JLL IPT’s Allan Swaringen on NAV REITs’ Growing Role Supporting Portfolio Diversification

Allan Swaringen, CEO of JLL Income Property Trust, joined the REIT Report to discuss the growing role that NAV REITs play, alongside listed REITs, in enabling leading wealth management firms to diversify portfolios beyond traditional equities and fixed income.

JLL IPT is an institutionally managed, daily NAV REIT advised by LaSalle and sponsored by JLL with approximately $7 billion in portfolio equity and debt investments. Swaringen is chair of Nareit’s Public Non-Listed REIT Council.

Greater investment allocations in alternative investments is a trend that's been growing for 10 years, Swaringen said, “and we think it still has a lot of legs to run. Wealth management firms want to move their clients beyond the traditional 60-40 stock and bond allocation model.” 

Swaringen added, “we're truly helping private client and high net worth investors expand beyond the traditional traded market. We think it's good that they have both a public listed REIT exposure, but also have a private market exposure like we provide with the NAV REIT.”

Swaringen also highlighted JLL IPT’s increased focus on industrial/warehouse properties, which now comprise about 38% of the portfolio. A key demand driver for traditional warehouses is the new construction and development of data centers, which is creating demand for storing the range of components that go into those properties, he said. “We're seeing a very interesting kind of symbiotic relationship between growing AI demand and growing warehouse demand.”

Chapters:

00:00 Alternatives Trend Teaser
00:32 Welcome and Guest Intro
01:10 Strategy and Portfolio Shift
02:44 CRE Fundamentals Snapshot
03:48 Industrial Demand Drivers
05:55 What We Buy and Why
08:18 Office Outlook
09:17 Retail Healthcare Views
10:47 Geography and Site Selection
11:49 NAV REIT Sector Explained
13:36 Closing Wealth Trends
14:54 Thanks and Subscribe