One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (March 2015)

36 slides from One Liberty Properties's investor presentation, March 2015

  1. Slide 1: One Liberty Properties

    One Liberty Properties March 2015 onelibertyproperties.com

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement Certain information contained in this presentation, together with other statements and information publicly disseminated by One Liberty Properties, Inc. (the “Company”), constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as am

  3. Slide 3: OLP Investment Highlights

    OLP INVESTMENT HIGHLIGHTS Stockholder return & dividend Disciplined track record through economic cycles Focus on real estate fundamentals Active portfolio management Experienced management team 3

  4. Slide 4: 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

  5. Slide 5: Stockholder Return (5-Year)

    Stockholder Return 5-Year Annualized Total Return 31.2% 35% 30% 25% 16.9% 15.5% 20% 15% 10% 5% 0% OLP NAREIT Equity Index S&P 500 5

  6. Slide 6: Stockholder Return (10-Year)

    Stockholder Return 10-Year Annualized Total Return 9.2% 10% 8.3% 7.7% 8% 6% 4% 2% 0% OLP NAREIT Equity Index S&P 500 6

  7. Slide 7: Growth in Operations

    Growth in Operations Historical FFO Per Share (1) $1.80 $1.75 Historical AFFO Per Share (1) $1.90 $1.70 $1.84 $1.66 $1.80 $1.61 $1.75 $1.59 $1.60 $1.70 $1.65 $1.50 $1.60 $1.56 2011 2012 2013 2014 $1.50 2011 2012 2013 2014 (1) A reconciliation of net income per diluted share, as determined in accorda

  8. Slide 8: Dividend Growth

    Dividend Growth $1.50 $1.50 $1.45 $1.42 $1.40 $1.34 $1.35 $1.32 $1.30 82.0% FFO 84.3% FFO 85.5% FFO 85.7% FFO 84.6% AFFO 81.2% AFFO 81.1% AFFO 81.5% AFFO Payout Payout Payout Payout $1.25 2011 2012 2013 2014 8

  9. Slide 9: Financial & Portfolio Summary

    Financial & Portfolio Summary Number of Properties (1): 114 Square Footage (1): 6.7 million Current Occupancy (1): 98% + Total Enterprise Value (2): $676 million Shares Outstanding at 12/31/14: 16.2 million Current Annualized Dividend: $1.56 Dividend Yield (3): 6.4% (1) As of 2/28/15 and includes fi

  10. Slide 10: Steady Revenue Growth

    Steady Revenue Growth Total Revenue (1) $65 $60.5 (2) $60 $55 $51.0 $50 ($ in millions) $43.8 $45 $40.9 $40 $36.7 $35.2 (2) $35 $30 $25 $20 2009 2010 2011 2012 2013 2014 (1) Total revenue is all tenant related revenue, including straight-line rent accruals and amortization of intangibles (2) Include

  11. Slide 11: Stable Occupancy

    Stable Occupancy (1) 100.0% 100.0% 99.6% 99.0% 98.9% 98.8% 98.6% 98.0% 98.1% 90.0% 2007 2008 2009 2010 2011 2012 2013 2014 (1) As at December 31 and includes our unconsolidated joint ventures 11

  12. Slide 12: 115 Properties in 30 States

    115 properties in 30 states (1) Highest State Concentration by 2015 Contractual Rental Income (1) Number of 2015 Contractual % of 2015 Contractual State Properties Rental Income Rental Income Texas 12 $ 6,228,419 11.4% New York 9 $ 5,619,775 10.2% Georgia 14 $ 4,607,686 8.4% Pennsylvania 10 $ 4,573,

  13. Slide 13: Diversified Portfolio

    Diversified Portfolio % of 2015 Number of 2015 Contractual Contractual Type of Property Properties Rental Income (1) Rental Income Retail – General 45 $ 15,429,355 28.1% – Furniture 14 $ 5,808,162 10.6% – Restaurant 19 $ 3,691,503 6.7% – Office Supply 8 $ 3,100,631 5.7% – Supermarket 3 $ 2,818,230 5

  14. Slide 14: Diversified Tenant Base

    Diversified Tenant Base Top Tenants 2015 % of 2015 Number of Contractual Contractual Tenant Properties Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,568,723 8.3% Office Depot, Inc. (NYSE: ODP) 8 $ 3,100,631 5.7% LA Fitness International, LLC 3 $ 3,054,922 5.6% Nort

  15. Slide 15: Lease Expirations

    Lease Expirations % of 2015 Contractual 2015 Contractual Rental Income Approximate Square % of Square Feet Year Ending Number of Rental Income Under Represented by Feet Subject To Represented by December 31, Leases Expiring Leases Expiring Leases Expiring Leases Expiring Leases Expiring 2015 8 $ 1,7

  16. Slide 16: Acquisition Track Record

    Acquisition Track Record  Acquired $56.8 million of properties in 2014 and $107.5 million of properties in 2013  Current pipeline of diverse opportunities in excess of $250 million  Transactions sourced through relationships, developers, partners and brokers Acquisitions Per Year $120 $107.5 $100

  17. Slide 17: Recent Acquisitions

    Recent Acquisitions GAAP Financing Date Property Lease Purchase Yield Information Acquired Type Tenant (or d/b/a) City State Expiration Price (1) (at time of purchase) 05/31/2015 - 02/25/2015 Shopping Center Club USA, Chase, Tile Shop, etc. Lakewood CO $ 17,485,000 7.3% (2) $11,853,000 mortgage 12/3

  18. Slide 18: Recent Mortgages

    Recent Mortgages Date Property Mortgage Mortgage Interest Financed Type Tenant (or d/b/a) City State Amount Maturity Rate 02/25/2015 Shopping Center Club USA, Chase, The Tile Shop, etc. Lakewood CO $ 11,852,750 02/25/2025 4.12% 02/10/2015 Industrial Progressive Converting New Hope MN $ 4,450,000 03/

  19. Slide 19: Acquisition Case Study – Ground Lease

    Acquisition Case Study – Ground Lease • In June 2014, acquired 14.35 acres of land Purchase Price $ 6,510,000 located in Sandy Springs, GA which was simultaneously ground leased to an Year 1 Ground Rent to OLP $ 585,913 experienced multi-family operator Return on Equity 9.00% • The land is improved

  20. Slide 20: Acquisition Case Study – Retail

    Acquisition Case Study – Retail • In May 2014, acquired a retail property in Woodbury, MN leased to Hobby Lobby, Purchase Price $4,770,000 Inc. Mortgage (1) ($3,200,000) Net Equity Invested $1,570,000 • The property is located 18 miles east of Minneapolis and 8 miles east of St. Paul Year 1 Rental I

  21. Slide 21: Acquisition Case Study – Industrial

    Acquisition Case Study – Industrial  Acquired a distribution facility in New Hope Purchase Price $7,200,000 (Minneapolis), MN in November 2014, net Mortgage (1) ($4,450,000) leased to Progressive Converting, Inc. $2,750,000 Net Equity Invested  Progressive Converting, Inc. is the largest Year 1 Re

  22. Slide 22: Acquisition Case Study – Disposition

    Acquisition Case Study – Disposition  Acquired, through a JV, a vacant Home Depot Purchase Price $ 5,800,000 in Cherry Hill, NJ in October 2011 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 acres of land  Si

  23. Slide 23: Balance Sheet Information

    Balance Sheet Information Gross Assets : (1) $667.0 million Total Debt/Gross Assets : (2) 47.1% Fixed Rate Debt : (3) 95.8% Debt Service Coverage Ratio : (4) 2.2 Fixed Charge Coverage Ratio : (4) 3.2 FFO Payout : (5) 85.7% • Liquidity available to acquire in excess of $200 million of properties as o

  24. Slide 24: Laddered Mortgage Debt Maturities

    Laddered Mortgage Debt Maturities (1)  Weighted average interest rate of 5.02% on fixed rate debt  There is approximately $7.1 million ($0.44 per share) of scheduled amortization of mortgages for the 12 months ending December 31, 2015 Balloon Payments Due For the Twelve Months Ending December 31,

  25. Slide 25: Top Tenants Profiles

    TOP TENANTS PROFILES 25

  26. Slide 26: Havertys Furniture – Tenant Profile

    Havertys Furniture – Tenant Profile  Tenant: Haverty Furniture Companies, Inc. (NYSE:HVT)  11 properties aggregating 612,130 SF  Represents 8.3% of 2015 contractual rental income – Duluth (Atlanta), GA  Full service home furnishings retailer founded in 1885 – Fayetteville (Atlanta), GA  Public

  27. Slide 27: Representative Havertys – Cedar Park (Austin), TX

    Representative Havertys – Cedar Park (Austin), TX  Building: 50,810 SF on 5.27 acres. Built in 2001. Havertys has operated at this location for more than 14 years.  3 Mile Demographics (Source: Sites USA, 2015) – Population: 84,938 – Average HH Income: $87,654  Location: 11091 Pecan Park Blvd, Ce

  28. Slide 28: Representative Havertys – Richmond, VA

    Representative Havertys – Richmond, VA  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: Sites USA, 2015) – Population: 55,421 – Average HH Income: $107,126  Location:

  29. Slide 29: Office Depot – Tenant Profile

    Office Depot – Tenant Profile  Tenant: Office Depot, Inc. (NYSE: ODP)  8 properties representing 206,483 SF  Represents 5.7% of 2015 contractual rental income % of 2015 Contractual Rental Income  Leading global provider of office products and services – Chicago, IL: 1.1%  The combined entity ha

  30. Slide 30: 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: Sites USA, 2015) – Population: 545,577 – Average HH Income: $95,515  Location: 2928 N. Ashland Ave, Chicago

  31. Slide 31: Representative Office Depot – Cary, NC

    Representative Office Depot – Cary, NC  Building: 33,490 SF on 2.68 acres. Built in 1995. Office Depot has operated at this location for more than 20 years.  3 Mile Demographics (Source: Sites USA, 2015) – Population: 66,487 – Average HH Income: $77,322  Location: 2011 Walnut Street, Cary, NC; 5

  32. Slide 32: LA Fitness – Tenant Profile

    LA Fitness – Tenant Profile Representative LA Fitness – Secaucus, NJ  Tenant: LA Fitness International LLC  Building: 44,863 SF on 1.229 acres  Represents 5.6% of 2015 contractual rental income  3 Mile Demographics (Source: Sites USA 2015)  LA Fitness currently operates over 500 clubs in 21 sta

  33. Slide 33: Northern Tool & Equipment – Tenant Profile

    Northern Tool & Equipment – Tenant Profile  Tenant: Northern Tool & Equipment  Location: 1850 Banks Road, Fort Mill, SC  Represents 4.9% of 2015 contractual rental income  Building: 701,595 SF on 40 acres  A large United States distributor of industrial grade and  3 Mile Demographics (Source:

  34. Slide 34: Ferguson Enterprises – Tenant Profile

    Ferguson Enterprises – Tenant Profile  Tenant: Ferguson Enterprises, Inc.  Location: 4501 Hollins Ferry Rd, Baltimore MD  Represents 4.5% of 2015 contractual rental income  5 miles south of downtown Baltimore  One of the largest United States distributors of plumbing  Building: 367,000 SF on 2

  35. Slide 35: GAAP Reconciliation

    GAAP Reconciliation The following table provides a reconciliation of net income per common share (on a diluted basis) in accordance with GAAP to FFO and AFFO: 2014 2013 2012 2011 Net income $ 1.37 $ 1.14 $ 2.16 $ 0.96 Add: depreciation of properties 0.89 0.77 0.66 0.66 Add: our share of depreciation

  36. Slide 36: OLP Investment Highlights

    OLP INVESTMENT HIGHLIGHTS Stockholder return & dividend Disciplined track record through economic cycles Focus on real estate fundamentals Active portfolio management Experienced management team 36

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