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What changed in JONES LANG LASALLE INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of JONES LANG LASALLE INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+405 added−422 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-19)

Top changes in JONES LANG LASALLE INC's 2025 10-K

405 paragraphs added · 422 removed · 303 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

126 edited+21 added−39 removed70 unchanged
Biggest changeOur growth strategy and strategic vision includes creating an environment were all employees feel valued and can contribute their unique strengths to our collective success, ensuring we attract and retain a talented global workforce to meet our clients' evolving needs. 15 Table of Contents SUSTAINING OUR ENTERPRISE: A BUSINESS MODEL THAT CONSIDERS ALL ASPECTS OF STAKEHOLDER VALUE As referenced above, the built environment is estimated to account for over one-third of global final energy consumption and nearly 40% of total direct and indirect CO 2 emissions, meaning JLL can have a significant impact through the work we do with our clients, as well as efforts in our own workplaces and communities.
Biggest changeOur growth strategy and strategic vision includes creating an environment where all employees feel valued and can contribute their unique strengths to our collective success, ensuring we attract and retain a talented global workforce to meet our clients' evolving needs.
The Company has grown by expanding our client base as well as service and product offerings, both organically and through mergers and acquisitions. Our extensive global reach and in-depth knowledge of local real estate markets enable us to serve as a single-source provider of solutions for the full spectrum of our clients' real estate needs.
The Company has grown by expanding our client base as well as service and product offerings, both organically as well as through mergers and acquisitions. Our extensive global reach and in-depth knowledge of local real estate markets enable us to serve as a single-source provider of solutions for the full spectrum of our clients' real estate needs.
By originating, developing and introducing innovative new financial products and strategies, Capital Markets is integral to the business development efforts of our other businesses. Most of our revenues are in the form of fees, derived from the value of transactions we complete or securities we place. In certain circumstances, we receive retainer fees for portfolio advisory or consulting services.
By originating, developing and introducing innovative new financial products and strategies, Capital Markets Services is integral to the business development efforts of our other businesses. Most of our revenues are in the form of fees, derived from the value of transactions we complete or securities we place. In certain circumstances, we receive retainer fees for portfolio advisory or consulting services.
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.
Investment Management LaSalle Investment Management ("Investment Management") 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.
Increasingly, we also see companies who may not traditionally be considered real estate service providers, including investment banking firms, investment managers, accounting firms, technology firms, software-as-a-service companies, firms providing co-working space, firms providing outsourcing services of various types (including technology, food service and building products) and companies that self-perform their real estate services with in-house capabilities, entering the market.
We also see companies entering the market who may not traditionally be considered real estate service providers, including investment banking firms, investment managers, accounting firms, technology firms, software-as-a-service companies, firms providing co-working space, firms providing outsourcing services of various types (including technology, food service and building products) and companies that self-perform their real estate services with in-house capabilities.
This includes developing means to efficiently survey and compare responses about the ethical environment and riskiness of current and potential suppliers we engage both for our own company and on behalf of clients. Corporate ESG. We encourage and promote the principles of sustainability everywhere we operate, seeking to improve the communities and environment in which our people work and live.
This includes developing means to efficiently survey and compare responses about the ethical environment and riskiness of current and potential suppliers we engage both for our own company and on behalf of clients. Corporate Sustainability. We encourage and promote the principles of sustainability everywhere we operate, seeking to improve the communities and environment in which our people work and live.
We have adopted the following corporate governance policies and approaches considered to be best practices in corporate governance. • Annual elections of all members of our Board • Annual "say on pay" votes by shareholders with respect to executive compensation • Right of shareholders owning 30% of the outstanding shares of our Common stock to call a special meeting of shareholders for any purpose • Majority voting in Director elections • Separation of Chairman and CEO roles, with the Chairman serving as Lead Independent Director • Required approval by the Nominating, Governance and Sustainability Committee of any Director or Executive Officer related-party transactions • Executive session among the Non-Executive Directors at each in-person meeting • Annual self-assessment by the Board and each of its Committees 24 Table of Contents Code of Ethics.
We have adopted the following corporate governance policies and approaches considered to be best practices in corporate governance. • Annual elections of all members of our Board • Annual "say on pay" votes by shareholders with respect to executive compensation • Right of shareholders owning 30% of the outstanding shares of our Common stock to call a special meeting of shareholders for any purpose • Majority voting in Director elections • Separation of Chairman and CEO roles, with the Chairman serving as Lead Independent Director • Required approval by the Nominating, Governance and Sustainability Committee of any Director or Executive Officer related-party transactions • Executive session among the Non-Executive Directors at each in-person meeting • Annual self-assessment by the Board and each of its Committees 21 Table of Contents Code of Ethics.
This is reflected by numerous local recognition awards and client-awarded supplier excellence awards. Increasingly, our clients place importance on our ability to deliver integrated insights with the latest technology, and we continue to demonstrate our leadership in technology to transform data into actionable insight.
This is reflected by numerous local recognition awards and client-awarded supplier excellence awards. Our clients continue to place importance on our ability to deliver integrated insights with the latest technology, and we continue to demonstrate our leadership in technology to transform data into actionable insight.
LaSalle is compensated for investment management services for private equity investments based on capital committed, capital deployed and managed (advisory fees), with additional fees tied to investment performance above specific hurdles (incentive fees). In some cases, LaSalle also receives fees tied to acquisitions, financings, and dispositions (transaction fees).
Investment Management is compensated for investment management services for private equity investments based on capital committed, capital deployed and managed (advisory fees), with additional fees tied to investment performance above specific hurdles (incentive fees). In some cases, Investment Management also receives fees tied to acquisitions, financings and dispositions (transaction fees).
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.
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-end funds or private closed-end funds (commingled funds), separate accounts, joint ventures or co-investments.
To meet client demands for selling and acquiring real estate assets domestically and internationally, our Capital Markets teams combine local market knowledge with our access to global capital sources to provide superior execution in raising capital for real estate transactions.
To meet client demands for selling and acquiring real estate assets domestically and internationally, our Capital Markets Services teams combine local market knowledge with our access to global capital sources to provide superior execution in raising capital for real estate transactions.
We offer our real estate services locally, regionally and globally to real estate owners, occupiers, investors and developers for a variety of property types, including (ordered alphabetically): • 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 Other • Transportation Centers 4 Table of Contents The following reflects our revenue by segment for the year ended December 31, 2024: Our revenue was $23.4 billion for 2024, earned geographically as follows: Note: Greater China is defined as China, Hong Kong, Macau and Taiwan. 5 Table of Contents As of December 31, 2024, our five segments, and the services we provide within them, included: 1.
We offer our real estate services locally, regionally and globally to real estate owners, occupiers, investors and developers for a variety of property types, including (ordered alphabetically): • 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 Other • Transportation Centers 4 Table of Contents The following reflects our revenue by segment for the year ended December 31, 2025: Our revenue was $26.1 billion for 2025, earned geographically as follows: Note: Greater China is defined as China, Hong Kong, Macau and Taiwan. 5 Table of Contents As of December 31, 2025, our five segments, and the services we provide within them, included: 1.
More broadly, this advice may extend to our clients’ portfolio strategies, including location advisory, transaction management, lease administration, technology implementation and optimization, and options to add and integrate flexible space solutions. Our fee structures vary and are based on the point-in-time or over-time nature of services and deliverables provided to our clients. 4.
More broadly, this advice may extend to our clients’ portfolio strategies, including location advisory, transaction management, lease administration, technology implementation and optimization, and options to add and integrate flexible space solutions. Our fee structures vary and are based on the point-in-time or over-time nature of services and deliverables provided to our clients. 2.
Our clients perceive the JLL brand to be trustworthy and ethical, in line with our recent recognition by Ethisphere as one of the World's Most Ethical Companies for the 17th consecutive year. Our heritage of over 250 years and strong global network reinforce this perception. While clients value our global connectivity, they also value our service quality and proactiveness.
Our clients perceive the JLL brand to be trustworthy and ethical, in line with our recent recognition by Ethisphere as one of the World's Most Ethical Companies for the 18th consecutive year. Our heritage of over 250 years and strong global network reinforce this perception. While clients value our global connectivity, they also value our service quality and proactiveness.
Urbanization The concentration of people, culture, diversity, opportunity, facilities and creative expression supports the long-term global trend of migration into the world's major cities.
Demographics and urbanization The concentration of people, culture, diversity, opportunity, facilities and creative expression supports the long-term global trend of migration into the world's major cities.
We will continue to file additional patent applications on new inventions, as appropriate, demonstrating our commitment to technology and innovation. CORPORATE GOVERNANCE; CODE OF BUSINESS ETHICS; CORPORATE ESG AND RELATED MATTERS We are committed to the values of effective corporate governance, operating our business to the highest ethical standards and conducting ourselves in an environmentally and socially responsible manner.
We will continue to file additional patent applications on new inventions, as appropriate, demonstrating our commitment to technology and innovation. CORPORATE GOVERNANCE; CODE OF BUSINESS ETHICS; CORPORATE SUSTAINABILITY AND RELATED MATTERS We are committed to the values of effective corporate governance, operating our business to the highest ethical standards and conducting ourselves in an environmentally and socially responsible manner.
JLL Spark - Investments in Proptech We drive property technology (proptech) innovation across the real estate spectrum, supporting the development of an array of products and data analytics tools. One way we achieve this goal is through strategic investments in proptech funds and early to mid-stage proptech companies, including through our JLL Spark Global Ventures Funds.
All Other We drive property technology ("proptech") innovation across the real estate spectrum, supporting the development of an array of products and data analytics tools. One way we achieve this goal is through strategic investments in proptech funds and early to mid-stage proptech companies, including through our JLL Spark Global Ventures Funds.
For 2023 and 2024, we received Compliance Leader Verification from Ethisphere, a leading organization dedicated to advancing best practices in ethics, compliance, corporate governance and citizenship. The Compliance Leader Verification process involves a rigorous review of an ethics and compliance program and corporate culture and is awarded to select organizations that demonstrate a high level of excellence.
For 2024 and 2025, we received Compliance Leader Verification from Ethisphere, a leading organization dedicated to advancing best practices in ethics, compliance, corporate governance and citizenship. The Compliance Leader Verification process involves a rigorous review of an ethics and compliance program and corporate culture and is awarded to select organizations that demonstrate a high level of excellence.
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 We offer professional services including program and project management, implementation and support, managed services, and advisory/consulting services.
Software and Technology Solutions Software and Technology Solutions 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 We offer professional services including program and project management, implementation and support, managed services, and advisory/consulting services.
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 our clients' best interests.
Leasing Agency Leasing executes marketing and leasing programs on behalf of property owners (such as 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 our clients' best interests.
"One JLL" enables cross-selling opportunities across geographies and service offerings that we expect will continue to develop new revenue sources and growth. Technology Leadership Technology is transforming commercial real estate and CRE technology strategy is top of mind for our clients.
"One JLL" enables cross-selling opportunities across geographies and service offerings that we expect will continue to develop new revenue sources and growth. Technology Leadership Technology is transforming commercial real estate and is top of mind for our clients.
This began a sustained long-term trend of rising investment allocations to the real estate sector with allocations increasing approximately 200 basis points since 2015, according to Cornell University's Baker Program in Real Estate and Hodes Weill & Associates, LP.
This began a sustained long-term trend of rising investment allocations to the real estate sector with allocations increasing approximately 110 basis points since 2015, according to Cornell University's Baker Program in Real Estate and Hodes Weill & Associates, LP.
Our Finance, Legal and Sustainability functions are primarily responsible for the i ntegrity of our integrated reporting efforts, collaborating in the preparation and presentation of this report and engaging our organization's leadership. 21 Table of Contents SEASONALITY Historically, we have reported a relatively smaller revenue and profit in the first quarter with both measures increasing during each of the following three quarters.
Our Finance, Legal and Sustainability functions are primarily responsible for the i ntegrity of our integrated reporting efforts, collaborating in the preparation and presentation of this report and engaging our organization's leadership. SEASONALITY Historically, we have reported a relatively smaller revenue and profit in the first quarter with both measures increasing during each of the following three quarters.
This promise ensures JLL is positioned as an employer of choice for top talent, achieving and sustaining an inclusive and collaborative culture that strongly appeals to our people and our clients alike. 14 Table of Contents Sustainability Our sustainability program is rooted in our purpose to shape the future of real estate for a better world.
This promise ensures JLL is positioned as an employer of choice for top talent, achieving and sustaining an inclusive and collaborative culture that strongly appeals to our people and our clients alike. Sustainability Our sustainability program is rooted in our purpose to shape the future of real estate for a better world.
As of December 31, 2024, Workplace Management managed approximately 2.2 billion square feet of real estate for our clients. Workplace Management 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.
As of December 31, 2025, Workplace Management managed approximately 2.8 billion square feet of real estate for our clients. Workplace Management 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.
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 our clients.
Investment Management 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 our clients.
Rising investment allocations and globalization of capital flows to real estate In the years following the 2008 Global Financial Crisis, as investors reassessed investment allocations and priorities, real estate emerged from its previous "alternative investment" classification to become a major defined asset class of its own.
Rising investment allocations to real estate In the years following the 2008 Global Financial Crisis, as investors reassessed investment allocations and priorities, real estate emerged from its previous "alternative investment" classification to become a major defined asset class of its own.
LaSalle launched its first institutional investment fund in 1979, making us one of the most experienced real estate focused investment managers in the industry. We have invested, on behalf of our clients and ourselves, in real estate assets located in 25 countries around the globe, as well as in public real estate companies traded on all major stock exchanges.
Investment Management launched its first institutional investment fund in 1979, making us one of the most experienced real estate focused investment managers in the industry. We have invested, on behalf of our clients and ourselves, in real estate assets located in 24 countries around the globe, as well as in public real estate companies traded on all major stock exchanges.
In addition to our Facility, we established a commercial paper program in 2024, in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time. Focus on Sustainability Leading on sustainability is fundamental to both our purpose and our long-term growth strategy, with a strong correlation to the success of our business.
In addition to our Facility, we maintain a commercial paper program in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time. Focus on Sustainability Leading on sustainability is fundamental to both our purpose and our long-term growth strategy, with a strong correlation to business success.
Specifically, in our LaSalle business, we recognize 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.
Specifically, in our Investment Management business, we recognize incentive 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.
Work Dynamics Workplace Management 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 talent through an enhanced user experience.
Real Estate Management Services Workplace Management As a strategic partner of clients with a multinational footprint, Real Estate Management Services 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 talent through an enhanced user experience.
For the year ended December 31, 2024, we provided capital markets services for approximately $186 billion of client transactions. Value and Risk Advisory Our 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.
For the year ended December 31, 2025, we provided capital markets services for approximately $258 billion of client transactions. Value and Risk Advisory Our 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.
As of December 31, 2024, corporate liquidity was $3.6 billion, the sum of cash and cash equivalents and the available capacity on our unsecured credit facility (the "Facility"). The Facility is provided by an international syndicate of banks, which, as of December 31, 2024, had a maximum borrowing capacity of $3.3 billion and a maturity date in November 2028.
As of December 31, 2025, corporate liquidity was $3.9 billion, the sum of cash and cash equivalents and the available capacity on our unsecured credit facility (the "Facility"). The Facility is provided by an international syndicate of banks, which, as of December 31, 2025, had a maximum borrowing capacity of $3.3 billion and a maturity date in November 2028.
Ultimate responsibility for promoting awareness and ensuring adherence to our values and purpose across the enterprise is held by the JLL Global Executive Board ("GEB") and is endorsed by our Board of Directors.
Ultimate responsibility for promoting awareness and ensuring adherence to our values and 10 Table of Contents purpose across the enterprise is held by the JLL Global Executive Board ("GEB") and is endorsed by our Board of Directors.
Staying true to this purpose enables us to align with the interests and ambitions of our clients and stakeholders. It exemplifies our commitment to the highest standards of ESG, and to a more sustainable and inclusive future.
Staying true to this purpose enables us to align with the interests and ambitions of our clients and stakeholders. It exemplifies our commitment to a more sustainable and inclusive future.
Loan Servicing In the U.S., we are a commercial multifamily lender and loan servicer approved by Freddie Mac, Fannie Mae and Housing and Urban Development/Ginnie Mae (the “Agencies”). In addition, we are one of only 25 Fannie Mae Delegated Underwriting and Servicing ("DUS") lenders.
Loan Servicing In the U.S., we are a commercial multifamily lender and loan servicer approved by Freddie Mac, Fannie Mae and Housing and Urban Development/Ginnie Mae (the "Agencies"). In addition, we are one of only 24 Fannie Mae Delegated Underwriting and Servicing ("DUS") lenders.
We believe our ability to co-invest alongside our clients' funds aligns our interests and will continue to be an important differentiating factor in maintaining and improving our investment performance and attracting new capital to manage. As of December 31, 2024, we had a total of $406.1 million of co-investments, alongside our clients, in real estate ventures included in total AUM.
We believe our ability to co-invest alongside our clients' funds aligns our interests and will continue to be an important differentiating factor in maintaining and improving our investment performance and attracting new capital to manage. As of December 31, 2025, we had a total of $505.8 million of co-investments, alongside our clients, in real estate ventures included in total AUM.
Health and Safety Health and safety is at the forefront of JLL's operations. With over 1,000 health and safety professionals, we are committed to creating an environment that unequivocally protects our employees, clients and supply partners. To effectively manage health and safety, our program is certified to the internationally recognized health and safety management standard ISO 45001.
With over 1,000 health and safety professionals, we are committed to creating an environment that unequivocally protects our employees, clients and supply partners. To effectively manage health and safety, our program is certified to the internationally recognized health and safety management standard ISO 45001.
We publish details of our ethics program and ethics statistics in our Ethics Everywhere Report to increase transparency and understanding of the types of concerns and issues raised through our reporting channels. Responsibility for Integrated Reporting.
We publish details of our ethics program and ethics statistics in our Ethics Everywhere Annual Report to increase transparency and understanding of the types of concerns and issues raised through our reporting channels. 18 Table of Contents Responsibility for Integrated Reporting.
We typically negotiate compensation for Advisory and Consulting based on developed work plans that vary based on the scope and complexity of projects. 6 Table of Contents 2. 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.
We typically negotiate compensation for Advisory and Consulting based on developed work plans that vary based on the scope and complexity of projects. 3. Capital Markets Services Capital Markets Services is a full-service global provider of capital solutions creating a world of opportunity for investors and owners of real estate.
Our 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, we invest for clients on a global basis in both private assets and publicly-traded real estate securities.
Our 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 (also referred to as "LaSalle" or our "Investment Management" segment), we invest for clients on a global basis in both private assets and publicly traded real estate securities.
Our investment funds have various life spans, typically ranging between five and nine years, but in some cases are open ended. In 2024, open-ended funds represented approximately 32% of AUM as of December 31, 2024.
Our investment funds have various life spans, typically ranging between five and nine years, but in some cases are open ended. In 2025, open-end funds represented approximately 34% of AUM as of December 31, 2025.
With an under-penetrated market opportunity, we see a long runway for further growth in the trend for organizations to outsource real estate services as our clients increasingly seek strategic advice on reimagining their workspaces and workstyles to reinforce culture, attract talent and drive cost efficiencies.
We continue to see a long runway for further growth in the trend for organizations to outsource real estate services as our clients increasingly seek strategic advice on reimagining their workspaces and workstyles to reinforce culture, attract talent and drive cost efficiencies.
Markets Advisory Markets Advisory offers local expertise across the globe covering a comprehensive range of services across asset types. We aggregate such services into three categories: Leasing, Property Management and Advisory, Consulting and Other.
Leasing Advisory Leasing Advisory offers local expertise across the globe covering a comprehensive range of services across asset types. We aggregate such services into two categories: Leasing and Advisory, Consulting and Other.
The SEC maintains www.sec.gov , containing annual, quarterly and current reports, proxy statements and other information we file electronically with the SEC.
The SEC maintains www.sec.gov , containing annual, quarterly and current reports, proxy statements and other information we file electronically with the SEC. 22 Table of Contents
In 2024, we completed approximately 18,300 agency leasing transactions representing 318 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 2025, we completed approximately 19,500 agency leasing transactions representing 340 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.
Our work with clients also includes advisory, tenancy management and services focused strategically on reducing energy usage and carbon impact. As of December 31, 2024, we provided property management services for properties totaling approximately 3.1 billion square feet.
Our work with clients also includes advisory, tenancy management and services focused strategically on reducing energy usage and carbon impact. As of December 31, 2025, we provided management services for properties totaling approximately 2.9 billion square feet.
Employee Engagement Our vibrant workplace culture is reflected in our annual People Survey results, where 86,000 (76%) employees across all levels and backgrounds shared their perspectives, resulting in an engagement score of 72—surpassing the high-performance organizations benchmark by 4 points. We create a work environment that supports the growth and interests of our employees.
Employee Engagement Our vibrant workplace culture is reflected in our annual People Survey results, where 90,000 (81%) employees across all levels and backgrounds shared their perspectives, resulting in an engagement score of 80, surpassing the high-performance organizations benchmark by 1 point. We create a work environment that supports the growth and interests of our employees.
News & World Report’s Best Companies to Work For • One of America's Greatest Workplaces by Newsweek and Plant-A Insights Group • One of The World's Best Companies by Time and Statista • One of Forbes' Most Trusted Companies INTEGRATED REPORTING JLL was one of the first U.S. listed companies to participate in the International Integrated Reporting Council ("IIRC"), and we continue to support the general principles set forth by the Framework, which are designed to promote communications and integrated thinking about how an organization's strategy, governance, and financial and non-financial performance lead to the creation of value over the short, medium and long term.
News & World Report’s Best Companies to Work For, for the fourth consecutive year • One of The World's Best Companies by Time and Statista for the second consecutive year • One of Forbes' Most Trusted Companies for the second consecutive year • One of America’s Climate Leaders by USA Today for the second consecutive year INTEGRATED REPORTING JLL was one of the first U.S. listed companies to participate in the International Integrated Reporting Council ("IIRC"), and we continue to support the general principles set forth by the Framework, which are designed to promote communications and integrated thinking about how an organization's strategy, governance, and financial and non-financial performance lead to the creation of value over the short, medium and long term.
Our involvement helps our clients reduce real estate costs, minimize occupancy risk, improve occupancy control and flexibility, and create more productive office environments. In 2024, we completed approximately 23,000 tenant representation transactions representing 497 million square feet of space.
Our involvement helps our clients reduce real estate costs, minimize occupancy risk, improve occupancy control and flexibility, 7 Table of Contents and create more productive office environments. In 2025, we completed approximately 23,500 tenant representation transactions representing 569 million square feet of space.
Our purpose guides our strategic growth vision and informs our response to the long-term macro trends which maintain prevalence in the real estate industry at all points in the economic cycle. These trends and our strategic framework are summarized below.
Our purpose guides our strategic growth vision and informs our response to the long-term macro trends which maintain prevalence in the real estate industry at all points in the economic cycle. These trends and our strategic framework are summarized below. INDUSTRY TRENDS We continue to see major macro trends influencing the expansion and evolution of the real estate sector.
Our learning platforms have resulted in nearly 2 million learning assets consumed to accelerate the development of our employees. 22 Table of Contents Using extensive internal and external research, we have redefined the core leadership behaviors that drive our near and long-term success.
Our learning platforms have resulted in over 2 million learning assets consumed in 2025 to accelerate the development of our employees. Using extensive internal and external research, we have a set of core leadership behaviors that drive our near and long-term success.
The real estate industry is affected in many ways including, for example, (1) the transition to flexible and hybrid office working models, (2) new data-driven understanding of how all forms of real estate can be more efficient, sustainable and productive, (3) the rise of experiential and online retail, (4) new asset management technologies and (5) the growth of the logistics sector.
AI and technology's next frontier The real estate industry is affected by advances in technology, data and artificial intelligence in many ways, specifically: (1) the transition to flexible and hybrid office working models, (2) new data-driven understanding of how all forms of real estate can be more efficient, sustainable and productive, (3) the rise of experiential and online retail, (4) new asset management technologies and (5) the growth of the logistics sector.
Environmental Protection Agency, every year since 2012 • One of the World's Most Ethical Companies by the Ethisphere Institute, every year since 2008 • A World's Most Admired Company by Fortune Magazine , every year since 2017 • To the Human Rights Campaign Foundation's Corporate Equality Index, a benchmarking survey on corporate policies and practices related to LGBTQ workplace equality, for the tenth consecutive year • One of the Best Places to Work for Disability Inclusion by the Disability Equality Index, for the sixth consecutive year • A member of Seramount’s Inclusion Index, recognizing our dedication and progress to creating an inclusive workplace for the third consecutive year • One of America’s 100 Most Sustainable Companies by Barron’s, for the fifth consecutive year • To the Wall Street Journal's Management Top 250 ranking, for the fifth consecutive year • One of America’s Most JUST Companies by Forbes /JUST Capital, for the third consecutive year • A Top Company for Executive Women by Seramount, for the second consecutive year • One of U.S.
Environmental Protection Agency, every year since 2012 • One of the World's Most Ethical Companies by the Ethisphere Institute, every year since 2008 • A World's Most Admired Company by Fortune Magazine, every year since 2017 • To the Human Rights Campaign Foundation's Corporate Equality Index, a benchmarking survey on corporate policies and practices related to LGBTQ workplace equality, every year since 2015 • One of the Best Places to Work for Disability Inclusion by the Disability Equality Index, for the seventh consecutive year • One of America’s 100 Most Sustainable Companies by Barron’s, for the sixth consecutive year • To the Wall Street Journal's Management Top 250 ranking, for the sixth consecutive year • One of America’s Most JUST Companies by Forbes/JUST Capital, for the fourth consecutive year • One of U.S.
We strive to create an inclusive environment that recognizes the value of diverse perspectives and experiences. Our approach aims to enhance our performance and contribute positively to the communities in which we operate. We are committed to fair and equitable practices in recruitment, development and promotion, focusing on identifying and nurturing talent from various backgrounds.
We strive to create an inclusive environment that recognizes the value of different perspectives and experiences. Our approach aims to enhance our performance and contribute positively to the communities in which we operate. We are committed to fair and equitable practices in recruitment, development and promotion.
We generally report these investments at fair value and include fair value adjustments in our Consolidated Statements of Comprehensive Income within Equity earnings. As of December 31, 2024, the fair value of such investments was $363.1 million. 9 Table of Contents 5.
We generally report these investments at fair value and include fair value adjustments in our Consolidated Statements of Comprehensive Income within Equity earnings/losses. As of December 31, 2025, the fair value of such investments was $340.1 million.
Our goal is to provide a holistic understanding of our clients' needs across our business, curate a customized experience and identify the right management approach for our clients to drive accountability and bring the best of JLL.
Our client experience management platform allows us to gather, understand and act on our clients' feedback. Our goal is to provide a holistic understanding of our clients' needs across our business, curate a customized experience and identify the right management approach for our clients to drive accountability and bring the best of JLL.
ITEM 1. BUSINESS COMPANY OVERVIEW Jones Lang LaSalle Incorporated, incorporated in 1997, is a Maryland corporation. References to “JLL,” “the Company,” “we,” “us” and “our” refer to Jones Lang LaSalle Incorporated and include all of its consolidated subsidiaries, unless otherwise indicated or the context requires otherwise.
ITEM 1. BUSINESS COMPANY OVERVIEW Jones Lang LaSalle Incorporated, incorporated in 1997, is a Maryland corporation. References to "JLL," "the Company," "we," "us" and "our" refer to Jones Lang LaSalle Incorporated and include all of its consolidated subsidiaries, unless otherwise indicated or the context requires otherwise.
This core organizational purpose is fully aligned with our "One JLL" philosophy which supports our corporate values of teamwork, ethics and excellence. This philosophy formalizes how our teams engage with each other and enables us to deliver the best capabilities to our clients.
We continue to strategically invest in our platform, products and people to lead this wave of change. This core organizational purpose is fully aligned with our "One JLL" philosophy which supports our corporate values of teamwork, ethics and excellence. This philosophy formalizes how our teams engage with each other and enables us to deliver the best capabilities to our clients.
As of December 31, 2024, we serviced a loan portfolio of approximately $140 billion. 7 Table of Contents 3.
As of December 31, 2025, we serviced a loan portfolio of approximately $140.3 billion. 8 Table of Contents 4.
Our issuer and senior unsecured ratings as of December 31, 2024 are Baa1 from Moody’s and BBB+ from S&P. Accordingly, our ability to present a strong financial condition may distinguish us as we compete for business. We have ample capacity to fund our business.
("Moody’s") and Standard & Poor’s Ratings Services ("S&P"). Our issuer and senior unsecured ratings as of December 31, 2025 are Baa1 from Moody’s and BBB+ from S&P. Accordingly, our ability to present a strong financial condition may distinguish us as we compete for business, notably in the Real Estate Management Services segment. We have ample capacity to fund our business.
In 2022, we launched an updated version of our Code of Ethics which sets forth the ethics principles that guide our operations globally and applies to all employees of JLL and the members of our Board.
Our Code of Ethics which sets forth the ethics principles that guide our operations globally and applies to all employees of JLL and the members of our Board.
Our programs provide a framework that recognizes and understands our colleagues’ distinct aspirations and needs throughout our company. This approach enables us to develop strategies that resonate with different groups, ensuring all employees can access resources that support their success.
Our programs provide a framework that recognizes and understands our colleagues’ distinct aspirations and needs throughout our company. This approach enables us to develop strategies that resonate with different groups, ensuring all employees can access resources that support their success. We have various ways for employees to connect and engage through volunteering, community groups and well-being programs.
With a comprehensive portfolio of purpose-built solutions, unparalleled industry expertise and leading-edge, venture-backed companies, JLL enables organizations to achieve exceptional building performance, accelerate the path to net zero and optimize spaces for the future of work.
Through technology, JLL helps organizations transform the way they acquire, manage, operate and experience space. With a comprehensive portfolio of purpose-built solutions, unparalleled industry expertise and leading-edge, venture-backed 12 Table of Contents companies, JLL enables organizations to achieve exceptional building performance, accelerate the path to net zero and optimize spaces for the future of work.
LaSalle's assets under management ("AUM") of $88.8 billion, as of December 31, 2024, by geographic distribution and fund type, is detailed in the following graphics ($ in billions).
Investment Management's assets under management ("AUM") of $86.4 billion, as of December 31, 2025, by geographic distribution and fund type, is detailed in the following graphics ($ in billions).
At the heart of our Beyond strategy (discussed below) and supported by ongoing investments and innovations, we are widely-recognized as a leading user of technology and data in real estate. 12 Table of Contents Sustainability Addressing climate change and the finite nature of global resources are recognized ESG risks for our industry.
At the heart of our Beyond strategy (discussed 11 Table of Contents below) and supported by ongoing investments and innovations, we are widely-recognized as a leading user of technology and data in real estate. Energy and sustainability Climate change and resource constraints are transforming the real estate industry.
Components of Our Integrated Reporting. This Annual Report on Form 10-K focuses on our business strategy and our financial performance, including an attempt to illustrate how being a sustainable enterprise is integral to our success.
Components of Our Integrated Reporting. This Annual Report on Form 10-K focuses on our business strategy and our financial performance, including an attempt to illustrate how being a sustainable enterprise is integral to our success. Our citizenship and sustainability efforts for ourselves and our clients are reflected primarily in our annual Sustainability Report, available through our Sustainability Reporting Hub.
Visit our website at www.jll.com to see our full portfolio of technology services. People & Values People are at the heart of our business. We are dedicated to helping our people SEE A BRIGHTER WAY by enabling them to explore new opportunities, build expertise, create long-term careers, and draw inspiration through working with talented colleagues and clients.
People & Values We are dedicated to helping our people SEE A BRIGHTER WAY by enabling them to explore new opportunities, build expertise, create long-term careers, and draw inspiration through working with talented colleagues and clients.
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.
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; and • 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.
While vendors are independent entities, their business practices may significantly reflect upon us, our reputation and our brand. Accordingly, we expect all vendors to adhere to the JLL Vendor Code of Conduct, which we publish in multiple languages on our website. We continue to evaluate and implement new ways to monitor the quality and integrity of our supply chain.
Accordingly, we expect all vendors to adhere to the JLL Vendor Code of Conduct, which we publish in multiple languages on our website. We continue to evaluate and implement new ways to monitor the quality and integrity of our supply chain.
Separate account advisory agreements generally have specific terms with "at will" termination provisions and include fee arrangements calculated on the mark to market value of the assets, plus, in some cases, incentive fees. 10 Table of Contents ORGANIZATIONAL PURPOSE JLL’s organizational purpose is to shape the future of real estate for a better world.
Separate account advisory agreements generally have specific terms with "at will" termination provisions and include fee arrangements calculated on the mark to market value of the assets, plus, in some cases, incentive fees. 9 Table of Contents 5.
Both our 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.
Both our 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.
Our industry-recognized commitment to technology earned JLL a place in Fast Company's Next Big Things in Tech. Additionally, Fortune named us one of the World's Most Admired Companies for the eighth consecutive year.
Our industry-recognized commitment to technology earned JLL a place in Fast Company's Next Big Things in Tech. Additionally, Fortune named us one of the World's Most Admired Companies for the ninth consecutive year. Technology Technology is core to our growth strategy and essential to our purpose to shape the future of real estate for a better world.
Vendor Code of Conduct . We expect each of our vendors, meaning any firm or individual providing a product or service to us, or indirectly to our clients as a contractor or subcontractor, will share and embrace the letter and spirit of our commitment to integrity.
We expect each of our vendors, meaning any firm or individual providing a product or service to us, or indirectly to our clients as a contractor or subcontractor, will share and embrace the letter and spirit of our commitment to integrity. While vendors are independent entities, their business practices may significantly reflect upon us, our reputation and our brand.
These behaviors are the foundation for leadership development, leadership performance and talent assessments, succession planning and other talent processes. Our award-winning development platform, Leading the Way, has been updated to reflect the refreshed leadership behaviors and our employees can self-assess against them to participate in programs.
These behaviors are the foundation for leadership development, leadership performance and talent assessments, succession planning and other talent processes. Our award-winning development platform, Leading the Way, incorporates these leadership behaviors and our employees can self-assess against them to participate in programs. Leading the Way is an end-to-end platform that helps our employees grow their leadership skills from frontline to executive.
Nearly 90,000 employees annually have been able to learn, in seven different languages, through our virtual, on-demand offerings about topics such as, but not limited to, sustainability, technology and the future of work.
Over 100,000 employees annually have been able to learn, in seven different languages, through a variety of modality offerings including Instructor Led, Virtual Instructor Led and on-demand offerings about topics such as, but not limited to leadership, AI, sustainability, career development and the future of work.
We intend to post on our website any amendment or waiver of the Code of Ethics with respect to a member of our Board or any of the executive officers named in our proxy statement. 25 Table of Contents On the Investor Relations page on our website, we make available our Annual Report on Form 10-K, our Proxy Statement on Schedule14A , our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”).
On the Investor Relations page on our website, we make available our Annual Report on Form 10-K, our Proxy Statement on Schedule 14A , our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act").
Our research initiatives investigate emerging trends to help us anticipate future conditions and shape new services to benefit our clients, which in turn help us secure and maintain profitable long-term relationships with the clients we target: the world's leading real estate owners, occupiers, investors and developers. 20 Table of Contents Awards We won numerous awards and recognitions through January 2025 that reflect the quality of the services we provide to our clients, the integrity of our people and our desirability as a place to work.
Our research initiatives investigate emerging trends to help us anticipate future conditions and shape new services to benefit our clients, which in turn help us secure and maintain profitable long-term relationships with the clients we target: the world's leading real estate owners, occupiers, investors and developers.
The mechanisms we use to make our clients comfortable with respect to our transparency and fair dealing are summarized in our Ethics Everywhere Report.
Our governance and remuneration practices are reported primarily in the Proxy Statement for our Annual Meeting of Shareholders. The mechanisms we use to make our clients comfortable with respect to our transparency and fair dealing are summarized in our Ethics Everywhere Annual Report.
Training and Development As our business has evolved, so too have our broader learning and development platform and products. We continue to upskill our workforce on future-focused skills, ensuring our employees worldwide have the development they need, whether for technical or professional development, leveraging our JLL Virtual Learning library.
We continue to upskill our workforce on future-focused skills, ensuring our employees worldwide have the development they need, whether for technical or professional development, leveraging our MyLearning platform.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe risk of market volatility and fluctuating real estate asset values could create liquidity issues for our counterparties and/or lead to tightened lending conditions, which may negatively affect our cash flow and access to credit. Persistent economic uncertainty may prolong commercial real estate and investor decision making and have a dampening effect on our results.
Biggest changeThe ongoing reconfiguration of global supply chains for greater resilience, combined with persistent geopolitical tensions, continues to create volatility in the cost and availability of materials, which can affect project timelines and profitability for our clients and our business. 35 Table of Contents The risk of market volatility and fluctuating real estate asset values could create liquidity issues for our counterparties and/or lead to tightened lending conditions, which may negatively affect our cash flow and access to credit.
Investing in any of these types of situations exposes us to several risks: • We may lose some or all the capital we invest if the investments underperform. ◦ For real estate investments, underperformance may result from many factors outside of our control, including the general reduction in asset values within a particular geography or asset class. ◦ For proptech investments, the concepts and strategic plans underpinning the value of the fund or entity may not be realized or could be poorly executed.
Investing in any of these types of situations exposes us to several risks: • We may lose some or all of the capital we invest if the investments underperform. ◦ For real estate investments, underperformance may result from many factors outside of our control, including the general reduction in asset values within a particular geography or asset class. ◦ For proptech investments, the concepts and strategic plans underpinning the value of the fund or entity may not be realized or could be poorly executed.
With respect to our status as an approved lender for Fannie Mae, Freddie Mac and as a HUD-approved originator and issuer of Ginnie Mae securities (collectively the “Agencies”), we are required to comply with various eligibility criteria established by the Agencies, such as minimum net worth, operational liquidity and collateral requirements.
With respect to our status as an approved lender for Fannie Mae, Freddie Mac and as a HUD-approved originator and issuer of Ginnie Mae securities (collectively the "Agencies"), we are required to comply with various eligibility criteria established by the Agencies, such as minimum net worth, operational liquidity and collateral requirements.
In addition, our contractors and their subcontractors are highly integrated into many aspects of our operations and therefore are involved in a significant proportion of the safety incidents we experience. Additional efforts are necessary to ensure our vendors are aware of our high health and safety expectations and consistently comply with our policies and procedures.
Our contractors and their subcontractors are highly integrated into many aspects of our operations and therefore are involved in a significant proportion of the safety incidents we experience. Additional efforts are necessary to ensure our vendors are aware of our high health and safety expectations and consistently comply with our policies and procedures.
However, despite significant investments in our safety platform, management systems and vendor due diligence program, if our health and safety policies, procedures, and programs are not adequate, or if our employees or contractors do not receive or complete adequate training or comply with our policies and procedures, we may be exposed to significant consequences including serious injury or loss of life, which could have a material impact on our financial performance and reputation.
However, despite significant investments in our safety platform, management systems and vendor due diligence program, if our health and safety policies, procedures, and programs are not adequate, or if our employees or contractors do not receive or complete adequate training or comply with our policies and procedures, we may be, and have previously been, exposed to significant consequences including serious injury or loss of life, which could have a material impact on our financial performance and reputation.
Such instances can adversely affect the volume of business transactions, real estate markets and the cost of operating real estate or providing real estate services. 27 Table of Contents DISRUPTIONS IN COMPUTER SYSTEMS, PRIVACY BREACHES OR CYBERSECURITY ISSUES, OR FAILURES TO EXECUTE OUR ENTERPRISE-WIDE DATA STRATEGY, COULD IMPACT OUR ABILITY TO SERVICE OUR CUSTOMERS AND ADVERSELY AFFECT OUR BUSINESS, DAMAGE OUR REPUTATION AND EXPOSE US TO FINANCIAL RISK.
Such instances can adversely affect the volume of business transactions, real estate markets and the cost of operating real estate or providing real estate services. 24 Table of Contents DISRUPTIONS IN COMPUTER SYSTEMS, PRIVACY BREACHES OR CYBERSECURITY ISSUES, OR FAILURES TO EXECUTE OUR ENTERPRISE-WIDE DATA STRATEGY, COULD IMPACT OUR ABILITY TO SERVICE OUR CUSTOMERS AND ADVERSELY AFFECT OUR BUSINESS, DAMAGE OUR REPUTATION AND EXPOSE US TO FINANCIAL RISK.
We service clients across multiple industry verticals - many of which are higher-profile cyber targets themselves - including financial services, technology, government institutions, healthcare and life sciences, and because of this the risk that we are subject to cyber-attack incidents may increase. In addition, the rapid evolution and increased adoption of artificial intelligence technologies amplify these risks.
We service clients across multiple industry verticals - many of which are higher-profile cyber targets themselves - including financial services, technology, government institutions, healthcare and life sciences, and because of this the risk that we are subject to cyberattack incidents may increase. In addition, the rapid evolution and increased adoption of artificial intelligence technologies amplify these risks.
We have experienced various types of cyber-attack incidents which to-date have been contained and not material to us. As the result of such incidents, we continue to implement new controls, governance, technical protections and other procedures. We maintain a cyber risk insurance policy, but the costs related to cybersecurity threats or disruptions may not be fully insured.
We have experienced various types of cyberattack incidents which, to date, have been contained and not material to us. As the result of such incidents, we continue to implement new controls, governance, technical protections and other procedures. We maintain a cyber risk insurance policy, but the costs related to cybersecurity threats or disruptions may not be fully insured.
In addition, because the size and scope of real estate sales transactions, the number of countries in which we operate or invest, and the areas we offer services have increased significantly during the past several years, both the difficulty of ensuring compliance with the numerous licensing regimes and the possible loss resulting from noncompliance, have increased.
In addition, because the size and scope of real estate sales transactions, the number of countries in which we operate or invest, and the areas we offer services have increased significantly during the past several years, both the difficulty of ensuring compliance with the numerous licensing requirements and the possible loss resulting from noncompliance, have increased.
We anticipate the potential effects of climate change will increasingly impact the decisions and analysis we make with respect to investments in the properties we manage, as well as those we consider for acquisition or disposition on behalf of clients, since climate change considerations can impact the relative desirability of locations and the cost of operating and insuring properties.
We anticipate the potential effects of climate change will increasingly impact the decisions and analyses we make with respect to investments in the properties we manage, as well as those we consider for acquisition or disposition on behalf of clients, since climate change considerations can impact the relative desirability of locations and the cost of operating and insuring properties.
Operational Risk Factors Operational risk relates to risks arising from systems, processes, people and external events that affect the operation of our businesses. It includes information management and data protection and security, including cyber security; supply chain and business disruption; health and safety; and other risks, including human resources and reputation.
Operational Risk Factors Operational risk relates to risks arising from systems, processes, people and external events that affect the operation of our businesses. It includes information management and data protection and security, including cybersecurity; supply chain and business disruption; health and safety; and other risks, including human resources and reputation.
Health epidemics that affect the general conduct of business in one or more urban areas (including as the result of travel restrictions and the inability to conduct face-to-face meetings) have occurred in the past, for example from influenza or COVID-19, and may occur in the future from other types of outbreak.
Health epidemics that affect the general conduct of business in one or more urban areas (including as the result of travel restrictions and the inability to conduct face-to-face meetings) have occurred in the past, for example from influenza or COVID-19, and may occur in the future from other types of outbreaks.
These systems may fail to operate properly or become disabled as a result of events wholly or partially beyond our control, including disruptions of electrical or communications services, as well as disruptions caused by natural disasters, political instability, terrorist attacks, sabotage, computer viruses, deliberate attempts to disrupt our computer systems through "hacking," "phishing," or other forms of both deliberate or unintentional cyber-attack, or our inability to occupy one or more of our office locations.
These systems may fail to operate properly or become disabled as a result of events wholly or partially beyond our control, including disruptions of electrical or communications services, as well as disruptions caused by natural disasters, political instability, terrorist attacks, sabotage, computer viruses, deliberate attempts to disrupt our computer systems through "hacking," "phishing," or other forms of both deliberate or unintentional cyberattack, or our inability to occupy one or more of our office locations.
Growth in our property management and workplace management businesses and other services related to the growth of outsourcing of corporate real estate services has, to an extent, lessened the seasonality in our revenue and profits during the past several years. 33 Table of Contents WE ARE SUBJECT TO RISKS INHERENT IN MAKING ACQUISITIONS AND ENTERING INTO JOINT VENTURES.
Growth in our Property Management and Workplace Management businesses and other services related to the growth of outsourcing of corporate real estate services has, to an extent, lessened the seasonality in our revenue and profits during the past several years. WE ARE SUBJECT TO RISKS INHERENT IN MAKING ACQUISITIONS AND ENTERING INTO JOINT VENTURES.
We may incur substantial costs and suffer other negative consequences such as liability for damages, reputational harm and significant remediation costs and experience material harm to our business and financial results if we, or vendors or suppliers we engage on behalf of our clients, fall victim to other successful cyber-attacks.
We may incur substantial costs and suffer other negative consequences such as liability for damages, reputational harm and significant remediation costs and experience material harm to our business and financial results if we, or vendors or suppliers we engage on behalf of our clients, fall victim to other successful cyberattacks.
We are continuously hardening our infrastructure built on these technologies, monitoring for threats, and evaluating our capability to respond to any incidents to minimize any impact to our systems, data, or business operations. However, we cannot ensure that these measures will be successful in preventing any cyber-attacks.
We are continuously hardening our infrastructure built on these technologies, monitoring for threats, and evaluating our capability to respond to any incidents to minimize any impact to our systems, data, or business operations. However, we cannot ensure that these measures will be successful in preventing any cyberattacks.
In addition, LaSalle's portfolio is of sufficient size to periodically generate large incentive fees and equity earnings (losses) that significantly influence our earnings and the changes in earnings from one year to the next.
In addition, Investment Management's portfolio is of sufficient size to periodically generate large incentive fees and equity earnings (losses) that significantly influence our earnings and the changes in earnings from one year to the next.
Although we operate globally, we report our results in U.S. dollars, and thus our reported results are impacted by the strengthening or weakening of currencies against the U.S. dollar. Our revenue from outside of the United States approximated 39% of our total revenue for 2024.
Although we operate globally, we report our results in U.S. dollars, and thus our reported results are impacted by the strengthening or weakening of currencies against the U.S. dollar. Our revenue from outside of the United States approximated 38% of our total revenue for 2025.
Our increasing reliance on AI technology introduces various risks, including dependency on the accuracy and reliability of AI-generated outputs, potential for data privacy and security breaches, and challenges in complying with rapidly-evolving AI regulations across multiple jurisdictions.
Our increasing reliance on AI technology introduces risks relating to our dependency on the accuracy and reliability of AI-generated outputs, the potential for data privacy and security breaches, and challenges in complying with rapidly-evolving AI regulations across multiple jurisdictions.
Accordingly, we may not have the authority to direct the management and policies of the joint venture. If a joint venture participant acts contrary to our interests, it could harm our brand, business, results of operations and financial condition. WE ARE SUBJECT TO RISKS INHERENT TO INVESTMENT (INCLUDING CO-INVESTMENT) AND REAL ESTATE INVESTMENT BANKING ACTIVITIES.
Accordingly, we may not have the authority to direct the management and policies of the joint venture. If a joint venture participant acts contrary to our interests, it could harm our brand, business, results of operations and financial condition. 30 Table of Contents WE ARE SUBJECT TO RISKS INHERENT TO INVESTMENT AND REAL ESTATE INVESTMENT BANKING ACTIVITIES.
Sponsoring funds into which retail investors can invest, such as the investment funds sponsored by LaSalle, may increase this risk. 34 Table of Contents Legal, Compliance and Regulatory Risk Factors Legal and compliance risk relates to risks arising from the government and regulatory environment and action, legal proceedings, and compliance with integrity policies and procedures.
Sponsoring funds into which retail investors can invest, such as the investment funds sponsored by Investment Management, may increase this risk. Legal, Compliance and Regulatory Risk Factors Legal and compliance risk relates to risks arising from the government and regulatory environment and action, legal proceedings, and compliance with integrity policies and procedures.
As the sector increasingly embraces data-driven decision-making, our ability to effectively manage and utilize big data and AI tools is crucial for maintaining our competitive edge.
As JLL and the sector increasingly embrace data-driven decision-making, our ability to effectively manage and utilize data and AI tools is crucial for maintaining our competitive edge.
The increased potential for the fraudulent diversion of funds from a "hacking" or "phishing" attack exacerbates these risks. The precautions we take to prevent these types of occurrences, which represent a significant commitment of corporate resources, may nevertheless be ineffective in certain cases.
The increased potential for the fraudulent diversion of funds from a "hacking" or "phishing" attack exacerbates these risks. The precautions we take to prevent these types of occurrences, which represent a significant commitment of corporate resources, may nevertheless be ineffective in certain cases. WE ARE SUBJECT TO ACTUAL OR PERCEIVED CORPORATE CONFLICTS OF INTEREST CLAIMS.
Adverse or unanticipated tax consequences to the funds can negatively impact fund performance, incentive fees and the value of co-investments we have made. We are uncertain as to the ultimate results of these potential changes or what their effects will be on our business. 40 Table of Contents ITEM 1B. UNRESOLVED STAFF COMMENTS None.
Adverse or unanticipated tax consequences to the funds can negatively impact fund performance, incentive fees and the value of co-investments we have made. We are uncertain as to the ultimate results of these potential changes or what their effects will be on our business.
An important part of our business strategy includes investing in (i) real estate, both individually and along with our investment management clients, and (ii) proptech funds and early to mid-stage proptech companies. As of December 31, 2024, we have unfunded commitment obligations of up to $299.6 million to fund future investments across our investment strategies.
One component of our business strategy includes investing in (i) real estate, both individually and along with our investment management clients, and (ii) proptech funds and early to mid-stage proptech companies. As of December 31, 2025, we have unfunded commitment obligations of up to $210.8 million to fund future investments across our investment strategies.
To a much lesser degree, we have occasionally entered into joint ventures to conduct certain businesses or enter new geographies, and we will consider doing so in appropriate situations in the future.
From time to time, we have entered into joint ventures to conduct certain businesses or enter new geographies, and we will consider doing so in appropriate situations in the future.
Our ability to achieve our strategic vision, maintain business continuity, and ensure high-quality client service depends on successfully identifying, attracting, developing, and retaining talent in key positions, as well as maintaining a strong pipeline of successors for important management roles. Failure to do so could disrupt our business, impact revenues, increase costs, and affect staff morale.
Our ability to achieve our strategic vision, maintain business continuity, and ensure high-quality client service depends on successfully identifying, attracting, developing, and retaining talent in key positions, as well as maintaining a strong pipeline of successors for important management roles.
Recent legislative changes in the United States include the 2017 Tax Cuts and Jobs Act and the 2022 Inflation Reduction Act, which have introduced limitations on business-related deductions and increased taxation of foreign earnings in the U.S., and a corporate minimum tax, all of which could increase our future tax expense.
Recent legislative changes in the United States include the 2022 Inflation Reduction Act and the 2025 One Big Beautiful Bill Act, which have introduced limitations on certain business-related deductions, continued taxation of foreign earnings in the U.S., and established a corporate minimum tax, all of which could increase our future tax expense.
Where competitive pressures result in higher levels of potential liability under our contracts, the cost of operational errors and other activities for which we have indemnified our clients will be greater and may not be fully insured. WE ARE EXPOSED TO LEGAL AND REPUTATIONAL RISKS ARISING FROM BREACH OF FIDUCIARY OBLIGATIONS CLAIMS PURSUANT TO CLIENT CONTRACTS.
Where competitive pressures result in higher levels of potential liability under our contracts, the financial impact of operational errors or other matters for which we have indemnified our clients could be significant and may not be fully covered by our insurance. WE ARE EXPOSED TO LEGAL AND REPUTATIONAL RISKS ARISING FROM BREACH OF FIDUCIARY OBLIGATIONS CLAIMS PURSUANT TO CLIENT CONTRACTS.
We face significant competition from other real estate service providers, institutional lenders, insurance companies, investment banking firms, investment managers, accounting firms, technology firms, consulting firms, co-locating providers, temporary space providers and firms providing outsourcing of various types (including technology and building products), any of which may be a global, regional or local firm, and from firms that self-perform their real estate services with in-house capabilities. 32 Table of Contents Many of our competitors are local or regional firms, which may be substantially smaller in size than us but hold a larger share of a specific local market.
We face significant competition from other real estate service providers, institutional lenders, insurance companies, investment banking firms, investment managers, accounting firms, technology firms, consulting firms, co-locating providers, temporary space providers and firms providing outsourcing of various types (including technology and building products), any of which may be a global, regional or local firm, and from firms that self-perform their real estate services with in-house capabilities.
Negative economic conditions and declines in demand for real estate and related services in several markets or in significant markets could have a material adverse effect on our performance driven by (i) a decline in acquisition and disposition activity, (ii) a decline in real estate values and performance, leasing activity and rental rates, (iii) a decline in value of real estate securities, (iv) the cyclicality in the real estate markets and lag in recovery relative to broader markets, or (v) the effect of changes in non-real estate markets. 39 Table of Contents OUR REPUTATION AND BRAND ARE IMPORTANT COMPANY ASSETS; IF WE FAIL TO PROTECT THEM, OUR BUSINESS MAY BE NEGATIVELY IMPACTED.
Negative economic conditions and declines in demand for real estate and related services in several markets or in significant markets could have a material adverse effect on our performance driven by (i) a decline in acquisition and disposition activity, (ii) a decline in real estate values and performance, leasing activity and rental rates, (iii) a decline in value of real estate securities, (iv) the cyclicality in the real estate markets and lag in recovery relative to broader markets, or (v) the effect of changes in non-real estate markets.
Any inability, or perceived inability, to adequately address data privacy and data protection concerns, even if unfounded, or comply with applicable laws, regulations, policies, industry standards, contractual obligations, or other legal obligations (including at newly-acquired companies) could result in additional cost and liability to us or company officials, damage our reputation, inhibit sales, and otherwise adversely affect our business. 28 Table of Contents CONCENTRATIONS OF BUSINESS WITH CORPORATE AND INVESTOR CLIENTS CAUSE INCREASED CREDIT RISK AND GREATER IMPACT FROM THE LOSS OF CERTAIN CLIENTS AND INCREASED RISKS FROM HIGHER LIMITATIONS OF LIABILITY IN CONTRACTS.
Any inability, or perceived inability, to adequately address data privacy and data protection concerns, even if unfounded, or comply with applicable laws, regulations, policies, industry standards, contractual obligations, or other legal obligations (including at newly-acquired companies) could result in additional cost and liability to us or company officials, damage our reputation, inhibit sales, and otherwise adversely affect our business. 25 Table of Contents RISKS RELATING TO SERVING LARGE CLIENTS AND THE TERMS OF OUR CLIENT CONTRACTS.
Failure to adapt to these technologies or leverage them effectively could result in loss of market share and revenues, particularly if we are unable to meet evolving client needs or align our offerings with industry standards and client expectations.
Failure to adapt to these technologies or leverage them effectively could result in loss of market share and revenues, particularly if we are unable to meet evolving client needs or align our offerings with industry standards and client expectations. 27 Table of Contents Our ability to execute our strategy is increasingly dependent on the successful adoption of AI.
The legal and regulatory landscape surrounding AI also is rapidly evolving. Navigating these changes may require significant resources to ensure compliance with both U.S. and non-U.S. laws, potentially impacting our operations and financial performance.
Navigating these changes may require significant resources to ensure compliance with both U.S. and non-U.S. laws, potentially impacting our operations and financial performance.
We are also dependent on long-term client relationships and revenue received for services under various service agreements. In this competitive market, if we are unable to maintain these relationships or are otherwise unable to retain existing clients and develop new clients, our business, results of operations and/or financial condition may be materially adversely affected.
In this competitive market, if we are unable to maintain these relationships or are otherwise unable to retain existing clients and develop new clients, our business, results of operations and/or financial condition may be materially adversely affected.
In conjunction with such policies, we have also implemented certain procedures to evaluate whether existing or potential clients appear on the "Specially Designated Nationals and Blocked Persons List" maintained by OFAC.
In conjunction with such policies, we have also implemented certain procedures to evaluate whether existing or potential clients appear on the "Specially Designated Nationals and Blocked Persons List" maintained by OFAC. However, the complexity and rapid changes in sanctions regimes mean that we may inadvertently engage with sanctioned entities or individuals.
Our employees or suppliers may directly or indirectly engage in unethical, illegal or non-compliant practices related to bribery, corruption, money laundering, fraud, international trade sanctions, modern slavery, violations of applicable data privacy laws, or other acts that constitute a breach of our Code of Ethics.
Penalties for AML violations can be severe, including criminal prosecution of the company and individual employees. 31 Table of Contents Our employees or supply partners may directly or indirectly engage in unethical, illegal or non-compliant practices related to bribery, corruption, money laundering, fraud, international trade sanctions, modern slavery, violations of applicable data privacy laws, or other acts that constitute a breach of our Code of Ethics.
In addition, the fund or entity may be negatively impacted by risks to which they are exposed (some of which we are also exposed to and are discussed elsewhere in this Item). • We will have fluctuations in earnings and cash flow as we recognize gains or losses, and receive cash upon the disposition of investments, the timing of which may be geared toward the benefit of our clients. • We hold many of our investments in subsidiaries with limited liability; however, in certain circumstances, it is possible this limited exposure may be expanded in the future based on, among other things, changes in applicable laws.
In addition, the fund or entity may be negatively impacted by risks to which they are exposed (some of which we are also exposed to and are discussed elsewhere in this Item). • We will have fluctuations in earnings and cash flow as we recognize gains or losses, and receive cash upon the disposition of investments, the timing of which may be geared toward the benefit of our clients.
In some sectors of our business, some of our competitors may have greater financial, technical and marketing resources, larger customer bases, and more established relationships with their customers and suppliers than we have.
Some may be providing outsourced facility management services to sell clients' products that we do not offer. In some sectors of our business, some of our competitors may have greater financial, technical and marketing resources, larger customer bases, and more established relationships with their customers and suppliers than we have.
The global nature of our business, particularly in real estate transactions and investment management, exposes us to the risk of inadvertently facilitating money laundering or terrorist financing. Penalties for AML violations can be severe, including criminal prosecution of the company and individual employees.
The global nature of our business, particularly in real estate transactions and investment management, exposes us to the risk of inadvertently facilitating money laundering or terrorist financing.
Given the inherent risks associated with loan origination and servicing activities, particularly in highly-regulated programs such as Fannie Mae DUS and Freddie Mac Optigo, we maintain underwriting and due diligence processes, compliance procedures, and risk mitigation measures to minimize the likelihood of breaches, though such measures may not always be fully effective in mitigating all risks, especially in the case of breaches tied to the actions of borrowers or third parties, from whom recovery may be limited. 30 Table of Contents Strategic Risk Factors Strategic risk relates to JLL’s future business plans and strategies, including the risks associated with: the global macro-environment in which we operate; mergers and acquisitions and restructuring activities; intellectual property; and other risks, including the demand for our services, competitive threats, technology and innovation, and public policy.
Given the inherent risks associated with loan origination and servicing activities, particularly in highly-regulated programs such as Fannie Mae DUS and Freddie Mac Optigo, we maintain underwriting and due diligence processes, compliance procedures, and risk mitigation measures to minimize the likelihood of breaches, though such measures may not always be fully effective in mitigating all risks, especially in the case of breaches tied to the actions of borrowers or third parties, from whom recovery may be limited.
EXPOSURE TO ADDITIONAL TAX LIABILITIES STEMMING FROM OUR GLOBAL OPERATIONS AND CHANGES IN TAX LEGISLATION, REGULATION AND TAX RATES COULD ADVERSELY AFFECT OUR FINANCIAL RESULTS. We face a variety of risks of increased future taxation on our earnings as a corporate taxpayer in the countries in which we have operations. Moving funds between countries can produce adverse tax consequences.
We face a variety of risks of increased future taxation on our earnings as a corporate taxpayer in the countries in which we have operations. Moving funds between countries can produce adverse tax consequences.
Our goal is to ensure those with whom we work and interact are unharmed by our operations. We have a multi-disciplinary safety management structure, with executive sponsorship, aimed at managing existing and emerging health and safety risks, and achieving continuous improvement.
We have a multi-disciplinary safety management structure, with executive sponsorship, aimed at managing existing and emerging health and safety risks, and achieving continuous improvement.
As a result, we have had longstanding policies and procedures to restrict or prohibit sales of our services into countries subject to embargoes and sanctions, or to countries designated as state sponsors of terrorism.
U.S. laws and regulations govern the provision of products and services to, and of other trade-related activities involving, certain targeted countries and parties. As a result, we have had longstanding policies and procedures to restrict or prohibit sales of our services into countries subject to embargoes and sanctions, or to countries designated as state sponsors of terrorism.
WE MAY FACE CHALLENGES IN RETAINING OUR SENIOR MANAGEMENT, MAINTAINING OUR WORKFORCE CULTURE, AND ATTRACTING AND DEVELOPING QUALIFIED EMPLOYEES. Our success largely depends on the expertise of our senior management team and key personnel who possess extensive knowledge of our business and strategy, as well as colleagues critical to developing and retaining client relationships.
Our success largely depends on the expertise of our senior management team and key personnel who possess extensive knowledge of our business and strategy, as well as colleagues critical to developing and retaining client relationships. The competitive nature of our industry presents ongoing challenges for retaining and attracting skilled personnel with relevant industry experience and knowledge.
Considering the continuing need to provide clients with more comprehensive services on a more productive and cost-efficient basis, we expect acquisition opportunities to continue to emerge.
While we have successfully grown organically and through a series of acquisitions, sourcing and completing acquisitions are complex and sensitive activities. Considering the continuing need to provide clients with more comprehensive services on a more productive and cost-efficient basis, we expect acquisition opportunities to continue to emerge.
We may face liability with respect to environmental issues occurring at properties we manage or occupy, or in which we invest. We may face costs or liabilities under these laws as a result of our role as an on-site property manager or a manager of construction projects.
We may face costs or liabilities under these laws as a result of our role as an on-site property manager or a manager of construction projects.
While we attempt to mitigate the impact of inflation in our client agreements, some client agreements may be entered into on a fixed or guaranteed maximum price basis where our ability to make price adjustments to take into account inflation may be limited.
While we attempt to mitigate the impact of inflation in our client agreements, some client agreements may be entered into on a fixed or guaranteed maximum price basis where our ability to make price adjustments to take into account inflation may be limited. 34 Table of Contents EXPOSURE TO ADDITIONAL TAX LIABILITIES STEMMING FROM OUR GLOBAL OPERATIONS AND CHANGES IN TAX LEGISLATION, REGULATION AND TAX RATES COULD ADVERSELY AFFECT OUR FINANCIAL RESULTS.
Our business faces evolving climate change disclosure requirements, including the recommendations outlined by the Task Force on Climate-related Financial Disclosures (TCFD) and the Corporate Sustainability Reporting Directive (CSRD). Failure to fulfill these obligations, including the proper disclosure of climate-related risks, opportunities, and our approach to managing them, may lead to reputational damage, legal and regulatory sanctions and potential financial consequences.
A failure to fulfill these obligations, including the proper disclosure of climate-related risks, opportunities, and our approach to managing them, may lead to reputational damage, legal and regulatory sanctions and potential financial consequences.
The sheer size of our company -with over 112,000 employees across more than 80 countries - makes change-management and responsiveness challenging. Any global change is a complex undertaking as we are required to comply with the numerous and often contradictory local regulatory environments while achieving the objective of the change.
The sheer size and footprint of our company - with over 113,000 employees across more than 80 countries - makes change-management and responsiveness challenging. Any global change is a complex undertaking.
We may also need to become increasingly productive and efficient in the way we deliver services, or with respect to the cost structure supporting our businesses, which may in turn require more innovative uses of technology as well as data gathering and data mining.
We may also need to become increasingly productive and efficient in the way we deliver services, or with respect to the cost structure supporting our businesses, which may in turn require more innovative uses of technology as well as data gathering and data mining. 29 Table of Contents Our industry has continued to consolidate, and there is an inherent risk competitive firms may be more successful than we are at growing through merger and acquisition activity.
Our inability to detect unauthorized use (for example, by current or former employees) or take appropriate or timely steps to enforce our intellectual property rights may have an adverse effect on our business. 31 Table of Contents We cannot be sure the intellectual property we may use in the course of operating our business or the services we offer to clients do not infringe on the rights of third parties.
Our inability to detect unauthorized use (for example, by current or former employees) or take appropriate or timely steps to enforce our intellectual property rights may have an adverse effect on our business.
In addition, the potential exists for significant legislative policy change in the taxation of multinational corporations, as has recently been the subject of the “Pillar One” and “Pillar Two” initiatives of the Organization for Economic Co-operation and Development, the European Union Anti-Tax Avoidance Directives, and legislation enacted or to be enacted pursuant to those initiatives.
In addition, many countries have enacted significant legislative policy changes in the taxation of multinational corporations, inspired by the “Pillar One” and “Pillar Two” initiatives of the Organization for Economic Co-operation and Development and the European Union Anti-Tax Avoidance Directives.
WITH RESPECT TO LOANS WE ORIGINATE AND SERVICE, WE FACE THE RISK OF POTENTIAL BREACHES OF REPRESENTATIONS AND WARRANTIES, WHICH MAY HAVE A MATERIAL IMPACT ON OUR BUSINESS.
Our success depends on our continued ability to advise clients effectively, evolve our service offerings, and help investors navigate the changing risk and opportunity profile of commercial real estate. WITH RESPECT TO LOANS WE ORIGINATE AND SERVICE, WE FACE THE RISK OF POTENTIAL BREACHES OF REPRESENTATIONS AND WARRANTIES, WHICH MAY HAVE A MATERIAL IMPACT ON OUR BUSINESS.
Failure to adequately prevent, monitor, and detect such behavior could lead to significant reputational damage, regulatory consequences, and adversely impact our operations, profitability and enterprise value. Changes in legal and regulatory requirements can impact our ability to engage in business in certain jurisdictions or increase the cost of doing so.
Failure to adequately prevent, monitor, and detect such behavior could lead to significant reputational damage, regulatory consequences, and adversely impact our operations, profitability and enterprise value.
OUR HEALTH, SAFETY, SECURITY AND ENVIRONMENT PROGRAM, POLICIES, AND PROCEDURES (INCLUDING THOSE OF OUR CONTRACTORS AND SUBCONTRACTORS) MAY NOT BE ADEQUATE. Health, safety and security is a prominent part of our purpose and values, which is why we have taken steps to implement what we believe are strong operational health and safety controls.
Health, safety and security is a prominent part of our purpose and values, which is why we have taken steps to implement what we believe are strong operational health and safety controls. Our goal is to ensure those with whom we work and interact are unharmed by our operations.
Our acquisition activity increases these risks, because we must successfully transfer licenses of acquired entities and their staff, as appropriate. Licensing requirements may also preclude us from engaging in certain types of transactions or change the way in which we conduct business or the cost of doing so.
Licensing requirements may also preclude us from engaging in certain types of transactions or change the way in which we conduct business or the cost of doing so.
If our credit ratings are downgraded or other negative action is taken, by one or more rating agencies, this could adversely affect our access to funding sources, the cost and other terms of obtaining funding as well as our overall financial condition, operating results and cash flow. 38 Table of Contents ADVERSE DEVELOPMENTS IN THE CREDIT MARKETS MAY IMPACT OUR ABILITY TO OBTAIN NEW CREDIT COMMITMENTS ON FAVORABLE TERMS AND INCREASE OUR EXPOSURE TO FINANCIAL RISKS OF COUNTERPARTIES WITH WHOM WE CONDUCT BUSINESS.
If our credit ratings are downgraded or other negative action is taken, by one or more rating agencies, this could adversely affect our access to funding sources, the cost and other terms of obtaining funding as well as our overall financial condition, operating results and cash flow. ITEM 1B. UNRESOLVED STAFF COMMENTS None.
If we fail to maintain our licenses or conduct regulated activities without a license or in contravention of applicable regulations, we may be required to pay fines, return commissions or investment capital from investors or may have a given license suspended or revoked.
If we fail to maintain our licenses or conduct licensed activities without a license, we may be required to pay fines, return commissions or investment capital from investors or may have a given license suspended or revoked. Our acquisition activity increases these risks, because we must successfully transfer licenses of acquired entities and their staff, as appropriate.
Laws and regulations applicable to our business, both in the United States and in other countries, may change in ways that materially increase the costs of compliance. Particularly in emerging markets, there can be relatively less transparency around the standards and conditions under which licenses are granted, maintained, or renewed.
Licensing requirements in various jurisdictions may change, increasing compliance costs. Particularly in emerging markets, there can be relatively less transparency around the standards and conditions under which licenses are granted, maintained, or renewed.
Defaults by borrowers can also have a negative impact on investment performance. General Risk Factors OUR BUSINESS IS SUBJECT TO GENERAL ECONOMIC CONDITIONS AND REAL ESTATE MARKET CONDITIONS AS WELL AS SUPPLY-CHAIN PRESSURES. The success of our business is significantly related to general economic conditions.
A failure in any of these areas could impact our investment grade credit rating, reduce shareholder equity, and harm our financial performance. General Risk Factors OUR BUSINESS IS SUBJECT TO GENERAL ECONOMIC CONDITIONS AND REAL ESTATE MARKET CONDITIONS AS WELL AS SUPPLY-CHAIN PRESSURES. The success of our business is significantly related to general economic conditions.
The legal requirements of U.S. statutes may also conflict with local legal requirements in a particular country. Avoiding regulatory pitfalls as a result of conflicting laws will continue to be a key focus as non-U.S. statutory law and court decisions create more ambiguity.
Avoiding regulatory pitfalls as a result of conflicting laws will continue to be a key focus as non-U.S. statutory law and court decisions create more ambiguity. The jurisdictional reach of laws may be unclear as well, such as when laws in one country purport to regulate the behavior of our subsidiaries or affiliates operating in another country.
Regardless of the ultimate merits of these claims, the allegations themselves can cause reputational damage and can be expensive to defend in terms of counsel fees and otherwise. 29 Table of Contents IMPACT OF HYBRID WORK, LOWER OFFICE REAL ESTATE OCCUPANCY RATES, AND EVOLVING REAL ESTATE TRENDS COULD ADVERSELY AFFECT OUR BUSINESS AND IMPACT OUR TRADITIONAL SERVICE OFFERINGS.
Regardless of the ultimate merits of these claims, the allegations themselves can cause reputational damage and can be expensive to defend in terms of counsel fees and otherwise. EVOLVING WORKPLACE STRATEGIES AND REAL ESTATE TRENDS, INCLUDING VARYING OFFICE REAL ESTATE OCCUPANCY RATES IN SOME GEOGRAPHIC MARKETS, MAY AFFECT DEMAND FOR OUR SERVICES AND CLIENT PORTFOLIOS.
These anti-corruption laws generally prohibit companies and their intermediaries from making improper payments or providing anything of value to improperly influence government officials or private individuals for the purpose of obtaining or retaining a business advantage. Such prohibitions exist regardless of whether those practices are legal or culturally expected in a particular jurisdiction.
Our global operations must comply with all applicable anti-corruption laws, including the U.S. Foreign Corrupt Practices Act and the UK Bribery Act. These anti-corruption laws generally prohibit companies and their intermediaries from making improper payments or providing anything of value to improperly influence government officials or private individuals for the purpose of obtaining or retaining a business advantage.
However, the complexity and rapid changes in sanctions regimes mean that we may inadvertently engage with sanctioned entities or individuals. 35 Table of Contents Changes in governments or majority political parties may result in significant changes in enforcement priorities with respect to employment, health and safety, tax, securities disclosure and other regulations, which, in turn, could negatively affect our business.
Changes in governments or majority political parties may result in significant changes in enforcement priorities with respect to employment, health and safety, tax, securities disclosure and other regulations, which, in turn, could negatively affect our business. WE ARE SUBJECT TO COMPLEX AND EVOLVING LICENSING REQUIREMENTS. Several of our business operations are subject to requirements in various jurisdictions to maintain licenses.
Additionally, as climate-related regulations and reporting requirements continue to evolve globally, we may face challenges in maintaining compliance across all jurisdictions in which we operate, potentially leading to increased operational costs and complexity in our reporting process. 37 Table of Contents Financial Risk Factors Financial risk relates to our ability to meet financial obligations and mitigate exposure to broad market risks, including volatility in foreign currency exchange rates and interest rates; credit risk; and liquidity risk, including risk related to our credit ratings and our availability and cost of funding.
Additionally, as climate-related regulations and reporting requirements continue to evolve globally, we may face challenges in maintaining compliance across all jurisdictions in which we operate, potentially leading to increased operational costs and complexity in our reporting process.
It also may be difficult to defend against the arbitrary revocation of a license in a jurisdiction where the rule of law is less well developed.
It also may be difficult to defend against the arbitrary revocation of a license in a jurisdiction where the rule of law is less well developed. 32 Table of Contents As a licensed real estate service provider and advisor in various jurisdictions, we and our licensed employees may be subject to various licensing obligations that vary by jurisdiction.
Failure to adapt to changing environmental standards and adequately manage our carbon footprint may also expose us to potential disruptions in supply chains, constraints on resource availability, and limitations on access to certain markets. Failure to address these risks could have adverse consequences on our financial condition, operations, and long-term sustainability.
Additionally, failure to effectively reduce carbon emissions may result in negative public perception, reduced client demand, and potential loss of competitive advantage. Failure to adapt to changing environmental standards and adequately manage our carbon footprint may also expose us to potential disruptions in supply chains, constraints on resource availability, and limitations on access to certain markets.
As technology and market demands shift, we recognize the need to continuously upskill and reskill our workforce to maintain our competitiveness and efficiency. Failing to address this need promptly could affect our ability to adapt to changing market conditions. Clearly defining and championing our organizational values and expectations is crucial for fostering employee engagement and reducing turnover.
Failure to do so could disrupt our business, impact revenues, increase costs, and affect staff morale. 23 Table of Contents As technology and market demands shift, we recognize the need to continuously upskill and reskill our workforce to maintain our competitiveness and efficiency. Failing to address this need promptly could affect our ability to adapt to changing market conditions.
Our compliance program may not prevent violations of such laws, which could result in criminal or civil sanctions and have an adverse effect on our reputation, business and results of operations and financial condition. U.S. laws and regulations govern the provision of products and services to, and of other trade-related activities involving, certain targeted countries and parties.
Such prohibitions exist regardless of whether those practices are legal or culturally expected in a particular jurisdiction. Our compliance program may not prevent violations of such laws, which could result in criminal or civil sanctions and have an adverse effect on our reputation, business, and results of operations and financial condition.
REAL ESTATE SERVICES AND INVESTMENT MANAGEMENT MARKETS ARE HIGHLY COMPETITIVE, WHICH COULD MAKE IT DIFFICULT FOR US TO MAINTAIN OUR MARKET SHARE, GROWTH RATE AND PROFITABILITY.
While we actively monitor these global developments and adapt our strategies to mitigate their impact, a significant escalation of conflict or trade tensions could materially harm our operations, financial performance, and reputation. REAL ESTATE SERVICES AND INVESTMENT MANAGEMENT MARKETS ARE HIGHLY COMPETITIVE, WHICH COULD MAKE IT DIFFICULT FOR US TO MAINTAIN OUR MARKET SHARE, GROWTH RATE AND PROFITABILITY.
Insufficient proactive and reactive organizational agility to industry trends and other external factors may negatively impact our operational results and cause loss of market share and negatively impact the differentiated services we provide as compared to our competitors. Lack of responsiveness in a timely fashion could result in negative financial impact and reputational damage.
Insufficient proactive and reactive organizational agility and responsiveness to industry trends and other external factors may negatively impact our results, reputation, and the differentiated services we provide as compared to our competitors. WE MAY FACE CHALLENGES IN RETAINING OUR SENIOR MANAGEMENT, MAINTAINING OUR WORKFORCE CULTURE, AND ATTRACTING AND DEVELOPING QUALIFIED EMPLOYEES.
The value and premium status of our brand is one of our most important assets.
OUR REPUTATION AND BRAND ARE IMPORTANT COMPANY ASSETS; IF WE FAIL TO PROTECT THEM, OUR BUSINESS MAY BE NEGATIVELY IMPACTED. The value and premium status of our brand is one of our most important assets.
JLL has committed to reduce absolute scope 1, 2 and 3 emissions by 51% by 2030, and 95% by 2040, from a 2018 base year. If we fail to meet our carbon reduction commitments or comply with evolving environmental regulations this may expose us to risks that could have a significant impact on our business operations and financial performance.
If we fail to meet our carbon reduction commitments or comply with evolving environmental regulations this may expose us to risks that could have a significant impact on our business operations and financial performance. These risks encompass reputational damage, potential legal and regulatory penalties, litigation, increased compliance costs, and diminished access to financing and investment opportunities.
GEOPOLITICAL VOLATILITY AND TRADE TENSIONS, INCLUDING THE IMPOSITION OF TARIFFS, COULD ADVERSELY AFFECT OUR BUSINESS. As a global company operating in over 80 countries with varying degrees of political and economic stability and transparency, we are exposed to risks arising from geopolitical volatility and conflicts.
As a global company operating in over 80 countries, we are inherently exposed to risks arising from geopolitical volatility, conflicts, and shifting international relations.
This may include claims with respect to conflicts of interest where we are acting, or are perceived to be acting, for two or more clients with potentially contrary interests. 36 Table of Contents WE FACE RISKS RELATING TO ENVIRONMENTAL AND CLIMATE MATTERS, INCLUDING DELIVERING ON OUR 2030 AND 2040 CARBON REDUCTION COMMITMENTS AND COMPLYING WITH EVOLVING CLIMATE CHANGE DISCLOSURE REQUIREMENTS.
WE FACE RISKS RELATING TO ENVIRONMENTAL AND CLIMATE MATTERS, INCLUDING DELIVERING ON OUR 2030 AND 2040 CARBON REDUCTION COMMITMENTS AND COMPLYING WITH EVOLVING CLIMATE-RELATED DISCLOSURE REQUIREMENTS. We may face liability with respect to environmental issues occurring at properties we manage or occupy, or in which we invest.
However, we do obtain representations and warranties, as well as indemnities, from the licensors in order to mitigate this risk. We may have infringement claims asserted against us or against our clients. These claims may harm our reputation, cost us money and prevent us from offering some services.
We cannot be sure the intellectual property we may use in the course of operating our business or the services we offer to clients do not infringe on the rights of third parties. However, we do obtain representations and warranties, as well as indemnities, from the licensors in order to mitigate this risk.
To the extent this occurs, our liability could exceed the amount we have invested. • We make investments in many countries, and this presents tax, political/legislative, currency, and other risks as described elsewhere in this Item. In certain situations, we raise funds from outside investors where we are the sponsor of real estate investments, developments, or projects.
In certain situations, we raise funds from outside investors where we are the sponsor of real estate investments, developments, or projects.
The competitive nature of our industry presents ongoing challenges for retaining and attracting skilled personnel with relevant industry experience and knowledge. As we continue to grow and expand our workforce, these challenges may intensify. 26 Table of Contents Regional and national labor policies, which can be difficult to predict, may indirectly impact our ability to retain and attract key personnel.
Regional and national labor policies, which can be difficult to predict, may indirectly impact our ability to retain and attract key personnel.
Some of our competitors have expanded the services they offer in an attempt to gain additional business. Some may be providing outsourced facility management services to sell clients' products that we do not offer.
Many of our competitors are local or regional firms, which may be substantially smaller in size than us but hold a larger share of a specific local market. Some of our competitors have expanded the services they offer in an attempt to gain additional business.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Audit and Risk Committee, its Cybersecurity Subcommittee, and management’s Cyber Governance Committee receive regular reports on our information security program, including top risks, strategy, controls, incident response plans, metrics, and training protocols. Reports are also shared with the full Board of Directors.
Biggest changeIt provides an additional level of oversight for cybersecurity policies and serves as a formal channel to communicate cybersecurity decisions with our Global Executive Board. The Audit and Risk Committee, its Cybersecurity Subcommittee, and management’s Cybersecurity Governance Committee receive regular reports on our information security program, including top risks, strategy, controls, improvement projects, metrics, and training protocols.
We maintain a cyber risk insurance policy, but costs related to cybersecurity threats or disruptions may not be fully insured. We acknowledge that successful cyberattacks could result in substantial costs, liability, reputational harm, and significant remediation expenses. 41 Table of Contents
We maintain a cyber risk insurance policy, but costs related to cybersecurity threats or disruptions may not be fully insured. We acknowledge that successful cyberattacks could result in substantial costs, liability, reputational harm and significant remediation expenses.
Further enhancing our cybersecurity governance, in 2024, the Cybersecurity Subcommittee of the Audit and Risk Committee was formally established. This subcommittee generally meets on a quarterly basis and regularly reports to the Audit and Risk Committee, providing an additional layer of specialized oversight on cybersecurity matters.
Further enhancing our cybersecurity governance, in 2024, the Board formally established the Cybersecurity Subcommittee of the Audit and Risk Committee. This subcommittee meets on a quarterly basis with management and regularly reports to the Audit and Risk Committee, providing an additional layer of specialized oversight on cybersecurity and information technology matters.
Like other companies with a large technology footprint and high-profile client base, we are regularly subject to cyberattacks. While certain attacks have been successful, thus far none have had a material impact on our or our clients' operations. In addition, we acknowledge that cybersecurity threats could significantly impact our business strategy, operations, or financial condition.
ITEM 1C. CYBERSECURITY Risk Management and Strategy Like other companies with a large technology footprint and high-profile client base, we are regularly subject to cyberattacks. While certain attacks against us have been successful, thus far none have had a material impact on our or our clients' operations.
Our Management and the Board of Directors provide significant oversight of cybersecurity risks. In May 2022, the Board expanded the Audit Committee’s charter to include cybersecurity and information technology readiness.
For additional information on material cybersecurity risks, refer to our discussion in the "Operational Risk Factors" section of Item 1A, Risk Factors, of this report. Governance Our Management and the Board of Directors provide significant oversight of cybersecurity risks. Since 2022, the Board expanded the Audit and Risk Committee’s charter to include cybersecurity and information technology readiness.
Our cybersecurity strategy implements layered controls aligned with the National Institute of Standards and Technology (NIST) cybersecurity framework to minimize both the likelihood and potential impact of cybersecurity events. Our CISO, who holds advanced qualifications and has extensive experience in cybersecurity, leads a global team of cybersecurity professionals.
Our cybersecurity strategy has implemented layered technical and administrative controls, which are aligned with the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework (“CSF”) to minimize both the frequency and severity of cybersecurity events.
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ITEM 1C. CYBERSECURITY Our cybersecurity program, led by our Global Chief Information Officer (“CIO”) and Chief Information Security Officer (“CISO”), is designed to protect and preserve the confidentiality, integrity and availability of all information and systems owned by us or in our care.
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To respond to the threat of cybersecurity breaches and cybersecurity attacks, we have developed and maintain a comprehensive global cybersecurity program. The program utilizes internal and external assessments to continually improve our overall cybersecurity posture and manage technology risk.
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The Audit and Risk Committee of our Board of Directors oversees cybersecurity, as outlined in its charter and disclosed in our proxy statement.
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Specific to our external assessments, we routinely engage third-party consultants to assess our overall cybersecurity maturity and improve our ability to identify and manage material risks stemming from a cybersecurity event.
Removed
In addition, cybersecurity is reviewed as part of our enterprise risk management program led by our Director of Enterprise Risk Management, which assesses our significant enterprise risks, provides a summary of those risks and primary mitigations, identifies control improvement projects for our significant risks, and regularly reports on the progress of control improvement projects for those risks to our GEB and the Audit and Risk Committee of our Board of Directors.
Added
Additionally, as a material cybersecurity incident can manifest from outside of the organization, JLL leverages security assessments and continuous monitoring to evaluate the security risk of third-party service providers. 36 Table of Contents In 2023, we established an executive management group responsible for determining the materiality of cybersecurity incidents and ensuring proper disclosure if required.
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Our CISO reports to our CIO who is responsible for the Company's technology, data and information management strategy, and brings over two decades of relevant experience to the role. We engage third-party consultants for assessing, identifying and managing material cybersecurity risks, including those associated with certain third-party providers.
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While we have not experienced any material cybersecurity events to date, we acknowledge cybersecurity threats could significantly impact our business strategy, operations, or financial condition. In our commitment to reducing the frequency and severity of a cybersecurity event, we maintain a cybersecurity incident response plan and regularly conduct tabletop exercises to bolster our preparedness.
Removed
We maintain a cyber incident response plan and regularly conduct simulations and tabletop exercises. In 2023, we established an executive management group responsible for determining the materiality of cybersecurity incidents and necessary disclosures. This group consists of our CISO, Chief Financial Officer, Chief Legal Officer and Chief Accounting Officer.
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JLL's cybersecurity function has a risk management framework for cyber-related risks, detailing controls and improvements. The cybersecurity function provides regular updates to our Chief Risk Officer on cybersecurity threats, incidents, and JLL’s prevention, detection, mitigation, and remediation efforts for managing these risks.
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As such, we continue to enhance our infrastructure, monitor for threats, and evaluate our response capabilities as we deploy additional mobile and cloud technologies. Also refer to our discussion of material cybersecurity risks in the "Operational Risk Factors" section of Item 1A, Risk Factors , of this report.
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Our Enterprise Risk Management (“ERM”) program is designed to evaluate and monitor significant risks, including cybersecurity, and places them in JLL's overall risk framework. Our Global Executive Board and Audit and Risk Committee receive regular reporting on cyber risks and mitigation from both ERM and the cybersecurity function.
Added
Management’s role in executing our cybersecurity strategy is led by our Global Chief Information Officer (“CIO”) and our Chief Information Security Officer (“CISO”) both with over twenty years’ experience in large institutions.
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Our CISO leads our cybersecurity program, holds a master's degree in business administration and has over twenty years of relevant experience, including cybersecurity and enterprise security leadership roles in Financial Services and within the Department of Defense. Our CISO reports to our CIO who is responsible for the development and implementation of our technology, data and information management strategy.
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Our CIO's educational background includes a bachelor's degree in mechanical engineering and a master's degree in industrial engineering – operations research, providing a strong foundation for work in technology, data management, data science and analytics. Management’s Cybersecurity Governance Committee, established in 2022, comprises senior executives representing several business segments and corporate functions.
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Reports are also shared with the full Board of Directors.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeITEM 2. PROPERTIES Our principal corporate holding company headquarters is located at 200 East Randolph Street, Chicago, Illinois, where we currently occupy approximately 138,000 square feet of office space under a lease that expires in May 2032. Our regional headquarters for our Americas, EMEA and Asia Pacific businesses are located in Chicago, London and Singapore, respectively.
Biggest changeITEM 2. PROPERTIES Our principal corporate holding company headquarters is located at 200 East Randolph Street, Chicago, Illinois, where we currently occupy approximately 138,000 square feet of office space under a lease that expires in May 2032.
Removed
We have 310 corporate offices worldwide located in most major cities and metropolitan areas as follows: 138 offices in 9 countries in the Americas (including 112 in the United States), 94 offices in 23 countries in EMEA, and 78 offices in 15 countries in Asia Pacific.
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Our regional 37 Table of Contents employee hubs for our (i) Americas, (ii) Europe, Middle East and Africa (EMEA) and (iii) Asia Pacific businesses are located in Chicago, London and Singapore, respectively.
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As of December 31, 2025, we have corporate offices in the following geographical regions: Corporate Offices Americas 138 EMEA 102 Asia Pacific 78 Total 318 Our corporate offices may serve multiple business segments. Therefore, to prevent double-counting, we have presented the office totals above by geographic region rather than by business segment.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeAlthough the ultimate liability for these matters cannot be determined, based upon information currently available, we believe the ultimate resolution of such claims and litigation will not have a material adverse effect on our financial position, results of operations, or liquidity. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 42 Table of Contents PART II
Biggest changeAlthough the ultimate liability for these matters cannot be determined, based upon information currently available, we believe the ultimate resolution of such claims and litigation will not have a material adverse effect on our financial position, results of operations or liquidity. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 38 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table provides information about our purchases of equity securities that are registered by us pursuant to Section 12 of the Exchange Act during the quarter ended December 31, 2024: Period Total number of shares purchased Weighted average price paid per share Total number of shares purchased as part of publicly announced plan Approximate dollar value of shares that may yet be purchased under the plan (in millions) October 1, 2024 - October 31, 2024 25,155 $ 266.34 25,155 November 1, 2024 - November 30, 2024 25,322 $ 268.45 25,322 December 1, 2024 - December 31, 2024 24,768 $ 266.56 24,768 $ 1,013.2 Total 75,245 75,245 Dividends We did not declare or pay any dividends in 2024 or 2023.
Biggest changeThe following table provides information about our purchases of equity securities that are registered by us pursuant to Section 12 of the Exchange Act during the quarter ended December 31, 2025: Period Total number of shares purchased Weighted average price paid per share Total number of shares purchased as part of publicly announced plan Approximate dollar value of shares that may yet be purchased under the plan (in millions) October 1, 2025 - October 31, 2025 77,919 $ 300.31 77,919 November 1, 2025 - November 30, 2025 90,175 $ 305.48 90,175 December 1, 2025 - December 31, 2025 88,200 $ 333.20 88,200 $ 801.7 Total 256,294 256,294 Dividends We did not declare or pay any dividends in 2025 or 2024.
(CIGI), a global commercial real estate services company traded in the U.S., and 4) Savills plc (SVS.L), a real estate services company traded on the London Stock Exchange. The following graph assumes the value of the investment in JLL's common stock, the S&P 500 Index, and the peer group (including reinvestment of dividends) was $100 on December 31, 2019.
(CIGI), a global commercial real estate services company traded in the U.S., and 4) Savills plc (SVS.L), a real estate services company traded on the London Stock Exchange. The following graph assumes the value of the investment in JLL's common stock, the S&P 500 Index, and the peer group (including reinvestment of dividends) was $100 on December 31, 2020.
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters. 43 Table of Contents Comparison of Cumulative Total Shareholder Return The following graph compares the cumulative 5-year total return to shareholders of JLL's common stock relative to the cumulative total returns of the S&P 500 Index, and a customized peer group comprising: 1) CBRE Group Inc.
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters. 39 Table of Contents Comparison of Cumulative Total Shareholder Return The following graph compares the cumulative 5-year total return to shareholders of JLL's common stock relative to the cumulative total returns of the S&P 500 Index, and a customized peer group comprising: 1) CBRE Group Inc.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed for trading on the NYSE under the symbol "JLL." As of February 5, 2025, there were over 350 shareholders of record of our common stock and more than 150,000 additional street name holders whose shares were held of record by banks, brokers and other financial institutions.
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed for trading on the NYSE under the symbol "JLL." As of February 5, 2026, there were over 300 shareholders of record of our common stock and more than 170,000 additional street name holders whose shares were held of record by banks, brokers and other financial institutions.
Share Repurchases During the year ended December 31, 2024, we repurchased 373,127 shares for $80.4 million, compared with 410,260 shares repurchased for $62.0 million in 2023.
Share Repurchases During the year ended December 31, 2025, we repurchased approximately 747,500 shares for $211.5 million, compared with approximately 373,100 shares repurchased for $80.4 million in 2024.
December 31, 2019 2020 2021 2022 2023 2024 JLL $ 100 $ 85 $ 154 $ 92 $ 108 $ 145 S&P 500 100 116 148 119 148 182 Peer Group 100 98 169 116 142 194 ITEM 6. [Reserved] 44 Table of Contents
December 31, 2020 2021 2022 2023 2024 2025 JLL $ 100 $ 182 $ 107 $ 127 $ 171 $ 227 S&P 500 100 127 102 127 157 182 Peer Group 100 169 115 140 190 232 ITEM 6. [Reserved] 40 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeChanges in AUM are detailed below (in billions): Beginning balance (December 31, 2023) $ 89.0 Asset acquisitions/takeovers 4.6 Asset dispositions/withdrawals (5.3) Valuation changes (1.3) Foreign currency translation 2.4 Change in uncalled committed capital and cash held (0.6) Ending balance (December 31, 2024) $ 88.8 61 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash Flows from Operating Activities Operating activities provided $785.3 million of cash in 2024, compared with $575.8 million provided in 2023.
Biggest changeChanges in AUM are detailed in the table below (in billions): Beginning balance (December 31, 2024) $ 88.8 Asset acquisitions/takeovers 5.9 Asset dispositions/withdrawals (8.7) Valuation changes 1.8 Foreign currency translation 0.1 Change in uncalled committed capital and cash held (1.5) Ending balance (December 31, 2025) $ 86.4 56 Table of Contents Software and Technology Solutions % Change Year Ended December 31, Change in in Local ($ in millions) 2025 2024 U.S. dollars Currency Revenue $ 232.3 226.3 6.0 3 % 2 % Platform compensation and benefits $ 188.1 194.3 (6.2) (3) % (3) % Platform operating, administrative and other 57.7 47.9 9.8 20 20 Depreciation and amortization 26.6 19.4 7.2 37 37 Segment platform operating expenses 272.4 261.6 10.8 4 4 Gross contract costs 2.8 5.5 (2.7) (49) (49) Segment operating expenses $ 275.2 267.1 8.1 3 % 3 % Adjusted EBITDA $ (14.2) (19.6) 5.4 28 % 25 % The increase in Software and Technology Solutions revenue reflected double-digit growth in software outpacing declines in technology solutions, the result of lower activity associated with large existing clients.
Equity earnings may vary substantially from period to period for a variety of reasons, including as a result of (i) valuation increases (decreases) on investments reported at fair value, (ii) gains (losses) on asset dispositions and (iii) impairment charges.
Equity earnings/losses may vary substantially from period to period for a variety of reasons, including as a result of (i) valuation increases (decreases) on investments reported at fair value, (ii) gains (losses) on asset dispositions and (iii) impairment charges.
For dispositions, we may also incur such incremental costs during the disposition process and these costs could have an adverse impact on net income. Transaction-Based Revenues and Equity Earnings Transaction-based revenues are impacted by the size and timing of our clients' transactions.
For dispositions, we may also incur such incremental costs during the disposition process and these costs could have an adverse impact on net income. Transaction-Based Revenues and Equity Earnings/Losses Transaction-based revenues are impacted by the size and timing of our clients' transactions.
MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated net cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets segment.
MSR gains and corresponding MSR intangible assets are calculated as the present value of estimated net cash flows over the estimated mortgage servicing periods. The above activity is reported entirely within Revenue of the Capital Markets Services segment.
In circumstances where the NAV provided by the investee has a reporting date different than ours or when the NAV is not calculated consistent with U.S. GAAP measurement principles, we adjust the NAV accordingly. For JLL Technologies investments in proptech companies, we primarily estimate the fair value based on the per-share pricing.
In circumstances where the NAV provided by the investee has a reporting date different than ours or when the NAV is not calculated consistent with U.S. GAAP measurement principles, we adjust the NAV accordingly. For investments in proptech companies, we primarily estimate the fair value based on the per-share pricing.
These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following. (i) Adjusted EBITDA attributable to common shareholders ("Adjusted EBITDA") and (ii) Percentage changes against prior periods presented on a local currency basis.
These measures are believed to be useful to investors and other external stakeholders as supplemental measures of core operating performance and include the following: • Adjusted EBITDA attributable to common shareholders ("Adjusted EBITDA") and • Percentage changes against prior periods, presented on a local currency basis.
Interest on employee loans, net of forgiveness reflects interest accrued on employee loans less the amount of accrued interest forgiven. Certain employees (predominantly in Leasing and Capital Markets) receive cash payments structured as loans, with interest. Employees earn forgiveness of the loan based on performance, generally calculated as a percentage of revenue production.
Interest on employee loans, net of forgiveness reflects interest accrued on employee loans less the amount of accrued interest forgiven. Certain employees (predominantly in Leasing Advisory and Capital Markets Services) receive cash payments structured as loans, with interest. Employees earn forgiveness of the loan based on performance, generally calculated as a percentage of revenue production.
As of December 31, 2024, we have therefore not provided for withholding tax, dividend distribution tax, capital gains taxes, or other taxes which could arise upon such distribution. We believe our policy of permanently reinvesting earnings of foreign subsidiaries does not significantly impact our liquidity.
As of December 31, 2025, we have therefore not provided for withholding tax, dividend distribution tax, capital gains taxes, or other taxes which could arise upon such distribution. We believe our policy of permanently reinvesting earnings of foreign subsidiaries does not significantly impact our liquidity.
Discussions of results for the year ended December 31, 2022 and comparisons between 2023 and 2022 results can be found in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2023 .
Discussions of results for the year ended December 31, 2023 and comparisons between 2024 and 2023 results can be found in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended December 31, 2024 .
First, we invest in certain real estate ventures that primarily own and operate commercial real estate, historically through co-investments in funds that LaSalle establishes in the ordinary course of business for its clients. These investments include non-controlling ownership interests generally ranging from less than 1% to 10% of the respective ventures.
First, we invest in certain real estate ventures that primarily own and operate commercial real estate, historically through co-investments in funds that Investment Management establishes in the ordinary course of business for its clients. These investments include non-controlling ownership interests generally ranging from less than 1% to 10% of the respective ventures.
Refer to Note 4, Business Combinations, Goodwill and Other Intangible Assets, of the Notes to the Consolidated Financial Statements, included in Item 8, for further information on business acquisitions. Repatriation of Foreign Earnings Based on our historical experience and future business plans, we do not expect to repatriate our foreign source earnings to the U.S.
Refer to Note 4, Business Combinations, Goodwill and Other Intangible Assets, of the Notes to the Consolidated Financial Statements, included in Item 8, for further information on business acquisitions. 59 Table of Contents Repatriation of Foreign Earnings Based on our historical experience and future business plans, we do not expect to repatriate our foreign source earnings to the U.S.
For all investments reported at fair value, other than such investments where the measurement alternative has been elected, our investment is increased or decreased each reporting period by the difference between the fair value of the investment and the carrying value as of the balance sheet date.
For all investments reported at fair value, other than such investments where the measurement alternative has been elected, our investment is increased or decreased each reporting period by the difference between the fair value of the investment and 42 Table of Contents the carrying value as of the balance sheet date.
Restructuring and acquisition charges primarily consist of (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes, (ii) acquisition, transaction and integration-related charges, including non-cash fair value adjustments to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets and (iii) other restructuring, including lease exit charges.
Restructuring and acquisition charges primarily consist of (i) severance and employment-related charges, including those related to external service providers, incurred in conjunction with a structural business shift, which can be represented by a notable change in headcount, change in leadership or transformation of business processes; (ii) acquisition, transaction and integration-related charges, including fair value adjustments, which are generally non-cash in the periods such adjustments are made, to assets and liabilities recorded in purchase accounting such as earn-out liabilities and intangible assets; and (iii) other restructuring, including lease exit charges.
Such losses are similar to the equity investment-related losses included in equity earnings/losses for JLL Technologies' investments and are therefore consistently excluded from adjusted measures. Reconciliation of Non-GAAP Financial Measures Below is a reconciliation of Net income attributable to common shareholders to Adjusted EBITDA.
Such losses are similar to the equity investment-related losses included in equity earnings/losses for Proptech Investments and are therefore consistently excluded from adjusted measures. Reconciliation of Non-GAAP Financial Measures Below is a reconciliation of Net income attributable to common shareholders to Adjusted EBITDA.
Specifically for LaSalle, the magnitude and timing of recognition of incentive fees are driven by one or a combination of the following: changes in valuations of the underlying investments; dispositions of managed assets; and the contractual measurement periods with clients.
Specifically for Investment Management, the magnitude and timing of recognition of incentive fees are driven by one or a combination of the following: changes in valuations of the underlying investments; dispositions of managed assets; and the contractual measurement periods with clients.
Foreign Exchange Foreign exchange risk is the risk we will incur economic losses due to adverse changes in foreign currency exchange rates. Our revenue from outside of the U.S. approximated 39% and 41% of our total revenue for the years ended December 31, 2024 and 2023, respectively, as outlined in the table below.
Foreign Exchange Foreign exchange risk is the risk we will incur economic losses due to adverse changes in foreign currency exchange rates. Our revenue from outside of the U.S. approximated 38% and 39% of our total revenue for the years ended December 31, 2025 and 2024, respectively, as outlined in the table below.
Such revenues include investment sales and other capital markets activities, agency and tenant representation leasing transactions, incentive fees, and other services/offerings, which increase the variability of the revenue we earn.
Such revenues include investment sales, debt/equity advisory fees and other capital markets activities, agency and tenant representation leasing transactions, incentive fees, and other services/offerings, which increase the variability of the revenue we earn.
In the normal course of business, we manage these risks through a variety of strategies, including hedging transactions using various derivative financial instruments such as foreign currency forward contracts. We enter into derivative instruments that are short-term in duration with high credit-quality counterparties and diversify our positions across such counterparties in order to reduce our exposure to credit losses.
In the normal course of business, we manage these risks through a variety of strategies, including hedging transactions using various derivative financial instruments such as foreign currency forward contracts. We enter into derivative instruments with high credit-quality counterparties and diversify our positions across such counterparties in order to reduce our exposure to credit losses.
In this Item, we discuss results for the years ended December 31, 2024 and 2023 and the comparison between these years.
In this Item, we discuss results for the years ended December 31, 2025 and 2024 and the comparison between these years.
Although we operate globally, we report our results in U.S. dollars. As a result, the strengthening or weakening of the U.S. dollar in relation to currencies we are exposed to may positively or negatively impact our reported results. The following table sets forth the revenue derived from our most significant currencies.
As a result, the strengthening or weakening of the U.S. dollar in relation to currencies we are exposed to may positively or negatively impact our reported results. The following table sets forth the revenue derived from our most significant currencies.
Had euro-to-U.S. dollar exchange rates been 10% higher throughout the course of 2024, we estimate our reported operating income would have increased by $2.7 million.
Had euro-to-U.S. dollar exchange rates been 10% higher throughout the course of 2025, we estimate our reported operating income would have increased by $7.4 million.
Year Ended December 31, ($ in millions) 2024 2023 Average outstanding borrowings $ 1,381.4 1,875.9 Average effective interest rate 5.9 % 5.9 % As of December 31, 2024, we had €350.0 million of Euro Notes, evenly divided between maturities of June 2027 (with a fixed interest rate of 1.96%) and June 2029 (with a fixed interest rate of 2.21%).
Year Ended December 31, ($ in millions) 2025 2024 Average outstanding borrowings $ 1,119.7 1,381.4 Average effective interest rate 4.9 % 5.9 % As of December 31, 2025, we had €350.0 million of Euro Notes, evenly divided between maturities of June 2027 (with a fixed interest rate of 1.96%) and June 2029 (with a fixed interest rate of 2.21%), and $400.0 million of Senior Notes due December 2028 with a fixed interest rate of 6.875%.
We have historically funded pension costs as actuarially determined and as applicable laws and regulations require. We expect to contribute $0.5 million to our defined benefit pension plans in 2025. As payments to recipients are based on their retirement date, age and other factors, we cannot determine the timing of such payments with precision.
We have historically funded pension costs as actuarially determined and as applicable laws and regulations require. We expect to make immaterial contributions to our defined benefit pension plans in 2026. As payments to recipients are based on their retirement date, age and other factors, we cannot determine the timing of such payments with precision.
Note: Equity earnings/losses in the remaining segments represent the results of unconsolidated operating ventures (not investments), and therefore, the amounts are included in Adjusted EBITDA on both a segment and consolidated basis. Credit losses on convertible note investments reflects credit impairments associated with pre-equity convertible note investments in early-stage proptech enterprises.
Note: Equity earnings/losses for segments other than Investment Management represent the results of unconsolidated operating ventures (not investments), and therefore, the amounts are included in Adjusted EBITDA on both a segment and consolidated basis. 48 Table of Contents Credit losses on convertible note investments reflects credit impairments associated with pre-equity convertible note investments in early-stage proptech enterprises.
December 31, (in millions) 2024 2023 Outstanding borrowings under the Facility $ 100.0 625.0 Short-term borrowings 153.8 147.9 Outstanding commercial paper 200.0 — In addition to our Facility, we had the capacity to borrow up to $42.5 million under local overdraft facilities as of December 31, 2024.
December 31, (in millions) 2025 2024 Outstanding borrowings under the Facility $ — 100.0 Short-term borrowings 92.7 153.8 Outstanding commercial paper — 200.0 In addition to our Facility, we had the capacity to borrow up to $58.6 million under local overdraft facilities as of December 31, 2025.
Refer to Note 10, Debt in the Notes to Consolidated Financial Statements, included in Item 8, for additional information on our debt. 62 Table of Contents Investment Activity As of December 31, 2024, we had a carrying value of $812.7 million in Investments, primarily related to investments by JLL Technologies in early to mid-stage proptech companies and proptech funds as well as LaSalle co-investments.
Refer to Note 9, Fair Value Measurements in the Notes to Consolidated Financial Statements, included in Item 8, for additional information on our debt. 58 Table of Contents Investment Activity As of December 31, 2025, we had a carrying value of $892.9 million in Investments, primarily related to Investment Management co-investments and investments in early to mid-stage proptech companies as well as proptech funds ("Proptech Investments").
Year Ended December 31, ($ in millions) 2024 2023 Total number of shares repurchased (in 000's) 373.1 410.3 Total paid for shares repurchased $ 80.4 62.0 Capital Expenditures Capital expenditures were $185.5 million and $186.9 million in 2024 and 2023, respectively. Expenditures in both years were primarily related to office leasehold improvements, hardware and purchased/developed software.
Year Ended December 31, 2025 2024 Total number of shares repurchased (in thousands) 747.5 373.1 Total paid for shares repurchased (in millions) $ 211.5 80.4 Capital Expenditures Net capital additions were $215.6 million and $185.5 million in 2025 and 2024, respectively. Expenditures in both years were primarily related to office leasehold improvements, hardware and purchased/developed software.
Year Ended December 31, ($ in millions) 2024 % of Total 2023 % of Total United States dollar $ 14,402.3 61.5 % $ 12,258.9 59.0 % British pound 1,773.5 7.6 1,640.0 7.9 Euro 1,464.9 6.3 1,436.1 6.9 Australian dollar 1,085.3 4.6 1,036.9 5.0 Indian rupee 823.8 3.5 661.4 3.2 Canadian dollar 612.6 2.6 613.8 3.0 Hong Kong dollar 567.1 2.4 544.8 2.6 Chinese yuan 488.1 2.1 480.9 2.3 Singapore dollar 447.3 1.9 425.4 2.0 Japanese yen 346.3 1.5 286.6 1.4 Other currencies 1,421.7 6.0 1,376.0 6.7 Total revenue $ 23,432.9 100.0 % $ 20,760.8 100.0 % Had British pound-to-U.S. dollar exchange rates been 10% higher throughout the course of 2024, we estimate our reported operating income would have increased by $6.6 million.
Year Ended December 31, ($ in millions) 2025 % of Total 2024 % of Total United States dollar $ 16,298.8 62.4 % $ 14,402.3 61.5 % British pound 1,954.9 7.5 1,773.5 7.6 Euro 1,662.5 6.4 1,464.9 6.3 Australian dollar 1,156.0 4.4 1,085.3 4.6 Indian rupee 925.0 3.5 823.8 3.5 Canadian dollar 620.3 2.4 612.6 2.6 Hong Kong dollar 582.9 2.2 567.1 2.4 Chinese yuan 510.4 2.0 488.1 2.1 Singapore dollar 482.3 1.8 447.3 1.9 Japanese yen 362.9 1.4 346.3 1.5 Other currencies 1,559.6 6.0 1,421.7 6.0 Total revenue $ 26,115.6 100.0 % $ 23,432.9 100.0 % Had British pound-to-U.S. dollar exchange rates been 10% higher throughout the course of 2025, we estimate our reported operating income would have increased by $11.8 million.
As of December 31, 2024, we had the potential to make earn-out payments on 13 acquisitions subject to the achievement of certain performance conditions, representing $35.8 million accrued for potential earn-out payments, of a potential maximum of $108.0 million (undiscounted).
As of December 31, 2025, we had the potential to make earn-out payments on 11 acquisitions subject to the achievement of certain performance conditions, representing $17.2 million accrued for potential earn-out payments, of a potential maximum of $75.5 million (undiscounted).
Refer to the Income Tax discussion in the Summary of Critical Accounting Policies and Estimates and Note 8, Income Taxes, of the Notes to Consolidated Financial Statements, included in Item 8, for a further discussion of our effective tax rate.
Year Ended December 31, ($ in millions) 2025 2024 Income tax provision $ 189.5 132.5 Effective tax rate 19.3 % 19.5 % Refer to the Income Tax discussion in the Summary of Critical Accounting Policies and Estimates and Note 8, Income Taxes, of the Notes to Consolidated Financial Statements, included in Item 8, for a further discussion of our effective tax rate.
We have unfunded capital commitments to investment vehicles and direct investments totaling a maximum of $299.6 million as of December 31, 2024. See Note 5, Investments, of the Notes to Consolidated Financial Statements, included in Item 8, for additional information on our investment activity.
We have maximum potential unfunded commitments to direct investments or investment vehicles of $203.5 million and $7.3 million as of December 31, 2025 for our Investment Management business and Proptech Investments, respectively. See Note 5, Investments, of the Notes to Consolidated Financial Statements, included in Item 8, for additional information on our investment activity.
Estimations and judgments relevant to the determination of tax expense, assets, and liabilities require analysis of the tax environment and the future profitability, for tax purposes, of local statutory legal entities rather than business segments.
Estimations and judgments relevant to the determination of tax expense, assets, and liabilities require analysis of the tax environment and the future profitability, for tax purposes, of local statutory legal entities rather than business segments. Our statutory legal entity structure generally does not mirror the way we organize, manage and report our business operations.
Our $3.3 billion Facility matures on November 3, 2028, and bears a variable interest rate. Outstanding borrowings, including the balance of the Facility, Short-term borrowings (financing lease obligations, overdrawn bank accounts and local overdraft facilities) and the balance outstanding under the Program are presented below.
Outstanding borrowings, including the balance of the Facility, Short-term borrowings (financing lease obligations, overdrawn bank accounts and local overdraft facilities) and the balance outstanding under the Program are presented below.
The Facility bears a variable rate of interest that fluctuates based on market rates. In November 2023, we issued and sold $400.0 million of senior unsecured notes due December 2028 which bear interest at a fixed annual rate of 6.875%.
We had no outstanding borrowings under the Facility as of December 31, 2025. The Facility bears a variable rate of interest that fluctuates based on market rates. Our $400.0 million of senior unsecured notes are due December 2028 and bear interest at a fixed annual rate of 6.875%.
We account for a majority of these investments at fair value. Certain investments are accounted for under the measurement alternative, defined as cost minus impairment. Where applicable, we estimate fair value of our investments using the net asset value ("NAV") per share (or its equivalent) our investees provide.
Certain investments are accounted for under the measurement alternative, defined as cost minus impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Where applicable, we estimate fair value of our investments using the net asset value ("NAV") per share (or its equivalent) our investees provide.
We reflect these fair value adjustments as gains or losses on the Consolidated Statements of Comprehensive Income within Equity earnings. Income Taxes We account for income taxes under the asset and liability method.
Investments for which the measurement alternative has been elected are remeasured if a qualifying observable price change occurs. We reflect these fair value adjustments as gains or losses on the Consolidated Statements of Comprehensive Income within Equity earnings/losses. Income Taxes We account for income taxes under the asset and liability method.
These plans allow employees and members of our Board of Directors to defer portions of their compensation, and plan balances predominantly relate to U.S. employees.
We invest directly in insurance contracts which yield returns to fund these deferred compensation obligations. These plans allow employees and members of our Board of Directors to defer portions of their compensation, and plan balances predominantly relate to U.S. employees.
We account for these investments at fair value or under the equity method of accounting. 46 Table of Contents Second, JLL Technologies invests in proptech funds and early to mid-stage companies to improve our strategic position within the real estate technology landscape, including investments through the JLL Spark Global Ventures Funds.
We account for these investments at fair value or under the equity method of accounting. Second, we invest in proptech funds and early to mid-stage companies through the JLL Spark Global Ventures Funds. We account for a majority of these investments at fair value.
Year Ended December 31, (in millions) 2024 2023 Severance and other employment-related charges $ 27.1 62.1 Restructuring, pre-acquisition and post-acquisition charges 28.6 43.0 Fair value adjustments that resulted in a net decrease to earn-out liabilities from prior-period acquisition activity (32.6) (4.4) Restructuring and acquisition charges $ 23.1 100.7 55 Table of Contents Interest Expense Interest expense, net of interest income, for 2024 was $136.9 million, compared to $135.4 million in 2023.
Year Ended December 31, (in millions) 2025 2024 Severance and other employment-related charges $ 42.2 27.1 Restructuring, pre-acquisition and post-acquisition charges 34.9 28.6 Fair value adjustments to earn-out liabilities (1.8) (32.6) Restructuring and acquisition charges $ 75.3 23.1 50 Table of Contents Interest Expense Interest expense, net of interest income, for 2025 was $107.3 million, compared to $136.9 million in 2024.
As a result, the volatility of currencies against the U.S. dollar may positively or negatively impact our results.
Foreign Currency We conduct business using a variety of currencies, but we report our results in U.S. dollars. As a result, the volatility of currencies against the U.S. dollar may positively or negatively impact our results.
Year Ended December 31, (in millions) 2024 2023 Net income attributable to common shareholders $ 546.8 225.4 Add: Interest expense, net of interest income 136.9 135.4 Income tax provision 132.5 25.7 Depreciation and amortization (1) 252.0 234.4 Adjustments: Restructuring and acquisition charges 23.1 100.7 Net loss (gain) on disposition — 0.5 Net non-cash MSR and mortgage banking derivative activity 18.2 18.2 Interest on employee loans, net of forgiveness (5.9) (3.6) Equity losses - JLL Technologies and LaSalle 76.4 201.7 Credit losses on convertible note investments 6.3 — Adjusted EBITDA $ 1,186.3 938.4 (1) This adjustment excludes the noncontrolling interest portion of amortization of acquisition-related intangibles which is not attributable to common shareholders. 53 Table of Contents In discussing our operating results, we report Adjusted EBITDA margins and refer to percentage changes in local currency, unless otherwise noted.
Year Ended December 31, (in millions) 2025 2024 Net income attributable to common shareholders $ 792.1 546.8 Add: Interest expense, net of interest income 107.3 136.9 Income tax provision 189.5 132.5 Depreciation and amortization (1) 249.1 252.0 Adjustments: Restructuring and acquisition charges 75.3 23.1 Net non-cash MSR and mortgage banking derivative activity 15.2 18.2 Interest on employee loans, net of forgiveness (6.5) (5.9) Equity losses - Investment Management and Proptech Investments (1) 25.8 76.4 Credit losses on convertible note investments 5.1 6.3 Adjusted EBITDA $ 1,452.9 1,186.3 (1) This adjustment excludes the noncontrolling interest portion which is not attributable to common shareholders.
ITEMS AFFECTING COMPARABILITY Macroeconomic Conditions Our results of operations and the variability of these results are significantly influenced by (i) macroeconomic trends, (ii) geopolitical environment, (iii) global and regional real estate markets and (iv) financial and credit markets.
NEW ACCOUNTING STANDARDS Refer to Note 2, Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements, included in Item 8. 43 Table of Contents ITEMS AFFECTING COMPARABILITY Macroeconomic Conditions Our results of operations and the variability of these results are significantly influenced by (i) macroeconomic trends, (ii) geopolitical environment, (iii) global and regional real estate markets and (iv) financial and credit markets.
GAAP financial measures and does not rely solely on non-GAAP financial measures. Because our non-GAAP financial measures are not calculated in accordance with U.S. GAAP, they may not be comparable to similarly titled measures used by other companies. Effective January 1, 2024, we updated our definition of Adjusted EBITDA to exclude certain equity earnings/losses as further described below.
GAAP financial measures and does not rely solely on non-GAAP financial measures. Because our non-GAAP financial measures are not calculated in accordance with U.S. GAAP, they may not be comparable to similarly titled measures used by other companies. Adjustments to U.S.
In situations where we believe that there may be uncertainty with respect to the recognition of tax benefits, we provide reserves for those benefits. Changes to the amounts of our unrecognized tax benefits may occur as the result of ongoing operations, the outcomes of audits or other examinations by tax authorities, or the passing of statutes of limitations.
Changes to the amounts of our unrecognized tax benefits may occur as a result of ongoing operations, the outcomes of audits or other examinations by tax authorities, or the passing of statutes of limitations.
We do not enter into derivative transactions for trading or speculative purposes. Interest Rates We centrally manage our debt, considering investment opportunities and risks, tax consequences and overall financing strategies. Our overall interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs.
We do not enter into derivative transactions for trading or speculative purposes. 44 Table of Contents Interest Rates We centrally manage our debt, considering investment opportunities and risks, tax consequences and overall financing strategies.
In addition, British pound and Singapore dollar expenses incurred as a result of our regional headquarters being located in London and Singapore, respectively, act as ongoing partial operational hedges against our translation exposures to those currencies. 49 Table of Contents We enter into forward foreign currency exchange contracts to manage currency risks associated with intercompany loan balances.
In addition, British pound and Singapore dollar expenses incurred as a result of our regional employee hubs being located in London and Singapore, respectively, act as ongoing partial operational hedges against our translation exposures to those currencies.
Amounts presented on a local currency basis are calculated by translating the current period results of our foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period. We believe this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations.
In discussing our operating results, we refer to percentage changes in local currency, unless otherwise noted. Amounts presented on a local currency basis are calculated by translating the current period results of our foreign operations to U.S. dollars using the foreign currency exchange rates from the comparative period.
The average outstanding borrowings under our credit facilities and commercial paper program was $1,381.4 million this year, with an average effective interest rate of 5.9%, in 2024, compared with $1,875.9 million, also with an average effective interest rate of 5.9%, during 2023. Equity Earnings (Losses) The following details Equity losses by relevant segment.
The improvement was primarily due to lower average borrowings with meaningful contributions from a lower average interest rate. The average outstanding borrowings under our credit facilities and commercial paper program was $1,119.7 million this year, with an average effective interest rate of 4.9%, in 2025, compared with $1,381.4 million, with an average effective interest rate of 5.9%, during 2024.
The following table reflects the reconciliation to local currency amounts for consolidated (i) Revenue, (ii) Operating income and (iii) Adjusted EBITDA.
We believe this methodology provides a framework for assessing performance and operations excluding the effect of foreign currency fluctuations. The following table reflects the reconciliation to local currency amounts for consolidated (i) Revenue, (ii) Operating income and (iii) Adjusted EBITDA.
Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures. 52 Table of Contents Equity earnings/losses (JLL Technologies and LaSalle) primarily reflects valuation changes on investments reported at fair value.
Such forgiven amounts are reflected in Compensation and benefits expense. Given the interest accrued on these employee loans and subsequent forgiveness are non-cash and the amounts perfectly offset over the life of the loan, the activity is not indicative of core operating performance and is excluded from non-GAAP measures.
For additional detail regarding our critical accounting policies and estimates discussed below, see Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8. 45 Table of Contents Revenue Recognition We earn revenue from the following services (segments are bolded). • Markets Advisory ◦ Leasing ◦ Property Management ◦ Advisory, Consulting and Other • Capital Markets ◦ Investment Sales, Debt/Equity Advisory and Other ◦ Loan Servicing ◦ Value and Risk Advisory • Work Dynamics ◦ Workplace Management ◦ Project Management ◦ Portfolio Services and Other • JLL Technologies • LaSalle Our services are generally earned and billed in the form of transaction commissions, advisory and management fees, and incentive fees.
Revenue Recognition We earn revenue from the following services (segments are bolded). • Real Estate Management Services ◦ Workplace Management ◦ Project Management ◦ Property Management ◦ Portfolio Services and Other • Leasing Advisory ◦ Leasing ◦ Advisory, Consulting and Other • Capital Markets Services ◦ Investment Sales, Debt/Equity Advisory and Other ◦ Loan Servicing ◦ Value and Risk Advisory • Investment Management • Software and Technology Solutions 41 Table of Contents Our services are generally earned and billed in the form of transaction commissions, advisory and management fees, and incentive fees.
Year Ended December 31, 2024 compared with Year Ended December 31, 2023 Year Ended December 31, Change in % Change in Local Currency ($ in millions) 2024 2023 U.S. dollars Markets Advisory $ 4,500.7 4,121.6 379.1 9 % 9 % Capital Markets 2,040.4 1,778.0 262.4 15 15 Work Dynamics 16,197.6 14,131.1 2,066.5 15 15 JLL Technologies 226.3 246.4 (20.1) (8) (8) LaSalle 467.9 483.7 (15.8) (3) (2) Revenue $ 23,432.9 20,760.8 2,672.1 13 % 13 % Platform compensation and benefits $ 5,652.8 5,310.4 342.4 6 % 7 % Platform operating, administrative and other expenses 1,242.1 1,158.9 83.2 7 7 Depreciation and amortization 255.8 238.4 17.4 7 7 Total platform operating expenses 7,150.7 6,707.7 443.0 7 7 Gross contract costs 15,391.0 13,375.9 2,015.1 15 15 Restructuring and acquisition charges 23.1 100.7 (77.6) (77) (77) Total operating expenses $ 22,564.8 20,184.3 2,380.5 12 % 12 % Operating income $ 868.1 576.5 291.6 51 % 54 % Equity losses $ (70.8) (194.1) 123.3 64 % 64 % Net non-cash MSR and mortgage banking derivative activity $ (18.2) (18.2) — — % — % Adjusted EBITDA $ 1,186.3 938.4 247.9 26 % 28 % 51 Table of Contents Non-GAAP Financial Measures Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods.
Year Ended December 31, 2025 compared with Year Ended December 31, 2024 Year Ended December 31, Change in % Change in Local Currency ($ in millions) 2025 2024 U.S. dollars Real Estate Management Services $ 20,001.2 17,992.7 2,008.5 11 % 11 % Leasing Advisory 3,009.9 2,705.6 304.3 11 11 Capital Markets Services 2,422.1 2,040.4 381.7 19 17 Investment Management 450.1 467.9 (17.8) (4) (5) Software and Technology Solutions 232.3 226.3 6.0 3 2 Revenue $ 26,115.6 23,432.9 2,682.7 11 % 11 % Platform compensation and benefits $ 6,194.1 5,652.8 541.3 10 % 9 % Platform operating, administrative and other expenses 1,337.2 1,242.1 95.1 8 7 Depreciation and amortization 252.8 255.8 (3.0) (1) (1) Total platform operating expenses 7,784.1 7,150.7 633.4 9 8 Gross contract costs 17,158.2 15,391.0 1,767.2 11 11 Restructuring and acquisition charges 75.3 23.1 52.2 226 225 Total operating expenses $ 25,017.6 22,564.8 2,452.8 11 % 10 % Operating income $ 1,098.0 868.1 229.9 26 % 25 % Equity losses $ (20.7) (70.8) 50.1 71 % 71 % Net non-cash MSR and mortgage banking derivative activity $ (15.2) (18.2) 3.0 16 % 17 % Adjusted EBITDA $ 1,452.9 1,186.3 266.6 22 % 22 % 47 Table of Contents Non-GAAP Financial Measures Management uses certain non-GAAP financial measures to develop budgets and forecasts, measure and reward performance against those budgets and forecasts, and enhance comparability to prior periods.
Our Program provides us with another source of short-term capital, which may help us mitigate interest rate risk. We assess interest rate sensitivity to estimate the potential effect of rising interest rates on our variable rate debt. If interest rates were 50 basis points higher during 2024, Interest expense, net of interest income, would have been $6.9 million higher.
We assess interest rate sensitivity to estimate the potential effect of rising interest rates on our variable rate debt. For the year ended December 31, 2025, if interest rates were 50 basis points higher, Interest expense, net of interest income, would have been $3.5 million higher.
Higher Adjusted EBITDA was driven by transactional revenue growth, which outpaced the expense increased described above. 57 Table of Contents Capital Markets % Change Year Ended December 31, Change in in Local ($ in millions) 2024 2023 U.S. dollars Currency Investment Sales, Debt/Equity Advisory and Other $ 1,506.2 1,261.6 244.6 19 % 20 % Value and Risk Advisory 373.0 363.8 9.2 3 3 Loan Servicing 161.2 152.6 8.6 6 6 Revenue $ 2,040.4 1,778.0 262.4 15 % 15 % Platform compensation and benefits $ 1,491.9 1,337.7 154.2 12 % 12 % Platform operating, administrative and other 278.4 246.1 32.3 13 13 Depreciation and amortization 66.8 65.6 1.2 2 2 Segment platform operating expenses 1,837.1 1,649.4 187.7 11 11 Gross contract costs 48.6 47.5 1.1 2 3 Segment operating expenses $ 1,885.7 1,696.9 188.8 11 % 11 % Equity earnings $ 2.7 6.7 (4.0) (60) % (59) % Net non-cash MSR and mortgage banking derivative activity $ (18.2) (18.2) — — % — % Adjusted EBITDA $ 244.4 173.1 71.3 41 % 42 % Capital Markets top-line results were driven by Investment Sales, Debt/Equity Advisory and Other as investor sentiment and increasing interest rate stability supported year-over-year accelerated activity.
Higher Adjusted EBITDA was driven by the revenue growth coupled with incremental platform leverage. 54 Table of Contents Capital Markets Services % Change Year Ended December 31, Change in in Local ($ in millions) 2025 2024 U.S. dollars Currency Investment Sales, Debt/Equity Advisory and Other $ 1,874.5 1,506.2 368.3 24 % 23 % Value and Risk Advisory 379.6 373.0 6.6 2 — Loan Servicing 168.0 161.2 6.8 4 4 Revenue $ 2,422.1 2,040.4 381.7 19 % 17 % Platform compensation and benefits $ 1,736.8 1,491.9 244.9 16 % 15 % Platform operating, administrative and other 337.7 278.4 59.3 21 20 Depreciation and amortization 55.6 66.8 (11.2) (17) (17) Segment platform operating expenses 2,130.1 1,837.1 293.0 16 15 Gross contract costs 5.7 48.6 (42.9) (88) (88) Segment operating expenses $ 2,135.8 1,885.7 250.1 13 % 12 % Equity earnings $ 5.1 2.7 2.4 89 % 77 % Net non-cash MSR and mortgage banking derivative activity $ (15.2) (18.2) 3.0 16 % 17 % Adjusted EBITDA $ 364.4 244.4 120.0 49 % 47 % Capital Markets Services top-line growth was fueled by investment sales and debt advisory transactions across nearly all sectors, with the most significant contributions coming from multifamily and office.
During 2023, we issued $400.0 million of Senior Notes due December 2028 with a fixed interest rate of 6.875% and used the proceeds to pay down our Facility. We will continue to use the Facility for working capital needs (including payment of accrued incentive compensation), co-investment activities, share repurchases, capital expenditures and acquisitions.
We will continue to use the Facility for working capital needs (including payment of accrued incentive compensation), co-investment activities, share repurchases, capital expenditures and acquisitions.
Share Repurchase and Dividend Programs In February 2022, our Board of Directors authorized an additional $1.5 billion for the repurchase of our common stock in the open market and privately negotiated transactions. As of December 31, 2024, $1,013.2 million remained authorized for repurchases under our repurchase program. The following table outlines share repurchase activity for the last two years.
Share Repurchase and Dividend Programs As of December 31, 2025, $801.7 million remained authorized for repurchases under our repurchase program. The following table outlines share repurchase activity for the last two years.
On June 27, 2024, we established a commercial paper program (the “Program”) in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time. We had $199.3 million of outstanding borrowings, net of debt issuance costs as of December 31, 2024.
Debt We maintain a commercial paper program (the "Program") in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time. Our $3.3 billion Facility matures on November 3, 2028, and bears a variable interest rate.
The comparability of these items can be seen in Note 3, Business Segments, of the Notes to Consolidated Financial Statements, included in Item 8, and is discussed further in Segment Operating Results included herein. 48 Table of Contents Foreign Currency We conduct business using a variety of currencies, but we report our results in U.S. dollars.
The timing of recognition of these items may impact comparability between quarters, in any one year, or compared to a prior year. The comparability of these items can be seen in Note 3, Business Segments, of the Notes to Consolidated Financial Statements, included in Item 8, and is discussed further in Segment Operating Results included herein.
Investments reported at fair value are increased or decreased each reporting period by the change in the fair value of the investment. Where the measurement alternative has been elected, our investment is increased or decreased upon observable price changes. Such activity is excluded as the amounts are generally non‑cash in nature and not indicative of core operating performance.
Equity earnings/losses (Investment Management and Proptech Investments) primarily reflects valuation changes on investments reported at fair value, which are increased or decreased each reporting period as fair value changes. Where the measurement alternative has been elected, our investment is increased or decreased upon observable price changes.
Lower equity losses in 2024 were attributable to modest valuation increases across several investments, offset by less significant valuation declines compared with 2023. 60 Table of Contents LaSalle % Change Year Ended December 31, Change in in Local ($ in millions) 2024 2023 U.S. dollars Currency Advisory fees $ 373.8 406.2 (32.4) (8) % (7) % Transaction fees and other 33.5 30.0 3.5 12 14 Incentive fees 60.6 47.5 13.1 28 36 Revenue $ 467.9 483.7 (15.8) (3) % (2) % Platform compensation and benefits $ 268.9 288.7 (19.8) (7) % (6) % Platform operating, administrative and other 69.8 62.6 7.2 12 11 Depreciation and amortization 8.5 8.1 0.4 5 5 Segment platform operating expenses 347.2 359.4 (12.2) (3) (3) Gross contract costs 37.4 28.9 8.5 29 30 Segment operating expenses $ 384.6 388.3 (3.7) (1) % — % Adjusted EBITDA (1) $ 100.3 103.8 (3.5) (3) % 1 % Equity losses $ (22.6) (24.7) 2.1 9 % 9 % (1) Adjusted EBITDA excludes Equity losses for LaSalle.
The Adjusted EBITDA improvement was largely attributable to the transactional revenue growth, net of higher commissions, described above, together with enhanced platform leverage. 55 Table of Contents Investment Management % Change Year Ended December 31, Change in in Local ($ in millions) 2025 2024 U.S. dollars Currency Advisory fees $ 373.7 373.8 (0.1) — % (1) % Transaction fees and other 37.3 33.5 3.8 11 11 Incentive fees 39.1 60.6 (21.5) (35) (37) Revenue $ 450.1 467.9 (17.8) (4) % (5) % Platform compensation and benefits $ 263.8 268.9 (5.1) (2) % (4) % Platform operating, administrative and other 66.9 69.8 (2.9) (4) (6) Depreciation and amortization 11.2 8.5 2.7 32 31 Segment platform operating expenses 341.9 347.2 (5.3) (2) (3) Gross contract costs 36.1 37.4 (1.3) (3) (4) Segment operating expenses $ 378.0 384.6 (6.6) (2) % (3) % Adjusted EBITDA (1) $ 83.5 100.3 (16.8) (17) % (17) % Equity earnings (losses) $ 12.3 (22.6) 34.9 n.m. n.m.
Terms for our acquisitions have typically included cash paid at closing with provisions for additional consideration and earn-out payments subject to certain contract provisions and performance. Deferred business acquisition obligations totaled $20.8 million and $13.2 million on the Consolidated Balance Sheets as of December 31, 2024 and 2023, respectively.
Year Ended December 31, (in millions) 2025 2024 Payments relating to current-year acquisitions $ 7.7 62.3 Payments for deferred business acquisition and earn-out obligations 19.6 7.4 Total paid for business acquisitions $ 27.3 69.7 Terms for our acquisitions have typically included cash paid at closing with provisions for additional consideration and earn-out payments subject to certain contract provisions and performance.
The total minimum rentals to be received in the future as sublessor under noncancelable operating subleases as of December 31, 2024 was $38.3 million. Refer to Note 11, Leases, of the Notes to the Consolidated Financial Statements, included in Item 8, for further information on our lease obligations.
Refer to Note 11, Leases, of the Notes to the Consolidated Financial Statements, included in Item 8, for further information on our lease obligations. Deferred Compensation Deferred compensation obligations are inclusive of amounts attributable to service conditions satisfied as of December 31, 2025, as well as service conditions expected to be satisfied in future periods.
Refer to segment operating results for further detail. Operating Expenses Operating expenses increased 12% to $22.6 billion in 2024. Generally, the net increase in platform operating expenses was largely driven by growth in revenue-related expenses, partially offset by greater platform leverage. Gross contract costs also increased due to top-line performance. Refer to segment operating results for additional detail.
Generally, the increase in operating expenses was largely driven by growth in revenue-related expenses, including pass-through costs (gross contract costs) and commission expense, and also reflected higher restructuring and acquisition charges. Greater platform leverage mitigated the revenue-related growth, as evidenced by the, lower, 8% increase in platform operating expenses. Refer to segment operating results for additional detail.
We are primarily exposed to interest rate risk on our Facility, which had a maximum borrowing capacity of $3.30 billion as of December 31, 2024. The Facility consists of revolving credit available for working capital, investments, capital expenditures and acquisitions. We had $88.6 million of outstanding borrowings, net of debt issuance costs, under the Facility as of December 31, 2024.
Our overall interest rate risk management objectives are to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. We are primarily exposed to interest rate risk on our Facility, which had a maximum borrowing capacity of $3.30 billion as of December 31, 2025.
Restructuring and acquisition charges were lower in 2024, compared with 2023, primarily due to (i) an expense credit in the third quarter of 2024 associated with a reduction to an acquisition-related earn-out and (ii) lower employment-related costs over the full year as significant cost-out actions were executed in 2023. Refer to the following table for further detail.
Restructuring and acquisition charges were higher, compared with 2024, primarily due to significantly lower net decreases to earn-out liabilities as well as higher severance and other employment-related charges. Refer to the following table for further detail.
We discuss key drivers, along with other investing activities, individually below in further detail. Cash Flows from Financing Activities Financing activities used $451.2 million of cash during 2024, compared with $374.3 million used during 2023. This change resulted from a net year-over-year decrease in debt outstanding, as cash provided by earnings was higher in 2024.
Cash Flows from Financing Activities Financing activities used $643.2 million of cash during 2025, compared with $451.2 million used during 2024. The change was driven by higher share repurchases and incremental net reductions on short-term borrowings in 2025. We discuss these drivers in further detail below.
However, we do not believe inflation had a material impact on our results of operations for the twelve months ended December 31, 2024. 50 Table of Contents RESULTS OF OPERATIONS Definitions • Assets under management data for LaSalle are reported on a one-quarter lag. • "n.m.": not meaningful, represented by a percentage change of greater than 1,000%, favorable or unfavorable. • We define "Resilient" revenue as (i) Property Management, within Markets Advisory, (ii) Value and Risk Advisory, and Loan Servicing, within Capital Markets, (iii) Workplace Management, within Work Dynamics, (iv) JLL Technologies and (v) Advisory Fees, within LaSalle. • We define "Transactional" revenue as (i) Leasing and Advisory, Consulting and Other, within Markets Advisory, (ii) Investment Sales, Debt/Equity Advisory and Other, within Capital Markets, (iii) Project Management and Portfolio Services and Other, within Work Dynamics and (iv) Incentive fees and Transaction fees and other, within LaSalle. • Gross contract costs represent certain costs associated with client-dedicated employees and third-party vendors and subcontractors and are directly or indirectly reimbursed through the fees we receive.
However, we do not believe inflation had a material impact on our results of operations for the twelve months ended December 31, 2025. 46 Table of Contents RESULTS OF OPERATIONS Definitions • Assets under management data for Investment Management is primarily reported on a one-quarter lag. • "n.m.": not meaningful, typically represented by a percentage change of greater than 1,000%, favorable or unfavorable. • Effective January 1, 2025, we report Project Management in Resilient revenue.
These decreases were partially offset by a few discrete, individually immaterial expense items. Adjusted EBITDA was flat compared to the prior year, reflecting the lower revenues offset by the expense drivers noted above and an $8.2 million gain recognized in the second quarter of 2024 following the purchase of a controlling interest in a LaSalle-managed fund.
The change in Adjusted EBITDA primarily reflected (i) the expected, lower incentive fees noted above, net of variable compensation costs and (ii) the absence of a prior-year $8.2 million benefit from the gain recognized in the second quarter of 2024 following the purchase of a controlling interest in a LaSalle-managed fund.
Improved cash flow performance was primarily driven by (i) higher cash provided by earnings, (ii) higher commission and bonus accruals (versus payments made) and (iii) improvements in Net reimbursables. These were partially offset by an increase in receivables associated with revenue growth, $126.4 million of higher cash taxes paid, and the August 2024 loan repurchase from Fannie Mae.
Improved cash flow performance was primarily driven by (i) higher cash provided by earnings, (ii) the absence of cash outflow associated with a 2024 loan repurchased from Fannie Mae together with cash proceeds in 2025 from the sale of the repurchased loan's underlying asset, and (iii) lower cash taxes paid.
We consider "Property Management" to be services provided to non-occupying property investors and "Workplace Management" to be services provided to facility occupiers. Our JLL Technologies segment offers software products, solutions and services, while LaSalle provides investment management services on a global basis to institutional investors and high-net-worth individuals.
Investment Management provides services on a global basis to institutional investors and other sources of private capital, while our Software and Technology Solutions segment offers various software products and services to our clients.
As of December 31, 2024 and 2023, we had total cash and cash equivalents of $416.3 million and $410.0 million, respectively, of which $314.4 million and $310.1 million, respectively, was held by our foreign subsidiaries. 63 Table of Contents Leases Our lease obligations primarily consist of operating leases of office space in various buildings for our own use as well as operating leases for equipment.
We believe our policy of permanently reinvesting earnings of foreign subsidiaries does not significantly impact our liquidity. As of December 31, 2025 and 2024, we had total cash and cash equivalents of $599.1 million and $416.3 million, respectively, of which $386.0 million and $314.4 million, respectively, was held by our foreign subsidiaries.
Our Capital Markets service offerings include investment sales, debt and equity advisory, value and risk advisory, and loan servicing. Our Work Dynamics business provides a broad suite of integrated services to occupiers of real estate, including facility and project management, as well as portfolio and other services.
Our Real Estate Management Services business provides a broad suite of integrated services to occupiers of real estate, including facility and property management, project management, and portfolio and other services. We consider "Property Management" to be services provided to non-occupying property investors and "Workplace Management" to be services provided to facility occupiers.
Debt On June 27, 2024, we established a commercial paper program (the “Program”) in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time, under the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.
We maintain a commercial paper program (the "Program") in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time. We had no outstanding borrowings under the Program as of December 31, 2025. Our Program provides us with another source of short-term capital, which may help us mitigate interest rate risk.
Year Ended December 31, ($ in millions) 2024 % Change Revenue: At current period exchange rates $ 23,432.9 13 % Impact of change in exchange rates 52.5 n/a At comparative period exchange rates $ 23,485.4 13 % Operating income: At current period exchange rates $ 868.1 51 % Impact of change in exchange rates 17.2 n/a At comparative period exchange rates $ 885.3 54 % Adjusted EBITDA: At current period exchange rates $ 1,186.3 26 % Impact of change in exchange rates 14.7 n/a At comparative period exchange rates $ 1,201.0 28 % 54 Table of Contents Revenue Consolidated revenue grew 13% and was broad-based across revenue types and most sub-segments.
Year Ended December 31, ($ in millions) 2025 % Change Revenue: At current period exchange rates $ 26,115.6 11 % Impact of change in exchange rates (106.9) n/a At comparative period exchange rates $ 26,008.7 11 % Operating income: At current period exchange rates $ 1,098.0 26 % Impact of change in exchange rates (9.0) n/a At comparative period exchange rates $ 1,089.0 25 % Adjusted EBITDA: At current period exchange rates $ 1,452.9 22 % Impact of change in exchange rates (10.3) n/a At comparative period exchange rates $ 1,442.6 22 % 49 Table of Contents Revenue Consolidated revenue increased 11% compared with 2024.
The decrease in advisory fees was largely offset by higher incentive fees, in particular those earned in the fourth quarter of 2024 from asset dispositions on behalf of clients in Asia Pacific. Lower Segment platform operating expenses reflected (i) lower variable incentive compensation expense as a result of decreased revenue and (ii) the 2024 benefit of cost management actions.
The decrease in Segment platform operating expenses was largely driven by lower variable incentive compensation expense as a result of the decrease in incentive fees.
Our measure of segment results excludes Restructuring and acquisition charges. 56 Table of Contents Markets Advisory % Change Year Ended December 31, Change in in Local ($ in millions) 2024 2023 U.S. dollars Currency Leasing $ 2,596.2 2,343.6 252.6 11 % 11 % Property Management 1,795.1 1,675.1 120.0 7 8 Advisory, Consulting and Other 109.4 102.9 6.5 6 7 Revenue $ 4,500.7 4,121.6 379.1 9 % 9 % Platform compensation and benefits $ 2,309.2 2,178.2 131.0 6 % 6 % Platform operating, administrative and other 371.9 368.3 3.6 1 1 Depreciation and amortization 70.0 69.6 0.4 1 1 Segment platform operating expenses 2,751.1 2,616.1 135.0 5 5 Gross contract costs 1,269.6 1,153.6 116.0 10 11 Segment operating expenses $ 4,020.7 3,769.7 251.0 7 % 7 % Equity earnings (losses) $ 0.7 (0.5) 1.2 240 % 227 % Adjusted EBITDA $ 547.6 416.6 131.0 31 % 31 % The broad-based increase in Markets Advisory revenue was primarily driven by Leasing and led by the office sector.
Our measure of segment results excludes Restructuring and acquisition charges. 52 Table of Contents Real Estate Management Services % Change Year Ended December 31, Change in in Local ($ in millions) 2025 2024 U.S. dollars Currency Workplace Management $ 13,848.5 12,529.7 1,318.8 11 % 10 % Project Management 3,797.9 3,151.9 646.0 20 20 Property Management 1,841.3 1,795.1 46.2 3 3 Portfolio Services and Other 513.5 516.0 (2.5) — (1) Revenue $ 20,001.2 17,992.7 2,008.5 11 % 11 % Platform compensation and benefits $ 1,860.3 1,731.4 128.9 7 % 7 % Platform operating, administrative and other 595.7 594.2 1.5 — — Depreciation and amortization 114.2 124.3 (10.1) (8) (9) Segment platform operating expenses 2,570.2 2,449.9 120.3 5 4 Gross contract costs 17,102.0 15,266.2 1,835.8 12 12 Segment operating expenses $ 19,672.2 17,716.1 1,956.1 11 % 11 % Equity earnings $ 0.7 2.9 (2.2) (76) % (74) % Adjusted EBITDA $ 437.5 399.2 38.3 10 % 9 % Higher Real Estate Management Services revenue was primarily driven by Workplace Management and Project Management.
Although actual amounts may differ from such estimated amounts, we believe such differences are not likely to be material.
Although actual amounts may differ from such estimated amounts, we believe such differences are not likely to be material. For additional detail regarding our critical accounting policies and estimates discussed below, see Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements, included in Item 8.
Cash Flows from Investing Activities We used $316.8 million of cash for investing activities during 2024, compared with $290.4 million used in 2023. Net cash outflow increased in 2024 due to higher business acquisition volumes in the current year, partially offset by lower investment activity within JLL Technologies and LaSalle.
Cash Flows from Investing Activities We used $336.6 million of cash for investing activities during 2025, compared with $316.8 million used in 2024.
Year Ended December 31, (in millions) 2024 2023 JLL Technologies $ (53.8) (177.0) LaSalle (22.6) (24.7) Other 5.6 7.6 Equity losses $ (70.8) (194.1) Income Taxes The provision for income taxes was $132.5 million and $25.7 million for the years ended December 31, 2024 and 2023, respectively, representing effective tax rates ("ETR") of 19.5% and 10.2%, respectively.
Year Ended December 31, (in millions) 2025 2024 Investment Management $ 12.3 (22.6) Proptech Investments (38.8) (53.8) Other 5.8 5.6 Equity losses $ (20.7) (70.8) Income Taxes The provision for income taxes increased for the year as higher earnings before taxes outpaced the slight decline in our effective tax rate.
The Adjusted EBITDA improvement was largely attributable to transactional revenue growth, together with cost discipline, tempered by the expense drivers described above. 58 Table of Contents Work Dynamics % Change Year Ended December 31, Change in in Local ($ in millions) 2024 2023 U.S. dollars Currency Workplace Management $ 12,529.7 10,706.2 1,823.5 17 % 17 % Project Management 3,151.9 2,924.8 227.1 8 8 Portfolio Services and Other 516.0 500.1 15.9 3 3 Revenue $ 16,197.6 14,131.1 2,066.5 15 % 15 % Platform compensation and benefits $ 1,385.8 1,305.1 80.7 6 % 6 % Platform operating, administrative and other 467.8 431.6 36.2 8 9 Depreciation and amortization 91.1 79.2 11.9 15 15 Segment platform operating expenses 1,944.7 1,815.9 128.8 7 7 Gross contract costs 14,029.9 12,131.4 1,898.5 16 16 Segment operating expenses $ 15,974.6 13,947.3 2,027.3 15 % 15 % Equity earnings $ 2.2 1.4 0.8 57 % 58 % Adjusted EBITDA $ 316.3 264.0 52.3 20 % 20 % Work Dynamics revenue growth was led by continued strong performance in Workplace Management, largely from a balanced mix of client wins and mandate expansions, as well as incremental pass-through costs in the United States.
Adjusted EBITDA expansion was largely attributable to revenue growth described above together with the enhanced platform leverage. 53 Table of Contents Leasing Advisory % Change Year Ended December 31, Change in in Local ($ in millions) 2025 2024 U.S. dollars Currency Leasing $ 2,901.6 2,596.2 305.4 12 % 11 % Advisory, Consulting and Other 108.3 109.4 (1.1) (1) (2) Revenue $ 3,009.9 2,705.6 304.3 11 % 11 % Platform compensation and benefits $ 2,146.7 1,963.6 183.1 9 % 9 % Platform operating, administrative and other 274.1 245.5 28.6 12 11 Depreciation and amortization 45.2 36.8 8.4 23 23 Segment platform operating expenses 2,466.0 2,245.9 220.1 10 9 Gross contract costs 11.6 33.3 (21.7) (65) (65) Segment operating expenses $ 2,477.6 2,279.2 198.4 9 % 8 % Adjusted EBITDA $ 580.1 464.7 115.4 25 % 24 % The increase in Leasing Advisory revenue was attributable to Leasing, led by continued momentum in the office sector.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeAs a result, the ultimate realized gain or loss with respect to interest rate and foreign currency fluctuations will depend on the exposures that arise during the applicable period, the hedging strategies at the time, and interest and foreign currency rates. 64 Table of Contents
Biggest changeAs a result, the ultimate realized gain or loss with respect to interest rate and foreign currency fluctuations will depend on the exposures that arise during the applicable period, the hedging strategies at the time, and interest and foreign currency rates. 60 Table of Contents
Disclosure of Limitations As the information presented above includes only those exposures that exist as of December 31, 2024, it does not consider those exposures or positions which could arise after that date. The information we present has limited predictive value.
Disclosure of Limitations As the information presented above includes only those exposures that exist as of December 31, 2025, it does not consider those exposures or positions which could arise after that date. The information we present has limited predictive value.

Other JLL 10-K year-over-year comparisons