Black Creek Diversified Property Fund Inc., a publicly registered NAV-based perpetual life REIT formerly known as Dividend Capital Diversified Property Fund, has updated the monthly per share net asset values for its Class T, Class S, Class D, Class I, and Class E common stock, as of September 30, 2020.
As of September 30, 2020, the REIT valued all of its shares, as well as its OP units, at $7.5234 each, representing a slight increase over last month’s estimated NAV per share of $7.5097.
The NAV per share is based on the estimated value of the company’s assets, less the estimated value of its liabilities divided by the number of outstanding shares, all as of September 30, 2020. Altus Group U.S. Inc., a third-party firm, assisted with the valuation process.
Black Creek Diversified Property Fund also provided a COVID-related update on its property portfolio, which is currently 92.5 percent leased with a weighted average lease term of five years.
Rent collections increased from 95.5 percent in August to 97.2 percent before forbearance and 98.7 percent after, one of its higher monthly collection percentages since the onset of the pandemic.
The REIT noted that the most meaningful increase in rent collections was associated with its retail portfolio, from 86.3 percent in the second quarter to 94.9 percent in the third quarter, before factoring in rent deferral agreements (or to 98.4 percent including retail rent deferral agreements).
The company indicated that this is largely driven by the fact that all of its retail tenants are open for business, with increasing traffic counts, resulting in a “dramatic drop” in rent deferral requests in the third quarter 2020.
Black Creek Diversified Property Fund’s total return for the third quarter was 1.54 percent, comprised of quarterly distributions totaling $0.09375 per share, which equate to an annualized yield of 4.98 percent. The trailing one-year total return is 7.58 percent and its annualized return since inception is 6.66 percent.
“The primary driver of our positive [third quarter 2020] performance was the continued resilience of income being generated from our portfolio,” the REIT stated in a letter to shareholders. “In addition, positive leasing activity and other market factors led to appreciation at certain properties, which was partially offset by tapered leasing and market rent growth expectations at other properties in light of continued market impacts from COVID, thus highlighting the benefits of a diversified investment strategy.”
As of September 30, 2020, Black Creek Diversified Property Fund owned a portfolio comprised of 52 properties valued in excess of $2.3 billion. The REIT launched in January 2006 and has raised nearly $2.5 billion, as of August 2020.