One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (April 2022)
35 slides from One Liberty Properties's investor presentation, April 2022
Slide 1: Investor Presentation April 2022
INVESTOR PRESENTATION APRIL 2022 1liberty.com ◆ 1
Slide 2: Table of Contents
TABLE OF CONTENTS DESCRIPTION PAGE DESCRIPTION PAGE Table of Contents 2 Recent Acquisitions 18 Safe Harbor Disclosure 3 Opportunistic Dispositions 19 Company Overview 4 Recent Mortgages 20 Case Studies: Experienced Management Team 5 Acquisition – Fort Myers, FL 21 Attractive Portfolio Fundamentals 6
Slide 3: Safe Harbor
SAFE HARBOR This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provis
Slide 4: Company Overview
COMPANY OVERVIEW Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy – continued emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership ◆ 4
Slide 5: Experienced Management Team
EXPERIENCED MANAGEMENT TEAM 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 Patrick J. Callan, Jr. CalPERS that controlled 100 shopping centers (13 million square feet) whi
Slide 6: Attractive Portfolio Fundamentals
ATTRACTIVE PORTFOLIO FUNDAMENTALS(1) Total Square Footage 10.9 M Number of Properties 121 Current Occupancy 97.9% Contractual Rental income(2) $70.0 M Cosentino North America – Savannah, GA Lease Term Remaining 6.0 Years (1) Information presented as of December 31, 2021, including three properties o
Slide 7: Portfolio Detail
PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income Rental Income Industrial 49 $39,476,238 56.4% Retail – General 30 12,981,313 18.6 – Furniture 14 4,845,145 6.9 – Office Supply 5 2,085,527 3.0 Restaurants 15 (1) 3,525,769 5.0 Health & Fitness 3 3,238,4
Slide 8: Diversified Portfolio
DIVERSIFIED PORTFOLIO Highest Concentration of Contractual Rental Income by State Number of Contractual % Contractual State Properties Rental Income Rental Income Geographically diverse footprint South Carolina 7 $6,592,772 9.4% New York 8 6,497,295 9.3 Own 121 properties in 31 states Texas 7 5,
Slide 9: Diversified Tenant Base
DIVERSIFIED TENANT BASE % of Number of Contractual Contractual Top Tenants Locations Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,154,801 5.9% FedEx (NYSE: FDX) 6 3,560,327 5.1 LA Fitness International, LLC 3 3,238,489 4.6 Northern Tool & Equipment 1 2,993,419 4.3
Slide 10: Financial Summary
FINANCIAL SUMMARY (1) Market Cap $647.1 M (1) Shares Outstanding 21.1 M (2) Insider Ownership 22.8% Applied Control Equipment – Denver, CO Current Annualized Dividend $1.80 (3) Dividend Yield 5.9% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $30.63 at
Slide 11: Operational Metrics
OPERATIONAL METRICS(1)(2) Historical Net Income Per Share Historical AFFO Per Share $2.20 $2.13 $2.00 $1.85 $2.00 $1.98 $1.95 $1.90 $1.60 $1.33 $1.80 $1.20 $1.05 $1.60 $0.88 2018 2019 2020 2021 $0.80 (3) AFFO Payout 2018 85% $0.40 2019 91% $0.00 2020 95% 2018 2019 2020 2021 2021 92% (1) For the year
Slide 12: Growth Oriented Balance Sheet
GROWTH ORIENTED BALANCE SHEET AS AT DECEMBER 31, 2021 Gross Assets(1) $914.5 M Total Debt/Gross Assets(2) 46.2% Fixed Rate Debt 97.2% Debt Service Coverage Ratio(3) 2.1 to 1.0 Fixed Charge Coverage Ratio(3) 2.1 to 1.0 AFFO Payout Ratio 92.3% Liquidity available to acquire in excess of an estimated
Slide 13: Mortgage Debt Maturities
MORTGAGE DEBT MATURITIES AS AT DECEMBER 31, 2021(1) Weighted average interest rate of 4.17% on fixed rate debt There is approximately $13.7 million ($0.65 per share) of scheduled amortization of mortgages for the year ending December 31, 2022 $160 BALLOON PAYMENTS DUE FOR THE YEAR ENDING DECEMBE
Slide 14: Lease Maturity Profile
LEASE MATURITY PROFILE % of Contractual Number of Contractual Rental Income Approximate Square Year Ending Expiring Rental Income Under Represented by Feet Subject to Expiring December 31, Leases Expiring Leases Expiring Leases Leases (1) 2022 12 1,166,938 1.7 596,128 2023 28 10,038,271 14.3 1,412,5
Slide 15: Stable Occupancy
STABLE OCCUPANCY (1)(2) At March 31, 2022: Occupancy – 97.1% 100.0% 99.6% 99.3% 98.8% 98.6% 98.3% 97.8% 97.9% 97.3% 96.8% 97.0% 90.0% 80.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (1) As at December 31 (2) Based on square footage, including 100% of our unconsolidated joint ventures ◆ 15
Slide 16: Steady Rental Income
STEADY RENTAL INCOME (1)(2) $85 $83.8 $81.9 $82.2 $78.8 $75.9 $75 $70.6 $65 $62.8 ($ in millions) $55 $45 $35 2015 2016 2017 2018 2019 2020 2021 (1) As at December 31 (2) Rental income reflects, for all periods presented, the adoption of Financial Accounting Standards Board Accounting Standards Codi
Slide 17: Acquisition Track Record
ACQUISITION TRACK RECORD ACQUISITIONS PER YEAR $120 $118.6 (1) $100 $95.2 $79.5 $80 ($ in millions) $60 $56.8 $49.3 $43.2 $40 $28.3 $24.3 $20 $0 2014 2015 2016 2017 2018 2019 2020 2021 (1) Includes our 50% share of an unconsolidated joint venture property in Manahawkin, NJ ◆ 17
Slide 18: Recent Acquisitions
RECENT ACQUISITIONS (1) Current Purchase Date Property Lease Price Acquired Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) Yield(2) Conditioned Air Company of Naples, 01/05/22 Industrial Fort Myers FL 07/31/30 $ 8,100 6.2% LLC 11/12/21 Industrial Home Depot U.S.A., Inc. Omaha NE 12/31/23 $ 7
Slide 19: Opportunistic Dispositions
OPPORTUNISTIC DISPOSITIONS Date Date Property Gross Sales Price Net Gain Sold Acquired Type Tenant (or d/b/a) MSA State (in ‘000s) (in ‘000s) 03/22/22 07/30/10 Restaurant Wendy’s Lebanon PA $ 2,555 $ 1,200 03/22/22 07/30/10 Restaurant Wendy’s Reading PA $ 2,525 $ 1,184 03/22/22 07/30/10 Restaurant W
Slide 20: Recent Mortgages
RECENT MORTGAGES Date Property Amount Mortgage Interest Financed Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate Conditioned Air Company of Naples, 01/26/22 Industrial Fort Myers FL $ 4,860 02/01/31 3.09% LLC Carroll’s LLC / Advanced Hurricane 09/29/21 Industrial Fort Myers FL $ 6,100 10/0
Slide 21: Acquisition Case Study – Industrial: Conditioned Air Company of Naples, LLC
ACQUISITION CASE STUDY – INDUSTRIAL CONDITIONED AIR COMPANY OF NAPLES, LLC ◆ In January 2022, acquired a warehouse in Fort Purchase Price $ 8,100,000 Myers, FL. Mortgage(1) (4,860,000) ◆ The 52,710 SF building is net leased to Net Equity Invested $ 3,240,000 Conditioned Air Company of Naples, LLC. ◆
Slide 22: Acquisition Case Study – Industrial: Home Depot USA, Inc.
ACQUISITION CASE STUDY – INDUSTRIAL HOME DEPOT USA, INC. ◆ In November 2021, acquired an industrial distribution center in Omaha, NE. Purchase Price $ 7,975,000 ◆ The 101,584 SF building is net leased to Home Depot USA, Inc. Year 1 Base Rent $ 545,916 ◆ The property is well located 3.5 miles north o
Slide 23: Acquisition Case Study – Industrial: Pureon, Inc.
ACQUISITION CASE STUDY – INDUSTRIAL PUREON, INC. ◆ In May 2021, acquired an industrial building in Monroe, NC (Charlotte MSA). Purchase Price $ 7,000,000 Mortgage(1) (4,500,000) ◆ The 93,170 SF building is net leased to Pureon, Inc. Net Equity Invested $ 2,500,000 ◆ The property is well located in t
Slide 24: Disposition Case Study – Retail: Whole Foods, West Hartford, CT
DISPOSITION CASE STUDY – RETAIL WHOLE FOODS – WEST HARTFORD, CT ◆ In October 2010, acquired a net leased store Purchase Price $ 20,550,000 in West Hartford, CT for $20.55 million. Gross Sales Price $ 40,510,140 ◆ The 47,174 SF building is leased to Whole Foods Market Group, Inc. and guaranteed by In
Slide 25: Summary – Why OLP?
SUMMARY – WHY OLP? Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy – continued emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership ◆ 25
Slide 26: Appendices
ONE LIBERTY PROPERTIES, ING. APPENDICES
Slide 27: Top Tenants’ Profiles
ONE LIBERTY PROPERTIES, ING. TOP TENANTS’ PROFILES
Slide 28: Havertys Furniture – Tenant Profile
HAVERTYS FURNITURE – TENANT PROFILE ◆ Tenant: Haverty Furniture Companies, Inc. ◆ Represents 5.9% of contractual rental income (NYSE: HVT) (Source: Tenant’s website) ➢ Full-service home furnishing retailer founded in ◆ 11 properties aggregating 611,930 SF 1885 Duluth (Atlanta), GA Cedar Park (Au
Slide 29: FedEx – Tenant Profile
FEDEX – TENANT PROFILE ◆ Tenant: Operating Subsidiaries of FedEx Corporation ◆ 6 properties represents 5.1% of contractual (NYSE: FDX)(Source: Tenant’s website) rental income and 678,595 SF ➢ World’s largest express transportation company with service to more than 220 countries % of Contractual Rent
Slide 30: LA Fitness – Tenant Profile
LA FITNESS – TENANT PROFILE ◆ Tenant: LA Fitness International, LLC ◆ Representative: LA Fitness – Secaucus, NJ (Source: Tenant’s website) ➢ Location: 485 Harmon Meadow Blvd, ➢ Operates over 700 clubs in 27 states and Canada Secaucus, NJ; 4 miles west of Manhattan; ➢ Founded in 1984 and is headquart
Slide 31: Northern Tool & Equipment – Tenant Profile
NORTHERN TOOL & EQUIPMENT – TENANT PROFILE ◆ Tenant: Northern Tool & Equipment ◆ Represents 4.3% of contractual rental income (Source: Tenant’s website) ➢ Distributor and retailer of industrial grade and ◆ Location: 1850 Banks Road, Fort Mill, SC personal use power tools and equipment ➢ Over 100 ret
Slide 32: NARDA Holdings, Inc. – Tenant Profile
NARDA HOLDINGS, INC. – TENANT PROFILE ◆ Tenant: NARDA Holdings, Inc. ◆ Represents 4.0% of contractual rental income (Source: Tenant’s website) ➢ L3 Technologies, Inc., (a wholly owned subsidiary of ◆ Location: 435 Moreland Road, Hauppauge, NY L3 Harris Technologies, Inc. (NYSE: LHX)) assigned this l
Slide 33: GAAP Reconciliation
ONE LIBERTY PROPERTIES, ING. GAAP RECONCILIATION
Slide 34: GAAP Reconciliation
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 Years Ended December 31, 2021 2020 2019 2018 2017 GAAP net income attributable to One Liberty Properties, Inc. $1.85 $1.33 $ 0.88 $ 1
Slide 35: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES One Liberty compute funds from operations, or 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 (
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