One Liberty Properties Inc 10-Q for FY2022 Q2

One Liberty Properties Inc (OLP)

10-Q 2022-08-04 For: 2022-06-30

Added on April 07, 2026

About this 10-Q

One Liberty Properties Inc filed this 10-Q on August 4, 2022, covering the quarter ended June 30, 2022 (FY2022 Q2).

Headline figures

Quarter ended June 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $16.77M; down 28.1% from net income of $23.33M a year earlier
Diluted EPS: $0.79; down 29.5% from $1.12 a year earlier

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MARYLAND		13-3147497
(State or other jurisdiction of		(I.R.S. employer
incorporation or organization)		identification number)

60 Cutter Mill Road, Great Neck, New York		11021
(Address of principal executive offices)		(Zip code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	OLP	New York Stock Exchange


Large accelerated filer ◻		Accelerated filer ◻

Non-accelerated filer ⌧		Smaller reporting company ☒

Emerging growth company ☐


		Page No.
Part I — Financial Information

Item 1.	Unaudited Consolidated Financial Statements

	Consolidated Balance Sheets — June 30, 2022 and December 31, 2021………………………………………	1

	Consolidated Statements of Income — Three and six months ended June 30, 2022 and 2021….……………..	2

	Consolidated Statements of Comprehensive Income — Three and six months ended June 30, 2022 and 2021	3

	Consolidated Statements of Changes in Equity — Three and six months ended June 30, 2022 and 2021….....	4

	Consolidated Statements of Cash Flows — Six months ended June 30, 2022 and 2021………….……………	5

	Notes to Consolidated Financial Statements……………………………………………………………….…...	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations…………….…….	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk………………………………………….………	38

Item 4.	Controls and Procedures……………………………………………………………………………….………..	38

Part II — Other Information………………………………………………………………………………….…………			39

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds…………………………………………………..	39

Item 5.	Other Information……………………………………………………………………………………………….	39

Item 6.	Exhibits……………………………………………………………………………………………….…………	39


	June 30,		December 31,
	2022		2021
ASSETS	(Unaudited)
Real estate investments, at cost
Land	$	180,952	$	180,183
Buildings and improvements		680,098		657,458
Total real estate investments, at cost		861,050		837,641
Less accumulated depreciation		163,792		160,664
Real estate investments, net		697,258		676,977

Properties held-for-sale		3,766		1,270
Investment in unconsolidated joint ventures		10,398		10,172
Cash and cash equivalents		17,624		16,164
Unbilled rent receivable		14,826		14,330
Unamortized intangible lease assets, net		20,845		20,694
Escrow, deposits and other assets and receivables		15,936		13,346
Total assets⁽¹⁾	$	780,653	$	752,953
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of $3,339 and $3,316 of deferred financing costs, respectively	$	399,476	$	396,344
Line of credit, net of $108 and $216 of deferred financing costs, respectively		27,392		11,484
Dividends payable		9,575		9,448
Accrued expenses and other liabilities		17,238		18,992
Unamortized intangible lease liabilities, net		10,870		10,407
Total liabilities⁽¹⁾		464,551		446,675

Commitments and contingencies

Equity:
One Liberty Properties, Inc. stockholders’ equity:
Preferred stock, $1 par value; 12,500 shares authorized; none issued		—		—
Common stock, $1 par value; 50,000 shares authorized; 20,281 and 20,239 shares issued and outstanding		20,281		20,239
Paid-in capital		323,104		322,793
Accumulated other comprehensive income (loss)		925		(1,513)
Distributions in excess of net income		(29,150)		(36,187)
Total One Liberty Properties, Inc. stockholders’ equity		315,160		305,332
Non-controlling interests in consolidated joint ventures⁽¹⁾		942		946
Total equity		316,102		306,278
Total liabilities and equity	$	780,653	$	752,953


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Revenues:
Rental income, net	$	21,472	$	20,305	$	43,003	$	40,989
Lease termination fees		—		117		25		249
Total revenues		21,472		20,422		43,028		41,238

Operating expenses:
Depreciation and amortization		5,905		5,702		11,748		11,459
General and administrative (see Note 9 for related party information)		3,973		3,769		7,765		7,411
Real estate expenses (see Note 9 for related party information)		3,549		3,387		7,236		7,073
State taxes		77		91		151		166
Total operating expenses		13,504		12,949		26,900		26,109

Other operating income
Gain on sale of real estate, net		8,050		21,491		12,699		21,491
Operating income		16,018		28,964		28,827		36,620

Other income and expenses:
Equity in earnings (loss) of unconsolidated joint ventures		112		20		228		(2)
Prepayment costs on debt		—		(799)		—		(799)
Income on settlement of litigation (see Note 13)		5,388		—		5,388		—
Other income (see Note 13)		54		17		980		187
Interest:
Expense		(4,353)		(4,574)		(8,659)		(9,208)
Amortization and write-off of deferred financing costs		(434)		(296)		(639)		(509)

Net income		16,785		23,332		26,125		26,289
Net (income) loss attributable to non-controlling interests		(18)		(3)		(35)		2
Net income attributable to One Liberty Properties, Inc.	$	16,767	$	23,329	$	26,090	$	26,291

Weighted average number of common shares outstanding:
Basic		20,364		20,013		20,372		20,008
Diluted		20,480		20,187		20,485		20,175

Per common share attributable to common stockholders:
Basic	$	.80	$	1.13	$	1.24	$	1.27
Diluted	$	.79	$	1.12	$	1.23	$	1.26

Cash distributions per share of common stock	$	.45	$	.45	$	.90	$	.90


					Accumulated		Accumulated		Non-Controlling
					Other		Distributions		Interests in
	Common		Paid-in		Comprehensive		in Excess of		Consolidated
	Stock		Capital		Income (Loss)		Net Income		Joint Ventures		Total
Balances, December 31, 2020	$	19,878	$	313,430	$	(5,002)	$	(37,539)	$	1,193	$	291,960
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,329)		—		(9,329)
Restricted stock vesting		130		(130)		—		—		—		—
Contribution from non-controlling interest		—		—		—		—		20		20
Distributions to non-controlling interests		—		—		—		—		(13)		(13)
Compensation expense – restricted stock and RSUs		—		1,343		—		—		—		1,343
Net income (loss)		—		—		—		2,962		(5)		2,957
Other comprehensive income		—		—		1,498		—		3		1,501
Balances, March 31, 2021		20,008		314,643		(3,504)		(43,906)		1,198		288,439
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,330)		—		(9,330)
Restricted stock vesting		16		(16)		—		—		—		—
Contribution from non-controlling interest		—		—		—		—		5		5
Distributions to non-controlling interests		—		—		—		—		(11)		(11)
Compensation expense – restricted stock and RSUs		—		1,685		—		—		—		1,685
Net income		—		—		—		23,329		3		23,332
Other comprehensive income		—		—		840		—		1		841
Balances, June 30, 2021	$	20,024	$	316,312	$	(2,664)	$	(29,907)	$	1,196	$	304,961

Balances, December 31, 2021	$	20,239	$	322,793	$	(1,513)	$	(36,187)	$	946	$	306,278
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,559)		—		(9,559)
Restricted stock vesting		131		(131)		—		—		—		—
Shares issued through equity offering program – net		17		546		—		—		—		563
Shares issued through dividend reinvestment plan		5		156		—		—		—		161
Distributions to non-controlling interests		—		—		—		—		(33)		(33)
Compensation expense – restricted stock and RSUs		—		1,325		—		—		—		1,325
Net income		—		—		—		9,323		17		9,340
Other comprehensive income		—		—		1,773		—		2		1,775
Balances, March 31, 2022		20,392		324,689		260		(36,423)		932		309,850
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,494)		—		(9,494)
Restricted stock vesting		16		(16)		—		—		—		—
Repurchases of common stock – net		(133)		(3,285)		—		—		—		(3,418)
Shares issued through dividend reinvestment plan		6		157		—		—		—		163
Distributions to non-controlling interests		—		—		—		—		(8)		(8)
Compensation expense – restricted stock and RSUs		—		1,559		—		—		—		1,559
Net income		—		—		—		16,767		18		16,785
Other comprehensive income		—		—		665		—		—		665
Balances, June 30, 2022	$	20,281	$	323,104	$	925	$	(29,150)	$	942	$	316,102


From July 1 – December 31, 2022	$	35,498
For the year ending December 31,
2023		70,042
2024		61,917
2025		57,631
2026		53,345
2027		45,033
Thereafter		159,107
Total	$	482,573


		Contract			Capitalized
	Date		Purchase	Terms of		Transaction
Description of Property	Acquired	Price		Payment	Costs
Conditioned Air Company of Naples LLC industrial facility,
Fort Myers, Florida	January 5, 2022	$	8,100	All cash (a)	$	66
Q.E.P. Co., Inc. industrial facility,
Dalton, Georgia	May 12, 2022		17,000	All cash (a)		330
Multi-tenant industrial facility,
Hillside, Illinois	May 16, 2022		5,770	All cash		112
Curaleaf, Inc. industrial facility,
Lexington, Kentucky	June 17, 2022		8,430	Cash and $5,480 mortgage (b)		80
Totals - Six months ended June 30, 2022		$	39,300		$	588


			Building &		Intangible Lease						Market Cap	Discount
Description of Property	Land		Improvements		Asset		Liability		Total		Rate (c)	Rate (c)
Conditioned Air Company of Naples LLC industrial facility,
Fort Myers, Florida	$	991	$	6,876	$	568	$	(269)	$	8,166	5.50%	5.60%
Q.E.P. Co., Inc. industrial facility,
Dalton, Georgia		547		15,836		1,223		(276)		17,330	5.00%	5.69%
Multi-tenant industrial facility,
Hillside, Illinois		2,560		2,975		539		(192)		5,882	6.25%	6.63%	(d)
Curaleaf, Inc. industrial facility,
Lexington, Kentucky		1,558		6,881		486		(415)		8,510	5.25%	5.88%
Totals - Six months ended June 30, 2022	$	5,656	$	32,568	$	2,816	$	(1,152)	$	39,888



		Gross		Gain on Sale of
Description of Property	Date Sold	Sales Price		Real Estate, Net
Wendys restaurant property,
Palmyra, Pennsylvania	March 22, 2022	$	2,555	$	1,200	(a)
Wendys restaurant property,
Reading, Pennsylvania	March 22, 2022		2,525		1,184	(a)
Wendys restaurant property,
Reading, Pennsylvania	March 22, 2022		2,485		1,175	(a)
Wendys restaurant property,
Trexlertown, Pennsylvania	March 22, 2022		2,435		1,090	(a)
Orlando Baking industrial property,
Columbus, Ohio (b)	May 2, 2022		8,500		6,925
Havertys retail property,
Fayetteville, Georgia	June 17, 2022		4,800		1,125	(c)
Totals - Six months ended June 30, 2022		$	23,300	$	12,699

Whole Foods retail property & parking lot,
West Hartford, Connecticut (d)	June 17, 2021	$	40,510	$	21,491	(e)
Totals - Six months ended June 30, 2021		$	40,510	$	21,491


Three and Six Months Ended June 30, 2022:
	Total Number	Shares Included Based on (a)
	of Underlying	Return on	Stockholder		Shares
Date of Award	Shares (b)(c)	Capital Metric	Return Metric	Total	Excluded (d)
August 3, 2021	80,700	40,350	—	40,350	40,350
August 3, 2020	75,026	37,513	37,513	75,026	—
July 1, 2019 (e)	75,026	37,513	26,975	64,488	10,538
Totals	230,752	115,376	64,488	179,864	50,888


	2022	2019	2016
	Incentive Plan (a)	Incentive Plan (b)	Incentive Plan (b)
Restricted stock	—	437,375	275,000
RSUs	—	155,726	—
Totals	—	593,101	275,000


	2022 (a)	2021	2020	2019		2018
RSUs granted (b)	85,350	80,700	75,026	77,776		76,250
RSUs vested	—	—	—	64,488	(c)	73,750	(d)
RSUs forfeited (e)	—	—	—	13,288		2,500
RSUs outstanding	85,350	80,700	75,026	—		—
Vesting Date (f) (g)	6/30/2025	6/30/2024	6/30/2023	6/30/2022		6/30/2021


Year RSU Granted	Metric	Weight	Minimum Performance Criteria (a)	Maximum Performance Criteria (a)
2018 - 2020 (b)	ROC Metric (c)	50%	Average of annual ROC of at least 7%	Average of annual ROC of at least 9.75%
	TSR Metric (d)	50%	Average of annual TSR of at least 7%	Average of annual TSR of at least 12.0%
2021 - 2022 (e) (f)	ROC Metric (c)	50%	Average of annual ROC of at least 6%	Average of annual ROC of at least 8.75%
	TSR Metric (d)	50%	Average of annual TSR of at least 6%	Average of annual TSR of at least 11.0%


		Carrying and		Balance Sheet
	As of	Fair Value		Classification
Financial assets: Interest rate swaps	June 30, 2022	$	927	Other assets
	December 31, 2021		—

Financial liabilities: Interest rate swaps	June 30, 2022	$	1	Other liabilities
	December 31, 2021		1,514


	Number	Approximate			Contractual
Lease Expiration (1)	of	Square	Contractual		Base Rent
12 Months Ending	Expiring	Footage Subject to	Base Rent Under		Represented by
June 30,	Leases	Expiring Leases (2)	Expiring Leases		Expiring Leases
2023	11	266,456	$	1,355,754	1.9	%
2024	25	1,049,605		8,519,864	12.0
2025	20	786,304		6,935,767	9.7
2026	11	665,774		3,853,759	5.4
2027	24	806,802		6,655,712	9.4
2028	22	2,217,063		12,264,138	17.2
2029	12	1,595,853		8,287,950	11.6
2030	4	425,489		3,307,105	4.6
2031	8	742,476		4,317,185	6.1
2032	8	267,839		2,295,308	3.2
2033 and thereafter	25	1,767,798		13,409,512	18.9
	170	10,591,459	$	71,202,054	100.0	%


(Dollars in thousands)	2022		2023		2024		2025		Total
Amortization payments	$	6,112	$	12,048	$	11,139	$	9,701	$	39,000
Principal due at maturity		14,643		12,973		50,695		32,063		110,374
Total	$	20,755	$	25,021	$	61,834	$	41,764	$	149,374


Issuer Purchases of Equity Securities

				Total Number of	Approximate Dollar Value
				Shares Purchased	of Shares that May Yet Be
	Total Number of	Average Price		as Part of Publicly	Purchased Under
Period	Shares Purchased	Paid per Share		Announced Programs	the Programs
April 1, 2022 - April 30, 2022	—	$	—	—	$	7,500,000
May 1, 2022 - May 31, 2022	57,162		25.67	57,162		6,028,989
June 1, 2022 - June 30, 2022	75,783		25.29	75,783		4,107,799
Total	132,945		25.46	132,945

Exhibit No.		Title of Exhibit
10.1		Form of Performance Award Agreement for RSU grants in 2022 pursuant to the 2022 Incentive Plan.
31.1		Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Senior Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of President and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Certification of Senior Vice President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101		The following financial statements and notes from the One Liberty Properties, Inc. Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022 filed on August 4, 2022, formatted in Inline XBRL: (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Income; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Changes in Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to the Consolidated Financial Statements.
104		Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document and included in Exhibit 101).

		ONE LIBERTY PROPERTIES, INC.
		(Registrant)


Date: August 4, 2022		/s/ Patrick J. Callan, Jr.
		Patrick J. Callan, Jr.
		President and Chief Executive Officer
		(principal executive officer)


Date: August 4, 2022		/s/ David W. Kalish
		David W. Kalish
		Senior Vice President and
		Chief Financial Officer
		(principal financial officer)