INVESTOR PRESENTATION MAY 2013 1 Forward-Looking Statements - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION MAY 2013 1 Forward-Looking Statements - - PowerPoint PPT Presentation

INVESTOR PRESENTATION MAY 2013 1 Forward-Looking Statements Certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the


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INVESTOR PRESENTATION

MAY 2013

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Certain statements in this presentation may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of WPT Industrial Real Estate Investment Trust (“WPT REIT” or the “REIT"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this presentation, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. These statements reflect the REIT's current expectations regarding future events and

  • perating performance including the REIT’s future growth potential, results of operations, future prospects and opportunities, demographic and industry trends and future legislative and

regulatory approaches with respect to matters affecting the REIT and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, which include, but are not limited to the factors discussed under “Forward-Looking Statements” and "Risk Factors" in the prospectus of the REIT dated April 18, 2013, the “Prospectus” and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. Forward looking statements are necessarily broad on a number of estimates and assumptions that, while considered reasonable by management of the REIT as of the date of this presentation, are inherently subject to significant business, economic and competitive uncertainties and contingencies; therefore, the REIT cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this presentation and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the REIT assumes no obligation to update or revise them to reflect new events or circumstances. This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. The information contained in this presentation concerning the REIT and its affiliates does not purport to be all-inclusive or to contain all the information that a prospective purchaser or investor may desire to have in evaluating whether or not to make an investment in the REIT. The information is qualified entirely by reference to the Prospectus. This presentation includes certain financial measures such as funds from operations (“FFO”), adjusted funds from operations (“AFFO”) and net operating income (“NOI”) that are not measures recognized under International Financial Reporting Standards (“IFRS”) and do not have standardized meanings prescribed by IFRS. FFO, AFFO and NOI are supplemental measures of a Canadian real estate investment trust’s performance and the REIT believes they are relevant measures of the ability of the REIT to earn and distribute cash returns to investors in the Units and to evaluate the REIT’s performance. The IFRS measurement most directly comparable to FFO, AFFO and NOI is net income. Tables reconciling such non- IFRS financial measures are available in this presentation and in the Prospectus.

Forward-Looking Statements

All currency in U.S. dollars

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Management Team

Scott Frederiksen, CEO

  • CEO, Welsh Property Trust LLC
  • 25 years with the Welsh organization

Dennis Heieie, CFO

  • CFO, Welsh Property Trust LLC
  • 15 years with the Welsh organization

40 Logistics Blvd.

Cincinnati, Ohio

GLA: 543,500 sq. ft. Ceiling height: 32 feet

Matt Cimino, General Counsel

  • General Counsel, Welsh Property Trust LLC
  • 6 years with the Welsh organization
  • External counsel to Welsh prior to joining the company
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Targeting Disciplined but Aggressive Growth

ONLY Canadian REIT focused exclusively on U.S. industrial real estate

37 institutional-quality properties totalling 8.6M sq. ft. of GLA Stable and diversified tenant base Simple, tax-efficient structure

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5 Focused on warehouse and distribution sub-segment of U.S. industrial real estate market High-quality, stabilized and geographically diverse portfolio in major distribution markets Aligned and experienced management and majority-independent board of trustees Platform for accretive growth in a fragmented market Attractive and stable yield 90% AFFO Payout Ratio

Investment Highlights

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3003 Reeves Road

Indianapolis, Indiana

GLA: 741,100 sq. ft. Ceiling height: 36 feet

5 2 3 4 1 6

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The Opportunity

600 Hartman Industrial Crt. Atlanta, Georgia

GLA: 525,600 sq. ft. Ceiling height: 32 feet

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U.S. 12.9B Canada 1.5B

Deep, Liquid Market with Attractive Relative Valuations

Superior Growth Opportunities

$22 $9 $17 $31 $32 $2 $1 $4 $2 $3 2008 2009 2010 2011 2012 United States Canada

Source: Real Capital Analytics

Industrial Sales Volumes ($B) Stock of Industrial Real Estate (Sq. Ft.) 50 60 70 80 90 100 110 120 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 U.S. Canada Industrial Property Relative Valuations (%)

Source: International Property Databank Source: Cushman & Wakefield

100 82

Only 3% of U.S. industrial assets owned by REITs1

  • 1. Source: Grubb & Elllis
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Compelling Warehouse & Distribution Fundamentals

Predictable and Stable Cash Flow

  • Triple-net leases
  • Less volatile demand
  • Low re-tenanting costs
  • High tenant retention
  • Significant growth opportunities
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2440-2450 Midpoint Dr. Kansas City, Kansas

GLA: 225,000 sq. ft. Ceiling height: 30 feet

Increasing Demand for Warehouse and Distribution Space

  • Substantial e-commerce growth
  • Increased outsourcing of distribution to

third-party logistics providers

  • Increasing pressure to deliver goods

quickly and cost effectively

Distribution Trends Driving Growth

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Portfolio Overview

7515 Hartman Industrial Way Atlanta, Georgia

GLA: 113,700 sq. ft. Ceiling height: 28 feet

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MAJOR RAIL INFRASTRUCTURE MAJOR INTERSTATE HIGHWAYS INITIAL PROPERTIES OTHER DISTRIBUTION MARKETS

Strategically Located in Key Distribution Markets

Current Properties

Properties

8 .6M

  • sq. ft. of GLA

37

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State-of-the-Art Warehouse and Distribution Properties

Institutional-Quality Portfolio

1

  • 1. Industrial assets only

Average Clear Ceiling Heights Average Asset Age Average Tenant Size

31 feet 12 Years 10 6,0 0 0 Sq. Ft.

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Transportation & Logistics 17% Assembly and OEM Distribution 9% Wholesale Trade 25% Retail Trade 15% Finance, Insurance & Real Estate 6% Services 22% Public Administration 6% Tenant Sector by Base Rent

Highly Diversified Portfolio

1. Projected for the 12-month period ending March 31, 2014 2. As at February 1, 2013

No State >17% of Forecast NOI1

MN 17% IN 16% KS 12% MI 4% WI 7% GA 16% FL 2% OH 11% IL 2% SC 5% NC 2% KY 6% Portfolio NOI by State1

% %

No Sector >25% of Base Rent2

Risk Mitigation Through Diversification

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Stable and Diversified Tenant Mix

High-Quality Tenant Base

1

Tenant GLA Occupied (000 sq. ft.) % of GLA % of Annualized Base Rent2 Remaining Lease Term (years) Sector OSP Group / Redcats USA 741 8.6% 5.6% 3.6 Online Retailer Zulily 738 8.6% 5.5% 4.3 Online Retailer GSI Commerce Solutions1 544 6.3% 5.4% 4.3 Online Retailer KGP Logistics 311 3.6% 4.6% 5.9 Third Party Logistics Honeywell International 594 6.9% 4.0% 5.9 Consumer/Commercial Products Boise Building Solutions Distribution 155 1.8% 3.3% 9.6 Building Materials Keystone Automotive Distributors 351 4.1% 3.3% 4.3 Automotive Equipment Life Science Logistics 394 4.6% 3.2% 7.4 Third Party Logistics The StayWell Company 72 0.8% 2.5% 5.3 Health & Wellness Formica Corporation 289 3.4% 2.4% 1.5 Building Materials Totals / Average 4,188 48.7% 39.8% 4.8

1. GSI Commerce is a wholly owned subsidiary of ebay 2. As at February 1, 2013

Top 10 Industrial Tenants

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Historic & Projected Occupancy

Fully Stabilized Portfolio Weighted Average Occupancy

  • 1. As of February 1, 2013

2014F 93.2% 94.7% 94.7% 95.8% 96.3% 96.3% 96.1% 95.2% 96.0% Mar Jun Sept Dec Mar Jun Sept Dec Mar

96.3%

1

2013F 2012

  • 1. As of February 1, 2013
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Staggered Lease Maturity Profile

Limited Near-Term Tenant Turnover Weighted Average Remaining Lease Term

2.7% 8.3% 4.0% 20.5% 25.3% 39.2% 2013 2014 2015 2016 2017 Thereafter

5.0 years

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Case Study

Indianapolis, IN

1105 E. Northfield Dr. Indianapolis, Indiana

GLA: 526,200 sq. ft. Ceiling height: 32 feet

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  • One of the top distribution

markets in U.S.

  • 1 day drive to 45% of

U.S. population

  • Convergence of 4 interstate

highways

  • World’s 2nd largest FedEx Hub

C A S E S T U D Y

Indianapolis, IN

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3003 Reeves Road, Plainfield, IN 1105 East Northfield Drive, Brownsburg, IN 6579 West 350 North, Greenfield, IN

C A S E S T U D Y

Indianapolis, IN

Building Critical Mass in Select Distribution Markets

GLA: 526,200 sq. ft. GLA: 741,100 sq. ft. GLA: 629,200 sq. ft.

1.9 M sq. ft.

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1105 East Northfield Drive, Brownsburg, IN

State-of-the-Art Properties Attract High-Quality Tenants

32’ CLEAR HEIGHT DOCK DOORS TRUCK COURT TRUCK COURT AUTO PARK AUTO PARK TRAILER STORAGE DOCK DOORS

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1105 East Northfield Drive, Brownsburg, IN

State-of-the-Art Properties Attract High-Quality Tenants

T-5 LIGHTING ESFR SPRINKLER SYSTEM COLUMN SPACING 32’ CLEAR HEIGHT DOCK DOORS DOCK DOORS CROSS DOCK OFFICE SPACE

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Financial Overview

6766 Pontius Rd.

Cincinnati, Ohio

GLA: 754,000 sq. ft. Ceiling height: 35 feet

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Financial Forecast1

($ millions)

12-months ending March 31, 2014 Investment properties revenue $45.5 Investment properties operating expenses (12.1) Net operating income $33.4 General and administrative (2.3) Finance costs (17.1) Net income and comprehensive income $14.0 Distributions on Class B Units treated as interest expense 7.6 FFO $21.6 Adjustments: Leasing cost reserve (2.4) Capital expenditures reserve (0.9) Mark-to market debt adjustments (0.8) Amortization of deferred financing charges 0.4 Amortization of straight line rent (1.7) Amortization of tenant incentives 0.1 AFFO $16.2

1. Shown before the overallotment

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54

%

Debt Profile

Staggered and Attractive Debt Profile

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Mortgage Debt Credit Facility

Weighted Average Term to Maturity1:

6.3

Weighted Average Cost of Debt1:

4.18

% of Debt Maturing

1. Mortgage Debt + Credit Facility

years %

Debt/GBV:

6.9% 31.0% 14.1% 3.7% 18.0% 22.0% 0.8% 0.8% 1.3% 1.2% 0.1%

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Governance & Management

535 Shingle Oak Drive

Chicago, Illinois

GLA: 150,000 sq. ft. Ceiling height: 30 feet

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Aligned Fee Structure Asset Management

  • 0.25% of GBV

Acquisition

  • 1% on first $100M
  • 0.75% on next $100M
  • 0.5% over $200M

No Performance Incentives

  • No AFFO hurdle

Property Management (% of revenue)

  • 2% on single-tenant industrial
  • 3% on multi-tenant industrial
  • 4% on office

Construction Management

  • 5% on non-maintenance capital projects >$100,000

Term

  • Initial term of 5 years plus 5 year renewal option
  • Automatic internalization at $750 million equity

market capitalization

Asset and Property Management

No disposition, financing, leasing or development fees No employees directly billed to REIT

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Majority-Independent Board with Extensive Real Estate & Financial Experience

Board of Trustees

Trustee Real Estate/Board Experience Independent Trustee Audit Committee CG&N1 Committee

Robert Wolf

Lead Trustee

  • Principal, RTW Capital Corporation
  • Former CFO, RioCan REIT

 

Milo Arkema

  • Independent Consultant
  • Accountant, Baker Tilly Virchow Krause, LLP

 

Sarah Kavanagh

  • Commissioner, Ontario Securities Commission
  • Former Vice Chair, Co-Head, Diversified Industry Group,

Scotia Capital

 

Charles Swanson

  • Former VP, Real Estate, bcIMC
  • Former Director, SilverBirch Hotels & Resorts

 

Harry Rosenbaum

  • Founding Principal, Great Gulf Group of Companies
  • Partner, Ashton Wood Homes

 

Andrew Silberstein

  • Partner, Almanac Realty Investors LLC
  • Former CIO and COO of Stoltz Real Estate

Scott Frederiksen

Chair of the Board

  • CEO, Welsh Property Trust LLC
  • 25 years with Welsh organization

(CHAIR) (CHAIR)

1.Compensation, Governance and Nominating

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Experienced Manager

ACQUISITIONS Ben Applebaum Vice President Ryan Doyle Vice President Grant Campbell Associate ASSET SERVICES Spencer Gerberding Vice President Randy Bauernfeind Vice President ACCOUNTING/FINANCE Dennis Heieie CFO Jennifer Matthew Corporate Controller Toni Toborg Financial Reporting Analyst LEGAL Matt Cimino General Counsel & Secretary Emily Howell Corporate Counsel Julie Te Slaa Senior Real Estate Paralegal Scott Frederiksen CEO

Comprehensive Management Platform

  • 35-year history
  • Transacted and managed >$1B and 20M sq. ft. since 2005
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Committed Long-Term Unitholder

Well-Aligned Manager

Retained Interest

49

%

1

  • 100% of retained interest subject

to 18-month lock-up

1. After the overallotment

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Growth Strategies

6579 West 350 North Indianapolis, Indiana

GLA: 629,200 sq. ft. Ceiling height: 32 feet

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Room to Grow Rents and Increase Cash Flows

Internal Growth Opportunities

1.4 % 97%

Per Year Contractual Rental Rate Escalations Tenant Retention

Market Peak Year Peak Rents1 Current Rents1 Current Discount to Peak Rent Atlanta 2008 $3.86 $3.38

  • 12%

Chicago 2008 $4.95 $4.74

  • 4%

Cincinnati 2007 $3.75 $3.24

  • 14%

Columbus 2008 $3.18 $2.94

  • 8%

Indianapolis 2007 $3.82 $3.66

  • 4%

Jacksonville 2007 $4.45 $3.76

  • 16%

Kansas City 2009 $4.07 $3.76

  • 8%

Milwaukee 2008 $4.24 $4.04

  • 5%

Minneapolis 2008 $5.85 $5.41

  • 8%
  • 1. As of December 31, 2012 (CoStar)

Rents Below Peak

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External Growth Strategies

6600 Pritchard Rd.

Jacksonville, FL

GLA: 126,100 sq. ft. Ceiling height: 30 feet

Pursuing Aggressive and Accretive Growth

Acquisition Strategy

  • $1B of transactions since 2005
  • 49% off-market acquisitions
  • 44% repeat sellers
  • Targeting significant growth in

existing and new markets

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33 Focused on warehouse and distribution sub-segment of U.S. industrial real estate market High-quality, stabilized and geographically diverse portfolio in major distribution markets Aligned and experienced management and majority-independent board of trustees Platform for accretive growth in a fragmented market Attractive and stable yield 90% AFFO Payout Ratio

Investment Highlights

33

3003 Reeves Road

Indianapolis, Indiana

GLA: 741,100 sq. ft. Ceiling height: 36 feet

5 2 3 4 1 6

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INVESTOR PRESENTATION

MAY 2013