One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (April 2017)

35 slides from One Liberty Properties's investor presentation, April 2017

  1. Slide 1: Investor Presentation April 2017

    INVESTOR PRESENTATION APRIL 2017 onelibertyproperties.com

  2. Slide 2: Table of Contents

    Table of Contents DESCRIPTION: PAGE # DESCRIPTION: PAGE # Table of Contents 2 Case Studies: Safe Harbor Disclosure 3 Acquisition – Nashville, TN 20 Company Overview 4 Disposition – Philadelphia, PA 21 Experienced Management Team 5 Acquisition – Baltimore, MD 22 Attractive Portfolio Fundamentals 6 Su

  3. Slide 3: Safe Harbor

    Safe Harbor The statements in this presentation, including targets and assumptions, reflect 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

  4. Slide 4: Company Overview

    Company Overview  Fundamentals - focused real estate company  Disciplined track record through economic cycles  Active net lease strategy  Experienced management team  Alignment of interests through significant insider ownership 4

  5. 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 CalPERS that Patrick J. Callan, Jr. controlled 100 shopping centers (13 million square feet) whi

  6. Slide 6: Attractive Portfolio Fundamentals

    Attractive Portfolio Fundamentals(1) Total Square Footage 10.1 M Number of Properties 119 Current Occupancy 97.3% Northern Tool – Fort Mill, SC (Charlotte MSA) Contractual Rental Income (2) $68.6 M Lease Term Remaining 8.7 Years Regal Cinemas (d/b/a United Artists) – Indianapolis, IN (1) Information

  7. Slide 7: Portfolio Detail

    Portfolio Detail Number of Contractual % of Contractual Type of Property Properties Rental Income (1) Rental Income Retail – General 44 $ 19,778,737 28.9% – Furniture 14 5,938,781 8.7 – Supermarket 2 2,444,943 3.6 – Office Supply 7 2,430,408 3.5 Industrial 22 18,494,532 27.0 Restaurants 17 3,714,189

  8. Slide 8: Diversified Portfolio

    Diversified Portfolio  Geographically diverse footprint  Own 119 properties in 30 states  Strong markets drive value Highest State Concentration by Contractual Rental Income Number of Contractual % Contractual Rental State Properties Rental Income Income Texas 12 $ 8,539,536 12.5% South Carolina

  9. Slide 9: Diversified Tenant Base

    Diversified Tenant Base % of Top Tenants Number of Contractual Contractual Locations Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,672,624 6.8% LA Fitness International, LLC 3 3,075,583 4.5 Northern Tool & Equipment 1 2,778,672 4.1 Regal Entertainment Group (NYSE:

  10. Slide 10: Financial Summary

    Financial Summary Market Cap : (1) $437.1 million Shares Outstanding : (1) 18.5 million Insider Ownership : (2) 22.2% Current Annualized Dividend: $1.72 Dividend Yield : (3) 7.3% FedEx Ground & Chep USA – St. Louis, MO JCI/Yanfeng (Johnson Controls Guarantee) – McCalla, AL (1) Market cap is calculat

  11. Slide 11: Targeting Long Term Total Return

    Targeting Long Term Total Return Consistent driver of long term stockholder value 15-Year Annualized Total Return (1) 11.7% 11.1% 12% 8.6% 10% 8% 6% 4% 2% 0% OLP NAREIT Equity Index S&P 500 (1) Performance period ended December 31, 2016 11

  12. Slide 12: Growth In Operations

    Growth In Operations Historical FFO Per Share (1) Historical AFFO Per Share (1) $1.99 $1.97(2) $2.00 $2.00 $1.92 $1.90 $1.90 $1.90 $1.84 $1.75(2) $1.80 $1.80 $1.75 $1.66 $1.70 $1.70 $1.60 $1.50 $1.60 2013 2014 2015 2016 2013 2014 2015 2016 Dividend Growth Per Share $1.66 $1.70 $1.58 87% $1.60 FFO Pa

  13. Slide 13: Growth Oriented Balance Sheet

    Growth Oriented Balance Sheet as at December 31, 2016 Gross Assets : (1) $830.3 million Total Debt/Gross Assets : (2) 51.4% Fixed Rate Debt: 97.7% Debt Service Coverage Ratio : (3) 2.3 to 1.0 Fixed Charge Coverage Ratio : (3) 1.8 to 1.0 FFO Payout: 87.0%  Liquidity available to acquire in excess of

  14. Slide 14: Laddered Mortgage Debt Maturities

    Laddered Mortgage Debt Maturities as at December 31, 2016 (1)  Weighted average interest rate of 4.3% on fixed rate debt  There is approximately $10.5 million of scheduled amortization of mortgages for the year ending December 31, 2017 Balloon Payments Due For the Year Ending December 31 $249.3 $2

  15. Slide 15: Lease Maturity Profile

    Lease Maturity Profile Contractual % of Contractual Rental Approximate Square Year Ending Number of Rental Income Under Income Represented by Feet Subject To December 31, Expiring Leases Expiring Leases Expiring Leases Expiring Leases 2017 18 $ 966,243 1.4% 91,733 2018 31 4,120,153 6.0 565,722 2019

  16. Slide 16: Consistent Operational Performance

    Consistent Operational Performance Stable Occupancy (1) 100.0% 98.0% 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 97.3% 100.0% 90.0% 80.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Strong Rental Income Growth (2) $64.2 $65 $59.0 $60 $56.6 $55 ($ in milions) $49.3 $50 $44.4 $42.8 $45 $41.4 $40 $

  17. Slide 17: Acquisition Track Record

    Acquisition Track Record  Acquired $118.6 million of properties in 2016  Current pipeline of diverse opportunities in excess of $225 million Acquisitions Per Year ($ in millions) $118.6 $120 $107.5 $95.2(1) $100 $72.3 $80 $56.8 $60 $44.6 $40 $29.6(1) $20 $0 2010 2011 2012 2013 2014 2015 2016 (1) I

  18. Slide 18: Recent Acquisitions

    Recent Acquisitions Purchase Financing Info Date Current Lease Price Yield (at time of purchase) Acquired Property Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) (1) (in ‘000s) 09/01/16 Industrial Famous Footwear / Caleres Nashville TN 06/30/31 $32,734 6.4% $21,288 mortgage 08/16/16 Other Th

  19. Slide 19: Recent Mortgages

    Recent Mortgages Date Amount Mortgage Interest Financed Property Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 12/12/16(1) Industrial Ferguson Enterprises, Inc. Baltimore MD $21,000 01/01/27 3.75% 11/14/16 Retail Bed Bath & Beyond Kennesaw GA $ 5,525 11/01/41 3.50% 09/01/16 Industrial Fa

  20. Slide 20: Acquisition Case Study – Industrial

    Acquisition Case Study – Industrial  In September 2016, acquired a distribution facility in Lebanon, TN (Nashville MSA) net leased to Famous Purchase Price $32,734,000 Footwear and guaranteed by Caleres, Inc (NYSE: CAL) Mortgage (1) (21,287,500)  Global footwear retailer and wholesaler with annual

  21. Slide 21: Disposition Case Study

    Disposition Case Study  In March 2005, acquired a manufacturing Purchase Price $ 9,680,000 facility in Philadelphia, PA leased to Sweet Sale Price $14,800,000 Ovations for $9.7 million  13 miles north of downtown Philadelphia Internal Rate of Return to OLP 18.64%  The building is 166,000 SF on 13

  22. Slide 22: Acquisition Case Study – Short Term Lease

    Acquisition Case Study – Short Term Lease  In June 2014, acquired via a short term sale- Purchase Price $11,650,000 leaseback, a distribution warehouse in Joppa, Year 1 Base Rent for Noxell Corp $905,485 MD through a consolidated JV Year 1 Return on Equity 7.77%  Simultaneously net leased the prop

  23. Slide 23: Summary – Why OLP?

    Summary – Why OLP?  Fundamentals-focused real estate company  Disciplined track record through economic cycles  Active net lease strategy  Experienced management team  Alignment of interests through significant insider ownership 23

  24. Slide 24: Appendix

    ONE UBERTY PROPERTIES, INC. APPENDIX 24

  25. Slide 25: Acquisition Case Study – Ground Lease

    Acquisition Case Study – Ground Lease  In August 2016, acquired 8 acres of land located in Beachwood, OH a wealthy suburb of Cleveland, which was simultaneously ground leased to an experienced multi-family operator Purchase Price $13,896,000 Year 1 Base Rent $ 1,450,633  The land is improved by a

  26. Slide 26: Acquisition Case Study – Industrial

    Acquisition Case Study – Industrial  In June 2016, acquired a distribution facility in El Paso, TX net leased to Toro Co (NYSE: TTC) Purchase Price $23,695,000 Mortgage (1) ($15,000,000)  Toro is a global developer, manufacturer and Net Equity Invested $ 8,695,000 distributor of lawn and landscape

  27. Slide 27: Blend and Extend Case Study – Office Depot

    Blend and Extend Case Study – Office Depot  In September 2008, acquired 8 sites from  July 2015 – new financing aggregating $12.85 million Office Depot in a sale leaseback with a 10 year term at an interest rate of 4.35% secured transaction by the four properties at which the leases were extended

  28. Slide 28: Releasing Case Study – Office Depot

    Releasing Case Study – Office Depot  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

  29. Slide 29: Top Tenants' Profiles

    TOP TENANTS’ PROFILES 29

  30. Slide 30: Havertys Furniture – Tenant Profile

    Havertys Furniture – Tenant Profile  Tenant: Haverty Furniture Companies, Inc.  11 properties aggregating 611,930 SF (NYSE:HVT) – Duluth (Atlanta), GA  Represents 6.8% of contractual rental income – Fayetteville (Atlanta), GA  Full service home furnishings retailer founded in – Wichita, KS 1885

  31. Slide 31: LA Fitness – Tenant Profile

    LA Fitness – Tenant Profile  Tenant: LA Fitness International LLC Representative LA Fitness – Secaucus, NJ  Represents 4.5% of contractual rental income  Building: 44,863 SF on 1.23 acres  LA Fitness currently operates over 800 clubs in 21  3 Mile Demographics (Source: Sites USA 2016) states –

  32. Slide 32: Northern Tool & Equipment – Tenant Profile

    Northern Tool & Equipment – Tenant Profile  Tenant: Northern Tool & Equipment  Location: 1850 Banks Road, Fort Mill, SC  Represents 4.1% of contractual rental income  Building: 701,595 SF on 40 acres  Distributor and retailer of industrial grade and personal use  3 Mile Demographics (Source: S

  33. Slide 33: Regal Entertainment Group – Tenant Profile

    Regal Entertainment Group – Tenant Profile  Tenant: Regal Entertainment Group (NYSE: RGC)  3 locations aggregating 150,520 SF  Represents 3.7% of contractual rental income  % of Contractual Rental Income  Currently the largest American theater chain. The – Indianapolis, IN 1.0% second largest c

  34. Slide 34: Office Depot – Tenant Profile

    Office Depot – Tenant Profile  Tenant: Office Depot, Inc. (NYSE: ODP)  7 properties representing 174,431 SF % Contractual Rental Income  Represents 3.5% of contractual rental income – Chicago, IL: 0.8%  Leading global provider of office products and – Cary (Raleigh-Durham), NC: 0.6% services – E

  35. 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: For the Years Ended December 31, 2016 2015 2014 2013 2012 GAAP net income attributable to One Liberty Properties, Inc. $ 1.39 $ 1.22

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