Exhibit 99.1

 

ONE LIBERTY PROPERTIES REPORTS FOURTH QUARTER

AND FULL YEAR 2017 RESULTS

- Company Raises First Quarter 2018 Dividend –

 

GREAT NECK, New York, March 13, 2018 — One Liberty Properties, Inc. (NYSE: OLP), a real estate investment trust focused on net leased properties, today announced operating results for the quarter and year ended December 31, 2017.

 

Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty stated, “In 2017, One Liberty generated stronger cash flow from operations that supported our dividend being raised for a 6th consecutive year. We also remained disciplined and judicious in our allocation of capital; we focused our efforts on increasing our ownership of industrial properties that we believe are positioned to outperform other asset classes. Our opportunistic approach to source quality real estate acquisitions in attractive locations, with demographics and other attributes that support our strategy, enables us to create value and growth for our stockholders. As we move ahead, we will look to build on our success in 2018 and beyond.”

 

Fourth Quarter Operating Results:

 

Rental income for the three months ended December 31, 2017 increased 1.7% to $17.5 million, from $17.2 million in the corresponding quarter in the prior year, primarily reflecting the net impact of acquisitions and dispositions in 2017 and 2016.

 

Total operating expenses in the fourth quarter of 2017 increased to $11.1 million from $10.1 million for the three months ended December 31, 2016, primarily due to additional real estate expenses and depreciation and amortization related to properties acquired in 2017 and 2016. Substantially all of such additional real estate expense is reimbursed to the Company.

 

Net income attributable to One Liberty in the fourth quarter of 2017 was $4.2 million, or $0.22 per diluted share, compared to $4.4 million, or $0.24 per diluted share, in the fourth quarter of 2016. Gain on sale of real estate was $263,000 greater in the 2016 quarter than in that quarter of 2017.

 

Funds from Operations, or FFO, was $9.5 million, or $0.50 per diluted share, for the quarter ended December 31, 2017, compared to $9.2 million, or $0.51 per diluted share, in the corresponding quarter of 2016. Adjusted Funds from Operations, or AFFO, was $10.1 million, or $0.53 per diluted share, for the quarter ended December 31, 2017, compared to $9.6 million, or $0.53 per diluted share in the corresponding quarter of the prior year.

 

Diluted per share net income, FFO and AFFO were impacted in the quarter ended December 31, 2017 by the approximate 914,000 share increase in the weighted average number of shares of common stock outstanding due to stock issuances pursuant to One Liberty’s at-the-market offering, dividend reinvestment and equity incentive programs. A reconciliation of GAAP amounts to non-GAAP amounts is presented with the financial information included in this release.

 

 

 

 

 

Full Year 2017 Operating Results:

 

Rental income in 2017 grew 6.2% to $68.2 million from $64.2 million in 2016, primarily reflecting the net impact of acquisitions and dispositions in 2017 and 2016.

 

Total operating expenses during 2017 increased to $44.0 million from $38.9 million in 2016 primarily due to increases in depreciation and amortization and real estate expenses. These expenses increased as a result of the properties acquired in 2017 and 2016, and, to a lesser extent, as a result of write-offs of tenant origination costs with respect to former tenants that sought bankruptcy protection and vacated their properties and expenses relating to a property which was vacant for most of 2017. Most of these vacant properties have been sold or re-leased. The Company estimates that in 2018, it will generate $1.2 million of net income from four properties that were vacant for all or a portion of 2017 and it will not be responsible in the future for the carrying expenses associated with such properties.

 

Net income attributable to One Liberty was $24.1 million, or $1.28 per diluted share, compared to $24.4 million, or $1.39 per diluted share, in 2016. Gain on sale of real estate was $250,000 greater in 2016 than in 2017.

 

FFO for 2017 was $36.2 million, or $1.94 per diluted share, compared to 2016 FFO of $33.3 million, or $1.90 per diluted share. AFFO for 2017 was $39.1 million compared to $34.8 million in the prior year, with AFFO per diluted share growing 5.0% to $2.09, compared to $1.99 per diluted share.

 

Diluted per share net income, FFO and AFFO were impacted in 2017 by the approximate 1.2 million share increase in the weighted average number of shares of common stock outstanding due to stock issuances pursuant to One Liberty’s at-the-market offering, dividend reinvestment and equity incentive programs.

 

Acquisitions and Dispositions in 2017:

 

The Company acquired four industrial properties for $43.2 million. The Company expects to recognize in 2018 approximately $3.3 million of rental income from these properties, which contributed $1.6 million of rental income in 2017.

 

The Company sold four properties for gross proceeds of $27.1 million and recognized a net gain of $9.8 million from these sales. The properties sold contributed $328,000 and $1.6 million of rental income in 2017 and 2016, respectively.

 

Balance Sheet:

 

At December 31, 2017, the Company had $13.8 million of cash and cash equivalents, total assets of $742.6 million, total debt of $401.9 million, net of $4.4 million of deferred financing costs, and total stockholders’ equity of $296.8 million.

 

At March 5, 2018, One Liberty’s available liquidity was $102.8 million, including $6.7 million of cash and cash equivalents (net of the credit facility’s required $3 million deposit maintenance balance) and up to $96.1 million available under its credit facility.

 

 2 

 

 

 

Dividends:

 

On March 12, 2018, the Board of Directors declared a quarterly dividend on the Company’s common stock of $0.45 per share.  The dividend is payable April 6, 2018 to stockholders of record on March 27, 2018. One Liberty increased its quarterly dividend payment by 4.7% from $0.43 per share to $0.45 per share, effective as of the dividend declared in December 2017 and paid in January 2018.

 

Non-GAAP Financial Measures:

 

One Liberty computes FFO in accordance with the “White Paper on Funds From Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT’s related guidance. FFO is defined in the White Paper as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of property, plus real estate depreciation and amortization (including amortization of deferred leasing costs), plus impairment write-downs of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. One Liberty computes AFFO by adjusting from FFO for straight-line rent accruals and amortization of lease intangibles, deducting lease termination fees and gain on extinguishment of debt and adding back amortization of restricted stock compensation, amortization of costs in connection with its financing activities (including its share of its unconsolidated joint ventures) and debt prepayment costs. Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.

 

One Liberty believes that FFO and AFFO are useful and standard supplemental measures of the operating performance for equity REITs and are used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO and AFFO when reporting their operating results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assumes that the value of real estate assets diminish predictability over time. In fact, real estate values have historically risen and fallen with market conditions. As a result, management believes that FFO and AFFO provide a performance measure that when compared year over year, should reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs and other matters without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. Management also considers FFO and AFFO to be useful in evaluating potential property acquisitions.

 

FFO and AFFO do not represent net income or cash flows from operating, investing or financing activities as defined by GAAP. FFO and AFFO should not be considered to be an alternative to net income as a reliable measure of our operating performance nor as an alternative to cash flows as measures of liquidity. FFO and AFFO do not measure whether cash flow is sufficient to fund all of the Company’s cash needs.

 

Management recognizes that there are limitations in the use of FFO and AFFO. In evaluating the Company’s performance, management is careful to examine GAAP measures such as net income and cash flows from operating, investing and financing activities.

 

 3 

 

 

 

Forward Looking Statement:

 

Certain information contained in this press release, together with other statements and information publicly disseminated by One Liberty Properties, Inc. is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. We intend such forward looking statements to be covered by the safe harbor provision for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for the purpose of complying with these safe harbor provisions. Information regarding certain important factors that could cause actual outcomes or other events to differ materially from any such forward looking statements appear in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 and in particular “Item 1A. Risk Factors” included therein. You should not rely on forward looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements.

 

About One Liberty Properties:

 

One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio of industrial, retail (including furniture stores and supermarkets), restaurant, health and fitness and theater properties. Many of these properties are subject to long term net leases under which the tenant is typically responsible for the property’s real estate taxes, insurance and ordinary maintenance and repairs.

 

Contact:

 

One Liberty Properties

Investor Relations

Phone: (516) 466-3100

www.onelibertyproperties.com

 

 4 

 

 

ONE LIBERTY PROPERTIES, INC.

CONDENSED BALANCE SHEETS

(Amounts in Thousands)

 

   December 31,   December 31, 
   2017   2016 
         
ASSETS        
Real estate investments, net  $666,374   $651,213 
Investment in unconsolidated joint ventures   10,723    10,833 
Cash and cash equivalents   13,766    17,420 
Restricted cash   443    643 
Unbilled rent receivable   14,125    13,797 
Unamortized intangible lease assets, net   30,525    32,645 
Other assets   6,630    6,894 
Total assets  $742,586   $733,445 
           
LIABILITIES AND EQUITY          
Liabilities:          
Mortgages payable, net of $3,789 and $4,294 deferred financing costs, respectively  $393,157   $394,898 
Line of credit-outstanding, net of $624 and $936 deferred financing costs, respectively   8,776    9,064 
Unamortized intangible lease liabilities, net   17,551    19,280 
Other liabilities   24,600    18,276 
Total liabilities   444,084    441,518 
           
Total One Liberty Properties, Inc. stockholders' equity   296,760    290,133 
Non-controlling interests in consolidated joint ventures   1,742    1,794 
Total equity   298,502    291,927 
Total liabilities and equity  $742,586   $733,445 

 

 5 

 

 

ONE LIBERTY PROPERTIES, INC. (NYSE: OLP)

(Amounts in Thousands, Except Per Share Data)

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
   2017   2016   2017   2016 
Revenues:                
Rental income, net  $17,474   $17,180   $68,244   $64,164 
Tenant reimbursements   2,420    1,810    7,672    6,424 
Total revenues   19,894    18,990    75,916    70,588 
                     
Operating expenses:                    
Depreciation and amortization   5,135    4,918    20,993    18,164 
General and administrative   2,870    2,732    11,279    10,693 
Real estate expenses   2,971    2,410    10,736    8,931 
Real estate acquisition costs   -    (14)   -    596 
Federal excise and state taxes   80    5    481    203 
Leasehold rent   77    77    308    308 
Impairment loss   -    -    153    - 
Total operating expenses   11,133    10,128    43,950    38,895 
                     
Operating income   8,761    8,862    31,966    31,693 
                     
Other income and expenses:                    
Equity in earnings of unconsolidated joint ventures   163    211    826    1,005 
Prepayment costs on debt   -    -    -    (577)
Other income   8    4    407    435 
Interest:                    
Expense   (4,430)   (4,665)   (17,810)   (17,258)
Amortization and write-off of deferred financing costs   (260)   (261)   (977)   (904)
                     
Income before gain on sale of real estate, net   4,242    4,151    14,412    14,394 
Gain on sale of real estate, net   -    263    9,837    10,087 
                     
Net income   4,242    4,414    24,249    24,481 
Net income attributable to non-controlling interests   (37)   (19)   (102)   (59)
                     
Net income attributable to One Liberty Properties, Inc.  $4,205   $4,395   $24,147   $24,422 
                     
Net income per share attributable to common stockholders-diluted  $0.22   $0.24   $1.28   $1.39 
                     
Funds from operations - Note 1  $9,524   $9,239   $36,193   $33,256 
Funds from operations per common share-diluted - Note 2  $0.50   $0.51   $1.94   $1.90 
                     
Adjusted funds from operations - Note 1  $10,081   $9,557   $39,065   $34,848 
Adjusted funds from operations per common share-diluted - Note 2  $0.53   $0.53   $2.09   $1.99 
                     
Weighted average number of common and unvested restricted shares outstanding:                    
Basic   18,810    17,854    18,564    17,373 
Diluted   18,882    17,968    18,667    17,487 

 

 6 

 

 

ONE LIBERTY PROPERTIES, INC. (NYSE: OLP)

(Amounts in Thousands, Except Per Share Data)

(Unaudited)

 

   Three Months Ended   Twelve Months Ended 
   December 31,   December 31, 
Note 1:  2017   2016   2017   2016 
NAREIT funds from operations is summarized in the following table:                
GAAP net income attributable to One Liberty Properties, Inc.  $4,205   $4,395   $24,147   $24,422 
Add: depreciation and amortization of properties   5,053    4,839    20,674    17,865 
Add: our share of depreciation and amortization of unconsolidated joint ventures   216    223    872    893 
Add: impairment loss   -    -    153    - 
Add: amortization of deferred leasing costs   83    79    319    299 
Add: Federal excise tax relating to gain on sale   -    -    -    6 
Deduct: gain on sale of real estate   -    (263)   (9,837)   (10,087)
Adjustments for non-controlling interests   (33)   (34)   (135)   (142)
NAREIT funds from operations applicable to common stock   9,524    9,239    36,193    33,256 
                     
Deduct: straight-line rent accruals and amortization of lease intangibles   (527)   (775)   (1,329)   (2,991)
Add: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures   10    12    36    49 
Add: amortization of restricted stock compensation   792    807    3,133    2,983 
Add: prepayment costs on debt   -    -    -    577 
Add: amortization and write-off of deferred financing costs   259    261    977    904 
Add: our share of amortization and write-off of deferred financing costs of unconsolidated joint ventures   6    6    25    25 
Adjustments for non-controlling interests   17    7    30    45 
Adjusted funds from operations applicable to common stock  $10,081   $9,557   $39,065   $34,848 
Note 2:                    
NAREIT funds from operations is summarized in the following table:                    
GAAP net income attributable to One Liberty Properties, Inc.  $0.22   $0.24   $1.28   $1.39 
Add: depreciation and amortization of properties   0.27    0.27    1.12    1.02 
Add: our share of depreciation and amortization of unconsolidated joint ventures   0.01    0.01    0.05    0.05 
Add: impairment loss   -    -    0.01    - 
Add: amortization of deferred leasing costs   -    -    0.02    0.02 
Deduct: gain on sale of real estate   -    (0.01)   (0.53)   (0.57)
Adjustments for non-controlling interests   -    -    (0.01)   (0.01)
NAREIT funds from operations per share of common stock-diluted   0.50    0.51    1.94    1.90 
                     
Deduct: straight-line rent accruals and amortization of lease intangibles   (0.02)   (0.03)   (0.07)   (0.16)
Add: amortization of restricted stock compensation   0.04    0.04    0.17    0.17 
Add: prepayment costs on debt   -    -    -    0.03 
Add: amortization and write-off of deferred financing costs   0.01    0.01    0.05    0.05 
Adjustments for non-controlling interests   -    -    -    - 
Adjusted funds from operations per share of common stock-diluted  $0.53   $0.53   $2.09   $1.99 

 

 7 

View differences made from one to another to evaluate One Liberty Properties Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by One Liberty Properties Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account