Core Viewpoint - One Liberty Properties, Inc. is focusing on enhancing its portfolio by increasing its industrial assets, which now account for approximately 75% of its base rent, while also managing sales of non-industrial properties to stabilize cash flow in uncertain economic conditions [2][3]. Financial Performance - Rental income increased by 7.7% to $24.2 million in Q1 2025 from $22.4 million in Q1 2024, primarily due to the acquisition of seven industrial properties [3]. - Total operating expenses rose to $15.7 million in Q1 2025 from $14.5 million in Q1 2024, driven by higher real estate expenses and increased depreciation and amortization [4]. - Net income attributable to One Liberty was $4.2 million, or $0.18 per diluted share, in Q1 2025, down from $5.2 million, or $0.23 per diluted share, in Q1 2024 [5]. - Funds from Operations (FFO) remained stable at $9.6 million, or $0.44 per diluted share, compared to $9.6 million, or $0.45 per diluted share, in the prior year [6]. Transactions - The company completed the acquisition of four industrial properties for $88.3 million, incurring new mortgage debt of $52.1 million at a weighted average interest rate of 6.2% [9]. - Two non-industrial assets were sold for a gross sales price of $3.7 million, resulting in a gain of $1.1 million [11]. Balance Sheet - As of March 31, 2025, One Liberty had total assets of $811.7 million, total debt of $471 million, and stockholders' equity of $303.2 million [12]. - The company reported $8.2 million in cash and cash equivalents, with available liquidity of $96.4 million as of May 1, 2025 [12]. Non-GAAP Financial Measures - Adjusted Funds from Operations (AFFO) for Q1 2025 was $10.5 million, or $0.48 per diluted share, compared to $10.2 million, or $0.48 per diluted share, in Q1 2024 [6][25].

Part I [Business](index=6&type=section&id=Item%201.%20Business) The company is a self-administered REIT managing 102 industrial and retail properties across 31 states, totaling 10.9 million sq ft with 99.2% occupancy Portfolio Overview as of December 31, 2024 | Metric | Value | | :--- | :--- | | Number of Properties | 102 (100 owned, 2 in JVs) | | Total Square Feet | ~10.9 million | | Occupancy Rate | 99.2% | | 2025 Contractual Rental Income | $72.0 million | | Weighted Avg. Remaining Lease Term | 5.0 years | | Weighted Avg. Mortgage Debt Term | 6.1 years | | Weighted Avg. Mortgage Interest Rate | 4.56% | - In 2024, the company acquired three industrial properties for **$44.7 million** and sold 11 properties for net proceeds of **$38.2 million**, resulting in an **$18.0 million net gain**. No amounts were outstanding on its **$100.0 million credit facility** at year-end[21](index=21&type=chunk) - Subsequent to year-end 2024, the company acquired two industrial properties in Alabama for **$49.0 million** and one in Kansas for **$13.3 million**. It also contracted to buy another in Iowa for **$26.0 million**, which is expected to increase 2025 contractual rental income to approximately **$77.3 million**[20](index=20&type=chunk)[25](index=25&type=chunk)[23](index=23&type=chunk) 2025 Contractual Rental Income by Property Type | Type of Property | 2025 Contractual Rental Income ($M) | Percentage of Total | | :--- | :--- | :--- | | Industrial | $52.1 | 72.4% | | Retail—General | $10.3 | 14.2% | | Retail—Furniture | $3.4 | 4.8% | | Other | $2.0 | 2.8% | | Retail—Office Supply | $1.5 | 2.1% | | Theater | $1.2 | 1.6% | | Health & Fitness | $1.0 | 1.4% | | Restaurant | $0.5 | 0.7% | | **Total** | **$72.0** | **100.0%** | Lease Expiration Schedule by 2025 Contractual Rental Income | Year of Expiration | % of 2025 Contractual Rental Income | | :--- | :--- | | 2025 | 2.1% | | 2026 | 8.6% | | 2027 | 19.8% | | 2028 | 16.2% | | 2029 | 12.9% | | 2030 and thereafter | 39.4% | [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from tenant and geographic concentration, significant lease expirations, and substantial mortgage debt refinancing requirements - A significant portion of revenue is concentrated with five key tenants: FedEx (**5.2%**), Northern Tool (**4.3%**), NARDA Holdings, Inc. (**4.2%**), Havertys (**3.9%**), and Ferguson (**3.5%**), totaling **21.1%** of 2025 contractual rental income[72](index=72&type=chunk) - The company has geographic concentration risk, with **46.9%** of its 2025 contractual rental income derived from properties in six states: South Carolina (**11.7%**), New York (**9.5%**), Texas (**7.9%**), Pennsylvania (**7.9%**), Maryland (**5.2%**), and Iowa (**4.7%**)[73](index=73&type=chunk) - The portfolio is concentrated in the industrial (**72.4%** of 2025 contractual rental income) and retail (**21.1%**) sectors, making it vulnerable to downturns in these areas. Competition from e-commerce poses a threat to the retail tenants[74](index=74&type=chunk)[78](index=78&type=chunk) Maturing Mortgage Debt (2025-2029) | Year of Maturity | Principal Balance Due ($ thousands) | Weighted Average Interest Rate | | :--- | :--- | :--- | | 2025 | $22,458 | 4.17% | | 2026 | $18,461 | 3.91% | | 2027 | $38,525 | 3.64% | | 2028 | $30,155 | 4.64% | | 2029 | $79,386 | 4.41% | | **Total (2025-2029)** | **$188,985** | | - Potential conflicts of interest exist due to transactions with affiliated entities. The company pays Majestic Property Management Corp. significant fees for services (**$3.3 million** in 2024) and obtains property insurance through Gould Investors L.P., which owns **10.6%** of the company's stock[101](index=101&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are **no unresolved staff comments**[120](index=120&type=chunk) [Cybersecurity](index=26&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program is managed by a network administrator, overseen by the Audit Committee, and utilizes third-party assessments and safeguards - Cybersecurity defense systems are overseen at the management level by a network administrator who reports to the CFO and Senior Vice President-Financial[122](index=122&type=chunk) - The company retains a **third-party cybersecurity consulting firm** for periodic assessments and continuous monitoring of its IT systems for threats[123](index=123&type=chunk) - The Audit Committee provides **Board-level oversight** of cybersecurity practices as part of its risk management activities[126](index=126&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company owns 100 properties with a $672.3 million net book value and 99.2% occupancy, diversified across 31 states, with $425.0 million in mortgage debt - The company owns 100 properties with an aggregate net book value of **$672.3 million** and a **99.2% occupancy rate** as of December 31, 2024[129](index=129&type=chunk) Top 5 States by 2025 Contractual Rental Income | State | Number of Properties | 2025 Contractual Rental Income ($M) | % of Total | | :--- | :--- | :--- | :--- | | South Carolina | 8 | $8.4 | 11.7% | | New York | 7 | $6.8 | 9.5% | | Texas | 7 | $5.7 | 7.9% | | Pennsylvania | 5 | $5.7 | 7.9% | | Maryland | 2 | $3.7 | 5.2% | - The company holds a 50% equity interest in two joint ventures that own two properties, contributing approximately **$233,000** to its share of 2025 base rent[134](index=134&type=chunk) - As of year-end 2024, the company had **$425.0 million** of mortgage debt outstanding across 62 first mortgages, with a weighted average interest rate of **4.56%** and a weighted average remaining term of **6.1 years**[137](index=137&type=chunk)[140](index=140&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) The company is a defendant in a lawsuit regarding deed restrictions on its Beachwood, Ohio land parcel, believing it has meritorious defenses - A subsidiary is a defendant in a lawsuit regarding deed restrictions on its Beachwood, Ohio land parcel. The company believes it has **meritorious defenses**[138](index=138&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - **Not applicable**[139](index=139&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE under "OLP," with an $8.1 million stock repurchase authorization remaining as of February 2025 - The company's common stock trades on the New York Stock Exchange under the symbol **"OLP"**[142](index=142&type=chunk) - As of February 28, 2025, the company is authorized to repurchase up to **$8.1 million** of its common stock. **No shares were repurchased in 2024**[144](index=144&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Total revenues slightly decreased in 2024 due to dispositions, operating expenses rose, FFO and AFFO declined, but liquidity remains strong with $110.1 million available [Comparison of Years Ended December 31, 2024 and 2023](index=36&type=section&id=Comparison%20of%20Years%20Ended%20December%2031%2C%202024%20and%202023) Total revenues slightly decreased by 0.1% in 2024 due to dispositions, while operating expenses rose 2.3% and interest expense increased 3.6% Comparison of Revenues (2024 vs. 2023) | (In thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Rental income, net | $90,313 | $90,646 | $(333) | (0.4)% | | Lease termination fees | $250 | $— | $250 | n/a | | **Total revenues** | **$90,563** | **$90,646** | **$(83)** | **(0.1)%** | Components of Rental Income Change (2024 vs. 2023) | (In thousands) | 2024 | 2023 | Change ($) | | :--- | :--- | :--- | :--- | | Acquisitions | $3,356 | $612 | $2,744 | | Dispositions | $2,718 | $7,569 | $(4,851) | | Same store | $84,239 | $82,465 | $1,774 | | **Total Rental income, net** | **$90,313** | **$90,646** | **$(333)** | Comparison of Operating Expenses (2024 vs. 2023) | (In thousands) | 2024 | 2023 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Depreciation and amortization | $24,291 | $24,789 | $(498) | (2.0)% | | Real estate expenses | $17,904 | $16,444 | $1,460 | 8.9% | | General and administrative | $15,388 | $15,822 | $(434) | (2.7)% | | Impairment loss | $1,086 | $— | $1,086 | n/a | | **Total operating expenses** | **$58,670** | **$57,339** | **$1,331** | **2.3%** | - Interest expense increased by **$683,000 (3.6%)** in 2024, primarily due to a rise in the weighted average interest rate on mortgage debt from **4.18%** in 2023 to **4.47%** in 2024[173](index=173&type=chunk) [Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO)](index=40&type=section&id=Funds%20from%20Operations%20(FFO)%20and%20Adjusted%20Funds%20from%20Operations%20(AFFO)) NAREIT FFO decreased by 2.5% to $38.0 million, and AFFO decreased by 3.4% to $41.2 million in 2024, primarily due to higher expenses FFO and AFFO Reconciliation Summary (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | GAAP net income attributable to OLP | $30,417 | $29,614 | | **NAREIT FFO applicable to common stock** | **$38,027** | **$38,996** | | **Adjusted FFO applicable to common stock** | **$41,157** | **$42,595** | FFO and AFFO Per Share | Metric | 2024 | 2023 | | :--- | :--- | :--- | | GAAP net income per diluted share | $1.40 | $1.38 | | **NAREIT FFO per share** | **$1.77** | **$1.82** | | **Adjusted FFO per share** | **$1.91** | **$1.99** | - The **$969,000 decrease in FFO** was primarily due to a **$1.5 million increase in real estate expenses**, a **$683,000 increase in interest expense**, and a **$333,000 decrease in rental income**, partially offset by a **$952,000 increase in other income** and a **$434,000 decrease in G&A expenses**[183](index=183&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Available liquidity was $110.1 million as of February 2025, with $111.6 million in mortgage payments due by 2027, planned to be met through operations and refinancing - As of February 28, 2025, available liquidity was approximately **$110.1 million**, including **~$10.1 million in cash** and **$100.0 million available** under the credit facility[187](index=187&type=chunk) Mortgage Debt Payments Due (2025-2027, in thousands) | (In thousands) | 2025 | 2026 | 2027 | Total | | :--- | :--- | :--- | :--- | :--- | | Amortization payments | $11,084 | $11,038 | $9,999 | $32,121 | | Principal due at maturity | $22,458 | $18,461 | $38,525 | $79,444 | | **Total** | **$33,542** | **$29,499** | **$48,524** | **$111,565** | - The company has a **$100.0 million credit facility** maturing December 31, 2026. As of December 31, 2024, there was **no balance outstanding**, and the **full amount was available** to be borrowed[194](index=194&type=chunk)[195](index=195&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure, managed through swaps, with $425.0 million in fixed-rate debt having an estimated fair value of $398.9 million - The primary market risk exposure is from changes in interest rates on its variable rate credit facility. The company uses **interest rate swaps** to limit this risk on its variable rate mortgages[211](index=211&type=chunk)[212](index=212&type=chunk) Debt Obligations and Fair Value as of Dec 31, 2024 (in thousands) | Metric | Value | | :--- | :--- | | Total Fixed Rate Long-Term Debt | $424,978 | | Weighted Average Interest Rate | 4.56% | | Estimated Fair Market Value | $398,934 | [Controls and Procedures](index=49&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2024[218](index=218&type=chunk) - Based on an assessment using the COSO framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2024[220](index=220&type=chunk)[221](index=221&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=50&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 proxy statement - Required information is **incorporated by reference** from the proxy statement for the 2025 annual meeting of stockholders[227](index=227&type=chunk) [Executive Compensation](index=50&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information is incorporated by reference from the 2025 proxy statement - Required information is **incorporated by reference** from the proxy statement for the 2025 annual meeting of stockholders[228](index=228&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=50&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, with 256,740 securities to be issued and 189,245 available under equity plans Equity Compensation Plan Information as of December 31, 2024 | Plan Category | Securities to be issued upon exercise | Securities remaining for future issuance | | :--- | :--- | :--- | | Approved by security holders | 256,740 | 189,245 | | Not approved by security holders | — | — | | **Total** | **256,740** | **189,245** | [Certain Relationships and Related Transactions, and Director Independence](index=51&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the 2025 proxy statement - Required information is **incorporated by reference** from the proxy statement for the 2025 annual meeting of stockholders[232](index=232&type=chunk) [Principal Accountant Fees and Services](index=51&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Principal accountant fees and services information is incorporated by reference from the 2025 proxy statement - Required information is **incorporated by reference** from the proxy statement for the 2025 annual meeting of stockholders[233](index=233&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=52&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section details the financial statements, schedules, and exhibits filed as part of the Form 10-K report, including consolidated financials - This section contains the list of financial statements and exhibits filed with the report, including the **Report of Independent Registered Public Accounting Firm**, **Consolidated Financial Statements**, and **Schedule III for Real Estate**[235](index=235&type=chunk)

Core Insights - One Liberty Properties, Inc. has successfully transformed into an industrial property owner, acquiring $133 million in industrial assets since the beginning of 2024, with over 75% of base rent now from this asset class [2][16]. Financial Performance - For the fourth quarter of 2024, revenues increased to $23.9 million from $22.7 million in the same period of 2023, driven by $1.2 million from newly acquired properties and $1.1 million from same-store properties [3]. - Total operating expenses for the fourth quarter of 2024 were $15.0 million, up from $14.3 million in the same quarter of 2023, primarily due to increased real estate expenses [4]. - Net income for the fourth quarter of 2024 was $10.5 million, or $0.49 per diluted share, compared to $15.0 million, or $0.71 per diluted share in the prior year, largely due to a decrease in gain-on-sale of real estate [5]. - Funds from Operations (FFO) for the fourth quarter of 2024 were $10.0 million, or $0.46 per diluted share, an increase from $9.6 million, or $0.45 per diluted share in the same quarter of 2023 [6]. - Adjusted Funds from Operations (AFFO) for the fourth quarter of 2024 were $10.8 million, or $0.50 per diluted share, compared to $10.6 million, or $0.50 per diluted share in the prior year [7]. Annual Results - Total revenues for 2024 were $90.6 million, consistent with 2023, including $250,000 from lease termination fees in 2024 [9]. - Total operating expenses for 2024 were $58.7 million, up from $57.3 million in 2023, mainly due to a $1.5 million increase in real estate expenses [9]. - The net gain-on-sale of real estate for 2024 was $18.0 million from the sale of 11 properties, compared to $17.0 million from 10 properties in 2023 [10]. - Net income attributable to One Liberty for 2024 was $30.4 million, or $1.40 per diluted share, compared to $29.6 million, or $1.38 per diluted share in 2023 [11]. Balance Sheet and Liquidity - As of December 31, 2024, the company had total assets of $767 million, total debt of $420.6 million, and total stockholders' equity of $307.4 million [14]. - As of February 28, 2025, One Liberty's available liquidity was $110.1 million, including $10.1 million in cash and cash equivalents [14]. Dividends - On March 5, 2025, the Board of Directors declared the company's 129th consecutive quarterly dividend of $0.45 per share, payable on April 4, 2025 [15]. Acquisitions - In 2024, the company acquired three industrial properties for $44.7 million, expecting to recognize approximately $3.5 million in rental income in 2025 [16]. - Subsequent to the reporting period, the company acquired two industrial properties for $49 million and entered into a contract to acquire another property for $26 million [18][20].

Revenue Performance - Revenues for Q4 2024 were $23.9 million, an increase of 5.3% from $22.7 million in Q4 2023, driven by $1.2 million from properties acquired in 2024 and $1.1 million from same-store properties[3]. - Total revenues for the full year 2024 were $90.6 million, unchanged from 2023, including $250,000 of lease termination fee income[10]. - Total revenues for Q4 2024 were $23,856,000, an increase of 4.9% compared to $22,741,000 in Q4 2023[39]. - Rental income for the year ended December 31, 2024, was $90,313,000, slightly down from $90,646,000 in 2023[39]. Net Income and Earnings Per Share - Net income for Q4 2024 was $10.5 million, or $0.49 per diluted share, compared to $15.0 million, or $0.71 per diluted share in Q4 2023, primarily due to a decrease in gain-on-sale of real estate[7]. - Net income attributable to One Liberty Properties, Inc. for Q4 2024 was $10,532,000, a decrease of 29.5% from $14,962,000 in Q4 2023[39]. - Net income per share attributable to common stockholders - diluted for Q4 2024 was $0.49, down from $0.71 in Q4 2023[39]. Funds from Operations - Funds from Operations (FFO) for Q4 2024 was $10.0 million, or $0.46 per diluted share, up from $9.6 million, or $0.45 per diluted share in Q4 2023[8]. - Funds from operations (FFO) for Q4 2024 were $10,029,000, up 4.3% from $9,621,000 in Q4 2023[41]. - Adjusted Funds from Operations (AFFO) for Q4 2024 was $10.8 million, or $0.50 per diluted share, compared to $10.6 million, or $0.50 per diluted share in Q4 2023[9]. - Adjusted funds from operations (AFFO) for Q4 2024 were $10,819,000, an increase of 2.2% compared to $10,582,000 in Q4 2023[41]. Operating Expenses - Total operating expenses for 2024 were $58.7 million, an increase of 2.4% from $57.3 million in 2023, primarily due to a $1.5 million rise in real estate expenses[11]. Asset and Liability Overview - As of December 31, 2024, total assets were $767 million, total debt was $420.6 million, and total stockholders' equity was $307.4 million[17]. - Total assets increased to $766,954,000 in 2024 from $761,606,000 in 2023, reflecting a growth of 0.5%[37]. - Total liabilities rose to $458,379,000 in 2024, up from $453,861,000 in 2023, indicating a 1.1% increase[37]. - Cash and cash equivalents increased significantly to $42,315,000 in 2024 from $26,430,000 in 2023, representing a growth of 60%[37]. Dividends - The company declared its 129th consecutive quarterly dividend of $0.45 per share, payable on April 4, 2025[18]. Property Transactions - The company acquired three industrial properties for $44.7 million in 2024, expecting to recognize approximately $3.5 million of rental income in 2025[19]. - The company sold six retail properties and other assets for net proceeds of $38.2 million, resulting in a net gain of $18.0 million[20]. Shareholder Information - The weighted average number of diluted common shares outstanding increased to 20,796,000 in Q4 2024 from 20,383,000 in Q4 2023[41].

Core Viewpoint - One Liberty Properties, Inc. has declared a quarterly dividend of $0.45 per share, marking its 129th consecutive quarterly dividend and demonstrating a commitment to maintaining or increasing dividends for over 31 years [1]. Company Overview - One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT) incorporated in Maryland in 1982 [2]. - The company focuses on acquiring, owning, and managing a geographically diversified portfolio, primarily consisting of industrial properties [2]. - Many properties in One Liberty's portfolio are subject to long-term net leases, where tenants are responsible for real estate taxes, insurance, and ordinary maintenance and repairs [2].

Group 1 - The industrial sector is favored for its potential long-term performance in real estate, driven by significant growth in e-commerce [1] - The investment philosophy focuses on value investing, targeting undervalued assets for long-term appreciation and dividends [1] - The analyst has a strong academic background in finance, including a bachelor's degree in Finance and Banking and a master's degree in Financial Management and Investment, along with relevant certifications [1] Group 2 - The analyst has passed CFA Level 1 and Level 2, with plans to take Level 3 in August 2025, indicating a commitment to enhancing expertise in investment analysis [1] - The investment strategy emphasizes stable cash flow sectors such as consumer defensive, utilities, and real estate [1] - The motivation for contributing to Seeking Alpha is to improve understanding of financial markets through company analysis and engagement with experienced investors [1]

Group 1 - One Liberty Properties (NYSE: OLP) is shifting its focus towards acquiring industrial properties amidst a challenging commercial real estate market, which is seen as a logical strategy to strengthen cash flow for investors [1] - The company aims to attract value investors who are looking for bargains, particularly in emerging markets, and emphasizes a long-term investment approach [1] Group 2 - The article reflects a perspective influenced by notable economic thinkers, suggesting a potential shift towards an Austrian economic viewpoint in future analyses [1]

Core Insights - One Liberty Properties, Inc. has completed the acquisition of two Class A industrial properties in Mobile, Alabama for $49 million, which will enhance its industrial portfolio that now exceeds 72% of all base rent [1][2] - The company has also sold retail and health & fitness properties for a total of $23 million, realizing over $6.6 million in gains [1] Acquisition Details - The acquired properties total 371,586 square feet and are situated on approximately 31 acres with four tenants, generating an aggregate annual base rent of about $3.1 million [1] - The annual rental increases for these properties range from 2.3% to 3.5%, with a weighted average remaining lease term of nearly seven years [1] - Financing for the acquisition was secured through cash and a ten-year $29 million mortgage at an interest rate of 6.12% [1] Property Features - The Class A warehouses were constructed in 2022 and 2023, featuring a clear height of 32' to 36', concrete tilt-wall construction, 70 dock high loading doors, LED lighting, and ESFR sprinklers [2] - The properties are strategically located adjacent to Interstate-10, enhancing their appeal as part of a growing logistics hub in the Southeast [2] Recent Sales - On December 27, 2024, One Liberty completed the sale of a LA Fitness property in Secaucus, New Jersey for $21.4 million, realizing net proceeds of approximately $13.0 million and anticipating a gain of about $6.4 million [3] - Additionally, on December 10, 2024, the company sold an Advance Auto retail property in Hilliard, Ohio for $1.6 million, with net proceeds of approximately $704,000 and an anticipated gain of around $224,000 [4] Company Overview - One Liberty Properties is a self-administered and self-managed real estate investment trust, incorporated in Maryland in 1982, focusing on acquiring, owning, and managing a diversified portfolio primarily consisting of industrial properties [7]

Core Viewpoint - One Liberty Properties, Inc. has declared a quarterly dividend of $0.45 per share, marking its 128th consecutive quarterly dividend and demonstrating a commitment to maintaining or increasing dividends for over 30 years [1]. Company Overview - One Liberty Properties, Inc. is a self-administered and self-managed real estate investment trust (REIT) incorporated in Maryland in 1982 [2]. - The company focuses on acquiring, owning, and managing a geographically diversified portfolio, primarily consisting of industrial properties [2]. - Many of the properties are under long-term net leases, where tenants are responsible for real estate taxes, insurance, and ordinary maintenance and repairs [2].

Property Portfolio and Occupancy - As of September 30, 2024, the company owns 104 properties with an occupancy rate of approximately 99.1%[98]. - The company has a diversified portfolio primarily consisting of industrial properties, with a focus on long-term net leases[98]. Rental Income and Revenue - The 2024 contractual base rent is approximately $73.1 million, representing the base rent payable during the twelve months ending September 30, 2025[104]. - Rental income for the three months ended September 30, 2024, was $22,211, a decrease of $335 (1.5%) compared to $22,546 in the same period of 2023[112]. - Total revenues for the nine months ended September 30, 2024, were $66,707, down by $1,198 (1.8%) from $67,905 in the same period of 2023[112]. - Rental income from acquisitions for the three months ended September 30, 2024, was $955, a significant increase of $687 (256.3%) compared to $268 in the same period of 2023[113]. - Same store rental income increased by $428, or 2.1%, for the three months ended September 30, 2024, compared to the same period in 2023[114]. - Approximately $1.4 million in rental income is excluded from contractual rental income due to uncertainty regarding tenant payments[105]. Property Sales and Gains - The company sold properties for a total gross sales price of $13.525 million during the three months ended September 30, 2024, resulting in a net gain of $2.115 million[108]. - The company recorded a net gain on the sale of real estate of $2,115 for the three months ended September 30, 2024, compared to $332 in the same period of 2023, representing an increase of $1,783 (537.0%) [123]. - The nine months ended September 30, 2024, saw a net gain on the sale of real estate of $11,347, an increase of $6,301 (124.9%) from $5,046 in the same period of 2023[123]. Operating Expenses - Operating expenses for the three months ended September 30, 2024, totaled $14,324, a slight increase of $13 (0.1%) from $14,311 in the same period of 2023[117]. - Total operating expenses for the nine months ended September 30, 2024, were $43,651, an increase of $643 (1.5%) compared to $43,008 in the same period of 2023[117]. - The company recorded a $1.1 million impairment loss during the nine months ended September 30, 2024, related to a former property in Hamilton, Ohio[122]. Financial Performance Metrics - FFO for the three months ended September 30, 2024 decreased by $498,000, or 5.1%, compared to the same period in 2023, primarily due to a $335,000 decrease in rental income, net[155]. - AFFO for the three months ended September 30, 2024 decreased by $561,000, or 5.4%, attributed to a $217,000 decrease in rental income, net, and other factors impacting FFO[156]. - For the nine months ended September 30, 2024, FFO decreased by $1.4 million, or 4.7%, mainly due to a $1.4 million decrease in rental income, net, and a $421,000 increase in interest expense[156]. - AFFO for the nine months ended September 30, 2024 decreased by $1.7 million, or 5.2%, influenced by a $416,000 decrease in general and administrative expenses and other factors impacting FFO[157]. - The company reported GAAP net income attributable to One Liberty Properties, Inc. of $5,177,000 for the three months ended September 30, 2024, compared to $2,747,000 for the same period in 2023[150]. - Adjusted funds from operations applicable to common stock for the three months ended September 30, 2024 was $9,899,000, compared to $10,460,000 for the same period in 2023[150]. Debt and Liquidity - The company anticipates paying off mortgages totaling $7.5 million in connection with upcoming property sales[110]. - As of November 1, 2024, available liquidity was $129.8 million, including $29.8 million in cash and cash equivalents and up to $100.0 million available under the credit facility[133]. - The company had 64 outstanding mortgages payable secured by 65 properties, totaling $430.5 million in principal amount, with a weighted average interest rate of 4.53%[135]. - Total amortization payments due in the three months ending December 31, 2024, are $8,103,000, with principal due at maturity totaling $92,010,000 over the next four years[136]. - The credit facility allows borrowing up to $100.0 million for various purposes, with an interest rate of 6.59% as of September 30, 2024[140]. - The company intends to refinance a substantial portion of the remaining debt maturing in 2024 and 2025, although there is no assurance of favorable terms due to rising interest rates[136]. Interest Rate Risk Management - The company utilizes interest rate swaps to hedge against interest rate risk on variable rate mortgages, with no liability for early termination as of September 30, 2024[160]. - The company's variable mortgage debt primarily bears interest at fixed rates due to the interest rate swap agreements[162]. - The primary market risk exposure for the company is the effect of changes in interest rates on the interest cost of draws on its revolving variable rate credit facility[159]. - Interest rates are sensitive to various factors, including governmental policies and economic conditions[159]. - Changes in the fair market value of interest rate swaps do not impact the company's net income or cash[161]. Other Income and Fees - The company received a lease termination fee of $250,000 in March 2024 due to the early termination of a lease in Lakewood, Colorado[116]. - Other income increased by $325,000 (305.7%) for the three months ended September 30, 2024, and by $722,000 (584.0%) for the nine months ended September 30, 2024, primarily due to increased interest income from short-term U.S. treasury bills[126]. - The company reported a $765,000 increase in other income for the nine months ended September 30, 2024, which partially offset the decrease in FFO[156].