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Dividend Capital Fund Reports Fourth Quarter Financials, Schedules Earnings Call

Dividend Capital Diversified Property Fund Inc., a publicly registered daily NAV REIT (NASDAQ: ZDPFAX; ZDPFEX; ZDPFIX; ZDPFWX) reported its financial results for the fourth quarter of 2016.

Financial Results

GAAP net income for the fourth quarter 2016 totaled $3.4 million, or $0.02 per basic and diluted share, compared to approximately $776,000, or $0.00 per basic and diluted share during the same period last year.

GAAP net income for 2016 was $55 million, or $0.31 per basic and diluted share, compared to 2015 when net income totaled $131.7 million, or $0.70 per basic and diluted share.

Funds from operations for the fourth quarter was $21.2 million, or $0.13 per basic and diluted share, compared to $22.8 million, or $0.13 per basic and diluted share, for the fourth quarter of 2015.

FFO for 2016 was $87.4 million, or $0.51 per basic and diluted share, compared to $92 million, or $0.49 per basic and diluted share in 2015.

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.

Shareholder return was 2.46 percent for the fourth quarter and 6.35 percent for the year. For the three years ended December 31, 2016, annualized shareholder return was 8.10 percent or 26.33 percent cumulative.

The company noted that class A, class W, and class I shareholders had lower total returns due to up-front sales commissions and/or class-specific expenses.

Portfolio Overview

As of December 31, 2016, the company’s 9 million-square-foot portfolio consisted of 55 operating properties located in 20 geographic markets in the United States. As of December 31, 2016, the properties were approximately 91.2 percent leased and had an estimated value of approximately $2.3 billion.

The REIT’s leverage ratio was 45.9 percent as of December 31, 2016, and the weighted average interest rate of its borrowings was 3.4 percent.

Disposition Activity

During the fourth quarter, the company sold one building from a multi-building grocery-anchored retail property located in the Greater Boston area for $6.2 million.

Portfolio and Leasing Summary

During the fourth quarter, net operating income for all operating properties acquired prior to January 1, 2015 and owned through December 31, 2016 decreased 3.7 percent, compared to last quarter. Year-over-year, net operating income decreased 1.3 percent.

When GAAP adjustments are excluded, same-store NOI decreased 2.5 percent compared to the third quarter of 2016, and increased 1.3 percent when compared to the same quarter in 2015.

The overall portfolio was 91.2 percent leased, as of December 31, 2016, compared to 91.5 last quarter and 90.1 percent year-over-year. Same-store was 91 percent leased at December 31, 2016, compared to 91.4 percent last quarter and 92.1 percent year-over-year.

Webinar and Portfolio Update Call Information

Dividend Capital Diversified Property Fund will host a webinar/portfolio update call to review fourth quarter 2016 performance results on March 15, 2017, at 2:15 p.m. U.S. Mountain Time. Information to access the call is as follows:

Dial-in Number: 800.274.0251

Conference ID: 2242504

To access the live webinar please visit the investor relations page on the company’s website.

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 $114.6 million from the sale of approximately 15.4 million shares.

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