Global real estate provides a potential source of diversification for a well-rounded investment portfolio. Investing across various geographic regions and economies may provide expanded opportunities for accessing global commercial real estate. International investments are subject to unique risks, including those related to complying with international law and taxes, potential political and economic instability and currency fluctuations.
JLL Income Property Trust has an optimized structure designed to offer a range of next-generation benefits, including:
* After a 1-year holding period, stockholders may request on a daily basis that the company repurchase all or a portion of their shares. Share repurchases each calendar quarter are limited to 5% of the total NAV, which means that in any 12-month period repurchases will be limited to approximately 20% of the total NAV. The majority of the company's assets will consist of properties that cannot generally be liquidated quickly. The repurchase plan is subject to certain other conditions, limitations, and to modification or suspension by the board of directors.
For many, home ownership represents a significant percentage of their personal assets. However, any one residential asset should not be the critical component of a long-term real estate investment strategy. Typically, an owner-occupied residence does not produce income and cannot be relied on to provide sufficient diversification, liquidity, or appreciation potential.
Real estate is an essential asset class, ranking behind only stocks and bonds in terms of dollars invested — representing over $6 trillion of global market value. World populations are expected to grow steadily in the decades ahead, thus demand for real estate — land, homes, offices, retail sites, and more — should remain strong, especially as the economic outlook transitions into a more positive phase.
Against this backdrop, commercial real estate is frequently targeted by sophisticated institutional investors who see it as a key component of a balanced, long-term asset allocation strategy.
Investment real estate can be categorized according to its primary characteristics and perceived quality. One such category, known as core real estate, is typically associated with lower-risk, higher-quality, income-producing properties, such as newer commercial buildings with high occupancy rates, favorable lease terms, creditworthy tenants, and desirable locations. Core real estate is typically considered a more conservative component of a real estate investment strategy.
A real estate investment trust (REIT) is an investment vehicle that combines the assets of numerous investors to purchase, and share ownership in a varied portfolio of institutional-quality properties and real estate-related assets. This structure lets investors share in regular distributions and future capital appreciation of the properties owned by the REIT. This method of investment offers several advantages, including:
In short, a REIT enables individuals to invest in commercial real estate more easily and efficiently.
*If JLLIPT fails to maintain its REIT status, it would be subject to serious adverse tax consequences that would cause a reduction in cash available for distribution.
A “listed” REIT is one whose shares are listed and traded on a public stock exchange, such as the NASDAQ or the NYSE.
A “non-listed” REIT has essentially the same purpose, structure, and advantages of a listed REIT, except it is not publicly traded on any stock exchange and its share price (net asset value) is therefore not driven by the fluctuations of the stock market. At the same time, a non-listed REIT must follow the same public company financial filing and disclosure requirements imposed on a listed REIT. Compared to listed REITs, shares of JLL Income Property Trust have less liquidity and price transparency.