One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (November 2019)
38 slides from One Liberty Properties's investor presentation, Nov 22, 2019
Slide 1: Investor Presentation December 2019
◆ 1 INVESTOR PRESENTATION DECEMBER 2019 onelibertyproperties.com
Slide 2: Table of Contents
◆ 2 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 in Operations 12
Slide 3: Safe Harbor
◆ 3 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 material
Slide 4: Company Overview
◆ 4 Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy - emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership COMPANY OVERVIEW
Slide 5: Experienced Management Team
◆ 5 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 s
Slide 6: Attractive Portfolio Fundamentals
◆ 6 Total Square Footage 10.5 M Number of Properties 126 Current Occupancy 96.5% Contractual Rental income (2) $72.7 M Lease Term Remaining 6.7 Years Transcendia – Greenville, SC The Men’s Wearhouse – Bakersfield, CA (1) Information presented as of September 30, 2019, including four properties owned
Slide 7: Portfolio Detail
◆ 7 (1) Though we have three theaters, one is part of a multi - tenant shopping center property in Manahawkin, NJ and is therefore exclude d from this column (2) The contractual rental income associated with the theater in Manahawkin, NJ is included (3) Other is comprised of ground leases of apartme
Slide 8: Diversified Portfolio
◆ 8 Geographically diverse footprint Own 126 properties in 31 states Strong markets drive value DIVERSIFIED PORTFOLIO Highest State Concentration by Contractual Rental Income State Number of Properties Contractual Rental Income % Contractual Rental Income New York 8 $6,239,040 8.6% South Carol
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 $ 4,842,846 6.7% LA Fitness International, LLC 3 3,181,671 4.4 Northern Tool & Equipment 1 2,894,809 4.0 L3 Technologies, Inc. (NYSE:
Slide 10: Financial Summary
◆ 10 Market Cap (1) $ 540.4M Shares Outstanding (1) 19.9M Insider Ownership (2) 21.4% Current Annualized Dividend $1.80 Dividend Yield (2) 6.6% Applied Control Equipment – Denver, CO Campania International / U.S. Tape – Philadelphia, PA (1) Market cap is calculated using the shares outstanding and t
Slide 11: Targeting Long Term Total Return
◆ 11 (1) Performance period ended September 30, 2019 Consistent driver of long - term stockholder value TARGETING LONG TERM TOTAL RETURN 20.1% 13.2% 13.0% 0% 5% 10% 15% 20% 25% OLP NAREIT Equity Index S&P 500 10 - YEAR ANNUALIZED TOTAL STOCKHOLDER RETURN (1)
Slide 12: Growth in Operations
◆ 12 GROWTH IN OPERATIONS (1) $1.97 (3) $1.90 $1.94 $2.02 (3) $1.40 $1.60 $1.80 $2.00 2015 2016 2017 2018 Historical FFO Per Share (2) $1.92 $1.99 $2.09 $2.13 $1.60 $1.80 $2.00 $2.20 2015 2016 2017 2018 Historical AFFO Per Share (2) FFO Payout (4) 2015 80% 2016 87% 2017 90% 2018 89% AFFO Payout (4)
Slide 13: Growth in Operations: Dividend Per Share
◆ 13 GROWTH IN OPERATIONS (1) $1.58 $1.66 $1.74 $1.80 $1.00 $1.20 $1.40 $1.60 $1.80 2015 2016 2017 2018 DIVIDEND PER SHARE (1) For the years ended December 31 Current Annualized Dividend: $1.80
Slide 14: Growth Oriented Balance Sheet
◆ 14 GROWTH ORIENTED BALANCE SHEET AS AT SEPTEMBER 30, 2019 (1) Gross assets represent total assets plus accumulated depreciation of $133.5 million (2) Total debt includes our share ( i.e. $11.7 million) of debt of our unconsolidated joint venture (3) Calculated in accordance with the terms of our c
Slide 15: Mortgage Debt Maturities
◆ 15 MORTGAGE DEBT MATURITIES AS AT SEPTEMBER 30, 2019 (1) $2.6 (1) $2.1 $23.3 $36.6 $47.3 $200.1 $0 $40 $80 $120 $160 $200 2020 2021 2022 2023 2024 2025 & Beyond ($ in millions) BALLOON PAYMENTS DUE FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, Weighted average interest rate of 4.25% on fixed rate d
Slide 16: Lease Maturity Profile
◆ 16 LEASE MATURITY PROFILE 12 Months Ending September 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 2020 7 $ 575,835 0.8% 57,702 2021 20 2,670,795 3.7 39
Slide 17: Stable Occupancy
◆ 17 STABLE OCCUPANCY (1)(2) 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 97.3% 99.3% 97.8% 80.0% 90.0% 100.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) As at December 31 (2) Based on square footage, including 100% our unconsolidated joint ventures At September 30, 2019: Occupancy – 96.5%
Slide 18: Strong Rental Income Growth
◆ 18 STRONG RENTAL INCOME GROWTH (1)(2)(3) $43.8 $51.0 $59.2 $62.8 $70.6 $75.9 $78.8 $35 $45 $55 $65 $75 $85 2012 2013 2014 2015 2016 2017 2018 ($ in millions) As of the Nine Months Ended September 30, 2019: Rental Income, net - $62.3M (1) As at December 31 (2) Includes straight - line rent accruals
Slide 19: Acquisition Track Record
◆ 19 ACQUISITION TRACK RECORD $44.6 $107.5 $56.8 $95.2 (1) $118.6 $43.2 $79.5 $0 $20 $40 $60 $80 $100 $120 2012 2013 2014 2015 2016 2017 2018 ($ in millions) ACQUISITIONS PER YEAR Current acquisitions of $49.3 million through November 20, 2019 Current pipeline of diverse opportunities in excess
Slide 20: Recent Acquisitions
◆ 20 RECENT ACQUISITIONS Date Acquired Property Type Tenant (or d/b/a) MSA State Current Lease Expiration Purchase Price (in ‘000s) Yield (1) Financing at purchase (in ‘000s) 10/23/19 Industrial The Door Mill Phoenix AZ 06/30/24 $ 3,000 7.3% All cash 10/03/19 Industrial Cosentino North America Savan
Slide 21: Recent Dispositions
◆ 21 RECENT DISPOSITIONS Date Sold Date Acquired Property Type Tenant (or d/b/a) MSA State Gross Sales Price (in ‘000s) Net Gain (Loss) (in ‘000s) 10/21/19 06/30/98 Retail Aaron’s Inc. Houston TX $ 1,675 $ 218 08/29/19 08/02/16 Other The Briarbrook Apartments Wheaton IL $12,035 $1,499 08/23/19 05/19
Slide 22: Recent Mortgages
◆ 22 RECENT MORTGAGES Date Financed Property Type Tenant (or d/b/a) MSA State Amount (in ‘000s) Mortgage Maturity Interest Rate 10/29/19 Industrial Nissan North America, Inc. Troup County GA $ 3,200 12/01/28 4.00% 10/11/19 (1) Industrial Mitsubishi Electric Power Products New York NY $ 2,599 09/10/2
Slide 23: Acquisition Case Study: Nashville, TN
◆ 23 Zwanenberg Food & Metro Carpet – Nashville, TN ACQUISITION CASE STUDY – INDUSTRIAL ZWANENBERG FOOD & METRO CARPET (1) Mortgage with an interest rate of 3.95% closed in July 2019 In May 2019, acquired a two tenant industrial warehouse facility in Nashville, TN. The 99,500 SF property is net
Slide 24: Acquisition Case Study: St. Louis, MO
◆ 24 Dufresne Spencer Group – St. Louis, MO ACQUISITION CASE STUDY – INDUSTRIAL DUFRESNE SPENCER GROUP (1) Mortgage with an interest rate of 4.50% closed in March 2019 In December 2018, acquired a single tenant industrial warehouse facility in St. Louis, MO . The 119,680 SF property is net lease
Slide 25: Acquisition Case Study: Moorestown, NJ
◆ 25 21 st Century / Novacart – Moorestown, NJ ACQUISITION CASE STUDY – INDUSTRIAL 21 st CENTURY & NOVACART (1) Mortgage with an interest rate of 4.64% closed in February 2019 In November 2018, acquired a two tenant industrial warehouse facility in Moorestown, NJ . The 219,881 SF property is net
Slide 26: Disposition Case Study: South Milwaukee, WI
◆ 26 Caterpillar Mining – South Milwaukee, WI DISPOSITION CASE STUDY – INDUSTRIAL In August 2004, acquired a 50% interest in a net leased manufacturing campus in South Milwaukee, WI leased to Bucyrus International, Inc. for $6.25 million. » 10 miles south of downtown Milwaukee » The 27.5 acre camp
Slide 27: Blend & Extend Case Study: L3 Technologies
◆ 27 L3 Technologies, Inc. – Hauppauge, NY BLEND & EXTEND CASE STUDY – L3 TECHNOLOGIES Loan Refinance Terms: Mortgage Amount: $26,870,000 Interest Rate: 4.35% Loan Term: 15 years Amortization: 20 Years In December 2000, acquired a 149,870 SF flex warehouse located in Hauppauge, NY for $13.65 milli
Slide 28: Summary - Why OLP?
◆ 28 SUMMARY - WHY OLP? Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy - emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership
Slide 29: Appendix
ONE LIBERTY PROPERTIES, INC. APPENDIX
Slide 30: Top Tenants' Profiles
ONE LIBERTY PROPERTIES, INC. QS TOP TENANTS’ PROFILES
Slide 31: Havertys Furniture - Tenant Profile
◆ 31 Haverty – Cedar Park, TX (Austin MSA) 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 » 120 showrooms in 16 states in the Southern and Midw
Slide 32: LA Fitness - Tenant Profile
◆ 32 LA Fitness – Secaucus, NJ LA FITNESS – TENANT PROFILE Tenant: LA Fitness International LLC (Source: Tenant’s website) » Currently operates over 700 clubs in 21 states » Founded in 1984 and is headquartered in Irvine, CA 3 properties represents 4.4% of contractual rental income and 141,663 S
Slide 33: Northern Tool & Equipment - Tenant Profile
◆ 33 Northern Tool & Equipment – Fort Mill, SC 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 Sport
Slide 34: L3 Technologies - Tenant Profile
◆ 34 L3 Technologies, Inc. – Hauppauge, NY L3 TECHNOLOGIES – TENANT PROFILE Tenant: L3 Technologies, Inc. (Source: Tenant’s website) » US based defense technology company » On June 29, 2019, L3 Technologies and Harris Corporation merged to form L3 Harris Technologies - the 6 th largest US defense
Slide 35: Regal Entertainment Group - Tenant Profile
◆ 35 Regal Cinemas (d/b/a United Artists) – Indianapolis, IN REGAL ENTERTAINMENT GROUP – TENANT PROFILE Tenant: Regal Entertainment Group (Source: Tenant’s website) » On February 27, 2018 Cineworld (LSE: CINE) acquired Regal Entertainment Group for $3.6 billion, making it the second largest global
Slide 36: GAAP Reconciliation
ONE LIBERTY PROPERTIES, INC. QS GAAP RECONCILIATION
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 9 Months Ended September 30, Years Ended December 31, 2019 2018 2017 2016 2015 GAAP n et income attributable to One Liberty Prop
Slide 38: Non-GAAP Financial Measures
◆ 38 NON - GAAP FINANCIAL MEASURES One Liberty computes 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 accor
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