One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (September 2018)
35 slides from One Liberty Properties's investor presentation, Sep 28, 2018
Slide 1: Investor Presentation October 2018
Investor Presentation OCTOBER 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 Growt
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 through various economic cycles Active net lease strategy with emphasis on industrial properties Experienced management team Alignment of interests through 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 10.2 M Number of Properties 119 Current Occupancy 99.0% Contractual Rental income (2) $70.7 M Lease Term Remaining 8.2 Years Forbo – Charlotte, NC Saddle Creek Logistics – Scranton, PA (1) Information presented as of June 30, 2018, including four properties owned by unconsol
Slide 7: Portfolio Detail
◆ 7 Type of Property Number of Properties Contractual Rental Income (1) % of Contractual Rental Income Retail – General 38 $ 17,081,417 24.1% – Furniture 14 6,109,003 8.6 – Supermarket 3 2,878,515 4.1 – Office Supply 7 2,271,323 3.2 Industrial 30 26,500,424 37.5 Restaurants 16 3,500,287 4.9 Health &
Slide 8: Diversified Portfolio
◆ 8 Geographically diverse footprint Own 119 properties in 30 states Strong markets drive value Highest State Concentration by Contractual Rental Income State Number of Properties Contractual Rental Income % Contractual Rental Income Texas 11 $7,971,183 11.3% Pennsylvania 11 5,373,016 7.6 Sout
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 6.8% LA Fitness International , LLC 3 3,078,376 4.4 Northern Tool & Equipment 1 2,841,400 4.0 Regal Entertainment Group 3
Slide 10: Financial Summary
◆ 10 Power Distributors / Keystone Automotive – Des Moines, IA Dufresne Spencer Group – Memphis, TN FINANCIAL SUMMARY Market Cap (1) $517.4 M Shares Outstanding (1) 19.3 M Insider Ownership (2) 21.5% Current Annualized Dividend $1.80 Dividend Yield (3) 6.7% (1) Market cap is calculated using the sha
Slide 11: Targeting Long Term Total Return
◆ 11 TARGETING LONG TERM TOTAL RETURN Consistent driver of long term stockholder value 13.5% 10.1% 7.9% 0% 2% 4% 6% 8% 10% 12% 14% OLP S&P 500 NAREIT Equity Index 10 - Year Annualized Total Return (1) (1) Performance period ended June 30, 2018
Slide 12: Growth in Operations
◆ 12 GROWTH IN OPERATIONS (1) $1.75 (3) $1.97 (3) $1.90 $1.94 $1.20 $1.40 $1.60 $1.80 $2.00 2014 2015 2016 2017 Historical FFO Per Share (2) $1.84 $1.92 $1.99 $2.09 $1.50 $1.70 $1.90 $2.10 2014 2015 2016 2017 Historical AFFO Per Share (2) (1) For the years ended December 31 (2) A reconciliation of n
Slide 13: Growth in Operations
◆ 13 GROWTH IN OPERATIONS (1) $1.50 $1.58 $1.66 $1.74 $1.00 $1.20 $1.40 $1.60 $1.80 2014 2015 2016 2017 Increase in Dividend Per Share Current Annualized Dividend: $1.80 (1) For the years ended December 31
Slide 14: Growth Oriented Balance Sheet
◆ 14 GROWTH ORIENTED BALANCE SHEET AS AT JUNE 30, 2018 Gross Assets (1) $868.4 M Total Debt/Gross Assets (2) 49.7% Fixed Rate Debt 95.3% Debt Service Coverage Ratio (3) 2.3 to 1.0 Fixed Charge Coverage Ratio (3) 2.0 to 1.0 FFO Payout 89.0% Liquidity available to acquire in excess of an estimated $
Slide 15: Mortgage Debt Maturities
◆ 15 MORTGAGE DEBT MATURITIES AS AT JUNE 30, 2018 (1) Weighted average interest rate of 4.2% on fixed rate debt There is approximately $11.4 million ($0.59 per share) of scheduled amortization of mortgages for the twelve months ending June 30, 2019 $2.9 (2) $3.5 $2.1 $14.0 (3) $30.9 $228.9 $0 $5
Slide 16: Lease Maturity Profile
◆ 16 LEASE MATURITY PROFILE (1) Our contractual rental income represents, after giving effect to any abatements, concessions or adjustments, the base rent pa yab le to us for the year ending December 31, 2018 under leases in effect at March 31, 2018 and excludes approximately $793,000 of straight -
Slide 17: Stable Occupancy
◆ 17 STABLE OCCUPANCY (1)(2) 98.0% 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 97.3% 99.3% 80.0% 90.0% 100.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1) As at December 31 (2) Based on square footage, including 100% our unconsolidated joint ventures At June 30, 2018: Occupancy – 99.0%
Slide 18: Strong Rental Income Growth
◆ 18 STRONG RENTAL INCOME GROWTH (1)(2) $44.4 $42.8 $49.3 $56.6 $59.0 $64.2 $68.2 $35 $40 $45 $50 $55 $60 $65 2011 2012 2013 2014 2015 2016 2017 ($ in millions) (1) As at December 31 (2) Includes straight - line rent accruals and amortization of intangibles As of the Six Months Ended June 30, 2018:
Slide 19: Acquisition Track Record
◆ 19 ACQUISITION TRACK RECORD Current acquisitions of $18.2 million through September 30, 2018 and two industrial properties under contract for an aggregate purchase price of $20.2 million Current pipeline of diverse opportunities in excess of $225.0 million $29.6 (1) $44.6 $107.5 $56.8 $95.2 (1
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 Info (at time of purchase) (in ‘000s) 06/07/18 Industrial Plymouth Industries Minneapolis MN 06/30/33 $ 5,500 8.5% All cash 03/28/18 Industrial Camp
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) 09/14/18 03/24/15 Other The Meadows Apartments Lake County IL $ 8,425 $4,551 07/31/18 08/13/04 Industrial Caterpillar Mining Milwaukee WI $13,275 $3,973
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 09/07/18 Industrial Plymouth Industries Minneapolis MN $3,325 10/01/33 4.46% 07/26/18 Industrial Campania International / U.S. Tape Philadelphia PA $8,238 08/01/29 4.65% 07
Slide 23: Acquisition Case Study - Industrial
◆ 23 ACQUISITION CASE STUDY - INDUSTRIAL In March 2018, acquired a multi - tenant distribution facility via sale - leaseback in Pennsburg, PA The 291,203 SF property is absolute net leased to Campania International, Inc. (213,459 SF) and US Tape Company, Inc. (77,744 SF) Pennsburg is well loca
Slide 24: Disposition Case Study - Industrial
◆ 24 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 campus features 750,000 SF of warehouse, manu
Slide 25: Blend & Extend Case Study – L3 Technologies
◆ 25 BLEND & EXTEND CASE STUDY – L3 TECHNOLOGIES In December 2000, acquired a 149,870 SF flex warehouse located in Hauppauge, NY for $13.65 million. The property has been continuously occupied by L3 Technologies, Inc. (NYSE: LLL), an investment grade, $16.8 billion market company. On May 14, 2
Slide 26: Summary – Why OLP?
◆ 26 Fundamentals – focused real estate company Disciplined track record through various economic cycles Active net lease strategy with emphasis on industrial properties Experienced management team Alignment of interests through significant insider ownership SUMMARY – WHY OLP?
Slide 27: One Liberty Properties, Inc.
ONE LIBERTY PROPERTIES, INC.
Slide 28: Profiles
ONE LIBERTY PROPERTIES, INC. PROFILES
Slide 29: Havertys Furniture – Tenant Profile
◆ 29 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 » 121 showrooms in 16 states in the Southern and Midwestern regions » Weathered economic cyc
Slide 30: LA Fitness – Tenant Profile
◆ 30 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 SF % of Contractual Rental
Slide 31: Northern Tool & Equipment – Tenant Profile
◆ 31 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 » 100 retail stores in the U.S. » Acquired The Sportsman’s Guide and The Golf Warehouse to sell out
Slide 32: Regal Entertainment Group – Tenant Profile
◆ 32 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 cinema exhibitor behind AMC » 7,322 screens and 560 the
Slide 33: Ferguson Enterprises – Tenant Profile
◆ 33 FERGUSON ENTERPRISES – TENANT PROFILE Tenant: Ferguson Enterprises, Inc. (Source: Tenant’s website) » Ferguson is an international industrial supply & distribution company. One of the largest United States distributors of plumbing supplies, pipes, valves and fittings. » Ferguson is a large an
Slide 34: One Liberty Properties, Inc.
ONE LIBERTY PROPERTIES, INC.
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 Six Months Ended June 30, Years Ended December 31, 2018 2017 2016 2015 2014 GAAP n et income attributable to One Liberty Propert
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