One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (December 2019)
38 slides from One Liberty Properties's investor presentation, December 2019
Slide 1: Investor Presentation December 2019
INVESTOR PRESENTATION DECEMBER 2019 onelibertyproperties.com ◆ 1
Slide 2: Table of Contents
TABLE OF CONTENTS DESCRIPTION PAGE DESCRIPTION PAGE Table of Contents 2 Recent Dispositions 21 Safe Harbor Disclosure 3 Recent Mortgages 22 Company Overview 4 Case Studies: Experienced Management Team 5 Acquisition – Nashville, TN 23 Attractive Portfolio Fundamentals 6 Acquisition – St. Louis, MO 24
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 ma
Slide 4: Company Overview
COMPANY OVERVIEW Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy - emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership ◆ 4
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
Slide 6: Attractive Portfolio Fundamentals
ATTRACTIVE PORTFOLIO FUNDAMENTALS (1) Total Square Footage 10.5 M Number of Properties 126 Current Occupancy 96.5% Transcendia – Greenville, SC Contractual Rental income(2) $72.7 M Lease Term Remaining 6.7 Years (1) Information presented as of September 30, 2019, including four properties owned by u
Slide 7: Portfolio Detail
PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income Rental Income Industrial 42 $35,236,171 48.5% Retail – General 37 15,289,030 21.0 – Furniture 14 6,227,331 8.6 – Supermarket 3 2,458,515 3.4 – Office Supply 5 1,972,685 2.7 Restaurants 17 3,533,075 4.9
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 New York 8 $6,239,040 8.6% South Carolina 7 6,041,445 8.3 Own 126 properties in 31 states Texas 11 6,02
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 $ 4,842,846 6.7% LA Fitness International, LLC 3 3,181,671 4.4 Northern Tool & Equipment 1 2,894,809 4.0 L3 Technologies, Inc. (NYSE: LHX)
Slide 10: Financial Summary
FINANCIAL SUMMARY (1) Market Cap $540.4M (1) Shares Outstanding 19.9M (2) Insider Ownership 21.4% Applied Control Equipment – Denver, CO Current Annualized Dividend $1.80 (2) Dividend Yield 6.6% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $27.12 at No
Slide 11: Targeting Long Term Total Return
TARGETING LONG TERM TOTAL RETURN Consistent driver of long-term stockholder value 25% 10- YEAR ANNUALIZED TOTAL STOCKHOLDER RETURN(1) 20.1% 20% 15% 13.2% 13.0% 10% 5% 0% OLP NAREIT Equity Index S&P 500 (1) Performance period ended September 30, 2019 ◆ 11
Slide 12: Growth in Operations
GROWTH IN OPERATIONS(1) Historical FFO Per Share (2) Historical AFFO Per Share (2) $2.02(3) $2.20 $2.13 $2.00 $1.97(3) $2.09 $1.90 $1.94 $1.99 $2.00 $1.80 $1.92 $1.80 $1.60 $1.40 $1.60 2015 2016 2017 2018 2015 2016 2017 2018 FFO Payout (4) AFFO Payout (4) For the Nine Months Ended 2015 80% 2015 82%
Slide 13: Growth in Operations: Dividend per Share
GROWTH IN OPERATIONS(1) DIVIDEND PER SHARE Current Annualized Dividend: $1.80 $1.80 $1.80 $1.74 $1.66 $1.60 $1.58 $1.40 $1.20 $1.00 2015 2016 2017 2018 (1) For the years ended December 31 ◆ 13
Slide 14: Growth Oriented Balance Sheet
GROWTH ORIENTED BALANCE SHEET AS AT SEPTEMBER 30, 2019 Gross Assets(1) $918.6 M Total Debt/Gross Assets(2) 51.2% Fixed Rate Debt 95.9% Debt Service Coverage Ratio(3) 2.1 to 1.0 Fixed Charge Coverage Ratio(3) 1.8 to 1.0 AFFO Payout Ratio 92.5% Liquidity available to acquire in excess of an estimate
Slide 15: Mortgage Debt Maturities
MORTGAGE DEBT MATURITIES AS AT SEPTEMBER 30, 2019 (1) Weighted average interest rate of 4.25% on fixed rate debt There is approximately $13.4 million ($0.67 per share) of scheduled amortization of mortgages for the twelve months ending September 30, 2020 BALLOON PAYMENTS DUE FOR THE TWELVE MONTH
Slide 16: 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 2020 7 $ 575,835 0.8% 57,702 2021 20 2,670,795 3.7 390,504
Slide 17: Stable Occupancy
(1)(2) STABLE OCCUPANCY At September 30, 2019: Occupancy – 96.5% 100.0% 99.6% 99.3% 99.0% 98.9% 98.8% 98.6% 98.3% 98.1% 97.8% 97.3% 90.0% 80.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (1) As at December 31 (2) Based on square footage, including 100% our unconsolidated joint ventures ◆ 17
Slide 18: Strong Rental Income Growth
STRONG RENTAL INCOME GROWTH(1)(2)(3) $85 As of the Nine Months Ended September 30, 2019: $78.8 Rental Income, net - $62.3M $75.9 $75 $70.6 $65 $62.8 ($ in millions) $59.2 $55 $51.0 $45 $43.8 $35 2012 2013 2014 2015 2016 2017 2018 (1) As at December 31 (2) Includes straight-line rent accruals and amo
Slide 19: Acquisition Track Record
ACQUISITION TRACK RECORD Current acquisitions of $49.3 million through November 20, 2019 Current pipeline of diverse opportunities in excess of $225.0 million ACQUISITIONS PER YEAR $118.6 $120 $107.5 (1) $100 $95.2 $79.5 $80 ($ in millions) $60 $56.8 $44.6 $43.2 $40 $20 $0 2012 2013 2014 2015 20
Slide 20: Recent Acquisitions
RECENT ACQUISITIONS Current Purchase Financing at Date Property Lease Price purchase Acquired Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) Yield(1) (in ‘000s) 10/23/19 Industrial The Door Mill Phoenix AZ 06/30/24 $ 3,000 7.3% All cash 10/03/19 Industrial Cosentino North America Savannah GA
Slide 21: Recent Dispositions
RECENT DISPOSITIONS Gross Sales Net Gain Date Date Property Price (Loss) Sold Acquired Type Tenant (or d/b/a) MSA State (in ‘000s) (in ‘000s) 10/21/19 06/30/98 Retail Aaron’s Inc. Houston TX $ 1,675 $ 218 08/29/19 08/02/16 Other The Briarbrook Apartments Wheaton IL $12,035 $1,499 08/23/19 05/19/04 O
Slide 22: Recent Mortgages
RECENT MORTGAGES Date Property Amount Mortgage Interest Financed Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 10/29/19 Industrial Nissan North America, Inc. Troup County GA $ 3,200 12/01/28 4.00% 10/11/19(1) Industrial Mitsubishi Electric Power Products New York NY $ 2,599 09/10/24 3.49
Slide 23: Acquisition Case Study – Zwanenberg Food & Metro Carpet
ACQUISITION CASE STUDY – INDUSTRIAL ZWANENBERG FOOD & METRO CARPET In May 2019, acquired a two tenant industrial Purchase Price $ 8,000,000 warehouse facility in Nashville, TN. Mortgage(1) (5,200,000) The 99,500 SF property is net leased to Net Equity Invested $ 2,800,000 Zwanenberg Food Group a
Slide 24: Acquisition Case Study – Dufresne Spencer Group
ACQUISITION CASE STUDY – INDUSTRIAL DUFRESNE SPENCER GROUP In December 2018, acquired a single tenant Purchase Price $10,000,000 industrial warehouse facility in St. Louis, MO. Mortgage(1) (6,400,000) The 119,680 SF property is net leased to Net Equity Invested $ 3,600,000 Dufresne Spencer Group
Slide 25: Acquisition Case Study – 21st Century & Novacart
ACQUISITION CASE STUDY – INDUSTRIAL 21st CENTURY & NOVACART In November 2018, acquired a two tenant Purchase Price $13,498,000 industrial warehouse facility in Moorestown, NJ. Mortgage(1) (8,825,000) The 219,881 SF property is net leased to 21st Century Cabinetry (86.8%) and Novacart, Inc. Net E
Slide 26: Disposition Case Study – Industrial
DISPOSITION CASE STUDY – INDUSTRIAL In August 2004, acquired a 50% interest in a net leased manufacturing campus in South Purchase Price (50% interest) $ 6,250,000 Milwaukee, WI leased to Bucyrus International, Gross Sales Price (50% interest) 6,637,500 Inc. for $6.25 million. » 10 miles south of
Slide 27: Blend & Extend Case Study – L3 Technologies
BLEND & EXTEND CASE STUDY – L3 TECHNOLOGIES In December 2000, acquired a 149,870 SF flex Loan Refinance Terms: warehouse located in Hauppauge, NY for $13.65 million. Mortgage Amount: $26,870,000 The property has been continuously Interest Rate: 4.35% occupied by L3 Technologies, Inc. (NYSE: LHX)
Slide 28: Summary - Why OLP?
SUMMARY - WHY OLP? Fundamentals – focused real estate company Disciplined track record over various economic cycles Active net lease strategy - emphasis on industrial properties Experienced management team Alignment of interests - significant insider ownership ◆ 28
Slide 29: Appendix
ONE LIBERTY PROPERTIES, INC. APPENDIX
Slide 30: Top Tenants' Profiles
ONE LIBERTY PROPERTIES, INC. TOP TENANTS’ PROFILES
Slide 31: 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
Slide 32: 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 700 clubs in 21 states » Location: 485 Harmon Meadow Blvd, Secaucus, NJ; 4 miles west of Manhattan » Founded in 1984 and is headquartere
Slide 33: 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
Slide 34: L3 Technologies – Tenant Profile
L3 TECHNOLOGIES – TENANT PROFILE Tenant: L3 Technologies, Inc. Location: 435 Moreland Road, Hauppauge, NY (Source: Tenant’s website) » US based defense technology company » Building: 201,614 SF on 12.4 acres » On June 29, 2019, L3 Technologies and Harris » 3 Mile Demographics (Source: Applied Ge
Slide 35: Regal Entertainment Group – Tenant Profile
REGAL ENTERTAINMENT GROUP – TENANT PROFILE Tenant: Regal Entertainment Group (Source: Tenant’s website) 3 locations represents 3.5% of contractual rental » On February 27, 2018 Cineworld (LSE: CINE) income and 150,520 SF acquired Regal Entertainment Group for $3.6 % of Contractual Rental Income
Slide 36: GAAP Reconciliation
ONE LIBERTY PROPERTIES, INC. GAAP RECONCILIATION
Slide 37: 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, 2019 2018 2017 2016 2015 GAAP net income attributable to One Liberty Properties
Slide 38: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES One Liberty computes FFO in accordance with the “White Paper on Funds from Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT’s related guidance. FFO is defined in the White Paper as net income (calculated in accordance w
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