JLL Income Property Trust Announces Tax Treatment of 2019 Distributions
February 5, 2020
CHICAGO, Feb. 5, 2020 /PRNewswire/ — JLL Income Property Trust, an institutionally managed, daily valued perpetual life REIT (NASDAQ: ZIPTAX; ZIPTMX; ZIPIAX; ZIPIMX), today announced the income tax treatment of its 2019 dividends. For the tax year ended December 31, 2019, dividend tax reporting will show 100% long-term capital gain.
As discussed in the company’s August 13, 2019 press release and subsequent 8-K filing, the company’s third quarter 2019 dividend included a $0.04 per share special dividend to reduce certain state income taxes due from the capital gains on the sale of 111 Sutter Street, a San Francisco multi-tenant office property sold in February 2019. In that communication to stockholders, the company estimated that the $120 million in taxable gain from the 111 Sutter sale would be fully sheltered from federal taxation at the company level but would result in dividends paid throughout 2019 to be characterized as long-term capital gain – a reduced tax rate as compared to ordinary income tax rates for most stockholders.
“Our primary investment objectives remain durability of dividend distributions and preservation of invested capital,” said Allan Swaringen, President and CEO of JLL Income Property Trust. “However, we also strive to be a source of longer-term tax-advantaged income for stockholders. The 111 Sutter Street sale last year was strategic in terms of underweighting our portfolio allocation to higher risk markets and property types,” noted Swaringen. “Additionally, at Sutter’s $227 million sale price, we chose to reinvest the proceeds across multiple new property and market investments, further diversifying our portfolio and establishing a higher depreciable basis in those new investments for the long-term tax benefits of current and future stockholders in lieu of completing a 1031 like-kind exchange as we have done with previous dispositions.”
