Good day, and welcome to the Third Quarter 2014 Earnings Release Conference Call for Jones Lang LaSalle Incorporated. Today's call is being recorded. Any statements made about future results and performance or about plans, expectations and objectives are forward-looking statements. Actual results and performance may differ from those included in the forward-looking statements as a result of factors discussed in the company's annual report on Form 10-K for the fiscal year ended December 31, 2013, and in our other reports filed with the SEC. The company disclaims any undertaking to publicly update or revise any forward-looking statements. A transcript of this call will be posted and available on the company's website. A web audio replay will also be available for download. Information and the link can be found on the company's website. At this time, I would like to turn the call over to Mr. Colin Dyer, Chief Executive Officer, for opening remarks. Please go ahead, sir.

Thank you, operator. Hello, everybody, and welcome to this review of our results for the third quarter and the first 9 months of 2014. Our Chief Financial Officer, Christie Kelly, joins me on today's call and will discuss the details of our performance in a few minutes. I'll begin by summarizing our results. We completed record third quarter with fee revenue of $1.2 billion, a 19% increase on the third quarter of 2013. Year-to-date fee revenue increased 17% to $3.1 billion. Adjusted net income was $105 million in the quarter or $2.31 a share, up 55% from the year ago quarter. Adjusted net income totaled $198 million for the first 9 months of the year or $4.38 a share compared with $135 million or $2.99 a share in the same period a year ago. And finally, our Board of Directors declared a semiannual dividend of $0.25 a share, a 9% increase. So all in all, we had a very strong quarter in active global real estate markets. We saw broad-based revenue growth across all service lines and geographies, and LaSalle Investment Management gained further momentum and delivered outstanding results with a superior capital raise and acquisition activity plus significant equity earnings and incentive fees. The market backdrop to this is an -- a global economy projected to grow by 3.1% this year, up marginally from 2013. And despite concerns about some economies, overall growth is expected to increase next year to 3.6%. To look at world real estate markets, please see the slides that we posted in the Investor Relations section of jll.com. Slide 3 summarizes trends in capital markets and leasing volumes. Investor sentiment remains strong, and world investment sales volumes continue to rise in the quarter, up 15% from the third quarter of 2013 and 24% on a…

Thank you, Colin, and welcome to everyone on our call. I'm pleased to report another quarter of strong performance for JLL. As Colin mentioned, we had a record third quarter with consolidated fee revenue of $1.2 billion, up 19% over last year and adjusted EPS of $2.31, up 55% over last year. Real estate services fee revenue increased 12% overall. LaSalle Investment Management grew advisory fees and generated significant incentive fees and equity earnings from performance for clients. Our results were delivered in a steadily improving market environment in which the economic recovery remains on track for the medium term and for real estate as reflected in our strong pipeline. As Colin mentioned for the quarter, overall global market leasing activity was uneven, less active than forecasted and continued to trail the more buoyant capital markets. Our strong broad-based performance continued to demonstrate the strength of our globally diverse and growth-oriented firm. Our revenue increase of 10% in Leasing was driven throughout our businesses and outperformed the overall market, where growth absorption decreased 5% for the quarter versus third quarter last year. We also delivered a 13% increase in our annuity businesses, including Property & Facility Management and Project and Development Services, led by our Asia Pacific and Americas businesses. Capital Markets & Hotels revenue increased 15% led by a strong quarter in the Americas and EMEA. Our LaSalle Investment Management business again delivered an outstanding quarter. We delivered these results while continuing to selectively invest and profitably grow our Real Estate Services business as well as LaSalle in alignment with our strategic plan. Adjusted operating income margin calculated on a fee revenue basis increased 140 basis points to 10.8% for the quarter compared with 9.4% for the third quarter last year. Adjusted EBITDA margin on a fee revenue basis…

Thank you, Christie. So looking at business wins for the third quarter, Slide 4 lists a few examples from different service lines and geographies. In our corporate outsourcing business, we won 41 new assignments to date this year, expanded our existing relationships with another 26 clients and renewed 11 contracts. New corporate business in the quarter included winning the global contract for real estate services from Crédit Agricole Corporate and Investment Bank, which has operations in more than 30 countries around the world. In the Americas, we won a new assignment from the American Red Cross for nearly 14 million square feet of space and Microsoft appointed us to provide facilities management services for a 900,000 square foot portfolio in Southeast Asia. We now manage nearly 5 million square feet for Microsoft across Asia Pacific. We also continue to expand our local market Corporate Solutions business, which serves corporate clients who purchase real estate services locally. To date this year, we've won 38 assignments totaling 73 million square feet in this growing segment. Turning to investment sales transactions. In the U.S., we completed the $283 million sale of a multistate healthcare portfolio comprised of 12 assets. In the Czech Republic, we advised on the sale of a 6.7 million square foot logistics portfolio for EUR 523 million, and that was the largest ever direct sale in the Republic. And in Guangzhou, China, we sold an 80% interest in a 1.1 million square-foot Yingyao Plaza to a domestic investor for $755 million. Third quarter Leasing and Property and asset management transactions included a 270,000 square foot lease restructure and extension at 1111 Pennsylvania Avenue in Washington, D.C., for law firm, Morgan Lewis. It included also a 366,000 square foot management assignment at One Tower Bridge, a mixed use development in London.…

[Operator Instructions] Your first question comes from David Gold with Sidoti. David Gold - Sidoti & Company, Inc.: Couple of quick questions. First, on the incentive fees and equity earnings. Earlier in the year, I think the -- just what the commentary was, we could see some significant wins and presumably in the third quarter we did. Beyond that, as we think about fourth quarter, and presumably your visibility is a lot better today than it was, say, 3 or 4 months ago. How should we think about that? Are there still some significant ones that are possible in the fourth quarter?

David, I'll jump in there. As we look to the fourth quarter, just based on where we are with the funds, we'll see, we believe, some healthy performance in keeping with historical norms, prefinancial crisis. So to answer your question, yes, and for the foreseeable future to the medium term.

Christie's remarks on the numbers she quoted on incentive fees will guide to next year rather than the back end of this year. The Q4 numbers will be -- there will be some incentive but nothing like the level we saw in this quarter. David Gold - Sidoti & Company, Inc.: Got you. Perfect. And then second piece. Just as a reminder, back some years, I know we've chatted about the incremental margin potential that you have on those fees. Presumably you have to bonus or pay incentive comp. But sort of other than that, what's -- how should we think about the incremental margin potential there? Or is it still order of magnitude 50-ish percent?

I think that when you take a look at the incremental margin percent, David, historically, for the past, I don't know, 10-, 15-years, as far back as I could look, outside of '06, '07, we delivered around 12%, and we're expecting to deliver above that. And when you take a look at the margin growth that we have experienced, we're not running our business just for the quarter.

So are you referring to the incentive fees, this margin on incentive fees alone? David Gold - Sidoti & Company, Inc.: Yes, yes.

Okay. So there, we are slightly above the 12%, but they vary by fund, but the range is sort of 20% to 40%.

Yes, and I would agree with that, David. When we take a look at incentive fees, we're in that ballpark. David Gold - Sidoti & Company, Inc.: Perfect. And then a broader question. When you look at the numbers that you have in your market overview, essentially, in the Capital Markets side presumably you're expecting slower growth next year, broadly, and Leasing to be up a touch. When we think about next year, with that sort of backdrop, looking for growth, where -- what are the potential drivers of, say, real upside next year given some potential slowdown on both of those fronts?

I think the areas where we might see some -- if you're talking just Capital Markets, I mean, we're projecting quite a robust picture in Europe and U.S. I think the potential for upside could come in Asia. What we've seen in Asia in the Capital Markets this year is something of a hesitant period, as buyers have been kind of waiting and a little bit sensitive to geopolitical issues and currency swings. And our sense is that if momentum comes back into those markets, we should -- could see some upside there.

Your next question comes from Brad Burke with Goldman Sachs.

Christie , I know you already touched on this. I wanted to go back to EBITDA margins. And since you saw most of the growth in Capital Markets, which is one of your higher-margin businesses, I would have expected some margin expansion. Actually saw some margin compression within Real Estate Services instead. So I'm trying to understand what would be driving that? Specifically, Americas, in particular, were surprising given the strong result that you had in Q3 for Capital Markets.

Yes. I think, Brad, specifically, if you take a look overall, there are a couple of things going on in Real Estate Services. We have accelerated the funding on IT and data, and as well, given the very strong pipelines, our T&E and marketing expenses are up over revenues, which bodes very well for the fourth quarter. And specifically, if you look at the Americas and we level set for IT and data and some of the innovation activities that we have going on in the region, together with the strong pipeline, the performance on a quarterly basis would be up as well as on a year-to-date basis, which was down slightly for the quarter and flat on a year-to-date basis. So we're very optimistic in terms of our outlook for the fourth quarter and beyond. The team is doing very well.

Okay. So if I...

Yes, so then I was just going to say too, if you look at EMEA, also investments in the quarter, but we had a couple of transactions that slipped from the third quarter to fourth quarter. The team is doing exceedingly well and as I mentioned, very upbeat, for the fourth quarter and beyond. And then APAC, we saw some slowing in the market in terms of our momentum, and we had a tough comp last year, together with the fact that we had a mix differential. So Cap Markets in that region are down. But overall, I'm very pleased with the performance and how we're positioned going into the fourth quarter and 2015.

Okay. And just to confirm, if I heard you right, in the Americas, if we were to normalize for those IT and data expenditures, you would have seen a sequential improvement quarter-over-quarter on EBITDA margins as well as a year-over-year improvement versus 2013?

Yes, that's right.

Brad, one point to make about the Americas Capital Market, it's the region where Capital Markets represents the lowest proportion of overall revenue so it has less of an impact. And on those numbers, the increases are impressive in percentage terms, it's off a smaller base than we have in Europe and in Asia Pacific. It's also lower margin than those other 2 regions.

Okay, I appreciate that. I wanted to ask, as we head into the fourth quarter, which is your strongest cash flow quarter, what you're thinking about in terms of uses for all of your free cash flow. And I'm interested in the decision to increase the dividend in the current quarter, which is what we normally would expect in the first quarter, whether there's any specific reason to take it up earlier than what we've typically seen you do.

Brad, when we take a look at uses of cash, we are very focused on M&A, together with the investment in our platform, IT, co-investment. And from a dividend perspective, as I mentioned, we feel very strongly about our ability to generate cash with the growth in our annuity businesses and the drive for profitability, together with the fact that we're at a very good point in the cycle here from a real estate perspective. So we thought, on behalf of our shareholders, obviously, it was the appropriate thing to do. And we look forward to more performance going forward.

Okay, that's helpful. And then the last one, just looking at your assets under management. It's been a pretty tremendous increase over the past couple of quarters. How much of that do you think is attributable to LaSalle taking an outsized share of an increasing allocation to commercial real estate? And how much of that is just LaSalle benefiting from increased interest in the overall allocation in commercial real estate?

That's real difficult to answer, but we'll go away and do some homework on it because it's a good question. We can split it back. As we said, we've given you the amounts that we've taken in over the past 12 and -- 12 -- 3 and 12 months, which are truly impressive numbers, $11 million in this year-to-date. We don't see any reason, as we said, why there wouldn't be a continuation of flow -- funds flowing into the sector and to LaSalle as a predominant players in the sector. What level LaSalle will pick up over the coming quarters is very hard to estimate.

Okay. I just should assume the strong capital raise that you had in the quarter, that should layer in over the next few quarters and continue to support AUM growth?

Exactly.

Your next question comes from David Ridley-Lane with Merrill Lynch.

So there are several large U.S. retailers that are facing particularly difficult conditions and they may start widespread store closing programs. They are in the restructuring procedures -- proceedings. If we do see something along those lines, a lot of malls that could be losing anchor tenants, there could be some pretty sizable follow-on impacts. So first, how much exposure does JLL have to U.S. retail and leasing market? And then, second, how has your experience been with large-scale bankruptcies in the past, as Circuit City or Borders, something along those lines?

Yes, our retail activity, including management leasing and capital markets work in the U.S is less than 5% of our U.S. revenues, David. What generally happens when you have bankruptcies is that the properties get recycled, obviously, sometimes back into retail use or if they're particularly off pitch sites, then they'll be converted into -- redeveloped or converted into other uses. We haven't had a huge amount of historical experience with them, but it's not a huge part of our business either.

Yes, I would agree with that, David.

If you go to Europe, we do have a significant mall sale and leasing business across the continent. And so the general pressure on retailers in Europe would work to our benefit if we have those sorts of scenarios that you've described, much more strongly than in the U.S.

Got it. And then when you look at the request for proposals and deals you're working on in the Property & Facilities Management service line, do you think you're more likely to accelerate from the third quarter pace that we've seen here? Or is kind of a double-digit rate a good run rate for you over the next couple of quarters?

No, I think, I mean, we get a strong sense of our performance being above market. We -- of the bids that we actually respond to, the RFPs we respond to, we're winning at a 60%-plus rate, so that's very healthy. Now we're very selective about what we bid for because we are trying to ensure that we keep a strong margin in both our Facilities and Property Management business, so we do deselect some bids on price and move forward with those where we think we can sustain a good margin. But we believe we can continue to pick up market share in a market that feels active and is coming our way.

Got it. And then in terms -- thank you for sharing the headcount growth in both Capital Markets and Leasing. Is it sort of too early to ask if you've put together some plans around what you're expecting for 2015 headcount growth?

Well, we've put our budgets together for the kind of incentive we typically pay to hire people, and those will be sort of similar levels to 2014. How many people we then succeed in hiring is something else. The markets internationally have got pretty competitive. People are generally in a part of the cycle where they're earning well, where they're comfortable with the place they're at, generally, and so pulling them into our organization, hiring them into our organization becomes harder. Conversely, people now are more reluctant to leave us as well because of the same considerations that I just mentioned. So it's getting more difficult to spend that money and we do see spend it wisely. We don't go into excesses in the sorts of hiring bonuses we pay people. So hard to predict what it will be. We'll aim for the sorts of numbers we've had this year, but it's a more competitive market.

[Operator Instructions] Your next question comes from Brandon Dobell with William Blair. Brandon Burke Dobell - William Blair & Company L.L.C., Research Division: Maybe, Colin, first for you. As you think about the market expectations in -- or for volumes in Capital Markets, how much does your own, I guess, internal pipeline or the look you have into future deals inform how you guys think about market growth for next year? And I guess maybe a broader question is so the assumptions behind those market volume expectations for '15. Just trying to get a better idea of what key things you're looking at to get comfortable with those kind of volume assumptions.

So what drives them? Brandon Burke Dobell - William Blair & Company L.L.C., Research Division: Yes.

Well, if you start with the static where we are now, what we see in Europe and the U.S. and it's sort of variable across Asian Pacific, but you -- in anything we're marketing, we've generally got a rule of thumb, which is that for the final dollar that ends up making the purchase, there's sort of $10 have come in and they bid at credible level. So the weight of money that we're currently seeing, making offers for particularly high-quality assets, is still very strong. The indications we get from LaSalle, which is sort of one step removed, is that the institutional investors are still very interested in real assets as a sector and within that, real estate as a whole. And so the -- out of the conversations that they're having and the amount of money that's being allocated and reallocated to real estate, the indications there are strong as well. So there's some sort of "where's the money"-type indicators. When you look at the markets themselves, we can see pipelines, as we mentioned, which are full. Those generally give us an indication 3- to 6-months ahead, and there's no slacking up in that picture either. And then after that, the general sense we have or our forecasters have, of continued, steady, economic recovery with, as I mentioned in my comments, forecast GDP growth next year globally, which is up further on this year. So all those factors together give us confidence in the numbers that we forecast. Brandon Burke Dobell - William Blair & Company L.L.C., Research Division: Okay. And looking at the Project and Development Services business, what's a better metric to look to from a correlation point of view? Is it gross absorption in the Leasing markets? Or is it -- I guess, maybe this is more about the U.S, is it kind of U.S. commercial construction activity? What's the better thing to track to try and figure out how that business grows looking out the next handful of quarters?

Yes, it's the Leasing, gross absorption in Leasing which is the clearest guide short term. And then after that, and it's linked to the gross absorption number, general corporate confidence. And again, you can see that steady or rising across most economies. Brandon Burke Dobell - William Blair & Company L.L.C., Research Division: Okay. And then Christie, going back to the margin question -- margin discussion, I think, from Brad's question, seems like the expectations for fourth quarter margins year-on-year in all the segments should be for an improvement? Or is there enough noise in the Asia Pac mix to keep the year-on-year margin flat to down versus last year's fourth quarter?

The -- we don't give forward-looking guidance, Brandon, specifically, but I will tell you that the pipelines remain strong. The team's upbeat and from the perspective of the mix differential, it may weigh somewhat in terms of momentum of Capital Markets versus our annuity-based income. But overall, will be a very strong performance. Brandon Burke Dobell - William Blair & Company L.L.C., Research Division: Okay. And then final one for me. Looking at LaSalle, when you guys make dispositions, I would imagine of, especially, of separate accounts, how often or maybe the frequency of that money coming back into LaSalle? So separate account gets closed out, but then that customer comes right back and says, "Great, you did a good job for us and now here's the money back and go do it again." Or is that kind of all new money and no kind of recycled money that came in this quarter?

It's a mixture of everything that was -- increased allocations from existing investors and I can think of a $400 million number from one account in Europe. We mentioned 2 new sets of money which came in, one from a European institutional investor, for example, that was new to us. And we get re-ups as well, where money has been cycled through value-added opportunities. So it's a mixture of all of the above really.

And I would absolutely agree with that, Brandon. The only thing I would also mention is just based on our historical performance on behalf of our investors, we do have very high retention. So the team, not only has retention, as Colin mentioned, but we're also attracting new sources of capital.

Your next question comes from Michael Mueller with JPMorgan. Michael W. Mueller - JP Morgan Chase & Co, Research Division: Just one quick question. Christie, on your comments about incentive fees going back to predownturn levels, safe to assume that, that comment, it's little bit broader than just incentive fees. It touches on the equity gains as well, and do you think some of the transactional income? Or is it really just you're talking about incentive fees?

I was primarily focused on incentive fees, Michael. I went back to the 2001 time period and then we analyzed where we were in the fund specifically. So my comment was really along the lines of incentive fees. Michael W. Mueller - JP Morgan Chase & Co, Research Division: Okay. I mean, if you expand that comment a little bit and think about the gains, is it unreasonable to assume that they would be a little more elevated as well?

Could you just give a bit more flavor to that question? Michael W. Mueller - JP Morgan Chase & Co, Research Division: Yes. I mean, the incentive fees that are coming off liquidating funds, are they getting -- earning performance fees on that? It seems to imply that the gains as well that are tied to that would ramp up as well over that time period, so there's a correlation between the two. Is that the right way to think about that?

The issue in incentive fees, yes, and it's really tough for you to model. That's why we gave you a guidance number. But the issue -- they come in all sorts of different flavors depending on the way funds are put together, their vintage and the way the limited partners have influenced the discussions on the fund. So they can be -- so typically, they can be at a performance level where we will be gained -- taking a percentage of the gain above a particular threshold. And the percentage which we take will vary once above that threshold. So they're hard for us to predict, and they're hard for you to model.

[Operator Instructions] There are no further questions at this time. I'll turn the call back to the presenters.

Well, thank you very much, operator. So with no further questions, we'll end today's call. Thank you, all, for participating and for your continued interest in JLL, and we'll look forward to speaking you again -- to you again following the fourth quarter. Thank you very much.

This concludes today's conference call. You may now disconnect.