Resource Real Estate Opportunity REIT Ups Distributions 50%

Resource Real Estate Opportunity REIT (Opportunity REIT) has increased its annual distribution rate by a whopping 2%. Previously 4%, the rate is now 6%.

The non-traded REIT, sponsored by Resource Real Estate, focuses on acquiring discounted U.S. commercial real estate and real estate-related assets plus has a special interest in multifamily assets.

The distribution increase is due in part to Resource Real Estate’s value-add process, in which the company has conducted renovations on its apartment communities and improved amenities and management, causing an increase in rent and occupation.

Opportunity REIT’s cash-on-cash return for stabilized assets to date is 8.1% while its disposed assets have resulted in an average return of 11.3%.

“The Opportunity REIT continues to meet our expectations and a growing distribution to our investors is a direct result of the successful performance of its assets.” commented Kevin Finkel, President and COO of Opportunity REIT. “Our unique investment process has increased property cash flows and continues to add value to the REIT’s assets,” he added.

Formed in 2009, Opportunity REIT closed its initial public offering in December 2013 after raising gross offering proceeds of $645.8 million.