Press Release

JLL Income Property Trust Closes Senior Secured Real Estate Loan

September 21, 2023 — Chicago

JLL Income Property Trust Announces Q4 2022 and Full-Year Earnings Call

JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with more than $7 billion in portfolio equity and debt investments, announced today that it originated a $27 million floating rate first mortgage loan secured by a newly constructed, institutional quality apartment community in suburban Austin, Texas.

The loan has an initial three-year term and earns an interest rate of 2.95% above SOFR – the Secured Overnight Financing Rate – and is currently projected to deliver a yield of between 7 - 8%. In an environment where traditional real estate debt sources are facing balance sheet and legacy portfolio challenges resulting in significantly curtailed lending, JLL Income Property Trust is diversifying beyond its traditional private equity pursuits into private credit, while maintaining its disciplined core-focused investment strategy. By directly sourcing floating rate, senior secured real estate loans that complement and further diversify its multi-sector property portfolio, JLL Income Property Trust intends to capitalize on the current void in the debt capital markets, targeting accretive investments that also enhance investment performance. Underwriting real estate credit through its disciplined research and strategy-led investment process is a core competency of JLL Income Property Trust’s advisor LaSalle Investment Management and its affiliates, which have originated more than $5 billion of real estate loans globally and have 20-plus years of experience in real estate debt investing across multiple economic cycles.

“Diversifying JLL Income Property Trust’s investments beyond private and public equity, and into that third quadrant of private debt, is an undertaking begun several years ago and was envisioned when we launched IPT 11 years ago,” said Allan Swaringen, President, and CEO of JLL Income Property Trust. “JLL and LaSalle’s global expertise in debt capital markets is well known and highly regarded around the world. However, until the Fed recently handed us a double-edged sword of higher interest rates coupled with stress among regional banks and foreclosures in office, mall and hotel property sectors that widened credit spreads – returns on real estate debt had been compressing for years and, on a risk-adjusted basis, were below our targets. The economics of private credit have now swung dramatically in favor of investors, and we intend to seize on this opportunity for our stockholders.”

Swaringen also noted, “With a preferential position to the substantial equity invested in this property, we believe this floating rate, senior secured loan has structural downside protection while also delivering attractive, durable income, along with meaningful diversification to our core equity portfolio. We intend to originate a diversified portfolio of similarly structured loans with strong sponsorship in attractive markets. Over time, we aspire to grow a meaningful allocation to floating rate loans that complement our equity investments, enhance cash flows, support our dividend growth ambitions, and provide attractive risk-adjusted returns for our investors. Over our 11-year history, actively managing our portfolio allocations to LaSalle’s Research and Strategy group’s ‘best ideas’ has been a strong contributor to JLL Income Property Trust’s investment performance.”

Recently constructed and nearly 90% leased, the property securing the loan consists of 191 units spread across two four-story residential buildings. It features a wide range of amenities designed to appeal to its targeted active adult residents. Approximately 20 miles from Austin’s central business district, the community is in a prosperous, high-growth population area surrounded by major employers including the University of Texas, Dell Technologies, Apple and Tesla among others. Complemented by strong institutional ownership, the location is immediately convenient to restaurants, retail stores, a farmer’s market and a super-regional shopping mall. According to Niche.com, the local school district is A+ rated, aligning with JLL Income Property Trust’s highly rated school district residential strategy.

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 apartment, industrial, grocery-anchored retail, healthcare and office properties located in 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

LaSalle Investment Management, Inc. a member of the JLL group and advisor to JLL Income Property Trust, is one of the world’s leading real estate investment managers with approximately $86.6 billion equity and debt investments under management (as of Q3 2023). 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. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Inc. (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.

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. 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.

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