Key facts
- Shareholders in DWS Group's RREEF Property Trust had 32.4% of their June redemption requests unmet.
- The REIT's quarterly redemption limit is set at 5% of net asset value.
- Monthly redemption caps also impacted distributions in April and May.
- RREEF has faced challenges meeting redemption requests over the past two years.
- The REIT sold two properties for a combined $140K profit in the last year.
- RREEF reported a net loss of $425K in the first quarter.
DWS Group's RREEF Property Trust is struggling to meet investor redemption requests, with shareholders only able to retrieve 67.6% of their requested cash in June. This shortfall is attributed to the REIT's redemption caps, which limit quarterly repurchases to 5% of net asset value and monthly redemptions to 2% of NAV.
RREEF has experienced difficulties meeting investor withdrawals over the past two years. In February, DWS injected $15 million into the fund to help meet requests, marking the first time since 2024 that all requests were fulfilled. The REIT has sold two properties in the past year, generating a profit of $140,000.
Despite these efforts, RREEF reported a net loss of $425,000 in the first quarter, an improvement from the $798,000 loss in the same period last year. The diversified portfolio, valued at $444.8 million and 97.4% leased, includes retail, apartment, industrial, and office assets.
DWS Group, a publicly listed asset manager majority-owned by Deutsche Bank with approximately $1.1 billion in assets under management, has seen its share price increase by over 20% this year. The challenges faced by RREEF echo broader issues in the nontraded REIT sector, where other large players like Blackstone Real Estate Income Trust have also previously capped redemptions. Starwood Capital Group, however, has fully halted redemptions for its nontraded REIT.