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RREEF Property Trust Reaches Third Quarter Redemption Limit

RREEF Property Trust Reaches Third Quarter Redemption Limit. Alternative investments, expansion, investment, NAV, net asset value, real estate, real estate investment trust
RREEF Property Trust Reaches Third Quarter Redemption Limit. Alternative investments, expansion, investment, NAV, net asset value, real estate, real estate investment trust

RREEF Property Trust Inc., a publicly registered daily net asset value real estate investment trust advised by DWS Group, announced that they received share redemption requests during the quarter ending Dec. 31, 2023, in excess of the limit of 5% of the company’s combined net asset value as of Sept. 30, 2023.

As The DI Wire previously reported, on Apr. 27, 2023, RREEF received an excess of the 5% limit of share redemption requests during the first quarter of 2023 and fourth quarter of 2022 as well.

RREEF says that all redemption requests received during the quarter prior to Oct. 9, 2023, were satisfied 100% on a first-come, first-served basis. Redemption requests received on October 9, 2023, were satisfied on a pro rata basis at 62.2% of the requested amount without regard to share class such that aggregate redemptions during the quarter ending Dec. 31, 2023, did not exceed the limit of 5% of the company’s combined NAV as of Sept. 30, 2023.

As a result of reaching the quarterly redemption volume limitation under the share redemption plan, the company will no longer accept additional redemption requests until Jan. 1, 2024.

The company says that all unsatisfied redemption requests received during the quarter ending Dec. 31, 2023, must be resubmitted on or after Jan. 1, 2024, to be accepted.

On Dec. 9, 2022, RREEF modified their redemption policy. Previously, the company limited redemptions to 5% of its combined NAV every quarter, but the company allowed unmet redemptions to roll into the next quarter, allowing redemptions to equal as much as 10% of NAV in a given quarter. However, their board of directors altered the share redemption plan to limit redemptions during the fourth quarter of 2022 to 5% of the company’s combined NAV as of Sept. 30, 2022.

As of June 30, 2023, RREEF Property Trust’s real estate portfolio included 14 properties valued at $599.7 million, while its real estate securities portfolio was valued at $26.9 million and a CMBS real estate loan investment held a net fair value of $31.2 million. The company has raised approximately $383 million via a series of public and private offerings since January 2013. On Aug. 10, 2023, the company commenced its fourth public offering of up to $2 billion of common stock.

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