Dividend Capital Diversified Property Fund Reports First Quarter Financial Results
Dividend Capital Diversified Property Fund Inc., a public reporting daily NAV REIT (NASDAQ: ZDPFAX; ZDPFEX; ZDPFIX; ZDPFWX) reported its financial results for the first quarter ended March 31, 2017.
Financial Results for the First Quarter of 2017
Net income according to generally accepted accounting principles for the first quarter of 2017 was $1.8 million, or $0.01 per basic and diluted share. This compares to GAAP net income, year-over-year, of $48.2 million, or $0.27 per basic and diluted share.
NAREIT-defined funds from operations was $19.7 million the first quarter of 2017, or $0.12 per basic and diluted share. This compares to FFO for the first quarter of 2016 of $26.1 million, or $0.15 per basic and diluted share.
Portfolio and Leasing Summary
As of March 31, 2017, the company’s portfolio consisted of 55 operating properties located in 20 geographic markets in the United States, totaling approximately 9 million square feet. The properties were 87.8 percent leased to approximately 520 tenants and had an estimated fair value of approximately $2.3 billion.
DPF’s leverage ratio, based on the fair value of its investments, was 47.7 percent as of March 31, 2017. The weighted average stated interest rate of DPF’s borrowings was 3.2 percent as of March 31, 2017.
During the first quarter of 2017, net operating income for all operating properties that were acquired prior to January 1, 2016 and owned through March 31, 2017 decreased 4.4 percent compared to the quarter ended December 31, 2016, and decreased 6.4 percent when compared to the same quarter in 2016.
The company noted that the decrease in same-store NOI was primarily a result of the expiration of its lease with Sybase Inc. in January 2017, a 405,000-square-foot lease with our second largest tenant as of December 31, 2016. Excluding Sybase, same-store NOI increased 5.0 percent compared to the quarter ended December 31, 2016 and increased 0.4 percent when compared to the same quarter in 2016.
When GAAP adjustments are excluded, same-store NOI decreased 7.4 percent compared to the quarter ended December 31, 2016, and decreased 7.1 percent when compared to the same quarter in 2016. When Sybase and GAAP adjustments are excluded, Same-Store NOI increased 4.0 percent compared to the quarter ended December 31, 2016 and increased 3.2 percent when compared to the same quarter in 2016.
The overall portfolio percentage leased was 87.8 percent as of March 31, 2017, compared to 91.2 percent on December 31, 2016 and 90.2 percent on March 31, 2016. Same-store percentage leased was 87.8 percent at March 31, 2017, compared to 91.1 percent at December 31, 2016 and 92.8 percecnt at 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, 2017, was as follows for the indicated timeframe:
• Quarter ended March 31, 2017: 0.55%
• Twelve months ended March 31, 2017: 7.22%
• Three years ended March 31, 2017 (annualized): 7.68% (24.90% cumulative)
• Since NAV share class inception2 (annualized): 7.99% (41.32% cumulative)
Class A, Class W, and Class I shareholders had lower total returns due to up-front sales commissions and/or class-specific expenses.
Portfolio Update Call Information
DPF will host a portfolio update call to review first quarter 2017 performance results and financial metrics on May 17, 2017, at 2:15 p.m. U.S. Mountain Time. Information to access the call is as follows:
Date: Wednesday, May 17, 2017
Time: 2:15 p.m. MT/4:15 p.m. ET
Dial-in Number: 800.263.0877
Conference ID: 3500451
Dividend Capital Diversified Property Fund, based in Denver, Colorado, invests in a diversified portfolio of commercial real estate assets. The company’s original offering went effective in January 2006 and has raised more than $2.3 billion in investor equity through multiple follow-on offerings. The latest offering was declared effective in September 2015 and has raised approximately $117.6 million from the sale of approximately 15.8 million shares. The company owned 55 properties with a fair value of approximately $2.3 billion, as of March 31, 2017.
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