Investment Philosophy

Dakota REIT’s investment objective is to generate attractive income and equity growth by investing in real esate assets across the Midwest.

Objective Approach Asset Types Market Characteristics Wealth Preservation 721 Exchange

Objective

To underwrite the cap rates of our acquisitions against expected cash flow in an effort to:

Generate an attractive level of current income for distribution

Preserve our shareholders' capital

Achieve long-term appreciation of the asset portfolio producing a compelling rate of return

Approach

Seek institutional grade properties across multiple asset types, tenant industries and geographies with the following characteristics:

Quality assets acquired at CAP rates with healthy 2-3% CAP rate spreads above the mortgage interest rate

Strong cash income quickly producing 7% or greater cash on cash returns based on today’s interest rates

Diversified and stable credit tenants

Ability, at purchase, to prudently leverage up to 75% of the property value to maximize capital efficiency noting our overall debt to market cap ratio target is between 55% - 65%

Asset Types

Actively grow multi-family and industrial/flex investments

Forge new development alliances to methodically increase allocation of multifamily within our portfolio

Strategic exposure to grocery-anchored and necessity-based neighborhood shopping centers

Limited exposure to suburban Class A and B office buildings and “Power Centers” anchored by Big Box retail

Market Characteristics

Focus on select growth markets in the Midwest states that exhibit the strongest economic growth and investment characteristics over time:

Follow the jobs of top renters (young adults and retirees)

Growing Populations indicated by above average employment, job growth and expansion

Rising Household Incomes and history of healthy consumer spending

Diverse economies with jobs spread across industries and employers

Ability to weather challenges and remain an employers’ market

Investment By Market

Fargo-Moorhead 38%

Twin Cities 15%

Bismarck 13%

Sioux Falls 11%

Des Moines 7%

Omaha 6%

Aberdeen 6%

Small Market 3%

Williston 0.3%

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Why Invest with Dakota REIT

We remain committed to Dakota REIT’s long-term strategy and core principles, which has driven superior investment returns for our shareholders throughout our history. The key tenets of our core principles and business strategies are:

Patient investors for over 24 years, with intent for long-term hold of our properties.

Diversified portfolio by asset type and tenant industry across growth markets in the upper Midwest.

Data & value-driven investors with an objective to underwrite the capitalization (CAP) rates of our acquisitions against expected cash flow.

Regional focus investing in growth markets and leveraging the expertise we have in our Trustees. This enables us to plan, think and act locally.

Remain a private REIT where we avoid the volatility inherent in publicly traded stocks through stable valuation.