SOURCE: One Liberty Properties, Inc.

November 06, 2009 16:10 ET

One Liberty Properties, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2009

GREAT NECK, NY--(Marketwire - November 6, 2009) - One Liberty Properties, Inc. (NYSE: OLP) today announced that for the three months ended September 30, 2009, it had total revenues of $9,591,000 and net income of $3,440,000, or $.31 per share. For the three months ended September 30, 2008, One Liberty had total revenues of $8,746,000 and net income of $2,468,000, or $.22 per share. The weighted average number of common shares outstanding is 11,174,000 and 11,329,000 for the three months ended September 30, 2009 and September 30, 2008, respectively.

One Liberty also reported total revenues of $30,962,000 for the nine months ended September 30, 2009 compared to $25,973,000 for the nine months ended September 30, 2008. Total revenues for the nine months ended September 30, 2009 includes rental income of $29,178,000 and a lease termination fee of $1,784,000. All revenues for the nine months ended September 30, 2008 relate to rental income. Net income for the nine months ended September 30, 2009 was $10,536,000, or $.94 per share. This compares with net income of $8,493,000, or $.75 per share, for the nine months ended September 30, 2008. The weighted average number of common shares outstanding is 11,256,000 and 11,340,000 for the nine months ended September 30, 2009 and 2008, respectively.

Funds from operations (FFO) for the three months ended September 30, 2009 were $5,740,000, or $.51 per share, compared to $4,713,000, or $.42 per share for the three months ended September 30, 2008. FFO for the nine months ended September 30, 2009 was $17,725,000, or $1.57 per share, compared to $14,958,000, or $.1.32 per share for the nine months ended September 30, 2008. Funds from operations, calculated in accordance with the NAREIT definition, adds back to net income depreciation of properties, One Liberty's share of depreciation of its unconsolidated joint ventures and amortization of capitalized leasing expenses, and deducts from net income gain on sale of real estate assets, including One Liberty's share of the gain on disposition of real estate of unconsolidated joint ventures.

Commenting on the results of operations, Patrick J. Callan, Jr., President and Chief Executive Officer of the Company, noted the following:

--  Rental income increased by $845,000, or 9.7%, quarter over quarter,
    due primarily to additional rental income generated from nine properties
    acquired in the second half of 2008.
    
--  Rental income for the nine months ended September 30, 2009 increased
    by $3,205,000, or 12.3%, as compared to rental income for the nine months
    ended September 30, 2008.  The increase in rental income is primarily due
    to the acquisition of twelve properties in 2008.
    
--  Operating expenses increased by $298,000, or 8%, for the three months
    ended September 30, 2009 and by $1,084,000, or 9.9%, for the nine months
    ended September 30, 2009.  Operating expenses increased in both current
    periods primarily because of an increase in depreciation and amortization
    resulting from property acquisitions in 2008.  Also contributing to the
    increase in operating expenses in both current periods was an increase in
    real estate operating expenses related to repair and maintenance items and
    real estate taxes.  The nine months ended September 30, 2008 benefitted
    from a $1,830,000 gain on sale of excess unimproved land.  There was no
    comparable sale in the current nine month period.
    
--  Discontinued operations increased by $544,000, or 79.9%, quarter over
    quarter and by $727,000, or 76.3%, nine months over nine months due in
    large measure to the inclusion in both current periods of a gain of
    $897,000 resulting from our conveyance of five Circuit City properties to
    the holder of the mortgages secured by the properties.
    
--  Subsequent to the close of the quarter, the Company sold two
    properties for a total consideration of approximately $31,800,000, and
    received net proceeds after payment of mortgages and other costs and
    expenses of approximately $11,000,000.  The Company will recognize an
    aggregate gain for accounting purposes on these transactions of
    approximately $5,800,000 and a taxable gain of approximately $7,100,000.
    The Company may defer the gain for federal income tax purposes by entering
    into an IRC Section 1031 tax-deferred exchange, using the sale proceeds to
    acquire one or more replacement properties.  As of this date, the Company
    has not identified one or more replacement properties and there is no
    assurance that it will be able to locate suitable replacement properties in
    accordance with applicable statutory and regulatory requirements.
    

Mr. Callan noted that notwithstanding the difficult economic conditions in the country, the Company's operations were satisfactory in both current periods. He stated that, "the Company continues to have concerns about the economy, particularly the retail segment, and that it continues to carefully monitor its portfolio. We are hopeful, however, that business is starting to stabilize and we look forward to 2010 with cautious optimism."

One Liberty Properties is a real estate investment trust and invests primarily in improved commercial real estate under long term net lease.

Certain information contained in this press release, together with other statements and information publicly disseminated by One Liberty Properties, Inc. is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. We intend such forward looking statements to be covered by the safe harbor provision for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for the purpose of complying with these safe harbor provisions. Information regarding certain important factors that could cause actual outcomes or other events to differ materially from any such forward looking statements appear in the Company's Form 10-K and Amendment No. 1 thereto (Form 10-K/A) for the year ended December 31, 2008. You should not rely on forward looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements.

ONE LIBERTY PROPERTIES, INC.
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone (516) 466-3100
Telecopier (516) 466-3132
www.onelibertyproperties.com



                 ONE LIBERTY PROPERTIES, INC. (NYSE: OLP)
              (Amounts in Thousands, Except Per Share Data)

                                    Three Months Ended  Nine Months Ended
                                       September 30,       September 30,
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
Revenues:
   Rental income - Note 1           $  9,591  $  8,746  $ 29,178  $ 25,973
   Lease termination fee                   -         -     1,784         -
                                    --------  --------  --------  --------
   Total revenues                      9,591     8,746    30,962    25,973
                                    --------  --------  --------  --------

Operating expenses:
   Depreciation and amortization       2,107     1,910     6,355     5,653
   General and administrative          1,643     1,695     4,895     4,893
   Real estate expenses                  191        38       531       151
   Leasehold rent                         77        77       231       231
                                    --------  --------  --------  --------
   Total operating expenses            4,018     3,720    12,012    10,928
                                    --------  --------  --------  --------

Operating income                       5,573     5,026    18,950    15,045

Other income and expenses:
   Equity in earnings of
    unconsolidated joint ventures        140       149       449       446
   Gain on disposition of real
    estate of unconsolidated joint
    venture                                -         -         -       297
   Interest and other income              85       157       292       487
   Interest:
     Expense                          (3,400)   (3,399)  (10,250)  (10,127)
     Amortization of deferred
      financing costs                   (183)     (146)     (585)     (438)
     Gain on sale of excess
      unimproved land                      -         -         -     1,830
                                    --------  --------  --------  --------
Income from continuing operations      2,215     1,787     8,856     7,540
                                    --------  --------  --------  --------
Discontinued operations:
   Income from operations                328       681     1,012     1,705
   Impairment charges on property
    sold at a loss                         -         -      (229)     (752)
   Gain on troubled mortgage
    restructuring, as a result
    of conveyance to mortgagee           897         -       897         -
                                    --------  --------  --------  --------
Income from discontinued operations    1,225       681     1,680       953
                                    --------  --------  --------  --------

Net income                          $  3,440  $  2,468  $ 10,536  $  8,493
                                    ========  ========  ========  ========

Net income per common share-basic
 and diluted:
   Income from continuing
    operations                      $   0.20  $   0.16  $   0.79  $   0.67
   Income from discontinued
    operations                          0.11      0.06      0.15      0.08
                                    --------  --------  --------  --------
   Net income per common share      $   0.31  $   0.22  $   0.94  $   0.75
                                    ========  ========  ========  ========

Funds from operations - Note 2      $  5,740  $  4,713  $ 17,725  $ 14,958
                                    ========  ========  ========  ========

Funds from operations per common
 share-diluted - Note 3             $   0.51  $   0.42  $   1.57  $   1.32
                                    ========  ========  ========  ========

Weighted average number of common
 shares outstanding:
         Basic and Diluted            11,174    11,329    11,256    11,340
                                    ========  ========  ========  ========

Note 1 - Rental income includes straight line rent accruals and
         amortization of lease intangibles of $571 and $208 for the nine
         and three months ended September 30, 2009 and $905 and $288 for
         the nine and three months ended September 30, 2008, respectively.

Note 2 - Funds from operations is  summarized in the following table:

Net income                          $  3,440  $  2,468  $ 10,536  $  8,493
Add: depreciation of properties        2,201     2,149     6,893     6,475
Add: our share of depreciation in
 unconsolidated joint ventures            81        81       243       241
Add: amortization of capitalized
 leasing expenses                         18        15        53        46
Deduct: our share of net gain on
 sale in unconsolidated joint
 ventures                                  -         -         -      (297)
                                    --------  --------  --------  --------
Funds from operations (a)           $  5,740  $  4,713  $ 17,725  $ 14,958
                                    ========  ========  ========  ========

Note 3 - Funds from operations per common share is summarized in the
         following table:

Net income                          $   0.31  $   0.22  $   0.94  $   0.75
Add: depreciation of properties         0.19      0.19      0.61      0.57
Add: our share of depreciation in
 unconsolidated joint ventures          0.01      0.01      0.02      0.02
Add: amortization of capitalized
 leasing expenses                          -         -         -         -
Deduct: our share of net gain on
 sale in unconsolidated joint
 ventures                                  -         -         -     (0.02)
                                    --------  --------  --------  --------
Funds from operations per common
 share (a)                          $   0.51  $   0.42  $   1.57  $   1.32
                                    ========  ========  ========  ========

(a) We believe that FFO is a useful and a standard supplemental measure of the operating performance for equity REITs and is used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO when reporting their operating results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assumes that the value of real estate assets diminish predictability over time. In fact real estate values have historically risen and fallen with market conditions. As a result, we believe that FFO provides a performance measure that when compared year over year, should reflect the impact on operations from trends in occupancy rates, rental rates, operating costs, interest costs and other matters without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. We also consider FFO to be useful to us in evaluating potential property acquisitions.

FFO does not represent net income or cash flows from operations as defined by GAAP. You should not consider FFO to be an alternative to net income as a reliable measure of our operating performance; nor should you consider FFO to be an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.

FFO does not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization, capital improvements and distributions to stockholders. FFO does not represent cash flows from operating, investing or financing activities as defined by GAAP.

                       ONE LIBERTY PROPERTIES, INC.
                         CONDENSED BALANCE SHEETS
                          (Amounts in Thousands)

                                                September 30, December 31,
                                                    2009          2008
                                                ------------- -------------
ASSETS
Real estate investments, net                    $     347,629 $     353,113
Investment in unconsolidated joint ventures             5,900         5,857
Cash and cash equivalents                              10,639        10,947
Available for sale securities (including
 treasury bills of $6,498 in 2009)                      9,212           297
Properties held for sale                               23,732        34,343
Assets related to properties held for sale              1,824         2,129
Unbilled rent receivable                               10,189         9,623
Other assets                                           11,737        12,796
                                                ------------- -------------
Total assets                                    $     420,862 $     429,105
                                                ============= =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable                               $     202,293 $     207,553
Mortgages payable-properties held for sale              9,069        17,961
Line of credit                                         27,000        27,000
Other liabilities                                       9,286        12,616
                                                ------------- -------------
Total liabilities                                     247,648       265,130

Stockholders' equity                                  173,214       163,975
                                                ------------- -------------
Total liabilities and stockholders' equity      $     420,862 $     429,105
                                                ============= =============

Contact Information

  • Contact:
    Simeon Brinberg
    (516) 466-3100