Q4 – 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 (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 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 MARKET 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’ 53 ……………………………… ……………………………… AVG. BLDG. SIZE (SQ. FT.) 2 TOTAL SQUARE FEET OF GLA 336,000 17,629,627 ………………………………… ………………………………… AVG. TENANT SIZE (SQ. FT.) 2 FAIR VALUE OF INVESTMENT 151,000 PROPERTIES ………………………………………. $1.0B AVG. ASSET AGE (YEARS) 2 13 ………………………………………. 1. As at December 31, 2017 2. Industrial assets only 6
Expanding U.S. Footprint 1 1. As at December 31, 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 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 Automotive 2 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% 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. 8
Prudent Use of Leverage 1 2 3.6 years Weighted average mortgage term to maturity 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 $60.8mm Revolving credit facility availability 1. As at December 31, 2017 2. Excludes the REIT’s revolving credit facility 9
Staggered Debt Maturity 1 Debt Maturities by Year 100.0 90.0 87.7 80.0 3.8% 70.0 73.7 Maturities ($ in Millions) 60.0 Weighted average 50.0 53.2 interest rate 40.0 41.0 30.0 33.9 32.1 26.4 20.0 10.0 - 2018 2019 2020 2021 2022 2023 2024 4.5% 3.4% 3.1% 4.6% 3.8% 3.7% 3.5% Weighted Average Interest Rate of Maturities 1. As at December 31, 2017 and excludes the REIT’s revolving credit facility 10
Staggered Lease Maturity Schedule Lease Expiration (% of GLA) by Year ¹ 18.8% 4.0 years 17.4% 13.6% Weighted average 13.0% 12.5% remaining lease term 11.1% 8.9% 4.7% 2018 2019 2020 2021 2022 2023 2024 2025+ 13 2 22 15 25 20 11 4 11 1. As at December 31, 2017 Number of Leases Expiring 2. Includes one month-to-month lease 11
Upcoming Lease Renewals 1 2018 As at 6/30/2017, the REIT had 4 leases totaling 2.1% of the portfolio remaining to be renewed. 2 totaling 11.1% of the portfolio expiring in 2018, including: 13 leases • Honeywell: 754,000 sq. ft. • The Clorox Company: 364,000 sq. ft. 2018 2018 • 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. 1. As at December 31, 2017 2. Includes one month-to-month lease 12
Track Record of Growing Unitholder Value 1 250 230 215.2 210 190 174.0 170 151.0 150 130 122.2 110 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 Dec-17 WIR (US $) WIR (CAD$) S &P/ TS X Composite Index (CAD$) S &P/ TS X Capped REIT Index (CAD$) 1. Unit price growth from IPO – December 31, 2017 13
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 15
Property Development Expansion Plainfield Development • 171,600 sq. ft. • 32’ clear ceiling height • Multi-tenant building • 78,000 sq. ft. leased in Q3 Mount Moriah Expansion • 47,250 sq. ft. • 8-year lease extension to 2037 16
2017 Acquisitions 17
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% 18
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