JLL - Earnings call transcript Q4 2024 | Jones Lang LaSalle Incorporated

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Operator

Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jones Lang LaSalle Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions].

to of conference Investor like Hogan, to now Head Interim Relations. would turn over the Brian I Please go ahead.

Brian Hogan

ir.jll.com. Lang website. this Thank are These you, release, file Earnings Relations Jones intended XXXX Investor the along available Fourth Inc. Please and good presentation of our section morning. on Conference Welcome with the to Call the and our supplement we materials issued morning, to visit slide Quarter LaSalle, our earnings Earlier Excel for remarks. prepared

During financial call in useful slide we presentation. the GAAP include well as our to our we provide measures We in presentation as slide file, Excel earnings reconciliations reference and financial and of information believe measures, supplemental for investors. certain non-GAAP non-GAAP which release

transactional we footnotes which reference We define and also our of resilient the release. earnings in revenues,

a recorded. and call website. webcast today's A this call be transcript posted As is conference being of our to will recording live reminder, and

expectations and The of the forward-looking with differ Any from undertaking statements. in Form result and statements a statements in may made as any forward-looking publicly plans, SEC. revise any those filed performance results about other or XX-K forward-looking performance, factors the Actual and and are reports company future annual results disclaims on report our statements. to discussed objectives update

otherwise Finally, a unless period noted. reminder currency, that percentage local variances are year against the in prior

Officer, Chief turn I opening Executive and now the will for President Christian call to our remarks. over Ulbrich,

Christian Ulbrich

quarter earnings you, and Thank our call. Brian. Hello, to XXXX welcome fourth

out in and notable and ago. investments growth for market both quarter we XXXX, the the and year fourth overall revenue share are The laid strong We exceeding made people with gains. our our very targets we have platform results pleased a

flow efficiency operating leverage. XXXX the and profitability enhancing cash free is reflected on of in our improved focus course Our throughout

led lines. an by Transactional driven sustained Starting the was financial quarter debt sales, and revenue resilient growth our project in revenues. with transactional management by grew double Revenue and results. in leasing growth equity acceleration advisory business fourth our digits, in investment activity and

market an We real to alongside estate gain improving continue share cycle.

demand XX% time, expertise client resilient grew the same adjusted Adjusted drove level, EPS the EBITDA within XX%. quarter. estate consolidated fourth the revenues. management At and in innovative At for continued industry grew solutions momentum real

For full EBITDA grew to year, an testament to XX% XX% the EPS growth, both adjusted XX%, impressive significantly the respectively, drive adjusted and across operating revenue ability platform. our leverage and outpaced

reduce which pleased with free to XXXX. shareholders us Importantly, capital in the leverage and generation, flow to cash very we our in in are enables our return business increase reinvest

position Our flexibility opportunities. where strong and see to capital prudently balance liquidity sheet, provides cash we generation allocate

As invest clients. the for our we differentiation and business superior priority, in to deliver continue outcomes drive to top

launched which JLL Partner across JLL During facilities help platform transform tools, work bill our business my into assistant, used how data. leaders nearly call with of power we is service [ the by quarter, GPT, including harnesses clients elevate announced consolidation capability our our half first commercial NJLL-Azara, estate's generated XXXX interact analysis in technology real profit The real AI estate to designed data and and corporate applications insights. now colleagues. we management the AI revenue-generating partner of the JLL timely people X smarter of businesses deliver power ] ]. leading we our to the with and [ cost-saving AI to and

Combined market. ability our further these the applications with people, in to accelerate we will extensive believe expertise differentiate our the of

investment help Management with management developments, software Slate fourth also decisions. Asset In Beacon an in a we addition and commercialize announced asset JLL into to optimize joint clients these asset exciting will quarter. venture Together, to we the scale investment and

growth. to continue pursue long-term our augmentic platform organic see we initiatives we and to enhancing drive select M&A, For that opportunities

Power ] is that accelerates strategy project expectations. our platform in brokerage real Our reflected technology-powered of capabilities are our enhanced a data line our progressing Both SCALE in our leasing commercial and acquisitions management estate centers technical and raised Solutions, digital [ for with which capabilities. XXXX integrations

are and remaining billion shareholders have actively $X authorization. share our repurchase returning capital we Finally, to on

$XX XXXX, But During our our investment repurchases stock from the million, amount we generation, any dilution to and on share minimum, macroeconomic weigh of opportunity a repurchases and cash totaled geopolitical landscape depend will share future the offset outlook plan broader set. compensation. against as

over more targets. call financial financial provide detail that, our will to Karen on our XXXX now I With turn results the and to

Karen Brennan

Thank you, Christian.

platform, revenue XXXX. Our differentiated on the strength meaningful line quarter along efficiency, reflects earnings The services operating strong our top performance for talent. in and with produced focus and margin growth, the of year growth and expansion JLL's the ongoing

to initiatives our cash strong helped conversion flow. free efficiency improve to drive working Importantly, capital

was growth which I asset driven in classes office, outpaced market Beginning revenue geographies, review leasing, Leasing and now XX% our and led by performance China. by in globally quarter increase X% was grew Markets primarily increase to by will with generated the U.S., revenue operating segment. the Greater across Research. fourth double-digit and growth JLL broad-based most Advisory, notably the India across according which

so geographically Asia meaningfully outperformed to the respective market in broad-based had teens pre-pandemic rate. industrial the Americas classes, JLL and decline. the Pacific and Pacific averages. growth also well in of market asset increased uptick below slight market all historically and Asia has growth industrial Large outpaced leasing greater our office. share where sector The U.S. they market, a high remain transactions compared revenue rates The for nearly Both was respective notably favorably the

quarter of year prior the year-over-year profit full and EBITDA year Asia full growth. revenue to of accruals incentive greater quarter. primarily Markets and U.S. timing reflected the largely Advisory countries, fees Compared due improved was with quarter, and the the the adjusted the leverage. Pacific quarter several profitability the management compensation pass-through by growth Higher was costs as were adversely year and flat portfolio driven for for full Management The quarter Property year the the result full leasing marginally for in impacted for in platform expansion increased the year.

The headwinds and for XXXX, may much in OECD geopolitical structure acceleration higher recent announced growth a in from XXXX our quarter. demand quality ahead, and the Index continued Looking positioning of Within of work continue and throughout tenant Confidence to although active impact new U.S. our into continue we last assets. the to while general evolve decision-making. from possible organizational Business to in we we for provides leasing under see stability developments trends teams XXXX requirements the Property optimism expect bring growth together Management, XXXX, we

dry debt in the full interest quarter part advisory acceleration revenue in investor and elevated sales, greater levels year sentiment, and equity was catalyzed Shifting to sector liquidity in the with industrial our stability more capital markets which multifamily investors in segment. an the improved the led powder of U.S. rate investment asset significant and In across notable globe. the more across growth to to entering by institutional increased in growth willing the quarter, classes, market, and transact. revenue

in which The their performed people. revenue, just higher transactional EBITDA over respective driven XX%, cost in Markets part for Driven segment market accounted and The by full and discipline. XX%. sales the quarter advisory Asia our over year was for adjusted notably global grew and revenues continued technology revenue of XX% and approximately growth by better Pacific the revenue debt by Capital recorded U.S. than investment the JLL Our activity leading Research. our platform, and sales predominantly quarter, grew

$X and The a Mae a a of EBITDA loan growth by in adverse loss adjusted August Fannie million was full offset from in year increase credit loan impact million partially $XX nearly the reserves. repurchase noncash

strengthening by bid actively the intensity our real debt in stability index. encouraged quoting and are banks markets, Looking reflected ahead, U.S. estate of closing proprietary we the general the the on loans in and more

sales, Our robust. is global pipeline debt and investment advisory equity

So and of influence continue and the outlook economic deal the interest evolution pace timing will closing. of to the rate

the the by in next incremental Work both expansions and The year dynamics. our quarter led for Moving differentiated Revenue X-year well costs stemming near as management wins was workplace new pass-through the the as from in in mandate on reflects capabilities. and basis U.S. growth growth a management, revenue XX% stack client platform quarter workplace to

most quarter new augmented and in broad-based existing costs from growth wins client revenue in across pass-through higher accelerated largely as Management volumes. near fees, in management increase growth Project the an XX% geographies the and was

fee technology margin For management expansion. Work the by the quarter a medical and long-term revenue year, which project growth adjusted associated management benefit for our investments will EBITDA costs growth. artificial growth and a including and platform was capabilities, intelligence mid-single-digit we The incremental to was higher support attributable as flat and pass-through the offset actuarial Dynamics growth lower believe in self-insurance with was

tax more which quarter. third the by and year, gross quarter platform an margin in driven full scale, fourth than and the for the revenue the at expense offset third Looking elevated receipt consecutive items growth year, the expanded

moderate new of Workplace lap we Entering is XXXX, we long-term capturing strong, and the confident in Management expansion onboarded we trajectory expect focused workplace and growth opportunities. are to as as wins, on the business meaningful mandate We sales the pipeline in XXXX. remain our which management

project securing and Looking the activity recovery management, for mandates. at additional leasing well bodes

spending CapEx current rates. near-term may So of growth level the dampen corporate

to investments enable further drive technology to outcomes align expansion. to continue platform margin client scaling We superior and

Technologies. JLL to Turning

The decline the the and lower the more bookings in quarter Solutions drove interest both year-over-year revenue and adjusted lower growth decline. drove year. carried over the which revenue was the Continued EBITDA services than Technology impact change by year, offset the revenue of full software past segment for in

segment to to profitability sustained are We progressing within investments balance drive we growth. as the

assets drove are Europe, on increase quarter business X% of structural as in the incentive XX under fees a currency full foreign in clients Advisory for Now which lower impact lower from year from lower LaSalle. of the a earlier, in Higher management was asset half we the to assets revenue from as declined dispositions quarters behalf year over to lower-margin the exchange in well under the management months. the movements, valuations. past fees and previous Absent changes on of quarter. on the discussed fees down

valuations variable continue LaSalle equity in are by of was The earnings our expense. X.X driven quarter. compensation increase higher of related incentive for years about declines, in the After adjusted stabilize quarter and broadly EBITDA LaSalle's to positive the fees, in reflected net the

pick up, levels compared year So raising year interest was particularly and and for continues core investor normalized full to capital the higher than credit prior deployment products. and to muted

we under currency year, momentum adding near-term notable and dispositions While of course assets asset and are management headwinds. recent to the over see deployment the foreign opportunities,

net to from compensation business in accruals. growth Turning loan Fannie greater partial cash offset higher in cash Higher partial quarter, as performance in free largely taxes and a was a both as the quarter quarter incentive the cash well the of business the free for The to and improvement third to was improved Mae in also for reimbursables the earnings attributable year from flow. due increase offset An flow. increase full receivables and a were year year. and full cash repurchase full

Regarding Mae an continue we the Fannie we improve to work the to loan eventual sell. and towards property repurchased,

or the in also for originated to single situations. monitor loans agencies is a of that loans default with with a continue confirmed to We currently portfolio the confirmed fraud fraud. There's borrower potential borrower

Fannie on with resolution discussions of steps begun Mae have the situation. and next We

of Shifting capital end balance totaled $X.X fourth the billion of $X.X credit billion sheet facility undrawn our capacity. quarter to at Liquidity allocation. and including the

billion we In of cable had on $X.X program. commercial untapped capacity our addition,

debt both reported the from a As to was XX X.Xx, higher of net adjusted and X.Xx leverage December EBITDA net over months. trailing due down year a reduction in XX, earlier

typical Income we in million $XXX JLL the January. part increase Property the by leverage payments subsequently incentive driven quarter investment first well made that in announced as We in seasonal in incremental compensation last and expect quarter, growth Trust, as a annual in

and capital to capital course differentiate and Christian returning capabilities, leverage. platform we As XXXX shareholders deployed while over reducing further mentioned, our also of the to

and our platform in business Growth we collectively resilient by scaled year financial lines opportunity a JLL's for full uniqueness continued pace though be geographies. more market driven XXXX capabilities. the in optimistic transaction and globally and solid, vast remain Regarding data-driven nuanced of our the may across pickup activity, are outlook, a uneven

EBITDA As we midpoint. billion range both capture targeting operating continue to to growth future a billion are growth invest at XXXX $X.XX of adjusted opportunities of XX% $X.XX full reflective drive the leverage, we to and year

the seasonality typical Our XX% United dollar are generated outlook reflects the U.S. around as notable States. includes revenues outside of of strengthening the and

growth to drive our continue efficiency We resiliency to our the business, significant to clients. opportunities and positioning see team and deliver service leverage to to our enhance exceptional our of platform

you. to back Christian,

Christian Ulbrich

momentum strong Thank with started our you, Karen. businesses. has The across year

as clients opportunity business significant attracted platform. Our has are global to Workplace Management growth our differentiated

pipeline, benefiting grow. the very to development Our mandate, rents continue leasing the to return due low from business is will increasing to office

government bond that Intensity markets seeing While reflected encouraged cuts, we We firm in and global rate outlook bidding particularly fourth remained for in increases more bit our tempered are capital stable in see yields Index, this U.S., within we're proprietary held in quarter. which business. the the outlook JLL's activity

Before update the that I on business I realignment our to January close effect call, into segments give X. went the an want on of

last software Technologies we quarter, improve as across capitalize platform capital and shift, operations announced together reported technology building Investment solutions. capital under Estate Markets and be Leasing as we reported LaSalle JLL experience. one groups synergies changes will client services, this As markets are on the structure market Management and where will named Concurrently, Management all Advisory management Advisory. we reporting as bringing our These Services. Real With

change new of services. names While a description believe this breadth we our and does structure, better the reporting the diversified not products the provide of respective

world We for hard our lead in JLL ensure an continue thank forward around are our ability slide. like to opportunity I about deliver our we what the work colleagues whose all achieve look optimistic to acknowledge tenacity even can and future. and XXXX. together to to to to take we this better I'd

explain the process. please Operator, Q&A

Operator

Instructions]. [Operator

line come Our will first of the Blair. Sheldon with from William question Stephen

Stephen Sheldon

within in what end Maybe versus starting range businesses? you here, end talk can the the you're low more the roughly high EBITDA just guidance about transactional baking especially of the for

Karen Brennan

Sure.

points target do to I want I range prepared some my a I things couple remarks. talk adjusted broadly. the of highlight just amplify EBITDA said as that about in to First,

First, meaningful business, just that of any the our a departure the in historical typical experienced. reminder expect seasonality we averages and from we've don't

So contribution as quarter, contribution profit profit if quarter you average low around quarter the teens with think first the fourth about by XX%. compared the

point. one So that's

our the I outside overall with from results is want the U.S. now XX% the revenues dollar strengthening to Second point of of really financial our impact in coming

getting with our more business and range a then that. really of question, start key path anchored some transactional to the assumption the lines. So the gradual around in for of specifics I'll recovery your midpoint the assumptions for it's just

at interest rate current on current based current market and the assume we So today. outlook pace momentum our environment, consensus GDP pipelines

as the that conditions faster higher the over call by a it of midpoint this the at type or in if you typically the the thing this of point will to at about That's we uneven us be at what anticipating in then lower And pace end around time. And think different another look the of to takes based we're hold really will than out bring in determined market the on environment. or recovery geographies recovery range, our modeling world. how slower

play as will And globally so somewhat that unevenly we expect well. out

And up can so rates mix end of some growth the ultimate we business where those kind in skew range as well. of that and

Stephen Sheldon

margins. ask maybe That's about incremental And to I it. really wanted Got helpful.

think higher losses know portfolio. advisory of items and Leasing I you Markets some I kind there's incentive we Advisory, in as think, now call in within Markets XXXX one-off Capital about that and Just continued like guess, loan comp, the I

have I visibility think be continue as to higher Karen, incremental of and margins? into mentioned, on do could that just that we you But retaining profitability incremental should spending one-off on that we how think be And margins. on maybe thinking I items about some could you it guess, the might producers XXXX? about way kind weigh recruiting

Karen Brennan

question. Great Yes.

in how about might Let or what XXXX XXXX. some translate would the that into and of one-off think how me call and we then items out happened translate

Again, margins amount the and we timing our everyone noise distortion encourage just I There to also due basis. year plan first really versus at of would in or revenues a horizon a expenses, one-off individual quarter. longer-term a just full in quarter. on incremental would to items the we and business and be look can of for -- fair on say So

So from take Advisory, in discipline that did onetime We cost-out average we higher business. of a influence materialize a even a X-year that really look. that benefit that couple Within actions and business. kind the of call things in year lot out of margin cost in of the incremental Markets had a things to than that

coupled something we margins high Markets and strong exceptionally an moderate that, drove we've incremental closer in to So historically. with to experienced expect to really Advisory, growth that what

depressed Fannie we've Within capital around item there it Mae which markets, then in XXXX margins the the kind the onetime incremental call historical associated range with of that repurchase, to the a really out bit experienced. below expenses the was loan

that course Dynamics, year-over-year the margins year-over-year self-insurance there, quarter, out One benefit the Within changes called of which over item in it a actuarial the of the medical couple I the year the associated $XX U.S. fourth we about items in impacted incremental million was with was the Work had was difference.

And then gross down last impact. million quarter, bit. couple things in brought XXXX, it a a were $XX a about we that Dynamics receipts talked in tax Work of There

-- of There that there future onetime these where we our always we -- right balance and continuing incremental can And we're about forward, we find for help we It's were in some the but same think growth we some trying will will to momentum items, across experienced to that's came in continuing really invest year. a those margins business hopefully moving as the strong to that for generate that so of the to sure future making invest platform in the have we're lines important growth. relative provide evaluating more historical context of averages. number for XXXX So are constantly we around. things out level be how go

Stephen Sheldon

AI one to what That's incrementally is Got sound think, it, JLL an Christian, excited, more I a about continue really doing just from Karen. perspective. helpful. last for Maybe

but kind bit commentary, within more of trending. the love gave a of just out that's would of AI detail of usage little been So and utilization you've on stocked how how solutions to rolled get some you

Where thinking do efficiency about it? the of be or needle-moving your as areas you increase see are teams? kind for you biggest think we that to opportunities productivity about could How

Christian Ulbrich

Yes. AI Sure. have been I products. our really mean working we hard on

use a There to products the within no or clients already of ideas have now ready, the cusp rolled rolled to productivity are couple of our being the clients increase our platform. limitations on and how which out. We at we can literally and out within make dozen AI are to either of of benefit moment, JLL

And centers. we execute on you into on with of really our is is forcing a once the focus And where opportunity opportunity business businesses main our business, all task on you they impact. of to what steps generally aligned some are start using make so to there really around the those then AI the can that using those can provides massive have to from focus to gains. how And areas processes align and biggest to is productivity on great stay AI this disciplined and is send whole usually, on that we the you seeing then one how really

level our be will gains now excited us productivity increased are with about achieve really has this we station, and So the The left we of for services and can towards the clients. the future. train the

Operator

of from Our Nick Joseph Citigroup. with the line question next comes

Unknown Analyst

what hoping seeing then West maybe Coast. could on office outlook what And specifically, was broadly? for touch I the you're the you anticipates more leasing on XXXX

Karen Brennan

Sure.

office by full that the well a saying an because experienced story our the industrial in quarter want both revenues as overall. me year. results we our outlook for to Let I'll we're little as start and I the think leasing leasing. And business, in just talk important with the for And it's we pleased of touch leasing really the on part as bit about about first,

in office level And office. about quarter absorption that's XXXX fourth quarter but with positive XXXX. was the It's fourth that's quarter the starting encouraging since since the So at leasing marked since highest its of the transpired below U.S., XXXX. Globally, then think of quite still the first we as importantly, 'XX. levels, all

there. spots a call So bright of to out couple

for approximately office market office happen going what's things terms estimates to downsizing, leasing think of as and the the U.S. versus of the expansions now positive new of our that top is now at before. existed we of of leasing leasing XX% look new about cycle, continued net going or XX% of kind been has what we our that space One the absorption research forecast in team on and is on way either approximately demand activity requirements, through downsizing so

So that's very encouraging.

final That levels. XX% team again, a the past. continued our point square the And It's in I'd still to for XXX,XXX quarter quarter-over-quarter. about feet, call activity we then in tracks XX% I'd over and that improve it's U.S., deals there, talked that about the And in say is as below well. up about pre-pandemic research out

a Going industrial story. side different things, to the of of bit a it's

We market last in experienced that XXXX. have further declines has a year

have up of markets who We U.S., the to is through. That's in the the builds optimism excess expect are we're growth. do being that occupiers existing with today, utilization and we said, some they're some seeing stabilize space, their still during line XXXX. Where for All capacity see we in further averages, that focusing really there's for prepandemic particularly industrial increasing demand being remaining during on the delaying decision-making, worked pandemic. leasing

Kansas City, markets in and Angeles Francisco. And San and of and asked questions the if come together, a hockey momentum or leasing the Los through about X then do expect context, will out that I the growth office in look today. think in more San we areas. about and scenario market continued of New greatest markets be based We're the to we stick those seeing XXXX. taking our the just There, leasing Antonio with but we're course you So U.S. gradual over had surrounding forecasting you York on couple pipelines, growth would what call a specific at not

gateways again, and U.S. an there. different But momentum gateway we're markets of So cities the secondary across interesting markets seeing -- list both in so and good

Unknown Analyst

terms are of the generated, free flow M&A? about versus additional share executing then being in on just thinking that's either was you helpful. how repurchases That very And cash

Christian Ulbrich

a it's business I'm driven are [indiscernible] Listen, obviously share performance near the by what in seeing do that overall we we repurchases the amount taking future. question. question. and in The of are our

We still in volatile very a are environment. currently

repurchases of of the opportunity of upbring other hand, one assure offset very beginning but investment strong dynamics share you we always compensation. for our with the longer-term some environment valuable any against we hand, we are real trade from at that a there of areas industry, whether the see of And the over is intending geopolitical at the estate the shareholders, uncertainty. cycle, share the can and probably on a regards obviously, On are dilution it's but other within I our bringing bit platform our M&A, to match we then to kind least for environment,

Operator

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

Anthony Paolone

of My see margin at question you that whether XXXX is longer into perhaps as the And EBITDA of expansion sense back you to previous in -- you the your for I to around margin midpoint, versus how some first put the see maybe you like or where the forth guidance, go can us fits had company calls term? discussion. not? margins also a brackets to And give

Karen Brennan

as and of quarter. will that shape then business year yes, a particularly of our depend go matches full have how the of with the the consolidated portion are the we course on also the we on back and up in in range our forecasting factors our mentioned where expansion of the a of earlier, over number fourth of I revenues depending anticipate So do each on the EBITDA profits half end lines. how of year, up And we and year certainly significant terms and that margin across adjusted expenses, a the basis

we'll accordingly. be so And managing the business

Anthony Paolone

time? prior Okay. you over still where that being we valid want think about And targets still as do and you margin to should see as those be

Karen Brennan

no Yes. Yes. expectation. to change There's that

Anthony Paolone

hit But Work some that Okay. that think we And if a then into that? Does double-digit Like comps top talked line growth for XXXX. wins any still in digits? around revenue about tougher Is of mean, context segment. that about in you just the fee the I more mid-single it Dynamics, settle grower? given likely

Christian Ulbrich

Well, -- on single line are very, growth listen, trajectory to that was very win double-digit think we means long we which that we very that going I are going more high, is now year are top back where is we very XXXX expecting sentiment, business. in this rate back overall a normalized term after environment, positive. the The and for that high that low digit, the around business still unusual

Anthony Paolone

point? along Okay. improve one Can the the just to where as Christian, that for is to opportunity at and #X me on of mentioned last priority you maybe thinking here. as to own in And then see invest business. invest kind to growth us their just you versus this your give most a sense areas you might be running

Christian Ulbrich

to we part mean, of interested that often have our we business. the stated increase are I Well, recurring

grow management our we sticky fast business and So are our heavily really into business, Dynamics of the Work the is very something part of business property our it. to elements best other and looking

talking about see earlier for return business. our also strong is clearly, drives bottom but the we clearly to I capital was taking our true due areas all The around of markets advisory our rates scale, where the them AI business are and the constantly opportunities line to which other part productivity, Leasing building technology. is that additional increased investment and

where is can still still an significant you into even also then room geographies market We opportunity there grow markets other share. but go U.S., in the tremendous take to like to have

Operator

next comes Sachs. Our question from the line Blouin Julien Goldman at of

Julien Blouin

should versus the think cadence-wise, really us guess, of 'XX markets slower you seeing second quarter, the sort we about markets in fourth about I that so a half the the then how capital commentary has the think get saw. 'XX, Karen, of guess could you're pipeline remains as And half capital strong. you tougher. I gave, and sort what of sense the far we trended year strong in a we when of comps you activity back said give

Christian Ulbrich

weeks rates staying that of today, in couple in to first or of the interest really less to year. pretty where And saw start our expect the rest in all, strong stable 'XX, we year-over-year. be Markets business trend for if more a of they are are first Well, Capital we line the

or expect So not that We half is of the at year. the if down really. stays situation what of second less in part the beginning in having of year, to coming the the your trend second we the are line more don't that, question,

from still a low base. fairly coming We are

you base. which increases, those low have So fairly in seen against a XXXX are

to a have grow 'XX and back we volumes overall bit which levels quite in in in the we seen 'XX. that So transaction still get to have to --

Julien Blouin

leasing high the And thinking about a sort about sort of is Do of really 'XX sustainable results, industrial on impressive leasing side? gains how over are well which obviously market. these sort industrial And leasing share you of we're into then the I market guess that? level, driving think course above sort year? of should think of industrial What at the we the

Karen Brennan

take that I'll one. Yes,

well in X what's larger of occurring. I've about relative sizes overall mix And sizes of been talking play market, things have a of has of transaction where to we look in the as there share office In to tend been really business. a we our terms at the our just return the industrial, transaction of outperformance is larger are driving that and

contributing certainly it. that's to So

teams investing forward. -- where build and the also think we been, see time have about industrial and our right, of shape going growth We over continuing to opportunities leasing opportunity

that shorter-term industrial my as a midterm continue outlook focus continue generate to is I we as the and leasing really strong thing future. term, remarks, of it's we believe and still the us for the and -- big in area industrial is softness will the remain in mentioned activity long in in a So

Operator

next of [Operator KBW. from question our Instructions]. take Rahmani We'll at line the Jade

Jade Rahmani

On office you to the recovery more starting widespread. are side, the become see

far, So to A, buildings. the Class A focused it be plus seems in narrowly Class

curious some more New becoming seeing you're City, -- card You into did cite adjacencies a the strength or if as the bellwether for and in Avenue But Park of widespread. recovery the example, spillover those York example.

Christian Ulbrich

Grade the it I there's from on market. are buildings, too more coming so could basis, we A+ left. A. are Grade where B A no benefit. to is it despite said we vast a see development which as flight is literally They flight happen clearly way into Tokyo, biggest to some just market. it's within Grade before, that Well, in buildings, very the having stated the only that those returning you little office because have was there XXX new vacancy interesting building, which taking what there's Still, quality, there And just are now And to actually a that very buildings, a quality and moving is into buildings spillover see

also an in be some will currently leased, will for sufficient buildings buildings help we a see. But management opportunity Grade there needs of project again which so that and then most upgrade those And get be actually cases, of the business better upgrade those will than going B to our levels an at forward. buildings,

Jade Rahmani

lot the of a of contemplating prohibitive. the place taking the where doesn't is collateral have kind is you we that is have or that to owner because put or are money rates sponsor interest something taking in office where are the deals And lender in standstill something -- anticipate

So Grade are you buildings? to see B opportunities in those emerge actually starting

Christian Ulbrich

in reasons they willing are describing, with still But are put into many out because do. of sponsor the uncertain still may building. of of described, last be may where you we are kind to there still a more environment be the the slightly or or after sitting the with lender we obviously who a in sitting a coming -- isn't crisis you CapEx is Yes, buildings they unable

situations But new taking of now. statistics lack opportunistic then the around those some And pretty opportunities the more of players those the see are and transparent. advantage and of sorted of development out market we being to more also coming are

And to curve, good so a seems pretty market who availability that the enter play for opportunity now. that be to those have it to

Jade Rahmani

business run to the on expectations And Technology a quarter? the rate basis JLL what for currently you Software And Is then also and business, during profitability turning Technologies, the Solutions the if write-downs going drove touch on are could what your forward? profitable?

Christian Ulbrich

we into are eager a basis. to that on profitability Well, year pretty Okay. bring obviously full business

specific don't areas, of into sight same that time, profitability. was but into platform, it at We have trajectory balance that, the bringing to lose the growth investing back seeing

a on determined being in that profitable. year that clearly We full XXXX, are basis P&L is

the on. trajectory we And so are that's

reminder, the though portfolio And other and creating pivotal weren't saw in for strategy we portfolio write-downs cutting-edge the a have our before, second it there question, superior but in we we just company, by core account couple technology to enhances to spoken But where investments, business our concentrated technology had offset project playing of company. a your technology as delivers to is hand, one best-in-class of regards a especially companies other on in purposes, With mainly it one write-down, our clients. on enough of gains, role then -- a and about technology a were that couple products. to we able with

and So talking side, we the some variances on the disturbed are those not by overly about losses. equity gains

what we and for portfolio we what that quite and we learning Overall, our happy outcomes our what platform. achieve own with are are clients for from can

Operator

conclude will closing over Christian question-and-answer And I'll for back to turn And that our call now Ulbrich remarks. the session.

Christian Ulbrich

Thank questions, following I today. you call. participating team, further thank we we behalf the first With forward no with close and you, the Karen on entire today's for of again you to call the will quarter. JLL speaking look operator. all On

Operator

conclude call. joining. This all you today's for will Thank

disconnect. You may now

Jones Lang LaSalle (JLL) 19 Feb 252024 Q4 Earnings call transcript