One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (April 2016)
39 slides from One Liberty Properties's investor presentation, April 2016
Slide 1: Investor Presentation April 2016
INVESTOR PRESENTATION APRIL 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 – Louisville, KY 20 Company Overview 4 Acq/Disp – Cherry Hill, NJ 21 Experienced Management Team 5 Acquisition – Joppa, MD 22 Attractive Portfolio Fundamentals 6 Tenant Pr
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 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 8.2 Million Property Type as a % Retail: 55.0% of income Industrial: 22.6% Other: 22.4% Number of Properties 112 Northern Tool – Fort Mill, SC Current Occupancy 98.3% Annualized Base Rent $60.0 M Lease Term 7.9 Years Remaining Office Depot –
Slide 7: Portfolio Detail
Portfolio Detail % of 2016 Number of 2016 Contractual Contractual Type of Property Properties Rental Income (1) Rental Income Retail – General 39 $ 18,371,426 30.6% – Furniture 14 5,821,981 9.7 – Restaurant 19 3,933,599 6.6 – Office Supply 7 2,430,407 4.1 – Supermarket 2 2,402,194 4.0 Industrial 19
Slide 8: Diversified Portfolio
Diversified Portfolio § Geographically diverse footprint with a concentration in the eastern United States § Own 112 properties in 30 states § Strong markets drive value Highest State Concentration by 2016 Contractual Rental Income (1) Number of 2016 Contractual % of 2016 Contractual State Propertie
Slide 9: Diversified Tenant Base
Diversified Tenant Base 2016 % of 2016 Top Tenants Number of Contractual Contractual Properties Rental Income Rental Income Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $ 4,568,723 7.6% LA Fitness International, LLC 3 3,075,583 5.1 Northern Tool & Equipment 1 2,737,608 4.6 Ferguson Enterprises,
Slide 10: Financial Summary
Financial Summary Market Cap : (1) $380.8 million Shares Outstanding : (1) 17.0 million Insider Ownership : (2) 23.4% Current Annualized Dividend: $1.64 Dividend Yield : (3) 7.3% LA Fitness – Secaucus, NJ (1) Market cap is calculated using the shares outstanding and the closing stock price of OLP at
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) 9.4% 10.0% 9.0% 7.4% 7.3% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% OLP NAREIT Equity Index S&P 500 (1) As of December 31, 2015 11
Slide 12: Growth In Operations
Growth In Operations Historical FFO Per Share(1) Historical AFFO Per Share(1) $1.97 $2.00 $1.92 $2.00 $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 $1.50 $1.60 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 Gross Assets (1) : $735.5 million Total Debt/Gross Assets (2) : 50.5% Fixed Rate Debt (3) : 95.1% Debt Service Coverage Ratio (4) : 2.3 to 1.0 Fixed Charge Coverage Ratio (4) : 2.1 to 1.0 FFO Payout (5) : 80.2% § Liquidity available to acquire in excess of an estimated
Slide 14: Laddered Mortgage Debt Maturities
Laddered Mortgage Debt Maturities(1) § Weighted average interest rate of 4.6% on fixed rate debt § There is approximately $8.8 million ($0.52 per share) of scheduled amortization of mortgages for the 12 months ending December 31, 2016 Balloon Payments Due For the Twelve Months Ending December 31 $16
Slide 15: Lease Maturity Profile
Lease Maturity Profile % of 2016 Contractual 2016 Contractual Rental Income Approximate Square Feet % of Square Feet Year Ending Number of Rental Income Under Represented by Subject To Represented by December 31, Expiring Leases Expiring Leases Expiring Leases Expiring Leases Expiring Leases 2016 16
Slide 16: Consistent Operational Performance
Consistent Operational Performance Stable Occupancy(1) 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 $65 $60.5 $60 ($ in millions) $51.0 $55 $50 $43.8 $40.9 $45 $36.7 $40 $35 $30 2010 2011 20
Slide 17: Acquisition Track Record
Acquisition Track Record § Acquired $95.2 million of properties in 2015 (1) § One hard contract expected to close in Q2 2016 for a total purchase price of approximately $14 million with an estimated GAAP yield of 7.9% (2) § Current pipeline of diverse opportunities in excess of $250 million Acquisit
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) 03/30/16 Industrial Multi tenant industrial Greenville SC 12/31/17-4/30/21 $17,050 7.7% All Cash 09/25/15 Industrial F
Slide 19: Recent Mortgages
Recent Mortgages Mortgage Amount Mortgage Interest Date Financed Property Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 03/11/16 (1) Supermarket Whole Foods West Hartford CT $18,000 04/01/28 3.38% 01/21/16 Industrial Fed Ex Tampa FL $ 2,500 12/05/25 3.57% 01/14/16 (1) Retail Avalon Carpe
Slide 20: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial § In March 2015, acquired a distribution facility in $4,400,000 Purchase Price Louisville, KY, net leased to Interline Brands, Inc. which (2,640,000) Mortgage (1) was acquired by The Home Depot, Inc. (NYSE: HD) Net Equity Invested $1,760,000 § Interline Brands is
Slide 21: Acquisition/Disposition Case Study
Acquisition/Disposition Case Study § In October 2011, acquired a vacant Home Depot in Purchase Price $ 5,800,000 Cherry Hill, NJ through a consolidated JV Improvements $ 4,746,000 Sale Price $16,300,000 § 6 miles east of downtown Philadelphia Internal Rate of Return to OLP 22.3% § The building is 11
Slide 22: Acquisition Case Study – Short Term Lease
Acquisition Case Study – Short Term Lease § In June 2014, acquired a distribution warehouse in Purchase Price $11,650,000 Joppa, MD through a consolidated JV Year 1 Base Rent for Prior Tenant $905,485 Year 1 Return on Equity 7.77% § Simultaneously net leased to Noxell Corp, a subsidiary of Proctor &
Slide 23: Tenant Profile – LA Fitness
Tenant Profile – LA Fitness § Tenant: LA Fitness International LLC Representative LA Fitness – Secaucus, NJ § Represents 5.1% of 2016 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 2015) stat
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
Slide 25: Appendix
ONE UBERTY PROPERTIES, INC. APPENDIX
Slide 26: Acquisitions Case Studies
ACQUISITIONS CASE STUDIES 26
Slide 27: 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 28: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial § In November 2014, acquired a distribution facility in New Hope, Purchase Price $7,200,000 MN (Minneapolis MSA) net leased to Progressive Converting, Mortgage (1) ($4,450,000) Inc. Net Equity Invested $2,750,000 § Progressive Converting is the largest paper conve
Slide 29: 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 30: 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 31: Top Tenants' Profiles
eS PROPERTIES, INC. TOP TENANTS’ PROFILES
Slide 32: 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 7.6% of 2016 contractual rental income – Fayetteville (Atlanta), GA § Full service home furnishings retailer founded in – Wichita, KS
Slide 33: 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 15 years. § 3 Mile Demographics (Source: Sites USA, 2015) - Population: 56,212 Average HH Income: $100,449 § Location: 11
Slide 34: Northern Tool & Equipment – Tenant Profile
Northern Tool & Equipment – Tenant Profile § Tenant: Northern Tool & Equipment § Location: 1850 Banks Road, Fort Mill, SC § Represents 4.6% of 2016 contractual rental income § Building: 701,595 SF on 40 acres § A large United States distributor of industrial grade § 3 Mile Demographics (Source: Site
Slide 35: Ferguson Enterprises – Tenant Profile
Ferguson Enterprises – Tenant Profile § Tenant: Ferguson Enterprises, Inc. § Location: 4501 Hollins Ferry Rd, Baltimore MD § Represents 4.1% of 2016 contractual rental income § 5 miles south of downtown Baltimore § One of the largest United States distributors of plumbing § Building: 367,000 SF on 2
Slide 36: Office Depot – Tenant Profile
Office Depot – Tenant Profile § Tenant: Office Depot, Inc. (NYSE: ODP) § 7 properties representing 174,431 SF § Represents 4.1% of 2016 contractual rental income % of 2016 Contractual Rental Income § Leading global provider of office products and services – Chicago, IL: 0.9% § The combined entity ha
Slide 37: 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 22 years. § 3 Mile Demographics (Source: Sites USA, 2015) - Population: 548,147 Average HH Income: $100,223 § Location: 2928 N. Ashland Ave, Chicago,
Slide 38: Portfolio / Financial Detail
PORTFOLIO / FINANCIAL DETAIL 38
Slide 39: 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 Years Ended December 31, 2015 2014 2013 2012 2011 GAAP net income attributable to One Liberty Properties, Inc. $ 1.22 $ 1.37
One Liberty Properties — Investor Presentation (April 2016) on 6ix