NAREIT June 2017 1 Forward-looking Statements The statements - - PowerPoint PPT Presentation

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NAREIT June 2017 1 Forward-looking Statements The statements - - PowerPoint PPT Presentation

NAREIT June 2017 1 Forward-looking Statements The statements contained in this presentation may include forward-looking statements within the meaning of the federal securities law. These forward-looking statements include statements relating


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NAREIT

June 2017

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Forward-looking Statements

The statements contained in this presentation may include forward-looking statements within the meaning of the federal securities law. These forward-looking statements include statements relating to, among others things, achievement of strategic targets, expectations for our operating results, business and financial condition, business and our growth prospects, as well as statements that are generally accompanied by words such as “believes,” “anticipates,” “expects,” “estimates,” “should,” “seeks,” “intends,” “proposed,” “planned,” “outlook,” “remain confident,” and “goal” or similar

  • expressions. Although Liberty believes that the expectations reflected in such forward-looking statements are based on

reasonable assumptions, it can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. These risks, uncertainties and other factors include, without limitation, uncertainties affecting real estate business generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, risks relating to the continued repositioning of the Company's portfolio, risks relating to construction and development activities, risks relating to acquisition and disposition activities, risks relating to the integration of the operations of entities that we have acquired or may acquire, risks relating to joint venture relationships and any possible need to perform under certain guarantees that we have issued or may issue in connection with such relationships, risks related to properties developed by the Company on a fee basis, risks associated with tax abatement, tax credit programs, or other government incentives, possible environmental liabilities, risks relating to leverage and debt service (including availability of financing terms acceptable to the Company and sensitivity of the Company's operations and financing arrangements to fluctuations in interest rates), dependence on the primary markets in which the Company's properties are located, the existence of complex regulations relating to status as a REIT and the adverse consequences of the failure to qualify as a REIT, risks relating to litigation and the potential adverse impact of market interest rates on the market price for the Company's securities, and other risks and uncertainties detailed in the company’s filings with the Securities and Exchange Commission. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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Platform for Growth

A national platform ▪ Market capitalization approximately $8 .5 billion ▪ 558 industrial and office properties totaling 98 million square feet ▪ National industrial platform and a focused office player ▪ High quality, diverse tenant base A company with a compelling history ▪ 45-year track record of real estate innovation and excellence ▪ 23 years operating as a public company A unique provider of high-value corporate real estate solutions ▪ An industry leader in development, leasing and tenant service ▪ Pioneered development and management of sustainable real estate A financially conservative company ▪ Superior access to capital ▪ Rated Baa1 by Moody’s, BBB by S&P and BBB by Fitch A transparent company ▪ Superior disclosure ▪ Uncomplicated structure/operation

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Liberty's Strategic Direction

Industrial Goal ▪ National industrial platform with multi-tenant industrial product in all markets and big-box where appropriate Office Goal ▪ Focused office player in a few markets with a development emphasis

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Portfolio

Industrial Office Assets

490 properties 6 8 properties

Total Square Feet

91.7 million 6 .6 million

Average Size

18 7,000 sf 97,000 sf

Average Lease

77,000 sf 24,000 sf

Average Rent (PSF)

$4.8 7 $24.14

Average Age

16 years 16 years

% Sustainable (SF)

27% 6 5%

Largest Tenants

Uline, Inc. The Vanguard Group, Inc. Amazon.com Comcast Corporation Home Depot U.S.A., Inc. GlaxoSmithKline LLC The Procter & Gamble Distributing LLC United States of America Kellogg Sales Company The Pennsylvania Hospital

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Reshaped portfolio to capture stability of a national industrial platform and value-creating opportunities of a highly focused office operation

Evolution of the Platform

Completed five-year strategic plan

Industrial Distribution 34% 46 % 51% 58 % 8 0% Flex 14% 12% 12% 12% _ Suburban Office 47% 35% 30% 23% 11% Metro Office 5% 7% 7% 7% 9% 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016

RENT - JVs AT EQUITY SHARE

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High Quality Portfolio in Key Industrial Markets

Liberty is active in 13 of the top 15 industrial markets and has access to 6 1% of the nation's industrial business*

# Market Total SF (000)'s 1 Lehigh Valley/Central PA 25,920,06 7 2 Chicago/Milwaukee 12,079,591 3 Carolinas 8 ,037,114 4 Houston 7,232,311 5 New Jersey 5,328 ,26 3 6 Richmond/Hampton Roads 4,519,206 7 Cincinnati/Columbus/Indianapolis 3,948 ,376 8 Maryland 3,708 ,26 2 9 Orlando 3,705,534 10 Minnesota 2,6 39,8 07 11 South Florida 2,437,157 12 Southern California 2,08 9,212 13 Atlanta 1,96 9,8 31 14 Dallas 1,8 6 1,199 15 Arizona 1,8 21,010 16 Tampa 1,8 05,494 17 United Kingdom 1,38 0,8 78 18 Southeastern PA/Philadelphia 1,178 ,36 8

Aurora - 900 Bilter Road Philadelphia - 4300 S. 26 tth Street Houston - 8 103 Fallbrook Drive Tempe - 2040 W. Rio Salado Pkwy

LPT DATA AS OF 3/31/17. *CUSHMAN & WAKEFIELD'S TOP 40 INDUSTRIAL MARKETS.

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Strong Operating Performance

Occupancy

12/31/13 12/31/14 12/31/15 12/31/16 03/31/17

91.6 % 93.0% 93.7% 95.5% 96 .1%

Leasing Volume (000's) Rental Increases (s/l)

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

2.4% 5.0% 8 .1% 7.7% 10.2% 9.1% 7.3% 12.0% 17.5%

Leasing Costs

2013 2014 2015 2016 1Q2017

26 ,8 24 25,005 29,192 26 ,08 9 6 ,6 8 1

2013 2014 2015 2016 1Q2017

$3.19 $3.76 $3.33 $2.91 $2.59

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Same Store Performance

Liberty Industrial Same Store Growth

2013 2014 2015 2016 1Q2017

4.4% 1.1% 3.6 % 5.1% 2.4%

Executed Industrial Leases with Rent Escalations (SF) Average Industrial Escalations

2013 2014 2015 2016 1Q2017

8 9.3% 93.1% 96 .5% 96 .6 % 99.6 %

2013 2014 2015 2016 1Q2017

2.0% 2.6 % 2.5% 2.5% 2.5%

SOURCE: LPT INTERNAL DATA. ALL CASH BASIS.

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Geographically Diversified Industrial Markets

Arizona: 1.4% United Kingdom: 1.6 % Atlanta: 1.9% New Jersey: 2.2% Tampa: 2.2% Dallas: 2.2% Minnesota: 2.3% Southern California: 2.4% Cincy/Indy/Col: 3.3% Philly/Southeastern PA: 3.8 % Orlando: 4.3% South FL: 4.3% Maryland: 4.6 % Richmond/Hampton Roads: 5.0% Chicago: 8 .3% Carolinas: 8 .7% Houston: 9.9% Lehigh Valley/Central PA: 31.6 %

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L e h i g h V a l l e y / C e n t r a l P A H

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i n a s C h i c a g

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t h F L O r l a n d

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t h e a s t e r n P A C i n c y / I n d y / C

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t h e r n C a l i f

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n i a M i n n e s

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a D a l l a s T a m p a N e w J e r s e y A t l a n t a U n i t e d K i n g d

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A r i z

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Lehigh Valley/Central PA Industrial

Percent of Industrial Rent (1) Vacancy Rates

Liberty achieves the market's highest average rents

LPT Market

$4.8 7 $4.49 26 million square foot portfolio

LPT DRE FR PLD DCT Market

0.2% 1.2% 3.2% 6 .0% 4.6 % 6 .3%

SOURCES: COMPANY FINANCIAL SUPPLEMENTAL PACKAGES. MARKET INFO: CBRE INDUSTRIAL MARKET REPORT AS OF 3/31/17. (1) LPT JOINT VENTURES AT EQUITY SHARE.

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Focused Office in Four Core Markets

Philadelphia Southeastern Pennsylvania (Vanguard + KOP) Washington D.C. Arizona United Kingdom Total SF 2,046 ,158 2,128 ,48 2 597,756 433,952 6 27,6 8 3 Number of Properties 9 26 3 3 21 Number of Tenants 43 51 45 4 6 9 Average Size of Properties (SF) 227,000 8 2,000 199,000 145,000 30,000 Average Lease Size (SF) 44,000 28 ,000 11,000 8 3,000 7,000 Occupancy 98 .7% 8 2.2% 93.4% 95.6 % 8 4.8 % Average Age 8 20 27 5 16 Major Tenants

Comcast Corporation The Vanguard Group, Inc. United States of America The Vanguard Group, Inc. Cabot Financial (Europe) LTD GlaxoSmithKline LLC Yellow Book USA, Inc. National Assoc. of County & City Health DHL Express, (USA), Inc. AB World Foods Ltd The Pennsylvania Hospital United States of America The Corporate Council on Africa Centene Management Company, LLC MDA Searchflow Ltd Franklin Square Holdings, LP SunGard Data Systems, Inc. Puerto Rico Federal Affairs Adm. WageWorks, Inc. Sterling Insurance Group Ltd Adaptimmune, LLC GENEX Services, Inc. Conference of State Bank Supervisors Aecom Professional Services LLP DATA AS OF 3/31/17. DOES NOT INCLUDE 733,6 75 SF OF NON-CORE OFFICE. JVs at 100%.

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Financial Strength

Shares/Units: 6 8 .5% Unsecured Debt: 26 .9% Mortgage Debt: 3.2% Credit Facility: 1.4%

Market Capitalization (3.31.17) Schedule of Maturities (3.31.17) Debt to Gross Assets

2013 2014 2015 2016 1Q2017

40.9% 40.5% 40.8 % 36 .9% 37.9%

Debt to EBITDA

Mortgages Unsecured Notes Credit Facility

400 200

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

2013 2014 2015 2016 1Q2017

5.6 5.9 6 .0 6 .2 5.5

& after

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Growth & Value Creation - Development

Development Pipeline ($m) Development Deliveries ($m)

2013 2014 (1) 2015 (1) 2016 (1) 1Q2017 (1) $393 $1,431 $1,703 $1,490 $1,56 8 2013 2014 2015 2016 1Q2017 $28 1 $314 $251 $6 22 $16

JOINT VENTURES AT 100%. (1) INCLUDES COMCAST TECHNOLOGY CENTER

  • Est. Remainder
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BTS Office (2): 6 5.8 % Inventory Office: 4.1% BTS Industrial: 3.2% Inventory Industrial: 26 .9%

Growth & Value Creation - Development

$1.6 B Development Pipeline (1) Pipeline Yield

Inventory Industrial: 6 6 .6 % BTS Industrial: 6 .4% BTS Office: 16 .2% Inventory Office: 10.8 %

$6 01.4M Development Pipeline (1) (3)

2013 2014 2015 2016 1Q2017

8 .1% 8 .1% 8 .2% 8 .0% 8 .0%

JOINT VENTURES AT 100%. (1) DATA AS OF 3/31/17. (2) INCLUDES COMCAST TECHNOLOGY CENTER. (3) WHOLLY OWNED ONLY

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Growth & Value Creation - Development

Industrial Pipeline by SF

WHOLLY OWNED ONLY. DATA AS OF 3/31/17.

Chicago: 1.7% California: 2.8 % New Jersey: 3.3% United Kingdom: 3.7% Maryland: 3.9% Atlanta: 6 .4% Houston: 7.5% South Florida: 9.7% Arizona: 11.9% Carolinas: 12.7% Dallas: 16 .4% Lehigh Valley/Central PA: 19.9%

Industrial Pipeline by Projected Investment

Chicago: 2.7% California: 3.5% New Jersey: 3.9% United Kingdom: 4.3% Atlanta: 4.9% Maryland: 5.1% Houston: 5.8 % Arizona: 9.4% Carolinas: 10.8 % South Florida: 13.7% Dallas: 16 .3% Lehigh Valley/Central PA: 19.5%

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