
Executive Summary & Company Highlights One Liberty Properties reported Q2 2025 results, highlighting a significant industrial acquisition, retail asset sales, and positive portfolio transformation Press Release Headline One Liberty Properties reported its Second Quarter 2025 results, highlighting a significant acquisition agreement for an industrial property and the successful sale of three retail assets - Entered agreement to acquire an industrial property for $24.0 million, bringing 2025 acquisitions to over $112 million2 - Completed the sale of three retail assets for a $6.5 million gain2 CEO Statement The CEO expressed satisfaction with the positive contribution of the portfolio's transformation towards industrial properties, emphasizing strong cash flow stability and the ongoing focus on accretive growth and stockholder value - The transformation of the portfolio to primarily industrial properties positively contributed to results4 - The company is advancing its transition toward a more pure-play industrial portfolio through new acquisitions and non-industrial asset sales4 - The portfolio continues to demonstrate strong cash flow stability, with a focus on accretive growth and unlocking additional value for stockholders4 Financial Performance Overview The company reported increased rental income and operating expenses in Q2 2025, with mixed results in net income, FFO, and AFFO per share Operating Results One Liberty Properties reported a 12.3% year-over-year increase in rental income for Q2 2025, primarily driven by acquisitions and dispositions, alongside modest same-store growth. Total operating expenses also increased due to higher real estate expenses and depreciation Rental Income Rental Income Summary | Metric | Q2 2025 | Q2 2024 | YoY Change | Drivers | | :----- | :------ | :------ | :--------- | :------ | | Rental Income | $24.5 million | N/A | +12.3% | Net impact of acquisitions and dispositions in 2025 and 2024, increase in same store rental income from tenant reimbursements, lease amendments/extensions and new lease activity | Operating Expenses Operating Expenses Summary | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Total Operating Expenses | $15.7 million | $14.9 million | +$0.8 million | | Real Estate Expenses | Higher | N/A | N/A | | Depreciation and Amortization | Increased | N/A | N/A | | Impairment (2024) | — | $1.1 million | N/A | - The increase in operating expenses primarily reflects higher real estate expenses (much of which is rebilled to tenants) and increased depreciation and amortization expense due to properties acquired in 2024 and 20256 Other Income and Expenses Net expenses in the second quarter of 2025 increased to $5.9 million from $4.7 million in the prior year, primarily due to higher interest expense resulting from an increased weighted average principal balance of debt and higher interest rates Net Expenses Summary | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Expenses | $5.9 million | $4.7 million | +$1.2 million | | Primary Driver | Higher interest expense | N/A | N/A | Net Income, FFO and AFFO Net income attributable to One Liberty decreased in Q2 2025 compared to Q2 2024, despite a $6.5 million gain on asset sales. However, Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) per diluted share both saw growth, driven by higher rental income offset by increased expenses. Diluted per share metrics were negatively impacted by an increase in weighted average common shares outstanding Net Income Attributable to OLP | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Income Attributable to OLP | $8.4 million | $9.6 million | -$1.2 million | | Net Income Per Diluted Share | $0.39 | $0.45 | -$0.06 | | Gain on Sale of Assets (Q2 2025) | $6.5 million ($0.30/share) | N/A | N/A | | Gain on Sale of Assets (Q2 2024) | N/A | $7.4 million ($0.35/share) | N/A | FFO and AFFO Summary | Metric | Q2 2025 | Q2 2024 | YoY Growth (per share) | | :----- | :------ | :------ | :--------------------- | | FFO | $9.7 million | $9.2 million | +4.7% ($0.45 vs $0.43) | | AFFO | $10.6 million | $10.2 million | +2.1% ($0.49 vs $0.48) | | Drivers | Higher rental income, offset by increases in interest expense and real estate operating expenses | N/A | N/A | - Diluted per share net income, FFO, and AFFO were negatively impacted by an average increase of approximately 292,000 in weighted average common shares outstanding due to stock issuances from equity incentive and dividend reinvestment programs10 Portfolio Activities One Liberty Properties expanded its industrial portfolio with a new acquisition and strategically divested three retail assets in Q2 2025 Acquisitions During Q2 2025, One Liberty Properties entered into an agreement to acquire a new industrial property in South Carolina for $24.0 million, further expanding its industrial portfolio Property Acquisition Details | Property Detail | Value | | :-------------- | :---- | | Type | Single-tenant industrial property | | Location | Blythewood, South Carolina | | Size | 210,600 square feet | | Purchase Price | $24.0 million | | Anticipated Mortgage Debt | ~$14.0 million (5.77% interest-only, maturing 2030) | | Expected Annual Base Rent | ~$1.5 million (with 3.5% annual increases) | | Expected Closing | By end of Q3 2025 | Dispositions The company completed the sale of three retail assets, including a joint venture property, generating a net gain of $6.5 million and net proceeds of $18.3 million after debt repayment, aligning with its strategy to transition to an industrial-focused portfolio - Sold three retail assets, including a multi-tenant retail shopping center owned by a consolidated joint venture (90% interest)12 Disposition Metrics | Metric | Value | | :----- | :---- | | Net Gain on Sale | $6.5 million (before minority interest's $972,000 share) | | Net Proceeds to Company | $18.3 million (after repayment of $5.8 million in mortgage debt) | Financial Position As of June 30, 2025, the company maintained a solid financial position with total assets of $795.6 million and $115.5 million in available liquidity Balance Sheet Highlights As of June 30, 2025, One Liberty Properties maintained a solid financial position with total assets of $795.6 million and total stockholders' equity of $303.4 million Balance Sheet Summary | Metric (as of June 30, 2025) | Amount | | :---------------------------- | :----- | | Cash and Cash Equivalents | $19.0 million | | Total Assets | $795.6 million | | Total Debt | $455.0 million | | Total Stockholders' Equity | $303.4 million | Available Liquidity As of August 1, 2025, the company reported approximately $115.5 million in available liquidity, comprising cash and credit facility availability Available Liquidity Summary | Metric (as of August 1, 2025) | Amount | | :---------------------------- | :----- | | Total Available Liquidity | ~$115.5 million | | Cash and Cash Equivalents | $15.5 million (including $3.0 million required deposit) | | Available under Credit Facility | $100 million | Subsequent Events Post-quarter end, One Liberty Properties completed two additional property sales, anticipating further gains in Q3 2025 Subsequent Property Sales Following the quarter end, One Liberty Properties completed two additional property sales, a land parcel and a retail property, anticipating further gains to be recognized in the third quarter of 2025 - On July 15, 2025, OLP sold a land parcel in Lakewood, Colorado for **$3