SOURCE: One Liberty Properties, Inc.

August 05, 2009 16:00 ET

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

GREAT NECK, NY--(Marketwire - August 5, 2009) - One Liberty Properties, Inc. (NYSE: OLP) today announced that for the three months ended June 30, 2009, it had total revenues of $12,324,000 and net income of $4,443,000, or $.40 per share. Total revenues for the 2009 three month period includes rental income of $10,540,000 and a lease termination fee of $1,784,000. For the three months ended June 30, 2008, One Liberty had total revenues (all of which is rental income) of $9,463,000 and net income of $3,246,000, or $.29 per share. The weighted average number of common shares outstanding is 11,015,000 and 11,124,000 for the three months ended June 30, 2009 and June 30, 2008, respectively.

One Liberty also reported total revenues of $22,959,000 for the six months ended June 30, 2009 compared to $18,814,000 for the six months ended June 30, 2008. Total revenues for the six months ended June 30, 2009 includes rental income of $21,175,000 and a lease termination fee of $1,784,000. All revenues for the six months ended June 30, 2008 relate to rental income. Net income for the six months ended June 30, 2009 was $7,096,000, or $.64 per share. This compares with net income of $6,025,000, or $.54 per share, for the six months ended June 30, 2008. The weighted average number of common shares outstanding is 11,042,000 and 11,152,000 for the six months ended June 30, 2009 and 2008, respectively.

Funds from operations (FFO) for the three months ended June 30, 2009 was $6,875,000, or $.62 per share, compared to $5,616,000, or $.50 per share for the three months ended June 30, 2008. FFO for the six months ended June 30, 2009 was $11,985,000, or $1.09 per share, compared to $10,245,000, or $.92 per share for the six months ended June 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 consolidated 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 $1,077,000, or 11.4%, quarter over quarter,
    due primarily to additional rental income generated from ten properties
    acquired in the second half of 2008.
    
--  In the three months ended June 30, 2009, the Company benefitted from a
    $1,905,000 lease termination fee, offset by the write off of straight line
    rent and intangible lease assets totaling $121,000 applicable to the lease
    which was terminated.  There was no comparable revenue item in the three
    months ended June 30, 2008.
    
--  Rental income for the six months ended June 30, 2009 increased by
    $2,361,000, or 12.5%, as compared to rental income for the six months ended
    June 30, 2008.  The increase in rental income is due to primarily the
    acquisition of twelve properties in 2008.
    
--  In the current six month period, the Company also benefitted by the
    net amount of $1,784,000 from a lease termination fee, offset by the write
    off of straight line rent and intangible lease assets applicable to the
    terminated lease.
    
--  Operating expenses increased by $228,000, or 5.8%, for the three
    months ended June 30, 2009 and by $688,000, or 9.1%, for the six months
    ended June 30, 2009.  Operating expenses increased in both current periods
    primarily because of an increase in depreciation and amortization resulting
    from property acquisitions in 2008, offset by "catch-up" depreciation
    recorded in the three and six months ended June 30, 2008 on a property
    which had been classified as held for sale in prior periods.  Increases in
    real estate operating expenses in the current three and six month periods
    relate to a vacant property and to real estate taxes and repair and
    maintenance items at other properties.
    
--  Both the quarter and six months ended June 30, 2008 include a
    $1,830,000 gain on sale of real property and the six months ended June 30,
    2008 includes a $297,000 gain on the sale of real property by a
    consolidated joint venture.  There were no comparable transactions in the
    2009 periods.
    
--  Interest expense increased by $96,000 quarter over quarter and
    $276,000 six months over six months, due to borrowings made in September
    2008 under the Company's credit line for property acquisitions and the
    placement of mortgages on four properties, offset by income generated from
    an interest rate swap transaction.  The increase was also offset by the
    payoff of a loan in full in 2008, and from regular amortization of mortgage
    debt.
    
--  Discontinued operations reflects a loss of $315,000 for the three
    months ending June 30, 2009 and a loss of $765,000 for the three months
    ending June 30, 2008, and a loss of $369,000 for the six months ending June
    30, 2009 and a loss of $637,000 for the six months ending June 30, 2008.
    The loss in the three and six months ending June 30, 2008 includes an
    impairment charge of $752,000 applicable to a property which was sold in
    March 2009, offset by $87,000 and $172,000, respectively, of income derived
    from five Circuit City locations.  The Circuit City locations operated at a
    loss in the 2009 three and six month periods.  The six months ended June
    30, 2009 includes a lease termination fee of $400,000 and a loss on sale of
    $229,000 applicable to the same property.
    

Mr. Callan noted that the national economic recession has had an adverse affect on commercial retail properties. In particular, he noted that, subsequent to the end of the quarter the Company deeded in lieu of foreclosure, the five properties formerly leased to Circuit City (which had previously filed for bankruptcy and rejected all of the leases). Mr. Callan also noted that except for two single tenanted retail properties at which the tenants are paying rent at less than the contractual lease rate, the Company's tenants have been meeting their monetary obligations under their leases. However, he commented that the Company is still concerned about the overall economic environment and the affects it has had and may have on the Company's tenants. As a result, the Company continues to carefully monitor its portfolio.

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   Six Months Ended
                                         June 30,             June 30,
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
Revenues:
     Rental income - Note 1         $ 10,540  $  9,463  $ 21,175  $ 18,814
     Lease termination fee             1,784         -     1,784         -
                                    --------  --------  --------  --------
     Total revenues                   12,324     9,463    22,959    18,814
                                    --------  --------  --------  --------

Operating expenses:
     Depreciation and amortization     2,287     2,177     4,538     4,130
     General and administrative        1,602     1,590     3,252     3,198
     Real estate expenses                164        58       340       114
     Leasehold rent                       77        77       154       154
                                    --------  --------  --------  --------
     Total operating expenses          4,130     3,902     8,284     7,596
                                    --------  --------  --------  --------

     Operating income                  8,194     5,561    14,675    11,218

Other income and expenses:
     Equity in earnings of
      unconsolidated joint ventures      149       152       308       297
     Gain on disposition of real
      estate of unconsolidated
      joint venture                        -         -         -       297
     Interest and other income           178       121       207       331
     Interest:
        Expense                       (3,599)   (3,503)   (7,286)   (7,010)
        Amortization of deferred
         financing costs                (164)     (150)     (439)     (301)
        Gain on sale of excess
         unimproved land                   -     1,830               1,830
                                    --------  --------  --------  --------
Income from continuing operations      4,758     4,011     7,465     6,662
                                    --------  --------  --------  --------
Discontinued operations:
     (Loss) income from operations      (315)      (13)     (140)      115
     Impairment charge on property
      sold at a loss                       -      (752)     (229)     (752)
                                    --------  --------  --------  --------
Loss from discontinued operations       (315)     (765)     (369)     (637)
                                    --------  --------  --------  --------

Net income                          $  4,443  $  3,246  $  7,096  $  6,025
                                    ========  ========  ========  ========

Net income per common share-basic
 and diluted:
     Income from continuing
      operations                    $   0.43  $   0.36  $   0.67  $   0.60
     Loss from discontinued
      operations                       (0.03)    (0.07)    (0.03)    (0.06)
                                    --------  --------  --------  --------
     Net income per common share    $   0.40  $   0.29  $   0.64  $   0.54
                                    ========  ========  ========  ========

Funds from operations - Note 2      $  6,875  $  5,616  $ 11,985  $ 10,245
                                    ========  ========  ========  ========

Funds from operations per common
 share-diluted - Note 3             $   0.62  $   0.50  $   1.09  $   0.92
                                    ========  ========  ========  ========

Weighted average number of common
 shares outstanding:
     Basic and Diluted                11,015    11,124    11,042    11,152
                                    ========  ========  ========  ========


Note 1 - Rental income includes straight line rent accruals and
         amortization of lease intangibles of $366 and $153 for the six and
         three months ended June 30, 2009 and $581 and $193 for the six and
         three months ended June 30, 2008, respectively.


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

Net income                          $  4,443  $  3,246  $  7,096  $  6,025
Add: depreciation of properties        2,334     2,275     4,692     4,326
Add: our share of depreciation in
 unconsolidated joint ventures            81        80       162       160
Add: amortization of capitalized
 leasing expenses                         17        15        35        31
Deduct: our share of net gain on
 sale in unconsolidated joint
 ventures                                  -         -         -      (297)
                                    --------  --------  --------  --------
Funds from operations (a)           $  6,875  $  5,616  $ 11,985  $ 10,245
                                    ========  ========  ========  ========

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

Net income                          $   0.40  $   0.29  $   0.64  $   0.54
Add: depreciation of properties         0.21      0.20      0.43      0.39
Add: our share of depreciation in
 unconsolidated joint ventures          0.01      0.01      0.02      0.01
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)                          $   0.62  $   0.50  $   1.09  $   0.92
                                    ========  ========  ========  ========

(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 assures 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)

                                                 June 30,     December 31,
                                                   2009           2008
                                               -------------  -------------
        ASSETS
        Real estate investments, net           $     373,468  $     379,289
        Investment in unconsolidated joint
         ventures                                      5,869          5,857
        Cash and cash equivalents                     18,219         10,947
        Unbilled rent receivable                      11,319         10,916
        Properties held for sale                       8,075          8,167
        Other assets                                  15,374         13,929
                                               -------------  -------------
        Total assets                           $     432,324  $     429,105
                                               =============  =============

        LIABILITIES AND STOCKHOLDERS' EQUITY
        Liabilities:
        Mortgages payable                      $     216,436  $     216,808
        Mortgages payable-properties held for
         sale                                          8,706          8,706
        Line of credit                                27,000         27,000
        Other liabilities                              9,735         12,616
                                               -------------  -------------
        Total liabilities                            261,877        265,130

        Stockholders' equity                         170,447        163,975
                                               -------------  -------------
        Total liabilities and stockholders'
         equity                                $     432,324  $     429,105
                                               =============  =============

Contact Information

  • Contact:
    Simeon Brinberg
    (516) 466-3100