Company: JLL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001037976-25-000045
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Company: JONES LANG LASALLE INC
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
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For the second quarter and first half of 2025, Capital Markets Services top-line growth was fueled by debt advisory and investment sales. For both the second quarter and first half of 2025, the residential sector delivered the most significant contribution to the year-over-year increase, with notable second-quarter contributions also coming from the office, industrial and retail sectors. Geographically, the U.S., Japan and MENA led the revenue growth for the quarter (year-to-date growth was led by the U.S., India and the UK).

The increases in segment platform operating expenses for the second quarter and first half of 2025 were largely driven by higher commission expense, correlated to the growth in Investment Sales, Equity & Debt Advisory. In the current quarter, JLL recognized approximately $14.0 million of incremental expense associated with an enhanced loss-share agreement with Fannie Mae for a specific three-loan portfolio. The impact of this item on year-over-year performance is more than offset by the $18.0 million expense recognized in the prior-year quarter associated with the August 2024 repurchase of a loan which JLL originated and then sold to Fannie Mae.

Adjusted EBITDA improvements for the quarter and first half of 2025 were primarily attributable to the revenue growth described above and the net impact of year-over-year loan-related losses. In addition, compensation and benefits expense as a percentage of revenue modestly improved for both the current quarter and first six months of 2025 (enabled by increased use of technology and shared service centers), with the segment achieving significant Adjusted EBITDA growth for both the quarter and half year.

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Investment Management

% ChangeThree Months Ended June 30,Change inin Local($ in millions)20252024U.S. dollarsCurrencyAdvisory fees$93.3 93.1 0.2 — %(2)%Transaction fees and other6.5 6.9 (0.4)(6)(9)Incentive fees3.3 2.6 0.7 27 24 Revenue$103.1 102.6 0.5 — %(2)%Platform compensation and benefits$60.9 59.0 1.9 3 %1 %Platform operating, administrative and other17.5 20.5 (3.0)(15)(17)Depreciation and amortization2.8 2.0 0.8 40 33 Segment