Jones Lang LaSalle (JLL) 5 Nov 192019 Q3 Earnings call transcript

Good morning. At this time, I would like to welcome everyone to the Jones Lang LaSalle, Incorporated Third Quarter Earnings Conference Call.

For your information, this conference call is being recorded. [Operator Instructions].

I would now like to turn the conference over to Chris Stent, Executive Managing Director of Investor Relations. ahead. go Please

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

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

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

Christian President to like the with I that, opening And would and Officer, remarks. call Ulbrich, over for turn Executive to our Chief

will the CFO, Chris. you, our and quarter third first my for details review I'd Stephanie introductory X performance results Plaines, following Thank like of our to this welcome of to of remarks. months XXXX. our everyone share

share, local the than combined robust EBITDA local EBITDA a HFF in an reached higher increase for grew million Adjusted totaled percentages. in for strong currency XX% and a year had excellent $X.X double-digit a ago. our quarter, These billion earnings results quarter in third share, $X.XX very QX product per increase per Fee XX% growth with adjusted of in increasing quarter acquisition. by In $XXX year JLL with revenue, excellent compared earnings a at above performance And organic in local third all are $XXX revenue summary, currency currency. a growth, quarter adjusted from XX% with million ago, the adjusted fee the XXXX. we diluted strong recent

our recent real solid, cautious of activity shows market forecast for theme in global global real estate estate context, investment in still leasing performance below GDP put To global years. into gross XXXX, are to and regard of The amid recurring X is but the With growth levels relatively fundamentals of backlog. volumes Slide slowing the healthy, a reflected conditions, X.X% absorption.

Global investment period level volumes XXXX. the in increased same billion, quarter, in totals the year-to-date with $XXX XX% bringing to

With sector. capital though helped the investors, keen volume cautious to yet-to-be-deployed remain highs, funds selective, near and access increasingly by the of all-time

XXX the quarter, office healthy totaling global cycle, slow, remained edged Leasing X.X% have during square volumes started rate a vacancy slowed to XX.X%, feet major low rental the year-on-year. but point million across new XX growth in office prime and to to The markets. down

plans. on JLL its strong together We and since review, in acquisition realized quarter. HFF financial both and back takes HFF our you update the us as HFF to executing an Turning of first combined at focused before beginning and closed on own detailed which the quarter would from I our quickly Stephanie performance, the the third performance to came like our the colleagues new through give growth acquisition,

strong in quarter, compared increased XXXX fee the continuing same the performance. its half digits first XXXX, revenue with HFF For double period

strengthening capital excellent has fit, progress by complementary. strategic encouraged the are We markets significantly highly existing our have made. has acquisition been our Combining we capital integration been footprints markets an The expertise.

to enabled Estate HFF's able provide Services. of is JLL's Real The platform achieve talent full more global capabilities access initially now growth. to than suite cross-selling of a are opportunities clients driving with are we to Together, expected. accelerated and base stronger better We creation we

join announced client our executive This meet JLL real second technologists. division future X,XXX be of of environment. recently market Spark Yishai and support future lead JLL Board. the initiatives opportunities will XXXX, transformation of formation Beyond It and the In Shah strategy to than the new our technology and and who comprises a the more in phase Technologies. technology needs, our digital to anticipating technology and in highly founded and we Mihir to estate, will build leader talented expand our reshape and global work of Lerner, data

me capital allocation provides increase authorized map shift X% of Consistent $X.XX road our Directors Board to to opportunity technology of a shareholder from our dividend returns. about a semiannual strategy, with a XXXX. per great our Talking share, with has

In decade. a a than addition, a new $XXX share replacing program, been the million dormant has repurchase authorized has that program for more Board

the also business performance while growth through stewards Our capital confidence support financial disciplined to good These business reflect credit while and strong our in allows to profitable outlook and continue generation returning share strategic, long-term of long-term cash investments us being to profile. the dividends an in to shareholders and our investment-grade to maintaining drive affirm repurchases. flow actions capital commitment

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

record Services, Estate HFF healthy details excited momentum. post solid full everyone revenue accretive the welcome I'm acquisition. We of first and combined Christian, double-digit and by our delivered you, to another to performance, quarter had basis, our on of Real its was expansion, organic acquisition. HFF adjusted driven strong share Thank organic continued from we margin quarter in growth On with recent an our call.

year-to-date. we quick a unless a record specifics, noted. quarter increased in currency, revenue XX% more fee report third XX% percentage compared XXXX and with into grew start reminder Overall otherwise changes local that we Before

increase all the For growth acquisition. growth XX% a result of fee quarter lines, and HFF $XXX with and million, the revenue XX% the solid in which the improved compared the of quarter, by service same led X% was period from the XXXX. RES, positive contributions was reflecting for was organic HFF

driving adjusted EBITDA to annuity margin platform, and notable our continued segments. an The record and in leasing Organic revenues quarter Asia LaSalle third combined to successfully double-digit most led equity contributed by scale and of business, private XX.X%. in results impressive and achieving the Americas services, gains are Pacific development project growth margin. In our we

for on the business both Markets organic of Corporate fee quarter Capital growth strong XXXX. continue and in to the Solutions full third reflected Our growth is the quarter. XX% momentum achieved that year-to-date double-digit and revenue year for track

on calculated As fee adjusted for margin, quarter. XX.X% revenue noted, I EBITDA the was basis, a

the achieved by all offset geographic incentive quarter from M&A. from drivers spend productivity ERP-related our efficiency at LaSalle. contributions lower pivot as will place XX expected of by Our rollouts business business financial basis investments expansion segments, and Beyond notably we HR third XXXX XXX systems. RES point and basis in driven toward margin organic margin by of completion a from multiyear across when the partially away scale our XXXX, positive and future systems with of the recent We Incremental the expanded compared fees represent points The ERP global with impact new growth target.

management. the billion The quarter as facility. from to with through debt a levels Total structured second debt quarter. our of net debt acquisition, Consistent increase cash the third X.Xx increase up $XXX combination quarter million reflecting credit and of EBITDA our increased end, by was HFF shares adjusted for transaction, an year-on-year. and financed at to Turning XXXX driven was $XXX million $X.X net to

and timely prioritized credit continue have investment-grade commitment affirm maintaining profile. We to an our deleveraging to

Moving revenue Americas XX% to QX fee in results. XX% our segment increased year-to-date. and

Project Xx in strong was grew the placement leasing, quarter. across with HFF Organic nearly XX%. The investment Excluding & with Development Capital growth newly Markets. the revenue with Capital debt performance for business growth and was HFF, double-digit base broad-based Markets from sales. combined impact growth the growth a business services and double-digit solid acquired generated fee

the in encouraged As the earlier, integration HFF Christian is and going months. we mentioned the well, performance first by strong with are X

portion good the X was made rate progress the stated synergies realizing days and to $XX and track identifying annual in have synergies months in X of to targeted achieve million a XX first and EBITDA run $XX over XX million our the are years. in first on We of

So duplicative been company JLL XX HFF to to teams, co-locate across and our consolidate far, public working locations and cost. eliminated U.S. have we've our offices we

financing bring who impact lower to to want and on energize been increasingly estate that feedback and owners seek for the overwhelmingly Real the cost environment. leverage partner to has our execution and/or can to to capabilities help to their partners and best-in-class them process. started create technology workspaces of employees sale have They motivate and the We clients, become look bring positive. their expanded all efficient more aspects to and

the Our speaks the power of ability needs comprehensively to of clients our to our combined platform. address

agency in completion of Real Texas. of based market we Commercial continued leader management leasing a M&A, In the Estate the and announced terms in acquisition, Peloton property recently

Leasing. to Moving

quarter consecutive our by Our business of industrial XX% Fee grew quarter double-digit for continued fifth momentum growth. continued the with sectors. year-to-date, revenue and larger and the deals strength in as technology driven a realized XX%

make was quarter gains Adjusted and consulting for between quarter. mix and XX% HFF. year-to-date. and Development contribution XX.X% transactional higher-margin XX% for positive evenly EBITDA margin from advisory continue gains and from of service X% to grew We was Services for points balanced significant organic clients. businesses Project the our expansion in the basis quarter bringing value-added in to expertise our the the & delivered margin The XXX

revenue the segment in Fee solid strength France perform third the U.K. and EMEA. slower in with saw despite year-to-date. XX% continued impacts to annuity quarter, X% in Markets. well Turning reflecting resilient growth Capital and the fee performance in now for from to quarter revenue growth businesses This economic increased of the in sluggish Germany. growth X%

quarter, points margin basis an increase X.X%, For adjusted XX the EBITDA of was year-on-year.

X% Asia over to increase Fee Pacific, where continued XXXX, an solid. revenue increased now to be X% year-to-date. performance Moving

gross markets. down the third the of of the fee all flat conditions was economic Leasing. in and delay by driven a was uncertainty, combination in the XX% Leasing quarter the impact with some declined quarter, In year-to-date. from lines exception absorption revenue vacancy quarter Market deals for grew tight and service in

faced against XX%. a which was XXXX In up third lap quarter challenging results, addition, the segment

positive XX% Capital Capital strong revenue XX% service EBITDA reflected Solutions point growth in Japan profitability XX% Adjusted with the larger in propelled The and growth the XXXX, improved clients. existing by deals Corporate expansion year-to-date, Markets year-on-year. fee the QX win with in and with primarily growth was quarter, quarter Solutions. China. driven XXX revenue for fee a increased Markets, XX% Corporate and in mix, and basis in compared XX% by Greater for combined organic improvement year-to-date margin improved rates

third our to lapping earned Investment XX% in near-record fees fee declined primarily a now incentive XXXX. Turning Management and the XX% quarter year-to-date revenue for the LaSalle's quarter result business. of

health underlying quarter, asset serve Management to $XX the the earnings Asia due fees, the as incentive ago an from for the primarily declined margin-accretive of LaSalle's a quarter year XX% annuity funds business, Investment X deployment material globe. predominantly increases the by in was and to and for year-to-date. million valuation the which fewer impressive quarter Equity were both compared grew Advisory fees measure For million, Growth an achieved by $XX dispositions. in capital across raising driven net Pacific. to open-end

margin partially equity offset by XX LaSalle's reflects point was year-on-year. adjusted record margins. performance the XX.X% achieving in the quarter, expected both margin strong basis and a fees, for The earnings decline private EBITDA equity decrease incentive

management the quarter, under assets was third For $XX.X LaSalle's billion.

grow Our higher-margin scalable, organically concentrated ability and in strong AUM to remained products.

tends were the fees million. to target $XX predict incentive million For and LaSalle's hard year $XX fully range $XX to X The control. months, in to fees full first be million, of timing exceeding of incentive our not the

we year, pipeline could our into transactions benefit reflects quarter of a few that remainder As sizable results. the the look fourth

a from In benefits and with stellar summary, for quarter of acquisition. the along the the representation were strong results presence, anticipated market transformational our HFF the

X% finish deliver strong in to we We positioned growth cash our to year seasonably forward Services are to Real generation. revenue X% Estate We for earnings target well as the business. both our organic enter of our look fee to and XXXX quarter high a

And now back to Christian Christian? for closing remarks.

with environment we most top to strong and We Thank operational capitalized and line fundamentals margin a geographies both efficiency on generated very performance the efforts revenues Through a fruit. our you, quarter, the strong on Stephanie. segments, across and are business bearing increase third favorable perspective.

XXXX. are EBITDA of pleased adjusted the addition, we be already HFF progress X months our summary, the consolidated of acquisition XXXX XX%. already We stated expect range In accretive post now JLL has and to to target our first our made is to third long-term margin within with quarter the results. XX% In

year. North To would We to fourth World to became Commitment. and We America close Council's Jones mention awards some our Green global the X property Building consecutive named for Net those to to Index U.K. Building relative for like Carbon achievements prepared remarks, Sustainability consultancy sustainability to the the I Dow were the commit initiatives. first

we Disclosures, exemplifying support to as on on leadership and of for JLL's further and sustainability, stakeholders Task further official Lastly, The TCFD. opportunities our Financial on commitment signed JLL's our TCFD key recently illustrates Climate-Related risks both transparency Force supporter the of

change. climate to related

Finally, well. our world I of like people all would so to around and clients, to for serve recognize thank JLL continuing shareholders and our the

take let's you please Operator, explain Q&A Now process? your the questions. would

[Operator Instructions].

comes question with Paolone first the Your from of Anthony line JPMorgan.

first My both people HFF. sides? Can the integration on all is are completed personnel whether question part the talk about of you on the done? And is whether decisions

dealt probably are couple overall the clients more from right extremely it's that. we much of Anthony, quarters. far us, clients the The Sure, on so from people by feedback are take the driven XX% being strong. start, been at a are done of really very well. The what going obviously, Christian. will integration But I the has with run-through our that would we have been and so And say expect decisions

There's overwhelming leads then back base, our people support an from to you and that the decisions. client

than the legacy HFF in much performance as see smoother business JLL expected as and can the that well so has originally, we legacy it And of the gone business. you

Okay. you made are specific deal? opportunities. was be side, And more revenue Can comment about think synergies where more in the in cross-selling the I of little revenue then emerging terms a on the the synergy

services full used they legacy are to Well, that with to what clients services HFF you we see with buy now which is provide elsewhere. offer, our able

won Markets us, served which we from Capital we former other also way have mandates executed around, management the but HFF clients work on the is So have clients, Leasing side probably well which colleagues. now HFF by extremely to assigning are

plans, of been have service there's this around and great lines going put and so, we between has back our forth that. stronger the And than kind much momentum different into

Okay. And last then question for me.

third like quarters and I and strong I know X%. On tougher quarter the of down had that the 'XX, string a you to had really you've Leasing side, moved XX% so here. growth know get comps of

quarter should quarter, quarters, As comp fourth the to few start even we yet. some about the of tougher fourth or Leasing coming think in really just gets we about the think maybe strong How numbers? off next

and momentum. which still business in the U.S. is work is strong mean, our clearly leasing and our business of has XX%, is was I there's in Well, the Leasing U.S. excellent. it business the digit, largest grown we in Leasing The quarter a see double the incredibly tremendous third hand is still

regions, the is can If quarter. you than really slower in previous the U.K. the X and is, areas move on where foremost, into EMEA, other U.K. side. first really the the much are in it's Leasing That pick slow you which

to still overall, Europe which you a something is surprise But in cut the come is That U.K., out doesn't as leasing relatively us. market if strong. the

Leasing in France. Germany side double-digit the on We delivered and double-digit in in and we have delivered have growth Germany, growth growth

is down down Leasing If the side Greater quarter. the it's predominantly which on move to China slowing APAC, in you

We still ahead. back particularly and bring growth the there, of opportunities more U.S. kind really storming relevant what to and in is Leasing, us muted overall if previous in the performance are quarters. than it's seeing is still we our But the so U.S. the that for is Americas but

business fourth Leasing So confident are quarter. overall, about going our pretty still we into the

Rahmani KBW. question next line comes Your Jade the with from of

EBITDA separately? question. you Just revenue U.K. a and business each of in in JLL in quantify fee maybe quick of China, the percentage of can follow-up of terms give those Can does the the percentage to that the last you or

on or leasing environment? the Overall

has to overhang been, be stock, been JLL because an definitely I overall would X the numbers. think it think those greater I helpful on have so international mix Just it's

that Our if revenue. Greater China not below fee is I'm X%, revenue mistaken, is and of significantly of kind majority annuity-style the business

transaction our wouldn't slightly And small perform is noticeable wouldn't that because obviously, growth filter really business, is through so growth be that such the annuity growing. of the or would will numbers, downturn growth at we our a overall accounts bottom muted, if continue of in even showing, decrease And it is nicely the in a to slight line. still slight China the see which really the business numbers and to

are about So overly don't we getting least, I and should. get, think concerned wouldn't I not at that, you

couple On already business. there the side, our situation Brexit Brexit in is for we this around which of U.K. uncertainty see the mean last I around the been now the and quarters. has

on our is, up coming doesn't once road the concern have revenue here, can that To I the as planning, kicked December question, our what U.K. in chip in So that own the does hand. precise with revenue. down it don't pretty overall Stephanie us. me I which in that I we again, the have on has whether have election beaten see, don't again much forecast quarter. let fee on wait, really every no, been U.K. be know an in here don't here something And

you chip want Stephanie, So in? to

Stephanie. it's Jade, Sure.

U.K. than business Christian is within in overall. the the well hear, decline our the a broad as demonstrative business U.K. That's so But that, the Leasing performance little performed in said, of EMEA. Leasing example, is as soft But you'll less and in So Markets, for Capital our XX% overall strokes. the that's

a balanced regard. it portfolio is So that in

the is And right? XX% fee revenue,

yes. total, Fee revenue on our

So statistic the gave. comparable to just China we

U.K. The China low statistic right? is the with XX%, X% and

on Yes. Correct. total fee both based revenue. They're

it. Got

Okay.

had business? Leasing, markets leasing deal, cross-selling up opportunities. it the in point is the you're specific perhaps Fannie terms multifamily JLL's saying Is team in better could out? previously which the with On you Mae seeing Or having capital HFF that brokers folks? of, Any HFF areas you're never GSE license, HFF

forecasted to our had kind that what Well, us. we would the plans in do latter pretty precisely of

clearly expectations Leasing Where own to the our regards on difference So on management management project there property are is no is on we and big outperforming the side and expectations. our with side. the side

our we capital clients. So clients, management more are as And in business our on from business legacy expectations. JLL HFF markets the beyond side said, is leasing I Markets with Capital we are property winning which winning

see areas, quarter these and the the will is both our quarters as but first forecast moving we the had So cross-selling significantly in into momentum there opportunity, fourth our cross-selling we into opportunity expectations, exceeding that and some forward be XXXX. of that

to the ERP outlook, the would Do on terms within be of going expect XXXX you to In to consolidated that? already side. positive you're mentioned and XX% target? when you initiatives some increase in margin the said you And range, that you XX% provide

time we the are that very, we being, early. range really target happy XXXX. we what targets thought when so we That very For already what happened achieved in those have announced that wasn't

the to to how and to those of XXXX of course the we we're XXXX being, we moving how And come XXXX. over into do so are comes see that For by. sticking there's we time back a will see if target, and need targets, kind

And about that deal the Board? you thinking HFF credit Is financed just leverage the how And question, using about recession? the performance company's a last are resiliency something increasing that are this discussions how relative to in with and to facility? respect with the thinking are you potential discussion balance sheet largely

is world to leave part the and dismiss that. previous a of for growth the the recession. we is the close of economic kind Well, will X.X%. it's lot Stephanie. and the noise in of the world, That part At but that now it moment, still there in take still mean, was of so noise a and is than potential years, I'll second foremost, of the kind shouldn't question talk first I I X%, increasing first question, the is less about global

for real whole continuing, our really that as advantageous and of into for an business. for industry really, it's to the be environment outsourcing capital is urbanization estate trend positive, is and allocation and true macroeconomic class. real asset continues same our The The very corporate of estate

outpaces whether our macro trends which industry. And decreasing a those GDP slightly development the is relevant are so for particularly us, question for

is I the say fourth work hand only work a the that second at into the hand that already the in and high at third situation we can is the see book results. into I in the record the record And, the now at being, high. same now quarter quarter moving the of work. moving tremendous said of quarter, We a have that have a that end for time we you see

in clients are And our the about deliver so, next us outlook we economic quarters. do, the couple less of any we to are to us hit by concerned of kind what working and decline being over global expect a

that regarding take your I'll leverage. second Jade, the part question of

QX, debt took for the at which with about total HFF the on, we X.Xx. is in we're that $XXX landing million So about deal,

our transaction. exactly above typical slightly into the going we what that's is expected levels, which So

So be we're prioritizing that. debt deleveraging, doing so we'll

profitability well We're the we've as very flow generation. the pleased cash as with curve that had

to that X So get historically levels with line been down we in we what quarters. have next to largely back throughout are expect the

question Your from William the comes next line Sheldon of Blair. with Stephen

Congrats on the results.

and I First, you're as waterfall, normally quarter? I in tech showing RES drag. been this maybe investments driving you that's some benefit about boost about although ask the talk to a drag, the margins to believe a investments clearly moderating can what's this But a wanted slight quarter technology

we're of has of and was it's coming Stephanie. been as this that a it ERP finalization global benefit concluded. program. so PeopleSoft Workday, to a quarter. reflection Sure. really Stephen, execution, the is now a our you'll It's recall, showing rollout, Yes,

So that's you're spend a really that reduction showing. just

basis that of point where kind drag. compare we to you that year about XX If last was a QX, were

expected exactly So that's what see. we to

To the on your much technology-related in client-facing heavily spend, still are in and innovation point, the we second very focused heavy space.

kind We expect of don't on going this XX-XX to expect balanced nontech into long-term overall be and type have of repeated then be tech investments as about forward large ERP XXXX picture cycled we we fully those to So investments. investments.

systems? ask, wanted standardizing still. Just Are to systems you efficiencies I guess, leverage detail of seeing start the to there? be far ERP on still able as in then along early And terms we I helpful. in How That's Okay. cost the around operations of you'll any realize those to your of are more? some those those maybe of you as innings kind

to kind consistent globally those leverage being of worked and the of systems. for be was will years to next roll on, what's really continue that Well, the out now the couple first case to task systems and

use plans have scale, moving on to we the kind to So time, which take of. for the first really really have, lots we of of and take advantage advantage able

And over further going so we productivity couple hope to and increases of to regards that kind confidence us will is the a with of to come, any next lot see giving years resilience forward. of margin

Technologies Got the prior how then, investments margin especially just about Okay. seen And you bit kind little the it. and point, I structure to some just for related a Are this technology reinvesting questions, at to you year-to-date strong from performance the efficiency guess, given that? more underneath JLL maybe initiatives? of the of X incremental in and JLL ramp with new planning you've rolling upside the Spark are thinking those

into side, great on are digital client-facing the use real will that that tools. turn increased technology. and and into gaining investment there minimize under advantage whole lot data full this all of JLL our of and and really efficiencies ERP richness the the Mihir benefit then our our unified data and complexity to with new Yishai mean platform technology for and I of to is of development our accelerate we clients we depth turn of a that bringing estate and real leadership apps exactly. replication Yes, a and Technologies into idea unlocking knowledge And the in

technology And I client even is you, rollout mean, us to that on very focus I was game now we our platform that it proud that side we what whole allows can of are the plan. more ERP achieved the tell the with activities. because

line from O'Shaughnessy Patrick Raymond of James. with Your comes next question the

I year want are America's investment it flat. full volumes year, sales real sales about on X%. it looks estate Americas question Full up your volumes. like Year-to-date, you're expecting with to a investment start outlook for

been is quarter of in I guess, related pretty some quarter. you have then, on did would would number on that some the what in the imply, that quarter? negative outlook? forward you if color from guys So provide can activity And have a think, kind Curious note, going the third see I into thought would you a big fourth the sales otherwise pull in fourth

are caution of points, sources are data. The like those a all, these difference to we I kind it, falling doing things there's how first into of are slight data doing to little different it and a way that Well, always with there bit it. research public

have always around We markets and environment, quite cautious are been the with outlook probably with we cautious our quite volume still that. capital

We have say the hopefully, and more again? surprised positively quarter, by the second rebounds part to was in that third volumes the of strong is What opportunity of been the quarter. surprised be question, there in fourth that your

third see in the quarter. you Did pull any forward

during the quarter? you So thought previously would some closed put Capital fourth good pretty you would up quarter third Markets maybe activity that have results, was of that have strength

tough the seen No, forward only that's we really any quarter, say of the quarter fourth if fourth of haven't strong fourth for XXXX, comparison performance mean very about yourself of HFF quarter, you pull I the the I in but had really. remind forward deals. the kind thing really going would not very, a

work our As in Leasing and levels. see, very, is in but said, business, hand also the is not we I record strong only Capital that true at that and Markets for is very our business,

in been are way translating translates past, around we And the so has it. if it confident that the pretty

very on around to But be quarter. are typical And for so the know, expect don't tends come risk come in some and as quarter, transaction they side, the But time that. the a kind the of fourth or always transactions as either a quarter, always. there's in we in quarter you being, fourth they pretty to perform that strong

I on from, your of X% the local currency on quarter. And and is globally, X% that would anything of out Great. then down Is third That the management second quarter. that basis, was explain year-over-year a decelerated going think, and this kind in deceleration? growth call some there in year-over-year property to facilities that would there you

management property the first putting together. handing that the and one of may a property countries business small our business the sold you and Europe are buyer, we the over we is on course that. small management over have impact of couple Well, quarter, to that the in noted we're aspect the has facility that management so have And and third

look facility growth continues nicely, at the organic to there very If you and in grow our see which that we area. management to business, continue double-digit is just

either Great. headwinds then signs or one What some contributing Okay. maybe are down? space right of some co-working in for of might a backdrop as show in incremental out you there last guys now terms co-working the slowing And me. seeing to positive

Well, space There a leasing of I that to last to from appreciate in who the X,XXX additional mean, all big out there of has all provider getting a that I attention and market weeks, inventory is quite growth space that. the probably providers relevant some moment, those U.S. X% for their has has the chunk of But X% those that the less providers lot taken continue in coming the office been press, at are others, flex between more couple the somewhere area the be and been office growth. been, obviously, lot them are opportunity take-up for over prominent are of have they attention total for flex than there, in a of will

for said to industry. be us to that our really And be that in an space, that noise serve is is offering, that As we corporate to there, you just will offered enjoy and that services of It's much opportunities business flex for something our this flexibility, the that those is recent which year, that see model operators here case. flex there to I stay. space advantageous and which clients. which won't because is continue with I change ongoing They think know, earlier

comes question Jason from next of Your with Point. Compass the line Weaver

HFF of First, to I on, markets can wanted touch capital the sort with revenue? now financing-driven comment versus America's the specifically, the composition revenues, investment you of of on sales in mix, proportion

smaller, same then and of Investment business equity It's of sales the pretty especially And have and the sales. much majority other balanced, kind the much our is debt they the business much and areas the of placement X. pretty the proportion. then the much, is loan the placement

going buyers have their price move U.K. in U.K. which environment is whereas an a the are don't forward to lower the to been at owners buildings into is of get U.K. a of in transaction you U.K., kind environment down relevant the attractive in premium in have that at debt the refinance, in the kind business HFF with the rate the market of ambition which have in very because us time, the political is I buying U.K. where if obviously that interest unwilling this very quickly something sell to expectations, came to very uncertainty, mean, And just the strong very, I in very you for for some point significantly. if volumes moment. an

a in is more slightly be probably debt in of that sales will other world growth, muted the something also so when areas business And show but U.K. the side and critical which the may U.S., volumes in more not investment only the environment. on

just you you're seeing base that and by proportion then the sort being revenues your overall P&M PDS and are talk of client whether accelerate? brokerage-driven of driven that can current And about

didn't I get that.

You a were bit. what that again, little fading Say part?

me, management property, being of facility that by clients. Development Excuse driven revenues brokerage Services are and proportion current & Project the

those that Sorry, driven much detail, that of how I don't is have by clients.

JLL very clients. are to approach proud our We of our One

management so management in much facility trying any services statistic offer approach, our very clients. holistic now have we deriving all clients revenues to I at are from hand, or don't those project a but how of are And

Okay, Stephanie, one Jade's point fair possibly. just for enough. on more And then question

buyback reduction the priority at share this authorized, for the cycle? calculus this on leverage point change the in does the With

doesn't. no, it Jason,

very be our remarks, to long-term is allocation in return strategy that deleveraging. We capital shareholders. balance and investments prioritizing business going my I prepared focusing I prioritizing believe to we're said a for in healthy the then think within on growth between

of share active So, the policy, we dividend the strength forward. going know XXXX, the since have are which we're you how amplification a of business feeling very repurchases and about an

right So of line. think to the that's on that do. continue the prioritization we to Debt in right HFF be thing will the front

So...

quarter. the on Congratulations

from with next Your the JMP Securities. Mitch question comes of line Germain

was general for your pipeline that few in Or transactions, the LaSalle? Stephanie, brokerage? mentioned just to you sizable in that a remarks, is specific

LaSalle, those It to speaking was specific incentive fees. to

on can color these hitting wanted that put to obviously transaction not the and potential So that sizable there one we it's remarks as is in prepared do area accurately, at further you that able in results. we we any are to see know, give that fourth difficult but quarter. nothing upside but predict time, a really we this this in our could be predict It's play potential to

quarter, a terms Pacific more pipelines mentioned and EMEA Curious in think specific then, capital a And feeling the markets little to rebound of had as we increasing, results somewhat it Are with Asia Christian, quarter? Okay. fourth last in stands? well in was like, the I was to seeing that bit the of where as consistent activity you today.

very I U.K. Asia, I from in we who in With sellers forward. that much with and comfortable are London, it, the feel in to made extremely are around progress, in so call, at confident think would Well, really they volumes high. their are levels mentioned look have down pretty because portfolios. of regards that kind what very already expectation call rental I we EMEA, When the of, the going this you

They have last significantly over X the quite grown years.

of so that sell owners the for into price believe premium market. no space additional buildings excellent, get have is flow cash an they their stepping the many to kind of whereas for their So should reason they below buyers expectations, that still

so we it So plan, in is to U.K., already volumes within the us but believe be there coming. no is surprise continue negative our muted, will for that

before, think is I as which other Germany. muted, market, is that which mentioned The slightly I is

market What are that more at this France. extremely yield extremely reasons, they point. and are how different low slightly For going well is cautious enter people is levels

France France tremendous see is strong. also the in particularly have We some we in being mood strong. overall growth and markets other very, very And

U.K. buyer European markets, to We which enter coming continent. only now used the groups have which are into moving across the new

Eastern is mention very now. strong in to Europe the is very, Capital One Green

we fourth So for in quarter, around with business Germany. caveat the the Capital continue Markets work just hand to our see the made a U.K. in good I and very

that thought, I And cross-sell of in was but expectation? is, forecast. question no you in line my also the HFF you margin the or change obviously, is long-term then One, with mentioned accretive to third near-term there's opportunity your quarter. part mentioned know the better you second than been was

Just kind of curious where that stands as well?

acquired those Well, as of so deals. plan we do to integrating you as when are can in know, experienced we pretty we we try type businesses, precise and as Mitch,

many a out kind clearly criteria. Now is which deal of obviously this standing one by is

we were so market in regards the comments cautious with the announced And to our to when we deal cross-selling. the

went we happy we frankly, that went than And reasons. the X see quarter are so, expected. very better to better, It for first combined

of But First colleagues little the so that our HFF stellar. in surprised has of bit third the teams probably own were well legacy we the absolutely positive also all, a performance performed quarter. been legacy

You always expect some distraction.

proud we will what was totally quickly that and so really our And cross-selling, to how were come. to very where are they're extent clients to they focused do at. best continued really, we and predicting cautious that were on regards what With in that something

from Now clients positive. it went well so reaction because our extremely the was

-- slightly that cushion cross-selling performance there for are really Even predicting now probably lines. us of to were deal And with continue because muted, really, that strong merger. with and even something us other service to a better help to the which be of more will to the that, lot markets we quite if around is opportunities but so if is in not that show

just like. Great. for legacy the the you Last me, which is still markets to look in Americas the of and question my terms JLL integration capital like was and employees. occurring quarter think regards the with Obviously, on will throughout it hit seems one team occurring was what I

staffing where is region, heading of are think sustainable heading? where the Americas you Do that in considering of kind is, kind staffing organic levels the the growth, given

We increase when of because to coming brokers like quite increase to are of our very deal do obviously, lot And per the the are different always head. a a keen is locations. revenue in do and to very, productivity in, that, work you people there

still headcount crowded. bit there it in more for Sometimes, a and more is other become has opportunity locations,

can that it topic, as said And expectations. going planned you that our as But, has be will really well. it doing around really earlier to according attrition I has we call, on this been but imagine, been there well some

people's XXXX. so back business on course will soon, the focus our we normal growth And on in be and we'll to of where again of now very kind side, opportunities

you integration where of keeping it behind type think But that the on end, to be time, overnight. I very And busy systems on all technology be that will and soon, can't bringing that merger continue the together those side, so, the will much do is us things. takes us pretty

Congrats on the quarter.

Your Ryan of with next line KBW. question comes from Tomasello the

as relates was that's example, provide is how JLL broader those compares? longer and that us technologies secondly, the just can I group color what businesses at on Spark with underlying JLL's Christian, Technologies performing? some the any how you additional capacity actually hoping utilizing you how group, to And base have then client see the percentage do evolving? term, in For you stats of it do some are that JLL on

in any of other referenced? initiatives internal you some housing to there there addition are technology Spark you contemplating just other and the are initiatives And JLL large development

important I activities see and the very our JLL amount to a very to increase are clients. within our Sure. is is talking than experience of ballgame. our capital under different a which that allocation mean, activities more Spark about technology one Bringing people activity like in and technology who of deeply really to we very PropTech it to small we past X,XXX into now a would are working activity create reinforce areas, changing all first client-facing roof overall to the the significant. mean, our regard technology opportunity We small had was are completely the capital obviously world, attention us I the I get with the of to was activity all, but also on for side, a allocation. compared now applications,

of roll implementation. I capacity there's be said as platform being will X activities next a which out, to the And technology platform the into earlier, of as with X client-facing years our off they able rolled over to move lot

Technology and topic. leading is to want that around tremendous whole that have hopes and be the we build topic. changing we ambitions So environment, around

business questions co-working. quarter co-working growth much And flexible to lastly earlier one and Can on of JLL's in you year-over-year year-to-date? it how say contributed the as to then just in and office Leasing relates the

WeWork I secondly, for And an that for in actually companies commitments backing be market away the or you that opportunity space Meaning, spaces from like actually spaces? was might JLL previous is view re-lease is these potential on pullback re-lease where an JLL? as vacating opportunity these wondering if WeWork WeWork's to

that whole which I flex kind the of slightly very what, something to market. opportunities providing service been to discussion space importance overstating is which They is everybody's that mind very, on offering the and is have make the know think to You important around WeWork their occupiers.

past will couple space to to flex are is said But that we years, have space earlier, taken business to JLL, doesn't we as there operators take And one it has that leasing model out readjust forward, continue share I in if going a overall having industry. that mean massive to to than And X,XXX more and flex-based in kind our coming their fair the our of share. fair impact of there. companies

model of any one our sign business no WeWork is exception kind or the will will I is the potentially client back single to have impact market beauty material JLL. component which any company is that for not a revenue, that. that, to no actually of JLL's significant and to will up think space of bring frankly, don't mean I

you a not just but how do quarter? much the just the year-over-year business' And on enough. contributed the just growth Fair segment have specific in WeWork, number co-working overall Leasing overall, to

provide pull for of you have see us. business. of don't in piece It separate an is don't It the that that area. is it We of your question. part our somebody enough Leasing which To that number I a me client growth be answer to big which hand, just our at as group would honest, not out is already

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

quarter. you Excellent. And participating. can I Thank close to Stephanie speaking no forward Thank you. with for questions, here. you you look I the into call. calling fourth call with again your Well, today's Thank we that again and following think further for

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