One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (October 2018)
35 slides from One Liberty Properties's investor presentation, October 2018
Slide 1: Investor Presentation October 2018
Investor Presentation OCTOBER 2018 onelibertyproperties.com
Slide 2: Table of Contents
TABLE OF CONTENTS DESCRIPTION PAGE DESCRIPTION PAGE Table of Contents 2 Recent Acquisitions 20 Safe Harbor Disclosure 3 Recent Dispositions 21 Company Overview 4 Recent Mortgages 22 Experienced Management Team 5 Case Studies: Attractive Portfolio Fundamentals 6 Acquisition – Pennsburg, PA 23 Portfol
Slide 3: Safe Harbor
SAFE HARBOR 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 ma
Slide 4: Company Overview
COMPANY OVERVIEW 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 ◆ 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 10.2 M Number of Properties 119 Current Occupancy 99.0% Forbo – Charlotte, NC Contractual Rental income(2) $70.7 M Lease Term Remaining 8.2 Years (1) Information presented as of June 30, 2018, including four properties owned by unconsolidated
Slide 7: Portfolio Detail
PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income(1) Rental Income Retail – General 38 $ 17,081,417 24.1% – Furniture 14 6,109,003 8.6 – Supermarket 3 2,878,515 4.1 – Office Supply 7 2,271,323 3.2 Industrial 30 26,500,424 37.5 Restaurants 16 3,500,287
Slide 8: Diversified Portfolio
DIVERSIFIED PORTFOLIO Highest State Concentration by Contractual Rental Income Number of Contractual % Contractual Geographically diverse footprint State Properties Rental Income Rental Income Texas 11 $7,971,183 11.3% Pennsylvania 11 5,373,016 7.6 Own 119 properties in 30 states South Carolina
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 $ 4,842,846 6.8% LA Fitness International, LLC 3 3,078,376 4.4 Northern Tool & Equipment 1 2,841,400 4.0 Regal Entertainment Group 3 2,420
Slide 10: Financial Summary
FINANCIAL SUMMARY Market Cap(1) $517.4 M Shares Outstanding(1) 19.3 M Insider Ownership(2) 21.5% Power Distributors / Keystone Automotive – Des Moines, IA Current Annualized Dividend $1.80 Dividend Yield(3) 6.7% (1) Market cap is calculated using the shares outstanding and the closing OLP stock pric
Slide 11: Targeting Long Term Total Return
TARGETING LONG TERM TOTAL RETURN Consistent driver of long term stockholder value 10-Year Annualized Total Return(1) 14% 13.5% 12% 10.1% 10% 8% 7.9% 6% 4% 2% 0% OLP S&P 500 NAREIT Equity Index (1) Performance period ended June 30, 2018 ◆ 11
Slide 12: Growth in Operations
GROWTH IN OPERATIONS (1) Historical FFO Per Share(2) Historical AFFO Per Share(2) $1.97(3) $2.09 $2.00 $1.94 $2.10 $1.90 $1.99 $1.80 $1.75(3) $1.92 $1.90 $1.84 $1.60 $1.70 $1.40 $1.20 $1.50 2014 2015 2016 2017 2014 2015 2016 2017 FFO Payout (4) AFFO Payout (4) 2014 86% For the Six Months Ended 2014
Slide 13: Growth in Operations
GROWTH IN OPERATIONS (1) Increase in Dividend Per Share $1.80 $1.74 Current Annualized Dividend: $1.80 $1.66 $1.60 $1.58 $1.50 $1.40 $1.20 $1.00 2014 2015 2016 2017 (1) For the years ended December 31 ◆ 13
Slide 14: Growth Oriented Balance Sheet
GROWTH ORIENTED BALANCE SHEET AS AT JUNE 30, 2018 Gross Assets(1) $868.4 M Total Debt/Gross Assets(2) 49.7% Fixed Rate Debt 95.3% Debt Service Coverage Ratio(3) 2.3 to 1.0 Fixed Charge Coverage Ratio(3) 2.0 to 1.0 FFO Payout 89.0% Liquidity available to acquire in excess of an estimated $150.0 mil
Slide 15: Mortgage Debt Maturities
MORTGAGE DEBT MATURITIES AS AT JUNE 30, 2018 (1) Weighted average interest rate of 4.2% on fixed rate debt There is approximately $11.4 million ($0.59 per share) of scheduled amortization of mortgages for the twelve months ending June 30, 2019 $250 Balloon Payments Due For the Twelve Months Endi
Slide 16: Lease Maturity Profile
LEASE MATURITY PROFILE % of Contractual Number of Contractual Rental Income Approximate Square 12 Months Ending Expiring Rental Income Under Represented by Feet Subject to Expiring June 30, Leases Expiring Leases Expiring Leases Leases 2019 23 $ 1,556,564 2.2% 401,281 2020 16 2,241,308 3.2 229,638 2
Slide 17: Stable Occupancy
STABLE OCCUPANCY (1)(2) At June 30, 2018: Occupancy – 99.0% 100.0% 99.6% 99.3% 99.0% 98.9% 98.8% 98.6% 98.3% 98.0% 98.1% 97.3% 90.0% 80.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1) As at December 31 (2) Based on square footage, including 100% our unconsolidated joint ventures ◆ 17
Slide 18: Strong Rental Income Growth
STRONG RENTAL INCOME GROWTH (1)(2) As of the Six Months Ended $68.2 $65 June 30, 2018: $64.2 Rental Income – $35.3M $60 $59.0 $56.6 $55 ($ in millions) $50 $49.3 $45 $44.4 $42.8 $40 $35 2011 2012 2013 2014 2015 2016 2017 (1) As at December 31 (2) Includes straight-line rent accruals and amortization
Slide 19: Acquisition Track Record
ACQUISITION TRACK RECORD Current acquisitions of $18.2 million through September 30, 2018 and two industrial properties under contract for an aggregate purchase price of $20.2 million Current pipeline of diverse opportunities in excess of $225.0 million Acquisitions per Year $120 $118.6 $107.5 $
Slide 20: Recent Acquisitions
RECENT ACQUISITIONS Current Purchase Financing Info Date Property Lease Price (at time of purchase) Acquired Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) Yield(1) (in ‘000s) 06/07/18 Industrial Plymouth Industries Minneapolis MN 06/30/33 $ 5,500 8.5% All cash Campania International / 03/28
Slide 21: Recent Dispositions
RECENT DISPOSITIONS Net Gain Date Gross Sales Price (Loss) Date Sold Acquired Property Type Tenant (or d/b/a) MSA State (in ‘000s) (in ‘000s) 09/14/18 03/24/15 Other The Meadows Apartments Lake County IL $ 8,425 $4,551 (1) 07/31/18 08/13/04 Industrial Caterpillar Mining Milwaukee WI $13,275 $3,973 (
Slide 22: Recent Mortgages
RECENT MORTGAGES Date Property Amount Mortgage Interest Financed Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 09/07/18 Industrial Plymouth Industries Minneapolis MN $3,325 10/01/33 4.46% 07/26/18 Industrial Campania International / U.S. Tape Philadelphia PA $8,238 08/01/29 4.65% 07/26/1
Slide 23: Acquisition Case Study - Industrial
ACQUISITION CASE STUDY - INDUSTRIAL In March 2018, acquired a multi-tenant Purchase Price $12,675,000 distribution facility via sale-leaseback in Mortgage(1) (8,238,000) Pennsburg, PA Net Equity Invested $4,437,000 The 291,203 SF property is absolute net leased to Campania International, Inc. (2
Slide 24: Disposition Case Study - Industrial
DISPOSITION CASE STUDY - INDUSTRIAL In August 2004, acquired a 50% interest in a Purchase Price (50% interest) $ 6,250,000 net leased manufacturing campus in South Gross Sales Price (50% interest) 6,637,500 Milwaukee, WI leased to Bucyrus International, Inc. for $6.25 million. Internal Rate of Ret
Slide 25: Blend & Extend Case Study – L3 Technologies
BLEND & EXTEND CASE STUDY – L3 TECHNOLOGIES In December 2000, acquired a 149,870 SF flex Proposed Loan Refinance Terms: warehouse located in Hauppauge, NY for Mortgage Amount: $26,000,000 $13.65 million. The property has been continuously Interest Rate: 4.40% occupied by L3 Technologies, Inc. (N
Slide 26: Summary – Why OLP?
SUMMARY – WHY OLP? 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 ◆ 26
Slide 27: Appendix
ONE LIBERTY PROPERTIES, INC.
Slide 28: Top Tenants' Profiles
ONE LIBERTY PROPERTIES, INC. y PROALES
Slide 29: Havertys Furniture – Tenant Profile
HAVERTYS FURNITURE – TENANT PROFILE Tenant: Haverty Furniture Companies, Inc. (NYSE: 11 properties aggregating 611,930 SF HVT) (Source: Tenant’s website) – Duluth (Atlanta), GA » Full service home furnishing retailer founded in 1885 – Fayetteville (Atlanta), GA » Public company since 1929 – Wich
Slide 30: LA Fitness – Tenant Profile
LA FITNESS – TENANT PROFILE Tenant: LA Fitness International LLC (Source: Tenant’s website) Representative: LA Fitness – Secaucus, NJ » Currently operates over 700 clubs in 21 states » Location: 485 Harmon Meadow Blvd, Secaucus, NJ; 4 miles west of Manhattan » Founded in 1984 and is headquartere
Slide 31: Northern Tool & Equipment – Tenant Profile
NORTHERN TOOL & EQUIPMENT – TENANT PROFILE Tenant: Northern Tool & Equipment (Source: Tenant’s website) Location: 1850 Banks Road, Fort Mill, SC » Distributor and retailer of industrial grade and » Building: 701,595 SF on 40.0 acres of land personal use power tools and equipment » 3 Mile Demogra
Slide 32: Regal Entertainment Group – Tenant Profile
REGAL ENTERTAINMENT GROUP – TENANT PROFILE Tenant: Regal Entertainment Group (Source: Tenant’s website) 3 locations represents 3.4% of contractual rental » On February 27, 2018 Cineworld (LSE: CINE) income and 150,250 SF acquired Regal Entertainment Group for $3.6 % of Contractual Rental Income
Slide 33: Ferguson Enterprises – Tenant Profile
FERGUSON ENTERPRISES – TENANT PROFILE Tenant: Ferguson Enterprises, Inc. Location: 4501 Hollins Ferry Rd, Baltimore, MD (Source: Tenant’s website) » Building: 367,000 SF on 28.0 acres of land » Ferguson is an international industrial supply & » 3 Mile Demographics (Source: Applied Geographic Sol
Slide 34: GAAP Reconciliation
ONE LIBERTY PROPERTIES, INC.
Slide 35: 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 Six Months Ended June 30, Years Ended December 31, 2018 2017 2016 2015 2014 GAAP net income attributable to One Liberty Properties, I
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