Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - Black Creek Diversified Property Fund Inc. | dvcv-8k_051316.htm |
| EX-99.2 - PORTFOLIO PERFORMANCE AND OPERATIONAL REVIEW - Black Creek Diversified Property Fund Inc. | ex99-2.htm |
Dividend Capital Diversified Property Fund Inc. 8-K
Exhibit 99.1
dividend capital DIVERSIFIED PROPERTY FUND
Provides First quarter 2016 Portfolio update
-0.25% total shareholder return for the quarter; 5.7% total shareholder return for the last twelve months1
Disposed three assets for a total of $186 million and approximately 880,000 square feet
Repaid approximately $74 million of secured borrowings with a weighted average interest rate of approximately 6.2%; subsequent to quarter end repaid an additional $79 million of secured borrowings with a weighted average interest rate of approximately 6.0%
DENVER – May 13, 2016— Dividend Capital Diversified Property Fund Inc. (“DPF”), a public reporting, daily NAV REIT (NASDAQ: ZDPFAX; ZDPFEX; ZDPFIX; ZDPFWX) reported results today for the first quarter ended March 31, 2016.
Total Shareholder Return
Total shareholder return, which represents the compound annual rate of return assuming reinvestment of all dividend distributions before the impact of up-front sales commissions and class-specific expenses as of March 31, 2016, was as follows for the indicated timeframe:
| · | Year-to-date ended March 31, 2016: | -0.25% |
| · | Twelve months ended March 31, 2016: | 5.72% |
| · | Three years ended March 31, 2016 (annualized): | 7.88% (25.59% cumulative) |
| · | Since NAV share class inception2 (annualized): | 8.21% (31.80% cumulative) |
Class A, Class W, and Class I shareholders had lower total returns than those set forth above due to up-front sales commissions and/or class-specific expenses.
Portfolio Overview
As of March 31, 2016, DPF’s portfolio consisted of 57 operating properties located in 20 geographic markets in the United States, aggregating approximately 9.3 million square feet. As of March 31, 2016, DPF’s real property portfolio was approximately 90.2% leased to approximately 530 tenants. These properties had an estimated fair value of approximately $2.2 billion (calculated in accordance with DPF’s valuation procedures), including:
| · | 17 office properties located in 13 geographic markets, aggregating approximately 3.6 million net rentable square feet, with an aggregate fair value amount of approximately $1.2 billion; |
1 All returns figures exclude up-front sales commissions and class-specific expenses
2 Measured from September 30, 2012
| · | 34 retail properties located in nine geographic markets, aggregating approximately 3.8 million net rentable square feet, with an aggregate fair value amount of approximately $951.7 million; and |
| · | Six industrial properties located in three geographic markets, aggregating approximately 1.9 million net rentable square feet, with an aggregate fair value amount of approximately $85.7 million. |
DPF’s leverage ratio, based on the fair value of its investments, was 42% as of March 31, 2016.
Disposition Activity
During the quarter ended March 31, 2016, DPF sold Colshire Drive, an office property located in Washington, DC for $158.4 million, 40 Boulevard, an office property located in Chicago, IL for $9.9 million, and Washington Commons, an office property located in Chicago, IL for $18.0 million, each to an unrelated third party.
Portfolio and Leasing Summary
During the first quarter, same-store net operating income increased 2.8% compared to the quarter ended December 31, 2015, and decreased 6.3% when compared to the same quarter in 2015. When generally accepted accounting principles (“GAAP”) adjustments are excluded, same-store net operating income increased 3.2% compared to the quarter ended December 31, 2015, and decreased 4.4% when compared to the same quarter in 2015.
During the first quarter, DPF signed 30 leases for approximately 76,000 square feet. On a comparable space basis, DPF signed 18 leases for approximately 50,000 square feet. The average growth in rents, on a GAAP basis, for the comparable leases signed in the first quarter was 41.7%. For the twelve months ended March 31, 2016, DPF signed 163 leases for approximately 884,000 square feet. On a comparable basis, DPF signed 118 leases for approximately 642,000 square feet. The average growth in rents, on a GAAP basis, for the comparable leases signed in the last twelve months was 27.7%.
The overall portfolio percentage leased was 90.2% as of March 31, 2016, compared to 90.1% on December 31, 2015 and 89.5% on March 31, 2015. Same-store percentage leased was 89.3% at March 31, 2016, compared to 88.9% at December 31, 2015 and 89.7% at March 31, 2015.
Financial Results for the quarter ended December 31, 2015
Company-Defined Funds from Operations (“FFO”) for the quarter ended March 31, 2016 were $22.0 million, or $0.12 per basic and diluted share. This compares to FFO for the quarter ended March 31, 2015 of $26.9 million, or $0.14 per basic and diluted share.
GAAP net income for the quarter ended March 31, 2016 was $48.2 million, or $0.27 per basic and diluted share. This compares to a GAAP net income for the quarter ended March 31, 2015 of $132.2 million, or $0.69 per basic and diluted share.
Non-GAAP Supplemental Financial Measure
DPF computes its financial results in accordance with GAAP. Below, DPF has provided reconciliations of both Company-Defined FFO and net operating income, which are both non-GAAP supplemental financial measures, to the most directly comparable GAAP measures (amounts in thousands, except per share information). For more information about Company-Defined FFO and net operating income (“NOI”), including why management believes both measures provide useful information, please see the Portfolio Performance and Operational Review furnished with this press release on Form 8-K filed with the SEC on May 13, 2016, available on DPF’s website, www.dividendcapitaldiversified.com, and the SEC’s website, www.sec.gov.
| Three Months Ended | ||||||||
| March 31, 2016 | March 31, 2015 | |||||||
| ($ in thousands, except per share data) | ||||||||
| Reconciliation of net earnings to FFO: | ||||||||
| Net income attributable to common stockholders | $ | 43,782 | $ | 123,583 | ||||
| Add (deduct) NAREIT-defined adjustments: | ||||||||
| Depreciation and amortization expense | 19,835 | 20,815 | ||||||
| Gain on disposition of real property | (41,400 | ) | (128,667 | ) | ||||
| Impairment of real property | 587 | 1,400 | ||||||
| Noncontrolling interests’ share of adjustments | 1,376 | 6,810 | ||||||
| FFO attributable to common shares-basic | $ | 24,180 | $ | 23,941 | ||||
| FFO attributable to dilutive OP units | 1,878 | 1,662 | ||||||
| FFO attributable to common shares-diluted | $ | 26,058 | $ | 25,603 | ||||
| FFO per share-basic and diluted | $ | 0.15 | $ | 0.13 | ||||
| Reconciliation of FFO to Company-Defined FFO: | ||||||||
| FFO attributable to common shares-basic | $ | 24,180 | $ | 23,941 | ||||
| Add (deduct) our adjustments: | ||||||||
| Acquisition-related expenses | 51 | 425 | ||||||
| (Gain) loss on extinguishment of debt and financing commitments | (5,136 | ) | 896 | |||||
| Unrealized (gain) loss on derivatives | — | 11 | ||||||
| Noncontrolling interests’ share of our adjustments | 1,326 | (86 | ) | |||||
| Company-Defined FFO attributable to common shares-basic | $ | 20,421 | $ | 25,187 | ||||
| Company-Defined FFO attributable to dilutive OP units | 1,586 | 1,749 | ||||||
| Company-Defined FFO attributable to common shares-diluted | $ | 22,007 | $ | 26,936 | ||||
| Company-Defined FFO per share-basic and diluted | $ | 0.12 | $ | 0.14 | ||||
| Weighted average number of shares outstanding | ||||||||
| Basic | 163,954 | 179,317 | ||||||
| Diluted | 176,690 | 191,766 | ||||||
| Three Months Ended | ||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | ||||||||||
| ($ in thousands, except per share data) | ||||||||||||
| Reconciliation of NOI to net earnings: | ||||||||||||
| Same-store NOI – cash basis | $ | 30,889 | $ | 29,930 | $ | 32,310 | ||||||
| NOI – cash basis – 2015/2016 Acquisitions/Dispositions | 8,315 | 8,967 | 11,891 | |||||||||
| NOI – cash basis | $ | 39,204 | $ | 38,897 | $ | 44,201 | ||||||
| Straight line rent | (240 | ) | (291 | ) | (356 | ) | ||||||
| Net amortization of above- and below-market lease assets and liabilities, and other non-cash adjustments to rental revenue | 262 | 187 | 405 | |||||||||
| NOI | $ | 39,266 | $ | 38,793 | $ | 44,250 | ||||||
| Debt related investments | 238 | 1,328 | 3,203 | |||||||||
| Real estate depreciation and amortization expense | (19,835 | ) | (21,710 | ) | (20,815 | ) | ||||||
| General and administrative expenses | (2,621 | ) | (2,564 | ) | (2,735 | ) | ||||||
| Advisory fees, related party | (3,765 | ) | (4,062 | ) | (4,299 | ) | ||||||
| Acquisition-related expenses | (51 | ) | (1,385 | ) | (425 | ) | ||||||
| Impairment of real estate property | (587 | ) | — | (1,400 | ) | |||||||
| Interest and other income | 58 | 693 | 632 | |||||||||
| Interest expense | (10,961 | ) | (11,301 | ) | (13,981 | ) | ||||||
| Gain (loss) on extinguishment of debt and financing commitments | 5,136 | — | (896 | ) | ||||||||
| Gain on sale of real property | 41,400 | 984 | 128,667 | |||||||||
| Net income attributable to noncontrolling interests | (4,456 | ) | (46 | ) | (8,618 | ) | ||||||
| Net income (loss) attributable to common stockholders | $ | 43,782 | $ | 730 | $ | 123,583 | ||||||
Webinar and Portfolio Update Call Information
DPF will host a webinar/portfolio update call to review first quarter 2016 performance results and financial metrics on May 18, 2016, at 2:15 p.m. U.S. Mountain Time. Information to access the call is as follows:
Date:
Wednesday, May 18, 2016
Time: 2:15 p.m. MT/4:15 p.m. ET
Dial-in Number: 877.742.5590
Conference ID: 96351123
To access the live webinar please visit the Investor Relations page at DPF’s website, www.dividendcapitaldiversified.com.
The webinar replay will be posted when available on the Investor Relations page of DPF’s website.
About Dividend Capital Diversified Property Fund
Dividend Capital Diversified Property Fund is a public reporting, daily NAV vehicle based in Denver, CO that invests in a diversified portfolio of commercial real estate assets. DPF owned 57 properties totaling approximately 9.3 million square feet in 20 geographic markets as of March 31, 2016. More information is available at www.dividendcapitaldiversified.com.
Forward-Looking Information
This material may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “expect(s),” “could,” “should,” and “continue” and similar statements are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results that are materially different than those described in the forward-looking statements. Dividend Capital Diversified Property Fund cannot give assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Dividend Capital Diversified Property Fund’s expectations include, but are not limited to, the uncertainty of funding Dividend Capital Diversified Property Fund’s future capital needs, delays in the acquisition, development, and construction of real properties, changes in economic conditions generally and the real estate and securities markets specifically, and other risks detailed from time to time in Dividend Capital Diversified Property Fund’s Securities and Exchange Commission reports, particularly the section entitled “Risk Factors” in Item 1A of Dividend Capital Diversified Property Fund’s Annual Report on Form 10-K. Such forward-looking statements pertain only as of the date of this press release. Dividend Capital Diversified Property Fund expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Dividend Capital Diversified Property Fund’s expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.
Contact
Eric Paul
Dividend Capital
(303) 228-2200