One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (January 2018)
35 slides from One Liberty Properties's investor presentation, Jan 22, 2018
Slide 1: Investor Presentation January 2018
INVESTOR PRESENTATION JANUARY 2018 onelibertyproperties.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 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
Slide 3: Safe Harbor
3 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 diff
Slide 4: Company Overview
4 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
Slide 5: Experienced Management Team
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 sq
Slide 6: Attractive Portfolio Fundamentals
6 ATTRACTIVE PORTFOLIO FUNDAMENTALS (1) Total Square Footage 10.4 M Number of Properties 119 Current Occupancy 98.0% Contractual Rental income (2) $70.1 M Lease Term Remaining 8.7 Years (1) Information presented as of September 30, 2017, including five properties owned by unconsolidated joint ventur
Slide 7: Portfolio Detail
7 PORTFOLIO DETAIL Type of Property Number of Properties Contractual Rental Income (1) % of Contractual Rental Income Retail – General 40 $ 18,173,643 25.9% – Furniture 14 6,109,004 8.7 – Supermarket 3 2,613,926 3.7 – Office Supply 7 2,430,408 3.5 Industrial 28 24,533,745 35.0 Restaurants 17 3,528,2
Slide 8: Diversified Portfolio
8 DIVERSIFIED PORTFOLIO Geographically diverse footprint Own 119 properties in 31 states Strong markets drive value Highest State Concentration by Contractual Rental Income State Number of Properties Contractual Rental Income % Contractual Rental Income Texas 12 $8,741,749 12.5% South Carolina 6 5,6
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 $ 4,842,847 6.9% LA Fitness International , LLC 3 3,075,583 4.4 Northern Tool & Equipment 1 2,809,880 4.0 Regal Entertainment Group (NYS
Slide 10: Financial Summary
10 FINANCIAL SUMMARY Market Cap (1) $487.5 M Shares Outstanding (1) 19.0 M Insider Ownership (2) 23.0% Current Annualized Dividend $1.80 Dividend Yield (3) 7.0% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $ 25.62 at January 19, 2018 (2) Calculated as
Slide 11: Targeting Long Term Total Return
11 TARGETING LONG TERM TOTAL RETURN (1) Performance period ended September 30, 2017 Consistent driver of long term stockholder value 10.9% 7.3% 5.8% 0% 2% 4% 6% 8% 10% 12% OLP S&P 500 NAREIT Equity Index 10 - Year Annualized Total Return (1)
Slide 12: Growth in Operations
12 GROWTH IN OPERATIONS (1) (1) For the years ended December 31 2014, 2015 and 2016 and for the nine months ended September 30, 2017 (2) A reconciliation of net income per diluted share, as determined in accordance with GAAP, to FFO per diluted share and AFFO pe r d iluted share, may be found at the
Slide 13: Growth Oriented Balance Sheet
13 GROWTH ORIENTED BALANCE SHEET AS AT SEPTEMBER 30, 2017 Gross Assets (1) $842.7 M Total Debt/Gross Assets (2) 50.4% Fixed Rate Debt 98.5% Debt Service Coverage Ratio (3) 2.3 to 1.0 Fixed Charge Coverage Ratio (3) 2.3 to 1.0 FFO Payout 90.0% (1) Gross assets represent total assets plus accumulated
Slide 14: Laddered Mortgage Debt Maturities
14 LADDERED MORTGAGE DEBT MATURITIES AS AT SEPTEMBER 30, 2017 (1) (1) Includes our share of the mortgage debt of our unconsolidated joint ventures Weighted average interest rate of 4.2% on fixed rate debt There is approximately $8.6 million ($0.46 per share) of scheduled amortization of mortgages fo
Slide 15: Lease Maturity Profile
15 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 2018 23 $ 2,731,908 3.9% 455,005 2019 26 4,064,050 5.8 5
Slide 16: Consistent Operational Performance
16 CONSISTENT OPERATIONAL PERFORMANCE (1) As at December 31 (2) Based on square footage, including our unconsolidated joint ventures 100.0% 98.0% 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 97.3% 80.0% 90.0% 100.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Stable Occupancy (1)(2) At September
Slide 17: Consistent Operational Performance
17 CONSISTENT OPERATIONAL PERFORMANCE (1) As at December 31 (2) Includes straight - line rent accruals and amortization of intangibles $41.4 $44.4 $42.8 $49.3 $56.6 $59.0 $64.2 $35 $40 $45 $50 $55 $60 $65 2010 2011 2012 2013 2014 2015 2016 ($ in millions) Strong Rental Income Growth (1)(2) For the 9
Slide 18: Acquisition Track Record
18 ACQUISITION TRACK RECORD (1) Includes our 50% share of an unconsolidated joint venture property in (a) Savannah, GA acquired in 2011 and (b) Manahawkin, N J a cquired in 2015 Acquired $43.2 million of properties through December 31, 2017 Current pipeline of diverse opportunities in excess of $225
Slide 19: Recent Acquisitions
19 RECENT ACQUISTIONS Date Acquired Property Type Tenant (or d/b/a) MSA State Current Lease Expiration Purchase Price (in ‘000s) Yield (1) Financing Info (at time of purchase) (in ‘000s) 10/10/17 Industrial Dufresne Spencer Group Holdings Memphis TN 10/09/27 $ 8,000 7.8% All cash 06/20/17 Industrial
Slide 20: Recent Dispositions
20 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) 11/14/2017 09/12/2013 Restaurant Former Joe’s Crab Shack Ann Arbor MI $ 2,300 $ (153) 08/31/2017 09/14/2011 Retail Former hhgregg , Inc. Niles IL $ 5,000 $
Slide 21: Recent Mortgages
21 RECENT MORTGAGES Date Financed Property Type Tenant (or d/b/a) MSA State Amount (in ‘000s) Mortgage Maturity Interest 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%
Slide 22: Acquisition Case Study - Industrial
22 ACQUISITION CASE STUDY - INDUSTRIAL In June 2017, acquired a multi - tenant distribution facility in Des Moines, IA net leased to Power Distributors and Keystone Automotive. Power Distributors is a distributor of outdoor power equipment with annual sales of $180 million. Keystone Automotive is a
Slide 23: Disposition Case Study
23 DISPOSITION CASE STUDY Purchase Price $ 4,040,000 Sales Price 9,500,000 Internal Rate of Return to OLP 19.57% In April 1996, acquired a net leased retail property in Greenwood Village (Denver MSA), CO leased to Gart Bros. Sporting Goods Company for $4.0 million » 11 miles southeast of downtown De
Slide 24: Summary – Why OLP?
24 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
Slide 25: Appendix
APPENDIX
Slide 26: Acquisition Case Study – Ground Lease
26 ACQUISITION CASE STUDY – GROUND LEASE In August 2016, acquired 8 acres of land in Beachwood, OH , a wealthy suburb of Cleveland » Simultaneously ground leased to an experience multi - family operator » Land is improved by a class A 348 unit mid - rise multi - family complex » Building and improve
Slide 27: Acquisition Case Study – Industrial
27 ACQUISITION CASE STUDY – INDUSTRIAL In June 2016, acquired a distribution facility in El Paso, TX , net leased to Toro Co (NYSE: TTC) » Toro is global developer , manufacturer and distributor of lawn and landscape equipment » Toro has a market cap of approximately $7.2 billion (as of 12/1/2017) a
Slide 28: Blend & Extend Case Study – Office Depot
28 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 a
Slide 29: Top Tenants' Profiles
© ONE LIBERTY PROPERTIES, INC. TOP TENANTS’ PROFILES
Slide 30: Havertys Furniture – Tenant Profile
30 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 » 124 showrooms in 15 states in the Southern and Midwestern regions » Weathered economic cycles,
Slide 31: LA Fitness – Tenant Profile
31 LA FITNESS – TENANT PROFILE Tenant: LA Fitness International LLC (Source: Tenant’s website) » Currently operates over 800 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 SF % of Contractual Rental Income
Slide 32: Northern Tool & Equipment – Tenant Profile
32 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 » 95 retail stores in the U.S. » Acquired The Sportsman’s Guide and The Golf Warehouse to sell outdoor
Slide 33: Regal Entertainment Group – Tenant Profile
33 REGAL ENTERTAINMENT GROUP – TENANT PROFILE Tenant: Regal Entertainment Group (NYSE: RGC) (Source: Tenant’s website) » Brands include: Regal Cinemas, Edward Theaters and United Artists Theaters » 7,379 screens and 566 theaters in America » Currently the largest American theater chain. The second l
Slide 34: Office Depot – Tenant Profile
34 OFFICE DEPOT – TENANT PROFILE Tenant: Office Depot, Inc. (NYSE: ODP) (Source: Tenant’s website) » Leading global provider of office products and services » Operates more than 1,400 retail stores » Revenues of $11.0 billion (as of 12/31/2016) » $ 1.8 billion market cap (as of 1/18/2017 ) 7 propert
Slide 35: GAAP Reconciliation
35 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, 2017 2016 2015 2014 2013 GAAP n et income attributable to One Liberty Proper
One Liberty Properties — Investor Presentation (January 2018) on 6ix