August 13, 2019 — Chicago
JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), announced that on August 8, 2019 its Board of Directors approved a gross dividend for the third quarter of 2019 of $0.175 per share, which includes a one-time, special dividend of $0.04 per share and a regular dividend of $0.135 per share. The $0.04 per share special dividend allows the company to reduce certain state income taxes due from the capital gains on the sale of 111 Sutter Street. JLL Income Property Trust has declared thirty-one consecutive quarterly dividends to its stockholders beginning with the first quarter 2012.
The dividend is payable on or around November 1, 2019 to stockholders of record as of September 27, 2019. On an annualized basis, the regular portion of the gross dividend is equivalent to $0.54 per share and represents a yield of approximately 4.4 percent on a NAV per share of $12.21 as of August 7, 2019. All stockholders will receive $0.175 per share less applicable share class specific fees and the annualized yield will differ based on the share class.
“In keeping with our late cycle de-risking portfolio strategy,” noted Allan Swaringen, President and CEO of JLL Income Property Trust, “the 111 Sutter sale earlier this year was strategic in terms of underweighting our portfolio allocation to higher beta markets and property types – in this case, San Francisco multi-tenant office properties.”
The sale generated a $120 million taxable gain that was fully sheltered from federal taxation at the company level and should result in dividends paid throughout 2019 to be characterized as long-term capital gain, a reduced tax rate as compared to ordinary income tax rates for most stockholders. Certain states also assess REITs income taxes.
Swaringen added, “through the special dividend, totaling approximately $6 million, along with other tax mitigation efforts, the company saved over $2 million from our initial state tax estimates. In these situations, which are fairly unique, we would rather pay cash to our stockholders in the form of special dividends than have the company incur taxes.”
A second quarter dividend of $0.135 per share, less applicable share class specific fees, was paid according to the table below on August 1, 2019 to stockholders of record as of June 27, 2019.
M-I Share1 | A-I Share2 | M Share3 | A Share4 | |
---|---|---|---|---|
Q2 Quarterly Gross Dividend per Share | $0.13500 | $0.13500 | $0.13500 | $0.13500 |
Less: Dealer Manager Fee per Share | - | ($0.00847) | ($0.00857) | ($0.02286) |
Q1 Quarterly Net Dividend per Share | $0.13500 | $0.12653 | $0.12643 | $0.11214 |
NAV per Share as of June 30, 2019 | $12.18 | $12.19 | $12.18 | $12.16 |
Annualized Net Dividend Yield Based on NAV as of June 30, 2019 | 4.4% | 4.2% | 4.2% | 3.7% |
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.
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 $79 billion equity and debt investments under management (as of Q4 2022). 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.
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.
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:
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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