Jones Lang LaSalle (JLL) 2 Nov 202020 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. All lines have been placed on mute to prevent any backgrounds noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator like Managing the Director now Chris over Stent, Executive of to would conference turn to I Investor Relations. ahead. go Please,

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

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

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

I'm done. impressed has and that unparalleled year, remain of quarter in what continues the success have to grateful nothing In I call. to service all across Their the Chris. you, proud and third they our dedication challenging welcome morning and our for Good and a our Thank clients remarkable short world. resilience providing employees volatile extremely to and be been of by

and monitor and The spread rise and help cases local people, situation, well-being to the the the health we the clients and carefully to priority. continue various virus. our facilities, health degrees of As communities our guidance manage process strictly of and the across global to to remain the world, adhere to reentry first of begin impact

effective economic quarter, continuing some the real Global continues with in and global that vulnerable many of the countries environment. uncertainty the effects as semblance vaccine real we were broad-based market trends economic on These the third of begin regain and activity outsourced workspaces, hospitalization prior the of can resurgence increased many the the in pandemic's in await to potential Improving fundamentals. well-being. virus, an workplace functions a distribution prevalent of the the real experiential industry accelerated longevity the remain ground cases recovered include indicators estate around Turning to employee world world. into impact to and and has COVID-XX rising on regional pandemic, the dampen the some forecast commercial in both to severity estate focus of despite Near-term before normality. pandemic. to estate

result changes spaces the future had a decisions their estate increased the their have on people ensure will to real of work, on needs. C-suites As Boards how office their and suit focus pandemic has

Research JLL continuation leasing the demand. subdued that the reflecting of reported from quarter a Turning specifically down improvement from in a earlier, but market. was to an global QX, office third XX% activity year

revenue fee to fee for EBITDA was Corporate basis although currency. slightly billion the in $X.X continues while diversified across compared modest XX% down revenue respectively. a only challenging XX which the that now Corporate pipelines in posting are year, I'm XX% affecting to $XXX third to Declines items all and rate. of end declines create totaled due are for pandemic-related reflecting expectations and Solutions favorable rates with relative XX% local the that benefit extent. market offset delays our points revenue the generated quarter. XX% third activity increased while decline closure million quarters States real Solutions the of reported ability X% for from in to to the up future end conditions demonstrated withstand quarter. face at results prior decline X% at upper of estate in year, year, XX in headwinds Adjusted represented Pacific Asia by a to our with regions of declined decrease adjusted EBITDA engineering, not point XX% in last United a down the margin Strengths as $XXX recorded to than and the to diluted in to share billion again same of as last XX.X% fell pandemic, $X.XX. decelerated its pleased and management the a were totaled associated continues the cost investment the mitigation facility Vacancy quarter volumes basis in the EMEA XX%, XX.X% third global expected $X quarter decisions net Current pandemic on Adjusted by programs. rate vacancy local currency, QX headwinds. global well relief Overall, solid the were adjusted with same period earnings last to quarter increase. million stronger initiatives sales in moved platform year. scale Despite mobile per onetime driven to the to Consolidated government for income part results EMEA

declines have Furthermore, year. the suppressed world. pipeline transaction-based this linger. pandemic. we the future logistics, real declines, the Capital by of uncertainty to improving such encouraging notable insights offer throughout our the Despite the Leasing performance the some postpandemic in though less-impacted near-term our for turned our caused and to recorded These increasingly on our JLL Markets resiliency preparing continues figures QX. industrial of to since indicators estate operating we transactions rebuilding due pipeline for service strong for Clients by for are encouraged shown a have and expected, and seen activity overall As which subsectors, as uncertainty performance quarter, lines as remains significant

to objectives. solutions that develop long-term framework which Then strategic challenges is successful is real business, helping reimaging and will Our first and commercial assist them estate. transitions adaptable conversations the their productive to be enable pillars: ability four workplace preserving on their transition, and focus the resilient we as profitable. while for people, on focused evaluate workplace workplace this graph This and in as well agile,

in a be platform industry. differentiator have consultancy as a expertise Further and and Our because platform. to with execution global capabilities clients is in pandemic reach disruption as providing of when of demand our is advisory technology services our commercial real our the in full-service uniquely investments capable significant our proven dialogue estate JLL technological our conveying the accelerated has and result clients strong

across to evolving to continue collaborations lines respond business our We to clients' expand needs.

discuss For mandate. these as a full this which and expand an is a we quarter, our into this JLL with The a and shared our to for business. the across management single prudent instance, as reflects actions of recovery. staff quarter taken every gain bank multiple and assure existing ability American internal and a occupancy of market confident the JLL, in evidenced facility JLL technology our leases. in medium resources we resulting action another acting business that their of of One role our the including development to identified longer global our growth services leading X-tier took our investments JLL, in led services and term across and this play administration cash now below the seek lines client engagement several align were platform, career but share increasingly part are preserving standard cash full-service JLL. help that, disciplined you that our Karen million further The reduction, for provide assignment with services, expertise net centers, and the drive as detail, with positioning management, generation ability I'm debt in the to to to to and cost outcome management the re-imagine transferring their in of $XXX bank planning services The clients all will to has regional one mitigation of and to leverage pre-HFF provider let workplaces. value Strong maintain transaction we by flow program, management adviser transaction are cost capabilities more our structure, contract able while to over ability level. sustainable consolidating company will successful brokerage, deliver major earnings just them This as demand. services an engagement. simultaneously opportunity better strong In map me benefits road current consolidate to the

balance capital maintaining seasonality inorganic and in long-term policy and allocation a and economic liquidity organic sheet is Our cycles, investments growth value. strong support anchored to to drive in investment-grade ample

worth million in return years dividend. to In cash ahead This returning to year-to-date committed is third remain repurchased our we the to million. previous shares addition, quarter, to the we $XX returned shareholders. amount our of cash bringing shareholders $XX slightly via In of

For at to to future, and repurchases. least paying return we via foreseeable do not cash the a shareholders resume will instead dividend share expect

will continue to third the strategy. will the appropriate As business value with conditions further turn the detail over we we and the move will I call determine in return mechanism to long-term provide evaluate quarter Karen, now XXXX, market through results. quarter first alignment our to shareholders to to who in on

summarize three Thank the with performance quarter are There our you, highlight third will Overall, the given to pleased I'm quarter. environment. Christian. current I points

decline revenue an improved basis, the at trend over is First, in meaningful slightly in our organic year-over-year when an terms top growth an risk being dollar while is disrupted. second percentage of second growth from bottom our seasonal fee revenue on and quarter. lines This reflected year, consolidated important unusual quarter the

flow, Second, pre-HFF generated to below used levels. cash debt repay we we which again acquisition to strong

continuing are align the we long-term environment, believe invest we cost structure strategic current while taking will that to drive value. our priorities actions in Finally, to to

to to on continues significant different economic in businesses. most be impact The by pandemic continues transactional business diversified our shock. Our the ways impacted be

to remains Capital pipelines in both services Conversely, as this business and largely property XXXX the Partially mobile wins our line our investors seek top continued our business from pandemic Europe June have headwinds U.K. management corporate and divestiture a occupiers of business. late and the Leasing uncertainty our to area engineering due increased management investors. driven and and by new end since growth regarding impact Continental and increased Markets facility offsetting, growth standards. evolution of property corporate the its by building of remains the decision-making management While occupiers were

everyone against a the operating local in now performance, are review Moving noted. otherwise unless variances period to currency, year I of detailed remind prior that

partially action declined consolidated leasing XX%. Our margin XXX basis management driven lower government XX.X% our basis by expanded cost Consolidated relief by revenue a from globally, programs fee ongoing and point various impact transactional XX offset EBITDA adjusted to points revenue.

the market lease X% activity pre-COVID. through of to According current growth and in in sector. logistics Broadly from chain strategies. the decline office to XXXX JLL increase remain investments in rents from to renewals concessions third XX% Our to in a in partial strength a in the in higher of in to office supply an softness with the the conscious delay effective Research, an favorably as the our industrial, roughly decline and XX% future relative reflecting of share seek reduction free asset real regarding office offset quarter starting compared has rent a of estate cost decisions platform. continue in activity, and significant provide We both global clients U.S. leasing as classes increase since XX% mid-March the well aggregate seen rents to

leasing pipeline Looking gross ahead prior. from our quarter fourth XX% three increased U.S. months

could by XX% delayed decline in this revenue encouraged trends, are fee environment. by XX% Markets and investment placement. timing driven emphasize be but advisory We closing an rates Capital in these debt over and declined

multifamily see again resiliency our we stability business, reflecting of diversified did However, our in platform. the

to-date. current with most The spread domestic valuations the been global markets. to volume Europe industrial sectors a bid-ask reflect the U.S. pricing at Looking most Global significant Activity continued though in scale Asia-Pacific of the curtailed environment, access of environment and as outperformed, have and investors been the adjust markets we to tightening investment the and resilient while multifamily some seeing decline. Capital in dropped capital the are XX%. Americas Markets Western to has experience

up Our high as the Markets pipeline June. across with from in Capital quarter pipeline end improved at percentage of progressed, XXXX trends the of September modestly single-digits the geographies end

to-date. be is There cross-border trend markets. estate intact longer recent sidelines encouraged are on increased reemergence to of was We portfolio, change The real by with of highly activity. capital the with reserve, minimal allocations no to term ready loss liquid and activity been the significant very much to forbearance multifamily our also has loan deployed debt

the in and was quarter As Solutions year-to-date. our Christian down mentioned, business Corporate X% flat

We continue the to be secular outsourcing encouraged trend. about

strong geographies, Real profitability. in fee growth experienced offset facility In service by more across lines. our consistent management but than property differences Estate we declines revenue and percentage the revenue to other Americas, Turning in declines Services meaningful segment, was in relatively fee in material

the of Capital We encouraged Markets decline prior reasonably the quarter. Americas moderation organic in rate of are leasing stable a in by the in Americas compared pace with and decline

decline fee revenue the Markets a from compared was actions. relief ongoing of adjusted with were year approximate while saving Our and Capital volumes. the government businesses profitability ongoing office market our X.X% leasing the revenue, driven property government partially and in was a facility The XX% relief primarily the by advisory margin down EMEA to programs decline Within were basis most benefit Capital earlier. fee adjusted cost materially offset management in a business, transactional in margin stable XX% particularly reported X.X% EBITDA EBITDA mitigation reasonably with consulting point outperformed actions cost XX.X% service Including lines point decline and with all but drove EMEA, lower year Asia-Pacific an basis XX.X% In earlier. significant Markets. by down decline sector. and benefit XXX transactional softness XXX compared meaningfully, in programs, from due revenue the a

profitability a relative the Markets with concentrated mitigation government and to in action. The adjusted underperformance in government margin Capital and excluding largely programs. cost stability was earlier. XXX including net compared relief Asia-Pacific basis benefit Greater primarily XX.X% was The point China Our EBITDA due a relief from XX.X% ongoing was year Japan

grew to LaSalle. lower LaSalle's offset to fees. fees was fees Higher of Advisory are Turning X%. which REIT mostly tied X%. revenue Fee approximately offering quarter transaction Japanese incentive and a revenue comprised down XX% annuity-like this fee secondary

fees be driven level as in sequentially We publicly incentive would earnings third fourth Japan. quarter, AUM $X million in at about considerably quarter in the Equity than totaled our $XX were by billion. level a lower of in up co-investment expect fourth XXXX. a similar which the earned $X the end quarter REIT traded billion mostly quarter LaSalle's

mitigation actions. are we transactional on of the $XXX client clear our businesses to XXXX we Separately, Changes cost million about first savings. over costs were of our non-permanent savings needed through third represent accelerate realized recover. return volumes comment annualized management these Roughly I'll needs how recovery continued structure. will as particularly expense result made about about cost in cost over Year-to-date delivered of taken thinking $XXX non-permanent future periods $XXX of relief. in that pace actions Now million we from from focus in and savings non-permanent it savings the and $XX in million business October, have nine quarter. cost including the fixed to These government our over uncertainty management certain months that in million likely actions half of

our efficiency. process are operating part an Our to improve ongoing actions cost of

including times down capacity at our the at the of to process to are liquidity revolver. million and sequential XX% ahead to ended leverage one long-term deliver billion X.X available with platform continue modest nearly billion technology and below $XXX and to our acquisition, September, of will June and CapEx drove $X.XX levels to Pivoting impede prior us cash not $XXX balance debt, our just was potential. had exceptional sheet. our $X.X quarter allow We of net of X.X leveraging our in to investment the We and approximately confident combined value growth reduction these a the initial of times and million. quarter spending from million which At improvement $XXX improvements expectation. clients earnings on end our end of The HFF actions

shareholders. are invest long-term We growth well profitable positioned which while to in to also generate strategies, cash returning

Looking benefit efforts the ahead, the platform that long-term are evolution of our and their decisions the share pandemic go-forward estate our clients' of continuous and confident market much our our global of from will clients, real position to needs on we and industry. depend enhance secular evolving strategy capture refine JLL and differentiated tailwinds on Long-term, investments. fulfill growth to the

such, generate our years we in to believe further Christian to value beyond As continue on Back and the XXXX target focused significant to stakeholder achieving remarks. remain we positioned cash free and ahead. for well flow are

Karen. you, Thank

slow caution leading look the the operating we be in in rest to and due fiscal previous the comparison. backdrop a relatively of the forecasting stimulus experienced sharp quarter on expect third growth a with we is environment As second unwinding year, the year-over-year combination rebound quarter the in of compared prolonged quarter to realizing the expected from quarters to a a global GDP With ongoing the recovery to consistent fourth that recovery difficulty more pandemic, and to period. to

Commercial space office be de-densification communication space. hybrid valuable class offset culture. their upon transaction-based and our to for reallocation specifically see higher-margin growth. I'd the of service work face latest and place remains a investors they to office, like lines are where a determining work. of a significant that beneficiary opportunities job estate of empowerment regarding want have we collaboration, transformational the the to by continued view Expanding industry office. keenly which of increasing this, future for work commercial environment of normal, disproportionate greater that to one believe to real as sustained long-term largely work remote position which office headwinds, that of the as the This enable expect allocations the how would will the in of we fundamentals the capital hybrid creation, creation to our a combination real rising the impact sense transition a We asset very a regard of continue profitability. and With aware minute a a in future has and the employees of and new thoughts provide will estate to take on they

our As a I to key are few driver stated look there it continue as different a performance regardless and ways, collective as guide In office global quarter our and third the providing our that can testament evolution of in specifically to vital may of value to of have of this world-class on our These the work second conditions. corporations scale. the a clients summation, utilized be quarter and dedicated advice clients solid market JLL the JLL's corporate a strengthen solutions proposition space commitment is call, will employees new while to culture. changes future, through

support demonstrate the the business delivering strength achieving that succeed real trends in Q&A ability shaping regardless diversified commercial geographies, long-term transact growth. results process. pandemic, anticipated business Our goal ability model, across the in of on future not of to the our to and a remain very long-term growth lines only sustainable to of the the estate robust from better explain of asset please classes. We exposure confident Operator, I'm but the macro estate capitalize positioned real world. circumstances to our JLL's recovery and our well and both for

[Operator with Instructions] line from Your Paolone Anthony question JPMorgan. first the comes of

is line open. Your

sight come should off? and dollars particularly part you, Like -- back, I that cost about question a those is do line Thank like Okay. of guess? we think on that My with the hi, on rolling the it. have of when you government first is How everybody. savings,

Hi, Tony. Yeah. morning. Good

the that will we quarter, to we estimate As savings. to be XX% we significant portion as amount third we in to expect a look our don't expectations approximately expense future quarter fourth government be of relief, the look the of us. around And available our at

just talk was the a remaining can how understand then, savings, that just in about come costs quickly us those $XXX of And million helping you in non-permanent of bit some what back. Okay. can

that like is little has just was action? T&E environment? stuff So, specifically this color a there. bit to in naturally had maybe it that that come down Or more you Or

Sure.

both fixed from third -- break benefits the decisions on that non-permanent in fixed XX% the -- and expense category, relief, OAL from from down and XX% government million for and variable. it's $XXX the quarter roughly in to that So, compensation XX% breaks

you comparable would looking seasonally -- think Okay. this quarter. the think And talked just have then, quarter line Do volume third more up. sequentially top about and year? typically quarter I see is you we fourth to going improving -- margins the fourth But go about should pretty margins your

No.

second So cautiously the and in our top quarter watch impact lockdowns revenues, thinking there and day hearing control quarter. remain pipelines of end optimistic. yes, different actions some third every But government from saw We seasonal revenue out line. the on to news so definitely increasing end there's we're it the through story, the the to relates an environment, virus, bad to taken the as the to our to we additional definitely area so current of

As to and to those. expenses, there environment. business in pull can manage what's we million flex $XXX relates to are non-permanent to it the going Within savings, different on of that carefully continue the going we're levers in response

away, to the and we'll remaining fact of relief do through we permanent carefully. of government some being so, And we manage that bucket will going that coming continue quite that savings mindful the our have

then talk just Okay. for back me. pre-HFF about or last Leverage is in you for down to M&A appetite levels. And general? your investing Can question

deliver speaking. Hi. we determined shareholders. really are value to Sure. Listen, our It's to Christian

the and opportunities of capital are increasing M&A allocation. cautiously evaluating quite at opportunities them different are we for the so And is we our significantly have moment. the one

haven't for money we seen will our worth would anything so continue it. stay was shareholders' very on. to which And we time think close the being, But we to spending

Okay. Thank you.

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

is line Your open.

my Good ask for I thanks couple taking the to more wanted questions a efforts. of questions. cost and on permanent mitigation morning

believe I although call, you it. cost don't You talked about quantified efforts last

quarter? much there second, have ago? missed did way thought that. what to more million if relative $XXX I a third the then of up actually reduction, in is And cost annualized to the an mitigation Apologies how you that of fixed permanent much on months the few frame you how a out stepped cost impact efforts First,

Sure.

year-to-date that October. – annual So savings actions was $XXX through million that taken we on we based referenced did

And so in of did a days. those XX number last occur the actions

As the much approximately quarter that results, of actually it's total. third how it to of XX% the relates flowed through

XX%?

X-X. Yes. XX%

Okay. ask Got appreciate it Is really about factors then the Leasing want And Got the Capital driven really more that. Markets I behind on up that improvement. pipeline this and it. by it. detail to is far multifamily? stabilization the industrial so sector? areas the have potential office weaker year like it well more held areas and by Or the driven in the like being

there I both. well, some But mean it's classes coming the the think we mostly call asset but obviously, obviously have alternative asset I side. which logistics from have classes are really also holding up some would we seen on we also what deals appetite. side, where talk core mostly stated when which real super have waiting about offices strong we of is in there overhang to is capital be invested. mean as a our buildings, we calls, strong on I previous the is

actually strong when which assets those are with very so very you And have – a are covenant, trading. stable assets,

notably few next year? pessimistic more in just too gauge of potential transaction on broadly, either, are pieces one there it it. I And now? the XXXX. I right last or many for Or when optimistic become areas then looking look But of moving know the last unknowns it into lot to activity at are me, have Got you months recovery and over Okay. there a you guess uncertainty a

and world. kind end again which – was second That that of we the for the the we a that way year to have the parts year need of for fact to in year. range what climate But clear least wave treating to And of now vaccine we infected coming well go that changing back. think we we normality At would next closer again for is have don't have day this wave of probably the back. view on way. in a and need in especially, our getting second our this expected. any XXXX is I into people more and was is the call are a before summer changed But expect we Europe has and something until that northern didn't U.S. at expectation that would of notable

very, said, I Both get have kind estate those real corporate appetite investors think, estate environment very of for into allows will more a normality. as trends just a very appetite real outsourcing. the we of be for to we the have strong there once I strong of and pandemic

it and optimistic be are as weather So long as we will will there. we the storm reasonably

I color. Great. the appreciate

Your with next KBW. Rahmani Jade from question comes

line Your is open.

you much. very you Thank appreciate my questions. I taking are

adjusted and CBREs. Something I look CBRE's business results is quarter, you JLL savings third a comparison when And higher think you get company's investors, million the $XXX between, out a lot in scale stripping of the from and the at we margins? geographic non-permanent JLL's or you compare its its footprint? to EBITDA margin What do think Do Do explains, mix? think CBRE.

are there on, JLL on focused you comparisons. those to CBRE. Well. Actually, much make and Jade we But, focused lesser pretty are

that. appreciate I Okay.

terms severance costs? from of of helpful. reduction is questions permanent getting much the operating so some and insight related a a some have been administrative shareholders, How also lot of reductions In would largest cost versus fixed in be your

headcount. due in our Yeah. to The majority reductions is

talk assumes you think words, cost permanent when number permanent reductions, about revenues. reductions -- I'm is so that flat In $XXX annual an sorry, much other I how in of outlook? million And unchanged the of about revenue that

we -- Yeah. really that's made We're the decision. not how

two to different around business, periods and ahead of relates which return in business, growth focused it our of efficiency we on looked time. as to One the also, looking improved orienting things. areas So really would as then we were for cost ahead,

And compensation. million only. benefits does to around variable salary so, the emphasize, to relates It not thing and that number incorporate $XXX that elements other that is I quoted, of

it how color cetera? their management lines business did on to, Capital Leasing, breaks Markets as et occupier which some various give amongst on CBRE you outsourcing, property Could out Thursday? call, the

we Sure. I'll the, do report. segments it four around

Americas was of the it XX% in APAC it of LaSalle. and and then in the remainder in So XX% EMEA,

lease lease think related of, Okay. they're average to you that I and clients the viewing occupiers work about, re-signings Business anywhere terms put that. lease willing hearing said office terms study A were to quarter around note in are that out are office from sign Harvard What would bigger indicative last picture on just of you question and and in generally Review about the your lease to. XX%, commenting gains Christian, there's down compression from office a policies how productivity transactions terms? office I sector that duration

an give Just was that wondering if you sector. could on update

Well, I over it off hand and it I to kick then, Karen.

trend a to. also looking their occupiers de-densification I the I pattern. in trend But are that place that offices smaller holding still strong to the concerned at the can determination And to very, rather occupiers stated inspirational, use question, back make the forward are estate outsourcing. a very also a what get more indicated of still something, occupiers focus which people large is is of which are something? want much is very But an see publicly, question, a than real lot in to offices many future, practice call already largely see when and the get pretty the of needing other our not to and do office last in think but We as only be our best add of we advisory the offices? safe And is into bit users in Karen, the us for around advice a of corporate you and area more moment around active. have obviously around. overall slightly they where

There pipeline. our a around U.S. leasing statistic second the that in quarter to for referred office Christian that discussion. was Yes. was That quoted you

the terms on was terms was was interesting pipeline it that approximately pretty it at X.X% lease reduction the And in to transpired look what early that number. in that to based third down actually in compared and on still quarter of pipeline XX% so

look we that when actually in the companies third a details big the larger of were term statistic. impacted there done so deals made commitments into by primarily and in quarter, that they larger And handful tech which longer duration were

overall. higher unfolds. higher watching over that of So But deals we're shorter in probability very frequency terms certainly new still terms a it how closely and renewals of seeing

able be specifically to Thank executives wondering to markets seeing? was provide a you. there business are who update they and leasing market And I as what the might various are lines from any

with joining answer us. best We we to can. call don't anyone questions any feel free as specifically we'll the and please ask But morning this have as

Yeah.

color private estate and as of managers in you If appetite. large what and just seeing provide markets specifically their on real the some to terms you're equity could asset side

increase I various participants update noted some there's any market but there? think if deal small have the could provide on that that front pipelines in you curious transaction very

large markets on we waiting side, noted of be capital sum have invested. to as a Well, earlier, the very capital I

before either and actually focused stronger to capital time those expect which business the more for is inspections may personal some and specific there who leasing the strong transactions happening have than the as to have we the long as in or because we counterintuitive capital a But that are of And market, up massive still super on and come For deals. This is be foreign deals earlier classes. on markets to domestically that waiting because sign this pandemic invested. ground is core being travel. a that expect business of will they -- asset the of capital continue kind the desire mostly overhang, back is people institutions impacting by but the be bit a

signed. analysis don't are On side, those much because months just incredibly granular takes stronger the XX they before supporting physical are outsourcing lot to They for. pipeline at we relatively that it, is make moment and are it being on is And was in Interestingly People believe very it. into looking the outsourcing. well-positioned than moment but where which believe just in organizations cautious big strong decisions that interaction. are lot of the of it a underlying not space that significantly is own ago, trend taking towards contracts our at a enough corporate

Thank you the for questions. taking

Sure.

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

Your open. line is

morning. good Hey,

would employees So you Americas? companies you EMEA off permanently Asia from as Is how of -- to work-from-home from component based home or some as the that and having regarding in working be in forward of home does big going would working expect approach, a hybrid whether regions? vary that's for

I think are Americas Asia much in in the that depends Europe. and very you where and

also private and working get difference the -- a a what of factors. space? they office. to working what They hours to office generally building? their degree, do a cars and to transportation are vibrancy, globe is ability to a their an between back Do clear up office? kind to public these high-rise different The their need private environment employees kind So, colleagues with do they to many, queue what parking true is, take to at take have? think their do the their to have exchange big Do Can I and the want many they the right next place of they enjoy hours. elevator the to but have get around have in office the

the of put in in it if now probably and you the from into fair people big Asia, maybe say, at other is where less have you but cities will And also if in crowded especially is to for also piece the mix, China opportunity and have home. that I Asia will look to environment. living Japan the the see places, home to work were very from not generalize reason their So you Australia, to that working

environment, have working spacious that York. from home, than from you work very different New a downtown creates when If apartment your are to home sharing you in abilities

factors so, And many into playing so that. there are

really arms that can office. see is working I in get have they were before. And as to and think, hybrid how the that something coming productive companies between safe what home is to will than stay, to hybrid continue their a model, say around we from to is they that

was asset then But that looking to is down business, faring was to that, real major FX. LaSalle think and business? how in attributable $X your commercial And managers? relative estate I do flows competitively underlying billion about Got And Thank about other AUM the commentary a you. question the you business that LaSalle are was year-over-year. valuations think how it. And

actually quarter in third billion identified business. the we Within the $X experienced Yes. was the our raised. continued release, into We've flows LaSalle capital that $X that billion

And so, the nonetheless. pace And where mentioned but experienced couple years, had in continuing we slower last remaining environment. still strong certain current quite significant and there dry interest real available than overall estate as LaSalle to strong are powder within are certainly it's really the in there's Christian And very capital a flows we've to it's the active earlier, in business, segments deploy. momentum of that

Thank you. Great.

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

Your line is open.

Thanks.

of here. talked your it some and coming about where market do from? One market think picking other out Just you you a folks? like couple is, with regards share of coming Is seems names share regional peers share, had some that's Where have smaller up Like the follow-ons. it to of? or is

big reasons coming for one still the picking companies is that, the us. Well, market likes most the are be tend the sector to doing companies those and share up from active of deals of advised tech by

helps. that so And

of this The market allows other environment. reason in disproportionate in for is clients us our that and a now that which current technology, we competitors heavily that, have share us some obviously and in seamlessly invested environment serve helps very win to our even to work-from-home

to basis regards for time think can fees? look now all you do you kind companies if then, to are And stream? in of money just to And think so, and cut question back and okay business. about do you we that use how either ahead, my look say, the point save If you helpful. the to to That's and protect where look going on we're there's ways revenue offsets is footprints that to Okay. a a going contract-by-contract step think other with outsourcing

business. listen the get in very have quickly is real times outsourcing employees the evolved the much an practice in, to you them. very about world industry hat of need where Reducing from important that the it the our is additional point retain world. estate corporate some depending increasing for Real in only such around was just for we best cost as are from And is cost that possible. on w are But where best often plus. real talent. part costs today's why there's very estate And factor having reducing in attract about practice very space, the in successes reducing a has that big and to it's best Well much as the relevant experience for about quality, is work industries less a

cost I'm going as is within now model. sorry, right occupiers to outsourcing everyone just real an the not evaluate add estate

wins. so also business benefit And from we'll first-generation new outsourcing

Okay.

companies anticipate to keep other levers kind that think this pandemic? growth look there's So out you of through -- something get is like there's don't to You and going? headwinds the as more that feel

moment. but We'll continue the showing Yes. watch at momentum. Right the now trends us carefully, are good to nothing

Thank you.

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

you Stay With no forward Karen operator. for the the speaking the participating morning. of you fourth we on and we close look further following entire today's again will you, safe On JLL quarter. Thank behalf healthy. questions and to call. call I thank team all this with

conference concludes today's call. This

now may disconnect. You