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JONES LANG LASALLE INC

JLL
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Business Summary

Jones Lang LaSalle Incorporated is a leading global commercial real estate services and investment management company operating in over 80 countries with a global workforce of more than 113,000 as of December 31, 2025 . The company serves clients across a variety of industries and property types including office, industrial, hotel, multi-family, retail and data center properties. Key structural forces shaping competition include the growth of corporate outsourcing of real estate services, rising investment allocations to real estate as a defined asset class, demographic urbanization trends, the transformative impact of AI and technology, and increasing energy and sustainability pressures on the built environment. The commercial real estate industry is consolidating, with large players gaining market share both organically and through mergers and acquisitions.

JLL faces significant competition from other real estate service providers, institutional lenders, insurance companies, investment banking firms, investment managers, accounting firms, technology firms, consulting firms, co-locating providers, temporary space providers, and firms providing outsourcing of various types, any of which may be a global, regional or local firm, and from firms that self-perform their real estate services with in-house capabilities. The company's distinguishing attributes include its globally integrated business model and 'One JLL' approach, technology leadership exemplified by platforms like LeasingOS and JLL Falcon, strong brand recognition as a Fortune 500 company named one of the World's Most Admired Companies by Fortune Magazine for the ninth consecutive year, financial strength with investment-grade credit ratings of Baa1 from Moody's and BBB+ from S&P, and a focus on sustainability. JLL has been recognized by Ethisphere as one of the World's Most Ethical Companies for the 18th consecutive year.

JLL generates revenue through a comprehensive suite of integrated real estate services and investment management offerings. The company's revenue mix includes both recurring income from long-term management contracts and transactional income from leasing, capital markets, and incentive fees. Primary customer segments include real estate owners, occupiers, investors, and developers, ranging from for-profit and not-for-profit entities to public-private partnerships and governmental entities. The company's 'One JLL' philosophy formalizes how teams engage with each other to deliver seamless services across business lines and geographies, enabling cross-selling opportunities. JLL's business model is supported by its technology platforms and data capabilities, including AI-powered tools like JLL Azara and JLL GPT, which are used by tens of thousands of employees daily.

JLL operates through five reportable segments. Real Estate Management Services provides Workplace Management, Project Management, Property Management, and Portfolio Services. Workplace Management managed approximately 2.8 billion square feet of real estate for clients as of December 31, 2025 , while Property Management provided services for properties totaling approximately 2.9 billion square feet . Leasing Advisory offers agency leasing and tenant representation, completing approximately 19,500 agency leasing transactions representing 340 million square feet of space and approximately 23,500 tenant representation transactions representing 569 million square feet of space in 2025 . Capital Markets Services is a full-service global provider of capital solutions, providing services for approximately $258 billion of client transactions in 2025 and servicing a loan portfolio of approximately $140.3 billion as of December 31, 2025 . Investment Management, operating as LaSalle Investment Management, had assets under management of $86.4 billion as of December 31, 2025 , with co-investments alongside clients totaling $505.8 million . Software and Technology Solutions offers cloud-based software solutions including Building Engines and Corrigo. All Other includes proptech investments with a fair value of $340.1 million as of December 31, 2025 .

Revenue by segment for the year ended December 31, 2025 was: Real Estate Management Services $20,001.2 million , Leasing Advisory $3,009.9 million , Capital Markets Services $2,422.1 million , Investment Management $450.1 million , and Software and Technology Solutions $232.3 million . Total consolidated revenue was $26,115.6 million . Adjusted EBITDA by segment was: Real Estate Management Services $437.5 million , Leasing Advisory $580.1 million , Capital Markets Services $364.4 million , Investment Management $83.5 million , and Software and Technology Solutions $(14.2) million . Investment Management's AUM decreased 3% in USD and local currency over the trailing twelve months, with a beginning balance of $88.8 billion and ending balance of $86.4 billion .

During the year ended December 31, 2025, JLL repurchased approximately 747,500 shares for $211.5 million , compared with approximately 373,100 shares repurchased for $80.4 million in 2024 . As of December 31, 2025, $801.7 million remained authorized for repurchases under the repurchase program . The company made a $100.0 million contribution to JLL Income Property Trust in January 2025 . Restructuring and acquisition charges were $75.3 million in 2025 , compared to $23.1 million in 2024 . The company had maximum potential unfunded commitments of $203.5 million for Investment Management and $7.3 million for Proptech Investments as of December 31, 2025 . Effective July 1, 2025, proptech investments were reclassified to 'All Other' and effective January 1, 2026, the Software and Technology Solutions segment will merge into Real Estate Management Services.

Total revenue for the year ended December 31, 2025 was $26,115.6 million , an increase of 11% compared to $23,432.9 million in 2024 . Operating income was $1,098.0 million , up 26% from $868.1 million in 2024 . Net income attributable to common shareholders was $792.1 million , compared to $546.8 million in 2024 . Diluted earnings per common share was $16.40 versus $11.30 in the prior year . Adjusted EBITDA was $1,452.9 million , up 22% from $1,186.3 million in 2024 . Cash provided by operating activities was $1,194.1 million , compared to $785.3 million in 2024 . The effective tax rate was 19.3% versus 19.5% in 2024 .

Business Outlook

A key growth vector is the continued expansion of corporate outsourcing of real estate services, which began in the early 1990s and has evolved into a global trend with a strong growth trajectory. JLL is positioned to benefit from this long runway for further growth as clients increasingly seek strategic advice on reimagining workspaces and workstyles. The company also focuses on rising investment allocations to real estate, which has seen allocations increase approximately 110 basis points since 2015 according to Cornell University's Baker Program in Real Estate and Hodes Weill & Associates, LP . JLL's technology strategy represents another major growth vector, anchored in an AI-forward approach with investments in platforms like LeasingOS, JLL Falcon, JLL Azara, and JLL GPT, which is used by tens of thousands of employees every day to increase efficiency and deliver customized solutions for clients.

Geographic expansion and demographic trends support growth, with over 80% of global GDP generated from cities and the population in cities expected to increase 1.5 times by 2045 according to the World Bank. JLL has well-established global research exploring these trends. The company also identifies sustainability services as a significant opportunity, with a structured three-phase programmatic approach (Plan, Act, Manage) to help clients achieve decarbonization objectives. JLL's growth strategy includes creating an environment where all employees feel valued and can contribute their unique strengths, ensuring the company attracts and retains a talented global workforce to meet clients' evolving needs.

The filing discusses margin trajectory through the lens of platform leverage. Management notes that greater platform leverage mitigated revenue-related growth, as evidenced by the lower 8% increase in platform operating expenses compared to revenue growth. The company continues to focus on cost discipline, with all segments reflecting enhanced platform leverage and continued cost discipline. Restructuring and acquisition charges were $75.3 million in 2025 , compared to $23.1 million in 2024 , primarily due to significantly lower net decreases to earn-out liabilities as well as higher severance and other employment-related charges. The company faces an approximate $25 million adverse impact associated with U.S. employee healthcare actuarial deficit, which was largely offset by discrete cost management actions.

JLL's operational outlook includes continued strategic investments in its platform, products, and people to lead the wave of technological change in real estate. The company has over 1,000 health and safety professionals and its health and safety program is certified to ISO 45001. The company's technology strategy involves curating a portfolio of impactful and transformative technology products that drive revenue growth and increase profitability. JLL has successfully scaled AI from experimentation to everyday business operations, achieving high user satisfaction. The company's learning platforms resulted in over 2 million learning assets consumed in 2025 to accelerate employee development .

Capital allocation priorities include maintaining financial performance metrics that support investment-grade credit ratings. As of December 31, 2025, corporate liquidity was $3.9 billion , the sum of cash and cash equivalents and the available capacity on the unsecured credit facility. The company maintains a commercial paper program allowing issuance of up to $2.5 billion of short-term notes at any time . Net capital additions were $215.6 million in 2025 , primarily related to office leasehold improvements, hardware and purchased/developed software. The company did not declare or pay any dividends in 2025 or 2024 . As of December 31, 2025, $801.7 million remained authorized for share repurchases . The company has ample capacity to fund its business and will continue to consider acquisitions that strengthen market position, increase profitability, and supplement organic growth.

Structural headwinds flagged by management include the ongoing evolution of corporate workplace strategies altering how companies use real estate, particularly impacting the office sector. A sustained 'flight-to-quality' could lead to bifurcated market performance, potentially reducing transaction volumes and putting downward pressure on asset values for older or less competitive properties. Limited financing availability for new office construction constrains the addition of new high-end supply, which could limit overall market activity. Geopolitical volatility and trade tensions, including the imposition of tariffs, could adversely affect the business by increasing costs, causing project delays or cancellations, and reducing investor and corporate confidence. Currency restrictions, exchange rate fluctuations, and inflationary pressures may materially impact financial results, with revenue from outside the United States approximating 38% of total revenue for 2025 .

Execution risks management explicitly flagged include challenges in adapting to and leveraging rapidly evolving technologies, including artificial intelligence. Failure to optimally deploy and integrate AI could result in the write-off of significant investments and failure to realize expected productivity and efficiency gains. The company's legacy data architecture and the need to retrain a large workforce may impede its ability to adopt new technology as quickly as competitors or new market entrants. The seasonality of parts of the business makes it difficult to determine during the course of the year whether planned results will be achieved. Volatility in transactional-based revenue, particularly from leasing and capital markets activities, may impact profitability, and the amount of incentive fees or equity earnings or losses recognized in future quarters is inherently unpredictable.

Risk Factors

The most material and specific risks to JLL's business include volatility in transactional-based revenue, which is inherently unpredictable due to the nature of leasing and capital markets activities, and the potential for large incentive fees and equity earnings or losses from Investment Management to significantly influence earnings from one period to the next. Geopolitical volatility and trade tensions, including tariffs, could disrupt real estate projects and reduce transaction volumes, with revenue from outside the United States approximating 38% of total revenue for 2025 . The company faces challenges in adapting to rapidly evolving technologies, particularly AI, where failure to optimally deploy and integrate could result in write-offs of significant investments and failure to realize expected productivity gains. Currency restrictions and exchange rate fluctuations present material risk, as a hypothetical 10% higher British pound-to-U.S. dollar exchange rate throughout 2025 would have increased reported operating income by $11.8 million , while a 10% higher euro-to-U.S. dollar exchange rate would have increased operating income by $7.4 million . The company also faces risks related to its loan origination and servicing activities, including potential breaches of representations and warranties under Fannie Mae DUS and Freddie Mac Optigo programs, which could result in contractual obligations to repurchase loans and financial losses.

Management Priorities

Management's message emphasizes the company's 'Beyond' strategic vision framework to deliver long-term sustainable and profitable global growth, comprising five pillars: Clients, Brand, Technology, People & Values, and Sustainability. The tone is forward-looking and confident, highlighting that the company's broad geographic reach and range of global service offerings diversify revenue sources and increase overall business resilience. Key strategic priorities emphasized include continued investment in technology and data capabilities, particularly AI-forward approaches anchored in platforms like JLL Falcon and JLL GPT, which are being used by tens of thousands of employees daily. Management also stresses the importance of the 'One JLL' philosophy to provide seamless and consistent services to clients across the world and to smoothly deploy innovations, best practices, and new technologies. The company's strong investment grade balance sheet is highlighted as providing flexibility to augment organic growth with selective inorganic opportunities. Management notes that the commercial real estate industry is consolidating and that JLL's financial strength, with corporate liquidity of $3.9 billion as of December 31, 2025 , distinguishes the company from competitors.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Company Overview
  2. [2] Item 1, Business — Real Estate Management Services, Workplace Management
  3. [3] Item 1, Business — Real Estate Management Services, Property Management
  4. [4] Item 1, Business — Leasing Advisory, Leasing
  5. [5] Item 1, Business — Capital Markets Services, Investment Sales, Debt/Equity Advisory and Other
  6. [6] Item 1, Business — Capital Markets Services, Loan Servicing
  7. [7] Item 1, Business — Investment Management
  8. [8] Item 1, Business — Investment Management
  9. [9] Item 1, Business — All Other
  10. [10] Item 7, MD&A — Segment Operating Results, Real Estate Management Services
  11. [11] Item 7, MD&A — Segment Operating Results, Leasing Advisory
  12. [12] Item 7, MD&A — Segment Operating Results, Capital Markets Services
  13. [13] Item 7, MD&A — Segment Operating Results, Investment Management
  14. [14] Item 7, MD&A — Segment Operating Results, Software and Technology Solutions
  15. [15] Item 7, MD&A — Results of Operations
  16. [16] Item 7, MD&A — Segment Operating Results, Real Estate Management Services
  17. [17] Item 7, MD&A — Segment Operating Results, Leasing Advisory
  18. [18] Item 7, MD&A — Segment Operating Results, Capital Markets Services
  19. [19] Item 7, MD&A — Segment Operating Results, Investment Management
  20. [20] Item 7, MD&A — Segment Operating Results, Software and Technology Solutions
  21. [21] Item 7, MD&A — Segment Operating Results, Investment Management
  22. [22] Item 5, Market for Registrant's Common Equity — Share Repurchases
  23. [23] Item 5, Market for Registrant's Common Equity — Share Repurchases
  24. [24] Item 5, Market for Registrant's Common Equity — Share Repurchases
  25. [25] Item 7, MD&A — Cash Flows from Investing Activities
  26. [26] Item 7, MD&A — Results of Operations
  27. [27] Item 7, MD&A — Results of Operations
  28. [28] Item 7, MD&A — Investment Activity
  29. [29] Item 8, Consolidated Statements of Comprehensive Income
  30. [30] Item 8, Consolidated Statements of Comprehensive Income
  31. [31] Item 8, Consolidated Statements of Comprehensive Income
  32. [32] Item 8, Consolidated Statements of Comprehensive Income
  33. [33] Item 8, Consolidated Statements of Comprehensive Income
  34. [34] Item 8, Consolidated Statements of Comprehensive Income
  35. [35] Item 8, Consolidated Statements of Comprehensive Income
  36. [36] Item 8, Consolidated Statements of Comprehensive Income
  37. [37] Item 7, MD&A — Results of Operations
  38. [38] Item 7, MD&A — Results of Operations
  39. [39] Item 8, Consolidated Statements of Cash Flows
  40. [40] Item 8, Consolidated Statements of Cash Flows
  41. [41] Item 7, MD&A — Results of Operations
  42. [42] Item 7, MD&A — Results of Operations
  43. [43] Item 1, Business — Industry Trends
  44. [44] Item 7, MD&A — Results of Operations
  45. [45] Item 7, MD&A — Results of Operations
  46. [46] Item 1, Business — Human Capital, Training and Development
  47. [47] Item 1, Business — Distinguishing Attributes and Competitive Differentiators, Financial Strength
  48. [48] Item 7, MD&A — Liquidity and Capital Resources, Debt
  49. [49] Item 7, MD&A — Liquidity and Capital Resources, Capital Expenditures
  50. [50] Item 5, Market for Registrant's Common Equity — Dividends
  51. [51] Item 5, Market for Registrant's Common Equity — Share Repurchases
  52. [52] Item 7, MD&A — Market Risks, Foreign Exchange
  53. [53] Item 7, MD&A — Market Risks, Foreign Exchange
  54. [54] Item 7, MD&A — Market Risks, Foreign Exchange
  55. [55] Item 7, MD&A — Market Risks, Foreign Exchange
  56. [56] Item 1, Business — Distinguishing Attributes and Competitive Differentiators, Financial Strength
  57. [57] Item 8, Consolidated Statements of Comprehensive Income
  58. [58] Item 8, Consolidated Statements of Comprehensive Income
  59. [59] Item 8, Consolidated Statements of Comprehensive Income
  60. [60] Item 8, Consolidated Statements of Comprehensive Income
  61. [61] Item 8, Consolidated Statements of Comprehensive Income
  62. [62] Item 8, Consolidated Statements of Comprehensive Income
  63. [63] Item 8, Consolidated Statements of Comprehensive Income
  64. [64] Item 8, Consolidated Statements of Comprehensive Income
  65. [65] Item 7, MD&A — Results of Operations
  66. [66] Item 7, MD&A — Results of Operations
  67. [67] Item 8, Consolidated Statements of Cash Flows
  68. [68] Item 8, Consolidated Statements of Cash Flows
  69. [69] Item 8, Consolidated Statements of Comprehensive Income
  70. [70] Item 8, Consolidated Statements of Comprehensive Income
  71. [71] Item 7, MD&A — Results of Operations
  72. [72] Item 7, MD&A — Results of Operations
  73. [73] Item 8, Consolidated Statements of Comprehensive Income
  74. [74] Item 8, Consolidated Statements of Comprehensive Income
  75. [75] Item 8, Consolidated Statements of Comprehensive Income
  76. [76] Item 8, Consolidated Statements of Comprehensive Income
  77. [77] Item 7, MD&A — Segment Operating Results, Real Estate Management Services
  78. [78] Item 7, MD&A — Segment Operating Results, Leasing Advisory
  79. [79] Item 7, MD&A — Segment Operating Results, Capital Markets Services
  80. [80] Item 7, MD&A — Segment Operating Results, Investment Management
  81. [81] Item 7, MD&A — Segment Operating Results, Software and Technology Solutions
  82. [82] Item 8, Consolidated Balance Sheets
  83. [83] Item 8, Consolidated Balance Sheets
  84. [84] Item 8, Consolidated Balance Sheets
  85. [85] Item 8, Consolidated Balance Sheets
  86. [86] Item 8, Consolidated Balance Sheets

Analysis on 6/8/2026