Stanger Reiterates Overweight Rating of JLL Income Property Trust

Robert A. Stanger & Co., Inc. has issued an updated research report on JLL Income Property Trust Inc., a daily net asset value, non-traded real estate investment trust with $6.6 billion in total asset value as of June 30, 2024. The report reiterates Stanger’s JLL REIT’s rating as overweight.

The REIT’s portfolio is concentrated in residential and industrial properties, balanced out by retail, healthcare and other property types, as well as credit investments.

“[JLL REIT] has one of the strongest risk-reward profiles of any of the NAV REITs we cover, with moderately conservative leverage, a shareholder-friendly performance fee structure, and NAV derivation policies that favor new investors,” stated David J. Inauen, head of research at Stanger.

“As we have said in the past, not all NAVs are created equal, and there are return-enhancing policies that [JLL REIT] employs. For example, [it] factors its debt obligations into NAV at historical cost – not fair market value – and its debt is cheap. That policy results in a bargain-priced NAV that effectively allows new investors to ‘borrow’ at below-market rates when they buy shares in [JLL REIT],” added Inauen.

The new research report comes following an increase in the REIT’s quarterly distribution in June 2024, the ninth such increase since JLL REIT’s inception in 2012.

“The distribution increase signals strength in earnings and following a 22% correction in NAV per share off its peak, the 5.4% tax-efficient annualized distribution rate is the highest since Class M-I shares were first issued to the public in 2014,” said Inauen.

Earlier this summer, Alts Wire reported that JLL REIT had fully subscribed its JLLX Diversified III, DST. The Delaware statutory trust consists of two healthcare-oriented properties – an outpatient medical property in Florham Park, N.J., which is leased to Summit Health Management, and a Class A industrial property located in Durham, N.C., leased to KBI Biopharma.

Robert A. Stanger & Co., Inc., founded in 1978, is an investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts, and real estate advisory and management companies in support of strategic planning and execution, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.

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