A Model Built to Provide Investment Strength, Consistent Returns and Investor Confidence
Royal Oak Realty Trust invests in “mission critical” industrial and office real estate properties – properties that are "mission critical" to the tenants business operations. This investment strategy increases the probability of lease extensions and renewals, minimizing the risk of tenant relocation. Acquired properties are “stabilized” in that they are fully occupied on the date of Royal Oak's acquisition, by credit-worthy tenants under long-term lease contracts with a minimum term of eight years.
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. The net lease concept ensures that cost fluctuations do not impact the cash flow to Royal Oak.
Our portfolio is comprised of properties with geographic, credit and industry diversification. Royal Oak uses a proprietary risk rating model that derives scoring for each existing and prospective investment. Our risk rating model evaluates the tenant profile, the underlying real estate market, and the characteristics of the real estate to be acquired. This model allows our team to compare and contrast the merits of each investment in the aggregate and within each of these three critical categories.
Critical to our success is the oversight and experience provided by a strong and fully engaged Board of Directors, including our Independent Directors Committee. Additional independent counsel and guidance is provided by the members of our Asset Acquisition Committee and Investor Relations Committee. Each plays a key role in the continued success of Royal Oak.
Our shareholders own a piece of a private, stable, diversified, net-leased portfolio. The stable cash flow stream derived from this portfolio of properties – through the net-lease strategy and “mission critical” nature of these facilities – helps ensure the generation of predictable, strong and consistent investment returns for our shareholders. This has resulted in our ability to meet, since inception, our annual dividend targets. Dividends, as declared, are paid monthly to our shareholders.