One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (August 2020)

37 slides from One Liberty Properties's investor presentation, August 2020

  1. Slide 1: Investor Presentation August 2020

    INVESTOR PRESENTATION AUGUST 2020 onelibertyproperties.com ◆ 1

  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 – Nashville, TN 22 Experienced Management Team 5 Acquisition – St. Louis, MO 23 Attractive Portfolio Fundamentals 6 Acquisitions – Moorest

  3. Slide 3: Safe Harbor

    SAFE HARBOR This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provis

  4. 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

  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 10.7 M Number of Properties 126 Current Occupancy 96.9% Cosentino North America – Savannah, GA Contractual Rental income(2) $76.0 M Lease Term Remaining 6.4 Years (1) Information presented as of June 30, 2020, including three properties owne

  7. Slide 7: Portfolio Detail

    PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income Rental Income Industrial 46 $38,443,435 50.6% Retail – General 33 13,770,502 18.1 – Furniture 14 6,809,720 9.0 – Supermarket 3 2,627,383 3.5 – Office Supply 5 2,085,527 2.7 Restaurants 17 3,880,632 5.1

  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 New York 8 $6,401,761 8.4% Texas 9 6,179,190 8.1  Own 126 properties in 31 states South Carolina 7 6,166

  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 $ 5,327,629 7.0% FedEx (NYSE: FDX) 6 3,567,049 4.7 LA Fitness International, LLC 3 3,173,856 4.2 Northern Tool & Equipment 1 2,927,281 3.9

  10. Slide 10: Financial Summary

    FINANCIAL SUMMARY (1) Market Cap $366.5 M (1) Shares Outstanding 20.4 M (2) Insider Ownership 21.9% Applied Control Equipment – Denver, CO Current Annualized Dividend $1.80 (3) Dividend Yield 10.0% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $17.93 at

  11. Slide 11: Steady Operations

    STEADY OPERATIONS(1)(2) Historical Net Income Per Share Historical FFO Per Share Historical AFFO Per Share $1.60 $2.20 $2.20 $1.39 $2.13 $1.28 $2.09 $1.20 $1.05 $2.02 (3) $1.99 $1.98 $2.00 $1.94 $2.00 $0.88 $1.90 $0.80 $1.84 (3) $1.80 $1.80 $0.40 $0.00 $1.60 $1.60 2016 2017 2018 2019 2016 2017 2018

  12. Slide 12: Steady Operations: Dividend Per Share

    STEADY OPERATIONS(1) DIVIDEND PER SHARE Current Annualized Dividend (2): $1.80 $1.80 $1.80 $1.80 $1.74 $1.66 $1.60 $1.40 $1.20 $1.00 2016 2017 2018 2019 (1) For the years ended December 31 (2) The $0.45/share dividend paid in July 2020 was issued with approximately 50% cash and 50% stock ◆ 12

  13. Slide 13: Growth Oriented Balance Sheet

    GROWTH ORIENTED BALANCE SHEET AS AT JUNE 30, 2020 Gross Assets(1) $942.7 M Total Debt/Gross Assets(2) 52.1% Fixed Rate Debt 93.7% Debt Service Coverage Ratio(3) 2.0 to 1.0 Fixed Charge Coverage Ratio(3) 1.6 to 1.0 AFFO Payout Ratio 92.8%  Liquidity available to acquire in excess of an estimated $15

  14. Slide 14: Mortgage Debt Maturities

    MORTGAGE DEBT MATURITIES AS AT JUNE 30, 2020 (1)  Weighted average interest rate of 4.18% on fixed rate debt  There is approximately $14.0 million ($0.70 per share) of scheduled amortization of mortgages for the twelve months ending June 30, 2021 BALLOON PAYMENTS DUE FOR THE TWELVE MONTHS ENDING J

  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 June 30, Leases Expiring Leases Expiring Leases Leases 2021 14 $ 1,064,741 1.4% 218,620 2022 26 8,593,398 11.3 1,376,29

  16. Slide 16: Stable Occupancy

    (1)(2) STABLE OCCUPANCY At June 30, 2020: Occupancy – 96.9% 100.0% 99.6% 99.3% 98.9% 98.8% 98.6% 98.1% 98.3% 97.8% 97.3% 96.8% 90.0% 80.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (1) As at December 31 (2) Based on square footage, including 100% of our unconsolidated joint ventures ◆ 16

  17. Slide 17: Strong Rental Income Growth

    STRONG RENTAL INCOME GROWTH(1)(2)(3) $85 For the Six Months Ended $83.8 June 30, 2020: $42.1M $78.8 $75.9 $75 $70.6 $65 $62.8 ($ in millions) $59.2 $55 $51.0 $45 $35 2013 2014 2015 2016 2017 2018 2019 (1) As at December 31 (2) Includes straight-line rent accruals and amortization of intangibles (3)

  18. Slide 18: Acquisition Track Record

    ACQUISITION TRACK RECORD  Current acquisitions of $28.3 million through August 10, 2020 ACQUISITIONS PER YEAR $120 $118.6 $107.5 $100 $95.2 (1) $79.5 $80 ($ in millions) $60 $56.8 $49.3 $43.2 $40 $20 $0 2013 2014 2015 2016 2017 2018 2019 (1) Includes our 50% share of an unconsolidated joint venture

  19. Slide 19: Recent Acquisitions

    RECENT ACQUISITIONS (1) Current Purchase Date Property Lease Price Acquired Type Tenant (or d/b/a) MSA State Expiration (in ‘000s) Yield(2) 02/24/20 Industrial FedEx Northwest Arkansas AR 07/23/27 $19,150 6.4% 02/20/20 Industrial Creative Office Environments Richmond VA 09/30/34 $ 9,100 7.8% 10/23/1

  20. Slide 20: Recent Dispositions

    RECENT DISPOSITIONS Gross Sales Date Date Property Price Net Gain Sold Acquired Type Tenant (or d/b/a) MSA State (in ‘000s) (in ‘000s) 07/01/20 03/31/04 Retail Carmax Knoxville TN $18,000 $10,316 (1) 03/02/20 06/18/08 Retail Lanier Realty, Inc. Savannah GA $ 825 $ 242 02/11/20 11/30/04 Retail Hobby

  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 03/16/20 Industrial FedEx Northwest Arkansas AR $12,500 07/01/27 3.63% 03/13/20 Industrial Creative Office Environments Richmond VA $ 5,700 04/01/35 3.54% 12/11/19 Industrial Co

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: 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

  26. Slide 26: Blend & Extend Case Study – L3 Harris Technologies

    BLEND & EXTEND CASE STUDY – L3 HARRIS 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 Harris Technologies, In

  27. Slide 27: 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 ◆ 27

  28. Slide 28: Appendix

    ONE LIBERTY PROPERTIES, INC. APPENDIX

  29. Slide 29: Top Tenants' Profiles

    ONE LIBERTY PROPERTIES, INC. TOP TENANTS’ PROFILES

  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: FedEx – Tenant Profile

    FEDEX– TENANT PROFILE  Tenant: FedEx Corporation (NYSE: FDX)(Source: Tenant’s  6 properties represents 4.7% of contractual rental website) income and 678,595 SF » World’s largest express transportation company with service to more than 220 countries % of Contractual Rental Income » FedEx Corporati

  32. 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

  33. 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 » Lease expires

  34. Slide 34: L3 Harris Technologies – Tenant Profile

    L3 HARRIS TECHNOLOGIES – TENANT PROFILE  Tenant: L3 Harris Technologies, Inc. (NYSE: LHX)  Location: 435 Moreland Road, Hauppauge, NY (Source: Tenant’s website) » US based defense technology company » Building: 201,614 SF on 12.4 acres » In June 2019, L3 Technologies and Harris » Lease expires Sep

  35. Slide 35: GAAP Reconciliation

    ONE LIBERTY PROPERTIES, INC. GAAP RECONCILIATION

  36. Slide 36: 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 6 Months Ended June 30, Years Ended December 31, 2020 2019 2018 2017 2016 GAAP net income attributable to One Liberty Properties, Inc

  37. Slide 37: Non-GAAP Financial Measures

    NON-GAAP FINANCIAL MEASURES One Liberty compute funds from operations, or 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 (

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