Offering Overview

Growth of a $10,000 Investment


Returns Summary


Returns Summary as of May 31, 20181,2
One-Year — Trailing 12-Month Three-Year Annualized Five-Year Annualized Since NAV Inception Annualized2
DPF Class I Share
(ZDPFIX)
3.92% 5.71% 7.07% 7.11%
DPF Class D Share
(ZDPFDX)
3.60% 5.25% 6.58% 6.62%
DPF Class T / S Share* at NAV
(ZDPFTX / ZDPFSX)
3.01% 4.71% 6.04% 6.08%
DPF Class T / S Share* with Sales Charges
(ZDPFTX / ZDPFSX)
-0.08% 3.68% 5.42% 5.53%
Volatility and Risk-Adjusted Performance Summary as of May 31, 2018
Standard Deviation (since NAV inception)3 Sharpe Ratio (since NAV inception)4
DPF Class I Share 1.67% 4.03
DPF Class D Share 1.67% 3.74
DPF Class T / S Share* at NAV 1.67% 3.42
DPF Class T / S Share* with Sales Charges 1.67% 3.09
Distribution Summary as of May 31, 20185
Annualized1
DPF Class I Share 5.03%
DPF Class D Share 4.77%
DPF Class T / S Share* at NAV 4.16%
DPF Class T / S Share* with Sales Charges 4.02%

Performance by Period


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*The Class T/S Share with Sales Charges returns shown are based on the maximum up-front sales commission and ongoing distribution/dealer manager fees that were in effect for the time period indicated.  Prior to September 1, 2017, Class T/S Shares were offered with an up to 3.0% sales commission and 1.10% per annum of aggregate annual distribution and dealer manager fees.  Beginning September 1, 2017, Class T/S Shares are offered with an up to 3.5% up-front sales loads to investors and 0.85% per annum in distribution fees. Performance shown at NAV does not include maximum up-front sales charge at initial subscription.

1 Performance is measured by total return, which includes income and appreciation. Total return represents the compound annual rate of return assuming reinvestment of all distributions. Past performance is not a guarantee of future results. Performance data quoted above is historical. Current performance may be higher or lower than the performance data quoted. Minimum investment may vary by state. Diversification does not assure a profit or protect against loss in a declining market.

2 NAV inception is 09/30/12. The historical returns presented show share performance since September 30, 2012, which is when DPF first sold Class A, W and I shares after converting to an NAV REIT on July 12, 2012. Subsequently, as a result of a share restructuring effective as of September 1, 2017, DPF’s outstanding Class A, W and I shares changed to Class T, Class D and a new version of Class I shares, respectively. DPF also created a new Class S share, with the same NAV per share and class-specific expenses as Class T shares. Accordingly, in this table; the returns of Class T and Class S shares reflect the performance of Class A shares since NAV inception through the restructuring date; the return of Class D shares shown reflects the performance of Class W shares since NAV inception through the restructuring date; and the return of the new version of Class I shares reflects the performance of the prior Class I shares since NAV inception through the restructuring date. In connection with the restructuring, DPF also revised its fee structure with its advisor and dealer manager and its NAV methodology, which will affect returns going forward. Please see DPF’s definitive proxy statement filed with the Securities and Exchange Commission on June 7, 2017, for more information about the fee changes and our pro forma estimates of how those fee changes would have affected returns on DPF shares in the years 2013-2016. Investors in DPF’s fixed price offerings prior to NAV inception on 09/30/12 are likely to have a lower return.

3 Standard deviation is a measurement of the variability (volatility) of a security, derived from the security’s historical returns. The higher the standard deviation, the greater potential for volatility. The Sharpe Ratio is a measure for calculating risk-adjusted return, and is calculated by subtracting the risk-free rate — such as that of the 3-Month Treasury Bill — from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns. Both standard deviation and sharpe numbers are annualized since NAV inception.

4 Sharpe Ratio is a measure for calculating risk-adjusted return, and is calculated by subtracting the risk-free rate — such as that of the 3-Month Treasury Bill — from the rate of return for a portfolio and dividing the result by the standard deviation of the portfolio returns.

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 reduce your overall return and dilute the value of your investment in shares of DPF common stock. For each of the years ended 2012 through 2017, cash flows from operations exceeded total distributions. For the three months ended March 31, 2018, cash flows from operations funded 70.6% of total distributions. Cash flow from operations does not include a reduction to cash flow resulting from on-going capital expenditures as GAAP defines those cash outflows as part of investment activities. Nonetheless, capital expenditures are inherently a significant and material part of the on-going business of DPF. Furthermore, cash flow from operations, after deducting capital expenditures, may not be sufficient to fund 100% if DPF’s distribution. For example, cash flow from operations, after deducting capital expenditures, for each of the years ended December 31, 2017 and 2016, would not have been sufficient to fund DPF’s entire distribution amounts. Furthermore, due to two recent large lease expirations, DPF may incur higher capital expenditures over the next two years, continuing to make funding distributions through cash flows from operations, after deducting capital expenditures, unlikely over that period of time.

6 Minimum investment may vary by state

7 Diversification does not assure a profit or protect against loss in a declining market.

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:
    1. 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.
    2. 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 reduce your overall return and dilute the value of your investment in shares of DPF common stock. For each of the years ended 2012 through 2017, cash flows from operations exceeded total distributions. For the three months ended March 31, 2018, cash flows from operations funded 70.6% of total distributions. Cash flow from operations does not include a reduction to cash flow resulting from on-going capital expenditures as GAAP defines those cash outflows as part of investment activities. Nonetheless, capital expenditures are inherently a significant and material part of the on-going business of DPF. Furthermore, cash flow from operations, after deducting capital expenditures, may not be sufficient to fund 100% if DPF’s distribution. For example, cash flow from operations, after deducting capital expenditures, for each of the years ended December 31, 2017 and 2016, would not have been sufficient to fund DPF’s entire distribution amounts. Furthermore, due to two recent large lease expirations, DPF may incur higher capital expenditures over the next two years, continuing to make funding distributions through cash flows from operations, after deducting capital expenditures, unlikely over that period of time.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. DPF’s use of leverage increases the risk of loss on its investments.
    8. 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.
    9. 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.