Royal Oak Model

The Royal Oak Model is comprised of six core elements that drive our Business Strategy.


  1. Private REIT – Royal Oak is a private, non-traded, Real Estate Investment Trust that invests in industrial and office commercial real estate properties.
  2. Stabilized Properties – Real estate properties acquired are “stabilized” in that they are fully occupied by creditworthy tenants under long-term lease contracts that have a minimum term of eight years. The long-term nature of the leases provide consistent rental income that, when paired with long-term fixed rate mortgage debt payments, yield the cash flows Royal Oak requires to achieve its financial objectives.
  3. Net Leased – Tenants are responsible for the costs of operating and maintaining their facilities, leaving rents “net” to the REIT. Clear and predictable cash flows are more likely when operating costs are paid by the tenant. These operating costs typically include property taxes, utilities, insurance, maintenance and repairs. The net lease concept ensures that cost fluctuations do not impact the cash flow of the Company.
  4. Diversified Portfolio – A steadily growing portfolio comprised of multiple properties provides geographic, credit and industry diversification. A well balanced investment portfolio requires asset diversification to reduce the risk of impairment. Medical offices, corporate headquarters, manufacturing and certain distribution facilities are often “mission critical” to the tenant’s business operations, increasing the probability of lease extensions and renewals thereby minimizing the risk of tenant relocations.
  5. Independently governed – Third party governance is provided by a Board of Directors, including an Independent Directors Committee.
  6. Financial Target – Stable, diversified, net-leased properties permit consistent returns to shareholders.



© Royal oak realty trust 2015