Jones Lang LaSalle Incorporated (NYSE:JLL) Q3 2022 Earnings Conference Call November 2, 2022 9:00 AM ET

Company Participants

Scott Einberger - Investor Relations

Christian Ulbrich - Chief Executive Officer and President

Karen Brennan - Chief Financial Officer

Conference Call Participants

Chandni Luthra - Goldman Sachs

Anthony Paolone - J.P. Morgan

Jade Rahmani - Keefe, Bruyette and Woods

Patrick O'Shaughnessy - Raymond James

Operator

Ladies and gentlemen. Hello and welcome to the Q3 2022 JLL Earnings Conference Call. My name is Maxteen, and I'll be coordinating today’s call. [Operator instructions] I will now hand over to your host, Scott Einberger, Investor Relations Officer at JLL to begin. Scott, please go ahead when you are ready.

Scott Einberger

Thank you, and good morning. Welcome to the third quarter 2022 conference call for Jones Lang LaSalle Incorporated. Earlier this morning, we issued our earnings release which is available on the Investor Relations section of our website, along with the slide presentation intended to supplement our prepared remarks. Please visit ir.jll.com.

During the call and in our slide presentation, we will reference certain non-GAAP financial measures, which we believe provide useful information for investors. We include reconciliations of non-GAAP financial measures to GAAP in our earnings release and slide presentation. As a reminder, today's call is being webcast live and recorded. A transcript of this conference call will also be posted on our website.

Any statements made about future results and performance, plans, expectations and objectives are forward-looking statements. Actual results and performance may differ from those forward-looking statements as a result of factors discussed in the annual report on Form 10-K for the fiscal year ended December 31st, 2021, and in other reports filed with the SEC. The company disclaims any undertaking to publicly update or revise any forward-looking statements. On November 16, JLL will host an Investor Briefing in New York City. For additional information and to register for the event, please contact JLL Investor Relations @jll.com. I will now turn the call over to Christian Ulbrich, our President and Chief Executive Officer, for opening remarks.

Christian Ulbrich

Thank you, Scott. Hello and thank you all for joining our third quarter earnings call. Over the last couple of months, we’ve experienced a significant change in the economic environment and the overall outlook for the global economy in the coming quarters is not favorable. For real estate markets around the globe, fast rising f interest rates and significantly widening spreads have created a notable imbalance between our overall financing costs and yield. Lenders are cautious, and underwriting assumptions are becoming more restrictive. According to JLL research, global commercial real estate investments totaled $234 billion, a year-over-year decline of 18%. Bid ask spreads continue to widen and the desire for greater price discovery is elongating the time to close deals. In addition, currency fluctuations are limiting cross border capital flows. Leasing markets are typically slower to react to an economic decline. And this is highlighted by the leasing market outperforming when compared to capital markets in the third quarter. In the global office leasing market volume was up 10% year-over-year according to JLL research.