Company: JLL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001037976-25-000071
Chunk: 54

Company: JONES LANG LASALLE INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 54
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 (2.2)(4)(5)Depreciation and amortization8.4 5.9 2.5 42 43 Segment platform operating expenses245.5 238.1 7.4 3 2 Gross contract costs24.3 26.5 (2.2)(8)(8)Segment operating expenses$269.8 264.6 5.2 2 %1 %Adjusted EBITDA(1)$55.8 57.7 (1.9)(3)%(6)%Equity earnings (losses)$1.9 (25.0)26.9 n.m.n.m.

(1) Adjusted EBITDA excludes Equity earnings (losses) attributable to common shareholders for Investment Management.

Investment Management revenue growth for the third quarter and first nine months of 2025 was fueled by higher incentive fees. Advisory fees were largely steady compared to the prior-year periods, as strong performance in U.S. core open-end funds offset the impact to assets under management ("AUM") from client asset dispositions in Q4 2024.

The increases in segment platform operating expenses for the third quarter and first nine months of 2025 were largely driven by higher incentive compensation expense, correlated to the incentive fee growth described above.

Third-quarter Adjusted EBITDA growth primarily reflected higher incentive fees, net of related incentive compensation costs. In addition to the aforementioned third-quarter impact, the change in Adjusted EBITDA for the first nine months of 2025 compared to prior year was influenced by the absence of the $8.2 million gain recognized in Q2 2024 following the purchase of a controlling interest in a fund managed by the company, which outpaced the revenue growth (net of related incentive compensation expense) described above.

AUM increased 4% in USD (1% in local currency) during the quarter, and increased 5% in USD (1% in local currency) over the trailing twelve months. Changes in AUM are detailed in the tables below (in billions):

Quarter-to-dateBeginning balance (June 30, 2025)$84.9 Asset acquisitions/takeovers1.0 Asset dispositions/withdrawals(1.1)Valuation changes0.5 Foreign currency translation2.4 Change in uncalled committed capital and cash held0.8 Ending balance (September 30, 2025)$88.5