Press Release

JLL Income Property Trust Announces Q3 2019 Portfolio Results

November 21, 2019 — Chicago

Increased total assets to over $3.0 billion and equity to over $1.9 billion.
Acquired four new properties in the third quarter, bringing the portfolio to a total of 75 properties.
Experienced robust leasing activity with 1.1 million square feet of new and renewed leases in 2019 with an average rental rate increase of 2.3 percent.
Invested approximately $14 million in capital improvements of existing portfolio in 2019 geared toward maintaining higher occupancies.
Increased portfolio occupancy to 96 percent with occupancies by property segment of 93 percent for Apartments, 98 percent for Industrial, 91 percent for Office and 93 percent for Grocery-Anchored Retail.
Provided net of fees total returns for the quarter of 1.0 percent for both Class A and M shares.
Quarterly dividends have been declared for 32 consecutive quarters, with an average annual increase of 5 percent over that eight-year period.

Chicago (November 21, 2019) – JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX ; ZIPTMX ; ZIPIAX ; ZIPIMX ) today announced the results of its execution on a number of strategic initiatives in the third quarter 2019, which helped drive investment performance while positioning the company for future growth and enhanced stockholder value.

JLL Income Property Trust ended the quarter with $3.0 billion in total assets made up of a geographically diversified portfolio of 75 core properties spanning the apartment, industrial, office and grocery-anchored retail property sectors. With late-cycle market conditions continuing to build, JLL Income Property Trust has proactively decreased its leverage ratio to 35 percent at the end of the third quarter.

In the third quarter, JLL Income Property Trust added two new apartment communities to its portfolio, while benefitting from strong property-type fundamentals as vacancies declined to just 3.7 percent, down 50 basis points from a year ago. The $55 million acquisition of Presley Uptown, a 230-unit community in Charlotte, combined with the $72 million acquisition of Summit at San Marcos, a newly-developed 273-unit community in Phoenix, have raised the portfolio’s apartment allocation to 34 percent with over 3,600 units valued at just under $1 billion.

The allocation to Industrial properties grew to 6.5 million square feet with the $25.7 million acquisition of Taunton Distribution Center in one of Greater Boston’s premier industrial ‘super parks.’ Third-quarter industrial rental growth continued its upward trend, and competition for quality space is expected to grow rents throughout the rest of 2019 and into 2020. The portfolio has benefited from these trends as the 25 percent industrial allocation finished the quarter with 98 percent occupancy.

Finally, Genesee Plaza was added to the portfolio for $90 million as a two-building medical office campus in San Diego. The medical office sector has been identified as a defensive, low beta real estate investment strategy for late-cycle investing by LaSalle Investment Management’s Research & Strategy Group as they continually evaluate individual property sectors in order to uncover better risk adjusted return opportunities.

“JLL Income Property Trust continues to fulfill key portfolio investment goals of reliable income and moderate NAV growth over time while maintaining a high-quality portfolio of institutional-caliber investments,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “We believe both property type and geographic market diversification will strengthen our investment performance as we continue to add value to our current portfolio and further diversify our investments through the last quarter of the year and into 2020,” he said.

In November 2019, the JLL Income Property Trust Board of Directors approved a gross dividend of $0.135 – marking thirty-two consecutive quarterly dividends beginning with the first quarter 2012. The dividend has increased six times since inception with an average annual increase of 5 percent.

JLL Income Property Trust is an institutionally managed, daily NAV REIT that gives investors access to a growing portfolio of commercial real estate investments selected by an institutional investment management team and sponsored by one of the world’s leading real estate services firms.

For more information on JLL Income Property Trust, please visit our website at www.jllipt.com

About JLL Income Property Trust, Inc., Inc. (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX)

JLL Income Property Trust, Inc. (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), is a daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing residential, industrial, grocery-anchored retail, healthcare, office and debt investments throughout the United States. JLL Income Property Trust expects to further diversify its real estate portfolio over time, including on a global basis.

About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, LaSalle manages $88.2 billion of assets in private and public real estate equity and debt investments as of Q3 2024. LaSalle's diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.

For more information, please visit www.lasalle.com, and LinkedIn.

Investing today. For tomorrow.

Forward Looking Statements

This press release may contain forward-looking statements with respect to JLL Income Property Trust. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management’s intentions, beliefs, expectations, research, market analysis, plans or predictions of the future. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. Past performance is not indicative of future results and there can be no assurance that future dividends will be paid.

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.

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