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].

Group 1 - One Liberty Properties reported quarterly funds from operations (FFO) of $0.46 per share, missing the Zacks Consensus Estimate of $0.48 per share, and down from $0.49 per share a year ago, representing an FFO surprise of -4.17% [1] - The company posted revenues of $22.21 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.47%, but down from year-ago revenues of $22.55 million [2] - Over the last four quarters, One Liberty Properties has surpassed consensus revenue estimates three times [2] Group 2 - The stock has gained approximately 22.4% since the beginning of the year, outperforming the S&P 500's gain of 19.8% [3] - The future performance of One Liberty Properties' stock will depend on management's commentary on the earnings call and the company's FFO outlook [4][6] - The current consensus FFO estimate for the coming quarter is $0.50 on revenues of $22.97 million, and for the current fiscal year, it is $1.94 on revenues of $89.36 million [7] Group 3 - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the top 27% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can impact One Liberty Properties' stock performance [5]

Portfolio Overview - Total square footage of the portfolio is 10.8 million square feet with an occupancy rate of 98.2%[7][11] - The company owns 106 properties across 31 states, with industrial properties making up 56 of these, contributing $48,096,061 or 67.7% to the 2024 contractual rental income[15][19] - The average lease term remaining across the portfolio is 5.5 years, providing stability in rental income[12] Financial Performance - The 2024 contractual rental income totals $71,079,476, with the top five tenants contributing 21.4% of this income[16][20] - The company's gross assets amount to $944.5 million, with total debt representing 44.4% of gross assets[24][25] - The company reported a stable occupancy rate of 99.1% as of September 30, 2024, maintaining high occupancy levels over the years[34] - The current annualized dividend is $1.80, resulting in a dividend yield of 6.5%[22] - As of June 30, 2024, the adjusted funds from operations (AFFO) per share is $0.95, with an AFFO payout ratio of 95%[23] - The market capitalization is $588.8 million, with 21.4 million shares outstanding and an insider ownership of 25.5%[21][22] Debt and Liquidity - The company maintains a debt service coverage ratio of 2.3 to 1.0, indicating strong financial health[29][30] - The weighted average interest rate on fixed-rate debt is 4.41%, with approximately $11.3 million scheduled for mortgage amortization for the twelve months ending June 30, 2025[32] - As of September 30, 2024, the company has $100 million available on its Line of Credit and liquidity to acquire properties exceeding $250 million[32] Acquisitions and Dispositions - The company completed acquisitions totaling $79.5 million in 2023, with a notable acquisition of a multi-tenant property for $33 million in August 2024[34] - The company has maintained a consistent acquisition strategy, with a total of $120 million in acquisitions over the past few years[34] - The company has a history of opportunistic dispositions, with a net gain of $11.3 million from sales in 2024[35] - The company reported a net gain of $3.997 million from the sale of a retail property in December 2023, contributing to total net proceeds of $46.6 million for the year[36] Lease and Rental Income - For the twelve months ending June 30, 2025, expiring leases represent 4.6% of the 2024 contractual rental income, totaling $3,273,962[33] - The company has a total of 162 expiring leases by 2035, representing 100% of the contractual rental income of $71,079,476[33] - The company’s top tenant, FedEx, represents 5.3% of the 2024 contractual rental income, with properties located in multiple states[54] - The current base rent for the St. Louis property increased by 32% after a lease extension with CHEP USA, which accounts for 50% of the gross leasable area[40] Financial Metrics and Adjustments - NAREIT funds from operations (FFO) per share of common stock for the latest period is $1.90, compared to $1.82 in the previous period, reflecting a growth of 4.4%[125][188] - Adjusted funds from operations (AFFO) per share of common stock is reported at $1.95, showing a slight decrease from $1.98 in the prior period[185][188] - The company deducted $0.25 from income due to other income and income on settlement of litigation, which impacted the overall FFO calculation[144][188] - The total deductions for straight-line rent accruals and amortization of lease intangibles amounted to $0.16, affecting the FFO results[132][188] - The company emphasizes that FFO and AFFO are useful measures for evaluating operating performance, excluding GAAP historical cost depreciation and amortization[190] - Management believes that FFO and AFFO provide insights into trends in occupancy rates, rental rates, and operating costs, which may not be apparent from net income alone[190] - The company does not consider FFO and AFFO as alternatives to net income or cash flows from operations as defined by GAAP[191] - The FFO calculation excludes depreciation and amortization related to real estate, which is crucial for understanding the company's operational performance[189][190] - The company recognizes limitations in using FFO and AFFO and examines GAAP measures such as net income and cash flows for a comprehensive performance evaluation[191] - The adjusted FFO reflects various adjustments, including amortization of restricted stock and debt prepayment costs, which are critical for accurate financial assessment[188] Property Specifics - The company acquired the River Road Logistics Building I in Council Bluffs, IA for a purchase price of $33 million, with a mortgage amount of $18.425 million[39] - The building has a total area of 302,347 square feet and is net leased to three tenants, with a base rent of $7.12 per square foot, which is below market[38] - In 2024, the company refinanced a property in St. Louis, MO, resulting in $6.3 million in net proceeds based on appreciated asset value and increased rent[40] - The company reported a Year 1 net cash flow of $1.032 million from the River Road Logistics Building I, yielding a 5-year cash on cash return of 7.97%[40] - The market rent for the Bensalem, PA property has increased from $5.50 per square foot at acquisition to over $10.00 per square foot today[48] Company Strategy - The company has a disciplined track record through economic cycles, focusing on industrial properties[4][5] - The company has a disciplined track record focused on industrial properties, which are expected to perform well through economic cycles[50]