Black Creek Diversified Property Fund. Real Estate Holdings

Transcription

1 Black Creek Diversified Property Fund Real Estate Holdings AS OF JUNE 30, 2017

2 Risk Factors Past performance is not a guarantee of future results. Investing in real estate assets entails certain risks, including changes in: the economy, supply and demand, laws, tenant turnover, interest rates (including periods of high interest rates), availability of mortgage funds, operating expenses and cost of insurance. This investment will offer limited liquidity options to investors. Real estate investment trusts (REITs) are not suitable for all investors. Further, investing in Black Creek Diversified Property Fund (DPF) stock involves additional and substantial risks specific to DPF, including, among others, that: i. There is no public trading market for shares of DPF s common stock, and DPF does not expect that there will ever be a public trading market for its shares, so redemption of shares by them will likely be the only way to dispose of your shares. ii. DPF s redemption program imposes limits on redemptions. DPF may amend, suspend or terminate its share redemption program at any time. As a result, DPF s shares have only limited liquidity and may become illiquid. iii. The purchase and redemption price for shares of DPF s common stock will be generally based on the NAV of each class of common stock and will not be based on any public trading market. DPF s NAV will not represent DPF s enterprise value and may not accurately reflect the actual prices at which DPF s assets could be liquidated on any given day, the value a third party would pay for all or substantially all of DPF s shares, or the price that DPF s shares would trade at on a national stock exchange. The board of directors may amend DPF s NAV procedures from time to time. iv. Some of DPF s executive officers and directors and other key personnel are also officers, directors, managers, key personnel and / or holders of an ownership interest in its advisor, its dealer manager and / or other entities related to its advisor. As a result, they face conflicts of interest, including but not limited to conflicts arising from time constraints, allocation of investment opportunities and the fact that the fees its advisor will receive for services rendered to DPF will be based on DPF s NAV, the procedures for which its advisor will assist its board of directors in developing, overseeing, implementing and coordinating. v. If DPF fails to maintain its status as a REIT, it would adversely affect its results of operations and its ability to make distributions to its stockholders. vi. The amount of distributions DPF may make is uncertain, are not guaranteed and may be modified at the program s discretion. DPF may pay distributions from sources other than cash flow from operations including, without limitation, the sale of assets, borrowings or offering proceeds (including the return of principal amounts invested). The use of these sources for distributions would decrease the amount of cash DPF has available for new investments, repayment of debt, share redemptions and other corporate purposes, and could potentially reduce your overall return and dilute the value of your investment in shares of DPF common stock. For each year from 2012 through 2015 and for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, March 31, 2017 and June 30, 2017, distributions were funded solely from cash flow from operations. The distributions for the three months ended March 31, 2016 were funded 95.3% from cash flow from operations and 4.7% from other sources. vii. DPF s use of leverage increases the risk of loss on its investments. viii. The payment of fees by DPF to its advisor and its dealer manager will reduce the cash available for distribution and will increase the likelihood that investors are unable to recover the amount of their investment in DPF. ix. In connection with DPF s offering, it incurs fees and expenses. In particular, DPF expects to incur a dealer manager and distribution fee which are expected to reduce the amount of distributions received by certain investors and as a result will lower the overall return to such investors. Also, DPF has and expects to continue to incur organizational and offering related expenses which reduce the overall cash flow of DPF and negatively impact its NAV and could negatively impact your overall return. This material must be read in conjunction with the DPF prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. This document must be preceded or be accompanied by a prospectus, which contains important information about DPF. This is neither an offer to sell nor a solicitation of an offer to buy the securities described in the DPF prospectus. The offering is being made only by the DPF prospectus. Neither the Securities and Exchange Commission nor any other state securities regulator has approved or disapproved of the securities or determined if the prospectus is truthful or complete. In addition, the Attorney General of the State of New York has not passed on or endorsed the merits of the offering. Any representation to the contrary is unlawful. DPF is not an investment company registered under the Investment Company Act of Please be aware that DPF, Black Creek Diversified Property Advisors LLC, Black Creek Diversified Property Advisors Group LLC, Black Creek Capital Markets, LLC and their respective officers, directors, employees and affiliates are not undertaking to provide impartial investment advice or to give advice in a fiduciary capacity in connection with DPF s public offering or the purchase of DPF s common stock and that the Advisor and the Dealer Manager have financial interests associated with the purchase of DPF s common stock, as described in DPF s prospectus, including fees, expense reimbursements and other payments they anticipate receiving from DPF in connection with the purchase of DPF s common stock. These materials are not intended as a recommendation to make an investment in DPF s common stock and investors should consult their financial advisors before making an investment decision.

3 Black Creek Diversified Property Fund Overview Black Creek Diversified Property Fund (DPF) is a net asset value real estate investment trust or NAV REIT. Existing portfolio $2.3 billion portfolio 1 of high-quality real estate assets Disciplined Portfolio Construction Process DPF can invest across the property spectrum, including office, retail, industrial and multi-family in a single investment vehicle Access to Institutional-Quality Assets DPF provides individual investors the opportunity to invest in institutional-quality commercial real estate assets Solid Risk-Adjusted Performance 2 DPF has delivered solid absolute and risk-adjusted performance Investor-Aligned Structure DPF s advisor is compensated through management fees and a performance participating allocation based on total return. DPF s advisor is not compensated through acquisition, disposition, financing or development fees 1 As of June 30, DPF has produced higher risk-adjusted returns as measured by Sharpe Ratio since inception than equities, fixed income and public REITs. Sharpe Ratio measures the units of return per each unit of risk, with the higher the number the better the risk-adjusted returns. As of June 30, 2017, DPF s Sharpe Ratio was 4.36, compared to equities at 1.42, fixed income at 0.63 and public REITs at Past performance is no guarantee of future results.

4 Retail Holdings RETAIL Property Name Market Region Date Acquired Select Tenants 3 Gross Leasable Square Feet Bandera Road San Antonio, TX Southwest 2/1/2007 H-E-B Grocery, Office Depot 161,000 Beaver Creek Raleigh, NC Mid-Atlantic 5/11/2007 Office Max, PetSmart, A.C. Moore 143,000 Centerton Square Philadelphia, PA Northeast 5/11/2007 DSW Shoe Warehouse, TJ Maxx, Wegmans Food, Jo-Ann Stores, PetSmart, Bed Bath & Beyond, Burlington Coat Factory 426,000 CB Square Jacksonville, FL Southeast 6/27/2007 Mattress Firm, Panera Bread, Starbucks, Aldi s 73, Center Washington, D.C. Mid-Atlantic 4/6/2009 Home Depot, Best Buy, Nordstrom Rack 233,000 Shenandoah Square South Florida Southeast 8/6/2015 Publix, Walgreens, Dollar Tree, BP, BB&T 124,000 Chester Springs Metro New York Northeast 10/8/2015 Shoprite, Marshalls, Staples 223,000 Yale Village Tulsa, OK Southwest 12/9/2015 Whole Foods, CVS 101,000 Suniland South Florida Southeast 5/27/2016 Nicklaus Children s Hospital, CVS 82,000 New England Retail Portfolio (24 Properties) Greater Boston Northeast 2,172,000 Braintree Greater Boston Northeast 8/1/2007 Stop & Shop, CVS Holbrook Greater Boston Northeast 8/1/2007 Stop & Shop Kingston Greater Boston Northeast 8/1/2007 Big Y Food Manomet Greater Boston Northeast 8/1/2007 Stop & Shop, Dollar Tree Orleans Greater Boston Northeast 8/1/2007 Shaw's Market, CVS Sandwich Greater Boston Northeast 8/1/2007 Stop & Shop, CVS Wareham Greater Boston Northeast 8/1/2007 Stop & Shop, Tractor Supply, Sleepys Abington Greater Boston Northeast 8/1/2007 Stop & Shop Hyannis Greater Boston Northeast 8/1/2007 Stop & Shop Mansfield Greater Boston Northeast 8/1/2007 Stop & Shop Meriden Greater Boston Northeast 8/1/2007 Stop & Shop Weymouth Greater Boston Northeast 8/1/2007 Stop & Shop Whitman 475 Bedford Street Greater Boston Northeast 8/1/2007 Stop & Shop Brockton Eastway Plaza Greater Boston Northeast 8/1/2007 Grossman's Outlet, Dollar General Cohasset Greater Boston Northeast 8/1/2007 Curtis Liquors, CVS Brockton Westgate Plaza Greater Boston Northeast 8/1/2007 Marshalls, Texas Roadhouse, Aldi s, Chick-Fil-A Harwich Greater Boston Northeast 10/18/2007 Shaw s Market New Bedford Greater Boston Northeast 10/18/2007 Shaw's Market Norwell Greater Boston Northeast 10/18/2007 Stop & Shop Springdale Mall Greater Boston Northeast 2/18/2011 Stop & Shop, McDonald s Saugus Plaza Greater Boston Northeast 3/17/2011 Staples, Barnes & Noble, Five Below Durgin Square Greater Boston Northeast 5/28/2014 Shaw s Market, TJ Maxx, Homegoods Salt Pond Greater Boston Northeast 11/4/2014 Stop & Shop, Marshalls, Dollar Tree South Cape Greater Boston Northeast 3/18/2015 Roche Brothers, Marshalls, Walgreens, HomeGoods Retail Total 3,738,000 3 None of the tenants named above have endorsed DPF or its public offering. The names are included only for purposes of your evaluation of the quality of the tenant base of the properties owned and operated by DPF. Select tenants represent those tenants with the largest annualized base rent at each property.

5 Office Holdings Property Name Market Region Date Acquired OFFICE Select Tenants 3 Gross Leasable Square Feet Jay Street Silicon Valley Pacific 6/28/2006 Ambarella Corporation, NEC Corporation, Simco 143,000 Bala Pointe Office Centre Philadelphia, PA Northeast 8/28/2006 iheartmedia, Inc., Liberty Mutual, Alex s Lemonade Stand, Medtronic 174,000 Joyce Boulevard Fayetteville, AR Southwest 9/28/2007 Procter & Gamble 61,000 Eden Prairie Office Center Minneapolis, MN Midwest 10/3/2008 Alliant Techsystems 107,000 Austin-Mueller Health Center Austin, TX Southwest 12/23/2008 Seton Healthcare 156, Connecticut Washington, D.C. Mid-Atlantic 3/10/2009 IAM National Pension Fund, PFC Energy, Tiber Creek Group, Wells Fargo 126,000 Campus Road Office Center Princeton, NJ Northeast 11/3/2009 Novo Nordisk 167,000 Preston Sherry Plaza Dallas, TX Southwest 12/16/2009 Frost National Bank, Bank of the Ozarks, IBERIABANK 155,000 3 Second Street Metro New York Northeast 6/25/2010 Charles Schwab & Co. 594,000 Park Place East Bay, CA Pacific 6/25/ , Montgomery San Francisco, CA Pacific 11/7/2013 WeWork, Telmate, Redfin Corporation 263,000 1 st Avenue Plaza Denver, CO Mountain 8/22/2014 Madison Street Company, The Denver Foundation, Stewart Title Co. 262,000 Rialto Austin, TX Southwest 1/15/2015 Amica, Regus 155,000 City View Austin, TX Southwest 4/24/2015 Apple, Inc., Coherent Logix, Apollo Endosurgery 273,000 Venture Corporate Center South Florida Southeast 8/6/2015 EDP Holdings, Conroy Simberg Ganon, Costa Cruise Lines 253,000 Bank of America Tower South Florida Southeast 12/11/2015 Bank of America, Charles Schwab & Co, Zen Offices 109,000 Office Total 3,403,000 Industrial Holdings INDUSTRIAL Property Name Market Region Date Acquired Select Tenants 2 Gross Leasable Square Feet Shiloh Road Dallas, TX Southwest 12/21/2006 Flextronics 446,000 South Columbia Greater Louisville Mid-Atlantic 6/25/2010 Amazon.com 727,000 Industrial Total 1,173,000

6 Select Holdings Retail New England Retail Portfolio GREATER BOSTON, MA Property Summary The New England Retail Portfolio consists of 24 assets located in the Greater Boston metropolitan area. Totaling approximately 2.2 million square feet, the portfolio is leased to multiple tenants including Stop & Shop, TJ Maxx, Rite Aid, CVS and Shaw s Market. The combined purchase price was approximately $484 million. Stop & Shop more than 419 stores throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey 4 TJ Maxx more than 1,000 stores nationwide and a growing e-commerce presence 5 Rite Aid largest drugstore chain on the East Coast 6 CVS more than 9,700 retail drugstores nationwide 7 Shaw s Market operates 154 stores throughout New England, part of more than a 2,200 operation nationwide 8 Market Summary Over the last 30 years Boston s population has seen a steady incline of almost 10%. In 2010, Boston had close to 620,000 residents, marking an increase of 5% from the 2000 Census. Additionally, as of June 2017, the rate of unemployment for Boston is 3.8%, which was better than the national average of 4.4%. Boston s average income was 71% higher than the national average in 2015 at $78, Above average household incomes and increasing population and job growth bode well for Boston s retail market. Vacancies have consistently been below 5% since 1998 and are expected to be less than 3% through at least Strong construction forecasts are coupled with healthy absorption expectations, leaving the Boston retail market s supply and demand in equilibrium throughout the foreseeable future. Property Type Retail MA 90 Boston Portsmouth, NH NH Square Footage 2,172,000 square feet Percentage Leased (as of 06/30/17) Key Tenants 97.0% Stop & Shop, CVS, Rite Aid, Shaw s Market CT RI Saugus 1. Saugus Braintree Braintree Weymouth Cohasset Norwell Kingston Manomet Sandwich Harwich 17. Mansfield 9. Harwich 17. Whitman (2) 10. Orleans 10. Orleans 18. Salt 18. Mansfield Pond 11. Hyannis Springfield 19. Salt Pond 12. Wareham Meriden 20. Springfield 13. Holbrook 13. Hanover 21. Durgin 21. Meriden Square 14. Abington 14. Holbrook 22. South 22. Durgin Cape Square Village 15. Brockton 15. Abington (2) 23. South Cape Village 16. Brockton 16. Whitman (2) 4 Stopandshop.com, TJMaxx.TJX.com, Riteaid.com, CVSHealth.com, Shaws.com, Bureau of Labor Statistics, August CoStar Portfolio Strategy, August 2017.

7 Select Holdings Office 655 Montgomery SAN FRANCISCO, CA Property Summary 655 Montgomery is a Class-A office property located in the heart of San Francisco s Financial District. Totaling approximately 263,000 square feet, the building was 85% leased to 33 tenants at acquisition. The purchase price was approximately $109.7 million. Key tenants include: WeWork, an American company which provides shared workspace, community and services for entrepreneurs, freelancers, startups and small businesses Telmate, one of the fastest growing inmate telephone and communication systems providers in the United States and a leader in customer service and cutting-edge technologies including video visitation, secure messages, photosharing and facility investigator tools Redfin Corporation, a company of real estate agents and software engineers on a mission to make buying or selling a home a better experience Market Summary San Francisco is a world financial hub and the financial center of the western United States. More than 50% of the workforce has at least a college education and employment is 2% above prerecession highs. Unemployment as of June 2017 for the San Francisco metro was 3.4% compared to the national average of 4.4%. 11 The primary contributor to growth in the San Francisco area has been the continued increase in the technology sector. San Francisco has a compound annual growth rate (CAGR) of approximately 13% from San Francisco has a vast talent pool that should result in the city continuing to be an epicenter for tech companies for the foreseeable future. Property Type Square Footage Office 263,000 square feet 655 Montgomery Percentage Leased (as of 06/30/17) Key Tenants 83.7% WeWork, Telmate, Redfin Corporation 11 Bureau of Labor Statistics, August Marketwatch.com, March 2017.

8 Select Holdings Industrial South Columbia GREATER LOUISVILLE, KY Property Summary South Columbia is an industrial asset with approximately 727,000 leasable square feet located in Central Kentucky. The property is ideally situated with excellent access to I-65 and I-75. The acquisition cost was approximately $26.1 million. The property is 100% leased to Amazon.com, a leading internet-based retailer. Amazon.com owns 735 fulfillment, data centers and other properties in North America alone. In 2016, Amazon.com s total net sales were approximately $136 billion. 13 Property Type Industrial Square Footage 727,000 square feet Percentage Leased (as of 06/30/17) 100% Key Tenants Amazon.com Market Summary Kentucky is located at the center of a 34-state distribution area in the eastern United States, reaching more than 60% of the nation s population within a day s drive. The supply chain in Kentucky includes 19 interstates and major highways, major rail networks and barge traffic on the Ohio and Mississippi rivers. Also, located in Kentucky are two international airports and major shipping hubs, ranking the state third in the nation in total cargo. Kentucky exports totaled $29.2 billion for 2016, reaching approximately 200 countries. 14 Cincinnati / Northern Kentucky International Airport Louisville International Airport South Columbia 13 Amazon.com Annual Report, Census.gov, NOT A DEPOSIT l NOT FDIC INSURED l NOT GUARANTEED BY THE BANK l MAY LOSE VALUE l NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY Black Creek Capital Markets, LLC, Distributor Member FINRA th Street, 17th Floor Denver, CO REIT (7348) blackcreekdiversified.com blackcreekgroup.com BCDPF-RET-REHB-SEP17