One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (January 2018)

35 slides from One Liberty Properties's investor presentation, January 2018

  1. Slide 1: Investor Presentation January 2018

    INVESTOR PRESENTATION JANUARY 2018 onelibertyproperties.com

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS DESCRIPTION PAGE DESCRIPTION PAGE Table of Contents 2 Recent Mortgages 21 Safe Harbor Disclosure 3 Case Studies: Company Overview 4 Acquisition – Des Moines, IA 22 Experienced Management Team 5 Disposition – Greenwood Village, CO 23 Attractive Portfolio Fundamentals 6 Summary 24 Po

  3. Slide 3: Safe Harbor

    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 differ m

  4. 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

  5. Slide 5: Experienced Management Team

    EXPERIENCED MANAGEMENT TEAM  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) whi

  6. Slide 6: Attractive Portfolio Fundamentals

    ATTRACTIVE PORTFOLIO FUNDAMENTALS (1) Total Square Footage 10.4 M Number of Properties 119 Current Occupancy 98.0% Forbo – Charlotte, NC 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 unconsol

  7. Slide 7: Portfolio Detail

    PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income(1) 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 3,528,262

  8. Slide 8: Diversified Portfolio

    DIVERSIFIED PORTFOLIO Highest State Concentration by Contractual Rental Income Number of Contractual % Contractual  Geographically diverse footprint State Properties Rental Income Rental Income Texas 12 $8,741,749 12.5% South Carolina 6 5,622,613 8.0  Own 119 properties in 31 states New York 8 5,2

  9. Slide 9: Diversified Tenant Base

    DIVERSIFIED TENANT BASE % of Number of Contractual Contractual Top Tenants Locations Rental Income 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 (NYSE:

  10. Slide 10: Financial Summary

    FINANCIAL SUMMARY Market Cap(1) $487.5 M Shares Outstanding(1) 19.0 M Insider Ownership(2) 23.0% Power Distributors / Keystone Automotive – Des Moines, IA Current Annualized Dividend $1.80 Dividend Yield(3) 7.0% (1) Market cap is calculated using the shares outstanding and the closing OLP stock pric

  11. Slide 11: Targeting Long Term Total Return

    TARGETING LONG TERM TOTAL RETURN Consistent driver of long term stockholder value 10-Year Annualized Total Return(1) 12% 10.9% 10% 8% 7.3% 6% 5.8% 4% 2% 0% OLP S&P 500 NAREIT Equity Index (1) Performance period ended September 30, 2017 11

  12. Slide 12: Growth in Operations

    GROWTH IN OPERATIONS (1) Historical FFO Per Share(2) $2.00 $1.97(3) $1.90 Dividend Growth Per Share $1.80 $1.75(3) $1.80 $1.60 $1.66 $1.44 $1.40 $1.60 $1.58 $1.50 $1.20 80% FFO 2014 2015 2016 2017 Payout Ratio(4) $1.40 Historical AFFO Per Share (2) 86% $2.10 FFO $1.29 $1.99 Payout $1.92 Ratio(4) $1.

  13. Slide 13: Growth Oriented Balance Sheet

    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%  Liquidity available to acquire in excess of an estimated $150

  14. Slide 14: Laddered Mortgage Debt Maturities

    LADDERED MORTGAGE DEBT MATURITIES AS AT SEPTEMBER 30, 2017(1)  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 for the twelve months ending September 30, 2018 Balloon Payments Due For the Twelve

  15. Slide 15: Lease Maturity Profile

    LEASE MATURITY PROFILE % of Contractual Number of Contractual Rental Income Approximate Square 12 Months Ending Expiring Rental Income Under Represented by Feet Subject to Expiring September 30, Leases Expiring Leases Expiring Leases Leases 2018 23 $ 2,731,908 3.9% 455,005 2019 26 4,064,050 5.8 561,

  16. Slide 16: Consistent Operational Performance: Occupancy

    CONSISTENT OPERATIONAL PERFORMANCE Stable Occupancy(1)(2) At September 30, 2017: Occupancy 98.0% 100.0% 100.0% 99.0% 99.6% 98.9% 98.8% 98.6% 98.3% 98.0% 98.1% 97.3% 90.0% 80.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 (1) As at December 31 (2) Based on square footage, including our unconsol

  17. Slide 17: Consistent Operational Performance: Rental Income

    CONSISTENT OPERATIONAL PERFORMANCE Strong Rental Income Growth(1)(2) For the 9 Months Ended September 30, 2017(2): Total Rental Income $50.8 million $65 $64.2 $60 $59.0 $56.6 $55 ($ in millions) $50 $49.3 $45 $44.4 $42.8 $41.4 $40 $35 2010 2011 2012 2013 2014 2015 2016 (1) As at December 31 (2) Incl

  18. Slide 18: Acquisition Track Record

    ACQUISITION TRACK RECORD  Acquired $43.2 million of properties through December 31, 2017  Current pipeline of diverse opportunities in excess of $225.0 million Acquisitions per Year $118.6 $120 $107.5 $100 $95.2(1) $80 ($ in millions) $60 $56.8 $44.6 $43.2 $40 $29.6(1) $20 $0 2011 2012 2013 2014 2

  19. Slide 19: Recent Acquisitions

    RECENT ACQUISTIONS Current Purchase Financing Info Date Property Lease Price (at time of purchase) Acquired Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) Yield(1) (in ‘000s) Dufresne Spencer Group 10/10/17 Industrial Memphis TN 10/09/27 $ 8,000 7.8% All cash Holdings Power Distributors/Keys

  20. Slide 20: Recent Dispositions

    RECENT DISPOSITIONS Gross Sales Net Gain Date Property Price (Loss) Date Sold Acquired Type Tenant (or d/b/a) MSA State (in ‘000s) (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 $1,08

  21. Slide 21: Recent Mortgages

    RECENT MORTGAGES Date Property Amount Mortgage Interest Financed Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity 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% 05/

  22. Slide 22: Acquisition Case Study - Industrial

    ACQUISITION CASE STUDY - INDUSTRIAL  In June 2017, acquired a multi-tenant distribution Purchase Price $14,700,000 facility in Des Moines, IA net leased to Power Mortgage(1) (8,820,000) Distributors and Keystone Automotive. Net Equity Invested $5,880,000  Power Distributors is a distributor of out

  23. Slide 23: Disposition Case Study

    DISPOSITION CASE STUDY  In April 1996, acquired a net leased retail Purchase Price $ 4,040,000 property in Greenwood Village (Denver Sales Price 9,500,000 MSA), CO leased to Gart Bros. Sporting Goods Company for $4.0 million Internal Rate of Return to OLP 19.57% » 11 miles southeast of downtown Den

  24. Slide 24: 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 24

  25. Slide 25: Appendix

    APPENDIX

  26. Slide 26: Acquisition Case Study – Ground Lease

    ACQUISITION CASE STUDY – GROUND LEASE  In August 2016, acquired 8 acres of land in Purchase Price $13,896,000 Beachwood, OH, a wealthy suburb of Cleveland Year 1 Base Rent 1,450,633 » Simultaneously ground leased to an experience multi-family operator Return on Equity 10.44% » Land is improved by a

  27. Slide 27: Acquisition Case Study – Industrial

    ACQUISITION CASE STUDY – INDUSTRIAL  In June 2016, acquired a distribution facility in Purchase Price $23,695,000 El Paso, TX, net leased to Toro Co (NYSE: TTC) Mortgage(1) (15,000,000) » Toro is global developer, manufacturer and Net Equity Invested $ 8,695,000 distributor of lawn and landscape eq

  28. Slide 28: Blend & Extend Case Study – Office Depot

    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 at

  29. Slide 29: Top Tenants' Profiles

    © ONE LIBERTY PROPERTIES, INC. TOP TENANTS’ PROFLES

  30. Slide 30: Havertys Furniture – Tenant Profile

    HAVERTYS FURNITURE – TENANT PROFILE  Tenant: Haverty Furniture Companies, Inc. (NYSE:  11 properties aggregating 611,930 SF HVT) (Source: Tenant’s website) – Duluth (Atlanta), GA » Full service home furnishing retailer founded in 1885 – Fayetteville (Atlanta), GA » Public company since 1929 – Wich

  31. Slide 31: LA Fitness – Tenant Profile

    LA FITNESS – TENANT PROFILE  Tenant: LA Fitness International LLC (Source: Tenant’s website)  Representative: LA Fitness – Secaucus, NJ » Currently operates over 800 clubs in 21 states » Building: 44,863 SF on 1.23 acres of land » Founded in 1984 and is headquartered in Irvine, » 3 Mile Demographi

  32. Slide 32: Northern Tool & Equipment – Tenant Profile

    NORTHERN TOOL & EQUIPMENT – TENANT PROFILE  Tenant: Northern Tool & Equipment (Source: Tenant’s website)  Location: 1850 Banks Road, Fort Mill, SC » Distributor and retailer of industrial grade and » Building: 701,595 SF on 40.0 acres of land personal use power tools and equipment » 3 Mile Demogra

  33. Slide 33: Regal Entertainment Group – Tenant Profile

    REGAL ENTERTAINMENT GROUP – TENANT PROFILE  Tenant: Regal Entertainment Group (NYSE:  3 locations represents 3.6% of contractual rental RGC)(Source: Tenant’s website) income and 150,250 SF » Brands include: Regal Cinemas, Edward Theaters % of Contractual Rental Income and United Artists Theaters –

  34. Slide 34: Office Depot – Tenant Profile

    OFFICE DEPOT – TENANT PROFILE  Tenant: Office Depot, Inc. (NYSE: ODP)  7 properties represents 3.5% of contractual rental (Source: Tenant’s website) income and 174,431 SF » Leading global provider of office products and % of Contractual Rental Income services – Chicago, IL: 0.8% » Operates more th

  35. 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 9 Months Ended September 30, Years Ended December 31, 2017 2016 2015 2014 2013 GAAP net income attributable to One Liberty Properties

One Liberty Properties — Investor Presentation (January 2018) on 6ix