NAREIT. November 2018

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1 NAREIT November

2 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

3 Platform for Growth A national platform Market capitalization approximately $9.5 billion 514 industrial properties totaling 97.5 million square feet National industrial platform High quality, diverse tenant base A company with a compelling history 46-year track record of real estate innovation and excellence 24 years operating as a public company A unique provider of high-value corporate real estate solutions An industry leader in development, leasing and tenant services 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; outlook stable A transparent company Superior disclosure Uncomplicated structure/operation 3

4 Liberty s Strategic Direction Grow national industrial platform Multi-tenant industrial product in all markets Big-box where appropriate Opportunistic growth capitalizing on core strengths Development expertise = value-creation pipeline in all markets Leasing expertise = value-add opportunities in high value markets Industrial sales to harvest value and reposition the portfolio Office sales fund industrial growth Remaining office portfolio is new, high-value, sustainable, urban 4

5 2018 Action Plan Execution Complete pivot to long-term, sustainable industrial platform Sell $800 - $950 million (office) Completed: $576 million $445.5 million non-core $130.5 million value harvesting Under contract: $217.8 million Forthcoming: Orlando DC (wholly owned) Acquire $ million (industrial) in target markets CA/NJ/Other Core $468.7 million completed $41.9 million under contract Assets Office 10% Industrial 90% Expected proforma portfolio composition at 12/31/18 by NOI with JVs at equity share. Operations Develop $954 million pipeline at 9/30/2018 $500-$600 million starts for 2018 $397 million started Push portfolio performance Same Store NOI 3.5% - 4% GAAP Same Store NOI 4.5% - 5% Cash Rents increase 13% - 15% Drive AFFO growth per share Dividend payout ratio = 75% of AFFO Opportunity Refine portfolio Capitalize on value-creation opportunities Close valuation gap 5

6 Outstanding Industrial Assets Modern, flexible portfolio, national relationships, local teams Number of Properties 514 Total Square feet Development Square feet Average Size Average Lease Average Lease Term 97.5 million 8.6 million 190,000 sf 79,000 sf 7 years Average Rent $5.12 Average Escalation 2.5% Average Age 16 years Percent Sustainable 30% Amazon Home Depot Major Tenants Procter & Gamble Distributing XPO Last Mile FedEx DATA AS OF 09/30/

7 Industrial Assets Responsive to our customers space demand and growth needs 13 of the top 15 industrial markets* Access to over 60% of the nation s industrial leasing deal flow* # Market Percent of Net Rent 1 Lehigh Valley 17.9% 2 Chicago 9.9% 3 Houston 8.7% 4 Carolinas 8.2% 5 Central PA 7.5% 6 New Jersey 6.8% 7 Orlando 4.9% 8 Southern California 4.9% 9 South Florida 4.5% 10 Richmond/Hampton Roads 4.2% 11 Maryland 4.1% 12 Dallas 3.2% 13 Cincinnati/Columbus/ Indianapolis 2.5% 14 Philadelphia 2.5% 15 Minnesota 2.4% 16 Arizona 2.2% 17 Atlanta 2.0% 18 Tampa 1.9% 19 United Kingdom 1.6% LPT DATA AS OF 09/30/2018, JOINT VENTURES AT 100%. *CUSHMAN & WAKEFIELD S TOP 40 INDUSTRIAL MARKETS 7

8 Components of Value Same Store Growth Development Pipeline Opportunistic Acquisitions Capital Structure/Asset Recycling Value Creation FFO Growth 8

9 Components of Value: Same Store Industrial Same Store Growth (Cash) Industrial Same Store Growth (GAAP) 7.0% 5.2% 4.6% 5.5% 4.1% 4.3% 4.6% 5.0% 4.1% 3.8% 3Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18 Executed Leases with Rent Escalations (SF) 98.0% 96.5% 95.6% 94.3% 93.1% 2.6% Average Escalations 2.5% 2.5% 2.5% 2.5% YTD YTD SOURCE: LPT INTERNAL DATA. REPRESENTS INDUSTRIAL PORTFOLIO 9

10 Components of Value: Development $954M Development Pipeline Wholly-Owned and JV (1) $699M Development Pipeline Wholly-Owned Inventory Industrial, 52.8% Build-to-Suit Office, 27.5% Inventory Industrial, 67.6% Build-to-Suit Office, 5.5% Build-to-Suit Industrial, 26.9% Build-to-Suit Industrial, 19.7% Development Pipeline ($m) Pipeline Yield $1,431 $1,703 $1, % 8.2% 8.0% 8.0% $902 $ % Q Q18 JOINT VENTURES AT 100%. (1) DATA AS OF 09/30/18. 10

11 Components of Value: Development New Jersey 6% $954M Development Pipeline Wholly Owned and JV DC Metro 2% Carolinas Southern CA 4% 4% Atlanta 4% UK 5% South FL 7% Arizona 2% Chicago 1% Dallas Lehigh 8% Valley/Central PA 12% Houston 16% Orlando 1% Philadelphia 28% DC Metro 3% New Jersey 5% Carolinas 5% Philadelphia 5% Southern CA 6% $699M Development Pipeline Wholly Owned Atlanta 6% Arizona 3% UK 7% South FL 9% Chicago 2% Houston 22% Lehigh Valley/Central PA 16% Dallas 11% Development pipeline: opportunities in virtually every market JOINT VENTURES AT 100%. DATA AS OF 09/30/18. 11

12 2018 Targeted, Opportunistic Acquisitions Components of Value: Acquisitions Southern California: $197 million invested Rialto (Inland Empire West): Takeout of local developer 2 Properties: 602,302 sf Liberty has leased 426,302 sf of purchased space San Bernardino (Inland Empire East): Takeout of local developer 318,989 sf Commerce (Central LA): 400,169 sf, fully leased, approximately 10% below market rents New Jersey: $72 million invested Meadowlands: 2 properties fully leased at below market rents 236,504 sf Infill sites, adjacent to LPT properties Central NJ: 348,065 sf, short-term leases, significant opportunity to upgrade building and lease quality UK: $147 million invested 7 properties, 1.1 million sf portfolio Intent to lever at sub 3% 10-year debt Dallas: $52 million invested South Dallas, takeout of local developer 900,043 sf new construction Projected stabilized yield 5% 12

13 Components of Value: Capital Structure Market Capitalization Debt to Gross Assets Credit Facility, 6.0% Mortgage Debt, 2.5% Unsecured Debt, 24.1% 40.5% 40.8% 36.9% 38.9% 39.4% Shares/Units, 67.4% Q18 $500 Schedule of Maturities Average Net Debt to Adjusted EBITDA $ $300 $200 $100 $ & after Mortgages Unsecured Notes Credit Facility YTD 2018 DATA AS OF 9/30/18. 13

14 Asset Recycling: Remaining Office Assets Wholly Owned Joint Venture Properties Total Square feet 954,580 sf 3,531,787 sf Average Size 80,000 sf 196,000 sf Average Lease 30,000 sf 34,000 sf Average Lease Term 12 years 10 years Percent Occupied 93.7% 97.1% Average Rent $26.62 $35.84 Average Age 5 years 9 years Percent Sustainable 89% 87% Major Tenants The Pennsylvania Hospital Axalta Coating Systems Thomas Jefferson University Hospitals Franklin Square Holdings Adaptimmune Comcast Corporation United States of America Covea Insurance Services Conference of State Bank of Supervisors The Weinberg Group Five Crescent Drive Developed 2013/$80.1 million Monetized 2018/$130.5 million Arizona Office Sale Developed /$170.2 million Monetized 2018/$255.0 million ESTIMATED PORTFOLIO AS OF 12/31/18. EXCLUDES CERTAIN NON-CORE ASSETS AND ASSETS HELD FOR SALE. 14

15 2019 and Beyond Same Store Growth Development Pipeline Opportunistic Acquisitions Capital Structure/Asset Recycling Value Creation FFO Growth High Quality Portfolio High occupancy Rent growth and escalations Diverse tenant base Multiple markets Development 100% industrial Multiple markets Acquisitions in target markets 100% industrial Value-add, utilizing core leasing and development capabilities Capital Superior access to capital Internal funding High quality office sales to fund approximately 50% or more of capital needs Retained capital from operating cash flow at a dividend payout of approximately 75% of AFFO A repositioned company Pure-play industrial Potential future FFO growth of 5-7% once 2018 sales are absorbed (1) 1) BASED ON A NUMBER OF ASSUMPTIONS (INCLUDING DEVELOPMENT STABILIZATION) THAT LIBERTY BELIEVES TO BE REASONABLE; HOWEVER THERE CAN BE NO ASSURANCES THAT EXPECTATIONS WILL BE ACHIEVED, AND ACTUAL RESULTS CAN DIFFER MATERIALLY FROM AMOUNTS PRESENTED ABOVE. 15

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