-- Rental income for the three months ended March 31, 2010 was $10,103,000
as compared to rental income of $9,841,000 for the three months ended
March 31, 2009.
-- Net income for the three months ended March 31, 2010 was $2,421,000,
$.21 per common share - diluted, as compared to net income for the
three months ended March 31, 2009 of $2,653,000, or $.26 per common
share - diluted.
-- Funds from operations (FFO) for the three months ended March 31, 2010
was $4,636,000, $.41 per common share - diluted, as compared to
$5,110,000, $.50 per common share - diluted, for the three months ended
March 31, 2009. FFO calculated in accordance with the NAREIT
definition, adds back to net income depreciation of properties, One
Liberty's share of depreciation of its unconsolidated joint ventures
and amortization of capitalized leasing expenses and deducts One
Liberty's share of gain on the disposition of real estate, if any.
The table which accompanies this release reconciles FFO information
with the GAAP financial information.
-- Net income per share and FFO per share decreased quarter over quarter
for three primary reasons: (i) in the 2010 quarter the weighted average
number of shares outstanding increased to 11,453,000 from 10,276,000
due to the Company's decision to pay dividends applicable to 2009 in a
combination of cash and stock to conserve cash, (ii) the 2009 quarter
includes income from discontinued operations of $315,000
($.03 per share) while there was no income from discontinued operations
in the 2010 quarter, and (iii) the Company incurred a $346,000 ($.03
per share) property acquisition expense in the 2010 quarter with no
comparable expense in the 2009 quarter.
Commenting on the results of operations, Patrick J. Callan, Jr., President
and Chief Executive Officer of the Company, noted that the results of
operations for the most recent quarter reflect a modest gain in rental
income and, considering the challenging economic environment, particularly
for commercial real estate, these were positive results. He further
commented that, "as we entered 2009 we decided, in view of economic
conditions and a poor risk/reward scenario in the market place, to be
conservative in our acquisition policy. Accordingly, although we examined
a number of possible transactions, we did not find any at a price we would
be willing to pay and we did not make any property acquisitions in 2009."
To date, in 2010, Mr. Callan continued, "we have seen significant
improvement in the number and quality of acquisition opportunities. We
took advantage of this improved atmosphere by acquiring, on February 24,
2010, for a consideration of $23.5 million, a 194,000 square foot
neighborhood shopping center located on 33 acres in a suburb of
Philadelphia, Pennsylvania.
In addition, Mr. Callan provided information on pending acquisitions,
noting that "we have a $6,100,000 sale and lease back acquisition for five
single tenant quick service restaurants under contract, two other potential
acquisitions in the letter of intent stage, a retail location subject to a
long-term lease with a national retailer for a consideration of
approximately $9,000,000 and another retail location subject to a long-term
lease with another national retailer for approximately $20,000,000, and
have more acceptable opportunities at this time than we had at this time
last year." Consummation of the transaction under contract is subject to
customary closing conditions, including completion of our due diligence,
and consummation of the two transactions in the letter of intent stage are
subject to final agreement, and due diligence. Accordingly, we can make no
assurances that these transactions will be completed.
The Company also provided guidance for 2010. Based upon the shares of
common stock outstanding on March 31, 2010 (11,453,162) and without giving
effect to any additional acquisitions during the balance of the year, the
Company expects FFO per share to be in the range of $1.55 to $1.64 for year
ended December 31, 2010. There can be no assurances that the actual FFO
for the 2010 year will not differ for the range provided.
FFO should not be deemed to be a measure of liquidity. FFO does not
represent cash generated from operations as defined by GAAP and is not
indicative of cash available to fund all cash needs, including
distributions. It should not be considered as an alternative to net income
for the purpose of evaluating the Company's performance or to cash flows as
a measure of liquidity. FFO does 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.
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, including the guidance
relating to FFO provided, 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. These statements involve assumptions and forecasts that are based
upon our assessments of certain trends, risks and uncertainties, which
assumptions appear to be reasonable to us at the time they are made. These
amounts may fluctuate as a result of unexpected lease defaults by our
tenants or fluctuations in the economy that affect our tenants. 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 for the year ended December 31, 2009. 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 and our ability to achieve the final objectives discussed
above.
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. (NYSE : OLP )
(Amounts in Thousands, Except Per Share Data)
Three Months Ended
March 31,
2010 2009
-------- --------
Revenues:
Rental income - Note 1 $ 10,103 $ 9,841
-------- --------
Operating expenses:
Depreciation and amortization 2,135 2,123
General and administrative 1,653 1,649
Property acquisition costs 346 -
Real estate expenses 182 159
Leasehold rent 77 77
-------- --------
Total operating expenses 4,393 4,008
-------- --------
Operating income 5,710 5,833
Other income and expenses:
Equity in earnings of unconsolidated joint ventures 124 160
Interest and other income 51 28
Interest:
Expense (3,322) (3,427)
Amortization of deferred financing costs (142) (256)
Income from continuing operations 2,421 2,338
-------- --------
Discontinued operations:
Income from operations - Note 2 - 544
Impairment charge on property sold at a loss - (229)
-------- --------
Income from discontinued operations - 315
-------- --------
Net income $ 2,421 $ 2,653
======== ========
Net income per common share-diluted:
Income from continuing operations $ 0.21 $ 0.23
Income from discontinued operations - 0.03
-------- --------
Net income per common share $ 0.21 $ 0.26
======== ========
Funds from operations - Note 3 $ 4,636 $ 5,110
======== ========
Funds from operations per common share-diluted - Note 4 $ 0.41 $ 0.50
======== ========
Weighted average number of common shares outstanding:
Basic 11,395 10,165
======== ========
Diluted 11,453 10,276
======== ========
Note 1 - Rental income includes straight line rent accruals and
amortization of lease intangibles of $435 and $255 for the three
months ended March 31, 2010 and 2009, respectively.
Note 2 - Income from discontinued operations includes straight line rent
accruals and amortization of lease intangibles of $0 and $(42)
for the three months ended March 31, 2010 and 2009, respectively.
Note 3 - Funds from operations is summarized in the
following table:
Net income $ 2,421 $ 2,653
Add: depreciation of properties 2,126 2,359
Add: our share of depreciation in unconsolidated joint
ventures 80 81
Add: amortization of capitalized leasing expenses 9 17
-------- --------
Funds from operations (a) $ 4,636 $ 5,110
======== ========
Note 4 - Funds from operations per common share is
summarized in the following table:
Net income $ 0.21 $ 0.26
Add: depreciation of properties 0.19 0.23
Add: our share of depreciation in unconsolidated joint
ventures 0.01 0.01
Add: amortization of capitalized leasing expenses - -
-------- --------
Funds from operations per common share-diluted (a) $ 0.41 $ 0.50
======== ========
(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.
ONE LIBERTY PROPERTIES, INC.
CONDENSED BALANCE SHEETS
(Amounts in Thousands)
March 31, December 31,
2010 2009
------------ ------------
ASSETS
Real estate investments, net $ 364,589 $ 345,693
Investment in unconsolidated joint ventures 5,864 5,839
Cash and cash equivalents 25,341 28,036
Available for sale securities (including
treasury bills of $2,000 and $3,999) 4,779 6,762
Unbilled rent receivable 11,137 10,706
Unamortized intangible lease assets 9,580 7,157
Other assets 5,873 4,493
------------ ------------
Total assets $ 427,163 $ 408,686
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable $ 207,182 $ 190,518
Line of credit 27,000 27,000
Unamortized intangible lease liabilities 4,724 4,827
Other liabilities 6,776 6,213
------------ ------------
Total liabilities 245,682 228,558
Stockholders' equity 181,481 180,128
------------ ------------
Total liabilities and stockholders' equity $ 427,163 $ 408,686
============ ============
Contact Information: Contact: Simeon Brinberg (516) 466-3100