One Liberty Properties, Inc. · NYSE:OLP
One Liberty Properties — Investor Presentation (January 2014)
29 slides from One Liberty Properties's investor presentation, January 2014
Slide 1: One Liberty Properties
One Liberty Properties January 2014 onelibertyproperties.com
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 Securities Act of 1933, as amende
Slide 3: One Liberty Highlights
One Liberty Highlights High quality portfolio primarily of net leased properties with stable occupancy and diversified tenants Disciplined acquisition and disposition track record through economic cycles Deep management team with extensive real estate and finance experience Insider ownership
Slide 4: Financial & Portfolio Summary
Financial & Portfolio Summary Number of Properties (1): 109 Current Occupancy (12/31/13): 99% + Current Market Cap: $316 million Total Enterprise Value (2): $608 million Shares Outstanding: 15.7 million Dividend Yield (3): 7.35% (1) Includes five properties owned by unconsolidated joint ventures (2)
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: Properties By Sector
Properties By Sector Amount of 2014 Percentage of 2014 Number of Contractual Rental Contractual Type of Property Properties Income (1) Rental Income Retail 84 $31,381,156 57.5% Industrial 13 $9,863,982 18.1% Flex 3 $3,706,785 6.8% Office 2 $3,423,441 6.3% Health & Fitness 5 $2,961,524 5.4% Other 2 $
Slide 7: Diversified Geographic Footprint
Diversified Geographic Footprint 109 properties in 29 states (6.6 million square feet) Highest State Concentration by Square Footage Number of Square % of Total State Properties Footage Square Footage South Carolina 4 1,046,528 15.9% Wisconsin 2 991,604 15.0% Texas 12 532,784 8.1% Georgia 13 473,948
Slide 8: Diversified Tenant Base
Diversified Tenant Base Top Tenants 2014 Number of Contractual Percent of Contractual Tenant Properties Rental Income Rental Income S&P Credit Rating (1) Haverty Furniture Companies, Inc. (NYSE: HVT) 11 $4,568,723 8.4% Not Rated Office Depot, Inc. (NYSE: ODP) 9 $3,623,175 6.6% B-, Outlook Stable LA
Slide 9: Well-Balanced Lease Expirations
Well-Balanced Lease Expirations 2014 Contractual % of 2014 Contractual Rental Approximate Square % of Square Feet Year Ending Number of Rental Income Under Income Represented by Feet Subject To Expiring Represented by December 31, Expiring Leases Expiring Leases Expiring Leases Leases Expiring Lease
Slide 10: Solid Revenue Growth and Acquisition Track Record
Solid Revenue Growth and Acquisition Track Record Acquired $107.5 million properties in 2013 Current pipeline of diverse opportunities in excess of $250 million Transactions sourced through relationships, developers, partners and brokers (1) 2013 total revenue is calculated by annualizing reve
Slide 11: 2013 Acquisitions
2013 Acquisitions Financing Information Mortgage Date Property Lease Purchase GAAP (at the time of Loan Interest Acquired Type Tenant City State Expiration Price Yield (1) purchase) Expiration Rate 3/22/2013 Retail Kmart Clemmons NC 4/30/2018 $4,640,000 11.2% (2) All Cash 7/1/2013 Flex Shutterfly Fo
Slide 12: Acquisition Case Study – Flex
Acquisition Case Study – Flex Acquired a production & distribution facility Purchase Price $15,500,000 in Fort Mill, SC in July 2013 net leased to Mortgage (at the time of purchase) ($9,300,000) Shutterfly, Inc. (NASDAQ: SLFY) Net Equity Invested $6,200,000 14 miles southwest of downtown Charlot
Slide 13: Acquisition Case Study – Retail
Acquisition Case Study – Retail A 90% OLP controlled joint venture Below represents the purchase price and yields for the venture acquired a Kmart retail store in Purchase Price $4,640,000 Clemmons, NC in March 2013 net leased Mortgage(closed subsequent to purchase) ($2,552,000) Net Equity Investe
Slide 14: Acquisition Case Study – Industrial
Acquisition Case Study – Industrial Acquired a distribution facility in Fort Mill, SC in September 2013 net leased to Purchase Price $39,195,000 Mortgage (at the time of purchase) ($27,300,000) Northern Tool & Equipment (S&P rated B+) Net Equity Invested $11,895,000 18 miles south of downtown Ch
Slide 15: Strong Balance Sheet
Strong Balance Sheet Gross Assets(1): $639.7 million Total Debt/Gross Assets(2): 48.3% Fixed Rate Debt: 92.4% Debt Service Coverage Ratio(3): 2.27 Fixed Charge Coverage Ratio(3): 1.84 FFO Payout: 88.75% Return on Equity(4): 7.90% Return on Invested Capital(5): 6.67% • Liquidity available to acquire
Slide 16: Laddered Debt Maturities
Laddered Debt Maturities Weighted average interest rate of 5.2% on fixed rate debt There is approximately $8.1 million ($0.52 per share) of scheduled amortization of mortgages for the 12 months ending December 31, 2014 16
Slide 17: Stable Operations and Well Covered Dividend
Stable Operations and Well Covered Dividend (1) A reconciliation of net income per share, as determined in accordance with GAAP, to FFO per share and AFFO per share may be found at the end of this presentation. FFO and 17 AFFO for 2013 represents the annualized results based on the nine months ended
Slide 18: Top Tenants Profiles
Top Tenants Profiles 18
Slide 19: Havertys Furniture – Tenant Profile
Havertys Furniture – Tenant Profile Tenant: Haverty Furniture Companies, Inc. (NYSE: HVT) 11 properties aggregating 612,130 square feet Represents 8.4% of 2014 contractual rental income – Duluth (Atlanta), GA Full service home furnishings retailer founded in 1885 – Fayetteville (Atlanta), GA
Slide 20: 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 9 years. 3 Mile Demographics (Source: Sites USA, 2013) – Population: 85,503 – Average HH Income: $82,293 Location: 11091 Pecan Park Blvd, Ced
Slide 21: 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 9 years. 3 Mile Demographics (Source: Sites USA, 2013) – Population: 55,806 – Average HH Income: $98,991 Location: 11
Slide 22: Office Depot – Tenant Profile
Office Depot – Tenant Profile Tenant: Office Depot, Inc. (NYSE: ODP) 9 properties representing 222,395 square feet Represents 6.6% of 2014 contractual rental income. % of 2014 Contractual Rental Income Leading global provider of office products and services – Chicago, IL: 1.1% On November
Slide 23: 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 19 years. 3 Mile Demographics (Source: Sites USA, 2013) – Population: 533,545 – Average HH Income: $90,264 Location: 2928 N. Ashland Ave, Chicago
Slide 24: 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 18 years. 3 Mile Demographics (Source: Sites USA, 2013) – Population: 66,227 – Average HH Income: $74,987 Location: 2011 Walnut Street, Cary, NC; 5
Slide 25: 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 5.3% of 2014 contractual rental income. 3 Mile Demographics (Source: Sites USA 2013) LA Fitness currently operates over 500 clubs in 21 st
Slide 26: Northern Tool – Fort Mill, SC
Northern Tool – Fort Mill, SC Tenant: Northern Tool & Equipment Location: 1850 Banks Road, Fort Mill, SC Represents 4.9% of 2014 contractual rental income Building: 701,595 square feet on 40 acres of land A large United States distributor of industrial grade and 3 Mile Demographics (Sour
Slide 27: Ferguson Enterprises – Baltimore, MD
Ferguson Enterprises – Baltimore, MD Tenant: Ferguson Enterprises, Inc. Location: 4501 Hollins Ferry Rd, Baltimore MD Represents 4.5% of 2014 contractual rental income 5 miles south of downtown Baltimore One of the largest United States distributors of plumbing Building: 367,000 square f
Slide 28: DSM Nutritional – Parsippany, NJ
DSM Nutritional – Parsippany, NJ Tenant: DSM Nutritional Products, Inc. Location: 45 Waterview Plaza, Parsippany, NJ Represents 4.1% of 2014 contractual rental income Building: 106,6850 square foot Class A office building on 10.5 acres of land. Built in 1997 Worldwide leading supplier of v
Slide 29: GAAP Reconciliation
GAAP Reconciliation The following table provides a reconciliation of net income in accordance with GAAP to recurring EBITDA: QE 9/13 QE 6/13 QE 3/13 QE 12/12 Net income $ 3,211,000 $ 7,736,000 $ 3,450,000 $ 4,933,000 Add: depreciation of properties 3,077,000 2,797,000 2,854,000 2,725,000 Add: intere
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