UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

☒

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2017March 31, 2022
OR
☐


TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                    to                     
Commission file number: 000-51948

jllipt-20220331_g1.jpg
Jones Lang LaSalle Income Property Trust, Inc.
(Exact name of registrant as specified in its charter)

Maryland20-1432284
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)
333 West Wacker Drive, Chicago IL, 60606
(Address of principal executive offices, including Zip Code)
(312) 897-4000
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    YES  ☒Yes  ☑    NO ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    YES  ☒Yes  ☑    NO  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.
See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☐Accelerated filer☐
Non-accelerated filer☒☑Smaller reporting company☐
Emerging growth company☒☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨☐ NO ☒☑
The number of shares of the registrant’s Common Stock, $.01 par value, outstanding on November 13, 2017May 16, 2022 were 69,692,530105,696,898 shares of Class A Common Stock, 37,914,66523,755,997 shares of Class M Common Stock, 11,173,3415,930,623 shares of Class A-I Common Stock, 7,358,28784,744,571 shares of Class M-I Common Stock and 7,531,7146,041,611 shares of Class D Common Stock.





Jones Lang LaSalle Income Property Trust, Inc.
INDEX


PAGE
NUMBER
PAGE
NUMBER
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
3
Consolidated Balance Sheets as of September 30, 2017March 31, 2022 (unaudited) and December 31, 20162021
3
Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and nine months ended September 30, 2017March 31, 2022 and 20162021 (unaudited)
4
Consolidated StatementStatements of Equity for the nine three months ended September 30, 2017March 31, 2022 and 2021 (unaudited)
5
Consolidated Statements of Cash Flows for the ninethree months ended September 30, 2017March 31, 2022 and 20162021 (unaudited)
6
Notes to Consolidated Financial Statements (unaudited)
7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
2324
Item 3. Quantitative and Qualitative Disclosures About Market Risk
45
Item 4. Controls and Procedures
45
Item 1. Legal Proceedings
46
Item 1A. Risk Factors
46
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
46
Item 3. Defaults Upon Senior Securities
47
Item 4. Mine Safety Disclosures
47
Item 5. Other Information
47
Item 6. Exhibits
4748
SIGNATURES
4849


2

Item 1. Financial Statements.
Jones Lang LaSalle Income Property Trust, Inc.
CONSOLIDATED BALANCE SHEETS
$ in thousands, except per share amounts
  September 30, 2017 December 31, 2016
  (Unaudited)  
ASSETS    
Investments in real estate:    
Land (including from VIEs of $36,851 and $25,441, respectively) $397,930
 $376,457
Buildings and equipment (including from VIEs of $199,675 and $153,445, respectively) 1,493,356
 1,367,860
Less accumulated depreciation (including from VIEs of $(22,541) and $(19,479), respectively) (114,469) (88,870)
Net property and equipment 1,776,817
 1,655,447
Investment in unconsolidated real estate affiliates 133,700
 139,098
Real estate fund investment 94,283
 89,151
Net investments in real estate 2,004,800
 1,883,696
Cash and cash equivalents (including from VIEs of $6,125 and $9,786, respectively) 42,250
 45,782
Restricted cash (including from VIEs of $513 and $796, respectively) 25,098
 1,967
Tenant accounts receivable, net (including from VIEs of $1,563 and $1,509, respectively) 4,628
 3,902
Deferred expenses, net (including from VIEs of $220 and $207, respectively) 9,049
 9,498
Acquired intangible assets, net (including from VIEs of $15,010 and $8,022, respectively) 106,522
 110,787
Deferred rent receivable, net (including from VIEs of $1,046 and $901, respectively) 16,497
 14,891
Prepaid expenses and other assets (including from VIEs of $279 and $250, respectively) 4,573
 4,110
TOTAL ASSETS $2,213,417
 $2,074,633
LIABILITIES AND EQUITY    
Mortgage notes and other debt payable, net (including from VIEs of $100,071 and $109,691, respectively) $889,597
 $695,613
Accounts payable and other accrued expenses (including from VIEs of $1,698 and $1,376, respectively) 13,165
 13,058
Accrued offering costs 78,970
 86,517
Distributions payable 14,218
 14,555
Accrued interest (including from VIEs of $357 and $400, respectively) 1,875
 1,979
Accrued real estate taxes (including from VIEs of $2,335 and $1,628, respectively) 11,073
 5,022
Advisor fees payable 1,585
 1,600
Acquired intangible liabilities, net (including from VIEs of $1,205 and $0, respectively) 20,483
 21,748
TOTAL LIABILITIES 1,030,966
 840,092
Commitments and contingencies —
 —
Equity:    
Class A common stock: $0.01 par value; 200,000,000 shares authorized; 69,448,287 and 69,837,581 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 694
 698
Class M common stock: $0.01 par value; 200,000,000 shares authorized; 37,588,719 and 36,522,305 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 376
 365
Class A-I common stock: $0.01 par value; 200,000,000 shares authorized; 11,105,281 and 12,812,637 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 111
 128
Class M-I common stock: $0.01 par value; 200,000,000 shares authorized; 7,383,732 and 7,591,239 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 74
 76
Class D common stock: $0.01 par value; 200,000,000 shares authorized; 7,531,714 and 7,963,493 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively 75
 80
Additional paid-in capital (net of offering costs of $132,017 and $126,995 as of September 30, 2017 and December 31, 2016, respectively) 1,520,881
 1,544,955
Accumulated other comprehensive loss —
 (1,875)
Distributions to stockholders (242,570) (199,317)
Accumulated deficit (105,039) (118,765)
Total Jones Lang LaSalle Income Property Trust, Inc. stockholders’ equity 1,174,602
 1,226,345
Noncontrolling interests 7,849
 8,196
Total equity 1,182,451
 1,234,541
TOTAL LIABILITIES AND EQUITY $2,213,417
 $2,074,633
 March 31, 2022December 31, 2021
ASSETS(Unaudited)
Investments in real estate:
Land (including from VIEs of $59,006 and $59,006, respectively)$609,217 $598,564 
Buildings and equipment (including from VIEs of $206,360 and $206,016, respectively)3,150,267 3,010,359 
Less accumulated depreciation (including from VIEs of $(28,193) and $(26,955), respectively)(277,859)(259,362)
Net property and equipment3,481,625 3,349,561 
Investment in unconsolidated real estate affiliates217,070 217,044 
Real estate fund investments376,813 352,905 
Investments in real estate and other assets held for sale— 39,326 
Net investments in real estate4,075,508 3,958,836 
Investment in marketable securities40,599 43,206 
Cash and cash equivalents (including from VIEs of $6,678 and $6,740, respectively)124,415 70,273 
Restricted cash (including from VIEs of $484 and $859, respectively)61,161 51,203 
Tenant accounts receivable, net (including from VIEs of $2,808 and $1,850, respectively)8,817 9,066 
Deferred expenses, net (including from VIEs of $536 and $533, respectively)15,001 14,511 
Acquired intangible assets, net (including from VIEs of $11,254 and $12,500, respectively)204,677 216,227 
Deferred rent receivable, net (including from VIEs of $1,103 and $1,135, respectively)27,289 25,634 
Prepaid expenses and other assets (including from VIEs of $325 and $284, respectively)18,760 13,290 
TOTAL ASSETS$4,576,227 $4,402,246 
LIABILITIES AND EQUITY
Mortgage notes and other debt payable, net (including from VIEs of $146,985 and $147,076, respectively)$1,816,956 $1,817,664 
Liabilities held for sale— 271 
Accounts payable and other liabilities (including from VIEs of $2,375 and $2,477, respectively)70,578 70,551 
Financing obligation458,207 448,319 
Accrued offering costs154,773 137,776 
Accrued interest (including from VIEs of $389 and $368, respectively)3,340 3,321 
Accrued real estate taxes (including from VIEs of $612 and $679, respectively)11,385 9,497 
Advisor fees payable11,877 39,709 
Acquired intangible liabilities, net (including from VIEs of $510 and $541, respectively)29,855 31,022 
TOTAL LIABILITIES2,556,971 2,558,130 
Commitments and contingencies— — 
Redeemable noncontrolling interests6,970 — 
Equity:
Class A common stock: $0.01 par value; 200,000,000 shares authorized; 104,576,961 and 100,038,362 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively1,046 1,000 
Class M common stock: $0.01 par value; 200,000,000 shares authorized; 37,681,185 and 36,458,191 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively377 365 
Class A-I common stock: $0.01 par value; 200,000,000 shares authorized; 9,335,732 and 9,356,309 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively93 94 
Class M-I common stock: $0.01 par value; 200,000,000 shares authorized; 61,681,208 and 52,676,693 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively617 527 
Class D common stock: $0.01 par value; 200,000,000 shares authorized; 6,041,611 and 7,513,281 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively60 75 
Additional paid-in capital (net of offering costs of $286,136 and $264,066 as of March 31, 2022 and December 31, 2021, respectively)2,448,952 2,284,839 
Distributions to stockholders(601,310)(573,963)
Retained earnings69,285 34,398 
Total Jones Lang LaSalle Income Property Trust, Inc. stockholders’ equity1,919,120 1,747,335 
Noncontrolling interests93,166 96,781 
Total equity2,012,286 1,844,116 
TOTAL LIABILITIES AND EQUITY$4,576,227 $4,402,246 
The abbreviation “VIEs” above means consolidated Variable Interest Entities.
See notes to consolidated financial statements.

3

Jones Lang LaSalle Income Property Trust, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
$ in thousands, except share and per share amounts
(Unaudited)
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Revenues:
Rental revenue$74,955 $50,731 
Other revenue2,216 1,850 
Total revenues77,171 52,581 
Operating expenses:
Real estate taxes11,311 8,086 
Property operating expenses14,001 9,911 
Property general and administrative697 660 
Advisor fees17,858 6,325 
Company level expenses1,074 1,193 
Depreciation and amortization32,974 19,945 
Total operating expenses77,915 46,120 
Other income (expenses):
Interest expense(17,852)(9,262)
Income (loss) from unconsolidated real estate affiliates and fund investments29,025 (339)
Investment income on marketable securities304 — 
Net realized gain upon sale of marketable securities79 — 
Net unrealized change in fair value of investment in marketable securities(2,984)— 
Gain on disposition of property and extinguishment of debt, net31,492 33,422 
Total other income and (expenses)40,064 23,821 
Net income39,320 30,282 
Less: Net income attributable to the noncontrolling interests(1,385)(177)
Net income attributable to Jones Lang LaSalle Income Property Trust, Inc.$37,935 $30,105 
Net income attributable to Jones Lang LaSalle Income Property Trust, Inc. per share-basic and diluted:
Class A0.18 0.17 
Class M0.18 0.17 
Class A-I0.18 0.17 
Class M-I0.18 0.17 
Class D0.18 0.17 
Weighted average common stock outstanding-basic and diluted212,104,884 174,765,072 
 Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Revenues:       
Minimum rents$34,372
 $27,514
 $98,181
 $75,852
Tenant recoveries and other rental income7,921
 6,677
 24,235
 18,618
Total revenues42,293
 34,191
 122,416
 94,470
Operating expenses:       
Real estate taxes6,181
 4,727
 18,363
 12,522
Property operating7,659
 6,381
 21,083
 17,217
Provision for doubtful accounts26
 57
 75
 191
Property general and administrative274
 208
 830
 814
Advisor fees4,842
 4,030
 14,383
 10,487
Company level expenses491
 454
 1,730
 1,657
Acquisition expenses—
 1,759
 —
 2,846
Provision for impairment of real estate—
 6,355
 —
 6,355
Depreciation and amortization16,589
 12,072
 44,704
 31,052
Total operating expenses36,062
 36,043
 101,168
 83,141
Operating income (loss)6,231
 (1,852) 21,248
 11,329
Other income and (expenses):       
Interest expense(7,730) (5,874) (21,375) (18,529)
Income from unconsolidated real estate affiliates and fund investments6,236
 4,686
 8,144
 5,583
Other income500
 —
 500
 —
Gain on disposition of properties and extinguishment of debt, net5,501
 1,664
 5,501
 1,704
Total other income and (expenses)4,507
 476
 (7,230) (11,242)
Net income (loss)10,738
 (1,376) 14,018
 87
Less: Net income attributable to the noncontrolling interests(68) (396) (292) (544)
Net income (loss) attributable to Jones Lang LaSalle Income Property Trust, Inc.$10,670
 $(1,772) $13,726
 $(457)
Net income (loss) attributable to Jones Lang LaSalle Income Property Trust, Inc. per share-basic and diluted$0.08
 $(0.02) $0.10
 $—
Weighted average common stock outstanding-basic and diluted133,554,999
 113,935,929
 134,894,754
 99,933,097
Other comprehensive gain (loss):       
Foreign currency translation adjustment(8) (26) (20) 458
Reclassification for amounts recognized in net income1,895
 —
 1,895
 —
Total other comprehensive gain (loss)1,887
 (26) 1,875
 458
Net comprehensive income (loss)$12,557
 $(1,798) $15,601
 $1


See notes to consolidated financial statements.

4

Jones Lang LaSalle Income Property Trust, Inc.
CONSOLIDATED STATEMENTSTATEMENTS OF EQUITY
$ in thousands, except share and per share amounts
(Unaudited)
 Common StockAdditional Paid
In Capital		Distributions to 
Stockholders		Retained Earnings / (Accumulated Deficit)Noncontrolling
Interests		Total
Equity
SharesAmount
Balance, January 1, 2021173,104,467 $1,731 $1,922,136 $(481,760)$(14,723)$20,039 $1,447,423 
Issuance of common stock8,758,984 87 102,928 — — — 103,015 
Repurchase of shares(3,830,592)(38)(44,756)— — — (44,794)
Conversion of shares(342)— — — — — — 
Offering costs— — (6,246)— — — (6,246)
Stock based compensation16,000 — 189 — — — 189 
Net income— — — — 30,105 177 30,282 
Cash distributed to noncontrolling interests— — — — — (194)(194)
Distributions declared per share ($0.135)— — — (21,621)— — (21,621)
Balance, March 31, 2021178,048,517 $1,780 $1,974,251 $(503,381)$15,382 $20,022 $1,508,054 
Balance, January 1, 2022206,042,836 $2,061 $2,284,839 $(573,963)$34,398 $96,781 $1,844,116 
Issuance of common stock16,263,717 162 227,089 — — — 227,251 
Repurchase of shares(3,012,118)(30)(41,236)— — — (41,266)
Conversion of shares(96)— — — — — — 
Offering costs— — (22,070)— — — (22,070)
Stock based compensation22,358 — 330 — — — 330 
Net income— — — — 37,935 1,385 39,320 
Cash distributed to noncontrolling interests— — — — — (1,078)(1,078)
Allocation to redeemable noncontrolling interests— — — — (3,048)(3,922)(6,970)
Distributions declared per share ($0.140)— — — (27,347)— — (27,347)
Balance, March 31, 2022219,316,697 $2,193 $2,448,952 $(601,310)$69,285 $93,166 $2,012,286 
 Common Stock 
Additional
Paid In
Capital
 
Accumulated
Other
Comprehensive
Loss
 
Distributions
to 
Stockholders
 
Accumulated
Deficit
 
Noncontrolling
Interests
 
Total
Equity
Shares Amount
Balance, January 1, 2017134,727,255
 $1,347
 $1,544,955
 $(1,875) $(199,317) $(118,765) $8,196
 $1,234,541
Issuance of common stock6,097,302
 61
 69,627
 —
 —
 —
 —
 69,688
Repurchase of shares(7,766,824) (78) (88,770) —
 —
 —
 —
 (88,848)
Offering costs—
 —
 (5,022) —
 —
 —
 —
 (5,022)
Stock based compensation—
 —
 91
 —
 —
 —
 —
 91
Net income—
 —
 —
 —
 —
 13,726
 292
 14,018
Other comprehensive gain and reclassification of accumulated other comprehensive loss into earnings—
 —
 —
 1,875
 —
 —
 —
 1,875
Cash contributions from noncontrolling interests—
 —
 —
 —
 —
 —
 1,168
 1,168
Cash distributed to noncontrolling interests—
 —
 —
 —
 —
 —
 (1,807) (1,807)
Distributions declared per share ($0.375)—
 —
 —
 —
 (43,253) —
 —
 (43,253)
Balance, September 30, 2017133,057,733
 $1,330
 $1,520,881
 $—
 $(242,570) $(105,039) $7,849
 $1,182,451

See notes to consolidated financial statements.

5

Jones Lang LaSalle Income Property Trust, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
$ in thousands (Unaudited)

  Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $14,018
 $87
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 43,904
 29,649
Gain on disposition of property and extinguishment of debt (5,501) (1,704)
Provision for doubtful accounts 75
 191
Straight line rent (2,275) (4,072)
Provision for impairment of real estate —
 6,355
Income from unconsolidated real estate affiliates and fund investments
 (8,144) (5,583)
Distributions from unconsolidated real estate affiliates and fund investments 8,414
 1,125
Net changes in assets, liabilities and other 5,493
 7,203
Net cash provided by operating activities 55,984
 33,251
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchase of real estate investments (119,317) (573,774)
Proceeds from sale of real estate investments and fixed assets —
 45,462
Capital improvements and lease commissions (9,244) (9,879)
Transfer of cash in extinguishment of debt settlement (283) —
Investment in unconsolidated real estate affiliates (4) (120,510)
Deposits for investments under contract —
 (1,850)
Deposits refunded for investments under contract 50
 600
Distributions from unconsolidated real estate affiliates —
 4,495
Loan escrows (632) (1,849)
Net cash used in investing activities (129,430) (657,305)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Issuance of common stock 40,392
 455,651
Repurchase of shares (88,563) (43,862)
Offering costs (12,570) (12,303)
Distributions to stockholders (14,131) (8,997)
Distributions paid to noncontrolling interests (1,807) (2,531)
Contributions received from noncontrolling interests 1,168
 169
Draws on credit facility 255,000
 160,000
Payment on credit facility (35,000) (90,000)
Proceeds from mortgage notes and other debt payable —
 218,089
Debt issuance costs (2,688) (3,271)
Principal payments on mortgage notes and other debt payable (71,879) (32,886)
Net cash provided by financing activities 69,922
 640,059
Net (decrease) increase in cash and cash equivalents (3,524) 16,005
Effect of exchange rates (8) 135
Cash and cash equivalents at the beginning of the period 45,782
 34,739
Cash and cash equivalents at the end of the period $42,250
 $50,879
Supplemental disclosure of cash flow information:    
Interest paid $20,553
 $18,444
Non-cash activities:    
Write-offs of receivables $80
 $37
Write-offs of retired assets and liabilities 9,475
 2
Change in liability for capital expenditures 401
 (3,630)
Deposit of proceeds from sale of real estate investments 21,202
 —
Net liabilities transferred at sale of real estate investment 729
 902
Net liabilities assumed at acquisition (548) 987
Change in issuance of common stock receivable and redemption of common stock payable 219
 915
Change in accrued offering costs (7,548) 31,710
Assumption of mortgage notes payable (67,870) (61,939)
Transfers of property in extinguishment of debt settlement

 20,689
 —
Three Months Ended March 31, 2022Three Months Ended March 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$39,320 $30,282 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization32,719 19,630 
Gain on disposition of property and extinguishment of debt(31,492)(33,422)
Net realized gain upon sale of marketable securities(79)— 
Net unrealized loss in fair value of marketable securities2,984 — 
Straight line rent(1,646)(129)
(Income) loss from unconsolidated real estate affiliates and fund investments(29,025)339 
Distributions from unconsolidated real estate affiliates and fund investments5,097 1,850 
Net changes in assets, liabilities and other(31,609)(1,378)
Net cash (used in) provided by operating activities(13,731)17,172 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of real estate investments(153,896)(226,925)
Proceeds from sale of real estate investments and fixed assets74,602 66,992 
Capital improvements and lease commissions(3,740)(3,758)
Investment in unconsolidated real estate affiliates(7)(677)
Deposits for investments under contract(1,350)(2,500)
Investment in marketable securities(4,646)— 
Proceeds from sale of marketable securities4,348 — 
Net cash used in investing activities(84,689)(166,868)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock217,977 152,181 
Repurchase of shares(41,266)(44,794)
Offering costs(2,273)(3,840)
Distributions to stockholders(9,681)(7,887)
Distributions paid to noncontrolling interests(1,078)(194)
Deposits for loan commitments— (2,093)
Draws on credit facility110,000 140,000 
Payment on credit facility(205,000)(100,000)
Proceeds from mortgage notes and other debt payable95,800 70,030 
Debt issuance costs(18)(436)
Payment on early extinguishment of debt— — 
Principal payments on mortgage notes and other debt payable(1,947)(81,925)
Net cash provided by financing activities162,514 121,042 
Net increase in cash, cash equivalents and restricted cash64,094 (28,654)
Cash, cash equivalents and restricted cash at the beginning of the period121,482 101,434 
Cash, cash equivalents and restricted cash at the end of the period$185,576 $72,780 
Reconciliation of cash, cash equivalents and restricted cash shown per Consolidated Balance Sheets to cash, cash equivalents and restricted cash per Consolidated Statements of Cash Flows
Cash and cash equivalents$124,415 $41,345 
Restricted cash61,161 31,435 
Cash, cash equivalents and restricted cash at the end of the period$185,576 $72,780 
Supplemental disclosure of cash flow information:
Interest paid$12,877 $8,696 
Non-cash activities:
Write-offs of receivables$(75)$(4)
Write-offs of retired assets and liabilities2,539 1,382 
Change in liability for capital expenditures(344)(888)
Net liabilities transferred at disposition of real estate investment396 230 
Net liabilities assumed at acquisition426 320 
Change in issuance of common stock receivable and redemption of common stock payable(4,819)(355)
Change in accrued offering costs19,797 2,406 
See notes to consolidated financial statements.

6

Jones Lang LaSalle Income Property Trust, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
$ in thousands, except per share amounts
NOTE 1—ORGANIZATION
General
Except where the context suggests otherwise, the terms “we,” “us,” “our” and the “Company” refer to Jones Lang LaSalle Income Property Trust, Inc. The terms “Advisor” and “LaSalle” refer to LaSalle Investment Management, Inc.
Jones Lang LaSalle Income Property Trust, Inc. is an externally advised, daily valued perpetual-life real estate investment trust ("REIT") that owns and manages a diversified portfolio of apartment,residential, industrial, office, retail and other properties located in the United States. Over time, our real estate portfolio may be further diversified on a global basis through the acquisition of additional properties outside of the United States and may be complemented by investments in real estate-related debt and equity securities. We were incorporated on May 28, 2004 under the laws of the State of Maryland. We believe that we have operated in such a manner to qualify to be taxed as a REIT for federal income tax purposes commencing with the taxable year ended December 31, 2004, when we first elected REIT status. As of September 30, 2017,March 31, 2022, we owned interests in a total of 69119 properties and over 4,000 single-family rental houses located in 1926 states.
We own all or substantially all of our assets through JLLIPT Holdings, LP, a Delaware limited partnership (our “operating partnership”), of which we are a limited partner and JLLIPT Holdings GP, LLC, our wholly owned subsidiary, is the sole general partner. The use of our operating partnership to hold all or substantially all of our assets is referred to as an Umbrella Partnership Real Estate Investment Trust ("UPREIT"). By using an UPREIT structure, a property owner who desires to defer taxable gain on the disposition of his property may transfer the property to our operating partnership in exchange for limited partnership interests in the operating partnership ("OP Units") and defer taxation of gain until the limited partnership interests are disposed of in a taxable transaction. As of March 31, 2022, we raised aggregate proceeds from the issuance of OP Units in our operating partnership of $88,925, and owned directly or indirectly 96.8% of the OP Units of our operating partnership. The remaining 3.2% of the OP Units are held by third parties.
From our inception to October 1, 2012,March 31, 2022, we raised equityhave received approximately $4,210,010 in gross offering proceeds throughfrom various public and private offerings of shares of our common stock. On October 1, 2012, we commenced our initial public offering of common stock and since that time we have offered shares of our common stock in various public offerings registered with the Securities and Exchange Commission (the "SEC") declared effective.
On December 21, 2021, our Registration Statement on Form S-11 with respect to our continuousmost recent public offering (the "Current Public Offering") of up to $3,000,000 in any combination of Class A and Class M shares of common stock (the "Initial Public Offering"). As of January 15, 2015, the date our Initial Public Offering terminated, we had raised aggregate gross proceeds from the sale of shares of our Class A and Class M common stock in our Initial Public Offering of $268,981.
On January 16, 2015, our follow-on Registration Statement on Form S-11 was declared effective by the SEC (Commission File No. 333-196886) with respect to our continuous public offering of up to $2,700,000 in any combination of shares of our Class A, Class M, Class A-I and Class M-I common stock consisting of up to $2,400,000 of shares offered in our primary offering and up to $300,000 in shares offered pursuant to our distribution reinvestment plan (the “First Extended Public Offering”). We reservewas declared effective by the right to terminate the First Extended Public Offering at any time and to extend the First Extended Public Offering term to the extent permissible under applicable law.SEC. As of September 30, 2017,March 31, 2022, we have raised aggregate gross proceeds from the sale of shares of our Class A, Class M, Class A-I and Class M-I shares in our First Extended Public Offering of $1,057,905.
On June 19, 2014, we began a private offering of up to $400,000 in any combination of our Class A-I, Class M-I and Class D shares of common stock (the "Initial Private Offering"). Upon the SEC declaring the registration statement for our First Extended Public Offering effective, we terminated the Initial Private Offering. As of January 15, 2015, we had raised aggregate gross proceeds from the sale of shares of our Class A-I, Class M-I and Class D common stock in our Initial PrivateCurrent Public Offering of approximately $43,510. On$249,802. We intend to continue to offer shares of our common stock on a continuous basis for an indefinite period of time by filing a new registration statement before the end of each offering.
In addition to our public offerings, on March 3, 2015, we commenced a new private offering (the "Follow-on Private"Private Offering") of up to $350,000 in shares of our Class D common stock with an indefinite duration. As of September 30, 2017,March 31, 2022, we have raised aggregate gross proceeds of $98,188. In addition, on October 16, 2019, we, through our operating partnership, initiated a program (the “DST Program”) to raise up to $500,000, which our board of directors increased to $1,000,000 on August 10, 2021, in private placements exempt from registration under the Securities Act of 1933, as amended, through the sale of beneficial interests to accredited investors in specific Delaware statutory trusts holding real properties ("DST Properties"), which may be sourced from our Class D shares inreal properties or from third parties. As of March 31, 2022, we have raised $465,408 from our Follow-on Private Offering of $68,591.DST Program.
As of September 30, 2017, 69,448,287March 31, 2022, 104,576,961 shares of Class A common stock, 37,588,71937,681,185 shares of Class M common stock, 11,105,2819,335,732 shares of Class A-I common stock, 7,383,73261,681,208 shares of Class M-I common stock, and 7,531,7146,041,611 shares of Class D common stock were outstanding and held by a total of 12,56521,336 stockholders.
LaSalle acts as our advisor pursuant to the second amended and restated advisory agreement between the Companyamong us, our operating partnership and LaSalle (the “Advisory Agreement”"Advisory Agreement"). On May 9, 2017, we renewedThe term of our Advisory Agreement with our Advisor for a one-year term expiring onexpires June 5, 2018.2022, subject to an unlimited number of successive one-year renewals. Our Advisor, a registered investment advisor with the SEC, has broad discretion with respect to our investment decisions and is responsible for selecting our investments and for managing our investment portfolio pursuant to the terms of the Advisory Agreement. Our executive officers are employees of and compensated by our Advisor. We have no employees, as all operations are managed by our Advisor.
7

LaSalle is a wholly-owned,wholly owned, but operationally independent subsidiary of our sponsor, Jones Lang LaSalle Incorporated ("JLL" or our "Sponsor"), a New York Stock Exchange-listed leading professional services firm that specializes in real estate and investment management. AffiliatesAs of our sponsor investedMarch 31, 2022, JLL and its affiliates owned an aggregate of $50,200 (with2,521,801 Class M shares, which were issued for cash at a price equal to the most recently reported net asset value ("NAV") per share as of the purchase date and have a current value of $59,345) through purchases of shares of our common stock.$37,524.

NOTE 2—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and include the accounts of our wholly-ownedwholly owned subsidiaries, consolidated variable interest entities ("VIE") and the unconsolidated investment in real estate affiliateaffiliates accounted for under the equity method of accounting. We consider the authoritative guidance of accounting for investments in common stock, investments in real estate ventures, investors accounting for an investee when the investor has the majority of the voting interest but the minority partners have certain approval or veto rights, determining whether a general partner or general partners as a group controls a limited partnership or similar entity when the limited partners have certain rights and the consolidation of VIEs in which we own less than a 100% interest. All significant intercompany balances and transactions have been eliminated in consolidation.

On August 8, 2017, we entered into a purchase agreement structured as a reverse 1031 exchange in order to acquire Montecito Marketplace located in Las Vegas, Neveda. We loaned the qualified intermediary $21,202 to acquire the property as replacement property pursuant to the applicable Internal Revenue Service guidance. The intermediary acquiring Montecito Marketplace was deemed to be a variable interest entity for which we are deemed to be the primary beneficiary as we have the ability to direct the activities of the entity that most significantly impact its economic performance and we have all of the risks and rewards of ownership. Accordingly, we have consolidated Montecito Marketplace. Parenthetical disclosures are shown on our Consolidated Balance Sheets regarding the amounts of VIE assets and liabilities that are consolidated. In addition to Montecito Marketplace, asAs of September 30, 2017,March 31, 2022, our VIEs includeincluded The District at Howell Mill, The Edge at Lafayette, Grand Lakes Marketplace, Presley Uptown, 237 Via Vera Cruz, 4211 Starboard Drive, 13500 Danielson Drive, 2840 Loker Ave, and Townlake of Coppell15890 Bernardo Center Drive due to the limited partnershipjoint venture structures and our partners having limited participation rights and no kick-out rights. The creditors of our VIEs do not have general recourse to us.
Noncontrolling interests represent the minority members’ proportionate share of the equity in our VIEs.equity. At acquisition, the assets, liabilities and noncontrolling interests were measured and recorded at the estimated fair value. Noncontrolling interests will increase for the minority members’ share of net income of these entities and contributions and decrease for the minority members’ share of net loss and distributions. As of September 30, 2017,March 31, 2022, noncontrolling interests represented the minority members’ proportionate share of the equity of The District at Howell Mill and the entities listed aboveoperating partnership.
Redeemable noncontrolling interests represent noncontrolling interests which are redeemable at the option of the holder or in circumstances out of our control and therefore are accounted for as VIEs.temporary equity. The carrying amount of the redeemable noncontrolling interests is adjusted over time on an accretive basis to reflect the fair value at the time the noncontrolling interest become redeemable by the holder. Changes in the redemption value of redeemable noncontrolling interest are recorded as an allocation of retained earnings on our Consolidated Statements of Equity. During the three months ended March 31, 2022, we recorded an allocation from noncontrolling interests to redeemable noncontrolling interests in the amount of $3,922. We have redeemable noncontrolling interest related to Grand Lakes Marketplace, Presley Uptown, 237 Via Vera Cruz, 4211 Starboard Drive, 13500 Danielson Drive, 2840 Loker Ave, and 15890 Bernardo Center Drive as of March 31, 2022. As of March 31, 2022, $6,970 related to these third party joint ventures was included in Redeemable noncontrolling interests on our Consolidated Balance Sheet of which $2,870 is immediately puttable by the holder of the noncontrolling interest.
The accompanying unaudited interim consolidated financial statements have been prepared in accordance with the accounting policies described in the consolidated financial statements and related notes included in our Annual Report on Form 10-K filed with the SEC on March 9, 201711, 2022 (our “2016“2021 Form 10-K”) and should be read in conjunction with such consolidated financial statements and related notes. The following notes to these interim consolidated financial statements highlight changes to the notes included in the December 31, 20162021 audited consolidated financial statements included in our 20162021 Form 10-K and present interim disclosures as required by the SEC.
The interim financial data as of September 30, 2017March 31, 2022 and for the three and nine months ended September 30, 2017March 31, 2022 and 20162021 is unaudited. In our opinion, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods.
Allowance
8

Restricted Cash
Restricted cash includes amounts established pursuant to various agreements for Doubtful Accounts
An allowance for doubtfulloan escrow accounts, is provided againstloan commitments and property sale proceeds. When we sell a property, we can elect to enter into a like-kind exchange pursuant to the portionapplicable Internal Revenue Service guidance whereby the proceeds from the sale are placed in escrow with a qualified intermediary until a replacement property can be purchased. At March 31, 2022, our restricted cash balance on our Consolidated Balance Sheets was primarily related to common stock subscriptions received in advance of accounts receivablethe issuance of the common stock and deferred rent receivable that is estimated to be uncollectible. Such allowance is reviewed periodically based upon our recovery experience. At September 30, 2017 and December 31, 2016, our allowance for doubtful accounts was $164 and $170, respectively.loan escrow amounts.
Deferred Expenses
Deferred expenses consist of lease commissions. Lease commissions are capitalized and amortized over the term of the related lease as a component of depreciation and amortization expense. Accumulated amortization of deferred expenses at September 30, 2017March 31, 2022 and December 31, 20162021 was $3,462$8,528 and $2,180,$8,436, respectively.

Rental Revenue Recognition
We recognize rental revenue from tenants under operating leases on a straight-line basis over the non-cancelable term of the lease when collectibility of substantially all rents is reasonably assured. Recognition of rental revenue on a straight-line basis includes the effects of rental abatements, lease incentives and fixed and determinable increases in lease payments over the lease term. For leases where collection of substantially all rents is not deemed to be probable, revenue is recorded equal to cash that has been received from the tenant.  We evaluate the collectibility of rents and other receivables at each reporting period based on factors including, among others, tenant's payment history, the financial condition of the tenant, business conditions and trends in the industry in which the tenant operates and economic conditions in the geographic area where the property is located. If evaluation of these factors or others indicates it is not probable we will collect substantially all rent we recognize an adjustment to rental revenue. If our judgment or estimation regarding probability of collection changes we may adjust or record additional rental revenue in the period such conclusion is reached.
Acquisitions
We have allocated a portion of the purchase price of our acquisitions to acquired intangible assets, which include acquired in-place lease intangibles, acquired above-market in-place lease intangibles and acquired ground lease intangibles, which are reported net of accumulated amortization of $45,438$102,523 and $36,345$102,842 at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively, on the accompanying Consolidated Balance Sheets. The acquired intangible liabilities represent acquired below-market in-place leases, which are reported net of accumulated amortization of $7,613$15,445 and $5,142$15,481 at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively, on the accompanying Consolidated Balance Sheets.
Assets and Liabilities Measured at Fair Value
The Financial Accounting Standards Board’s (“FASB”) guidance for fair value measurement and disclosure states that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering assumptions, authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
•Level 1—Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that we have access to at the measurement date.
•Level 2—Observable inputs, other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
•Level 3—Unobservable inputs for the asset or liability. Unobservable inputs are those inputs that reflect our own assumptions that market participants would use to price the asset or liability based on the best available information.
The authoritative guidance requires the disclosure of the fair value of our financial instruments for which it is practicable to estimate that value. The guidance does not apply to all balance sheet items. Market information as available or present value techniques have been utilized to estimate the amounts required to be disclosed. Since such amounts are estimates, there can be no assurance that the disclosed value of any financial instrument could be realized by immediate settlement of the instrument.
9

Our realinvestments in marketable securities are valued using Level 1 inputs as the securities are publicly traded on major stock exchanges.
Real estate fund investmentinvestments accounted for under the fair value option is stated atfall within Level 3 of the fair value of our ownership in the real estate fund.hierarchy. The fair value is recorded based upon changes in the net asset valueNAV of the limited partnership as determined from the financial statements of the real estate fund. During the three and nine months ended September 30, 2017,March 31, 2022 and 2021, we recorded increasesa net increase in fair value classified within the Level 3 category of $5,834$23,908 and $5,132,$1,081, respectively, inwhich related to our investmentinvestments in the NYC Retail Portfolio (as defined below) and the Single-family Rental Portfolio (see Note 4-Unconsolidated Real Estate Affiliates and Fund Investments). During the three and nine months ended September 30, 2016, we recorded increases in fair value of our investment in the NYC Retail Portfolio of $3,638 and $4,238, respectively.
We have estimated the fair value of our mortgage notes and other debt payable reflected inon the accompanying Consolidated Balance Sheets at amounts that are based upon an interpretation of available market information and valuation methodologies (including discounted cash flow analysis with regard to fixed rate debt) for similar loans made to borrowers with similar credit ratings and for the same maturities. The fair value of our mortgage notes and other debt payable using Level 2 inputs was $4,304$67,899 lower and $5,729 lower$3,794 higher than the aggregate carrying amounts at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively. Such fair value estimates are not necessarily indicative of the amounts that would be realized upon disposition of our mortgage notes payable.
Derivative Financial Instruments
We record all derivatives on the Consolidated Balance Sheets at fair value in prepaid expenses and other assets or accounts payable and other accrued expenses. Changes in the fair value of our derivatives are recorded as a component of interest expense on our Consolidated Statements of Operations and Comprehensive Income (Loss) as we have not designated our derivative instruments as hedges. Our objective in using interest rate derivatives is to manage our exposure to interest rate movements. To accomplish this objective, we use interest rate caps and swaps.

As of September 30, 2017,March 31, 2022, we had the following outstanding interest rate derivatives related to managing our interest rate risk:
Interest Rate Derivative Number of Instruments Notional AmountInterest Rate DerivativeNumber of InstrumentsNotional Amount
Interest Rate Caps 1 $17,680
Interest Rate Swaps 5 171,400
Interest Rate Swaps5$190,000 
The fair value of our interest rate caps and swaps represent assetsliabilities of $1,737$595 and $1,606$2,580 at September 30, 2017March 31, 2022 and December 31, 2016,2021, respectively.
Investment in Marketable Securities
In accordance with our investment guidelines, investments in marketable securities consist of stock of publicly traded REITs. The net unrealized change in the fair value of our investments in marketable securities is recorded in earnings as part of net income in accordance with Accounting Standard Update ("ASU") 2016-1, Financial Statements - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities.
Ground Lease
As of March 31, 2022, we have a single ground lease arrangement for which we are the lessee and recorded a right-of-use asset within prepaid expenses and other assets on our Consolidated Balance Sheets in the amount of $2,094 and a lease liability within accounts payable and other liabilities on our Consolidated Balance Sheets in the amount of $2,247.
Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions impact the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. For example, significant estimates and assumptions have been made with respect to useful lives of assets, recoverable amounts of receivables, fair value of derivatives and real estate assets, initial valuations and related amortization periods of deferred costs and intangibles, particularly with respect to property acquisitions. Actual results could differ from those estimates.
Reclassification
Certain reclassifications
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Recently Issued Accounting Pronouncements
In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) ("ASU 2020-04"), which provides guidance containing practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. We are evaluating the impact of prior year's data have been made to conform to the current year presentation. These reclassifications relate to how amounts are classified within the Net Investment in Real Estate on the Consolidated Balance Sheets but do not change the overall operations or results for the prior year as previously reported.this guidance.
NOTE 3—PROPERTY
The primary reason we make acquisitions of real estate investments in the apartment, industrial, office, residential, retail and other property sectors is to invest capital contributed by stockholders in a diversified portfolio of real estate assets. All references to square footage and units are unaudited.
Acquisitions
On July 14, 2017,March 30, 2022, we acquired Jory Trail at the Grove,Jefferson Lake Howell, a 324 unit apartment community384-unit residential property located in Wilsonville, Oregon,Casselberry, Florida for approximately $74,750. The acquisition was funded by the assumption of an eight-year mortgage loan that bears interest at a fixed-rate of 3.81% in the amount of $44,250, a draw on our credit facility and cash on hand.
On July 28, 2017, we acquired The Reserve at Johns Creek Walk, a 210 unit apartment community located in Johns Creek, Georgia, for approximately $47,300. The acquisition was funded by the assumption of a three-year mortgage loan that bears interest at a fixed rate of 3.30% in the amount of $23,620, a draw on our credit facility and cash on hand.
On August 8, 2017, we acquired, through a reverse 1031 exchange, Montecito Marketplace, a 190,000 square foot grocery-anchored retail center located in Las Vegas, Nevada for approximately $63,550.$154,100. The acquisition was funded with cash on hand and a draw on our credit facility and cash on hand.Credit Facility (defined below).
We allocated the purchase price for our 2017 acquisitions2022 acquisition in accordance with authoritative guidance as follows:
 2017 Acquisitions
Land$26,839
Building and equipment147,709
In-place lease intangible (acquired intangible assets)11,451
Above-market lease intangible (acquired intangible assets)805
Below-market lease intangible (acquired intangible liabilities)(1,235)
 $185,569
Amortization period for intangible assets and liabilities1 month - 15 years

During the nine months ended September 30, 2016, we incurred $2,846 of acquisition expenses recorded on the Consolidated Statements of Operations and Comprehensive Income (Loss). On January 1, 2017, we adopted Accounting Standard Update 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. We expect that most future acquisitions will be accounted for as asset acquisitions and expenses associated with these asset acquisitions will be capitalized.
2022 Acquisitions
Land$11,200 
Building and equipment140,964 
In-place lease intangible (acquired intangible assets)2,090 
$154,254 
Amortization period for intangible assets and liabilities6 months
Dispositions
On July 26, 2017,January 6, 2022, we relinquished our ownership of Railway Street Corporate Centre,sold Norfleet Distribution Center, a 135,000702,000 square foot office buildingindustrial property located in Calgary, Canada, through a deed in lieu of foreclosure with the lender. Upon our relinquishment of the property, we were relieved of approximately $27,600 of mortgage obligations plus accrued interest associated with the mortgage loan. Upon extinguishment of the mortgage debt obligation, a $252 non-cash accounting gain was recognized representing the difference between the book value of the debt, interest payable and other obligations extinguished over the fair value of the property and other assets transferred as of the transfer date. Upon relinquishment of the property and extinguishment of the mortgage debt obligation we also recognized $1,895 of Accumulated Other Comprehensive Loss from historical foreign currency translation adjustments as part of the gain on disposition of property and extinguishment of debt on our Consolidated Statement of Operations and Comprehensive Income (Loss).
On September 19, 2017, we sold 14600 Sherman Way and 14624 Sherman WayKansas City, Missouri for approximately $22,350$60,375 less closing costs. We recorded a gain on the sale of the propertiesproperty in the amount of $7,144. The proceeds from the sale are being held in the reserve 1031 exchange to acquire Montecito Marketplace.
Held for Saleapproximately $34,186.
On September 15, 2017,January 24, 2022, we removedsold The Edge at Lafayette, from helda 207,000 square foot student housing apartment property located in Lafayette, Louisiana for approximately $16,500 less closing costs. We recorded a gain on the sale and placed itof the property in investments in real estate at cost less depreciation catch up.the amount of approximately $13.

NOTE 4—UNCONSOLIDATED REAL ESTATE AFFILIATES AND FUND INVESTMENTINVESTMENTS
In addition to investments in consolidated properties, we may make investments in real estate, which are classified as unconsolidated real estate affiliates under GAAP. The residential sector includes apartment properties and single-family rental homes.
Unconsolidated Real Estate Affiliates
Chicago Parking Garage
On December 23, 2014, we acquired a condominium interest in Chicago Parking Garage, a 366 stall, multi-level parking facility located in a large mixed-use property in Chicago, Illinois for approximately $16,900. In accordance with authoritative guidance, Chicago Parking Garage is accounted for as an investment in anThe following represent our unconsolidated real estate affiliate. At September 30, 2017affiliates as of March 31, 2022 and December 31, 2016, the carrying amount of our investment in Chicago Parking Garage was $17,048 and $18,373, respectively.2021.
Pioneer Tower
Carrying Amount of Investment
PropertyProperty TypeLocationAcquisition Date March 31, 2022December 31, 2021
Chicago Parking GarageOtherChicago, ILDecember 23, 2014$13,843 $13,992 
Pioneer TowerOfficePortland, ORJune 28, 2016102,463 103,529 
The TremontResidentialBurlington, MAJuly 19, 201821,360 21,345 
The HuntingtonResidentialBurlington, MAJuly 19, 201810,630 10,773 
Siena Suwanee Town CenterResidentialSuwanee, GADecember 15, 202030,456 30,685 
Kingston at McLean CrossingResidentialMcLean, VADecember 3, 202138,318 36,720 
Total$217,070 $217,044 
On June 28, 2016, we acquired Pioneer Tower, a 17 story, 296,000 square foot multi-tenant office property in Portland, Oregon for approximately $121,750 using cash on hand. Pioneer Tower sits atop a retail property owned by an independent third party. The land under the property is owned as a condominium interest with the owner of the retail property. In accordance with authoritative guidance, Pioneer Tower is accounted for as an investment in an unconsolidated real estate affiliate. At September 30, 2017 and December 31, 2016, the carrying amount of our investment in Pioneer Tower was $116,652 and $120,725, respectively.
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Summarized Combined Statements of Operations—Unconsolidated Real Estate Affiliates—Equity Method Investments
 Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Total revenues $3,066
 $2,583
 $9,029
 $3,373
Total revenues$7,697 $5,707 
Total operating expenses 2,664
 2,660
 8,036
 3,153
Total operating expenses6,352 6,043 
Operating income (loss)Operating income (loss)$1,345 $(336)
Interest expenseInterest expense(1,417)1,021 
Net income (loss) $402
 $(77) $993
 $220
Net income (loss)$2,762 $(1,357)
Real Estate Fund InvestmentInvestments
NYC Retail Portfolio
On December 8, 2015, a wholly-ownedwholly owned subsidiary of the Companyours acquired an approximate 28% interest in a newly formed limited partnership, Madison NYC Core Retail Partners, L.P., which acquired an approximate 49% interest in entities that initially owned 15 retail properties located in the greater New York City area (the “NYC Retail Portfolio”), the result of which is that we own an approximate 14% interest in the NYC Retail Portfolio. The purchase price for such portion was approximately $85,600 including closing costs. As of September 30, 2017,March 31, 2022, the NYC Retail Portfolio owned 13eight retail properties totaling approximately 2,451,0001,940,000 square feet across urban infill locations in Manhattan, Brooklyn, Queens the Bronx, Staten Island and New Jersey.
At acquisition we made the election to account for our interest in the NYC Retail Portfolio under the fair value option. We have no unfunded commitments. Our investment in the NYC Retail Portfolio is presented on our Consolidated Balance Sheets within real estate fund investment.investments. Changes in the fair value of our investment as well as cash distributions received are recorded on our Consolidated Statements of Operations and Comprehensive Income (Loss) within income from unconsolidated real estate affiliates and fund investments. As of September 30, 2017March 31, 2022 and December 31, 2016,2021, the carrying amount of our investment in the NYC Retail Portfolio was $94,283$83,427 and $89,151,$84,874, respectively. During the three and nine months ended September 30, 2017March 31, 2022, we recorded increasesa decrease in fair value of our investment in the NYC Retail Portfolio of $5,834$1,447 and $5,132, respectively. We received no distributions duringcash distributions. During the three months ended September 30, 2017. During the nine months ended September 30, 2017, we received distributions of income totaling $2,019. During the three and nine months ended September 30, 2016March 31, 2021, we recorded increasesan increase in fair value of our investment in the NYC Retail Portfolio of $3,638$1,081 and $4,238,received no cash distributions.
Single-Family Rental Portfolio
On August 5, 2021, we acquired a 47% interest in a portfolio of approximately 4,000 stabilized single family rental homes located in various markets across the United States, including Atlanta, Dallas, Phoenix, Nashville and Charlotte, among others (the "Single-Family Rental Portfolio"). The portfolio is encumbered by securitized mortgages in a net amount of approximately $760,000 maturing in the fourth quarter of 2025 at a weighted average interest rate of 2.1%. The equity purchase price of our 47% interest was approximately $205,000. We funded the transaction using cash on hand and a draw on our Revolving Credit Facility.
At acquisition we made the election to account for our interest in the Single-Family Rental Portfolio under the fair value option. As of March 31, 2022 and December 31, 2021, the carrying amount of our investment in the Single-Family Rental Portfolio was $293,386 and $268,031, respectively. During the three and nine months ended September 30, 2016March 31, 2022, we recorded an increase in fair value of our investment in the Single-Family Rental Portfolio of $25,355. During the three months ended March 31, 2022, we received adistributions of income totaling $2,355. This cash distribution of income totaling $1,125. This cash distribution increased equity in income offrom unconsolidated real estate affiliates and fund investments. During the three and nine months ended September 30, 2016 we received return
Summarized Statement of capital distributions totaling $120 and $4,495, respectively, related to the sale of an 84,000 square foot retail property and extinguishment of its mortgage loan. On January 17, 2017, a 116,000 square foot retail property in the Operations—NYC Retail Portfolio was soldInvestment and its mortgage loan extinguished.Single-Family Rental Portfolio—FairValue Option Investment

Three Months Ended March 31, 2022Three Months Ended March 31, 2021
Total revenue$19,795 $36 
Net investment income (loss)7,684 (493)
Net change in unrealized gain on investment in real estate venture66,844 3,907 
Net income$74,528 $3,414 

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NOTE 5—MORTGAGE NOTES AND OTHER DEBT PAYABLE
Mortgage notes and other debt payable have various maturities through 20542032 and consist of the following:
Mortgage notes and other debt payableMaturity DateInterest
Rate		Amount payable as of
March 31, 2022December 31, 2021
Mortgage notes payable (1)
June 1, 2023 - March 1, 20321.76% - 5.30%$1,278,479 $1,184,620 
Credit facility
Revolving line of creditMay 25, 20241.90%205,000 300,000 
Bridge loanJune 1, 20221.86%100,000 100,000 
Term loansMay 25, 20241.90% - 3.40%235,000 235,000 
TOTAL$1,818,479 $1,819,620 
Net debt discount on assumed debt and debt issuance costs(1,523)(1,956)
Mortgage notes and other debt payable, net$1,816,956 $1,817,664 
Mortgage notes and other debt payable Maturity Date Interest
Rate		 Amount payable as of
September 30, 2017 December 31, 2016
Mortgage notes payable  (1) (2) (3) (4) (5) (6)
 December 1, 2018 - March 1, 2054 3.00% - 5.30% $666,756
 $691,163
Credit facility        
Revolving line of credit May 26, 2020 2.58% 130,000
 10,000
Term loans May 26, 2022 3.10% 100,000
 —
Net debt discount on assumed debt and debt issuance costs 
 (7,159) (5,550)
Mortgage notes and other debt payable, net $889,597
 $695,613
________
(1)On February 1, 2017, we repaid the mortgage note payable collateralized by Norfleet Distribution Center in the amount of $12,000.
(2)On March 16, 2017, we repaid the mortgage note payable collateralized by the District at Howell Mill in the amount of $9,348.
(3)On May 26, 2017, we repaid the mortgage note payable collateralized by 180 North Jefferson in the amount of $48,250.
(4)On July 14, 2017, we assumed a mortgage note payable that was originated on January 1, 2015 on Jory Trail at the Grove. The mortgage note bears an interest rate of 3.81% for the remaining term and matures on February 1, 2025. As of September 30, 2017, the balance of the loan was $44,250.
(5)On July 26, 2017, we relinquished our ownership of Railway Street Corporate Centre through a deed in lieu of foreclosure with the lender. Upon our relinquishment of the property, we were relieved of approximately $21,000 of mortgage obligations.
(6)On July 28, 2017, we assumed a mortgage note payable that was originated on March 1, 2013 on The Reserve at Johns Creek Walk. The mortgage note bears an interest rate of 3.30% for the remaining term and matures on April 1, 2020. As of September 30, 2017, the balance of the loan was $23,620.
(1)     During the three months ending March 31, 2022, we entered into the following new mortgage notes payable:
•On March 1, 2022, we entered into a $55,800 mortgage payable on Reserve at Venice. The mortgage note bears an interest of 2.98% and matures on March 1, 2032.
•On March 1, 2022, we entered into a $40,000 mortgage payable on Friendship Distribution Center. The mortgage note bears an interest rate of SOFR plus 1.75% (2.03% at March 31, 2022) and matures on March 1, 2029.
Aggregate future principal payments of mortgage notes and other debt payable as of September 30, 2017March 31, 2022 are as follows:
Year Amount
2017 $844
2018 21,813
2019 13,717
2020 76,075
2021 29,295
Thereafter 525,012
Total $666,756
YearAmount
2022$105,869 
202389,890 
2024464,917 
2025192,296 
2026308,023 
Thereafter657,484 
Total$1,818,479 
Credit Facility
On May 26, 2017,24, 2021, we entered into a credit agreement providing for a $250,000$650,000 revolving line of credit and unsecured term loan (collectively, the “Credit Facility”) with a syndicate of sixeight lenders led by JPMorgan Chase Bank, N.A., Bank of America, N.A., PNC Capital Markets LLC and PNCWells Fargo Bank, National Association.N.A. The $250,000Credit Facility provides us with the ability, from time to time, to increase the size of the Credit Facility up to a total of $800 million, subject to receipt of lender commitments and other conditions. The $650,000 Credit Facility consists of a $415,000 revolving credit facility (the "Credit Facility") consists of a $200,000 revolving line of credit (the “Revolving Line of Credit”Credit Facility”) and a $50,000$235,000 term loan (the “Term Loan”). On August 4, 2017, we expanded ourThe Revolving Credit Facility to $300,000. The additional $50,000 borrowing was in the formcontains a sublimit of a five-year Term Loan maturing on May 26, 2022.$25,000 for letters of credit. The primary interest rate for the Revolving Credit Facility is based on LIBOR, plus a margin ranging from 1.25%1.40% to 2.00%2.10%, depending on our total leverage ratio. The primary interest rate for the Term Loan is based on LIBOR, plus a margin ranging from 1.35% to 2.05%, depending on our total leverage ratio. The maturity date of the Revolving Credit Facility and the Term Loan is May 24, 2024. Based on our current total leverage ratio, we can elect to borrow at LIBOR plus 1.45% and LIBOR plus 1.40% for the Revolving Credit Facility and Term Loan, respectively, or alternatively, we can choose to borrow at a “base rate” equal to (i) the highest of (a) the Federal Funds Rate plus 0.5%, (b) the prime rate announced by JPMorgan Chase Bank, N.A., and (c) LIBOR plus 1.0%, plus (ii) a margin ranging from 0.25%0.40% to 1.00%1.10% for base rate loans. The maturity date of the Revolving Line of Credit is May 26, 2020 and contains two 12-month extension options that we may exercise upon (i) payment of an extension fee equal to 0.15% of the gross capacityloans under the Revolving Line of Credit atFacility or a margin ranging from 0.35% to 1.05% for base rate loans under the timeTerm Loan. If the “base rate” is less than 1.0%, it will be deemed to be 1.0% for purposes of the extension, and (ii) compliance with the other conditions set forth in the credit agreement.Credit Facility. We intend to use the Revolving Line of Credit Facility to cover short-term capital needs, for new property acquisitions and working capital. We may not draw funds on our Credit Facility if we (i) experience a material adverse effect, which is defined to include, among other things,


(a) a material adverse effect on the
13

business, assets, operations or financial condition of the Company taken as a whole; (b) the abilityinability of any loan party to perform any of its obligations under any loan document; or (c) a material adverse effect upon the validity or enforceability of any loan document or (ii) are in default, as that term is defined in the agreement, including a default under certain other loan agreements and/or guarantees entered into by us or our subsidiaries. As of September 30, 2017,March 31, 2022, we believe no material adverse effects had occurred. The Credit Facility provides for alternative rate benchmarks in the event that LIBOR is no longer appropriate or available.
On December 10, 2021, we entered into an additional $100,000 short-term bridge loan (the "Bridge Loan") with JPMorgan Chase Bank, N.A. under the same terms as our Credit Facility. The Bridge Loan bears interest at the secured overnight financing rate ("SOFR") plus 1.45% to 2.15% depending on our total leverage ratio. The maturity date of the Bridge Loan is June 10, 2022 and has two, three month extension options. Based on our current total leverage ratio, this borrowing is priced at SOFR plus 1.70%.
Borrowings under the Credit Facility are guaranteed by us and certain of our subsidiaries. The Credit Facility requires the maintenance of certain financial covenants, including: (i) unencumbered property pool leverage ratio; (ii) debt service coverage ratio; (iii) maximum total leverage ratio; (iv) fixed charges coverage ratio; (v) minimum net asset value;NAV; (vi) maximum secured debt ratio; (vii) maximum secured recourse debt ratio; (viii) maximum permitted investments; and (ix) unencumbered property pool criteria. The Credit Facility provides the flexibility to move assets in and out of the unencumbered property pool during the term of the Credit Facility.
At September 30, 2017,March 31, 2022, we had $130,000$205,000 outstanding under the Revolving Line of Credit Facility at a blended rate of 2.58% (LIBORLIBOR + 1.35%) and $100,0001.65%, $235,000 outstanding under the Term Loan at a rate of 2.53% (LIBORLIBOR + 1.30%)1.60%, and $100,000 outstanding under the Bridge Loan at SOFR +1.70%. We swapped the LIBOR portion on $190,000 of our $100,000 in Term LoansLoan to a blended fixed rate of 1.80%1.93% (all in rate of 3.10%3.53% at September 30, 2017)March 31, 2022) and swapped $90,000 of the Revolving Credit Facility to a fixed rate of 2.64% (all in rate of 4.04% at March 31, 2022).
On The interest rate swap agreements have maturity dates ranging from May 26, 2017, we terminated our $150,000 line of credit with Bank of America, N.A. We repaid the outstanding balance of $25,000 which had an interest rate of approximately 2.57%, using proceeds from our Credit Facility. The line of credit was set to expire on September 19, 2017. At December 31, 2016, we had $10,000 in borrowings outstanding on the line of credit.2022 through February 17, 2023.
Covenants
At September 30, 2017,March 31, 2022, we were in compliance with all debt covenants.
Debt Issuance Costs
Debt issuance costs are capitalized, and presented net of mortgage notes and other debt payable, and amortized over the terms of the respective agreements as a component of interest expense. Accumulated amortization of debt issuance costs at September 30, 2017March 31, 2022 and December 31, 20162021 was $3,067$8,818 and $2,537,$8,024, respectively.
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NOTE 6—COMMON STOCK
We have five classes of common stock: Class A, Class M, Class A-I, Class M-I, and Class D. The fees payable to LaSalle Investment Management Distributors, LLC, an affiliate of our Advisor and the dealer manager for our offerings (the "Dealer Manager"), with respect to each outstanding share of each class, as a percentage of net asset value ("NAV"),NAV, are as follows:
Selling Commission (1)
Dealer Manager Fee (2)
Class A Sharesup to 3.0%1.05%0.85%
Class M SharesNone—0.30%
Class A-I Sharesup to 1.5%0.30%
Class M-I SharesNone—0.05%None
Class D Shares (3)
up to 1.0%None
(1)Selling commissions are paid on the date of sale of our common stock.
(2)We accrue all future dealer manager fees up to the ten percent regulatory limitation as accrued offering costs on our Consolidated Balance Sheets on the date of sale of our common stock. For NAV calculation purposes, dealer manager fees are accrued daily, on a continuous basis equal to 1/365th of the stated fee.
(3)Shares of Class D common stock are only being offered pursuant to a private offering.
________
(1)     Selling commissions are paid on the date of sale of our common stock.
(2)     We accrue all future dealer manager fees up to the ten percent regulatory limitation as accrued offering costs on our Consolidated Balance Sheets on the date of sale of our common stock. For NAV calculation purposes, dealer manager fees are accrued daily, on a continuous basis equal to 1/365th of the stated fee. Each Class A, Class M and Class A-I share sold in a public offering will automatically convert into the number of Class M-I shares based on the then-current applicable NAV of each class on the date following the termination of the primary portion of such public offering in which we, with the assistance of the Dealer Manager, determine that total underwriting compensation paid with respect to such public offering equals 10% of the gross proceeds from the primary portion of such public offering.
(3)     Shares of Class D common stock are only being offered pursuant to a private offering.
The selling commissions and dealer manager fees are offering costs and are recorded as a reduction of additional paid in capital.








Stock Transactions
The stock transactions for each of our classes of common stock for the ninethree months ended September 30, 2017March 31, 2022 were as follows:
Shares of
Class A
Common Stock
Shares of
Class M
Common Stock
Shares of
Class A-I
Common Stock
Shares of
Class M-I
Common Stock
Shares of
Class D
Common Stock
Shares of
Class A
Common Stock
 
Shares of
Class M
Common Stock
 
Shares of
Class A-I
Common Stock
 
Shares of
Class M-I
Common Stock
 
Shares of
Class D
Common Stock
Balance, December 31, 201669,837,581
 36,522,305
 12,812,637
 7,591,239
 7,963,493
Balance, December 31, 2021Balance, December 31, 2021100,038,362 36,458,191 9,356,309 52,676,693 7,513,281 
Issuance of common stock2,509,679
 2,742,008
 468,049
 377,566
 —
Issuance of common stock5,159,782 1,813,590 46,569 9,266,134 — 
Repurchase of common stock(2,898,973) (1,675,594) (2,175,405) (585,073) (431,779)Repurchase of common stock(617,910)(411,640)(67,146)(443,752)(1,471,670)
Balance, September 30, 201769,448,287
 37,588,719
 11,105,281
 7,383,732
 7,531,714
Share conversionsShare conversions(3,273)(178,956)— 182,133 — 
Balance, March 31, 2022Balance, March 31, 2022104,576,961 37,681,185 9,335,732 61,681,208 6,041,611 
Stock Issuances
The stock issuances for our classes of common stock, including those issued through our distribution reinvestment plan, for the ninethree months ended September 30, 2017March 31, 2022 were as follows:
Three Months Ended March 31, 2022
# of sharesAmount
Class A Shares5,159,782$72,277 
Class M Shares1,813,59025,361 
Class A-I Shares46,569677 
Class M-I Shares9,266,134129,266 
Class D Shares—— 
Total$227,581 
15
  Nine Months Ended
  September 30, 2017
  # of shares Amount
Class A Shares 2,509,679 $28,843
Class M Shares 2,742,008 31,318
Class A-I Shares 468,049 5,311
Class M-I Shares 377,566 4,307
Total   $69,779

Share Repurchase Plan
Our share repurchase plan allows stockholders, subject to a one-year holding period, with certain exceptions, to request that we repurchase all or a portion of their shares of common stock on a daily basis at that day's NAV per share, limited to 5% of aggregate Company NAV per quarter. For the ninethree months ended September 30, 2017,March 31, 2022, we repurchased 7,766,8243,012,118 shares of common stock in the amount of $88,848.$41,266. During the ninethree months ended September 30, 2016,March 31, 2021, we repurchased 3,891,9553,830,592 shares of common stock in the amount of $43,860.$44,794.
Distribution Reinvestment Plan
Pursuant to our distribution reinvestment plan, holders of shares of any class of our common stock may elect to have their cash distributions reinvested in additional shares of our common stock at the NAV per share applicable to the class of shares being purchased on the distribution date. For the ninethree months ended September 30, 2017,March 31, 2022, we issued 2,592,7971,217,520 shares of common stock for $29,459$17,666 under the distribution reinvestment plan. For the ninethree months ended September 30, 2016,March 31, 2021, we issued 1,788,4111,161,954 shares of common stock for $20,073$13,734 under the distribution reinvestment plan.
Operating Partnership Units
In connection with the acquisitions of Siena Suwanee Town Center and South San Diego Distribution Center, we issued 7,037,257 OP Units to third parties for a total of $88,925. After a one-year holding period, holders of OP Units generally have the right to cause the operating partnership to redeem all or a portion of their OP Units for, at our sole discretion, shares of our common stock, cash, or a combination of both. During the three months ended March 31, 2022 we did not issue any additional OP Units.
Earnings Per Share
BasicWe compute net income per share amounts are based onfor Class A, Class M, Class A-I, Class M-I and Class D common stock using the weighted averagetwo-class method. Our Advisor may earn a performance fee (see Note 9-Related Party Transactions), which may impact the net income of each class of common stock differently. In periods where no performance fee is recognized in our Consolidated Statements of Operations and Comprehensive Income, the net income per share will be the same for each class of common stock.
Basic and diluted net income per share for each class of common stock is computed using the weighted-average number of common shares outstanding during the period for each class of 133,554,999 and 134,894,754 for the three and nine months ended September 30, 2017, respectively, and 113,935,929 and 99,933,097 for the three and nine months ended September 30, 2016, respectively.common stock. We have nonot issued any dilutive or potentially dilutive securities.securities, and thus the basic and diluted net income per share for a given class of common stock is the same for each period presented.
The following table sets forth the computation of basic and diluted net income per share for each of our Class A, Class M, Class A-I, Class M-I and Class D common stock:
Three Months Ended March 31, 2022
Class AClass MClass A-IClass M-IClass D
Basic and diluted net income per share:
Allocation of net income per share before performance fee$22,431 $8,042 $2,044 $12,498 $1,405 
Allocation of performance fee3,793 1,463 353 2,370 236 
Total$18,638 $6,579 $1,691 $10,128 $1,169 
Weighted average number of common shares outstanding102,496,685 36,744,790 9,338,376 57,107,329 6,417,704 
Basic and diluted net income per share:$0.18 $0.18 $0.18 $0.18 $0.18 
Three Months Ended March 31, 2021
Class AClass MClass A-IClass M-IClass D
Basic and diluted net loss per share:
Allocation of net loss per share before performance fee$15,464 $6,060 $1,659 $5,916 $1,006 
Weighted average number of common shares outstanding89,762,121 35,177,589 9,637,799 34,349,467 5,838,096 
Basic and diluted net loss per share:$0.17 $0.17 $0.17 $0.17 $0.17 

16

Organization and Offering Costs
Organization and offering costs include, but are not limited to, legal, accounting, and printing fees and personnel costs of our Advisor (including reimbursement of personnel costs for our executive officers prior to the commencement of the offerings) attributable to our organization, preparation of the registration statement, registration and qualification of our common stock for sale with the SEC, or in a private placement, and in the various states and filing fees incurred by our Advisor. LaSalle agreed to fund our organization and offering expenses through January 16, 2015, which isfor the dateCurrent Public Offering until December 21, 2021, the SEC declared ourday the registration statement was declared effective forby the First Extended Public Offering,SEC, following which time we commenced reimbursing LaSalle over 36 months for organization and offering costs incurred prior to the commencement date of the First Extended Public Offering. months. Following the First ExtendedCurrent Public Offering commencement date, we began paying directly or reimbursing LaSalle if it pays on our behalf


any organization and offering costs incurred during the First ExtendedCurrent Public Offering period (other than selling commissions and dealer manager fees) as and when incurred. After the termination of the First ExtendedCurrent Public Offering, LaSalle has agreed to reimburse us to the extent that the organization and offering costs that we incur exceed 15% of our gross proceeds from the First ExtendedCurrent Public Offering. Organization costs are expensed, whereas offering costs are recorded as a reduction of capital in excess of par value. As of September 30, 2017March 31, 2022 and December 31, 2016,2021, LaSalle had paid $1,380$2,244 and $1,714,$2,113, respectively, of organization and offering costs on our behalf which we had not yet been reimbursed. These costs are included in Accruedaccrued offering costs on the Consolidated Balance Sheets.
17

NOTE 7—DST PROGRAM
On October 16, 2019, we, through our operating partnership, initiated the DST Program, and on August 10, 2021, our board of directors approved an increase to raise up to a total of $1,000,000 in private placements through the sale of beneficial interests in specific Delaware statutory trusts (“DST”) holding DST Properties, which may be sourced from our existing portfolio or from newly acquired properties sourced from third parties. Each DST Property will be leased back by a wholly owned subsidiary of our operating partnership on a long-term basis of up to ten years pursuant to a master lease agreement. The master lease agreements are expected to be guaranteed by our operating partnership. As compensation for the master lease guarantee, our operating partnership will retain a fair market value purchase option giving it the right, but not the obligation, to acquire the beneficial interests in the DST from the investors at any time after two years from the closing of the applicable DST offering in exchange for OP Units or cash, at our discretion.
The sale of beneficial interests in the DST Property will be accounted for as a failed sale-leaseback transaction due to the fair market value purchase option retained by the operating partnership and as such, the property will remain on our books and records. The proceeds received from each DST offering will be accounted for as a financing obligation on the Consolidated Balance Sheets. Upfront costs for legal work and debt placement costs for the DST totaling $2,162 are accounted for as deferred loan costs and are netted against the financing obligation.
Under the master lease, we are responsible for subleasing the DST Property to tenants, for covering all costs associated with operating the underlying DST Property, and for paying base rent to the DST that owns such property. For financial reporting purposes (and not for income tax purposes), the DST Properties are included in our consolidated financial statements, with the master lease rent payments accounted for using the interest method whereby a portion is accounted for as interest expense and a portion is accounted for as a reduction of the outstanding principal balance of the financing obligation. For the three months ended March 31, 2022 and March 31, 2021, we recorded non-cash interest expense related to the master lease in the amounts of $3,824 and $1,350, respectively. Upon the determination that it is probable that we will exercise the fair market value purchase option, we will recognize additional interest expense or interest income to the financing obligation to account for the difference between the fair value of the property and the outstanding liabilities. We determined that certain properties were probable for exercising the fair market value purchase option and recorded additional non-cash interest expense of $2,567 during the three months ended March 31, 2022. We will remeasure the fair value of these properties at each balance sheet date and adjust the non-cash interest expense recognized over the remaining term of the master lease for any changes in fair value. If we elect to repurchase the property prior to the maturity date of the master lease, we will record the difference between the repurchase amount and the financial obligation as additional non-cash interest expense in the period of repurchase. For financial reporting purposes, the rental revenues and rental expenses associated with the underlying property of each master lease are included in the respective line items on our Consolidated Statements of Operations and Comprehensive Income. The net amount we receive from the underlying DST Properties may be more or less than the amount we pay to the investors in the specific DST and could fluctuate over time.
As of March 31, 2022, we have sold $465,408 in interests related to the DST Program. As of March 31, 2022, the following properties are included in our DST Program:
•The Reserve at Johns Creek,
•Summit at San Marcos,
•Mason Mill Distribution Center,
•San Juan Medical Center,
•The Penfield,
•Milford Crossing,
•Villas at Legacy,
•Montecito Marketplace,
•Whitestown Distribution Center,
•Louisville Airport Distribution Center,
•The Preserve at the Meadows,
•The Rockwell,
•9101 Stony Point Drive,
•Reserve at Venice, and
•Friendship Distribution Center.
18

NOTE 8—RENTALS UNDER OPERATING LEASES
We receive rental income from operating leases. The minimum future rentals from consolidated properties based on operating leases in place at March 31, 2022 are as follows:
YearAmount 
2022$212,123 
2023167,098 
2024141,643 
2025123,891 
2026107,261 
Thereafter380,806 
Total$1,132,822 
 Minimum future rentals do not include amounts payable by certain tenants based upon a percentage of their gross sales or as reimbursement of property operating expenses. During the three months ended March 31, 2022, no tenants accounted for greater than 10% of minimum base rents.
NOTE 9—RELATED PARTY TRANSACTIONS
Effective as of October 1, 2012, we entered into a first amended and restated advisory agreementPursuant to our Advisory Agreement with LaSalle, pursuant to which we pay a fixed advisory fee of 1.25% of our NAV calculated daily. The Advisory Agreement allows for a performance fee to be earned for each share class based on the total return of that share class or OP Unit during the calendar year. The performance fee is calculated as 10% of the return in excess of 7% per annum. On May 9, 2017, we renewedThe term of our Advisory Agreement with our Advisor for aexpires June 5, 2023, subject to an unlimited number of successive one year term expiring on June 5, 2018.renewals.
The fixedFixed advisory fees for the three and nine months ended September 30, 2017March 31, 2022 and 2021 were $4,842$9,374 and $14,383,$6,325, respectively. The fixed advisoryPerformance fees for the three and nine months ended September 30, 2016March 31, 2022 were $4,030 and $10,487, respectively.$8,484. There were no performance fees for the ninethree months ended September 30, 2017 and 2016.March 31, 2021. Included in Advisor fees payable at September 30, 2017 and DecemberMarch 31, 2016 were $1,585 and $1,6002022 was $3,393 of fixed advisory fee expense respectively.and $8,484 of performance fee expense. Included in Advisor fees payable for the year ended December 31, 2021 was $2,998 of fixed advisory fee expense and $36,711 of performance fee expenses.
We pay Jones Lang LaSalle Americas, Inc. (“JLL Americas”), an affiliate of our Advisor, for property management, construction management, leasing, mortgage brokerage and sales brokerage services performed at various properties we own, on terms no less favorable than we could receive from other third party service providers.own. For the three and nine months ended September 30, 2017,March 31, 2022 and 2021, we paid JLL Americas was paid $221$419 and $920, respectively, for property management and leasing services. For the three and nine months ended September 30, 2016, JLL Americas was paid $105 and $285,$166, respectively, for property management and leasing services. During the ninethree months ended September 30, 2016,March 31, 2022, there were no mortgage brokerage fees paid to JLL Americas. During the three months ended March 31, 2021, we paid JLL Americas a total of $114$162 in loan placementmortgage brokerage fees related to the mortgage note payable on 140 Park Avenue and $647 in brokerage fees for the 36 Research Park Drive property sale and Dylan Point Loma acquisition.Townlake of Coppell.
We pay the Dealer Manager selling commissions and dealer manager fees in connection with our offerings. For the three and nine months ended September 30, 2017,March 31, 2022 and 2021, we paid the Dealer Manager selling commissions and dealer manager fees totaling $2,530$3,762 and $7,516, respectively. For the three and nine months ended September 30, 2016, we paid the Dealer Manager selling commissions and dealer manager fees totaling $3,106 and $8,323,$2,614, respectively. A majority of the selling commissions and dealer manager fees are reallowed to participating broker-dealers. Included in Accruedaccrued offering costs, at September 30, 2017March 31, 2022 and December 31, 20162021, were $77,590$152,529 and $84,803$135,663 of future dealer manager fees payable, respectively.
As of September 30, 2017March 31, 2022 and December 31, 2016,2021, we owed $1,380$2,244 and $1,714,$2,113, respectively, for organization and offering costs paid by LaSalle (see Note 6-Common Stock). These costs are included in Accruedaccrued offering costs.
LaSalle Investment Management Distributors, LLC also serves as the dealer manager for the DST Program on a “best efforts” basis. Our taxable REIT subsidiary, which is a wholly owned subsidiary of our operating partnership, will pay the Dealer Manager upfront selling commissions, upfront dealer manager fees and placement fees of up to 5.0%, 1.0% and 1.0%, respectively, of the gross purchase price per unit of beneficial interest sold in the DST Program. All upfront selling commissions and upfront dealer manager fees are reallowed to participating broker-dealers. For the three months ended March 31, 2022 and 2021, the taxable REIT subsidiary paid $125 and $1,027, respectively, to the Dealer Manager. In addition, the Dealer Manager may receive an ongoing investor servicing fee that is calculated daily on a continuous basis from year to year equal to 1/365th of (a) 0.25% of the total equity of each outstanding unit of beneficial interest for such day, payable by the DSTs; (b) 0.85% of the NAV of each outstanding Class A OP Unit, 0.30% of the NAV of each outstanding Class M OP Unit or 0.30% of the NAV of each outstanding Class A-I OP Unit for such day issued in connection with our operating partnership's fair market value purchase option, payable by our operating partnership; and (c) 0.85% of the NAV of each outstanding Class A share, 0.30% of the NAV of each outstanding Class M share or 0.30% of the NAV of each outstanding Class A-I share for such
19

day issued in connection with the investors' redemption right, payable by us. The investor servicing fee may continue for so long as the investor in the DST Program holds beneficial interests, Class A, Class M and Class A-I OP Units or Class A, Class M and Class A-I shares that were issued in connection with the DST Program. No investor servicing fee will be paid on Class M-I OP Units or Class M-I shares. For the three months ended March 31, 2022 and 2021, the DSTs paid $287 and $126, respectively, in investor servicing fees to the Dealer Manager in connection with the DST Program.
LaSalle also serves as the manager for the DST Program. Each DST pays the manager a management fee equal to a to-be-agreed upon percentage of the total equity of such DST. For the three months ended March 31, 2022 and 2021, the DSTs paid $184 and $76, respectively, in management fees to our Advisor in connection with the DST Program.
NOTE 8—10—COMMITMENTS AND CONTINGENCIES
We are involved in various claims and litigation matters arising in the ordinary course of business, some of which involve claims for damages. Many of these matters are covered by insurance, although they may nevertheless be subject to deductibles or retentions. Although the ultimate liability for these matters cannot be determined, based upon information currently available, we believe the ultimate resolution of such claims and litigation will not have a material adverse effect on our financial position, results of operations or liquidity.
From time to time, we have entered into contingent agreements for the acquisition and financing of properties. Such acquisitions and financings are subject to satisfactory completion of due diligence or meeting certain leasing or occupancy thresholds.
We are subject to fixed ground lease payments on South Beach Parking Garage of $100$112 per year until September 30, 2021 and these payments2024, which will increase every five years thereafter by the lesser of 12% or the cumulative CPI over the previous five year period. We are also subject to a variable ground lease payment calculated as 2.5% of revenue. The lease expires September 30, 2041 and has a ten-year renewal option.
The operating agreement for Townlake of CoppellGrand Lakes Marketplace allows the unrelated third party joint venture partner, owning a 10% interest, to put theirits interest to us at a market determined value.
The operating agreement for 237 Via Vera Cruz, 13500 Danielson Street, 4211 Starboard, 2840 Loaker Avenue and 15890 Bernardo Center Drive allows the unrelated third party joint venture partner, owning a 5% interest, to put its interest to us at a market determined value starting July 31, 2024.
The operating agreement for Presley Uptown allows the unrelated third party joint venture partner, owning a period of 90 days beginning in 2018.

2.5% interest, to put its interest to us at a market determined value starting September 30, 2022 until September 30, 2024.

NOTE 9—11—SEGMENT REPORTING
We have five reportable operating segments: apartment, industrial, office, residential, retail and other properties. Consistent with how our chief operating decision makers evaluate performance and manage our properties, the financial information summarized below is presented by operating segment and reconciled to net income (loss) for the three and nine months ended September 30, 2017March 31, 2022 and 2016.2021.
20

 Industrial OfficeResidential RetailOther Total
Assets as of March 31, 2022Assets as of March 31, 2022$1,324,928 $476,747 $1,432,265 $558,009 $23,448 $3,815,397 
Assets as of December 31, 2021Assets as of December 31, 20211,352,580 479,306 1,301,454 564,565 23,412 3,721,317 
  Apartment  Industrial  Office  Retail Other  Total
Assets as of September 30, 2017 $605,427
 $480,636
 $261,806
 $575,540
 $20,962
 $1,944,371
Assets as of December 31, 2016 492,530
 488,454
 300,702
 517,758
 21,313
 1,820,757
Three Months Ended March 31, 2022Three Months Ended March 31, 2022
            
Three Months Ended September 30, 2017            
Capital expenditures by segmentCapital expenditures by segment$1,005 $1,121 $— $316 $— $2,442 
Revenues:            Revenues:
Minimum rents $11,460
 $7,876
 $6,735
 $8,233
 $68
 $34,372
Tenant recoveries and other rental income 1,111
 2,365
 1,109
 2,841
 495
 7,921
Rental revenueRental revenue$24,886 $11,332 $25,061 $13,615 $61 $74,955 
Other revenueOther revenue35 286 1,222 72 601 2,216 
Total revenues $12,571
 $10,241
 $7,844
 $11,074
 $563
 $42,293
Total revenues$24,921 $11,618 $26,283 $13,687 $662 $77,171 
Operating expenses:            Operating expenses:
Real estate taxes $2,040
 $1,805
 $728
 $1,504
 $104
 $6,181
 Real estate taxes$4,107 $1,164 $4,256 $1,671 $113 $11,311 
Property operating 3,461
 715
 1,722
 1,546
 215
 7,659
Provision for doubtful accounts 14
 1
 1
 10
 —
 26
Property operating expenses Property operating expenses2,284 2,173 7,212 2,124 208 14,001 
Total segment operating expenses $5,515
 $2,521
 $2,451
 $3,060
 $319
 $13,866
Total segment operating expenses$6,391 $3,337 $11,468 $3,795 $321 $25,312 
Operating income - Segments $7,056
 $7,720
 $5,393
 $8,014
 $244
 $28,427
            
Capital expenditures by segment $1,213
 $276
 $839
 $357
 $19
 $2,704
            
Reconciliation to net incomeReconciliation to net incomeReconciliation to net income
Operating income - Segments           $28,427
Property general and administrative           274
 Property general and administrative$697 
Advisor fees           4,842
 Advisor fees17,858 
Company level expenses           491
 Company level expenses1,074 
Depreciation and amortization           16,589
 Depreciation and amortization32,974 
Operating income           $6,231
Total operating expensesTotal operating expenses$77,915 
Other income and (expenses):            Other income and (expenses):
Interest expense           $(7,730) Interest expense(17,852)
Income from unconsolidated real estate affiliates and fund investments       6,236
Other income   500
Gain on disposition of property and extinguishment of debt   5,501
Gain from unconsolidated real estate affiliates and fund investment Gain from unconsolidated real estate affiliates and fund investment29,025 
Investment income on marketable securities Investment income on marketable securities304 
Net realized gain upon sale of marketable securities Net realized gain upon sale of marketable securities79 
Net unrealized change in fair value of investment in marketable securities Net unrealized change in fair value of investment in marketable securities(2,984)
Gain on disposition of property and extinguishment of debt, net Gain on disposition of property and extinguishment of debt, net31,492 
Total other income and (expenses)           $4,507
Total other income and (expenses)$40,064 
Net income           $10,738
Net income$39,320 
            
Reconciliation to total consolidated assets as of September 30, 2017
Reconciliation to total consolidated assets as of March 31, 2022Reconciliation to total consolidated assets as of March 31, 2022
Assets per reportable segments           $1,944,371
Assets per reportable segments$3,815,397 
Investment in unconsolidated real estate affiliates, real estate fund investment and corporate level assets 269,046
Investment in unconsolidated real estate affiliates, real estate fund investments and corporate level assetsInvestment in unconsolidated real estate affiliates, real estate fund investments and corporate level assets760,830 
Total consolidated assets           $2,213,417
Total consolidated assets$4,576,227 
            
Reconciliation to total consolidated assets as of December 31, 2016
Reconciliation to total consolidated assets as of December 31, 2021Reconciliation to total consolidated assets as of December 31, 2021
Assets per reportable segments           $1,820,757
Assets per reportable segments3,721,317 
Investment in unconsolidated real estate affiliates, real estate fund investment and corporate level assets

 253,876
Investment in unconsolidated real estate affiliates, real estate fund investments and corporate level assetsInvestment in unconsolidated real estate affiliates, real estate fund investments and corporate level assets680,929 
Total consolidated assets           $2,074,633
Total consolidated assets$4,402,246 




21

   Apartment  Industrial  Office  Retail Other  Total
Three Months Ended September 30, 2016            
Revenues:            
   Minimum rents $6,956
 $6,877
 $7,184
 $6,428
 $69
 $27,514
   Tenant recoveries and other rental income 452
 2,093
 1,205
 2,407
 520
 6,677
Total revenues $7,408
 $8,970
 $8,389
 $8,835
 $589
 $34,191
Operating expenses:            
   Real estate taxes $985
 $1,507
 $898
 $1,258
 $79
 $4,727
   Property operating 2,557
 591
 1,786
 1,212
 235
 6,381
   (Recovery of) provision for doubtful accounts (9) —
 24
 41
 1
 57
Total segment operating expenses $3,533
 $2,098
 $2,708
 $2,511
 $315
 $11,165
Operating income - Segments $3,875
 $6,872
 $5,681
 $6,324
 $274
 $23,026
             
Capital expenditures by segment $835
 $235
 $2,838
 $923
 $28
 $4,859
             
Reconciliation to net loss
Operating income - Segments           $23,026
   Property general and administrative           208
   Advisor fees           4,030
   Company level expenses           454
   Acquisition expenses           1,759
   Provision for impairment of real estate           6,355
   Depreciation and amortization           12,072
Operating loss           $(1,852)
Other income and (expenses):            
   Interest expense           $(5,874)
   Income from unconsolidated real estate affiliates and fund investments     4,686
   Gain on disposition of property and extinguishment of debt    1,664
Total other income and (expenses)           $476
Net loss           $(1,376)
 Industrial OfficeResidential RetailOther Total
Three Months Ended March 31, 2021
Capital expenditures by segment$433 $710 $2,975 $512 $16 $4,646 
Revenues:
Rental revenue$15,226 $7,572 $15,848 $12,053 $32 $50,731 
Other revenue5 372 759 83 631 1,850 
Total revenues$15,231 $7,944 $16,607 $12,136 $663 $52,581 
Operating expenses:
   Real estate taxes$2,459 $767 $3,112 $1,633 $115 $8,086 
   Property operating expenses1,354 1,487 4,830 2,046 194 9,911 
Total segment operating expenses$3,813 $2,254 $7,942 $3,679 $309 $17,997 
Reconciliation to net income
   Property general and administrative$660 
   Advisor fees6,325 
   Company level expenses1,193 
   Depreciation and amortization19,945 
Total operating expenses$46,120 
Other income and (expenses):
   Interest expense(9,262)
   Loss from unconsolidated real estate affiliates and fund investment(339)
   Gain on disposition of property and extinguishment of debt, net33,422 
Total other income and (expenses)$23,821 
Net Income$30,282 


   Apartments  Industrial  Office  Retail Other  Total
Nine Months Ended September 30, 2017            
Revenues:            
   Minimum rents $30,288
 $23,501
 $20,729
 $23,457
 $206
 $98,181
   Tenant recoveries and other rental income 3,085
 7,622
 3,721
 8,046
 1,761
 24,235
Total revenues $33,373
 $31,123
 $24,450
 $31,503
 $1,967
 $122,416
Operating expenses:            
   Real estate taxes $5,121
 $5,902
 $2,620
 $4,393
 $327
 $18,363
   Property operating 8,846
 1,990
 5,221
 4,367
 659
 21,083
   Provision for (recovery of) doubtful accounts 30
 1
 (1) 45
 —
 75
Total segment operating expenses $13,997

$7,893
 $7,840
 $8,805
 $986
 $39,521
Operating income - Segments $19,376
 $23,230
 $16,610
 $22,698
 $981
 $82,895
             
Capital expenditures by segment $2,406
 $1,105
 $3,339
 $1,730
 $204
 $8,784
             
Reconciliation to net income
Operating income - Segments           $82,895
   Property general and administrative           830
   Advisor fees           14,383
   Company level expenses           1,730
   Depreciation and amortization           44,704
Operating income           $21,248
Other income and (expenses):            
   Interest expense           $(21,375)
   Income from unconsolidated real estate affiliates and fund investments 8,144
   Other income           500
   Gain on disposition of property and extinguishment of debt     5,501
Total other income and (expenses)           $(7,230)
Net income           $14,018


   Apartments  Industrial  Office  Retail Other  Total
Nine Months Ended September 30, 2016            
Revenues:            
   Minimum rents $18,634
 $17,322
 $21,382
 $18,306
 $208
 $75,852
   Tenant recoveries and other rental income 1,148
 5,147
 3,738
 6,814
 1,771
 18,618
Total revenues $19,782
 $22,469

$25,120
 $25,120
 $1,979
 $94,470
Operating expenses:            
   Real estate taxes $2,325
 $3,768
 $2,591
 $3,511
 $327
 $12,522
   Property operating 6,406
 1,449
 5,185
 3,492
 685
 17,217
   Provision for doubtful accounts 12
 —
 24
 154
 1
 191
Total segment operating expenses $8,743
 $5,217
 $7,800
 $7,157
 $1,013
 $29,930
Operating income - Segments $11,039
 $17,252
 $17,320
 $17,963
 $966
 $64,540
             
Capital expenditures by segment $1,930
 $1,006
 $8,380
 $2,090
 $41
 $13,447
             
Reconciliation to net income
Operating income - Segments           $64,540
   Property general and administrative           814
   Advisor fees           10,487
   Company level expenses           1,657
   Acquisition expenses           2,846
   Provision for impairment of real estate           6,355
   Depreciation and amortization           31,052
Operating income           $11,329
Other income and (expenses):            
   Interest expense           $(18,529)
   Income from unconsolidated real estate affiliates and fund investments 5,583
   Gain on disposition of property and extinguishment of debt       1,704
Total other income and (expenses)           $(11,242)
Net income           $87



NOTE 10—DISTRIBUTIONS PAYABLE12—INVESTMENT IN MARKETABLE SECURITIES
The following is a summary of our investment in marketable securities held as of March 31, 2022 and December 31, 2021, which consisted entirely of stock of publicly traded REITs.
March 31, 2022December 31, 2021
Investment in marketable securities - cost$40,650 40,273 
Unrealized gains1,312 3,161 
Unrealized losses(1,363)(228)
Net unrealized (loss) gain(51)2,933 
Investment in marketable securities - fair value$40,599 $43,206 
Upon the sale of a particular security, the realized net gain or loss is computed assuming the shares purchased first are sold first. During the three months ended March 31, 2022, marketable securities sold generated proceeds of $4,348, resulting in realized gains of $157, and realized losses of $78.
22

NOTE 13—SUBSEQUENT EVENTS
On AugustApril 8, 2022, we acquired Northeast Atlanta Distribution Center, a 459,000 square foot industrial property located in Jefferson, GA for approximately $54,100.
On April 28, 2022, we entered into a credit agreement providing for a $1,000,000 revolving line of credit and unsecured term loan (collectively, the “Credit Facility”) with a syndicate of nine lenders led by JPMorgan Chase Bank, N.A., Bank of America, N.A., PNC Capital Markets LLC, Wells Fargo Securities, LLC and Capital One, National Association. The Credit Facility provides us with the ability, from time to time, to increase the size of the Credit Facility up to a total of $1,300,000, subject to receipt of lender commitments and other conditions. The $1,000,000 Credit Facility consists of a $600,000 revolving credit facility (the “Revolving Credit Facility”) and a $400,000 term loan (the “Term Loan”). The primary interest rate for the Revolving Credit Facility is based on one-month SOFR plus 0.10% (“Adjusted Term SOFR”), plus a margin ranging from 1.30% to 2.00%, depending on our total leverage ratio. The primary interest rate for the Term Loan is based on Adjusted Term SOFR, plus a margin ranging from 1.25% to 1.95%, depending on our total leverage ratio. The maturity date of the Revolving Credit Facility is April 28, 2025 and the Term Loan is April 28, 2027. The credit facility contains two, twelve-month extension options at our election. Based on our current total leverage ratio, we can elect to borrow at Adjusted Term SOFR plus 1.35% and Adjusted Term SOFR plus 1.30% for the Revolving Credit Facility and Term Loan, respectively, or alternatively, we can choose to borrow at a “base rate” equal to (i) the highest of (a) the Federal Funds Rate plus 0.5%, (b) the prime rate announced by JPMorgan Chase Bank, N.A., and (c) Adjusted Term SOFR plus 1.0%, plus (ii) a margin ranging from 0.30% to 1.00% for base rate loans under the Revolving Credit Facility or a margin ranging from 0.25% to 0.95% for base rate loans under the Term Loan. If the “base rate” is less than 1.0%, it will be deemed to be 1.0% for purposes of the Credit Facility.
On April 29, 2022, we acquired Flagstaff Medical Center, a 26,000 square foot medical office property located in Flagstaff, AZ for approximately $17,200.
On May 10, 2017,2022, our board of directors approved a gross dividend for the thirdsecond quarter of 20172022 of $0.125$0.14 per share to stockholders of record as of SeptemberJune 28, 2017. The dividend was paid on November 1, 2017. Class A, Class M, Class A-I, Class M-I and Class D stockholders received $0.125 per share, less applicable class-specific fees, if any.
NOTE 11— RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
InMay 2014, the FASB issued Accounting Standard Update 2014-09 Revenue from Contracts with Customers, which will use a five step model to recognize revenue from customer contracts in an effort to increase consistency and comparability throughout global capital markets and across industries.  The model will identify the contract, identify any separate performance obligations in the contract, determine and allocate the transaction price, and recognize revenue when the performance obligation is satisfied.  The new standard will replace most existing revenue recognition in GAAP when it becomes effective for us on January 1, 2018.  We are in the process of evaluating whether the guidance will impact the accounting for tenant reimbursements, but we currently do not believe this update will have a material impact on our consolidated financial statements and notes to our consolidated financial statements.  Additionally, we are evaluating the impact on the timing of gain recognition for dispositions but currently do not believe there will be a material impact to our consolidated financial statements for dispositions given the simplicity of our historical disposition transactions. We expect to adopt the standard using the cumulative effect transition method.
In January 2016, the FASB issued Accounting Standard Update 2016-01 Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The standard will become effective for reporting periods beginning after December 15, 2017, with early adoption permitted. We are in the process of evaluating the impact of this new guidance.
In February 2016, the FASB issued Accounting Standard Update 2016-02 Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification.  Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The update is expected to impact our consolidated financial statements as we have a ground lease arrangement for which we are the lessee. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. We currently believe the adoption of the standard will not have a material impact on leases for which we are the lessor. We are the lessee on one ground lease that will require us to record a right-of-use asset and a lease liability.  We have preliminarily concluded that the adoption of the standard will not have a material impact on the consolidated financial statements for leases for which we are the lessee.
In August 2016, the FASB issued Accounting Standard Update 2016-15 Statement of Cash Flows (Topic 230). The new guidance is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The core principle of the standard requires the classification of eight specific issues identified under ASC 230 to be presented as either financing, investing or operating, or some combination thereof, depending upon the nature of the issue. The standard will be effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Entities are required to use a retrospective transition approach for all of the issues identified to each period presented. We do not expect this standard to materially effect our consolidated financial statements and related disclosures.
In November 2016, the FASB issued Accounting Standard Update 2016-18 Statement of Cash Flows (Topic 230) – Restricted Cash. The new guidance requires that restricted cash be included as a component of total cash and cash equivalents as presented on the statement of cash flows. The standard is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted in any interim or annual period. We do not expect the application of this standard to materially effect our consolidated financial statements and related disclosures.


NOTE 12—SUBSEQUENT EVENTS
On November 9, 2017, our board of directors approved a gross dividend for the fourth quarter of 2017 of $0.125 per share to stockholders of record as of December 28, 2017.2022. The dividend will be paid on or around February 1, 2018.June 29, 2022. Class A, Class M, Class A-I, Class M-I and Class D stockholders will receive $0.125$0.14 per share, less applicable class-specific fees, if any.


On May 10, 2022, we renewed our Advisory Agreement for a one-year term expiring on June 5, 2023, without any other changes.
*  *  *  *  *  *


23

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.
$ in thousands, except per share amounts
Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q ("Form 10-Q") may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), regarding, among other things, our plans, strategies and prospects, both business and financial. Forward-looking statements include, but are not limited to, statements that represent our beliefs concerning future operations, strategies, financial results or other developments. Forward-looking statements can be identified by the use of forward-looking terminology such as, but not limited to, “may,” “should,” “expect,” “anticipate,” “estimate,” “would be,” “believe,” or “continue” or the negative or other variations of comparable terminology. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Form 10-Q is filed with the SEC. Except as required by law, we do not undertake to update or revise any forward-looking statements contained in this Form 10-Q. Important factors that could cause actual results to differ materially from the forward-looking statements are disclosed in “Item 1A. Risk Factors,” “Item 1. Business” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our 20162021 Form 10-K and our periodic reports filed with the SEC.
Management Overview
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand our results of operations and financial condition. This MD&A is provided as a supplement to, and should be read in conjunction with, our consolidated financial statements and the accompanying notes to the consolidated financial statements appearing elsewhere in this Form 10-Q. All references to numbered Notes are to specific notes to our Consolidated Financial Statementsconsolidated financial statements beginning on page 7 of this Form 10-Q, and the descriptions referred to are incorporated into the applicable portion of this section by reference. References to “base rent” in this Form 10-Q refer to cash payments made under the relevant lease(s), excluding real estate taxes and certain property operating expenses that are paid by us and are recoverable under the relevant lease(s) and exclude adjustments for straight-line rent revenue and above- and below-market lease amortization.
The discussions surrounding our Consolidated Propertiesportfolio of properties refer to our wholly or majority ownedConsolidated Properties, including our DST Properties, and controlled properties, which as of September 30, 2017, were comprised of:
Apartment
Station Nine Apartments,
The Edge at Lafayette,
Townlake of Coppell,
AQ Rittenhouse,
Lane Parke Apartments (acquired in 2016),
Dylan Point Loma (acquired in 2016),
The Penfield (acquired in 2016),
180 North Jefferson (acquired in 2016),
Jory Trail at the Grove (acquired in 2017) and
The Reserve at Johns Creek (acquired in 2017).
Industrial
Kendall Distribution Center,
Norfleet Distribution Center,
Joliet Distribution Center,
Suwanee Distribution Center,
South Seattle Distribution Center,


Grand Prairie Distribution Center,
Charlotte Distribution Center,
DFW Distribution Center,
O'Hare Industrial Portfolio,
Tampa Distribution Center (acquired in 2016),
Aurora Distribution Center (acquired in 2016),
Valencia Industrial Portfolio (acquired in 2016) and
Pinole Point Distribution Center (acquired in 2016).
Office
Monument IV at Worldgate,
111 Sutter Street,
140 Park Avenue and
San Juan Medical Center (acquired in 2016).
Retail
The District at Howell Mill,
Grand Lakes Marketplace,
Oak Grove Plaza,
Rancho Temecula Town Center,
Skokie Commons,
Whitestone Market,
Maui Mall,
Silverstone Marketplace (acquired in 2016),
Kierland Village Center (acquired in 2016),
Timberland Town Center (acquired in 2016) and
Montecito Marketplace (acquired in 2017).
Other
South Beach Parking Garage.
Sold Properties
36 Research Park Drive (sold in 2016),
Campus Lodge Tampa (sold in 2016),
Railway Street Corporate Centre (transferred to lender in 2017),
14600 Sherman Way (sold in 2017) and
14624 Sherman Way (sold in 2017).

Discussions surrounding our Unconsolidated Properties refer to properties owned through joint venture arrangements or condominium interests, which were comprised of the Chicago Parking Garage, the NYC Retail Portfolio and Pioneer Tower (office) as of September 30, 2017. Our investment in Pioneer Tower was acquired on June 28, 2016.can be found below (see Item 2 - Properties).
Our primary business is the ownership and management of a diversified portfolio of apartment, industrial, office, residential, retail and other properties primarily located in the United States. The residential sector includes apartment properties and single-family rental homes. It is expected that over time our real estate portfolio will be further diversified on a global basis and will be further complemented by investments in real estate-related assets.
We are managed by our Advisor, LaSalle Investment Management, Inc., a subsidiary of our Sponsor, Jones Lang LaSalle Incorporated (NYSE: JLL), a leading global financial and professional services firm that specializes in commercial real estate and investment management. We hire property management and leasing companies to provide the on-site, day-to-day management and leasing services for our properties. When selecting a property management or leasing company for one of our properties, we look for service providers that have a strong local market or industry presence, create portfolio efficiencies, have the ability to develop new business for us and will provide a strong internal control environment that will comply with our Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley”) internal control requirements. We currently use a mix of property management


and leasing service providers that include large national real estate service firms, including an affiliate of our Advisor and smaller local firms.

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We seek to minimize risk and maintain stability of income and principal value through broad diversification across property sectors and geographic markets and by balancing tenant lease expirations and debt maturities across the real estate portfolio. Our diversification goals also take into account investing in sectors or regions we believe will create returns consistent with our investment objectives. Under normal conditions, we intend to pursue investments principally in well-located, well-leased properties within the apartment, industrial, office, residential, retail and other sectors. We expect to actively manage the mix of properties and markets over time in response to changing operating fundamentals within each property sector and to changing economies and real estate markets in the geographic areas considered for investment. When consistent with our investment objectives, we also seek to maximize the tax efficiency of our investments through like-kind exchanges and other tax planning strategies.
The following charts summarize our portfolio diversification by property sector and geographic region based upon the fair value of our properties. These tables provide examples of how our Advisor evaluates our real estate portfolio when making investment decisions.

Estimated Percent of Fair Value as of September 30, 2017:March 31, 2022:
jllipt-20140_charta10.jpgjllipt-20220331_g2.jpg
jllipt-20140_chartxa10.jpg

jllipt-20220331_g3.jpg

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Our investments are not materially impacted by seasonality, despite certain of our retail tenants being impacted by seasonality. Percentage rents (rents computed as a percentage of tenant sales) that we earn from investments in retail properties may, in the future, be impacted by seasonality.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions impact the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. For example, significant estimates and assumptions have been made with respect to the useful lives of assets, recoverable amounts of receivables, fair value of derivatives and real estate assets, initial valuations and related amortization periods of deferred costs and intangibles, particularly with respect to property acquisitions. Actual results could differ from those estimates.
Critical Accounting Policies
This MD&A is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. Management bases its estimates on historical experience and assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. We believe there have been no significant changes during the ninethree months ended September 30, 2017March 31, 2022 to the items that we disclosed as our critical accounting policies and estimates under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 20162021 Form 10-K.
Initial Valuations and Estimated Useful Lives or Amortization Periods for Real Estate Investments and Intangibles
These estimates are particularly important as they are used for the allocation of purchase price between depreciable and non-depreciable real estatebuilding, land and other identifiable intangibles, including above, below and at-market leases. As a result, the impact of these estimates on our operations could be substantial. Significant differences in annual depreciation or amortization expense may result from the differing useful life or amortization periods related to such purchased assets and liabilities.
Impairment of Long-Lived Assets
Our estimate of the expected future cash flows used in testing for impairment is subjective and based on, among other things, our estimates regarding future market conditions, rental rates, occupancy levels, costs of tenant improvements, leasing commissions and other tenant concessions, assumptions regarding the residual value of our properties at the end of our anticipated holding period, discount rates and the length of our anticipated holding period. These assumptions could differ materially from actual results. If changes in our strategy changes or ifthe market conditions otherwise dictateresult in a reduction in the holding period and an earlier sale date, an impairment loss could be recognized and such loss could be material. No such strategy changes or market conditions have been identified as of March 31, 2022.


Collectibility of Rental Revenue

Individual leases are evaluated for collectibility at each reporting period. We evaluate the collectibility of rents and other receivables at each reporting period based on factors including, among others, tenants' payment history, the financial condition of the tenant, business conditions and trends in the industry in which the tenant operates and economic conditions in the geographic area where the property is located. If evaluation of these factors or others indicates it is not probable we will collect substantially all rent we recognize an adjustment to rental revenue. If our judgment or estimation regarding probability of collection changes we may adjust or record additional rental revenue in the period such conclusion is reached.



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Properties
Properties owned at September 30, 2017March 31, 2022, including DST Properties, are as follows:
Percentage Leased as of March 31, 2022
Property NameLocationAcquisition DateOwnership
%
Net Rentable
Square Feet
Consolidated Properties:
Industrial Segment:
Kendall Distribution Center Atlanta, GAJune 30, 2005100%409,000 100%
Suwanee Distribution CenterSuwanee, GAJune 28, 2013100559,000 100
Grand Prairie Distribution Center 
3325 West Trinity BoulevardGrand Prairie, TXJanuary 22, 2014100277,000 100
3324 West Trinity BoulevardGrand Prairie, TXMay 31, 2019100145,000 100
Charlotte Distribution CenterCharlotte, NCJune 27, 2014100347,000 100
DFW Distribution Center
4050 Corporate DriveGrapevine, TXApril 15, 2015100441,000 100
4055 Corporate DriveGrapevine, TXApril 15, 2015100202,000 89
O'Hare Industrial Portfolio
200 LewisWood Dale, ILSeptember 30, 201510031,000 100
1225 Michael DriveWood Dale, ILSeptember 30, 2015100109,000 100
1300 Michael DriveWood Dale, ILSeptember 30, 201510071,000 100
1301 Mittel DriveWood Dale, ILSeptember 30, 201510053,000 100
1350 Michael DriveWood Dale, ILSeptember 30, 201510056,000 100
2501 Allan DriveElk Grove, ILSeptember 30, 2015100198,000 100
2601 Allan DriveElk Grove, ILSeptember 30, 2015100124,000 100
Tampa Distribution CenterTampa, FLApril 11, 2016100386,000 100
Aurora Distribution CenterAurora, ILMay 19, 2016100305,000 100
Valencia Industrial Portfolio:
28150 West Harrison ParkwayValencia, CAJune 29, 201610087,000 100
28145 West Harrison ParkwayValencia, CAJune 29, 2016100114,000 100
28904 Paine AvenueValencia, CAJune 29, 2016100117,000 100
25045 Tibbitts AvenueSanta Clarita, CAJune 29, 2016100142,000 100
Pinole Point Distribution Center:
6000 Giant RoadRichmond, CASeptember 8, 2016100225,000 100
6015 Giant RoadRichmond, CASeptember 8, 2016100252,000 100
6025 Giant RoadRichmond, CADecember 29, 201610041,000 100
Mason Mill Distribution CenterBuford, GADecember 20, 2017100340,000 100
Fremont Distribution Center
45275 Northport CourtFremont, CAMarch 29, 2019100117,000 100
45630 Northport Loop EastFremont, CAMarch 29, 2019100120,000 100
Taunton Distribution CenterTaunton, MAAugust 23, 2019100200,000 100
Chandler Distribution Center
1725 East Germann RoadChandler, AZDecember 5, 2019100122,000 100
1825 East Germann RoadChandler, AZDecember 5, 201910089,000 100
Fort Worth Distribution CenterFort Worth, TXOctober 23, 2020100351,000 100
Whitestown Distribution Center
4993 Anson BoulevardWhitestown, INDecember 11, 2020100280,000 100
5102 E 500 SouthWhitestown, INDecember 11, 2020100440,000 100
Louisville Distribution CenterShepherdsville, KYJanuary 21, 20211001,040,000 100
Southeast Phoenix Distribution Center
6511 West Frye RoadChandler, AZFebruary 23, 2021100102,000 100
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Percentage
Leased as of September 30, 2017
Property Name Location Acquisition Date 
Ownership
%
 
Net Rentable
Square Feet
 
Consolidated Properties:          
Apartment Segment:          
Station Nine Apartments Durham, NC April 16, 2007 100% 312,000 92%
The Edge at Lafayette (1) Lafayette, LA January 15, 2008 78 207,000 92
Townlake of Coppell (1) Coppell, TX May 22, 2015 90 351,000 94
AQ Rittenhouse Philadelphia, PA July 30, 2015 100 92,000 93
Lane Parke Apartments Mountain Brook, AL May 26, 2016 100 263,000 95
Dylan Point Loma San Diego, CA August 9, 2016 100 204,000 93
The Penfield St. Paul, MN September 22, 2016 100 245,000 96
180 North Jefferson Chicago, IL December 1, 2016 100 217,000 95
Jory Trail at the Grove Wilsonville, OR July 14, 2017 100 315,000 90
The Reserve at Johns Creek Johns Creek, GA July 28, 2017 100 244,000 95
Industrial Segment:          
Kendall Distribution Center Atlanta, GA June 30, 2005 100 409,000 —
Norfleet Distribution Center Kansas City, MO February 27, 2007 100 702,000 100
Joliet Distribution Center Joliet, IL June 26, 2013 100 442,000 100
Suwanee Distribution Center Suwanee, GA June 28, 2013 100 559,000 100
South Seattle Distribution Center:          
3800 1st Avenue South Seattle, WA December 18, 2013 100 162,000 100
3844 1st Avenue South Seattle, WA December 18, 2013 100 101,000 100
3601 2nd Avenue South Seattle, WA December 18, 2013 100 60,000 100
Grand Prairie Distribution Center Grand Prairie, TX January 22, 2014 100 277,000 100
Charlotte Distribution Center Charlotte, NC June 27, 2014 100 347,000 100
DFW Distribution Center:          
4050 Corporate Drive Grapevine, TX April 15, 2015 100 441,000 100
4055 Corporate Drive Grapevine, TX April 15, 2015 100 202,000 100
O’Hare Industrial Portfolio:          
200 Lewis Wood Dale, IL September 30, 2015 100 31,000 100
1225 Michael Drive Wood Dale, IL September 30, 2015 100 109,000 100
1300 Michael Drive Wood Dale, IL September 30, 2015 100 71,000 100
1301 Mittel Drive Wood Dale, IL September 30, 2015 100 53,000 100
1350 Michael Drive Wood Dale, IL September 30, 2015 100 56,000 100
2501 Allan Drive Elk Grove, IL September 30, 2015 100 198,000 100
2601 Allan Drive Elk Grove, IL September 30, 2015 100 124,000 100
Tampa Distribution Center Tampa, FL April 11, 2016 100 386,000 100
Aurora Distribution Center Aurora, IL May 19, 2016 100 305,000 100
Valencia Industrial Portfolio:          
28150 West Harrison Parkway Valencia, CA June 29, 2016 100 87,000 100
28145 West Harrison Parkway Valencia, CA June 29, 2016 100 114,000 100
28904 Paine Avenue Valencia, CA June 29, 2016 100 117,000 100
24823 Anza Drive Santa Clarita, CA June 29, 2016 100 31,000 100
25045 Tibbitts Avenue Santa Clarita, CA June 29, 2016 100 142,000 100
Pinole Point Distribution Center:          
6000 Giant Road Richmond, CA September 8, 2016 100 252,000 100
6015 Giant Road Richmond, CA September 8, 2016 100 225,000 100


Percentage Leased as of March 31, 2022
Property NameLocationAcquisition DateOwnership
%
Net Rentable
Square Feet
6565 West Frye RoadChandler, AZFebruary 23, 2021100118,000 100
6615 West Frey RoadChandler, AZFebruary 23, 2021100136,000 100
6677 West Frye RoadChandler, AZFebruary 23, 2021100118,000 100
Louisville Airport Distribution CenterLouisville, KYJune 24, 2021100284,000 100
237 Via Vera Cruz (1)San Marcos, CAJuly 2, 20219566,000 100
13500 Danielson Street (1)Poway, CAJuly 2, 20219573,000 100
4211 Starboard Drive (1)Fremont, CAJuly 9, 202195130,000 100
5 National WayDurham, NCSeptember 28, 2021100188,000 100
47 National WayDurham, NCSeptember 28, 2021100187,000 100
Friendship Distribution Center
4627 Distribution PkwyBuford, GAOctober 20, 2021100126,000 100
4630 Distribution PkwyBuford, GAOctober 20, 2021100149,000 100
4646 Distribution PkwyBuford, GAOctober 20, 2021100102,000 100
4651 Distribution PkwyBuford, GAOctober 20, 2021100272,000 100
South San Diego Distribution Center
2001 Sanyo AvenueSan Diego, CAOctober 28, 2021100320,000 100
2055 Sanyo AvenueSan Diego, CAOctober 28, 2021100209,000 87
2065 Sanyo AvenueSan Diego, CAOctober 28, 2021100136,000 100
1755 Britannia DriveElgin, ILNovember 16, 202110080,000 100
2451 Bath RoadElgin, ILNovember 16, 2021100327,000 100
687 Conestoga ParkwayShepardsville, KYNovember 17, 2021100327,000 100
2840 Loker AvenueCarlsbad, CANovember 30, 202195104,000 100
15890 Bernardo Center DriveSan Diego, CANovember 30, 20219548,000 100
Office Segment: 
Monument IV at Worldgate Herndon, VAAugust 27, 2004100%228,000 100%
140 Park AvenueFlorham Park, NJDecember 21, 2015100100,000 100
San Juan Medical CenterSan Juan Capistrano, CAApril 1, 201610040,000 100
Genesee Plaza
9333 Genesee AveSan Diego, CAJuly 2, 201910080,000 78
9339 Genesee AveSan Diego, CAJuly 2, 201910081,000 91
Fountainhead Corporate Park
Fountainhead Corporate Park ITempe, AZFebruary 6, 2020100167,000 100
Fountainhead Corporate Park IITempe, AZFebruary 6, 2020100128,000 100
170 Park AvenueFlorham Park, NJFebruary 2, 2021100147,000 100
9101 Stony Point DriveRichmond, VASeptember 15, 202110087,000 100
North Tampa Surgery CenterOdessa, FLOctober 8, 202110013,000 100
Duke Medical CenterDurham, NCDecember 23, 202110060,000 96
KC Medical Office Portfolio
8600 NE 82nd StreetKansas City, MODecember 23, 202110011,000 100
1203 SW 7 HighwayBlue Springs, MODecember 23, 202110010,000 100
Roeland Park Medical OfficeRoeland Park, KSDecember 28, 202110030,000 100
South Reno Medical CenterReno, NVDecember 28, 202110032,000 100
Sugar Land Medical PlazaSugar Land, TXDecember 30, 202110037,000 100
Residential Segment:
Townlake of CoppellCoppell, TXMay 22, 2015100351,000 95
AQ RittenhousePhiladelphia, PAJuly 30, 201510092,000 98
Lane Parke ApartmentsMountain Brook, ALMay 26, 2016100263,000 90
28

Percentage Leased as of March 31, 2022
6025 Giant Road Richmond, CA December 29, 2016 100 41,000 100
 
Office Segment:   
Monument IV at Worldgate Herndon, VA August 27, 2004 100 228,000 100
111 Sutter Street San Francisco, CA March 29, 2005 100 286,000 85
140 Park Avenue Florham Park, NJ December 21, 2015 100 100,000 100
San Juan Medical Center San Juan Capistrano, CA April 1, 2016 100 40,000 100
Property NameProperty NameLocationAcquisition DateOwnership
%
Net Rentable
Square Feet
Percentage Leased as of March 31, 2022
Dylan Point LomaDylan Point LomaSan Diego, CAAugust 9, 2016100204,000 
The PenfieldThe PenfieldSt. Paul, MNSeptember 22, 2016100245,000 96
180 North Jefferson180 North JeffersonChicago, ILDecember 1, 2016100217,000 96
Jory Trail at the GroveJory Trail at the GroveWilsonville, ORJuly 14, 2017100315,000 95
The Reserve at Johns CreekThe Reserve at Johns CreekJohns Creek, GAJuly 28, 2017100244,000 96
Villas at LegacyVillas at LegacyPlano, TXJune 6, 2018100340,000 95
Stonemeadow FarmsStonemeadow FarmsBothell, WAMay 13, 2019100228,000 97
Summit at San MarcosSummit at San MarcosChandler, AZJuly 31, 2019100257,000 97
Presley Uptown (1)Presley Uptown (1)Charlotte, NCSeptember 30, 201998190,000 96
Princeton North AndoverPrinceton North AndoverNorth Andover, MAMay 3, 2021100204,000 97
The Preserve at the MeadowsThe Preserve at the MeadowsFort Collins, COAugust 23, 2021100208,000 96
The RockwellThe RockwellBerlin, MAAugust 31, 2021100233,000 98
Miramont ApartmentsMiramont ApartmentsFort Collins, COSeptember 29, 2021100212,000 97
Pinecone ApartmentsPinecone ApartmentsFort Collins, COSeptember 29, 2021100176,000 99
Reserve at VeniceReserve at VeniceNorth Venice, FLDecember 17, 2021100268,000 94
Woodside TrumbullWoodside TrumbullTrumbull, CTDecember 21, 2021100207,000 89
Jefferson Lake HowellJefferson Lake HowellCasselberry, FLMarch 30, 2022100374,000 91
Retail Segment: Retail Segment:
The District at Howell Mill (1) Atlanta, GA June 15, 2007 88 306,000 97The District at Howell Mill (1)Atlanta, GAJune 15, 200788%306,000 96%
Grand Lakes Marketplace (1) Katy, TX September 17, 2013 90 131,000 100Grand Lakes Marketplace (1)Katy, TXSeptember 17, 201390131,000 75
Oak Grove Plaza Sachse, TX January 17, 2014 100 120,000 95Oak Grove PlazaSachse, TXJanuary 17, 2014100120,000 94
Rancho Temecula Town Center Temecula, CA June 16, 2014 100 165,000 94Rancho Temecula Town CenterTemecula, CAJune 16, 2014100165,000 97
Skokie Commons Skokie, IL May 15, 2015 100 97,000 100Skokie CommonsSkokie, ILMay 15, 201510097,000 98
Whitestone Market Austin, TX September 30, 2015 100 145,000 98Whitestone MarketAustin, TXSeptember 30, 2015100145,000 99
Maui Mall Kahului, HI December 22, 2015 100 235,000 93Maui MallKahului, HIDecember 22, 2015100235,000 83
Silverstone Marketplace Scottsdale, AZ July 27, 2016 100 78,000 97Silverstone MarketplaceScottsdale, AZJuly 27, 201610078,000 93
Kierland Village Center Scottsdale, AZ September 30, 2016 100 118,000 100Kierland Village CenterScottsdale, AZSeptember 30, 2016100118,000 98
Timberland Town Center Beaverton, OR September 30, 2016 100 92,000 97Timberland Town CenterBeaverton, ORSeptember 30, 201610092,000 96
Montecito Marketplace Las Vegas, NV August 8, 2017 100 190,000 98Montecito MarketplaceLas Vegas, NVAugust 8, 2017100190,000 95
Milford CrossingMilford CrossingMilford, MAJanuary 29, 2020100159,000 99
Other Segment: Other Segment:
South Beach Parking Garage (2) Miami Beach, FL January 28, 2014 100 130,000 N/ASouth Beach Parking Garage (2)Miami Beach, FLJanuary 28, 2014100%130,000 N/A
 
Unconsolidated Properties: Unconsolidated Properties:
Chicago Parking Garage (3) Chicago, IL December 23, 2014 100 167,000 N/AChicago Parking Garage (3)Chicago, ILDecember 23, 2014100%167,000 N/A
NYC Retail Portfolio (4) NY/NJ December 8, 2015 14 2,451,000 95
Pioneer Tower (5) Portland, OR June 28, 2016 100 296,000 94
NYC Retail Portfolio (4)(5)NYC Retail Portfolio (4)(5)NY/NJDecember 8, 2015141,938,000 91
Pioneer Tower (6)Pioneer Tower (6)Portland, ORJune 28, 2016100296,000 68
The Tremont (1)The Tremont (1)Burlington, MAJuly 19, 201875175,000 97
The Huntington (1)The Huntington (1)Burlington, MAJuly 19, 201875115,000 93
Siena Suwanee Town CenterSiena Suwanee Town CenterSuwanee, GADecember 15, 2020100226,000 92
Single-Family Rental Portfolio (5)Single-Family Rental Portfolio (5)VariousAugust 5, 2021477,207,000 96
Kingston at McLean Crossing (1)Kingston at McLean Crossing (1)McLean, VADecember 3, 202180223,000 97

________
(1)We own an interest in the joint venture that owns a fee interest in this property.
(2)The parking garage contains 343 stalls. This property is owned subject to a ground lease.
(3)We own a condominium interest in the building that contains a 366 stall parking garage.
(4)We own an approximate 14% fund interest in a portfolio of 13 urban infill retail properties located in the greater New York City area.
(5)We own a condominium interest in the building that contains a 17 story multi-tenant office property.
(1)We own a majority interest in the joint venture that owns a fee simple interest in this property.
(2)The parking garage contains 343 stalls. This property is owned leasehold.
(3)We own a condominium interest in the building that contains a 366 stall parking garage.
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(4)We own an approximate 14% interest in a portfolio of eight urban infill retail properties located in the greater New York City area.
(5)We have elected the fair value option to account for this investment.
(6)We own a condominium interest in the building that contains a 17 story multi-tenant office property.

Operating Statistics
We generally hold investments in properties with high occupancy rates leased to quality tenants under long-term, non-cancelable leases. We believe these leases are beneficial to achieving our investment objectives. The following table shows our operating statistics by property type for our consolidated properties as of September 30, 2017:March 31, 2022:
  
Number of
Properties
 
Total Area
(Sq Ft)
 
% of Total
Area
 Occupancy % 
Average Minimum
Base Rent per
Occupied Sq Ft (1)
Apartment 10
 2,453,000
 22% 93% $21.89
Industrial 28
 6,044,000
 55
 93
 5.03
Office 4
 655,000
 7
 94
 40.05
Retail 11
 1,675,000
 15
 97
 19.86
Other 1
 130,000
 1
 N/A
 N/A
Total 54
 10,957,000
 100% 94% $13.23
(1)Amount calculated as in-place minimum base rent for all occupied space at September 30, 2017 and excludes any straight line rents, tenant recoveries and percentage rent revenues.

Number of
Properties		Total Area
(Sq Ft)		% of Total
Area		Occupancy %Average Minimum
Base Rent per
Occupied Sq Ft (1)
Industrial55 11,392,000 59 %99 %$6.31 
Office16 1,251,000 6 98 32.16 
Residential20 4,828,000 24 95 22.51 
Retail12 1,836,000 9 94 20.84 
Other1 130,000 1 N/AN/A
Total104 19,437,000 99 %98 %$13.36 

________
(1)Amount calculated as in-place minimum base rent for all occupied space at March 31, 2022 and excludes any straight line rents, tenant recoveries and percentage rent revenues.
As of September 30, 2017,March 31, 2022, our average effective annual rent per square foot, calculated as average minimum base rent per occupied square foot less tenant concessions and allowances, was $13.12$12.31 for our consolidated properties.
Recent Events and Outlook
Property Valuations
Property valuations across our portfolio are seeing positive valuation increases especially within our residential, industrial and healthcare properties driven by good underlying property fundamentals and strong capital markets.
Credit Facility
On May 24, 2021, we entered into our Credit Facility providing for a $650,000 revolving line of credit and unsecured term loan made up of a $415,000 Revolving Credit Facility and a $235,000 Term Loan. The Credit Facility provides us with the ability, from time to time, to increase the size of the Credit Facility up to a total of $800,000, subject to receipt of lender commitments and other conditions. We are in compliance with our debt covenants as of March 31, 2022. We expect to maintain compliance with our debt covenants.
Liquidity
At March 31, 2022, we had in excess of $124,000 in total cash on hand and $210,000 of capacity under our Credit Facility. Looking at the remainder of 2022 and into 2023, we expect to utilize our cash on hand and Credit Facility capacity to acquire new properties, fund repurchases of our shares and fund quarterly distributions.
Share Repurchase Plan
During the first quarter of 2022, we repurchased $41,266 of our common stock pursuant to our share repurchase plan, which had a quarterly limit of $139,775. The quarterly limit on repurchases is calculated as 5% of our NAV as of the last day of the previous quarter. The limit for the second quarter of 2022 is $161,697.

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General Company and Market Commentary
On January 16, 2015, we commencedDecember 21, 2021, the SEC declared our First ExtendedCurrent Public Offering ofeffective registering up to $2,700,000$3,000,000 in any combination of shares of our Class A, Class M, Class A-I and Class M-I shares of common stock, consisting of up to $2,400,000$2,700,000 of shares offered in our primary offering and up to $300,000 ofin shares offered pursuant to our distribution reinvestment plan, and our Initial Public Offering automatically terminated.plan. We intend to offer shares of our common stock on a continuous basis for an indefinite period of time by filing a new registration statement before the end of each offering period, subject to regulatory approval. The per share purchase price varies from day-to-dayday to day and, on each day, equals our NAV per share for each class of common stock, plus, for Class A and Class A-I shares, applicable selling commissions. The Dealer Manager LaSalle Investment Management Distributors, LLC, has agreed to distributeis distributing shares of our common stock in our First ExtendedCurrent Public Offering. We intend to primarily use the net proceeds from the offering, after we pay the fees and expenses attributable to the offerings and our operations, to (1) grow and further diversify our portfolio by making investments in accordance with our investment strategy and policies, (2) reduce borrowings and repay indebtedness incurred under various financing instruments and (3) fund repurchases of our shares under our share repurchase plan.
On March 3, 2015, we commenced a private offeringour Private Offering of up to $350,000 in shares of our Class D common stock with an indefinite duration. Proceeds from our private offeringPrivate Offering will be used for the same corporate purposes as the proceeds from the First Extended Public Offering.our public offerings.
Over the past five yearsOn October 16, 2019, we have acquired 64 properties (all of these consistent with our investment strategy), sold 28 non-strategic properties, reduced our Company leverage ratio, decreased our average interest rate on debt, and increased cash reserves and Company-wide liquidity, while also providing cash flow to our stockholders through our regular quarterly dividend payments.operating partnership, initiated the DST Program to raise up to $500,000, which our board of directors increased to $1,000,000 on August 10, 2021, in private placements exempt from registration under the Securities Act through the sale of beneficial interests to accredited investors in specific DSTs holding DST Properties, which may be sourced from our real properties or from third parties.
Capital Raised and Use of Proceeds
As of September 30, 2017,March 31, 2022, we have raised gross proceeds of over $1,490,000$3,368,000 from our public and private offerings and private share sales since 2012. We used these proceeds along with proceeds from mortgage debt to acquire approximately $1,928,000$4,653,000 of real estate investments, deleverage the companyCompany by repaying mortgage loans of approximately $397,000$647,000 and repurchase shares of our common stock for approximately $291,000.$947,000.
Property Acquisitions
On July 14, 2017,March 30, 2022, we acquired Jory Trail at the Grove,Jefferson Lake Howell, a 324 unit apartment community384-unit residential property located in Wilsonville, Oregon,Casselberry, Florida for approximately $74,750. The acquisition was funded by the assumption of an eight-year mortgage loan that bears interest at a fixed-rate of 3.81% in the amount of $44,250, a draw on our credit facility and cash on hand.
On July 28, 2017, we acquired The Reserve at Johns Creek Walk, a 210 unit apartment community located in Johns Creek, Georgia, for approximately $47,300. The acquisition was funded by the assumption of a three year mortgage loan that bears interest at a fixed rate of 3.30% in the amount of $23,620, a draw on our credit facility and cash on hand.
On August 8, 2017, we acquired through a reverse 1031 exchange, Montecito Marketplace, a 190,000 square foot grocery-anchored retail center located in Las Vegas, Nevada for approximately $63,550.$154,100. The acquisition was funded with cash on hand and a draw on our credit facility and cash on hand.Credit Facility.
Property Dispositions
On January 17, 2017,6, 2022, we sold Norfleet Distribution Center, a 116,000702,000 square foot retailindustrial property in the NYC Retail Portfolio was sold and its mortgage loan extinguished. Sale proceeds were maintained at the venture for operating needs.
On July 26, 2017, we relinquished our ownership of Railway Street Corporate Centre, a 135,000 square foot office building located in Calgary, Canada, through a deed in lieu of foreclosure with the lender.
On September 19, 2017, we sold 14600 Sherman Way and 14624 Sherman WayKansas City, Missouri for approximately $22,350$60,375 less closing costs. We recorded a gain on the sale of the propertiesproperty in the amount of $7,144.
Stock Repurchases
For the nine months ended September 30, 2017, we repurchased $88,563 of shares of our common stock through the share repurchase plan.


Financingapproximately $34,186.
On February 1, 2017,January 24, 2022, we repaidsold The Edge at Lafayette, a 207,000 square foot student housing apartment property located in Lafayette, Louisiana for approximately $16,500 less closing costs. We recorded a gain on the mortgage note payable collateralized by Norfleet Distribution Centersale of the property in the amount of $12,000.approximately $13.
Financing
On March 16, 2017, we repaid the mortgage note payable collateralized by the District at Howell Mill in the amount of $9,348.
On May 26, 2017,1, 2022, we entered into a new Credit Facility providing for a $200,000 Revolving Line of Credit and $50,000 Term Loan. We used proceeds from the Term Loan to repay the$55,800 mortgage payable on Reserve at Venice. The mortgage note bears an interest of 2.98% and matures on March 1, 2032.
On March 1, 2022, we entered into a $40,000 mortgage payable collateralized by 180 North Jefferson in the amount of $48,250 and the Credit Facility to repay the $25,000 outstanding balance we had as of May 25, 2017 on our previous line of credit. We swapped the LIBOR portion of the initial $50,000 of the Term Loan to a fixedFriendship Distribution Center. The mortgage note bears an interest rate of 1.80%
On August 4, 2017, we expanded our Credit Facility by $50,000. The additional borrowing was in the form of a five year term loan maturingSOFR plus 1.75% (2.03% at March 31, 2022) and matures on May 26, 2022 at LIBOR plus 1.35%. We swapped the LIBOR portion to a fixed rate of 1.81%.
Subsequent Events
On November 9, 2017, our board of directors approved a gross dividend for the fourth quarter of 2017 of $0.125 per share to stockholders of record as of December 28, 2017. The dividend will be paid on or around FebruaryMarch 1, 2018. Class A, Class M, Class A-I, Class M-I and Class D stockholders will receive $0.125 per share, less applicable class-specific fees, if any.2029.
Investment Objectives and Strategy
Our primary investment objectives are:
•to generate an attractive level of current income for distribution to our stockholders;
•to preserve and protect our stockholders' capital investments;
•to achieve appreciation of our NAV over time; and
•to enable stockholders to utilize real estate as an asset class in diversified, long-term investment portfolios.
31

We cannot ensure that we will achieve our investment objectives. Our charter places numerous limitations on us with respect to the manner in which we may invest our funds. In most cases, these limitations cannot be changed unless our charter is amended, which may require the approval of our stockholders.
The cornerstone of our investment strategy is to acquire and manage income-producing commercial real estate properties and real estate-related assets around the world. We believe this strategy enables us to provide our stockholders with a portfolio that is well-diversified across property type, geographic region and industry, both in the United States and internationally. It is our belief that adding international investments to our portfolio over time will serve as an effective tool to construct a well-diversified portfolio designed to provide our stockholders with stable distributions and attractive long-term risk-adjusted returns.
We believe that our broadly diversified portfolio benefits our stockholders by providing:
•diversification of sources of income;
•access to attractive real estate opportunities currently in the United States and, over time, around the world; and
•exposure to a return profile that should have lower correlations with other investments.
Since real estate markets are often cyclical in nature, our strategy allows us to more effectively deploy capital into property types and geographic regions where the underlying investment fundamentals are relatively strong or strengthening and away from those property types and geographic regions where such fundamentals are relatively weak or weakening. We intend to meet our investment objectives by selecting investments across multiple property types and geographic regions to achieve portfolio stability, diversification, current income and favorable risk-adjusted returns. To a lesser degree, we also intend to invest in debt and equity interests backed principally by real estate, which we refer to collectively as “real estate-related assets.”


We will leverage LaSalle's broad commercial real estate research and strategy platform and resources to employ a research-based investment philosophy focused on building a portfolio of commercial properties and real estate-related assets that we believe has the potential to provide stable income streams and outperform market averages over an extended holding period. Furthermore, we believe that having access to LaSalle and JLL's international organization and platform, with real estate professionals living and working full time throughout our global target markets, will be a valuable resource to us when considering and executing upon international investment opportunities.
Our board of directors has adopted investment guidelines for our Advisor to implement and actively monitor in order to allow us to achieve and maintain diversification in our overall investment portfolio. Our board of directors formally reviews our investment guidelines on an annual basis and our investment portfolio on a quarterly basis or, in each case, more often as they deem appropriate. Our board of directors reviews the investment guidelines to ensure that the guidelines are being followed and are in the best interests of our stockholders. Each such determination and the basis therefor shall be set forth in the minutes of the meetings of our board of directors. Changes to our investment guidelines must be approved by our board of directors but do not require notice to or the vote of stockholders.
We seek to invest:
•up to 95% of our assets in properties;
•up to 25% of our assets in real estate-related assets; and
•up to 15% of our assets in cash, cash equivalents and other short-term investments.
Notwithstanding the above, the actual percentage of our portfolio that is invested in each investment type may from time to time be outside these target levels due to numerous factors including, but not limited to, large inflows of capital over a short period of time, lack of attractive investment opportunities or increases in anticipated cash requirements for repurchase requests.
We expect to maintain a targeted Company leverage ratio (calculated as our share of total liabilities excluding future dealer manager fees, divided by our share of the fair value of total assets) of between 30% and 50%. We intend to use low leverage, or in some cases possibly no leverage, to finance new acquisitions in order to maintain our targeted Company leverage ratio. Our Company leverage ratio was 40%39% as of September 30, 2017.March 31, 2022.
2017
32

2022 Key Initiatives
During 2017,the remainder of 2022, we intend to use capital raised from our public and private offerings and the DST Program to acquire new investment opportunities, repurchase stock under our share repurchase plan and fund quarterly distributions. We look to make new acquisitionsinvestments that will furtherfit with our investment objectives and are in keeping with ourguidelines. Likely investment strategy. Likely acquisition candidates may include well-located, well-leased residential properties, industrial warehouses, grocery-anchored neighborhoodproperties, medical office properties and community shopping centers, urban infill retail and conventional apartments in either urban and transit-oriented locations or suburban, supply-constrained markets with highly-rated school districts. We will look to acquire other property types when the opportunities and risk profile match our investment objectives and strategy.publicly traded REIT securities. We will also attempt to further our geographic diversification. We will use debt financing to take advantage of the current favorable interest rate environment, while lookinglook to keep the Company leverage ratio in the 30% to 50% range in the near term.term consistent with traditional core real estate. We also intend to use our Revolving Line of Credit Facility to allow us to more efficiently manage our cash flows.

33


Results of Operations
General
Our revenues are primarily received from tenants in the form of fixed minimum base rents and recoveries of operating expenses. Our expenses primarily relate to the costs of operating and financing the properties. Our share of the net income or net loss from our unconsolidated real estate affiliates is included in income from unconsolidated affiliates and fund investments. We believe the following analysis of reportable segments provides important information about the operating results of our real estate investments, such as trends in total revenues or operating expenses that may not be as apparent in a period-over-period comparison of the entire Company. We group our investments in real estate assets from continuing operations into five reportable operating segments based on the type of property, which are apartment,residential, industrial, office, retail and other. Operations from corporate level items and real estate assets sold are excluded from reportable segments.
Properties acquired or sold during any of the periods presented are presented within the recent acquisitions and sold properties line until the property has been owned for all periods presented.line. The properties currently presented within the recent acquisitions and sold properties line include the properties listed as either acquired or sold in the Management Overviewcurrent or prior year in the Properties section above.above in addition to South Seattle Distribution Cener (sold in 2021), Norfleet Distribution Center (sold in 2022) and The Edge at Lafayette (sold in 2022). Properties owned for the ninethree months ended September 30, 2017March 31, 2022 and 20162021 are referred to as our comparable properties.
Results of Operations for the Three Months Ended September 30, 2017 March 31, 2022 and 20162021
Revenues
The following chart sets forth revenues by reportable segment for the three months ended September 30, 2017March 31, 2022 and 2016:
2021:
Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 
$
 Change
 
%
Change
 Three Months Ended March 31, 2022Three Months Ended March 31, 2021$
 Change		%
Change
Revenues:       Revenues:
Minimum rents    

 

Apartment$4,225
 $4,210
 $15
 0.4 %
Rental revenueRental revenue
ResidentialResidential$16,541 $15,188 $1,353 8.9 %
Industrial4,984
 4,827
 157
 3.3
Industrial13,610 12,742 868 6.8 
Office5,750
 5,862
 (112) (1.9)Office7,368 6,852 516 7.5 
Retail5,805
 5,952
 (147) (2.5)Retail13,615 12,053 1,562 13.0 
Other68
 69
 (1) (1.4)Other61 32 29 90.6 
Comparable properties total$20,832
 $20,920
 $(88) (0.4)%Comparable properties total$51,195 $46,867 $4,328 9.2 %
Recent acquisitions and sold properties13,540
 6,594
 6,946
 105.3
Recent acquisitions and sold properties23,760 3,864 19,896 514.9 
Total$34,372
 $27,514
 $6,858
 24.9 %
Total rental revenueTotal rental revenue$74,955 $50,731 $24,224 47.7 %
       
Tenant recoveries and other rental income    

 

Apartment$272
 $244
 $28
 11.5 %
Other revenueOther revenue
ResidentialResidential$814 $730 $84 11.5 %
Industrial1,412
 1,529
 (117) (7.7)Industrial40 4 36 900.0 
Office625
 562
 63
 11.2
Office293 371 (78)(21.0)
Retail2,127
 2,253
 (126) (5.6)Retail72 83 (11)(13.3)
Other495
 520
 (25) (4.8)Other601 631 (30)(4.8)
Comparable properties total$4,931
 $5,108
 $(177) (3.5)%Comparable properties total$1,820 $1,819 $1 0.1 %
Recent acquisitions and sold properties2,990
 1,569
 1,421
 90.6
Recent acquisitions and sold properties396 31 365 1,177 
Total$7,921
 $6,677
 $1,244
 18.6 %
Total other revenueTotal other revenue$2,216 $1,850 $366 19.8 %
Total revenues$42,293
 $34,191

$8,102
 23.7 %Total revenues$77,171 $52,581 $24,590 46.8 %
Minimum rentsRental revenues at comparable properties decreased by $88increased $4,328 for the three months ended September 30, 2017March 31, 2022 as compared to the same period in 2016.2021. The decrease isincrease of $1,562 within our retail segment was primarily duerelated to decreases of $110 at 111 Sutter Street and $92 at The District at Howell Mill related toan increase in collections from tenants that experienced a decrease in occupancyoperations from COVID-19 in 2021 as well as an increase in recovery revenue related to increased operating expenses within the segment during the three months ended September 30, 2017. Partially offsetting these decreases were increases of $62 at Joliet Distribution CenterMarch 31, 2022. The increase in rental
34

revenue from our residential, industrial and office segments are primarily related to an increase inhigher rental rates and higher occupancy and $44 at O'Hare Industrial Portfolio related to increases in rental ratesseveral of the properties during the three months ended September 30, 2017March 31, 2022 as compared to the same period of 2021.
Other revenues relate mainly to parking and nonrecurring revenue such as lease termination fees. Other revenue at comparable properties increased by $1 for the three months ended March 31, 2022 as compared to the same period in 2016.


Tenant recoveries relate mainly2021. The minimal increase is primarily related to real estate taxeslease termination fees and certain property operating expenses that are paidincreased parking revenue collected in 2022 within our residential segment. The increase was offset by us and are recoverable under the various tenants’ leases. Other rental income includes daily transient parking, percentage rents and other non-recurring tenant charges. Tenant recoveries and other rental income at comparable properties decreased by $177 fora decrease in lease termination revenue of $50 within our office segment related to collections made in the three months ended September 30, 2017 as compared to the same periodMarch 31, 2021 that did not reoccur in 2016. The decrease is primarily related to decreases of $135 at O'Hare Industrial Portfolio and $79 at Rancho Temecula Town Center related to true-up billings of prior year expenses made during the three months ended September 30, 2017.2022.
Operating Expenses
The following chart sets forth real estate taxes and property operating expenses and provisions for doubtful accounts by reportable segment, for the three months ended September 30, 2017March 31, 2022 and 2016:2021:
 Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 
$
 Change
 
%
Change
 Three Months Ended March 31, 2022Three Months Ended March 31, 2021$
 Change		%
Change
Operating expenses:        Operating expenses:
Real estate taxes        Real estate taxes
Apartment $500
 $411
 $89
 21.7 %
ResidentialResidential$3,026 $3,049 $(23)(0.8)%
Industrial 1,094
 1,097
 (3) (0.3)Industrial2,366 2,237 129 5.8 
Office 590
 634
 (44) (6.9)Office871 799 72 9.0 
Retail 1,199
 1,193
 6
 0.5
Retail1,671 1,633 38 2.3 
Other 104
 79
 25
 31.6
Other113 115 (2)(1.7)
Comparable properties total $3,487
 $3,414
 $73
 2.1 %Comparable properties total$8,047 $7,833 $214 2.7 %
Recent acquisitions and sold properties 2,694
 1,313
 1,381
 105
Recent acquisitions and sold properties3,264 253 3,011 1,190 
Total $6,181
 $4,727
 $1,454
 30.8 %
Total real estate taxesTotal real estate taxes$11,311 $8,086 $3,225 39.9 %
        
Property operating        
Apartment $1,404
 $1,255
 $149
 11.9 %
Property operating expensesProperty operating expenses
ResidentialResidential$4,784 $4,363 $421 9.6 %
Industrial 426
 450
 (24) (5.3)Industrial1,328 1,235 93 7.5 
Office 1,231
 1,207
 24
 2.0
Office1,582 1,472 110 7.5 
Retail 1,192
 1,156
 36
 3.1
Retail2,124 2,046 78 3.8 
Other 215
 235
 (20) (8.5)Other208 194 14 7.2 
Comparable properties total $4,468
 $4,303
 $165
 3.8 %Comparable properties total$10,026 $9,310 $716 7.7 %
Recent acquisitions and sold properties 3,191
 2,078
 1,113
 53.6
Recent acquisitions and sold properties3,975 601 3,374 561.4 
Total $7,659
 $6,381
 $1,278
 20.0 %
Total property operating expensesTotal property operating expenses$14,001 $9,911 $4,090 41.3 %
        
Provision for doubtful accounts     

 

Apartment $14
 $11
 $3
 27.3 %
Retail 12
 42
 (30) (71.4)
Other —
 1
 (1) (100.0)
Comparable properties total $26
 $54
 $(27) (50.0)%
Recent acquisitions and sold properties —
 3
 (3) (100.0)
Total $26
 $57
 $(31) (54.4)%
Total operating expenses $13,866
 $11,165
 $2,701
 24.2 %Total operating expenses$25,312 $17,997 $7,315 40.6 %
Real estate taxes at comparable properties increased by $73$214 for the three months ended September 30, 2017March 31, 2022 as compared to the same period in 2016. The increase is primarily related to several properties across the segments having higher tax assessments during the three months ended September 30, 2017 as compared to the same period of 2016. Partially offsetting these increases was a decrease of $93 at Monument IV at Worldgate related to lower tax assessment during the three months ended September 30, 2017 as compared to the same period of 2016.2021. Our properties are reassessed periodically by the taxing authorities, which may result in increases or decreases in the real estates taxes that we owe. Overall, we expect real estate taxes to increase over time; however, we utilize real estate tax consultants to attempt to control assessment increases.


Property operating expenses consist of the costs of ownership and operation of the real estate investments, many of which are recoverable under net leases. Examples of property operating expenses include insurance, utilities and repair and maintenance expenses. Property operating expenses at comparable properties increased $165 for the three months ended September 30, 2017 as compared to the same period in 2016. The increase is primarily related to an increase of $91 at AQ Rittenhouse due to higher security and repairs and maintenance expenses. Additionally, there was an increase of $57 at The District at Howell Mill related to higher utilities and repair and maintenance expenses.
Provision for doubtful accounts relates to receivables deemed potentially uncollectable due to the age of the receivable or the status of the tenant. Provision for doubtful accounts at comparable properties decreased by $27 for the three months ended September 30, 2017 as compared to the same period in 2016. Our total provision for doubtful accounts continues to be a minimal percentage of total revenues when comparing the three months ended September 30, 2017 to the same period in 2016.
The following chart sets forth expenses not directly related to the operations of the reportable segments for the three months ended September 30, 2017 and 2016:
  Three Months Ended September 30, 2017 Three Months Ended September 30, 2016 
$
 Change
 
%
 Change
Property general and administrative $274
 $208
 $66
 31.7 %
Advisor fees 4,842
 4,030
 812
 20.1
Company level expenses 491
 454
 37
 8.1
Acquisition expenses —
 1,759
 (1,759) (100.0)
Provision for impairment of real estate —
 6,355
 (6,355) (100.0)
Depreciation and amortization 16,589
 12,072
 4,517
 37.4
Interest expense 7,730
 5,874
 1,856
 31.6
Income from unconsolidated affiliates and fund investments

 (6,236) (4,686) (1,550) 33.1
Other income (500) —
 (500) 100.0
Gain on disposition of property and extinguishment of debt (5,501) (1,664) (3,837) 230.6
Total expenses $17,689
 $24,402
 $(6,713) (27.5)%
Property general and administrative expenses relate mainly to property expenses unrelated to the operations of the property. Property general and administrative expenses increased $66 primarily due to legal fees incurred during the three months ended September 30, 2017.
Advisor fees relate to the fixed advisory and performance fees earned by the Advisor. Fixed fees increase or decrease based on changes in our NAV which will be primarily impacted by changes in capital raised and the value of our properties. The performance fee is accrued when the total return per share for a share class exceeds 7% for that calendar year, wherein our Advisor will receive 10% of the excess total return above the 7% threshold. The increase in advisor fees of $812 for the three months ended September 30, 2017 as compared to the same period of 2016 is related to the increase in our NAV attributable to capital raised over the past year.
Company level expenses relate mainly to our compliance and administration related costs. Company level expenses increased $37 for the three months ended September 30, 2017 as compared to the same period in 2016 primarily due to an increase in stockholder servicing costs and other professional service fees.
Acquisition expenses relate to expenses incurred during the acquisition of a property. On January 1, 2017, we adopted Accounting Standard Update 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. We expect that most future acquisitions will qualify as asset acquisitions. As such, future acquisition-related expenses will be capitalized. During the three months ended September 30, 2016, we incurred $1,759 of acquisition expenses related to acquisitions we were pursuing.
The provision for impairment of real estate relates to real estate investments whose estimated future undiscounted cash flows have decreased below the carrying value of the property. A provision for impairment of real estate is recorded to write the property down from its carrying value to its fair value. During the three months ended September 30, 2016, provision for impairment of real estate of $6,355 is due to impairment charges at Railway Street Corporate Centre as we shortened the expected holding period for the investment because we considered it a non-strategic investment. The impairment charges had no impact on our NAV as we had previously written the property down to its fair value for purposes of our NAV calculation.


Depreciation and amortization expense is impacted by the values assigned to buildings, personal property and in-place lease assets as part of the initial purchase price allocation. The increase of $4,517 in depreciation and amortization expense for the three months ended September 30, 2017 as compared to the same period in 2016 is primarily related to an increase of $4,793 on our acquisitions that occurred in 2016 and 2017.
Interest expense increased by $1,856 for the three months ended September 30, 2017 as compared to the same period in 2016 as a result of new debt on our 2016 and 2017 acquisitions and our Credit Facility usage.
Other income of $500 is related to receipt of a termination payment upon the expiration of a contract to sell The Edge at Lafayette during the three months ended September 30, 2017.
Income from unconsolidated affiliates and fund investments relates to the income from Chicago Parking Garage and Pioneer Tower as well as changes in fair value and operating distributions received from our investment in the NYC Retail Portfolio. During the three months ended September 30, 2017, we recorded a $5,834 increase in the fair value of our investment in the NYC Retail Portfolio as compared to a $3,638 increase in fair value during the same period of 2016.
Gain on disposition of property and extinguishment of debt of $5,501 is related to the dispositions of Railway Street Corporate Centre, 14600 Sherman Way and 14624 Sherman Way during the three months ended September 30, 2017. During the three months ended September 30, 2016, the gain on disposition of property and extinguishment of debt of $1,664 is related to the disposition of Campus Lodge Tampa.
Results of Operations for the Nine Months Ended September 30, 2017 and 2016
Revenues
The following chart sets forth revenues by reportable segment, for the nine months ended September 30, 2017 and 2016:
  Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 
$
 Change
 
%
Change
Revenues:        
Minimum rents        
Apartment $12,707
 $12,273
 $434
 3.5 %
Industrial 14,823
 14,591
 232
 1.6
Office 17,075
 17,674
 (599) (3.4)
Retail 17,411
��17,831
 (420) (2.4)
Other 206
 208
 (2) (1.0)
Comparable properties total $62,222
 $62,577
 $(355) (0.6)%
Recent acquisitions and sold properties 35,959
 13,275
 22,684
 170.9
Total $98,181
 $75,852
 $22,329
 29.4 %
         
Tenant recoveries and other rental income        
Apartment $935
 $753
 $182
 24.2 %
Industrial 4,448
 4,406
 42
 1.0
Office 1,907
 1,904
 3
 0.2
Retail 6,277
 6,619
 (342) (5.2)
Other 1,761
 1,771
 (10) (0.6)
Comparable properties total $15,328
 $15,453
 $(125) (0.8)%
Recent acquisitions and sold properties 8,907
 3,165
 5,742
 181.4
Total $24,235
 $18,618
 $5,617
 30.2 %
Total revenues $122,416
 $94,470
 $27,946
 29.6 %
Minimum rents at comparable properties decreased by $355 for the nine months ended September 30, 2017 as compared to the same period in 2016. The decrease is primarily due to decreases of $584 at 111 Sutter Street and $343 at The District at Howell Mill related to a decrease in occupancy during the nine months ended September 30, 2017 as compared to the same period in 2016. Partially offsetting these decreases were increases of $308 at O'Hare Distribution Center and $217 at AQ


Rittenhouse related to increased occupancy during the nine months ended September 30, 2017 as compared to the same period in 2016.
Tenant recoveries relate mainly to real estate taxes and certain property operating expenses that are paid by us and are recoverable under the various tenants’ leases. Other rental income includes daily transient parking, percentage rents and other non-recurring tenant charges. Tenant recoveries and other rental income at comparable properties decreased by $125 for the nine months ended September 30, 2017 as compared to the same period in 2016. The decrease is primarily related to a decrease of $178 at Rancho Temecula Town Center related to true-up billing of prior year expenses. Additionally, there was a decrease of $76 at Grand Lakes Marketplace due to lower real estate tax recoveries during the nine months ended September 30, 2017 as compared to the same period in 2016. Partially offsetting the decreases was an increase of $101 at Townlake of Coppell related to cable TV service fees and insurance proceeds from a small fire during the nine months ended September 30, 2017 as compared to the same period in 2016.
Operating Expenses
The following chart sets forth real estate taxes, property operating expenses and provisions for doubtful accounts by reportable segment, for the nine months ended September 30, 2017 and 2016:
  Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 
$
 Change
 
%
Change
Operating expenses:        
Real estate taxes        
Apartment $1,564
 $1,394
 $170
 12.2 %
Industrial 3,447
 3,233
 214
 6.6
Office 1,896
 1,840
 56
 3.0
Retail 3,566
 3,449
 117
 3.4
Other 327
 327
 —
 —
Comparable properties total $10,800
 $10,243
 $557
 5.4 %
Recent acquisitions and sold properties 7,563
 2,279
 5,284
 231.9
Total $18,363
 $12,522
 $5,841
 46.6 %
         
Property operating        
Apartment $3,780
 $3,642
 $138
 3.8 %
Industrial 1,252
 1,238
 14
 1.1
Office 3,658
 3,539
 119
 3.4
Retail 3,539
 3,436
 103
 3.0
Other 659
 685
 (26) (3.8)
Comparable properties total $12,888

$12,540
 $348
 2.8 %
Recent acquisitions and sold properties 8,195
 4,677
 3,518
 75.2
Total $21,083
 $17,217
 $3,866
 22.5 %
         
Provision for doubtful accounts      
Apartment $31
 $20
 $11
 55.0 %
Office —
 —
 —
 100.0
Retail 43
 154
 (111) (72.1)
Other —
 1
 (1) (100.0)
Comparable properties total $74
 $175
 $(101) (57.7)%
Recent acquisitions and sold properties 1
 16
 (15) (93.8)
Total $75
 $191
 $(116) (60.7)%
Total operating expenses $39,521
 $29,930
 $9,591
 32.0 %
Real estate taxes at comparable properties increased by $557 for the nine months ended September 30, 2017 as compared to the same period in 2016. The increase is primarily the result of several properties across the segments having higher tax assessments during the nine months ended September 30, 2017 as compared to the same period of 2016. Our


properties are reassessed periodically by the taxing authorities which may result in increases or decreases in real estates taxes that we owe. Overall, we expect real estate taxes to increase over time; however, we utilize real estate tax consultants to attempt to control assessment increases.
Property operating expenses consist of the costs of ownership and operation of the real estate investments, many of which are recoverable under net leases. Examples of property operating expenses include insurance, utilities and repair and maintenance expenses. Property operating expenses at comparable properties increased $348$716 for the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period of 2016.in 2021. The increase is primarily related to an increase of $140 at Monument IV at Worldgate and $74 at The District at Howell Mill related to higher utilities and repair and maintenance expenses. Additionally, there was an increase of $60 at Station Nine Apartments related to higher advertising and property management fee expense and $48 at AQ Rittenhouse due to higher security and repairs and maintenance expenses during the nineincreases in three months ended September 30, 2017.
Net provision for doubtful accounts relates to receivables deemed potentially uncollectible due to the age of the receivable or the status of the tenant. Provision for doubtful accounts decreased by $101 for the nine months ended September 30, 2017ending March 31, 2022 as compared to the same period of 2016, primarily related2021 generally relate to tenant bankruptcieshigher property management fees due to high rents, higher salary costs and higher utility costs in 2016 resulting in provisions of $51 at The District at Howell Mill, $23 at Maui Mall and $16 at Rancho Temecula Town Center. Partially offsetting these decreases were higher bad debts of $12 at The Edge at Lafayette related to early move outs that occurred during the nine months ended September 30, 2017 as compared to the same period of 2016.some markets.
35

The following chart sets forth revenues and expenses not directly related to the operations of the reportable segments for the ninethree months ended September 30, 2017March 31, 2022 and 2016:
2021:
  Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 
$
 Change
 
%
 Change
Property general and administrative $830
 $814
 $16
 2.0 %
Advisor fees 14,383
 10,487
 3,896
 37.2
Company level expenses 1,730
 1,657
 73
 4.4
Acquisition expenses —
 2,846
 (2,846) (100.0)
Provision for impairment of real estate —
 6,355
 (6,355) (100.0)
Depreciation and amortization 44,704
 31,052
 13,652
 44.0
Interest expense 21,375
 18,529
 2,846
 15.4
Income from unconsolidated affiliates and fund investments

 (8,144) (5,583) (2,561) 45.9
Other income (500) —
 (500) 100.0
Gain on disposition of property and extinguishment of debt (5,501) (1,704) (3,797) 222.8
Total expenses $68,877
 $64,453
 $4,424
 6.9 %
 Three Months Ended March 31, 2022Three Months Ended March 31, 2021$
 Change		%
 Change
Property general and administrative$697 $660 $37 5.6 %
Advisor fees17,858 6,325 11,533 182.3 
Company level expenses1,074 1,193 (119)(10.0)
Depreciation and amortization32,974 19,945 13,029 65.3 
Interest expense17,852 9,262 8,590 92.7 
(Gain) loss from unconsolidated affiliates and fund investments(29,025)339 (29,364)(8,662)
Investment income on marketable securities(304)— (304)100.0 
Net realized gain upon sale of marketable securities(79)— (79)100.0 
Net unrealized change in fair value of investment in marketable securities2,984 — 2,984 100.0 
Gain on disposition of property and extinguishment of debt, net(31,492)(33,422)1,930 (5.8)
Total revenues and expenses$12,539 $4,302 $8,237 191.5 %
Property general and administrative expenses relate mainly to property expenses unrelated to the operations of the property. Property general and administrative expenses remained consistent forincreased slightly during the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period in 2021 primarily due to the increase in the size of 2016.the number of properties.
Advisor fees relate to the fixed advisory and performance fees earned by the Advisor. Fixed fees increase or decrease based on changes in our NAV, which will beis primarily impacted by changes in capital raised and the value of our properties. The performance fee is accrued when the total return per share for a share class exceeds 7% for that calendar year, whereand in such years our Advisor will receive 10% of the excess total return above the 7% threshold. The increase in advisor fees of $3,896$11,533 for the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period of 2016in 2021 is primarily related an increase in NAV and to the increaseaccrual of a performance fee in our NAV attributable to capital raised over the past year.amount of $8,484.
Company level expenses relate mainly to our compliance and administration related costs. CompanyThe decrease of $119 in company level expenses increased $73 for the ninethree months ended September 30, 2017 as compared to the same period in 2016March 31, 2022 is primarily duerelated to an increasedecrease in stockholder servicing costs and other professional service fees.
Acquisition expenses relate to expenses incurred during the acquisition of a property. On January 1, 2017, we adopted Accounting Standard Update 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. We expect that most future acquisitions will qualify as asset acquisitions. As such, future acquisition-related expenses will be capitalized. During the nine months ended September 30, 2016, we incurred $2,846 of acquisition expenses related to acquisitions we were pursuing.


The provision for impairment of real estate relates to real estate investments whose estimated future undiscounted cash flows have decreased below the carrying value of the property. A provision for impairment of real estate is recorded to write the property down from its carrying value to its fair value. During the nine months ended September 30, 2016, provision for impairment of real estate of $6,355 is due to impairment charges at Railway Street Corporate Centre as we shortened the expected holding period for the investment because we considered it a non-strategic investment. The impairment charges had no impact on our NAV as we had previously written the property down to its fair value for purposes of our NAV calculation.
Depreciation and amortization expense is impacted by the values assigned to buildings, personal property and in-place lease assets as part of the initial purchase price allocation. The increase of $13,652$13,029 in depreciation and amortization expense for the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period in 2016 is2021 was primarily related to an increasethe acquisition of $13,553 on our acquisitions that occurred in 2016 and 2017.new properties.
Interest expense increased by $2,846$8,590 for the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period in 20162021 primarily as a result of a $4,523 of increased interest expense from new debtmortgage notes payable placed on our 2016several properties and 2017 acquisitions andincreased usage of our Credit Facility usage.in 2022 as well as $5,042 increased interest expense on the financial obligations related to the DST Program, which includes non-cash interest expense related to the properties deemed probable for repurchase. Offsetting the increase were unrealized gains on our interest rate swaps in the amount of $1,985 during the three months ended March 31, 2022 compared to unrealized gains of $939 during the same period of 2021.
IncomeLoss from unconsolidated affiliates and fund investments relates to the income from Chicago Parking Garage, and Pioneer Tower, The Tremont, The Huntington, Siena Suwanee Town Center and Kingston at McLean Crossing as well as changes in fair value and operating distributions received from our investment in the NYC Retail Portfolio and Single-Family Rental Portfolio. During the ninethree months ended September 30, 2017,March 31, 2022, we recorded a $5,132$25,355 increase in the fair value of and received $$2,019our investment in operating distribution fromSingle-Family Rental Portfolio. During the three months ended March 31, 2022, we recorded a $1,447 decrease in the fair value of our investment in the NYC Retail Portfolio as compared to a $4,238an $1,081 increase in the fair value during the same period of 2016.2021.
OtherInvestment income on marketable securities relate to dividends earned on our portfolio of $500 is related to receipt of a termination paymentpublicly traded REIT securities. We earned $304 on investment income during the three months ended March 31, 2022.
Net realized gain upon the expirationsale of marketable securities relate to sales of individual stocks within our portfolio of publicly traded REIT stocks. We recorded a contract to sell The Edge at Lafayetterealized gain of $79 during the ninethree months ended September 30, 2017.March 31, 2022.
36

Net unrealized change in fair value of investment in marketable securities relate to changes in fair value of our portfolio of publicly traded REIT securities. We recorded an unrealized loss of $2,984 during the three months ended March 31, 2022.
Gain on disposition of property and extinguishment of debt, of $5,501 is relatednet decreased by $1,930 during three months ending March 31, 2022 as compared to the dispositions of Railway Street Corporate Centre, 14600 Sherman Way and 14624 Sherman Way during the ninethree months ended September 30, 2017.March 31, 2021. During the ninethree months ending March 31, 2022 we disposed of Norfleet Distribution Center and The Edge at Lafayette. During the three months ended September 30, 2016, the gain on dispositionMarch 31, 2021 we disposed of property and extinguishment of debt of $1,704 is related to the dispositions of 36 Research Park Drive and Campus Lodge Tampa.South Seattle Disposition Center.
37

Funds From Operations
Consistent with real estate industry and investment community preferences, we consider funds from operations ("FFO") as a supplemental measure of the operating performance for a real estate investment trust and a complement to GAAP measures because it facilitates an understanding of the operating performance of our properties. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss) attributable to the Company (computed in accordance with GAAP), excluding gains or losses from cumulative effects of accounting changes, extraordinary items, impairment write-downs of depreciable real estate and sales of properties, plus real estate related depreciation and amortization and after adjustments for these items related to noncontrolling interests and unconsolidated affiliates.
FFO does not give effect to real estate depreciation and amortization because these amounts are computed to allocate the cost of a property over its useful life. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO and AFFO provide investors with an additional view of our operating performance. We also use Adjusted FFO ("AFFO") as a supplemental measure of operating performance. We define AFFO as FFO adjusted for straight-line rental income, amortization of above- and below-market leases, amortization of net discount on assumed debt, gains or losses on the extinguishment and modification of debt, performance fees based on the investment returns on shares of our common stock and acquisition expenses. Because values for well-maintained real estate assets have historically increased or decreased based upon prevailing market conditions, we believe that FFO and AFFO provide investors with an additional view of our operating performance.
In order to provide a better understanding of the relationship between FFO, AFFO and GAAP net income, the most directly comparable GAAP financial reporting measure, we have provided reconciliations of GAAP net income attributable to Jones Lang LaSalle Income Property Trust, Inc. to FFO, and FFO to AFFO. FFO and AFFO do not represent cash flow from operating activities in accordance with GAAP, should not be considered alternatives to GAAP net income and are not measures of liquidity or indicators of the Company'sour ability to make cash distributions. We believe that to more comprehensively understand our operating performance, FFO and AFFO should be considered along with the reported net income attributable to Jones Lang LaSalle Income Property Trust, Inc. and our cash flows in accordance with GAAP, as presented in our consolidated financial statements. Our presentations of FFO and AFFO are not necessarily comparable to the similarly titled measures of other REITs due to the fact that not all REITs use the same definitions.


The following table presents a reconciliation of the most comparable GAAP amount of net income (loss) attributable to Jones Lang LaSalle Income Property Trust, IncInc. to NAREIT FFO for the periods presented:
Reconciliation of GAAP net income to NAREIT FFOThree Months Ended March 31, 2022Three Months Ended March 31, 2021
Net income attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders (1)
$37,935 $30,105 
Real estate depreciation and amortization (1)
35,189 23,422 
Gain on disposition of property and unrealized gain on investment in unconsolidated real estate affiliate (1)
(53,588)(34,416)
NAREIT FFO attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders$19,536 $19,111 
Weighted average shares outstanding, basic and diluted212,104,884 174,765,072 
NAREIT FFO per share, basic and diluted$0.09 $0.11 
________
(1)    Excludes amounts attributable to noncontrolling interests and includes our ownership share of both consolidated properties and unconsolidated real estate affiliates.
38
Reconciliation of GAAP net income (loss) to NAREIT FFOThree Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
Net income (loss) attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders (1)$10,670
 $(1,772) $13,726
 $(457)
Real estate depreciation and amortization (1)18,105
 13,558
 49,436
 32,306
Gain on disposition of property and unrealized gain on investment in unconsolidated real estate affiliate (1)(11,335) (4,936) (10,632) (5,576)
Impairment of real estate held for sale—
 6,355
 —
 6,355
NAREIT FFO attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders$17,440
 $13,205
 $52,530
 $32,628
Weighted average shares outstanding, basic and diluted133,554,999
 113,935,929
 134,894,754
 99,933,097
NAREIT FFO per share, basic and diluted$0.13
 $0.12
 $0.39
 $0.33

(1)Excludes amounts attributable to noncontrolling interests and includes our ownership share of both consolidated properties and unconsolidated real estate affiliates.
We believe AFFO is useful to investors because it provides supplemental information regarding the performance of our portfolio over time.
The following table presents a reconciliation of NAREIT FFO to AFFO for the periods presented:
Reconciliation of NAREIT FFO to AFFOThree Months Ended March 31, 2022Three Months Ended March 31, 2021
NAREIT FFO attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders$19,536 $19,111 
Straight-line rental income (1)
(1,687)(595)
Amortization of above- and below-market leases (1)
(818)(762)
Amortization of net discount on assumed debt (1)
(333)(58)
Gain on derivative instruments and extinguishment or modification of debt (1)
(4,462)(776)
Adjustment for investments accounted for under the fair value option (2)
1,432 444 
Net unrealized change in fair value of investment in marketable securities (1)
2,886 — 
Performance fees (1)
8,207 — 
Acquisition expenses (1)
35 108 
Adjustment for DST Program properties (3)
477 (1,327)
AFFO attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders$25,273 $16,145 
Weighted average shares outstanding, basic and diluted212,104,884 174,765,072 
AFFO per share, basic and diluted$0.12 $0.09 
________
(1)    Excludes amounts attributable to noncontrolling interests and includes our ownership share of both consolidated properties and unconsolidated real estate affiliates.
(2)    Represents the normal and recurring AFFO reconciling adjustments for the NYC Retail Portfolio and Single-Family Rental Portfolio.
(3)    Adjustments to reflect the AFFO attributable to the Company for DST Program properties. Prior periods adjusted to conform to current period presentation.
39
 Reconciliation of NAREIT FFO to AFFOThree Months Ended September 30, 2017 Three Months Ended September 30, 2016 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016
NAREIT FFO attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders$17,440
 $13,205
 $52,530
 $32,628
Straight-line rental income (1)(840) (1,472) (2,745) (4,160)
Amortization of above- and below-market leases (1)(862) (718) (2,649) (1,800)
Amortization of net discount on assumed debt (1)(40) (44) (148) (204)
Loss on derivative instruments and extinguishment or modification of debt (1)(131) (519) (131) 1,123
Adjustment for investment accounted for under the fair value option (2)1,078
 (300) 1,277
 2,013
Acquisition expenses (1)—
 1,759
 —
 2,846
AFFO attributable to Jones Lang LaSalle Income Property Trust, Inc. Common Stockholders$16,645
 $11,911
 $48,134
 $32,446
Weighted average shares outstanding, basic and diluted133,554,999
 113,935,929
 134,894,754
 99,933,097
AFFO per share, basic and diluted$0.12
 $0.10
 $0.36
 $0.32
(1)Excludes amounts attributable to noncontrolling interests and includes our ownership share of both consolidated properties and unconsolidated real estate affiliates.
(2)Represents the normal and recurring AFFO reconciling adjustments for the NYC Retail Portfolio.




NAV as of September 30, 2017March 31, 2022
The following table provides a breakdown of the major components of our NAV as of September 30, 2017:March 31, 2022:
March 31, 2022
Component of NAVClass A SharesClass M SharesClass A-I SharesClass M-I SharesClass D SharesTotal
Real estate investments (1)
$2,425,928 $875,516 $217,131 $1,433,230 $140,196 $5,092,001 
Debt(965,835)(348,569)(86,446)(570,612)(55,816)(2,027,278)
Other assets and liabilities, net80,620 29,095 7,216 47,630 4,659 169,220 
Estimated enterprise value premiumNone assumedNone assumedNone assumedNone assumedNone assumedNone assumed
NAV$1,540,713 $556,042 $137,901 $910,248 $89,039 $3,233,943 
Number of outstanding shares104,576,961 37,681,185 9,335,732 61,681,208 6,041,611 
NAV per share$14.73 $14.76 $14.77 $14.76 $14.74 
  September 30, 2017
Component of NAV Class A Shares Class M Shares Class A-I Shares Class M-I Shares Class D Shares Total
Real estate investments (1)
 $1,272,064
 $690,454
 $204,068
 $135,726
 $138,251
 $2,440,563
Debt (499,620) (271,185) (80,150) (53,308) (54,300) (958,563)
Other assets and liabilities, net 26,137
 14,186
 4,193
 2,789
 2,841
 50,146
Estimated enterprise value premium None assumed
 None assumed
 None assumed
 
None
assumed

 None assumed
 None assumed
NAV $798,581
 $433,455
 $128,111
 $85,207
 $86,792
 $1,532,146
Number of outstanding shares 69,448,287
 37,588,719
 11,105,281
 7,383,732
 7,531,714
  
NAV per share $11.50
 $11.53

$11.54
 $11.54
 $11.52
  
________
(1)The value of our real estate investments was greater than the historical cost by 5.9% as of September 30, 2017.
(1)The value of our real estate investments was greater than the historical cost by 9.8% as of March 31, 2022.
The following table provides a breakdown of the major components of our NAV as of December 31, 2016:2021:
December 31, 2021
Component of NAVClass A SharesClass M SharesClass A-I SharesClass M-I SharesClass D SharesTotal
Real estate investments (1)
$2,307,210 $842,232 $216,341 $1,217,062 $173,358 $4,756,203 
Debt(988,699)(360,918)(92,708)(521,543)(74,289)(2,038,157)
Other assets and liabilities, net37,998 13,871 3,563 20,044 2,856 78,332 
Estimated enterprise value premiumNone assumedNone assumedNone assumedNone
assumed		None assumedNone assumed
NAV$1,356,509 $495,185 $127,196 $715,563 $101,925 $2,796,378 
Number of outstanding shares100,038,362 36,458,191 9,356,309 52,676,693 7,513,281 
NAV per share$13.56 $13.58 $13.59 $13.58 $13.57 
  December 31, 2016
Component of NAV Class A Shares Class M Shares Class A-I Shares Class M-I Shares Class D Shares Total
Real estate investments (1)
 $1,160,702
 $608,854
 $213,621
 $126,613
 $132,639
 $2,242,429
Debt (395,838) (207,639) (72,852) (43,179) (45,234) (764,742)
Other assets and liabilities, net 18,952
 9,815
 3,470
 2,057
 2,154
 36,448
Estimated enterprise value premium None assumed
 None assumed
 None assumed
 
None
assumed

 None assumed
 None assumed
NAV $783,816
 $411,030
 $144,239
 $85,491
 $89,559
 $1,514,135
Number of outstanding shares 69,837,581
 36,522,305
 12,812,637
 7,591,239
 7,963,493
  
NAV per share $11.22
 $11.25
 $11.26
 $11.26
 $11.25
  
________
(1)The value of our real estate investments was greater than the historical cost by 4.7% as of December 31, 2016.

(1)The value of our real estate investments was greater than the historical cost by 3.6% as of December 31, 2021.
The increase in NAV per share from December 31, 20162021 to September 30, 2017,March 31, 2022, was related to a net increase of 0.65%5.9% in the value of our portfolio. Property operations for the ninethree months ended September 30, 2017March 31, 2022 had an insignificant impact on NAV as dividends declared offset property operations for the period. Our NAV for the different share classes is reduced by normal and recurring class-specific fees and offering and organization costs.

40

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, 2017:March 31, 2022:
IndustrialOfficeResidentialRetail
Other (1)
Total
Company
Exit capitalization rate4.44 %5.30 %4.39 %5.49 %6.25 %4.71 %
Discount rate/internal rate of return (IRR)5.60 6.16 5.86 6.36 7.80 5.91 
Annual market rent growth rate3.44 2.86 3.30 2.76 3.07 3.20 
Holding period (years)10.00 10.00 10.00 10.00 21.68 10.08 
  Apartment Industrial Office Retail 
Other (1)
 
Total
Company
Exit capitalization rate 5.46% 5.86% 5.82% 5.65% 6.25% 5.70%
Discount rate/internal rate of return (IRR) 6.76
 6.48
 6.45
 6.42
 8.17
 6.55
Annual market rent growth rate 3.13
 3.00
 2.81
 3.12
 3.41
 3.04
Holding period (years) 10.00
 10.00
 10.00
 10.00
 22.49
 10.20
________
(1)Other includes Chicago and South Beach
(1)    Other includes two standalone parking garages. South Beach Parking Garage is subject to a ground lease and the appraisal incorporates discounted cash flows over its remaining lease term and therefore does not utilize an exit capitalization rate.


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 December 31, 2016:2021:
IndustrialOfficeResidentialRetail
Other (1)
Total
Company
Exit capitalization rate4.61 %5.54 %4.51 %5.49 %6.25 %4.85 %
Discount rate/internal rate of return (IRR)5.62 6.32 5.94 6.42 7.80 5.99 
Annual market rent growth rate3.30 2.77 3.31 2.74 3.07 3.14 
Holding period (years)10.00 10.00 10.00 10.00 21.83 10.09 
  Apartment Industrial Office Retail Other (1) 
Total
Company
Exit capitalization rate 5.95% 5.94% 6.00% 5.78% 6.75% 5.93%
Discount rate/internal rate of return (IRR) 7.35
 6.77
 6.70
 6.63
 8.17
 6.82
Annual market rent growth rate 3.04
 3.06
 2.89
 3.32
 3.41
 3.10
Holding period (years) 10.00
 10.00
 10.00
 10.00
 22.90
 10.23
________
(1)Other includes Chicago and South Beach parking garages. South Beach Parking Garage is subject to a ground lease and the appraisal incorporates discounted cash flows over its remaining lease term and therefore does not utilize an exit capitalization rate.
(1)    Other includes Chicago and South Beach parking garages. South Beach Parking Garage is subject to a ground lease, the appraisal incorporates discounted cash flows over its remaining lease term and therefore does not utilize an exit capitalization rate.
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 increasethe changes listed below would result in the weighted-average discount rate/internal rate of return ("IRR") used as of September 30, 2017 of 0.25% would yield a decrease infollowing effects on our total real estate investment value:
InputMarch 31, 2022December 31, 2021
Discount Rate - weighted average0.25% increase(1.8)%(1.7)%
Exit Capitalization Rate - weighted average0.25% increase(3.2)(2.8)
Annual market rent growth rate - weighted average0.25% decrease(1.4)(1.2)
The fair value of 1.7%our mortgage notes and ourother debt payable was estimated to be approximately $67,899 lower and $4,054 higher than the carrying values at March 31, 2022 and December 31, 2021, respectively. The NAV per share class would have been $11.19, $11.22, $11.22, $11.22increased by $0.31 and $11.21decreased by $0.02 per share at March 31, 2022 and December 31, 2021, respectively, if we were to have included the fair value of our mortgage notes and other debt payable in our methodology to determine NAV.
The selling commission and dealer manager fee are offering costs and are recorded as a reduction of capital in excess of par value. Selling commissions are paid on the date of sale of our common stock. We accrue all future dealer manager fees up to the ten percent regulatory limit on the date of sale of our common stock. For NAV calculation purposes, dealer manger fees are accrued daily, on a continuous basis equal to 1/365th of the stated fee. Dealer manager fees payable are included in accrued offering costs on our Consolidated Balance Sheets.  Dealer manager fees payable as of March 31, 2022 and December 31, 2021 were $152,529 and $135,663, respectively.
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The following table reconciles stockholders' equity per our Consolidated Balance Sheet to our NAV:
March 31, 2022
Stockholders' equity under GAAP$1,919,120 
Adjustments:
Accrued dealer manager fees (1)
151,016 
Organization and offering costs (2)
698 
Unrealized real estate appreciation (3)
816,793 
Accumulated depreciation, amortization and other (4)
346,316 
NAV$3,233,943 
________
(1)    Accrued dealer manager fees represents the accrual for future dealer manager fees for Class A, Class M and Class A-I Class M-Ishares. We accrue all future dealer manager fees up to the ten percent regulatory limit on the date of sale of our common stock as an offering cost.  For NAV calculation purposes, dealer manger fees are accrued daily, on a continuous basis equal to 1/365th of the stated fee.
(2)    The Advisor advanced organization and Class D, respectively. An increaseoffering costs on our behalf through March 31, 2022. Such costs are reimbursed to the Advisor ratably over 36 months. Under GAAP, organization costs are expensed as incurred and offering costs are charged to equity as such amounts are incurred. For NAV, such costs are recognized as a reduction to NAV ratably over 36 months.
(3)    Our investments in real estate are presented under historical cost in our GAAP Consolidated Financial Statements. As such, any increases in the weighted-average discount rate/IRR used asfair market value of December 31, 2016 of 0.25% would yield a decreaseour investments in real estate are not included in our totalGAAP results. For purposes of determining our NAV, our investments in real estate investmentare recorded at fair value.
(4)    We depreciate our investments in real estate and amortize certain other assets and liabilities in accordance with GAAP. Such depreciation and amortization is not recorded for purposes of determining our NAV. Additionally, we make other fair value of 1.2% andadjustments to our NAV per each share classto account for differences with historical cost GAAP; an example would have been $10.97, $11.00, $11.00, $11.00 and $10.99 for Class A, Class M, Class A-I, Class M-I and Class D, respectively.be straight-line rent revenue.
Limitations and Risks
As with any valuation methodology, our methodology is based upon a number of estimates and assumptions that may not be accurate or complete. Our valuation methodology may not result in the determination of the fair value of our net assets as our mortgage notes and other debt payable are valued at cost. Different parties with different assumptions and estimates could derive a different NAV per share. Accordingly, with respect to our NAV per share, we can provide no assurance that:
•a stockholder would be able to realize this NAV per share upon attempting to resell his or her shares;
•we would be able to achieve for our stockholders the NAV per share upon a listing of our shares of common stock on a national securities exchange, selling our real estate portfolio or merging with another company; or
•the NAV per share, or the methodologies relied upon to estimate the NAV per share, will be found by any regulatory authority to comply with any regulatory requirements.
Furthermore, the NAV per share was calculated as of a particular point in time. The NAV per share will fluctuate over time in response to, among other things, changes in real estate market fundamentals, capital markets activities and attributes specific to the properties and leases within our portfolio.

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Liquidity and Capital Resources
Our primary uses and sources of cash are as follows:
UsesSources
Short-term liquidity and capital needs such as:•Operating cash flow, including the receipt of distributions of our share of cash flow produced by our unconsolidated real estate affiliates and fund investment
•Interest payments on debt
•Distributions to stockholders•Proceeds from secured loans collateralized by individual properties
•Fees payable to our Advisor
•Minor improvements made to individual properties that are not recoverable through expense recoveries or common area maintenance charges to tenants•Proceeds from our Revolving Line of Credit Facility
•Sales of our shares
•General and administrative costs•Sales of real estate investments
•Costs associated with capital raising in our continuous public offering, private offering and DST Program•DrawsProceeds from lender escrow accountsour private offering
•Other Company level expenses•Draws from lender escrow accounts
•Lender escrow accounts for real estate taxes, insurance, and capital expenditures•Sales of beneficial interests in the DST Program
•Fees payable to our Dealer Manager
Longer-term liquidity and capital needs such as:
•Acquisitions of new real estate investments
•Expansion of existing properties
•Tenant improvements and leasing commissions
•Debt repayment requirements, including both principal and interest
•Repurchases of our shares pursuant to our share repurchase plan
•Fees payable to our Advisor
•Fees payable to our Dealer Manager
The sources and uses of cash for the ninethree months ended September 30, 2017March 31, 2022 and 20162021 were as follows:
Three Months Ended March 31, 2022Three Months Ended March 31, 2021$ Change
 Nine Months Ended September 30, 2017 Nine Months Ended September 30, 2016 $ Change
Net cash provided by operating activities $55,984
 $33,251
 $22,733
Net cash (used in) provided by operating activitiesNet cash (used in) provided by operating activities$(13,731)$17,172 $(30,903)
Net cash used in investing activities (129,430) (657,305) 527,875
Net cash used in investing activities(84,689)(166,868)82,179 
Net cash provided by financing activities 69,922
 640,059
 (570,137)Net cash provided by financing activities162,514 121,042 41,472 
CashNet cash (used in) provided by operating activities increased $22,733decreased by $30,900 for the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period in 2016. Cash2021. The decrease in cash from operating activities increased $24,443is primarily relateddue to acquisitionsthe payment of properties that occurredthe performance fee earned in 2016 and 2017 and distributions received from unconsolidated real estate affiliates and fund investments during 2017. Also impacting our cash provided by operating activities are changes in our working capital, which include tenant accounts receivable, prepaid expenses and other assets, advisor fee payable and accounts payable and other accrued expenses. These changes in our working capital caused a decrease to cash provided by operating activities of $1,710 between the nine months ended September 30, 2017 and the same period in 2016, which was primarily related to an increase in prepaid expenses as well as a decrease2021 in the amount of accrued expenses.$36,711 offset by increase in cash from new acquisitions as well as increased rent collections from several tenants primarily in our retail segment.
CashNet cash used in investing activities decreased by $527,875$82,179 for the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period in 2016.2021. The decrease was primarily related to a decrease in cash used to purchase new properties and cash used for investments in unconsolidated real estate affiliatesdecreased acquisitions made during the ninethree months ended September 30, 2016 compared to 2017.


Cash provided by financing activities decreased by $570,137 for the nine months ended September 30, 2017March 31, 2022 as compared to the same period in 2016. The decrease is primarily related to a decrease of $460,227 in net proceeds received from2021.
Net cash provided by financing activities decreased by $41,469 for the sale of common stock during 2017three months ended March 31, 2022 as compared to the same period in 2016. Additionally, there was a decrease2021. The change is primarily related to an increase of $65,796 in net proceeds from mortgage note payables and our line of credit of $106,499stock issuance during the ninethree months ended September 30, 2017March 31, 2022 as compared to the same period in 2016.2021. Offsetting the increase was $29,252 less of net proceeds from mortgage notes and other debt payment during the three months ended March 31, 2022 as compared to the same period in 2021.
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Financing
We have relied primarily on fixed-rate financing, locking in what were favorable spreads between real estate income yields and mortgage interest rates and have tried to maintain a balanced schedule of debt maturities. We also use interest rate derivatives to manage our exposure to interest rate movements on our variable rate debt. The following consolidated debt table provides information on the outstanding principal balances and the weighted average interest rates at September 30, 2017March 31, 2022 and December 31, 2016:
2021:
 Consolidated DebtConsolidated Debt
 September 30, 2017 December 31, 2016 March 31, 2022December 31, 2021
 
Principal
Balance
 Weighted Average Interest Rate 
Principal
Balance
 Weighted Average Interest Rate Principal
Balance		Weighted Average Interest RatePrincipal
Balance		Weighted Average Interest Rate
Fixed $749,076
 3.67% $613,233
 3.85%Fixed$1,322,079 3.33 %$1,268,220 3.37 %
Variable 147,680
 2.72
 87,930
 2.59
Variable496,400 1.91 551,400 1.71 
Total $896,756
 3.51% $701,163
 3.69%Total$1,818,479 2.94 %$1,819,620 2.86 %
Covenants
Contractual Cash Obligations and Commitments
From time to time,At March 31, 2022, we enter into contingent agreements for the acquisition and financing of properties. Such acquisitions and financings are subject to satisfactory completion of due diligence or meeting certain leasing or occupancy thresholds.
We are subject to fixed ground lease payments on South Beach Parking Garage of $100 per year until September 30, 2021 and these payments will increase every five years thereafter by the lesser of 12% or the cumulative CPI over the previous five year period. We are also subject to a variable ground lease payment calculated as 2.5% of revenue. The lease expires September 30, 2041 and has a ten-year renewal option.
The operating agreement for Townlake of Coppell allows the unrelated third party joint venture partner, owning a 10% interest, to put their interest to us at a market determined value for a period of 90 days beginningwere in 2018. compliance with all debt covenants.
Other Sources
On January 16, 2015,December 21, 2021, our First ExtendedCurrent Public Offering registration statement was declared effective with the SEC (Commission File No. 333-196886)333-256823) to register up to $2,700,000$3,000,000 in any combination of shares of our Class A, Class M, Class A-I and Class M-I common stock, consisting of up to $2,400,000$2,700,000 of shares offered in our primary offering and up to $300,000 in shares offered pursuant to our distribution reinvestment plan. We intend to offer shares of our common stock on a continuous basis for an indefinite period of time by filing a new registration statement before the end of each three-year offering period, subject to regulatory approval. We intend to use the net proceeds from the First ExtendedCurrent Public Offering, which are not used to pay the fees and other expenses attributable to our operations, to (1) grow and further diversify our portfolio by making investments in accordance with our investment strategy and policies, (2) reduce borrowings and repay indebtedness incurred under various financing instruments and (3) fund repurchases under our share repurchase plan.
On March 3, 2015, we commenced a private offeringthe Private Offering of up to $350,000 in shares of our Class D common stock with an indefinite duration. Proceeds from our private offeringPrivate Offering will be used for the same corporate purposes as the proceeds of our First Extended Public Offering.public offerings. We will reserve the right to terminate the Follow-on Private Offering at any time and to extend the Follow-on Private Offering term to the extent permissible under applicable law.
On October 16, 2019, we through our operating partnership, initiated the DST Program to raise up to $500,000, which our board of directors increased to $1,000,000 on August 10, 2021, in private placements exempt from registration under the Securities Act, as amended, through the sale of beneficial interests to accredited investors in specific DSTs holding real properties, which may be sourced from our real properties or from third parties.
Contractual Cash Obligations and Commitments
From time to time, we enter into contingent agreements for the acquisition and financing of properties. Such acquisitions and financings are subject to satisfactory completion of due diligence or meeting certain leasing or occupancy thresholds.
We are subject to fixed ground lease payments on South Beach Parking Garage of $112 per year until September 30, 2024 and these payments will increase every five years thereafter by the lesser of 12% or the cumulative CPI over the previous five year period. We are also subject to a variable ground lease payment calculated as 2.5% of revenue. The lease expires September 30, 2041 and has a ten-year renewal option.
The operating agreement for Grand Lakes Marketplace allows the unrelated third party joint venture partner, owning a 10% interest, to put its interest to us at a market determined value.
The operating agreement for 237 Via Vera Cruz, 13500 Danielson Street, 4211 Starboard, 2840, Loaker Avenue and 15890 Bernardo Center Drive allows the unrelated third party joint venture partner, owning a 5% interest, to put its interest to us at a market determined value starting July 31, 2024.
The operating agreement for Presley Uptown allows the unrelated third party joint venture partner, owning a 2.5% interest, to put its interest to us at a market determined value starting September 30, 2022 until September 30, 2024.
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Off Balance Sheet Arrangements
We have no off balance sheet arrangements.

None.

Distributions to Stockholders
To remain qualified as a REIT for federal income tax purposes, we must distribute or pay tax on 100% of our capital gains and distribute at least 90% of ordinary taxable income to stockholders.
The following factors, among others, will affect operating cash flow and, accordingly, influence the decisions of our board of directors regarding distributions:
•scheduled increases in base rents of existing leases;
•changes in minimum base rents and/or overage rents attributable to replacement of existing leases with new or renewal leases;
•changes in occupancy rates at existing properties and procurement of leases for newly acquired or developed properties;
•necessary capital improvement expenditures or debt repayments at existing properties;
•ability of our tenants to pay rent as a result of the impact of COVID-19 on their financial condition; and
•our share of distributions of operating cash flow generated by the unconsolidated real estate affiliates, less management costs and debt service on additional loans that have been or will be incurred.
We anticipate that operating cash flow, cash on hand, proceeds from dispositions of real estate investments or refinancings will provide adequate liquidity to conduct our operations, fund general and administrative expenses, fund operating costs and interest payments and allow distributions to our stockholders in accordance with the REIT qualification requirements of the Internal Revenue Code of 1986, as amended.
Recently Issued Accounting Pronouncements
InMay 2014, the FASB issued Accounting Standard Update 2014-09 Revenue from Contracts with Customers, which will use a five step model to recognize revenue from customer contracts in an effort to increase consistency and comparability throughout global capital markets and across industries.  The model will identify the contract, identify any separate performance obligations in the contract, determine and allocate the transaction price, and recognize revenue when the performance obligation is satisfied.  The new standard will replace most existing revenue recognition in GAAP when it becomes effective for us on January 1, 2018.  We are in the process of evaluating whether the guidance will impact the accounting for tenant reimbursements, but we currently do not believe this update will have a material impact on our consolidated financial statements and notes to our consolidated financial statements.  Additionally, we are evaluating the impact on the timing of gain recognition for dispositions but currently do not believe there will be a material impact to our consolidated financial statements for dispositions given the simplicity of our historical disposition transactions. We expect to adopt the standard using the cumulative effect method.
In January 2016, the FASB issued Accounting Standard Update 2016-01 Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. The new standard requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. The standard will become effective for reporting periods beginning after December 15, 2017, with early adoption permitted. We are in the process of evaluating the impact of this new guidance.
In February 2016, the FASB issued Accounting Standard Update 2016-02 Leases (ASC 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification.  Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The update is expected to impact our consolidated financial statements as we have a ground lease arrangement for which we are the lessee. ASC 842 supersedes the previous leases standard, ASC 840 Leases. The standard is effective on January 1, 2019, with early adoption permitted. We currently believe the adoption of the standard will not have a material impact on leases for which we are the lessor. We are the lessee on one ground lease that will require us to record a right-of-use asset and a lease liability.  We have preliminarily


concluded that the adoption of the standard will not have a material impact on the consolidated financial statements for leases for which we are the lessee.
In August 2016, the FASB issued Accounting Standard Update 2016-15 Statement of Cash Flows (Topic 230). The new guidance is intended to reduce the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The core principle of the standard requires the classification of eight specific issues identified under ASC 230 to be presented as either financing, investing or operating, or some combination thereof, depending upon the nature of the issue. The standard will be effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. Entities are required to use a retrospective transition approach for all of the issues identified to each period presented. We do not expect this standard to materially effect our consolidated financial statements and related disclosures.
In November 2016, the FASB issued Accounting Standard Update 2016-18 Statement of Cash Flows (Topic 230) – Restricted Cash. The new guidance requires that restricted cash be included as a component of total cash and cash equivalents as presented on the statement of cash flows. The standard is effective for annual periods, and interim periods therein, beginning after December 15, 2017. Early application is permitted in any interim or annual period. We do not expect the application of this standard to materially effect our consolidated financial statements and related disclosures.

Item 3.Quantitative and Qualitative Disclosures About Market Risk.
We are subject to market risk associated with changes in interest rates in terms of our variable-rate debt and the price of new fixed-rate debt for refinancing of existing debt. We manage our interest rate risk exposure by obtaining fixed-rate loans where possible as well as by entering into interest rate cap and swap agreements. As of September 30, 2017,March 31, 2022, we had consolidated debt of $896,756, which included $147,680 of variable-rate debt.$1,818,479. Including the $7,159$1,523 net debt discount on assumed debt and debt issuance costs, we have consolidated debt of $889,597$1,816,956 at September 30, 2017.March 31, 2022. We also entered into interest rate cap and swap agreements on $189,080$190,000 of debt, which cap the LIBOR rate at between 1.0%1.4% and 3.3%2.6%. A 0.25% movement in the interest rate on the $147,680$496,400 of variable-rate debt would have resulted in a $369$1,241 annualized increase or decrease in consolidated interest expense and cash flow from operating activities.
We are subject to interest rate risk with respect to our fixed-rate financing in that changes in interest rates will impact the fair value of our fixed-rate financing. To determine fair market value, the fixed-rate debt is discounted at a rate based on an estimate of current lending rates, assuming the debt is outstanding through maturity and considering the collateral. At September 30, 2017,March 31, 2022, the fair value of our mortgage notes payableconsolidated debt was estimated to be $4,304 higher$67,899 lower than the carrying value of $896,756.$1,818,479 If treasury rates were 0.25% higher at September 30, 2017,as of March 31, 2022, the fair value of our mortgage notes payableconsolidated debt would have been $7,591$72,029 lower than the carrying value.
In August 2007, we purchased Railway Street Corporate Centre located in Calgary, Canada (relinquished ownership of this property on July 28, 2017). For this investment, we used the Canadian dollar as the functional currency. When preparing consolidated financial statements, assets and liabilities of foreign entities are translated at the exchange rates at the balance sheet date, while income and expense items are translated at weighted average rates for the period. Foreign currency translation adjustments are recorded in accumulated other comprehensive income on the Consolidated Balance Sheet and foreign currency translation adjustment on the Consolidated Statement of Operations and Comprehensive Income (Loss).
As a result of our Canadian investment, we were subject to market risk associated with changes in foreign currency exchange rates. These risks include the translation of local currency balances of our Canadian investment and transactions denominated in Canadian dollars. Our objective was to control our exposure to these risks through our normal operating activities. For the nine months ended September 30, 2017 and 2016, we recognized a foreign currency translation loss of $20 and gain of $484, respectively. Upon the relinquishment of our ownership of Railway Street Corporate Centre we recognized $1,895,000 of Accumulated Other Comprehensive Loss as part of the loss on disposition of property and extinguishment of debt on our Consolidated Statement of Operations and Comprehensive Income (Loss).



Item 4.Controls and Procedures.
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on management’s evaluation as of September 30, 2017,March 31, 2022, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by us in our reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and such information is accumulated and
45

communicated to management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There were nohave not been any changes toin our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities and Exchange Act of 1934, as amended) during the quarter ended September 30, 2017March 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal control over financial reporting to date as a result of most of the employees of our Advisor and its affiliates working remotely due to the COVID-19 pandemic.

PART II
OTHER INFORMATION

Item 1.Legal Proceedings.
We are involved in various claims and litigation matters arising in the ordinary course of business, some of which involve claims for damages. Many of these matters are covered by insurance, although they may nevertheless be subject to deductibles or retentions. Although the ultimate liability for these matters cannot be determined, based upon information currently available, we believe the ultimate resolution of such claims and litigation will not have a material adverse effect on our financial position, results of operations or liquidity.
Item 1A.Risk Factors.

The most significant risk factors applicable to the Company are described in Item 1A to our 2016 Form 10-K. There have been no material changes to those previously-disclosedthe risk factors.factors previously disclosed under "Item 1A. Risk Factors" 2021 Form 10-K.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.
ISSUER PURCHASES OF EQUITY SECURITIES
Share Repurchase PlanIssuer Purchases of Equity Securities
Our share repurchase plan limits repurchases during any calendar quarter to shares with an aggregate value (based on the repurchase price per share on the day the repurchase is effected) of 5% of the combined NAV of all classes of shares as of the last day of the previous calendar quarter, which means that in any 12-month period, we limit repurchases to approximately 20% of our total NAV. If the quarterly volume limitation is reached on or before the third business day of a calendar quarter, repurchase requests during the next quarter will be satisfied on a stockholder by stockholder basis, which we refer to as a “per stockholder allocation,” instead of a first-come, first-served basis. Pursuant to the per stockholder allocation, each of our stockholders would be allowed to request repurchase at any time during such quarter of a total number of shares not to exceed 5% of the shares of common stock the stockholder held as of the end of the prior quarter. The per stockholder allocation requirement will remain in effect for each succeeding quarter for which the total repurchases for the immediately preceding quarter exceeded four percent of our NAV on the last business day of such preceding quarter. If total repurchases during a quarter for which the per stockholder allocation applies are equal to or less than four percent of our NAV on the last business day of such preceding quarter, then repurchases will again be first-come, first-served for the next succeeding quarter and each quarter thereafter.


During the three months ended September 30, 2017,March 31, 2022, we repurchased 3,786,7033,012,118 shares of common stock under the share repurchase plan.
Period  Total Number of Shares Purchased Average Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Plans or ProgramsMaximum Number of Shares that May Yet Be Purchased Pursuant to the Program (1)
January 1 - January 31, 20221,931,656 $13.52 1,931,656 — 
February 1 - February 28, 2022531,858 13.73 531,858 — 
March 1 - March 31, 2022548,604 14.29 548,604 — 
Total3,012,118 $13.70 3,012,118 — 
________
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Period  Total Number of Shares Redeemed Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Pursuant to the Program (1)
July 1 - July 31, 2017 2,282,871 $11.45 2,282,871 —
August 1 - August 31, 2017 683,495 11.51 683,495 —
September 1 - September 30, 2017 820,337 11.58 820,337 —

(1)     RedemptionsRepurchases are limited as described above. 
UNREGISTERED SALES OF EQUITY SECURITIESUnregistered Sales of Equity Securities
On March 3, 2015, we commenced the Follow-on Private Offering of up to $350,000 in shares of our Class D common stock with an indefinite duration. No Class D shares were issued during the three months ended September 30, 2017.March 31, 2022.
Item 3.Defaults Upon Senior Securities.
Not applicable.
Item 4.Mine Safety Disclosures.
Not applicable.
Item 5.Other Information.
None.
47

Item 6.Exhibits.
Exhibit No.Description
Exhibit No.Description
31.1*
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*
Certification of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*
Certification of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS
101.INS*XBRL Instance Document
101.SCH101.SCH*XBRL Schema Document
101.CAL101.CAL*XBRL Calculation Linkbase Document
101.DEF101.DEF*Definition Linkbase Document
101.LAB101.LAB*XBRL Labels Linkbase Document
101.PRE101.PRE*XBRL Presentation Linkbase Document
104*Cover Page Intereactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101)


__________

*    Filed herewith.
48

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant, Jones Lang LaSalle Income Property Trust, Inc., has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
JONES LANG LASALLE INCOME PROPERTY TRUST, INC.
Date:May 16, 2022By:/s/ C. Allan Swaringen
C. Allan Swaringen
President, Chief Executive Officer
JONES LANG LASALLE INCOME PROPERTY TRUST, INC.
Date:November 13, 2017By:/s/ C. Allan Swaringen
C. Allan Swaringen
President, Chief Executive Officer
Date:May 16, 2022By:JONES LANG LASALLE INCOME PROPERTY TRUST, INC.
Date:November 13, 2017By:/s/ Gregory A. Falk
Gregory A. Falk
Chief Financial Officer and Treasurer



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