Press Release

JLL Income Property Trust Reports Strong First Quarter Portfolio Performance

May 30, 2018 — Chicago

JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), announced its operating results for the first quarter of 2018.

“Our operating performance throughout 2017, and intensive asset management into this year have positively impacted the investment performance of our portfolio. We were also pleased to announce the reduction in fees that will increase the net dividend yield for our Class A and Class M-I stockholders,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “As our program advances through its sixth year, we remain focused on driving long-term investment performance for stockholders.”

First Quarter 2018 Highlights
• Increased total revenues to $42 million in the first quarter, up by approximately $2 million or 6 percent over the prior year.
• Achieved first quarter total net of fees returns of 1.3 percent and 1.6 percent on our Class A and Class M shares, respectively, delivering annualized total returns of 6.5 percent and 7.1 percent, respectively since launching our initial public offering in October 2012.
• Increased the first quarter dividend payment by 4 percent from the prior distribution representing the fifth time JLL Income Property Trust has raised its dividend since 2012. Paid quarterly dividends for 25 consecutive quarters, with an average annual increase of 5.4 percent.
• Approved a gross distribution for the second quarter of 2018 at $0.13 per share, subject to class-specific fees. Effective April 1st, dealer manager fees on Class A shares were reduced by 19 percent, and dealer manager fees were completely eliminated on Class M-I shares.
• Achieved a NAV of approximately $1.6 billion, demonstrating steady growth, and the ability to execute our strategic plan to position JLL Income Property Trust as the market’s leading daily NAV REIT.

Portfolio Highlights
• Invested approximately $6.8 million of capital improvements in our existing portfolio geared towards maintaining our higher occupancies.
• Maintained high occupancy at 94 percent, with occupancies by segment at 96 percent for Apartment, 93 percent for Industrial, 92 percent for Office and 95 percent for Retail.
• Experienced robust leasing activity, with 70,000 square feet of new and renewal leases completed during the quarter and almost 700,000 square feet leased over the past 12 months. Our weighted average lease duration on March 31st was 6.1 years, in line with the prior quarter.
• Decreased overall company leverage ratio from 39 percent at the end of Q4 to 38 percent at the end of Q1 in line with our strategy to maintain a low leverage ratio of somewhere between 30 and 50 percent.
• Disposed of Station Nine Apartments, a property that no longer aligned with the fund’s investment strategy, for $75 million, resulting in a GAAP accounting gain of $29.7 million.
• Earned LEED Silver certification for Pioneer Tower, a 300,000-square-foot office building in Portland, Oregon which also recently earned the U.S. Environmental Protection Agency’s ENERGY STAR certification signifying that the building performs in the top 25 percent of similar facilities nationwide for energy efficiency.

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 | Investing Today. For Tomorrow.

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. 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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