INVESTOR PRESENTATION Second Quarter 20 16 1
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 including the REIT’s ability to invest in private funds and the future prospects and opportunities relating to investment in, or co-investment with, such private funds, the current or future status of the REIT’s Unitholder Rights Plan Agreement, 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. 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 AIF. Certain terms included in this presentation such as funds from operations (“FFO”), adjusted funds from operations (“AFFO”) 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. All currency in U.S. dollars 2
US Industrial Market Update 56 20 Inner Park Drive Pontoon Beach, Illinois 3 GLA: 1,262,648 sq. ft. Ceiling height: 32 feet
Demand for Industrial 24 consecutive quarters of industrial demand outstripping supply. (Source: JLL Investm ent Outlook, Q1 2016) 2016 opens with 59.6 million sq ft of positive net absorption (Source: CBRE Market Snapshot, Q1 2016) E-commerce sales in the U.S. were up 15.2% in Q1 2016 vs. Q1 2015, while total sales increased 2.2% for the same period. (Source: U.S. Census Bureau, May 2016) 2016 Sales volume remain 10.2% above the 10-year first-quarter average (Excludes the 2015 IndCor Acquisition) . (Source: JLL Investm ent Outlook, Q1 2016) Industrial Fundam entals Solid 4
Development Activity Nationwide availability hits a 15- year low (Source: CBRE Marketview snapshot, Q1 2016) Current space requirements in the market (~249MM sf) exceed active speculative construction by a factor of 2.3x . (Source: JLL US Industrial Outlook Q2 2015, JLL US Industrial First Look Q3 2015 & CoStar – Costar data includes all industrial product types) Strong Absorption will Fuel Developm ent 5
Growing Rents Rents are Rising 6
WPT Industrial REIT Update 10 0 West Thom as P Echols Drive Louisville, KY 7 GLA: 936,000 sq. ft. Ceiling height: 32 feet
Specific concentration in U.S. distribution and logistics market Managed by WPT Capital Advisors • Over 35 years of experience ONLY Canadian REIT focused exclusively on Annual distribution of U.S. Industrial Real Estate $0.76/ unit in U.S. Dollars Unique Investm ent Vehicle 8
$255.4 Million 11 Institutional Quality Properties Acquisitions since IPO 6.5 Million Square Feet 17 High-Quality Tenants 6 76 6 Pontius Rd. Cincinnati, Ohio GLA: 754,000 sq. ft. Ceiling height: 35 feet Significant Growth since IPO 9
1 Current Portfolio 48 Properties 15.1M Minneapolis sq. ft. of GLA “The value of goods delivered by same-day delivery is expected to increase by 154% annually through 2018.” (Source: Business Insider Intelligence Estimates) 1. As of June 30, 2016 Strategically Located in Key Distribution Markets 10
1 Institutional-Quality Portfolio 31 feet 2 Average Clear Ceiling Heights 14 Years Average Asset Age 321,0 0 0 Sq. Ft. 2 Average Building Size 187,0 0 0 Sq. Ft. 2 Average Tenant Size 1. As of June 30, 2016 2. Industrial assets only State-of-the-Art Assets 11
High-Quality Tenant Base Top 10 Tenants* % of Total Annualized (%) of Total Tenant Base Rent GLA Occupied Portfolio GLA Sector General Mills Operations, LLC 7.3% 1,512,552 10.0% Consumer Products Unilever Home & Personal Care 6.2% 1,262,648 8.4% Consumer Products Zulily Inc 4.1% 737,471 4.9% Online Retailer Fullbeauty Brands, Inc. 3.9% 741,092 4.9% Online Retailer Essendant Co (Formerly United 3.7% 654,080 4.3% Consumer Products Stationers Supply Co) CEVA Logistics U.S. Inc. 3.5% 648,750 4.3% Logistics Amazon.com 3.4% 572,000 3.8% Online Retailer Radial, Inc. (Formerly eBay 3.4% 543,512 3.6% Online Retailer Enterprise, Inc.) Honeywell International Inc 3.3% 754,000 5.0% Consumer Products KGP Logistics, Inc. 3.1% 311,100 2.1% Logistics Total 4 1.9% 7,737,20 5 51.3% *As of June 30 , 20 16 Stable and Diversified Tenant Mix 12
Financial Overview 6 76 6 Pontius Rd. Cincinnati, Ohio GLA: 754,000 sq. ft. Ceiling height: 35 feet 13
Consistent Growth Since IPO Q2 20 16 Q1 20 16 Q4 20 15 Q3 20 15 Q2 20 15 (US$,0 0 0 except per Unit am ounts) Investment properties $ 17,550 $ 17,564 $ 15,769 $ 17,705 $ 17,563 revenue NOI 13,046 13,029 11,372 13,420 13,358 FFO 8,276 7,511 6,121 8,617 8,143 AFFO 7,569 7,180 7,423 7,361 7,156 AFFO per Unit $0.224 $0.213 $0.220 $0.218 $0.212 Targeting Disciplined and Accretive Growth 14
Strong Balance Sheet & Liquidity Position As of June 30, 2016 Total Debt to GBV 48.1% Weighted Average Effective Interest Rate 3.8% Weighted Average Mortgage Term-to-Maturity 4.4 yrs Interest Coverage Ratio 3.3 times Fixed Charge Coverage Ratio 2.9 times Debt to EBITDA 8.1 times AFFO Payout Ratio – Q2 2016 84.7% $31.1 Million in Capacity on Revolving Facility 15
Well-Balanced Mortgage Portfolio Mortgage Maturities by Year (1) Weighted Average Interest Rate of Maturities 100,000 6.00% 87,111 90,000 Maturities ($ in Thousands) 5.00% Weighted Average 80,000 70,000 Mortgage Term-to-Maturity 4.00% 60,000 52,498 50,011 4.4 years 50,000 3.00% 40,000 33,295 31,481 2.00% 25,762 30,000 22,067 20,000 1.00% 8,863 10,000 1,913 - 0.00% 2016 2017 2018 2019 2020 2021 2022 2023 2024 (1) As of June 30, 2016 10 0 % Fixed Rate Mortgage Debt with Weighted Average Interest Rate under 4% 16
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