ONE LIBERTY PROPERTIES INC [OLP] Filings

10-Q 1 olp-20230930x10q.htm 10-Q UNITED STATES

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2023

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 001-09279

ONE LIBERTY PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

MARYLAND		13-3147497
(State or other jurisdiction of		(I.R.S. employer
incorporation or organization)		identification number)

60 Cutter Mill Road, Great Neck, New York		11021
(Address of principal executive offices)		(Zip code)

(516) 466-3100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	OLP	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ◻		Accelerated filer ◻

Non-accelerated filer ⌧		Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Yes ◻ No ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of November 1, 2023, the registrant had 21,065,691 shares of common stock outstanding.

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One Liberty Properties, Inc. and Subsidiaries

Table of Contents


		Page No.
Part I — Financial Information

Item 1.	Unaudited Consolidated Financial Statements

	Consolidated Balance Sheets — September 30, 2023 and December 31, 2022	1

	Consolidated Statements of Income — Three and nine months ended September 30, 2023 and 2022	2

	Consolidated Statements of Comprehensive Income — Three and nine months ended September 30, 2023 and 2022	3

	Consolidated Statements of Changes in Equity — Three and nine months ended September 30, 2023 and 2022	4

	Consolidated Statements of Cash Flows — Nine months ended September 30, 2023 and 2022	6

	Notes to Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39

Item 4.	Controls and Procedures	39

Part II — Other Information			40

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40

Item 5.	Other Information	40

Item 6.	Exhibits	40

Table of Contents

Part I — FINANCIAL INFORMATION

Item 1. Financial Statements

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands, Except Par Value)


	September 30,		December 31,
	2023		2022
ASSETS	(Unaudited)
Real estate investments, at cost
Land	$	179,342	$	181,805
Buildings and improvements		706,027		697,791
Total real estate investments, at cost		885,369		879,596
Less accumulated depreciation		184,414		173,143
Real estate investments, net		700,955		706,453

Investment in unconsolidated joint ventures		9,607		10,400
Cash and cash equivalents		5,471		6,718
Unbilled rent receivable		17,242		16,079
Unamortized intangible lease assets, net		16,848		19,841
Escrow, deposits and other assets and receivables		17,651		23,764
Total assets⁽¹⁾	$	767,774	$	783,255
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net (see Note 8)	$	416,727	$	405,162
Line of credit, net of $594 and $732 of deferred financing costs, respectively		11,906		21,068
Dividends payable		9,890		9,693
Accrued expenses and other liabilities		15,691		19,270
Unamortized intangible lease liabilities, net		10,443		11,125
Total liabilities⁽¹⁾		464,657		466,318

Commitments and contingencies

Equity:
One Liberty Properties, Inc. stockholders’ equity:
Preferred stock, $1 par value; 12,500 shares authorized; none issued		—		—
Common stock, $1 par value; 50,000 shares authorized; 20,409 and 20,362 shares issued and outstanding		20,409		20,362
Paid-in capital		326,635		325,895
Accumulated other comprehensive income		1,337		1,810
Distributions in excess of net income		(46,274)		(32,102)
Total One Liberty Properties, Inc. stockholders’ equity		302,107		315,965
Non-controlling interests in consolidated joint ventures⁽¹⁾		1,010		972
Total equity		303,117		316,937
Total liabilities and equity	$	767,774	$	783,255

(1)

The Company’s consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”). See Note 6. The consolidated balance sheets include the following amounts related to the Company’s consolidated VIEs: $10,365 and $10,365 of land, $17,929 and $17,870 of building and improvements, net of $6,235 and $5,670 of accumulated depreciation, $3,163 and $3,518 of other assets included in other line items, $17,960 and $18,500 of real estate debt, net, $1,042 and $1,135 of other liabilities included in other line items and $1,010 and $972 of non-controlling interests as of September 30, 2023 and December 31, 2022, respectively.

See accompanying notes to consolidated financial statements.

Table of Contents

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in Thousands, Except Per Share Data)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Revenues:
Rental income, net	$	22,546	$	21,473	$	67,905	$	64,476
Lease termination fee		—		—		—		25
Total revenues		22,546		21,473		67,905		64,501

Operating expenses:
Depreciation and amortization		6,310		5,970		18,569		17,718
General and administrative (see Note 9 for related party information)		3,864		3,769		12,068		11,534
Real estate expenses (see Note 9 for related party information)		4,061		3,970		12,139		11,206
State taxes		76		60		232		211
Total operating expenses		14,311		13,769		43,008		40,669

Other operating income
Gain on sale of real estate, net		332		4,063		5,046		16,762
Operating income		8,567		11,767		29,943		40,594

Other income and expenses:
Equity in (loss) earnings of unconsolidated joint ventures		(905)		82		(761)		310
Income on settlement of litigation (see Note 13)		—		—		—		5,388
Other income (see Note 13)		87		17		131		997
Interest:
Expense		(4,768)		(4,367)		(13,978)		(13,026)
Amortization and write-off of deferred financing costs		(212)		(278)		(619)		(917)

Net income		2,769		7,221		14,716		33,346
Net income attributable to non-controlling interests		(22)		(17)		(64)		(52)
Net income attributable to One Liberty Properties, Inc.	$	2,747	$	7,204	$	14,652	$	33,294

Weighted average number of common shares outstanding:
Basic		20,567		20,340		20,552		20,361
Diluted		20,596		20,416		20,598		20,472

Per common share attributable to common stockholders:
Basic	$	.12	$	.34	$	.67	$	1.58
Diluted	$	.12	$	.34	$	.66	$	1.57

Cash distributions per share of common stock	$	.45	$	.45	$	1.35	$	1.35

See accompanying notes to consolidated financial statements.

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ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in Thousands)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net income	$	2,769	$	7,221	$	14,716	$	33,346

Other comprehensive income
Net unrealized (loss) gain on derivative instruments		(207)		931		(475)		3,371
Comprehensive income		2,562		8,152		14,241		36,717

Net income attributable to non-controlling interests		(22)		(17)		(64)		(52)
Adjustment for derivative instruments attributable to non-controlling interests		1		(1)		2		(3)
Comprehensive income attributable to One Liberty Properties, Inc.	$	2,541	$	8,134	$	14,179	$	36,662

See accompanying notes to consolidated financial statements.

Table of Contents

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Amounts in Thousands, Except Per Share Data)

(Unaudited) (Continued on Next Page)


					Accumulated		Accumulated		Non-Controlling
					Other		Distributions		Interests in
	Common		Paid-in		Comprehensive		in Excess of		Consolidated
	Stock		Capital		Income (loss)		Net Income		Joint Ventures		Total
Balances, December 31, 2022	$	20,362	$	325,895	$	1,810	$	(32,102)	$	972	$	316,937
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,628)		—		(9,628)
Restricted stock vesting		135		(135)		—		—		—		—
Shares issued through dividend reinvestment plan		49		1,025		—		—		—		1,074
Distributions to non-controlling interests		—		—		—		—		(9)		(9)
Compensation expense – restricted stock and RSUs		—		1,328		—		—		—		1,328
Net income		—		—		—		5,386		22		5,408
Other comprehensive (loss)		—		—		(409)		—		—		(409)
Balances, March 31, 2023		20,546		328,113		1,401		(36,344)		985		314,701
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,626)		—		(9,626)
Restricted stock vesting		17		(17)		—		—		—		—
Repurchases of common stock – net		(73)		(1,382)		—		—		—		(1,455)
Shares issued through dividend reinvestment plan		50		1,048		—		—		—		1,098
Distributions to non-controlling interests		—		—		—		—		(7)		(7)
Compensation expense – restricted stock and RSUs		—		1,564		—		—		—		1,564
Net income		—		—		—		6,519		20		6,539
Other comprehensive income (loss)		—		—		142		—		(1)		141
Balances, June 30, 2023		20,540		329,326		1,543		(39,451)		997		312,955
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,570)		—		(9,570)
Restricted stock unit vesting		75		(75)		—		—		—		—
Repurchases of common stock – net		(262)		(4,882)		—		—		—		(5,144)
Shares issued through dividend reinvestment plan		56		1,055		—		—		—		1,111
Distributions to non-controlling interests		—		—		—		—		(8)		(8)
Compensation expense – restricted stock and RSUs		—		1,211		—		—		—		1,211
Net income		—		—		—		2,747		22		2,769
Other comprehensive (loss)		—		—		(206)		—		(1)		(207)
Balances, September 30, 2023	$	20,409	$	326,635	$	1,337	$	(46,274)	$	1,010	$	303,117

See accompanying notes to consolidated financial statements.

Table of Contents

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Amounts in Thousands, Except Per Share Data)

(Unaudited) (Continued)


					Accumulated		Accumulated		Non-Controlling
					Other		Distributions		Interests in
	Common		Paid-in		Comprehensive		in Excess of		Consolidated
	Stock		Capital		Income (Loss)		Net Income		Joint Ventures		Total
Balances, December 31, 2021	$	20,239	$	322,793	$	(1,513)	$	(36,187)	$	946	$	306,278
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,559)		—		(9,559)
Restricted stock vesting		131		(131)		—		—		—		—
Shares issued through equity offering program – net		17		546		—		—		—		563
Shares issued through dividend reinvestment plan		5		156		—		—		—		161
Distributions to non-controlling interests		—		—		—		—		(33)		(33)
Compensation expense – restricted stock and RSUs		—		1,325		—		—		—		1,325
Net income		—		—		—		9,323		17		9,340
Other comprehensive income		—		—		1,773		—		2		1,775
Balances, March 31, 2022		20,392		324,689		260		(36,423)		932		309,850
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,494)		—		(9,494)
Restricted stock vesting		16		(16)		—		—		—		—
Repurchases of common stock – net		(133)		(3,285)		—		—		—		(3,418)
Shares issued through dividend reinvestment plan		6		157		—		—		—		163
Distributions to non-controlling interests		—		—		—		—		(8)		(8)
Compensation expense – restricted stock and RSUs		—		1,559		—		—		—		1,559
Net income		—		—		—		16,767		18		16,785
Other comprehensive income		—		—		665		—		—		665
Balances, June 30, 2022		20,281		323,104		925		(29,150)		942		316,102
Distributions – common stock

ONE LIBERTY PROPERTIES INC [OLP] Filings
10-Q	[2023-11-06]
10-Q	[2023-08-04]
10-Q	[2023-05-05]
10-K	[2023-03-14]
10-Q	[2022-11-04]
10-Q	[2022-08-04]
10-Q	[2022-05-06]
10-K	[2022-03-11]
10-Q	[2021-11-05]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-03-12]
10-Q	[2020-11-05]
10-Q	[2020-08-07]
10-Q	[2020-05-08]
10-K	[2020-03-16]
10-Q	[2019-11-08]
10-Q	[2019-08-07]
10-Q	[2019-05-09]
10-K	[2019-03-18]
10-Q	[2018-11-08]
10-Q	[2018-08-06]
10-Q	[2018-05-07]
10-K	[2018-03-14]
10-Q	[2017-11-08]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-03-10]
10-Q	[2016-11-08]
10-Q	[2016-08-05]
10-Q	[2016-05-10]
10-K	[2016-03-15]
10-Q	[2015-11-09]
10-Q	[2015-08-06]
10-Q	[2015-05-11]
10-K	[2015-03-12]
10-Q	[2014-11-06]
10-Q	[2014-08-07]
10-Q	[2014-05-08]
10-K	[2014-03-17]
10-Q	[2013-11-12]
10-Q	[2013-08-08]
10-Q	[2013-05-08]
10-K	[2013-03-15]
10-Q	[2012-11-09]
10-Q	[2012-08-08]
10-Q	[2012-05-09]
10-K	[2012-03-14]