Royal Oak Realty Trust Announces Determined Share Value Increase

Jun 13, 2024
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The Royal Oak Board of Directors formally met June 12, 2024. We are pleased to report on the following actions:

  • Following the Independent Directors Committee’s (“IDC”) review of the information detailed below, the IDC increased Royal Oak’s Determined Share Value (“DSV”) from $64.50 to $65.00 per share (0.78% increase). The DSV increase is effective as of June 13, 2024. Since inception, Royal Oak’s DSV has increased 30% from $50.00 to $65.00.
  • The Board of Directors increased the targeted annual dividend $0.06 per share, to be paid monthly for Q3 2024 (July, August, September) at an annualized amount of $4.00/share ($0.333/share on a monthly basis). The annualized dividend target of $4.00/share provides an annualized yield of 6.15% on the $65.00 DSV and an 8.00% annualized yield on our original $50.00 DSV. Royal Oak declares dividends (dividends to stockholders and distributions to unitholders) in advance of the period to which they are applicable.

During the Board meeting, the IDC reviewed and considered relevant information and data, as well as various reports by Management relating to the evaluation of the DSV. The IDC also received a valuation report prepared by an independent, third-party consultant, and a broker opinion of value from an independent, national real estate brokerage firm. The full Board reviewed all information with the independent consultants, legal counsel and Management.

There were a number of factors influencing the actions of the IDC and the Board, including the success to date of last year’s Unit Offering. Royal Oak has now deployed most of the Unit Offering proceeds into high quality assets in strong markets. The thesis behind the Unit Offering was to have capital on hand to deploy as the market for industrial asset sales strengthened and to acquire assets at higher cap rates than these assets have typically traded. Further, we believe the assets acquired have the potential to appreciate over the coming years should cap rates begin to follow interest rates lower.