Trinity Place Holdings Inc. · OTC:TPHS
Trinity Place — Investor Presentation (April 2018)
40 slides from Trinity Place's investor presentation, Apr 25, 2018
Slide 1: Corporate Presentation
NYSE American: TPHS Corporate Presentation April 2018
Slide 2: Disclaimer
DISCLAIMER Forward Looking Statement Certain statements in this presentation and that may be made in meetings contain forward-looking statements. All statements included in this presentation, other than statements of historical fact, that address activities, events or developments that we believe or
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS ► Stock trading at a discount with no upside assumed for growth strategy ► Executing multifamily strategy with control of 2 multi-family properties during the last 18 months ► 77 Greenwich development project progressing according to plan ► Strong market trends being capitalize
Slide 4: A Unique Real Estate Opportunity
A UNIQUE REAL ESTATE OPPORTUNITY TPHS is a real estate company with wide-ranging in-house capabilities and expertise ► Approximately 600,000 square feet in active management and/or under development ► Expanding income-producing portfolio focused on select New York Metro neighborhoods which are posit
Slide 5: Accelerating Transformation
ACCELERATING TRANSFORMATION Experienced Maximize Return Strong Legacy Assets Expansion Initiatives Management Q1 2017 ► Strengthened December 2015 balance sheet Q4 2017 Multi-Family with $41M in Acquisition ► Closed $30M rights ► Commenced ground Strategy new equity offering backstopped up construct
Slide 6: Focus on Asset Value Creation
FOCUS ON ASSET VALUE CREATION Opportunistic Multi-Family Acquisition Strategy Legacy Asset Repositioning Investment The Berkley 237 11th Street Pipeline 77 Greenwich, West Palm Beach, Paramus, NOLs / Williamsburg, Gowanus/Park Slope, Manhattan Florida New Jersey Intellectual Property Brooklyn Brookl
Slide 7: Multi-Family Acquisition Strategy
MULTI-FAMILY ACQUISITION STRATEGY
Slide 8: Multi-Family Acquisition Strategy
MULTI-FAMILY ACQUISITION STRATEGY Identification Of Opportunities In Focus on Multi-family Based Key Longer Term On Current Trends Risk Adjusted Fee & Promote Growth Cash Flow Portfolio And Economic Data Returns Structures Neighborhoods in aka “The Contrarian Metro NYC View” Trinity Place Holdings I
Slide 9: Flight to Quality: The Contrarian View
FLIGHT TO QUALITY “THE CONTRARIAN VIEW” ► NYC has some of the oldest housing stock in the nation and 64.2% of NYC stock is rental units ► Current availability in Brooklyn neighborhoods of new multi-family amenitized apartments has led some to worry about an oversupply of new construction multifamily
Slide 10: Demand – A Strong & Growing New York City
DEMAND – A STRONG & GROWING NEW YORK CITY ► NYC metro population projected to grow by over 3% (~600K people) over next decade ► Over 630,000 jobs have been created in NYC since 2009; Largest expansion since WWII ► Record low unemployment rates - with college educated unemployment rate at 2.7% ► NYC’
Slide 11: Supply – A Reduction of Deliveries
SUPPLY – A REDUCTION OF DELIVERIES ► Deliveries projected to decrease and be absorbed Net Absorption, Deliveries, & Vacancy Rate - New York Metro ► Building permits for new dwelling units were 16,269 in 2016 -- A 71% reduction from the 2015 peak and the first reduction since 2009 ► 6,100 condo & mul
Slide 12: Key Criteria
KEY CRITERIA ► Expansion Into Prime/Growth Neighborhoods In NYC ► Trinity Place Holdings Inc. is focused on high-quality, newly-delivered assets in prime neighborhoods of Brooklyn and Manhattan where it can buy at an attractive long-term basis ► Brooklyn – Williamsburg, Park Slope, Brooklyn Heights,
Slide 13: Multi-Family Properties
MULTI-FAMILY PROPERTIES
Slide 14: The Berkley
THE BERKLEY (223 N. 8TH STREET, WILLIAMSBURG, BROOKLYN) ► Neighborhood ► Williamsburg, Brooklyn – A bourgeoning center of residential, retail and hotel spurred by 2005 rezoning ► A mix of formerly industrial lofts and new waterfront towers, Williamsburg has become one of the most desirable neighborh
Slide 15: The Berkley
THE BERKLEY (223 N. 8TH STREET, WILLIAMSBURG, BROOKLYN) Trinity Place Holdings Inc. (NYSE American: TPHS) 15
Slide 16: Gowanus/Park Slope
GOWANUS/PARK SLOPE (237 11TH STREET, BROOKLYN) ► Neighborhood ► Fourth Avenue was rezoned for multifamily and serves as a gateway avenue to Brooklyn ► On border of Park Slope and Gowanus, this location captures the character of a more artsy industrial area and the more stately neighborhood near Broo
Slide 17: Gowanus/Park Slope
GOWANUS/PARK SLOPE (237 11TH STREET, BROOKLYN) 237 11th Street Trinity Place Holdings Inc. (NYSE American: TPHS) 17
Slide 18: Opportunistic Investment
OPPORTUNISTIC INVESTMENT
Slide 19: 77 Greenwich – A Transformation
77 GREENWICH – A TRANSFORMATION ► Former Syms retail site transformed into a mixed use tower with a boutique offering of luxury condominiums above a school and retail Illustrative Valuation For Residential Component of 77 Greenwich(1) ► Adjacent historic property as well as air rights from adjacent
Slide 20: 77 Greenwich – Design and Program
77 GREENWICH – DESIGN AND PROGRAM ► 500+ foot tall mixed use tower ► ± 300,000 GSF ► 90 luxury condominiums, all with water views (Hudson River and NY Harbor) ► ± 7,500 GSF retail ► ± 90,000 GSF elementary school developed on behalf of and to be purchased by the City of New York ► Restoration of a l
Slide 21: 77 Greenwich Projected Timeline
77 GREENWICH PROJECTED TIMELINE (1) 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H21 2H22 1H23 2H23 1H24 2H24 ►Secured $189.5 M construction facility ►Acts like a line of credit, only pay interest on outstanding balance Project Construction 21 monthly payments from NYC to TPHS Construction Cos
Slide 22: 77 Greenwich Construction Progress
77 GREENWICH CONSTRUCTION PROGRESS Trinity Place Holdings Inc. (NYSE American: TPHS) 22
Slide 23: Repositioning Legacy Assets
REPOSITIONING LEGACY ASSETS
Slide 24: Paramus
PARAMUS ► Asset Highlights: ► Route 17 is one of the strongest retail corridors on the East Coast ► Currently leased to Restoration Hardware and LensCrafters on short-term licenses ► Land area of approximately 6.7 acres with visibility from Route 17 and the Garden State Parkway ► Entered into an opt
Slide 25: West Palm Beach
WEST PALM BEACH ► Asset Highlights: ► One-story grocery store anchored neighborhood retail strip center comprised of approximately 112,000 square feet of rentable area ► At busy crossroads in West Palm Beach near the airport ► Redevelopment of center is complete and the team is actively leasing the
Slide 26: Other Assets
OTHER ASSETS ► Post bankruptcy, the new real estate holding company also retained valuable Intellectual Property assets ► The company has a website maintained by a third party which sells name brand discounted items under the Filene’s Basement moniker ► The company has been approached to sell, licen
Slide 27: $231M of Federal NOLs and $102M of State NOLs
$231M of Federal NOLs and $102M of State NOLs ► Trinity Place Holdings has approximately $231 million of federal net operating loss carryforwards (“NOLs”) at December 31, 2017 ► These NOLs will expire between 2029 and 2037 ► State NOL carry forwards of approximately $102 million predominantly in New
Slide 28: Financials
FINANCIALS
Slide 29: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ► Working Capital (at 12/31/17) ► Cash and cash equivalents: $15.3M ► $24M pro forma including reimbursement for prefunded school costs ► Restricted cash: $8.9M (pertains to Park Slope acquisition) ► Balance Sheet Strengthened To Execute on Strategy ► Closed $189.5M construc
Slide 30: Access to Diversified Capital Sources
ACCESS TO DIVERSIFIED CAPITAL SOURCES Proven ability by experienced management team to optimize capital structure 2015 2016 2017 JV Equity (In thousands) 223 North 8th $14,243 Total JV Equity $14,243 Debt 77 Greenwich $40,000 $189,500 (1) West Palm Beach $9,100 Paramus - LOC 11,000 (2) 223 North 8th
Slide 31: Low Leveraged Asset Base
LOW LEVERAGED ASSET BASE 12/31/2015 12/31/2016 12/31/2017 (In thousands, except per share amounts) Shares Outstanding 25,241 25,664 31,452 Closing stock price $ 6.13 $ 9.27 $ 6.95 Market value of common equity 154,722 237,905 218,591 Consolidated debt 40,000 49,100 41,402 Consolidated enterprise val
Slide 32: Illustrative Value Math Exercise
ILLUSTRATIVE VALUE MATH EXERCISE(4) ► Excluding 77 Greenwich residential, illustrative valuation of TPHS would range between $126M to $148M (midpoint $137M) (1)(2) ► Comparable current pricing in the residential sales market of Lower Manhattan have ranged between $2,350 and $3,400 PSF (See Appendix
Slide 33: Implied 77 Greenwich Residential Sale Price Based on Share Price
IMPLIED 77 GREENWICH RESIDENTIAL SALE PRICE BASED ON SHARE PRICE ►With stock trading $6.47 per share as of April 16, 2018, that implies condo sales P/SSF net of closing costs of + $1,885 ►Comparable pricing in the Lower Manhattan market based on recent sales have ranged between $2,350 and $3,400 PSF
Slide 34: Management and Board
MANAGEMENT AND BOARD
Slide 35: Matt Messinger, President & CEO
MATT MESSINGER, President & CEO . ► Matt Messinger appointed the President and CEO of the Company in October 2013 ► Formerly Executive Vice President and Director of Investment Management at Forest City Ratner Companies (“FCRC”) ► 18 year tenure at the company ► Led the New York Investment Committee
Slide 36: Team
TEAM Steven Kahn, Chief Financial Officer Charles Gans, Senior Vice President Mr. Kahn joined the company in September of 2015. He has over 20 years of real Mr. Gans joined the Company in October 2017 to lead the development of 77 estate accounting and financial experience including matters related
Slide 37: Board of Directors
BOARD OF DIRECTORS Alan Cohen Joanne M. Minieri Mr. Cohen has been a director of the Company since September 14, 2012. Mr. Cohen was initially elected to Ms. Minieri has served as a director of the Company since November 8, 2013 and serves as the Chair of the the Board of Directors by the Official C
Slide 38: Appendix
APPENDIX
Slide 39: Comparable Lower Manhattan Condo Developments
COMPARABLE LOWER MANHATTAN CONDO DEVELOPMENTS Building Projected/Estimated $/SF 125 Greenwich St. $2,900/SF 45 Park Place $3,400/SF The Four Seasons Residences (30 Park Place) $3,200/SF 50 West St. $2,800/SF Comp Set 111 Murray St. $3,200/SF One Seaport (161 Maiden Lane) $2,350/SF The Beekman Reside
Slide 40: Certain Risks Regarding Illustrative Valuations
CERTAIN RISKS REGARDING ILLUSTRATIVE VALUATIONS The illustrative valuations on pages 19, 32 and 33 are provided solely for purposes of demonstrating the math one might use as part of a potential valuation methodology for the Company based on the examples provided. These illustrative valuations are s
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