One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (March 2016)
37 slides from One Liberty Properties's investor presentation, March 2016
Slide 1: Investor Presentation March 2016
INVESTOR PRESENTATION MARCH 2016 onelibertyproperties.com
Slide 2: Table of Contents
Table of Contents DESCRIPTION: PAGE # DESCRIPTION: PAGE # Safe Harbor disclosure 3 Case Studies: OLP – Investment Rationale 4 Acquisition – Chicago, IL 18 Financial & Portfolio Summary 5 Acquisition – Louisville, KY 19 Stockholder Return 6 Acquisition – Joppa, MD 20 Growth in Operations 7 Acquisitio
Slide 3: Safe Harbor
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 differ ma
Slide 4: OLP – Investment Rationale
OLP – Investment Rationale Stockholder return & dividend Strategy - focus on real estate fundamentals Disciplined track record through economic cycles Active portfolio management Experienced management team Significant insider ownership 4
Slide 5: Financial & Portfolio Summary
Financial & Portfolio Summary Number of Properties : (1) 112 Square Footage : (1) 8.2 million Current Occupancy : (1) 98% + Market Cap : (2) $380.8 million Shares Outstanding : (2) 17.0 million Insider Ownership : (3) 23.4% Current Annualized Dividend: $1.64 Dividend Yield : (4) 7.3% (1) Information
Slide 6: Stockholder Return
Stockholder Return 10–Year Annualized Total Return (1) 9.4% 10.0% 9.0% 7.4% 7.3% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% OLP NAREIT Equity Index S&P 500 (1) As of December 31, 2015 6
Slide 7: Growth in Operations
Growth in Operations Historical FFO Per Share (1) $1.97 $2.00 Historical AFFO Per Share (1) $1.90 $2.00 $1.92 $1.80 $1.75 $1.90 $1.66 $1.84 $1.70 $1.59 $1.80 $1.60 $1.75 $1.50 2012 2013 2014 2015 $1.70 $1.65 $1.60 2012 2013 2014 2015 (1) A reconciliation of net income per diluted share, as determine
Slide 8: Dividend Growth
Dividend Growth $1.60 $1.58 80% $1.55 FFO Payout $1.50 Ratio (1) $1.50 86% FFO Payout Ratio (1) $1.42 $1.45 86% $1.40 FFO Payout Ratio (1) $1.34 $1.35 $1.32 84% FFO Payout 82% Ratio (1) FFO Payout $1.30 Ratio (1) $1.25 (1) Impacting the changes in the FFO payout ratio are distributions of capital ga
Slide 9: Steady Revenue Growth
Steady Revenue Growth $70 Total Revenues (1) $65.7 $65 $60.5 $60 ($ in millions) $55 $51.0 $50 $43.8 $45 $40.9 $40 $36.7 $35 $30 2010 2011 2012 2013 2014 2015 (1) Includes (a) all tenant related revenues, including straight-line rent accruals and amortization of intangibles and (b) lease termination
Slide 10: Stable Occupancy
Stable Occupancy (1) 100.0% 99.6% 100.0% Low Point 99.0% 98.9% 98.8% 98.6% 98.3% 98.0% 98.1% 90.0% 80.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 (1) As at December 31 for each of 2007 through 2015 and includes our unconsolidated joint ventures 10
Slide 11: 112 Properties in 30 States
112 Properties in 30 States Highest State Concentration by 2016 Contractual Rental Income (1) Number of 2016 Contractual % of 2016 Contractual State Properties Rental Income Rental Income Texas 12 $ 6,485,624 10.8% New York 9 5,452,729 9.1 Georgia 13 4,484,162 7.5 South Carolina 4 4,272,232 7.1 Penn
Slide 12: Diversified Portfolio
Diversified Portfolio % of 2016 Number of 2016 Contractual Contractual Type of Property Properties Rental Income (1) Rental Income Retail – General 39 $ 18,371,426 30.6% – Furniture 14 5,821,981 9.7 – Restaurant 19 3,933,599 6.6 – Office Supply 7 2,430,407 4.1 – Supermarket 2 2,402,194 4.0 Industria
Slide 13: Diversified Tenant Base – Top Tenants
Diversified Tenant Base Top Tenants 2016 % of 2016 Number of Contractual Contractual Tenant Properties Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,568,723 7.6% LA Fitness International, LLC 3 3,075,583 5.1 Northern Tool & Equipment 1 2,737,608 4.6 Ferguson Enterp
Slide 14: Lease Expirations
Lease Expirations % of 2016 Contractual 2016 Contractual Rental Income Approximate Square % of Square Feet Year Ending Number of Rental Income Under Represented by Feet Subject To Represented by December 31, Expiring Leases Expiring Leases Expiring Leases Expiring Leases Expiring Leases 2016 16 $ 1,
Slide 15: Acquisition Track Record
Acquisition Track Record Acquired $95.2 million of properties in 2015 (1) Two hard contracts expected to close in Q2 2016 for a total purchase price of approximately $31 million with an estimated average GAAP yield of 7.8% (2) Current pipeline of diverse opportunities in excess of $250 million
Slide 16: Recent Acquisitions
Recent Acquisitions Purchase GAAP Financing Info Date Lease Price Yield (at time of purchase) Acquired Property Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) (1) (in ‘000s) 09/25/15 Industrial Fed Ex and Chep USA St. Louis MO 08/31/22-10/31/24 $19,050 7.5% $12,383 mortgage 07/28/15 Industri
Slide 17: Recent Mortgages
Recent Mortgages Mortgage Amount Mortgage Interest Date Financed Property Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 03/11/16 (1) Supermarket Whole Foods West Hartford CT $18,000 04/01/28 3.38% 01/21/16 Industrial Fed Ex Tampa FL $ 2,500 12/05/25 3.57% 01/14/16 (1) Retail Avalon Carpe
Slide 18: Acquisition Case Study – Ground Lease
Acquisition Case Study – Ground Lease • In March 2015, acquired 49 acres of land located in Lakemoor, IL (Chicago MSA) which Purchase Price $ 9,300,000 was simultaneously ground leased to an experienced multi-family operator Year 1 Base Rent $ 1,102,319 • The land is improved by a class A 496 unit R
Slide 19: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial In March 2015, acquired a distribution facility in Louisville, KY, net leased to Interline Brands, Purchase Price $4,400,000 Inc. which was acquired by The Home Depot, Mortgage (1) (2,640,000) Inc. (NYSE: HD) $1,760,000 Net Equity Invested Interline Brands is
Slide 20: Acquisition Case Study – Short Term Lease
Acquisition Case Study – Short Term Lease In June 2014, acquired a distribution warehouse Purchase Price $11,650,000 in Joppa, MD through a consolidated JV Year 1 Base Rent for Prior Tenant $905,485 Simultaneously net leased to Noxell Corp, a Year 1 Return on Equity 7.77% subsidiary of Proctor &
Slide 21: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial In November 2014, acquired a distribution facility in New Hope, MN (Minneapolis MSA) Purchase Price $7,200,000 net leased to Progressive Converting, Inc. Mortgage (1) ($4,450,000) Net Equity Invested $2,750,000 Progressive Converting is the largest paper conve
Slide 22: Acquisition/Disposition Case Study
Acquisition/Disposition Case Study In October 2011, acquired a vacant Home Purchase Price $ 5,800,000 Depot in Cherry Hill, NJ through a consolidated Improvements $ 4,746,000 JV Sale Price $16,300,000 6 miles east of downtown Philadelphia Internal Rate of Return to OLP 22.3% The building is 11
Slide 23: Blend and Extend Case Study - Office Depot
Blend and Extend Case Study - Office Depot • In September 2008, acquired 8 sites from July 2015 – new financing aggregating $12.85 Office Depot in a sale leaseback million with a 10 year term at an interest rate of transaction 4.35% secured by the properties with extended leases • The 10 year orig
Slide 24: Releasing Case Study – Office Depot
Releasing Case Study – Office Depot Dark and paying Office Depot site located in Kennesaw, GA (Atlanta MSA) The 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
Slide 25: Balance Sheet Information
Balance Sheet Information Gross Assets : (1) $735.5 million Total Debt/Gross Assets : (2) 50.5% Fixed Rate Debt : (3) 95.1% Debt Service Coverage Ratio : (4) 2.3 to 1.0 Fixed Charge Coverage Ratio : (4) 2.1 to 1.0 FFO Payout : (5) 80.2% • Liquidity available to acquire in excess of an estimated $150
Slide 26: Laddered Mortgage Debt Maturities
Laddered Mortgage Debt Maturities (1) Weighted average interest rate of 4.6% on fixed rate debt There is approximately $8.8 million ($0.52 per share) of scheduled amortization of mortgages for the 12 months ending December 31, 2016 Balloon Payments Due For the Twelve Months Ending December 31 $1
Slide 27: Experienced Management Team
Experienced Management Team 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 Patrick J. Callan, Jr. CalPERS that controlled 100 shopping centers (13 million square feet) whi
Slide 28: Top Tenants’ Profiles
TOP TENANTS’ PROFILES 28
Slide 29: Havertys Furniture – Tenant Profile
Havertys Furniture – Tenant Profile Tenant: Haverty Furniture Companies, Inc. 11 properties aggregating 611,930 SF (NYSE:HVT) – Duluth (Atlanta), GA Represents 7.6% of 2016 contractual rental income – Fayetteville (Atlanta), GA Full service home furnishings retailer founded in 1885 – Wichita
Slide 30: Representative Havertys – Richmond, VA
Representative Havertys – Richmond, VA Building: 38,788 SF on 2.16 acres. Built in 1979 and renovated and expanded in 2001. Havertys has operated at this location for more than 15 years. 3 Mile Demographics (Source: Sites USA, 2015) - Population: 56,212 Average HH Income: $100,449 Location: 11
Slide 31: LA Fitness – Tenant Profile
LA Fitness – Tenant Profile Tenant: LA Fitness International LLC Representative LA Fitness – Secaucus, NJ Represents 5.1% of 2016 contractual rental Building: 44,863 SF on 1.23 acres income 3 Mile Demographics (Source: Sites USA 2015) LA Fitness currently operates over 500 clubs in – Popul
Slide 32: Northern Tool & Equipment – Tenant Profile
Northern Tool & Equipment – Tenant Profile Tenant: Northern Tool & Equipment Location: 1850 Banks Road, Fort Mill, SC Represents 4.6% of 2016 contractual rental income Building: 701,595 SF on 40 acres A large United States distributor of industrial grade 3 Mile Demographics (Source: Site
Slide 33: Ferguson Enterprises – Tenant Profile
Ferguson Enterprises– Tenant Profile Tenant: Ferguson Enterprises, Inc. Location: 4501 Hollins Ferry Rd, Baltimore MD Represents 4.1% of 2016 contractual rental income 5 miles south of downtown Baltimore Building: 367,000 SF on 28 acres One of the largest United States distributors of pl
Slide 34: Office Depot – Tenant Profile
Office Depot – Tenant Profile Tenant: Office Depot, Inc. (NYSE: ODP) 7 properties representing 174,431 SF Represents 4.1% of 2016 contractual rental income % of 2016 Contractual Rental Income Leading global provider of office products and – Chicago, IL: 0.9% services – Cary (Raleigh-Durham),
Slide 35: Representative Office Depot – Chicago, IL
Representative Office Depot – Chicago, IL Building: 23,939 SF on 2.62 acres. Built in 1994. Office Depot has operated at this location for more than 22 years. 3 Mile Demographics (Source: Sites USA, 2015) - Population: 548,147 Average HH Income: $100,223 Location: 2928 N. Ashland Ave, Chicago,
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: For the Years Ended December 31, 2015 2014 2013 2012 2011 GAAP net income attributable to One Liberty Properties, Inc. $ 1.22 $ 1.37
Slide 37: Summary – Why OLP?
Summary – Why OLP? Current dividend yield of 7% ($1.64 annualized dividend) Since 2011 dividend has grown consistently Average 10 year annualized total return of 9% Occupancy rate through various cycles (since 2008) never below 98% Insiders own 23% of OLP 37
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