Jones Lang LaSalle (JLL) 6 May 242024 Q1 Earnings call transcript

Welcome to the Q1 2024 JLL Earnings Conference Call. My name is Benjamin, and I'll be your operator for today's call. [Operator Instructions] As a reminder, the conference is being recorded.

I will now turn the call over to Scott Ebinger, Head of Investor Relations. Scott, you may begin.

morning. good and you, Thank Welcome to Jones Conference for XXXX First LaSalle Incorporated. Quarter Lang Earnings Call the

Earlier we to slide the visit presentation remarks. this ir.jll.com. with materials Investor and along morning, These our Excel issued Relations our section file website. available intended are supplement of prepared release our on earnings Please a

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

a webcast our transcript call The As call today's this be will reminder, is website. live and conference of recording being recorded. to posted and

on annual statements. update and Actual filed and other differ made reports statements a Form the those XX, any may December about to as for results SEC. disclaims forward-looking results XXXX, report from forward-looking statements fiscal statements. in of revise company any undertaking our plans, future the in forward-looking XX-K factors expectations discussed result with year performance, The performance or Any are and publicly and objectives

for will remarks. our President Officer, Christian turn the Ulbrich, I Chief Executive call to and now over opening

our first you, Hello, welcome XXXX and Thank earnings call. Scott. quarter to

warrant. capital increase year investors' with The conditions I'm when deploy green shoots bidders started Transactional grow and both with America. revenue deals These We positive first Resilient in our in very growth. several were large some pleased highlighted willingness and meaningful market the into and results. quarter able encapsulate an by profit North to closing turn of momentum, to that

again. became expected capital rate several year later However, diminished, real quiet once cuts than markets and hope the for data interest inflation in came this estate much higher

in its consecutive terms year-over-year In of early moderated growth. according of pricing the quarter Pacific pace experienced Debt Americas liquidity. market while X% JLL decline both a totaled in real billion, second conditions of quarter, and Research. decline in quarter and investments EMEA the across Asia improved The first to estate $XXX the commercial global of XXXX,

estate real remains investors centers, shift for adapt over a and at pause rate Lender and industrial smaller confidence last it's sizes. assets as commercial a However, taken living in strongest especially for several markets the lenders outlook. weeks buried have interest and to the high-quality deal data

points continues basis of below where that to the well market lease XX leases activity. the vacancy to pre-pandemic with quarter, transactions to Turning quality, level. demand compared Globally, improved sustainable Pacific the in Activity X% quarter space XX% premium leasing space rate in to to the Asia mainly and is In continue space. increases to North less according by subdued Both the volumes first office limited office ticked continues require office to the experience. transaction to XX.X% JLL or saw leasing. XX% upgrade large number quarter, driven in that up but levels. year-over-year Research. available improves increased A still U.S. process occupiers as global in XXXX Europe, The by improved employee dampen America,

energy-efficient a pandemic. decision-making geopolitical of amount the the activity. quarter that first of occupiers uncertainty. amid Pacific, globally is leased and space On Asia declined supply industrial was side, limited through record to space continue Europe as activity following leasing manage constraining economic much the U.S., In the of and modern, slowed Across

that sustainable regions. rates integration remains all moderated rental fundamentals X demand for and sector automation. allows near-shoring Long-term the high-quality across average space in industrial supported technology for requirements and growth by Our strong, in

space Finally, in in prime sector, resilient, the remains supporting tourism for retail international in consumer locations. spending demand

JLL. to Turning

of as and actions clients Resilient revenue services in our driven suite both across base XX% revenue we were we the have provide by quarter workplace growth full and grew results platforms. property management Collectively, cost quarter taken. the management first leverage our the Our

performed Our economic business capital broader well, industry environment. and and markets the given leasing

past, JLL uniquely upcoming according to U.S. platform in eventual maturities Brokers noted #X commercial the as wave in Association. As has debt capitalize an to we the the positioned the the Mortgage of manage real increase estate equity leading We're origination on as debt and placement platform well transaction.

With that, on for will turn to the Karen, more now I quarter. who will detail provide the results over call our

Thank you, Christian.

in I January are the quarter late regarding few February. preview items note during presentation reporting on our performance, to our to fourth call that Before there in comment changes we effective

and Technologies and JLL income adjusted earnings First, equity calculations. LaSalle's excluded EBITDA net adjusted from been have

these operating included. be investment-related the other exclude our segments we earnings items, ventures to across from equity While continue

Second, the industry of and we with on has under change assets conforming management the LaSalle's our includes standard. capital now fees cash, earn. impact committed definition definition no This uncalled

the non-GAAP on the conclusion of from following letter comment we a report Third, measure in revenue. SEC February, no of the longer fee

contract costs the and impacts the primarily As and within segment MSRs. inclusive noncash are Markets such, of rates our business Work segment. discussion net gross Advisory associated revenue and Property of Management This line growth Dynamics the

our no fee the longer Given report adjusted we of in reported revenue financials, margins. specifically absence EBITDA

period provided discussed presentation how business Comparable we Separately, manage is on practice, no prior changes nor variances noted. have historical our new and are be the our Nearly currency, presentation. local cash included available can information ir.jll.com. of derived information consistent at in or on with unless is in year the against these otherwise prior from Importantly, we all our flow. or profitability impact previously

revenues. on return XX% of adjusted in our X% billion performance. our Resilient to $XXX and XXX% the were Now growth, the million continued of our of Transactional on on reductions, $X.X our the to benefits diluted increase with adjusted and cost increase strength $X.XX. drivers revenue in to to Revenue in to discussion growth The increased EBITDA primary revenues the EPS along a

Management revenues in quarter in was consistent the reflects of our in fourth first of the XX% investment and Management. Resilient was increase XXXX improving in quarter the year-over-year Property platform The a our well in our XXXX. as pace on soft increase continued first notable A since by diversity activity, revenue, Workplace efficiency. and and as led second The on Transactional strength focus with quarter operating the albeit increase sales the X% a comparison, drove growth increase

and leverage, so to long-term X% The actions to business return flow drive in to reduction to year-over-year opportunities our remain our to platform best near- a cost flow. in testament operating profitability and on capital our positioning and business X% focused continue a growth, We are cash shareholders. well capitalize decline on we invest The our cash initiatives profitability in management expenses free efficiency. increase as as to and in enhance a ongoing improvement in to led

to quarter. After mainly drove Management with review The Portfolio in performance U.S., X% by Markets Moving growth, offset to globally. soft deal most X% volumes industrial by growth by increasing the in quarter in X%, was drove though sector of returned a in other U.S. operating growth expansions transaction detailed Americas was which revenue growth. pass-through Management. the growth the Property Property quarters, the sector size driven and our revenue and leasing expenses revenue The X U.K. office segments, a incremental in beginning geographies the growth declines down the and Advisory. in more in as year on mid-single-digit than were the the prior led down. Increased

for in to demand which and large saw occupiers Still, business favorable large sustained the long-term deals, see more high-quality to continue materially leasing decisions average. deals assets both of are for pickup and mix. remain delay our leasing We continue below

March, with the leases. nature optimism to in of index pickup latter by global part Our X The X in improvement over generally which part the activity and by up, activity in new to gross hold starts XXXX limited contractual leasing stabilization industrial of leasing through business confidence late longer the quarters, XXXX office and space, OECD in leads pipeline sublease supported along in the term. continues provides for and from building

whether escalation in We management and geopolitical closely Advisory XX% EBITDA. metrics. The adjusted Markets increase the will tension recent business confidence and cost revenue impacts drove a watching growth actions be

year quarter, geopolitical even a Capital Revenue prolongs X% and investor quarter, our to decision-making. uncertainty rate economic, the as interest segment. Shifting in off muted outlook Markets though prior increased

Our with geographies, and the led grew revenue XX% in sales increased global and sales healthcare. in and global Revenue nearly by the accounted region each Asia Germany, JLL notably office Japan which all Investment than quarter, notably of segment by investment and favorably major referenced. their decline Pacific, to better Research. XX% asset nearly most activity, across X% sales for performed Christian classes, revenue, led compared a according volume revenue in market respective

Our and growth. predominantly capitalize as of in approximately for Debt years made digits. accounts Markets our driven increase well our adjusted grew revenue, investments an Sales, Advisory, in Capital past revenue over platform and actions, in which low U.S. reserve. several the cost rebound management segment on markets Investment a which capital as single loan EBITDA improvement more was Equity offset The by to us The than volumes. talent transaction multifamily we've loss position X/X

pipeline up. Looking client ahead, engagement compared with and Equity up Capital Advisory Investment last is Debt Sales, picked time and global year, has modestly the this Markets, momentum

We second continue the to anticipate higher in half of XXXX. growth rates

in particularly with volatility term. rates, impacting interest deal and elevated in investor on Christian and near closing as However, along outlook the tensions, to for rates, sentiment weigh and timing the geopolitical described, are continue

wins Workplace decline XX% Management was expansion mandate X% the as revenue Moving further pass-through XX% up. Project and revenue were fees global led increase revenue next flat. as Within growth to Management, in XXXX the Work drove client costs Dynamics. lower management a in ramped by

and moderated global of services the their Dynamics opportunity, growth, primarily the losses management. growth was segment's the sustainability market year Tetris in EBITDA new revenue the coming Work addition, and softer increase contract and well-positioned In demand adjusted us years. we ongoing give contracts. for the profit has the Overall, activity last our vast platform trajectory confidence attributable The in XXXX over cost absence in of to leasing project noted revenue

contract half pace the Management more momentum focused sales Management of few XXXX, and XXXX renewal We continues wins securing to mandates. rates. solid solid a support first though see past the on additional to new continue large remain trends likely The expansion strong through will Project alongside Workplace quarters. moderate than at

and However, environment economic backdrop the soft slower growth rates. XXXX leasing dampen may late near-term

revenue. primary the as in the XXXX XX% decline Technologies. as of client half JLL in Turning Lower bookings in second the of well to decisions were drivers delays

software We of Technologies strong continue JLL see retention to revenue. rates

expenses However, the growth expenses incremental revenue. and to approach, lower the the adjusted to change and XXXX, in part operating go-to-market our in with reducing management of decisions efficiency associated client in EBITDA, JLL latter certain drove in which of combination than delays in the our cost of primarily likely an gains the consisted is sales marketing near offset in The pressure Technologies' improvement reduction actions more term. and which continue

appropriate Technologies' an within drive strike between to The adversely aim we to revenue progressing linear, carried investing and be combination sustain to to accruals, balance the expenses, profitability profitability may including timing impact unlikely is JLL pressures path and the segment. interest term. in near the the While growth of of

in which the advisory over was our muted within The to attributable declines lower structural valuation also attributable management compensation under accruals. Now than in the few as from X% Revenue the We Europe to by quarter. in subdued raising the well assets foreign under our year offset assets Capital Absent activity lower earlier, anticipate mix. lower be business a fees continue management valuation X% valuation the in from quarter, fees from mostly the environment, in impact to exchange entirely quarter under past management incentive cost LaSalle. quarters. and reduction. fees as changes the deployment and evolving adjusted of the movements, declines were ongoing shows largely assets LaSalle's in the transaction next EBITDA currency pressure actions in revenue, in to decline our lower over primarily to and benefits declined market on year management

free The of which and million outflow in earnings $XXX capital cash offset working free to flow, net quarter. modest Turning was more drove in the in some flow. a headwinds cash growth a growth-related than improvement X%

compensation incentive a quarter high seasonally reminder, we're performance. conversion our primarily annual capital is very the priority, slower first a typically Cash efficiency. working flow stem coinciding with and As focused payments, on outflow from business

totaled Liquidity first to the allocation. undrawn facility of end capacity. of including billion credit billion $X.X the Shifting our and at balance sheet capital quarter, $X.X

the leverage net reported down a earlier by X.Xx debt, months. net XX, offset year cash trailing due to March X.Xx, lower in of partially over reduction earnings XX was As a from

high for typically nature first The given the flows. leverage our quarter marks of the point cash seasonal

X medium leverage range. middle term, towards Over we manage the the intend to business of the to Xx our

Considering M&A. shares towards during a targeted augmented capital $XX the allocation, at capital macro million and near-term deployed we at our expected dilution. and least will seasonality selectively share to broader Organic pace quarter. we year current of volatility, priority offset remains in the flow, of geopolitical compensation leverage with stock that growth business and quarter, repurchased the continue anticipate a During initiatives cash top for repurchases reinvestment full

of amount against macroeconomic the on the performance business, generation, weigh out, set. further and our repurchases share particularly be Looking opportunity investment will of cash also outlook will broader the our dependent

full our year latter economic of risks Regarding cautiously volatility elevated activity, optimistic outlook, the outlook. in lines to indicators. transaction to a in part solid. in in given predict difficult in continues Resilient the considering we're XXXX our and for geopolitical year. pickup trends competently mixed financial the Still, The pipeline lines the our sustained the interest rate timing remained be Growth business a collectively Transactional of more business recovery activity

our growth opportunities We drive leverage. capture continue both to to operating future invest scale platform and and

While we presentation to year an shifted target previously with XXXX adjusted range. our a conform to we target format, provided full have range, EBITDA margin dollar new

For is with consistent full adjusted our range previously $XXX targeting EBITDA XXXX, of an range. billion, million year $X.XX to which communicated we're

are now aligning and Our with cost billion billion respectively. contract our and which revenue $XX new $XX to consist targets, presentation gross billion, of billion format, $XX to midterm ranges, again, $XX

adjusted range $X.X $X.X As EBITDA billion. well an billion as to of

many us pace The Importantly, depend prospects initiatives communicated have transactional drive these the of and midterm timing the give resiliency ranges achieve with efficiency these frame undertaken of in and consistent long-term our part markets. recovery we will confidence The growth previously strategic to on value the are in to targets. and in the business. our targets time creation

you. to back Christian,

Karen. you, Thank

where to year. out adapt Let According of XXXX U.K. unique for rates. we been Pricing this declined market to beginning Intensity to leasing, space, early type based to and class expect The to increase U.S., the in In as for sustainable XX% for and and, stabilize assets XX% global sectors. proprietary higher-for-longer asset will on estate to due sectors to of an is space best environment. in across and number has have Real in Index, remains investment there me strongest from JLL's rental prices the very Australia, look the interest growing a with demand a levels. Bid to most continue characteristics bidders later peak a drive of attractive living dynamic returns. the high-quality industrial shortage an its this strong rate

deliver In today's profitability. changing client world, we have managing proven our effectively outcomes ability superior to while

brings platform model more JLL unique the space, of sell One commercial the products capabilities Our same services and us to allowing to the together clients. across our estate real

focused as increase and in our our trends Our remain business data especially and margins, also leading into as provide lines. productivity. We differentiate with tools offering our expanding our market our clients technology helping to insights on Resilient while well growing business also

capabilities, environment, very XXXX and targeted JLL add of Despite organically challenging ongoing offerings, both operating an our product the selectively and bright, are As prospects we for M&A. and people we're beyond. we're optimistic service will strengthening and and through

always their commitment Before thank like I clients. would our close, our I for serving to foremost colleagues to

Operator, please Q&A explain process. the

And [Operator question comes first Sheldon with of the Instructions] Stephen line William from Blair. your

First signs like in there one It and Markets. here, alike Capital seems wanted I are to just ask. lease

this year? potentially talent So Karen, on had capacity cetera. if positive how et you commentary some there are there later think about your things improve thinking you I levels,

your ahead think continue this So of Are And pickup still a high about producer there as planning detail How rest the of level? some investing levels at in are there? you broader activity? there? have can you year, investing we maybe changed a to give you maybe more much capacity very

speaking. Stephen, it's notable reduced Listen, capacity producer at any haven't kind our of Christian we number.

the we enough so to second revenues if And market's capacity part have through higher the this of returning more drive than year. our in books

room we for number. using so environment our this are relatively believe that -- We within and axed, But is there's a be brokers market where few a current there, more teams. small capacity to

of nice then level drag out And helped support just maybe moving of the Tetris contract. I this step-up Can had have the Dynamics, And cost higher containment efforts think you profit maybe kind there. pieces how from parse some Work in you maybe a on a quarter. the help a profit just in there?

profit. step-up Just Work any detail on Dynamics the in

just out Yes. a We contract. year, were calling that, we last had drag Tetris the on

calls, we overall, we So year-over-year, taking had this then to obviously that people's noted to And we're that attentions, earnings turn bring in as this and didn't wins previous year. the year, are live year. numbers last back And that significant benefiting just we our from we productivity which that all expansion lines, that, but of top increase quarter. the Dynamics. around to within this in the combination constantly service And in top and business also efforts are margin on line resulted more growth, has our within coming trying Work productivity of this

from Jefferies. comes question Peter Abramowitz next Your line the with of

So full reporting adjusted know you with switching year. you the EBITDA I gave change, to the number you're for now -- the

Just put wondering a any reporting. guess, you outlook as we or I have what the if think new from to a basis revenue perspective with expect total margin you around, of sort it of brackets on

on our dollars But going equivalent dollar are we Yes. on whether adjusted what in-year targets, target communicated targets an midterm I it's basis. targets Peter, talking target to basis our previously Karen. or EBITDA will EBITDA communicated a instead this to margin that margin now basis. be for the say that We're an the we is about of adjusted

same goes you XX.X% approach. EBITDA recall, to That's in then XX.X% for XXXX, billion targets targets the million our $XXX if So midterm margin. to to now converted $X.XX been adjusted were previously our a and XXXX for

the presentation. called in leasing Was you talk it in to of And looking if of tenants Got of kind Just mainly get of wondering that. about kind market? down in about provide strength space. -- up I been the ask possible that strictly any wanted further that of kind signs out U.S. Class almost then could Have could to context and there your trade A sort guess you life I the kind office it. you is best trophy segment? some around and of more of Okay. mentioned you

Sure.

to space. broadly. So you're to by of increase highest in incremental generally quality, in we're available, signs that rents led the continuing and space best office being continuing improvement see That's seeing

One other the And square over deals, the the around are but categorize compared large which deals thing as XXX,XXX we averages. we in that's lease XX% Right closely those monitor depressed that level. below almost now, it's as still the pre-pandemic is feet to activity well, returning builds still U.S. market to

is not all back. ticking still that So yet up, but way the

other leasing, we requirements then XX% on importantly, did fall. to increase tenant we're of an in pre-pandemic and new couple continuing sublease is rate last And vacancy seeing while comments quarter, are A the We're topic. within as those on approximately levels. of this

seeing backfill so additions both and and incurring, Bay U.S. And we're Area also particularly York. decreasing the in in in activity new the New notable then

comes Citigroup. with Your Griffin Michael next from question of line the

it, to of we mean into you'd to for picking wanted of being to those base by go Should financial in to the back able the adjusted sort those XXXX, come midterm the, that I conversely, EBITDA pushed the with Karen. cuts interpret back midterm consistent time rent really you reach XXXX-or-so frame? recovery is dollar transaction up. out the targets XXXX? further those that activity that is year, And hit in as Obviously, would case call half that targets if highlighted, amounts

as the at to midterm the of committing to terms year in specific of transpires calendar still this transactional markets look At recovery those targets. the stage, before of we're remainder achieve year Yes. want a how those. really the We categorizing

as of to having accelerated it is, revenue our in certainly, things the One are the the we very relates adjusted midterm relative targets we're to saying on trends. growth focused EBITDA

line. the we're recovery And shape of something on, in that's regardless the focused top so the of very

the this to in a going for cadence it should I think wanted improved mind forward? Great. do But to percentage cash maybe about conversion on relative for And flow quarter just last year? we year. then time amount flow. have free And cash the you ask this Obviously, free how

Yes.

year. So of the let of reminder bit talk major first, for quarter, about cash drivers me in free just the about the outlook talk and I'll flow a little

business an from some last That better we year. slightly partially payables. that our in So to on was headwinds of along of was some were offset outflow million, timing earnings. Management Workplace cash the primarily with which by And working to particularly the grew, was $XXX outflow $XXX due business, improvement capital the then million as

think earnings the level. of the basis will our drivers about working a certainly those rest business But the key outcomes. year, also earnings on we for impact reflective the full of importantly, mix year As overall be the capital will

growing Workplace business have then tailwinds Management some to you'll in Markets like growth that lines being So the from Capital a extent and have strongly. the you'll headwind, it's U.S.

of continuing A flow, things about collect we're to to ensure other couple cash call ability receivables we out our remains important. think very as our to the free timely

to continue last very this we out of we're quarter want payments on compared expect call associated focused -- timing to individual And I will also would that. year. the with basis on tax lumpiness that cash some we an for to So year be

materialize see may So as year you progresses. the that

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

Dynamics. Work on Just

change in You've the presentation. got

talked that then where more way to back look maybe a thinking Can about as just put in give the drags for some we sense that and to revenue? and You also us years, revenue of maybe about organic the as some Management business just terms together wins. of be kind of growth of you likely all few I of Project is to old next mean, ahead it the to

the have growth all seen all, is you organic. Well, first of

done pace. a M&A continued and year business last to nice Workplace haven't very some recently. Management significant as said, had has we at win And has any the wins We

as show has for longer what out That back And continue business to may term. we been good quarter, so have may that to in called digit. last not we the to growth, but fall expect be double that the growth

in the something overall. aspiring high-single digit are We

that Our leasing correlates slower and had activity much quarter, a Project the very Management on front. business the

delay leasing X to that picks business show so the growth again. of to would rates stronger And X expect as up quarters, we

so of we over very Dynamics years. business Work next stated previous overall, about we And optimistic the in calls, as have are our couple

Work the overall, a see Beside single-digit that flow, fair? still ebb is you Management as high Is Dynamics Project and grower. the idea that

Yes. I so has mean every quarter made little differences.

As strong had this overall, this our term, the quarter, But Management a you on That's very saw growth we business. see, average, high-single you digit. in should Workplace from longer here. our aspiration

in EBITDA see then pressure just also, can terms the Because should from And it like. XQ in bit pretty sort in a XQ progression to full where show Okay. XQ? of came just talk the downside, we strong, upside you guidance points, the that year, of for seemed on guidance? about And anticipate the or you are either

I -- I will then Karen kick off add. might it and

Listen, the side. main uncertainty is coming from the Transactional

forecast. to that the the back kind Dynamics We it as an business. just that those is until underlying see predict business hard so Transactional interest whether well are deal unusual as movements from between getting the Markets interest Property some deal, especially harder annuity-type Work volume. daily of to not on But the pretty rate or bad are assets a and that's focus And rate people is a good is and normality, through businesses, developments Capital business. the and to Management forecasting our comfortable with business We Transactional much our correlation

our the on the continues muted, this help it get range later market's us end. Karen, Markets, will the to as year be if performance the that do to of anything? and in the want Capital back was you So this especially add upper year, the within the the performance, market more quarter, very to is side, ambitious coming overall to end so muted was then it to to Transactional upper market own that the notwithstanding first get

only seasonality and, add this at Yes. don't quarters. that expect we've as deviation over is at the course had. seasonality this from we that, typically from any see material anticipate stage, would progresses, the The I And have to thing of stage, similar trends year where individual we

line of UBS Alex question with next the Your Financial. comes from Kramm

previous you is Maybe into more. rate interest the bit comment slowly a little a the adjusting just higher environment. that marketplace to Christian, dial this question made to

So it outlined any and guidance perform you even think stabilize year, coming Or did currently? are cuts? if -- markets stay are you've rate you needed? this think rates back imply rate just cuts you can where for you think to the like they does Do do

Yes. We didn't quickly rates anticipate market interest coming were that did. broader as down so the

So the cautious side. more we were on

no And the upper our cuts. need the would is helpful. the so what our more If to support range, for. own end our some Transactional and will end would us any as planning from rate was the But range question towards drive of if for then there upper support, side of we be doesn't deliver we planned

but the this, just X% I think mentioned for year. obviously, a don't side. on growth you maybe the Good. Then leasing Right.

should that I what you expected similar think mentioned -- what be picture last you quarter, you had than leasing XXXX. in a in

think single-digit obviously Do good kind like last gotten So way bit would is environment the of outlook range you to slowdown? better better? low the just think full which Or curious, the it, for you about with has you do year Didn't think imply flat sound do is the a year? it. little a of think a

a early year, think I We're is from quarter number first the you perspective. and the in quoted so Yes.

that continue also And and but over expect the so continued to the course pickup And softness year. the end in industrial, we growth of will in of office some to and return more we expect towards the growth we're stabilize seeing modest year.

rate. the So what will ultimate it growth is the pace acceleration is determine really of

confidence. the the we quarters of is pointing of to really last couple things keep One the of over level business

lag And X-quarter index globally the there's a overall index because been you look an of so confidence to and U.S. a business business confidence on volumes high X- or referencing at the of correlation, whether in we've kind for uptick the that OECD market recovering.

So came macro that happens April. a in lot we're April, the -- March, to of see uptick what there considering out headlines looking and negative again in was during

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

Do driven you brokers any look banks? you certain how could private private credit. manifest opportunity opportunity [indiscernible] companies retarget in And business? big in acquire pullback a see the comment or to on do the if that so, Would you Just the to credit, in relationships? you if on by in the key

is it of not traditional come be obviously for as in will continue lenders active to offers And been which a it opportunity that that as past. in. the likely I lot correct So the for this they foreseeable are is to the have think lenders case future, nontraditional very

to money pretty actually is question where coming are from. agnostic the We the

We have trying best all the the are the and to opportunities an overview excellent market the available which market. for in in players on clients, debt our arrange are

So kind of this tap market. our to into doesn't of normal business, it need is, M&A course that side on and for us, any

the In that's see you as gain terms area presenting opportunity where certain that business, banks -- GSE of Do market to pulling banks share? another multifamily are back.

-- in a demographics in be in has that past quite about are, in We business very, have to geographies, business already, asset much the lending would and the and market the a multifamily optimistic share to most to believe demonstrated grow. very be more because, that And resilient still very business resistant overall, helpful class. here. continue there's strong for environment we the room us that I

And so visible multifamily the the your lending lending I space in the are environment commercial think we than the going -- previous in to much space. more the back see in question, changes

The Technologies. do But Or the still JLL could scale. in trend was additional from your that you requires on surprising. that outlook? was was I just slowdown itself? finally, And different when that anticipated? somewhat profitability expect prior sales And reverse know

expense, it mentioned and going I will our took on in an that that the sales call and have quarter marketing actions earnings impact forward. we Well, third

have the That impact. quarter scales that the delayed first So then complemented part of kind also by what of complemented seen is kind Technology back you -- speed Solutions large several of decisions on implementations. in unfortunately, new by who our of clients was of some

year, on the last reasonably is we important putting But so SaaS that within again. we in profitability have maybe this expect above is and as X to we decided performed going quarters is pointed that more What growth. already would uncertain before importantly, Technologies more well, business shortage top the we we pickup for current line are X out that or note environment see JLL

is a go point, growth we market stronger of And the on to environment line look do overall then kind so that of then so, focused that least will overall are back us kind breakeven a on we And And line. we at once the situation marketing then would sales very we this bottom will again. to encourage market at the environment. expenses, stronger drive will business and in and top very, have which if

line [Operator your comes of next Instructions] question James. O'Shaughnessy Patrick the And from with Raymond

willing What sign are you cycle? of seeing guys leases in longer duration? the at average office terms more right companies to point Are lease now this in

the market. U.S. easiest around stats That's some give I'll office data to the that. get on

as it which the the was XXXX. was see -- The had for first So term for year. we we years, overall didn't what movement of from same average was X.X quarter, much last the all from weighted lease

If pre-pandemic total still on you basis. it's below go levels back, a

you weighted go term back X.X If years. lease average XXXX, was to

direct the weighted increased that of so of and if pulling overall example, lease years. activity the that at you actually the earlier, And I overall. we term. market at mentioned If continue down expect sublease give taking works term, the look that sublease average the instead an X.X I to weighted due through -- subleases that average people the space is I weighted direct to is average lease leasing some will leases, lease while the direct will look that's say -- that X.X term I

a difference. quite big So

your helpful. you -- changes you're business way? have That's communications in impacted it. managing internally? how the changes methodology And the any with have Got those reporting SEC, your Do guys financial about due in think to then still margins

No.

So hasn't we think how how manage it the business changed internally things. about or we

adjusted the margin along a in KPIs, we revenue on and of calculated, fee and EBITDA we use internally. So host statement. our the compensated, adjusted our metrics proxy EBITDA still still team other is in with both And margin part, that disclosed management

just that to in both these earnings release information to needed information And continue all is highlight do calculate we still of that. we'll provide. So to then of that our available

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

look JLL bunch. adopted, know the of follow-up such it's I thinking was that, had client But when not Tech. revenue a at I pretty line. a it where a But Engines it's big I when likely and recurring Building I just was a on down business. like

me don't a And on help basis. maybe know, think so I just and understand what go-forward about was to out with to that, happening how it there

revenue is revenue I products. as by our JLLT SaaS bucket Anthony, built mostly stated there, up just the

is in of some software and clients And X and call quarter another that stated. decision-making our new that. business, quarter the Building that this One Corrigo's our and stated third-party third-party last usually business, for delays we We we the Technology third from where marketing help declined implementing by assignments. had and Engines, significantly quite in service one Solutions for then sales them clients reasons teams, as reduced year, I software

has relatively been SaaS the this On that quarter. steady business,

of transactions. You mentioned building Engines. a Engines The new is Building and implementing owner often Building the Engines. Building to very owner changing, is connected is

the with hand, Engines. that on now markets into And brought that other very Building But an muted, so Australia. transactional in have implementation on has the we successful impact product Asia, relatively

to longer will medium are come that the bullish so And to numbers gross term, levels very to them we the back expect where be. we

Q&A for back conference our That now I Ulbrich concludes will the Christian to remarks. turn over session. closing

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

Thank Ladies all concludes you call. joining. that for and gentlemen, today's

disconnect. now may You