Mar arch h 201 018 8 Inv nvest stor or Presen sentat tation ion
FORWARD LOOKING STATEMENTS This presentation contains certain statements that are the Company’s and Management’s hopes, intentions, beliefs, expectations, or projections of the future and might be considered to be forward- looking statements under Federal Securities laws. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and uncertainties. The company’s actual future results may differ significantly from the matters discussed in these forward-looking statements, and we undertake no obligation to release revisions to these forward- looking statements to reflect changes after we’ve made the statements. Factors and risks that could cause actual results to differ materially from expectations are disclosed elsewhere in this presentation and from time to time in greater detail in the company’s filings with the SEC including, but not limited to, the Company’s report on Form 10-K, as well as company press releases.
OVERVIEW High-Qu Qual alit ity, , Mission sion Critical, al, Long Duration on Leases es to e Rated Tenants (1) (1) Diversif sified ied Portfolio olio Invest stmen ment Grade Differen entiated ated Strategy gy with Proactive ctive Asset Manageme ement to Drive Internat ation ional al Exposur osure Long Term Portfoli folio o Value Ability to Capital aliz ize on Highly ly Experien enced ced Imbala lance ce Between en U.S. and Manage gemen ment Team Europe pean an Markets s to Deliver er Superior ior Risk Adjusted ed Returns 1. As used herein, “Investment Grade Rating” includes both actual investment grade ratings of the tenant or Implied Investment G rade. Implied Investment Grade includes ratings of tenant parent (regardless of whether or not the parent has guaranteed the tenant’s obligation under the lease) or lease guarantor. Implied Investment Grade ratings are determined u sin g proprietary Moody’s analytical tool, which compares the risk metrics of the non -rated company to those of a company with an actual rating. Ratings information is as of December 31, 2017. 3
PORTFOLIO HIGHLIGHTS Portfoli rtfolio Overvi rview ew Properties 321 Square Feet (millions) 22.9 Tenants 100 Industries 41 Countries 7 Leased 99.5% Weighted Average Remaining Lease Term (1) 8.8 years % of SLR derived from Investment Grade 76.1% Tenants (2)(3) % of leases with contractual rent increases (3)(4) 92.8% As of December 31, 2017. 1. Weighted average remaining lease term in years based on square feet as of December 31, 2017. 2. Refer to Investment Grade Rating definition included in the footnotes to page 2. Comprised of 37.3% leased to tenants with an actual investment grade rating and 38.8% leased to tenants with an implied investment grade rating. Except for a limited exception, no peers identified by the Company reported implied investment grade ratings in their reporting of investment grade tenancies. 3. Calculated using annualized straight- line rent (“SLR”) converted from local currency into USD as of the respective period presen ted for the in-place lease on the property on a straight-line basis, which includes tenant concessions such as free rent, as applicable. 4. Contractual rent increases include fixed percent or actual increases, or country CPI-indexed increases. 4
WELL BALANCED PORTFOLIO ng (1) 1) hy (1 (1) Credit dit Rating Geog ograp raphy Not Rated United 1% Kingdom Non Investment Grade 22% 23% The Netherlands 7% United States 49% Germany Investment Grade 9% and Implied Finland Investment Grade (2) France Luxembourg 6% 76% 5% 2% et Type (1) (1) ustry (1) 1) Asset Tenant nt Industry Government Industrial / Distribution Telecommunications Services Healthcare 31% 6% 6% Freight 5% 5% Aerospace US: 39% 6% Utilities EUR: 23% 5% Discount Retail Retail Energy 6% US: 11% 10% 5% EUR: 9% Technology 7% US: 50% EUR: 68% All Other Financial Services 35% Office 14% 59% As of December 31, 2017. 1. Metric based on SLR. Refer to SLR definition included in the footnotes to page 3. 2. Refer to Investment Grade Rating definition included in the footnotes to page 2 and page 3. 5
WELL DIVERSIFIED TENANT BASE Top Ten Tenants nts Prope perty ty % of Tena nant nt Count untry Ratin ing SLR (1) Type pe Baa2** U.S. Distribution 5% Aaa** U.S. Office 5% Baa3* U.K. Office 5% Baa3* GER Office 5% Baa1 NETH Office 4% Aa1** FIN Industrial 4% Ba1** U.S. Retail 3% Baa3* U.K. Distribution 3% Aa3 U.S. Office 3% Baa2 U.S. Office 2% % of SLR (1) (1) Top p Ten Tenants nts Repre resent nt Only nly 37% As of December 31, 2017. *Represents Moody’s Implied Rating. ** Represents Tenant Parent Rating. 1. Metric based on SLR. Refer to SLR definition included in the footnotes to page 3. 6
FOCUS ON HIGH-QUALITY TENANTS Best-in- class portfolio leased to largely “A” Investment Grade Rated Tenants (1) in well established markets in the U.S. and Europe Only Focuse sed d on Markets s with h Quality Sove vereign eign Debt Ratings gs (S&P) P) U.S. Luxemb embourg ourg Germa rmany ny The Neth therla erland nds Finland land U.K. Franc ance AA+ AA+ AAA AAA AAA AAA AAA AAA AA+ AA+ AA AA AA AA Gover ernmen ent t Services ices Multi tinat atio ional nal Corpo rporatio rations ns Finan nanci cial al Service ice Provid ider ers $2.4t n 1. Refer to Investment Grade Rating definition included in the footnotes to page 2 and page 3. 7
GNL VS. PEERS Geograph graphic c Bre reak akdown down (1 (1) Average rage Remaini aining g Lease e Term (Years ars) (3 (3) 100% 12.0 7% 10.0 80% 27% 51% 8.0 60% 100% 100% 100% 6.0 40% 9.6 9.3 66% 9.1 8.8 4.0 49% 7.2 20% 2.0 0% (2) 0.0 GNL WPC GPT SIR LXP WPC SIR LXP GNL GPT U.S. Europe Other International ed (4 (4) ing (1), (1),(5) (5) Leased % Invest estment ent Grad ade e Rating 100.0% 90% Investment Grade + Implied Investment Grade 80% Investment Grade 98.0% 70% 60% 96.0% 50% 99.8% 99.5% 98.9% 40% 76% 94.0% 30% 96.5% 96.2% 20% 40% 92.0% 36% 33% 10% 19% 90.0% 0% WPC GNL LXP GPT SIR GNL LXP SIR GPT WPC Source: All data comes from respective company filings as of 12/31/2017. 1. Metric based on SLR for GNL, and ABR for WPC, GPT, SIR and LXP. Refer to SLR definition included in the footnotes to page 3. 2. For WPC, Other International includes assets located in Canada, Australia, Norway, Hungary, Austria, Mexico, Sweden, Belgium, and Japan. 3. GNL and SIR based on square footage. WPC, LXP and GPT based on ABR. 4. Based on square footage. 5. Refer to Investment Grade Rating definition included in the footnotes to page 2 and page 3. 8
DIFFERENTIATED INVESTMENT STRATEGY Focused on single-tenant commercial properties to generate superior risk-adjusted returns • Focus on the U.S. and strong sovereign debt rated countries in Geog ograp raphy hy Continental Europe • Critical company operational sites and headquarters Asset et Type • Strategically located industrial and distribution facilities • In- house financial and business model review using Moody’s analytics • Credit dit Quality ity Continuous monitoring of improving or deteriorating credit quality for asset management opportunities • Analysis of property condition as well as local market conditions Prope pert rty y Fundame damental ntals • Review of replacement cost against current valuation • Concentration on long term leases with contractual rent increases Structure ucture and Pricing cing • Deposits and covenants help to further protect deployment of capital 9
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