JLL Income Property Trust Launches New Share Classes
JLL Income Property Trust, an institutionally managed, daily net asset value real estate investment trust with approximately $6.5 billion in portfolio equity and debt investments, announced the launch of four new share classes of its common stock, as well as the renaming of an existing class.
“We have filed various amended corporate documents and agreements to allow us to offer these four additional share classes of our common stock. These new share classes offer an investment in the same portfolio as all our other common shares and come with the same rights and benefits as our other private and public share classes,” said C. Allan Swaringen, president and chief executive officer of JLL Income Property Trust.
The primary changes include:
- Increasing the total authorized capital stock to 2.05 billion shares, which includes 2 billion shares of common stock;
- Renaming existing Class D common stock to Class N common stock. All shareholders who held Class D shares now hold Class N shares; and
- Designating and classifying four new classes of common stock: Class S, Class D, Class Z, and Class I.
In keeping with recent industry trends to make alternative investments more available to individual investors, the company said its new share classes provide that broader access while maintaining the fund’s core-focused investment strategy, portfolio composition, and management team.
“These new shares will not be available through our ongoing public offering registered with the SEC, but we intend to continue to offer our other various share classes of common stock through the continuous public offerings,” said Swaringen.
The purpose of creating multiple share classes is to offer investors different ways to pay for the costs of investing, such as sales commissions and ongoing servicing fees. The fee structures of the new share classes, and therefore their net performance, will differ.
Particulars of Each Share Class
The differences between the classes center on the respective sales commission/upfront fee and stockholder servicing fee/ongoing annual fee. These classes are typically designed to suit different investor types and the compensation models of their financial advisers.
- Class S (service):Features the highest combination of upfront and ongoing fees. The investor pays a higher initial commission, and the fund’s NAV is continuously reduced by a relatively high servicing fee.
- Class D (discount/distribution):Balances the cost with a moderate upfront commission and a lower ongoing servicing fee.
- Class Z (zero-upfront):Appeals to investors who want to avoid an initial commission. They pay the lower ongoing servicing fee (0.30%) instead.
- Class I (institutional/investment):Offers the lowest cost structure with no upfront commission and no ongoing servicing fee. This class is typically used for institutional investors, large retirement plans, or accounts advised through a fee-based (instead of commission-based) relationship.
- Class N (no servicing fee):Carries a small upfront commission but no ongoing servicing fee. This makes it potentially attractive for long-term holders who prefer to pay the compensation cost at the time of purchase.
Swaringen concluded: “As a leader and innovator in the rapidly evolving market for alternative investments available for private investors, these filings will allow us to meet the needs of the sophisticated investor clients of today’s leading wealth management firms.”
In addition, the company amended and restated its share repurchase plan to incorporate the new share classes and remove the “per stockholder allocation” repurchase mechanism.
Previously, AltsWire reported that the REIT acquired the Glendale Distribution Center, a Class A industrial warehouse facility in Glendale, Ariz., over the summer. It was purchased for approximately $140 million.
JLL Income Property Trust is an institutionally managed, daily NAV REIT that owns and manages a diversified portfolio of high quality, income-producing residential, industrial, grocery-anchored retail, healthcare, office and debt investments throughout the nation.
Click here to visit the AltsWire directory page.
