Benefits of Real Estate

For decades, institutional investors have diversified their portfolios with commercial real estate. JLL Income Property Trust empowers a broader community of investors to access this cornerstone asset class and complement their portfolios with a range of benefits.

Performance

High-quality core commercial real estate as an asset class has historically outperformed most other asset classes, delivering a 7.1% annualized total return over the last 15 years ending in 2020. This exceeded the returns on corporate bonds over the same time period.

Average Annual Total Return, 15-Year Analysis

Sources: Core Real Estate: NCREIF ODCE; Public Real Estate: NAREIT Equity REITs; Large Cap Stock: S&P 500; Bonds: Citigroup Broad Investment Grade. Data as of 3Q 2022. Note: Past performance is not indicative of future results. There is no guarantee that any trends shown herein will continue. NCREIF ODCE data reflects the returns of diversified, core, open-end funds including leverage and fund expenses, but excluding management and advisory fees. Returns presented are net of fees. An investment in JLLIPT is different than the NCREIF ODCE, which is not an investable index. Like funds in the NCREIF ODCE, JLLIPT is a diversified, core, perpetual life commercial real estate investment alternative. Private real estate is not traded on an exchange and has less liquidity and price transparency. Stocks are represented by the S&P 500 Index and are subject to market risk. Corporate Bonds are represented by the Citigroup Broad Investment Grade Corporate Bond Index and are subject to credit risk. T-bills are represented by the U.S. Government 90-day T-bill and are subject to interest rate risk. Government bonds and Treasury Bills are guaranteed as to the timely payment of principal and interest. Indices are meant to illustrate general market performance; it is not possible to invest directly in an index. The indices presented represent investments that have material differences from an investment in a non-traded REIT, including those related to investment objectives, risks, fees and expenses, liquidity and tax treatment.

Potential Income

Income has been an essential component of the attractive long term total returns provided by commercial real estate as an asset class. Historically, 70% of the total returns from commercial real estate, according to the NCREIF Index, have come in the form of income rather than capital appreciation. Over the last 20 years, the annual income returns generated from investing in commercial real estate have been more than 2.5 times higher than stocks and lagged bonds by only 50 basis points.

Average Annual Cash Returns / Dividend Income, 15-Year Analysis

Sources: Private Real Estate: NCREIF NPI Income – CapEx returns; Public Real Estate: NAREIT Equity REITs dividend yield; Large Cap Stock: S&P 500 dividend yield; Corporate Bonds: Citigroup Broad Investment Grade Bond Index. Data as of 3Q 2022. NCREIF data reflects the returns of a blended portfolio of institutional-quality real estate and does not reflect the use of leverage or the impact of management and advisory fees. Stocks are represented by the dividend yield for the S&P 500 Index. Corporate Bonds are represented by the bond yield to maturity for the Citigroup Broad Investment Grade Corporate Bond Index. The indices presented represent investments that have material differences from an investment in a non-traded REIT, including those related to investment objectives, risks, fees and expenses, liquidity and tax treatment. Note: Past performance is not indicative of future results. There is no guarantee that any trends shown herein will continue.

Inflation Hedge

Real estate income over the last 25 years has increased at nearly the same average annual rate as inflation (2.92% vs. 2.31%). In contrast, bonds are a “fixed income” investment, which means the income they generate does not increase with inflation, exposing the investor to the risk that inflation will erode the value of future interest payments. Similarly, principal payments do not grow at maturity, whereas real estate may appreciate over time, especially during periods of high inflation. An investment in bonds differs significantly from an investment in commercial real estate, and bonds are considered to be a less risky investment than commercial real estate.

Real Estate Income and Inflation

Based on CPI Inflation. Real Estate Income is same-store NOI growth Sources: Bureau of Labor Statistics, NCREIF. Data as of 3Q 2022. Note: Past performance is not indicative of future results. There is no guarantee that any trends shown herein will continue.

Low Correlation

Modern portfolio theory suggests that the most effective way to maximize returns while at the same time minimizing risk is to add uncorrelated assets. Within the context of a multi-asset portfolio (composed of stocks, bonds, and other asset classes), commercial real estate may provide significant benefits, as correlations with stocks and bonds over time have been low.

Sources: FTSE NAREIT, NCREIF ODCE, Citigroup, Standard & Poor’s, S&P GSCI Total Return Index, HFRI Fund of Funds Index, and the Federal Reserve. Data as of 3Q 2022. Please keep in mind that investing in real estate involves risk. Real estate is not traded on an exchange; therefore, transactions do not provide immediate liquidity and their pricing is less transparent than that of stocks. Correlation is a statistical measure of how two securities move in relation to each other. The higher the co-efficient (1.00 is the maximum), the greater the correlation between the two markets. NCREIF ODCE data reflects the returns of diversified, core, open-end funds including leverage and fund expenses, but excluding management and advisory fees. An investment in JLLIPT is different than the NCREIF ODCE, which is not an investable index. Like funds in the NCREIF ODCE, JLLIPT is a diversified, core, perpetual life commercial real estate investment alternative. The indices presented represent investments that have material differences from an investment in a non-traded REIT, including those related to investment objectives, risks, fees and expenses, liquidity and tax treatment.

Hard Assets

Regarded as a hard asset, “brick and mortar” real estate may be especially appealing to investors whose confidence in financial assets has been shaken. While the ownership of hard assets may be reassuring, especially during periods of higher inflation, realizing the true value of these assets requires a long-term investment perspective.

Summary of Risk Factors

You should read the prospectus carefully for a description of the risks associated with an investment in JLL Income Property Trust. Some of these risks include but are not limited to the following:

Since there is no public trading market for shares of our common stock, repurchases of shares by us after a one-year minimum holding period will likely be the only way to dispose of your shares. After a required one-year holding period, JLLIPT limits the amount of shares that may be repurchased under our repurchase plan to approximately 5% of our net asset value (NAV) per quarter and 20% of our NAV per annum. Because our assets will consist primarily of properties that generally cannot be readily liquidated, JLLIPT may not have sufficient liquid resources to satisfy repurchase requests. Further, our board of directors may modify or suspend our repurchase plan if it deems such action to be in the best interest of our stockholders. As a result, our shares have limited liquidity and at times may be illiquid.

The purchase and redemption price for shares of our common stock will be based on the NAV of each class of common stock and will not be based on any public trading market. Because valuation of properties is inherently subjective, our NAV may not accurately reflect the actual price at which our assets could be liquidated on any given day.
JLLIPT is dependent on our advisor to conduct our operations. JLLIPT will pay substantial fees to our advisor, which increases your risk of loss. JLLIPT has a history of operating losses and cannot assure you that JLLIPT will achieve profitability. Our advisor will face conflicts of interest as a result of, among other things, time constraints, allocation of investment opportunities, and the fact that the fees it will receive for services rendered to us will be based on our NAV, which it is responsible for calculating.

The amount of distributions JLLIPT makes is uncertain and there is no assurance that future distributions will be made. JLLIPT may pay distributions from sources other than cash f low from operations, including, without limitation, the sale of assets, borrowings, or offering proceeds. Our use of leverage increases the risk of your investment. If JLLIPT fails to maintain our status as a REIT, and no relief provisions apply, JLLIPT would be subject to serious adverse tax consequences that would cause a significant reduction in our cash available for distribution to our stockholders and potentially have a negative impact on our NAV.

While JLLIPT’s investment strategy is to invest in stabilized commercial real estate properties diversified by sector with a focus on providing current income to investors, an investment in JLLIPT is not an investment in fixed income. Fixed income has material differences from an investment in a non-traded REIT, including those related to vehicle structure, investment objectives and restrictions, risks, fluctuation of principal, safety, guarantees or insurance, fees and expenses, liquidity and tax treatment.

Investing in commercial real estate assets involves certain risks, including but not limited to: tenants’ inability to pay rent; increases in interest rates and lack of availability of financing; tenant turnover and vacancies; and changes in supply of or demand for similar properties in a given market.

You should carefully review the “Risk Factors” section of our prospectus for a discussion of the risks and uncertainties that we believe are material to our business, operating results, prospects and financial condition. Except as otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This sales material must be read in conjunction with the prospectus in order to fully understand all the implications and risks of the offering of securities to which it relates. This sales material is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus.

Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for eligible, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time.

This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors or prospective investors, as applicable, receiving this material) and is intended solely for the use of the persons to whom it has been delivered.

Forward-Looking Statement Disclosure

This literature contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” and other similar terms, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks, uncertainties, and contingencies include, but are not limited to, the following: our ability to effectively raise capital in our offering; uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the implementation of our investment strategy; and other risk factors as outlined in our prospectus and periodic reports filed with the Securities and Exchange Commission. Although JLLIPT believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. JLLIPT undertakes no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in our expectations.