One Liberty Properties(US:OLP)2025-11-06 21:30Property Portfolio - As of September 30, 2025, the company owns 98 properties, including 61 industrial properties, with an occupancy rate of approximately 98.2%[117] - The company's 2026 base rent is approximately $77.4 million, with industrial properties contributing $61.5 million (79.6%) and retail properties contributing $11.9 million (15.4%) to this total[124][125] - Scheduled lease expirations indicate that 27 leases (17.5% of 2026 base rent) will expire in 2027, with a total base rent of $13.6 million[126] - The company acquired a 210,600 square foot industrial property for $24.0 million, with expected quarterly rental income of $405,000 starting October 1, 2025[129] - The company acquired a 397,440 square foot industrial property in Sewickley, Pennsylvania for $53.5 million, anticipating annual base rent of approximately $3.4 million with increases of 2.0% to 3.0%[135] - A 199,919 square foot industrial property in Oakdale, Minnesota was acquired for $23.0 million, with expected annual base rent of approximately $1.5 million and a 4.0% annual increase[136] Financial Performance - Total revenues for the three months ended September 30, 2025, increased by 7.0% to $23.8 million compared to $22.2 million in 2024, and for the nine months, revenues increased by 8.7% to $72.5 million from $66.7 million[138] - Net rental income for the three months ended September 30, 2025, was $23.8 million, a 7.0% increase from $22.2 million in 2024, while for the nine months, it was $66.5 million, up 9.0% from $72.4 million[139] - Gain on sale of real estate for the three months ended September 30, 2025, was $9.1 million, a 328.9% increase from $2.1 million in 2024, and for the nine months, it was $16.7 million, up 47.3% from $11.3 million[151] - Other income for the three months ended September 30, 2025, decreased by 75.9% to $85,000 from $353,000 in 2024[154] Expenses and Impairments - Total operating expenses for the three months ended September 30, 2025, increased by 18.5% to $17.0 million from $14.3 million in 2024, and for the nine months, expenses rose by 10.8% to $48.4 million from $43.7 million[144] - The company recorded a $1.3 million impairment loss for the three and nine months ended September 30, 2025, compared to a $1.1 million impairment loss in the same period of 2024[149] - An impairment charge of $1.3 million was recorded for The Vue Apartments, which had not generated revenue since 2020, with expected net proceeds from its sale of approximately $16.4 million[134] Debt and Liquidity - The company had available liquidity of $109.4 million as of October 31, 2025, including $9.4 million in cash and cash equivalents[158] - The total principal amount of outstanding mortgages payable was $463.1 million as of September 30, 2025, secured by 61 properties[160] - The company anticipates an increase in mortgage interest expense as it refinances maturing mortgages, with current rates generally higher than the existing weighted average rate of 3.78%[155] - The credit facility allows borrowing up to $100.0 million, with a maturity date of December 31, 2026, and an interest rate of 6.03% as of September 30, 2025[166] Funds from Operations - Funds from operations (FFO) are computed in accordance with NAREIT guidelines, excluding depreciation and amortization related to real estate[170] - Adjusted funds from operations (AFFO) are calculated by adjusting FFO for various items, reflecting the company's operational performance[171] - FFO for the three months ended September 30, 2025 decreased by $136,000, or 1.5%, compared to the same period in 2024, primarily offset by a $1.6 million increase in rental income, net[177] - AFFO for the three months ended September 30, 2025 increased by $173,000, or 1.7%, due to a $180,000 increase in rental income, net, and a $151,000 decrease in general and administrative expenses[178] - FFO for the nine months ended September 30, 2025 increased by $327,000, or 1.2%, compared to the same period in 2024[180] - AFFO for the nine months ended September 30, 2025 increased by $865,000, or 2.9%, primarily due to a $354,000 decrease in general and administrative expenses[180] Risks and Strategy - The company faces risks including tenant defaults, economic conditions, and interest rate volatility, which could impact cash flow and profitability[112][115] - The company maintains a strategy to diversify its property portfolio and minimize exposure to interest rate fluctuations through fixed-rate mortgage debt[119] Acquisitions and Sales - During the three months ended September 30, 2025, the company sold properties for a total gross sales price of $18.8 million, resulting in a gain of $9.1 million[130] - The company anticipates selling a retail property in Port Clinton, Ohio for $1.3 million, expecting net proceeds of approximately $500,000 after mortgage repayment[133] - The company expects to close the acquisition of the Pittsburgh Portfolio during the three months ending December 31, 2025[135] - The annual base rent from acquisitions in 2025 was $8.5 million, reflecting a 1,044.0% increase from $739,000 in 2024[139]