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JLL NYSE· Jones Lang LaSalle Incorporated
Earnings report Q4 2023

JLL's Revenue Shows Mixed Performance in Latest Quarter

Segments of revenue

In the latest quarter, JLL's revenue remained flat for the full year, with fee revenue decreasing by 11% compared to the prior year. Resilient businesses, including Property Management, Workplace Management, and JLL Technologies, showed growth of 5% for the full year. However, transaction-based businesses such as Investment Sales, Debt Advisory, and Leasing faced challenges due to a rapid increase in interest rates and negative economic sentiment.

Strengths

JLL's resilient businesses, particularly Property Management within Markets Advisory, grew by 11% in the latest quarter. Workplace Management within Work Dynamics also showed growth of 7%, while JLL Technologies experienced a significant increase of 16% in revenue. The growth in JLL Technologies was primarily driven by services and software solutions, largely from existing enterprise clients, as well as a modest increase from subscriptions.

Challenges

Transaction-based businesses, including Investment Sales, Debt Advisory, and Leasing, faced challenges in the latest quarter due to a rapid increase in interest rates and negative economic sentiment. These challenges were consistent with the performance starting in the second half of 2022.

Noteworthy

JLL Technologies reported equity losses of $177.0 million in the latest quarter, largely driven by fair value declines. This reflects the particularly challenging economic environment for venture capital companies. In contrast, equity earnings in the prior year were attributable to modest valuation increases across several investments.

Summary

JLL's latest quarter showed mixed performance in terms of revenue. While resilient businesses, such as Property Management, Workplace Management, and JLL Technologies, experienced growth, transaction-based businesses faced challenges due to a rapid increase in interest rates and negative economic sentiment. The growth in JLL Technologies was primarily driven by services and software solutions, largely from existing enterprise clients. However, JLL Technologies also reported significant equity losses in the latest quarter, reflecting the challenging economic environment for venture capital companies. Overall, JLL's revenue performance in the latest quarter highlights the contrasting performance of its different business segments.

Source documents

Form 10-K  filed on Feb 27, 2024
108 pages scanned

Reference data

Company financials Q4 revenue 5.88B
Analyst estimates Q4 EPS beat by 110.59%
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