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INVESTOR PRESENTATION
Second Quarter 20 16
INVESTOR PRESENTATION Second Quarter 20 16 1 Forward-Looking - - PowerPoint PPT Presentation
INVESTOR PRESENTATION Second Quarter 20 16 1 Forward-Looking Statements This presentation contains "forward-looking information" as defined under Canadian securities laws which reflect managements expectations regarding objectives,
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INVESTOR PRESENTATION
Second Quarter 20 16
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This presentation contains "forward-looking information" as defined under Canadian securities laws which reflect management’s expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of WPT Industrial Real Estate Investment Trust (the “REIT"). The words “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “projects”, “believes”, or variations of such words and phrases (including negative variations) or statements to the effect that certain actions, events or results “may”, “will”, “could”, “would”, “might”, “be achieved”, or “continue” and similar expressions identify forward-looking statements. These statements reflect the REIT's current expectations regarding future events and operating performance including the REIT’s ability to invest in private funds and the future prospects and
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 are necessarily based on a number of estimates, beliefs and assumptions that are inherently subject to significant business, economic and competitive uncertainties and contingencies which could cause actual results to differ materially from those that are disclosed in such forward-looking statements. While considered reasonable by management of the REIT as of the date of this presentation, any of these estimates, beliefs or assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those estimates, beliefs or assumptions could be incorrect. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved, if achieved at all. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including but not limited to those factors discussed or referenced under the “Risk Factors” section of the REIT’s MD&A. 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. Certain terms included in this presentation such as funds from operations (“FFO”), adjusted funds from operations (“AFFO”) and net operating income (“NOI”) are used by management to measure, compare and explain the operating results and financial performance of the REIT and are not recognized terms under IFRS, and therefore should not be construed as alternatives to net income (loss) and comprehensive income (loss) or cash flow from operating activities calculated in accordance with IFRS. Management believes these terms are relevant measures in comparing the REIT’s performance to industry data, the REIT’s ability to earn and distribute cash returns to holders of the REIT’s trust units, and the REIT’s ability to meet its ongoing obligations. These terms are defined and reconciled to the most directly comparable measure specified in the REIT’s MD&A. Such terms do not have a standardized meaning prescribed by IFRS and may not be comparable to similarly titled measures presented by other issuers.
Forward-Looking Statements
All currency in U.S. dollars
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56 20 Inner Park Drive Pontoon Beach, Illinois
GLA: 1,262,648 sq. ft. Ceiling height: 32 feet
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Demand for Industrial
Industrial Fundam entals Solid
demand outstripping supply. (Source: JLL Investm ent
Outlook, Q1 2016)
positive net absorption (Source: CBRE Market Snapshot, Q1
2016)
15.2% in Q1 2016 vs. Q1 2015, while total sales increased 2.2% for the same
the 10-year first-quarter average
(Excludes the 2015 IndCor Acquisition). (Source: JLL
Investm ent Outlook, Q1 2016)
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Development Activity
year low (Source: CBRE Marketview snapshot, Q1 2016)
market (~249MM sf) exceed active speculative construction by a factor
First Look Q3 2015 & CoStar – Costar data includes all industrial product types)
Strong Absorption will Fuel Developm ent
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Growing Rents
Rents are Rising
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10 0 West Thom as P Echols Drive
Louisville, KY
GLA: 936,000 sq. ft. Ceiling height: 32 feet
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Unique Investm ent Vehicle
ONLY Canadian REIT focused exclusively on U.S. Industrial Real Estate
distribution and logistics market
$0.76/ unit in U.S. Dollars
Advisors
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6 76 6 Pontius Rd.
Cincinnati, Ohio
GLA: 754,000 sq. ft. Ceiling height: 35 feet
Significant Growth since IPO
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Strategically Located in Key Distribution Markets Properties
Minneapolis
Current Portfolio
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“The value of goods delivered by same-day delivery is expected to increase by 154% annually through 2018.” (Source: Business
Insider Intelligence Estimates)
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State-of-the-Art Assets
Institutional-Quality Portfolio
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1. As of June 30, 2016 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 Tenants*
*As of June 30 , 20 16
Tenant % of Total Annualized Base Rent GLA Occupied (%) of Total Portfolio GLA Sector General Mills Operations, LLC 7.3% 1,512,552 10.0% Consumer Products Unilever Home & Personal Care 6.2% 1,262,648 8.4% Consumer Products Zulily Inc 4.1% 737,471 4.9% Online Retailer Fullbeauty Brands, Inc. 3.9% 741,092 4.9% Online Retailer Essendant Co (Formerly United
Stationers Supply Co)
3.7% 654,080 4.3% Consumer Products CEVA Logistics U.S. Inc. 3.5% 648,750 4.3% Logistics Amazon.com 3.4% 572,000 3.8% Online Retailer Radial, Inc. (Formerly eBay
Enterprise, Inc.)
3.4% 543,512 3.6% Online Retailer Honeywell International Inc 3.3% 754,000 5.0% Consumer Products KGP Logistics, Inc. 3.1% 311,100 2.1% Logistics Total 4 1.9% 7,737,20 5 51.3%
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6 76 6 Pontius Rd.
Cincinnati, Ohio
GLA: 754,000 sq. ft. Ceiling height: 35 feet
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Consistent Growth Since IPO
Targeting Disciplined and Accretive Growth
(US$,0 0 0 except per Unit am ounts)
Q2 20 16 Q1 20 16 Q4 20 15 Q3 20 15 Q2 20 15 Investment properties revenue $ 17,550 $ 17,564 $ 15,769 $ 17,705 $ 17,563 NOI 13,046 13,029 11,372 13,420 13,358 FFO 8,276 7,511 6,121 8,617 8,143 AFFO 7,569 7,180 7,423 7,361 7,156 AFFO per Unit $0.224 $0.213 $0.220 $0.218 $0.212
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Strong Balance Sheet & Liquidity Position
As of June 30, 2016 Total Debt to GBV 48.1% Weighted Average Effective Interest Rate 3.8% Weighted Average Mortgage Term-to-Maturity 4.4 yrs Interest Coverage Ratio 3.3 times Fixed Charge Coverage Ratio 2.9 times Debt to EBITDA 8.1 times AFFO Payout Ratio – Q2 2016 84.7%
$31.1 Million in Capacity on Revolving Facility
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10 0 % Fixed Rate Mortgage Debt with Weighted Average Interest Rate under 4%
Well-Balanced Mortgage Portfolio
Weighted Average Mortgage Term-to-Maturity
(1) As of June 30, 2016
22,067 1,913 33,295 31,481 87,111 50,011 25,762 52,498 8,863 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%
20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2016 2017 2018 2019 2020 2021 2022 2023 2024
Weighted Average Interest Rate of Maturities
Maturities ($ in Thousands)
Mortgage Maturities by Year (1)
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Staggered Lease Maturity Profile
Balanced Tenant Turnover with Near-Term Opportunity
Weighted Average Remaining Lease Term
Leases expiring 6 12 17 14 11 15 5 6 5
(1) As of June 30, 2016
2.0% 19.7% 15.7% 12.1% 17.7% 13.6% 2.9% 12.1% 4.2% 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 (1)
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516 6 Pleasant Hill Road Mem phis, Tennessee
GLA: 648,750 sq. ft. Ceiling height: 32 feet
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2016 Leasing Activity
Successful Tenant Retention
2016 renewals (inclusive of previously disclosed renewals – Q1
and Q2 activity)
to ~99%
91 1,001 176 270
400 600 800 1,000 1,200 1,400 1,600 1,800
Square Feet
Expiries Renewals New leases Open
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Opportunity for Growth
Equity Raise & Concurrent Private Placem ent
allotm ent)
~ $120 M (includes Revolving Facility availability)
and existing m arkets
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Developm ent Project at 30 0 3 Reeves Road
existing REIT land
Value-add Opportunity for the REIT and Investors
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4 0 Logistics Blvd. Walton (Cincinnati), KY
GLA: 543,512 sq. ft. Ceiling height: 32 feet
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Lease Renewals
Major Tenants have Significant Capital Investm ents in Properties
portfolio expire in 2017
totaling 15.1% (~2.3M Sq. Ft.) of the portfolio
portfolio have been renewed to date
737,471 Sq. Ft. 4.9% of GLA
654,080 Sq. Ft. 4.3% of GLA
543,512 Sq. Ft. 3.6% of GLA
350,819 Sq. Ft. 2.3% of GLA
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6 579 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 Experienced Managem ent Team Delivering Growth & Results
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APPENDIX
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Aligned Fee Structure Asset Managem ent
Acquisition
No Perform ance Incentives
Property Managem ent (% of revenue)
Construction Managem ent
Term
market capitalization
Asset and Property Management
No disposition, financing, leasing or developm ent fees No em ployees directly billed to REIT
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Majority-Independent Board with Extensive Real Estate & Financial Experience
Board of Trustees
Trus Trustee tee Real Real Es Estat tate/B e/Boar
d Expe xperi rience ence Inde Indepen penden dent t Trus Trustee tee Audi Audit t Comm Committ ittee ee Inve Investm stment ent Comm Committ ittee ee CG&N CG&N1 Comm Committ ittee ee
Robert Wolf
Lead Trustee
Milo Arkema
Sarah Kavanagh
Scotia Capital
Charles Swanson
Louie DiNunzio
Stuart H.B. Smith
Scott Frederiksen
Chair of the Board
(CHAIR) (CHAIR)
1.Compensation, Governance and Nominating
(CHAIR)