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INVESTOR PRESENTATION
Second Quarter 2015
INVESTOR PRESENTATION Second Quarter 2015 1 Forward-Looking - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Second 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
Second 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
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, 2014, 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 Aggressive 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
Listed on TSX (WIR.U) and OTCQX (WPTIF)
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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Proven Experienced Management Team
Well-Aligned Manager
Retained Interest
Path to internalization
market capitalization
1105 Northfield Drive
Indianapolis, Indiana
GLA: 526,200 sq. ft. Ceiling height: 32 feet
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Enhancing Unitholder Value
First distribution increase since IPO:
Annualized distribution of
Increase of 8.6%
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600 Hartman Industrial Crt. Atlanta, Georgia
GLA: 525,600 sq. ft. Ceiling height: 32 feet
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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
Current Portfolio
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State-of-the-Art Warehouse and Distribution Properties
Institutional-Quality Portfolio
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1. As of June 30, 2015 2. Industrial assets only
Average Clear Ceiling Heights
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Average Asset Age Average Tenant Size
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Average Building Size
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Stable and Diversified Tenant Mix
High-Quality Tenant Base
Top 10 Industrial Tenants*
*As of June 30, 2015
Tenant GLA Occupied (%) of Total Portfolio GLA Remaining Lease Term (Years) Sector General Mills 1,512,552 10.02% 4.92 Consumer Products Unilever 1,262,648 8.36% 8.01 Consumer Products Honeywell 754,000 4.99% 3.51 Consumer Products OSP Group (dba Fullbeauty Brands, Inc.) 741,092 4.91% 1.17 Online Retailer Zulily 737,471 4.88% 1.92 Online Retailer United Stationers 654,080 4.33% 2.09 Consumer Products CEVA Logistics 648,750 4.30% 0.92 Logistics Amazon.com 572,000 3.79% 4.09 Online Retailer Ebay 543,512 3.60% 1.84 Online Retailer Life Science Logistics 394,200 2.61% 5.01 Healthcare 7,820,305 51.79% 3.80
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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)
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Investment properties revenue 13,846 15,227 15,431 16,386 17,563 NOI 10,480 11,610 11,796 12,452 13,358 FFO 6,541 7,431 7,623 7,990 8,143 AFFO 5,155 6,234 6,363 6,697 7,156 AFFO per Unit $ 0.188 $0.212 $0.216 $0.207 $0.212
Property acquisitions made significant contribution
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Strong Balance Sheet & Liquidity Position
As of June 30, 2015 Total Debt to GBV 50.4% Weighted Average Effective Interest Rate 3.8% Weighted Average Mortgage Term-to-Maturity 5.4 yrs Interest Coverage Ratio 3.3 times Fixed Charge Coverage Ratio 2.9 times AFFO Payout Ratio – Q2 2015 82.5%
$26 Million in capacity on Revolving Facility
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Capitalizing on Low Interest Rate Environment
Well-Balanced Mortgage Portfolio
Mortgage Maturities by Year Weighted Average Mortgage Term-to-Maturity
1,068 23,161 1,913 33,295 31,481 87,111 50,011 25,762 52,498 8,863
20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Maturities ($ in thousands)
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Staggered Lease Maturity Profile
Limited Near-Term Tenant Turnover
Weighted Average Remaining Lease Term
Leases expiring 2 19 15 16 10 11 8 3 7
1.1% 16.3% 21.2% 17.3% 6.7% 17.8% 3.5% 2.4% 13.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 +
Lease Expiration (% of GLA) by Year
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6579 West 350 North Indianapolis, Indiana
GLA: 629,200 sq. ft. Ceiling height: 32 feet
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Proven Growth Strategies
Internal Growth:
External Growth:
completing and integrating acquisitions
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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
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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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