One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (July 2021)
36 slides from One Liberty Properties's investor presentation, Jul 12, 2021
Slide 1: Investor Presentation July 2021
ᶺ 1 INVESTOR PRESENTATION JULY 2021 1liberty.com
Slide 2: Table of Contents
◆ 2 TABLE OF CONTENTS DESCRIPTION PAGE Table of Contents Safe Harbor Disclosure Company Overview Experienced Management Team Attractive Portfolio Fundamentals Portfolio Detail Diversified Portfolio Diversified Tenant Base Financial Summary Operational Metrics Steady Dividend Growth Oriented Balance
Slide 3: Safe Harbor
ᶺ 3 ◆ 3 SAFE HARBOR 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 s
Slide 4: Company Overview
ᶺ 4 ◆ 4 COMPANY OVERVIEW Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy – continued emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership
Slide 5: Experienced Management Team
◆ 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
Slide 6: Attractive Portfolio Fundamentals
◆ 6 Total Square Footage 10.7 M Number of Properties 123 Current Occupancy 9 7 . 5 % Con t ract u a l Ren t a l inc o m e ( 2) $71.5 M Lease Term Remaining 5.4 Years ATTRACTIVE PORTFOLIO FUNDAMENTALS (1) (1) Information presented as of March 31, 2021, including three properties owned by unconsolidat
Slide 7: Portfolio Detail
(1) Other is comprised of a veterinary hospital, an office and a ground lease for an apartment complex (2) 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 (3) The contractual rental income associated
Slide 8: Diversified Portfolio
◆ 8 Geographically diverse footprint Own 123 properties in 31 states Strong markets drive value Highest State Concentration by Contractual Rental Income State Number of Properties Contractual Rental Income % Contractual Rental Income South Carolina 7 $6 , 522 , 64 3 9 . 1 % New York 8 6 , 398 , 22 4
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% FedEx (NYSE: FDX) 6 3 , 5 6 7 , 0 49 5.0 LA Fitness International, LLC 3 3 , 2 3 8 , 4 89 4.5 Northern Tool & Equip
Slide 10: Financial Summary
◆ 10 FINANCIAL SUMMARY M a rket Ca p ( 1 ) $604.3 M Share s Ou t s t a nd i ng ( 1) 20.7 M I nsider Own e rshi p ( 2) 2 2 . 2 % Current Annualized Dividend $ 1 . 8 0 D i v i d end Y ie ld ( 3) 6 . 2% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $29.15
Slide 11: Operational Metrics
◆ 11 OPERATIONAL METRICS (1)(2) $1. 2 8 $1. 0 5 $0. 8 8 $1. 3 3 $ 0 . 0 0 $ 0 . 4 0 $ 0 . 8 0 $ 1 . 2 0 $ 1 . 6 0 20 1 7 20 1 8 20 1 9 20 2 0 Historical Net Income Per Share $2. 0 9 $2. 1 3 $1. 9 8 $1. 9 0 $ 1 . 6 0 $ 1 . 8 0 $ 2 . 0 0 $ 2 . 2 0 20 1 7 20 1 8 20 1 9 20 2 0 Historical AFFO Per Share
Slide 12: Steady Dividend
◆ 12 STEADY DIVIDEND (1) $1.66 $1.74 $1.80 $1.80 $1.80 (2) $1 . 00 $1 . 20 $1 . 40 $1 . 60 $1 . 80 2016 2017 2018 (1) For the years ended December 31 (2) During 2020, approximately 18.75% of the dividend was paid in shares of our common stock 20 1 9 20 2 0 DIVIDEND PER SHARE Current Annualized Divid
Slide 13: Growth Oriented Balance Sheet
◆ 13 GROWTH ORIENTED BALANCE SHEET AS AT MARCH 31, 2021 Gros s A ss e t s ( 1) $919.7 M T o t a l Deb t /Gr o s s A ss e t s ( 2) 4 9 .4% Fixed Rate Debt 9 6 . 6 % Deb t Ser v ic e Co v erage Ra t i o ( 3) 1.9 to 1.0 Fi x ed Charge Co v erage Ra t io ( 3) 1.6 to 1.0 AFFO Payout Ratio 93.8% Liquidity
Slide 14: Mortgage Debt Maturities
◆ 14 MORTGAGE DEBT MATURITIES A S A T M A RCH 31 , 2 0 2 1 ( 1 ) (1) Includes our share (i.e. $11.3 million) of the mortgage debt of our unconsolidated joint venture (2) The Company paid off $3.5 million of this balance in July 2021 in connection with the sale of its Philadelphia, PA property. See “
Slide 15: Lease Maturity Profile
◆ 15 LEASE MATURITY PROFILE Year Ending December 31, 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 (1) 2021 10 $ 1,125,663 1.6% 256, 7 60 2022 (2)(3) 29 15, 3
Slide 16: Stable Occupancy
◆ 16 STABLE OCCUPANCY (1)(2) 98. 1 % 98. 8 % 99. 6 % 98. 6 % 98. 3% 97. 3 % 99. 3 % 97. 8 % 96 . 8 % 97. 0 % 80 . 0% 90 . 0% 10 0 . 0% 2011 2012 2013 2014 2015 (1) As at December 31 (2) Based on square footage, including 100% of our unconsolidated joint ventures 20 1 6 20 1 7 20 1 8 20 1 9 2 0 2 0 A
Slide 17: Strong Rental Income
◆ 17 STRONG RENTAL INCOME (1)(2) $ 5 9 . 2 $62.8 $70.6 $78.8 $75.9 $83.8 $81.9 $35 $45 $55 $65 $75 $85 ($ in millions) For the Three Months Ended March 31, 2021: $20.7M 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 2 0 1 9 20 2 0 (1) As at December 31 (2) Rental income reflects, for all periods presented, the
Slide 18: Acquisition Track Record
2020 ◆ 18 ACQUISITION TRACK RECORD $107.5 $56.8 $95.2 (1) $118.6 $43 .2 $79.5 $ 4 9 . 3 $28.3 $0 $20 $40 $60 $80 $1 0 0 $1 2 0 2013 2014 2015 2016 (1) Includes our 50% share of an unconsolidated joint venture property in Manahawkin, NJ 20 1 7 20 1 8 20 1 9 ($ in millions) ACQUISITIONS PER YEAR
Slide 19: Recent Acquisitions
◆ 19 RECENT ACQUISITIONS (1) Date Acq ui r ed P r o p er ty Type Tenant (or d/b/a) MSA State Current Lease E x pi r ati o n P u r chas e Price (in ‘000s) Yield (2) 05/27/21 Industrial Pureon Inc. South Charlotte NC 05/31/27 $ 7,000 7.8% 02/24/20 Industrial FedEx Northwest Arkansas AR 07/23/27 $19,15
Slide 20: Recent Dispositions
(1) In 2020, the Company incurred approximately $581,000 of carrying costs (including $373,000 of principal and interest payments) related to this vacant property (2) Represents 100% of the gain on the sale of a property owned by a consolidated joint venture in which we had a 90% interest. Our share
Slide 21: Recent Mortgages
◆ 21 RECENT MORTGAGES Date Fi n a nced P r o p er ty Type Tenant (or d/b/a) MSA State Amount (in ‘000s) Mo r tga g e Maturity Int eres t Rate 05/27/21 Industrial Pureon Inc. South Charlotte NC $ 4,500 06/01/27 3.25% 03/16/20 Industrial FedEx Northwest Arkansas AR $12,500 07/01/27 3.63% 03/13/20 Indu
Slide 22: Acquisition Case Study – Industrial Pureon Inc.
(1) Mortgage with an interest rate of 3.25% closed simultaneously with the acquisition ◆ 22 ACQUISITION CASE STUDY – INDUSTRIAL PUREON INC. Purchase Price $ 7,000,000 Mortgage (1) ( 4 , 500 , 000) Net Equity Invested $ 2,500,000 Year 1 Base Rent $ 5 0 6 , 7 60 Interest Expense – 3.25% (1) ( 144 , 50
Slide 23: Acquisition Case Study – Industrial Creative Office Environments
◆ 23 ACQUISITION CASE STUDY – INDUSTRIAL CREATIVE OFFICE ENVIRONMENTS Purchase Price $ 9,100,000 Mortgage (1) ( 5 , 700 , 000) Net Equity Invested $ 3,400,000 Year 1 Base Rent $ 5 9 8 , 7 08 Interest Expense – 3.54% (1) ( 199 , 450) Net Cash to OLP $ 3 9 9 , 2 58 Return on Equity 11. 7 4% Creative O
Slide 24: Acquisition Case Study – Industrial FedEx
ACQUISITION CASE STUDY – INDUSTRIAL FEDEX In February 2020, acquired an industrial distribution center in Lowell, AR (Northwest Arkansas MSA). The 248,370 SF building is net leased to FedEx Ground. The property is well situated in the middle of the MSA with excellent access to Interstate - 49. The 2
Slide 25: Disposition Case Study – Retail Whole Foods, West Hartford, CT
◆ 25 DISPOSITION CASE STUDY – RETAIL WHOLE FOODS – WEST HARTFORD, CT In October 2010, acquired a net leased store in West Hartford, CT for $20.55 million. The 47,174 SF building is leased to Whole Foods Market Group, Inc. and guaranteed by Whole Foods Market, Inc. Assumed debt at closing of $13.0 mi
Slide 26: Summary – Why OLP?
ᶺ 26 ◆ 26 SUMMARY – WHY OLP? Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy – continued emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership
Slide 27: Appendices
ONE LIBERTY PROPERTIES, INC. APPENDICES
Slide 28: Top Tenants' Profiles
ONE LIBERTY PROPERTIES, INC. TOP TENANTS’ PROFILES
Slide 29: Havertys Furniture – Tenant Profile
(1) This property’s lease was not extended past August 2022 (2) Reflects rent credits of $400K and $100K in 2022 and 2023, respectively ◆ 29 HAVERTYS FURNITURE – TENANT PROFILE Tenant: Haverty Furniture Companies, Inc . (NYSE: HVT) (Source: Tenant’s website) » Full - service home furnishing retailer
Slide 30: FedEx – Tenant Profile
◆ 30 FEDEX – TENANT PROFILE Tenant: Operating Subsidiaries of FedEx Corporation (NYSE: FDX) (Source: Tenant’s website) » World’s largest express transportation company with service to more than 220 countries » FedEx Corporation employs more than 500,000 team members worldwide through a portfolio of
Slide 31: LA Fitness – Tenant Profile
◆ 31 LA FITNESS – TENANT PROFILE Tenant: LA Fitness International LLC (Source: Tenant’s website) » Operates over 700 clubs in 21 states » Founded in 1984 and is headquartered in Irvine, CA 3 properties represents 4.5% of contractual rental income and 141,663 SF % of Contractual Rental Income Represe
Slide 32: Northern Tool & Equipment – Tenant Profile
◆ 32 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’s Guide and The Golf Warehouse to sell
Slide 33: L3 Harris Technologies – Tenant Profile
◆ 33 L3 HARRIS TECHNOLOGIES – TENANT PROFILE Tenant: L3 Harris Technologies, Inc. (NYSE: LHX) (Source: Tenant’s website) » US based defense technology company » In 2019, L3 Technologies and Harris Corporation merged to form L3 Harris Technologies - the 6 th largest US defense company by revenues » T
Slide 34: GAAP Reconciliation
ONE LIBERTY PROPERTIES, INC. GAAP RECONCILIATION
Slide 35: GAAP Reconciliation
◆ 35 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 3 Months Ended March 31, Years Ended December 31, 2021 2020 2019 2018 2017 GAAP net income attributable to One Liberty Propertie
Slide 36: Non-GAAP Financial Measures
ᶺ 36 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 income (calculated in accordanc
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