Q3 – 2017 Investor Presentations
Forward–Looking Statements 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, the REIT’s future growth 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 and the REIT’s annual information form for the year ended December 31, 2016 (the “AIF”). 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 REIT’s MD&A and the AIF. Certain terms included in this presentation such as funds from operations (“FFO”), adjusted funds from operations (“AFFO”), adjusted cash flow from operations (“ACFO”) 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. 2
U.S. Exposure Through Experienced Platform Veteran management team with extensive knowledge of the U.S. industrial real estate sector Unit price and annual distribution of $0.76/unit in U.S. Dollars ONLY Canadian REIT focused exclusively on U.S. industrial real estate 4
Proven Growth Strategies MAINTAINING CONTRACTUAL ACTIVE EXPERIENCED CONSISTENTLY RENT INVESTMENT INVESTMENT HIGH INCREASES PIPELINE TEAM OCCUPANCY WPT ROLLING EXTENSIVE INTERNAL EXTERNAL MANAGEMENT RENTS TO INDUSTRY GROWTH GROWTH MARKETS AT PLATFORM RELATIONSHIPS RENEWAL JOINT VENTURE AND PROPERTY ENTRY INTO STRATEGIC DEVELOPMENT EXPANSION NEW U.S. FINANCING OPPORTUNITIES AND MARKETS WITH ESTABLISHED DEVELOPMENT INSTITUTIONAL PARTNERS 5
AVG. CEILING HEIGHT 2 INVESTMENT PROPERTIES 31’ 51 ……………………………… ……………………………… AVG. BLDG. SIZE (SQ. FT.) 2 TOTAL SQUARE FEET OF GLA 343,000 17.3mm ………………………………… ………………………………… AVG. TENANT SIZE (SQ. FT.) 2 FAIR VALUE OF INVESTMENT 152,000 PROPERTIES ………………………………………. $1.0B AVG. ASSET AGE (YEARS) 2 13 ………………………………………. 1. As at September 30, 2017 2. Industrial assets only 6
Expanding U.S. Footprint 1 West Region Central Region East Region Seattle Portland Minneapolis Milwaukee Detroit Northern NJ Central PA Chicago Reno Salt Lake City Columbus Indianapolis Baltimore Northern Cincinnati Denver Kansas City California Louisville St. Louis Charlotte Los Angeles/ Nashville Inland Memphis Atlanta Empire Phoenix Dallas Florida Houston (North, Current Markets Central, Target Markets South) *Each blue dot represents 1,000 people Source: U.S. Census Bureau 1. As at September 30, 2017 7
High-Quality Tenant Base % of Total Annualized GLA Occupied (%) of Total Portfolio Tenant Industry Base Rent 1 (‘000s sq. ft.) 1 GLA 1 General Mills Operations, LLC Consumer Products 6.0% 1,512.6 8.7% Unilever Home & Personal Care Consumer Products 5.2% 1,262.6 7.3% Continental Tire the Americas Consumer Products 5.2% 740.9 4.3% Zulily, LLC E-Commerce 3.9% 737.5 4.3% Keystone Automotive 2 Consumer Products 3.5% 580.0 3.3% Fullbeauty Brands, Inc. Consumer Products 3.2% 741.1 4.3% Radial, Inc. E-Commerce 3.0% 543.5 3.1% CEVA Logistics U.S. Inc. Third Party Logistics 2.9% 648.8 3.7% Amazon.com E-Commerce 2.9% 572.0 3.3% Honeywell International Inc. Industrial Products 2.8% 754.0 4.4% Total 38.6% 8,093.0 46.7% 1. As at September 30, 2017 2. Comprised of two leases with Keystone Automotive Operations, Inc. and Keystone Automotive Industries, Inc.; both wholly-owned subsidiaries of LKQ Corporation. 8
Prudent Use of Leverage 1 2 3.9 years Weighted average mortgage term to maturity 2 3.8% Weighted average effective interest rate 41.6% Total debt to GBV 3.2x Fixed charge coverage ratio 7.1x Debt to adjusted EBITDA $68.6mm Revolving credit facility availability 1. As at September 30, 2017 2. Excludes the REIT’s construction debt and revolving credit facility 9
Staggered Debt Maturity 1 Debt Maturities by Year 100.0 5.0% 87.7 90.0 80.0 4.0% 73.7 70.0 Maturities ($ in Millions) 60.0 3.0% 53.2 50.0 41.0 40.0 2.0% 33.9 32.1 26.4 30.0 20.0 1.0% 10.0 0.6 - 0.0% 2017 2018 2019 2020 2021 2022 2023 2024 1. As at September 30, 2017 and excludes the REIT’s construction debt and revolving credit facility 10
Staggered Lease Maturity Schedule Lease Expiration (% of GLA) by Year ¹ 4.1 years 17.7% 17.6% Weighted average 13.6% 13.1% 13.1% 12.2% remaining lease term 11.3% 1.4% 2017 2018 2019 2020 2021 2022 2023 2024+ 2 2 13 21 15 25 19 10 15 1. As at September 30, 2017 Number of Leases Expiring 2. Includes one month-to-month lease 11
Upcoming Lease Renewals 1 2017 2 2 leases totaling 1.4% of the portfolio expiring in 2017 As at 6/30/2017, the REIT had 4 leases totaling 2.1% of the portfolio remaining to be renewed. 2018 2018 2018 13 leases totaling 11.3% of the portfolio expiring in 2018, including: • Honeywell: 754,000 sq. ft./4.4% of GLA • The Clorox Company: 364,000 sq. ft./2.1% of GLA • KGP Logistics: 311,100 sq. ft./1.8% of GLA • UPS: 300,000 sq. ft./ 1.7% of GLA 2019 21 leases totaling 13.1% of the portfolio expiring in 2019, including: • CEVA Logistics U.S. Inc: 648,750 sq. ft./3.7% of GLA • Amazon.com: 572,000 sq. ft./3.3% of GLA 1. As at September 30, 2017 2. Includes one month-to-month lease 12
Track Record of Growing Unitholder Value 1 250 230 220.9 210 190 180.1 170 150 144.6 130 115.5 110 90 70 Mar-13 Jun-13 S ep-13 Dec-13 Mar-14 Jun-14 S ep-14 Dec-14 Mar-15 Jun-15 S ep-15 Dec-15 Mar-16 Jun-16 S ep-16 Dec-16 Mar-17 Jun-17 S ep-17 WIR (US $) WIR (CAD$) S &P/ TS X Composit e Index (CAD$) S &P/ TS X Capped REIT Index (CAD$) 1. As at September 30, 2017 Unit price growth from IPO – Sept. 30, 2017 13
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