
(in millions, except share and per share data)	March 31, 2024	December 31, 2023
Assets	(unaudited)
Current assets:
Cash and cash equivalents	$
Trade receivables, net of allowance of $ and $
Notes and other receivables
Reimbursable receivables
Warehouse receivables
Short-term contract assets, net of allowance of $ and $
Prepaid and other
Total current assets
Property and equipment, net of accumulated depreciation of $ and $
Operating lease right-of-use assets
Goodwill
Identified intangibles, net of accumulated amortization of $ and $
Investments, including $ and $ at fair value
Long-term receivables
Deferred tax assets, net
Deferred compensation plan
Other
Total assets	$
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities	$
Reimbursable payables
Accrued compensation and benefits
Short-term borrowings
Short-term contract liabilities and deferred income
Warehouse facilities
Short-term operating lease liabilities
Other
Total current liabilities
Credit facility, net of debt issuance costs of $ and $
Long-term debt, net of debt issuance costs of $ and $
Deferred tax liabilities, net
Deferred compensation
Long-term operating lease liabilities
Other
Total liabilities

See accompanying notes to Condensed Consolidated Financial Statements.

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JONES LANG LASALLE INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

Company Shareholders' Equity

Common Stock

Additional

(in millions, except share and
per share data) (unaudited)

Shares Outstanding

Amount

Paid-In

Retained

Held in

Treasury

Total

Capital

Earnings

Trust

Stock

AOCI(1)

NCI(2)

Equity

December 31, 2023

()

Net income (loss)

—

()

Vesting of shares related to equity compensation plans, net of amounts withheld for payment of taxes

—

()

—

()

Stock-based compensation

—

Shares held in trust

—

Repurchase of common stock

()

—

()

—

()

Change in pension liabilities, net of tax

—

Foreign currency translation adjustments

—

()

—

()

Decrease in amounts attributable to noncontrolling interest

—

()

March 31, 2024

()

Company Shareholders' Equity

Common Stock

Additional

(in millions, except share and
per share data) (unaudited)

Shares Outstanding

Amount

Paid-In

Retained

Held in

Treasury

Total

Capital

Earnings

Trust

Stock

AOCI(1)

NCI(2)

Equity

December 31, 2022

()

Net (loss) income

—

()

—

()

Vesting of shares related to equity compensation plans, net of amounts withheld for payment of taxes

—

()

—

()

Stock-based compensation

—

Foreign currency translation adjustments

—

Decrease in amounts attributable to noncontrolling interest

—

()

March 31, 2023

()

(1) AOCI: Accumulated other comprehensive income (loss)

(2) NCI: Noncontrolling interest

See accompanying notes to Condensed Consolidated Financial Statements.

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JONES LANG LASALLE INCORPORATED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


	Three Months Ended March 31,
(in millions) (unaudited)	2024	2023
Cash flows from operating activities:
Net income (loss)	$	()
Reconciliation of net income to net cash used in operating activities:
Depreciation and amortization
Equity losses
Distributions of earnings from investments
Provision for loss on receivables and other assets
Amortization of stock-based compensation
Net non-cash mortgage servicing rights and mortgage banking derivative activity
Accretion of interest and amortization of debt issuance costs
Other, net	()
Change in:
Receivables
Reimbursable receivables and reimbursable payables	()	()
Prepaid expenses and other assets	()	()
Income taxes receivable, payable and deferred	()	()
Accounts payable, accrued liabilities and other liabilities	()	()
Accrued compensation (including net deferred compensation)	()	()
Net cash used in operating activities	()	()
Cash flows from investing activities:
Net capital additions – property and equipment	()	()
Capital contributions to investments	()	()
Distributions of capital from investments
Other, net		()
Net cash used in investing activities	()	()
Cash flows from financing activities:
Proceeds from borrowings under credit facility
Repayments of borrowings under credit facility	()	()
Net repayments of short-term borrowings	()	()
Payments of deferred business acquisition obligations and earn-outs	()	()
Repurchase of common stock	()
Noncontrolling interest distributions, net	()
Other, net	()	()
Net cash provided by financing activities
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash	()
Net change in cash, cash equivalents and restricted cash	()	()
Cash, cash equivalents and restricted cash, beginning of the period
Cash, cash equivalents and restricted cash, end of the period	$
Supplemental disclosure of cash flow information:
Restricted cash, beginning of period	$
Restricted cash, end of period
Cash paid during the period for:
Interest	$
Income taxes, net of refunds
Operating leases

() ()()

)()())))))

million for deferred business acquisition and earn-out obligations for acquisitions completed in prior years.

2023 Business Combinations Activity

During the three months ended March 31, 2023, we completed no strategic acquisitions. We paid $ million for deferred business acquisition and earn-out obligations for acquisitions completed in prior years.

Maximum earn-out payments (undiscounted)$

Short-term earn-out liabilities (fair value)(1)

Long-term earn-out liabilities (fair value)(1)

(1) Included in Other current and Other long-term liabilities on the Condensed Consolidated Balance Sheets.

Assuming the achievement of the applicable performance criteria, we anticipate making these earn-out payments over the next five years. Refer to Note 8, Fair Value Measurements, and Note 11, Restructuring and Acquisition Charges, for additional discussion of our earn-out liabilities.

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million, (2) identifiable intangibles of $ million amortized over their remaining finite useful lives and (3) $ million of identifiable intangibles with indefinite useful lives that are not amortized. Notable portions of our goodwill and unamortized intangibles are denominated in currencies other than the U.S. dollar, which means a portion of the movements in the reported book value of these balances is attributable to movements in foreign currency exchange rates. $ Additions, net of adjustments Impact of exchange rate movements()()() ()()Balance as of March 31, 2024$ $

(in millions)

Markets Advisory

Capital Markets

Work Dynamics

JLL Technologies

LaSalle

Consolidated

Balance as of December 31, 2022

Additions, net of adjustments

Impact of exchange rate movements

Balance as of March 31, 2023

$ Additions, net of adjustments Adjustment for fully amortized intangibles()()()Impact of exchange rate movements ()()Balance as of March 31, 2024$ $ Accumulated Amortization Balance as of December 31, 2023$()()$()

Amortization expense, net(1)

()()()Adjustment for fully amortized intangibles Impact of exchange rate movements Balance as of March 31, 2024$()()$()Net book value as of March 31, 2024$ $

(1) Included in this amount for MSRs was $ million relating to write-offs due to prepayments of sold warehouse receivables for which we retained the servicing rights. Amortization of MSRs is included in Revenue within the Condensed Consolidated Statements of Comprehensive Income.

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$ Additions, net of adjustments Adjustment for fully amortized intangibles()()()Impact of exchange rate movements Balance as of March 31, 2023$ $ Accumulated Amortization Balance as of December 31, 2022$()()$()

Amortization expense, net(1)

()()()Adjustment for fully amortized intangibles Impact of exchange rate movements ()()Balance as of March 31, 2023$()()$()Net book value as of March 31, 2023$ $

LaSalle co-investments Other investments Total$

Our JLL Technologies investments are, generally, investments in early to mid-stage proptech companies as well as proptech funds, while our LaSalle co-investments are, primarily, direct investments in separate property or commingled funds, where we co-invest alongside our clients and for which we also have an advisory agreement.

We have maximum potential unfunded commitments to direct investments or investment vehicles of $ million and $ million as of March 31, 2024 for our LaSalle Investment Management business and JLL Technologies, respectively. Of the $ million related to LaSalle, while we remain contractually obligated, we do not expect a call on the $ million relating to a specific investment since the underlying fund moved into its liquidation phase in January 2020.

Impairment

There were no significant other-than-temporary impairment charges on investments for the three months ended March 31, 2024 and 2023.

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Investments(1)

Distributions()()Change in fair value, net()()Foreign currency translation adjustments, net() Fair value investments as of March 31,$ (1) In the first quarter of 2024, $ million in Notes receivable, inclusive of accrued interest, converted to an unconsolidated equity investment. There were no conversions in the prior year quarter.

See Note 8, Fair Value Measurements, for additional discussion of our investments reported at fair value.

$ Granted Vested()()() Forfeited()()()

Unvested as of March 31, 2024

Unvested as of December 31, 2022

$ Granted Vested()()() Forfeited()()()

Unvested as of March 31, 2023

As of March 31, 2024, we had $ million of unamortized deferred compensation related to unvested RSUs and PSUs, which we anticipate recognizing over varying periods into 2027.

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Long-term debt, carrying value, net of debt issuance costs

Investments at Fair Value - Net Asset Value ("NAV")

We report a significant portion of our investments at fair value. For such investments, we increase or decrease our investment each reporting period by the change in the fair value, and we report these fair value adjustments in our Condensed Consolidated Statements of Comprehensive Income within Equity losses.

For a subset of our investments reported at fair value, we estimate the fair value using the NAV per share (or its equivalent) our investees provide. Critical inputs to NAV estimates included valuations of the underlying real estate assets and borrowings, which incorporate investment-specific assumptions such as discount rates, capitalization rates, rental and expense growth rates, and asset-specific market borrowing rates. We did not consider any adjustments to NAV estimates provided by investees, including adjustments for any restrictions to the transferability of ownership interests embedded within investment agreements to which we are a party, to be necessary based upon (i) our understanding of the methodology utilized and inputs incorporated to estimate NAV at the investee level, (ii) consideration of market demand for the specific types of real estate assets held by each venture and (iii) contemplation of real estate and capital markets conditions in the localities in which these ventures operate. As of March 31, 2024 and December 31, 2023, investments at fair value using NAV were $ million and $ million, respectively. As these investments are not required to be classified in the fair value hierarchy, they have been excluded from the following table.

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Foreign currency forward contracts receivable Warehouse receivables Deferred compensation plan assets Mortgage banking derivative assets Total assets at fair value$ LiabilitiesForeign currency forward contracts payable$ Deferred compensation plan liabilities Earn-out liabilities Mortgage banking derivative liabilities Total liabilities at fair value$

Investments

We classify one investment as Level 1 in the fair value hierarchy as a quoted price is readily available. We increase or decrease our investment each reporting period by the change in the fair value of the investment. We report the fair value adjustments in our Condensed Consolidated Statements of Comprehensive Income within Equity losses.

Investments classified as Level 3 in the fair value hierarchy represent investments in early-stage non-public entities where we elected the fair value option. For most of our investments, the carrying value was deemed to approximate fair value due to the proximity of the investment date, or date of most recent financing raise, to the balance sheet date, as well as consideration of investee-level performance updates. The fair value of certain investments is estimated using significant unobservable inputs which requires judgment due to the absence of market data. In determining the estimated fair value of these investments, we utilize appropriate valuation techniques including discounted cash flow analyses, scorecard method, Black-Scholes models and other methods as appropriate. Key inputs include projected cash flows, discount rates, peer group multiples and volatility.

To the extent there are changes in fair value, we recognize such changes through Equity losses.

Foreign Currency Forward Contracts

We regularly use foreign currency forward contracts to manage our currency exchange rate risk related to intercompany lending and cash management practices. These contracts are on the Consolidated Balance Sheets as current assets and current liabilities. We determine the fair values of these contracts based on current market rates. The inputs for these valuations are Level 2 in the fair value hierarchy.

Foreign currency forward contracts, net basis

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Net asset, payable positions()()Foreign currency forward contracts receivable$ Net liability, receivable positions$()()Net liability, payable positions Foreign currency forward contracts payable$

Warehouse Receivables

As of March 31, 2024 and December 31, 2023, all of our Warehouse receivables were under commitment to be purchased by government-sponsored enterprises ("GSEs") or by a qualifying investor as part of a U.S. government or GSE mortgage-backed security program.

Deferred Compensation

We maintain a deferred compensation plan for certain of our U.S. employees that allows them to defer portions of their compensation. We recorded this plan on our Condensed Consolidated Balance Sheet as Deferred compensation plan assets, long-term deferred compensation plan liabilities, included in Deferred compensation, and as a reduction of equity, Shares held in trust.

Long-term deferred compensation plan liabilities Shares held in trust

Earn-Out Liabilities

We classify our Earn-out liabilities within Level 3 in the fair value hierarchy because the inputs we use to develop the estimated fair value include unobservable inputs. See Note 5, Business Combinations, Goodwill and Other Intangible Assets, for additional discussion of our Earn-out liabilities.

Mortgage Banking Derivatives

Both our interest rate lock commitments to prospective borrowers and forward sale contracts with prospective investors are undesignated derivatives and considered Level 3 valuations due to significant unobservable inputs related to nonperformance risk. An increase in nonperformance risk assumptions would result in a lower fair value measurement.

We expect nearly all expenses related to (i) severance and other employment-related charges and (ii) restructuring, pre-acquisition and post-acquisition charges as of March 31, 2024 will be paid during the next twelve months.

12.

)()$()Other comprehensive income (loss) before reclassification ()()Amounts reclassified from AOCI after tax expense of
$ - , $ - and $ - Other comprehensive income (loss) after tax expense of $ - , $ - and $ - ()()Balance as of March 31, 2024$()()$()(in millions)Pension and postretirement benefitCumulative foreign currency translation adjustmentTotalBalance as of December 31, 2022$()()$()Other comprehensive income before reclassification Amounts reclassified from AOCI after tax expense of
$ - , $ - and $ - Other comprehensive income after tax expense of $ - , $ - and $ - Balance as of March 31, 2023$()()$()

For pension and postretirement benefits, we report amounts reclassified from Accumulated other comprehensive income (loss) in Other income within the Condensed Consolidated Statements of Comprehensive Income.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the Condensed Consolidated Financial Statements, including the notes thereto, for the three months ended March 31, 2024, and our audited Consolidated Financial Statements, including the notes thereto, for the fiscal year ended December 31, 2023, which are included in our 2023 Annual Report on Form 10-K, filed with the SEC and also available on our website (www.jll.com). You should also refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations contained in our 2023 Annual Report on Form 10-K.

The following discussion and analysis contains certain forward-looking statements generally identified by the words anticipates, believes, estimates, expects, forecasts, plans, intends and other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause JLL's actual results, performance, achievements, plans and objectives to be materially different from any future results, performance, achievements, plans and objectives expressed or implied by such forward-looking statements. See the Cautionary Note Regarding Forward-Looking Statements included within this section for further information.

We present our quarterly Management's Discussion and Analysis in the following sections:

(1)A summary of our critical accounting policies and estimates;

(2)Certain items affecting the comparability of results and certain market and other risks we face;

(3)The results of our operations, first on a consolidated basis and then for each of our business segments; and

(4)Liquidity and capital resources.

SUMMARY OF CRITICAL ACCOUNTING POLICIES AND ESTIMATES

An understanding of our accounting policies is necessary for a complete analysis of our results, financial position, liquidity and trends. See Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in our 2023 Annual Report on Form 10-K for a complete summary of our significant accounting policies.

The preparation of our financial statements requires management to make certain critical accounting estimates and judgments that impact (i) the stated amount of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements and (iii) the reported amount of revenue and expenses during the reporting periods. These accounting estimates are based on management's judgment. We consider them to be critical because of their significance to the financial statements and the possibility that future events may differ from current judgments or that the use of different assumptions could result in materially different estimates. We review these estimates on a periodic basis to ensure reasonableness. Although actual amounts likely differ from such estimated amounts, we believe such differences are not likely to be material.

A discussion of our critical accounting policies and estimates used in the preparation of our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q can be found in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to these critical accounting policies and estimates during the three months ended March 31, 2024.

ITEMS AFFECTING COMPARABILITY

Macroeconomic Conditions

Our results of operations and the variability of these results are significantly influenced by (i) macroeconomic trends, (ii) the geopolitical environment, (iii) the global and regional real estate markets and (iv) the financial and credit markets. These macroeconomic and other conditions have had, and we expect will continue to have, a significant impact on the variability of our results of operations.

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Acquisitions and Dispositions

The timing of acquisitions and dispositions may impact the comparability of our results on a year-over-year basis. Our results include incremental revenues and expenses following the completion date of an acquisition. Relating to dispositions, comparable results will include the revenues and expenses of recent dispositions and results may also include gains (losses) on the disposition. In addition, there is generally an initial adverse impact on net income from an acquisition as a result of pre-acquisition due diligence expenditures, transaction/deal costs and post-acquisition integration costs, such as fees from third-party advisors engaged to assist with onboarding and process alignment, retention and severance expense, early lease termination costs and other integration expenses. For dispositions, we may also incur such incremental costs during the disposition process and these costs could have an adverse impact on net income.

Transaction-Based Revenues and Equity Earnings

Transaction-based revenues are impacted by the size and timing of our clients' transactions. Such revenues include investment sales and other capital markets activities, agency and tenant representation leasing transactions, incentive fees, and other services/offerings, increase the variability of the revenue we earn. Specifically for LaSalle, the magnitude and timing of recognition of incentive fees are driven by one or a combination of the following: changes in valuations of the underlying investments, dispositions of managed assets and the contractual measurement periods with clients. The timing and the magnitude of transaction-based revenues can vary significantly from year to year and quarter to quarter and also vary geographically.

Equity earnings may vary substantially from period to period for a variety of reasons, including as a result of (i) valuation increases (decreases) on investments reported at fair value, (ii) gains (losses) on asset dispositions and (iii) impairment charges. The timing of recognition of these items may impact comparability between quarters, in any one year or compared to a prior year.

The comparability of these items can be seen in Note 4, Business Segments, of the Notes to Condensed Consolidated Financial Statements and is discussed further in Segment Operating Results included herein.

Foreign Currency

We conduct business using a variety of currencies, but we report our results in U.S. dollars. As a result, the volatility of currencies against the U.S. dollar may positively or negatively impact our results. This volatility can make it more difficult to perform period-to-period comparisons of the reported U.S. dollar results of operations, because such results may indicate a growth or decline rate that might not have been consistent with the real underlying growth or decline rates in the local operations. Consequently, we provide information about the impact of foreign currencies in the period-to-period comparisons of the reported results of operations in our discussion and analysis of financial condition in the Results of Operations section below.

Seasonality

Historically, we have reported a relatively smaller revenue and profit in the first quarter with both measures increasing each of the following three quarters. This is a result of a general focus in the real estate industry on completing or documenting transactions by calendar year end and the fact that certain expenses are constant through the year. Our seasonality excludes the recognition of investment-generated performance fees and realized and unrealized investment equity earnings and losses. Specifically, we recognize incentive fees when assets are sold or as a result of valuation increases in the portfolio, the timing of which may not be predictable or recurring. In addition, investment equity gains and losses are primarily dependent on valuations of underlying investments, and the direction and magnitude of changes to such valuations are not predictable. Non-variable operating expenses, which we treat as expenses when incurred during the year, are relatively constant on a quarterly basis. Other factors may affect seasonality. For example, we experienced disruption to our historical seasonality trends due to rising interest rates and widespread economic uncertainty in 2022 and 2023.

A significant portion of our Compensation and benefits expense is from incentive compensation plans, which we generally accrue throughout the year based on progress toward annual performance targets. This quarterly estimation can result in significant fluctuations in quarterly Compensation and benefits expense from period to period. Consequently, the results for the periods ended March 31, 2024 and 2023 are not fully indicative of the results we expect to realize for the full fiscal year.

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RESULTS OF OPERATIONS

Definitions

•Assets under management data for LaSalle is reported on a one-quarter lag.

•n.m.: not meaningful, represented by a percentage change of greater than 1,000%, favorable or unfavorable.

•We define "Resilient" revenue as (i) Property Management, within Markets Advisory, (ii) Value and Risk Advisory, and Loan Servicing, within Capital Markets, (iii) Workplace Management, within Work Dynamics, (iv) JLL Technologies and (v) Advisory Fees, within LaSalle. In addition, we define "Transactional" revenue as (i) Leasing and Advisory, Consulting and Other, within Markets Advisory, (ii) Investment Sales, Debt/Equity Advisory and Other, within Capital Markets, (iii) Project Management and Portfolio Services and Other, within Work Dynamics and (iv) Incentive fees and Transaction fees and other, within LaSalle.

•Gross contract costs represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are directly or indirectly reimbursed through the fees we receive. These costs are presented on a gross basis in Operating expenses (with the corresponding fees in Revenue).

Consolidated Operating Results


	Three Months Ended March 31,			Change in			% Change in Local Currency
($ in millions)	2024		2023	U.S. dollars
Markets Advisory	$	950.1	906.4	43.7	5	%	5	%
Capital Markets	377.6		357.1	20.5	6		6
Work Dynamics	3,639.5		3,276.2	363.3	11		11
JLL Technologies	53.9		61.4	(7.5)	(12)		(12)
LaSalle	103.4		114.4	(11.0)	(10)		(8)
Revenue	$	5,124.5	4,715.5	409.0	9	%	9	%








Platform compensation and benefits	$	1,178.5	1,180.1	(1.6)	—	%	—	%
Platform operating, administrative and other expenses	270.4		291.1	(20.7)	(7)		(8)
Depreciation and amortization	61.0		57.5	3.5	6		6
Total platform operating expenses	$	1,509.9	1,528.7	(18.8)	(1)	%	(1)	%
Gross contract costs	3,498.7		3,133.3	365.4	12		12
Restructuring and acquisition charges	1.7		35.7	(34.0)	(95)		(96)
Total operating expenses	$	5,010.3	4,697.7	312.6	7	%	7	%
Operating income	$	114.2	17.8	96.4	542	%	569	%
Equity losses	$	(3.7)	(2.6)	(1.1)	(42)	%	(34)	%
Net non-cash MSR and mortgage banking derivative activity	$	(9.0)	(1.8)	(7.2)	(400)	%	(405)	%
Adjusted EBITDA	$	187.1	112.9	74.2	66	%	70	%

35.7 187.1 112.9

5,130.1 9 %1.7 35.7

(3.7)(2.6)

Income Taxes

The Income tax provision was $15.9 million for the three months ended March 31, 2024, representing an effective tax rate ("ETR") of 19.5%. For the three months ended March 31, 2023, the income tax benefit was $2.3 million, representing an ETR of 21.0%.

A number of countries in which we have a taxable presence have enacted legislation effective in 2024 inspired by the Organization for Economic Co-operation and Development (OECD) guidance for a global minimum tax rate of 15%, referred to as “Pillar Two” taxation. Such legislation enacted through March 31, 2024 did not have a material impact on our effective tax rate for the first quarter of 2024 and is not presently expected to have a material impact for the full year 2024.

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Net Income and Adjusted EBITDA

Net income attributable to common shareholders was $66.1 million for the three months ended March 31, 2024, compared with a loss of $9.2 million in the prior-year quarter. Adjusted EBITDA was $187.1 million for the first quarter of 2024, compared with $112.9 million in the prior-year period. Growth in profit was primarily attributable to (i) higher revenues, particularly Resilient revenues as well as certain Transactional revenue streams like investment sales within Capital Markets, and (ii) the benefit of cost reduction actions executed in the last twelve months coupled with continued cost discipline. In addition to these drivers, the increase in Net income attributable to common shareholders was partially due to lower Restructuring and acquisition charges as noted above.

The following chart reflects the aggregation of segment Adjusted EBITDA for the first quarter of 2024 and 2023.

Aggregation of Segment Adjusted EBITDA (in millions)

Segment Operating Results

We manage and report our operations as five business segments: Markets Advisory, Capital Markets, Work Dynamics, JLL Technologies and LaSalle. Markets Advisory offers a wide range of real estate services, including agency leasing and tenant representation, property management, and advisory and consulting services. Our Capital Markets service offerings include investment sales, debt and equity advisory, value and risk advisory, and loan servicing. Our Work Dynamics business provides a broad suite of integrated services to occupiers of real estate, including facility and project management, as well as portfolio and other services. We consider "Property Management" to be services provided to non-occupying property investors and "Workplace Management" to be services provided to facility occupiers. Our JLL Technologies segment offers software products, solutions and services, while LaSalle provides investment management services on a global basis to institutional investors and high-net-worth individuals.

Segment operating expenses comprise Gross contract costs and Segment platform operating expenses, which includes Platform compensation and benefits; Platform operating, administrative and other expenses; and Depreciation and amortization. Our measure of segment results excludes Restructuring and acquisition charges.

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Markets Advisory


							% Change
	Three Months Ended March 31,			Change in			in Local
($ in millions)	2024		2023	U.S. dollars			Currency


Leasing	$	497.3	487.0	10.3	2	%	2	%
Property Management	429.7		400.2	29.5	7		8
Advisory, Consulting and Other	23.1		19.2	3.9	20		20
Revenue	$	950.1	906.4	43.7	5	%	5	%
Platform compensation and benefits	$	462.5	461.0	1.5	—	%	—	%
Platform operating, administrative and other	86.9		93.6	(6.7)	(7)		(7)
Depreciation and amortization	17.4		17.1	0.3	2		3
Segment platform operating expenses	566.8		571.7	(4.9)	(1)		(1)
Gross contract costs	304.9		279.1	25.8	9		10
Segment operating expenses	$	871.7	850.8	20.9	2	%	3	%
Equity earnings	$	0.4	0.3	0.1	33	%	110	%
Adjusted EBITDA	$	95.3	71.6	23.7	33	%	33	%

Markets Advisory revenue growth was largely driven by Property Management and a mid-single digit increase in U.S. Leasing revenue. Higher Property Management revenue was primarily attributable to portfolio expansions in the U.S., UK and Canada, including incremental revenue associated with pass-through expenses. U.S. Leasing growth, which follows a softer prior-year quarter, was led by the office sector, which saw increased deal size and transaction volumes. The growth in U.S. office was partially offset by industrial, globally, where deal size decreased. Consistent with the trend from recent quarters, economic uncertainty has delayed commercial real estate decision making, particularly for large-scale leasing actions where JLL has a greater presence.

The net decreases in segment platform operating expenses for the quarter, compared with the prior-year quarter, were due to the continued impact of cost management actions taken in the last twelve months, notably in (i) lower fixed compensation and benefits attributable to reduced headcount, largely offset by higher variable revenue-related compensation expense, and (ii) lower T&E. Gross contract costs increased over the prior-year quarter consistent with revenue growth, predominantly associated with Property Management.

The Adjusted EBITDA increase was predominantly driven by revenue growth and the continued impact of cost management actions described above.

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Capital Markets


							% Change
	Three Months Ended March 31,			Change in			in Local
($ in millions)	2024		2023	U.S. dollars			Currency
Investment Sales, Equity & Debt Advisory	$	258.7	240.6	18.1	8	%	8	%
Valuation Advisory & Other	80.2		79.1	1.1	1		2
CM Loan Servicing	38.7		37.4	1.3	3		3
Revenue	$	377.6	357.1	20.5	6	%	6	%




Platform compensation and benefits	$	287.6	283.9	3.7	1	%	1	%
Platform operating, administrative and other	60.8		56.1	4.7	8		8
Depreciation and amortization	16.4		15.9	0.5	3		3
Segment platform operating expenses	364.8		355.9	8.9	3		3
Gross contract costs	13.6		9.3	4.3	46		50
Segment operating expenses	$	378.4	365.2	13.2	4	%	4	%
Equity earnings	$	0.1	0.6	(0.5)	(83)	%	(81)	%
Net non-cash MSR and mortgage banking derivative activity	$	(9.0)	(1.8)	(7.2)	(400)	%	(405)	%
Adjusted EBITDA	$	25.0	10.7	14.3	134	%	145	%

Capital Markets revenue increased across all business lines though market uncertainty persisted, especially around the future of interest rates. Investment Sales and Debt/Equity Advisory revenue increased compared to the prior-year quarter across most asset classes, with strength in Japan and Germany, most notably office. Investment Sales and Debt/Equity Advisory growth in the U.S. was low single digits but outperformed the broader market for investment sales, which declined 12% according to JLL Research.

The increase in segment platform operating expenses was largely driven by higher variable compensation expense compared with the prior-year quarter, as segment profit grew. The increase in variable compensation more than offset the impact of headcount reductions over the trailing twelve months. Operating and administrative costs generally decreased, also due to continued cost discipline, largely overcoming $5.7 million of headwind attributable to the year-over-year non-cash change in loan loss credit reserves, as the slight increase to the reserve this quarter followed a decrease to the reserve last year.

The Adjusted EBITDA improvement was attributable to revenue growth and the benefit associated with cost management actions taken over the trailing twelve months as described above.

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Work Dynamics


							% Change
	Three Months Ended March 31,			Change in			in Local
($ in millions)	2024		2023	U.S. dollars			Currency

Workplace Management	$	2,871.7	2,497.2	374.5	15	%	15	%
Project Management	656.4		676.3	(19.9)	(3)		(3)
Portfolio Services and Other	111.4		102.7	8.7	8		8
Revenue	$	3,639.5	3,276.2	363.3	11	%	11	%
Platform compensation and benefits	$	319.8	305.0	14.8	5	%	5	%
Platform operating, administrative and other	99.3		111.5	(12.2)	(11)		(11)
Depreciation and amortization	20.7		19.3	1.4	7		7
Segment platform operating expenses	439.8		435.8	4.0	1		1
Gross contract costs	3,170.6		2,834.2	336.4	12		12
Segment operating expenses	$	3,610.4	3,270.0	340.4	10	%	10	%
Equity earnings	$	0.7	0.4	0.3	75	%	80	%
Adjusted EBITDA	$	50.9	25.7	25.2	98	%	102	%

Work Dynamics revenue growth was led by continued strong performance in Workplace Management, as 2023 contract wins and mandate expansions in the Americas further ramped up this quarter. This was partially offset by Project Management, where lower pass-through costs drove the decrease in revenue while management fees were flat. In addition, the quantum of new project contracts reflected softer leasing activity in 2023.

The net increase in segment platform operating expenses was primarily due to higher incentive compensation accruals, reflecting segment growth and operating results, largely offset by continued cost discipline and the absence of $9 million of Tetris contract losses recognized in 2023. Gross contract costs increased over the prior-year quarter consistent with the revenue growth in Workplace Management.

The increase in Adjusted EBITDA was primarily attributable to the top-line performance described above, most notably from Workplace Management, coupled with nearly flat platform operating costs.

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JLL Technologies


							% Change
	Three Months Ended March 31,			Change in			in Local
($ in millions)	2024		2023	U.S. dollars			Currency
Revenue	$	53.9	61.4	(7.5)	(12)	%	(12)	%

Platform compensation and benefits(1)	$	47.3	61.3	(14.0)	(23)	%	(23)	%
Platform operating, administrative and other	10.5		14.7	(4.2)	(29)		(28)
Depreciation and amortization	4.5		3.9	0.6	15		16
Segment platform operating expenses	62.3		79.9	(17.6)	(22)		(22)
Gross contract costs	1.2		3.6	(2.4)	(67)		(68)
Segment operating expenses	$	63.5	83.5	(20.0)	(24)	%	(24)	%
Adjusted EBITDA(2)	$	(5.1)	(18.2)	13.1	72	%	73	%
Equity (losses) earnings	$	(1.0)	4.9	(5.9)	(120)	%	(121)	%

(1) Included in Platform compensation and benefits expense is a reduction in carried interest expense of $0.1 million for the first quarter of 2024 and carried interest expense of $0.7 million for the first quarter of 2023 related to Equity (losses) earnings of the segment.

(2) Adjusted EBITDA excludes Equity (losses) earnings for JLL Technologies.

The decline in JLL Technologies revenue was partially due to 2023 cost-out activities in the business's go-to-market approach aimed at improving profitability and resulted in lower contract signings in the second half of 2023. In addition, the lower revenue reflected delayed decisions on technology spend from existing solutions clients, which included certain contract renewals.

The decrease in current-quarter segment operating expenses was driven by the reduction of certain expenses associated with cost management actions and improved operating efficiency over the trailing twelve months.

The year-over-year improvement in Adjusted EBITDA was driven by the reduction of operating expenses associated with cost management actions described above, which outpaced the impact of lower revenue.

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LaSalle


							% Change
	Three Months Ended March 31,			Change in			in Local
($ in millions)	2024		2023	U.S. dollars			Currency

Advisory fees	$	92.3	100.5	(8.2)	(8)	%	(7)	%
Transaction fees and other	8.9		10.4	(1.5)	(14)		(10)
Incentive fees	2.2		3.5	(1.3)	(37)		(38)
Revenue	$	103.4	114.4	(11.0)	(10)	%	(8)	%
Platform compensation and benefits	$	61.3	68.9	(7.6)	(11)	%	(11)	%
Platform operating, administrative and other	12.9		15.2	(2.3)	(15)		(15)
Depreciation and amortization	2.0		1.3	0.7	54		50
Segment platform operating expenses	76.2		85.4	(9.2)	(11)		(11)
Gross contract costs	8.4		7.1	1.3	18		19
Segment operating expenses	$	84.6	92.5	(7.9)	(9)	%	(9)	%
Adjusted EBITDA(1)	$	21.0	23.1	(2.1)	(9)	%	(2)	%
Equity losses	$	(3.9)	(8.8)	4.9	56	%	57	%

%100 %

(1) No other functional currency exceeded 5% of total revenue in either period presented.

To show the impact foreign currencies have on our results of operations, we present the change in local currency for revenue and operating expenses on a consolidated basis and by operating segment in Management's Discussion and Analysis of Financial Condition and Results of Operations included herein. For additional detail of the impact of foreign exchange rates on our results of operations, see Management's Discussion and Analysis of Financial Condition and Results of Operations included herein.

We enter into forward foreign currency exchange contracts to manage currency risks associated with intercompany lending and cash management practices. See Note 8, Fair Value Measurements, in the Notes to the Condensed Consolidated Financial Statements for further discussion of our forward contracts.

Item 4. Controls and Procedures

The Company has established disclosure controls and procedures to ensure material information relating to the Company, including its consolidated subsidiaries, is made known to the officers who certify the Company's financial reports and to the other members of senior management and the Board of Directors.

Under the supervision and with the participation of the Company's management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded our disclosure controls and procedures were effective as of the end of the period covered by this report. There were no changes in the Company's internal control over financial reporting during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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Part II. Other Information

Item 1. Legal Proceedings

We are a defendant or plaintiff in various litigation matters arising in the ordinary course of business, some of which involve claims for damages that are substantial in amount. Many of these litigation matters are covered by insurance, including insurance provided through a captive insurance company, although they may nevertheless be subject to large deductibles and the amounts being claimed may exceed the available insurance. Although we cannot determine the ultimate liability for these matters based upon information currently available, we believe the ultimate resolution of such claims and litigation will not have a material adverse effect on our financial position, results of operations or liquidity.

Item 1A. Risk Factors

There have been no material changes to our risk factors as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table provides information about our purchases of equity securities that are registered by us pursuant to Section 12 of the Exchange Act during the quarter ended March 31, 2024.


Period	Total number of shares purchased	Weighted average price paid per share			Total number of shares purchased as part of publicly announced plan	Approximate dollar value of shares that may yet be purchased under the plan (in millions)
January 1, 2024 - January 31, 2024	37,989		$	176.36	37,989
February 1, 2024 - February 29, 2024	37,726		$	180.20	37,726
March 1, 2024 - March 31, 2024	35,011		$	188.56	35,011		$	1,073.5
Total	110,726				110,726

Item 5. Other Information

During the quarter ended March 31, 2024, none of the Company's directors or officers or any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of a Rule 10b5-1(c) trading arrangement or a non-Rule 10b5-1 trading arrangement as such terms are defined under Item 1 408(a) or Regulation S-K.

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Item 6. Exhibits


Exhibit Number			Description
10.1*			Jones Lang LaSalle Deferred Compensation Plan (Amended and Restated as of January 1, 2024)

10.2*			Jones Lang LaSalle Incorporated Global Executive Board Annual Incentive Plan, dated as of February 23, 2024

10.3*			Form of Jones Lang LaSalle Incorporated Performance Stock Unit Agreement used for Global Executive Board Member Incentive Grants under the Second Amended and Restated 2019 Stock Award and Incentive Plan

10.4*			Form of Jones Lang LaSalle Incorporated Restricted Stock Unit Agreement used for Global Executive Board Member Incentive Grants under the Second Amended and Restated 2019 Stock Award and Incentive Plan

31.1*			Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*			Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32*			Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS			Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

101.SCH			Inline XBRL Taxonomy Extension Schema Document

101.CAL			Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF			Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB			Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE			Inline XBRL Taxonomy Extension Presentation Linkbase Document

104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Filed herewith

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Signature

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on the 6th day of May, 2024.


JONES LANG LASALLE INCORPORATED

By:						/s/ Karen Brennan
						Karen Brennan
						Chief Financial Officer
						(Authorized Officer and Principal Financial Officer)

JONES LANG LASALLE INC - Quarter Report: 2024 March (Form 10-Q)

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