Trinity Place Holdings Inc. · OTC:TPHS
Trinity Place — Investor Presentation (April 2018)
40 slides from Trinity Place's investor presentation, Apr 25, 2018
Slide 1: Corporate Presentation April 2018
NYSE American: TPHS Corporate Presentation April 2018
Slide 2: Disclaimer: Forward Looking Statement
DISCLAIMER Trinity Place Holdings Inc. (NYSE American: TPHS) 2 Forward Looking Statement Certain statements in this presentation and that may be made in meetings contain forward - looking statements. All statements incl uded in this presentation, other than statements of historical fact, that addres
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS ► Stock trading at a discount with no upside assumed for growth strategy ► Executing multifamily strategy with control of 2 multi - family properties during the last 18 months ► 77 Greenwich development project progressing according to plan ► Strong market trends being capitali
Slide 4: A Unique Real Estate Opportunity
A UNIQUE REAL ESTATE OPPORTUNITY ► Approximately 600,000 square feet in active management and/or under development ► Expanding income - producing portfolio focused on select New York Metro neighborhoods which are positioned to outperform the broader market ► Team in place to seize unique opportunist
Slide 5: Accelerating Transformation
October 2013 ACCELERATING TRANSFORMATION Trinity Place Holdings Inc. (NYSE American: TPHS) 5 ► Closed $30M rights offering backstopped by MFP Investors and uplisted to NYSE American (@ $6.00/share) ► Emerged from bankruptcy with a significant portfolio of real estate and other legacy assets (@$2.49/
Slide 6: Pipeline: Focus on Asset Value Creation
► $500M + in pipeline assets focused on multi - family strategy ► Goal to significantly expand portfolio in the coming years in select Metro New York areas which are positioned for long term rent growth Pipeline FOCUS ON ASSET VALUE CREATION ► One - story neighborhood retail strip center comprised o
Slide 7: Multi-Family Acquisition Strategy
MULTI - FAMILY ACQUISITION STRATEGY
Slide 8: Multi-Family Acquisition Strategy
MULTI - FAMILY ACQUISITION STRATEGY Identification Of Opportunities In Multi - family Based On Current Trends And Economic Data aka “The Contrarian View” Focus on Key Longer Term Growth Neighborhoods in Metro NYC Risk Adjusted Returns Cash Flow Portfolio Fee & Promote Structures 8 Trinity Place Hold
Slide 9: Flight to Quality: The Contrarian View
FLIGHT TO QUALITY “THE CONTRARIAN VIEW” ► NYC has some of the oldest housing stock in the nation and 64.2% of NYC stock is rental units ► Current availability in Brooklyn neighborhoods of new multi - family amenitized apartments has led some to worry about an oversupply of new construction multifami
Slide 10: Demand – A Strong & Growing New York City
DEMAND – A STRONG & GROWING NEW YORK CITY Trinity Place Holdings Inc. (NYSE American: TPHS) 10 ► NYC metro population projected to grow by over 3% (~600K people) over next decade ► Over 630,000 jobs have been created in NYC since 2009; Largest expansion since WWII ► Record low unemployment rates - w
Slide 11: Supply – A Reduction of Deliveries
SUPPLY – A REDUCTION OF DELIVERIES ► Deliveries projected to decrease and be absorbed ► Building permits for new dwelling units were 16,269 in 2016 -- A 71% reduction from the 2015 peak and the first reduction since 2009 ► 6,100 condo & multifamily rental units were delivered in Brooklyn in 2017 ► T
Slide 12: Key Criteria
KEY CRITERIA ► Expansion Into Prime/Growth Neighborhoods In NYC ► Trinity Place Holdings Inc. is focused on high - quality, newly - delivered assets in prime neighborhoods of Brooklyn and Manhattan where it can buy at an attractive long - term basis ► Brooklyn – Williamsburg, Park Slope, Brooklyn He
Slide 13: Multi-Family Properties
MULTI - FAMILY PROPERTIES
Slide 14: The Berkley: Neighborhood and Property Details
► Neighborhood ► Williamsburg, Brooklyn – A bourgeoning center of residential, retail and hotel spurred by 2005 rezoning ► A mix of formerly industrial lofts and new waterfront towers, Williamsburg has become one of the most desirable neighborhoods to live, work and play in NYC ► As a result, Willia
Slide 15: The Berkley (223 N. 8th Street, Williamsburg, Brooklyn)
THE BERKLEY (223 N. 8TH STREET, WILLIAMSBURG, BROOKLYN) 15 Trinity Place Holdings Inc. (NYSE American: TPHS)
Slide 16: Gowanus/Park Slope (237 11th Street, Brooklyn)
GOWANUS/PARK SLOPE (237 11TH STREET, BROOKLYN) ► Neighborhood ► Fourth Avenue was rezoned for multifamily and serves as a gateway avenue to Brooklyn ► On border of Park Slope and Gowanus, this location captures the character of a more artsy industrial area and the more stately neighborhood near Broo
Slide 17: Gowanus/Park Slope (237 11th Street, Brooklyn)
GOWANUS/PARK SLOPE (237 11TH STREET, BROOKLYN) Trinity Place Holdings Inc. (NYSE American: TPHS) 17 237 11 th Street
Slide 18: Opportunistic Investment
OPPORTUNISTIC INVESTMENT
Slide 19: 77 Greenwich – A Transformation
77 GREENWICH – A TRANSFORMATION ► Former Syms retail site transformed into a mixed use tower with a boutique offering of luxury condominiums above a school and retail ► Adjacent historic property as well as air rights from adjacent property owner ► A well located development in burgeoning New Downto
Slide 20: 77 Greenwich – Design and Program
77 GREENWICH – DESIGN AND PROGRAM ► 500+ foot tall mixed use tower ► ± 300,000 GSF ► 90 luxury condominiums, all with water views (Hudson River and NY Harbor) ► ± 7,500 GSF retail ► ± 90,000 GSF elementary school developed on behalf of and to be purchased by the City of New York ► Restoration of a l
Slide 21: Greenwich Projected Timeline
77 GREENWICH PROJECTED TIMELINE (1) Trinity Place Holdings Inc. (NYSE American: TPHS) 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H21 2H22 1H23 2H23 1H24 2H24 Project Construction ► Substantial Completion of NYC elementary school ► NYC School Construction Authority to complete build - out 21
Slide 22: Greenwich Construction Progress
77 GREENWICH CONSTRUCTION PROGRESS Trinity Place Holdings Inc. (NYSE American: TPHS) 22
Slide 23: Repositioning Legacy Assets
REPOSITIONING LEGACY ASSETS
Slide 24: Paramus
PARAMUS ► Asset Highlights: ► Route 17 is one of the strongest retail corridors on the East Coast ► Currently leased to Restoration Hardware and LensCrafters on short - term licenses ► Land area of approximately 6.7 acres with visibility from Route 17 and the Garden State Parkway ► Entered into an o
Slide 25: West Palm Beach
WEST PALM BEACH ► Asset Highlights: ► One - story grocery store anchored neighborhood retail strip center comprised of approximately 112,000 square feet of rentable area ► At busy crossroads in West Palm Beach near the airport ► Redevelopment of center is complete and the team is actively leasing th
Slide 26: Other Assets
OTHER ASSETS ► Post bankruptcy, the new real estate holding company also retained valuable Intellectual Property assets ► The company has a website maintained by a third party which sells name brand discounted items under the Filene’s Basement moniker ► The company has been approached to sell, licen
Slide 27: $231M of Federal NOLs and $102M of State NOLs
$231M of Federal NOLs and $102M of State NOLs ► Trinity Place Holdings has approximately $231 million of federal net operating loss carryforwards (“NOLs”) at December 31, 2017 ► These NOLs will expire between 2029 and 2037 ► State NOL carry forwards of approximately $102 million predominantly in New
Slide 28: Financials
FINANCIALS
Slide 29: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ► Working Capital (at 12/31/17) ► Cash and cash equivalents: $15.3M ► $24M pro forma including reimbursement for prefunded school costs ► Restricted cash: $8.9M (pertains to Park Slope acquisition) ► Balance Sheet Strengthened To Execute on Strategy ► Closed $189.5M construc
Slide 30: Access to Diversified Capital Sources
ACCESS TO DIVERSIFIED CAPITAL SOURCES Trinity Place Holdings Inc. (NYSE American: TPHS) 30 2015 2016 2017 JV Equity 223 North 8th $14,243 Total JV Equity $14,243 Debt 77 Greenwich $40,000 $189,500 (1) West Palm Beach $9,100 Paramus - LOC 11,000 (2) 223 North 8th 42,500 (3) Total Debt $40,000 $51,600
Slide 31: Low Leveraged Asset Base
LOW LEVERAGED ASSET BASE 12/31/2015 12/31/2016 12/31/2017 Shares Outstanding 25,241 25,664 31,452 Closing stock price $ 6.13 $ 9.27 $ 6.95 Market value of common equity 154,722 237,905 218,591 Consolidated debt 40,000 49,100 41,402 Consolidated enterprise value $ 194,722 $ 287,005 $ 259,993 TPHS sha
Slide 32: Illustrative Value Math Exercise
ILLUSTRATIVE VALUE MATH EXERCISE (4) 32 Implied additional value per share Illustrative average residential condominium sales prices (3) $ 2,500 $ 2,700 $ 2,900 Total SSF 136,000 136,000 136,000 Illustrative gross value of residential condominium $ 340,000 $ 367,200 $ 394,400 Less: Construction faci
Slide 33: Implied Greenwich Residential Sale Price Based on Share Price
IMPLIED 77 GREENWICH RESIDENTIAL SALE PRICE BASED ON SHARE PRICE Implied value of 77 Greenwich residential condominium (in 000’s, except per share and P/SSF) Illustrative midpoint valuation per share, excluding 77 Greenwich residential condominium(1) $ 4.35 Stock price (a/o April 16, 2018) $ 6.47 Im
Slide 34: Management and Board
MANAGEMENT AND BOARD
Slide 35: Matt Messinger, President & CEO
MATT MESSINGER, President & CEO . ► Matt Messinger appointed the President and CEO of the Company in October 2013 ► Formerly Executive Vice President and Director of Investment Management at Forest City Ratner Companies (“FCRC”) ► 18 year tenure at the company ► Led the New York Investment Committee
Slide 36: Team
TEAM Charles Gans , Senior Vice President Mr. Gans joined the Company in October 2017 to lead the development of 77 Greenwich. Prior to joining, he served as Executive Vice President and co - headed the Real Estate Transaction Group at NYCEDC. In that capacity, he led a team of real estate professio
Slide 37: Board of Directors
BOARD OF DIRECTORS Joanne M. Minieri Ms. Minieri has served as a director of the Company since November 8, 2013 and serves as the Chair of the Board’s Audit Committee. She was appointed by Third Avenue, a major investor in the Company. Ms. Minieri serves as the “Special Stock Director,” who is elect
Slide 38: Appendix
APPENDIX
Slide 39: Comparable Lower Manhattan Condo Developments
COMPARABLE LOWER MANHATTAN CONDO DEVELOPMENTS Building Projected/Estimated $/SF 125 Greenwich St. $2,900/SF 45 Park Place $3,400/SF The Four Seasons Residences (30 Park Place) $3,200/SF 50 West St. $2,800/SF 111 Murray St. $3,200/SF One Seaport (161 Maiden Lane) $2,350/SF The Beekman Residences (5 B
Slide 40: Certain Risks Regarding Illustrative Valuations
CERTAIN RISKS REGARDING ILLUSTRATIVE VALUATIONS The illustrative valuations on pages 19, 32 and 33 are provided solely for purposes of demonstrating the math one might use a s p art of a potential valuation methodology for the Company based on the examples provided. These illustrative valuations are
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