One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (August 2020)

37 slides from One Liberty Properties's investor presentation, Aug 10, 2020

  1. Slide 1: Investor Presentation August 2020

    ڏ 1 INVESTOR PRESENTATION AUGUST 2020 onelibertyproperties.com

  2. Slide 2: Table of Contents

    DESCRIPTION PAGE ڏ 2 Table of Contents Safe Harbor Disclosure Company Overview Experienced Management Team Attractive Portfolio Fundamentals Portfolio Detail Diversified Portfolio Diversified Tenant Base Financial Summary Steady Operations Growth Oriented Balance Sheet Mortgage Debt Maturities Lease

  3. Slide 3: Safe Harbor Disclosure

    This presentation contains certain forward - looking statements within the meaning of Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended . We intend such forward - looking statements to be covered by the safe harbor provision

  4. Slide 4: Company Overview

     Fundamentals – focused real estate company  Disciplined track record over various economic cycles  Active net lease strategy - emphasis on industrial properties  Experienced management team  Alignment of interests - significant insider ownership COMPANY OVERVIEW ڏ 4

  5. Slide 5: Experienced Management Team

    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 sold

  6. Slide 6: Attractive Portfolio Fundamentals

    Total Square Footage 10.7 M Number of Properties 126 Current Occupancy 96 . 9 % Co n t r ac t u a l R e n t a l i n c o m e ( 2 ) $76.0 M Cosentino North America – Savannah, GA Lease Term Remaining 6.4 Years (1) Information presented as of June 30, 2020, including three properties owned by unconsoli

  7. Slide 7: Portfolio Detail

    (1) Though we have three theaters, one is part of a multi - tenant shopping center property in Manahawkin, NJ and is therefore excluded from this column (2) The contractual rental income associated with the theater in Manahawkin, NJ is included (3) Other is comprised of a ground lease for an apartme

  8. Slide 8: Diversified Portfolio

    DIVERSIFIED PORTFOLIO Highest State Concentration by Contractual Rental Income  Geographically diverse footprint State Number of Properties Contractual Rental Income % Contractual Rental Income New York 8 $6 , 401 , 761 8 . 4%  Own 126 properties in 31 states Texas 9 6 , 1 7 9 , 1 90 8.1 South Car

  9. Slide 9: Diversified Tenant Base

    DIVERSIFIED TENANT BASE Top Tenants Number of Locations Contractual Rental Income % of Contractual Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 5,327,629 7.0% FedEx (NYSE: FDX) 6 3 , 5 67 , 0 4 9 4.7 LA Fitness International, LLC 3 3 , 1 73 , 8 5 6 4.2 Northern Tool & Equipment 1

  10. Slide 10: Financial Summary

    M a r k et C ap ( 1 ) $366.5 M S ha res O u t s t an d i n g ( 1 ) 20.4 M I n s i d e r O w n ers h ip ( 2 ) 21 . 9 % Current Annualized Dividend $1 . 8 0 D i v i d e n d Y i e l d ( 3 ) 10 . 0 % Applied Control Equipment – Denver, CO Campania International / U.S. Tape – Philadelphia, PA (1) Market

  11. Slide 11: Steady Operations

    STEADY OPERATIONS (1)(2) $1. 9 0 $1. 9 4 $2.02 (3) $1.84 (3) $1 . 60 $1.80 $2 . 00 $2 . 20 2016 2017 2018 2019 Historical FFO Per Share Historical AFFO Per Share $2.20 $2.09 $2.13 $2.00 $1.99 $1.98 $1.80 $1.60 2016 2017 2018 2019 FFO Payout (4) 2016 87% 2017 90% 2018 89% 2019 98% AFFO Payout (4) 201

  12. Slide 12: Steady Operations: Dividend Per Share

    STEADY OPERATIONS (1) $1. 6 6 $1.74 $1.80 $1.80 $ 1 . 0 0 $ 1 . 2 0 $ 1 . 4 0 $ 1 . 6 0 $ 1 . 8 0 2 0 1 9 DIVIDEND PER SHARE Current Annualized Dividend (2) : $1.80 ڏ 12 2016 2017 2018 (1) For the years ended December 31 (2) The $0.45/share dividend paid in July 2020 was issued with approximately 50

  13. Slide 13: Growth Oriented Balance Sheet

    GROWTH ORIENTED BALANCE SHEET AS AT JUNE 30, 2020 (1) Gross assets represent total assets plus accumulated depreciation of $143.1 million (2) Total debt includes our share of debt of our unconsolidated joint venture ( i.e. $11.5 million) and excludes unamortized deferred financing costs (i.e . $4.3

  14. Slide 14: Mortgage Debt Maturities

    MORTGAGE DEBT MATURITIES AS AT JUNE 30, 2020 (1) $2.1 ڏ 14 $10.9 $30.9 $42.3 $49.5 $187.4 (2) $0 $ 4 0 $ 8 0 $ 1 2 0 $ 1 6 0 $ 2 0 0 ($ in millions)  Weighted average interest rate of 4.18% on fixed rate debt  There is approximately $14.0 million ($0.70 per share) of scheduled amortization of mort

  15. Slide 15: Lease Maturity Profile

    LEASE MATURITY PROFILE 12 Months Ending June 30, Number of Expiring Leases Contractual Rental Income Under Expiring Leases % of Contractual Rental Income Represented by Expiring Leases Approximate Square Feet Subject to Expiring Leases 2021 14 $ 1,064,741 1 . 4 % 218 , 62 0 2022 26 8 , 593 , 3 9 8 1

  16. Slide 16: Stable Occupancy

    STABLE OCCUPANCY (1)(2) 98.9% 98 . 1 % 98.8% 99.6% 98.6% 98 . 3 % 97 . 3 % 99.3% 97.8% 96.8% 8 0 . 0 % 9 0 . 0 % 1 0 0 . 0 % 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2010 2011 2012 2013 2014 (1) As at December 31 (2) Based on square footage, including 100% of our unconsolidated joint ventures At June

  17. Slide 17: Strong Rental Income Growth

    STRONG RENTAL INCOME GROWTH (1)(2)(3) $51.0 $59.2 $ 6 2 . 8 $70.6 $78.8 $75.9 $83.8 $ 3 5 $ 4 5 $ 5 5 $ 6 5 $ 7 5 $ 8 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 ($ in millions) For the Six Months Ended June 30, 2020: $42.1M (3) Rental income reflects, for all periods presented, the adoption of Financial Acco

  18. Slide 18: Acquisition Track Record

    ACQUISITION TRACK RECORD $107 .5 (1) Includes our 50% share of an unconsolidated joint venture property in Manahawkin, NJ ڏ 18 $ 5 6 . 8 $95.2 (1) $ 1 1 8 .6 $43.2 $79.5 $49.3 $0 $ 2 0 $ 4 0 $ 6 0 $ 8 0 $ 1 0 0 $ 1 2 0 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 ($ in millions)  Current

  19. Slide 19: Recent Acquisitions

    RECENT ACQUISITIONS (1) Date Acquired Property Type Tenant (or d/b/a) MSA State Current Lease E xp i r a t io n Purchase Price (in ‘000s) Yield (2) 02/24/20 Industrial FedEx Northwest Arkansas AR 07/23/27 $19,150 6.4% 02/20/20 Industrial Creative Office Environments Richmond VA 09/30/34 $ 9,100 7.8%

  20. Slide 20: Recent Dispositions

    RECENT DISPOSITIONS D a te Sold Date A c q u ir e d P r o p e r ty Type Tenant (or d/b/a) MSA State Gross Sales Price (in ‘000s) Net Gain (in ‘000s) 07/01/20 03/31/04 Retail Carmax Knoxville TN $18,000 $10,316 03/02/20 06/18/08 Retail Lanier Realty, Inc. Savannah GA $ 825 $ 242 (1) 02/11/20 11/30/04

  21. Slide 21: Recent Mortgages

    RECENT MORTGAGES Date F i n a n ce d P r o p e rty Type Tenant (or d/b/a) MSA State Amount (in ‘000s) M o rt gag e Maturity Int e r es t Rate 03/16/20 Industrial FedEx Northwest Arkansas AR $12 , 50 0 07/01/27 3.63% 03/13/20 Industrial Creative Office Environments Richmond VA $ 5,700 04/01/35 3.54%

  22. Slide 22: Acquisition Case Study – Zwanenberg Food & Metro Carpet

    ACQUISITION CASE STUDY – INDUSTRIAL ZWANENBERG FOOD & METRO CARPET  In May 2019, acquired a two - tenant industrial warehouse facility in Nashville, TN.  The 99,500 SF property is net leased to Zwanenberg Food Group and Metro Carpets.  The infill property is well located within the Nashville metr

  23. Slide 23: Acquisition Case Study – Dufresne Spencer Group

    Dufresne Spencer Group – St. Louis, MO ACQUISITION CASE STUDY – INDUSTRIAL DUFRESNE SPENCER GROUP (1) Mortgage with an interest rate of 4.50% closed in March 2019  In December 2018, acquired a single tenant industrial warehouse facility in St. Louis, MO .  The 119,680 SF property is net leased to

  24. Slide 24: Acquisition Case Study – 21st Century & Novacart

    ACQUISITION CASE STUDY – INDUSTRIAL 21 st CENTURY & NOVACART 21 st Century / Novacart – Moorestown, NJ (1) Mortgage with an interest rate of 4.64% closed in February 2019  In November 2018, acquired a two - tenant industrial warehouse facility in Moorestown, NJ .  The 219,881 SF property is net le

  25. Slide 25: Disposition Case Study – Caterpillar Mining

    Caterpillar Mining – South Milwaukee, WI DISPOSITION CASE STUDY – INDUSTRIAL  In August 2004, acquired a 50% interest in a net leased manufacturing campus in South Milwaukee, WI leased to Bucyrus International, Inc. for $6.25 million. » 10 miles south of downtown Milwaukee » The 27.5 acre campus fe

  26. Slide 26: Blend & Extend Case Study – L3 Harris Technologies

    BLEND & EXTEND CASE STUDY – L3 HARRIS TECHNOLOGIES Loan Refinance Terms: Mortgage Amount: $ 2 6,8 7 0,0 0 0 Interest Rate: 4.3 5 % Loan Term: 15 years Amortization: 20 Years ڏ 26  In December 2000, acquired a 149,870 SF flex warehouse located in Hauppauge, NY for $13.65 million.  The property has

  27. Slide 27: Summary - Why OLP?

    SUMMARY - WHY OLP?  Fundamentals – focused real estate company  Disciplined track record over various economic cycles  Active net lease strategy - emphasis on industrial properties  Experienced management team  Alignment of interests - significant insider ownership ڏ 27

  28. Slide 28: Appendix

    ONE LIBERTY PROPERTIES, INC. APPENDIX

  29. Slide 29: Top Tenants' Profiles

    ONE LIBERTY PROPERTIES, INC. ; | TOP TENANTS’ PROFILES

  30. Slide 30: Havertys Furniture – Tenant Profile

    Haverty – Cedar Park, TX (Austin MSA) 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 » 100 showrooms in 16 states in the Southern and Midwest

  31. Slide 31: FedEx – Tenant Profile

    FEDEX – TENANT PROFILE  6 properties represents 4.7% of contractual rental income and 678,595 SF % of Contractual Rental Income – Lowell, AR: – Delport, MO: – Indianapolis, IN: – Pinellas Park, FL: – Durham, NC: 1 . 6% 1 . 1 % 0 . 9% 0 . 4 % 0 . 4 % – Miamisburg, OH: 0.3% FedEx – Lowell, AR (Northw

  32. Slide 32: LA Fitness – Tenant Profile

    LA Fitness – Secaucus, NJ LA FITNESS – TENANT PROFILE  Tenant: LA Fitness International LLC (Source: Tenant’s website) » Currently operates over 700 clubs in 21 states » Founded in 1984 and is headquartered in Irvine, CA  3 properties represents 4.2% of contractual rental income and 141,663 SF % o

  33. Slide 33: Northern Tool & Equipment – Tenant Profile

    Northern Tool & Equipment – Fort Mill, SC 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 » Over 100 retail stores in the U.S. » Acquired The Sportsman’

  34. Slide 34: L3 Harris Technologies – Tenant Profile

    L3 Harris Technologies, Inc. – Hauppauge, NY L3 HARRIS TECHNOLOGIES – TENANT PROFILE  Tenant: L3 Harris Technologies, Inc. (NYSE: LHX) (Source: Tenant’s website) » US based defense technology company » In June 2019, L3 Technologies and Harris Corporation merged to form L3 Harris Technologies - the

  35. Slide 35: GAAP Reconciliation

    ONE LIBERTY PROPERTIES, INC. ; | GAAP RECONCILIATION

  36. 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 6 Months Ended June 30, Years Ended December 31, 2020 2019 2018 2017 2016 GAAP net income attributable to One Liberty Properties, Inc

  37. Slide 37: Non-GAAP Financial Measures

    NON - GAAP FINANCIAL MEASURES ڏ 37 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 i

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