One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (May 2019)
38 slides from One Liberty Properties's investor presentation, May 10, 2019
Slide 1: Investor Presentation May 2019
◆ 1 INVESTOR PRESENTATION MAY 2019 onelibertyproperties.com
Slide 2: Table of Contents
◆ 2 DESCRIPTION PAGE Table of Contents 2 Safe Harbor Disclosure 3 Company Overview 4 Experienced Management Team 5 Attractive Portfolio Fundamentals 6 Portfolio Detail 7 Diversified Portfolio 8 Diversified Tenant Base 9 Financial Summary 10 Targeting Long Term Total Return 11 Growth in Operations 12
Slide 3: Safe Harbor
◆ 3 The statements in this presentation, including targets and assumptions, state the Company’s and management’s hopes, intentions, beliefs, expectations or projections of the future and are forward - looking statements. It is important to note that the Company’s actual results could differ material
Slide 4: Company Overview
◆ 4 Fundamentals – focused real estate company Disciplined track record through various economic cycles Active net lease strategy with emphasis on industrial properties Experienced management team Alignment of interests through significant insider ownership COMPANY OVERVIEW
Slide 5: Experienced Management Team
◆ 5 Patrick J. Callan, Jr. President & CEO Chief Executive Officer since 2008, President since 2006, Director since 2002 Senior Vice President of First Washington Realty Inc. from 2004 to 2005. A joint venture with CalPERS that controlled 100 shopping centers (13 million square feet) which was s
Slide 6: Attractive Portfolio Fundamentals
◆ 6 Total Square Footage 10.4 M Number of Properties 123 Current Occupancy 96.5% Contractual Rental income (2) $71.6 M Lease Term Remaining 7.5 Years Transcendia – Greenville, SC The Men’s Wearhouse – Bakersfield, CA (1) Information presented as of March 31, 2019, including four properties owned by
Slide 7: Portfolio Detail
◆ 7 (1) Though we have three theaters, one is part of a multi - tenant shopping center property in Manahawkin, NJ and is therefore exclude d from this column (2) The contractual rental income associated with the theater in Manahawkin, NJ is included (3) Other is comprised of ground leases of apartme
Slide 8: Diversified Portfolio
◆ 8 Geographically diverse footprint Own 123 properties in 30 states Strong markets drive value DIVERSIFIED PORTFOLIO Highest State Concentration by Contractual Rental Income State Number of Properties Contractual Rental Income % Contractual Rental Income New York 8 $6,115,566 8.5% Texas 11 5,
Slide 9: Diversified Tenant Base
◆ 9 DIVERSIFIED TENANT BASE Top Tenants Number of Locations Contractual Rental Income % of Contractual Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,842,846 6.8% LA Fitness International, LLC 3 3,113,490 4.3 Northern Tool & Equipment 1 2,873,286 4.0 L3 Technologies, Inc. (NYSE:
Slide 10: Financial Summary
◆ 10 Market Cap (1) $568.7 M Shares Outstanding (1) 19.7 M Insider Ownership (2) 21.8% Current Annualized Dividend $1.80 Dividend Yield (3) 6.2% Applied Control Equipment – Denver, CO Campania International / U.S. Tape – Philadelphia, PA (1) Market cap is calculated using the shares outstanding and
Slide 11: Targeting Long Term Total Return
◆ 11 (1) Performance period ended March 31, 2019 Consistent driver of long - term stockholder value TARGETING LONG TERM TOTAL RETURN 33.1% 18.3% 15.9% 0% 5% 10% 15% 20% 25% 30% 35% OLP NAREIT Equity Index S&P 500 10 - YEAR ANNUALIZED TOTAL RETURN (1)
Slide 12: Growth in Operations
◆ 12 GROWTH IN OPERATIONS (1) $1.97 (3) $1.90 $1.94 $2.02 (3) $1.40 $1.60 $1.80 $2.00 2015 2016 2017 2018 Historical FFO Per Share (2) (1) For the years ended December 31 (2) A reconciliation of net income per diluted share, as determined in accordance with GAAP, to FFO per diluted share and AFFO pe
Slide 13: Growth in Operations: Dividend Per Share
◆ 13 GROWTH IN OPERATIONS (1) $1.58 $1.66 $1.74 $1.80 $1.00 $1.20 $1.40 $1.60 $1.80 2015 2016 2017 2018 INCREASE IN DIVIDEND PER SHARE (1) For the years ended December 31 Current Annualized Dividend: $1.80
Slide 14: Growth Oriented Balance Sheet
◆ 14 GROWTH ORIENTED BALANCE SHEET AS AT MARCH 31, 2019 (1) Gross assets represent total assets plus accumulated depreciation of $128.0 million (2) Total debt includes our share ( i.e. $11.8 million) of debt of our unconsolidated joint venture (3) Calculated in accordance with the terms of our credi
Slide 15: Mortgage Debt Maturities
◆ 15 MORTGAGE DEBT MATURITIES AS AT MARCH 31, 2019 (1) $3.5 $2.1 $6.4 $35.3 $50.4 $210.7 $0 $50 $100 $150 $200 $250 2020 2021 2022 2023 2024 2025 & Beyond ($ in millions) BALLOON PAYMENTS DUE FOR THE TWELVE MONTHS ENDING MARCH 31, Weighted average interest rate of 4.27% on fixed rate debt There
Slide 16: Lease Maturity Profile
◆ 16 LEASE MATURITY PROFILE 12 Months Ending March 31 , Number of Expiring Leases Contractual Rental Income Under Expiring Leases % of Contractual Rental Income Represented by Expiring Leases Approximate Square Feet Subject to Expiring Leases 2020 7 $ 879,879 1.2% 98,465 2021 22 2,671,449 3.7 326,22
Slide 17: Stable Occupancy
◆ 17 STABLE OCCUPANCY (1)(2) 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 97.3% 99.3% 97.8% 80.0% 90.0% 100.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) As at December 31 (2) Based on square footage, including 100% our unconsolidated joint ventures At March 31, 2019: Occupancy – 96.5%
Slide 18: Strong Rental Income Growth
◆ 18 STRONG RENTAL INCOME GROWTH (1)(2) $42.8 $49.3 $56.6 $59.0 $64.2 $68.2 $70.3 $35 $40 $45 $50 $55 $60 $65 $70 $75 2012 2013 2014 2015 2016 2017 2018 ($ in millions) (1) As at December 31 (2) Includes straight - line rent accruals and amortization of intangibles
Slide 19: Acquisition Track Record
◆ 19 ACQUISITION TRACK RECORD $44.6 $107.5 $56.8 $95.2 (1) $118.6 $43.2 $79.5 $0 $20 $40 $60 $80 $100 $120 2012 2013 2014 2015 2016 2017 2018 ($ in millions) ACQUISITIONS PER YEAR Current pipeline of diverse opportunities in excess of $225.0 million (1) Includes our 50% share of an unconsolidated
Slide 20: Recent Acquisitions
◆ 20 RECENT ACQUISITIONS Date Acquired Property Type Tenant (or d/b/a) MSA State Current Lease Expiration Purchase Price (in ‘000s) Yield (1) Financing at purchase (in ‘000s) 12/21/18 Industrial Transcendia, Inc Greenville SC 09/30/23 $ 6,830 6.8% All cash 12/11/18 Industrial Dufresne Spencer Group
Slide 21: Recent Dispositions
◆ 21 RECENT DISPOSITIONS Date Sold Date Acquired Property Type Tenant (or d/b/a) MSA State Gross Sales Price (in ‘000s) Net Gain (Loss) (in ‘000s) 12/13/18 03/31/15 Retail Shopko Lincoln NE $10,000 ($1,731) 09/14/18 03/24/15 Other The Meadows Apartments Lake County IL $ 8,459 $4,585 07/31/18 08/13/0
Slide 22: Recent Mortgages
◆ 22 RECENT MORTGAGES Date Financed Property Type Tenant (or d/b/a) MSA State Amount (in ‘000s) Mortgage Maturity Interest Rate 03/14/19 Industrial Dufresne Spencer Group Holdings St. Louis MO $ 6,400 04/01/24 4.50% 03/06/19 Industrial Applied Control Equipment Denver CO $ 8,320 04/01/31 4.90% 02/11
Slide 23: Acquisition Case Study: Dufresne Spencer Group, St. Louis, MO
◆ 23 Dufresne Spencer Group – St. Louis, MO ACQUISITION CASE STUDY – INDUSTRIAL DUFRESNE SPENCER GROUP (1) Mortgage with an interest rate of 4.50% closed in March 2019 In December 2018, acquired a single tenant industrial warehouse facility in St. Louis, MO . The 119,680 SF property is net lease
Slide 24: Acquisition Case Study: 21st Century / Novacart, Moorestown, NJ
◆ 24 21 st Century / Novacart – Moorestown, NJ ACQUISITION CASE STUDY – INDUSTRIAL 21 st CENTURY & NOVACART (1) Mortgage with an interest rate of 4.64% closed in February 2019 In November 2018, acquired a two tenant industrial warehouse facility in Moorestown, NJ . The 219,881 SF property is net
Slide 25: Acquisition Case Study: Xerimis, Moorestown, NJ
◆ 25 Xerimis – Moorestown, NJ ACQUISITION CASE STUDY – INDUSTRIAL XERIMIS (1) Mortgage with an interest rate of 4.53% closed in November 2018 In October 2018, acquired a single tenant flex/warehouse facility in Moorestown, NJ . The 64,000 SF property is NNN leased to Xerimis, Inc. Moorestown,
Slide 26: Disposition Case Study: Caterpillar Mining, South Milwaukee, WI
◆ 26 Caterpillar Mining – South Milwaukee, WI DISPOSITION CASE STUDY – INDUSTRIAL In August 2004, acquired a 50% interest in a net leased manufacturing campus in South Milwaukee, WI leased to Bucyrus International, Inc. for $6.25 million. » 10 miles south of downtown Milwaukee » The 27.5 acre camp
Slide 27: Blend & Extend Case Study: L3 Technologies, Hauppauge, NY
◆ 27 L3 Technologies, Inc. – Hauppauge, NY BLEND & EXTEND CASE STUDY – L3 TECHNOLOGIES Loan Refinance Terms: Mortgage Amount: $26,870,000 Interest Rate: 4.35% Loan Term: 15 years Amortization: 20 Years In December 2000, acquired a 149,870 SF flex warehouse located in Hauppauge, NY for $13.65 milli
Slide 28: Summary - Why OLP?
◆ 28 Fundamentals – focused real estate company Disciplined track record through various economic cycles Active net lease strategy with emphasis on industrial properties Experienced management team Alignment of interests through significant insider ownership SUMMARY - WHY OLP?
Slide 29: Appendix
ONE LIBERTY PROPERTIES, INC. APPENDIX
Slide 30: Top Tenants' Profiles
ONE LIBERTY PROPERTIES, INC. QS TOP TENANTS’ PROFILES
Slide 31: Havertys Furniture - Tenant Profile
◆ 31 Haverty – Cedar Park, TX (Austin MSA) HAVERTYS FURNITURE – TENANT PROFILE Tenant: Haverty Furniture Companies, Inc . (NYSE: HVT) (Source: Tenant’s website) » Full service home furnishing retailer founded in 1885 » Public company since 1929 » 120 showrooms in 16 states in the Southern and Midw
Slide 32: LA Fitness - Tenant Profile
◆ 32 LA Fitness – Secaucus, NJ LA FITNESS – TENANT PROFILE Tenant: LA Fitness International LLC (Source: Tenant’s website) » Currently operates over 700 clubs in 21 states » Founded in 1984 and is headquartered in Irvine, CA 3 properties represents 4.3% of contractual rental income and 141,663 S
Slide 33: Northern Tool & Equipment - Tenant Profile
◆ 33 Northern Tool & Equipment – Fort Mill, SC NORTHERN TOOL & EQUIPMENT – TENANT PROFILE Tenant: Northern Tool & Equipment (Source: Tenant’s website) » Distributor and retailer of industrial grade and personal use power tools and equipment » Over 100 retail stores in the U.S. » Acquired The Sport
Slide 34: L3 Technologies - Tenant Profile
◆ 34 L3 Technologies, Inc. – Hauppauge, NY L3 TECHNOLOGIES – TENANT PROFILE Tenant: L3 Technologies, Inc. (Source: Tenant’s website) » US based defense technology company » On October 15, 2018 announced a pending merger with Harris Corporation to form the 6 th largest US defense company by revenue
Slide 35: Regal Entertainment Group - Tenant Profile
◆ 35 Regal Cinemas (d/b/a United Artists) – Indianapolis, IN REGAL ENTERTAINMENT GROUP – TENANT PROFILE Tenant: Regal Entertainment Group (Source: Tenant’s website) » On February 27, 2018 Cineworld (LSE: CINE) acquired Regal Entertainment Group for $3.6 billion, making it the second largest global
Slide 36: GAAP Reconciliation
ONE LIBERTY PROPERTIES, INC. QS GAAP RECONCILIATION
Slide 37: GAAP Reconciliation
◆ 37 GAAP RECONCILIATION The following table provides a reconciliation of net income per share of common stock (on a diluted basis) in accordance with GAAP to FFO and AFFO Quarter Ended March 31, Years Ended December 31, 2019 2018 2017 2016 2015 GAAP n et income attributable to One Liberty Propertie
Slide 38: Non-GAAP Financial Measures
◆ 38 NON - GAAP FINANCIAL MEASURES One Liberty computes FFO in accordance with the “White Paper on Funds from Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT’s related guidance. FFO is defined in the White Paper as net income (computed in accorda
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