INVESTOR PRESENTATION Fourth Quarter 2015 1 Forward-Looking - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION Fourth Quarter 2015 1 Forward-Looking - - PowerPoint PPT Presentation

INVESTOR PRESENTATION Fourth Quarter 2015 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


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INVESTOR PRESENTATION

Fourth Quarter 2015

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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 ability to invest in private funds and the future prospects and opportunities relating to investment in, or co-investment with, such private

funds, the current or future status of the REIT’s Unitholder Rights Plan Agreement, the REIT’s future growth potential and other prospects and opportunities, results of operations, 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 REIT’s annual information form for the year ended December 31, 2015, the “AIF” 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 AIF. 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 AIF.

Forward-Looking Statements

All currency in U.S. dollars

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Targeting Disciplined but Accretive Growth

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

48 institutional-quality properties benefiting from US economic recovery Distributions in US funds

  • Strong yield as US$ strengthens

Listed in US Funds on TSX (WIR.U) and OTCQX (WPTIF)

  • 18.5 million Units outstanding1
1As of December 31, 2015
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4 Focused on 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

Investment Highlights

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3003 Reeves Road

Indianapolis, Indiana

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

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Enhancing Unitholder Value

First distribution increase since IPO:

  • Effective with October 2015 payment
  • Unitholders of record on September 30, 2015
  • $0.0633 per month ($0.0583 previously)
  • Reflects strong performance, positive
  • utlook

Annualized distribution of

$0.76 per unit

Increase of 8.6%

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600 Hartman Industrial Crt. Atlanta, Georgia

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

Strong and Stable United States Industrial Market

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Increasing Demand for Warehouse and Distribution Space

Strong Market Fundamentals

Substantial E-commerce supply chain growth is driving significant demand for state-of-the-art distribution buildings Non-discretionary household goods Sector is benefiting from US economic recovery Build-to-suit & speculative development activity is occurring Significant tenant investment in properties

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100 West Thomas P Echols Drive

Louisville, KY

GLA: 936,000 sq. ft. Ceiling height: 32 feet

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Strategically Located in Key Distribution Markets Properties

15.1M

  • sq. ft. of GLA

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Current Portfolio

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State-of-the-Art Warehouse and Distribution Properties

Institutional-Quality Portfolio

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1. As of December 31, 2015 2. Industrial assets only

Average Clear Ceiling Heights

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Average Asset Age Average Tenant Size

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31 feet 14 Years 186,000 Sq. Ft.

Average Building Size

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321,000 Sq. Ft.

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Stable and Diversified Tenant Mix

High-Quality Tenant Base

Top 10 Industrial Tenants*

*As of December 31, 2015

Tenant % of Total Annualized Base Rent GLA Occupied (%) of Total Portfolio GLA Sector General Mills Operations, LLC 7.40% 1,512,552 10.02% Consumer Products Unilever Home & Personal Care 6.22% 1,262,648 8.36% Consumer Products Zulily Inc 4.04% 737,471 4.88% Online Retailer Fullbeauty Brands, Inc. 3.87% 741,092 4.91% Online Retailer Essendant Co (Formerly United

Stationers Supply Co)

3.78% 654,080 4.33% Consumer Products CEVA Logistics U.S. Inc. 3.48% 648,750 4.30% Logistics Amazon.com 3.47% 572,000 3.79% Online Retailer eBay Enterprise, Inc.

(Formerly GSI Commerce SolutionsInc)

3.42% 543,512 3.60% Online Retailer Honeywell International Inc 3.30% 754,000 4.99% Consumer Products KGP Logistics, Inc. 3.16% 311,100 2.06% Logistics Total 42.14% 7,737,205 51.24%

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Financial Overview

6766 Pontius Rd.

Cincinnati, Ohio

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

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Consistent Growth Since IPO

(US$,000 except per Unit amounts)

Year ended December 31, 2015 Year ended December 31, 2014 Period from March 4 to December 31, 2013

Investment properties revenue $ 67,423 $ 57,351 $ 33,659 NOI 50,602 43,318 25,003 FFO 30,871 27,523 15,405 AFFO 28,637 22,568 11,901 AFFO per Unit $0.857 $0.820 $0.509

Property acquisitions made significant contribution

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Strong Balance Sheet & Liquidity Position

As of December 31, 2015 Total Debt to GBV 48.6% Weighted Average Effective Interest Rate 3.8% Weighted Average Mortgage Term-to-Maturity 4.9 yrs Interest Coverage Ratio 3.2 times Fixed Charge Coverage Ratio 2.8 times AFFO Payout Ratio – 2015 84.8%

$28.3 Million in capacity on Revolving Facility

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Capitalizing on Low Interest Rate Environment

Well-Balanced Mortgage Portfolio

Mortgage Maturities by Year Weighted Average Mortgage Term-to-Maturity

4.9 years

23,161 1,913 33,295 31,481 87,111 50,011 25,762 52,498 8,863

  • 10,000

20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2016 2017 2018 2019 2020 2021 2022 2023 2024

Maturities ($ in thousands)

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Staggered Lease Maturity Profile

Limited Near-Term Tenant Turnover

Weighted Average Remaining Lease Term

3.9 years

Leases expiring 16 13 15 11 11 12 3 5 5

10.3% 20.1% 15.4% 7.0% 17.8% 11.5% 2.4% 11.1% 4.40% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2016 2017 2018 2019 2020 2021 2022 2023 2024 +

Lease Expiration (% of GLA) by Year

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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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Proven Growth Strategies

Internal Growth:

  • Contractual rent increases
  • Rolling rents to market upon renewals
  • Increased occupancies
  • Effective asset & property management
  • Strategic debt placement & refinancing

External Growth:

  • Strong acquisition pipeline
  • Institutional relationships
  • Proven track record of sourcing,

completing and integrating acquisitions

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18 Focused on 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

Summary

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3003 Reeves Road

Indianapolis, Indiana

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

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APPENDIX

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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 Former 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 26 years with Welsh organization

(CHAIR) (CHAIR)

1.Compensation, Governance and Nominating

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Aligned Fee Structure Asset Management

0.25% of GBV

Acquisition

1.0% 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