JLL Beats Wall Street Expectations With 10% Revenue Growth

JLL beat Wall Street analyst expectations in the second quarter, posting double-digit revenue growth for the fifth consecutive quarter, even as the commercial real estate services giant paid a fine to settle allegations over Fannie Mae borrower fraud. 

The brokerage’s total revenue grew to $6.25 billion, up 10 percent from the same period last year, surpassing analysts’ estimates by about $300 million. Net income also increased annually, growing by 29 percent to $159 million during the same time frame. 

The results were announced during the firm’s second-quarter earnings call Wednesday. 

Driving the growth was JLL’s capital markets services division, led by debt advisory and investment sales, which increased by 12 percent over the second quarter compared to the first. The leasing division, boosted by the U.S. industrial market, grew by a more moderate 5 percent. 

Despite “trade policy pressures, as well as fiscal policy uncertainty within our outsourcing business, most companies remain committed to enhancing the value of their workplaces and property investments, supporting the pipeline for mid-sized capital spend projects and contract expansion opportunities,” JLL CEO and President Christian Ulbrich said on the call.

But investors remained cautious. JLL’s stock stood essentially flat after the quarterly announcement.

Fines proved to be another hiccup. Earlier this month, three real estate investors — Fredrick Schulman, Chaim “Eli” Puretz, and Moshe “Mark” Silber — pleaded guilty to one count of conspiracy to commit wire fraud over a $74 million loan tied to a Cincinnati property that JLL had originated and sold to Fannie Mae in 2019. 

“We recognized approximately $14 million of incremental expense after reaching an enhanced loss share agreement with Fannie Mae for a specific three-loan portfolio with confirmed borrower fraud,” JLL CFO Kelly Howe told investors. 

Still, the company is charging ahead, completing a $2.9 billion capital raise in the first half of 2025, surpassing what it raised in 2024.

Julia Echikson can be reached at jechikson@commercialobserver.com.