— Rental Income Grew 4.7% Year-over-Year —
— Repurchases
“We are pleased that our efforts to transform our portfolio towards industrial ownership is producing the growth we had anticipated. This is marked by our second consecutive quarter of year-over-year rental income growth of over 4%. We also grew operating cashflow in the third quarter over the same prior year quarter,” stated
Operating Results:
Rental income grew 4.7% to
Total operating expenses in the third quarter of 2023 were
Net income attributable to One Liberty in the third quarter of 2023 was
Funds from Operations, or FFO1, was
Adjusted Funds from Operations, or AFFO, was
__________________________
1 A reconciliation of GAAP amounts to non-GAAP amounts (i.e., FFO and AFFO) is presented with the financial information included in this release.
Balance Sheet:
At
At
Recent Transactions and Events:
During the quarter ended
- OLP acquired a 177,000 square foot industrial property located in
Blythewood, SC , for$13.4 million , including the assumption of$4.3 million mortgage debt with a 4.6% interest rate. - A venture in which OLP has a 50% interest and that owns a shopping center in
Manahawkin, NJ entered into a contract to sell the property for approximately$36.5 million . It is anticipated that the transaction will be completed in 2023, and that the net proceeds to OLP from the sale, ranging from approximately$6.0 million to$8.0 million (after giving effect to the repayment of OLP’s$10.4 million share of mortgage debt), will be used to reduce the indebtedness on OLP’s credit facility. In connection with entering into the contract, the venture recorded an impairment charge of$1.7 million , of which OLP’s 50% share was$850,000 . - OLP sold a restaurant property located in
Greensboro, NC and recognized a gain of$332,000 .
Stock Repurchase Activity
In 2023, the Company repurchased
Non-GAAP Financial Measures:
One Liberty computes FFO in accordance with the “White Paper on Funds from Operations” issued by the
One Liberty computes adjusted funds from operations, or AFFO, by adjusting from FFO for its 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 our financing activities (including our share of our 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 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 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.
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.1liberty.com
CONDENSED BALANCE SHEETS | |||||||
(Amounts in Thousands) | |||||||
(Unaudited) | |||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Real estate investments, at cost | $ | 885,369 | $ | 879,596 | |||
Accumulated depreciation | (184,414 | ) | (173,143 | ) | |||
Real estate investments, net | 700,955 | 706,453 | |||||
Investment in unconsolidated joint ventures | 9,607 | 10,400 | |||||
Cash and cash equivalents | 5,471 | 6,718 | |||||
Unbilled rent receivable | 17,242 | 16,079 | |||||
Unamortized intangible lease assets, net | 16,848 | 19,841 | |||||
Other assets | 17,651 | 23,764 | |||||
Total assets | $ | 767,774 | $ | 783,255 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | 416,727 | $ | 405,162 | |||
Line of credit, net of | 11,906 | 21,068 | |||||
Unamortized intangible lease liabilities, net | 10,443 | 11,125 | |||||
Other liabilities | 25,581 | 28,963 | |||||
Total liabilities | 464,657 | 466,318 | |||||
302,107 | 315,965 | ||||||
Non-controlling interests in consolidated joint ventures | 1,010 | 972 | |||||
Total equity | 303,117 | 316,937 | |||||
Total liabilities and equity | $ | 767,774 | $ | 783,255 | |||
(Amounts in Thousands, Except Per Share Data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues: | |||||||||||||||
Rental income, net | $ | 22,546 | $ | 21,473 | $ | 67,905 | $ | 64,476 | |||||||
Lease termination fee | — | — | — | 25 | |||||||||||
Total revenues | 22,546 | 21,473 | 67,905 | 64,501 | |||||||||||
Operating expenses: | |||||||||||||||
Depreciation and amortization | 6,310 | 5,970 | 18,569 | 17,718 | |||||||||||
General and administrative | 3,864 | 3,769 | 12,068 | 11,534 | |||||||||||
Real estate expenses | 4,061 | 3,970 | 12,139 | 11,206 | |||||||||||
State taxes | 76 | 60 | 232 | 211 | |||||||||||
Total operating expenses | 14,311 | 13,769 | 43,008 | 40,669 | |||||||||||
Other operating income | |||||||||||||||
Gain on sale of real estate, net | 332 | 4,063 | 5,046 | 16,762 | |||||||||||
Operating income | 8,567 | 11,767 | 29,943 | 40,594 | |||||||||||
Other income and expenses: | |||||||||||||||
Equity in (loss) earnings of unconsolidated joint ventures | (905 | ) | 82 | (761 | ) | 310 | |||||||||
Income on settlement of litigation | — | — | — | 5,388 | |||||||||||
Other income | 87 | 17 | 131 | 997 | |||||||||||
Interest: | |||||||||||||||
Expense | (4,768 | ) | (4,367 | ) | (13,978 | ) | (13,026 | ) | |||||||
Amortization and write-off of deferred financing costs | (212 | ) | (278 | ) | (619 | ) | (917 | ) | |||||||
Net income | 2,769 | 7,221 | 14,716 | 33,346 | |||||||||||
Net income attributable to non-controlling interests | (22 | ) | (17 | ) | (64 | ) | (52 | ) | |||||||
Net income attributable to | $ | 2,747 | $ | 7,204 | $ | 14,652 | $ | 33,294 | |||||||
Net income per share attributable to common stockholders - diluted | $ | 0.12 | $ | 0.34 | $ | 0.66 | $ | 1.57 | |||||||
Funds from operations - Note 1 | $ | 9,691 | $ | 9,229 | $ | 29,375 | $ | 34,606 | |||||||
Funds from operations per common share - diluted - Note 2 | $ | 0.45 | $ | 0.44 | $ | 1.37 | $ | 1.63 | |||||||
Adjusted funds from operations - Note 1 | $ | 10,460 | $ | 10,101 | $ | 32,013 | $ | 31,159 | |||||||
Adjusted funds from operations per common share - diluted - Note 2 | $ | 0.49 | $ | 0.48 | $ | 1.49 | $ | 1.47 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 20,567 | 20,340 | 20,552 | 20,361 | |||||||||||
Diluted | 20,596 | 20,416 | 20,598 | 20,472 | |||||||||||
(Amounts in Thousands, Except Per Share Data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
Note 1: | 2023 | 2022 | 2023 | 2022 | |||||||||||
NAREIT funds from operations is summarized in the following table: | |||||||||||||||
GAAP net income attributable to | $ | 2,747 | $ | 7,204 | $ | 14,652 | $ | 33,294 | |||||||
Add: depreciation and amortization of properties | 6,134 | 5,800 | 18,028 | 17,297 | |||||||||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | 130 | 130 | 389 | 389 | |||||||||||
Add: amortization of deferred leasing costs | 176 | 170 | 541 | 421 | |||||||||||
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures | 5 | 5 | 14 | 16 | |||||||||||
Add: our share of impairment loss of unconsolidated joint venture property | 850 | — | 850 | — | |||||||||||
Deduct: gain on sale of real estate, net | (332 | ) | (4,063 | ) | (5,046 | ) | (16,762 | ) | |||||||
Adjustments for non-controlling interests | (19 | ) | (17 | ) | (53 | ) | (49 | ) | |||||||
NAREIT funds from operations applicable to common stock | 9,691 | 9,229 | 29,375 | 34,606 | |||||||||||
Deduct: straight-line rent accruals and amortization of lease intangibles | (619 | ) | (712 | ) | (2,139 | ) | (2,196 | ) | |||||||
Deduct: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures | (5 | ) | (6 | ) | (15 | ) | (22 | ) | |||||||
Deduct: other income and income on settlement of litigation | (75 | ) | — | (75 | ) | (5,388 | ) | ||||||||
Deduct: additional rent from ground lease tenant | — | — | (16 | ) | — | ||||||||||
Deduct: income on insurance recovery from casualty loss | — | — | — | (918 | ) | ||||||||||
Deduct: lease termination fee income | — | — | — | (25 | ) | ||||||||||
Deduct: our share of unconsolidated joint venture lease termination fee income | (21 | ) | — | (21 | ) | (25 | ) | ||||||||
Add: amortization of restricted stock and RSU compensation | 1,211 | 1,306 | 4,103 | 4,190 | |||||||||||
Add: amortization and write-off of deferred financing costs | 212 | 278 | 619 | 917 | |||||||||||
Add: amortization of lease incentives | 30 | — | 91 | — | |||||||||||
Add: amortization of mortgage intangible assets | 33 | — | 79 | — | |||||||||||
Add: our share of amortization of deferred financing costs of unconsolidated joint venture | 4 | 4 | 13 | 12 | |||||||||||
Adjustments for non-controlling interests | (1 | ) | 2 | (1 | ) | 8 | |||||||||
Adjusted funds from operations applicable to common stock | $ | 10,460 | $ | 10,101 | $ | 32,013 | $ | 31,159 | |||||||
Note 2: | |||||||||||||||
NAREIT funds from operations is summarized in the following table: | |||||||||||||||
GAAP net income attributable to | $ | 0.12 | $ | 0.34 | $ | 0.66 | $ | 1.57 | |||||||
Add: depreciation and amortization of properties | 0.29 | 0.27 | 0.86 | 0.81 | |||||||||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||
Add: amortization of deferred leasing costs | 0.01 | 0.01 | 0.03 | 0.02 | |||||||||||
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures | — | — | — | — | |||||||||||
Add: our share of impairment loss of unconsolidated joint venture property | 0.04 | — | 0.04 | — | |||||||||||
Deduct: gain on sale of real estate, net | (0.02 | ) | (0.19 | ) | (0.24 | ) | (0.79 | ) | |||||||
Adjustments for non-controlling interests | — | — | — | — | |||||||||||
NAREIT funds from operations per share of common stock - diluted (a) | 0.45 | 0.44 | 1.37 | 1.63 | |||||||||||
Deduct: straight-line rent accruals and amortization of lease intangibles | (0.03 | ) | (0.03 | ) | (0.10 | ) | (0.11 | ) | |||||||
Deduct: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures | — | — | — | — | |||||||||||
Deduct: other income and income on settlement of litigation | — | — | — | (0.25 | ) | ||||||||||
Deduct: additional rent from ground lease tenant | — | — | — | — | |||||||||||
Deduct: income on insurance recovery from casualty loss | — | — | — | (0.04 | ) | ||||||||||
Deduct: lease termination fee income | — | — | — | — | |||||||||||
Deduct: our share of unconsolidated joint venture lease termination fee income | — | — | — | — | |||||||||||
Add: amortization of restricted stock and RSU compensation | 0.06 | 0.06 | 0.19 | 0.20 | |||||||||||
Add: amortization and write-off of deferred financing costs | 0.01 | 0.01 | 0.03 | 0.04 | |||||||||||
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) | $ | 0.49 | $ | 0.48 | $ | 1.49 | $ | 1.47 | |||||||
(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:
2023 GlobeNewswire, Inc., source