Consolidated Second-Quarter 2019 Performance Highlights:

The company achieved growth of 12% in both consolidated revenue and fee revenue compared with 2018, predominantly organic. Leasing led consolidated fee revenue growth in the RES service lines, with notable contributions from Project & Development Services and Property & Facility Management. Geographically across service lines, RES fee revenue growth for the quarter was led by Americas, contributing 73% on a local currency basis. LaSalle revenue growth reflected higher incentive and record quarterly advisory fees.

Net income attributable to common shareholders was $110.5 million, compared with $107.8 million last year, and adjusted EBITDA was $226.7 million, compared with $193.6 million. Diluted earnings per share were $2.40, an increase from $2.35 in 2018; adjusted diluted earnings per share were $2.94, up from $2.26 last year. Adjusted EBITDA margin, calculated on a fee-revenue basis, was 13.9% in USD for the quarter (13.8% in local currency), compared with 13.0% in the prior-year quarter.

The 90 basis-points net expansion of consolidated Q2 margin reflected 80 basis points of contribution from LaSalle and 55 basis points of contribution from RES margin improvement, which enhanced the ability to fund 45 basis points of continued investments in platform and client-facing technology.

Balance Sheet and Cash Flows:

Total net debt was $937.4 million as of June 30, 2019, representing decreases of $42.7 million and $35.2 million from March 31, 2019, and June 30, 2018, respectively.

Operating cash flow for the second quarter of 2019 improved nearly $80 million compared with the prior-year quarter, reflecting the normalization of EMEA payments, which had been accelerated in the first quarter in advance of a new financial enterprise system implementation. Year-to-date, the increase in cash used by operating activities was primarily due to higher annual incentive compensation paid to employees, primarily in the first quarter, in 2019 compared with 2018, reflecting improved performance comparing the previous annual periods.

Asia Pacific Second-Quarter 2019 Performance Highlights:

Asia Pacific healthy growth in revenue and fee revenue across all services lines was highlighted by a double-digit increase in Leasing, primarily office and industrial sectors, and notable growth in Property & Facility Management, primarily due to expansion of existing client mandates and new client wins for Corporate Solutions.

Adjusted EBITDA margin, calculated on a fee-revenue basis, was 12.8% in USD for the quarter (12.9% in local currency), compared with 12.0% in 2018. The 21% increase in segment operating income and 90 basis point margin expansion reflected the growth in transactional revenue together with continued cost discipline, which more than offset incremental investments in platform and client-facing technology.