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SEC Filings

10-Q
JONES LANG LASALLE INC filed this Form 10-Q on 11/06/2017
Entire Document
 

Americas - Real Estate Services (continued)
 
 
 
 
 
% Change
 
Nine Months Ended September 30,
Change in
in Local
($ in millions)
2017
2016
U.S. dollars
Currency
Leasing
$
1,003.1

884.3

118.8

13
 %
13
 %
Capital Markets & Hotels
318.1

282.3

35.8

13

13

Capital Markets & Hotels Fee Revenue
307.0

280.0

27.0

10

10

Property & Facility Management
536.3

528.8

7.5

1

2

Property & Facility Management Fee Revenue
421.8

400.9

20.9

5

5

Project & Development Services
285.7

243.0

42.7

18

17

Project & Development Services Fee Revenue
268.8

226.1

42.7

19

19

Advisory, Consulting and Other
168.1

109.1

59.0

54

54

Total revenue
$
2,311.3

2,047.5

263.8

13
 %
13
 %
Gross contract costs
(131.4
)
(144.8
)
13.4

(9
)
(8
)
Net non-cash MSR and mortgage banking derivative activity
(11.1
)
(2.3
)
(8.8
)
n.m.

n.m.

Total fee revenue
$
2,168.8

1,900.4

268.4

14
 %
14
 %
Compensation, operating and administrative expenses excluding gross contract costs
1,922.6

1,697.4

225.2

13

13

Gross contract costs
131.4

144.8

(13.4
)
(9
)
(8
)
Depreciation and amortization
71.4

58.4

13.0

22

22

Total operating expenses
$
2,125.4

1,900.6

224.8

12
 %
12
 %
Operating income
$
185.9

146.9

39.0

27
 %
27
 %
Equity earnings
$
0.5

0.8

(0.3
)
(38
)%
(38
)%
Adjusted EBITDA
$
245.9

203.0

42.9

21
 %
21
 %
n.m. - not meaningful
Americas revenue growth for the third quarter, as compared with 2016, was led by Advisory, Consulting and Other, reflecting contributions from Technology Solutions and our recently acquired U.S. valuations platform. Leasing continued its strong year-to-date performance, specifically in our U.S. Northwest, New York, and New England markets. Favorable market conditions contributed to the growth; according to JLL Research, third quarter 2017 market office leasing volumes in the U.S. were 4% higher than the comparative period. On a year-to-date basis, Americas revenue grew primarily from organic sources in all services lines, highlighted by strong Leasing performance in various U.S. markets and bolstered by leasing transactions executed on behalf of Corporate Solutions clients. In addition, the aforementioned performance of Advisory, Consulting and Other together with growth in Capital Markets & Hotels from our multifamily business made notable contributions to our year-to-date revenue growth.
The increase in operating expenses and fee-based operating expenses for the three and nine months ended September 30, 2017, as compared with the same periods in 2016, generally corresponded with the increase in segment revenue discussed above.
Adjusted EBITDA margin, calculated on a fee-revenue basis, was 12.1% in USD and local currency for the third quarter of 2017, as compared with 11.5% last year. The margin expansion was driven by changes in service mix, augmented by management initiatives to contain controllable expenses, partially offset by continued increases to investments in data, technology, and people.

39


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