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 cause the actual results, performance or achievements of WPT Industrial Real Estate Investment Trust (“WPT REIT” or the “REIT"), or industry r esults, 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 operating 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 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 indicat ions 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 prescrib ed 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 abi lity 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. All currency in U.S. dollars 2
48 institutional-quality properties benefiting from US economic recovery Listed on TSX (WIR.U) and OTCQX (WPTIF) ONLY Canadian REIT • 18.5 million Units outstanding focused exclusively on U.S. industrial real estate Distributions in US funds • Strong yield as US$ strengthens Targeting Disciplined but Aggressive Growth 3
Investment Highlights 1 Focused on distribution sub-segment of U.S. industrial real estate market 2 High-quality, stabilized and geographically diverse portfolio in major distribution markets 3 Aligned and experienced management and majority-independent board of trustees 4 Platform for accretive growth in a fragmented market 3003 Reeves Road Indianapolis, Indiana GLA: 741,100 sq. ft. Ceiling height: 36 feet 4 4
Well-Aligned Manager Retained Interest 47.3 % Path to internalization Automatic at $750 million in equity market capitalization 1105 Northfield Drive Indianapolis, Indiana GLA: 526,200 sq. ft. Ceiling height: 32 feet Proven Experienced Management Team 5
Enhancing Unitholder Value First distribution increase since IPO: Annualized distribution of • Effective with October 2015 payment $0.76 per unit • Unitholders of record on September 30, 2015 • $0.0633 per month ($0.0583 previously) • Reflects strong performance, positive Increase of 8.6% outlook 6
Strong and Stable United States Industrial Market 600 Hartman Industrial Crt. Atlanta, Georgia GLA: 525,600 sq. ft. Ceiling height: 32 feet 7 7
Strong Market Fundamentals 1 Substantial E-commerce supply chain growth is driving significant demand for state-of-the-art distribution buildings 2 Non-discretionary household goods 3 Sector is benefiting from US economic recovery 4 Build-to-suit & speculative development activity is occurring 5 Significant tenant investment in properties 100 West Thomas P Echols Drive Louisville, KY GLA: 936,000 sq. ft. Ceiling height: 32 feet Increasing Demand for Warehouse and Distribution Space 8
Current Portfolio 48 Properties 15.1M sq. ft. of GLA Strategically Located in Key Distribution Markets 9
1 Institutional-Quality Portfolio 31 feet 2 Average Clear Ceiling Heights 13 Years Average Asset Age 321,000 Sq. Ft. 2 Average Building Size 195,000 2 Average Tenant Size Sq. Ft. 1. As of June 30, 2015 2. Industrial assets only 10 State-of-the-Art Warehouse and Distribution Properties
High-Quality Tenant Base Top 10 Industrial Tenants* (%) of Total Remaining Lease Tenant GLA Occupied Portfolio GLA 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 *As of June 30, 2015 Stable and Diversified Tenant Mix 11
Financial Overview 6766 Pontius Rd. Cincinnati, Ohio GLA: 754,000 sq. ft. Ceiling height: 35 feet 12
Consistent Growth Since IPO Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 (US$,000 except per Unit amounts) Investment properties 13,846 15,227 15,431 16,386 17,563 revenue 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 13
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% $26 Million in capacity on Revolving Facility 14
Well-Balanced Mortgage Portfolio Mortgage Maturities by Year 100,000 87,111 Weighted Average 90,000 Maturities ($ in thousands) 80,000 Mortgage Term-to-Maturity 70,000 5.4 years 60,000 52,498 50,011 50,000 33,295 40,000 31,481 25,762 23,161 30,000 20,000 1,068 1,913 8,863 10,000 - 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Capitalizing on Low Interest Rate Environment 15
Staggered Lease Maturity Profile Lease Expiration (% of GLA) by Year 25.0% 21.2% 20.0% 17.8% 17.3% Weighted Average 16.3% Remaining Lease Term 15.0% 13.7% 3.9 years 10.0% 6.7% 5.0% 3.5% 2.4% 1.1% 0.0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 + Leases expiring 2 19 15 16 10 11 8 3 7 Limited Near-Term Tenant Turnover 16
Growth Strategies 6579 West 350 North Indianapolis, Indiana GLA: 629,200 sq. ft. Ceiling height: 32 feet 17
Proven Growth Strategies Internal Growth: External Growth: • • Contractual rent increases Strong acquisition pipeline • • Rolling rents to market upon renewals Institutional relationships • • Increased occupancies Proven track record of sourcing, completing and integrating acquisitions • Effective asset & property management • Strategic debt placement & refinancing 18
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