One Liberty Properties Inc 10-Q for FY2020 Q3

One Liberty Properties Inc (OLP)

10-Q 2020-11-05 For: 2020-09-30

Added on April 07, 2026

About this 10-Q

One Liberty Properties Inc filed this 10-Q on November 5, 2020, covering the quarter ended September 30, 2020 (FY2020 Q3).

Headline figures

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

Revenue: $21.07M; up 3.2% from $20.41M a year earlier
Net income: $13.73M; up 168.2% from net income of $5.12M 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 —September 30, 2020 and December 31, 2019	1

	Consolidated Statements of Income — Three and nine months ended September 30, 2020 and 2019	2

	Consolidated Statements of Comprehensive Income — Three and nine months ended September 30, 2020 and 2019	3

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

	Consolidated Statements of Cash Flows — Nine months ended September 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	25

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38

Item 4.	Controls and Procedures	39

Part II — Other Information

Item 1A.	Risk Factors	40

Item 6.	Exhibits	41


	September 30,		December 31,
	2020		2019
ASSETS	(Unaudited)
Real estate investments, at cost
Land	$	194,356	$	195,320
Buildings and improvements		651,501		640,517
Total real estate investments, at cost		845,857		835,837
Less accumulated depreciation		143,656		135,302
Real estate investments, net		702,201		700,535

Investment in unconsolidated joint ventures		10,982		11,061
Cash and cash equivalents		14,193		11,034
Unbilled rent receivable		16,518		15,037
Unamortized intangible lease assets, net		26,082		26,068
Escrow, deposits and other assets and receivables		16,754		10,894
Total assets⁽¹⁾	$	786,730	$	774,629
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of $4,007 and $4,438 of deferred financing costs, respectively	$	433,088	$	435,840
Line of credit, net of $478 and $619 of deferred financing costs, respectively		16,672		10,831
Dividends payable		9,198		8,966
Accrued expenses and other liabilities		22,311		14,587
Unamortized intangible lease liabilities, net		11,943		12,421
Total liabilities⁽¹⁾		493,212		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; 50,000 and 25,000 shares authorized; 19,737 and 19,251 shares issued and outstanding		19,737		19,251
Paid-in capital		310,029		301,517
Accumulated other comprehensive loss		(5,612)		(1,623)
Distributions in excess of net income		(31,850)		(28,382)
Total One Liberty Properties, Inc. stockholders’ equity		292,304		290,763
Non-controlling interests in consolidated joint ventures⁽¹⁾		1,214		1,221
Total equity		293,518		291,984
Total liabilities and equity	$	786,730	$	774,629


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Revenues:
Rental income, net	$	21,071	$	20,414	$	63,171	$	62,288

Operating expenses:
Depreciation and amortization		5,723		5,566		17,201		16,353
General and administrative (see Note 9 for related party information)		3,456		3,143		10,244		9,319
Real estate expenses (see Note 9 for related party information)		3,451		3,692		10,098		10,544
State taxes		75		68		227		255
Impairment due to casualty loss		430		—		430		—
Total operating expenses		13,135		12,469		38,200		36,471

Other operating income
Gain on sale of real estate, net		10,316		2,544		14,568		3,643
Operating income		18,252		10,489		39,539		29,460

Other income and expenses:
Equity in earnings (loss) of unconsolidated joint ventures		132		50		186		(32)
Equity in earnings from sale of unconsolidated joint venture property		—		—		121		—
Prepayment costs on debt		(58)		(161)		(1,123)		(201)
Other income (including $430 of insurance recoveries in 2020, see Note 4)		453		8		462		18
Interest:
Expense		(4,752)		(5,037)		(14,583)		(14,840)
Amortization and write-off of deferred financing costs		(301)		(252)		(760)		(739)

Net income		13,726		5,097		23,842		13,666
Net (income) loss attributable to non-controlling interests		(1)		21		(7)		(465)
Net income attributable to One Liberty Properties, Inc.	$	13,725	$	5,118	$	23,835	$	13,201

Weighted average number of common shares outstanding:
Basic		19,640		19,191		19,483		19,037
Diluted		19,686		19,239		19,511		19,076

Per common share attributable to common stockholders:
Basic and Diluted	$	.67	$	.25	$	1.17	$	.64

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


					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
Distributions – common stock
Cash – $.338 per share		—		—		—		(6,898)		—		(6,898)
Stock – $.112 per share		—		—		—		(2,300)		—		(2,300)
Shares issued through stock dividend		263		4,268		—		—		—		4,531
Restricted stock vesting		24		(24)		—		—		—		—
Contribution from non-controlling interest		—		—		—		—		10		10
Distributions to non-controlling interests		—		—		—		—		(5)		(5)
Compensation expense – restricted stock		—		1,136		—		—		—		1,136
Net income		—		—		—		13,725		1		13,726
Other comprehensive income		—		—		392		—		2		394
Balances, September 30, 2020	$	19,737	$	310,029	$	(5,612)	$	(31,850)	$	1,214	$	293,518


From October 1 – December 31, 2020	$	18,076
For the year ended December 31,
2021		73,743
2022		62,824
2023		53,894
2024		45,251
2025		40,901
Thereafter		165,218
Total	$	459,907


	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



		Gross		Gain on Sale of		Mortgage		Prepayment
Description of Property	Date Sold	Sales Price		Real Estate, Net		Prepaid on Sale		Costs on Debt
Hobby Lobby retail property,
Onalaska, Wisconsin	February 11, 2020	$	7,115	$	4,252	$	3,332	$	290
CarMax retail property,
Knoxville, Tennessee	July 1, 2020		18,000		10,316		8,483		833	(a)
Totals - nine months ended September 30, 2020		$	25,115	$	14,568	$	11,815	$	1,123

Kmart retail property,
Clemmons, North Carolina (b)	June 20, 2019	$	5,500	$	1,099	$	1,705	$	40
Multi-tenant retail property,
Athens, Georgia	August 23, 2019		6,050		1,045		2,645		161
Land - The Briarbrook Village Apartments,
Wheaton, Illinois	August 29, 2019		12,035		1,499		n/a		n/a
Totals - nine months ended September 30, 2019		$	23,585	$	3,643	$	4,350	$	201


		Dividend		Total			Dividend Paid			Cash	Stock
Declaration Date		per Share		Dividend	Payable Date	Record Date	Cash %	Stock %		Issued	Issued
March 13, 2020	$	0.45	$	9,036	April 7, 2020	March 24, 2020	100.0	—	$	9,036	—
June 10, 2020 (a)(b)	$	0.45	$	9,068	July 31, 2020	June 22, 2020	50.0	50.0	$	4,537	263
September 9, 2020 (a)(c)(d)	$	0.45	$	9,198	October 29, 2020	September 21, 2020	75.0	25.0	$	6,898	141


Three and Nine Months Ended September 30, 2020 (a):

	Total Number of	Return on	Stockholder		Shares
Date of Award	Underlying Shares (b)(c)	Capital Metric	Return Metric	Total	Excluded (d)
July 1, 2018	73,750	26,456	—	26,456	47,294
July 1, 2019	75,026	25,724	—	25,724	49,302
August 3, 2020	75,026	37,513	—	37,513	37,513
Totals	223,802	89,693	—	89,693	134,109


		Carrying and		Balance Sheet
Interest rate swaps	As of	Fair Value		Classification
Financial assets	September 30, 2020	$	—	Other assets
	December 31, 2019		87

Financial liabilities	September 30, 2020	$	5,624	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
September 30,	Leases	Expiring Leases (2)	Expiring Leases		Expiring Leases
2021	9	171,836	$	688,067	0.9
2022	22	2,111,837		14,577,580	19.6
2023	21	850,598		5,654,220	7.6
2024	25	1,228,072		9,560,326	12.9
2025	13	528,789		4,858,422	6.6
2026	9	290,272		4,155,143	5.6
2027	12	1,242,319		7,736,366	10.4
2028	9	663,408		3,589,357	4.8
2029	8	1,043,545		5,192,318	7.0
2030	6	175,447		3,408,940	4.6
2031 and thereafter	24	1,856,091		14,802,107	20.0
	158	10,162,214	$	74,222,846	100.0


(Dollars in thousands)	2020		2021		2022		2023		Total
Amortization payments	$	3,189	$	14,599	$	14,587	$	13,576	$	45,951
Principal due at maturity		—		8,542		31,584		16,709		56,835
Total	$	3,189	$	23,141	$	46,171	$	30,285	$	102,786

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 September 30, 2020 filed on November 5, 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: November 5, 2020		/s/ Patrick J. Callan, Jr.
		Patrick J. Callan, Jr.
		President and Chief Executive Officer
		(principal executive officer)


Date: November 5, 2020		/s/ David W. Kalish
		David W. Kalish
		Senior Vice President and
		Chief Financial Officer
		(principal financial officer)