One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (September 2017)

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

  1. Slide 1: Investor Presentation September 2017

    INVESTOR PRESENTATION SEPTEMBER 2017 onelibertyproperties.com

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS DESCRIPTION PAGE DESCRIPTION PAGE Table of Contents 2 Case Studies: Safe Harbor Disclosure 3 Acquisition – Nashville, TN 22 Company Overview 4 Disposition – Greenwood Village, CO 23 Experienced Management Team 5 Acquisition – Baltimore, MD 24 Attractive Portfolio Fundamentals 6 Sum

  3. 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 m

  4. Slide 4: Company Overview

    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 4

  5. Slide 5: 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

  6. Slide 6: Attractive Portfolio Fundamentals

    ATTRACTIVE PORTFOLIO FUNDAMENTALS (1) Total Square Footage 10.6 M Number of Properties 121 Current Occupancy 97.2% Northern Tool – Fort Mill, SC (Charlotte, MSA) Contractual Rental income(2) $69.5 M Lease Term Remaining 8.2 Years (1) Information presented as of June 30 ,2017, including five properti

  7. Slide 7: Portfolio Detail

    PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income(1) 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 3,382,131

  8. Slide 8: Diversified Portfolio

    DIVERSIFIED PORTFOLIO Highest State Concentration by Contractual Rental Income Number of Contractual % Contractual  Geographically diverse footprint State Properties Rental Income Rental Income Texas 12 $8,672,815 12.5% South Carolina 6 5,643,894 8.1  Own 121 properties in 31 states New York 8 5,0

  9. Slide 9: Diversified Tenant Base

    DIVERSIFIED TENANT BASE % of Number of Contractual Contractual Top Tenants Locations Rental Income 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 (NYSE:

  10. Slide 10: Financial Summary

    FINANCIAL SUMMARY Market Cap(1) $445.4 M Shares Outstanding(1) 18.6 M Insider Ownership(2) 23.3% FedEx Ground & Chep USA – St. Louis, MO Current Annualized Dividend $1.72 Dividend Yield(3) 7.2% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $23.91 JCI/Ya

  11. Slide 11: Targeting Long Term Total Return

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

  12. Slide 12: Growth in Operations

    GROWTH IN OPERATIONS Historical FFO Per Share(1) $2.00 $1.97(2) $1.90 $1.90 Dividend Growth Per Share $1.70 $1.80 $1.75(2) $1.66 $1.70 $1.66 87% FFO $1.60 Payout $1.60 $1.58 Ratio(3) $1.50 80% FFO 2013 2014 2015 2016 Payout $1.50 Ratio(3) $1.50 Historical AFFO Per Share(1) 86% $2.00 $1.99 FFO Payout

  13. Slide 13: Growth Oriented Balance Sheet

    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%  Liquidity available to acquire in excess of an estimated $150 milli

  14. Slide 14: Laddered Mortgage Debt Maturities

    LADDERED MORTGAGE DEBT MATURITIES AS AT JUNE 30, 2017(1)  Weighted average interest rate of 4.3% on fixed rate debt  There is approximately $10.7 million ($0.58 per share) of scheduled amortization of mortgages for the twelve months ending June 30, 2018 $300 Balloon Payments Due For the Twelve Mon

  15. Slide 15: Lease Maturity Profile

    LEASE MATURITY PROFILE % of Contractual Number of Contractual Rental Income Approximate Square 12 Months Ending Expiring Rental Income Under Represented by Feet Subject to Expiring June 30, Leases Expiring Leases Expiring Leases Leases 2018 17 $ 1,491,638 2.1% 233,232 2019 34 4,650,491 6.7 583,681 2

  16. Slide 16: Consistent Operational Performance: Stable Occupancy

    CONSISTENT OPERATIONAL PERFORMANCE Stable Occupancy(1)(2) At June 30, 2017: Occupancy 97.2% 100.0% 100.0% 99.0% 99.6% 98.9% 98.8% 98.6% 98.3% 98.0% 98.1% 97.3% 90.0% 80.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (1) As at December 31 (2) Based on square footage, including our unconsolidate

  17. Slide 17: Consistent Operational Performance: Rental Income Growth

    CONSISTENT OPERATIONAL PERFORMANCE Strong Rental Income Growth(1)(2) For the 6 Months Ended June 30, 2017(2): Rental Income, Net $36.9 $65 $64.2 $60 $59.0 $56.6 $55 ($ in millions) $50 $49.3 $45 $44.4 $42.8 $41.4 $40 $35 2010 2011 2012 2013 2014 2015 2016 (1) As at December 31 (2) Includes straight-

  18. Slide 18: Acquisition Track Record

    ACQUISITION TRACK RECORD  Acquired $35.2 million of properties through June 30, 2017  Current pipeline of diverse opportunities in excess of $225.0 million Acquisitions per Year $120 $118.6 $107.5 $100 $95.2(1) $80 $72.3 ($ in millions) $60 $56.8 $44.6 $40 $29.6(1) $20 $0 2010 2011 2012 2013 2014

  19. Slide 19: Recent Acquisitions

    RECENT ACQUISTIONS Current Purchase Financing Info Date Property Lease Price (at time of purchase) Acquired Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) Yield(1) (in ‘000s) Power Distributors/Keystone 2/28/30- 06/20/17 Industrial Des Moines IA $14,700 7.4% All cash Automotive 10/31/23 06/0

  20. Slide 20: Recent Dispositions

    RECENT DISPOSITIONS Gross Sales Date Property Price Net Gain Acquired Date Sold Type Tenant (or d/b/a) MSA State (in ‘000s) (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 12/22/2016

  21. Slide 21: Recent Mortgages

    RECENT MORTGAGES Date Property Amount Mortgage Interest Financed Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity 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% 05/

  22. Slide 22: Acquisition Case Study - Industrial

    ACQUISITION CASE STUDY - INDUSTRIAL  In September 2016, acquired a distribution facility in Purchase Price $32,734,000 Lebanon, TN (Nashville MSA) net leased to Famous Footwear and guaranteed by Caleres, Inc (NYSE: CAL) Mortgage(1) (21,287,500) » Global footwear retailer and wholesaler with annual

  23. Slide 23: Disposition Case Study

    DISPOSITION CASE STUDY  In April 1996, acquired a net leased retail Purchase Price $ 4,040,000 property in Greenwood Village (Denver Sales Price 9,500,000 MSA), CO leased to Gart Bros. Sporting Goods Company for $4.0 million Internal Rate of Return to OLP 19.57% » 11 miles southeast of downtown Den

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

    ACQUISITION CASE STUDY – SHORT TERM LEASE  In June 2014, acquired via a short term sale- Purchase Price $11,650,000 Year 1 Base Rent – Noxell Corp 905,485 leaseback, a distribution warehouse in Joppa, MD through a consolidated JV Year 1 Return on Equity 7.77% » 19 miles north of Baltimore, MD – Tot

  25. Slide 25: Summary – Why OLP?

    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 25

  26. Slide 26: Appendix

    APPENDIX

  27. Slide 27: Acquisition Case Study – Ground Lease

    ACQUISITION CASE STUDY – GROUND LEASE  In August 2016, acquired 8 acres of land in Purchase Price $13,896,000 Beachwood, OH, a wealthy suburb of Cleveland Year 1 Base Rent 1,450,633 » Simultaneously ground leased to an experience multi-family operator Return on Equity 10.44% » Land is improved by a

  28. Slide 28: Acquisition Case Study – Industrial

    ACQUISITION CASE STUDY – INDUSTRIAL  In June 2016, acquired a distribution facility in Purchase Price $23,695,000 El Paso, TX, net leased to Toro Co (NYSE: TTC) Mortgage(1) (15,000,000) » Toro is global developer, manufacturer and Net Equity Invested $ 8,695,000 distributor of lawn and landscape eq

  29. Slide 29: Blend & Extend Case Study – Office Depot

    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 2025 at

  30. Slide 30: Releasing Case Study – Office Depot

    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 into

  31. Slide 31: Top Tenants' Profiles

    © ONE LIBERTY PROPERTIES, INC. TOP TENANTS’ PROFLES

  32. Slide 32: Havertys Furniture – Tenant Profile

    HAVERTYS FURNITURE – TENANT PROFILE  Tenant: Haverty Furniture Companies, Inc. (NYSE:  11 properties aggregating 611,930 SF HVT) (Source: Tenant’s website) – Duluth (Atlanta), GA » Full service home furnishing retailer founded in 1885 – Fayetteville (Atlanta), GA » Public company since 1929 – Wich

  33. Slide 33: LA Fitness – Tenant Profile

    LA FITNESS – TENANT PROFILE  Tenant: LA Fitness International LLC (Source: Tenant’s website)  Representative: LA Fitness – Secaucus, NJ » Currently operates over 800 clubs in 21 states » Building: 44,863 SF on 1.23 acres of land » Founded in 1984 and is headquartered in Irvine, » 3 Mile Demographi

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

    NORTHERN TOOL & EQUIPMENT – TENANT PROFILE  Tenant: Northern Tool & Equipment (Source: Tenant’s website)  Location: 1850 Banks Road, Fort Mill, SC » Distributor and retailer of industrial grade and » Building: 701,595 SF on 40.0 acres of land personal use power tools and equipment » 3 Mile Demogra

  35. Slide 35: Regal Entertainment Group – Tenant Profile

    REGAL ENTERTAINMENT GROUP – TENANT PROFILE  Tenant: Regal Entertainment Group (NYSE:  3 locations represent 3.6% of contractual rental RGC)(Source: Tenant’s website) income and 150,250 SF » Brands include: Regal Cinemas, Edward Theaters % of Contractual Rental Income and United Artists Theaters –

  36. Slide 36: Office Depot – Tenant Profile

    OFFICE DEPOT – TENANT PROFILE  Tenant: Office Depot, Inc. (NYSE: ODP)  7 properties represent 3.5% of contractual rental (Source: Tenant’s website) income and 174,431 SF » Leading global provider of office products and % of Contractual Rental Income services – Chicago, IL: 0.8% » Operates more tha

  37. Slide 37: 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 Six Months Ended June 30, Years Ended December 31, 2017 2016 2015 2014 2013 GAAP net income attributable to One Liberty Properties, I

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