Jones Lang LaSalle NYSE: JLL reported record third-quarter results, with revenue rising 12% and adjusted EBITDA increasing 33% from a year earlier. Adjusted earnings per share climbed 52%, as the commercial real estate services company cited accelerating advisory demand, continued growth in its resilient businesses and operating leverage from platform initiatives.
President and Chief Executive Officer Christian Ulbrich said advisory revenue growth accelerated to 22%, while the company’s resilient businesses performed in line with expectations. He said the results reflected JLL’s ability to convert revenue growth into profit growth, with margins expanding at a faster pace than in the prior-year quarter.
“Our third quarter results reflect the continued business momentum and ongoing progress on our operating initiatives,” Chief Financial Officer Kelly Howe said. “The pace of growth in both our advisory and resilient revenues increased, driving an acceleration in total revenue growth.”
Leasing and Capital Markets Drive Advisory Growth
Leasing Advisory revenue increased 27%, led by continued strength in the U.S. industrial, office and data center markets. U.S. Leasing Advisory revenue rose 39%, supported by a higher average deal size and several large data center transactions. On a two-year stacked basis, global Leasing Advisory revenue was up 34%.
Howe said data centers represented a mid-single-digit percentage of Leasing Advisory revenue during the third quarter, making them an important but not dominant contributor to growth. She described growth as broad-based across industrial, office and data center activity, with particular strength in the U.S.
The company raised its full-year Leasing Advisory revenue growth target to the high-teens percentage range from a prior outlook of mid- to high-teens growth. JLL said the OECD Business Confidence Index, which it views as a two- to three-quarter forward indicator for leasing activity, reached its highest level since mid-2022 in September.
Capital Markets Services revenue also grew across nearly all major geographies and sectors. Global investment sales revenue rose 33%, while U.S. investment sales increased 34%, compared with market growth rates of 9% globally and 11% in the U.S., according to the company. Debt Advisory revenue rose 13%, and Equity Advisory revenue increased 39%.
JLL maintained its full-year Capital Markets Services revenue growth target in the mid-teens, acknowledging that growth could moderate in the fourth quarter against strong comparisons from a year ago. The company said higher bond yields have led to some repricing and longer decision timelines for select transactions, though its global pipeline remains robust, particularly in the U.S.
Ulbrich said the higher-rate environment has had its clearest impact on Capital Markets, rather than JLL’s other business lines. He said multifamily properties in the U.S. have been more affected than other asset classes because investors’ ability to underwrite income growth is an important offset to higher financing costs.
REMS Growth and Contract Changes
Within Real Estate Management Services, JLL said Workplace Management delivered double-digit growth through a balanced contribution from mandate expansions and new client wins. Ulbrich said the company expects Workplace Management growth to accelerate in the fourth quarter, citing client consolidation among service providers and growth among JLL’s technology-sector clients.
Project Management revenue increased 14%, including double-digit growth in the U.S. and India. The company cited particular strength in office and data center projects. On a two-year stacked basis, Project Management revenue rose 38%.
Property Management results continued to reflect the effects of strategic contract exits in Asia Pacific, though JLL said it had completed actions on roughly 80% of the identified contracts by quarter-end. The company retained more contracts than expected, often at improved margins, and expects to finish the exits and modifications by year-end. JLL expects the associated growth headwinds to dissipate during 2027.
JLL maintained its target for mid- to high-single-digit full-year revenue growth in Real Estate Management Services. Howe said margin expansion in the segment was supported by operating-platform scale, more favorable contract terms, and synergies from integrating its Software and Technology Solutions business into the segment.
Accelerate 2030 and Platform Investments
Ulbrich highlighted progress under JLL’s Accelerate 2030 strategy, including efforts to deepen enterprise client relationships and improve platform efficiency. The company said it retained 99% of its top 100 clients over the past three years.
JLL appointed Mark Gibson as country CEO for the U.S., its largest market, and named former Real Estate Management Services CEO Paul Morgan as chief operating officer. Morgan has joined the company’s global executive board and is overseeing efforts to bring enterprise operations together in a global function.
The company is also using artificial intelligence in internal operations. In July, it launched Ask JLL, an AI-powered resource for employee support across functions such as HR and IT. JLL is also redesigning invoicing and collections with AI agents and automation.
Management expects its platform initiative to contribute more than 20 basis points of annual margin expansion on average, with the contribution increasing over time. Ulbrich said that represents about one-third of the annual margin expansion embedded in the company’s Accelerate 2030 targets.
Cash Flow, Buybacks and Outlook
Year-to-date free cash flow reached $174 million, an improvement of $130 million from the prior-year period, driven by higher cash earnings. Reported net leverage improved to 0.5 times, while corporate liquidity stood at $3.6 billion.
JLL repurchased $142 million of shares during the third quarter and $552 million year to date, reducing its share count by more than 3% from a year earlier. The company said it intends to enter a $500 million accelerated share repurchase agreement under its existing authorization, which had $2.5 billion remaining at quarter-end. The accelerated repurchase was expected to represent more than 3% of shares as of Oct. 23 and to be completed by year-end.
The company raised its full-year 2026 adjusted EPS target range to $25.20 to $26.30, representing 37% growth at the midpoint. Management said it remains focused on investments in its platform, talent and capabilities while continuing to evaluate acquisition opportunities against the potential returns from share repurchases.
About Jones Lang LaSalle (NYSE:JLL)
Jones Lang LaSalle Incorporated, doing business as JLL, is a global commercial real estate services and investment management company. It serves property owners, occupiers, investors and developers across a broad range of real estate sectors, including office, industrial, retail, residential, hospitality and specialized properties.
JLL's services include leasing, capital markets and investment sales, property and facilities management, project and development management, valuation and advisory services, workplace strategy, sustainability consulting and real estate technology solutions.
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