Press Release
JLL Income Property Trust Announces Tax Treatment of 2020 Distributions
February 5, 2021
JLL Income Property Trust, an institutionally managed daily NAV REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX) with more than $3.4 billion in portfolio assets, today announced the income tax treatment of its dividends paid in 2020. For the tax year ended December 31, 2020, approximately 57 percent of the distributions paid will qualify as non-dividend distribution or return of capital (box 3 on Form 1099) and approximately 43 percent of distributions paid will qualify as tax advantaged long-term capital gain (box 2a).
“Our primary investment objectives remain durability of dividend distributions and preservation of invested capital, and even amid the COVID-induced recession, we believe we delivered on that goal in 2020,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “We also strive to be a source of longer-term tax-advantaged income for stockholders and for the ninth year in a row we exceeded our target tax efficiency. Further, last year we accelerated the Payment Date of our quarterly dividends and paid five distributions to stockholders who held shares throughout 2020. This resulted in an effective 5.8 percent annualized distribution yield for 2020 on our M-I share class based upon the yearend share price of $11.62, however, this will normalize to four dividend payments in 2021. Finally, the 2017 Tax Cuts and Jobs Act continues to provide substantial tax savings to REIT investors.”
The table below summarizes the income tax treatment of distributions paid to Class A stockholders during the year ended December 31, 2020:
Record Date |
Payment Date |
Net Distribution per share (1) |
Capital Gain Income (2) |
Return of Capital |
Unrecaptured Section 1250 Gains |
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
12/30/2019 |
2/3/2020 |
$ |
0.11189 |
$ |
0.04867 |
43.5 |
% |
$ |
0.06322 |
56.5 |
% |
$ |
0.01992 |
|||||||||
3/25/2020 |
3/30/2020 |
0.11211 |
0.04877 |
43.5 |
0.06334 |
56.5 |
0.01996 |
|||||||||||||||
6/24/2020 |
6/29/2020 |
0.11239 |
0.04889 |
43.5 |
0.06350 |
56.5 |
0.02001 |
|||||||||||||||
9/24/2020 |
9/29/2020 |
0.11282 |
0.04908 |
43.5 |
0.06374 |
56.5 |
0.02008 |
|||||||||||||||
12/23/2020 |
12/30/2020 |
0.11280 |
0.04907 |
43.5 |
0.06373 |
56.5 |
0.02008 |
|||||||||||||||
Total |
$ |
0.56201 |
$ |
0.24448 |
43.5 |
% |
$ |
0.31753 |
56.5 |
% |
$ |
0.10005 |
||||||||||
(1) Distributions per share are net of dealer manager fees of 0.85%.
(2) Distributions include 17.8% of Unrecaptured Section 1250 Gain.
The table below summarizes the income tax treatment of distributions paid to Class M stockholders during the year ended December 31, 2020:
Record Date |
Payment Date |
Net Distribution per share (1) |
Capital Gain Income (2) |
Return of Capital |
Unrecaptured Section 1250 Gains |
||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
12/30/2019 |
2/3/2020 |
$ |
0.12600 |
$ |
0.05481 |
43.5 |
% |
$ |
0.07119 |
56.5 |
% |
$ |
0.02243 |
||||||||||
3/25/2020 |
3/30/2020 |
0.12649 |
0.05502 |
43.5 |
0.07147 |
56.5 |
0.02252 |
||||||||||||||||
6/24/2020 |
6/29/2020 |
0.12683 |
0.05517 |
43.5 |
0.07166 |
56.5 |
0.02258 |
||||||||||||||||
9/24/2020 |
9/29/2020 |
0.12661 |
0.05508 |
43.5 |
0.07153 |
56.5 |
0.02254 |
||||||||||||||||
12/23/2020 |
12/30/2020 |
0.12719 |
0.05533 |
43.5 |
0.07186 |
56.5 |
0.02264 |
||||||||||||||||
Total |
$ |
0.63312 |
$ |
0.27541 |
43.5 |
% |
$ |
0.35771 |
56.5 |
% |
$ |
0.11271 |
|||||||||||
(1) Distributions per share are net of dealer manager fees of 0.30% of NAV.
(2) Distributions include 17.8% of Unrecaptured Section 1250 Gain.
The table below summarizes the income tax treatment of distributions paid to Class A-I stockholders during the year ended December 31, 2020:
Record Date |
Payment Date |
Net Distribution per share (1) |
Capital Gain Income (2) |
Return of Capital |
Unrecaptured Section 1250 Gains |
||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
12/30/2019 |
2/3/2020 |
$ |
0.12674 |
$ |
0.05513 |
43.5 |
% |
$ |
0.07161 |
56.5 |
% |
$ |
0.02256 |
||||||||||
3/25/2020 |
3/30/2020 |
0.12681 |
0.05516 |
43.5 |
0.07165 |
56.5 |
0.02257 |
||||||||||||||||
6/24/2020 |
6/29/2020 |
0.12753 |
0.05548 |
43.5 |
0.07205 |
56.5 |
0.02270 |
||||||||||||||||
9/24/2020 |
9/29/2020 |
0.12632 |
0.05495 |
43.5 |
0.07137 |
56.5 |
0.02248 |
||||||||||||||||
12/23/2020 |
12/30/2020 |
0.12715 |
0.05531 |
43.5 |
0.07184 |
56.5 |
0.02263 |
||||||||||||||||
Total |
$ |
0.63455 |
$ |
0.27603 |
43.5 |
% |
$ |
0.35852 |
56.5 |
% |
$ |
0.11294 |
|||||||||||
(1) Distributions per share are net of dealer manager fees of 0.30% of NAV.
(2) Distributions include 17.8% of Unrecaptured Section 1250 Gain.
The table below summarizes the income tax treatment of distributions paid to Class M-I stockholders
during the year ended December 31, 2020:
Record Date |
Payment Date |
Net Distribution per share |
Capital Gain Income (1) |
Return of Capital |
Unrecaptured Section 1250 Gains |
||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
12/30/2019 |
2/3/2020 |
$ |
0.13500 |
$ |
0.05873 |
43.5 |
% |
$ |
0.07628 |
56.5 |
% |
$ |
0.02403 |
||||||||||
3/25/2020 |
3/30/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
6/24/2020 |
6/29/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
9/24/2020 |
9/29/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
12/23/2020 |
12/30/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
Total |
$ |
0.67500 |
$ |
0.29365 |
43.5 |
% |
$ |
0.38140 |
56.5 |
% |
$ |
0.12015 |
|||||||||||
(1) Distributions include 17.8% of Unrecaptured Section 1250 Gain.
The table below summarizes the income tax treatment of distributions paid to Class D stockholders during the year ended December 31, 2020:
Record Date |
Payment Date |
Net Distribution per share |
Capital Gain Income (1) |
Return of Capital |
Unrecaptured Section 1250 Gains |
||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
12/30/2019 |
2/3/2020 |
$ |
0.13500 |
$ |
0.05873 |
43.5 |
% |
$ |
0.07628 |
56.5 |
% |
$ |
0.02403 |
||||||||||
3/25/2020 |
3/30/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
6/24/2020 |
6/29/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
9/24/2020 |
9/29/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
12/23/2020 |
12/30/2020 |
0.13500 |
0.05873 |
43.5 |
0.07628 |
56.5 |
0.02403 |
||||||||||||||||
Total |
$ |
0.67500 |
$ |
0.29365 |
43.5 |
% |
$ |
0.38140 |
56.5 |
% |
$ |
0.12015 |
|||||||||||
(1) Distributions include 17.8% of Unrecaptured Section 1250 Gain.
The dollar amount reported on each investor's respective 1099-DIV will depend on the total amount of distributions received throughout the year which can be affected by the share class held and the length of time the shares were owned.
This release is based on the preliminary results of work on the company's tax filings and may be subject to adjustment. The income tax allocation for the distributions discussed above has been calculated using the best available information as of the date of the release. The company is releasing information at this time to aid those required to distribute Forms 1099 on the company's distributions. Tax treatment of distributions is dependent on a number of factors and there is no guarantee that future distributions will qualify as a non-dividend distribution, return of capital, or long-term capital gain.
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.