Q4 – 2019 Investor Presentation
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"), , including statements concerning the REIT anticipated acquisition of four investment properties from its private capital pipeline and the expected purchase price therefor and timing for completion thereof, as well as the immediately accretive impact on the REIT’s AFFO expected from this acquisition. 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. Forward looking statements are necessarily based 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. Such estimates, beliefs and assumptions include the various assumptions set forth herein, including, but are not limited to, the REIT’s ability to meet conditions on the acquisition of the Acquisition Portfolio will be met or waived in a timely manner and that the acquisition of the Acquisition Portfolio will be completed on the current agreed upon terms, the REIT’s and the property’s future growth potential, anticipated amounts of expenses (or whether such expenses will be non-recurring), results of operations, future prospects and opportunities, the demographic and industry trends remaining unchanged, no change in legislative or regulatory matters, future levels of indebtedness, the tax laws as currently in effect remaining unchanged, the continual availability of capital, the current economic conditions remaining unchanged, and continued positive net absorption and declining vacancy rates in the markets in which the REIT’s properties are located. 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 most recently filed MD&A and the REIT’s annual information form (the “AIF”), which are available on SEDAR at www.sedar.com and, in particular, include the risks that the REIT’s acquisition of four investment properties from its private capital pipeline may not occur on the timeline and for the purchase price as expected, may occur only in part if it is completed at all, and the properties’ financial performance could differ from the forecasted performance. These forward- looking statements have been approved by management to be made as of the date of this press release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 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 includes in this presentation such as debt-to-gross book value (“GBV”), funds from operations (“FFO”), adjusted funds from operations (“AFFO”), net operating income (“NOI”), book value per Unit, same property net operating income (“Same property NOI”), capitalization rate, cash re-leasing spread, and straight-line rent re-leasing spread 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 a similarly titled measure presented by other issuers. 2
Overview WPT Industrial Real Estate Investment Trust is an internally managed and publicly traded REIT focused exclusively on the U.S. Industrial Sector
U.S. Exposure Through Fully-Integrated Platform Seasoned management team with extensive knowledge of the U.S. industrial sector Unit price and annual distribution of $0.76/unit in U.S. Dollars Access to high-barrier U.S. markets through off-market private capital acquisition pipeline 4
Proven Growth Strategies MAINTAINING CONTRACTUAL OFF-MARKET FEE REVENUE CONSISTENTLY RENT INVESTMENT FROM PRIVATE HIGH INCREASES PIPELINE CAPITAL OCCUPANCY WPT ROLLING EXTENSIVE INTERNAL EXTERNAL MANAGEMENT RENTS TO INDUSTRY GROWTH GROWTH MARKET AT PLATFORM RELATIONSHIPS RENEWAL PROPERTY ENTRY INTO PARTNERSHIPS STRATEGIC EXPANSION NEW U.S. WITH PREMIER FINANCING AND GLOBAL MARKETS INVESTORS DEVELOPMENT 5
Investment Criteria We target Tier 1 and 2 We underwrite investments distribution markets with focusing on asset basis proximity to major population relative to current centers, significant Basis replacement costs and transportation infrastructure, competitive future access to cost-effective labor, speculative development and favorable long-term rent growth prospects Rents Relative Location to Market Building Functionality We focus on acquisition of We analyze submarket and assets with in-place rents tenant-specific demand that compare favorably to drivers to determine market rents to drive long desired building attributes term NOI growth 6
AVG. CEILING HEIGHT 2 INVESTMENT PROPERTIES 3 31’ 76 ……………………………… AVG. BLDG. SIZE (SQ. FT.) 2 ……………………………… TOTAL SQUARE FEET OF GLA 3 311,000 23,219,400 ………………………………… AVG. TENANT SIZE (SQ. FT.) 2 ………………………………… 152,000 FAIR VALUE OF INVESTMENT ………………………………………. PROPERTIES AVG. ASSET AGE (YEARS) 2 $1.6B 15 1. As at December 31, 2019 2. Industrial assets only 3. Includes two assets held in joint venture 7
Quarterly Performance (all figures in ‘000s, except per Unit amounts and gross leasable area Q4 2019 Q3 2019 Q2 2019 Q1 2019 Q4 2018 (“GLA”)) Investment properties revenue $ 31,882 $ 29,335 $ 28,714 $ 25,198 $ 24,494 Management fee revenue 501 2,237 358 491 1,703 NOI 23,145 21,788 21,164 18,141 17,641 FFO 14,176 14,807 12,961 9,614 10,966 0.216 0.243 0.213 0.176 0.216 FFO per Unit (diluted) AFFO 11,069 11,980 9,759 6,698 9,023 AFFO per Unit (diluted) 0.169 0.197 0.161 0.123 0.178 Book value per Unit 13.31 13.09 12.88 12.40 12.26 GLA 1 22,870,482 22,765,482 20,767,799 18,850,627 18,850,627 Occupancy 1 99.0% 99.5% 99.4% 99.1% 99.3% 1 3.1% 4.5% 4.1% 3.4% 1.1% Same property NOI % Weighted average remaining lease term (years) 1 4.9 5.1 4.9 4.5 4.7 1. Excludes properties owned by the equity accounted joint venture 2. Quarterly same property NOI vs. comparable period for the prior year 8
Expanding U.S. Footprint 1 1. As at December 31, 2019 9
Recommend
More recommend
