ONE LIBERTY PROPERTIES INC Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>One Liberty Properties, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024, detailing financial information and equity components.</b>

AI Summary

ONE LIBERTY PROPERTIES INC (OLP) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. One Liberty Properties, Inc. filed a 10-Q report for the period ending March 31, 2024. The filing includes financial data for the company, identified by Central Index Key 0000712770. The company's Standard Industrial Classification is Real Estate Investment Trusts [6798]. The filing details various equity components as of March 31, 2024, including Common Stock and Additional Paid-In Capital. Key dates related to the filing and reporting period are provided, with the report filed on May 7, 2024.

Why It Matters

For investors and stakeholders tracking ONE LIBERTY PROPERTIES INC, this filing contains several important signals. This 10-Q filing provides investors with a detailed look at One Liberty Properties' financial health and operational status as of the first quarter of 2024. Understanding the equity structure and financial disclosures in this report is crucial for assessing the company's performance and future prospects in the real estate investment trust sector.

Risk Assessment

Risk Level: low — ONE LIBERTY PROPERTIES INC shows low risk based on this filing. The filing is a standard 10-Q report, which is a routine disclosure for public companies and does not contain immediate red flags.

Analyst Insight

Review the detailed financial statements and equity disclosures within the 10-Q to understand the company's current financial position and any changes from previous periods.

Key Numbers

• 20240331 — Period of Report (Conformed Period of Report)
• 20240507 — Filing Date (Filed as of Date)
• 0000712770 — Central Index Key (Filer's Central Index Key)
• 6798 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• ONE LIBERTY PROPERTIES INC (company) — Filer name
• 0000712770 (company) — Central Index Key
• 6798 (regulator) — Standard Industrial Classification
• MD (company) — State of Incorporation
• NY (company) — State of Business Address
• 5164663100 (dollar_amount) — Business Phone
• 19851112 (company) — Date of Name Change
• 2024-03-31 (date) — Conformed Period of Report

FAQ

Industry Context

One Liberty Properties, Inc. operates as a real estate investment trust (REIT), focusing on owning and managing a portfolio of commercial properties.

Regulatory Implications

As a publicly traded company, One Liberty Properties, Inc. is subject to the reporting requirements of the U.S. Securities and Exchange Commission (SEC), including the filing of quarterly reports (10-Q).

What Investors Should Do

1. Analyze the balance sheet and income statement for the quarter ended March 31, 2024.
2. Examine the changes in equity accounts, such as Common Stock and Additional Paid-In Capital.
3. Review any disclosures related to variable interest entities or specific properties mentioned in the filing.

Key Dates

• 2024-05-07T00:00:00.000Z: Filing Date — Filing of the 10-Q report
• 2024-03-31T00:00:00.000Z: Reporting Period End Date — End of the fiscal quarter reported

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending March 31, 2024; no prior period comparison data is available within this specific document.

Filing Documents

• olp-20240331x10q.htm (10-Q) — 1904KB
• olp-20240331xex31d1.htm (EX-31.1) — 12KB
• olp-20240331xex31d2.htm (EX-31.2) — 11KB
• olp-20240331xex32d1.htm (EX-32.1) — 7KB
• olp-20240331xex32d2.htm (EX-32.2) — 9KB
• 0001558370-24-007080.txt (&nbsp;) — 8378KB
• olp-20240331.xsd (EX-101.SCH) — 70KB
• olp-20240331_cal.xml (EX-101.CAL) — 72KB
• olp-20240331_def.xml (EX-101.DEF) — 279KB
• olp-20240331_lab.xml (EX-101.LAB) — 561KB
• olp-20240331_pre.xml (EX-101.PRE) — 425KB
• olp-20240331x10q_htm.xml (XML) — 1374KB

— Financial Information

Part I — Financial Information Item 1. Unaudited Consolidated Financial Statements Consolidated Balance Sheets — March 31, 2024 and December 31, 2023 1 Consolidated Statements of Income — Three months ended March 31, 2024 and 2023 2 Consolidated Statements of Comprehensive Income — Three months ended March 31, 2024 and 2023 3 Consolidated Statements of Changes in Equity — Three months ended March 31, 2024 and 2023 4 Consolidated Statements of Cash Flows — Three months ended March 31, 2024 and 2023 5

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 35

— Other Information

Part II — Other Information 36 Item 5 . Other Information 36 Item 6. Exhibits 36 Table of Contents

— FINANCIAL INFORMATION

Part I — FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in Thousands, Except Par Value) March 31, December 31, 2024 2023 ASSETS (Unaudited) Real estate investments, at cost Land $ 172,135 $ 172,309 Buildings and improvements 692,489 692,346 Total real estate investments, at cost 864,624 864,655 Less accumulated depreciation 187,346 182,705 Real estate investments, net 677,278 681,950 Investment in unconsolidated joint ventures 2,104 2,051 Cash and cash equivalents 27,373 26,430 Unbilled rent receivable 16,872 16,661 Unamortized intangible lease assets, net 13,650 14,681 Escrow, deposits and other assets and receivables 18,392 19,833 Total assets (1) $ 755,669 $ 761,606 LIABILITIES AND EQUITY Liabilities: Mortgages payable, net (see Note 7) $ 416,539 $ 418,347 Line of credit — — Dividends payable 10,092 9,916 Accrued expenses and other liabilities 13,309 15,502 Unamortized intangible lease liabilities, net 9,679 10,096 Total liabilities (1) 449,619 453,861 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; 20,526 and 20,323 shares issued and outstanding 20,526 20,323 Paid-in capital 328,883 326,379 Accumulated other comprehensive income 755 844 Distributions in excess of net income ( 45,330 ) ( 40,843 ) Total One Liberty Properties, Inc. stockholders' equity 304,834 306,703 Non-controlling interests in consolidated joint ventures (1) 1,216 1,042 Total equity 306,050 307,745 Total liabilities and equity $ 755,669 $ 761,606 (1) The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs")

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) MARCH 31, 2024 NOTE 1 – ORGANIZATION AND BACKGROUND One Liberty Properties, Inc. ("OLP") was incorporated in 1982 in Maryland. OLP is a self-administered and self-managed real estate investment trust ("REIT"). OLP acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial and, to a lesser extent, retail properties, many of which are subject to long-term net leases. As of March 31, 2024, OLP owns 110 properties, including three properties owned by consolidated joint ventures and two properties owned by unconsolidated joint ventures. The 110 properties are located in 31 states. NOTE 2 – SUMMARY ACCOUNTING POLICIES Principles of Consolidation/Basis of Preparation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles ("GAAP") for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments of a normal recurring nature necessary for fair presentation have been included. The results of operations for the three months ended March 31, 2024 and 2023 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in OLP's Annual Report on Form 10-K for the year ended December 31, 2023. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, it

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) MARCH 31, 2024 (CONTINUED) NOTE 2 – SUMMARY ACCOUNTING POLICIES (CONTINUED) Investment in Joint Ventures and Variable Interest Entities The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE's economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE. The Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement, to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights, such as the requirement of partner approval to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where, among other things, the Company and its partners jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture's tax return before filing, or (iv) approve each lease at a property, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. Additionally, the Company assesses the accounting treatment for any in

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) MARCH 31, 2024 (CONTINUED) NOTE 3 – LEASES Lessor Accounting The Company owns rental properties which are leased to tenants under operating leases with current expirations ranging from 2024 to 2055, with options to extend or terminate the lease. Revenues from such leases are reported as Rental income, net, and are comprised of (i) lease components, which includes fixed and variable lease payments and (ii) non-lease components which includes reimbursements of property level operating expenses. The Company does not separate non-lease components from the related lease components, as the timing and pattern of transfer are the same, and account for the combined component in accordance with ASC 842. Fixed lease revenues represent the base rent that each tenant is required to pay in accordance with the terms of its respective leases, and any lease incentives paid or payable to the lessee, reported on a straight-line basis over the non-cancelable term of the lease. Variable lease revenues typically include payments based on (i) tenant reimbursements, (ii) changes in the index or market-based indices after the inception of the lease, (iii) percentage rents and (iv) the operating performance of the property. Variable lease revenues are not recognized until the specific events that trigger the variable payments have occurred. The components of lease revenues are as follows (amounts in thousands): Three Months Ended March 31, 2024 2023 Fixed lease revenues $ 18,272 $ 19,358 Variable lease revenues 3,796 3,370 Lease revenues (a) $ 22,068 $ 22,728 (a) Excludes $ 378 and $ 224 of amortization related to lease intangible assets and liabilities for the three months ended March 31, 2024 and 2023, respectively. In many of the Company's leases, the tenant is obligated to pay the real estate taxes, insurance, and certain other expenses directly to the vendor. These obligations, which have be

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) MARCH 31, 2024 (CONTINUED) NOTE 3 – LEASES (CONTINUED) Lessee Accounting Ground Lease The Company is a lessee under a ground lease in Greensboro, North Carolina, which is classified as an operating lease. The ground lease expires March 3, 2025 and provides for up to four , five-year renewal options and one seven-month renewal option. As of March 31, 2024, the remaining lease term, including a five-year renewal option deemed exercised, is 5.9 years. The Company recognized lease expense related to this ground lease of $ 122,000 and $ 150,000 for the three months ended March 31, 2024 and 2023, respectively, which is included in Real estate expenses on the consolidated statements of income. Office Lease The Company is a lessee under a corporate office lease in Great Neck, New York, which is classified as an operating lease. The lease expires on December 31, 2031 and provides for a five-year renewal option . As of March 31, 2024, the remaining lease term, including the renewal option deemed exercised, is 12.8 years. The Company recognized lease expense related to this office lease of $ 14,000 in each of the three months ended March 31, 2024 and 2023, respectively, which is included in General and administrative expenses on the consolidated statements of income. Minimum Future Lease Payments As of March 31, 2024, the minimum future lease payments related to these operating leases are as follows (amounts in thousands): From April 1 – December 31, 2024 $ 430 For the year ending December 31, 2025 626 2026 627 2027 629 2028 630 2029 692 Thereafter 537 Total undiscounted cash flows $ 4,171 Present value discount ( 893 ) Lease liability $ 3,278 The lease liability is included in Accrued expenses and other liabilities on the consolidated balance sheet. Lease termination fee In March 2024, a consolidated joint venture in Lakewood, Colorado, in which the Company holds a 90 %

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) MARCH 31, 2024 (CONTINUED) NOTE 4 – SALES OF PROPERTIES On March 6, 2024, a consolidated joint venture, in which the Company holds a 90 % interest, sold a restaurant parcel at its multi-tenant shopping center in Lakewood, Colorado for $ 2,670,000 , net of closing costs. The sale resulted in a gain of $ 1,784,000 which was recorded as Gain on sale of real estate, net, in the consolidated statement of income for the three months ended March 31, 2024. In connection with this sale, the joint venture (i) wrote-off $ 50,000 of unbilled rent receivable and $ 68,000 of other assets as an adjustment to Gain on sale of real estate, net and (ii) paid down $ 1,885,000 of the mortgage on this property. The non-controlling interest's share of the gain was $ 178,000 . On February 28, 2023, the Company sold a restaurant property located in Hauppauge, New York for $ 4,076,000 , net of closing costs. The sale resulted in a gain of $ 1,534,000 which was recorded as Gain on sale of real estate, net, in the consolidated statement of income for the three months ended March 31, 2023. In connection with the sale, the Company wrote-off $ 128,000 of other assets and receivables as an adjustment to Gain on sale of real estate, net. Sales subsequent to March 31, 2024 During the quarter ended March 31, 2024, the Company entered into contracts to sell the following properties (amounts in thousands): Estimated Gain Held-for-s

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