One Liberty Stock Price, News & Analysis

One Liberty Properties, Inc. (NYSE: OLP) is a self-administered and self-managed real estate investment trust (REIT) that focuses on acquiring, owning and managing a geographically diversified portfolio consisting primarily of industrial properties. According to the company’s disclosures, many of these properties are subject to long-term net leases, under which tenants are typically responsible for real estate taxes, insurance and ordinary maintenance and repairs. One Liberty is incorporated in Maryland and its common stock trades on the New York Stock Exchange under the symbol OLP.

Business focus and property portfolio

One Liberty describes itself as a REIT focused on industrial properties and, in some disclosures, on net leased properties. Over recent years, the company has emphasized a transformation of its portfolio toward industrial assets. In various press releases, One Liberty notes that a substantial and growing portion of its annual base rent is derived from industrial properties, and that its portfolio is geographically diversified. The company has also indicated that it owns properties that are leased to single tenants as well as multi-tenant industrial properties.

In earlier descriptions, One Liberty stated that it acquires, owns and manages a geographically diversified portfolio consisting mainly of industrial and, to a lesser extent, retail properties, with many properties subject to long-term net leases. More recent communications emphasize that the portfolio consists primarily of industrial properties and highlight the company’s efforts to recycle capital from non-industrial or non-core assets into additional industrial acquisitions.

Industrial-focused transformation

Company press releases describe an ongoing portfolio transformation toward a more industrial-focused platform. One Liberty has reported multiple acquisitions of industrial properties and portfolios, as well as sales of non-industrial or non-core assets, as part of this effort. The company has highlighted that, after giving effect to certain acquisitions and dispositions, a significant majority of its base rent is generated from industrial tenants. Management has characterized this shift as enhancing the stability of cash flow and strengthening its industrial platform.

Examples disclosed by the company include the acquisition of single-tenant industrial properties and multi-tenant industrial portfolios, as well as the sale of retail, restaurant, health and fitness, and other non-industrial properties. The company has also discussed using proceeds from property sales and available liquidity, together with mortgage debt, to fund industrial acquisitions.

Net lease structure and rental income

One Liberty states that many of its properties are subject to long-term net leases. Under these arrangements, the tenant is typically responsible for the property’s real estate taxes, insurance and ordinary maintenance and repairs. The company has also noted that a majority of its revenue is generated in the form of rental income. In its communications, One Liberty frequently refers to annual base rent (ABR) as a key operating measure, generally representing base rent payable over a specified twelve-month period under leases in effect at a given date.

In addition to base rent, the company’s disclosures refer to tenant reimbursements of certain real estate expenses, lease termination fees in some periods, and variable lease revenues. However, when describing its operating performance and portfolio composition, One Liberty often focuses on base rent associated with its industrial properties.

Corporate structure and history

According to the company’s public filings and press releases, One Liberty is a Maryland corporation and a self-administered and self-managed equity REIT. The company has stated that it was incorporated in Maryland in 1982. It has also highlighted a long history of paying quarterly dividends on its common stock and has noted that it has increased or maintained its dividend for more than three decades, with over one hundred consecutive quarterly dividends declared.

One Liberty’s filings with the U.S. Securities and Exchange Commission (SEC) identify it as an equity REIT and provide additional detail on its real estate investments, mortgages payable, stockholders’ equity and other financial statement items. The company’s common stock is registered under Section 12(b) of the Securities Exchange Act of 1934 and is listed on the New York Stock Exchange.

Financial and operating measures

In addition to reporting results under generally accepted accounting principles (GAAP), One Liberty regularly discusses Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO) in its press releases and filings. The company states that it computes FFO in accordance with the National Association of Real Estate Investment Trusts (NAREIT) “White Paper on Funds from Operations” and related guidance. FFO is described as net income, calculated in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, and certain impairment write-downs.

One Liberty explains that it computes AFFO by adjusting FFO for items such as straight-line rent accruals and amortization of lease intangibles, additional rent from a ground lease tenant, income on settlement of litigation, income on insurance recoveries from casualties, lease termination and assignment fees, amortization of restricted stock and restricted stock unit compensation expense, amortization of financing costs (including its share of unconsolidated joint ventures), debt prepayment costs and amortization of lease incentives and mortgage intangible assets. The company notes that, because NAREIT does not provide guidelines for computing AFFO, the calculation may vary from one REIT to another.

One Liberty states that FFO and AFFO are used by management, securities analysts and investors as supplemental measures of operating performance for equity REITs. The company emphasizes that these measures are intended to exclude GAAP historical cost depreciation and amortization of real estate assets and that they should not be viewed as alternatives to net income or cash flows from operating, investing or financing activities as defined by GAAP.

Capital recycling and transaction activity

Company announcements describe active capital recycling through acquisitions and dispositions. One Liberty has reported acquiring multiple industrial properties and portfolios, sometimes funded with a combination of cash, mortgage debt and its credit facility. It has also reported selling non-core or non-industrial assets, including retail properties, restaurant properties, health and fitness properties, and other real estate, often recognizing gains on sale.

In some communications, One Liberty notes that proceeds from property sales and available liquidity are used to fund additional industrial acquisitions. The company has also discussed entering into and completing contracts to acquire industrial properties in various markets, as well as entering into contracts to sell multi-family or other non-industrial assets that have not generated rental income for several years.

Dividends and shareholder returns

One Liberty has highlighted its dividend record in multiple press releases, noting that it has declared well over one hundred consecutive quarterly dividends on its common stock. The company has stated that it has increased or maintained its dividend for more than 31 consecutive years. In its dividend announcements, One Liberty often provides information on the estimated federal income tax characterization of dividends for stockholders, including the portion expected to be included in taxable income and the portion expected to be treated as capital gains.

As a REIT, One Liberty’s communications encourage interested parties to review its Annual Report on Form 10-K and other SEC reports for additional information about its operations, portfolio, risk factors and management’s discussion and analysis of financial condition and results of operations.

Regulatory reporting and exchange listing

One Liberty files periodic and current reports with the SEC, including Forms 10-K, 10-Q and 8-K. Its 8-K filings frequently attach press releases announcing quarterly and annual operating results, acquisitions, dispositions and other material events. The company’s common stock is listed on the New York Stock Exchange under the trading symbol OLP, as indicated in its SEC filings under the section covering securities registered pursuant to Section 12(b) of the Exchange Act.

Through these filings and press releases, One Liberty provides detailed information on its real estate investments, mortgages payable, line of credit, equity, cash and cash equivalents, and other assets and liabilities. The company also includes cautionary statements regarding forward-looking information, referring readers to risk factor and management discussion sections in its Annual Report on Form 10-K and subsequent filings.

How One Liberty Properties fits within the REIT sector

Within the broader finance and insurance sector and the category of other financial vehicles, One Liberty operates as an equity REIT focused on income-producing real estate. Its emphasis on industrial properties, use of long-term net leases, and reliance on rental income as a primary revenue source align it with REITs that concentrate on stable, lease-based cash flows. The company’s use of FFO and AFFO, attention to annual base rent, and capital recycling through acquisitions and dispositions reflect common practices among equity REITs.

Investors and analysts who follow One Liberty typically review its portfolio composition by property type, the share of base rent generated by industrial properties, the terms of its leases, and its reported FFO and AFFO. The company’s long history as a Maryland-incorporated REIT and its New York Stock Exchange listing provide additional context for understanding its role in public real estate markets.