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Q4 2017 Investor Presentations ForwardLooking Statements This presentation contains "forward-looking information" as defined under Canadian securities laws which reflect managements expectations regarding objectives, plans,


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Q4 – 2017 Investor Presentations

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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, the REIT’s future growth potential and other prospects and opportunities, results

  • f 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 (the “AIF”) for the year ended December 31, 2017. 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

  • perating 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
  • f 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

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U.S. Exposure Through Experienced Platform

Veteran management team with extensive knowledge of the U.S. industrial real estate sector ONLY Canadian REIT focused exclusively on U.S. industrial real estate Unit price and annual distribution of $0.76/unit in U.S. Dollars

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Proven Growth Strategies

ACTIVE INVESTMENT PIPELINE EXPERIENCED INVESTMENT TEAM

EXTERNAL GROWTH

EXTENSIVE INDUSTRY RELATIONSHIPS

JOINT VENTURE AND DEVELOPMENT OPPORTUNITIES WITH ESTABLISHED INSTITUTIONAL PARTNERS

ENTRY INTO NEW U.S. MARKETS STRATEGIC FINANCING CONTRACTUAL RENT INCREASES MAINTAINING CONSISTENTLY HIGH OCCUPANCY

INTERNAL GROWTH

ROLLING RENTS TO MARKET AT RENEWAL PROPERTY EXPANSION AND DEVELOPMENT

WPT MANAGEMENT PLATFORM

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  • AVG. CEILING HEIGHT2

31’

………………………………

  • AVG. BLDG. SIZE (SQ. FT.)2

336,000

…………………………………

  • AVG. TENANT SIZE (SQ. FT.)2

151,000

……………………………………….

  • AVG. ASSET AGE (YEARS)2

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INVESTMENT PROPERTIES

53

………………………………

TOTAL SQUARE FEET OF GLA

17,629,627

…………………………………

FAIR VALUE OF INVESTMENT PROPERTIES

$1.0B

……………………………………….

1. As at December 31, 2017 2. Industrial assets only

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Expanding U.S. Footprint

1

7

  • 1. As at December 31, 2017
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Tenant

Industry % of Total Annualized Base Rent1 GLA Occupied (‘000s sq. ft.)1 (%) of Total Portfolio GLA1

General Mills Operations, LLC Consumer Products 5.9% 1,512.6 8.6% Unilever Home & Personal Care Consumer Products 5.1% 1,262.6 7.2% Continental Tire the Americas Consumer Products 5.1% 740.9 4.2% Zulily, LLC E-Commerce 3.8% 737.5 4.2% Keystone Automotive2 Consumer Products 3.7% 633.6 3.6% Fullbeauty Brands, Inc. E-Commerce 3.1% 741.1 4.2% 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 3.2% Essendant Co Consumer Products 2.8% 654.1 3.7% Total 38.3% 8,046.7 45.7%

High-Quality Tenant Base

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1. As at December 31, 2017 2. Comprised of two leases with Keystone Automotive Operations, Inc. and Keystone Automotive Industries, Inc.; both wholly-owned subsidiaries of LKQ Corporation.

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Prudent Use of Leverage

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3.6 years Weighted average mortgage term to maturity

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3.7% Weighted average effective interest rate 42.1% Total debt to GBV 3.2x Fixed charge coverage ratio 7.1x Debt to adjusted EBITDA $60.8mm Revolving credit facility availability

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1. As at December 31, 2017 2. Excludes the REIT’s revolving credit facility

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Staggered Debt Maturity

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1. As at December 31, 2017 and excludes the REIT’s revolving credit facility

33.9 32.1 87.7 73.7 26.4 53.2 41.0

  • 10.0

20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 2018 2019 2020 2021 2022 2023 2024

Maturities ($ in Millions)

Debt Maturities by Year

4.5% 3.4% 3.1% 4.6% 3.8% 3.7% 3.5% Weighted Average Interest Rate of Maturities

3.8%

Weighted average interest rate

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4.0 years

Weighted average remaining lease term

Staggered Lease Maturity Schedule

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1. As at December 31, 2017 2. Includes one month-to-month lease

11.1% 13.6% 17.4% 13.0% 18.8% 12.5% 4.7% 8.9%

2018 2019 2020 2021 2022 2023 2024 2025+

Lease Expiration (% of GLA) by Year ¹

132 22 15 25 20 11 4 11 Number of Leases Expiring

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Upcoming Lease Renewals

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2018 2018

As at 6/30/2017, the REIT had 4 leases totaling 2.1% of the portfolio remaining to be renewed.

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1. As at December 31, 2017 2. Includes one month-to-month lease

2018

13 leases

2 totaling 11.1% of the portfolio expiring in 2018, including:

  • Honeywell: 754,000 sq. ft.
  • The Clorox Company: 364,000 sq. ft.
  • KGP Logistics: 311,100 sq. ft.
  • UPS: 300,000 sq. ft.

2019

22 leases totaling 13.6% of the portfolio expiring in 2019, including:

  • CEVA Logistics U.S. Inc: 648,750 sq. ft.
  • Amazon.com: 572,000 sq. ft.
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Track Record of Growing Unitholder Value

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  • 1. Unit price growth from IPO – December 31, 2017

174.0 215.2 151.0 122.2 70 90 110 130 150 170 190 210 230 250 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 Dec-17 WIR (US $) WIR (CAD$) S &P/ TS X Composite Index (CAD$) S &P/ TS X Capped REIT Index (CAD$)

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July 2017 Successful Equity Raise

  • Net proceeds of approximately

$83mm (inclusive of over-allotment)

  • Provided approximately $166mm of

purchase capacity (assuming 50% Debt/GBV)

  • Participation from both existing and

new investors

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Plainfield Development Mount Moriah Expansion

  • 171,600 sq. ft.
  • 32’ clear ceiling height
  • Multi-tenant building
  • 78,000 sq. ft. leased in Q3

Property Development Expansion

  • 47,250 sq. ft.
  • 8-year lease extension to

2037

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2017 Acquisitions

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Interstate Crossroads Distribution Center

Location: Portland, OR Acquired: July 5, 2017 Purchase Price: $56.0mm Square Feet: 492,554 Land Size(Acres): 28.13 Clear Height: 32’ Occupancy: 100%

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Interstate Crossroads Distribution Center – Tenants

LKQ Corp (NASDAQ: LKQ) 229,141 Sq. Ft. REIT’s 4th Largest Tenant Staples, Inc. (NASDAQ: SPLS) 263,413 Sq. Ft.

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Apex Distribution Center

Location: Houston, TX Acquired: August 3, 2017 Purchase Price: $40.3mm Year Built: 2005 & 2015 Square Feet: 410,600 Land Size(Acres): 24.76 Clear Height: 28’ - 32’ Occupancy: 86.2% # of Tenants: 5

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Apex Distribution Center - Tenants

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Building Two 204,070 sq. ft.

(divisible)

Building One 140,110 sq. ft. Building Three 66,420 sq. ft.

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3000 AM Drive

Location: Quakertown, PA Acquired: September 13, 2017 Purchase Price: $74.3mm Square Feet: 935,540 Land Size(Acres): 76.84 Clear Height: 30’ Occupancy: 100%

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3000 AM Drive – Tenants

Continental Tires the Americas, LLC 740,880 Sq. Ft. REIT’s 3rd Largest Tenant XPO Logistics Supply Chain (NASDAQ: XPO) 194,660 Sq. Ft.

219,257 Sq. ft. Potential Expansion

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8770 Technology Drive

Location: Reno, NV Acquired: November 29, 2017 Purchase Price: $6.4mm Square Feet: 98,270 Land Size(Acres): 74.56 Clear Height: 28’ Occupancy: 100%

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Compelling U.S. Industrial Market Fundamentals

Source: Cushman & Wakefield Research – Q4 2017

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Source: CBRE Q4 2017 US Industrial & Logistics Figures

U.S. Industrial New Construction Deliveries

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Industrial Development Building Momentum

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If 100% of the development activity currently in the pipeline goes unleased; the worst case scenario is the vacancy rate would increase to 6.3%, which is still 15% below the 10-year average.

(Source: CBRE Western US Industrial and Office Conference)

The construction pipeline is at its highest level this cycle. Despite the increase, supply and demand remain in relative equilibrium in most markets. Speculative projects account for 161.6 msf (or 66.4%)

  • f year-to-date deliveries, and given the tight market, developers continue to break ground given the

strong underlying fundamentals.

(Source: Cushman Wakefield US Industrial MarketBeat, Q4 2017)

From a development perspective, nearly 221.2m square feet of new inventory is currently under

  • construction. Overall pre-leasing was stronger than the previous quarter, with the pre-leasing rate for

new deliveries at 54.2%.

(Source: JLL Research Report: First Look at Industrial, Q3 2017)

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Market Indicators

Source: Cushman & Wakefield Research

As top logistics markets continue to operate at a sub-3.0 percent vacancy rate, we expect continued competition for quality space and added pressure on rents through 2018. Market Indicators

Source: Cushman & Wakefield Research

Overall Vacancy 5.5% 5.1% Net Absorption 63.1mm 63.3mm Under Construction 215.6mm 242.5mm Weighted Asking Rent (NNN) $5.63 $5.84

Vacancy Drops to Record Low Despite Robust Development

U.S. Research Report | Q3 2017 | Industrial Market Outlook | Colliers International

Tenant Demand Continues to Drive Rent Growth

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Tightening markets and new, higher-quality Class A industrial space drove up asking rents to $6.32 per square foot per year in Q3 2017, 10% higher than the same time last year. The importance of securing well-placed, modern distribution centers because of e- commerce, coupled with higher transportation costs, have rendered rising asking rates less pertinent.

Source: JLL Q4 2017 Industrial First Look Source: CBRE 2018 U.S. Real Estate Market Outlook

Q4 16 Q4 17

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E-Commerce Growth Potential

30 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2015 2016 2017E 2018E 2019E 2020E

E-Commerce Sales, Global

($, Trillions)

  • Nearly 25% of total U.S. leasing demand came

from e-commerce companies expanding their footprints in markets where they already had a

  • presence. In comparison, in 2016 e-commerce

had 14.7% of the total U.S. leasing market share

  • The continued surge in online sales and the need

to get products to consumers quickly while minimizing supply chain costs are forcing retailers and wholesalers into modern facilities and rapidly changing supply chain strategy.

  • Fourth quarter e-commerce sales increased

~16.8% from the same period in 2016 compared to a total retail sales increase of 5.3%.2

(Source: JLL Research Report: First Look at Industrial, Q3 2017) (Source: Colliers Research Report: Industrial Market Outlook, Q3 2017) (Source: Q4 2017 US Census Bureau’s ‘Quarterly Retail E-Commerce Sales)

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Asset and Property Management

Asset Management

  • 0.25% of GBV

Property Management (% of revenue)

  • 2% on single-tenant industrial
  • 3% on multi-tenant industrial
  • 4% on office

No disposition, financing, leasing, development

  • r incentive fees.

Construction Management

  • 5% on non-maintenance capital projects >100,000

Acquisitions

  • 1.0% on first $100mm
  • 0.75% on next $100mm
  • 0.5% over $200mm

No employees directly billed to REIT Term

  • Expires April 2023

Automatic internalization at $750 million equity market capitalization

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Research Analyst Coverage

Name Firm Email Phone

Troy MacLean, CFA BMO Capital Markets troy.maclean@bmo.com (416) 359-8366 Dean Wilkinson, CFA CIBC dean.wilkinson@cibc.com (416) 594-7194 Michael Markidis, CFA Desjardins Capital Markets michael.markidis@Desjardins.com (416) 607-3028 Himanshu Gupta, CA, CFA GMP Securities hgupta@gmpsecurities.com (416) 941-6732 Brad Sturges, CFA iA Securities bsturges@iagto.ca (416) 203-5827 Matt Kornack National Bank Financial matt.kornack@nbc.ca (416) 507-8104 Neil Downey, CFA, CA, CPA RBC Capital Markets neil.downey@rbccm.com (416) 842-7835 Pammi Bir, CPA, CA, CFA Scotia Capital pammi.bri@Scotiabank.com (416) 863-7218

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Trustee Real Estate/Board Experience Independent Trustee Audit Committee Investment Committee CG&N1 Committee

Milo Arkema

  • Independent Consultant
  • Former Accountant, Baker Tilly Virchow Krause, LLP

  

Louie DiNunzio

  • Senior Vice President of Investments, Cadillac Fairview
  • Chartered Accountant

  

Scott Frederiksen

Chair of the Board

  • CEO, WPT Capital Advisors, LLC & Welsh Property Trust, LLC
  • 30 Years with Welsh Organization

Sarah Kavanagh

  • Former Commissioner, Ontario Securities Commission
  • Former Vice Chair, Co-Head, Diversified Industry Group, Scotia Capital

  

Stuart H.B. Smith

  • Chairman and Founder, EPIC Realty Partners Inc.
  • Former President and CEO of Oxford Properties Group

Pamela Spackman

  • Former President and CEO, Column Canada Financial Corp
  • Former Vice-President of Mortgage Investments, Ministry of Finance,

Province of British Columbia

 

Robert Wolf

Lead Trustee

  • Principal, RTW Capital Corporation
  • Former CFO, RioCan REIT

 

(CHAIR) (CHAIR) (CHAIR) 1.Compensation, Governance and Nominating

Board of Trustees

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Scott Frederiksen

Chief Executive Officer P: 612-800-8501 E: stf@wptreit.com