JLL Income Property Trust Maintains Overweight Rating from Stanger

Stanger has reaffirmed its overweight rating for JLL Income Property Trust, citing its strong risk-reward profile, conservative leverage, and favorable NAV policies.

August 02, 2024

In a recent report, Robert A. Stanger & Co., Inc. has reiterated its overweight rating for JLL Income Property Trust Inc., a non-traded REIT with a total asset value of $6.6 billion as of June 30, 2024. The REIT's diverse portfolio includes residential, industrial, retail, healthcare properties, and credit investments.

David J. Inauen, Stanger’s head of research, stated that 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” Inauen highlighted that JLL REIT's policy of factoring debt obligations into NAV at historical cost, rather than fair market value, results in a lower NAV, allowing new investors to benefit from below-market borrowing rates.

The report follows JLL REIT’s increase in its quarterly distribution in June 2024, marking the ninth increase since its inception in 2012. The REIT's current 5.4% tax-efficient annualized distribution rate is the highest since the issuance of Class M-I shares in 2014, following a 22% correction in NAV per share from its peak.

Earlier this summer, JLL REIT fully subscribed its JLLX Diversified III, DST, which includes two healthcare properties: an outpatient medical facility in Florham Park, N.J., leased to Summit Health Management, and a Class A industrial property in Durham, N.C., leased to KBI Biopharma.

Robert A. Stanger & Co., Inc., established in 1978, is an investment banking firm providing financial advisory, fairness opinions, and asset valuation services to partnerships, REITs, and real estate advisory firms, supporting strategic planning, capital formation, mergers, acquisitions, and more.