Jones Lang LaSalle Incorporated (JLL) | Investment Case

1. Company Snapshot

1.a. Company Description

Jones Lang LaSalle Incorporated, a professional services company, provides real estate and investment management services in Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company offers a range of real estate services, including agency leasing and tenant representation services; and capital market services, such as debt advisory, loan sales, equity advisory, loan servicing, merger and acquisition, corporate advisory, and investment sales and advisory services.It also provides on-site management services for office, industrial, retail, multifamily residential, and specialty properties; integrated facilities management services; designing, building, management, and consulting services to tenants of leased space, owners in self-occupied buildings, and owners of real estate investments; and advisory, consulting, valuation, and energy and sustainability services.

In addition, the company offers investment management services to institutional and retail investors, including high-net-worth individuals.It provides its services to real estate owners, occupiers, investors, and developers for various property types, including cultural, educational, government, healthcare, laboratory, hotel, hospitality, and sports facilities; industrial and warehouse, office, and residential properties; retail and shopping malls; critical environment, data, transportation, and sort and fulfillment centers; infrastructure projects; and military housings.The company was formerly known as LaSalle Partners Incorporated and changed its name to Jones Lang LaSalle Incorporated in March 1999.

Jones Lang LaSalle Incorporated was incorporated in 1997 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on JLL

Jones Lang LaSalle Incorporated's recent performance was driven by strong Q3 2025 earnings, with diluted EPS up 45% and adjusted diluted EPS up 29%. The company's sixth consecutive quarter of double-digit revenue growth and Resilient revenue business lines' growth streak are key positives. Additionally, JLL's Global Bid Intensity Index rose in October, signaling improved capital flows and market competition. Institutional investors, such as AlphaCore Capital LLC and ABN Amro Investment Solutions, have also shown confidence in the stock. A "Buy" rating from analysts, citing outsourcing trends and strategic growth, further supports the stock.

1.c. Company Highlights

Last Price	334.2
Change Percentage	0.20%
Open	336.25
Previous Close	333.52
Market Cap ( Millions)	15853
Volume	402622
Year High	340.14
Year Low	194.36
M A 50	310.66
M A 200	271.37

FCF Yield	5.67%
Dividend Yield	0.00%
ROE	1.47%
Debt / Equity	20.81%
Net Debt / EBIDTA	21.80%
Price To Book	2.21
Price Earnings Ratio	154.8
Price To FCF	17.63
Price To sales	0.63
EV / EBITDA	11.85

2. JLL's Strong Q3 2025 Earnings: A Closer Look

Jones Lang LaSalle reported a robust third quarter with revenue growth of 10%, adjusted EBITDA increase of 16%, and adjusted EPS growth of 29% to $4.5, surpassing estimates of $4.24. The company's transactional revenue grew 13%, driven by a 26% surge in investment sales, debt, and equity advisory. This strong performance was led by the company's investment in people and platform, leveraging data, technology, and AI to drive revenue growth and increase profitability.

Publication Date: Nov -11

                                    📋 Highlights
                                    Strong Revenue & EPS Growth:
                                                Revenue increased 10%, adjusted EPS rose 29%, and adjusted EBITDA grew 16% for Q3 2025.
Transactional Revenue Expansion:
                                                Transactional revenue surged 13%, driven by 26% growth in investment sales, debt, and equity advisory services.
Free Cash Flow & Debt Reduction:
                                                Year-to-date free cash flow hit a 2021 high, while net leverage improved to 0.8x due to collections and earnings growth.
AI & Tech Efficiency Gains:
                                                Agentic AI drove productivity gains in Capital Markets, enhancing margins and operational efficiency across the firm.
2025 EBITDA Target Raised:
                                                Adjusted EBITDA guidance increased by $75M to $1.375–$1.45B, reflecting margin expansion and operating efficiency progress.

                                

Segmental Performance

The Software and Technology Solutions segment has made significant progress towards achieving profitability by full-year 2026. Leasing Advisory revenue grew nearly 30% on a 2-year stack basis, with office leasing revenue accelerating to 14% and industrial leasing revenue growing 6% globally. The company's Real Estate Management Services (REMS) segment is expected to experience high single-digit growth, although Property Management may face a slowdown due to intentional contract churn.

Cash Flow and Leverage

JLL's free cash flow improved significantly in the quarter, driven by better collections and earnings growth. The company's net debt reduction led to an improvement in reported net leverage to 0.8x, providing flexibility for potential share repurchases or strategic M&A opportunities. With a current 'Free Cash Flow Yield (%)' of 6.32, the company's cash generation capabilities are attractive.

Valuation and Outlook

Given the company's strong performance and growth prospects, its valuation metrics are worth examining. With a 'P/E Ratio' of 138.85 and 'P/S Ratio' of 0.56, the market appears to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 8.2%. The company's 'ROIC (%)' of 21.44 indicates efficient capital allocation. As JLL continues to leverage technology and AI to drive growth, its outlook remains positive, with a 'Net Debt / EBITDA' ratio of 0.22 providing a comfortable debt position.

Management Insights

Christian Ulbrich emphasized the company's focus on long-term revenue and margin growth, while Kelly Howe highlighted the progress made in working capital efficiency. The management's confidence in the company's growth prospects is evident, with a clear strategy to drive future growth through investments in people, platform, and technology.

3. NewsRoom

LaSalle announces global leadership transition

Dec -03

Source: prnewswire.com

The New Terminal One Partners with JLL to Deliver World-Class Facility Operations at JFK Airport

Dec -03

Source: prnewswire.com

JLL appoints Amanda Brimmer as CFO, Leasing Advisory and Head of Corporate Development

Dec -01

Source: prnewswire.com

Bayview Asset Management LLC Acquires 1,160 Shares of Jones Lang LaSalle Incorporated $JLL

Dec -01

Source: defenseworld.net

Jones Lang LaSalle Incorporated $JLL Shares Sold by Charles Schwab Investment Management Inc.

Nov -29

Source: defenseworld.net

Boston Partners Makes New $12.19 Million Investment in Jones Lang LaSalle Incorporated $JLL

Nov -29

Source: defenseworld.net

Jones Lang Stock Gains 50% in 6 Months: Will it Continue to Rise?

Nov -27

Source: zacks.com

Creative Planning Sells 401 Shares of Jones Lang LaSalle Incorporated $JLL

Nov -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.62%)

6. Segments

Work Dynamics

Expected Growth: 6.5%

Jones Lang LaSalle Incorporated's 6.5% growth in Work Dynamics is driven by increasing demand for flexible workspaces, rising adoption of hybrid work models, and growing need for companies to optimize their real estate portfolios. Additionally, the company's expertise in workplace strategy and technology integration has enabled it to capitalize on the trend towards more efficient and productive work environments.

Markets Advisory

Expected Growth: 6.8%

The 6.8% growth in Markets Advisory from Jones Lang LaSalle Incorporated is driven by increasing demand for strategic advisory services, expansion into new markets, and growing need for real estate investment advice. Additionally, the rise of e-commerce and logistics has fueled demand for industrial and logistics properties, further boosting the segment's growth.

Capital Markets

Expected Growth: 7.2%

The 7.2% growth in Capital Markets from Jones Lang LaSalle Incorporated is driven by increasing demand for commercial real estate, fueled by economic expansion, urbanization, and low interest rates. Additionally, the rise of e-commerce and logistics has boosted demand for industrial and warehouse spaces, contributing to the segment's growth.

LaSalle

Expected Growth: 6.2%

LaSalle's 6.2% growth is driven by increasing demand for alternative investments, expansion into new markets, and strategic acquisitions. The segment benefits from a strong brand reputation, diversified client base, and a robust investment management platform. Additionally, LaSalle's focus on ESG and sustainable investing resonates with clients, contributing to its growth momentum.

JLL Technologies

Expected Growth: 7.5%

JLL Technologies' 7.5% growth driven by increasing demand for digital transformation in real estate, expansion of PropTech solutions, and strategic acquisitions. Growing adoption of cloud-based services, artificial intelligence, and data analytics in commercial real estate also fuels growth. Additionally, JLL's strong brand reputation and global presence contribute to the segment's rapid expansion.

7. Detailed Products

Agency Leasing

Jones Lang LaSalle Incorporated provides agency leasing services to property owners, helping them to lease their properties to tenants.

Tenant Representation

Jones Lang LaSalle Incorporated provides tenant representation services to companies looking for office or industrial space, helping them to find and negotiate the best possible lease terms.

Capital Markets

Jones Lang LaSalle Incorporated provides capital markets services, including investment sales, debt and equity financing, and joint ventures, to help clients buy, sell, and finance commercial properties.

Property Management

Jones Lang LaSalle Incorporated provides property management services to property owners, including day-to-day management, financial reporting, and maintenance and repairs.

Project and Development Services

Jones Lang LaSalle Incorporated provides project and development services, including project management, construction management, and development consulting, to help clients develop and deliver complex projects.

Valuation Advisory

Jones Lang LaSalle Incorporated provides valuation advisory services, including property valuations, to help clients make informed investment decisions.

8. Jones Lang LaSalle Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Jones Lang LaSalle Incorporated is medium due to the presence of alternative real estate services providers, but the company's strong brand and global presence mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Jones Lang LaSalle Incorporated due to the company's diversified client base and the lack of concentration of clients.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Jones Lang LaSalle Incorporated due to the presence of multiple suppliers, but the company's scale and global presence give it some bargaining power.

Threat Of New Entrants

The threat of new entrants is low for Jones Lang LaSalle Incorporated due to the high barriers to entry in the real estate services industry, including the need for significant capital and expertise.

Intensity Of Rivalry

The intensity of rivalry is high for Jones Lang LaSalle Incorporated due to the presence of several large and established players in the real estate services industry, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	27.29%
Debt Cost	4.84%
Equity Weight	72.71%
Equity Cost	11.13%
WACC	9.41%
Leverage	37.54%

11. Quality Control: Jones Lang LaSalle Incorporated passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Omega Healthcare

A-Score: 6.8/10

Value: 3.5

Growth: 3.0

Quality: 8.5

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

National Storage

A-Score: 6.2/10

Value: 5.3

Growth: 5.4

Quality: 7.2

Yield: 10.0

Momentum: 1.0

Volatility: 8.0

1-Year Total Return ->

Regency Centers

A-Score: 6.2/10

Value: 2.9

Growth: 4.3

Quality: 6.7

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

Kilroy Realty

A-Score: 6.0/10

Value: 5.1

Growth: 3.9

Quality: 5.8

Yield: 8.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

American Homes

A-Score: 5.6/10

Value: 2.9

Growth: 6.2

Quality: 6.2

Yield: 6.0

Momentum: 2.5

Volatility: 10.0

1-Year Total Return ->

Jones Lang LaSalle

A-Score: 4.7/10

Value: 4.3

Growth: 5.2

Quality: 5.1

Yield: 0.0

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

8.74%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.41%

Jones Lang LaSalle Incorporated - US48020Q1076

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on JLL

1.c. Company Highlights

Lower Yield

Strong Momentum

Medium Volatility

Earnings Beats

Revenues Beats

Average Growth

Fairly Valued

Revenues Miss

Stable Momentum

2. JLL's Strong Q3 2025 Earnings: A Closer Look

Segmental Performance

Cash Flow and Leverage

Valuation and Outlook

Management Insights

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.62%)

6. Segments

Work Dynamics

Expected Growth: 6.5%

Markets Advisory

Expected Growth: 6.8%

Capital Markets

Expected Growth: 7.2%

LaSalle

Expected Growth: 6.2%

JLL Technologies

Expected Growth: 7.5%

7. Detailed Products

Agency Leasing

Tenant Representation

Capital Markets

Property Management

Project and Development Services

Valuation Advisory

8. Jones Lang LaSalle Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Jones Lang LaSalle Incorporated passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

334.2$

Current Price

334.2$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA