One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (March 2016)
37 slides from One Liberty Properties's investor presentation, Mar 21, 2016
Slide 1: One Liberty Properties, Inc. Investor Presentation March 2016
ONE LIBERTY PROPERTIES, INC. INVESTOR PRESENTATION MARCH 2016 onelibertyproperties.com
Slide 2: Table of Contents
Table of Contents DESCRIPTION: Safe Harbor disclosure OLP — Investment Rationale Financial & Portfolio Summary Stockholder Return Growth in Operations Dividend Growth Steady Revenue Growth Stable Occupancy Properties & States Diversified Portfolio Diversified Tenant Base Lease Expirations Acquisitio
Slide 3: Safe Harbor
Safe Harbor gore meron N 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 co
Slide 4: OLP — Investment Rationale
OLP — Investment Rationale gore meron ~ e Stockholder return & dividend ¢ Strategy - focus on real estate fundamentals e Disciplined track record through economic cycles e Active portfolio management e Experienced management team Significant insider ownership
Slide 5: Financial & Portfolio Summary
Financial & Portfolio Summary soem 0 2 @ & Number of Properties «: 112 Square Footage «:: 8.2 million Current Occupancy «:: 98% + Market Cap «a: $380.8 million Shares Outstanding «: 17.0 million Insider Ownership «: 23.4% Current Annualized Dividend: $1.64 Dividend Yield «: 7.3% Information presenta
Slide 6: Stockholder Return
Stockholder Return Ee 10-Year Annualized Total Return 9.4% 100% 20% 5 TAS 7.3% 80% TJ 7 7.0% 60% 50% 4.0% 30% 2.0% 1.0% 00% (1) As of December 31,2015, 6
Slide 7: Growth in Operations
Growth in Operations $2.00 $1.90 $1.80 $1.70 $1.60 $1.50 Historical FFO Per Share (1) 2012 2013 2014 2015 $2.00 $1.90 $1.80 $1.70 $1.60 ~ Historical AFFO Per Share (1) $1.92 $1.84 $1.75 $1.65 2012 2013 2014 2015 (1) Areconetiaion of net income per duied share, 98 determined in accordance with GAAP,
Slide 8: Dividend Growth
sto $1.58 80% Sues FFO Payout Ratio) $1.50 ome FFO Payout Ratio) $1.42 si4s 86% $1.40 FFO Payout Ratio) $1.35 84% 82% Apatow) FFO Payout $1.20 Ratio $1.25 2011 2012 2013 2014 2015 (1) Impacting the changes inthe FFO payout rato aro cistrbutions of capital gains from property sales, which gains ar ex
Slide 9: Steady Revenue Growth
Steady Revenue Growth ier ovens $70 $65 $60 $55 Esso $45 $40 $35. $30 ~ Total Revenues «1 $65.7 $60.5 $51.0 $43.8 $40.9 i | 2010 2011 2012 2013 2014 2018 (1), tnctudes (a altenant related revenues including sraight-ine rent acrvals and amortization of intangibles and (b) lease termination fees of $1
Slide 10: Stable Occupancy
) () 100.0% 99.6% 100.0% Low Point 99.0% 98.9% 98.8% 98.6% °% 98.0% 98.1% ee . | | | | 80.0% = < a 2007 2008 2009 2010 2011 2012 2013 2014 2016 (1) As at December 3 fr each of 2007 through 2018 and ines our unconsolidated joint ventures 0
Slide 11: Properties in States
112 Properties in 30 States Ge sew moron Highest State Concentration by 2016 Contractual Rental Income (1 Number of 2016 Contractual _% of 2016 Contractual Properties __Rental Income Rental Income $ 6,485,624 10.8% New York 9 5,452,729 o4 Georgia 13 4,484,162 78 South Carolina 4 4,272,232 7A Pennsyl
Slide 12: Diversified Portfolio
Diversified Portfolio a eer eRe. Nc x % of 2016 Number of 2016 Contractual Contractual {Type of Property Properties Rental Income (1) Rental Income Retail — General 39 $ 18,371,426 30.6% — Furniture 14 5,821,981 9.7 — Restaurant 19 3,933,599 6.6 — Office Supply 7 2,430,407 41 — Supermarket 2 2,402,1
Slide 13: Diversified Tenant Base
Diversified Tenant Base gore meron K 2016 % of 2016 Number of Contractual Contractual Tenant Properties Rental Income _Rental income Haverty Furniture Companies, Inc. (NYSE: HVT) 1 $ 4,568,723 7.6% LA Fitness International, LLC 3 3,075,583 5.1 Northern Tool & Equipment 2,737,608 46 1 Ferguson Enterp
Slide 14: Lease Expirations
Lease Expirations Year Ending 2016 Contractual % of 2016 Contractual Rental Income Approximate Square % of Square Feet December 31, 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 & Beyond Number of Rental Income Under Represented by Feet Subject To Represented by Expiring Leases ___Expiring
Slide 15: Acquisition Track Record
Acquisition Track Record gore meron © Acquired $95.2 million of properties in 2015 «1 ¢ Two hard contracts expected to close in Q2 2016 for a total purchase price of approximately $31 million with an estimated average GAAP yield of 7.8% « © Current pipeline of diverse opportunities in excess of $250
Slide 16: Recent Acquisitions
Recent Acquisitions 2 ery moroves. ne Purchase GAAP Financing Info Lease Price (at time of purchase) State Expiration __(in‘000s) (7000s) 09/25/15 Industrial Fed Ex and Chep USA, St.Louis MO 08/34/22-10/31/24 $19,050 7.5% $12,383 mortgage 07/28/15. Industrial Supplier to auto industry Birmingham AL
Slide 17: Recent Mortgages
Recent Mortgages x Mortgage ‘Amount. Mortgage Interest [Date Financed Property Type Tenant (or d/b/a) MSA State {in ‘000s) Matur Rate 03/11/1611) Supermarket Whole Foods WestHartord «CT ~=—=«« $18,000 041/28 3.38% ovens Industrial Fed Ex Tampa FL $2500 1210525 3.57% 0114/16 (1) Retail Avalon Carpet
Slide 18: Acquisition Case Study — Ground Lease
Acquisition Case Study — Ground Lease goer roms + In March 2015, acquired 49 acres of land located in Lakemoor, IL (Chicago MSA) which i Purchase Price $ 9,300,000 was simultaneously ground leased to an experienced multi-family operator Year 1 Base Rent $ 1,102,319 * The land is improved by a class
Slide 19: Acquisition Case Study — Industrial
Acqui ¢ In March 2015, acquired a distribution facility in Louisville, KY, net leased to Interline Brands, Inc. which was acquired by The Home Depot, Inc. (NYSE: HD) © Interline Brands is a large-scale national distributor of maintenance, repair and operations products * 6 miles southeast of downtow
Slide 20: Acquisition Case Study — Short Term Lease
Acquisition Case Study — Short Term Lease Crm x © In June 2014, acquired a distribution warehouse purchase Price $11,650,000 in Joppa, MD through a consolidated JV Year 1 Base Rent for Prior Tenant $905,485 Year 1 Return on Equity 7.77% © Simultaneously net leased to Noxell Corp, a subsidiary of Pro
Slide 21: Acquisition Case Study — Industrial
Acqui ¢ In November 2014, acquired a distribution facility in New Hope, MN (Minneapolis MSA) net leased to Progressive Converting, Inc. © Progressive Converting is the largest paper converter by market share in the United States * 7 miles northwest of downtown Minneapolis — northwest Minneapolis-St.
Slide 22: Acquisition/Disposition Case Study
Acquisition/Disposi In October 2011, acquired a vacant Home Depot in Cherry Hill, NJ through a consolidated JV 6 miles east of downtown Philadelphia The building is 114,000 SF on 12.4 acres of land Simultaneously with closing, we entered into a long term lease with Burlington Coat Factory for approx
Slide 23: Blend and Extend Case Study - Office Depot
Blend and Extend Case Study - Office Depot In September 2008, acquired 8 sites from Office Depot in a sale leaseback transaction The 10 year original leases were absolute net Sold three locations at a profit in 2011 and 2012 In June 2015, Office Depot agreed to lease extensions through 2025 at four
Slide 24: Releasing Case Study — Kennesaw, GA
Dark and paying Office Depot site located in Kennesaw, GA (Atlanta MSA) © The building is 32,138 SF on 3.3 acres of land * In December 2015, simultaneously negotiated a lease termination with Office Depot (obtaining a $950,000 early termination fee) and entered into a new 10 year lease with Bed Bath
Slide 25: Balance Sheet Information
Balance Sheet Information gore meron x Gross Assets ix: $735.5 million Total Debt/Gross Assets »): 50.5% Fixed Rate Debt.): 95.1% Debt Service Coverage Ratiow: 2.3 to 1.0 Fixed Charge Coverage Ratio): 2.1 to 1.0 FFO Payout): 80.2% + Liquidity available to acquire in excess of an estimated $150 milli
Slide 26: Laddered Mortgage Debt Maturities
Laddered Mortgage Debt Maturities ., eo ¢ There is approximately $8.8 million ($0.52 per share) of scheduled amortization of mortgages for the 12 months ending December 31, 2016 e Weighted average interest rate of 4.6% on fixed rate debt Balloon Payments Due For the Twelve Months Ending December 31
Slide 27: Experienced Management Team
Patrick J. Callan, Jr. President & CEO Lawrence G. Ricketts, Jr. COO & EVP David W. Kalish, CPA SVP & CFO Matthew J. Gould Chairman Fredric H. Gould. Vice Chairman 2am Chief Executive Officer since 2008, President since 2006, Director since 2002 Senior Vice President of First Washington Really Inc.
Slide 28: Top Tenants' Profiles
TOP TENANTS’ PROFILES
Slide 29: Havertys Furniture — Tenant Profile
Havertys Furniture — Tenant Profile goer roms x © Tenant: Haverty Furniture Companies, Inc. * 11 properties aggregating 611,930 SF (NYSE:HVT) — Duluth (Atlanta), GA * Represents 7.6% of 2016 contractual rental income ~ Fayetteville (Atlanta), GA * Full service home furnishings retailer founded in 18
Slide 30: Representative Havertys — Richmond, VA
Representative Havertys — Richmond, VA Boer rere nc Building: 38,788 SF on 2.16 acres. Built in 1979 and renovated and expanded in 2001. Havertys has operated at this location for more than 15 years. 3 Mile Demographics (source sites Usa, 20:5) - Population: 56,212 Average HH Income: $100,449 Locati
Slide 31: LA Fitness — Tenant Profile
LA Fitness — Tenant Profile © Tenant: LA Fitness International LLC. Represents 5.1% of 2016 contractual rental income © LAFitness currently operates over 500 clubs in 21 states © The company was founded in 1984 and is headquartered in Irvine, CA * 3 properties representing 141,663 SF % of 2016 Contr
Slide 32: Northern Tool & Equipment — Tenant Profile
Northern Tool & Equipment — Tenant Profile * Tenant: Northern Tool & Equipment * Represents 4.6% of 2016 contractual rental income © Alarge United States distributor of industrial grade and personal use power tools and equipment Acquired The Sportsman's Guide and The Golf Warehouse to sell outdoor s
Slide 33: Ferguson Enterprises — Tenant Profile
Ferguson Enterprises-— Tenant Profile goer roms x Tenant: Ferguson Enterprises, Inc. * Location: 4501 Hollins Ferry Rd, Baltimore MD * Represents 4.1% of 2016 contractual rental income _ * 5 miles south of downtown Baltimore Building: 367,000 SF on 28 acres 3 Mile Demographics (source sies uss 2015)
Slide 34: Office Depot — Tenant Profile
Office Depot — Tenant Profile Tenant: Office Depot, Inc. (NYSE: ODP) Represents 4.1% of 2016 contractual rental income Leading global provider of office products and services The combined entity has more than 1,700 retail stores in 6 countries and closed approximately 350 retail stores between 2014
Slide 35: Representative Office Depot — Chicago, IL
Representative Office Depot — Chicago, IL “2"""*< Building: 23,939 SF on 2.62 acres. Built in 1994. Office Depot has operated at this location for more than 22 years. 3 Mile Demographics (source: sies usa, 2015) - Population: 548,147 Average HH Income: $100,223 Location: 2928 N. Ashland Ave, Chicago
Slide 36: 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: GAAP net income attributable to One Liberty Properties, Inc. ‘Add: depreciation of properties ‘Add: our share of depreciation of u
Slide 37: Summary — Why OLP?
Summary — Why OLP? eo ¢ Current dividend yield of 7% ($1.64 annualized dividend) e Since 2011 dividend has grown consistently e Average 10 year annualized total return of 9% e Occupancy rate through various cycles (since 2008) never below 98% e Insiders own 23% of OLP 37
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