JLL Reports Exceptional Second-Quarter 2021 Top and Bottom-Line Results

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  • JLL

Diluted earnings per share of $3.82, up from $0.29 last year; adjusted diluted earnings per share¹ of $4.20, up from $0.71

CHICAGO, Aug. 4, 2021 /PRNewswire/ -- Jones Lang LaSalle Incorporated (NYSE: JLL) today reported outstanding operating performance for the second quarter of 2021.

  • Consolidated revenue of $4.5 billion and fee revenue1 of $1.8 billion, substantial increases of 18% and 41%, respectively

  • Outstanding margin performance highlighted by

  • Share repurchases returned $100 million of capital to shareholders through July

"JLL delivered an exceptional second quarter led by a strong recovery in our transaction-based businesses," noted Christian Ulbrich, JLL CEO. "Continued investments in our platform, people and technology, coupled with financial discipline and strong operational execution, have been instrumental to our success. Given the strong momentum in the business, the successful integration of HFF and increased visibility into a post-pandemic future, we are increasing our 2021 Adjusted EBITDA margin target range to 16% to 19%."

Summary Financial Results

($ in millions, except per share data, "LC" = local currency)

Three months ended June 30,


Six months ended June 30,

2021


2020

% Change
in USD

% Change
in LC


2021


2020

% Change
in USD

% Change
in LC













Revenue

$

4,495.0



$

3,670.4


22

%

18

%


$

8,532.1



$

7,766.4


10

%

6

%

Revenue before reimbursements

2,507.5



1,828.5


37


32



4,637.1



4,061.5


14


10


Fee revenue1

1,816.9



1,244.9


46


41



3,259.6



2,750.1


19


15














Net income attributable to common shareholders

$

200.0



$

15.2


n.m.

n.m.


$

303.0



$

20.5


n.m.

n.m.

Adjusted net income attributable to common shareholders1

220.1



36.8


498

%

477

%


329.8



62.6


427

%

409

%













Diluted earnings per share

$

3.82



$

0.29


n.m.

n.m.


$

5.80



$

0.39


n.m.

n.m.

Adjusted diluted earnings per share1

4.20



0.71


492

%

476

%


6.31



1.20


426

%

409

%













Adjusted EBITDA1

$

332.4



$

103.3


222

%

215

%


$

522.5



$

198.9


163

%

158

%

Adjusted EBITDA, Real Estate Services

291.3



76.4


281


272



460.5



196.5


134


130


Adjusted EBITDA, LaSalle

41.1



26.8


53


51



62.0



2.4


n.m.

n.m.


(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release.

n.m.: not meaningful, represented by a percentage change of greater than 1,000%, favorably or unfavorably.

Consolidated Second-Quarter 2021 Performance Highlights:

Consolidated


($ in millions, "LC" = local currency)

Three Months Ended June 30,


%
Change
in USD


%
Change
in LC


Six Months Ended June 30,


%
Change in
USD


%
Change
in LC

2021


2020




2021


2020



Leasing

$

610.9



$

358.6



70

%


67

%


$

1,060.4



$

851.0



25

%


22

%

Capital Markets

448.4



214.8



109



102



768.8



557.1



38



34


Property & Facility Management

2,466.6



2,275.2



8



4



4,880.6



4,641.0



5



2


Project & Development Services

617.7



536.8



15



10



1,169.5



1,141.2



2



(2)


Advisory, Consulting and Other

235.6



185.1



27



20



445.8



371.3



20



14


Real Estate Services ("RES") revenue

$

4,379.2



$

3,570.5



23

%


18

%


$

8,325.1



$

7,561.6



10

%


7

%

LaSalle

115.8



99.9



16



12



207.0



204.8



1



(2)


Total revenue

$

4,495.0



$

3,670.4



22

%


18

%


$

8,532.1



$

7,766.4



10

%


6

%

Reimbursements

(1,987.5)



(1,841.9)



8



5



(3,895.0)



(3,704.9)



5



2


Revenue before reimbursements

$

2,507.5



$

1,828.5



37

%


32

%


$

4,637.1



$

4,061.5



14

%


10

%

Gross contract costs1

(684.9)



(575.0)



19



12



(1,362.1)



(1,304.4)



4



(1)


Net non-cash MSR and mortgage banking
derivative activity

(5.7)



(8.6)



(34)



(33)



(15.4)



(7.0)



120



120


Total fee revenue1

$

1,816.9



$

1,244.9



46

%


41

%


$

3,259.6



$

2,750.1



19

%


15

%

Leasing

592.0



343.8



72



69



1,021.5



819.0



25



23


Capital Markets

432.5



199.4



117



110



737.8



533.5



38



34


Property & Facility Management

317.8



287.9



10



5



622.5



567.8



10



5


Project & Development Services

191.1



178.6



7



2



361.2



366.9



(2)



(5)


Advisory, Consulting and Other

175.0



140.2



25



17



322.8



269.3



20



13


RES fee revenue

1,708.4



1,149.9



49



43



...

3,065.8



2,556.5



20



16


LaSalle

108.5



95.0



14



10



193.8



193.6





(3)


Operating income

$

224.3



...

$

10.8



n.m.


n.m.


$

305.0



$

75.4



305

%


295

%

Equity earnings (losses)

$

40.8



$

14.7



178

%


178

%


$

89.3



$

(13.6)



757

%


753

%

Adjusted EBITDA1

$

332.4



$

103.3



222

%


215

%


$

522.5



$

198.9



163

%


158

%

n.m. - not meaningful as represented by a percentage change of greater than 1,000%, favorably or unfavorably.









(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Consolidated Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

The company achieved consolidated RES revenue and fee revenue increases of 18% and 43%, respectively. Growth was broad-based across all service lines, led by Leasing and Capital Markets, and in all geographic segments. This follows a prior-year quarter that was meaningfully impacted by the COVID-19 pandemic (the "pandemic"). Organic RES fee revenue this quarter was consistent with second-quarter 2019, reflecting the strong rebound in transaction-based service lines. RES fee revenue growth for the quarter was led by Americas, which contributed 75% of the growth on a local currency basis, followed by EMEA (14%) and Asia Pacific (11%).

LaSalle's double-digit revenue growth was led by advisory fees, primarily reflecting continued growth of open-end investment vehicles and recent valuation increases.

Refer to segment performance highlights for additional detail.

Net income attributable to common shareholders was $200.0 million, compared with $15.2 million in the prior-year quarter, and Adjusted EBITDA was $332.4 million, compared with $103.3 million last year. Diluted earnings per share were $3.82, up from $0.29 in 2020; adjusted diluted earnings per share were $4.20, compared with $0.71 last year.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 18.3% in USD (18.5% in local currency), compared with 8.3% in 2020. Margin expansion was primarily driven by (i) a significant increase in revenue, particularly from higher margin transaction-based service lines and (ii) higher equity earnings, including $16.2 million from valuation increases to JLL Technologies' investments, reflecting continued progress in the strategy to invest in early-stage proptech companies (refer to the equity earnings discussion in the Americas segment highlights for additional detail), and an incremental $12.0 million from LaSalle. This expansion was partially offset by the impact of temporary cost savings in 2020, including the benefit from government relief programs.

Net income attributable to common shareholders was $303.0 million for the six months ended June 30, 2021, compared with $20.5 million last year, and Adjusted EBITDA was $522.5 million, compared with $198.9 million in 2020. Diluted earnings per share were $5.80 for the six months ended June 30, 2021, up from $0.39 in 2020; adjusted diluted earnings per share were $6.31, compared with $1.20 last year.

Share Repurchases, Balance Sheet and Cash Flows:

In the second quarter of 2021, the company repurchased 200,000 shares for $41.1 million. Through July, approximately 484,100 shares have been repurchased in 2021, returning $100.2 million to shareholders.

Total net debt was $648.5 million as of June 30, 2021, representing a decrease of $21.7 million from March 31, 2021, and a decrease of $421.2 million from June 30, 2020.

Cash used in operating activities was $246.1 million for the first half of 2021, compared with $44.7 million used in the prior year. The increase in cash used was primarily due to a significant increase in trade receivables, reflecting higher year-over-year Q2 revenue. This was partially offset by less incentive compensation paid in 2021 compared with 2020, reflecting company performance in 2020 compared with 2019, as well as higher cash provided by earnings.

Americas Second-Quarter 2021 Performance Highlights:

Americas Real Estate Services


($ in millions, "LC" = local currency)

Three Months Ended June 30,


%
Change
in USD


%
Change

in LC


Six Months Ended June 30,


%
Change
in USD


%
Change
in LC

2021


2020




2021


2020



Revenue

$

2,701.5



$

2,229.0



21

%


20

%


$

5,145.4



$

4,752.1



8

%


8

%

Reimbursements

(1,412.3)



(1,345.0)



5



4



(2,798.0)



(2,738.5)



2



2


Revenue before reimbursements

$

1,289.2



$

884.0



46

%


45

%


$

2,347.4



$

2,013.6



17

%


16

%

Gross contract costs1

(220.3)



(192.3)



15



13



(436.1)



(405.1)



8



7


Net non-cash MSR and mortgage banking
derivative activity

(5.7)



(8.6)



(34)



(33)



(15.4)



(7.0)



120



120


Fee revenue1

$

1,063.2



$

683.1



56

%


55

%


$

1,895.9



$

1,601.5



18

%


18

%

Leasing

473.1



267.0



77



76



824.5



672.6



23



22


Capital Markets

289.1



131.5



120



119



495.7



378.1



31



31


Property & Facility Management

154.2



147.3



5



4



300.7



276.0



9



9


Project & Development Services

92.5



91.1



2



1



173.8



184.5



(6)



(6)


Advisory, Consulting and Other

54.3



46.2



18



17



101.2



90.3



12



12


Equity earnings

$

16.5



$

2.9



469

%


456

%


$

51.0



$

15.6



227

%


226

%

Segment income

$

206.6



$

42.5



386

%


382

%


$

351.6



$

137.1



156

%


155

%

Adjusted EBITDA1

$

235.9



$

74.0



219

%


217

%


$

404.9



$

195.3



107

%


107

%

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Americas Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Revenue and fee revenue expansion in the Americas was driven by exceptional performance in transaction-based service lines, with organic fee revenue reaching pre-pandemic levels. The growth in Leasing was largely attributable to notably higher transaction volume in the U.S. with strength in office, industrial and retail sectors, despite lower average transaction size and shorter average lease/renewal terms compared with before the pandemic. The over 100% growth in Capital Markets reflected a rebound in deal activity across investment sales, debt advisory and equity advisory, as well as a double-digit increase in servicing revenue from the multifamily business.

Equity earnings were attributable to valuation increases of JLL Technologies' investments, nearly half of which were driven by an investment in a company purchased by Procore Technologies, Inc., which went public in May 2021.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 22.2% in USD and local currency, compared with 10.8% in 2020. The margin expansion was primarily due to the (i) transaction-based revenue growth noted above, (ii) savings resulting from cost mitigation efforts during the trailing twelve months, especially related to fixed compensation costs, as well as continued variable operating and administrative expense containment and (iii) the higher equity earnings.

EMEA Second-Quarter 2021 Performance Highlights:

EMEA Real Estate Services


($ in millions, "LC" = local currency)

Three Months Ended June 30,


%

Change
in USD


%
Change
in LC


Six Months Ended June 30,


%
Change
in USD


%
Change
in LC

2021


2020




2021


2020



Revenue

$

809.8



$

626.2



29

%


17

%


$

1,526.0



$

1,382.1



10

%


1

%

Reimbursements

(177.5)



(168.8)



5



(5)



(330.9)



(351.6)



(6)



(14)


Revenue before reimbursements

$

632.3



$

457.4



38

%


25

%


$

1,195.1



$

1,030.5



16

%


6

%

Gross contract costs1

(258.7)



(189.4)



37



24



(510.0)



(452.0)



13



3


Fee revenue1

$

373.6



$

268.0



39

%


27

%


$

685.1



$

578.5



18

%


9

%

Leasing

70.3



45.5



55



41



120.6



92.5



30



20


Capital Markets

92.6



46.3



100



81



162.9



115.1



42



30


Property & Facility Management

83.9



66.2



27



13



160.9



144.1



12



2


Project & Development Services

64.2



58.8



9



1



123.4



124.9



(1)



(8)


Advisory, Consulting and Other

62.6



51.2



22



11



117.3



101.9



15



6


Equity earnings

$



$



%


%


$



$



%


%

Segment income (loss)

$

0.3



$

(33.4)



101

%


95

%


$

(35.5)



$

(53.9)



34

%


33

%

Adjusted EBITDA1

$

11.2



$

(23.7)



147

%


135

%


$

(13.6)



$

(34.3)



60

%


53

%

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the EMEA Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

EMEA achieved significant revenue and fee revenue growth, especially in Capital Markets and Leasing, following a pandemic impacted prior-year quarter. While total segment organic fee revenue was nearly on pace with second-quarter 2019, both Leasing and Capital Markets notably eclipsed 2019 performance. The growth in Capital Markets was driven by stronger market sentiment evidenced through deal volumes, particularly in geographies with higher COVID-19 vaccination rates. The increase in Leasing revenue was primarily driven by transaction volume increases in office and industrial. A partial rebound in the UK mobile engineering business, in part driven by the easing of government-mandated restrictions compared with the prior-year quarter, contributed to higher Property & Facility Management revenue. In addition, Valuation Advisory, particularly in the UK, led growth in Advisory, Consulting and Other. Geographically across service lines, fee revenue growth in EMEA was led by the UK, France and Spain.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 3.0% in USD (2.4% in local currency), compared with negative 8.8% last year. The margin improvement was primarily driven by higher transaction-based revenue and savings resulting from cost mitigation efforts during the last 12 months, especially related to fixed compensation costs. These items were partially offset by the prior-year impact of temporary cost savings.

Asia Pacific Second-Quarter 2021 Performance Highlights:

Asia Pacific Real Estate Services


($ in millions, "LC" = local currency)

Three Months Ended June 30,


%
Change
in USD


%
Change
in LC


Six Months Ended June 30,


%

Change

in USD


%
Change
in LC

2021


2020




2021


2020



Revenue

$

867.9



$

715.3



21

%


12

%


$

1,653.7



$

1,427.4



16

%


8

%

Reimbursements

(395.3)



(327.0)



21



11



(762.2)



(611.9)



25



15


Revenue before reimbursements

$

472.6



$

388.3



22

%


13

%


$

891.5



$

815.5



9

%


2

%

Gross contract costs1

(201.0)



(189.5)



6





(406.7)



(439.0)



(7)



(12)


Fee revenue1

$

271.6



$

198.8



37

%


26

%


$

484.8



$

376.5



29

%


19

%

Leasing

48.6



31.3



55



45



76.4



53.9



42



32


Capital Markets

50.8



21.6



135



115



79.2



40.3



97



79


Property & Facility Management

79.7



74.4



7





160.9



147.7



9



2


Project & Development Services

34.4



28.7



20



11



64.0



57.5



11



3


Advisory, Consulting and Other

58.1



42.8



36



23



104.3



77.1



35



24


Equity earnings (losses)

$

1.0



$

0.5



100

%


107

%


$

2.0



$

(0.2)



n.m.


n.m.

Segment income

$

36.5



$

19.2



90

%


73

%


$

54.3



$

21.6



151

%


126

%

Adjusted EBITDA1

$

44.2



$

26.1



69

%


55

%


$

69.2



$

35.5



95

%


77

%

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the Asia Pacific Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

Asia Pacific's double-digit fee revenue increase reflected a rebound in transaction-based revenue. A continued increase in large-deal transactions, including an outsized deal in Australia, drove revenue expansion in Capital Markets. Growth in Leasing was led by Australia, Greater China and India, primarily due to a pick-up in office volumes and ongoing strength in industrial. Significant business growth continued in Valuation Advisory, notably in Australia, which led the revenue increase in Advisory, Consulting and Other.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 16.3% in USD (16.1% in local currency), compared with 13.1% in 2020. The margin expansion was attributable to growth in transaction-based revenue, partially offset by the notable benefit from government relief programs in the prior year.

LaSalle Second-Quarter 2021 Performance Highlights:

LaSalle


($ in millions, "LC" = local currency)

Three Months Ended June 30,


%
Change
in USD


%
Change
in LC


Six Months Ended June 30,


%
Change
in USD


%
Change
in LC

2021


2020




2021


2020



Revenue

$

115.8



$

99.9



16

%


12

%


$

207.0



$

204.8



1

%


(2)

%

Reimbursements(a)

(2.4)



(1.1)



118



115



(3.9)



(2.9)



34



26


Revenue before reimbursements

$

113.4



$

98.8



15

%


11

%


$

203.1



$

201.9



1

%


(3)

%

Gross contract costs(a)

(4.9)



(3.8)



29



29



(9.3)



(8.3)



12



12


Fee revenue1

$

108.5



$

95.0



14

%


10

%


$

193.8



$

193.6



%


(3)

%

Advisory fees(a)

84.9



76.5



11



6



164.2



158.5



4



(1)


Transaction fees & other(a)

8.4



4.3



95



94



14.4



15.2



(5)



(7)


Incentive fees

15.2



14.2



7



6



15.2



19.9



(24)



(24)


Equity earnings (losses)

$

23.3



$

11.3



106

%


107

%


$

36.3



$

(29.0)



225

%


224

%

Segment income (loss)

$

39.8



$

25.4



57

%


56

%


$

59.2



$

(0.7)



n.m.


n.m.

Adjusted EBITDA1

$

41.1



$

26.8



53

%


51

%


$

62.0



$

2.4



n.m.


n.m.

(a) Gross contract costs are primarily within Advisory fees and Reimbursements are primarily within Other.

(1) For discussion of non-GAAP financial measures, see Note 1 following the Financial Statements in this news release. Percentage variances in the LaSalle Performance Highlights below are calculated and presented on a local currency basis, unless otherwise noted.

LaSalle advisory fee growth was concentrated in the core open-end funds and partially due to recent valuation increases in assets under management.

Equity earnings in the current quarter were driven by increases to the estimated fair value of underlying real estate investments within LaSalle's co-investment portfolio across asset classes and geographies.

Adjusted EBITDA margin for the quarter, calculated on a fee-revenue basis, was 37.9% in USD (38.7% in local currency), compared with 28.2% last year. Margin improvement was driven by higher equity earnings as well as an increase in productivity of the asset management platform, partially offset by the impact from deferred compensation expense relating to incentive fees in prior years.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.

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Live Webcast


Conference Call

Management will offer a live webcast for shareholders, analysts and investment professionals on Wednesday, August 4, 2021, at 9:00 a.m. Eastern. Following the live broadcast, an audio replay will be available for download or stream.


Refer to ir.jll.com for a registration link to receive unique credentials to access the presentation of earnings via phone.

The link to the live webcast and audio replay can be accessed at the Investor Relations website: ir.jll.com.






Supplemental Information


Contact

Supplemental information regarding the second quarter 2021 earnings call has been posted to the Investor Relations section of JLL's website: ir.jll.com.


If you have any questions, please contact Chris Stent, Executive Managing Director of Investor Relations and Corporate Finance:


Phone:

+1 312 252 8943


Email:

JLLInvestorRelations@am.jll.com

Cautionary Note Regarding Forward-Looking Statements

Statements in this news release regarding, among other things, future financial results and performance, achievements, plans, objectives and shares repurchases may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties, and other factors, including but not limited to, the material adverse effect that the pandemic is having on JLL's business, which may cause the company's actual results, performance, achievements, plans, and objectives to be materially different from those expressed or implied by such forward-looking statements. For additional information concerning risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated in forward-looking statements, and risks to the company's business in general, please refer to those factors discussed under "Business," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Quantitative and Qualitative Disclosures about Market Risk," and elsewhere in the company's Annual Report on Form 10-K for the year ended December 31, 2020, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, and other reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this release, and except to the extent required by applicable securities laws, management expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements contained herein to reflect any change in expectations or results, or any change in events.

JONES LANG LASALLE INCORPORATED

Consolidated Statements of Operations (Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,

(in millions, except share and per share data)

2021


2020


2021


2020









Revenue before reimbursements

$

2,507.5



$

1,828.5



$

4,637.1



$

4,061.5


Reimbursements

1,987.5



1,841.9



3,895.0



3,704.9


Total Revenue

$

4,495.0



$

3,670.4



$

8,532.1



$

7,766.4










Operating expenses:








Compensation and benefits

$

1,551.3



$

1,175.3



$

2,885.7



$

2,499.8


Operating, administrative and other

659.3



557.3



1,303.6



1,332.1


Reimbursed expenses

1,987.5



1,841.9



3,895.0



3,704.9


Depreciation and amortization

54.5



56.9



107.5



111.9


Restructuring and acquisition charges3

18.1



28.2



35.3



42.3


Total operating expenses

4,270.7



3,659.6



8,227.1



7,691.0










Operating income

224.3



10.8



305.0



75.4










Interest expense, net of interest income

10.6



14.9



21.0



29.5


Equity earnings (losses)

40.8



14.7



89.3



(13.6)


Other (loss) income

(0.2)



5.2



11.6



6.1










Income before income taxes and noncontrolling interest

254.3



15.8



384.9



38.4


Income tax provision

54.9



1.5



83.1



6.5


Net income

199.4



14.3



301.8



31.9










Net (loss) income attributable to noncontrolling interest

(0.6)



(0.9)



(1.2)



11.4










Net income attributable to common shareholders

$

200.0



$

15.2



$

303.0



$

20.5










Basic earnings per common share

$

3.90



$

0.29



$

5.91



$

0.40


Basic weighted average shares outstanding (in 000's)

51,288



51,635



51,231



51,623










Diluted earnings per common share

$

3.82



$

0.29



$

5.80



$

0.39


Diluted weighted average shares outstanding (in 000's)

52,324



52,173



52,253



52,305










Please reference accompanying financial statement notes.

JONES LANG LASALLE INCORPORATED

Selected Segment Financial Data (Unaudited)



Three Months Ended June 30,


Six Months Ended June 30,

(in millions)

2021


2020


2021


2020

AMERICAS - REAL ESTATE SERVICES








Compensation, operating and administrative expenses

$

1,064.8



$

805.3



$

1,979.4



$

1,815.6


Depreciation and amortization

34.3



39.1



67.4



76.5


Total segment operating expenses, excluding reimbursed

1,099.1



844.4



2,046.8



1,892.1


Gross contract costs1

(220.3)



(192.3)



(436.1)



(405.1)


Total fee-based segment operating expenses

$

878.8



$

652.1



$

1,610.7



$

1,487.0










Segment operating income

$

190.1



$

39.6



$

300.6



$

121.5


Equity earnings

16.5



2.9



51.0



15.6


Total segment income

206.6



42.5



351.6



137.1


Add:








Depreciation and amortization

34.3



39.1



67.4



76.5


Other income





12.0




Net loss (income) attributable to noncontrolling interest

0.7



1.0



1.3



(11.3)


Adjustments:








Net non-cash MSR and mortgage banking derivative activity

(5.7)



(8.6)



(15.4)



(7.0)


Gain on disposition





(12.0)




Adjusted EBITDA1

$

235.9



$

74.0



$

404.9



$

195.3










EMEA - REAL ESTATE SERVICES








Compensation, operating and administrative expenses

$

621.0



$

481.8



$

1,208.7



$

1,066.2


Depreciation and amortization

11.0



9.0



21.9



18.2


Total segment operating expenses, excluding reimbursed

632.0



490.8



1,230.6



1,084.4


Gross contract costs1

(258.7)



(189.4)



(510.0)



(452.0)


Total fee-based segment operating expenses

$

373.3



$

301.4



$

720.6



$

632.4










Segment operating income (loss)

$

0.3



$

(33.4)



$

(35.5)



$

(53.9)


Equity earnings








Total segment income (loss)

0.3



(33.4)



(35.5)



(53.9)


Add:








Depreciation and amortization

11.0



9.0



21.9



18.2


Other (expense) income

(0.1)



5.5





6.3


Net income attributable to noncontrolling interest







(0.1)


Adjustments:








Gain on disposition



(4.8)





(4.8)


Adjusted EBITDA1

$

11.2



$

(23.7)



$

(13.6)



$

(34.3)


JONES LANG LASALLE INCORPORATED

Selected Segment Financial Data (Unaudited) Continued






Three Months Ended June 30,


Six Months Ended June 30,

(in millions)

2021


2020


2021


2020

ASIA PACIFIC - REAL ESTATE SERVICES








Compensation, operating and administrative expenses

$

429.5



$

362.6



$

824.3



$

780.1


Depreciation and amortization

7.6



7.0



14.9



13.6


Total segment operating expenses, excluding reimbursed

437.1



369.6



839.2



793.7


Gross contract costs1

(201.0)



(189.5)



(406.7)



(439.0)


Total fee-based segment operating expenses

$

236.1



$

180.1



$

432.5



$

354.7










Segment operating income

$

35.5



$

18.7



$

52.3



$

21.8


Equity earnings (losses)

1.0



0.5



2.0



(0.2)


Total segment income

36.5



19.2



54.3



21.6


Add:








Depreciation and amortization

7.6



7.0



14.9



13.6


Other income (expense)

0.1



(0.1)





0.3


Adjusted EBITDA1

$

44.2



$

26.1



$

69.2



$

35.5










LASALLE








Compensation, operating and administrative expenses

$

95.3



$

82.9



$

176.9



$

170.0


Depreciation and amortization

1.6



1.8



3.3



3.6


Total segment operating expenses, excluding reimbursed

96.9



84.7



180.2



173.6


Gross contract costs1

(4.9)



(3.8)



(9.3)



(8.3)


Total fee-based segment operating expenses

$

92.0



$

80.9



$

170.9



$

165.3










Segment operating income

$

16.5



$

14.1



$

22.9



$

28.3


Equity earnings (losses)

23.3



11.3



36.3



(29.0)


Total segment income (loss)

39.8



25.4



59.2



(0.7)


Add:








Depreciation and amortization

1.6



1.8



3.3



3.6


Other expense

(0.2)



(0.4)



(0.4)



(0.5)


Net (income) loss attributable to noncontrolling interest

(0.1)



(0.6)



(0.1)




Adjusted EBITDA1

$

41.1



$

26.8



$

62.0



$

2.4


JONES LANG LASALLE INCORPORATED

Summarized Consolidated Statements of Cash Flows (Unaudited)


Six Months Ended June 30,

(in millions)

2021


2020





Cash used in operating activities

$

(246.1)



$

(44.7)






Cash used in investing activities

(213.8)



(109.4)






Cash provided by financing activities

314.7



114.1






Effect of currency exchange rate changes on cash, cash equivalents and restricted cash

(9.7)



(15.1)






Net change in cash, cash equivalents and restricted cash

$

(154.9)



$

(55.1)






Cash, cash equivalents and restricted cash, beginning of year

839.8



652.1






Cash, cash equivalents and restricted cash, end of period

$

684.9



$

597.0






Please reference accompanying financial statement notes.

JONES LANG LASALLE INCORPORATED

Consolidated Balance Sheets





June 30,


December 31,





June 30,


December 31,

(in millions, except share and per share data)

2021


2020





2021


2020

ASSETS

(Unaudited)




LIABILITIES AND EQUITY

(Unaudited)



Current assets:





Current liabilities:





Cash and cash equivalents

$

494.0



$

574.3




Accounts payable and accrued liabilities

$

1,034.6



$

1,229.8



Trade receivables, net of allowance

1,584.1



1,636.1




Reimbursable payables

1,042.3



1,154.5



Notes and other receivables

381.8



469.9




Accrued compensation & benefits

1,171.6



1,433.2



Reimbursable receivables

1,426.4



1,461.3




Short-term borrowings

102.5



62.0



Warehouse receivables

741.7



1,529.2




Short-term contract liability and deferred income

174.6



192.9



Short-term contract assets, net of allowance

286.0



265.8




Short-term acquisition-related obligations

25.4



91.7



Prepaid and other

414.0



517.1




Warehouse facilities

714.1



1,498.4




Total current assets

5,328.0



6,453.7




Short-term operating lease liability

157.6