0001542447false2023Q1December 310.0027400015424472023-01-012023-03-310001542447us-gaap:CommonClassAMember2023-05-10xbrli:shares0001542447rpt:CommonClassIMember2023-05-100001542447rpt:CommonClassTMember2023-05-100001542447rpt:CommonClassDMember2023-05-100001542447rpt:CommonClassNMember2023-05-100001542447rpt:CommonClassMIMember2023-05-100001542447rpt:CommonClassT2Member2023-05-100001542447rpt:CommonClassZMember2023-05-100001542447rpt:CommonClassSMember2023-05-1000015424472023-03-31iso4217:USD00015424472022-12-310001542447us-gaap:CommonClassAMember2023-03-310001542447us-gaap:CommonClassAMember2022-12-310001542447rpt:CommonClassDMember2023-03-310001542447rpt:CommonClassDMember2022-12-310001542447rpt:CommonClassIMember2023-03-310001542447rpt:CommonClassIMember2022-12-310001542447rpt:CommonClassMIMember2023-03-310001542447rpt:CommonClassMIMember2022-12-310001542447rpt:CommonClassNMember2023-03-310001542447rpt:CommonClassNMember2022-12-310001542447rpt:CommonClassSMember2023-03-310001542447rpt:CommonClassSMember2022-12-310001542447rpt:CommonClassTMember2023-03-310001542447rpt:CommonClassTMember2022-12-310001542447rpt:CommonClassT2Member2023-03-310001542447rpt:CommonClassT2Member2022-12-310001542447rpt:CommonClassZMember2022-12-310001542447rpt:CommonClassZMember2023-03-3100015424472022-01-012022-03-310001542447us-gaap:CommonClassAMember2023-01-012023-03-31iso4217:USDxbrli:shares0001542447us-gaap:CommonClassAMember2022-01-012022-03-310001542447rpt:CommonClassIMember2023-01-012023-03-310001542447rpt:CommonClassIMember2022-01-012022-03-310001542447rpt:CommonClassTMember2023-01-012023-03-310001542447rpt:CommonClassTMember2022-01-012022-03-310001542447rpt:CommonClassDMember2023-01-012023-03-310001542447rpt:CommonClassDMember2022-01-012022-03-310001542447rpt:CommonClassNMember2023-01-012023-03-310001542447rpt:CommonClassNMember2022-01-012022-03-310001542447rpt:CommonClassMIMember2023-01-012023-03-310001542447rpt:CommonClassMIMember2022-01-012022-03-310001542447rpt:CommonClassT2Member2023-01-012023-03-310001542447rpt:CommonClassT2Member2022-01-012022-03-310001542447rpt:CommonClassZMember2023-01-012023-03-310001542447rpt:CommonClassZMember2022-01-012022-03-310001542447us-gaap:PreferredStockMember2022-12-310001542447us-gaap:CommonStockMember2022-12-310001542447us-gaap:AdditionalPaidInCapitalMember2022-12-310001542447us-gaap:RetainedEarningsMember2022-12-310001542447us-gaap:CommonStockMember2023-01-012023-03-310001542447us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-310001542447us-gaap:RetainedEarningsMember2023-01-012023-03-310001542447us-gaap:PreferredStockMember2023-03-310001542447us-gaap:CommonStockMember2023-03-310001542447us-gaap:AdditionalPaidInCapitalMember2023-03-310001542447us-gaap:RetainedEarningsMember2023-03-310001542447us-gaap:PreferredStockMember2021-12-310001542447us-gaap:CommonStockMember2021-12-310001542447us-gaap:AdditionalPaidInCapitalMember2021-12-310001542447us-gaap:RetainedEarningsMember2021-12-3100015424472021-12-310001542447us-gaap:CommonStockMember2022-01-012022-03-310001542447us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001542447us-gaap:RetainedEarningsMember2022-01-012022-03-310001542447us-gaap:PreferredStockMember2022-03-310001542447us-gaap:CommonStockMember2022-03-310001542447us-gaap:AdditionalPaidInCapitalMember2022-03-310001542447us-gaap:RetainedEarningsMember2022-03-3100015424472022-03-310001542447rpt:SecondFollowOnOfferingMember2020-01-080001542447rpt:CommonClassDMember2016-01-200001542447rpt:CommonClassDMemberus-gaap:PrivatePlacementMember2020-11-170001542447rpt:RreefAmericaMember2023-03-31xbrli:pure0001542447us-gaap:FairValueInputsLevel1Member2023-03-310001542447us-gaap:FairValueInputsLevel2Member2023-03-310001542447us-gaap:FairValueInputsLevel3Member2023-03-310001542447us-gaap:FairValueInputsLevel1Member2022-12-310001542447us-gaap:FairValueInputsLevel2Member2022-12-310001542447us-gaap:FairValueInputsLevel3Member2022-12-310001542447rpt:WellsFargoBankMember2023-03-310001542447rpt:WellsFargoBankMember2022-12-310001542447us-gaap:LineOfCreditMemberrpt:MeasurementInputLoanToValueMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:MaximumMemberus-gaap:LineOfCreditMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:WeightedAverageMemberus-gaap:LineOfCreditMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447rpt:MeasurementInputMarketInterestRateMemberus-gaap:LineOfCreditMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:MaximumMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:LineOfCreditMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:WeightedAverageMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:LineOfCreditMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447us-gaap:MortgagesMemberrpt:MeasurementInputLoanToValueMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447us-gaap:MortgagesMembersrt:MaximumMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:WeightedAverageMemberus-gaap:MortgagesMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447us-gaap:MortgagesMemberrpt:MeasurementInputMarketInterestRateMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447us-gaap:MortgagesMembersrt:MaximumMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:WeightedAverageMemberus-gaap:MortgagesMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447rpt:NotesToRelatedPartiesMemberrpt:MeasurementInputMarketInterestRateMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:MaximumMemberrpt:NotesToRelatedPartiesMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447srt:WeightedAverageMemberrpt:NotesToRelatedPartiesMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-03-310001542447us-gaap:LineOfCreditMemberrpt:MeasurementInputLoanToValueMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:MaximumMemberus-gaap:LineOfCreditMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:WeightedAverageMemberus-gaap:LineOfCreditMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447rpt:MeasurementInputMarketInterestRateMemberus-gaap:LineOfCreditMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:MaximumMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:LineOfCreditMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:WeightedAverageMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:LineOfCreditMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447us-gaap:MortgagesMemberrpt:MeasurementInputLoanToValueMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447us-gaap:MortgagesMembersrt:MaximumMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:WeightedAverageMemberus-gaap:MortgagesMemberrpt:MeasurementInputLoanToValueMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447us-gaap:MortgagesMemberrpt:MeasurementInputMarketInterestRateMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447us-gaap:MortgagesMembersrt:MaximumMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:WeightedAverageMemberus-gaap:MortgagesMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447rpt:NotesToRelatedPartiesMemberrpt:MeasurementInputMarketInterestRateMembersrt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:MaximumMemberrpt:NotesToRelatedPartiesMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-310001542447srt:WeightedAverageMemberrpt:NotesToRelatedPartiesMemberrpt:MeasurementInputMarketInterestRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2022-12-31rpt:property0001542447rpt:FlatsatCarrsHillMember2023-01-12utr:acre0001542447us-gaap:LandMember2023-01-12rpt:tenant0001542447srt:MultifamilyMember2023-01-012023-03-310001542447rpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMemberrpt:TerraNovaMember2023-01-012023-03-310001542447rpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMemberrpt:TerraNovaMember2022-01-012022-03-310001542447rpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMemberrpt:TheGlennMember2023-01-012023-03-310001542447rpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMemberrpt:TheGlennMember2022-01-012022-03-310001542447rpt:ProvidenceSquareMemberrpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMember2023-01-012023-03-310001542447rpt:ProvidenceSquareMemberrpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMember2022-01-012022-03-310001542447rpt:SeattleEastIndustrialMemberrpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMember2023-01-012023-03-310001542447rpt:SeattleEastIndustrialMemberrpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMember2022-01-012022-03-310001542447rpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMember2023-01-012023-03-310001542447rpt:SalesRevenueGrossMemberus-gaap:GeographicConcentrationRiskMemberrpt:MajorCustomersMember2022-01-012022-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:SalesRevenueGrossMemberrpt:BedBathBeyondMember2023-01-012023-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:SalesRevenueGrossMemberrpt:BedBathBeyondMember2022-01-012022-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:SalesRevenueGrossMemberrpt:FedExGroundSeattleEastIndustrialMember2023-01-012023-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:SalesRevenueGrossMemberrpt:FedExGroundSeattleEastIndustrialMember2022-01-012022-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:SalesRevenueGrossMemberrpt:MajorCustomersMember2023-01-012023-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:SalesRevenueGrossMemberrpt:MajorCustomersMember2022-01-012022-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:AnnualizedBaseRentalRevenuesMemberrpt:FedExGroundSeattleEastIndustrialMember2023-01-012023-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:AnnualizedBaseRentalRevenuesMemberrpt:FedExGroundSeattleEastIndustrialMember2022-01-012022-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:MajorCustomersMemberrpt:AnnualizedBaseRentalRevenuesMember2023-01-012023-03-310001542447us-gaap:CustomerConcentrationRiskMemberrpt:MajorCustomersMemberrpt:AnnualizedBaseRentalRevenuesMember2022-01-012022-03-310001542447rpt:CMBSTrustMember2022-10-270001542447rpt:CMBSTrustMember2023-03-310001542447us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-03-310001542447us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001542447us-gaap:LondonInterbankOfferedRateLIBORMemberrpt:RevisedWellsFargoLineofCreditMembersrt:MinimumMemberrpt:WellsFargoBankMember2018-02-272018-02-270001542447us-gaap:LondonInterbankOfferedRateLIBORMemberrpt:RevisedWellsFargoLineofCreditMembersrt:MaximumMemberrpt:WellsFargoBankMember2018-02-272018-02-270001542447rpt:RevisedWellsFargoLineofCreditMemberrpt:WellsFargoBankMember2022-12-310001542447rpt:RevisedWellsFargoLineofCreditMemberrpt:WellsFargoBankMember2023-01-270001542447us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberrpt:RevisedWellsFargoLineofCreditMembersrt:MinimumMemberrpt:WellsFargoBankMember2023-01-272023-01-270001542447us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberrpt:RevisedWellsFargoLineofCreditMembersrt:MaximumMemberrpt:WellsFargoBankMember2023-01-272023-01-270001542447rpt:RevisedWellsFargoLineofCreditMemberrpt:WellsFargoBankMember2023-03-310001542447us-gaap:MortgagesMemberrpt:TalcottResolutionLifeInsuranceCompanyMemberrpt:CommerceCornerMember2023-03-310001542447us-gaap:MortgagesMemberrpt:TalcottResolutionLifeInsuranceCompanyMemberrpt:CommerceCornerMember2022-12-310001542447rpt:NationwideLifeInsuranceCompanyMemberus-gaap:MortgagesMemberrpt:FlatsAtCarrHillMember2023-03-310001542447rpt:NationwideLifeInsuranceCompanyMemberus-gaap:MortgagesMemberrpt:FlatsAtCarrHillMember2022-12-310001542447us-gaap:MortgagesMemberrpt:StateFarmLifeInsuranceCompanyMemberrpt:ElstonPlazaMember2023-03-310001542447us-gaap:MortgagesMemberrpt:StateFarmLifeInsuranceCompanyMemberrpt:ElstonPlazaMember2022-12-310001542447us-gaap:MortgagesMemberrpt:TheGlennMemberrpt:MassachusettsMutualLifeInsuranceCompanyMember2023-03-310001542447us-gaap:MortgagesMemberrpt:TheGlennMemberrpt:MassachusettsMutualLifeInsuranceCompanyMember2022-12-310001542447rpt:WallingfordPlazaMemberus-gaap:MortgagesMemberrpt:TransamericaLifeInsuranceCompanyMember2023-03-310001542447rpt:WallingfordPlazaMemberus-gaap:MortgagesMemberrpt:TransamericaLifeInsuranceCompanyMember2022-12-310001542447rpt:ProvidenceSquareMemberrpt:NationwideLifeInsuranceCompanyMemberus-gaap:MortgagesMember2023-03-310001542447rpt:ProvidenceSquareMemberrpt:NationwideLifeInsuranceCompanyMemberus-gaap:MortgagesMember2022-12-310001542447rpt:SeattleEastIndustrialMemberus-gaap:MortgagesMemberrpt:JPMorganChaseBankMember2023-03-310001542447rpt:SeattleEastIndustrialMemberus-gaap:MortgagesMemberrpt:JPMorganChaseBankMember2022-12-310001542447us-gaap:MortgagesMember2023-03-310001542447us-gaap:MortgagesMember2022-12-31rpt:component0001542447rpt:RreefAmericaMemberrpt:ClassAClassIClassTClassDClassNAndClassZSharesMember2023-03-310001542447rpt:RreefAmericaMemberrpt:ClassMIClassSAndClassT2Member2023-03-310001542447rpt:RreefAmericaMemberrpt:FixedComponentMember2023-01-012023-03-310001542447rpt:RreefAmericaMemberrpt:FixedComponentMember2022-01-012022-03-310001542447rpt:RreefAmericaMemberrpt:PerformanceComponentMember2023-01-012023-03-310001542447rpt:RreefAmericaMemberrpt:PerformanceComponentMember2022-01-012022-03-310001542447rpt:RreefAmericaMember2023-01-012023-03-310001542447rpt:RreefAmericaMember2022-01-012022-03-310001542447rpt:RreefAmericaMemberrpt:ReimbursableundertheAdvisoryAgreementMember2023-03-310001542447rpt:RreefAmericaMemberrpt:ReimbursableundertheAdvisoryAgreementMember2022-12-3100015424472016-01-202016-01-200001542447rpt:RreefAmericaMemberrpt:ExpenseSupportAgreementMember2023-03-310001542447rpt:RreefAmericaMemberrpt:TheLetterAgreementMember2023-03-310001542447rpt:RreefAmericaMemberrpt:TheLetterAgreementMember2023-01-012023-03-310001542447rpt:RreefAmericaMemberrpt:NotesToRelatedPartiesMember2020-03-240001542447us-gaap:MeasurementInputDiscountRateMemberrpt:RreefAmericaMemberrpt:NotesToRelatedPartiesMember2020-03-240001542447rpt:RreefAmericaMemberrpt:NotesToRelatedPartiesMembersrt:AffiliatedEntityMember2023-01-012023-03-310001542447rpt:RreefAmericaMemberrpt:NotesToRelatedPartiesMembersrt:AffiliatedEntityMember2022-01-012022-03-310001542447rpt:TrailingFeeMember2023-03-310001542447rpt:TrailingFeeMember2022-12-310001542447rpt:TrailingFeeToBePayableMember2023-03-310001542447rpt:TrailingFeeToBePayableMember2022-12-310001542447rpt:DWSDistributorsMember2023-01-012023-03-310001542447rpt:DWSDistributorsMember2022-01-012022-03-310001542447rpt:DWSDistributorsMemberrpt:ReimbursableunderDealerManagerAgreementMember2023-03-310001542447rpt:DWSDistributorsMember2022-12-310001542447rpt:RreefAmericaMemberus-gaap:IPOMember2013-05-312016-06-300001542447rpt:RreefAmericaMemberus-gaap:IPOMember2023-03-310001542447rpt:FollowOnPublicOfferingMember2016-07-012020-01-080001542447rpt:FollowOnPublicOfferingMember2023-03-310001542447rpt:SecondFollowOnPublicOfferingMember2020-01-092023-03-310001542447rpt:SecondFollowOnPublicOfferingMember2023-03-310001542447rpt:DWSDistributorsMemberrpt:ReimbursableunderDealerManagerAgreementMember2022-12-310001542447rpt:RreefAmericaMemberrpt:AdvioryFeesMember2023-03-310001542447rpt:RreefAmericaMemberrpt:AdvioryFeesMember2022-12-310001542447rpt:DWSDistributorsMemberrpt:TrailingFeeMember2023-03-310001542447rpt:DWSDistributorsMemberrpt:TrailingFeeMember2022-12-310001542447rpt:RreefAmericaMember2022-12-310001542447rpt:CommonClassSMember2023-01-012023-03-310001542447rpt:CommonClassIMember2021-01-012021-12-310001542447rpt:CommonClassZMember2021-01-012021-12-310001542447us-gaap:RestrictedStockMember2023-03-310001542447rpt:CommonClassIMember2019-03-292019-03-290001542447us-gaap:RestrictedStockMember2019-03-292019-03-290001542447us-gaap:RestrictedStockMember2023-01-012023-03-310001542447us-gaap:RestrictedStockMember2022-06-202022-06-200001542447us-gaap:RestrictedStockMember2022-06-212022-06-210001542447rpt:CommonClassDMemberus-gaap:RestrictedStockMember2022-12-310001542447rpt:CommonClassDMemberus-gaap:RestrictedStockMember2021-12-310001542447rpt:CommonClassDMemberus-gaap:RestrictedStockMember2023-01-012023-03-310001542447rpt:CommonClassDMemberus-gaap:RestrictedStockMember2022-01-012022-03-310001542447rpt:CommonClassDMemberus-gaap:RestrictedStockMember2023-03-310001542447rpt:CommonClassDMemberus-gaap:RestrictedStockMember2022-03-3100015424472022-01-012022-12-310001542447us-gaap:CommonStockMemberus-gaap:CommonClassAMember2023-01-012023-03-310001542447us-gaap:CommonStockMemberus-gaap:CommonClassAMember2022-01-012022-12-310001542447rpt:CommonClassIMemberus-gaap:CommonStockMember2023-01-012023-03-310001542447rpt:CommonClassIMemberus-gaap:CommonStockMember2022-01-012022-12-310001542447rpt:CommonClassTMemberus-gaap:CommonStockMember2023-01-012023-03-310001542447rpt:CommonClassTMemberus-gaap:CommonStockMember2022-01-012022-12-310001542447rpt:CommonClassDMemberus-gaap:CommonStockMember2023-01-012023-03-310001542447rpt:CommonClassDMemberus-gaap:CommonStockMember2022-01-012022-12-310001542447us-gaap:CommonStockMemberrpt:CommonClassNMember2023-01-012023-03-310001542447us-gaap:CommonStockMemberrpt:CommonClassNMember2022-01-012022-12-310001542447rpt:CommonClassMIMemberus-gaap:CommonStockMember2023-01-012023-03-310001542447rpt:CommonClassMIMemberus-gaap:CommonStockMember2022-01-012022-12-310001542447rpt:CommonClassT2Memberus-gaap:CommonStockMember2023-01-012023-03-310001542447rpt:CommonClassT2Memberus-gaap:CommonStockMember2022-01-012022-12-31rpt:segment0001542447rpt:RealEstatePropertiesMemberus-gaap:OperatingSegmentsMember2023-03-310001542447us-gaap:OperatingSegmentsMemberrpt:RealEstateEquitySecuritiesMember2023-03-310001542447us-gaap:OperatingSegmentsMemberrpt:RealEstateLoansMember2023-03-310001542447us-gaap:OperatingSegmentsMember2023-03-310001542447us-gaap:CorporateNonSegmentMember2023-03-310001542447rpt:RealEstatePropertiesMemberus-gaap:OperatingSegmentsMember2022-12-310001542447us-gaap:OperatingSegmentsMemberrpt:RealEstateEquitySecuritiesMember2022-12-310001542447us-gaap:OperatingSegmentsMemberrpt:RealEstateLoansMember2022-12-310001542447us-gaap:OperatingSegmentsMember2022-12-310001542447us-gaap:CorporateNonSegmentMember2022-12-310001542447rpt:RealEstatePropertiesMemberus-gaap:OperatingSegmentsMember2023-01-012023-03-310001542447us-gaap:OperatingSegmentsMemberrpt:RealEstateEquitySecuritiesMember2023-01-012023-03-310001542447rpt:RealEstateLoansMember2023-01-012023-03-310001542447us-gaap:OperatingSegmentsMember2023-01-012023-03-310001542447rpt:RealEstatePropertiesMemberus-gaap:OperatingSegmentsMember2022-01-012022-03-310001542447us-gaap:OperatingSegmentsMemberrpt:RealEstateEquitySecuritiesMember2022-01-012022-03-310001542447rpt:RealEstateLoansMember2022-01-012022-03-310001542447us-gaap:OperatingSegmentsMember2022-01-012022-03-310001542447us-gaap:MaterialReconcilingItemsMember2023-01-012023-03-310001542447us-gaap:MaterialReconcilingItemsMember2022-01-012022-03-310001542447us-gaap:SubsequentEventMember2023-04-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________________________
Form 10-Q
_________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____ to ____

Commission file number 000-55598
__________________________________________ 
RREEF Property Trust, Inc.
(Exact name of registrant as specified in its charter)
__________________________________________
Maryland45-4478978
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification Number)
875 Third Avenue, 26th Floor, New York, NY 10022
(212) 454-4500
(Address of principal executive offices; zip code)(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
 ________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  x    No  o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filero
Non-accelerated filerxSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  x

As of May 10, 2023, the registrant had 4,262,837 shares of Class A common stock, $.01 par value, outstanding, 12,075,054 shares of Class I common stock, $.01 par value, outstanding, 153,814 shares of Class T common stock, $.01 par value, outstanding, 2,810,984 shares of Class D common stock, $.01 par value, outstanding, 686,934 shares of Class N common stock, $.01 par value, outstanding, 410,317 shares of Class M-I common stock, $.01 par value, outstanding, 607,917 shares of Class T2 common stock, $.01 par value, outstanding, 75,000 shares of Class Z common stock, $.01 par value and no shares of Class S common stock, $.01 par value, outstanding.



Table of Contents
RREEF PROPERTY TRUST, INC.
QUARTERLY REPORT ON FORM 10-Q
For the Quarter Ended March 31, 2023

TABLE OF CONTENTS
 

2

Table of Contents
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
RREEF PROPERTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, 2023 (unaudited)December 31, 2022
ASSETS
Investment in real estate assets, net$416,261 $420,552 
Investment in marketable securities100 26,987 
Real estate loans held in consolidated CMBS Trust, at fair value1,157,536 1,156,263 
Cash and cash equivalents 4,739 5,197 
Restricted cash657  
Receivables, net of allowance for doubtful accounts of $109 and $35, respectively
6,303 6,602 
Accrued interest receivable from real estate loans held in consolidated CMBS Trust4,239 4,239 
Deferred leasing costs, net of amortization of $2,179 and $2,037, respectively
3,495 3,325 
Prepaid and other assets3,401 2,324 
Total assets$1,596,731 $1,625,489 
LIABILITIES AND STOCKHOLDERS' EQUITY
Line of credit, net$66,874 $84,780 
Mortgage loans payable, net190,287 190,433 
Bonds payable held in consolidated CMBS Trust, at fair value1,125,910 1,125,096 
Accrued interest payable on bonds held in consolidated CMBS Trust4,137 4,137 
Accounts payable and accrued expenses3,689 4,798 
Due to affiliates18,766 18,894 
Note to affiliate, net of unamortized discount of $415 and $461, respectively
4,968 4,922 
Acquired below market lease intangibles, less accumulated amortization of $10,176 and $7,706, respectively
8,389 10,859 
Distributions payable715 696 
Other liabilities2,910 2,323 
Total liabilities1,426,645 1,446,938 
Stockholders' Equity:
Preferred stock, none issued
  
Class A common stock, 4,259,942 and 4,345,525 issued and outstanding, respectively
43 43 
Class D common stock, 3,172,977 and 3,226,181 issued and outstanding, respectively
31 32 
Class I common stock, 12,664,163 and 12,939,113 issued and outstanding, respectively
127 129 
Class M-I common stock, 392,466 and 360,762 issued and outstanding, respectively
4 4 
Class N common stock, 690,076 and 659,082 issued and outstanding, respectively
7 7 
Class S common stock, none issued
  
Class T common stock, 156,780 and 351,926 issued and outstanding, respectively
2 4 
Class T2 common stock, 579,935 and 475,565 issued and outstanding, respectively
6 5 
Class Z common stock, 75,000 issued and outstanding

1 1 
Additional paid-in capital269,927 278,007 
Deficit(100,062)(99,681)
Total stockholders' equity170,086 178,551 
Total liabilities and stockholders' equity$1,596,731 $1,625,489 
The accompanying notes are an integral part of these consolidated financial statements.
3

Table of Contents

RREEF PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except share and per share data)
Three Months Ended March 31,
20232022
Revenues
Property related income $13,168 $10,143 
Investment income on marketable securities43 233 
Total revenues13,211 10,376 
Expenses
General and administrative expenses684 537 
Property operating expenses3,201 2,986 
Advisory fees868 2,349 
Depreciation2,823 2,857 
Amortization1,967 2,900 
Total operating expenses9,543 11,629 
Net realized gain upon sale of real estate542  
Net realized gain upon sale of marketable securities3,472 1,025 
Net unrealized change in fair value of investment in marketable securities(1,283)(3,338)
Change in net assets of consolidated CMBS Trust765  
Operating income (loss) 7,164 (3,566)
Interest expense(3,059)(2,144)
Net income (loss) income$4,105 $(5,710)
Basic and diluted net income (loss) per share of Class A common stock$0.19 $(0.28)
Basic and diluted net income (loss) per share of Class I common stock$0.19 $(0.28)
Basic and diluted net income (loss) per share of Class T common stock$0.19 $(0.28)
Basic and diluted net income (loss) per share of Class D common stock$0.19 $(0.28)
Basic and diluted net income (loss) per share of Class N common stock$0.19 $(0.28)
Basic and diluted net income (loss) per share of Class M-I common stock$0.19 $(0.30)
Basic and diluted net income (loss) per share of Class T2 common stock$0.19 $(0.30)
Basic and diluted net income (loss) per share of Class Z common stock$0.19 $(0.28)

The accompanying notes are an integral part of these consolidated financial statements.


4

Table of Contents

RREEF PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(in thousands, except share and per share data)
Preferred StockCommon StockAdditional Paid-in CapitalDeficitTotal
Stockholders'
Equity
Number of
Shares
Par
Value
Number of
Shares
Par
Value
Balance, December 31, 2022 $ 22,433,154 $225 $278,007 $(99,681)$178,551 
Issuance of common stock— — 545,253 6 8,844 — 8,850 
Issuance of common stock through the distribution reinvestment plan— — 151,160 1 2,356 — 2,357 
Redemption of common stock— — (1,138,837)(11)(18,496)— (18,507)
Distributions to investors— — — — (4,486)(4,486)
Offering costs— — — — (795)— (795)
Equity based compensation — — 609 — 11 — 11 
Net income— — — — — 4,105 4,105 
Balance, March 31, 2023 $ 21,991,339 $221 $269,927 $(100,062)$170,086 
The accompanying notes are an integral part of these consolidated financial statements.

5

Table of Contents

RREEF PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(Unaudited)
(in thousands, except share and per share data)
Preferred StockCommon StockAdditional Paid-in CapitalDeficitTotal
Stockholders'
Equity
Number of
Shares
Par
Value
Number of
Shares
Par
Value
Balance, December 31, 2021 $ 19,836,423 $199 $238,275 $(66,723)$171,751 
Issuance of common stock— — 1,079,418 11 18,334 — 18,345 
Issuance of common stock through the distribution reinvestment plan— — 129,394 1 2,209 — 2,210 
Redemption of common stock— — (87,582)(1)(1,474)— (1,475)
Distributions to investors— — — — — (4,230)(4,230)
Offering costs— — — — (1,557)— (1,557)
Equity based compensation— — 1,690 — 24 — 24 
Net loss— — — — — (5,710)(5,710)
Balance, March 31, 2022 $ 20,959,343 $210 $255,811 $(76,663)$179,358 
The accompanying notes are an integral part of these consolidated financial statements.
6


RREEF PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Three Months Ended March 31,
20232022
Cash flows from operating activities:
Net income (loss)$4,105 $(5,710)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation2,823 2,857 
Net realized gain on real estate(542) 
Net realized gain upon sale of marketable securities(3,472)(1,025)
Net unrealized loss on investments held at fair value824 3,338 
Share based compensation11 24 
Amortization of intangible lease assets and liabilities(466)2,722 
Amortization of deferred financing costs103 69 
Straight line rent(136)(191)
Amortization of discount on note to affiliate46 44 
Changes in assets and liabilities:
Receivables, net350 (389)
Deferred leasing costs(1,066)(59)
Prepaid and other assets(1,000)(689)
Accounts payable and accrued expenses149 (184)
Other liabilities518 (126)
Due to affiliates(65)(4,525)
Net cash provided by (used in) operating activities2,182 (3,844)
Cash flows from investing activities:
Improvements to real estate assets(719)(317)
Investment in marketable securities(1,467)(10,833)
Proceeds from sale of real estate629  
Proceeds from sale of marketable securities30,568 10,585 
Principal payments received from mortgage loans held in consolidated CMBS Trust63  
Net cash provided by (used in) investing activities29,074 (565)
Cash flows from financing activities:
Proceeds from line of credit3,000 6,000 
Repayment of line of credit(20,300)(17,000)
Repayment of mortgage loans payable(183)(177)
Distribution of principal payments to bondholders of consolidated CMBS Trust(63) 
Proceeds from issuance of common stock8,845 18,469 
Payment of financing costs(672) 
Payment of offering costs(863)(829)
Distributions to investors(2,110)(1,945)
Redemption of common stock(18,711)(1,475)
Net cash provided by (used in) financing activities(31,057)3,043 
Net increase (decrease) in cash, cash equivalents and restricted cash199 (1,366)
Cash, cash equivalents and restricted cash beginning of period5,197 7,131 
Cash, cash equivalents and restricted cash end of period$5,396 $5,765 
The accompanying notes are an integral part of these consolidated financial statements.
7


RREEF PROPERTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued)
(Unaudited)
Three Months Ended March 31,
Supplemental Disclosures of Non-Cash Investing and Financing Activities:20232022
Distributions declared and unpaid$715 $702 
Common stock issued through the distribution reinvestment plan2,357 2,210 
Purchases of marketable securities not yet paid17 211 
Proceeds from sale of marketable securities not yet received9 236 
Proceeds from issuance of common stock not yet received177 25 
Accrued offering costs not yet paid503 1,290 
Capital expenditures not yet paid81 32 
Supplemental Cash Flow Disclosures:
Interest paid$2,936 $2,031 

The accompanying notes are an integral part of these consolidated financial statements.

8

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2023
(Unaudited)
(in thousands except share and per share data)

NOTE 1 — ORGANIZATION

RREEF Property Trust, Inc. (the “Company”) was formed on February 7, 2012 as a Maryland corporation and has elected to qualify as a real estate investment trust (“REIT”) for federal income tax purposes. Substantially all of the Company's business is conducted through RREEF Property Operating Partnership, LP, the Company's operating partnership (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. RREEF Property OP Holder, LLC (the “OP Holder”), a wholly-owned subsidiary of the Company, is the limited partner of the Operating Partnership. The Company's sponsor and advisor is RREEF America L.L.C. (“RREEF America”).

The Company invests in a diversified portfolio consisting primarily of high-quality, income-producing commercial real estate located in the United States, including, without limitation, office, industrial, retail and residential properties (“Real Estate Properties”). The Company also invests in common and preferred stock of REITs and other real estate companies (“Real Estate Equity Securities”) and in debt investments backed principally by real estate (“Real Estate Loans” and, together with Real Estate Equity Securities, “Real Estate-Related Assets”).

The Company raises capital through a combination of public and private offerings of its shares of common stock. On January 3, 2013, the Company commenced its initial public offering, which continued until June 30, 2016 (the “Initial Public Offering”). On July 12, 2016, the Company commenced its second public offering, which continued until January 8, 2020 (the “Second Public Offering”).

On January 8, 2020, the Company commenced its third public offering, which is currently ongoing (the “Third Public Offering”). In the Third Public Offering, the Company is offering to the public up to $2,300,000 in various classes of common stock: Class A shares, Class I shares, Class M-I shares, Class N shares, Class S shares, Class T shares and Class T2 shares (also see Note 10). Class N shares can only be acquired via (a) conversion from Class T shares in accordance with the provisions of Class T shares, and (b) thereafter via the Company’s distribution reinvestment plan. The Company and its Operating Partnership entered into a dealer manager agreement (the “Dealer Manager Agreement”) with DWS Distributors, Inc. (the “Dealer Manager”), a registered broker-dealer and an affiliate of RREEF America, to conduct the Company's public offerings. Also see Note 9.

On January 20, 2016, the Company commenced a private offering of up to a maximum of $350,000 in Class D shares under Regulation D of the Securities Act of 1933 (the "Reg D Private Offering"). On November 17, 2020, the Company commenced a separate private offering of up to a maximum of $300,000 in Class D shares under Regulation S of the Securities Act of 1933 (the "Reg S Private Offering" and, together with the Reg D Private Offering, the "Private Offerings"). In addition, the Company's charter authorizes Class Z shares, which are expected to be offered only in a private offering to RREEF America.

Together, the Initial Public Offering, the Second Public Offering, the Third Public Offering and the Private Offerings are collectively referred to as the "Offerings."

Shares of the Company’s common stock are sold at the Company’s net asset value (“NAV”) per share, plus, for Class A, Class S, Class T, Class T2 and Class D shares only, applicable selling commissions. Each class of shares have a different NAV per share because of certain class-specific fees. NAV per share is calculated by dividing the NAV at the end of each business day for each class by the number of shares outstanding for that class on such day.

The Company's NAV per share for its Class A, Class I, Class T, Class D, Class M-I, Class T2, and Class N shares is posted to the Company's website at www.rreefpropertytrust.com after the stock market close each business day. Additionally, the Company's NAV per share for its Class A, Class I, Class T, Class D, Class M-I, Class T2, and Class N shares is published daily via NASDAQ's Mutual Fund Quotation System under the symbols ZRPTAX, ZRPTIX, ZRPTTX, ZRPTDX, ZRPTMX, ZRPTUX, and ZRPTNX, respectively. The Company's NAV per share
9

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
for its Class S shares will be available on the Company's website and via NASDAQ's Mutual Fund Quotation System once the first sale of shares for the share class has occurred.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), the authoritative reference for U.S. generally accepted accounting principles (“GAAP”). There have been no significant changes to the Company's significant accounting policies during the three months ended March 31, 2023. The interim financial data as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 is unaudited. In the Company’s opinion, the interim data includes all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods.
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

Principles of Consolidation

The Company consolidates all entities in which it has a controlling financial interest through majority ownership or voting rights and variable interest entities whereby the Company is the primary beneficiary. In determining whether the Company has a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, the Company considers whether the entity is a variable interest entity (“VIE”) and whether the Company is the primary beneficiary. Under ASC 810, Consolidation, the Company is the primary beneficiary of a VIE when it has both (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities (“VOEs”) and are evaluated for consolidation under the voting interest model. VOEs are consolidated when the Company controls the entity through a majority voting interest or other means.

Cash, Cash Equivalents and Restricted Cash

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Cash equivalents may include cash and short-term investments. Short-term investments are stated at cost, which approximates fair value and may consist of investments in money market accounts.

The recent news about the failure or the potential failure of certain banks does not have a direct impact on the Company as the Company's line of credit is with Wells Fargo Bank National Association ("Wells Fargo"), and the Company does not have cash deposits or leases with those financial institutions which recently have been placed into receivership.

The Company includes restricted cash with cash and cash equivalents on the consolidated statement of cash flows in accordance with Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230). The amount of restricted cash included therein was $657 and zero as of March 31, 2023 and December 31, 2022, respectively. Such restricted cash resulted from the sale of a portion of the land at Flats at Carrs Hill and is required by the lender holding the mortgage to be spent on capital improvements at the property as and when they occur.

Real Estate Investments and Lease Intangibles

10

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
Entities are required to evaluate whether transactions should be accounted for as acquisitions (and dispositions) of assets or businesses. When substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. Generally, a real estate asset and its related leases will be considered a single identifiable asset and therefore will not meet the definition of a business. If the real estate and related leases in an acquisition are determined to be an asset and not a business, then the acquisition related costs would be capitalized onto the consolidated balance sheets. Otherwise, such costs will be expensed upon completion of the transaction.

The Company assesses the carrying values of real estate investments whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable, such as a reduction in the expected holding period of a property. A real estate investment is potentially impaired if the undiscounted cash flows to be realized over the expected hold period are less than the real estate investment’s carrying amount. In this case, an impairment loss will be recorded to the extent that the estimated fair value is lower than the real estate investment’s carrying amount. The estimated fair value is determined primarily using information contained within independent appraisals obtained quarterly by the Company from its independent valuation agent. Real estate investments that are expected to be disposed of are valued at the lower of carrying amount or estimated fair value less costs to sell. As of March 31, 2023 and December 31, 2022, none of the Company's real estate investments were impaired.

CMBS Trust

In October 2022, the Company purchased all of the Class D certificates and certain interest-only certificates of commercial mortgage backed securities ("CMBS") securitized through a trust (the “CMBS Trust”) sponsored by the Federal Home Loan Mortgage Corporation ("Freddie Mac"). An entity is a VIE when the interests of the entity provide differing rights and obligations to its holders. In particular, the CMBS Trust is a VIE as substantially all of its activities are for the benefit of the more senior tranches, but these senior tranches hold disproportionately few rights. Generally, a trust designates the most junior subordinate tranche outstanding as the controlling class, which entitles the holder of the controlling class to unilaterally appoint, remove and replace the special servicer for the trust. The Company believes the performance of the assets that underlie a CMBS issuance most significantly impact the economic performance of the trust itself, and the primary beneficiary is generally the entity that conducts activities that most significantly impact the performance of the underlying assets. The Class D certificates purchased by the Company represent the most subordinate tranche of the CMBS Trust giving the Company the aforementioned controlling class powers and therefore the Company is the primary beneficiary of the CMBS Trust. Accordingly, the Company consolidates the CMBS Trust in its entirety.

While the Company has certain rights related to the special servicer, the Company does not have the ability to direct operating activities of the CMBS Trust. The assets of the CMBS Trust cannot be used to settle the liabilities of the Company nor is the Company obligated to use the Company's assets to settle the liabilities of the CMBS Trust. The Company's exposure to the CMBS Trust is through the subordinated tranches that the Company actually owns and is limited to the Company's investment in the CMBS Trust. For financial reporting purposes, the underlying mortgage loans held by the CMBS Trust are recorded as a separate line item on the consolidated balance sheet under “Real estate loans held in consolidated CMBS Trust, at fair value.” The liabilities of the CMBS Trust consist solely of obligations to the other certificate holders of the consolidated CMBS Trust, excluding the certificates held by the Company. The liabilities are presented as “Bonds payable held in consolidated CMBS Trust, at fair value” on the consolidated balance sheet.

The Company has elected the measurement alternative in ASC 810 to report the fair value of the assets and liabilities of the CMBS Trust in order to provide users of the financial statements with better information regarding the effects of credit risk and other market factors on the certificates owned by the Company. The Company has elected to show interest income and interest expense related to the CMBS Trust in aggregate with the change in fair value as “Change in net assets of consolidated CMBS Trust” on the consolidated statements of operations. The
11

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
residual difference between the fair value of the CMBS Trust’s assets and liabilities represents the Company’s investments in the specific securities it owns at fair value.

Organization and Offering Costs

Organizational expenses and other expenses which do not qualify as offering costs are expensed as incurred. Offering costs are those costs incurred by the Company, RREEF America and its affiliates on behalf of the Company which relate directly to the Company’s activities of raising capital in the Offerings, preparing for the Offerings, the qualification and registration of the Offerings and the marketing and distribution of the Company’s shares. This includes, but is not limited to, accounting and legal fees, including the legal fees of the dealer manager for the public offerings, costs for registration statement amendments and prospectus supplements, printing, mailing and distribution costs, filing fees, amounts to reimburse RREEF America as the Company’s advisor or its affiliates for the salaries of employees and other costs in connection with preparing supplemental sales literature, amounts to reimburse the dealer manager for amounts that it may pay to reimburse the bona fide due diligence expenses of any participating broker-dealers supported by detailed and itemized invoices, telecommunication costs, fees of the transfer agent, registrars, trustees, depositories and experts, the cost of educational conferences held by the Company (including the travel, meal and lodging costs of registered representatives of any participating broker-dealers) and attendance fees and cost reimbursement for employees of affiliates to attend retail seminars conducted by broker-dealers. Offering costs will be paid from the proceeds of the Offerings. These costs will be treated as a reduction of the total proceeds. Total organization and offering costs incurred by the Company with respect to a particular public offering will not exceed 15% of the gross proceeds from such particular public offering. In addition, the Company will not reimburse RREEF America or the dealer manager for any underwriting compensation (a subset of organization and offering costs) which would cause the Company’s total underwriting compensation to exceed 10% of the gross proceeds from the primary portion of each public offering.

Included in offering costs are (1) distribution fees paid on a trailing basis at the rate of (a) 0.50% per annum on the NAV of the outstanding Class A Shares, (b) 1.00% per annum on the NAV of the outstanding Class T Shares, and (c) 0.85% per annum on the NAV of the outstanding Class S and Class T2 Shares, and (2) dealer manager fees paid on a trailing basis at the rate of 0.55% per annum on the NAV of the outstanding Class A and Class I Shares (collectively, the "Trailing Fees"). The Trailing Fees are computed daily based on the respective NAV of each share class as of the beginning of each day and paid monthly. However, at each reporting date, the Company accrues an estimate for the amount of Trailing Fees that ultimately may be paid on the outstanding shares. Such estimate reflects the maximum amount of underwriting compensation that could be paid based on the amount of capital raised as of the reporting date for the primary portion of each separate public offering. Changes in this estimate will be recorded prospectively as an adjustment to additional paid-in capital. As of March 31, 2023 and December 31, 2022, the Company has accrued $18,287 and $18,307, respectively, in Trailing Fees to be payable in the future, which was included in due to affiliates on the consolidated balance sheets.

Revenue Recognition

In accordance with FASB Topic 842, Leases (ASC 842), and related ASU's that amended or clarified certain provisions of ASC 842, the Company elected a practical expedient to not separate lease and non-lease components of a lease and instead accounts for them as a single component if two criteria are met: (i) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same, and (ii) the lease component, if accounted for separately, would be classified as an operating lease. The Company has evaluated the lease and non-lease components within its leases under the practical expedient and reports rental and other property income and common area expense reimbursement income as a single component on the Company’s consolidated statements of operations.

Contractual base rental revenue from real estate leases is recognized on a straight-line basis over the terms of the related leases. The differences between contractual base rental revenue earned from real estate leases on a
12

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
straight-line basis and amounts due under the respective lease agreements are amortized or accreted, as applicable, to deferred rent receivable. Property related income will also include amortization of above- and below-market leases as well as amortization of lease incentives. Revenues relating to lease termination fees for the termination of an entire lease will be recognized at the time that a tenant’s right to occupy the leased space is terminated and collectibility is reasonably assured.

Under ASC 842, the future revenue stream from leases must be evaluated for collectibility. Pursuant to these provisions, if an entity has determined that the collectibility of substantially all future lease payments from a particular lease is not at least probable, then the entity must write off its existing receivable balances (except receivable amounts which are under dispute by the tenant), including any deferred rent amounts recognized on a straight-line basis, and instead begin recognizing revenue from such lease on cash basis. The factors used to evaluate the collectibility of future lease payments for each lease may include, but not be limited to, the tenant's payment history, current payment status, publicly available information about the financial condition of the tenant and other information about the tenant of which the entity may be aware. In addition, the Company may consider the impact of current macroeconomic conditions, such as inflation and recent increases in interest rates. As of March 31, 2023, the Company has assessed that substantially all of its future lease payments are at least probable of collection, except for one lease where the tenant executed a termination agreement on March 31, 2023.

To the extent the Company's revenues do not qualify for treatment under ASC 842 or under other specific guidance, the Company is required to recognize revenue in its financial statements in a manner that depicts the transfer of the promised goods or services to its customers in an amount that reflects the consideration to which the Company is entitled at the time of transfer of those goods or services. Such treatment may apply to other types of real estate related contracts, such as for dispositions or development of real estate.

Investment income from marketable securities is accrued at each distribution record date.

Net Earnings or Loss Per Share

Net earnings or loss per share is calculated using the two-class method. The two-class method is utilized when an entity (1) has different classes of common stock that participate differently in net earnings or loss, or (2) has issued participating securities, which are securities that participate in distributions separately from the entity’s common stock. Pursuant to the advisory agreement between the Company, the Operating Partnership and RREEF America (see Note 9), RREEF America may earn a performance component of the advisory fee which is calculated separately for each class of common stock which therefore may result in a different allocation of net earnings or loss to each class of common stock. In addition, the Company grants Class D Shares to its independent directors (see Note 10), which qualify as participating securities.

Risks and Uncertainties

As of March 31, 2023 and December 31, 2022, the Company had cash on deposit at multiple financial institutions which were in excess of federally insured levels. The Company limits significant cash holdings to accounts held by financial institutions with a high credit standing.

The Company is subject to various risks and uncertainties, including but not limited to interest rates, inflation and impacts from national or global events such as the Russia-Ukraine war, the COVID-19 pandemic or actual or perceived instability in the U.S. banking system. The extent to which any such conditions or events impact the Company's investments and operations is uncertain and cannot be predicted with confidence. Among the cash on hand, ongoing capital raise and availability under the Wells Fargo Line of Credit (as defined below), the Company endeavors to maintain sufficient liquidity at all times to satisfy its operational needs and the maximum quarterly limits on redemptions under its share redemption plan. In addition, if necessary, the Company may consider various
13

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
options, including reducing its distributions, selling its investments or limiting its share redemption program. Also see Note 10.

NOTE 3 — FAIR VALUE MEASUREMENTS
Fair value measurements are determined based on the assumptions that market participants would use in pricing an asset or liability. As a basis for considering market participant assumptions in fair value measurements, FASB ASC 820, Fair Value Measurement and Disclosures, establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity's own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy).
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are the unobservable inputs for the asset or liability, which are typically based on an entity's own assumption, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on input from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
The Company's investments in marketable securities are valued using Level 1 inputs as the securities are publicly traded on major stock exchanges.
The Company's investment in the CMBS Trust is valued using Level 2 inputs with the assistance of an independent valuation agent who may use broker-dealer quotations, reported trades and other observable market data. The independent valuation agent's discounted cash flow models for securities such as those issued by the CMBS Trust generally consider the attributes applicable to a particular class of the security (e.g., credit rating, seniority), current market data, estimated cash flows for each security and incorporate specific collateral performance, as applicable. The Company has elected to apply the measurement alternative under GAAP and measures both the financial assets and financial liabilities of the CMBS Trust it consolidates using the fair value of the financial liabilities, which it considers more observable than the fair value of the financial assets.
The following table details the Company’s assets and liabilities measured at fair value on a recurring basis.

14

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
March 31, 2023
Level 1Level 2Level 3Total
Assets
Investment in marketable securities$100 $ $ $100 
Real estate loans held in consolidated CMBS Trust, at fair value 1,157,536  1,157,536 
Total$100 $1,157,536 $ $1,157,636 
Liabilities
Bonds payable held in consolidated CMBS Trust, at fair value$ $1,125,910 $ $1,125,910 
December 31, 2022
Level 1Level 2Level 3Total
Assets
Investment in marketable securities$26,987 $ $ $26,987 
Real estate loans held in consolidated CMBS Trust, at fair value 1,156,263 $ 1,156,263 
Total$26,987 $1,156,263 $ $1,183,250 
Liabilities
Bonds payable held in consolidated CMBS Trust, at fair value$ $1,125,096 $ $1,125,096 
The fair value of the Company's line of credit and mortgage loans payable are determined using Level 2 and Level 3 inputs and a discounted cash flow approach with an interest rate, property valuation and other assumptions that estimate current market conditions. The carrying amount of the Company's line of credit, exclusive of deferred financing costs, at March 31, 2023 and December 31, 2022 approximated its fair value of $67,500 and $84,800, respectively. The Company estimated the fair value of the Company's mortgage loans payable at $180,348 and $179,710 as of March 31, 2023 and December 31, 2022, respectively, with the increase in fair value attributable to lower market interest rates and not due to valuation reductions for the encumbered properties. If the valuation of the Company's properties as of March 31, 2023 were significantly lower, the market interest rate assumption could be higher (due to higher loan-to-value ratios), potentially resulting in a significantly lower estimated fair value for these liabilities.
The fair value of the Company's note to affiliate is determined using Level 2 and Level 3 inputs and a discounted cash flow approach with an interest rate and other assumptions that estimate current market conditions. The Company has estimated the fair value of its note to affiliate at approximately $4,360 and $4,380 as of March 31, 2023 and December 31, 2022, respectively. The estimated market interest rate is impacted by a number of factors. Material changes in those factors may cause a material change to the estimated market interest rate, thereby materially affecting the estimated fair value of the note to affiliate. The Company has estimated the fair value of the note to affiliate in the middle of the range of reasonably estimable values.
The following shows certain information about the estimated fair value and the unobservable inputs for the Company's debt obligations as of March 31, 2023 and December 31, 2022.
15

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
Range
Fair Value at March 31, 2023Primary Valuation TechniquesSignificant Unobservable InputsMinimumMaximumWeighted Average
Line of Credit$67,500 Discounted cash flowLoan to value43.8 %43.8 %43.8 %
Market interest rate6.52 %6.52 %6.52 %
Mortgage Loans Payable180,348 Discounted cash flowLoan to value22.5 %56.0 %48.0 %
Market interest rate3.41 %6.41 %5.86 %
Note to Affiliate4,360 Discounted cash flowMarket interest rate6.50 %6.50 %6.50 %
Range
Fair Value at December 31, 2022Primary Valuation TechniquesSignificant Unobservable InputsMinimumMaximumWeighted Average
Line of Credit$84,800 Discounted cash flowLoan to value51.8 %51.9 %51.9 %
Market interest rate5.96 %5.96 %5.96 %
Mortgage Loans Payable179,710 Discounted cash flowLoan to value21.8 %55.0 %45.3 %
Market interest rate3.41 %6.40 %5.96 %
Note to Affiliate4,380 Discounted cash flowMarket interest rate6.50 %6.50 %6.50 %
The Company's financial instruments, other than those referred to above, are generally short-term in nature and contain minimal credit risk. These instruments consist of cash and cash equivalents, accounts and other receivables and accounts payable. The carrying amounts of these assets and liabilities in the consolidated balance sheets approximate their fair value.

NOTE 4 — REAL ESTATE INVESTMENTS
Shown below are details of the Company's investments in real estate.

March 31, 2023December 31, 2022
Land$135,082 $135,169 
Buildings and improvements, less accumulated depreciation of $48,371 and $45,734, respectively
257,242 259,429 
Furniture, fixtures and equipment, less accumulated depreciation of $1,851 and $1,665, respectively
2,288 2,443 
Acquired intangible lease assets, less accumulated amortization of $45,338 and $43,476, respectively
21,649 23,511 
Investment in real estate assets, net$416,261 $420,552 

16

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
The Company acquired no real estate property during the three months ended March 31, 2023 and 2022.

On January 12, 2023, the Company sold land and granted an easement over land to a state authority with a combined total area of approximately 0.4 acres from its Flats at Carrs Hill investment for approximately $657, before deducting closing costs.

NOTE 5 — RENTALS UNDER OPERATING LEASES

As of March 31, 2023, the Company owned 15 properties with a total of 62 commercial leases. As of March 31, 2022, the Company owned 15 properties with a total of 60 commercial leases. All leases at the Company's properties have been classified as operating leases. The Company's property related income from its real estate investments is comprised of the following:
Three Months Ended March 31,
20232022
Lease revenue 1
$10,598 $9,774 
Straight-line revenue 136 191 
Above- and below-market lease amortization, net2,460 204 
Lease incentive amortization(26)(26)
Property related income$13,168 $10,143 
(1) Lease revenue includes $1,523 and $1,366 of variable income from tenant reimbursements for the three months ended March 31, 2023 and 2022, respectively.
The future minimum rentals to be received, excluding tenant reimbursements, under the non-cancelable portions of all of the Company's in-place commercial leases in effect as of March 31, 2023 are as follows:
YearAmount
2023 - remainder of year$18,201 
202424,349 
202523,476 
202620,123 
202714,527 
Thereafter35,207 
$135,883 
The above future minimum rentals exclude the Company’s residential leases, which typically have terms of approximately one year. Such leases accounted for $2,923 of lease revenue for the three months ended March 31, 2023.
Percentages of property related income by property and tenant representing more than 10% of the Company's total property related income for the three months ended March 31, 2023 and 2022 are shown below.
17

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
Percent of property related income
PropertyThree Months Ended March 31, 2023Three Months Ended March 31, 2022
Terra Nova, Chula Vista, CA1
21.6 % %
The Glenn, Centennial, CO14.7 16.9 
Providence Square, Marietta, GA8.9 11.4 
Seattle East Industrial, Redmond, WA8.3 10.7 
Total53.5 %39.0 %
Percent of property related income
TenantThree Months Ended March 31, 2023Three Months Ended March 31, 2022
Bed Bath & Beyond, Inc - Terra Nova Plaza¹19.3 % %
FedEx Ground - Seattle East Industrial8.3 10.7 
Total27.6 %10.7 %
¹ In November 2022, Bed Bath & Beyond, Inc., a tenant at Terra Nova Plaza, informed the Company of its desire to close its store and early terminate its lease at Terra Nova Plaza as of March 2023. The Company executed the lease termination agreement on March 31, 2023 which is effective as of April 1, 2023, after which the Company is not entitled to any further revenue from this lease aside from a termination fee. Consequently, the Company accelerated recognition of the unamortized acquired below market lease intangible resulting in an increase in property related income of $2,342 for such amortization for the three months ended March 31, 2023.
The Company's only tenant representing more than 10% of in-place annualized base rental revenues as of March 31, 2023 and 2022 was as follows:
Percent of in-place annualized base rental revenues as of
PropertyMarch 31, 2023March 31, 2022
FedEx Ground - Seattle East Industrial10.9 %11.8 %
Total10.9 %11.8 %

NOTE 6 — MARKETABLE SECURITIES

The following is a summary of the Company's marketable securities held as of the dates indicated, which consisted entirely of publicly-traded shares of common stock in REITs as of each date.
March 31, 2023December 31, 2022
Marketable securities—cost$75 $25,679 
   Unrealized gains25 2,556 
   Unrealized losses (1,248)
Net unrealized gain25 1,308 
Marketable securities—fair value$100 $26,987 

Upon the sale of a particular security, the realized net gain or loss is computed assuming the shares with the highest cost are sold first. During the three months ended March 31, 2023 and 2022, marketable securities sold
18

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
generated proceeds of $30,481 and $10,779, respectively, resulting in gross realized gains of $4,493 and $1,505, respectively, and gross realized losses of $1,021 and $480, respectively.

NOTE 7 — CMBS TRUST
On October 27, 2022, the Company purchased all of the Class D certificates and certain interest-only certificates of CMBS securities through the CMBS Trust sponsored by Freddie Mac for a purchase price of approximately $30,855. The securities issued by the CMBS Trust are secured by mortgages on multifamily properties totaling approximately $1,224,000 of outstanding principal balance as of March 31, 2023. The Company consolidates the entire CMBS Trust as it determined the CMBS Trust is a VIE for which the Company is the primary beneficiary. However, the amount of the CMBS Trust's assets and liabilities can only be satisfied through the cash flows from the underlying loans which are managed and disbursed directly to the other certificate holders by the administrator of the securitization pool. Accordingly, the Company does not have any rights to those receivables nor any obligation to those other certificate holders.
The Company elected the fair-value measurement alternative under GAAP and thus carries the CMBS Trust's assets and liabilities at fair value in its consolidated balance sheets. The net amount of such consolidated assets and consolidated liabilities represents the Company's actual investment. The Company recognizes changes in the CMBS Trust's net assets, including changes in fair-value adjustments and net interest earned, in its consolidated statement of operations. With respect to the Company's consolidated statement of cash flows, the full gross amount of cash interest received from the CMBS Trust net of the full gross amount of cash interest paid to the other certificate holders of the CMBS Trust is contained within the cash flows from operating activities. In addition, payments of principal on a gross basis received by the CMBS Trust is included in cash flows from investing activities, while the payment of such principal on a gross basis to the other certificate holders is included within cash flows from financing activities.
The following table presents the Company's net investment in the CMBS Trust.
March 31, 2023December 31, 2022
Real estate loans held in consolidated CMBS Trust, at fair value$1,157,536 $1,156,263 
Bonds payable held in consolidated CMBS Trust, at fair value1,125,910 1,125,096 
Net investment in CMBS Trust, at fair value$31,626 $31,167 
NOTE 8 — NOTES PAYABLE

Wells Fargo Line of Credit

On February 27, 2018, the Company, as guarantor, and certain of the wholly owned subsidiaries of the Operating Partnership, as co-borrowers, entered into an amended and restated secured revolving credit facility (the “Former Wells Fargo Line of Credit”) with Wells Fargo Bank, National Association, as administrative agent, and other lending institutions that may become parties to the credit agreement. The Former Wells Fargo Line of Credit was scheduled to mature on February 27, 2023. The interest rate under the Former Wells Fargo Line of Credit was based on the 1-month, 2-month or 3-month LIBOR (at the Company's discretion) with a spread of 160 to 180 basis points depending on the debt yield as defined in the credit agreement. As of December 31, 2022, the outstanding balance was $84,800 and the weighted average interest rate was 5.96%.

On January 27, 2023, the Former Wells Fargo Line of Credit was amended and restated, thereby changing certain terms and provisions, including extending the maturity date to February 28, 2025 (the “Wells Fargo Line of Credit”). The Wells Fargo Line of Credit has a maximum capacity of $100,000 and is expandable by the Company up to a maximum capacity of $250,000 upon satisfaction of specified conditions. Each requested expansion must be
19

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
for at least $25,000 and may result in the Wells Fargo Line of Credit being syndicated. The interest rate under the Wells Fargo Line of Credit is based on the 30-day average of the secured overnight financing rate ("SOFR") with a spread of 200 or 225 basis points depending on the debt yield as defined in the agreement. As of March 31, 2023.the outstanding balance under the Wells Fargo Line of Credit was $67,500 and the weighted average interest rate was 6.52%.

At any time, the borrowing capacity under the Wells Fargo Line of Credit is based on the lesser of (1) an amount equal to 65% of the aggregate value of the properties in the collateral pool as determined by lender appraisals, (2) an amount that results in a minimum debt yield of 10% based on the in-place net operating income of the collateral pool as defined, or (3) the maximum capacity of the Wells Fargo Line of Credit. Proceeds from the Wells Fargo Line of Credit can be used to fund acquisitions, redeem shares pursuant to the Company's redemption plan and for any other corporate purpose. As of March 31, 2023, the Company's maximum borrowing capacity was $100,000.

The Wells Fargo Line of Credit agreement contains customary representations, warranties, borrowing conditions and affirmative, negative and financial covenants, including that there must be six properties in the collateral pool at all times, and that the collateral pool also meet specified concentration provisions, unless waived by the lender. In addition, the Company, as guarantor, must meet tangible net worth hurdles. The Company was in compliance with all financial covenants as of March 31, 2023.

The following is a reconciliation of the carrying amount of the Wells Fargo Line of Credit at March 31, 2023 and December 31, 2022.

Balance at
LenderMarch 31, 2023December 31, 2022
Wells Fargo$67,500 $84,800 
Deduct: Deferred financing costs, less accumulated amortization(626)(20)
Line of credit, net$66,874 $84,780 

Mortgage Loans

Certain wholly owned subsidiaries of the Company are obligors on various mortgage loans. Such mortgage loans contain fixed interest rates, allow for one-time transfer to another borrower subject to lender discretion and payment of applicable fees, and allow for full prepayment at certain times with payment of applicable penalties, if any. The following is a reconciliation of the carrying amount of the mortgage loans payable at March 31, 2023 and December 31, 2022.
20

Table of Contents    
RREEF PROPERTY TRUST, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
March 31, 2023
(Unaudited)
(in thousands, except share and per share data)
Balance at
LenderEncumbered PropertyMarch 31, 2023December 31, 2022Interest RateMaturity Date
Talcott Resolution Life Insurance CompanyCommerce Corner$11,861 $11,933 3.41 %December 1, 2023
Nationwide Life Insurance CompanyFlats at Carrs Hill14,500 14,500 3.63 March 1, 2026
State Farm Life Insurance CompanyElston Plaza17,067 17,149 3.89 July 1, 2026
Massachusetts Mutual Life Insurance CompanyThe Glenn