One Liberty Properties, Inc. (NYSE: OLP), a real estate investment
trust focused on net leased properties, today announced operating
results for the quarter ended March 31, 2021.
Patrick J. Callan, Jr., President and Chief Executive Officer of
One Liberty commented, “We collected 98% of billed rents in the
first quarter, demonstrating the stability of our portfolio and our
continuing success in navigating the impact of the pandemic.
Contributing to these efforts is the ongoing transformation of One
Liberty as an industrial-focused REIT. As we move
forward, we remain committed to ensuring that the portfolio
provides consistent cash flow to support our dividend. In addition,
given the competitive environment for desirable industrial
properties, we will remain diligent and disciplined in our pursuit
of accretive acquisitions to create long-term sustained value for
our stockholders.”
Operating Results:
Rental income was $20.7 million in the first quarter of 2021
compared to $21.2 million in the first quarter of 2020. The Company
collected 98.3% of billed rent in the first quarter of 2021.
Total operating expenses were $13.2 million in the first quarter
of 2021 compared to $12.4 million for the first quarter of 2020.
Contributing to the change was a $344,000 increase in real estate
operating expenses and a $308,000 increase in general and
administrative expense due primarily to non-cash expense related to
equity incentive awards.
Net income attributable to One Liberty in the first quarter of
2021 was $3.0 million, or $0.13 per diluted share, compared to $7.8
million, or $0.39 per diluted share, in the first quarter of 2020.
Net income for the 2020 quarter includes a $4.3 million, or $0.21
per diluted share, gain on sale of real estate, before giving
effect to a $290,000, or $0.01 per diluted share, debt prepayment
charge.
Adjusted Funds from Operations, or AFFO1, was $10.0 million, or
$0.48 per diluted share, for the quarter ended March 31, 2021,
compared to $10.2 million, or $0.51 per diluted share, for the
corresponding quarter in the prior year. The change in AFFO is due
primarily to a $337,000 increase in real estate operating expenses
and a $122,000 reduction in rental income, offset by a $250,000
decrease in interest expense.
Funds from Operations, or FFO was $8.8 million, or $0.42 per
diluted share, for the first quarter of 2021, compared to $9.2
million, or $0.46 per diluted share, in the first quarter of 2020.
The change is due to the factors contributing to the decrease in
AFFO as well as a $433,000 non-cash reduction in rental income
related to straight-line rent accruals and amortization of lease
intangibles and an increase of $367,000 of non-cash expense related
to equity-based awards, offset by a $298,000 increase in other
income and lease termination fee income and a $290,000 decrease in
debt prepayment costs.
_________________1 A description and reconciliation
of non-GAAP financial measures (i.e., AFFO and FFO) to GAAP
financial measures is presented later in this release.
Balance Sheet:
At March 31, 2021, the Company had $11.2 million of cash and
cash equivalents, total assets of $768.2 million, total debt of
$439.3 million, and total One Liberty Properties, Inc.
stockholders’ equity of $287.2 million.
At May 3, 2021, One Liberty’s available liquidity was $81.5
million, including $6.8 million of cash and cash equivalents
(including the credit facility’s required $3.0 million average
deposit maintenance balance) and $74.7 million available under its
credit facility. The facility is currently available for the
acquisition of commercial real estate, repayment of mortgage debt,
and up to $10 million and $19 million for renovation and operating
expenses, respectively.
Non-GAAP Financial Measures:
One Liberty computes FFO in accordance with the “White Paper on
Funds from Operations” issued by the National Association of Real
Estate Investment Trusts (“NAREIT”) and NAREIT’s related guidance.
FFO is defined in the White Paper as net income (calculated in
accordance with GAAP), excluding depreciation and amortization
related to real estate, gains and losses from the sale of certain
real estate assets, gains and losses from change in control,
impairment write-downs of certain real estate assets and
investments in entities where the impairment is directly
attributable to decreases in the value of depreciable real estate
held by the entity. Adjustments for unconsolidated partnerships and
joint ventures are calculated to reflect funds from operations on
the same basis. In computing FFO, OLP does not add back to net
income the amortization of costs in connection with its financing
activities or depreciation of non-real estate assets.
One Liberty computes AFFO by adjusting from FFO for
straight-line rent accruals and amortization of lease intangibles,
deducting lease termination fees and certain other non-recurring
fees and adding back amortization of restricted stock and
restricted stock unit compensation expense, amortization of costs
in connection with its financing activities (including its share of
its unconsolidated joint ventures), income on insurance recoveries
from casualties and debt prepayment costs. Since the NAREIT White
Paper does not provide guidelines for computing AFFO, the
computation of AFFO may vary from one REIT to another.
One Liberty believes that FFO and AFFO are useful and standard
supplemental measures of the operating performance for equity REITs
and are used frequently by securities analysts, investors and other
interested parties in evaluating equity REITs, many of which
present FFO and AFFO when reporting their operating results. FFO
and AFFO are intended to exclude GAAP historical cost depreciation
and amortization of real estate assets, which assumes that the
value of real estate assets diminishes predictably over time. In
fact, real estate values have historically risen and fallen with
market conditions. As a result, management believes that FFO and
AFFO provide a performance measure that when compared year over
year, should reflect the impact to 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. Management also considers FFO and AFFO to
be useful in evaluating potential property acquisitions.
FFO and AFFO do not represent net income or cash flows from
operating, investing or financing activities as defined by GAAP.
FFO and AFFO should not be an alternative to net income as a
reliable measure of our operating performance nor as an alternative
to cash flows as measures of liquidity. FFO and AFFO do not measure
whether cash flow is sufficient to fund all of the Company’s cash
needs.
Forward Looking Statement:
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. 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 the Company’s control and
which could materially affect the Company’s results of operations,
financial condition, cash flows, performance or future achievements
or events. Currently, one of the most significant factors that
could adversely affect the Company is the current pandemic of the
novel coronavirus, or COVID-19, and the governmental and
non-governmental responses thereto. The extent to which COVID-19
impacts the Company and its tenants will depend on future
developments, which are highly uncertain and cannot be predicted
with confidence, including the scope, severity and duration of the
pandemic, the actions taken to contain the pandemic or mitigate its
impact, and the direct and indirect economic effects of the
pandemic and containment measures, among others. Information
regarding other important factors that could cause actual outcomes
or other events to differ materially from any such forward looking
statements appear in the Company's Annual Report on Form 10-K for
the year ended December 31, 2020 and Quarterly Report on Form 10-Q
for the period ended March 31, 2021 and in particular, the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations”, included
therein.
About One Liberty Properties:
One Liberty is a self-administered and
self-managed real estate investment trust incorporated in Maryland
in 1982. The Company acquires, owns and manages a geographically
diversified portfolio consisting primarily of industrial, retail,
restaurant, health and fitness and theater properties. Many of
these properties are subject to long term net leases under which
the tenant is typically responsible for the property’s real estate
taxes, insurance and ordinary maintenance and repairs.
Contact:One Liberty PropertiesInvestor
RelationsPhone: (516) 466-3100www.onelibertyproperties.com
ONE LIBERTY
PROPERTIES, INC. |
CONDENSED
BALANCE SHEETS |
(Amounts in
Thousands) |
|
|
(Unaudited) |
|
|
|
|
March
31, |
|
December
31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
ASSETS |
|
|
|
|
Real estate
investments, at cost |
|
$ |
840,248 |
|
|
$ |
839,058 |
|
Accumulated
depreciation |
|
|
(151,557 |
) |
|
|
(147,136 |
) |
Real estate
investments, net |
|
|
688,691 |
|
|
|
691,922 |
|
|
|
|
|
|
Investment
in unconsolidated joint ventures |
|
|
10,580 |
|
|
|
10,702 |
|
Cash and
cash equivalents |
|
|
11,245 |
|
|
|
12,705 |
|
Unbilled
rent receivable |
|
|
15,391 |
|
|
|
15,438 |
|
Unamortized
intangible lease assets, net |
|
|
23,306 |
|
|
|
24,703 |
|
Other
assets |
|
|
18,953 |
|
|
|
20,667 |
|
Total assets |
|
$ |
768,166 |
|
|
$ |
776,137 |
|
|
|
|
|
|
LIABILITIES
AND EQUITY |
|
|
|
|
Liabilities: |
|
|
|
|
Mortgages
payable, net of $3,684 and $3,845 of deferred financing costs,
respectively |
|
$ |
424,271 |
|
|
$ |
429,704 |
|
Line of
credit-outstanding, net of $377 and $425 of deferred financing
costs, respectively |
|
|
15,073 |
|
|
|
12,525 |
|
Unamortized
intangible lease liabilities, net |
|
|
10,794 |
|
|
|
11,189 |
|
Other
liabilities |
|
|
29,589 |
|
|
|
30,759 |
|
Total liabilities |
|
|
479,727 |
|
|
|
484,177 |
|
|
|
|
|
|
Total One
Liberty Properties, Inc. stockholders' equity |
|
|
287,241 |
|
|
|
290,767 |
|
Non-controlling interests in consolidated joint ventures |
|
|
1,198 |
|
|
|
1,193 |
|
Total equity |
|
|
288,439 |
|
|
|
291,960 |
|
Total liabilities and equity |
|
$ |
768,166 |
|
|
$ |
776,137 |
|
ONE LIBERTY
PROPERTIES, INC. (NYSE: OLP) |
(Amounts in
Thousands, Except Per Share Data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three
Months Ended |
|
|
|
March 31, |
|
|
|
|
2021 |
|
|
|
2020 |
|
Revenues: |
|
|
|
|
|
Rental
income, net |
|
$ |
20,684 |
|
|
$ |
21,239 |
|
|
Lease
termination fees |
|
|
132 |
|
|
|
- |
|
|
Total
revenues |
|
|
20,816 |
|
|
|
21,239 |
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
Depreciation
and amortization |
|
|
5,757 |
|
|
|
5,674 |
|
|
General and
administrative |
|
|
3,642 |
|
|
|
3,334 |
|
|
Real estate
operating expenses |
|
|
3,686 |
|
|
|
3,342 |
|
|
State
taxes |
|
|
75 |
|
|
|
82 |
|
|
Total
operating expenses |
|
|
13,160 |
|
|
|
12,432 |
|
|
|
|
|
|
|
Other operating income |
|
|
|
|
Gain on sale of real estate, net |
|
|
- |
|
|
|
4,252 |
|
Operating income |
|
|
7,656 |
|
|
|
13,059 |
|
|
|
|
|
|
|
Other income and expenses: |
|
|
|
|
|
Equity in
(loss) earnings of unconsolidated joint ventures |
|
|
(22 |
) |
|
|
64 |
|
|
Equity in earnings from sale of unconsolidated joint venture
property |
|
- |
|
|
|
121 |
|
|
Prepayment
costs on debt |
|
|
- |
|
|
|
(290 |
) |
|
Other
income |
|
|
170 |
|
|
|
4 |
|
|
Interest: |
|
|
|
|
|
Expense |
|
|
(4,634 |
) |
|
|
(4,884 |
) |
|
Amortization and write-off of deferred financing costs |
|
|
(213 |
) |
|
|
(243 |
) |
|
|
|
|
|
|
Net income |
|
|
2,957 |
|
|
|
7,831 |
|
Net loss (income) attributable to non-controlling interests |
|
|
5 |
|
|
|
(5 |
) |
|
|
|
|
|
|
Net income attributable to One Liberty Properties, Inc. |
|
$ |
2,962 |
|
|
$ |
7,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to common
stockholders-diluted |
|
$ |
0.13 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Funds from operations - Note 1 |
|
$ |
8,839 |
|
|
$ |
9,249 |
|
Funds from operations per common share-diluted - Note 2 |
|
$ |
0.42 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
Adjusted funds from operations - Note 1 |
|
$ |
10,009 |
|
|
$ |
10,180 |
|
Adjusted funds from operations per common share-diluted - Note
2 |
$ |
0.48 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
Basic |
|
|
20,003 |
|
|
|
19,361 |
|
Diluted |
|
|
20,061 |
|
|
|
19,374 |
|
ONE LIBERTY
PROPERTIES, INC. (NYSE: OLP) |
(Amounts in
Thousands, Except Per Share Data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three
Months Ended |
|
|
|
March 31, |
Note 1: |
|
|
2021 |
|
|
|
2020 |
|
NAREIT funds from operations is summarized in the following
table: |
|
|
|
GAAP net income attributable to One Liberty Properties, Inc. |
|
$ |
2,962 |
|
|
$ |
7,826 |
|
Add: depreciation and amortization of properties |
|
|
5,655 |
|
|
|
5,573 |
|
Add: our share of depreciation and amortization of unconsolidated
joint ventures |
|
|
134 |
|
|
|
139 |
|
Add: amortization of deferred leasing costs |
|
|
102 |
|
|
|
101 |
|
Add: our share of amortization of deferred leasing costs of
unconsolidated joint ventures |
|
|
7 |
|
|
|
4 |
|
Deduct: gain on sale of real estate, net |
|
|
- |
|
|
|
(4,252 |
) |
Deduct: equity in earnings from sale of unconsolidated joint
venture property |
|
|
- |
|
|
|
(121 |
) |
Adjustments for non-controlling interests |
|
|
(21 |
) |
|
|
(21 |
) |
NAREIT funds from operations applicable to common
stock |
|
|
8,839 |
|
|
|
9,249 |
|
|
|
|
|
|
|
Deduct: straight-line rent accruals and amortization of lease
intangibles |
|
(137 |
) |
|
|
(570 |
) |
Deduct: our share of straight-line rent accruals and
amortization |
|
|
|
|
of lease intangibles of unconsolidated joint ventures |
|
|
(1 |
) |
|
|
(13 |
) |
Deduct: lease termination fee income |
|
|
(132 |
) |
|
|
- |
|
Deduct: lease assignment fee income |
|
|
(100 |
) |
|
|
- |
|
Add: amortization of restricted stock compensation |
|
|
1,343 |
|
|
|
976 |
|
Add: prepayment costs on debt |
|
|
- |
|
|
|
290 |
|
Deduct: income on insurance recoveries from casualty loss |
|
|
(20 |
) |
|
|
- |
|
Add: amortization and write-off of deferred financing costs |
|
|
213 |
|
|
|
243 |
|
Add: our share of amortization and write-off of deferred financing
costs |
|
|
|
of unconsolidated joint ventures |
|
|
4 |
|
|
|
4 |
|
Adjustments for non-controlling interests |
|
|
- |
|
|
|
1 |
|
Adjusted funds from operations applicable to common
stock |
|
$ |
10,009 |
|
|
$ |
10,180 |
|
|
|
|
|
|
|
Note 2: |
|
|
|
|
NAREIT funds from operations is summarized in the following
table: |
|
|
|
|
GAAP net income attributable to One Liberty Properties, Inc. |
|
$ |
0.13 |
|
|
$ |
0.39 |
|
Add: depreciation and amortization of properties |
|
|
0.28 |
|
|
|
0.27 |
|
Add: our share of depreciation and amortization of unconsolidated
joint ventures |
|
|
0.01 |
|
|
|
0.01 |
|
Add: amortization of deferred leasing costs |
|
|
|
- |
|
|
|
0.01 |
|
Add: our share of amortization of deferred leasing costs of
unconsolidated joint ventures |
|
|
- |
|
|
|
- |
|
Deduct: gain on sale of real estate, net |
|
|
|
- |
|
|
|
(0.21 |
) |
Deduct: equity in earnings from sale of unconsolidated joint
venture property |
|
|
|
- |
|
|
|
(0.01 |
) |
Adjustments for non-controlling interests |
|
|
|
- |
|
|
|
- |
|
NAREIT funds from operations per share of common
stock-diluted (a) |
|
|
|
0.42 |
|
|
|
0.46 |
|
Deduct: straight-line rent accruals and amortization of lease
intangibles |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
Deduct: our share of straight-line rent accruals and
amortization |
|
|
|
|
|
of lease intangibles of unconsolidated joint ventures |
|
|
- |
|
|
|
- |
|
Deduct: lease termination fee income |
|
|
|
(0.01 |
) |
|
|
- |
|
Deduct: lease assignment fee income |
|
|
|
- |
|
|
|
- |
|
Add: amortization of restricted stock compensation |
|
|
|
0.07 |
|
|
|
0.05 |
|
Add: prepayment costs on debt |
|
|
|
- |
|
|
|
0.01 |
|
Deduct: income on insurance recoveries from casualty loss |
|
|
|
- |
|
|
|
- |
|
Add: amortization and write-off of deferred financing costs |
|
|
|
0.01 |
|
|
|
0.01 |
|
Add: our share of amortization and write-off of deferred financing
costs |
|
|
|
- |
|
|
|
- |
|
of unconsolidated joint ventures |
|
|
|
|
Adjustments for non-controlling interests |
|
|
|
- |
|
|
|
- |
|
Adjusted funds from operations per share of common
stock-diluted (a) |
|
|
$ |
0.48 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
(a) The weighted average number of diluted common
shares used to compute FFO and AFFO applicable to common stock
includes unvested restricted shares that are excluded from the
computation of diluted EPS. |
One Liberty Properties (NYSE:OLP)
Historical Stock Chart
From Aug 2024 to Sep 2024
One Liberty Properties (NYSE:OLP)
Historical Stock Chart
From Sep 2023 to Sep 2024