In This Article:
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Revenue Growth: Double-digit revenue gains across resilient and transactional businesses.
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Adjusted EPS Growth: 28% increase in adjusted EPS.
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Debt Advisory Revenue Growth: Over 45% increase in the first quarter.
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Leasing Advisory Revenue Growth: 18% increase in office leasing revenue; 14% increase in industrial leasing revenue.
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Capital Market Services Revenue Growth: 45% growth in debt advisory; 15% growth in investment sales.
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Investment Management Fundraising: $1.9 billion raised in the first quarter, compared to $500 million a year ago.
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Liquidity: Total liquidity of $3.3 billion, including $2.9 billion of undrawn credit facility capacity.
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Net Leverage: Reported net leverage of 1.4 times as of March 31.
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Share Repurchases: $20 million of shares repurchased in the first quarter.
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Full Year Adjusted EBITDA Target: Maintaining target range of $1.25 billion to $1.45 billion.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Jones Lang LaSalle Inc (NYSE:JLL) reported double-digit revenue gains across both resilient and transactional businesses, with a 28% growth in adjusted EPS.
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The company experienced significant growth in its debt advisory business, with revenue growth exceeding 45% in the first quarter.
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JLL's real estate management services business capitalized on the growing trend of outsourcing, contributing to strong revenue growth.
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The company has a strong balance sheet with liquidity totaling $3.3 billion, including $2.9 billion of undrawn credit facility capacity.
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JLL's investment management business saw strong fundraising demand, particularly for its US credit strategy, raising $1.9 billion in the first quarter.
Negative Points
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The market backdrop has become more dynamic, creating a more challenging operating environment for companies.
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Some clients are delaying decision-making due to macroeconomic developments, impacting short-term business performance.
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The investments in technology and human capital have weighed on the segment's adjusted EBITDA performance.
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There is uncertainty in the macroeconomic environment, which may affect transaction activity and investor underwriting.
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The company faces tougher revenue comparisons in the second half of the year due to strong growth in the previous year.
Q & A Highlights
Q: How does JLL underwrite the longer-term political risk with the current administration, especially with the possibility of ongoing 90-day tariff extensions? A: Christian Ulbrich, CEO, explained that the current environment has increased uncertainty and decreased visibility. If ongoing extensions become the norm, businesses will need to adapt to this environment. JLL correlates with GDP growth, typically driving growth rates about three times that of GDP. They hope for better visibility, which would benefit their clients and operations.