JLL Income Property Trust Announces Reductions in Fees; Increase to Dividend Yield

April 3, 2018 | Beth Glavosek | Blue Vault

JLL Income Property Trust has announced the reduction of fees on two of its publicly available share classes. Dealer manager fees on its Class A shares are reduced by 19% – from 1.05% to 0.85% of Net Asset Value (NAV). Dealer manager fees on its Class M-I shares were eliminated completely – from 0.05% to zero percent of NAV.

Notably, as dealer manager fees are deducted quarterly from dividends paid to stockholders, these reductions in share class-specific expenses effectively result in a comparable 5.9% increase in any future dividends paid to Class A stockholders and a 1.1% increase for Class M-I stockholders.

“We have been a market leader in providing an institutional-quality real estate solution at an institutional level of pricing since we launched JLL Income Property Trust in 2012,” comments Allan Swaringen, President & CEO of JLL Income Property Trust.  “We are pleased to once again put stockholders’ returns first.”

These share class specific expense reductions are effective as of April 1, 2018, and would first be reflected in JLL Income Property Trust’s second quarter 2018 dividend declaration, subject to board approval, payable in August 2018.

In other corporate filings, JLL Income Property Trust also amended certain organizational documents allowing it to adopt an “umbrella partnership” or UPREIT structure also effective as of April 1, 2018. The UPREIT structure is commonly used to facilitate tax-free contributions of properties in exchange for partnership interests, which may allow sellers to defer taxation of gains. 

“The Tax Cuts and Jobs Act of 2017 preserved the real estate industry’s longstanding practice of using Section 1031 like-kind exchanges to mitigate the negative tax consequences of selling and reinvesting in income producing commercial real estate,” Swaringen says. “With tax reform having resolved the uncertainty of using these like-kind exchanges, we felt it timely to be sure JLL Income Property Trust’s structure enabled us to provide these potential benefits to our stockholders in terms of both new sources of deal flow and potential investors.”

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