Real Estate Performance

High-quality (core) commercial real estate as an asset class has historically outperformed most other asset classes, delivering a 7.9% annualized total return over the last 15 years ending in 2014 (see Figure A below). This exceeded the returns on stocks and corporate bonds over the same time period.

How will you meet your investment goals in a world of stubbornly low yields and unsettling market volatility?

Potential Source of Income from Distributions

Income has been an essential component of the attractive long term total returns provided by commercial real estate as an asset class. Historically, 70% of the total returns from commercial real estate, according to the NCREIF Index, have come in the form of income rather than capital appreciation. Over the last 15 years, the annual income returns generated from investing in commercial real estate have been more than 2.5 times higher than stocks and lagged bonds by only 50 basis points (see Figure B below).

Figure 1 - Historical Return Comparison
Figure A

Real Estate Returns Comparison
Figure B

Commercial real estate often provides a steady source of income based on the rent paid by tenants. As a result, an investment in a REIT that owns a portfolio of real estate investments may be a good choice for investors who seek regular distributions. Distributions from JLL Income Property Trust are not guaranteed and may be paid from sources other than cash flow from operations.