Jones Lang LaSalle (JLL) 6 Nov 182018 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Jones Lang LaSalle Incorporated Third Quarter 2018 Earnings Conference Call.

For your information, this conference call is being recorded. I would now like to turn the conference over to Grace Chang, Managing Director of Investor Relations. Please go ahead.

operator. you, Thank welcome for and third XXXX quarter Good Lang to LaSalle call Jones Incorporated. conference morning our Earlier this website, morning, available we to issued our earnings remarks. prepared Investor a presentation section supplement with our on release, Relations of along our ir.jll.com, slide intended the which is

the will GAAP financial non-GAAP slides. non-GAAP and measures appropriate to reference During our financial believe earnings we supplemental of which call, include information useful reconciliations we in release provide for certain measures, investors. We where

undertaking being is of about call future discussed as statements live differ in call fiscal the company and other will today's filed be XX-K forward-looking transcript reminder, Christian like of with a the the performance and the result our that, plans, a about for to revise I And year Ulbrich, webcast recorded. would with A objectives may to ended any publicly Form are report from statements statements. this opening The in also annual Executive those XX, XXXX any or As Officer, forward-looking Chief and results factors and made call reports to remarks. Actual turn forward-looking for conference SEC. our expectations statements. performance website. results over update or on posted on Any and December disclaims

Trish to third welcome of for Thank to role nine you, XXXX. Grace, more her and our our also recently this quarter responsibilities. Officer, and whereas Interim pleased the first the review welcome results everyone to Chief of added I'm of CFO Administration months Maxson

she during JLL, will remarks, your our at well In Trish and JLL in record first XXXX. questions. we the five take I Trish, our and that share had quarter left on half successful today's Later We thank significant following CFO. of building know a a opening will call summary, performance. On Grace her strong all of as Christie details my wish you Kelly As years Christie for made contributions September.

Fee quarter, up increased to currency billion. local billion. $X.X revenue was XX% under $X the For XX% revenue in to just

For $XX.X period XX% totaled XX% to the year and for first billion, nine months, higher fee revenue than the ago. revenue increased a same $X.X billion

this Adjusted expansion income third year-to-date healthy totaled for organic growth totaled $XXX net cents Adjusted represent through per of million the up XX%. in business. share XX%, quarter, the $X.XX and the million across and from $X.XX quarter XXXX. in diluted Our year-to-date, up the quarter, earnings $XXX quarter up

during year EMEA months, expansion excellent earnings incentive quarter share LaSalle For $X.XX ago. adjusted same period business. performance improving the exceptional from realized in first our diluted a strong We per Americas, in the nine helped the $X.XX, and margin results by increasing reached fees, the in

dollars XX.X% complete share, original This the uncertainty, we this is our year, the growth end in of directors board was U.S. of real headlines are dividend from XXXX, are markets. $X.XX To figures. last markets estate calculated fee XXXX. share. expected year a as trade expectations. For on despite the basis matching brings both context, semi-annual in revenue to local up year's final X.X% about EBITDA the of Recognizing exceeding up GDP dividend of volatile maintain to results to these put tensions, through XX.X% momentum set have performance political Annual year, equity months the total $X.XX They our in currency, global and reach quarter, a adjusted from a margins XXXX $X.XX and a per and ago. momentum, declared

X% values, Year-to-date remained real global quarter total Capital estate of Investment Markets investment billion, $XXX slide Slide commercial levels. with third above for quarter, totals since Europe, a For in activity Prime more of top Milan at their details, posted in of in see specifically billion Leasing. with office XXXX, highest Madrid, in Amsterdam, $XXX capital the market leasing five grew X% which the the X.X% supplemental levels XXXX Berlin, global X accounting of XXXX. steady office stood tracks globally and end robust At higher volumes. information ir.jll.com. X product four the the volumes document income by at stand performing and year-on-year at in growth, than markets globally. year-to-date

on leasing Even XX.X% Europe led a for performance continues volumes levels to nine prime global build X% strongest cities year, since reach to of global on the which has office first nearly impressive the the with in the full year-to-date a diversified new of the the deliver ago. steady way ahead on growth the to XX where low our occupier growth year this pushed quarter. have this positive is business fundamentals leasing track is the uplift growth and our business, relatively and Asia With to high months continued were offices XXXX above third of with major levels. of operating platform. reflected up X% in cyclical demand rate vacancy strengths across XX% market of deliveries, Rental volumes XXXX. impressive the maintained strong our U.S. Pacific market. This for backdrop,

performance win further seen year-to-date driving trend XXXX. business. continue we and Solutions been a focus our to rate facility business into technology-based Our ValuD, has to management acquired recently highs in we have our To on has estate and consulting strongly Corporate Solutions both and rise The well real this new also expect Corporate rewarded. XXXX strategy,

our Having communicated. to of performance end adjusted incentive continued EBITDA expected to LaSalle margins the of combination have that, business to even the has real fees significantly our delivering our enhance and clients our accelerate to would XX% higher to investments closer as and business. long-term normalized average. of has across its we investments, risk-adjusted services, competitiveness with ahead said range realizing Beyond are the these of This fees incentive estate overall XX% continued previously returns thereby historical to to enabled us performance outperform, LaSalle deliver our superior that and

have whole, as strong very first we for real quarter a witnessed months a nine commercial and for third JLL. taken estate and So

our comments Trish on Now, more we will performance. turn to detailed for

headline summary Christian. driven Christian the current of segments year-to-date. to revenue It's report strong performance of All to you, Solutions, growth and provided a Thank achieved for pleasure such results Leasing, four year the LaSalle. details and exceptional be our able by the performance. in Corporate

revenue On noted, revenue XX%, and a consolidated XX% third XXXX. respectively. revenue local on year-to-date Christian increased As to consolidated currency fee revenue and fee basis, and XX% quarter XX% basis, compared and a increased

year-to-date, For both and results were the across quarter all segments. organic

revenue gross outperformance XX% for for Americas Asia prior revenue line local for fee led service decline grew year-to-date global was grew volumes. against in research Year-to-date, with and The the year deal The U.S. investment of Now, led segments global declined EMEA the X%, basis, by grew with growth. Pacific. XX% Capital at market results the quarter, Markets, a revenue compared XX% outperformance a X% and let line On the with compared represents percentage currency year-to-date due Consolidated quarter quarter representing We global to for largely timing aligns reminder. revenue denominated year-to-date with and was flat Capital volumes. fee Growth gross Consolidated which fee Leasing market sales in segment Markets except a which absorption. global all growth. the fee absorption market Americas, to turn data. X%. report nearly flat very and dollar to changes me impressive in of across

business Facility Tetris revenue Americas. the fee saw driven fit-out quarter, Services X%, fee Project Development Management Property in & fee Year-to-date, by & grew Americas. in XX%, our we our by also notably grew growth For Facility double-digit Management Solutions. the X%, & revenue and driven & & Consulting X%. saw XX%. growth the Development Services Advisory Advisory grew in Property grew grew We grew revenue most & Year-to-date, Corporate Project in Consulting segments, all by XX%, EMEA.

multiservice Solutions Advisory business Project Corporate a includes Consulting. well and Corporate & as Facility and As integrated reminder, Management from Leasing, Solutions-related outsourcing Development, as our services & is

revenue adjusted for XXX basis increase basis an year a the represents basis to margin prior point after calculated accounting quarter. EBITDA of over margin a as on was XX approximately XX.X% includes Turning margins, headwind This for XXX and like-for-like fee points reported the and which basis ASC incentive expansion XXX points, from due XXX. contributed basis to contributed by points basis, which On Americas expanded driven basis LaSalle, points. outsized basis by third first by margin EMEA, quarter organic fees, a XXX and on second,

make supplemental materials strategy, on to tools strategic X of EBITDA the including continue internal in our margin the we for slide basis Concerning XXX. walk and for Lastly, facing impact information XX margin. the XX we platform both and of which investing see represents ASC technology Please enhancements. points continue additional of client investments, slide technology,

investment additional related the investments. quarter, For technology XX% of the over was to spend

global new in As in end quarter, financial previously in in HR. of with EMEA the Americas, went system mentioned, due is completed The we upgrade progress, live of last by Pacific our the XXXX. to Workday upgrade the system implementation and for Asia quarter, and third financial complete we

as the X.X management, debt third focus and million has to XXXX, performance. Total cultural from heard continued and disciplined million decrease XX-month debt from fit From and transactions X.X working XXXX. commitment our investment-grade our Christian, opportunistic third $XXX continue trailing quarter be you quarter reflects performance quarter reaffirm strategic both meet was operating quarter M&A results from net of declined completing year-over-year capital our our times. to of discipline. net decrease to an active $XXX on now an strong our Since a keeping second end, standpoint, a while of sheet. the and drive at The that the EBITDA Turning improved and from to decrease we debt-to-adjusted $XXX balance reflecting million

Corporate capital Investment on strategy deployment LaSalle JLL by and growing the M&A into Capital Markets, Our complemented focused and of is our remains Management Spark. businesses Solutions

Moving on to segment results.

XXXX. nearly of with Facility revenue Estate for drove year-to-date Management the and fee by driven results. Americas Real over Leasing fee XXXX services. increase Services outstanding The increased the XX% growth quarter broad-based total segment XX% basis, quarter, over the a growth in across Third On revenue Americas half all

first of grew between for nine on Houston, back debt the quarter, Leasing and up X%. sales the revenue Midwest Mid-Atlantic, investment the Markets for X% revenue For revenue Capital and grew months. X% activity and Year-to-date nearly is fee quarter the fee markets. XX% split Southwest, in was the evenly which strength up Leasing fee by

the regions For driven were sales Central XX% up in by Southwest and the the investment U.S. quarter, South

businesses basis. Project on improvement on and X% services XX grew in for large was driven transaction is as-reported in was Property accounting approximate respectively. and EBIDA Facility Corporate by to Our Advisory debt primarily down This basis ASC Project Taking with basis new to first margin Services revenue performance. first existing an with X% into wins & strong and an X% portfolio businesses margin new XXX revenue point Services like-for-like quarter for revenue fee points Development for new of basis months. basis points XX%, expanding in and attributable Consulting and on due Development months by respectively, headwind Consulting by quarter growth for turned of in fee contract largely & the and & accretive revenue services Management increased to after The XXX expanded awards of leasing, nine the growth Americas was a Fee Advisory for & clients business existing a in calculated driven account nine expansion outsourcing Solutions the fee operating growth business. adjusted XX% clients. and and XXX, & for basis. increase XXXX. XX% XX% by XX% a the an

Turning by XXXX Leasing. led & third grew fee over Development Project and total revenue X% quarter the EMEA, now to quarter for Services

across against year-to-date. Leasing fee broad-based months, was nine XXXX. up from EMEA third total quarter and first up were up the all XX% For XXXX revenue X% services, revenues X%

Italy a For third for and and fee EMEA in strong pipeline Germany. the in from revenue quarter, we saw conversion the and up was flat quarter Poland Capital benefited Markets strength to-date. we X%

Advisory & Property third revenue in X% offset year. driven Portugal the by the the Management growth and increased a first large quarter, were by transaction and prior increases Year-to-date, Project quarter the and for and in the Facility Germany quarter France Services Development XX% for the fee months in Continental nine up nine the Europe. revenue for fee by nine X% months. for For France. was for up & declined & XX% project Consulting driven by Tetris X% the business X% recent was for and months. grew first first our wins quarter and

of resulted EBITDA third Integral, the the and margin point from For The adjusted revenue delivered X.X%, a performance, stabilization on leasing quarter, a in basis profitability calculated a on EMEA improvement XXX of reduced like-for-like fee basis. expansion basis expenses.

increased quarter Moving nine Asia for Pacific. months. for first the the to X% Fee now revenue both and

grew XXXX. fee year-to-date quarter revenue for is quarter, fee the quarter year-to-date. from primarily basis Leasing Japan Capital and to a XX% largely first the outsized X% prior over XXXX for on Property increased XX% revenue for months. came decline the against & due Australia, XX% the Growth fee performance. nine declined management XX% Facility year and and and Markets For China. revenue third X% The

the win rate a For from clients. and strong with benefited Corporate Solutions quarter, growth existing

was and quarter revenue months for quarter, all last was Australia. months, noted markets, half notably by by Advisory which by and up in the XX% As growth quarter we China. & contracts revenue the first challenged in driven to development first growth the most X% government for nine manage. in nine from driven growth XX% two the contract for was Consulting continue of and overruns Greater first including X% the services Projects fee for continued

For a and points quarter, Pacific revenue attributable Asia was in of lower businesses. margin mix growth annuity in XX EBITDA contraction to was margin activity which the in largely adjusted Capital of Markets XX.X%, reduced basis

with LaSalle's growth $XX a both management for basis XX% was LaSalle Over the Moving with in quarter the for for the strong compared clients. points value across and prior quarter XX first create from first fees, asset attributable margin compared contribution of XX% platform quarter from months. quarter to business. million for fees testament dispositions Incentive higher and EBITDA the the in was incentive quarter by reflects incentive substantial expansion third Pacific. from the with growth months. and adjusted our drove the million the fees a the to our Asia investment for nine revenue for $XXX XXX to XXXX, year nine XX% basis we year of year-to-date and fee performance points

the in raised capital. LaSalle quarter, billion For $X.X new

end Assets under the of $XX management were quarter. billion of as the

growth in in alignment continue our with see We strategy. robust to private equity

We the incentive in expect fees months. additional coming

impact need for However, to year delays are between we'd to outcome. basis, complete on but three $XX $XX million the timing and is magnitude and the dependent that clearly, fees transactions final quarter, could by On that range four incentive possible would the end. million

and and matters. Finally, in our would our ESG webcast, environmental, around I third which to held highlighting initiatives like we accomplishments the social mention quarter, governance

for this our for will The of on I We turn Investor area. back Relations to our very are proud call progress now website. final in available the webcast is replay Christian remarks.

housing results, assignment Thank Year-to-date service lists technology you, recent square all across Trish. To Capital show how have XXX we Technologies, expanded across clients, XX Management with achieved XX In Solutions renewed India. our XXX slide and geographies. square another leading assignments, These foot Facilities regions. total contracts. XXX example headquartered One new feet in wins and X.X million million new XXX from is foot relationships in The Business which multinational HCL a Corporate development, Markets, disposition Qingdao's company existing advise X.X these on a we a in foot XX won lines New wins The include building our few as business, primary a District. million room Iconic will leasing China Blackstone leasing Spain's square we York's adviser retained and quarter's represented as sale be student assignment Shinan in square the for for site. Spain, the seller planned use is we XXX,XXX of of being and Plaza million the Hotel, the property the Central development Life largest. $XXX

signed Service agreement as and Sachs' European In The third foot client, XXX,XXX of to This structured behalf National for (XX:XX:XX) represented London. Korea, another its advertising Court since its in price feet We back to group largest LaSalle of was Plumtree highlight, The in at leasing space of acquire Pension Goldman $X.X new billion. Serviceplan, Germany's transaction city's of an headquarters the a agency was was and square the leaseback new headquarters on XXX,XXX quarter relocation XXXX. largest Munich's District. the building sale also subtle and transaction the square Munich

debt week, business of billion transaction management to close the Estate management. The Latitude majority real has an under last XXXX. the Investors, which investment to Management in estate in late of acquisition make is LaSalle U.S. assets Finally, quarter entered $X.X agreement into first of expected a Real

investors returns the consider higher our other the near-term XXXX summarizes will exceed X year. in global track often maintain to In outlook future. $XXX in Markets, In worldwide, this markets volumes full Slide and Institutional Capital can of let's search square we to feet annual increase real for classes. from achieve project Now, than investment leasing volumes market on allocations up are year. to million their asset about to that they XX continue etch estate XXX billion.

We year XXXX. and end expect this trend to continue onto through

Australia, United in Gazette's Award of one were the for and possible XXXX. JLL and in remarks the confident So prospects about close we and everyone and all, our Best to performance awards the going these Awards. Congratulations business of Facilities named the Kingdom, our and continuing Companies the people made for In into we winning of honors Award, the quarter, year thanks the XXX the to Asia world a Working third like our the and In competition's for calls, around XXXX well. clients full have who the serve XXXX. of for our all Estate Company many we Thailand, to for won people To Year U.S., remain mention few to awards Singapore. about we prepared our Philippines so Mother's Management these Pacific awards all earned. And our received so other the we Tech the local Innovation also

the take questions. please Operator, process. explain your let's Now, you will

Certainly.

Blair. comes first Sheldon go Please Stephen line ahead. from of the question from William Your

Your line open. is

probably business, the next and over I you I you getting But there you'll pretty produced that Thanks. could argue a business? be the competition benefited facing at But U.S. and employment talent. so really few about to obviously abating thinking growth similar little, that guess U.S. think increasing for growth to that strong morning. last it's competitors. Leasing trends skilled thinking tailwind be in the about just tough could the employment, comparison. just has how I think in are strong Good think from now least you've full it's close year, and continued I first potentially some the the over years your in been

guess thinking the potential are at out in growth year looking I you about Leasing just point? how So and this the generally, over next

Christian. Stephen, it's

We are very confident about the Leasing forward. also going business

First it much obviously the XXXX all, the of very with GDP very is outlook healthy. correlates global still for and

office business. available buildings, modern more have causes strong facilities have and where have big into That's our talent, where into And we very space world. move thirdly, and means the of their the their new to majority have trend with cities that into significantly of lack go upgrade that again, that do the to them we Secondly, to our the business. move favors is. that That companies companies talent to they developments, the of

think So have enough our time year to leasing for continue being, we strong a for reason the to I very XXXX be believe that will business.

margins trends That's great helpful. then And it. quarter. there very see to in Got this improving EMEA, on

improvement noted you the that cost has been the I Integral as think it's been on of integrated. there side some

business revenue XXXX? guess, are how should in And thinking profitability that heading improve? growth specifically, it I optimism in your year? profitable, into So then has two wanted of And to One, what's ask. be level next continued that you I Integral's two, to that things about

major with the technology a quarter this We're benefits quarter major third to was so see We is that that new in Well, the first the through the business technology. quarter implemented of of coming and Integral new expecting second from XXXX. complete course over year; restructuring. going

running So of continue business the will efficiency that to improve.

on productive a great our business time For to still are to more steps and running being, the that drive done where more in growth, on driving going forward. on getting plan revenue and so focus much EMEA margins really the become XXXX wasn't we was it productivity job back behind. has Overall, business in take much

further expect improvement will we EMEA business. our XXXX, for in again, So,

you. Great. Thank

question go KBW. Your Jade from line the comes from Rahmani next of Please ahead.

line Your open. is

on much. Thanks you for give replacement search apologize a any missed I very But if CFO? did update the I it.

You didn't miss it.

as focused given haven't you we imagine, can very on updates. We that any are But point.

CFO new so But interviewing are And constantly place. have in we candidates. great we a

So, for not we candidate bring time in. we quality on the being, compromise want of which to the will

Is target or by the something lengthier than that? year end

target. We don't have a

who We function are XX will looking finance for the for candidate, a our years. next great real drive

so have concern And fit, if identified person six our that and when ambitions. mutual us. achieved a that we really have months, And or is takes then weeks another it three doesn't another we

Okay.

by Federal side, On what next about additional outlook you the you can impact volumes? is likely for the say rate the think Do Markets to Capital Reserve that year? interest increases

real estate There playing expect have still with said as gap be thinking overall the on when long advantageous to we interest is will impact in rate Well, very expectations, as still attracted to interest are rate long estate. interest rate negative levels. are be market And case, increases I line that as into any the between don't continues and about real people forward invest levels before, we we in. going are positive volumes deals as a

expect will we may mean in comparison be around be of longer we reasonably globe the that in And the XXXX another years, less volumes slightly so XXXX, a than it But it XXXX. for seen of year in in strong strong Markets. forward the year. have That can going Capital run

have we to business, invest and confident are our so XXXX We JLL, very XXXX. used for Capital in Markets heavily for

right now. platform LaSalle decision, In terms – seems that pretty investment management debt of is you fund drove that what the investing in, space that saturated that recent

that level we investment we is management several also company and only looked space believe fit, we at within And so complement important disciplined one will our we stack in but the have we the drive that This next for business, where whole business, skill Yeah, in our for is playing not services a we the opportunities one with us that years. capital it M&A been real we LaSalle, past. great along have have to was the going in sets on very forward. can thought

on decline you Can in Capital what Markets comment APAC drove volumes? the

we third some have which quarter. we that in of our APAC challenges in specific solved countries had Yes, two around the

on so And strong have in And strong Markets. to back we a we you have in is, countries And in overall, forward a reason to that fourth track. going a mind XXXX, keep volatile then Capital APAC believe see itself, business. Capital in those see always Markets very to in quarter bit of a

quarters year-on-year quarter. year comparisons last So quite misleading. third on a can had very sometimes very, We strong be

And a tough a so comparison. it creates of bit

Thanks for taking the questions.

Sure.

Your of Please next comes Merrill from go Bank question the America from Ridley-Lane of ahead. line Lynch. David

Your line is open.

sort Wanted any for your Good of if the of possibility and Sure. preparations that that for to your hard mean have outcome? business, you would get on Brexit, broader making what been thoughts morning.

mean difficult I that Sure. is obviously question a answer. very to

transactions people Short-term, around I be that it get when very don't vote will saw part XXXX, then five obviously we look bit about beginning November head back. example, of then market but quickly of end of the of implications hard until coming look our depends that. know It's October we those strong that all of is a of sets place. normal it very, expect you of back, at in there pause Brexit. think was had I the an surprising kind kind scenario. have in whether in really When a a the we contingency and longer-term We plans when situation the obviously following we coming struggling XXXX. rebound management in took that to months is of downward the the a year bit their June see at market and very a everybody will how routine

So working forward overall, no our be will limited. been total but means, prepare that implications a on intensively hard to by the our are leadership Brexit, has global profitability to it, looking UK not for we

to in to Understood. And of earnings. then just for forward in guide sort incentive going expect beyond? Are so you've environment out to still look equity that $XX around or In past, $XX next rules around to guidelines million or LaSalle. $XX fees appropriate million we some in check million what as those on and a the being normalized year I in given wanted

So, is this David, Trish.

that see a a for are and a fourth at XXXX range was million, exceptional. $XX year year to that's normalized I versus to at we definitely look which into we like then we of So XXXX, $XX mentioned more quarter, beyond going look million

Okay. And those guidelines looks in still hold what normal older roughly of like? terms year

just course, that the we proviso, with guidance. Yeah, provide of don't

Right. Understood.

much. Thank Okay. very you

Your next go the Please from Germain question comes line JMP Mitch Securities. ahead. from

open. line Your is

hiring last to Christian, my question. been changed Thanks for seeing competitive the anything the just you've taking over has about XX of curious of what and terms backdrop, really in months. course XX

Hi, Mitch.

also some to have bring of beyond feel But We in sometimes package. the we we kind and that on. we where very that and target And is it once for in talent focused labor is story to very are a so think convincing have participant I just a and well-positioned while, for it intense goes be a for compensation real you'll talent new talent, to market far have people. market, lose with every really sometimes are competitors in we you great something successes bringing constantly and that. a have in fighting

I So increasingly it's of normal environment, on think of tight getting but a kind it's talent. kind

spend. technology you've that I it know accounting Trish it, and couple think measure technology technology investments I your I'm who I about a I I a that back was customer-centered was it more, been focused, think know mentioned spend. of how were but you believe I office you. curious know also -- Got there's

invested? you how the capital on that's -- guys curious look about at the I'm you how return So measuring

kind for and One we Well, is the as significant There, around finished of you have may increase is productivity. by relatively of three the will major next running year. be have heard we couple before, a in technology, been easy streams. a have of work platform measuring we which which because end years have

global on We the running same technology. have platforms our

wouldn't them investments it Besides supported what guidelines have will by update not still clear had we be finished be make been but those those ongoing to investments. XXXX. payback, technology to the is from if that have we need you So end will see it your that, because and because around positive, we even anymore, of

been especially work to have metrics the we we lines other constantly as an undertaking starting and our so many of bring service and great are ongoing are have different progress, That into lines. platform. Markets is analyze it to will something we other it very and is do. service trying we Again, look now be that. of kind success The Capital same stream And our in on we business made to has of the far promising that

third most client-facing piece, staying technology, is difficult as analyzing community, piece, where know, to are, startup business very we models. The which the close you the is

first. experience. investments very analyzed clients have many benefit of general more return to technology than we business of the clients hope driven how areas make or PropTech identify June our XXX there, more startups. are are Xst models And on that can productive around kind provide of to in those those the since bringing see technologies our There's much the are those rule and which where see no how topic really because increase with We employee best-in-class we our activities we clients

of And return from so measuring different ways is the coming it.

you apologize, growth a but that this, you. way almost the it? missed is organic, positive mean, then, should to entirely I how think revenue one – about organic – the was last might EBITDA. I was And Got what I contribution I the to think me, there from have that said

years the right. completely was was that margin almost which that's acquisitions level completely Yeah, growth, had of that over expansion, of XXX basis organic. of past that really we've points organic. was The It meant couple almost

Great. Thank you.

JPMorgan. comes question the Anthony from go next of ahead. Your from Paolone Please line

open. is line Your

first My balance question you. versus the Thank with returning are under bit seemingly and leverage is lower. a shareholders? on to thinking about sheet turn acquisitions a capital How you going

a Well, sheet our we to our balance and leverage have situation. to eye obviously close

couple just done seen, further a As we this a you and small week. of earlier have announced have one lately acquisitions

think I economy visibility will active the to so. because the expect next as from that interest people market opportunity who forward, people a will exit very M&A company many become are will great their We see in XX having more the an with the over considering XXXX – around months, going do

continue analyzing market. to to what's will the we coming be So

Another area capital to use us for hires. our strategic is

also that we Markets We like for to our couple use very Capital of us weeks You environment our New team increase York followed a ago. And that. to then, something into positive very market may spend have successfully the did the continue in will the the which technology. created opportunity dividend around shares, our And of well looking at are the then, obviously have senior for repurchasing of to our as compensation share policy. continuing our we part we as folks analyzing with dilution, shareholders

growth business traditional Okay. think things I Because kind Thanks. my the it that, about of to outsourcing we to And other in drop kind going the all think Tetris have various like and outsourcing. outsourcing of should and the just look related you I If few peers, of annuity-based versus is does those Do of you when management some at project versus the interaction lumped disclosed into rates – those goes or of management, the buckets. for annuity-based across we through we question buckets project one. kind annuity up how your forward? growth all think trying

and which of a XX% the business before, Facility large Solutions Well, Solutions a business obviously We call of business, growth growth very, annuity strongly. Management is our as we in said chunk we the growing a what XX%. quarter-to-date consisting have very Corporate had of year-to-date our Corporate business, is of

years And next trend pipeline very an of and a are which have we that so strong going forward. something there's excellent industry couple healthy in the seeing continuing this we because is over

markets, of our about by of which interacting call which you are see compared new in trend and how this are those tight very trend in a to parts There other whereas is the development. going said, businesses we business on economic we business, this more as I obviously short-term in our other developments impacted very parts are annuity is what resources construction industry. continue and one strong the ask trend, Solutions would fundamental, macro If especially more specific Corporate a to is

than construction the buildings there's Europe see done a because in very new in where a of be of building easier one. because upgrading that you tightness to much is industry, So lot that existing of the completely

and made and So you that rate have XXXX. we in business project our about business our has a again, on that strong bit very Tetris our have note Tetris expect of additional continue in growth commentary we run management very, that XXXX. in And to

Okay.

– grown Project that Development & that's is Tetris and substantially. think in we So your to Services think

component the double-digits and to think If that business & grow just Facilities Properties item, you think continues the line year? next do about Management that though in you

also Property shows which and of different business dynamic world, business. Facility very running the The of different Management our Facility that is business That which is business is a in is it highly a Management therefore, slightly Management than parts competed a dynamic. definitely, the part

Thank you. Understand. Okay.

no further closing for to I are this over time. will call There at turn questions the comments. now management

continued will we Trish, fourth with the you Thank no forward call. to joining for Grace, following quarter. We you look for and with end interest and Well, further questions, your me today's in JLL. speaking

this gentlemen, and conclude Ladies does program. the

You may day. disconnect. have a Everyone, now wonderful