424B3 1 septembersupplement2013.htm 424B3 September Supplement 2013


JONES LANG LASALLE INCOME PROPERTY TRUST, INC.
SUPPLEMENT NO. 12 DATED OCTOBER 1, 2013
TO THE PROSPECTUS DATED MARCH 28, 2013

This supplement No. 12 is part of the prospectus of Jones Lang LaSalle Income Property Trust, Inc. and should be read in conjunction with the prospectus. Terms used in this supplement No. 12 and not otherwise defined herein have the same meanings as set forth in our prospectus and any supplements thereto. The purpose of this supplement is to disclose:
•the components of NAV as of September 30, 2013;
•the status of our offering;
•the status of our share repurchase plan;
•the recent share pricing information;
•an update our suitability standards for Ohio investors; and
•an update our suitability standards for Tennessee investors.
Components of NAV
The following table provides a breakdown of the major components of our share price per share as of September 30, 2013:
 
 
September 30, 2013
Component of NAV
Class A Shares
 
Class M Shares
 
Class E Shares
Real estate investments(1)
$
21.86

 
$
21.88

 
$
21.92

Debt
(11.96
)
 
(11.97
)
 
(11.99
)
Other assets and liabilities, net
0.26

 
0.26

 
0.25

Estimated enterprise value premium
None Assumed

 
None Assumed

 
None Assumed

NAV per share
$
10.16

 
$
10.17

 
$
10.18

 
(1)
The value of our real estate investments was less than the historical cost by approximately 12.1% as of September 30, 2013.
The following are key assumptions (shown on a weighted-average basis) that are used in the discounted cash flow models to estimate the value of our real estate investments as of September 30, 2013:
 
 
Office
 
Retail
 
Industrial
 
Apartment
 
Total
Company
Exit capitalization rate
7.23
%
 
7.44
%
 
7.25
%
 
6.96
%
 
7.20
%
Discount rate/internal rate of return (IRR)
8.45

 
7.92

 
8.49

 
8.24

 
8.31

Annual market rent growth rate
3.30

 
3.12

 
2.89

 
2.84

 
3.13

Holding period (years)
10.00

 
10.00

 
10.00

 
10.00

 
10.00

While we believe our assumptions are reasonable, a change in these assumptions would impact the calculation of the value of our real estate investments. For example, assuming all other factors remain unchanged, an increase in the weighted-average discount rate/internal rate of return (IRR) used as of September 30, 2013 of 0.25% would yield a decrease in our total real estate investment value of 1.62% and our NAV per share class would have been $9.81, $9.82, and $9.83 for Class A, Class M and Class E, respectively.
Status of the Offering
We commenced our initial public offering of up to $3,000,000,000 in shares of common stock on October 1, 2012, of which $2,700,000,000 in shares can be issued pursuant to our primary offering and $300,000,000 in shares can be issued pursuant to our distribution reinvestment plan.
As of October 1, 2013, we have received aggregate gross proceeds of approximately $139,057,000 including $118,615,000 from the sale of 11,564,068 Class A shares and $20,442,000 from the sale of 2,004,426 Class M shares pursuant to our primary offering. As of October 1, 2013, there were $2,560,943,000 in shares of our common stock in our primary offering available for sale. As of October 1, 2013, we have received approximately $1,211,000 pursuant to our dividend




reinvestment plan, including $985,000 from the sale of 97,142 Class A shares and $226,000 from the sale of 22,172 Class M shares. As of October 1, 2013, there were $298,789,000 in shares of our common stock available for sale pursuant to our dividend reinvestment plan.
We are structured as an externally managed non-listed, daily valuation perpetual-life REIT. This means that, subject to regulatory approval of our filing for additional offerings, we will sell shares of our common stock on a continuous basis and for an indefinite period of time. We will endeavor to take all reasonable actions to avoid interruptions in the continuous offering of our shares of common stock. There can be no assurance, however, that we will not need to suspend our continuous offering. The offering must be registered in every state in which we offer or sell shares. Generally, such registrations are for a period of one year. Thus, we may have to stop selling shares in any state in which our registration is not renewed or otherwise extended annually. We reserve the right to terminate this offering at any time and to extend our offering term to the extent permissible under applicable law.
Share Repurchase Plan Status
During the quarter ended September 30, 2013, we redeemed 438 class M shares, that were acquired through the dividend reinvestment plan, for a total of approximately $4,000 pursuant to our share repurchase plan. Class A and M shares are not eligible for repurchase for the first year after purchase except upon death or disability of the stockholder and Class E shares are not eligible for repurchase. Shares issued pursuant to our distribution reinvestment plan are not subject to the one-year holding period. None of the Class A or M shares outstanding on September 30, 2013 had been held for more than one year. Eligible share repurchases during the period from October 1, 2013 through December 31, 2013 are limited to approximately $20,315,000 which is the lesser of (1) 5% of the NAV of all classes of shares as of the last business day of the previous calendar quarter, or $20,315,000, and (2) 25% of the gross offering proceeds received by us from the commencement of this offering through the last business day of the prior calendar quarter, or $34,796,000.
Recent Share Pricing Information
Below is the daily NAV per share, as determined in accordance with our valuation guidelines, for each business day from September 1 to September 30, 2013, for each of our classes of common stock:
 
Date
 
NAV per Share
Class A
 
Class M
 
Class E
September 3, 2013
 
$10.19
 
$10.21
 
$10.23
September 4, 2013
 
$10.19
 
$10.21
 
$10.23
September 5, 2013
 
$10.19
 
$10.21
 
$10.24
September 6, 2013
 
$10.19
 
$10.21
 
$10.24
September 9, 2013
 
$10.19
 
$10.21
 
$10.24
September 10, 2013
 
$10.20
 
$10.21
 
$10.24
September 11, 2013
 
$10.20
 
$10.22
 
$10.24
September 12, 2013
 
$10.20
 
$10.22
 
$10.24
September 13, 2013
 
$10.21
 
$10.23
 
$10.26
September 16, 2013
 
$10.22
 
$10.23
 
$10.26
September 17, 2013
 
$10.22
 
$10.24
 
$10.26
September 18, 2013
 
$10.22
 
$10.24
 
$10.27
September 19, 2013
 
$10.22
 
$10.24
 
$10.27
September 20, 2013
 
$10.22
 
$10.24
 
$10.27
September 23, 2013
 
$10.24
 
$10.26
 
$10.29
September 24, 2013
 
$10.24
 
$10.26
 
$10.29
September 25, 2013
 
$10.25
 
$10.27
 
$10.30
September 26, 2013
 
$10.25
 
$10.27
 
$10.30
September 27, 2013
 
$10.25
 
$10.27
 
$10.30
September 30, 2013
 
$10.16
 
$10.17
 
$10.18
Purchases and repurchases of shares of our Class A and M common stock are made based on the appropriate day’s applicable per share NAV. On each business day, our NAV per share for each class is posted on our website, www.JLLIPT.com, and made available on our toll-free, automated telephone line, (855) 652-0277.
Our Class E shares are not being sold in connection with this offering.





Suitability Standards for Ohio Investors
 
In addition to the minimum income and net worth standards described on page (ii) of our prospectus and in lieu of the investment concentration standard that applies to all investors who do not reside in Ohio, which is also described on page (ii), investors residing in Ohio are subject to the following investment concentration standard:
 
Ohio investors: It shall be unsuitable for an Ohio investor’s aggregate investment in our shares, shares of our affiliates, and shares in other non-traded REITs to exceed ten percent (10%) of his or her liquid net worth.  “Liquid net worth” shall be defined as that portion of net worth (total assets exclusive of primary residence, home furnishings, and automobiles minus total liabilities) that is comprised of cash, cash equivalents, and readily marketable securities.

Suitability Standards for Tennessee Investors

Our prospectus is hereby supplemented to remove the suitability standards for Tennessee investors set forth on page (ii) of our prospectus in the paragraph captioned “Tennessee investors.” Investors residing in Tennessee remain subject to the general suitability standards set forth in our prospectus that are applicable to all investors regardless of their state of residence.