Company: JLL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001037976-25-000025
Chunk: 42

Company: JONES LANG LASALLE INC
Filing Date: 2025-05-07
Form: 10-Q
Item: Item 1
Chunk 42
---
60.8 9.9 16 18 Depreciation and amortization18.9 16.4 2.5 15 16 Segment platform operating expenses419.1 364.8 54.3 15 16 Gross contract costs1.1 13.6 (12.5)(92)(92)Segment operating expenses$420.2 378.4 41.8 11 %12 %Equity earnings$1.6 0.1 1.5 n.m.n.m.Net non-cash MSR and mortgage banking derivative activity$(12.9)(9.0)(3.9)(43)%(43)%Adjusted EBITDA$48.6 25.0 23.6 94 %90 %

Capital Markets Services top-line growth was fueled by debt advisory and investment sales, most notably in the United States. Debt advisory grew over 45% for the quarter while investment sales were up approximately 15%. The residential sector demonstrated the most significant improvement over the prior-year quarter, while hotels and industrial also contributed to the current-quarter growth. Specifically, Investment sales in the U.S. grew approximately 46% for the quarter, outperforming the broader market volume for U.S. investment sales, which grew 42% for the quarter, according to JLL Research.

The increase in segment platform operating expenses was largely driven by higher commission expense, correlated to the growth in Investment Sales, Equity & Debt Advisory. Higher platform operating and administrative costs were offset by lower gross contract costs. As such, the revenue growth outpaced the increase in segment operating expenses.

Adjusted EBITDA improvement for the quarter was largely attributable to transactional revenue growth described above, together with continued improvement in platform leverage.

34

Investment Management

% ChangeThree Months Ended March 31,Change inin Local($ in millions)20252024U.S. dollarsCurrencyAdvisory fees$89.3 92.3 (3.0)(3)%(2)%Transaction fees and other8.5 8.9 (0.4)(4)(4)Incentive fees0.7 2.2 (1.5)(68)(67)Revenue$98.5 103.4 (4.9)(5)%(4)%Platform compensation and benefits$58.3 61.3 (3.0)(5)%(4)%Platform operating, administrative and other16