About Jones Lang LaSalle

Jones Lang LaSalle Incorporated (JLL) operates as a global commercial real estate and investment management company. JLL is a Fortune 500 company with operations in over 80 countries. The company provides services for a broad range of clients who represent a wide variety of industries and are based in markets throughout the world. The company's clients vary greatly in size and include for-profit and not-for-profit entities, public-private partnerships and governmental ('public sector') entities. Through LaSalle Investment Management, the company invests for clients on a global basis in both private assets and publicly-traded real estate securities. The company's global platform and diverse service and product offerings position the company to take advantage of the opportunities in a consolidating industry and to successfully navigate the dynamic and challenging markets in which the company competes worldwide. The company uses JLL as its principal trading name. Jones Lang LaSalle Incorporated remains the company's legal name. JLL is a registered trademark in the countries in which the company does business, as is the company's logo. In addition, LaSalle Investment Management, which uses LaSalle as its principal trading name, is a wholly-owned subsidiary of the company. LaSalle is also a registered trademark in the countries in which the company conducts business, as is the company's logo. Services and Business Segments The company is driven to shape the future of real estate for a better world. The company does this by addressing the needs of real estate owners, occupiers and investors, leveraging the company's deep real estate expertise and experience to provide clients with a full range of services on a local, regional and global scale. The company offers its real estate services locally, regionally and globally to real estate owners, occupiers, investors and developers for a variety of property types, including critical environments and data centers, hotels and hospitality facilities, office (including flex space), cultural facilities, industrial and warehouse, residential (individual and multifamily), educational facilities, infrastructure projects, retail and shopping malls, government facilities, logistics (sort and fulfillment), sports facilities, healthcare and laboratory facilities, military housing, and transportation centers. The company's five segments, and the services the company provides within them, include: Markets Advisory Markets Advisory offers local expertise across the globe covering a comprehensive range of services across asset types. The company aggregates such services into three categories: Leasing, Property Management, and Advisory, Consulting and Other. Leasing Agency Leasing executes marketing and leasing programs on behalf of property owners (including investors, developers, property-owning companies and public entities), including product positioning, target tenant identification and competitor analysis through to securing tenants and negotiating leases with terms that reflect the company's clients' best interests. In 2023, the company completed approximately 16,500 agency leasing transactions representing 303 million square feet of space. Tenant Representation establishes strategic alliances with occupier clients to define space requirements, identify suitable alternatives, recommend appropriate occupancy solutions, and negotiate lease and ownership terms with landlords. In 2023, the company completed approximately 21,600 tenant representation transactions representing 539 million square feet of space. The company's agency leasing and tenant representation advisory anchors to the workplace of the future and helps owners and occupiers realize their sustainability commitments and goals. Both the company's agency leasing and tenant representation fees are typically based on a percentage of the value of the lease revenue commitment for executed leases, although in some cases they are based on a monetary amount per square foot leased. Property Management Property Management provides services to real estate owners for office, industrial and logistics, retail, multi-housing and specialty properties. The company typically provides property management services through local teams, which are generally on-site for office and multi-housing properties, supported by regional supervisory teams and central resources in such areas as technology, training, environmental services, accounting, marketing, lease administration and human resources. The company leverages its market share and buying power to deliver superior service and value to the company's clients, and the company's extended delivery team increasingly uses new technology and digital capabilities the company deploys at the property. This allows clients to drive value, optimize operations, gain insights and elevate the tenant experience. The company's work with clients also includes advisory, tenancy management and services focused strategically on reducing energy usage and carbon impact. As of December 31, 2023, the company provided property management services for properties totaling approximately 3.0 billion square feet. Advisory, Consulting and Other Advisory and Consulting provides clients with specialized, value-add real estate consulting services in such areas as occupier portfolio strategy, workplace solutions, location advisory, mergers and acquisitions advisory, asset management, development advisory and master planning activities. Capital Markets Capital Markets is a full-service global provider of capital solutions creating a world of opportunity for investors and owners of real estate. As a leading provider of property sales, debt, value and risk advisory services, and hedging and derivatives, the company combines the unique knowledge of its people with the power of collective insight and technology made possible by the company's fully-integrated capital markets platform. The company's broad array of services includes debt advisory, loan sales, equity advisory (equity and funds placement, M&A, and corporate advisory), loan servicing, investment sales and advisory, and Value and risk advisory. Investment Sales, Debt/Equity Advisory and Other The company provides brokerage and other services for real estate transactions, such as sales or loan originations and refinancing. M&A and corporate advisory services include sourcing capital, both equity and debt, and other traditional investment banking services designed to assist investor and corporate clients to maximize the value of their real estate interests. To meet client demands for selling and acquiring real estate assets domestically and internationally, the company's Capital Markets teams combine local market knowledge with the company's access to global capital sources to provide superior execution in raising capital for real estate transactions. By originating, developing and introducing innovative new financial products and strategies, Capital Markets is integral to the business development efforts of the company's other businesses. Most of the company's revenues are in the form of fees, derived from the value of transactions the company completes or securities the company places. In certain circumstances, the company receives retainer fees for portfolio advisory or consulting services. Value and Risk Advisory The company's Value and Risk Advisory professionals provide several services, including valuation, secured lending advisory, transaction support, data and analytics, development advisory, asset and infrastructure advisory, business valuation, property tax advisory, and restructuring. The company's specialist risk advisory team provides environmental risk assessments to help asset owners reduce the carbon footprint of an asset. The company's risk analytics services use artificial intelligence ('AI') and machine learning to identify risks from cash flow stability, climate change, location, regulatory and health and safety risks. Working closely with investors and lenders, the company usually negotiates compensation for value and risk advisory services based on the scale and complexity of each assignment, and the company's fees typically relate in part to the value of the underlying assets. Loan Servicing In the U.S., the company is a commercial multifamily lender and loan servicer approved by Freddie Mac, Fannie Mae and Housing and Urban Development/Ginnie Mae (the 'Agencies'). In addition, the company is one of only 25 Fannie Mae Delegated Underwriting and Servicing ('DUS') lenders. The company services substantially all the loans the company originates and sells to the Agencies, and service loans the company did not originate but subsequently acquire the rights to service. The company obtains a periodic fee for each loan the company services based on a proportion of the cash collections. Work Dynamics Workplace Management ('WPM') As a strategic partner of clients with a multinational footprint, Work Dynamics offers a single, cohesive service-delivery team focused on three key value levers: (i) making informed, data-driven decisions and digital transformation, (ii) achieving operational excellence through improved productivity and financial performance, and (iii) attracting and retaining key talent through an enhanced user experience. WPM provides comprehensive facility management services globally to corporations and institutions that outsource the management of the real estate they occupy, typically those with large multi-market portfolios of over one million square feet. The company's WPM offering leverages tech-enabled solutions and focuses on the work, worker and workplace to help clients manage costs, achieve sustainability goals, improve workplace service delivery and enhance end-user experience and performance. The company's globally-integrated delivery team includes the company's own personnel, as well as third-party vendors and subcontractors who meet clients' requirements by providing consistent service delivery worldwide and a single point of contact for their real estate service needs. WPM solutions offered to clients range from mobile engineering at a single location to a full-service outsourcing, where the company executes day-to-day operations management of client site locations, delivered through a globally-integrated platform with standardized processes. Facilities under management cover all real estate asset classes, including corporate headquarters, distribution facilities, hospitals, research and development facilities, data centers and industrial complexes. As of December 31, 2023, WPM managed approximately 1.8 billion square feet of real estate for the company's clients. WPM contracts are generally structured on a principal basis (a fixed fee, guaranteed maximum, or reimbursement-based pricing model) but may also be on an agency basis. Typically, the company's structures include a direct or indirect reimbursement for costs of client-dedicated personnel and third-party vendors and subcontractors in addition to a base fee and performance-based fees. Performance-based fees result from achieving quantitative and qualitative performance measures and/or target scores on recurring client satisfaction surveys. WPM agreements are typically three to seven years in duration and, although most contracts can be terminated at will by the client upon a short notice period (usually 30 to 60 days), a transition period of six to twelve-months is more common in the company's industry. The company typically experiences a high renewal rate, with most clients renewing their contracts at least once; many of the company's largest contracts have been in place for more than a decade. Project Management Project Management provides consulting, design, management and build services to tenants of leased space, owners in self-occupied buildings and owners of real estate investments, leveraging technology to drive outstanding service delivery. The company also provides services to public-sector clients, notably military and government entities, and educational institutions, primarily in the U.S. and to a growing extent in other countries. The company brings a 'life cycle' perspective to its clients, from consulting and capital management through design, construction and occupancy via the company's JLL brand, while the company also provides fit-out, refurbishment and design services under the Tetris brand, predominantly in Europe. The company's Project Management business is generally compensated on the basis of negotiated fees, as well as reimbursement of costs when the company is principal to a contract (or client). Individual projects are generally completed in less than one year, but client contracts may extend multiple years in duration and govern a number of discrete projects. Portfolio Services Through the suite of services, the company's Work Dynamics business provides to clients via the company's 'One JLL' approach, the company gains deep knowledge and extensive data about their corporate real estate footprints, business strategies and organizational priorities. This knowledge enables the company's consulting practice to effectively advise clients on how to optimize their workplace strategies and occupancy planning to improve utilization and ultimately enhance the productivity and well-being of those who use the space. More broadly, this advice may extend to the company's clients' portfolio strategies, including location advisory, transaction management, lease administration, technology implementation and optimization, and options to add and integrate flexible space solutions. The company's fee structures vary and are based on the point-in-time or over-time nature of services and deliverables provided to the company's clients. JLL Technologies JLL Technologies leverages its comprehensive technology portfolio of software platforms, apps, hardware and technology services, as well as innovations from venture-backed companies, to help organizations maximize their real estate experience. Services and Software Solutions The company offers professional services, including program and project management, implementation and support, managed services, and advisory/consulting services. The company recognize sthe associated revenue at the time the company's performance obligation is satisfied, sometimes over the course of multiple years. In addition, the company's cloud-based software solutions enable higher-quality insight and decision-making through improved data and analytics, creating opportunities to improve clients' financial performance. These solutions are typically sold via subscription offerings and the company recognizes revenue over time, commensurate with the length and terms of the contract. Examples include: Building Engines, a comprehensive system that unites the technology and applications used to manage a building with simplified upstream and downstream user interactions; Corrigo, a mobile and desktop-integrated product that enables facility managers to efficiently manage work orders, centralize repairs and maintenance, and automate tasks, all on a scalable level; and Hank, a technology which uses machine learning and artificial intelligence to optimize building energy efficiency, maintenance costs and tenant comfort, facilitating improved property operating income. An additional product offering is JLL Marketplace, which enables one-stop shopping for facility product needs and supports ordering, billing and order tracking. The company generates revenue by taking a share from gross market value of all goods and services sold via this platform. JLL Spark - Investments in Proptech The company incubates and drives property technology (proptech) innovation across the real estate spectrum, supporting the development of an array of products and data analytics tools. One way the company achieves this goal is through strategic investments in proptech funds and early to mid-stage proptech companies, including through the company's JLL Spark Global Ventures Funds. LaSalle LaSalle is a global real estate investment management firm that invests institutional and individual capital in real estate assets and securities with a strategic priority to meet client objectives and deliver superior risk-adjusted returns over market cycles. LaSalle launched its first institutional investment fund in 1979, making the company one of the most experienced real estate focused investment managers in the industry. The company has invested, on behalf of its clients and itself, in real estate assets located in 28 countries around the globe, as well as in public real estate companies traded on all major stock exchanges. LaSalle provides clients with a broad range of real estate investment products and services, designed to meet the differing strategic, asset allocation, risk/return and liquidity requirements of the company's clients. The range of investment solutions are offered either through commingled or single investor strategies and include private and public equity investments and real estate debt strategies structured as private or public open-ended funds or private closed-end funds (commingled funds), separate accounts, joint ventures or co-investments. Strategic Framework The company's broad strategic priorities are grouped into five pillars - Clients, Brand, Technology, People & Values, and Sustainability - which collectively support and drive the company's ambitious long-term growth trajectory. Competition Some of the company's primary competitors include large national or global firms including CBRE Group Inc., Cushman & Wakefield plc, Colliers International Group Inc., Savills plc and Newmark Group Inc. Seasonality Historically, the company has reported a relatively smaller revenue and profit in the first quarter (year ended December 2023) with both measures increasing during each of the following three quarters. This is a result of a general focus in the real estate industry on completing or documenting transactions by calendar year end and the fact that certain expenses are constant throughout the year. The company's seasonality excludes the recognition of investment-generated performance fees and realized and unrealized investment equity earnings and losses. Specifically, in the company's LaSalle business, the company recognizes incentives fees when assets are sold or as a result of valuation increases in the portfolio, the timing of which may not be predictable or recurring. In addition, investment equity gains and losses are primarily dependent on underlying valuations, and the direction and magnitude of changes to such valuations are not predictable. Non-variable operating expenses, which the company treats as expenses when incurred during the year, are relatively constant on a quarterly basis. For example, the company continues to experience disruption to its historical seasonality trends due to rising interest rates and widespread economic uncertainty in 2022 and 2023. Intellectual Property The company holds the 'Jones Lang LaSalle,' 'JLL,' 'LaSalle Investment Management' and 'LaSalle' trademarks and the related logos to conduct the material aspects of the company's business globally. The company owns the rights to use the '.jll' and '.lasalle' top level domain names. The company's trademark registrations have to be renewed every ten years, which the company expects to continue to renew, as necessary. Based on the company's most recent trademark registrations, the JLL mark is set to expire in 2024 and the company expects to renew the JLL mark during the course of 2024. The JLL Design (Three Circles) mark will expire in 2031. The company's LaSalle and LaSalle Investment Management marks will expire in 2026. Corporate Governance The company's policies and practices reflect corporate governance initiatives that comply with the listing requirements of the NYSE, the corporate governance requirements of the Sarbanes-Oxley Act of 2002, U.S. Securities and Exchange Commission ('SEC') regulations, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and the General Corporation Law of the State of Maryland, where the company is incorporated. History The company was founded in 1997. It was incorporated in 1997 in Maryland. The company was formerly known as LaSalle Partners Incorporated and changed its name to Jones Lang LaSalle Incorporated in 1999.