One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (October 2016)

35 slides from One Liberty Properties's investor presentation, October 2016

  1. Slide 1: Investor Presentation October 2016

    INVESTOR PRESENTATION OCTOBER 2016 onelibertyproperties.com

  2. 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

  3. 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

  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 CalPERS that Patrick J. Callan, Jr. controlled 100 shopping centers (13 million square feet) whi

  6. Slide 6: Attractive Portfolio Fundamentals

    Attractive Portfolio Fundamentals(1) Total Square Footage 10.1 M Number of Properties 120 Current Occupancy 98.3% Northern Tool – Fort Mill, SC (Charlotte MSA) Contractual Rental Income (2) $68.5 M Lease Term Remaining 8.4 Years Regal Cinemas (d/b/a United Artists) – Indianapolis, IN (1) Information

  7. Slide 7: Portfolio Detail

    Portfolio Detail Number of Contractual Rental % of Contractual Type of Property Properties Income (1) Rental Income Retail – General 44 $ 19,955,579 29.1% – 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

  8. 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

  9. Slide 9: Diversified Tenant Base

    Diversified Tenant Base % of Top Tenants Number of Contractual Contractual Locations 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:

  10. 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

  11. 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

  12. 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 $1.80 $1.75 $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.

  13. 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

  14. 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

  15. Slide 15: Lease Maturity Profile

    Lease Maturity Profile Contractual % of Contractual Rental Approximate Square 12 Months Ending Number of Rental Income Under Income Represented by Feet 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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 Ne

  21. Slide 21: Disposition Case Study

    Disposition Case Study  In March 2005, acquired a manufacturing Purchase Price $ 9,680,000 facility in Philadelphia, PA leased to Sweet Sale Price $14,800,000 Ovations for $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

  22. Slide 22: Acquisition Case Study – Short Term Lease

    Acquisition Case Study – Short Term Lease  In June 2014, acquired via short term sale Purchase Price $11,650,000 leaseback a distribution warehouse in Joppa, Year 1 Base Rent for Prior Tenant $905,485 MD through a consolidated JV Year 1 Return on Equity 7.77%  Simultaneously net leased to Noxell C

  23. 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

  24. Slide 24: Appendix

    ONE UBERTY PROPERTIES, INC. APPENDIX 24

  25. 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 Year 1 Base Rent $ 1,102,319  The land is improved by a class A 496 unit g

  26. 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 Net Equity Invested $ 8,695,000 distributor of lawn and landscape

  27. 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 Office Depot in a sale leaseback with a 10 year term at an interest rate of 4.35% secured transaction by the properties with extended leases  The 10 year orig

  28. 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

  29. Slide 29: Top Tenants’ Profiles

    TOP TENANTS’ PROFILES 29

  30. 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

  31. 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 –

  32. 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  3 Mile Demographics (Source: S

  33. Slide 33: Regal Entertainment Group – Tenant Profile

    Regal Entertainment Group – Tenant Profile  Tenant: Regal Entertainment Group (NYSE: RGC)  3 locations aggregating 150,520 SF  Represents 3.7% of contractual rental income  % of Contractual Rental Income  Currently the largest American theater chain. The – Indianapolis, IN 1.0% second largest c

  34. 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  Building: 367,000 SF on 28 acres plumbi

  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: 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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