RREEF Property Trust (RREEF) Q3 2024 earnings summary

Executive summary

• Portfolio consisted of 13 properties (office, retail, industrial, residential) with 93.8% occupancy as of September 30, 2024.

• Real estate equity securities portfolio valued at $129,000, invested in 29 REITs.

• Sold all investments in the CMBS Trust in July 2024, exiting real estate loan investments.

• Fourth public offering ongoing, with $14.6 million raised as of September 30, 2024.

Financial highlights

• Total revenues for Q3 2024 were $8.9 million, down from $9.1 million in Q3 2023; nine-month revenues were $29.2 million, down from $33.1 million year-over-year.

• Net loss for Q3 2024 was $(3.6) million, compared to net income of $0.7 million in Q3 2023; nine-month net loss was $(3.5) million, compared to net income of $19.6 million year-over-year.

• FFO for Q3 2024 was $(0.4) million, AFFO was $1.8 million; nine-month FFO was $5.2 million, AFFO was $6.4 million.

• Distributions declared for the nine months ended September 30, 2024 totaled $10.5 million, with 60% covered by operating cash flow and 40% by borrowings.

• NAV per share as of September 30, 2024 ranged from $13.45 to $13.62 across share classes.

Outlook and guidance

• Management expects to continue raising capital, increasing borrowings, and making new investments in targeted real estate segments.

• Market outlook is positive, with expectations for lower interest rates and improving fundamentals in industrial and residential sectors.

• Anticipates higher interest expense in future periods due to additional property acquisitions and higher rates.