Dividend Capital Diversified Property Fund Reports Third Quarter 2016 Earnings

Dividend Capital Diversified Property Fund Inc., a publicly registered daily NAV real estate investment trust (NASDAQ: ZDPFAX; ZDPFEX; ZDPFIX; ZDPFWX), reported results for the third quarter of 2016.

Financial Results for the Three and Nine Months Ended September 30, 2016

Net income for the third quarter of 2016 was $3.3 million, compared to a net loss for the quarter ended September 30, 2015 of $1.4 million.

Net income for the nine months ended September 30, 2016 was $51.7 million, compared to a net income for the nine months ended September 30, 2015 of $130.9 million.

Funds from operations for the third quarter of 2016 was $23.4 million, compared to FFO for the quarter ended September 30, 2015 of $21.8 million.

FFO for the nine months ended September 30, 2016 was $66.2 million, compared to FFO for the nine months ended September 30, 2015 of $69.2 million.

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 September 30, 2016, was as follows for the indicated timeframe:

• Quarter ended September 30, 2016: 2.60%

• Year-to-date ended September 30, 2016: 3.81%

• Twelve months ended September 30, 2016: 5.80%

• Three years ended September 30, 2016 (annualized): 8.02% (26.06% cumulative)

• Since NAV share class inception (annualized): 8.22% (37.16% 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 September 30, 2016, the company’s portfolio consisted of 55 operating properties located in 20 geographic markets in the United States, totaling approximately 9 million square feet. As of September 30, 2016, DPF’s real property portfolio was approximately 91.5 percent leased to approximately 540 tenants. These properties had an estimated fair value of approximately $2.3 billion.

The REIT’s leverage ratio, based on the fair value of its investments, was 46 percent as of September 30, 2016, and the weighted average stated interest rate of DPF’s borrowings was 3.2 percent.

Disposition Activity

During the quarter, Dividend Capital Diversified Property Fund sold Rockland 360-372 Market, a retail property located in Greater Boston for $3.6 million; 6900 Riverport, an industrial property located in Louisville, Kentucky for $5.4 million; and Sunset Hills, an office property located in Washington, DC for $18.6 million, each to an unrelated party.

Portfolio and Leasing Summary

During the third quarter, net operating income for all operating properties that were acquired prior to January 1, 2015 and owned through September 30, 2016 decreased 0.6 percent compared to last quarter, and increased 1.9 percent when compared to the same quarter in 2015.

When GAAP adjustments are excluded, same-store NOI increased 0.2 percent compared to the quarter ended June 30, 2016, and increased 3.7 percent when compared to the same quarter in 2015.

The overall portfolio percentage leased was 91.5 percent as of September 30, 2016, compared to 90.2 percent on June 30, 2016 and 88.8 percent on September 30, 2015. Same-store percentage leased was 91.2 percent at September 30, 2016, compared to 92.6 percent at June 30, 2016 and 90.5 percent at September 30, 2015.

Webinar and Portfolio Update Call Information

Dividend Capital Diversified Property Fund will host a webinar/portfolio update call to review third quarter 2016 performance results and financial metrics on November 17, 2016, at 2:15 p.m. U.S. Mountain Time. Information to access the call is as follows:

Date: Thursday, November 17, 2016

Time: 2:15 p.m. MT/4:15 p.m. ET

Dial-in Number: 877.742.5590

Conference ID: 44767389

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.

Dividend Capital Diversified Property Fund, based in Denver, Colorado, invests in a diversified portfolio of commercial real estate assets. The company went effective in January 2006 and has raised more than $2 billion in investor equity since inception.

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