JLL Beats Earnings Expectations as Leasing Activity Shows Strength

JLL (JLL) reported better than expected earnings results for the 2024 fourth quarter thanks to revenue growth largely due to a boost in office leasing. 

Strong leasing activity — particularly in the office segment — helped JLL throughout the year on both a global and U.S. basis, as stricter return-to-office mandates created greater demand for office space. 

Overall, JLL posted adjusted diluted earnings per share of $6.15, up from $5.36 for the fourth quarter of 2023, and topping Zacks analysts’ expectations of $5.80 per share.

Revenue for the quarter was $6.8 billion, compared with $5.8 billion for the same three months in 2023. Zacks’ analysts expected revenue of $6.4 billion for the 2024 fourth quarter. 

“We are pleased with our results for the fourth quarter, and overall, very strong 2024 exceeding the targets we laid out a year ago,” Christian Ulbrich, JLL’s CEO, said on the company’s Wednesday earnings call. “Our focus on enhancing operating efficiency throughout the course of 2024 is reflected in our improved profitability, free cash flow and leverage.”

Leasing within JLL’s markets advisory business increased 14 percent year-over-year by the end of 2024, while overall leasing activity for the brokerage grew 11 percent in that time. 

Thanks to that strong leasing, transactional revenues increased 11 percent for the full year. Revenue from leasing for the 2024 fourth quarter was $814 million, compared to $717 million for the same quarter in 2023.

“The increase in fourth-quarter revenue was primarily driven by leasing, which generated double-digit growth across most geographies, notably the U.S., India and Greater China,” Karen Brennan, chief financial officer for JLL, said on the company’s earnings call Wednesday. “Leasing revenue growth was broad-based across asset classes and led by office, which grew 20 percent globally and outpaced the 7 percent increase in the market.”

Office leasing was at its highest level globally since the COVID pandemic hit, although still below the pre-pandemic 2019 levels. Brennan called the leasing activity “quite encouraging.” 

Plus, new leases have started to make up a bigger chunk of overall leasing activity.

 “Our research team estimates that the U.S. office leasing markets are now approximately 80 percent of the way through the downsizing cycle that has been going on, and approximately 30 percent of leasing activity is now new space requirements, so either expansions or net new demand on top of what existed before,” she said. “So that’s very encouraging.” 

Despite the strong earnings results, JLL stock was trading in the red Wednesday morning, down 1.6 percent from its opening price.

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.