One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (June 2018)
36 slides from One Liberty Properties's investor presentation, Jun 1, 2018
Slide 1: Investor Presentation June 2018
Investor Presentation JUNE 2018 onelibertyproperties.com
Slide 2: Table of Contents
◆ 2 TABLE OF CONTENTS 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 Growt
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 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 10.9 M Number of Properties 119 Current Occupancy 99.1% Contractual Rental income (2) $70.9 M Lease Term Remaining 8.1 Years Forbo – Charlotte, NC Saddle Creek Logistics – Scranton, PA (1) Information presented as of March 31, 2018, including five properties owned by unconso
Slide 7: Portfolio Detail
◆ 7 Type of Property Number of Properties Contractual Rental Income (1) % of Contractual Rental Income Retail – General 39 $ 17,409,545 24.6% – Furniture 14 6,109,004 8.6 – Supermarket 3 2,718,682 3.8 – Office Supply 7 2,406,728 3.4 Industrial 30 26,414,936 37.3 Restaurants 16 3,499,213 4.9 Health &
Slide 8: Diversified Portfolio
◆ 8 Geographically diverse footprint Own 119 properties in 30 states Strong markets drive value Highest State Concentration by Contractual Rental Income State Number of Properties Contractual Rental Income % Contractual Rental Income Texas 11 $8,071,732 11.4% South Carolina 6 5,583,177 7.9 New
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 $ 4,842,847 6.8% LA Fitness International , LLC 3 3,049,876 4.3 Northern Tool & Equipment 1 2,820,352 4.0 Office Depot, Inc. (NYSE: OD
Slide 10: Financial Summary
◆ 10 Power Distributors / Keystone Automotive – Des Moines, IA Dufresne Spencer Group – Memphis, TN FINANCIAL SUMMARY Market Cap (1) $ 490.4 M Shares Outstanding (1) 19.2 M Insider Ownership (2) 21.7% Current Annualized Dividend $1.80 Dividend Yield (3) 7.1% (1) Market cap is calculated using the sh
Slide 11: Targeting Long Term Total Return
◆ 11 TARGETING LONG TERM TOTAL RETURN Consistent driver of long term stockholder value 12.0% 9.1% 6.9% 0% 2% 4% 6% 8% 10% 12% OLP S&P 500 NAREIT Equity Index 10 - Year Annualized Total Return (1) (1) Performance period ended March 31, 2018
Slide 12: Growth in Operations
◆ 12 GROWTH IN OPERATIONS (1) $1.75 (3) $1.97 (3) $1.90 $1.94 $1.20 $1.40 $1.60 $1.80 $2.00 2014 2015 2016 2017 Historical FFO Per Share (2) $1.84 $1.92 $1.99 $2.09 $1.50 $1.70 $1.90 $2.10 2014 2015 2016 2017 Historical AFFO Per Share (2) (1) For the years ended December 31 (2) A reconciliation of n
Slide 13: Growth in Operations: Dividend Growth Per Share
◆ 13 GROWTH IN OPERATIONS (1) $1.50 $1.58 $1.66 $1.74 $1.00 $1.20 $1.40 $1.60 $1.80 2014 2015 2016 2017 Dividend Growth Per Share (1) For the years ended December 31
Slide 14: Growth Oriented Balance Sheet
◆ 14 GROWTH ORIENTED BALANCE SHEET AS AT MARCH 31, 2018 Gross Assets (1) $862.7 M Total Debt/Gross Assets (2) 50.0% Fixed Rate Debt 95.2% Debt Service Coverage Ratio (3) 2.3 to 1.0 Fixed Charge Coverage Ratio (3) 2.2 to 1.0 FFO Payout 90.0% Liquidity available to acquire in excess of an estimated
Slide 15: Mortgage Debt Maturities
◆ 15 MORTGAGE DEBT MATURITIES AS AT MARCH 31, 2018 Weighted average interest rate of 4.2% on fixed rate debt There is approximately $10.7 million ($ 0.56 per share) of scheduled amortization of mortgages for the twelve months ending March 31, 2019 $7.4 (2) $3.5 $2.1 $6.4 $38.4 $225.4 $0 $50 $100
Slide 16: Lease Maturity Profile
◆ 16 LEASE MATURITY PROFILE (1) Our contractual rental income represents, after giving effect to any abatements, concessions or adjustments, the base rent pa yab le to us for the year ending December 31, 2018 under leases in effect at March 31, 2018 and excludes approximately $793,000 of straight -
Slide 17: Stable Occupancy
◆ 17 STABLE OCCUPANCY (1)(2) 98.0% 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 97.3% 99.3% 80.0% 90.0% 100.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1) As at December 31 (2) Based on square footage, including our unconsolidated joint ventures At March 31, 2018: Occupancy 99.1%
Slide 18: Strong Rental Income Growth
◆ 18 STRONG RENTAL INCOME GROWTH (1 )(2) $44.4 $42.8 $49.3 $56.6 $59.0 $64.2 $68.2 $35 $40 $45 $50 $55 $60 $65 2011 2012 2013 2014 2015 2016 2017 ($ 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 Current pipeline of diverse opportunities in excess of $225.0 million $29.6 (1) $44.6 $107.5 $56.8 $95.2 (1) $118.6 $43.2 $0 $20 $40 $60 $80 $100 $120 2011 2012 2013 2014 2015 2016 2017 ($ in millions) Acquisitions per Year (1) Includes our 50% share of an unconsolida
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 Info (at time of purchase) (in ‘000s) 03/28/18 Industrial Campania International / U.S. Tape Philadelphia PA 03/31/28 $12,675 7.5% All cash 10/10/17
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) 04/05/18 09/27/06 Retail K - Mart Savannah GA $ 2,800 $ 141 (1) 01/30/18 11/13/12 Retail Shopping Center Houston TX $ 9,200 $2,408 (2) 11/14/17 09/12/13
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 05/04/18 (1) Retail K - Mart Winston - Salem NC $ 2,085 05/08/23 4.81% 04/18/18 Industrial Huttig Building Products Portland ME $ 5,650 08/01/31 4.55% 02/23/18 (1) Retail P
Slide 23: Acquisition Case Study - Industrial
◆ 23 ACQUISITION CASE STUDY - INDUSTRIAL In March 2018, acquired a multi - tenant distribution facility via sale - leaseback in Pennsburg, PA The 291,203 SF property is absolute net leased to Campania International, Inc. (213,459 SF) and US Tape Company, Inc. (77,744 SF ) Pennsburg is well loc
Slide 24: Disposition Case Study
◆ 24 DISPOSITION CASE STUDY In April 1996, acquired a net leased retail property in Greenwood Village (Denver MSA), CO leased to Gart Bros. Sporting Goods Company for $4.0 million » 11 miles southeast of downtown Denver » The building is 45,000 SF on 3.5 acres of land Financed the asset at closi
Slide 25: Summary – Why OLP?
◆ 25 Fundamentals – focused real estate company Disciplined track record through various economic cycles Active net lease strategy Experienced management team Alignment of interests through significant insider ownership SUMMARY – WHY OLP?
Slide 26: Appendix
ONE LIBERTY PROPERTIES, INC.
Slide 27: Acquisition Case Study – Ground Lease
◆ 27 ACQUISITION CASE STUDY – GROUND LEASE In August 2016, acquired 8 acres of land in Beachwood, OH , a wealthy suburb of Cleveland » Simultaneously ground leased to an experience multi - family operator » Land is improved by a class A 348 unit mid - rise multi - family complex » Building and imp
Slide 28: Acquisition Case Study - Industrial
◆ 28 ACQUISITION CASE STUDY - INDUSTRIAL In June 2016, acquired a distribution facility in El Paso, TX , net leased to Toro Co (NYSE: TTC) » Toro is global developer , manufacturer and distributor of lawn and landscape equipment » Toro has a market cap of approximately $6.3 billion (as of 5/8/2018
Slide 29: Blend & Extend Case Study – Office Depot
◆ 29 BLEND & 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
Slide 30: Profiles
ONE LIBERTY PROPERTIES, INC. PROFILES
Slide 31: Havertys Furniture – Tenant Profile
◆ 31 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 » 124 showrooms in 16 states in the Southern and Midwestern regions » Weathered economic cyc
Slide 32: LA Fitness – Tenant Profile
◆ 32 LA FITNESS – TENANT PROFILE Tenant: LA Fitness International LLC (Source: Tenant’s website) » Currently operates over 800 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 SF % of Contractual Rental
Slide 33: Northern Tool & Equipment – Tenant Profile
◆ 33 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 » 100 retail stores in the U.S. » Acquired The Sportsman’s Guide and The Golf Warehouse to sell out
Slide 34: Office Depot – Tenant Profile
◆ 34 OFFICE DEPOT – TENANT PROFILE Tenant: Office Depot, Inc. (NYSE: ODP) (Source: Tenant’s website) » Leading global provider of office products and services » Operates more than 1,370 retail stores » Revenues of $10.2 billion (as of 12/30/2017) » $1.3 billion market cap (as of 5/8/2018) Office D
Slide 35: Regal Entertainment Group – Tenant Profile
◆ 35 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 cinema exhibitor behind AMC » 7,322 screens and 560 the
Slide 36: GAAP Reconciliation
◆ 36 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, 2017 2016 2015 2014 2013 GAAP n et income attributable to One Liberty Properties, Inc. $ 1.28 $ 1.39 $
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