the space management will of square Capital administration Chicago. We facility totaling Representative space. for million Plaza properties wins X,XXX

of services for And leaseback headquarters. X.X Wharf advised in million financing sale the tower professional secured Resources transaction. a on multi-disciplinary the its XXXX. largest by in also leasing square We Resources London, Scotland the provide sale firm We Canary the arranged we a the Shenzhen. of the to Astoria China foot were Group for team services Edinburgh, and China major hotel Waldorf transaction since In retained

We Pennsylvania. institutional had announced raised Capital X Asia more Prologis square million-plus also and In that $X.X Harrisburg, billion Asia, East, the assignment latest across XX mid-April, a was than for investors LaSalle United from the won Management Europe, in foot its Middle V. Investment from secured it States. LaSalle leasing fund Opportunity

the our on fundamentals X, full Now, in again global summarizes With XX%, markets outlook that to healthy soften year. turn remaining and world, continue investment $XXX Full will X% real let's appetite key billion. around the the be estate. future which focus we year slide for think estate for volumes investors to their are however, But could to real maintaining in to by around strong. commercial market

M&A as for We Some sectors. focus a alternative marginally new greater more on levels. transaction down from million total feet, decline continue. will are XXX but than start result, square global yield and will Single-asset the looking may a search leasing volumes debt at that strategies financing, to with anticipate XXXX

vacancy in own our confident increase We end, first bit to by this to year, year quarter. remain XX% from moving expected of about in XX.X% the With new business the space we prospects global a this environment. over up the up delivery rate office see

We platform as Solutions growth, leveraging global be for for mentioned margin our JLL invest adjusted as well to will across Corporate by further profitable you on a technology and, transform Markets priorities include find increase a differentiate XX% XX% guided EBITDA capabilities platform slide capital the to our allocation recast JLL, delivering expanding continuing stack, of to an earlier, efficiency, will on approach to as They which to continuing I in the key capital to XXXX, basis. our XX. Capital operational range rigorous maintaining very

one we were XXXX markets Companies of across JLL customized close Companies to the recent patent around one for Most well. Ethisphere the everyone commercial Patent brokers named data on the and these based Blackbird to Fortune's other to made their Most of calls, serve JLL of and our one of a XD LinkedIn's these To so As Office Congratulations Top the within awarded XXXX's Companies our first and continuing virtual U.S. Ethical Blackbird. and few the earned. to allows the year. World's honors like tours awards second XXth for year; and people our our world last quarter, to year who mention points. in a example the possible for thanks of consecutive or for all Admired we a investments, for straight week third awards the and row, Institute's clients one our of technology remarks clients real In take have prepared people for just estate

please questions. your Now Operator, process? the explain let's you take will

Grace Chang

we on the have line? do Operator, phone any questions

Operator

We do.

Bank Ridley-Lane David of line the from of is America Lynch. question first Merrill with Our

Your line open. is

David E. Ridley-Lane

Yes, good morning.

Christie B. Kelly

David. Hi,

David E. Ridley-Lane

versus the private have Good number you're on color there velocity this the out time spread and Capital deals, assignments Markets year business are the of morning. of that ago. bid/ask any in you markets? the the number about Can you of And seeing, talk bids a in

Christian Ulbrich

give able the be wouldn't assignments. we of to number David, you

hundreds we is globe. a of that little We assignments What have around by see it depends bit the region.

is in spread, when incredibly previous a U.S. of that still bit the As they And investment, it's because And a healthy. what they very really selling Europe, the market if going you there they the strong. become has of are in assets because of sign do that achieve it's again, they price, taking forward. know, top with no single in pause market regards to the a in maybe Asia, sales considering to wouldn't people environment, With thinner know also healthy. but their it's wouldn't than otherwise. still In expect slightly can't money buildings sell price quarters,

side. some come actually which we are the market with with incredibly to high so situation that of coming regard a from price And have expectations seller buildings to the

we be if buildings sometimes in a bit on the if that expectations could thinner market, bids exceeds weakness their some the are and pricing a seller. So, opposite hold a really willing the buildings, that it necessarily keen sign are isn't their of people only really actually of see on they to to

are signs directionally seeing the goes So, in softening softening see now I and are and to And we guess, we we sign second to yet, Asia, small I we out. market slight of market? is, watch. quarter of towards third in have in answer and which clearly see the in softening have your playing question quarter how wouldn't we in hesitation, no U.S. see there's the but the the Europe the say

David E. Ridley-Lane

greatest year I days way leasing. the last the you XX quite markets then of below isn't market gross leasing a at know absorption. looking strongly, first quarter that global bit And outperformed

does your days So versus feel the for confidence around full Leasing how year today XX growing the ago? business

Christian Ulbrich

then compare rightly timing rightly much you year say, And you XX was because roughly it's and to days we say is the would the also related always out as as we deals say, tough some like-for-like. hard as quarter. XX% Well, comparison there grew of first a very so fell larger last

runs Americas regards and with who are I with business We confident colleague we still Greg Leasing our business are forward. very the to still spoke confident about Leasing very our business. my just O'Brien going

side. concern no is there our so And on

David E. Ridley-Lane

that on I to side is work contributed you've quarter? adjusted basis coming And mix fruition your The one doing in points much of organic sneak the could to been more. service the just the if in EBITDA that margin. cost XXX how Curious

Christie B. Kelly

Yeah.

a the perspective measures David, a when at can the some at specifically growth that had cost look you growth. the XX% margin you performance. take we from about nice of quarter with look organic contributing really And associated think, I cost

David E. Ridley-Lane

Thank you very much.

Christie B. Kelly

welcome. You're

Operator

next Our with JPMorgan. line is Anthony from of the question Paolone

Your line open. is

Anthony Paolone

quarter. Thank you Good and good morning.

Christie B. Kelly

Thanks, Anthony.

Anthony Paolone

Project and year, of about that Consulting, is balance think there a the and tougher? How which of gets terms rate Development you Advisory the think comp In and really you been there growth high. quarter do that

Christian Ulbrich

strong regard You to still & making Services, optimistic And are expect obviously going know Development that And overall we driver world, of with of that we the correlating nicely. GDP strive experience this with The that probably business the topic most employees for GDP to a Project and development will pretty of the being services. pretty around with business. whole continue is forward. the big your space is all outlook of our

do of turnkey them. how deliver we who they asking needs that for to can space, and advice obviously lots like, exciting companies to have look for and have can exciting We are more what we know space

Anthony Paolone

the largely or Great. Tetris Is more is business just like broad-based? that it

Christian Ulbrich

then in is obviously the contractor is find doing to numbers Tetris. well are also as in what regards what With delivering whether we do those but delivering you or are Well, PDS the it's that we the project managing management that whether do we managing concept Tetris ourselves, the – globe general more services actually of we're process we and the as around just and it's numbers broad-based. the

Anthony Paolone

are the detail future give didn't thinking to try had Americas you dial expect us in Can you in were there about in you think on or a more to the quarter. first that that quarters that mentioned occur then expenses necessarily that maybe Christie, have And going it? you and what when little I perhaps some in Okay.

Christie B. Kelly

Anthony. Sure,

in nice to the the year win well Just with with training we're gains services for those Solutions our associated associated clients. come the of expecting Americas as business, costs Corporate to as throughout wins the organic deliver T&E as in some we given contribution and see

Anthony Paolone

you there put next either in significant? or when that impact Is it brackets not be that to the few to any about quarters on is around to going over think try margin

Christie B. Kelly

Nothing run out of Anthony, norm, a from perspective. the just rate

Anthony Paolone

to, back LaSalle obviously and at strong normal characterized to year question end the back we're returning or the kind year things past just the of levels, last incentive suggest here, year in being in the them And of outset to up and those the higher? as think picture start broader gains I you've the of change does fees of going some terms Okay. to had

Christie B. Kelly

Hi, perspective we had around now. And million really not Anthony. and $XX remarks. expecting to we historical that our million point backend to this fees, million at expecting I in commented From the incentive to year, we're that the $XX first $XX of said is $XX look million upon to five-year quarter, the average fees any change the time are as for in my incentive be loaded in as

Anthony Paolone

Okay. Got it. Thank you.

Christie B. Kelly

Thanks, Anthony.

Operator

question Our next is from Jade KBW. Rahmani with

line open. is Your

Jade Rahmani

quarters where at they six incentive the quarters, looking over past been least to quarters guidance. eight outperformed as expectations back well the that meaningfully company's there's the on the following seems fees, Just it as half

incentive expectations, driven activity and the or so, the fees? values acceleration fair market overall there trend And any of higher disposition the does prices in management's rising general that's represent outperforming is

Christian Ulbrich

No, those achieve the really. strong incentive very market the has been fees. we can and is, market mean, more not the stronger obviously I the

it hasn't or business. there's which incentive in Markets So the in any strong mean, has fees small incentive achieve to we a relatively a been on able on increase Capital acceleration. achieve I fees, to impact broader so is LaSalle strong pretty our pretty are leverage able pricing a these

other much of was into the last very don't the it market than that So read couple quarters, over strong very, to have know. you as you

Jade Rahmani

a with of a double of were year how ago, dispositions transactions year compare more up or than incentive And since number the did number ago? fees

Christian Ulbrich

don't single easy specific very relatively us. because and funds, is two from Again, from incentive number. XXX many incentive those we more the the is count coming which coming not from Markets are they buckets but business fees, the coming Capital get would we a so it's we to the our incentive broader they're there bucket. because transactions LaSalle of also than coming fund. from so There than One smaller a they're fees are much we major not different dozens are incentive that and fee bucket there's individual transaction, fees are counting from LaSalle large have who single transactions, But

Jade Rahmani

as is What to cited? take? cited, and future the is And think and may do interest hesitancy fears think of do the driving that result driving the may about activity, rate that it rates interest you regarding a it you increase that? following cap rate pace about concerns comments is the Is your you worries hikes on they or start you what U.S. hesitancy

Christian Ulbrich

Well, guess I have things two here. we

property hand, the find to that the good not have something moment. one property money into else seller reinvest at is means to they that easy sits On and selling which on the a

pay And at extended the only a will to right buyers to and they so cycle to. are be cycle. the who We are know in the price don't sell don't sellers buying looking caught continue. well are say outstanding cycle agree we Whereas of the cycle and We that top at ones of long prices. how want real end have when to want as an stage the

buyers, healthy. which from believe we behavior we very is cautious that the of So some see

they are of Buyers what market. very lot also do. And on discipline in Sellers we a a so to view have firm have disciplined. the want

continues. the for So forward that extended that could actually drive cycle, market if that that market quarters, many discipline more in many,

Jade Rahmani

mortgage see what In originations? terms business, the did GSE growth multifamily of in you the

Christie B. Kelly

there XX% From saw year-over-year the a high GSE growth for quarter. Jade. Hey, business GSE we perspective,

Jade Rahmani

the continued market, terms to which maybe Fannie above That's of GSEs? you seeing declined post meaningfully Mae. or due quarter outlook traction end the from the in Are

Christie B. Kelly

business our We've well. just which Grove was and platform, is the doing seen of the across thesis part really Oak cross-sell nice

Jade Rahmani

Thanks questions. for taking my

Christian Ulbrich

When believe forward going we growth the that around you still quite that grow can our positioning business some market show topic, see in we significantly. and that

So, our we always expectation market. will is that the outgrow

Jade Rahmani

Thanks very much.

Christie B. Kelly

Jade. Thanks,

Operator

Our from the next question of Nick UBS. is Yulico line with

is open. line Your

Greg McGinniss

morning. on with good Hey, is This McGinniss Greg Nick.

throughout Americas level XXXX & mid-teens does growth so rate, this commenced at the mean it the And Management by considering Just business, was of but driven this growth should contracts we in the like America, year? in seems this renewal see a high looking in year. Property Facility similar signed

Christian Ulbrich

year margin that and focused We business. an are on year, driving into had outstanding last very we

in that make so, I to the want And this call year. at wouldn't point

we very have we it what new And service taking contracts, high want is for contracts the to margin to the are a on mindful And rate, delivering that we business. level because rate very means that want focused very a be renewal so do, excellent. and in. with of client, to renewal type sides. we want which we great increase be that is both We we a to works can in are high That that

I'm than line line bottom that the in in the interested more around interested I'm top topic. So

Greg McGinniss

XQ, Facility Okay. like much from XQ, Management the of Thanks. will XQ? incentive income is & impact of versus more How Property it be XQ a driven, so

Christie B. Kelly

Greg. (sic) specifically incentives, track meet we that From the we the in as business, of Graham don't SLAs throughout perspective Yes, cetera, et the year.

Greg McGinniss

of outsized we Okay. be expecting Leasing, Thanks. to of growth final And a certain APAC in question. flat like should and lot It a then? related drive more growth so sounds just timing the seem XQ impacts in businesses,

Christian Ulbrich

When the obviously we coming had up look think quarter. itself would is Leasing at they're catching areas over we quarters. out. which that stunning the our in But other our I business, Well, business business first expect a balancing had we

into the wouldn't quarter. read too I much So,

driven quarters. not is business Our by

a We forecast are the can we happy really way. good year if in

so, one don't And much too please into quarter. read

Greg McGinniss

Okay. understandable. That's

full so down I X% to research so from assumption going flat that's business, year of And the compared Leasing assume? a that beat to to your

Christian Ulbrich

will is over rates increase forecast the a we first Well, full decreased. good yes, in they year example quarter is I because but, also vacancy the mean, what that that frankly,

on. so there's going lots And

said business, have we I earlier Oak market. Grove beating expectations that with we to As the are our regards

down And market. would to coming expect still bit, is little we beat even a market the so if

Greg McGinniss

Thank Okay. you.

Christie B. Kelly

Greg. Graham Thanks, (sic)

Operator

you. Thank

next with from is JMP Mitch question Securities. Our Germain

open. is line Your

Mitch B. Germain

on taking for year? throughout XXXX. what basis a I for investment question. XXX to be of this Thanks my Should quarter, of this noticed expect trend? we investment's technology the we better obviously ticking the this part higher start seen should expect Is the you've more than drag point

Christian Ulbrich

This agenda XX% margin. leading really have EBITDA to you our hi. whole whole in on really run investment technology space be in And basis that between company Mitch, now on a XX% the our ambition guidance industry. we we that relentless recast and and we that is gave high

that's really quite are the seen we And for do investments you us year first confident allows and have into quarter. this some in year that feeling what to so, this space tech significant the

Mitch B. Germain

was priority? – Great. about on broadening through Capital Markets me Christian, Tell your And that want part plan, the that you I'm of for I broadening how to deliver capabilities. know it that is strategic is mentioned your understand exactly, you trying hiring? be to going framework organic, to

Christian Ulbrich

sales Well, sense in. hire other and be, as talent aren't side in at hire to we another least will If options. strong, in strong organic, say as want which that option sense Europe, would our mean to makes to at in where That not our there's we we broadening U.S. the because side look are or business the we investment areas priority. also us, debt some more on will that will if people on be the in in let's have we we

Mitch B. Germain

last cost general, And the grown you just the Are hiring we've hearing environment the couple seeing obviously to change? considerably. hire been years any in pretty over had

Christian Ulbrich

no. No, surprising favorable is be talented because the it market And would very for people. cycle

And to tough but people. it hire environment. environment a helps Obviously, very is a so, brand tough still it's our

to we why are open all for results of in help And area. kinds which that us so solutions will drive that's

Mitch B. Germain

you. Thank

Christie B. Kelly

Mitch. Thanks,

Operator

our And line from of Sheldon Stephen question last William comes Blair. the with

Your line is open.

Stephen Hardy Sheldon

that last, there all how Integral first the appreciate I growth clients any looking updates my new looking optimism at the business questions. returning progressing. of you then to And changed at I morning. on at few Integral, good call is just has initiative Yeah, over it, pipeline, your about in months? taking win to the level guess

Christie B. Kelly

Hey there, Stephen.

we core saw to from mainly the no as previous Integral, versus Just relates in from business, region. of change perspective London the and just last some And last expectations my quarter. nice comments Midlands from year the increases the our in of the perspective it

Stephen Hardy Sheldon

producer the or then of region Okay, growth. to by you've seen growth What I kind line? guess adding just service may over where wanted you count I head that's ask guess And about be helpful. past few either and quarters

Christian Ulbrich

numbers the side. We at in employed don't how have hand, people have many they producer those

we of business exceptional at normal business if know You just course course something it's the is note of happening, where would is moment. this normal but

quite As people I hire said, the to tough is market in.

and nothing mentioning worth So regards to has people. which exceptional with hiring happened is

Stephen Hardy Sheldon

you. Okay. Great, thank

Christie B. Kelly

Stephen. Thanks,

Operator

am you. showing questions. I Thank further not any

call So back I'll now to turn over management the for closing remarks.

Christian Ulbrich

you to Okay. With again quarter. second Christie following for in forward and Thank no your We will JLL. call. further today's we end look the and me talking for continued joining interest questions,

Operator

the gentlemen, does Ladies this conclude and program.

disconnect. day. a great Everyone now may You have

Jones Lang LaSalle (JLL) 8 May 182018 Q1 Earnings call transcript