Royal Oak sees RIA rotation back to income-focused real estate from private credit
XLRE•Selective rotation favors cash-flow stability
The rotation was described as selective, favoring modest leverage, mission-critical cash flows, and structures that avoid promising liquidity mismatched to assets.
Royal Oak says its industrial strategy could benefit
Royal Oak positioned its single-tenant, small-to-mid industrial strategy as a beneficiary, citing a $1 billion platform.
RIA alternatives shift back toward income-focused real estate
Royal Oak flagged an emerging shift in RIA alternatives allocations toward income-oriented real estate, reversing a three-year tilt to private credit.
Nontraded BDC stress was highlighted, with rising defaults, nonaccrual rates above 2023 selloff peaks, and returns compressing from 10%+ to about 7%.
Royal Oak cited redemption pressure at large nontraded BDCs, with requests exceeding quarterly repurchase caps, echoing prior real estate gating dynamics.
