SOURCE: One Liberty Properties, Inc.

March 09, 2010 17:15 ET

One Liberty Properties, Inc. Announces an All Cash Dividend and Results of Operations for the Quarter and Year Ended December 31, 2009

GREAT NECK, NY--(Marketwire - March 9, 2010) - One Liberty Properties, Inc. (NYSE: OLP) announced that its Board of Directors has reinstituted its cash dividend policy and today declared a quarterly cash dividend on the Company's common stock of $.30 per share, an increase of 36% over the level of the quarterly dividends paid in 2009. The dividend is payable on April 6, 2010 to stockholders of record as of March 26, 2010.

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
                                                  ============ ============

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
                                                  ============ ============

Contact Information

  • Contact:
    Simeon Brinberg
    (516) 466-3100