—Closes Acquisition of Industrial Property—
—Sells Two Assets and Secures Contracts for Three Additional Sales —
“We remained focused on the goal of transforming our portfolio towards industrial ownership in the first quarter, working to execute on targeted and opportunistic sales and strategic acquisitions. These efforts led to the sale during the quarter of a restaurant, and subsequent to quarter end, to the addition of an industrial property, along with the sales and pending sales of four assets, including the sales of two retail properties and a restaurant,” stated
Operating Results:
Rental income was
Total operating expenses were relatively flat at
Net income attributable to One Liberty in the first quarter of 2024 was
Funds from Operations, or FFO1, was
Adjusted Funds from Operations, or AFFO, was
_______________
1 A description and reconciliation of non-GAAP financial measures (i.e., FFO and AFFO) to GAAP financial measures is presented later in this release.
Balance Sheet:
At
At
Transactions:
Dispositions
During the quarter, the Company sold a pad site at a multi-tenant retail shopping center in
Subsequent to quarter end, the Company sold a restaurant for a sales price of
Acquisition
On
Non-GAAP Financial Measures:
One Liberty computes FFO in accordance with the “White Paper on Funds from Operations” issued by the
One Liberty computes AFFO by adjusting from FFO for straight-line rent accruals and amortization of lease intangibles, deducting from income additional rent from ground lease tenant, income on settlement of litigation, income on insurance recoveries from casualties, lease termination and assignment fees, and adding back amortization of restricted stock and restricted stock unit compensation expense, amortization of costs in connection with its financing activities (including its share of its unconsolidated joint ventures), debt prepayment costs and amortization of lease incentives and mortgage intangible assets. Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO varies 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 an alternative to net income as a reliable measure of our operating performance nor as an alternative to cash flows from operating, investing or financing activities as measures of liquidity. FFO and AFFO do not measure whether cash flow is sufficient to fund all of the Company’s cash needs, including principal amortization, capital improvements and distributions to stockholders.
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.
Forward Looking Statement:
Certain information contained in this press release, together with other statements and information publicly disseminated by
About
One Liberty is a self-administered and self-managed real estate investment trust incorporated in
Contact:
Investor Relations
Phone: (516) 466-3100
www.onelibertyproperties.com
CONDENSED BALANCE SHEETS | |||||||
(Amounts in Thousands) | |||||||
(Unaudited) | |||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Real estate investments, at cost | $ | 864,624 | $ | 864,655 | |||
Accumulated depreciation | (187,346 | ) | (182,705 | ) | |||
Real estate investments, net | 677,278 | 681,950 | |||||
Investment in unconsolidated joint ventures | 2,104 | 2,051 | |||||
Cash and cash equivalents | 27,373 | 26,430 | |||||
Unbilled rent receivable | 16,872 | 16,661 | |||||
Unamortized intangible lease assets, net | 13,650 | 14,681 | |||||
Other assets | 18,392 | 19,833 | |||||
Total assets | $ | 755,669 | $ | 761,606 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | 416,539 | $ | 418,347 | |||
Line of credit | — | — | |||||
Unamortized intangible lease liabilities, net | 9,679 | 10,096 | |||||
Other liabilities | 23,401 | 25,418 | |||||
Total liabilities | 449,619 | 453,861 | |||||
304,834 | 306,703 | ||||||
Non-controlling interests in consolidated joint ventures | 1,216 | 1,042 | |||||
Total equity | 306,050 | 307,745 | |||||
Total liabilities and equity | $ | 755,669 | $ | 761,606 | |||
(Amounts in Thousands, Except Per Share Data) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Revenues: | |||||||
Rental income, net | $ | 22,446 | $ | 22,952 | |||
Lease termination fee | 250 | — | |||||
Total revenues | 22,696 | 22,952 | |||||
Operating expenses: | |||||||
Depreciation and amortization | 6,021 | 6,145 | |||||
General and administrative | 3,923 | 4,039 | |||||
Real estate expenses | 4,470 | 4,124 | |||||
State taxes | 63 | 68 | |||||
Total operating expenses | 14,477 | 14,376 | |||||
Other operating income | |||||||
Gain on sale of real estate, net | 1,784 | 1,534 | |||||
Operating income | 10,003 | 10,110 | |||||
Other income and expenses: | |||||||
Equity in earnings of unconsolidated joint ventures | 53 | 85 | |||||
Other income | 267 | 15 | |||||
Interest: | |||||||
Expense | (4,717 | ) | (4,600 | ) | |||
Amortization and write-off of deferred financing costs | (226 | ) | (202 | ) | |||
Net income | 5,380 | 5,408 | |||||
Net income attributable to non-controlling interests | (225 | ) | (22 | ) | |||
Net income attributable to | $ | 5,155 | $ | 5,386 | |||
Net income per share attributable to common stockholders - diluted | $ | 0.23 | $ | 0.25 | |||
Funds from operations - Note 1 | $ | 9,559 | $ | 10,113 | |||
Funds from operations per common share - diluted - Note 2 | $ | 0.45 | $ | 0.47 | |||
Adjusted funds from operations - Note 1 | $ | 10,210 | $ | 10,803 | |||
Adjusted funds from operations per common share - diluted - Note 2 | $ | 0.48 | $ | 0.50 | |||
Weighted average number of common shares outstanding: | |||||||
Basic | 20,509 | 20,514 | |||||
Diluted | 20,579 | 20,579 | |||||
(Amounts in Thousands, Except Per Share Data) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
Note 1: | 2024 | 2023 | |||||
NAREIT funds from operations is summarized in the following table: | |||||||
GAAP net income attributable to | $ | 5,155 | $ | 5,386 | |||
Add: depreciation and amortization of properties | 5,832 | 5,969 | |||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | 6 | 130 | |||||
Add: amortization of deferred leasing costs | 189 | 176 | |||||
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures | — | 4 | |||||
Deduct: gain on sale of real estate, net | (1,784 | ) | (1,534 | ) | |||
Adjustments for non-controlling interests | 161 | (18 | ) | ||||
NAREIT funds from operations applicable to common stock | 9,559 | 10,113 | |||||
Deduct: straight-line rent accruals and amortization of lease intangibles | (661 | ) | (893 | ) | |||
Deduct: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures | (1 | ) | (5 | ) | |||
Deduct: lease termination fee income | (250 | ) | — | ||||
Deduct: other income | (27 | ) | — | ||||
Add: amortization of restricted stock and RSU compensation | 1,272 | 1,328 | |||||
Add: amortization and write-off of deferred financing costs | 226 | 202 | |||||
Add: amortization of lease incentives | 30 | 31 | |||||
Add: amortization of mortgage intangible assets | 34 | 23 | |||||
Add: our share of amortization of deferred financing costs of unconsolidated joint venture | — | 4 | |||||
Adjustments for non-controlling interests | 28 | — | |||||
Adjusted funds from operations applicable to common stock | $ | 10,210 | $ | 10,803 | |||
Note 2: | |||||||
NAREIT funds from operations is summarized in the following table: | |||||||
GAAP net income attributable to | $ | 0.23 | $ | 0.25 | |||
Add: depreciation and amortization of properties | 0.28 | 0.27 | |||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | — | 0.01 | |||||
Add: amortization of deferred leasing costs | 0.01 | 0.01 | |||||
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures | — | — | |||||
Deduct: gain on sale of real estate, net | (0.08 | ) | (0.07 | ) | |||
Adjustments for non-controlling interests | 0.01 | — | |||||
NAREIT funds from operations per share of common stock - diluted (a) | 0.45 | 0.47 | |||||
Deduct: straight-line rent accruals and amortization of lease intangibles | (0.03 | ) | (0.04 | ) | |||
Deduct: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures | — | — | |||||
Deduct: lease termination fee income | (0.01 | ) | — | ||||
Deduct: other income | — | — | |||||
Add: amortization of restricted stock and RSU compensation | 0.06 | 0.06 | |||||
Add: amortization and write-off of deferred financing costs | 0.01 | 0.01 | |||||
Add: amortization of lease incentives | — | — | |||||
Add: amortization of mortgage intangible assets | — | — | |||||
Add: our share of amortization of deferred financing costs of unconsolidated joint venture | — | — | |||||
Adjustments for non-controlling interests | — | — | |||||
Adjusted funds from operations per share of common stock - diluted (a) | $ | 0.48 | $ | 0.50 | |||
(a) The weighted average number of diluted common shares used to compute FFO and AFFO applicable to common stock includes unvested restricted shares that are excluded from the computation of diluted EPS. |
Source:
2024 GlobeNewswire, Inc., source