One Liberty Properties Sells Retail Property for $40.5 Million
June 21 2021 - 7:35AM
One Liberty Properties, Inc. (NYSE: OLP), an owner and manager of a
primarily industrial portfolio along with other net leased assets
that are geographically diversified, today announced that it closed
on a $40.5 million sale of a 47,200 square foot building and the
related parking lot located in West Hartford, Connecticut and
leased to Whole Foods. The proceeds were used to repay a $15.4
million mortgage on the property, pay off the $17.9 million
outstanding balance on the Company’s credit facility and pay
transaction related costs. The remaining proceeds of approximately
$5.4 million will be used for general corporate and working capital
purposes.
Patrick J. Callan, Jr., President and Chief Executive Officer of
One Liberty, commented, “As we continue to transform our portfolio
to industrial focused properties in well-located markets, this sale
again demonstrates our ability to create meaningful value over
time. Similar to the sale of other non-core assets that we believe
reached maximum value, this transaction allows us to reduce our
leverage and increase our financial capacity to fund future
growth.”
The Company anticipates that for the quarter ending June 30,
2021, it will recognize an approximate net gain of $21.5 million
from this sale, before giving effect to a $796,000 mortgage swap
termination fee. During the three months ended March 31, 2021, the
Company recognized $440,000 of rental income and incurred $132,000
of mortgage interest expense and $80,000 of depreciation and
amortization expense at this property.
The Company and Havertys (NYSE:HVT and HVT.A), entered into new
leases which extended the lease term on ten of the eleven
properties that had been scheduled to expire in August 2022,
although one of these leases provides that it can be terminated by
either party prior to the stated termination date. Generally, the
lease extensions run for four to nine years from the August 2022
expiration date. The Company also agreed to invest up to $3.0
million for tenant improvements. After giving effect to the lease
extensions and assuming the lease subject to the mutual termination
right is not terminated, rental income from this tenant is
anticipated to be approximately $4.8 million, $4.5 million and $4.0
million in 2021, 2022 and 2023, respectively.
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. One
Liberty intends 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. 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 the Quarterly Reports on Form
10-Q filed thereafter and in particular, the sections of such
reports entitled “Risk Factors” and “Management Discussion and
Analysis of Financial Condition and Results of Operations.” 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.
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, and other
property classifications. Many of these properties are subject to
long-term net leases under which the tenant is typically
responsible for real estate taxes, insurance and ordinary
maintenance and repairs.
Contact:One Liberty PropertiesInvestor
RelationsPhone: (516) 466-3100www.onelibertyproperties.com
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