– Enters Agreement to Acquire Industrial Property for $24.0 Million Bringing 2025 Acquisitions to Over $112 Million – – Completes Sale of Three Retail Assets for $6.5 Million Gain – GREAT NECK, N.Y., Aug. 05, 2025 (GLOBE NEWSWIRE) -- One Liberty Properties, Inc. (NYSE: OLP), a real estate investment trust focused on industrial properties, today announced operating results for the quarter ended June 30, 2025. “We are pleased that the transformation of our portfolio to primarily industrial properties contribu ...

Financial Data and Key Metrics Changes - The company reported an AFFO per share of $1.28 for the second quarter, representing a 9.4% increase year-over-year, driven by accretive investment activity and sector-leading rent growth [16] - The full-year AFFO guidance range has been raised to between $4.87 and $4.95 per share, implying a 4.5% year-over-year growth at the midpoint [16][27] - Contractual same-store rent growth for the second quarter was 2.3% year-over-year, with comprehensive same-store rent growth at 4% [17] Business Line Data and Key Metrics Changes - The majority of second-quarter investments were in warehouse and industrial properties, which also represent the bulk of the investment pipeline [10] - The average yield on investments year-to-date is in the mid-nine percent range, one of the highest in the net lease sector [8][10] - The company has closed approximately $550 million in deals during the second quarter at an initial weighted average cap rate of 7.5% [8] Market Data and Key Metrics Changes - Investments were primarily concentrated in the U.S., with a notable increase in deal volume in Europe during the third quarter [10] - The company has identified a strong pipeline of $700 million in advanced-stage deals, with expectations for continued favorable market conditions [9] Company Strategy and Development Direction - The company is focused on maintaining strong investment volume and has raised its investment guidance for the year, expecting to complete $1.4 billion to $1.8 billion in investments [16][27] - The strategy includes accretive sales of non-core assets, with an expectation of achieving over 100 basis points of spread between asset sales and new investments [12] - The company aims to continue building its portfolio through capital projects, including build-to-suits and expansions, with nearly $300 million of projects underway [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining momentum despite broader economic uncertainties, noting no unforeseen disruptions in business or tenant credit events [7][26] - The company is monitoring trade policy developments but has not seen direct impacts on its portfolio [14][56] - Management believes the foundation built this year positions the company well for long-term growth and value creation for shareholders [27] Other Important Information - The company declared a dividend of $0.90 per share, representing a 3.4% increase over the prior year, with a payout ratio of approximately 73% of AFFO per share [25] - The company ended the second quarter with liquidity of about $1.7 billion and a low weighted average cost of debt at 3.1% [23][24] Q&A Session Summary Question: Expectations for comprehensive income in the second half of the year - Management expects comprehensive income to normalize in the back half of the year, potentially tracking slightly above contractual levels [29][31] Question: Transition of self-storage operating portfolio to net lease structure - The company has flexibility regarding the remaining self-storage portfolio and may lean towards more sales or conversions to net lease structures [33] Question: AFFO guidance implications for the second half of the year - Management highlighted that the second quarter's elevated other lease-related income is expected to normalize, impacting AFFO guidance [42][43] Question: Credit quality of tenants and market conditions - Management noted improved credit quality among tenants and a stable transaction market, which is driving increased opportunities [78] Question: Impact of new entrants in the net lease market - Management acknowledged increased competition but remains confident in its ability to compete effectively in the market [83] Question: Acquisition and disposition cap rates for the quarter - The company reported acquisition cap rates in the mid-sevens and disposition cap rates approaching 6% for the full year [95][96]

Rexford Industrial Overview - Rexford Industrial Realty has a portfolio of 424 industrial properties, encompassing 51 million square feet, with an entity value of $13 billion[7] - The company focuses on prime infill locations in Southern California[7, 13] - Rexford's FFO per share growth has a 5-year CAGR of 10%, exceeding the REIT average of 3%[9, 10] - The dividend per share growth has a 5-year CAGR of 16%, significantly higher than the REIT average of 3%[9, 10] Growth and Value Creation - Rexford has substantial embedded cash NOI growth, including a $60 million portfolio mark-to-market, $105 million in annual embedded rent steps, and $70 million from repositioning and redevelopment[17] - Repositioning and redevelopment projects in-process or in lease-up are expected to generate $70 million in annualized stabilized cash NOI[17, 18, 25] - The company's leasing activity in 1Q 2025 covered 2.4 million square feet, with average embedded rent steps of 3.6% in executed leases[28] Market and Portfolio - Southern California is the largest and highest-value industrial market in the nation, valued at $32 billion with 2.1 billion square feet[38] - Rexford's portfolio has a trailing 12-month average executed lease rate of $19.16 per square foot, a 22% premium over the Infill SoCal average of $15.65[59] - Over the last 4 years, >85% of transactions were executed off/lightly-marketed[34]

Financial Data and Key Metrics Changes - Funds from Operations (FFO) and Core FFO per share remained stable at $0.34 for both Q1 2025 and Q1 2024 [14] - Total operating revenues increased to $37,500,000 in Q1 2025 from $35,700,000 in Q1 2024, while operating expenses rose to $23,900,000 from $23,300,000 [15] - Net assets increased from $1,090,000,000 to $1,160,000,000 due to acquisitions [15] Business Line Data and Key Metrics Changes - The company acquired industrial properties totaling 355,778 square feet for $73,250,000, increasing industrial concentration to 65% of annualized straight-line rent [10] - Same store rents increased by 6.6% compared to the same period in 2024, driven by higher property expense recovery revenue and rental rates [14] Market Data and Key Metrics Changes - U.S. Treasury yields remain volatile, impacting inflation and economic growth outlooks [6] - Industrial real estate sector showed resilience with net absorption of 23,100,000 square feet, matching levels from the previous year, while vacancy rates rose slightly to 7% [7][8] Company Strategy and Development Direction - The company aims to increase industrial concentration to at least 70% and continues to focus on acquiring high-quality, mission-critical industrial assets [10][12] - The strategy includes selectively disposing of non-core assets and extending lease terms to capture market opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter despite macroeconomic uncertainties and noted that the industrial sector continues to perform well [6][10] - The company is well-positioned with over $99,000,000 in availability via its line of credit and cash on hand for future acquisitions [13] Other Important Information - The company sold one office property for a gain of $377,000 and recognized a selling profit of $3,900,000 from a sales-type lease [10][21] - The common stock dividend is set at $0.30 per share per quarter, with a yield of 8.68% at the last closing price [18] Q&A Session Summary Question: What is the current acquisition pipeline and market activity for industrial properties? - Management indicated that they have approximately $70,000,000 under contract and a backlog of about $140,000,000 consisting of 10 assets, with increased competition from family offices and private equity [23][24] Question: Are sellers more willing to negotiate on price? - Management noted a combination of both increased asset availability and seller willingness to negotiate, aided by strong broker relationships [30] Question: What is the status of lease expirations for 2026 and 2027? - Management is actively working on lease expirations for 2026 and 2027, with a good handle on upcoming negotiations [34] Question: What is the situation with the Austin office property? - Management reported positive cash flow from the Austin property and ongoing efforts to increase tenancy [46] Question: Any changes in acquisition parameters due to government policy? - Management confirmed a focus on light manufacturing, which is seen as more attractive compared to warehouse distribution in the current environment [48]