One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (September 2015)
35 slides from One Liberty Properties's investor presentation, Sep 10, 2015
Slide 1: One Liberty Properties, Inc. Investor Presentation September 2015
ONE LIBERTY PROPERTIES, INC. INVESTOR PRESENTATION SEPTEMBER 2015 onelibertyproperties.com
Slide 2: Safe Harbor
Safe Harbor oe 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
Slide 3: OLP — Investment Rationale
OLP — Investment Rationale sae recor © Stockholder return & dividend ¢ Strategy - focus on real estate fundamentals ¢ Disciplined track record through economic cycles e Active portfolio management e Experienced management team ¢ Significant insider ownership
Slide 4: Financial & Portfolio Summary
Financial & Portfolio Summary a Number of Properties (as of september 4, 2015) (n: 119 Square Footage »: 7.8 million Current Occupancy »): 98% + Market Cap »: $357.2 million Shares Outstanding «: 16.6 million Insider Ownership »: 23.1% Current Annualized Dividend: $1.56 Dividend Yield w: 7.2% (1) _I
Slide 5: Stockholder Return: 5-Year Annualized Total Return
Stockholder Return (Ge eer ores. 16 5-Year Annualized Total Return « 31.2% 35% 7 30% | 25% + 16.9% 15.5% 20% | 18% | 10% | 5% | yy ne. 4 om | i ‘ oF our NAREIT Equity Index S&P 500 (1) AsotDecember 31,2016 3
Slide 6: Stockholder Return: 10-Year Annualized Total Return
Stockholder Return ee rors. nc 10-Year Annualized Total Return « 9.2% | 8.3% 4% | 0% ‘oLP NAREIT Equity Index S&P 500 (1) AsofDecember 31,2016 .
Slide 7: Growth in Operations
Growth in Operations $1.80 $1.70 $1.60 $1.50 Historical FFO Per Share (1) FFO AFFO For the Six Months Ended June 30, 2015 (1): $0.88 $0.92 $1.90 $1.80 $1.70 $1.60 $1.50 Historical AFFO Per Share (1) $1.84 2011 2012 2013 2014 (1) Arreconctaton of net income per dbuted share, as determined in accordan
Slide 8: Dividend Growth
Dividend Growth $1.60 $1.55 $1.50 $1.45 $1.40 $1.36 $1.30 $1.25 86% FFO Payout $1.32 Ratio 2) 84% FFO Payout Ratio) 82% FFO Payout Ratio 2) 86% FFO Payout Ratio 2) $1.56 1) For the Six Months Ended 6730/1 89% FFO Payout Ratio (2)(3) Va 2011 2012 2013, (1) Basedon the annuatzed aivisend rate in effec
Slide 9: Total Revenues
$65 Total Revenues «1 $60.5 360 = For the 6 Months Ended June 30, 2015 1): Total Revenues $31.1 million $60 $35 $30 $25 $20 2009 2010 2011 2012 2013, 2014 (1) Representstotel revenues foreach ofthe years ended December 21,2009 through 2014, and forthe sbtmnths ended June 20,2015, Incudes (a) al tena
Slide 10: Occupancy: Low Point
100.0% an 100.0% 6% 99.0% 58.0% 98.8% 98,6% 98:8% Low Point Pec oe 98.0% 7 90.0% = | = = | = a 2007 2008 2008 2010 pow 2018 2014 2015 (1) AsatDecember 31 foreach 02009 through 2014 and as at June 30, 2015. ncudes our unconsoidated joint ventures,
Slide 11: Properties in States
118 Properties in 30 States (as of June 30,2015) ““""—"""* jighest State Concentration by 2015 Contractual Rental income, Number of 2015 Contractual % of 2015 Contractual Properties Rental Income Rental income Texas $ 6,266,264 New York 9 5,432,510 93 Georgia 13 4,607,686 79 Pennsylvania 10 4,596,15
Slide 12: Diversified Portfolio
Diversified Portfolio % of 2015 Number of 2015 Contractual Contractual Type of Property Properties Rental Income Rental Incom Retail — General 46 $ 18,073,487 31.0% — Furniture 14 5,808,162 10.0 — Restaurant 19 3,879,051 6.7 — Office Supply 8 2,996,243 51 — Supermarket « 2,818,230 48 Industrial 16 1
Slide 13: Diversified Tenant Base
Diversified Tenant Base sae recor 2015 %of 2016 p Tenan Tenant Pi ties: Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) $4,568,723 7.8% 1 LA Fitness International, LLC 3 3,054,922 5.2 Office Depot, Inc. (NYSE: ODP) 8 2,996,243 54 1 At 4 Northern Tool & Equipment 2,697,150 4
Slide 14: Lease Expirations
Lease Expirations Year Ending 2015 Contractual % of 2016 Contractual Rental Income Approximate Square ‘RO Leer PrCFERTES, NC % of Square Feet December 31. 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 & Beyond Number of RentalIncome Under Represented by FeetSubjectTo Represented by Expiring
Slide 15: Acquisition Track Record
Acquisition Track Record eve renee ne ¢ Acquired $76.3 million of properties through September 1, 2015 © Current pipeline of diverse opportunities in excess of $250 million Acquisitions Per Year $120 (Sin millions) $107.5 $100 5723 $76.3 $90 $56.8 380 $44.6 $0 $29.60 " | | 30 2009 2010 2011 2012 201
Slide 16: Recent Acquisitions
Recent Acquisitions pager cern aap Financing Lease Purchase Giuiy_—_ information Tenant (or d/b/a Msa State Expir Price o ne of 07/28/2018 Industrial Supplier to auto industry Birmingham AL 02/26/2022 $16,750,000 7.4% AllCash 06/15/2018 Shopping Center) Kmart TJ Max, RegalCinemas.ete Manahawkin ni S
Slide 17: Recent Mortgages
Recent Mortgages ‘RO Leer PrCFERTES, NC Property Mortgage Mortgage Interest Date Financed _T) Tenant (or d/b/a) MsA State Amount Mat Rate 07/2372015 Retail Office Depot Raleigh/Durham NC $3,836,000 06/05/2025 4.35% 0772372015 Retail Office Depot Chicago IL $ 3,954,000 06/05/2025 4.35% 07/29/2015 Ret
Slide 18: Acquisition Case Study - Ground Lease
Acquisition Case Study —- Ground Lease OO lal In March 2015, acquired 49 acres of land located in Lakemoor, IL (Chicago MSA) which a Purchase Price $ 9,300,000 was simultaneously ground leased to an experienced multi-family operator Year 1 Rental Income $ 1,102,319 The land is improved by a class A
Slide 19: Acquisition Case Study — Industrial
Acquisition Case Study — Industrial OO ll ® In March 2015, acquired a distribution facility in Louisville, KY, net leased to Interline Brands, Inc. which is to be acquired by The Home Purchase Price $4,400,000) Depot, Inc. (NYSE: HD) Mortgage (1) ($2,640,000) ga ‘ Net Equity Invested ‘$1,760,000 Int
Slide 20: Acquisition Case Study — Industrial
Acquisition Case Study — Industrial OO lal In November 2014, acquired a distribution facility in New Hope (Minneapolis), MN, net Purehass:Pricd $7,200,000 leased to Progressive Converting, Inc. Mortgage «1) ($4,450,000) Net Equity Invested $2,750,000 Progressive Converting is the largest paper conve
Slide 21: Acquisition/Disposition Case Study
Acquisition/Disposition Case Study OO lal ¢ In October 2011, acquired a vacant Home Purchase Price $ 5,800,000 Depot in Cherry Hill, NJ through a consolidated Jv Sale Price $16,300,000 © 6 miles east of downtown Philadelphia Internal Rate of Return to OLP 22.3% © The building is 114,000 SF on 12.4 a
Slide 22: 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 of $12.85 million with a Office Depot in a sale leaseback 10 year term at an interest rate of 4.35% secured transaction by the properties with extended leases * The 10 year orig
Slide 23: Balance Sheet Information
Balance Sheet Information pager cern Gross Assets «»: $705.8 million Total Debt/Gross Assets «9: 49.8% Fixed Rate Debt.): 91.4% Debt Service Coverage Ratiow: 2.3 to 1.0 Fixed Charge Coverage Ratio: 2.0 to 1.0 FFO Payout «: 85.7% + Liquidity available to acquire in excess of an estimated $150 million
Slide 24: Laddered Mortgage Debt Maturities
Laddered Mortgage Debt Maturities . Ghee rerenes © Weighted average interest rate of 4.78% on fixed rate debt © There is approximately $7.7 million ($0.47 per share) of scheduled amortization of mortgages for the 12 months ending June 30, 2016 Balloon Payments Due For the Twelve Months Ending June 3
Slide 25: Management Team
Management Team ae rere 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) which was
Slide 26: Top Tenants' Profiles
/S UBERTY PROPERTES, NC. TOP TENANTS’ PROFILES
Slide 27: Havertys Furniture — Tenant Profile
Havertys Furniture — Tenant Profile OO lal * Tenant: Haverty Furniture Companies, Inc. (NYSE:HVT) © Represents 7.8% of 2015 contractual rental income * Full service home furnishings retailer founded in 1885 ‘© Public company since 1929 * 120showroomsin 16 states in the Southern and Midwestern region
Slide 28: Representative Havertys - Richmond, VA
Representative Havertys - Richmond, VA 42°" 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 14 years. 3 Mile Demographics (source: stes usa, 2018) - Population: 55,421 Average HH Income: $107,126 Location: 1150
Slide 29: LA Fitness — Tenant Profile
LA Fitness — Tenant Profile Tenant: LA Fitness International LLC * Represents 5.2% of 2015 contractual rental income * LAFitness currently operates over 500 clubsin 21 states © The company was foundedin 1984 and is headquarteredin Irvine, CA ¢ 3 properties representing 141,663SF % of 2015 Contractua
Slide 30: Office Depot — Tenant Profile
Office Depot — Tenant Profile OO lal * Tenant: Office Depot, Inc. (NYSE: ODP) * 8 properties representing 206,569 SF « Represents 5.1% of 2015 contractual rental income % of 2015 Contractual Rental income * Leading global provider of office products and — Chicago, IL:0.9% services — Cary (Raleigh-Du
Slide 31: 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 21 years. 3 Mile Demographics (source: stes usa, 2015) - Population: 545,577 Average HH Income: $95,515 Location: 2928 N. Ashland Ave, Chicago,
Slide 32: Northern Tool & Equipment — Tenant Profile
Northern Tool & Equipment-— Tenant Profile “<= ¢ Tenant: Norther Tool & Equipment Location: 1850 Banks Road, Fort Mill, SC Building: 701,595 SF on 40 acres 3 Mile Demographics csource'stesusa,2015) * Represents 4.6% of 2015 contractual rental income * Alarge United States distributor of industrial g
Slide 33: Ferguson Enterprises — Tenant Profile
Ferguson Enterprises— Tenant Profile a Tenant: Ferguson Enterprises, Inc. Location: 4501 Hollins Ferry Rd, Baltimore MD 5 miles south of downtown Baltimore Building: 367,000 SF on 28 acres 3 Mile Demographics sure stesusa. 2018) * Represents 4.2% of 2015 contractual rental income * One of the larges
Slide 34: GAAP Reconciliation
GAAP Reconciliation The following table provides a reconci GAAP net income ‘Add: depreciation of properties Add: our share of depreciation in unconsolidated joint ventures ‘Add: impairment loss/charges Add: amortization of deferred leasing costs Add: Federal excise tax relating to gain on sales Dedu
Slide 35: Summary - Why OLP?
Summary - Why OLP? pager cern e Current dividend yield of 7% e Since 2011 dividend has consistently grown e Average 5 year annualized total return of 31% Occupancy rate through various cycles (since 2008) never below 98% eInsiders own 23% of OLP 35
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