Grocery-Anchored Retail Strategy

Grocery-Anchored retail continues to play an important role in JLL Income Property Trust's diversifed commercial real estate portfolio. We focus on Grocery-Anchored retail as one of our core components based on three key beliefs, which are research-based and proven by experience:

Grocery-Anchored retail centers should remain resilient to the impact of e-commerce

Grocery-Anchored retail centers should continue to be a defensive sector that will deliver stable returns through adverse economic environments

JLL Income Property Trust has an edge in identifying the Grocery-Anchored centers that will out-perform through our proprietary research.

The majority of JLL Income Property Trust's retail portfolio consists of Grocery-Anchored retail properties, with minimal exposure to malls or big-box retail, and no exposure to recent high-prole retailers closing space such as Sears, Toys R' Us, Macy's or JCPenney.

Diversification

E-Commerce Resilient

While e-commerce growth has been upwards of 15%, the U.S. Census Bureau data shows that 91% of retail sales still take place in physical stores and continues to grow. The negative impact of e-commerce on physical retail sales is focused on certain types of retail, most notably

• lower quality malls - which are losing anchor department stores

• big-box centers - which are hurt by the total or partial migration of goods sales to online channels.

U.S. Census Bureau data shows that 97% of grocery sales are still in physical stores. The impact of ecommerce on this space has been largely limited to the most urban locations.

Grocery-Anchored retail centers are characterized by a major grocery store as the largest tenant with smaller shops or in-line tenants alongside. In-line tenants (restaurants, hair/nail salons, spas, dry cleaners, doctors'/dentists' offices and coffee shops) are typically selling goods and services that can not be easily be replaced by online shopping.

online_retail.jpg#asset:8924

Physical Retail Stores are still Large Enough to Matter

Historically, the Grocery-Anchored retail segment has been resilient to market distress. The tenancy in these centers is more necessity-based than other retail formats and other property types - meaning rents and occupancy are generally stable. In addition, the typical supermarket lease is long-term with a significant portion of the rental income guaranteed for years to come. There are no signs of stress in market fundamentals for grocery anchored retail. There are also no signs of future distress with low volumes of new retail construction and an increase in occupied space.

In addition to sustaining occupancy, Grocery-Anchored retail is well-positioned to deliver high and stable income returns to investors. The capital investment requirements to keep retail properties modern is more capitalization rates are typically higher than other property types.

Maintaining an Edge in Grocery- Anchored Retail

There are two key elements of a successful Grocery-Anchored center:

• a strong anchor supermarket
• a strong demographic area.

Both are critical to creating traffic to the center by shoppers who are able and willing to spend in both the supermarket and in-line shops.

We have a strong track record in focusing on supermarkets that are positioned to benefit from market trends. Within the supermarket business there is a movement towards more high-end and prepared foods. Tenants in our portfolio such as Whole Foods, Sprouts and Market of Choice are well-positioned to benefit from that trend. Meanwhile, main-stream grocers need to be superior operators to avoid being hurt by the continued growth of Wal-Mart. We believe HEB, Mariano’s and Kroger are among those that meet this criteria.

STARS

Supermarket Trade Area Scoring System

With respect to location, our Grocery-Anchored investments are guided by our proprietary Supermarket Trade Area Scoring System (STARS) database. This database tracks 40,000 grocery-anchored centers across the United States, and identifies locations based on demographics and nearby competition that have produced the best historic returns. Our portfolio is focused on the strongest locations nationwide, defined as those in the top 20% of our scoring. The benefit of this focus has been reflected in our current retail occupancy of 96%. This is above the national average for all property types and a driver of both income and bottom line cash flow to our investors.

STARS represents our proprietary spatial mapping of desirable and undesirable features, and helps us evaluate the bundle of neighborhood attributes that go along with any targeted investment. STARS relies heavily on data at the most granular possible layer of analysis – using :

• data within a 3-mile radius of specific Grocery-Anchored shopping center locations
• a composite score based on spending on necessity goods, income, density, and nearby competition.

Implementing our Grocery-Anchored retail strategy depends on an asset-by-asset review of acquisition opportunities with an asset average over $50 million. We have been able to successfully build a portfolio with our overall strategy based on stable value and income generation by focusing on the specifics of each property.

Conclusion

JLL Income Property Trust’s portfolio is diversified across all major property types and across major markets nationally. We believe this diversification, which includes retail, is critical to fulfilling all of the traditional roles that core commercial real estate plays in an investor’s overall portfolio.

The JLL Income Property Trust’s retail investment strategy is focused on Grocery-Anchored retail, which we believe will continue to deliver strong and stable income while remaining resilient as e-commerce has a disruptive impact on other types of retail formats.

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 (JLLIPT). 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 flow 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 the 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.