The $2.3 billion follow-on offering for RREEF Property Trust Inc. (NASDAQ: ZRPTAX; ZRPTIX; ZRPTTX), a publicly registered daily NAV REIT advised by DWS Group, has been declared effective by the Securities and Exchange Commission. This is the company’s third offering since January 2013.
The latest offering will consist of up to $2.1 billion in shares in the primary portion and up to $200 million in shares for the distribution reinvestment plan.
RREEF Property Trust utilizes a blended investment strategy that includes commercial real estate properties, common and preferred stock of publicly traded REITs and other real estate companies, and debt backed principally by real estate. The company focuses primarily on U.S. commercial real estate assets within the industrial, retail, office, and multifamily sectors.
The offering is comprised of four share classes: Class A, Class I, Class T, and Class N shares. Class N shares will not be sold in the primary portion of the offering, only through the distribution reinvestment plan.
The share price will be based on the daily net asset value per share, and the minimum initial investment is $2,500.
As of January 08, 2020, Class A shares had a net asset value per share of $14.46 and an annualized distribution yield of 4.68 percent (as of December 31, 2019), Class I shares had an NAV per share of $14.54 annualized distribution yield of 5.15 percent, and Class T shares had an NAV of $14.49 per share and annualized distribution yield of 4.68 percent.
Class A shares have a selling commission of up to 3.0 percent, a dealer manager fee equal to 0.55 percent annually, and a distribution fee of 0.50 percent annually.
Class I shares have no selling commissions or distribution fees but have a 0.55 percent annual dealer manager fee.
Class T shares include a maximum 3.0 percent selling commission, a 2.50 percent dealer manager fee, and a 1.0 percent distribution fee.
Class N shares have no associated fees or selling commissions.
In January 3, 2013, the company launched its initial public offering of up to $2.5 billion in shares of Class A and Class I common stock, and in July 2016, commenced a $2.3 billion follow-on offering of Class A, Class I, Class T and Class N shares.
The REIT’s portfolio consists of 14 properties purchased for approximately $350 million and a $19.2 million real estate equity securities portfolio consisting of publicly-traded common stock of 37 REITs.