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Portfolio. Predictability. Performance.
In times of economic uncertainty, investors strive to reduce the anxiety associated with the volatility of the public markets. Even when the markets are good, depending on an investor’s life stage, a consistent return on capital becomes a critical investment strategy.
With an investment in Royal Oak Realty Trust, shareholders own a piece of a private, strategically diversified real estate portfolio, not directly tied to the public markets. Based upon a strong and ever growing portfolio of “mission critical” properties – fully occupied by credit-worthy tenants under long-term lease contracts – our goal at Royal Oak is to generate a clear and predictable cash flow stream, even during challenging economic times, in order to provide our shareholders with consistent performance and tax-advantaged income, paid out or reinvested on a monthly basis.
Strength in Numbers
(As of September 30, 2020)
84.3% Total Return with Reinvested Dividends Since Inception (March 2014)
8.1% Total Annual Return with Reinvested Dividends to Date
9.7% Cumulative Annual Growth Rate Since Inception
6.6% Annual Dividend Target
16% Growth in Share Price Since Inception
68% of Dividend Income Tax Sheltered (deferred) in 2019
6.6% Annual Dividend Target
Royal Oak’s current annual dividend target of 6.6% ($3.83/share) is presently fully covered by Funds From Operations ("FFO"). FFO is a non-GAAP supplemental measure of operating performance, as defined by the National Association of Real Estate Investment Trusts. The dividend is paid monthly and can be taken as cash or reinvested by purchasing additional shares at a 2% discount. Dividends are not guaranteed and are paid when declared by the Board of Directors, subject to certain corporate limitations.
Consistent Tax-Sheltered Income
Royal Oak’s REIT structure permits a dividend which is tax-advantaged for many stockholders. REIT dividends are not qualified dividends; a portion of REIT dividends may be ordinary income and a portion may constitute a non-taxable return of capital for federal income tax purposes. At least two-thirds of Royal Oak’s dividend has been a return of capital in each of the last five tax years (2015-2019), reported via IRS Form 1099-DIV. A portion of the REIT dividends that are not treated as a return of capital may be taxed at a reduced effective tax rate for stockholders entitled to a deduction created by the Tax Cuts and Jobs Act of 2017.
Strong Historical Returns
In addition to consistent income in the form of a monthly dividend, Royal Oak’s share price has increased 16%, growing from $50.00 to $58.00 for shares purchased at inception (March 2014). Assuming reinvested dividends, as of September 30, 2020, initial investors have experienced a total return of 84.3% on their original investment since March 2014, with a compound annual growth rate of 9.7%.
Compelling Investment Opportunity
The opportunity to invest in Royal Oak’s common stock is available to accredited investors on a monthly basis in jurisdictions where the offer and sale are lawful. The minimum initial investment is $150,000. For those investors introduced via financial advisors, the minimum initial investment is $75,000.
Experienced Management & Governance
Royal Oak’s experienced management team has broad capabilities in real estate, finance, property management and capital raising. Governance is provided by a six-member Board of Directors, four of whom are Independent Directors elected by stockholders. The majority of Royal Oak’s Directors have public company Board experience with three members currently serving as Directors for publicly traded REITs.
We would welcome the opportunity to discuss Royal Oak Realty Trust investment opportunities. Please feel free to contact any member of our investor relations team or complete the contact form below.