NAREIT June 2017 1
Forward-looking Statements The statements contained in this presentation may include forward-looking statements within the meaning of the federal securities law. These forward-looking statements include statements relating to, among others things, achievement of strategic targets, expectations for our operating results, business and financial condition, business and our growth prospects, as well as statements that are generally accompanied by words such as “believes,” “anticipates,” “expects,” “estimates,” “should,” “seeks,” “intends,” “proposed,” “planned,” “outlook,” “remain confident,” and “goal” or similar expressions. Although Liberty believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. These risks, uncertainties and other factors include, without limitation, uncertainties affecting real estate business generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, risks relating to the continued repositioning of the Company's portfolio, risks relating to construction and development activities, risks relating to acquisition and disposition activities, risks relating to the integration of the operations of entities that we have acquired or may acquire, risks relating to joint venture relationships and any possible need to perform under certain guarantees that we have issued or may issue in connection with such relationships, risks related to properties developed by the Company on a fee basis, risks associated with tax abatement, tax credit programs, or other government incentives, possible environmental liabilities, risks relating to leverage and debt service (including availability of financing terms acceptable to the Company and sensitivity of the Company's operations and financing arrangements to fluctuations in interest rates), dependence on the primary markets in which the Company's properties are located, the existence of complex regulations relating to status as a REIT and the adverse consequences of the failure to qualify as a REIT, risks relating to litigation and the potential adverse impact of market interest rates on the market price for the Company's securities, and other risks and uncertainties detailed in the company’s filings with the Securities and Exchange Commission. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. 2
Platform for Growth A national platform ▪ Market capitalization approximately $8 .5 billion 558 industrial and office properties totaling 98 million square feet ▪ National industrial platform and a focused office player ▪ High quality, diverse tenant base ▪ A company with a compelling history 45-year track record of real estate innovation and excellence ▪ 23 years operating as a public company ▪ A unique provider of high-value corporate real estate solutions An industry leader in development, leasing and tenant service ▪ Pioneered development and management of sustainable real estate ▪ A financially conservative company Superior access to capital ▪ Rated Baa1 by Moody’s, BBB by S&P and BBB by Fitch ▪ A transparent company Superior disclosure ▪ Uncomplicated structure/operation ▪ 3
Liberty's Strategic Direction Industrial Goal ▪ National industrial platform with multi-tenant industrial product in all markets and big-box where appropriate Office Goal ▪ Focused office player in a few markets with a development emphasis 4
Portfolio Industrial Office Assets 490 properties 6 8 properties Total Square Feet 91.7 million 6 .6 million Average Size 18 7,000 sf 97,000 sf Average Lease 77,000 sf 24,000 sf Average Rent (PSF) $4.8 7 $24.14 Average Age 16 years 16 years % Sustainable (SF) 27% 6 5% Uline, Inc. The Vanguard Group, Inc. Amazon.com Comcast Corporation Largest Tenants Home Depot U.S.A., Inc. GlaxoSmithKline LLC The Procter & Gamble Distributing LLC United States of America Kellogg Sales Company The Pennsylvania Hospital 5
Evolution of the Platform Completed five-year strategic plan Reshaped portfolio to capture stability of a national industrial platform and value-creating opportunities of a highly focused office operation 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 Industrial 34% 46 % 51% 58 % 8 0% Distribution Flex 14% 12% 12% 12% _ Suburban Office 47% 35% 30% 23% 11% Metro Office 5% 7% 7% 7% 9% 6 RENT - JVs AT EQUITY SHARE
High Quality Portfolio in Key Industrial Markets Liberty is active in 13 of the top 15 industrial markets and has access to 6 1% of the nation's industrial business* Total SF # Market (000)'s 1 Lehigh Valley/Central PA 25,920,06 7 2 Chicago/Milwaukee 12,079,591 Aurora - 900 Bilter Road 3 Carolinas 8 ,037,114 4 Houston 7,232,311 5 New Jersey 5,328 ,26 3 6 Richmond/Hampton Roads 4,519,206 7 Cincinnati/Columbus/Indianapolis 3,948 ,376 8 Maryland 3,708 ,26 2 9 Orlando 3,705,534 10 Minnesota 2,6 39,8 07 Philadelphia - 4300 S. 26 tth Street 11 South Florida 2,437,157 12 Southern California 2,08 9,212 13 Atlanta 1,96 9,8 31 14 Dallas 1,8 6 1,199 15 Arizona 1,8 21,010 16 Tampa 1,8 05,494 17 United Kingdom 1,38 0,8 78 18 Southeastern PA/Philadelphia 1,178 ,36 8 Tempe - 2040 W. Rio Salado Pkwy Houston - 8 103 Fallbrook Drive 7 LPT DATA AS OF 3/31/17. *CUSHMAN & WAKEFIELD'S TOP 40 INDUSTRIAL MARKETS.
Strong Operating Performance Occupancy Rental Increases (s/l) 17.5% 96 .1% 12.0% 95.5% 10.2% 9.1% 8 .1% 7.7% 93.7% 7.3% 93.0% 5.0% 91.6 % 2.4% 12/31/13 12/31/14 12/31/15 12/31/16 03/31/17 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 Leasing Volume (000's) Leasing Costs 29,192 26 ,8 24 26 ,08 9 25,005 $3.76 $3.33 $3.19 $2.91 $2.59 6 ,6 8 1 2013 2014 2015 2016 1Q2017 2013 2014 2015 2016 1Q2017 8
Same Store Performance Liberty Industrial Same Store Growth 5.1% 4.4% 3.6 % 2.4% 1.1% 2013 2014 2015 2016 1Q2017 Executed Industrial Leases with Rent Average Industrial Escalations Escalations (SF) 99.6 % 96 .6 % 96 .5% 2.6 % 2.5% 2.5% 2.5% 93.1% 2.0% 8 9.3% 2013 2014 2015 2016 1Q2017 2013 2014 2015 2016 1Q2017 9 SOURCE: LPT INTERNAL DATA. ALL CASH BASIS.
Geographically Diversified Industrial Markets Arizona: 1.4% United Kingdom: 1.6 % Atlanta: 1.9% New Jersey: 2.2% Tampa: 2.2% Dallas: 2.2% Minnesota: 2.3% Southern California: 2.4% Lehigh Valley/Central PA: 31.6 % Cincy/Indy/Col: 3.3% Philly/Southeastern PA: 3.8 % Orlando: 4.3% South FL: 4.3% Maryland: 4.6 % Houston: 9.9% Richmond/Hampton Roads: 5.0% Carolinas: 8 .7% Chicago: 8 .3% 10
Lehigh Valley/Central PA Industrial 26 million square foot portfolio Percent of Industrial Rent (1) A n s o s d L o A l a a s a y a m a o P o a g d n F d P i t a p e t n C n o n o n a R l m s o l t a h n n r l a s i c / s a r a d l n l t a y o e z u o i y r e D a l g i r h u l e d f t r t o o r r n T J A n r a o i A n a C t O t n l n w H S s a i e C p M I K a / C i e C m M e y d n N / h c e y a n r e H t e t u i i n l / C h l h o a t U S u V c / i o h R y S l g l i i h h P e L Vacancy Rates Liberty achieves the market's highest average rents $4.8 7 6 .3% 6 .0% $4.49 4.6 % 3.2% 1.2% 0.2% LPT DRE FR PLD DCT Market LPT Market 11 SOURCES: COMPANY FINANCIAL SUPPLEMENTAL PACKAGES. MARKET INFO: CBRE INDUSTRIAL MARKET REPORT AS OF 3/31/17. (1) LPT JOINT VENTURES AT EQUITY SHARE.
Focused Office in Four Core Markets Southeastern Pennsylvania Philadelphia (Vanguard + KOP) Washington D.C. Arizona United Kingdom Total SF 2,046 ,158 2,128 ,48 2 597,756 433,952 6 27,6 8 3 Number of Properties 9 26 3 3 21 Number of Tenants 43 51 45 4 6 9 Average Size of Properties (SF) 227,000 8 2,000 199,000 145,000 30,000 Average Lease Size (SF) 44,000 28 ,000 11,000 8 3,000 7,000 Occupancy 98 .7% 8 2.2% 93.4% 95.6 % 8 4.8 % Average Age 8 20 27 5 16 Comcast Corporation The Vanguard Group, Inc. United States of America The Vanguard Group, Inc. Cabot Financial (Europe) LTD National Assoc. of County & City GlaxoSmithKline LLC Yellow Book USA, Inc. DHL Express, (USA), Inc. AB World Foods Ltd Health Centene Management Company, Major Tenants The Pennsylvania Hospital United States of America The Corporate Council on Africa MDA Searchflow Ltd LLC Franklin Square Holdings, LP SunGard Data Systems, Inc. Puerto Rico Federal Affairs Adm. WageWorks, Inc. Sterling Insurance Group Ltd Conference of State Bank Adaptimmune, LLC GENEX Services, Inc. Aecom Professional Services LLP Supervisors 12 DATA AS OF 3/31/17. DOES NOT INCLUDE 733,6 75 SF OF NON-CORE OFFICE. JVs at 100%.
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