Dear fellow Shareholders,

We hope you had a joyous holiday season and wish you and your families a happy and healthy 2023. On behalf of Royal Oak, we thank you for your support as an investor. As we begin a new year, we feel it is appropriate to reflect on the accomplishments of 2022 and preview 2023. Please note, 2022 dividend taxability and sheltering will be finalized and announced soon. We expect very favorable results.

2022 was a strong year as Royal Oak:

• Provided a Total Annual Return of approximately 9% (assuming reinvested dividends)
• Completed 12 acquisitions totaling $127 million
• Raised $83 million in equity while successfully utilizing a Deferred Subscription Program
• Proactively managed our interest rate risk with 65% fixed-rate debt at year-end
• Collected 100% of scheduled rents and maintained 100% portfolio occupancy

Our Management and Board of Directors recently finalized our 2023 Strategic Planning initiatives, and believe we are prepared to face the challenges created by the current economic climate. Royal Oak has significantly diversified our portfolio and reduced rent concentrations from individual tenants through the acquisition of $340+ million of new real estate investments since the beginning of 2021. Royal Oak expects to grow our portfolio in 2023 and beyond. However, the trajectory of our growth may be less pronounced as we exercise patience as market conditions rebalance.

We believe Royal Oak remains a compelling investment opportunity as we enter our 10th year as a private, non-traded REIT. Our strategy, management style, and composition of our shareholder base are unique to Royal Oak. We differentiate from other private real estate strategies based on the following characteristics:

• Investment thesis is consistent and disciplined: 80%+ industrial, creditworthy tenants operating in strong markets
• Tax sheltering and Tax Equivalent Yield are a major focus of strategic tax planning
• Conservative and prudent management: implemented equity wait list
• Reporting is frequent and transparent: robust communication is critical to our success
• Long-Term investors support our growth: more than 60% of 2022 equity came from existing investors
• Very modest shareholder redemptions: approximately 2% of equity invested to date has been redeemed

Royal Oak will continue to work diligently on behalf of our shareholders to acquire accretive real estate investments in growing markets, secure the necessary debt and equity capital to support our acquisition pipeline, proactively manage our growing and diversified portfolio, and generate consistent tax-sheltered returns.

Thank you for your confidence and trust in our Management team and Board of Directors. We look forward to a strong 2023.

Warmest regards,

Daniel J. Goldstein
Chairman & CEO

Mark T. Allen
President & Chief Development Officer