One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (September 2016)
35 slides from One Liberty Properties's investor presentation, Sep 23, 2016
Slide 1: Investor Presentation September 2016
INVESTOR PRESENTATION SEPTEMBER 2016 o nelibertyproperties.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 T eam 5 Attractive Portfolio Fundamentals 6 Portfolio Detail 7 Diversified Portfolio 8 Diversified Tenant Base 9 Financial Summary 10 Targeting Long Term Total Return 11 Gro
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 diff
Slide 4: Company Overview
4 Company Overview ▪ Fundamentals - focused r eal e state company ▪ Disciplined track record through economic cycles ▪ Active net lease strategy ▪ Experienced management team ▪ Alignment of interests through significant insider ownership
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
Slide 6: Attractive Portfolio Fundamentals
(1) Information presented as of September 1 , 2016 , including five properties owned by unconsolidated joint ventures (2) Our contractual rental income includes (a) after giving effect to any abatements, concessions or adjustments, base rent payab le to us for the twelve months ending August 31, 201
Slide 7: Portfolio Detail
Type of Property Number of Properties Contractual Rental Income (1) % of Contractual Rental Income Retail – General 46 $ 22,468,644 32.8% – Furniture 14 5,841,611 8.5 – Restaurant 18 3,812,014 5.6 – Office Supply 7 2,430,408 3.6 – Supermarket 2 2,426,832 3.5 Industrial 22 18,431,399 26.9 Flex 3 3,28
Slide 8: Diversified Portfolio
Highest State Concentration by Contractual Rental Income State Number of Properties Contractual Rental Income % Contractual Rental Income Texas 12 $ 8,480,765 12.4% South Carolina 6 5,594,220 8.2 New York 9 5,485,153 8.0 Illinois 8 4,401,464 6.4 Georgia 12 4,025,249 5.9 47 $27,986,851 40.9% 8 ▪ Geog
Slide 9: Diversified Tenant Base
Top Tenants Number of Properties Contractual Rental Income % of Contractual Rental Income Haverty Furniture Companies, Inc . (NYSE: HVT) 11 $ 4,580,145 6.7% LA Fitness International, LLC 3 3,075,583 4.5 Northern Tool & Equipment 1 2,764,916 4.0 Regal Entertainment Group (NYSE: RGC ) 3 2,513,065 3.7
Slide 10: Financial Summary
(1) Market cap is calculated using the shares outstanding and the closing stock price of OLP at September 22 , 2016 (2) Calculated as of September 22 , 2016 (3) Based on closing stock price at September 22 , 2016 Market Cap (1) : Shares Outstanding (1) : Insider Ownership (2) : Current Annualized Di
Slide 11: Targeting Long Term Total Return
(1) Performance periods reflects September 1 , 2001 through August 31 , 2016 . 11 Consistent driver of long term stockholder value Targeting Long Term Total Return 0% 2% 4% 6% 8% 10% 12% 14% OLP NAREIT Equity Index S&P 500 12.4% 11.2% 6.6% 15 - Year Annualized Total Return (1)
Slide 12: Growth in Operations
$1.20 $1.30 $1.40 $1.50 $1.60 $1.34 $1.42 $1.50 $1.58 (1) A reconciliation of net income per diluted share, as determined in accordance with GAAP, to FFO per diluted share and AFFO per diluted share may be found at the end of this presentation (2) Impacting the changes in the FFO payout ratio are di
Slide 13: Growth Oriented Balance Sheet
Gross Assets (1) : Total Debt/Gross Assets (2) : Fixed Rate Debt : Debt Service Coverage Ratio (3) : Fixed Charge Coverage Ratio (3) : FFO Payout (4) : (1) At June 30 , 2016 . Gross assets represents total assets plus accumulated depreciation of $ 89 . 6 million (2) Total debt includes at June 30 ,
Slide 14: Laddered Mortgage Debt Maturities
▪ Weighted average interest rate of 4.3% on fixed rate debt ▪ There is approximately $11.8 million ($ 0.67 per share ) of scheduled amortization of mortgages for the 12 months ending August 31, 2017 14 (1) Includes our share of the mortgage debt of our unconsolidated joint ventures Laddered Mortgage
Slide 15: Lease Maturity Profile
12 Months Ending August 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 2017 14 $ 611,763 0.9% 165,034 2018 27 2,946,315 4.3 333,779 2019 31 5,209,335 7.6 7
Slide 16: Consistent Operational Performance
(1) As at December 31 for each of 2007 through 2015 and includes our unconsolidated joint ventures (2) Includes (a) all tenant related revenues, including straight - line rent accruals and amortization of intangibles and (b) lease termination fees of $1.3 million in 2014 and $2.9 million in 2015. 16
Slide 17: Acquisition Track Record
▪ Acquired $118.6 million of properties through September 1, 2016 ▪ Current pipeline of diverse opportunities in excess of $250 million (1) Includes our 50% share of an unconsolidated joint venture property in (a) Savannah, GA, acquired in 2011 and (b) Manahawkin, NJ, acquired in 2015 (2) Represents
Slide 18: Recent Acquisitions
(1) GAAP yield represents the base rent and straight line rental accruals payable over the remaining term of the lease, annualized, divided by the purchase price (2) Represents four properties purchased with four individual mortgages which are cross - collateralized (3) Represents our 50% share of t
Slide 19: Recent Mortgages
Date Financed Property Type Tenant (or d/b/a) MSA State Mortgage Amount (in ‘000s) Mortgage Maturity Interest Rate 09/01/16 Industrial Famous Footwear / Caleres Nashville TN $21,288 10/01/31 3.70% 08/24/16 Industrial The Toro Company El Paso TX $15,000 09/01/22 3.50% 07/29/16 Industrial Iron Mountai
Slide 20: Acquisition Case Study – Nashville, TN
▪ In September 2016, acquired a distribution facility in Lebanon, TN (Nashville MSA) net leased to Famous Footwear. G uaranteed by Caleres , Inc (NYSE: CAL) ▪ Global footwear retailer and wholesaler with annual sales of $2.6 billion. This mission critical facility provides distribution to over 700 r
Slide 21: Disposition Case Study – Philadelphia, PA
▪ In March 2005, acquired a manufacturing facility in Philadelphia, PA leased to Sweet Ovations for $9.68 million ▪ 13 miles north of downtown Philadelphia ▪ The b uilding is 166,000 SF on 13.4 acres of land ▪ The absolute net lease had annual rent increases of 2.5% ▪ Financed the asset in May 2005
Slide 22: Acquisition Case Study – Baltimore, MD
▪ In June 2014, acquired via short term sale leaseback a distribution warehouse in Joppa, MD through a consolidated JV ▪ Simultaneously net leased to Noxell Corp, a subsidiary of Proctor & Gamble (NYSE: PG), through December 31, 2015 ▪ 19 miles north of Baltimore, MD - approximately 1.5 miles from a
Slide 23: Summary – Why OLP?
▪ Fundamentals - focused r eal e state company ▪ Disciplined track record through economic cycles ▪ Active net lease strategy ▪ Experienced management team ▪ Alignment of interests through significant insider ownership 23 Summary – Why OLP?
Slide 24: Appendix
ON E LIBERTY PROPERTIES, INC. APPENDIX 24
Slide 25: Acquisition Case Study – Ground Lease
Purchase Price $ 9,300,000 Year 1 Base Rent $ 1, 102,319 Return on Equity 11.85 % ▪ In March 2015, acquired 49 acres of land located in Lakemoor, IL (Chicago MSA) which was simultaneously ground leased to an experienced multi - family operator ▪ The land is improved by a class A 496 unit garden styl
Slide 26: Acquisition Case Study – Industrial
▪ In June 2016, acquired a distribution facility in El Paso, TX net leased to Toro Co (NYSE: TTC) ▪ Toro is a global developer, manufacturer and distributor of lawn and landscape equipment ▪ Toro has a market cap of approximately $5.0 billion and is a BBB investment grade credit per Standard and Poo
Slide 27: Blend and Extend Case Study – Office Depot
▪ July 2015 – new financing aggregating $12.85 million with a 10 year term at an interest rate of 4.35% secured by the properties with extended leases ▪ In September 2008, acquired 8 sites from Office Depot in a sale leaseback transaction ▪ The 10 year original leases were absolute net ▪ Sold three
Slide 28: Releasing Case Study – Office Depot
▪ Dark and paying Office Depot site located in Kennesaw, GA (Atlanta MSA) ▪ The b uilding 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 into a new 10 year lease with Bed B
Slide 29: Top Tenants' Profiles
TOP TENANTS’ PROFILES 29
Slide 30: Havertys Furniture – Tenant Profile
▪ Tenant: Haverty Furniture Companies, Inc. (NYSE:HVT ) ▪ Represents 6.7% of contractual rental income ▪ Full service home furnishings retailer founded in 1885 ▪ Public company since 1929 ▪ 122 showrooms in 16 states in the Southern and Midwestern regions ▪ Havertys has weathered many economic cycle
Slide 31: LA Fitness – Tenant Profile
▪ Tenant: LA Fitness International LLC ▪ Represents 4.5% of contractual rental income ▪ LA Fitness currently operates over 800 clubs in 21 states ▪ The company was founded in 1984 and is headquartered in Irvine, CA ▪ 3 properties representing 141,663 SF % of Contractual Rental Income – Secaucus , NJ
Slide 32: Northern Tool & Equipment – Tenant Profile
▪ Tenant : Northern Tool & Equipment ▪ Represents 4.0% of contractual rental income ▪ Distributor and retailer of industrial grade and personal use power tools and equipment. 90 retail stores in the U.S ▪ Acquired The Sportsman’s Guide and The Golf Warehouse to sell outdoor sports and leisure goods
Slide 33: Regal Entertainment Group – Tenant Profile
Source : Tenant’s website Office Depot – Cary, NC 33 Regal Entertainment Group – Tenant Profile ▪ Tenant: Regal Entertainment Group (NYSE: RGC) ▪ Represents 3.7% of contractual rental income ▪ Currently the largest American theater chain. The second largest chain AMC has a pending agreement to buy C
Slide 34: Ferguson Enterprises – Tenant Profile
▪ Tenant : Ferguson Enterprises, Inc. ▪ Represents 3.6% of contractual rental income ▪ One of the largest United States distributors of plumbing supplies, pipes, valves and fittings ▪ Ferguson is a large and profitable United States operating subsidiary of Wolseley plc (LON:WOS), an international in
Slide 35: GAAP Reconciliation to FFO & AFFO
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 Six Months Ended June 30 For the Years Ended December 31, 2016 2015 2014 2013 2012 GAAP n et income attributable to One Liberty Properties, Inc.
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