One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (September 2017)

37 slides from One Liberty Properties's investor presentation, Sep 18, 2017

  1. Slide 1: Investor Presentation September 2017

    INVESTOR PRESENTATION SEPTEMBER 2017 onelibertyproperties.com

  2. 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 Growth

  3. Slide 3: Safe Harbor

    3 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 diff

  4. Slide 4: Company Overview

    4 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

  5. 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 millio

  6. Slide 6: Attractive Portfolio Fundamentals

    6 ATTRACTIVE PORTFOLIO FUNDAMENTALS (1) Total Square Footage 10.6 M Number of Properties 121 Current Occupancy 97.2% Contractual Rental income (2) $69.5 M Lease Term Remaining 8.2 Years Northern Tool – Fort Mill, SC (Charlotte, MSA) Regal Cinemas (d/b/a United Artists) – Indianapolis, IN (1) Informa

  7. Slide 7: Portfolio Detail

    7 PORTFOLIO DETAIL Type of Property Number of Properties Contractual Rental Income (1) % of Contractual Rental Income Retail – General 43 $ 18,226,756 26.2% – Furniture 14 5,832,841 8.4 – Supermarket 2 2,458,515 3.5 – Office Supply 7 2,430,408 3.5 Industrial 28 24,480,560 35.2 Restaurants 17 3,382,1

  8. Slide 8: Diversified Portfolio

    8 DIVERSIFIED PORTFOLIO  Geographically diverse footprint  Own 121 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 Texas 12 $8,672,815 12.5% South Carolina

  9. 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 $ 4,809,684 6.9% LA Fitness International , LLC 3 3,108,833 4.5 Northern Tool & Equipment 1 2,799,409 4.0 Regal Entertainment Group (NYS

  10. Slide 10: Financial Summary

    10 FINANCIAL SUMMARY Market Cap (1) $445.4 M Shares Outstanding (1) 18.6 M Insider Ownership (2) 23.3% Current Annualized Dividend $1.72 Dividend Yield (3) 7.2% FedEx Ground & Chep USA – St. Louis, MO JCI/ Yanfeng (Johnson Controls Guarantee) – McCalla , AL (1) Market cap is calculated using the sha

  11. Slide 11: Targeting Long Term Total Return

    11 TARGETING LONG TERM TOTAL RETURN (1) Performance period ended June 30, 2017 Consistent driver of long term stockholder value 11.5% 10.1% 8.5% 0% 2% 4% 6% 8% 10% 12% OLP NAREIT Equity Index S&P 500 15 - Year Annualized Total Return (1)

  12. Slide 12: Growth in Operations

    12 GROWTH IN OPERATIONS (1) A reconciliation of net income per diluted share, as determined in accordance with GAAP, to FFO per diluted share and AFFO pe r d iluted share, may be found at the end of this presentation (2) FFO includes $1.3 million or $0.08 per share, and $2.9 million or $0.17 per sha

  13. Slide 13: Growth Oriented Balance Sheet

    13 GROWTH ORIENTED BALANCE SHEET AS AT JUNE 30, 2017 Gross Assets (1) $852.8 M Total Debt/Gross Assets (2) 52.0% Fixed Rate Debt 94.0% Debt Service Coverage Ratio (3) 2.3 to 1.0 Fixed Charge Coverage Ratio (3) 2.7 to 1.0 FFO Payout 91.0% (1) Gross assets represent total assets plus accumulated depre

  14. Slide 14: Laddered Mortgage Debt Maturities

    14 LADDERED MORTGAGE DEBT MATURITIES AS AT JUNE 30, 2017 (1) (1) Includes our share of the mortgage debt of our unconsolidated joint ventures (2) The Company paid off $4.6 million of this balance on August 3, 2017  Weighted average interest rate of 4.3% on fixed rate debt  There is approximately $

  15. Slide 15: Lease Maturity Profile

    15 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 2018 17 $ 1,491,638 2.1% 233,232 2019 34 4,650,491 6.7 583,68

  16. Slide 16: Consistent Operational Performance

    16 CONSISTENT OPERATIONAL PERFORMANCE (1) As at December 31 (2) Based on square footage, including our unconsolidated joint ventures 100.0% 98.0% 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 97.3% 80.0% 90.0% 100.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Stable Occupancy (1)(2) At June 30, 2

  17. Slide 17: Consistent Operational Performance

    17 CONSISTENT OPERATIONAL PERFORMANCE (1) As at December 31 (2) Includes straight - line rent accruals and amortization of intangibles $41.4 $44.4 $42.8 $49.3 $56.6 $59.0 $64.2 $35 $40 $45 $50 $55 $60 $65 2010 2011 2012 2013 2014 2015 2016 ($ in millions) Strong Rental Income Growth (1)(2) For the 6

  18. Slide 18: Acquisition Track Record

    18 ACQUISITION TRACK RECORD (1) Includes our 50% share of an unconsolidated joint venture property in (a) Savannah, GA acquired in 2011 and (b) Manahawkin, N J a cquired in 2015  Acquired $35.2 million of properties through June 30, 2017  Current pipeline of diverse opportunities in excess of $225

  19. Slide 19: Recent Acquisitions

    19 RECENT ACQUISTIONS 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) 06/20/17 Industrial Power Distributors/Keystone Automotive Des Moines IA 2/28/30 - 10/31/23 $14,700 7.4% All cash

  20. Slide 20: Recent Dispositions

    20 RECENT DISPOSITIONS Date Acquired Date Sold Property Type Tenant (or d/b/a) MSA State Gross Sales Price (in ‘000s) Net Gain (in ‘000s) 06/30/2010 07/14/2017 Retail Kohls Kansas City MO $10,250 $2,181 04/08/1996 05/08/2017 Retail Former Sports Authority Denver CO $ 9,500 $6,568 12/22/2010 12/22/20

  21. Slide 21: Recent Mortgages

    21 RECENT MORTGAGES Date Financed Property Type Tenant (or d/b/a) MSA State Amount (in ‘000s) Mortgage Maturity Interest Rate 08/11/17 Industrial Saddle Creek Logistics Scranton PA $ 7,200 08/10/42 3.75% 07/10/17 Industrial Power Distributors/Keystone Automotive Des Moines IA $ 8,820 08/01/27 3.61%

  22. Slide 22: Acquisition Case Study - Industrial

    22 ACQUISITION CASE STUDY - INDUSTRIAL  In September 2016, acquired a distribution facility in Lebanon, TN (Nashville MSA) net leased to Famous Footwear and guaranteed by Caleres , Inc (NYSE: CAL) » Global footwear retailer and wholesaler with annual sales of $2.6 billion. This mission critical fac

  23. Slide 23: Disposition Case Study

    23 DISPOSITION CASE STUDY Purchase Price $ 4,040,000 Sales Price 9,500,000 Internal Rate of Return to OLP 19.57%  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

  24. Slide 24: Acquisition Case Study – Short Term Lease

    24 ACQUISITION CASE STUDY – SHORT TERM LEASE  In June 2014, acquired via a short term sale - leaseback, a distribution warehouse in Joppa, MD through a consolidated JV » 19 miles north of Baltimore, MD – approximately 1.5 miles from a full interchange on Interstate 95 » The building is 258,710 SF o

  25. Slide 25: Summary – Why OLP?

    25 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

  26. Slide 26: Appendix

    APPENDIX

  27. 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 impro

  28. 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 $6.6 billion (as of 3/15/2017)

  29. 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 20

  30. Slide 30: Releasing Case Study – Office Depot

    30 RELEASING CASE STUDY – OFFICE DEPOT  Dark and paying Office Depot site located in Kennesaw, GA (Atlanta MSA) » 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 i

  31. Slide 31: Top Tenants' Profiles

    © ONE LIBERTY PROPERTIES, INC TOP TENANTS’ PROFILES

  32. Slide 32: Havertys Furniture – Tenant Profile

    32 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 15 states in the Southern and Midwestern regions » Weathered economic cycle

  33. Slide 33: LA Fitness – Tenant Profile

    33 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 represent 4.5% of contractual rental income and 141,663 SF % of Contractual Rental Inc

  34. Slide 34: Northern Tool & Equipment – Tenant Profile

    34 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 » 95 retail stores in the U.S. » Acquired The Sportsman’s Guide and The Golf Warehouse to sell outdoo

  35. Slide 35: Regal Entertainment Group – Tenant Profile

    35 REGAL ENTERTAINMENT GROUP – TENANT PROFILE  Tenant: Regal Entertainment Group (NYSE: RGC) (Source: Tenant’s website) » Brands include: Regal Cinemas, Edward Theaters and United Artists Theaters » 7,379 screens and 566 theaters in America » Currently the largest American theater chain. The second

  36. Slide 36: Office Depot – Tenant Profile

    36 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 1,400 retail stores » Revenues of $11.0 billion (as of 12/31/2016) » $2.1 billion market cap (as of 8/16/2017)  7 prope

  37. Slide 37: GAAP Reconciliation

    37 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, 2017 2016 2015 2014 2013 GAAP n et income attributable to One Liberty Propertie

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