Why Invest in Black Creek Diversified Property Fund (DPF)?
- $2.3 billion portfolio1 of high-quality real estate assets
Disciplined Portfolio Construction Process
- DPF can invest accross 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 Performance2
- DPF has delivered solid absolute and risk-adjusted performance
- 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
- Perpetual life, non exchange traded real estate investment trust (REIT)
- Generally, equal to most recently published net asset value (NAV) per share for each share class, plus applicable selling commissions and dealer manager fees
- NAV published within 15 days of month end, and available on blackcreekdiversified.com and in prospectus supplements
Subscription / NAV Frequency
- Subscription agreements accepted throughout the month
- Purchases effective as of the first calendar day of each month (subscription requests must be received at least five business days prior to the first calendar day of the month)
Distribution Reinvestment Plan6
Minimum Initial Investment7
- $1,000,000 for Class I (unless waived)
- Either (1) a net worth of at least $250,000 or (2) a gross annual income of at least $70,000 and a net worth of at least $70,000
- Certain states have additional suitability standards. See the prospectus for more information
- Monthly redemptions will be made at the transaction price, which is generally equal to prior month’s NAV
- Shares not held for at least one year will be redeemed at 95% of that month’s transaction price
- Overall limit on net redemptions of 5% of aggregate NAV per calendar quarter
- Redemption requests must be received in good order by the second to last business day of the applicable month
- DPF is not obligated to redeem any shares and may choose to redeem only some, or even none, of the shares that have been requested to be redeemed in any particular month in its discretion
- The redemption program is subject to other limitations and DPF’s board may modify, suspend or terminate the plan
- Form 1099-DIV
|Share-Class Specific Fees|
|Class T8||Class S8||Class D||Class I|
|Availability||Through transactional / brokerage accounts||Through fee-based (wrap) programs, registered investment advisors and other institutional and fiduciary accounts|
|Up-front Selling Commission||Up to 3.00%||Up to 3.5%||None||None|
|Up-front Dealer Manager Fee||Up to 0.50%||None||None||None|
|Annual Distribution Fee (trailing commission)||0.85%||0.85%||0.25%||None|
|Management Fee||1.10% per annum of NAV, payable monthly|
|Performance Participation Allocation||12.5% of the annual total return, subject to a 5% hurdle amount and a high-water mark|
1 As of June 30, 2017.
2 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.
3 Terms summarized are for informational purposes and qualified in their entirety by the more detailed information set forth in the DPF prospectus.
4 DPF may offer shares at a price that it believes reflects the NAV per share of such stock more appropriately than the prior month’s NAV per share, including by updating a previously disclosed offering price, in cases where it believes there has been a material change (positive or negative) to DPF’s NAV per share since the end of the prior month.
5 The amount of distributions DPF may make is uncertain, is not guaranteed, may be modified at the program’s discretion, and is subject to board approval. 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. Because borrowed funds were used to pay distributions, the distribution rate may not be sustainable. Prior to 2012, DPF’s distributions have historically exceeded its cash flow from operations. However, 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.
6 Stockholders will automatically become a participant in DPF’s distribution reinvestment plan unless the stockholder is a resident of a state that prohibits automatic enrollment, is a client of a participating broker dealer that does not permit automatic enrollment in the distribution reinvestment plan, or the stockholder elects not to become a participant by noting such election on their subscription agreement. If a stockholder is a resident of a state prohibiting automatic enrollment, or a client of a participating broker dealer that does not permit automatic enrollment in the distribution reinvestment plan, the stockholder may choose to enroll as a participant in DPF’s distribution reinvestment plan. As a participant, the cash distributions attributable to the class of shares that the stockholder owns will automatically be reinvested in additional shares of the same class. The cash distributions the stockholder receives will be reinvested in shares of DPF’s common stock at the transaction price in effect on the distribution date. However, DPF’s board of directors may determine, in its sole discretion, to have any distributions paid in cash without notice to participants, without suspending the plan and without affecting the future operation of the plan with respect to participants. DPF’s board of directors may amend, suspend or terminate the distribution reinvestment plan in its discretion at any time upon 10 days’ notice to stockholders. DPF may provide notice by including such information (a) in a Current Report on Form 8-K or in its annual or quarterly reports, all publicly filed with the Commission or (b) in a separate mailing to the participants. Following any termination of the distribution reinvestment plan, all subsequent distributions to stockholders would be made in cash. Investors in the distribution reinvestment plan will experience immediate dilution of the net tangible book value of their shares.
7 Select broker / dealers may have different suitability standards, may not offer all share classes, and / or may offer DPF at a higher minimum initial investment.
8 With respect to Class T / S shares, the amount of upfront selling commissions and dealer manager fees may vary at select broker-dealers, provided that the sum will not exceed 3.5% of the transaction price.