Our Investment Strategy
Ram Realty Trust views both real estate investment and relationships as being long-term in nature. Investors pursuing portfolio diversification need sound alternatives to achieve a high rate of return. Our approach to real estate is an ideal solution.
PRIVATE REIT
At Ram Realty Trust, we feel strongly that attractive investments exist outside the parameters generally focused on by publicly traded REITs, typically core properties in the top 25 U.S. markets with deal sizes over $20 million. While we do participate in primary markets, our private REIT also seeks investment opportunities in secondary and tertiary markets where superior risk-adjusted returns may be found. Our fully-integrated platform allows us to leverage our capabilities to invest in value-add assets and development projects, generating higher returns for our shareholders.
Unlike a highly-correlated public security, an investment in Ram Realty Trust reflects the value of its underlying real estate assets and performance and is not subject to market volatility. Any fluctuation in value would be driven by operating fundamentals and/or the value of our real estate portfolio, not by stock market swings.
More detailed information on valuation can be found in the FAQs section of our site.
CORE & CORE PLUS
Core properties typically have stable occupancy with long lease terms, investment-grade tenants and high-quality construction with few to no immediate capital needs. They also tend to be located within highly desirable areas in major markets. Therefore, core may be considered interchangeable with “income” in stock investing. Core property investors tend to have conservative profiles and seek to generate stable income with very low risk.
Core-plus properties are also typically high-quality and well-occupied. Owners of this property type are usually able to increase cash flows through simple property improvements and management efficiencies or by increasing the quality of tenants. This is why core-plus is often analogous to “growth and income” in stock investing and is generally connected to a low-to-moderate risk profile.
Ram Realty Trust invests in both core and core-plus opportunities and targets 60-70% of invested equity into such projects as part of our investment strategy.
VALUE-ADD
Value-add properties are acquired with the intent to make improvements thereby creating value for ownership. At the time of purchase, such properties may have occupancy issues, management problems, deferred maintenance, a lack of relationships with providers in a market, lack of a coherent marketing plan or any combination of these. In stock terms, value-add may be seen as interchangeable with growth and is characterized by moderately higher levels of risk.
Value-add properties often have relatively low levels of cash flow at acquisition with a potential for increased cash flow after the value is added. Ram Realty Trust’s fully-integrated platform enables leveraging our specialized expertise to capitalize on these types of investments by applying our knowledge of commercial real estate, strategic planning and daily oversight.
Our strategy targets 15-25% to be invested in value-add properties.
DEVELOPMENT
Ram Realty Trust's fully-integrated platform makes it possible to design, construct, lease and manage commercial facilities. By developing projects in-house, Ram Realty Trust can obtain highly desirable properties at a lower basis than would be found on the open market. Our full-service platform allows us to provide options, solutions and opportunities for both tenants and investors.
Commercial development is demand-driven, meaning some level of pre-leasing is generally present to reduce risk. Ram Realty Trust’s existing relationships with commercial real estate agents allow the firm to uncover and capitalize on these opportunities, as opposed to being solely a capital allocator.
Ram Realty Trust's investment strategy requires an investment of 5-15% equity into development projects.
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FAQS
Have a question? You may find the answer here.
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KNOWLEDGE CENTER
Learn about investing through articles written by industry professionals.
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OUR STORY
Want to know more about Ram Realty Trust? Meet our leadership here.
