10361 East Colonial Drive Orlando, FL...O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando,...

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FAMILY DOLLAR | 3015 S Rio Grande Ave, Orlando, FL DISCLAIMER O’REILLY AUTO PARTS 10361 East Colonial Drive Orlando, FL EXCLUSIVELY MARKETED BY: TED DOWDING Sr. Vice President | [email protected] Actual Site DIRECT 858.263.4171 | CELL 858.999.7431 16.5 Years Remaining Corporate Guaranty Strong Market Fundamentals [email protected]

Transcript of 10361 East Colonial Drive Orlando, FL...O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando,...

Page 1: 10361 East Colonial Drive Orlando, FL...O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL TENANT OVERVIEW FINANCIAL HIGHLIGHTS In thousands except earnings per share

FAMILY DOLLAR | 3015 S Rio Grande Ave, Orlando, FL

DISCLAIMER

O’REILLYAUTO PARTS10361 East Colonial Drive

Orlando, FL

EXCLUSIVELY MARKETED BY:

TED DOWDING Sr. Vice President | [email protected]

Actual Site

DIRECT 858.263.4171 | CELL 858.999.7431 16.5 Years RemainingCorporate GuarantyStrong Market Fundamentals

[email protected]

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

INVESTMENT OVERVIEWEXECUTIVE SUMMARYEquity is pleased to offer this single tenant, net lease, fee simple investment opportunity in Orlando, the fastest growing MSA in Florida. The offering is inclusive of a 20-year lease that commenced in May 2013 backed by O’Reilly Auto Parts, one of the nation’s premier specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories. O’Reilly (NASDAQ: ORLY), as of January 23, 2017 the stock was trading at $265.00 per share, up 121% since 2013. The company currently operates 4,712 locations in 45 states and was expected to grow by an additional 210 units in fiscal 2016.

This assets consists of a freestanding 7,385 square foot stucco retail building constructed exclusively for O’Reilly in 2013. The property is located in the Orlando MSA, along the an east-west thoroughfare, US Highway 50. The residential and regional shopping atmosphere and strong tenancy combine to make this a very attractive offering for passive investors looking for a good return with strong fundamentals.

This fee simple offering has the opportunity to secure new market financing ensuring secure long term passive cash flow to the investor while also benefiting from aggressive rent increases throughout both the initial term and Three 5-Year Option Renewal Periods.

• O’Reilly (S&P:BBB) is one of the nation’s premier specialty automotive retailers

• Excellent visibility with a monument sign

• 16.5+ years remaining on the initial 20-year lease

• New construction (Built in 2013)

• Rent commenced in May 2014

• Established location with strong customer base

• Excellent ingress/egress

• Recently added two extra lanes due to rapidly growing area leading to heavy traffic counts.

INVESTMENT & PROPERTY HIGHLIGHTS

CLICK HERE TO VIEW VIDEO

OMDM

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DOWN TOWN ORLANDO

COLO

NIAL

DR

LAKE DOWNEY

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

OFFERING OVERVIEW

10361 East Colonial Drive, Orlando, FL 32817 Building Size: ±7,385 Square FeetLot Size: ±0.84 AcresYear Built: 2013Rent Commencement: May 2014

Premier Brand O’Reilly Auto Parts (ORLY) is one of the largest specialty retailers of automotive aftermarket parts, tool supplies, equipment, and accessories in the United States. The company has seen comparable store sales growth of 5.7% from January to August 2014, up 3.6% over the same period in 2013.

Brand New Construction The building was constructed in 2013 and brought to market in excellent condition to highlight a high pride of ownership investment.

Investment Highlights

Actual Site

Net Lease StructureThe lease structure for the O’Reilly’s is double-net, providing limited oversight and management for a new owner, ideally suited for the passive investor. O’Reilly Auto Parts corporately guarranty’s this 20 year base lease term with three (3) five (5) year renewal options with favorable rent increases. The lease commenced in May 2014 and runs through November 2049. There is a rare Year 11 rent increase not found in many O’Reilly’s and very favorable for the owner.

Strong Location | Strong Neighboring Tenants O’Reilly Auto Parts benefits from the synergy and increased traffic volume generated by the large, national retailers in the immediate area, including: Dollar Tree, McDonald’s, dd’s discounts, Aarons, and Walmart Supercenter. Further, there are several auto related retailers located along State Highway 50, creating a synergy.

Excellent Visibility and Exposure This location benefits O’Reilly’s by being both highly visible and easily accessible. Situated on the northwest corner of East Colonial Drive/Highway State 50 and Culver Road, the tenant has a monument sign and excellent exposure to drive by traffic with the red colored building. Highway State 50 is a main east/west traffic artery in the Orlando; traffic counts on Highway State 50 at this intersection are over 50,000 vehicles per day. Further, Orlando Executive Airport is 15 minutes west of the property.

Great AccessThe building enjoys excellent access with a full movement intersection in addition to an ingress-egress point located off State Highway 50.

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

INVESTMENT SUMMARYProperty OverviewYear Built: 2013Acreage: ±0.84 AcresSquare Feet: ±7,385Parcel Number: 31-22-17-6296-12-220Architecture: New Construction

Financial Overview

Lease Summary

Market Price: $2,515,000Net Operating: 11/2023 - 11/2033: $132,056Cap Rate: 5.25%Price Per SqFt: $340.55Rent Per SqFt: $17.88Current Annual Rent: $132,056Current Monthly Rent: $11,004.70Tenant: O’Reilly Automotive Stores

Lease Type: NN Lease | Very Minimum Landlord Responsibilities

Lease Start: 5/13/2014

Lease End: 11/08/2033

Initial Term: 20 Years (16.5 years remaining before 1st Option Period)

Option Periods: Three 5-Year renewal periods. Each with rent increase.

Lease Entirety: November 2049 (35 Years)

Rent increases $34,663 (26.25% over entirety of the lease with options periods)

RARE YEAR 11 INCREASE | FAVORABLE RENT INCREASES THROUGHOUT ENTIRETY OF LEASE

Rent Escalations: Annual Rent Monthly Rent

Years 11-20: $139,979.76 $11,664.98/mo

Option Rent Increases:

Option 1: Option 2: Option 3:

$148,379.04$157,281.00$166,718.04

$12,364.92/mo$13,106.75/mo$13,893.17/mo

Traffic CountsColonial Drive 47,779+ VPDDean Road 23,104+ VPD

Year

2024

2033

20382043

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

CASH FLOW ANALYSIS

Cap Rate

2017Cash Flow Analysis Blended Cap Rate

over entirety of lease

5.93%Cap Rate

Rent Increases Annual Rent Increases Cap RateInitial Term Years 1-10 $132,056 5.25%

Initial Term Years 10-20 $139,980 6% 5.57%

Option Period 1 Years 20-25 $148,379 6% 5.90%

Option Period 2 Years 25-30 $157,281 6% 6.25%

Option Period 3 Years 30-35 $166,718 6% 6.63%

$180,000

$140,000

$100,000

$60,000

$20,000

Years 1-10 Years 10-20 Option Period1

Option Period2

Option Period3

Cap Rate

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Cash Flow Analysis Cap Rate2017

Cash Flow in Each TermCash Flow In Each Term

Blended Cap Rate

5.92%

Years 1-10 Years 10-20 Option Period1

Option Period2

Option Period3

RENT INCREASES

Years 1-10

Years 10-20

Years 20-25

Years 25-30

Years 30-35

ANNUAL RENT

$132,056

$139,980

$148,379

$157,281

$166,718

LEASE

Initial Term

Initial Term

Option Period 1

Option Period 2

Option Period 3

INCREASES

6%

6%

6%

6%

RENT INCREASE

Years 1-10

Years 10-20

Option Period 1

Option Period 2

Option Period 3

CAP RATE

5.25%

5.57%

5.90%

6.25%

6.63%

Initial Term

Initial Term

Option Period 1

Option Period 2

Option Period 3

10361 East Colonial Drive, Orlando, FL 32817O’REILLY’S AUTO PARTSCash Flow Analysis

For more information contact | Ted Dowding | Sr. Vice President | 858.999.7431 | [email protected]

PRIMARY TERM PRIMARY TERM

CAP Rate Range

5.25% - 6.63%

Year

2014-2024

2024-2033

2033

2038

2043

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

TENANT OVERVIEW

4,829 LOCATIONS

2016 SALES: $8.59 BILLION

S & P CREDIT: BBB INVESTMENT GRADE

COMPANY TYPE: PUBLIC

#827 FORBES Global 2000 (2015)

MARKET CAP (As of May 2017): $23.2 BILLION

www.oreillyauto.com

O’Reilly Auto Parts is a leading American auto parts retailer that provides automotive aftermarket parts, tools,

supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-

yourself customers. Founded in 1957 by the O’Reilly family, the company is headquartered in Springfield, Missouri. As of

December 31, 2016, the company operated 4,829 stores in 47 states. O’Reilly Automotive, Inc. was founded in 1957 and is

headquartered in Springfield, Missouri.

www.oreillyauto.com

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

TENANT OVERVIEW

www.oreillyauto.com

FINANCIAL HIGHLIGHTS In thousands, except earnings per share and ratio data and store count

YEAR ENDED DECEMBER 31, 2016 2015 2014 2013 2012

Store Count 4,829 4,571 4,366 4,166 3,976 Percentage Increase in Comparable Store Sales 4.8% 7.5% 6.0% 4.6% 3.5%

Sales $ 8,593,096 $ 7,966,674 $ 7,216,081 $ 6,649,237 $ 6,182,184

Operating Income 1,699,206 1,514,021 1,270,374 1,103,485 977,393

Net Income 1,037,691 931,216 778,182 670,292 585,746

Accounts Payable to Inventory 105.7% 99.1% 94.6% 86.6% 84.7%

Working Capital (142,674) (36,372) 252,082 430,832 478,093

Total Assets 7,204,189 6,676,684 6,532,083 6,057,895 5,741,241

Total Debt 1,887,019 1,390,018 1,388,422 1,386,895 1,088,011

Shareholders’ Equity 1,627,136 1,961,314 2,018,418 1,966,321 2,108,307

Earnings Per Share (assuming dilution) $ 10.73 $ 9.17 $ 7.34 $ 6.03 $ 4.75

Weighted-Average Common Shares Outstanding (assuming dilution) 96,720 101,514 106,041 111,101 123,314

COMPARISON OF FIVE-YEAR CUMULATIVE RETURNThis graph shows the cumulative total shareholder return assuming the investment of $100 on December 31, 2011, and the reinvestment of dividends thereafter, in the common stock of O’Reilly Automotive, Inc., the Standard and Poor’s S&P 500 Retail Index and the Standard and Poor’s S&P 500 Index.

2011 2012 2013 2014 2015 2016

$ 1 0 0 $ 1 1 2$ 1 6 1

$ 2 4 1$ 3 1 7

$348

O’Reilly Automotive, Inc. S&P 500 Retail Index S&P 500 Index

MARKET CAPITALIZATION (in billions)

FREE CASH FLOW (in millions)

RETURN on INVESTED CAPITAL 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

O’RE IL LY AUTOMOTIV E 2016 A NNUA L REP ORT • 2 O’RE IL LY AUTOMOTIV E 2016 A NNUA L REP ORT • 3

O’Reilly’s promote from within philosophy allows us to continually perpetuate our Culture and instill our values in each new member of Team O’Reilly. Our experienced, well-trained, technically proficient store teams are equipped to provide industry-leading customer service in every new store we open. In 2016, we successfully opened 210 net, new stores and, in 2017, we plan to continue our profitable growth with the addition of 190 net, new stores in both new and existing markets. Our stores are supported by our robust, regional, tiered distribution network comprised of 27 distribution centers augmented with more than 300 hub stores, which provide our stores same-day access to a vast inventory of hard-to-find parts.

team membersour greatest asset

Our customers depend on us to provide them with expert advice, excel-lent service, a competitive price, and the parts they need to complete their jobs. The ability of our Professional Parts People to consistently satisfy our customers’ needs is supported by our sustained competitive advan-tage in parts availability. Our industry-leading robust, tiered, regional distribution network provides our store teams with access to the right parts faster than our competitors. Through our 27 distribution centers, with inventories that average 148,000 SKUs, we replenish our stores five nights a week. Each of our stores carry an average inventory of 23,000 SKUs that is individually tailored to each local market based on an analysis of vehicle registration data, market demographic information and local customer purchasing patterns. Additionally, almost all of our stores have same-day access to hard-to-find parts from an extensive inventory selec-tion either directly from a distribution center or from one of our 312 hub stores, which stock an average 45,000 SKUs. Our distribution network continues to expand in step with our store growth to ensure our industry-leading parts availability is in place for each new store we open, and we have the capacity to service more than 650 additional stores within our existing distribution footprint. Our industry-leading parts availability and our well-trained, experienced Team of Professional Parts People, who are ready and eager to provide superior customer service each day an existing or new store opens, are key factors in our mission to be the dominant sup-plier of parts in all markets.

Our long-term strategy of profitable growth focuses on maintaining and enhancing our existing store base and distribution network, organically growing through new store openings, and consolidating the industry through the prudent acquisitions of existing auto parts suppliers. During 2016, we successfully opened 210 net, new stores throughout the U.S. and are excited to open our 5,000th store in 2017, as we plan to open 190 net, new stores in the coming year. We continue to be very pleased with our new store performance, resulting from well-trained, professional new store teams supported by industry-leading parts availability, and our promote from within philosophy ensures our new store managers instill the O’Reilly Culture in every new Team Member. During 2016, we also grew through the acquisition of Bond Auto Parts. With a remarkably similar company culture and history, combined with a complementing geographic footprint in New England, Bond Auto Parts fit perfectly into our criteria for acquisi-tions. We will continue to look for strong automotive aftermarket chains, such as Bond Auto Parts, that mirror our Company Culture, enhance our national footprint and generate a strong return on our investment.

An unwavering commitment to excellent customer service and our relent-less focus on profitable growth generated $978 million in free cash flow during 2016, and our ongoing initiative to optimize our capital structure allowed us to increase our leverage during the year through the issuance of $500 million in senior notes. After reinvesting back into our business in

O'Reilly 5524, 14214 Cullen Boulevard, Houston, TX

The team at O'Reilly 3385-Cicero, IL

The team at O'Reilly 3841-Madison, WI

The team at O'Reilly 4756-Stafford, TX

Store Manager Dreama Tillis O'Reilly 1999-Jacksonville, FL

Inbound Materials Handler Charles LaFond Distribution Center 36-Selma, TX

74,000+O'Reilly is made up of 74,715 team members as follows: 63,380 Store, 7,807 Distribution Center, and 3,428 Regional and Corporate Team Members.

team members

4,829O'Reilly stores are divided into 10 divisions, 56 regions, and 474 districts, with approximately 10 stores in each district.

stores

27O'Reilly Distribution Centers stock an average of 148,000 part numbers and provide five-night-a-week service to all O’Reilly stores in the continental U.S. In addition, approximately 90% of O'Reilly stores receive multiple daily deliveries directly from a DC or hub store.

distribution centers

47Founded in 1957, O’Reilly began with one store in Springfield, MO, has grown to more than 4,800 stores across 47 states, and plans to open 190 net, new stores in 2017.

states

FINANCIAL HIGHLIGHTS In thousands, except earnings per share and ratio data and store count

YEAR ENDED DECEMBER 31, 2016 2015 2014 2013 2012

Store Count 4,829 4,571 4,366 4,166 3,976 Percentage Increase in Comparable Store Sales 4.8% 7.5% 6.0% 4.6% 3.5%

Sales $ 8,593,096 $ 7,966,674 $ 7,216,081 $ 6,649,237 $ 6,182,184

Operating Income 1,699,206 1,514,021 1,270,374 1,103,485 977,393

Net Income 1,037,691 931,216 778,182 670,292 585,746

Accounts Payable to Inventory 105.7% 99.1% 94.6% 86.6% 84.7%

Working Capital (142,674) (36,372) 252,082 430,832 478,093

Total Assets 7,204,189 6,676,684 6,532,083 6,057,895 5,741,241

Total Debt 1,887,019 1,390,018 1,388,422 1,386,895 1,088,011

Shareholders’ Equity 1,627,136 1,961,314 2,018,418 1,966,321 2,108,307

Earnings Per Share (assuming dilution) $ 10.73 $ 9.17 $ 7.34 $ 6.03 $ 4.75

Weighted-Average Common Shares Outstanding (assuming dilution) 96,720 101,514 106,041 111,101 123,314

COMPARISON OF FIVE-YEAR CUMULATIVE RETURNThis graph shows the cumulative total shareholder return assuming the investment of $100 on December 31, 2011, and the reinvestment of dividends thereafter, in the common stock of O’Reilly Automotive, Inc., the Standard and Poor’s S&P 500 Retail Index and the Standard and Poor’s S&P 500 Index.

2011 2012 2013 2014 2015 2016

$ 1 0 0 $ 1 1 2$ 1 6 1

$ 2 4 1$ 3 1 7

$348

O’Reilly Automotive, Inc. S&P 500 Retail Index S&P 500 Index

MARKET CAPITALIZATION (in billions)

FREE CASH FLOW (in millions)

RETURN on INVESTED CAPITAL 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

O’RE IL LY AUTOMOTIV E 2016 A NNUA L REP ORT • 4

stores in 47 statesAlabama ..................... 125Alaska ................................15Arizona ......................... 136Arkansas ..................... 107California....................534Colorado ....................... 99Connecticut ................... 5Florida ........................... 163Georgia ........................ 187Hawaii ...............................12Idaho ................................. 40Illinois ............................186Indiana ......................... 120Iowa ....................................73Kansas ..............................82Kentucky ........................77Louisiana ....................109Maine .................................35Massachusetts ..........30Michigan .................... 158Minnesota ..................119Mississippi ....................75Missouri ....................... 195Montana .........................27

Nebraska ........................41Nevada .............................54New Hampshire ......38New Mexico ................52 New York .......................... 2North Carolina ...... 155North Dakota .............15Ohio ................................ 169Oklahoma ................. 121Oregon ............................ 66Pennsylvania ..............12Rhode Island ................. 3South Carolina .........91South Dakota .............16Tennessee ................. 162Texas ...............................667Utah ....................................61 Vermont .........................24Virginia ............................ 66Washington ............. 155West Virginia ..............12Wisconsin ...................118Wyoming .......................20

2016, we returned over $1.5 billion of our excess capital to you, our share-holders, through our share repurchase program. Since the inception of our share repurchase program in 2011, we have returned $6.9 billion through the repurchase of 56.9 million shares, at an average price of $120.50 per share, and in 2017, we plan to continue to prudently repurchase shares as a tool to continue to deliver value, after we have exhausted all other means of profitably reinvesting in our business.

As we plan for the future success of O’Reilly Auto Parts, we will never for-get that our Team Members and our Culture are the keys to our continued profitable growth. We are very proud of the depth and experience levels we have developed over time in our management Team, and we under-stand that long-term succession planning is a vital key to maintaining our Culture. We continue to rely upon our promote from within philosophy to accomplish this goal, and with that focus in mind, we announced the promotions of Greg Johnson and Jeff Shaw to Co-Presidents of O’Reilly in February of 2017. Greg began his O’Reilly career 34 years ago as a part-time distribution center Team Member, and Jeff began his O’Reilly career 28 years ago as a parts specialist in our stores. Both of these experienced leaders have dedicated their careers to the success of O’Reilly, progress-ing their way up through the Company with hard work and a relentless focus on providing excellent customer service. Greg and Jeff are the very embodiment of the O’Reilly Culture, and they will continue to perpetu-ate our Culture throughout the Company in their new positions for many years to come.

Once again, we would like to thank all of our Team Members for their dedication to our ongoing success. We would also like to thank you, our shareholders, for your trust in our Company, and we look forward to extending our long track record of profitable growth into 2017.

servicecoast to coast

THE O'REILLY FOOTPRINTStore Count 200-600+ 100-199 1-99Distribution Center

FINANCIAL HIGHLIGHTS In thousands, except earnings per share and ratio data and store count

YEAR ENDED DECEMBER 31, 2016 2015 2014 2013 2012

Store Count 4,829 4,571 4,366 4,166 3,976 Percentage Increase in Comparable Store Sales 4.8% 7.5% 6.0% 4.6% 3.5%

Sales $ 8,593,096 $ 7,966,674 $ 7,216,081 $ 6,649,237 $ 6,182,184

Operating Income 1,699,206 1,514,021 1,270,374 1,103,485 977,393

Net Income 1,037,691 931,216 778,182 670,292 585,746

Accounts Payable to Inventory 105.7% 99.1% 94.6% 86.6% 84.7%

Working Capital (142,674) (36,372) 252,082 430,832 478,093

Total Assets 7,204,189 6,676,684 6,532,083 6,057,895 5,741,241

Total Debt 1,887,019 1,390,018 1,388,422 1,386,895 1,088,011

Shareholders’ Equity 1,627,136 1,961,314 2,018,418 1,966,321 2,108,307

Earnings Per Share (assuming dilution) $ 10.73 $ 9.17 $ 7.34 $ 6.03 $ 4.75

Weighted-Average Common Shares Outstanding (assuming dilution) 96,720 101,514 106,041 111,101 123,314

COMPARISON OF FIVE-YEAR CUMULATIVE RETURNThis graph shows the cumulative total shareholder return assuming the investment of $100 on December 31, 2011, and the reinvestment of dividends thereafter, in the common stock of O’Reilly Automotive, Inc., the Standard and Poor’s S&P 500 Retail Index and the Standard and Poor’s S&P 500 Index.

2011 2012 2013 2014 2015 2016

$ 1 0 0 $ 1 1 2$ 1 6 1

$ 2 4 1$ 3 1 7

$348

O’Reilly Automotive, Inc. S&P 500 Retail Index S&P 500 Index

MARKET CAPITALIZATION (in billions)

FREE CASH FLOW (in millions)

RETURN on INVESTED CAPITAL 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

FINANCIAL HIGHLIGHTS In thousands, except earnings per share and ratio data and store count

YEAR ENDED DECEMBER 31, 2016 2015 2014 2013 2012

Store Count 4,829 4,571 4,366 4,166 3,976 Percentage Increase in Comparable Store Sales 4.8% 7.5% 6.0% 4.6% 3.5%

Sales $ 8,593,096 $ 7,966,674 $ 7,216,081 $ 6,649,237 $ 6,182,184

Operating Income 1,699,206 1,514,021 1,270,374 1,103,485 977,393

Net Income 1,037,691 931,216 778,182 670,292 585,746

Accounts Payable to Inventory 105.7% 99.1% 94.6% 86.6% 84.7%

Working Capital (142,674) (36,372) 252,082 430,832 478,093

Total Assets 7,204,189 6,676,684 6,532,083 6,057,895 5,741,241

Total Debt 1,887,019 1,390,018 1,388,422 1,386,895 1,088,011

Shareholders’ Equity 1,627,136 1,961,314 2,018,418 1,966,321 2,108,307

Earnings Per Share (assuming dilution) $ 10.73 $ 9.17 $ 7.34 $ 6.03 $ 4.75

Weighted-Average Common Shares Outstanding (assuming dilution) 96,720 101,514 106,041 111,101 123,314

COMPARISON OF FIVE-YEAR CUMULATIVE RETURNThis graph shows the cumulative total shareholder return assuming the investment of $100 on December 31, 2011, and the reinvestment of dividends thereafter, in the common stock of O’Reilly Automotive, Inc., the Standard and Poor’s S&P 500 Retail Index and the Standard and Poor’s S&P 500 Index.

2011 2012 2013 2014 2015 2016

$ 1 0 0 $ 1 1 2$ 1 6 1

$ 2 4 1$ 3 1 7

$348

O’Reilly Automotive, Inc. S&P 500 Retail Index S&P 500 Index

MARKET CAPITALIZATION (in billions)

FREE CASH FLOW (in millions)

RETURN on INVESTED CAPITAL 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

$10.1 $19.6 $24.8 $25.9 34.3%20.8% 23.6% 26.9% 31.5%$867$760$512$951 $978$13.6

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

LOCATION OVERVIEWOrlando is located in Central Florida. With a population of more than 2 million, the Orlan-do region is projected to be among the nation’s fastest-growing regions in this decade. With over one third of its population between the ages of 20 and 44, and a median age of

37.0, Orlando is a young and vibrant community. While Orlando is renowned worldwide for its tropical climate and re-laxed lifestyle, the region also is one of the top 10 locations in the country for business. From corporate headquarters to regional distribution centers, from product manufacturing to high tech research, the region of Orange, Seminole, Lake and Osceola counties and the City of Orlando spans a dynamic economic spectrum.

ORLANDO

Orlando RankingsOrlando is #9 among USAA’s top 10 places in the U.S. for veterans to find jobs.

Techie.com ranked Orlando among its list of the “Most Promising Tech Hubs to Watch in 2014.” The arti-cle cites Orlando’s Creative Village as evidence of a booming digital media industry, low overhead costs compared to other-known tech hubs and its pipeline of talented and creative young professionals.

Orlando received Gallup’s 3rd-high-est Job Creation Index Score in the country for 2012. Orlando is the only metro area to rank in the top metro for percentage hiring in 2012.

TOP 10 REASONS TO DO BUSINESS IN ORLANDO1. Young, Diverse Educated Workforce2. Access. Access. Access.3. Top Location for Entrepreneurs4. Real Estate Variety5. Tech Industry Hub

6. Innovation Economy7. Nation’s 2nd Largest University8. Great Neighborhoods9. Partnership Philosophy10. The “Livability” Factor

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

Top 10 Employers in Walt Disney World Resort 69,000Adventist Health Systems 17,600Universal Orlando (Comcast) 17,300Orlando Health 14,310Darden Restaurants Inc. 7,600SeaWorld Parks & Entertainment 6,032Lockhead Martin Corporation 5,774Marriot International, Inc. 5,635Westgate Resorts 5,323Siemans 4,448

ORLANDO

Orlando serves as the headquarters for several companies, including: Darden Restaurants, Tupperware Brands Corp., American Automobile Association (AAA) and Ruth’s Chris Steak House, among others.

Divisional headquarters for the following are located in Central Florida: Siemens Energy Inc., Mitsubishi Hitatchi Power Systems Americas, Lockheed Martin, L-3 Communications, Science Applications International Corporation (SAIC), Electronic Arts and more.

Home to the U.S. operations of Germany’s Siemens Energy, Japan’s Mitsubishi Hitatchi Power Systems, Spain’s Indra Systems, Australia’s Adacel and many more. In total, more than 150 international companies, representing

approximately 20 countries, have facilities in Orlando.

Orlando is home to Lake Nona Medical City, a life sciences cluster that could create 30,000 jobs with a $7.6 billion economic impact by year 10 of operation. Located near Orlando International Airport, the cluster includes the University of Central Florida’s (UCF) College of Medicine, Sanford-Burnham Medical Research Institute, UCF’s Burnett School of Biomedical Sciences, Nemours Children’s Hospital, Orlando VA Medical Center (2015) – future home to VHA National Simulation Center - SimLEARN and the University of Florida Research and Academic Center.

Orlando has the 7th largest research park in the country (Central Florida Research Park) with over 1,025 acres. It is home to over 120 companies, employs more than 8,500 people, and is the hub of the nation’s military simulation and training programs.

ORLANDOBUSINESSENVIRONMENT

6. Innovation Economy7. Nation’s 2nd Largest University8. Great Neighborhoods9. Partnership Philosophy10. The “Livability” Factor

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

MARKET OVERVIEWDEMOGRAPHICS

2-Mile 3-Mile 5-Mile2017 POPULATION 43,638 96,982 258,151NUMBER OF HOUSEHOLDS 15,029 34,870 91,312PERSONS PER HOUSEHOLD 2.68 2.75 2.67MEDIAN HOME VALUE $147,779 $154,763 $174,804 MEDIAN HOUSEHOLD INCOME $42,212 $46,396 $46,765POPULATION GROWTH BY 2022 9.8% 9.6% 7.64%

STRONG MARKET GROWTHExplosive Population Growth Projected Over The Next 5 Years

TRAFFIC COUNTSVehicles Per Day

Colonial Drive 47,779+ Dean Road 23,104+

2 MILES

3 MILES

5 MILES

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10361 East Colonial Drive

ORLANDO, FL

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O’REILLY AUTO PARTS | 10361 East Colonial Drive - Orlando, FL

RETAIL AERIAL

Traffic CountsColonial Drive 47,779+ VPDDean Road 23,104+ VPD

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DISCLAIMERDISCLOSUREAll materials and information received or derived from Equity, its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty by Equity its directors, officers, agents, advisors, or affiliates as to complete-ness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither Equity its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to ac-curacy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. Equity will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Equity makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Equity does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limita-tions as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property.

Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Equity in compliance with all applicable fair housing and equal opportunity laws.

EXCLUSIVELY MARKETED BY:

TED DOWDING Sr. Vice President | [email protected]

DIRECT 858.263.4171 | CELL 858.999.7431

OMDM

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