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JLL Income Property Trust Reports 6% Growth in Revenue in 1Q18

JLL Income Property Trust, a non-traded daily NAV REIT sponsored by Jones Lang LaSalle (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), announced its operating results for the first quarter of 2018.

JLL Income Property Trust, a non-traded daily NAV REIT sponsored by Jones Lang LaSalle (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,” said Allan Swaringen, president and CEO of JLL Income Property Trust. “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.”

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.

• Adjusted funds from operations was approximately $15.5 million in the first quarter of 2018 compared to nearly $15.3 million for the same period last year.

• Funds from operations for the first quarter were $18.5 million compared to $17 million for the first quarter of 2017.

• Net income attributable to common stockholders was approximately $32.6 million in the first quarter of 2018 compared to ($742,000) for the same period last year.

• Achieved first quarter total net of fees returns of 1.3 percent and 1.6 percent on Class A and Class M shares, respectively, delivering annualized total returns of 6.5 percent and 7.1 percent, respectively since launching the initial public offering in October 2012.

• Increased the first quarter dividend payment by 4 percent from the prior distribution representing the fifth time the REIT 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 eliminated on Class M-I shares.

Portfolio Highlights

• Invested approximately $6.8 million of capital improvements in the existing portfolio geared towards maintaining higher occupancies.

• Sold 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.

• Maintained 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.

• Completed 70,000 square feet of new and renewal leases during the quarter and almost 700,000 square feet leased over the past 12 months. The weighted average lease duration at 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.

• 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.

Jones Lang LaSalle Income Property Trust owns and manages a $2.2 billion portfolio of 54 office, retail, industrial and apartment properties located primarily in the United States. Since 2012, the company has raised a total of approximately $1.5 billion through its ongoing public and various private offerings, as well as its distribution reinvestment plan.

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