NAREIT REITWeek June 2018 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
2018 Action Plan Execution Complete pivot to long-term, sustainable platform Sell $600 - $800 million Completed: $321 million $190 non-core, primarily Class B suburban office $131 value harvesting Under contract: $14 million Forthcoming: Vanguard portfolio (PA, AZ) Rio Salado portfolio (Tempe) Acquire $400-600 million in target markets CA/NJ $136 million completed $258 million under contract Operations Develop $809 million pipeline at 3/31/2018 $500-$600 million starts for 2018 $221 million started Push portfolio performance Same Store NOI 3% - 4% GAAP Same Store NOI 4% - 5% Cash Rents increase 12% - 15% Drive AFFO growth per share Office 10% Assets Industrial 90% Opportunity Refine portfolio Capitalize on valuecreation opportunities Close valuation gap 3
Industrial Assets Young portfolio, national relationships, local teams Number of Properties 503 Total Square feet Development Square feet Average Size Average Lease Average Lease Term 94.4 million 7.1 million 188,000 sf 78,000 sf 7 years Average Rent $5.04 Average Escalation 2.5% Average Age 16 years Percent Sustainable 29% Amazon.com Home Depot U.S.A., Inc. Major Tenants The Procter & Gamble Distributing LLC XPO Last Mile, Inc. Ryder Integrated Logistics, Inc. DATA AS OF 03/31/2018. 4
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* Aurora 900 Bilter Road Lehigh Valley 8620 Congdon Hill Drive # Market Total SF (000) s Lehigh Valley/Central 1 PA 26,142 2 Chicago 12,176 3 Carolinas 9,127 4 Houston 8,431 5 New Jersey 6,387 6 Richmond/Hampton Roads 4,439 7 Maryland 4,270 8 Cincinnati/Columbus/ Indianapolis 3,948 9 Orlando 3,992 10 Southern California 3,809 11 Atlanta 3,538 12 South Florida 3,121 13 Dallas 2,937 14 Minnesota 2,535 15 Arizona 2,760 16 Tampa 1,806 17 United Kingdom 1,734 18 Southeastern PA/Philadelphia 895 Southern California 10721 Jasmine Street Houston 8103 Fallbrook Drive LPT DATA AS OF 03/31/2018, DEVELOPMENT INCLUDED. *CUSHMAN & WAKEFIELD S TOP 40 INDUSTRIAL MARKETS 5
Office Assets After 2018 sales Properties Greater Philadelphia Washington D.C. United Kingdom Comcast Center Comcast Technology Center 800 Walnut Street The Navy Yard 650/680 Swedesford Road 1100 17 th Street 2100 M Street 1129 29 th Street 1425 New York Avenue Kings Hill Total Square feet 3,518,000 889,000 627,000 Average Size 271,000 222,000 30,000 Average Lease 61,000 13,000 7,000 Average Lease Term 13 years 6 years 8 years Average Rent $31.24 $38.00 $24.37 Average Age 9 years 35 years 17 years Percent Sustainable 96% 100% 6% Major Tenants Comcast Corporation The Pennsylvania Hospital Franklin Square Holdings Thomas Jefferson University Hospitals Adaptimmune, LLC The Urban Institute United States of America Zayo Group LLC Terence P. Stewart Puerto Rico Federal Affairs Admin. Cabot Financial (Europe) LTD Covea Insurance Services Ltd. Russet Homes Ltd. Kimberly-Clark Ltd Costain Limited/Colas Limited/Halcrow ESTIMATED PORTFOLIO AS OF 12/31/18. EXCLUDES ONE 345,000 SQUARE FOOT PROPERTY IN MINNESOTA. 6
Office Assets Sustainable value creation plan: Philadelphia Navy Yard Developed: 1.5 million square feet Future development rights: 2 million square feet Five Crescent Drive Developed 2013/$80.1 million Monetized 2018/$130.5 million 7
Development $809M Development Pipeline (1) $561M Development Pipeline (1) (2) Inventory Industrial, 56.1% Build-to-Suit Office, 32.5% Build-to-Suit Office, 8.2% Inventory Industrial, 75.4% Build-to-Suit Industrial, 16.4% Build-to-Suit Industrial, 11.4% $1,431 $1,703 Development Pipeline ($m) $1,490 8.1% 8.2% Pipeline Yield 8.0% 8.0% 7.7% $902 $809 2014 2015 2016 2017 2018 2014 2015 2016 2017 1Q18 *Upon stabilization will contribute $43 million to NOI JOINT VENTURES AT 100%. (1) DATA AS OF 03/31/18. (2) WHOLLY OWNED. 8
Development $809M Development Pipeline $561M Development Pipeline (1) New Jersey 3% South FL 5% Southern CA 2% UK 4% Chicago 2% Orlando 1% Southern CA 3% UK 6% Chicago 2% Carolinas 5% Atlanta 5% Arizona 6% Philadelphia 32% Atlanta 8% South FL 7% Carolinas 7% Lehigh Valley/Central PA 24% Houston 10% DC Metro 6% Dallas 6% Lehigh Valley/Central PA 16% Houston 7% Arizona 8% DC Metro 8% Dallas 9% Philadelphia 8% JOINT VENTURES AT 100%. DATA AS OF 03/31/18. (1) WHOLLY OWNED. 9
Strong Operating Performance Occupancy Rental Increases (GAAP) 93.0% 93.7% 96.0% 96.9% 96.7% 9.1% 7.3% 12.0% 17.5% 9.6% 14.7% 15.5% 13.6% 12.31.14 12.31.15 12.31.16 12.31.17 3.31.18 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Leasing Volume (000 s) 25,005 29,192 26,089 25,235 6,324 2014 2015 2016 2017 1Q18 INCLUDES INDUSTRIAL AND OFFICE 10
Industrial Same Store Performance Liberty Same Store Growth (GAAP) 4.3% 4.6% 5.0% 2.0% 2.7% 1Q17 2Q17 3Q17 4Q17 1Q18 Executed Leases with Rent Escalations (SF) 96.5% 93.1% 94.3% 95.6% 82.7% 2.6% Average Escalations 2.5% 2.5% 2.5% 2.5% 2014 2015 2016 2017 1Q18 2014 2015 2016 2017 1Q18 SOURCE: LPT INTERNAL DATA 11
Components of Value Same Store 2018 Guidance 2.1% Embedded Rent Growth 0.6% Turnover Rent Growth 0.9% S/L Rent Adjustment 0.9% Average Occupancy/Other 4% - 5% Cash Same Store NOI Growth 12
Valuation Opportunity FFO Multiples Premium/Discount to NAV 17.3 21.8 21.9 20.8 20.7 4.0 LPT FR DRE (8.5) 9.7 2.6 (1.8) LPT PLD DRE EGP FR LPT PLD EGP FR DRE AT 6/1/2018. SOURCES: 2018 FFO MULTIPLES: NASDAQ NAV: GREEN STREET ADVISORS 13
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