One Liberty Properties, Inc. · NYSE:OLP

One Liberty Properties — Investor Presentation (May 2019)

38 slides from One Liberty Properties's investor presentation, May 2019

  1. Slide 1: Investor Presentation May 2019

    INVESTOR PRESENTATION MAY 2019 onelibertyproperties.com ◆ 1

  2. Slide 2: Table of Contents

    TABLE OF CONTENTS DESCRIPTION PAGE DESCRIPTION PAGE Table of Contents 2 Recent Acquisitions 20 Safe Harbor Disclosure 3 Recent Dispositions 21 Company Overview 4 Recent Mortgages 22 Experienced Management Team 5 Case Studies: Attractive Portfolio Fundamentals 6 Acquisition – St. Louis, MO 23 Portfol

  3. 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

  4. Slide 4: Company Overview

    COMPANY OVERVIEW  Fundamentals – focused real estate company  Disciplined track record through various economic cycles  Active net lease strategy with emphasis on industrial properties  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 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 10.4 M Number of Properties 123 Current Occupancy 96.5% Transcendia – Greenville, SC Contractual Rental income(2) $71.6 M Lease Term Remaining 7.5 Years (1) Information presented as of March 31, 2019, including four properties owned by uncon

  7. Slide 7: Portfolio Detail

    PORTFOLIO DETAIL Number of Contractual % of Contractual Type of Property Properties Rental Income Rental Income Industrial 36 $32,204,989 45.0% Retail – General 38 15,684,121 22.0 – Furniture 14 6,206,285 8.7 – Supermarket 3 2,878,515 4.0 – Office Supply 6 2,166,263 3.0 Restaurants 17 3,491,296 4.9

  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 $6,115,566 8.5% Texas 11 5,985,356 8.4  Own 123 properties in 30 states South Carolina 7 5,87

  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 $ 4,842,846 6.8% LA Fitness International, LLC 3 3,113,490 4.3 Northern Tool & Equipment 1 2,873,286 4.0 L3 Technologies, Inc. (NYSE: LLL)

  10. Slide 10: Financial Summary

    FINANCIAL SUMMARY (1) Market Cap $568.7 M (1) Shares Outstanding 19.7 M (2) Insider Ownership 21.8% Applied Control Equipment – Denver, CO Current Annualized Dividend $1.80 (3) Dividend Yield 6.2% (1) Market cap is calculated using the shares outstanding and the closing OLP stock price of $28.89 at

  11. 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) 35% 33.1% 30% 25% 20% 18.3% 15.9% 15% 10% 5% 0% OLP NAREIT Equity Index S&P 500 (1) Performance period ended March 31, 2019 ◆ 11

  12. 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) 2015 80% For the Three Months Ended 2015 82%

  13. Slide 13: Growth in Operations: Dividend per Share

    GROWTH IN OPERATIONS(1) INCREASE IN 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

  14. Slide 14: Growth Oriented Balance Sheet

    GROWTH ORIENTED BALANCE SHEET AS AT MARCH 31, 2019 Gross Assets(1) $904.7 M Total Debt/Gross Assets(2) 51.0% Fixed Rate Debt 98.7% Debt Service Coverage Ratio(3) 2.2 to 1.0 Fixed Charge Coverage Ratio(3) 1.7 to 1.0 AFFO Payout Ratio 88.2%  Liquidity available to acquire in excess of an estimated $1

  15. Slide 15: Mortgage Debt Maturities

    MORTGAGE DEBT MATURITIES AS AT MARCH 31, 2019 (1)  Weighted average interest rate of 4.27% on fixed rate debt  There is approximately $13.4 million ($0.68 per share) of scheduled amortization of mortgages for the twelve months ending March 31, 2020 BALLOON PAYMENTS DUE FOR THE TWELVE MONTHS ENDING

  16. 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 March 31, Leases Expiring Leases Expiring Leases Leases 2020 7 $ 879,879 1.2% 98,465 2021 22 2,671,449 3.7 326,224 2022

  17. Slide 17: Stable Occupancy

    (1)(2) STABLE OCCUPANCY At March 31, 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

  18. Slide 18: Strong Rental Income Growth

    STRONG RENTAL INCOME GROWTH(1)(2) $75 $70.3 $70 $68.2 $65 $64.2 $60 $59.0 $56.6 ($ in millions) $55 $50 $49.3 $45 $42.8 $40 $35 2012 2013 2014 2015 2016 2017 2018 (1) As at December 31 (2) Includes straight-line rent accruals and amortization of intangibles ◆ 18

  19. Slide 19: Acquisition Track Record

    ACQUISITION TRACK RECORD  Current pipeline of diverse opportunities in excess of $225.0 million ACQUISITIONS PER YEAR $120 $118.6 $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 2016 2017 2018 (1) Includes our 50% share of an unconsolidated joint

  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) 12/21/18 Industrial Transcendia, Inc Greenville SC 09/30/23 $ 6,830 6.8% All cash 12/11/18 Industrial Dufresne Spencer Group Holdin

  21. Slide 21: Recent Dispositions

    RECENT DISPOSITIONS Net Gain Date Gross Sales Price (Loss) Date Sold Acquired Property Type Tenant (or d/b/a) MSA State (in ‘000s) (in ‘000s) 12/13/18 03/31/15 Retail Shopko Lincoln NE $10,000 ($1,731) 09/14/18 03/24/15 Other The Meadows Apartments Lake County IL $ 8,459 $4,585 (1) 07/31/18 08/13/04

  22. Slide 22: Recent Mortgages

    RECENT MORTGAGES Date Property Amount Mortgage Interest Financed Type Tenant (or d/b/a) MSA State (in ‘000s) Maturity Rate 03/14/19 Industrial Dufresne Spencer Group Holdings St. Louis MO $ 6,400 04/01/24 4.50% 03/06/19 Industrial Applied Control Equipment Denver CO $ 8,320 04/01/31 4.90% 02/11/19 I

  23. Slide 23: Acquisition Case Study – Industrial 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 – Industrial 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: Acquisition Case Study – Industrial Xerimis

    ACQUISITION CASE STUDY – INDUSTRIAL XERIMIS  In October 2018, acquired a single tenant Purchase Price $7,350,000 flex/warehouse facility in Moorestown, NJ. Mortgage(1) (4,000,000)  The 64,000 SF property is NNN leased to Xerimis, Net Equity Invested $3,350,000 Inc.  Moorestown, NJ is well located

  26. 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

  27. 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: LLL)

  28. Slide 28: Summary - Why OLP?

    SUMMARY - WHY OLP?  Fundamentals – focused real estate company  Disciplined track record through various economic cycles  Active net lease strategy with emphasis on industrial properties  Experienced management team  Alignment of interests through significant insider ownership ◆ 28

  29. Slide 29: Appendix

    ONE LIBERTY PROPERTIES, INC. APPENDIX

  30. Slide 30: Top Tenants’ Profiles

    ONE LIBERTY PROPERTIES, INC. TOP TENANTS’ PROFILES

  31. 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

  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 » 3 Mile Demogra

  34. 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 October 15, 2018 announced a pending » 3 Mile Demographics (Source: Applied Geograp

  35. Slide 35: Regal Entertainment Group – Tenant Profile

    REGAL ENTERTAINMENT GROUP – TENANT PROFILE  Tenant: Regal Entertainment Group (Source: Tenant’s website)  3 locations represents 3.4% 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

  36. Slide 36: GAAP Reconciliation

    ONE LIBERTY PROPERTIES, INC. GAAP RECONCILIATION

  37. 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 Quarter Ended March 31, Years Ended December 31, 2019 2018 2017 2016 2015 GAAP net income attributable to One Liberty Properties, Inc

  38. 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 (computed in accordance wit

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