Company: JLL
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001037976-25-000071
Chunk: 52

Company: JONES LANG LASALLE INC
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 1
Chunk 52
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1,140.4 994.2 146.2 15 %14 %Platform operating, administrative and other251.5 206.4 45.1 2221Depreciation and amortization46.2 50.3 (4.1)(8)(8)Segment platform operating expenses1,438.1 1,250.9 187.2 1514Gross contract costs4.3 36.9 (32.6)(88)(88)Segment operating expenses1,442.4 1,287.8 154.6 12 %11 %Equity earnings$3.2 0.8 2.4 300 %276 %Net non-cash MSR and mortgage banking derivative activity$(17.3)(25.9)8.6 33 %33 %Adjusted EBITDA$193.2 124.5 68.7 55 %54 %

For the third quarter and first nine months of 2025, Capital Markets Services top-line growth was fueled by debt advisory, investment sales and equity advisory transactions across nearly all sectors, with the most significant contributions coming from multifamily and retail. Geographically, revenue growth was led by the U.S. for both the third quarter and first nine months of 2025, augmented by strong contributions from Japan and Australia for the quarter and India and MENA for the year to date. Globally, investment sales were up 22% for the quarter, significantly outpacing the broader investment sales market, which grew 12% over the same period according to JLL Research.

The increases in segment operating expenses for the third quarter and first nine months of 2025 were largely driven by higher commission expense, correlated to the revenue growth described above. In addition, $7.2 million of incremental expense associated with loan-related losses, including an increase in loan loss reserves, was recorded in the current quarter. In October 2025, the underlying asset for the loan repurchased in August 2024 was sold; the $3.6 million expense impact - reflecting final pricing and expected closing costs - was included in the aforementioned loan-related losses recognized this quarter.

On a year-to-date basis, in addition to the loan-related losses described above, we 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 is more than