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INVESTOR PRESENTATION
MAY 2013
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
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
Dennis Heieie, CFO
40 Logistics Blvd.
Cincinnati, Ohio
GLA: 543,500 sq. ft. Ceiling height: 32 feet
Matt Cimino, General Counsel
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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
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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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
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Compelling Warehouse & Distribution Fundamentals
Predictable and Stable Cash Flow
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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
third-party logistics providers
quickly and cost effectively
Distribution Trends Driving Growth
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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
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State-of-the-Art Warehouse and Distribution Properties
Institutional-Quality Portfolio
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Average Clear Ceiling Heights Average Asset Age Average Tenant Size
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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
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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
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
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2013F 2012
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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
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Indianapolis, IN
1105 E. Northfield Dr. Indianapolis, Indiana
GLA: 526,200 sq. ft. Ceiling height: 32 feet
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markets in U.S.
U.S. population
highways
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.
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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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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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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:
Weighted Average Cost of Debt1:
% of Debt Maturing
1. Mortgage Debt + Credit Facility
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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535 Shingle Oak Drive
Chicago, Illinois
GLA: 150,000 sq. ft. Ceiling height: 30 feet
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Aligned Fee Structure Asset Management
Acquisition
No Performance Incentives
Property Management (% of revenue)
Construction Management
Term
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
Milo Arkema
Sarah Kavanagh
Scotia Capital
Charles Swanson
Harry Rosenbaum
Andrew Silberstein
Scott Frederiksen
Chair of the Board
(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
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Committed Long-Term Unitholder
Well-Aligned Manager
Retained Interest
1
to 18-month lock-up
1. After the overallotment
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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
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
Chicago 2008 $4.95 $4.74
Cincinnati 2007 $3.75 $3.24
Columbus 2008 $3.18 $2.94
Indianapolis 2007 $3.82 $3.66
Jacksonville 2007 $4.45 $3.76
Kansas City 2009 $4.07 $3.76
Milwaukee 2008 $4.24 $4.04
Minneapolis 2008 $5.85 $5.41
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
existing and new markets
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
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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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INVESTOR PRESENTATION
MAY 2013