Exhibit 99.1
Town Hall Meeting of Stockholders
February 5, 2014
Safe Harbor Statement
Statements contained in this presentation not relating to historical facts are forward-looking statements that are intended to fall within the safe harbor rule under the Private Securities Litigation Reform Act of 1995. The information contained in the forward looking statements is inherently uncertain, and the Company’s actual results may differ materially due to a number of factors, many of which are beyond the Company’s ability to predict or control, including, among many others, risks and uncertainties related to the Company’s ability to qualify as a REIT, to successfully manage real property investment and related risks, to comply with federal income tax and other applicable regulatory requirements, as well as other risks and uncertainties that could affect the Company’s future operating results which are more fully described in the Company’s Securities and Exchange Commission filings, including the 2013 Annual Report on Form 10-K for the year ended December 31, 2012, and other subsequent filings. These filings are available at www.sec.gov. The Company expressly disclaims any obligation to update or revise these or any other forward-looking statements to reflect any change in expectations or change in events, conditions, or circumstances on which any such statement is based.
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GTJ is a fully integrated, self administered REIT with:
An emphasis on the industrial product sector
A high quality portfolio primarily of net leased properties with low turnover, and high quality diversified tenants
Initial focus on seeking strategic locations to fill gaps within our existing Tri-state area footprint, with a strong desire to expand our geographic area
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GTJ Board of Directors
Jerry Cooper Louis Sheinker Joseph Barone (2) Donald Schaeffer
Chairman President, COO Independent
Emeritus Independent
Director Director Director Director
Paul Cooper Douglas Cooper John Leahy Harvey Schneider
Chairman, CEO EVP, Secretary Independent Independent
Director Director Director
Stanley Perla (1) Jeffrey Wu
(1) |
| Chairman of Audit Committee Independent Independent |
(2) |
| Chairman of Compensation Committee Director Director |
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GTJ Executive Management
Paul Cooper, Chief Executive Officer
Louis Sheinker, Chief Operating Officer and President
Joel Hammer, Chief Financial Officer
Douglas Cooper, Executive Vice President
The Management Team has extensive experience in management, leasing, construction, financing, acquisition, sale, repositioning and maintenance of real estate and financial reporting.
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2013 Milestones
May 2, June 4, December 26,
January 17, 2013 February 22, April 3, 2013 2013 2013 September 2013
2013 $29,500,000 27, 2013 Retirement of
Acquisition of $15,000,000 Genworth Sale of $1,237,500 Launch of Cayman
Wu/Lighthouse Aviva Loan Loan Shelter Triboro Fire GTJ Website Insurance
Electric Settlement Liabilities
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Develop the “GTJ brand”
Become the industrial REIT owner and manager of choice in the markets in which we operate for investors, tenants and local municipalities
Development of balance sheet desirable to investors and lenders
Continue to deliver strong results through accretive acquisitions, leasing, operational performance, property enhancements and expense management
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Successful and Accretive Wu/Lighthouse Portfolio Transaction
An important step in growing and diversifying GTJ’s portfolio of core commercial real estate assets
Portfolio diversification reduces susceptibility to disruptions in our dividend stream
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Current Market Penetration
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| Distinct Jurisdictions in Our Portfolio. |
Westchester, NY Connecticut
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| Slater Street 269 Lambert Road |
36 Midland 15 Executive Boulevard
100-110 Midland 25 Executive Boulevard
112 Midland 35 Executive Boulevard
401 Fieldcrest 12 Cascade Boulevard
404 Fieldcrest 22 Marsh Hill Road
412 Fairview 15 Progress Drive
103 Fairview 466 Bridgeport Avenue
203 Ridgewood 470 Bridgeport Avenue
199 Ridgewood 950 Bridgeport Avenue
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| Farm Springs Road |
New York, NY
85-01 24th Avenue New Jersey
49-19 Rockaway Beach Boulevard 100 American Road
165-25 147th Avenue 200 American Road
612 Wortman Avenue 300 American Road
23-85 87th Street 400 American Road
114-15 Guy Brewer Boulevard 500 American Road
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Portfolio Occupancy
By State
99% September 30, 2013 Percentage Leased*
100.0%
90. |
| 88% 86% |
0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
New York Connecticut New Jersey
* |
| Percentage of square feet plus available land |
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Tenant Profile*
City of NY
*These tenants account for more than 60% of our square
footage.
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GTJ Real Estate Portfolio Attributes
Diversification Long Lease Terms
Geographic Stable Rent Stream
Tenant Mix
STABLE CASH
High Tenant Low Debt to
Occupancy Real Estate
Value
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Value Creation & Growth Strategies
Targeted Market Strategy Focus on select markets with strong fundamentals to complement
existing footprint
New Investments Acquire strategic and high bay, best in class buildings with quality tenants
Development of New Identify sources of new capital
Capital Sources Execute an acquisition financing facility
Proactive Asset & Property Landlord and owner of choice
Enhance value of building
Management Manage expenses to retain and attract cost conscious tenants
Conservative Balance Sheet Low leverage provides us with financial flexibility and opportunity
Ensure strong liquidity profile and strong capital base
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Key Financial Data – Balance Sheet
(in thousands) September 30, 2013 June 30, 2013 December 31, 2012
Total Real Estate (GAAP) $ 288,794 $ 289,596 $ 106,386
Total Assets 337,054 336,749 129,758
Mortgage Notes Payable 179,524 179,909 45,500
Total Equity $ 138,218 $ 137,789 $ 71,529
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Key Financial Data
– Income Statement
(in thousands) Three Months Ended September 30, Nine Months Ended September 30,
2013 2012 2013 2012
Total revenue $ 9,271 $ 3,402 $ 25,821 $ 10,537
General and administrative 1,223 472 4,511 3,160
Property operating expenses 1,536 569 5,196 844
Depreciation and amortization expense 2,278 300 7,068 938
Total expenses 5,037 1,341 16,775 4,942
Operating income 4,234 2,061 9,046 5,595
Interest expense (2,164) (675) (6,276) (1,981)
Other income (expense) 59 630 (220) 681
Income before nonrecurring items 2,129 2,016 2,550 4,295
Insurance recovery 81 — 1,238 -
Discontinued operations (311) (4,181) (4,120) (7,138)
Acquisition costs 125 (589) (5,133) (1,542)
Net income (loss) $ 2,024 $ (2,754) $ (5,465) $ (4,385)
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Total Revenues &
Total Operating Income
Total Revenues (000’s)
$30,000
$25,821
$25,000
$20,000
$15,000
$10,537
$10,000 $9,271
$5,000 $3,402
$-
3Q 2013 3Q 2012 YTD 9/30/2013 YTD 9/30/2012
Total Operating Income
(000’s)
$10,000 $9,046
$9,000
$8,000
$7,000 $5,595
$6,000
$5,000 $4,234
$4,000
$3,000 $2,061
$2,000
$1,000
$-
Q3 2013 Q3 2012 YTD 9/30/2013 YTD 9/30/2012
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Reconciliation of Net
Income (Loss) to EBITDA
For the three and nine months ended Sept. 30 Q3 2013 Q3 2012 YTD 2013 YTD 2012
Net income (loss) attributable to shareholders $ 1,353 $ (2,754) $ (6,619) $ (4,385)
Add: Real estate depreciation 866 260 2,598 830
Interest expense, net 1,469 594 4,475 1,743
EBITDA 3,688 (1,900) 454 (1,812)
Wu/Lighthouse acquisition related costs (125) 589 5,133 1,542
Amortization of intangible assets and deferred assets 571 189 2,149 824
Discontinued Operations 311 4,181 4,120 7,138
Adjusted EBITDA $ 4,445 $ 3,059 $ 11,856 $ 7,692
EBITDA per share – basic and diluted $ 0.32 $ 0.22 $ 0.87 $ 0. 56
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Reconciliation of FFO,
Core FFO and AFFO
For the three and nine months ended Sept. 30 (in thousands) Q3 2013 Q3 2012 YTD 2013 YTD 2012
Net income (loss) attributable to stockholders $ 1,353 $ (2,754) $ (6,619) $ (4,385)
Add (deduct) NAREIT defined adjustments
Real estate depreciation and amortization of intangibles 1,487 368 4,935 1,415
Loss from discontinued operations 311 4,181 4,120 7,138
Funds From Operations (“FFO”), as defined by NAREIT 3,151 1,795 2,436 4,168
Adjustments to arrive at Core FFO (“AFFO”):
Wu/Lighthouse acquisition related costs (125) 589 5,133 1,542
Core FFO, as defined by GTJ REIT, Inc. 3,026 2,384 7,569 5,710
Adjustments to arrive at Adjusted FFO (“AFFO”)
Straight-lined rents and amortization of lease intangibles (804) (289) (1,939) (661)
Amortization of debt mark to market adjustments and financing costs (51) 81 (188) 238
AFFO $ 2,171 $ 2,176 $ 5,442 $ 5,287
FFO per common share-basic and diluted $ 0.23 $ 0.13 $ 0.18 $ 0.31
Core FFO per common share-basic and diluted $ 0.22 $ 0.17 $ 0.55 $ 0.42
AFFO per common share-basic and diluted $ 0.16 $ 0.16 $ 0.40 $ 0.39
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Core Funds from Operations
& Adjusted Funds from Operations
Core Funds From Operations—Core FFO
(000’s)
$8,000 $7,569
$7,000 $5,710
$6,000
$5,000
$4,000 $3,026
$3,000 $2,384
$2,000
$1,000
$-
Q3 2013 Q3 2012 YTD 9/30/2013 YTD 9/30/2012
Adjusted Funds From Operations—AFFO
(000’s)
$6,000
$5,442 $5,287
$5,000
$4,000
$3,000
$2,171 $2,176
$2,000
$1,000
$-
Q3 2013 Q3 2012 YTD 9/30/2013 YTD 9/30/2012
Core FFO represents net income plus add backs for:
Depreciation and amortization
Loss from discontinued operations
Wu/Lighthouse acquisition related costs
Adjusted Funds From Operations represents Core FFO plus certain GAAP to cash related adjustments
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Recent Leasing Highlights
15 Executive Boulevard, Orange, CT– WESCO Distribution Inc. entered into a 7 year 4 month lease of approximately 64,000 square feet on November 26, 2013
12 Cascade Boulevard, Orange, CT – Dooney & Bourke, Inc. negotiated a 1 year extension on their current lease on December 17, 2013. The commencement date is February 1, 2014 on approximately 44,000 square feet
100 American Road, Morris Plains, NJ – AHS Hospital Corporation entered into a 5 year 3 month lease of approximately 30,000 square feet starting on December 15, 2013
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Recent Leasing Highlights
36 Midland Avenue, Port Chester, NY – UTZ Quality Foods entered into a 10 year 5 month lease of 15,000 square feet starting on November 1, 2013
36 Midland Avenue, Port Chester, NY – Saks & Company entered into a 5 year 3 month lease of approximately 15,000 square feet starting December
9, 2013
8 Slater Street, Port Chester, NY – DCH Midland LLC entered into a 10 year lease of approximately 25,000 square feet starting October 1, 2013
612 Wortman Avenue, East New York, NY – L&M Bus expanded their occupancy for a 3 year term of approximately 202,700 square feet starting January 17, 2014
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612 Wortman Layout
Motorcycle Safety School
30,000 SF
Aquaduck
150,484 SF
Metro Recycling L&M
70,000 SF 30,000 SF
L&M Bus
172,763 SF
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500 American Road—Coty
Recently leased to Coty, Inc. for a 17-year term. Coty, a French beauty-products manufacturer whose main business are fragrances, color cosmetics, toiletries and skin care, invested a significant amount in renovations to the building.
This expansion is the result of Coty’s need for a larger, new research and development facility within a single structure to accommodate planned growth within the business unit and the relocation of other R&D employees from foreign locations. The new space consists of laboratory, testing, salon, office areas, and warehouse space. We at GTJ are proud to accommodate Coty and its expansion at our property for the next 17 years.
Coty is a New York stock exchange stock company (COTY) with a $5.2 billion dollar market cap (as of 1/31/2014).
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Questions?
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