-- Rental income increased by $1,077,000, or 11.4%, quarter over quarter,
due primarily to additional rental income generated from ten properties
acquired in the second half of 2008.
-- In the three months ended June 30, 2009, the Company benefitted from a
$1,905,000 lease termination fee, offset by the write off of straight line
rent and intangible lease assets totaling $121,000 applicable to the lease
which was terminated. There was no comparable revenue item in the three
months ended June 30, 2008.
-- Rental income for the six months ended June 30, 2009 increased by
$2,361,000, or 12.5%, as compared to rental income for the six months ended
June 30, 2008. The increase in rental income is due to primarily the
acquisition of twelve properties in 2008.
-- In the current six month period, the Company also benefitted by the
net amount of $1,784,000 from a lease termination fee, offset by the write
off of straight line rent and intangible lease assets applicable to the
terminated lease.
-- Operating expenses increased by $228,000, or 5.8%, for the three
months ended June 30, 2009 and by $688,000, or 9.1%, for the six months
ended June 30, 2009. Operating expenses increased in both current periods
primarily because of an increase in depreciation and amortization resulting
from property acquisitions in 2008, offset by "catch-up" depreciation
recorded in the three and six months ended June 30, 2008 on a property
which had been classified as held for sale in prior periods. Increases in
real estate operating expenses in the current three and six month periods
relate to a vacant property and to real estate taxes and repair and
maintenance items at other properties.
-- Both the quarter and six months ended June 30, 2008 include a
$1,830,000 gain on sale of real property and the six months ended June 30,
2008 includes a $297,000 gain on the sale of real property by a
consolidated joint venture. There were no comparable transactions in the
2009 periods.
-- Interest expense increased by $96,000 quarter over quarter and
$276,000 six months over six months, due to borrowings made in September
2008 under the Company's credit line for property acquisitions and the
placement of mortgages on four properties, offset by income generated from
an interest rate swap transaction. The increase was also offset by the
payoff of a loan in full in 2008, and from regular amortization of mortgage
debt.
-- Discontinued operations reflects a loss of $315,000 for the three
months ending June 30, 2009 and a loss of $765,000 for the three months
ending June 30, 2008, and a loss of $369,000 for the six months ending June
30, 2009 and a loss of $637,000 for the six months ending June 30, 2008.
The loss in the three and six months ending June 30, 2008 includes an
impairment charge of $752,000 applicable to a property which was sold in
March 2009, offset by $87,000 and $172,000, respectively, of income derived
from five Circuit City locations. The Circuit City locations operated at a
loss in the 2009 three and six month periods. The six months ended June
30, 2009 includes a lease termination fee of $400,000 and a loss on sale of
$229,000 applicable to the same property.
Mr. Callan noted that the national economic recession has had an adverse
affect on commercial retail properties. In particular, he noted that,
subsequent to the end of the quarter the Company deeded in lieu of
foreclosure, the five properties formerly leased to Circuit City (which had
previously filed for bankruptcy and rejected all of the leases). Mr.
Callan also noted that except for two single tenanted retail properties at
which the tenants are paying rent at less than the contractual lease rate,
the Company's tenants have been meeting their monetary obligations under
their leases. However, he commented that the Company is still concerned
about the overall economic environment and the affects it has had and may
have on the Company's tenants. As a result, the Company continues to
carefully monitor its portfolio.
One Liberty Properties is a real estate investment trust and invests
primarily in improved commercial real estate under long term net lease.
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 Form 10-K and Amendment
No. 1 thereto (Form 10-K/A) for the year ended December 31, 2008. 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.
ONE LIBERTY PROPERTIES, INC. 60 Cutter Mill Road Suite 303 Great Neck, New York 11021 Telephone (516) 466-3100 Telecopier (516) 466-3132 www.onelibertyproperties.com ONE LIBERTY PROPERTIES, INC. ((a) We believe that FFO is a useful and a standard supplemental measure of the operating performance for equity REITs and is used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO when reporting their operating results. FFO is intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assures 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, we believe that FFO provides a performance measure that when compared year over year, should reflect the impact on 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. We also consider FFO to be useful to us in evaluating potential property acquisitions. FFO does not represent net income or cash flows from operations as defined by GAAP. You should not consider FFO to be an alternative to net income as a reliable measure of our operating performance; nor should you consider FFO to be an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity. FFO does not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization, capital improvements and distributions to stockholders. FFO does not represent cash flows from operating, investing or financing activities as defined by GAAP.NYSE :OLP ) (Amounts in Thousands, Except Per Share Data) Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 -------- -------- -------- -------- Revenues: Rental income - Note 1 $ 10,540 $ 9,463 $ 21,175 $ 18,814 Lease termination fee 1,784 - 1,784 - -------- -------- -------- -------- Total revenues 12,324 9,463 22,959 18,814 -------- -------- -------- -------- Operating expenses: Depreciation and amortization 2,287 2,177 4,538 4,130 General and administrative 1,602 1,590 3,252 3,198 Real estate expenses 164 58 340 114 Leasehold rent 77 77 154 154 -------- -------- -------- -------- Total operating expenses 4,130 3,902 8,284 7,596 -------- -------- -------- -------- Operating income 8,194 5,561 14,675 11,218 Other income and expenses: Equity in earnings of unconsolidated joint ventures 149 152 308 297 Gain on disposition of real estate of unconsolidated joint venture - - - 297 Interest and other income 178 121 207 331 Interest: Expense (3,599) (3,503) (7,286) (7,010) Amortization of deferred financing costs (164) (150) (439) (301) Gain on sale of excess unimproved land - 1,830 1,830 -------- -------- -------- -------- Income from continuing operations 4,758 4,011 7,465 6,662 -------- -------- -------- -------- Discontinued operations: (Loss) income from operations (315) (13) (140) 115 Impairment charge on property sold at a loss - (752) (229) (752) -------- -------- -------- -------- Loss from discontinued operations (315) (765) (369) (637) -------- -------- -------- -------- Net income $ 4,443 $ 3,246 $ 7,096 $ 6,025 ======== ======== ======== ======== Net income per common share-basic and diluted: Income from continuing operations $ 0.43 $ 0.36 $ 0.67 $ 0.60 Loss from discontinued operations (0.03) (0.07) (0.03) (0.06) -------- -------- -------- -------- Net income per common share $ 0.40 $ 0.29 $ 0.64 $ 0.54 ======== ======== ======== ======== Funds from operations - Note 2 $ 6,875 $ 5,616 $ 11,985 $ 10,245 ======== ======== ======== ======== Funds from operations per common share-diluted - Note 3 $ 0.62 $ 0.50 $ 1.09 $ 0.92 ======== ======== ======== ======== Weighted average number of common shares outstanding: Basic and Diluted 11,015 11,124 11,042 11,152 ======== ======== ======== ======== Note 1 - Rental income includes straight line rent accruals and amortization of lease intangibles of $366 and $153 for the six and three months ended June 30, 2009 and $581 and $193 for the six and three months ended June 30, 2008, respectively. Note 2 - Funds from operations is summarized in the following table: Net income $ 4,443 $ 3,246 $ 7,096 $ 6,025 Add: depreciation of properties 2,334 2,275 4,692 4,326 Add: our share of depreciation in unconsolidated joint ventures 81 80 162 160 Add: amortization of capitalized leasing expenses 17 15 35 31 Deduct: our share of net gain on sale in unconsolidated joint ventures - - - (297) -------- -------- -------- -------- Funds from operations (a) $ 6,875 $ 5,616 $ 11,985 $ 10,245 ======== ======== ======== ======== Note 3 - Funds from operations per common share is summarized in the following table: Net income $ 0.40 $ 0.29 $ 0.64 $ 0.54 Add: depreciation of properties 0.21 0.20 0.43 0.39 Add: our share of depreciation in unconsolidated joint ventures 0.01 0.01 0.02 0.01 Add: amortization of capitalized leasing expenses - - - - Deduct: our share of net gain on sale in unconsolidated joint ventures - - - (0.02) -------- -------- -------- -------- Funds from operations per common share (a) $ 0.62 $ 0.50 $ 1.09 $ 0.92 ======== ======== ======== ========
ONE LIBERTY PROPERTIES, INC.
CONDENSED BALANCE SHEETS
(Amounts in Thousands)
June 30, December 31,
2009 2008
------------- -------------
ASSETS
Real estate investments, net $ 373,468 $ 379,289
Investment in unconsolidated joint
ventures 5,869 5,857
Cash and cash equivalents 18,219 10,947
Unbilled rent receivable 11,319 10,916
Properties held for sale 8,075 8,167
Other assets 15,374 13,929
------------- -------------
Total assets $ 432,324 $ 429,105
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable $ 216,436 $ 216,808
Mortgages payable-properties held for
sale 8,706 8,706
Line of credit 27,000 27,000
Other liabilities 9,735 12,616
------------- -------------
Total liabilities 261,877 265,130
Stockholders' equity 170,447 163,975
------------- -------------
Total liabilities and stockholders'
equity $ 432,324 $ 429,105
============= =============
Contact Information: Contact: Simeon Brinberg (516) 466-3100