One Liberty Properties Inc 10-Q for FY2020 Q2

One Liberty Properties Inc (OLP)

10-Q 2020-08-07 For: 2020-06-30

Added on April 07, 2026

About this 10-Q

One Liberty Properties Inc filed this 10-Q on August 7, 2020, covering the quarter ended June 30, 2020 (FY2020 Q2).

Headline figures

Quarter ended June 30, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $20.86M; up 0.7% from $20.72M a year earlier
Net income: $2.28M; down 44.5% from net income of $4.11M a year earlier
Diluted EPS: $0.10; down 50.0% from $0.20 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 ☐

Part I — Financial Information		Page No.

Item 1.	Unaudited Consolidated Financial Statements

	Consolidated Balance Sheets —June 30, 2020 and December 31, 2019	1

	Consolidated Statements of Income — Three and six months ended June 30, 2020 and 2019	2

	Consolidated Statements of Comprehensive Income — Three and six months ended June 30, 2020 and 2019	3

	Consolidated Statements of Changes in Equity — Three and six months ended June 30, 2020 and 2019	4

	Consolidated Statements of Cash Flows — Six months ended June 30, 2020 and 2019	6

	Notes to Consolidated Financial Statements	8

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

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	35

Item 4.	Controls and Procedures	36

Part II — Other Information

Item 1A.	Risk Factors	37

Item 5.	Other Information	38

Item 6.	Exhibits	39


	June 30,		December 31,
	2020		2019
ASSETS	(Unaudited)
Real estate investments, at cost
Land	$	194,356	$	195,320
Buildings and improvements		651,902		640,517
Total real estate investments, at cost		846,258		835,837
Less accumulated depreciation		139,538		135,302
Real estate investments, net		706,720		700,535

Property held-for-sale		7,661		—
Investment in unconsolidated joint ventures		10,849		11,061
Cash and cash equivalents		18,571		11,034
Unbilled rent receivable		15,981		15,037
Unamortized intangible lease assets, net		27,398		26,068
Escrow, deposits and other assets and receivables		12,410		10,894
Total assets⁽¹⁾	$	799,590	$	774,629
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of $4,255 and $4,438 of deferred financing costs, respectively	$	444,437	$	435,840
Line of credit, net of $516 and $619 of deferred financing costs, respectively		30,334		10,831
Dividends payable		9,068		8,966
Accrued expenses and other liabilities		20,538		14,587
Unamortized intangible lease liabilities, net		12,289		12,421
Total liabilities⁽¹⁾		516,666		482,645

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; 25,000 shares authorized; 19,450 and 19,251 shares issued and outstanding		19,450		19,251
Paid-in capital		304,649		301,517
Accumulated other comprehensive loss		(6,004)		(1,623)
Distributions in excess of net income		(36,377)		(28,382)
Total One Liberty Properties, Inc. stockholders’ equity		281,718		290,763
Non-controlling interests in consolidated joint ventures⁽¹⁾		1,206		1,221
Total equity		282,924		291,984
Total liabilities and equity	$	799,590	$	774,629


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenues:
Rental income, net	$	20,861	$	20,719	$	42,100	$	41,874

Operating expenses:
Depreciation and amortization		5,804		5,440		11,478		10,787
General and administrative (see Note 9 for related party information)		3,454		3,005		6,788		6,176
Real estate expenses (see Note 9 for related party information)		3,305		3,511		6,647		6,852
State taxes		70		108		152		187
Total operating expenses		12,633		12,064		25,065		24,002

Other operating income
Gain on sale of real estate, net		—		1,099		4,252		1,099
Operating income		8,228		9,754		21,287		18,971

Other income and expenses:
Equity in (loss) earnings of unconsolidated joint ventures		(10)		34		54		(82)
Equity in earnings from sale of unconsolidated joint venture property		—		—		121		—
Prepayment costs on debt		(775)		(41)		(1,065)		(41)
Other income		5		6		9		10
Interest:
Expense		(4,947)		(4,940)		(9,831)		(9,802)
Amortization and write-off of deferred financing costs		(216)		(255)		(459)		(487)

Net income		2,285		4,558		10,116		8,569
Net income attributable to non-controlling interests		(1)		(446)		(6)		(486)
Net income attributable to One Liberty Properties, Inc.	$	2,284	$	4,112	$	10,110	$	8,083

Weighted average number of common shares outstanding:
Basic		19,445		19,023		19,403		18,959
Diluted		19,505		19,129		19,433		19,060

Per common share attributable to common stockholders:
Basic	$	.10	$	.20	$	.49	$	.39
Diluted	$	.10	$	.20	$	.49	$	.39

Cash distributions per share of common stock	$	.225	$	.45	$	.675	$	.90
Stock distributions per share of common stock	$	.225		—	$	.225		—


					Accumulated		Accumulated		Non-Controlling
					Other		Distributions		Interests in
	Common		Paid-in		Comprehensive		in Excess of		Consolidated
	Stock		Capital		(Loss)		Net Income		Joint Ventures		Total
Balances, December 31, 2019	$	19,251	$	301,517	$	(1,623)	$	(28,382)	$	1,221	$	291,984
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,036)		—		(9,036)
Restricted stock vesting		122		(122)		—		—		—		—
Shares issued through dividend reinvestment plan		7		159		—		—		—		166
Distributions to non-controlling interests		—		—		—		—		(8)		(8)
Compensation expense – restricted stock		—		976		—		—		—		976
Net income		—		—		—		7,826		5		7,831
Other comprehensive loss		—		—		(4,809)		—		(9)		(4,818)
Balances, March 31, 2020		19,380		302,530		(6,432)		(29,592)		1,209		287,095
Distributions – common stock
Cash – $.225 per share		—		—		—		(4,535)		—		(4,535)
Stock – $.225 per share		—		—		—		(4,534)		—		(4,534)
Shares issued through dividend reinvestment plan		70		790		—		—		—		860
Distributions to non-controlling interests		—		—		—		—		(5)		(5)
Compensation expense – restricted stock		—		1,329		—		—		—		1,329
Net income		—		—		—		2,284		1		2,285
Other comprehensive income		—		—		428		—		1		429
Balances, June 30, 2020	$	19,450	$	304,649	$	(6,004)	$	(36,377)	$	1,206	$	282,924


From July 1 – December 31, 2020	$	35,704
For the year ended December 31,
2021		73,348
2022		62,754
2023		54,055
2024		45,432
2025		41,082
Thereafter		158,782
Total	$	471,157


	Date	Contract		Terms of	Capitalized
Description of Property	Acquired	Purchase Price		Payment	Transaction Costs
Creative Office Environments industrial facility,
Ashland, Virginia	February 20, 2020	$	9,100	All cash (a)	$	119
Fed Ex industrial facility,
Lowell, Arkansas	February 24, 2020		19,150	All cash (a)		135
Totals		$	28,250		$	254


			Building &		Intangible Lease
Description of Property	Land		Improvements		Asset		Liability		Total
Creative Office Environments industrial facility,
Ashland, Virginia	$	391	$	7,901	$	927	$	—	$	9,219
Fed Ex industrial facility,
Lowell, Arkansas		1,687		15,188		2,978		(568)		19,285
Totals	$	2,078	$	23,089	$	3,905	$	(568)	$	28,504


Three and Six Months Ended June 30, 2020 (a)(b):
	Total Number of	Return on	Stockholder		Shares
Date of Award	Underlying Shares (c)(d)	Capital Metric	Return Metric	Total	Excluded (e)
September 26, 2017 (b)	76,250	24,343	—	24,343	51,907
July 1, 2018	73,750	17,967	—	17,967	55,783
July 1, 2019	75,026	7,262	—	7,262	67,764
Totals	225,026	49,572	—	49,572	175,454


Three and Six Months Ended June 30, 2019 (f):
	Total Number of	Return on	Stockholder		Shares
Date of Award	Underlying Shares (c)	Capital Metric	Return Metric	Total	Excluded (e)
September 26, 2017 (b)	76,250	32,824	38,125	70,949	5,301
July 1, 2018	76,250	29,771	38,125	67,896	8,354
Totals	152,500	62,595	76,250	138,845	13,655


		Carrying and		Balance Sheet
Interest rate swaps	As of	Fair Value		Classification
Financial assets	June 30, 2020	$	—	Other assets
	December 31, 2019		87
Financial liabilities
	June 30, 2020	$	6,788	Other liabilities
	December 31, 2019		1,715


					Percentage of
	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
2021	11	207,197	$	985,066	1.3
2022	22	1,329,687		8,278,996	11.1
2023	16	1,411,258		10,331,497	13.9
2024	23	1,248,150		9,004,828	12.1
2025	18	679,674		6,267,371	8.4
2026	10	306,440		4,296,794	5.8
2027	9	436,068		3,215,015	4.3
2028	11	1,437,944		7,691,363	10.3
2029	10	1,110,590		5,460,812	7.3
2030	5	217,707		3,904,618	5.3
2031 and thereafter	24	1,812,829		14,878,575	20.2
	159	10,197,544	$	74,314,935	100.0


(Dollars in thousands)	2020		2021		2022		2023		Total
Amortization payments	$	6,437	$	14,873	$	14,918	$	13,873	$	50,101
Principal due at maturity		—		8,542		31,539		16,709		56,790
Total	$	6,437	$	23,415	$	46,457	$	30,582	$	106,891


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Restricted stock grants:
Number of shares		—		—		149,550		150,050
Average per share grant price		—		—	$	28.10	$	25.70
Deferred compensation to be recognized over vesting period		—		—	$	4,202,000	$	3,856,000

Number of non-vested shares:
Non-vested beginning of period		701,675		689,150		674,250		651,250
Grants		—		—		149,550		150,050
Vested during period		—		—		(122,125)		(112,150)
Forfeitures		—		—		—		—
Non-vested end of period		701,675		689,150		701,675		689,150

RSU grants:
Number of underlying shares		—		—		—		—
Average per share grant price		—		—		—		—
Deferred compensation to be recognized over vesting period		—		—		—		—

Number of non-vested shares:
Non-vested beginning of period		225,026		152,500		225,026		152,500
Grants		—		—		—		—
Vested during period		(24,343)		—		(24,343)		—
Forfeitures		(51,907)		—		(51,907)		—
Non-vested end of period		148,776		152,500		148,776		152,500

Restricted stock and RSU grants:
Weighted average per share value of non-vested shares (based on grant price)	$	25.65	$	24.60	$	25.65	$	24.60
Value of stock vested during the period (based on grant price)	$	585,000	$	—	$	3,589,000	$	2,304,000
Weighted average per share value of shares forfeited during the period (based on grant price)	$	24.03	$	—	$	24.03	$	—

The total charge to operations:
Outstanding restricted stock grants	$	884,000	$	843,000	$	1,759,000	$	1,686,000
Outstanding RSUs		445,000		95,000		546,000		206,000
Total charge to operations	$	1,329,000	$	938,000	$	2,305,000	$	1,892,000

Exhibit No.		Title of Exhibit
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, 2020 filed on August 7, 2020, 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 7, 2020		/s/ Patrick J. Callan, Jr.
		Patrick J. Callan, Jr.
		President and Chief Executive Officer
		(principal executive officer)


Date: August 7, 2020		/s/ David W. Kalish
		David W. Kalish
		Senior Vice President and
		Chief Financial Officer
		(principal financial officer)