Portfolio Summary as of May 3, 2012

Transcription

1 Portfolio Summary as of May 3, 202 This sales and advertising literature must be read in conjunction with the prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. This document must be preceded or be accompanied by a prospectus, which contains important information about Industrial Income Trust. This is neither an offer to sell nor a solicitation of an offer to buy the securities described in the Industrial Income Trust prospectus. The offering is being made only by the Industrial Income Trust prospectus. Neither the Securities and Exchange Commission nor any other state securities regulator has approved or disapproved of the securities or determined if the prospectus is truthful or complete. In addition, the Attorney General of the State of New York has not passed on or endorsed the merits of the offering. Any representation to the contrary is unlawful. Specific properties depicted are owned by Industrial Income Trust. NOT A DEPOSIT l NOT FDIC INSURED l NOT GUARANTEED BY THE BANK l MAY LOSE VALUE l NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

2 Risk Factors Past performance is not a guarantee of future results. Investing in shares of our common stock involves a high degree of risk. Investing in real estate assets entails certain risks, including changes in: the economy, supply and demand, laws, tenant turnover, interest rates (including periods of high interest rates), availability of mortgage funds, operating expenses and cost of insurance. Our investments in property are concentrated in the industrial real estate sector and as a result, we will be exposed to risks or trends that have a greater impact on the market for industrial properties. These risks or trends may include the movement of manufacturing facilities to foreign markets which have lower laborer production costs, transportation or distribution trends which may change user demand for distribution space on a national or regional basis, and other economic trends or events which would cause industrial properties to under-perform other property types. Further, investing in Industrial Income Trust s common stock involves additional and substantial risks specific to Industrial Income Trust, including, among others, that: i. Industrial Income Trust has limited operating history and there is no assurance that it will be able to successfully achieve its investment objectives; ii. Industrial Income Trust: a) has been paying and may continue to pay distributions from sources other than cash flow from operations, such as asset sales, borrowings, cash resulting from a waiver or deferral of fees and offering proceeds, which will reduce the funds available for acquisitions and may reduce overall returns, b) may use unlimited amounts of sources other than cash flow from operations to fund payments, and c) has paid distribution in excess of earnings; iii. Industrial Income Trust s advisor and its affiliates will face conflicts of interest as a result of compensation arrangements, time constraints and competition for investments; iv. There is no public trading market for its common stock, none is expected to develop and there is limited ability for an investor to have their shares redeemed; v. The offering price was arbitrarily determined and will not accurately represent the current value of Industrial Income Trust s assets at any particular time; vi. The use of leverage increases the risk of loss; and vii. Industrial Income Trust is subject to risks associated with economic, demographic and real estate market conditions. This material contains forward-looking statements, including statements concerning investment objectives, strategies, other plans and objectives for future operations or economic performance that are based on Industrial Income Trust s current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties, as described in more detail in the Risk Factors section of the prospectus and in this sales material. Any of these statements could be inaccurate, and actual events or investments and results of operations could differ materially from those expressed or implied in the forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements. This brochure describes certain programs sponsored by the principal owners of our sponsor. Dividend Capital Total Realty Trust is also sponsored by the principal owners of our sponsor. Recent economic conditions have adversely affected the market values of certain of Total Realty Trust s investments and Total Realty Trust has disclosed significant other-than-temporary impairment charges for certain assets in its financial statements. For each quarter during 20, 200 and 2009, Total Realty Trust received redemption requests that exceeded its corresponding Redemption Caps. Total Realty Trust sold shares of its common stock to investors from January 2006 through September 2009 at a share price of $0.00 per share in various public offerings. On March, 20, Total Realty Trust announced that its board of directors determined an estimated value per share of Total Realty Trust s common stock of $8.45 as of March, 20. THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED IN THE INDUSTRIAL INCOME TRUST PROSPECTUS. THE OFFERING IS MADE ONLY BY THE INDUSTRIAL INCOME TRUST PROSPECTUS.

3 Distribution Warehouses: A Foundation of the Supply Chain At the foundation of the supply chain lies industrial real estate: distribution warehouses that store manufactured goods at various points throughout the logistics process. Industrial real estate is the largest sector of commercial real estate as measured by square feet. There are a number of reasons we believe investing in distribution warehouses provides both owner and investor stability. Increasing population demand and product selection Global trade growth imports and exports Limited capital obligations for landlord 2 Generic buildings that are less expensive to re-tenant 3 Historically consistent high occupancy rates 4 Less dependent on job growth 5 Portfolio diversifi cation potential 6 Appealing to institutional investors 7 Industrial Income Trust Industrial Income Trust (IIT) is a real estate investment trust (REIT) that acquires and operates high-quality distribution warehouses that are leased to creditworthy corporate customers. 8 Corporate Objectives 9 These properties produce rental revenue for IIT by means of the rents the corporate customers pay to use the properties for their businesses. Principal Track Record CAPITAL PRESERVATION CURRENT INCOME CAPITAL APPRECIATION Preserving and protecting our stockholders capital contributions Providing current income to our stockholders in the form of regular cash distributions Realizing capital appreciation upon the potential sale of our assets or other liquidity event 0 The principal owners of our sponsor, through affiliated entities, have sponsored the following industrial real estate programs that have gone full-cycle through a liquidity event: Keystone Property Trust (NYSE: KTR), (formerly known as American Real Estate Investment Corp.), was later acquired by ProLogis Trust (NYSE: PLD) in August Corporate Properties of the Americas, a private industrial real estate company in Mexico that was sold to a major pension fund investor in September 2005 DCT Industrial Trust Inc. (NYSE: DCT) (formerly known as Dividend Capital Trust Inc.), which was listed on the New York Stock Exchange in December 2006 Source: Real Estate Roundtable, Statistics About the Real Estate Industry, Leases for distribution warehouses are typically net leases, where the tenant is responsible for some or all of the property s maintenance, taxes and insurance, significantly lessening the landlord s expenses. 3 The value of distribution warehouses is driven by location and functionality not by aesthetics. Therefore, distribution warehouses are typically generic in design and use, requiring very little customization which helps keep tenant-improvement costs associated with new and renewal leases low. 4 Property and Portfolio Research, October 20. Past performance is no guarantee of future results. 5 Assessing Changing Employment Trends Driving Commercial Real Estate Development, NAIOP Research Foundation, September Diversification does not ensure a profit or guarantee against a loss. 7 NCREIF (National Council of Real Estate Investment Fiduciaries). NCREIF is based on institutional investments and is presented without leverage or fees. Data as of June 30, 200. Institutions are unlikely to invest in the offering. Institutions often invest on substantially different terms and conditions than those contained in the offering, including investments with lower fees, expenses and leverage. 8 Although we intend to focus our investment activities primarily on distribution warehouses and other industrial properties, our charter and bylaws do not preclude us from investing in other types of commercial property or real estate debt. 9 We cannot assure that we will attain our investment objectives, including our objective of paying distributions to shareholders. 0 Industrial Income Trust intends to consider alternatives for effecting a liquidity event beginning generally after seven years following the investment of substantially all of the net proceeds from all offerings made by us. There can be no assurance that a liquidity event will be available or that market conditions for a liquidity event will be favorable during that timeframe. Additionally, our charter does not require us to have a finite date for a liquidity event and does not assure that one will occur. Certain liquidity events are subject to shareholder approval. Keystone Property Trust, Corporate Properties of the Americas and DCT Industrial Trust are no longer controlled by our sponsor. 2 Two of the principal owners of our sponsor, James Mulvihill and Evan Zucker, served as Chairman and President, respectively, from November 993 through December 997 of American Real Estate Investment Corp. The acquisition of Keystone Property Trust by ProLogis Trust occurred after the principals subsequent service on Keystone s board. 3 Includes properties and financings under contract as of May 3, 202. There are no assurances that pending acquisitions will be completed. 4 Includes wholly-owned and partnership-owned core operating and value-add properties. 5 Aggregate debt proceeds divided by aggregate purchase price of property. Includes unencumbered assets. Loan-to-cost as of March 3, 202 was 48.8%. 6 Average weighted cost of debt as of March 3, 202 was 4.2%. 7 Source for truck routes: U.S. Department of Transportation.

4 Investment Summary Ownership Summary 3 Approximately $.6 billion of properties acquired or under contract 43 transactions 52 buildings total 6 geographic markets 27.9 million net rentable square feet Diversifi ed tenant base 290 customers Customers representing more than 30 industries Total portfolio approximately 92% leased 4 2.0% to 3.0% average annual rent increases 5.5-year weighted average remaining lease term (based on square feet) Loan-to-cost: 54% 5 Average weighted cost of debt: 4.2% 6 5 Los Angeles 3 Seattle / Tacoma 9 Portland San Francisco Bay Area 4 3 Phoenix Inland Empire Denver Dallas Major distribution markets Secondary distribution markets Number of buildings under contract 8 4 Houston # Minneapolis Chicago 2 6 Indianapolis Memphis Columbus 8 Tampa Number of buildings owned by IIT as of 05/03/202 Pennsylvania Cincinnati Atlanta 6 7 Savannah 7 Major trucking routes 7 (line thickness represents density of truck volume) 23 2 Washington D.C. / Baltimore South Florida New Jersey Select Corporate Customers Diversified by Market (Markets by Square Feet) Diversified by Tenant Industry (Based on Square Feet) Home Depot U.S.A. Amazon.com Hanesbrands Inc. Belkin International Solo Cup Company Harbor Freight Tools FedEx Phillips-Van Heusen Minka Lighting Watson Laboratories GSK Consumer Healthcare Bodega Latina Toyota Motor Sales General Electric Pennsylvania 4.5% Inland Empire 4.0% Atlanta 2.8% Chicago 8.8% Dallas 8.3% Indianapolis 8.0% Washington D.C. / Baltimore 7.5% Phoenix 6.8% Portland 4.% Houston 3.9% San Francisco Bay Area 2.9% Seattle / Tacoma 2.4% Los Angeles 2.3% South Florida 2.3% New Jersey 0.9% Tampa 0.5% Total 00.0% Home Improvement 5.3% Apparel / Clothing 9.4% Transportation / Logistics 8.4% Computer / Electronics 7.3% Retail 5.9% Paper / Plastics Manufacturing 5.8% Construction / Engineering 4.6% Auto 4.4% Medical Products / Equipment 3.7% Home Furnishings 3.7% Other 3.6% Total 00.0%

5 Representative Properties Cactus Distribution Centers Phoenix, AZ,600,000 Sq. Ft. Inland Empire Indian Avenue Distribution Center Perris, CA,30,000 Sq. Ft. Major Tenant: Home Depot, Amazon.com Major Tenant: Hanesbrands Vista Point Dallas, TX 208,000 Sq. Ft. Hagerstown Distribution Center Hagerstown, MD 824,000 Sq. Ft. Major Tenants: Toyota Motor Sales, General Electric Major Tenant: Home Depot Interstate Industrial Portfolio Chicago, IL; Dallas, TX; Inland Empire, CA 3,464,000 Sq. Ft. Chicago Industrial Portfolio Chicago, IL,434,000 Sq. Ft. Major Tenants: FedEx Ground Packaging, Harbor Freight Tools, Glazier Foods I-20 East Distribution Center Atlanta, GA,30,000 Sq. Ft. Major Tenants: Walgreens, Ace Hardware, Nestlé Waters, Goodyear Regional Distribution Portfolio Pennsylvania, Atlanta, Houston,965,000 Sq. Ft. Major Tenant: Solo Cup Major Tenants: GlaxoSmithKline, Philips-Van Heusen

6 Investment Details Terms of the Offering 8 Current offering price per share $0.40 Minimum investment 9 $2,000 Offering size $2.4 billion Distribution reinvestment plan 20 Reinvestment price is $9.88 per share Investor Suitability 2 Net worth of $250,000 or gross annual income of at least $70,000 and at least $70,000 net worth excluding the value of an investor s home, furnishings and automobiles Share Redemption Program 22 Except as noted below, 23 the redemption price will be calculated by multiplying the original purchase price paid for the shares by the applicable Holding Period Discount set forth in the table below. Shares purchased through our distribution reinvestment plan will not be subject to the Holding Period Discount. In no event will the redemption price exceed the then-current offering price of common shares being sold as part of a primary offering. Seeking income and diversifi cation and/or potential long-term growth Able to allocate a portion of an investment portfolio to illiquid assets Share Purchase Anniversary Less than year year 92.5% 2 years 95.0% 3 years 97.5% 4 years and longer 00.0% Redemption Price (% of purchase price) 23 No redemptions allowed This sales and advertising literature must be read in conjunction with the prospectus in order to understand fully all of the implications and risks of the offering of securities to which it relates. This document must be preceded or be accompanied by a prospectus, which contains important information about Industrial Income Trust. This is neither an offer to sell nor a solicitation of an offer to buy the securities described in the Industrial Income Trust prospectus. The offering is being made only by the Industrial Income Trust prospectus. Neither the Securities and Exchange Commission nor any other state securities regulator has approved or disapproved of the securities or determined if the prospectus is truthful or complete. In addition, the Attorney General of the State of New York has not passed on or endorsed the merits of the offering. Any representation to the contrary is unlawful. 8 Industrial Income Trust does not have a finite date for a liquidity event and there can be no assurance that a liquidity event will occur. 9 Minimum investment may vary by state. 20 Our board of directors may terminate the distribution reinvestment plan in its discretion at any time upon 0 days notice. 2 Suitability requirements vary in AL, IA, KS, KY, MA, ME, MI, MO, NE, NM, OH, OR, PA and TN. Please review the prospectus for specific state restrictions. 22 Industrial Income Trust presently intends to limit the number of shares to be redeemed during any calendar quarter to the lesser of: (i) /4 th of five percent of the number of shares of common stock outstanding (as of the same date in the prior calendar year) and (ii) the aggregate number of shares sold pursuant to its distribution reinvestment plan in the immediately preceding calendar quarter, which may be less than five percent of the shares outstanding (as of the same date in the prior calendar year). Investors must hold shares of our common stock that are eligible for redemption for a minimum of one year before requesting redemption. Industrial Income Trust s board of directors reserves the right to reject any request for redemption of common stock for any reason, or to amend, suspend or terminate the share redemption program at any time. Therefore, investors should not assume that any or all of their shares will be redeemed by Industrial Income Trust pursuant to this program. 23 Adjustments for shares purchased in our initial public offering and redemption requests with respect to the death of a stockholder: With respect to shares of our common stock purchased pursuant to our initial public offering, including shares purchased through our distribution reinvestment plan pursuant to our initial public offering, the redemption price will be determined as described above, however the original purchase price paid for such shares first will be increased by 4.0%, which is the amount by which the offering price increased between our initial public offering and our second public offering (the Initial Offering Adjustment ) subject to the adjustments applicable to shares of common stock in connection with a redemption request with respect to the death of a stockholder, as described below. Neither the one-year holding period nor the redemption caps will apply in the event of the death of a stockholder; provided, however, that any such redemption request with respect to the death of a stockholder must be submitted to us within 8 months after the date of death and must be accompanied by certain documentation, per the terms of the program. Shares of common stock subject to a redemption request with respect to the death of a stockholder will be redeemed at a price equal to (i) with respect to shares purchased in our second public offering, 00% of the original purchase price paid by the deceased stockholder for the shares without application of the Holding Period Discount, and (ii) with respect to shares purchased in our initial public offering, the greater of (x) 00% of the original purchase price paid by the deceased stockholder for the shares, without application of the Initial Offering Adjustment or the Holding Period Discount and (y) the redemption price determined as described above, including application of the Initial Offering Adjustment and the Holding Period Discount. Dividend Capital Securities LLC, Distributor Member FINRA 58 7 th Street, 7 th Floor Denver, CO DCG.REIT ( ) Industrial Income Trust website: industrialincome.com Dividend Capital website: dividendcapital.com IIT-RET-PS-OCT IIT-RET-PS-JUN2