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Jones Lang LaSalle Income Property Trust Announces Results of 4Q 2013 Portfolio Activities

February 24, 2014 — Chicago

• Acquired three 100% leased properties, disposed of 15 properties
• Increased portfolio occupancy from 92% to 96%
• Reduced weighted average cost of debt from 5.6% to 4.4%
• Increased fourth quarter dividend by 10%

Jones Lang LaSalle Income Property Trust, Inc., an institutionally-managed, non-listed, daily valued perpetual life REIT, today announced the results of its execution on a number of strategic initiatives in the fourth quarter of 2013, positioning its portfolio of diversified core properties for future growth and enhanced stockholder value.

During the fourth quarter, it acquired three, 100-percent-leased, industrial properties for $39 million. In three separate transactions, it also disposed of 15 properties that no longer complemented the core strategy, generating $72 million in net proceeds for reinvestment. It also refinanced five apartment properties within the portfolio, reducing the weighted average interest rate on those loans from 5.57 percent to 2.61 percent. These combined activities reduced 2014 debt maturities from $220 million to $12 million.

“The fourth quarter accomplishments of our asset management team completed an extraordinarily productive year,” commented Allan Swaringen, President and CEO of Jones Lang LaSalle Income Property Trust. “As we began 2013, we told stockholders that we would reduce our leverage on an accretive basis, acquire new properties to further diversify our holdings, and strengthen our liquidity and balance sheet. Having executed on each of these objectives, we also increased our fourth quarter dividend by 10 percent. As we grow our portfolio of diversified core properties, we remain committed to actively managing our portfolio to provide attractive income returns, preserve value and generate moderate appreciation over time for our stockholders.”

In addition to the fourth quarter accomplishments, Jones Lang LaSalle Income Property Trust significantly improved its operating metrics throughout 2013. By retiring debt, refinancing mortgage loans and acquiring new properties, the company-wide leverage ratio was reduced to 45 percent from 63 percent a year earlier. Its weighted average cost of debt also declined from 5.6 percent to 4.4 percent at year-end. Portfolio occupancy was 96 percent at year-end, up from 92 percent at the beginning of the year. Earlier in the year, it secured a $40 million revolving line of credit – enhancing its ability to pursue new acquisitions and providing additional liquidity for working capital.

Since the fourth quarter of 2012, Jones Lang LaSalle Income Property Trust has acquired nine new properties totaling over $200 million in new investments, including two grocery-anchored, community retail centers located in strong suburban markets, six 100-percent-leased industrial properties in national distribution hubs and a seven-level parking garage located in the heart of Miami’s South Beach. These new investments are expected to provide stable income while further diversifying its portfolio across multiple property types and geographic markets.


Jones Lang LaSalle Income Property Trust is a non-listed, daily valued perpetual life real estate investment trust (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.

For more information on Jones Lang LaSalle Income Property Trust, please visit our website at www.jllipt.com. 


About JLL Income Property Trust

Jones Lang LaSalle Income Property Trust, Inc. is a daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing office, retail, industrial and apartment properties located primarily in the United States. JLL Income Property Trust expects to further diversify its real estate portfolio over time, including on a global basis. For more information, visit www.jllipt.com. 

About LaSalle Investment Management

LaSalle Investment Management, Inc., a member of the JLL group and advisor to JLL Income Property Trust, is one of the world’s leading global real estate investment managers with nearly 700 employees in 17 countries worldwide and approximately $60 billion of assets under management of private and public property equity and debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, endowments and private individuals from across the globe. For more information, visit www.lasalle.com. 

Forward Looking Statements

This press release may contain forward-looking statements with respect to JLL Income Property Trust. Forward-looking statements are statements that are not descriptions of historical facts and include statements regarding management’s intentions, beliefs, expectations, plans or predictions of the future. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from those expressed or implied by such forward-looking statements. 

Summary of Risk Factors

You should read the prospectus carefully for a description of the risks associated with an investment in JLL Income Property Trust. Some of these risks include but are not limited to the following:

  • Since there is no public trading market for shares of our common stock, repurchases of shares by us after a one-year minimum holding period will likely be the only way to dispose of your shares.
  • After a required one-year holding period, we limit the amount of shares that may be repurchased under our repurchase plan to approximately 5% of our net asset value (NAV) per quarter and 20% of our NAV per annum. Because our assets will consist primarily of properties that generally cannot be readily liquidated, we may not have sufficient liquid resources to satisfy repurchase requests. Further, our Board of Directors may modify or suspend our repurchase plan if it deems such action to be in the best interest of our stockholders. As a result, our shares have limited liquidity and at times may be illiquid.
  • The purchase and redemption price for shares of our common stock will be based on the NAV of each class of common stock and will not be based on any public trading market. Because valuation of properties is inherently subjective, our NAV may not accurately reflect the actual price at which our assets could be liquidated on any given day.
  • We are dependent on our advisor to conduct our operations. We will pay substantial fees to our advisor, which increases your risk of loss.
  • We have a history of operating losses and cannot assure you that we will achieve profitability.
  • Our advisor will face conflicts of interest as a result of, among other things, time constraints, allocation of investment opportunities, and the fact that the fees it will receive for services rendered to us will be based on our NAV, which it is responsible for calculating.
  • The amount of distributions we make is uncertain and there is no assurance that future distributions will be made. We may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, or offering proceeds.
  • Our use of leverage increases the risk of your investment.
  • If we fail to maintain our status as a REIT, and no relief provisions apply, we would be subject to serious adverse tax consequences that would cause a significant reduction in our cash available for distribution to our stockholders and potentially have a negative impact on our NAV.

Forward-Looking Statement Disclosure

This literature contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “should,” “will,” and other similar terms, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors that may cause the actual results to differ materially from those anticipated at the time the forward looking statements are made. These risks, uncertainties, and contingencies include, but are not limited to, the following: our ability to effectively raise capital in our offering; uncertainties relating to changes in general economic and real estate conditions; uncertainties relating to the implementation of our investment strategy; and other risk factors as outlined in our registration statement on Form S-11 (Registration No. 333-196886) and periodic reports filed with the Securities and Exchange Commission. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. We undertake no obligation to update any forward-looking statement contained herein to conform the statement to actual results or changes in our expectations.

This sales and advertising literature is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus. This literature must be read in conjunction with the prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus led with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any other state securities regulator has approved or disapproved of our common stock, determined if the prospectus is truthful or complete, or passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense.
This sales and advertising literature is neither an offer to sell nor a solicitation of an offer to buy securities. An offering is made only by the prospectus. This literature must be read in conjunction with the prospectus in order to fully understand all of the implications and risks of the offering of securities to which the prospectus relates. A copy of the prospectus must be made available to you in connection with any offering. No offering is made except by a prospectus led with the Department of Law of the State of New York. Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any other state securities regulator has approved or disapproved of our common stock, determined if the prospectus is truthful or complete, or passed on or endorsed the merits of this offering. Any representation to the contrary is a criminal offense.

Many states have additional suitability standards. Please see the prospectus for suitability standards in your state.