Press Release
JLL Income Property Trust Announces Q2 2019 Portfolio Results
July 29, 2019
- Acquired four new properties in 2019, bringing the portfolio to 71 properties with an asset value of $2.7 billion.
- Experienced robust leasing activity, with 700,000 square feet of new and renewed leases completed during the quarter.
- Invested approximately $6 million of capital improvements in existing portfolio geared towards maintaining higher occupancies.
- Increased portfolio occupancy to 96 percent with occupancies by segment at 93 percent for Apartment, 99 percent for Industrial, 92 percent for Office and 94 percent for Retail.
- Continued balance sheet deleveraging resulting in a leverage ratio of 33 percent in line with late-cycle de-risking strategy.
- Declared quarterly dividends for 30 consecutive quarters, with an average annual increase of 5 percent over that seven-year period.
- Dividends per share increased 4 percent year over year to an annualized $0.54
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 second quarter of 2019, which helped drive investment performance while positioning the company for future growth and enhanced stockholder value.
For the year to date, JLL Income Property Trust has grown to $2.7 billion in total assets with a geographically diversified portfolio of 71 core properties spanning the apartment, industrial, office and grocery-anchored retail property sectors. Recognizing that the economy may be in the later stages of the current cycle, JLL Income Property Trust has continued to deleverage the balance sheet, resulting in a leverage ratio of 33 percent at the end of the second quarter.
In the first half of 2019, the industrial portfolio allocation was increased with the acquisition of three new warehouse properties. The addition of two warehouses totaling 240,000 square feet in the Oakland / East Bay area and a 200,000 square feet distribution center in Dallas has brought the total industrial portfolio to 31 properties valued at more than $675 million which represents a 26 percent portfolio allocation.
Industrial rental growth continues its upward trend, and continued competition for quality space is expected to add pressure on rents through 2019. There continues to be strong demand in the industrial sector, as vacancy rates are near all-time historic lows. The signing of a 400,000-square-foot lease at Kendall Distribution Center in Atlanta and the renewal of a 37,000-square-foot lease at our Dallas / Fort Worth Distribution Center have brought the portfolio’s industrial occupancy to 99 percent.
“We are pleased with our recent acquisitions and significant leasing activity in the second quarter, particularly with the strengthening of our industrial portfolio where we have high-performing warehouses throughout the country,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “As our program advances through its seventh year, we remain focused on driving long-term investment performance for stockholders.”
In the remaining property sectors, JLL Income Property Trust acquired a 280-unit apartment community in Seattle, bringing the apartment allocation to over 3,000 units across 13 properties. While the portfolio remains underweight in the office property sector, four of the portfolio’s current six office properties are medical office buildings. The focus on medical office buildings is a result of their historically higher tenant retention rates and stable income. The most recent portfolio addition is a two-building medical office campus in San Diego.