One Liberty Properties(US:OLP)2024-11-06 18:53Property 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].