Jones Lang LaSalle Reports 12% Revenue Growth to $5.75 Billion in Q1 2025

Jones Lang LaSalle Incorporated (JLL) reported its financial results for the first quarter of 2025, revealing a revenue increase of 12% to $5.75 billion, compared to $5.12 billion in the same period last year. The company's net income attributable to common shareholders was $55.3 million, down from $66.1 million in the prior year, reflecting higher equity losses and increased restructuring charges. Adjusted EBITDA rose to $224.8 million, a 20% increase from $187.1 million in the first quarter of 2024, indicating improved operational performance despite the decline in net income.

The company experienced significant changes in its operational metrics, with total operating expenses rising 12% to $5.63 billion, driven by increased compensation and benefits costs, which were up 10% to $1.29 billion. Notably, restructuring and acquisition charges surged to $19.7 million from just $1.7 million a year earlier, primarily due to adjustments related to earn-out liabilities from previous acquisitions. JLL's equity losses also increased significantly, totaling $25.6 million compared to $3.7 million in the prior year, largely attributed to declines in investments within its Software and Technology Solutions segment.

In terms of strategic developments, JLL did not complete any new acquisitions during the quarter but continued to manage its existing portfolio, which includes a significant investment in JLL Income Property Trust. The company reported a total of $902.4 million in investments as of March 31, 2025, reflecting a $100 million contribution to its flagship fund. The firm also restructured its business segments, renaming and reorganizing its operations to enhance efficiency and align with market demands.

Operationally, JLL's Real Estate Management Services segment saw revenue growth of 12% to $4.57 billion, driven by strong performance in Workplace Management and Project Management. The Leasing Advisory segment also reported a 13% increase in revenue, while Capital Markets Services grew by 15%. However, the Investment Management segment faced a decline in revenue of 5%, primarily due to lower assets under management. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, JLL anticipates continued growth in its core business segments, supported by ongoing investments in technology and operational efficiencies. The company expects that the macroeconomic environment will remain challenging, but it is optimistic about its ability to navigate these conditions and capitalize on emerging opportunities in the real estate market. The firm remains committed to enhancing shareholder value through strategic investments and disciplined financial management.