One Liberty Properties Inc 10-Q for FY2021 Q3

One Liberty Properties Inc (OLP)

10-Q 2021-11-05 For: 2021-09-30

Added on April 07, 2026

About this 10-Q

One Liberty Properties Inc filed this 10-Q on November 5, 2021, covering the quarter ended September 30, 2021 (FY2021 Q3).

Headline figures

Quarter ended September 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $20.44M; down 3.0% from $21.07M a year earlier
Net income: $6.06M; down 55.9% from net income of $13.73M a year earlier
Diluted EPS: $0.28; down 58.2% from $0.67 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 — September 30, 2021 and December 31, 2020	1

	Consolidated Statements of Income — Three and nine months ended September 30, 2021 and 2020	2

	Consolidated Statements of Comprehensive Income — Three and nine months ended September 30, 2021 and 2020	3

	Consolidated Statements of Changes in Equity — Three and nine months ended September 30, 2021 and 2020	4

	Consolidated Statements of Cash Flows — Nine months ended September 30, 2021 and 2020	6

	Notes to Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38

Item 4.	Controls and Procedures	39

Part II — Other Information			39

Item 6.	Exhibits	39


	September 30,		December 31,
	2021		2020
ASSETS	(Unaudited)
Real estate investments, at cost
Land	$	180,760	$	190,391
Buildings and improvements		653,695		648,667
Total real estate investments, at cost		834,455		839,058
Less accumulated depreciation		157,499		147,136
Real estate investments, net		676,956		691,922

Investment in unconsolidated joint ventures		10,178		10,702
Cash and cash equivalents		13,740		12,705
Unbilled rent receivable		14,470		15,438
Unamortized intangible lease assets, net		21,498		24,703
Escrow, deposits and other assets and receivables		15,131		20,667
Total assets⁽¹⁾	$	751,973	$	776,137
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of $3,477 and $3,845 of deferred financing costs, respectively	$	403,452	$	429,704
Line of credit, net of $270 and $425 of deferred financing costs, respectively		2,930		12,525
Dividends payable		9,416		9,261
Accrued expenses and other liabilities		20,374		21,498
Unamortized intangible lease liabilities, net		10,702		11,189
Total liabilities⁽¹⁾		446,874		484,177

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; 20,178 and 19,878 shares issued and outstanding		20,178		19,878
Paid-in capital		319,608		313,430
Accumulated other comprehensive loss		(2,350)		(5,002)
Distributions in excess of net income		(33,264)		(37,539)
Total One Liberty Properties, Inc. stockholders’ equity		304,172		290,767
Non-controlling interests in consolidated joint ventures⁽¹⁾		927		1,193
Total equity		305,099		291,960
Total liabilities and equity	$	751,973	$	776,137


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Revenues:
Rental income, net	$	20,349	$	21,071	$	61,338	$	63,171
Lease termination fees		87		—		336		—
Total revenues		20,436		21,071		61,674		63,171

Operating expenses:
Depreciation and amortization		5,596		5,723		17,055		17,201
General and administrative (see Note 9 for related party information)		3,559		3,456		10,970		10,244
Real estate expenses (see Note 9 for related party information)		3,199		3,451		10,272		10,098
State taxes		55		75		221		227
Impairment due to casualty loss		—		430		—		430
Total operating expenses		12,409		13,135		38,518		38,200

Other operating income
Gain on sale of real estate, net		1,277		10,316		22,768		14,568
Operating income		9,304		18,252		45,924		39,539

Other income and expenses:
Equity in earnings of unconsolidated joint ventures		77		132		75		186
Equity in earnings from sale of unconsolidated joint venture properties		801		—		801		121
Prepayment costs on debt		(38)		(58)		(837)		(1,123)
Other income (see Note 13)		678		453		865		462
Interest:
Expense		(4,365)		(4,752)		(13,573)		(14,583)
Amortization and write-off of deferred financing costs		(245)		(301)		(754)		(760)

Net income		6,212		13,726		32,501		23,842
Net income attributable to non-controlling interests		(153)		(1)		(151)		(7)
Net income attributable to One Liberty Properties, Inc.	$	6,059	$	13,725	$	32,350	$	23,835

Weighted average number of common shares outstanding:
Basic		20,115		19,640		20,044		19,483
Diluted		20,273		19,686		20,198		19,511

Per common share attributable to common stockholders:
Basic	$	.29	$	.67	$	1.56	$	1.17
Diluted	$	.28	$	.67	$	1.55	$	1.17

Cash distributions per share of common stock	$	.45	$	.338	$	1.35	$	1.013
Stock distributions per share of common stock	$	—	$	.112	$	—	$	.337


									Non-Controlling
					Accumulated		Accumulated		Interests in
					Other		Distributions		Consolidated
	Common		Paid-in		Comprehensive		in Excess of		Joint
	Stock		Capital		Income (Loss)		Net Income		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
Distributions – common stock
Cash – $.45 per share		—		—		—		(9,416)		—		(9,416)
Restricted stock unit vesting		74		(74)		—		—		—		—
Shares issued through equity offering program—net		49		1,375		—		—		—		1,424
Shares issued through dividend reinvestment plan		31		832		—		—		—		863
Distributions to non-controlling interests		—		—		—		—		(425)		(425)
Compensation expense – restricted stock and RSUs		—		1,163		—		—		—		1,163
Net income		—		—		—		6,059		153		6,212
Other comprehensive income		—		—		314		—		3		317
Balances, September 30, 2021	$	20,178	$	319,608	$	(2,350)	$	(33,264)	$	927	$	305,099


From October 1 – December 31, 2021	$	17,590
For the year ending December 31,
2022		66,237
2023		60,402
2024		52,268
2025		47,809
2026		43,755
Thereafter		146,220
Total	$	434,281


		Contract			Capitalized
	Date		Purchase	Terms of		Transaction
Description of Property	Acquired	Price		Payment	Costs
Pureon industrial facility,
Monroe, North Carolina	May 27, 2021	$	7,000	Cash and $4,500 mortgage (a)	$	60
Multi-tenant industrial facility,
Lehigh Acres, Florida	September 29, 2021		9,355	Cash and $6,100 mortgage (a)		76
Totals for 2021		$	16,355		$	136


			Building &		Intangible Lease
Description of Property	Land		Improvements		Asset		Liability		Total
Pureon, Inc. industrial facility,
Monroe, North Carolina	$	897	$	5,106	$	1,057	$	—	$	7,060
Multi-tenant industrial facility,
Lehigh Acres, Florida		1,933		7,393		701		(596)		9,431
Totals for 2021	$	2,830	$	12,499	$	1,758	$	(596)	$	16,491



		Gross		Gain on Sale of			Mortgage		Prepayment
Description of Property	Date Sold	Sales Price		Real Estate, Net			Prepaid on Sale		Costs on Debt
Whole Foods retail property & parking lot,
West Hartford, Connecticut	June 17, 2021	$	40,510	$	21,469	(a)	$	15,403	$	799
Vacant retail property,
Philadelphia, Pennsylvania (b)	July 1, 2021		8,300		1,299			3,574		26
Totals - nine months ended September 30, 2021		$	48,810	$	22,768		$	18,977	$	825

Hobby Lobby retail property,
Onalaska, Wisconsin	February 11, 2020	$	7,115	$	4,252	(c)	$	3,332	$	290
CarMax retail property,
Knoxville, Tennessee	July 1, 2020		18,000		10,316	(c)		8,483		833	(d)
Totals - nine months ended September 30, 2020		$	25,115	$	14,568		$	11,815	$	1,123


Three and Nine Months Ended September 30, 2021 (a):
	Total Number	Shares Included Based on
	of Underlying	Return on	Stockholder		Shares
Date of Award	Shares (b)	Capital Metric	Return Metric	Total	Excluded (c)
July 1, 2019	75,026	37,513	37,513	75,026	—
August 3, 2020	75,026	37,513	37,513	75,026	—
August 3, 2021	80,700	23,375	17,722	41,097	39,603
Totals	230,752	98,401	92,748	191,149	39,603


		Total			Dividend Paid			Cash	Stock
Declaration Date (a)		Dividend	Payable Date	Record Date	Cash %	Stock %		Issued	Issued
March 12, 2021	$	9,329	April 7, 2021	March 24, 2021	100.0	n/a	$	9,329	n/a
June 10, 2021	$	9,330	July 9, 2021	June 25, 2021	100.0	n/a	$	9,330	n/a
September 14, 2021	$	9,398	October 7, 2021	September 27, 2021	100.0	n/a	$	9,398	n/a

March 13, 2020	$	9,037	April 7, 2020	March 24, 2020	100.0	n/a	$	9,037	n/a
June 10, 2020 (b)(c)	$	9,068	July 31, 2020	June 22, 2020	50.0	50.0	$	4,537	263
September 9, 2020 (b)(d)	$	9,198	October 29, 2020	September 21, 2020	75.0	25.0	$	6,901	141


		Carrying and		Balance Sheet
Financial liabilities:	As of	Fair Value		Classification
Interest rate swaps	September 30, 2021	$	2,352	Other liabilities
	December 31, 2020		5,012


	Number	Approximate			Contractual
Lease Expiration (1)	of	Square	Contractual		Base Rent
12 Months Ending	Expiring	Footage Subject to	Base Rent Under		Represented by
September 30,	Leases	Expiring Leases (2)	Expiring Leases		Expiring Leases
2022	16	1,126,099	$	3,808,714	5.6	%
2023	22	893,786		6,108,842	9.0
2024	27	1,047,470		8,620,409	12.7
2025	14	629,368		5,306,641	7.8
2026	13	593,392		3,820,830	5.6
2027	22	1,782,748		11,464,217	16.9
2028	12	772,581		4,475,333	6.6
2029	8	1,043,545		5,260,802	7.7
2030	7	483,230		4,474,866	6.6
2031	7	841,680		4,406,950	6.5
2032 and thereafter	22	1,128,564		10,294,450	15.0
	170	10,342,463	$	68,042,054	100.0	%


(Dollars in thousands)	2021		2022		2023		2024		Total
Amortization payments	$	3,370	$	13,416	$	12,801	$	11,940	$	41,527
Principal due at maturity		—		31,590		16,709		50,694		98,993
Total	$	3,370	$	45,006	$	29,510	$	62,634	$	140,520

Exhibit No.		Title of Exhibit
10.1*		Form of Performance Award Agreement for RSU grants in 2021 pursuant to the 2019 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 September 30, 2021 filed on November 5, 2021, 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: November 5, 2021		/s/ Patrick J. Callan, Jr.
		Patrick J. Callan, Jr.
		President and Chief Executive Officer
		(principal executive officer)


Date: November 5, 2021		/s/ David W. Kalish
		David W. Kalish
		Senior Vice President and
		Chief Financial Officer
		(principal financial officer)