JLL Income Property Trust, a non-traded daily net asset value real estate investment trust sponsored by international commercial real estate services giant Jones Lang LaSalle Incorporated, reported in a letter to stockholders this week that the REIT recorded annualized performance of 10% in 2022, of which 3.9% consisted of income.
“This past year was a tale of two halves,” wrote Allan Swaringen, president and chief executive officer.
Swaringen related that 2022 began strong but that Federal Reserve actions to mitigate inflation resulted in “significant interest rate hikes” that made the second half of 2022 much more erratic, although the company claims that the sectors which were most affected weren’t within their primary target investment strategy.
The company had a 9.97% year-to-date total return for class M-I shares compared to the 8.57% since inception. Its portfolio reached $7.1 billion in assets, with 137 properties across 27 states, comprising of more than 19.1 million commercial square feet.
The REIT’s portfolio is currently weighted 74% to industrial and residential properties, which they believe are among the commercial real estate sectors that have the “most inflation-hedging ability.” The company’s portfolio was 96% leased as of Dec. 31, 2022.
JLL Income Property Trust acquired 24 properties in 2022 totaling nearly $1 billion. The fourth quarter return was -2.7%, consisting of 1.0% income return and -3.6% appreciation return.
The company has paid 44 consecutive quarterly distributions since inception and increased their dividend for the seventh time in the first quarter of 2022. The company also honored all redemption requests received via its share repurchase plan during the year and that fourth quarter redemption requests were 40% below its maximum capacity of $181 milion.
“We will continue to focus on the best long-term value creating opportunities in alignment with our core investing principles by investing in high-quality, well-located, essential use real estate that over the long term outperforms across market cycles and can be a durable source of income and a store of wealth,” wrote Swaringen.
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