ONE LIBERTY PROPERTIES, INC. FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024
One Liberty Properties, Inc. (OLP) reported its financial results for the fiscal year ended December 31, 2024. The company’s total revenue increased by 4.5% to $143.6 million, driven by growth in its commercial and residential properties. Net income rose to $34.1 million, or $1.57 per diluted share, compared to $29.4 million, or $1.34 per diluted share, in the prior year. The company’s funds from operations (FFO) increased by 5.3% to $63.8 million, or $2.93 per diluted share. As of December 31, 2024, OLP’s total assets were $1.4 billion, with a debt-to-equity ratio of 0.63. The company’s cash and cash equivalents stood at $143.6 million, and its net debt was $864.4 million.
Overview
We are a self-administered and self-managed real estate investment trust (REIT) that focuses on acquiring, owning and managing a geographically diversified portfolio of industrial and retail properties. Most of our properties are subject to long-term “net leases” where the tenant is responsible for paying real estate taxes, insurance, and maintenance.
As of December 31, 2024, we own 102 properties across 31 states. We face significant economic uncertainty due to volatile interest rates, inflation, and potential recession. This uncertainty may make us cautious about pursuing new acquisitions in 2025, which could adversely affect our ability to grow revenue, net income, and cash flow.
In addition to the economic challenges, we also face risks around leasing our properties, collecting rent from tenants, renewing or re-letting expiring leases, and acquiring or disposing of properties on acceptable terms. If we are unable to successfully manage these challenges, it could impact our ability to sustain our current dividend payments.
To manage risk, we diversify our portfolio by location, tenant, lease expiration, mortgage maturity, and lender. As of December 31, 2024:
- 72.4% of our 2025 rental income is from industrial properties, 21.1% is from retail
- 11.7% of our 2025 rental income is from properties in South Carolina
- 5.2% of our 2025 rental income is from one tenant (FedEx)
- 19.8% of our 2025 rental income is from leases expiring in 2027
- Substantially all of our mortgage debt has fixed interest rates
We monitor tenant financial health and expiring leases closely to address challenges proactively. When acquiring properties, we balance lease terms, tenant credit, and real estate fundamentals to manage risk.
One property, The Vue in Beachwood, Ohio, has faced occupancy and financial challenges since 2018. We have provided $3.5 million in funding since 2022 to cover operating shortfalls and capital expenditures, and expect to provide additional funding in 2025. This property continues to negatively impact our cash flow.
