One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (September 2016)
35 slides from One Liberty Properties's investor presentation, September 2016
Slide 1: Investor Presentation September 2016
INVESTOR PRESENTATION SEPTEMBER 2016 onelibertyproperties.com
Slide 2: Table of Contents
Table of Contents DESCRIPTION: PAGE # DESCRIPTION: PAGE # Table of Contents 2 Case Studies: Safe Harbor Disclosure 3 Acquisition – Nashville, TN 20 Company Overview 4 Disposition – Philadelphia, PA 21 Experienced Management Team 5 Acquisition – Baltimore, MD 22 Attractive Portfolio Fundamentals 6 Su
Slide 3: Safe Harbor
Safe Harbor The statements in this presentation, including targets and assumptions, reflect 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 4: Company Overview
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 4
Slide 5: Experienced Management Team
Experienced Management Team § Chief Executive Officer since 2008, President since 2006, Director since 2002 Patrick J. Callan, Jr. § 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) whi
Slide 6: Attractive Portfolio Fundamentals
Attractive Portfolio Fundamentals(1) Total Square Footage 10.1 M Retail: 54.0% Property Type as a % of Industrial: 26.9% Income Other: 19.1% Number of Properties 120 Northern Tool – Fort Mill, SC (Charlotte MSA) Current Occupancy 98.3% Contractual Rental $68.5 M Income(2) Lease Term Remaining 8.4 Ye
Slide 7: Portfolio Detail
Portfolio Detail Number of Contractual Rental % of Contractual Type of Property Properties Income (1) Rental Income Retail – General 46 $ 22,468,644 32.8% – Furniture 14 5,841,611 8.5 – Restaurant 18 3,812,014 5.6 – Office Supply 7 2,430,408 3.6 – Supermarket 2 2,426,832 3.5 Industrial 22 18,431,399
Slide 8: Diversified Portfolio
Diversified Portfolio § Geographically diverse footprint § Own 120 properties in 30 states § Strong markets drive value Highest State Concentration by Contractual Rental Income Number of Contractual % Contractual Rental State Properties Rental Income Income Texas 12 $ 8,480,765 12.4% South Carolina
Slide 9: Diversified Tenant Base
Diversified Tenant Base % of Top Tenants Number of Contractual Contractual Properties Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,580,145 6.7% LA Fitness International, LLC 3 3,075,583 4.5 Northern Tool & Equipment 1 2,764,916 4.0 Regal Entertainment Group (NYSE:
Slide 10: Financial Summary
Financial Summary Market Cap : (1) $447.4 million Shares Outstanding : (1) 17.6 million Insider Ownership : (2) 22.6% Current Annualized Dividend: $1.64 Dividend Yield : (3) 6.5% FedEx Ground & Chep USA – St. Louis, MO JCI/Yanfeng (Johnson Controls Guarantee) – McCalla, AL (1) Market cap is calculat
Slide 11: Targeting Long Term Total Return
Targeting Long Term Total Return Consistent driver of long term stockholder value 15-Year Annualized Total Return (1) 12.4% 14% 11.2% 12% 10% 6.6% 8% 6% 4% 2% 0% OLP NAREIT Equity Index S&P 500 (1) Performance periods reflects September 1, 2001 through August 31, 2016. 11
Slide 12: Growth In Operations
Growth In Operations Historical FFO Per Share(1) Historical AFFO Per Share(1) $1.97 $2.00 $2.00 $1.92 $1.90 $1.90 $1.84 $1.75 $1.80 $1.80 $1.75 $1.66 $1.70 $1.59 $1.70 $1.65 $1.60 $1.60 $1.50 2012 2013 2014 2015 2012 2013 2014 2015 Dividend Growth Per Share $1.58 $1.60 $1.50 80% FFO Payout $1.50 $1.
Slide 13: Growth Oriented Balance Sheet
Growth Oriented Balance Sheet as at June 30, 2016 Gross Assets (1) : $771.4 million Total Debt/Gross Assets (2) : 51.8% Fixed Rate Debt : 93.7% Debt Service Coverage Ratio (3) : 2.3 to 1.0 Fixed Charge Coverage Ratio (3) : 3.3 to 1.0 FFO Payout (4) : 94.0% § Liquidity available to acquire in excess
Slide 14: Laddered Mortgage Debt Maturities
Laddered Mortgage Debt Maturities as at September 1, 2016 (1) § Weighted average interest rate of 4.3% on fixed rate debt § There is approximately $11.8 million ($0.67 per share) of scheduled amortization of mortgages for the 12 months ending August 31, 2017 Balloon Payments Due For the Twelve Month
Slide 15: Lease Maturity Profile
Lease Maturity Profile Contractual % of Contractual Rental Approximate Square Feet 12 Months Ending Number of Rental Income Under Income Represented by Subject To August 31, Expiring Leases Expiring Leases Expiring Leases Expiring Leases 2017 14 $ 611,763 0.9% 165,034 2018 27 2,946,315 4.3 333,779 2
Slide 16: Consistent Operational Performance
Consistent Operational Performance At September 1, 2016: Stable Occupancy(1) Occupancy 98.3% 100.0% 98.0% 99.0% 98.9% 98.1% 98.8% 99.6% 98.6% 98.3% 100.0% 90.0% 80.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Strong Revenue Growth (2) $70 $65.7 For the 6 Months Ended June 30, 2016 (2): $60.5 $65
Slide 17: Acquisition Track Record
Acquisition Track Record § Acquired $118.6 million of properties through September 1, 2016 § Current pipeline of diverse opportunities in excess of $250 million Acquisitions Per Year $118.6 (2) ($ in millions) $120 $107.5 $95.2 (1) $100 $72.3 $80 $56.8 $60 $44.6 $40 $29.6 (1) $20 $0 2010 2011 2012 2
Slide 18: Recent Acquisitions
Recent Acquisitions Purchase GAAP Financing Info Date Lease Price Yield (at time of purchase) Acquired Property Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) (1) (in ‘000s) 09/01/16 Industrial Famous Footwear / Caleres Nashville TN 06/30/31 $32,734 6.4% $21,288 mortgage 08/16/16 Other The V
Slide 19: Recent Mortgages
Recent Mortgages Mortgage Date Amount Mortgage Interest Financed Property Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 09/01/16 Industrial Famous Footwear / Caleres Nashville TN $21,288 10/01/31 3.70% 08/24/16 Industrial The Toro Company El Paso TX $15,000 09/01/22 3.50% 07/29/16 Indust
Slide 20: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial § In September 2016, acquired a distribution facility in Lebanon, TN (Nashville MSA) net leased to Famous Purchase Price $32,734,000 Footwear. Guaranteed by Caleres, Inc (NYSE: CAL) Mortgage (1) (21,287,500) § Global footwear retailer and wholesaler with annual sa
Slide 21: Disposition Case Study
Disposition Case Study § In March 2005, acquired a manufacturing facility in Purchase Price $ 9,680,000 Philadelphia, PA leased to Sweet Ovations for Sale Price $14,800,000 $9.68 million § 13 miles north of downtown Philadelphia Internal Rate of Return to OLP 18.64% § The building is 166,000 SF on 1
Slide 22: Acquisition Case Study – Short Term Lease
Acquisition Case Study – Short Term Lease § In June 2014, acquired via short term sale leaseback a Purchase Price $11,650,000 distribution warehouse in Joppa, MD through a Year 1 Base Rent for Prior Tenant $905,485 consolidated JV Year 1 Return on Equity 7.77% § Simultaneously net leased to Noxell C
Slide 23: Summary – Why OLP?
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 23
Slide 24: Appendix
ONE UBERTY PROPERTIES, INC. APPENDIX
Slide 25: Acquisition Case Study – Ground Lease
Acquisition Case Study – Ground Lease § In March 2015, acquired 49 acres of land located in Lakemoor, IL (Chicago MSA) which was simultaneously ground leased to an experienced multi-family operator Purchase Price $ 9,300,000 § The land is improved by a class A 496 unit garden style Year 1 Base Rent
Slide 26: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial § In June 2016, acquired a distribution facility in El Paso, TX net leased to Toro Co (NYSE: TTC) Purchase Price $23,695,000 Mortgage (1) ($15,000,000) § Toro is a global developer, manufacturer and distributor of Net Equity Invested $ 8,695,000 lawn and landscape
Slide 27: 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 aggregating $12.85 million with a Office Depot in a sale leaseback 10 year term at an interest rate of 4.35% secured by the transaction properties with extended leases § The 10 year orig
Slide 28: Releasing Case Study – Office Depot
Releasing Case Study – Office Depot § Dark and paying Office Depot site located in Kennesaw, GA (Atlanta MSA) § The building is 32,138 SF on 3.3 acres of land § In December 2015, simultaneously negotiated a lease termination with Office Depot (obtaining a $950,000 early termination fee) and entered
Slide 29: Top Tenants’ Profiles
eS PROPERTIES, INC. TOP TENANTS’ PROFILES ——=
Slide 30: Havertys Furniture – Tenant Profile
Havertys Furniture – Tenant Profile § Tenant: Haverty Furniture Companies, Inc. § 11 properties aggregating 611,930 SF (NYSE:HVT) – Duluth (Atlanta), GA § Represents 6.7% of contractual rental income – Fayetteville (Atlanta), GA § Full service home furnishings retailer founded in – Wichita, KS 1885
Slide 31: LA Fitness – Tenant Profile
LA Fitness – Tenant Profile § Tenant: LA Fitness International LLC Representative LA Fitness – Secaucus, NJ § Represents 4.5% of contractual rental income § Building: 44,863 SF on 1.23 acres § LA Fitness currently operates over 800 clubs in 21 § 3 Mile Demographics (Source: Sites USA 2016) states –
Slide 32: Northern Tool & Equipment – Tenant Profile
Northern Tool & Equipment – Tenant Profile § Tenant: Northern Tool & Equipment § Location: 1850 Banks Road, Fort Mill, SC § Represents 4.0% of contractual rental income § Building: 701,595 SF on 40 acres § Distributor and retailer of industrial grade and personal use power § 3 Mile Demographics (Sou
Slide 33: Regal Entertainment Group – Tenant Profile
Regal Entertainment Group – Tenant Profile § Tenant: Regal Entertainment Group (NYSE: RGC) § 3 properties aggregating 150,520 SF § Represents 3.7% of contractual rental income § % of Contractual Rental Income § Currently the largest American theater chain. The second – Indianapolis, IN 1.0% largest
Slide 34: Ferguson Enterprises – Tenant Profile
Ferguson Enterprises – Tenant Profile § Tenant: Ferguson Enterprises, Inc. § Location: 4501 Hollins Ferry Rd, Baltimore MD § Represents 3.6% of contractual rental income § 5 miles south of downtown Baltimore § One of the largest United States distributors of plumbing § Building: 367,000 SF on 28 acr
Slide 35: GAAP Reconciliation
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: For the Six Months Ended June 30 For the Years Ended December 31, 2016 2015 2014 2013 2012 GAAP net income attributable to One Liber
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