GREAT NECK, NY--(Marketwire - March 9, 2010) - One Liberty Properties, Inc. (
One Liberty also announced its results of operations for the three months and year ended December 31, 2009:
-- For the three months ended December 31, 2009, One Liberty had rental
income of $9,838,000 and net income of $9,105,000, or $.81 per diluted
share. Net income for the three months ended December 31, 2009
includes a $5,757,000 gain on property sales, or $.51 per diluted
share, included in discontinued operations. For the three months ended
December 31, 2008, One Liberty had rental income of $10,059,000 and a
net loss of $3,601,000, or a loss of $.35 per diluted share. The
principal reason for the loss was the recognition of impairment
charges recorded against three properties aggregating $5,231,000
($.51 per diluted share).
-- For the year ended December 31, 2009, One Liberty had revenues of
$40,800,000 and net income of $19,641,000, or $1.82 per diluted share,
as compared to total revenues, net income, and net income per diluted
share of $36,031,000, $4,892,000, and $.48, respectively, for the year
ended December 31, 2008. Revenues for the year ended December 31,
2009 includes rental income of $39,016,000 and a lease termination
fee of $1,784,000. All revenues for the year ended December 31, 2008
relate to rental income. Net income for the year ended December 31,
2009 includes a $5,757,000 gain on property sales, or $.53 per diluted
share. Net income for the year ended December 31, 2008 includes a
gain of $1,830,000 on the sale of unimproved land, or $.18 per diluted
share, and impairment charges recorded against four properties of
$5,983,000, or $.59 per diluted share. Both the 2009 gain and the
2008 impairment charge are included in discontinued operations.
-- Funds from operations (FFO) for the three months ended December 31,
2009 was $5,549,000, or $.49 per diluted share, compared to funds used
in operations of $1,006,000, or $.10 per diluted share, for the three
months ended December 31, 2008. FFO for the year ended December 31,
2009 was $23,272,000, or $2.15 per diluted share, compared to
$13,952,000, or $1.37 per diluted share, for the year ended
December 31, 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
consolidated joint ventures.
Commenting on the reinstitution of a cash dividend policy, Patrick J. Callan, Jr., President and Chief Executive Officer, stated that "the excellent results in fiscal 2009 and our prospects for 2010 justify the reinstitution of an all cash dividend." He noted that for approximately the past year, the Company paid its quarterly dividend in a combination of cash and shares of the Company's common stock in order for the Company to conserve cash. The policy proved beneficial as the Company significantly improved its cash position in a difficult economic environment. "It appears to our management," Mr. Callan continued "that business has stabilized, and we look forward to being proactive in 2010 in the acquisition area, as evidenced by our purchase in February of this year of a 194,000 square foot shopping center located in suburban Philadelphia for $23.5 million. The acquisition represents an expansion of our acquisition philosophy to include the acquisition of shopping centers with long-term leases in place with nationally or regionally recognized tenants."
With respect to the Company's results and financial condition, Mr. Callan noted as follows:
-- Rental income decreased by $221,000, or 2%, quarter over quarter and
increased by $2,985,000, or 8%, year over year. The decrease
quarter to quarter is due to a decrease in a number of items, none of
which is significant. The increase year to year is primarily due to
the acquisition of twelve properties during 2008.
-- On the expense side, operating expenses were essentially the same
quarter over quarter, but increased by approximately $1,061,000, or
7% year over year. The increase in operating expenses is due to an
increase in depreciation and amortization related to properties
acquired in 2008 and real estate expenses formerly paid by tenants.
In 2008, the Company recorded impairment charges of $752,000 during
the second quarter and $5,231,000 during the fourth quarter. In 2009,
the Company recorded impairment charges of $229,000. No other
impairment charges were required in 2009.
-- Occupancy at the Company's properties was approximately 99% at
December 31, 2009 based on rentable square feet.
-- At year end, the Company had cash and cash equivalents and
available-for-sale securities of approximately $35 million. At
March 8, 2010 the Company had cash, cash equivalents and
available-for-sale securities of approximately $30 million.
-- The Company has negotiated a modification and extension of its credit
agreement, which expires on March 31, 2010. There is $27 million
outstanding under the credit agreement. The proposed modification
and extension will, among other things, extend the term for two years,
reduce the amount available from $62.5 million to $40 million and
increase the interest rate from the lower of LIBOR plus 2.15% or the
bank's prime rate to 90 day LIBOR plus 3%, with a minimum interest
rate of 6% per annum. The Company is confident that formal
documentation will be concluded substantially in accordance with the
agreed upon terms.
One Liberty Properties is a real estate investment trust and invests primarily in improved commercial real estate under long term net or ground 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, including the statement related to the stabilization of our business, our acquisition policy and our confidence with respect to concluding a modification and extension of our credit agreement, 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 filings with the Securities and Exchange Commission. 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. (NYSE : OLP )
(Amounts in Thousands, Except Per Share Data)
Three Months Ended Year Ended
December 31, December 31,
2009 2008 2009 2008
-------- -------- -------- --------
Revenues:
Rental income - Note 1 $ 9,838 $ 10,059 $ 39,016 $ 36,031
Lease termination fee - - 1,784 -
-------- -------- -------- --------
Total revenues 9,838 10,059 40,800 36,031
-------- -------- -------- --------
Operating expenses:
Depreciation and amortization 2,120 2,140 8,527 7,838
General and administrative 1,645 1,615 6,540 6,508
Real estate expenses 206 238 684 344
Leasehold rent 77 77 308 308
-------- -------- -------- --------
Total operating expenses 4,048 4,070 16,059 14,998
-------- -------- -------- --------
Operating income 5,790 5,989 24,741 21,033
Other income and expenses:
Equity in earnings of
unconsolidated joint ventures 110 176 559 622
Gain on disposition of real
estate of unconsolidated joint
venture - - - 297
Interest and other income 66 45 358 533
Interest:
Expense (3,310) (3,663) (13,561) (13,790)
Amortization of deferred
financing costs (143) (144) (728) (582)
Income from settlement with
former president 951 - 951 -
Gain on sale of excess
unimproved land - - - 1,830
-------- -------- -------- --------
Income from continuing operations 3,464 2,403 12,320 9,943
-------- -------- -------- --------
Discontinued operations:
(Loss) income from operations -
Note 2 (116) (773) 896 932
Impairment charges - (5,231) (229) (5,983)
Gain on troubled mortgage
restructuring, as a result
of conveyance to mortgagee - - 897 -
Net gain on sales 5,757 - 5,757 -
-------- -------- -------- --------
Income (loss) from discontinued
operations 5,641 (6,004) 7,321 (5,051)
-------- -------- -------- --------
Net income (loss) $ 9,105 $ (3,601) $ 19,641 $ 4,892
======== ======== ======== ========
Net income (loss) per common
share-diluted:
Income from continuing
operations $ 0.31 $ 0.24 $ 1.14 $ 0.98
Income (loss) from discontinued
operations 0.50 (0.59) 0.68 (0.50)
-------- -------- -------- --------
Net income (loss) per common
share $ 0.81 $ (0.35) $ 1.82 $ 0.48
======== ======== ======== ========
Funds from operations - Note 3 $ 5,549 $ (1,006) $ 23,272 $ 13,952
======== ======== ======== ========
Funds from operations per common
share-diluted - Note 4 $ 0.49 $ (0.10) $ 2.15 $ 1.37
======== ======== ======== ========
Weighted average number of common
shares outstanding:
Basic 11,104 10,192 10,651 10,183
======== ======== ======== ========
Diluted 11,234 10,192 10,812 10,183
======== ======== ======== ========
Note 1 - Rental income includes straight line rent accruals and
amortization of lease intangibles of $1,096 and $525 for the year
and three months ended December 31, 2009 and $1,554 and $649 for
the year and three months ended December 31, 2008, respectively.
Note 2 - Income from discontinued operations includes straight line rent
accruals and amortization of lease intangibles of $55 and $7 for
the year and three months ended December 31, 2009 and $(160) and
$(180) for the year and three months ended December 31, 2008,
respectively.
Note 3 - Funds from operations is summarized in the following table:
Net income $ 9,105 $ (3,601) $ 19,641 $ 4,892
Add: depreciation of properties 2,108 2,496 9,001 8,971
Add: our share of depreciation in
unconsolidated joint ventures 80 81 322 322
Add: amortization of capitalized
leasing expenses 13 18 65 64
Deduct: net gain on sales of
properties (5,757) - (5,757) -
Deduct: our share of net gain on
sale in unconsolidated joint
ventures - - - (297)
-------- -------- -------- --------
Funds from operations (a) $ 5,549 $ (1,006) $ 23,272 $ 13,952
======== ======== ======== ========
Note 4 - Funds from operations per common share is summarized in the
following table:
Net income $ 0.81 $ (0.35) $ 1.82 $ 0.48
Add: depreciation of properties 0.18 0.24 0.83 0.88
Add: our share of depreciation in
unconsolidated joint ventures 0.01 0.01 0.03 0.03
Add: amortization of capitalized
leasing expenses - - - 0.01
Deduct: net gain on sales of
properties (0.51) - (0.53) -
Deduct: our share of net gain on
sale in unconsolidated joint
ventures - - - (0.03)
-------- -------- -------- --------
Funds from operations per common
share-diluted (a) $ 0.49 $ (0.10) $ 2.15 $ 1.37
======== ======== ======== ========
(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)
December 31, December 31,
2009 2008
------------ ------------
ASSETS
Real estate investments, net $ 345,693 $ 353,113
Properties held for sale - 34,343
Assets related to properties held for sale - 2,129
Investment in unconsolidated joint ventures 5,839 5,857
Cash and cash equivalents 28,036 10,947
Available for sale securities (including treasury
bills of $3,999 in 2009) 6,762 297
Unbilled rent receivable 10,706 9,623
Unamortized intangible lease assets 7,157 8,018
Other assets 4,493 4,778
------------ ------------
Total assets $ 408,686 $ 429,105
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable $ 190,518 $ 207,553
Mortgages payable-properties held for sale - 17,961
Line of credit 27,000 27,000
Unamortized intangible lease liabilities 4,827 5,234
Other liabilities 6,213 7,382
------------ ------------
Total liabilities 228,558 265,130
Stockholders' equity 180,128 163,975
------------ ------------
Total liabilities and stockholders' equity $ 408,686 $ 429,105
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Contact Information: Contact: Simeon Brinberg (516) 466-3100