One Liberty Properties' Strong Performance: Key Highlights
One Liberty Properties Reports Strong Financial Performance
– Agreement to Acquire Industrial Property for $24 Million –
– Sale of Three Retail Assets for $6.5 Million Gain –
One Liberty Properties, Inc. (NYSE: OLP), a reputable real estate investment trust specializing in industrial properties, has recently revealed its operational results for the second quarter ending June 30, 2025. The company's strategy to transform its portfolio primarily into industrial properties is yielding positive outcomes.
Positive Portfolio Transformation
Patrick J. Callan, Jr., President and CEO of One Liberty, expressed satisfaction regarding the continuous transition towards a primarily industrial property portfolio. This change has proven beneficial, contributing significantly to the company’s financial results this quarter. Alongside the planned acquisition of another industrial property, the successful sale of three non-industrial assets is key in supporting this strategic shift.
Robust Operating Results
In Q2 2025, One Liberty saw a remarkable 12.3% increase in rental income compared to the previous year, totaling $24.5 million. This growth is attributed to a combination of new acquisitions and strategic dispositions made in recent years, as well as increases in same-store rental income driven by tenant reimbursements and new lease activities.
Operating Expenses Breakdown
Total operating expenses amounted to $15.7 million this quarter, an uptick from $14.9 million in the same period last year. The increase in expenses largely reflects higher real estate costs that are subject to recovery from tenants and depreciation owed to recent acquisitions.
Net Income, FFO, and AFFO Insights
Net income for One Liberty in the second quarter stood at $8.4 million, representing $0.39 per share on a diluted basis, compared to $9.6 million or $0.45 from the prior year. The quarter also featured a notable $6.5 million gain on the sale of assets. Funds From Operations (FFO) reached $9.7 million, equating to a per-share increase of 4.7% to $0.45 compared with the previous year.
AFFO Performance
Adjusted Funds from Operations (AFFO) for the quarter totaled $10.6 million, yielding $0.49 per diluted share, reflecting a 2.1% growth from $0.48 in the comparative quarter last year. These increases, driven by rising rental income, were slightly offset by heightened interest and operational expenses.
Strategic Acquisitions and Dispositions
During this quarter, One Liberty committed to acquiring a 210,600 square foot single-tenant industrial property located in Blythewood, South Carolina, for $24 million. Anticipating the need for additional financing, the company plans to secure mortgage debt of approximately $14 million at an interest rate of 5.77%.
Moreover, One Liberty successfully completed the sale of three retail properties, including a multi-tenant shopping center, generating a net gain of $6.5 million after related mortgage debt repayment.
Financial Position and Liquidity Overview
As of June 30, 2025, One Liberty's total assets reached an impressive $795.6 million, with cash and cash equivalents totaling $19.0 million. The firm maintains a strong liquidity position, with available liquidity of approximately $115.5 million as of August 1, 2025.
Future Outlook
Looking ahead, One Liberty continues to explore potential acquisitions and real estate ventures that will enhance value for its shareholders. The company’s focus on industrial properties remains firm, as management aims for sustained growth and stability within this sector.
Frequently Asked Questions
What recent agreements has One Liberty Properties entered into?
One Liberty has entered an agreement to acquire an industrial property for $24 million as part of its strategic transformation.
How has the rental income changed in the second quarter compared to last year?
In Q2 2025, rental income increased by 12.3% to $24.5 million due to positive impacts from acquisitions and improved same-store income.
What was the company's net income in the second quarter?
The net income for the second quarter of 2025 was $8.4 million, or $0.39 per diluted share.
What does FFO stand for and what was the latest figure?
FFO stands for Funds from Operations, which for this quarter was reported at $9.7 million, approximately $0.45 per diluted share.
What is the expected benefit of the recent property acquisitions?
The recent acquisitions are expected to enhance revenue stability and shareholder value through consistent rental income and appreciation of property values.
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