
Company Overview & Highlights First Quarter 2025 Highlights Q1 2025 results include $88.3 million industrial acquisitions and $1.1 million asset sales, aligning with the industrial portfolio strategy - Completed acquisition of four industrial properties for a total purchase price of $88.3 million1 - Completed sale of two non-industrial assets, realizing a $1.1 million gain1 CEO Statement & Strategic Focus The CEO highlighted the portfolio's shift to industrial assets, now 75% of base rent, for cash flow stability in uncertain times - Company's portfolio continues to transition towards industrial assets, with approximately 75% of base rent now derived from industrial properties3 - Aims to achieve stronger cash flow stability through portfolio transformation3 First Quarter 2025 Operating Results Revenue and Expenses Q1 2025 rental income grew 7.7% to $24.2 million; operating expenses rose to $15.7 million from property and depreciation | Metric | Q1 2025 ($M) | Q1 2024 ($M) | YoY Change (%) | | :----- | :----------- | :----------- | :------------- | | Rental income, net | 24.2 | 22.4 | 7.7% | | Total operating expenses | 15.7 | 14.5 | 8.3% | | Other expenses, net | 5.5 | 4.6 | 19.6% | - Rental income growth primarily attributed to the acquisition of seven industrial properties since January 1, 2024, partially offset by the sale of 11 assets (including nine non-industrial properties)4 - Operating expenses increased mainly due to higher real estate expenses (mostly reimbursable) and depreciation and amortization expenses, primarily related to properties acquired after January 1, 20245 Net Income and EPS Q1 2025 net income for One Liberty was $4.2 million, diluted EPS $0.18, decreased from lower real estate sale gains | Metric | Q1 2025 | Q1 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net income attributable to One Liberty ($M) | 4.2 | 5.2 | -19.2% | | Diluted EPS | $0.18 | $0.23 | -21.7% | | Gain on sale of real estate ($M) | 1.1 | 1.8 | -38.9% | Funds From Operations (FFO & AFFO) Q1 2025 FFO was flat at $9.6 million; AFFO grew 2.9% to $10.5 million, per-share metrics impacted by increased shares | Metric | Q1 2025 | Q1 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | FFO ($M) | 9.6 | 9.6 | 0.0% | | FFO per diluted share | $0.44 | $0.45 | -2.2% | | AFFO ($M) | 10.5 | 10.2 | 2.9% | | AFFO per diluted share | $0.48 | $0.48 | 0.0% | - Diluted net income, FFO, and AFFO per share were negatively impacted by an increase of approximately 376,000 weighted average common shares, primarily from non-cash equity compensation and dividend reinvestment plans9 Strategic Transactions Acquisitions One Liberty completed $88.3 million industrial acquisitions, with $52.1 million new mortgages, expecting $1.6 million quarterly rent - Completed acquisition of four industrial properties for a total purchase price of $88.3 million10 - Assumed $52.1 million in new mortgage debt for this acquisition, with a weighted average interest rate of 6.2% and a weighted average remaining term of 9.2 years10 - These four properties are expected to contribute approximately $1.6 million in quarterly rental income (excluding variable rent) starting April 1, 202510 Dispositions The company sold two real estate assets for $3.7 million, realizing a $1.1 million gain - Sold two real estate assets for a total sales price of $3.7 million11 - Realized a total gain on sale of $1.1 million11 Financial Position Balance Sheet Summary As of March 31, 2025, the company had $8.2 million cash, $811.7 million assets, $471.0 million debt, $303.2 million equity | Metric | March 31, 2025 ($M) | December 31, 2024 ($M) | | :----- | :------------------ | :--------------------- | | Total assets | 811.7 | 767.0 | | Total debt (Mortgages payable, net + Line of credit) | 471.0 | 420.6 | | Total stockholders' equity | 303.2 | 307.4 | Available Liquidity As of May 1, 2025, One Liberty's liquidity was $96.4 million, including $8.9 million cash and $87.5 million credit facility | Metric | May 1, 2025 ($M) | | :----- | :--------------- | | Total available liquidity | 96.4 | | Cash and cash equivalents | 8.9 | | Available under credit facility | 87.5 | Explanation of Non-GAAP Financial Measures FFO Definition and Rationale FFO, a NAREIT non-GAAP metric, adjusts GAAP net income for real estate depreciation and sales gains/losses, useful for REIT performance - FFO, as defined by NAREIT, is GAAP net income adjusted for real estate depreciation and amortization, and gains/losses on certain real estate asset sales13 - Management considers FFO and AFFO useful supplemental measures for evaluating equity REIT operating performance, reflecting trends in occupancy, rental rates, operating costs, and interest costs without including depreciation and amortization16 - FFO does not represent GAAP net income or cash flows from operating, investing, or financing activities, and should not be considered an alternative measure of operating performance or liquidity17 AFFO Definition and Rationale AFFO adjusts FFO for straight-line rent accruals, lease intangible amortization, and restricted stock compensation; its calculation varies, but it is a key supplemental performance indicator - AFFO adjusts FFO by deducting straight-line rent accruals and amortization of lease intangibles, and adding back restricted stock and RSU compensation amortization15 - As the NAREIT White Paper does not provide AFFO calculation guidelines, its methodology varies among REITs15 - Management also finds AFFO useful in evaluating potential property acquisitions16 Management's Perspective and Limitations Management acknowledges FFO and AFFO limitations, emphasizing careful review of GAAP metrics like net income and cash flows - FFO and AFFO do not measure whether cash flow is sufficient to meet all company cash needs, including principal amortization, capital improvements, and distributions to shareholders17 - Management acknowledges the limitations of FFO and AFFO, and carefully reviews GAAP metrics such as net income and cash flows from operating, investing, and financing activities18 Supplemental Information Forward-Looking Statements This press release contains forward-looking statements based on assumptions about future plans and expectations, involving risks and uncertainties that could cause actual results to differ - Forward-looking statements are based on certain assumptions, describing future plans, strategies, and expectations, typically identified by words like “may,” “will,” “could,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or variations thereof20 - Forward-looking statements involve known and unknown risks, uncertainties, and other factors, some beyond the company's control, that could materially affect actual results, financial condition, cash flows, performance, or future achievements20 - Investors should not rely on forward-looking statements20 About One Liberty Properties One Liberty Properties is a self-managed Maryland REIT, established in 1982, acquiring and managing diversified industrial and retail properties under long-term net leases - One Liberty is a self-managed Maryland-chartered real estate investment trust (REIT), established in 198221 - The company acquires, owns, and manages a geographically diversified portfolio primarily consisting of industrial and retail properties, typically under long-term net leases21 Contact Information Contact information for One Liberty Properties investor relations is provided - Investor Relations contact: Phone: (516) 466-3100, Website: www.onelibertyproperties.com[22](index=22&type=chunk) Condensed Financial Statements Condensed Balance Sheets This section presents condensed balance sheets as of March 31, 2025, and December 31, 2024, detailing assets, liabilities, and equity | ASSETS (Amounts in Thousands) | March 31, 2025 | December 31, 2024 | | :---------------------------- | :------------- | :---------------- | | Real estate investments, net | $747,316 | $672,305 | | Cash and cash equivalents | $8,162 | $42,315 | | Total assets | $811,688 | $766,954 | | LIABILITIES AND EQUITY | | | | Mortgages payable, net | $465,971 | $420,555 | | Line of credit | $5,000 | — | | Total liabilities | $507,356 | $458,379 | | Total One Liberty Properties, Inc. stockholders' equity | $303,231 | $307,425 | | Total liabilities and equity | $811,688 | $766,954 | Condensed Statements of Operations This section outlines condensed statements of operations for Q1 2025 and 2024, including revenues, operating expenses, net income, and key metrics like EPS, FFO, and AFFO | Revenues (Amounts in Thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------ | :-------------------------------- | :-------------------------------- | | Rental income, net | $24,170 | $22,446 | | Total revenues | $24,170 | $22,696 | | Total operating expenses | $15,659 | $14,477 | | Operating income | $9,621 | $10,003 | | Net income attributable to One Liberty Properties, Inc. | $4,155 | $5,155 | | Diluted EPS | $0.18 | $0.23 | | FFO | $9,573 | $9,559 | | FFO per diluted share | $0.44 | $0.45 | | AFFO | $10,510 | $10,210 | | AFFO per diluted share | $0.48 | $0.48 | Reconciliation of Non-GAAP Financial Measures This section provides detailed reconciliation tables for GAAP net income to FFO and AFFO, including total and per-share data, for Q1 2025 and 2024 | FFO Reconciliation (Amounts in Thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------------- | :-------------------------------- | :-------------------------------- | | GAAP net income attributable to One Liberty Properties, Inc. | $4,155 | $5,155 | | Add: depreciation and amortization of properties | $6,334 | $5,832 | | Deduct: gain on sale of real estate, net | $(1,110) | $(1,784) | | NAREIT funds from operations applicable to common stock | $9,573 | $9,559 | | AFFO Reconciliation (Amounts in Thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | NAREIT funds from operations applicable to common stock | $9,573 | $9,559 | | Deduct: straight-line rent accruals and amortization of lease intangibles | $(654) | $(661) | | Add: amortization of restricted stock and RSU compensation | $1,346 | $1,272 | | Adjusted funds from operations applicable to common stock | $10,510 | $10,210 |