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INVESTOR PRESENTATION
First Quarter 2014
INVESTOR PRESENTATION First Quarter 2014 1 Forward-Looking - - PowerPoint PPT Presentation
INVESTOR PRESENTATION First Quarter 2014 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
First Quarter 2014
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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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Targeting Disciplined but Aggressive Growth
ONLY Canadian REIT focused exclusively on U.S. industrial real estate
40 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
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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 benefitting 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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Demand for Bigger Buildings
Significant Opportunity to Build Unitholder Value
has been steadily increasing.
than 1 million square feet, more than double the size of the inventory built prior to 2000.
buildings over 1 million square feet are on the rise.
Maxx, Home Depot and WalMart constructed or broke ground on +1.0 msf build-to-suits in 2013.
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Strong Acquisition Growth Since IPO
6766 Pontius Rd.
Cincinnati, Ohio
GLA: 754,000 sq. ft. Ceiling height: 35 feet
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July 2013
5620 Inner Park Drive
Pontoon Beach, IL
GLA: 1,262,000 sq. ft. Ceiling height: 32 feet
Institutional Quality Property Efficient cross-dock configuration 32 foot clear ceiling height Ample parking and large, flexible truck court 1,262,000 square foot facility, 100% leased to Unilever (NYSE: UN)
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Highlights
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April 2014
1500 Worldwide Blvd
Hebron, KY
GLA: 300,000 sq. ft. Ceiling height: 32 feet
Location: Proximity to Airport and Interstate 275 and 75 Efficient cross-dock configuration 32 foot clear ceiling height Ample parking and large, flexible truck court 300,000 square foot facility, 100% leased to UPS Supply Chain Solutions (NYSE: UPS)
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Highlights
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April 2014
1871 Willow Springs Church Road
Atlanta, GA
GLA: 1,500,000 sq. ft. Ceiling height: 32 feet
USGBC LEED Gold certified Building Efficient cross-dock configuration & rail served 32 foot clear ceiling height Ample parking and large, flexible truck court 1,512,000 square foot facility, 100% leased to General Mills (NYSE: GIS)
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Highlights
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MAJOR RAIL INFRASTRUCTURE MAJOR INTERSTATE HIGHWAYS INDUSTRIAL PROPERTIES OTHER DISTRIBUTION MARKETS
Strategically Located in Key Distribution Markets
Current Portfolio
Properties
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State-of-the-Art Warehouse and Distribution Properties
Institutional-Quality Portfolio
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1. As of March 31, 2014 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
Tenant GLA Occupied (%) of Total Portfolio GLA Remaining Lease Term (Years) Sector General Mills 1,500,000 12.83% 6.17 Consumer Products Unilever 1,262,648 10.80% 9.25 Consumer Products OSP Group / Redcats 741,092 6.34% 2.42 Online Retailer Zulily 737,471 6.31% 3.17 Online Retailer Honeywell 594,000 5.08% 4.75 Consumer Products Ebay / GSI Commerce 543,512 4.65% 3.08 Online Retailer Lifescience Logistics 394,200 3.37% 6.25 Healthcare Keystone Automotive 350,819 3.00% 3.08 Automotive Equipment KGP Logistics 311,100 2.66% 4.75 Third Party Logistics UPS 300,000 2.57% 4.75 Supply Chain Management 6,734,842 57.60% 4.91
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6766 Pontius Rd.
Cincinnati, Ohio
GLA: 754,000 sq. ft. Ceiling height: 35 feet
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Consistently Exceeded Forecast Since IPO
(US$,000 except per Unit amounts)
Period Mar 4 to June 30, 2013 Quarter ended Sept. 30, 2013 Quarter ended Dec. 31, 2013 Quarter ended Mar. 31, 2014 Investment properties revenue 8,433 12,577 12,649 12,847 NOI 6,263 9,370 9,370 9,432 FFO 3,988 5,686 5,731 5,929 AFFO 2,957 4,264 4,680 4,817 AFFO per Unit $ 0.140 $ 0.177 $ 0.197 $ 0.202 Forecast NOI 8,293 11,470 11,211 11,309 Forecast FFO 4,006 5,477 5,276 5,297 Forecast AFFO 2,912 4,097 3,973 4,164
July 2013 property acquisition makes significant contribution
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Strong Balance Sheet & Liquidity Position
As of March 31, 2014 Total Debt to GBV 52.4% Weighted Average Mortgage Effective Interest Rate 4.0% Weighted Average Mortgage Term-to-Maturity 6.5 yrs Interest Coverage Ratio 3.2 times AFFO Payout Ratio (Q1 2014) 86.4% Fixed Charge Ratio 2.7 times
$5.7 Million Invested in Trust Unit Buyback to Date
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Capitalizing on Low Interest Rate Environment
Well-Balanced Mortgage Portfolio
$15,851 $1,917 $22,957 $1,702 $64,875 $2,739 $2,859 $49,281 $1,722 $52,228 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+
($,000)
Mortgage Maturities by Year
Weighted Average Mortgage Term-to-Maturity
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Staggered Lease Maturity Profile
Limited Near-Term Tenant Turnover Weighted Average Remaining Lease Term
Lease Expirations by Year
2.8% 2.0% 15.5% 19.1% 17.5% 2.5% 18.8% 4.1% 3.7% 14.1% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+
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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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Experienced Manager – Welsh Property Trust, LLC
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
Vice President & 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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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