One Liberty Properties Reports Fourth Quarter and Full Year 2020 Results
One Liberty Properties reported its 2020 financial results, highlighting a decline in rental income to $81.9 million from $83.8 million in 2019. The fourth-quarter rental income was $18.7 million, down from $21.5 million, attributed to the pandemic's economic impacts. Industrial properties accounted for over 50% of rental income. Net income for Q4 was $3.6 million, decreased from $4.8 million, while AFFO was $9.1 million, down from $10.5 million. The company declared a dividend of $0.45 per share, marking its 113th consecutive quarterly dividend.
- Net income for 2020 increased to $27.4 million from $18.0 million in 2019.
- Gain on sale of real estate reached $17.3 million for 2020, up from $4.3 million in 2019.
- Total assets as of December 31, 2020 were $776.1 million, indicating financial stability.
- Rental income in 2020 decreased by $1.9 million compared to 2019.
- Fourth quarter AFFO dropped to $9.1 million from $10.5 million, reflecting ongoing challenges.
- Operating expenses increased to $51.0 million in 2020 from $48.9 million in 2019 due to higher administrative costs.
~Industrial Properties Contributed More than
GREAT NECK, N.Y., March 12, 2021 (GLOBE NEWSWIRE) -- One Liberty Properties, Inc. (NYSE: OLP), a real estate investment trust focused on net leased properties, today announced operating results for the quarter and year ended December 31, 2020.
"We effectively worked to overcome many of the challenges 2020 presented, as we positioned the Company to secure consistent cash flow from our properties,” stated Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty. “While we understand that 2021 will present challenges and obstacles, we are pleased to see signs of an economic recovery slowly emerging and have re-focused on pursuing accretive acquisition opportunities. One Liberty’s ability to persevere and its talent for turning challenges into opportunities are at the core of our culture and approach. We remain resolute in our commitment to create value for our stockholders as we move ahead."
Fourth Quarter Operating Results:
Revenues and Operating Expenses
Rental income for the three months ended December 31, 2020 was
Income from the early termination of leases in the current quarter was
Total operating expense in the fourth quarter of 2020 was
Gain on sale of real estate
Gain on sale of real estate, net, in the current quarter was
Other income and expenses
Other net expenses were
Net income, AFFO and FFO1
Net income attributable to One Liberty in the fourth quarter of 2020 was
Adjusted Funds from Operations, or AFFO, was
Funds from Operations, or FFO, was
Diluted per share net income, FFO and AFFO were impacted negatively in the quarter ended December 31, 2020 by an average increase of approximately 637,000 in the weighted average number of shares of common stock outstanding as a result of issuances of stock in lieu of a portion of cash dividends, dividend reinvestment and the equity incentive programs. A reconciliation of GAAP amounts to non-GAAP amounts is presented with the financial information included in this release.
Full Year 2020 Operating Results:
Revenues and Operating Expenses
Rental income in 2020 was
Income from the early termination of leases in 2020 was
Total operating expense in 2020 was
1 A description and reconciliation of non-GAAP financial measures (i.e., AFFO and FFO) to GAAP financial measures is presented later in this release.
Gain on sale of real estate
Gain on sale of real estate, net, in 2020 was
Other income and expenses
Other net expenses in 2020 improved by
Net income, AFFO and FFO
Net income attributable to One Liberty was
AFFO for 2020 was
FFO for 2020 was
Diluted per share net income, FFO and AFFO were impacted negatively in 2020 by an average increase of approximately 501,000 in the weighted average number of shares of common stock as a result of issuances of stock in lieu of a portion of cash dividends and the dividend reinvestment and equity incentive programs.
Acquisitions and Dispositions in 2020:
In February 2020, the Company acquired two industrial properties for
The Company sold four properties for gross proceeds of
Balance Sheet:
At December 31, 2020, the Company had
At March 4, 2021, One Liberty’s available liquidity was
Dividends:
On March 12, 2021, the Board of Directors declared a quarterly dividend on the Company’s common stock of
Non-GAAP Financial Measures:
One Liberty computes FFO in accordance with the “White Paper on Funds from Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT’s related guidance. FFO is defined in the White Paper as net income (calculated in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities where the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. In computing FFO, OLP does not add back to net income the amortization of costs in connection with its financing activities or depreciation of non-real estate assets.
One Liberty computes AFFO by adjusting from FFO for straight-line rent accruals and amortization of lease intangibles, deducting lease termination 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), income on insurance recoveries from casualties and debt prepayment costs. 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 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 Annual Report on Form 10-K for the year ended December 31, 2020 and in particular the sections entitled “Cautionary Note Regarding Forward Looking Statements”, “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” included therein. 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.
About One Liberty Properties:
One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diversified portfolio consisting primarily of industrial, retail, restaurant, health and fitness, and theater properties. Many of these properties are subject to long term net leases under which the tenant is typically responsible for the property’s real estate taxes, insurance and ordinary maintenance and repairs.
Contact:
One Liberty Properties
Investor Relations
Phone: (516) 466-3100
www.onelibertyproperties.com
ONE LIBERTY PROPERTIES, INC. | ||||||||
CONDENSED BALANCE SHEETS | ||||||||
(Amounts in Thousands) | ||||||||
December 31, | ||||||||
2020 | 2019 | |||||||
ASSETS | ||||||||
Real estate investments, at cost | $ | 839,058 | $ | 835,837 | ||||
Accumulated depreciation | (147,136 | ) | (135,302 | ) | ||||
Real estate investments, net | 691,922 | 700,535 | ||||||
Investment in unconsolidated joint ventures | 10,702 | 11,061 | ||||||
Cash and cash equivalents | 12,705 | 11,034 | ||||||
Unbilled rent receivable | 15,438 | 15,037 | ||||||
Unamortized intangible lease assets, net | 24,703 | 26,068 | ||||||
Other assets | 20,667 | 10,894 | ||||||
Total assets | $ | 776,137 | $ | 774,629 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Mortgages payable, net of | $ | 429,704 | $ | 435,840 | ||||
Line of credit-outstanding, net of | 12,525 | 10,831 | ||||||
Unamortized intangible lease liabilities, net | 11,189 | 12,421 | ||||||
Other liabilities | 30,759 | 23,553 | ||||||
Total liabilities | 484,177 | 482,645 | ||||||
Total One Liberty Properties, Inc. stockholders' equity | 290,767 | 290,763 | ||||||
Non-controlling interests in consolidated joint ventures | 1,193 | 1,221 | ||||||
Total equity | 291,960 | 291,984 | ||||||
Total liabilities and equity | $ | 776,137 | $ | 774,629 | ||||
ONE LIBERTY PROPERTIES, INC. (NYSE: OLP) | ||||||||||||||||||
(Amounts in Thousands, Except Per Share Data) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||
Revenues: | ||||||||||||||||||
Rental income, net | $ | 18,717 | $ | 21,498 | $ | 81,888 | $ | 83,786 | ||||||||||
Lease termination fees | 15 | 950 | 15 | 950 | ||||||||||||||
Total revenues | 18,732 | 22,448 | 81,903 | 84,736 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Depreciation and amortization | 5,763 | 5,673 | 22,964 | 22,026 | ||||||||||||||
General and administrative | 3,427 | 3,123 | 13,671 | 12,442 | ||||||||||||||
Real estate expenses | 3,536 | 3,530 | 13,634 | 14,074 | ||||||||||||||
State taxes | 83 | 93 | 310 | 348 | ||||||||||||||
Impairment due to casualty loss | - | - | 430 | - | ||||||||||||||
Total operating expenses | 12,809 | 12,419 | 51,009 | 48,890 | ||||||||||||||
Other operating income | ||||||||||||||||||
Gain on sale of real estate, net | 2,712 | 684 | 17,280 | 4,327 | ||||||||||||||
Operating income | 8,635 | 10,713 | 48,174 | 40,173 | ||||||||||||||
Other income and expenses: | ||||||||||||||||||
Equity in (loss) earnings of unconsolidated joint ventures | (148 | ) | 48 | 38 | 16 | |||||||||||||
Equity in earnings from sale of unconsolidated joint venture properties | - | - | 121 | - | ||||||||||||||
Prepayment costs on debt | - | (625 | ) | (1,123 | ) | (827 | ) | |||||||||||
Other income (loss) | 34 | (10 | ) | 496 | 8 | |||||||||||||
Interest: | ||||||||||||||||||
Expense | (4,734 | ) | (4,992 | ) | (19,317 | ) | (19,831 | ) | ||||||||||
Amortization and write-off of deferred financing costs | (216 | ) | (256 | ) | (976 | ) | (995 | ) | ||||||||||
Net income | 3,571 | 4,878 | 27,413 | 18,544 | ||||||||||||||
Net loss (income) attributable to non-controlling interests | 1 | (68 | ) | (6 | ) | (533 | ) | |||||||||||
Net income attributable to One Liberty Properties, Inc. | $ | 3,572 | $ | 4,810 | $ | 27,407 | $ | 18,011 | ||||||||||
Net income per share attributable to common stockholders-diluted | $ | 0.16 | $ | 0.23 | $ | 1.33 | $ | 0.88 | ||||||||||
Funds from operations - Note 1 | $ | 6,741 | $ | 9,910 | $ | 33,876 | $ | 36,579 | ||||||||||
Funds from operations per common share-diluted - Note 2 | $ | 0.33 | $ | 0.50 | $ | 1.66 | $ | 1.84 | ||||||||||
Adjusted funds from operations - Note 1 | $ | 9,079 | $ | 10,539 | $ | 38,755 | $ | 39,377 | ||||||||||
Adjusted funds from operations per common share-diluted - Note 2 | $ | 0.44 | $ | 0.53 | $ | 1.90 | $ | 1.98 | ||||||||||
Weighted average number of common shares outstanding: | ||||||||||||||||||
Basic | 19,835 | 19,245 | 19,571 | 19,090 | ||||||||||||||
Diluted | 19,871 | 19,266 | 19,599 | 19,119 | ||||||||||||||
ONE LIBERTY PROPERTIES, INC. (NYSE: OLP) | |||||||||||||||||
(Amounts in Thousands, Except Per Share Data) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
Note 1: | 2020 | 2019 | 2020 | 2019 | |||||||||||||
NAREIT funds from operations is summarized in the following table: | |||||||||||||||||
GAAP net income attributable to One Liberty Properties, Inc. | $ | 3,572 | $ | 4,810 | $ | 27,407 | $ | 18,011 | |||||||||
Add: depreciation and amortization of properties | 5,663 | 5,541 | 22,558 | 21,574 | |||||||||||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | 135 | 131 | 544 | 527 | |||||||||||||
Add: impairment due to casualty loss | - | - | 430 | - | |||||||||||||
Add: amortization of deferred leasing costs | 100 | 132 | 406 | 452 | |||||||||||||
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures | 6 | 4 | 20 | 18 | |||||||||||||
Deduct: gain on sale of real estate, net | (2,712 | ) | (684 | ) | (17,280 | ) | (4,327 | ) | |||||||||
Deduct: equity in earnings from sale of unconsolidated joint venture property | - | - | (121 | ) | - | ||||||||||||
Adjustments for non-controlling interests | (23 | ) | (24 | ) | (88 | ) | 324 | ||||||||||
NAREIT funds from operations applicable to common stock | 6,741 | 9,910 | 33,876 | 36,579 | |||||||||||||
Add (Deduct): straight-line rent accruals and amortization of lease intangibles | 819 | (377 | ) | (1,408 | ) | (1,876 | ) | ||||||||||
Add (Deduct): our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures | 71 | (7 | ) | (73 | ) | (62 | ) | ||||||||||
Deduct: lease termination fee income | (15 | ) | (950 | ) | (15 | ) | (950 | ) | |||||||||
Add: amortization of restricted stock compensation | 1,244 | 1,036 | 4,686 | 3,870 | |||||||||||||
Deduct: income on insurance recoveries from casualty loss | - | - | (430 | ) | - | ||||||||||||
Add: prepayment costs on debt | - | 666 | 1,123 | 827 | |||||||||||||
Add: amortization and write-off of deferred financing costs | 215 | 257 | 976 | 995 | |||||||||||||
Add: our share of amortization and write-off of deferred financing costs of unconsolidated joint ventures | 4 | 4 | 17 | 17 | |||||||||||||
Adjustments for non-controlling interests | - | - | 3 | (23 | ) | ||||||||||||
Adjusted funds from operations applicable to common stock | $ | 9,079 | $ | 10,539 | $ | 38,755 | $ | 39,377 | |||||||||
Note 2: | |||||||||||||||||
NAREIT funds from operations is summarized in the following table: | |||||||||||||||||
GAAP net income (loss) attributable to One Liberty Properties, Inc. | $ | 0.16 | $ | 0.23 | $ | 1.33 | $ | 0.88 | |||||||||
Add: depreciation and amortization of properties | 0.29 | 0.28 | 1.12 | 1.11 | |||||||||||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | 0.01 | 0.01 | 0.03 | 0.03 | |||||||||||||
Add: impairment due to casualty loss | - | - | 0.02 | - | |||||||||||||
Add: amortization of deferred leasing costs | - | 0.01 | 0.02 | 0.02 | |||||||||||||
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures | - | - | - | - | |||||||||||||
Deduct: gain on sale of real estate, net | (0.13 | ) | (0.03 | ) | (0.85 | ) | (0.22 | ) | |||||||||
Deduct: equity in earnings from sale of unconsolidated joint venture property | - | - | (0.01 | ) | - | ||||||||||||
Adjustments for non-controlling interests | - | - | - | 0.02 | |||||||||||||
NAREIT funds from operations per share of common stock-diluted (a) | 0.33 | 0.50 | 1.66 | 1.84 | |||||||||||||
Add (Deduct): straight-line rent accruals and amortization of lease intangibles | 0.04 | (0.01 | ) | (0.08 | ) | (0.10 | ) | ||||||||||
Add (Deduct): our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures | - | - | - | - | |||||||||||||
Deduct: lease termination fee income | - | (0.05 | ) | - | (0.05 | ) | |||||||||||
Add: amortization of restricted stock compensation | 0.06 | 0.05 | 0.23 | 0.20 | |||||||||||||
Deduct: income on insurance recoveries from casualty loss | - | - | (0.02 | ) | - | ||||||||||||
Add: prepayment costs on debt | - | 0.03 | 0.06 | 0.04 | |||||||||||||
Add: amortization and write-off of deferred financing costs | 0.01 | 0.01 | 0.05 | 0.05 | |||||||||||||
Add: our share of amortization and write-off of deferred financing costs of unconsolidated joint ventures | - | - | - | - | |||||||||||||
Adjustments for non-controlling interests | - | - | - | - | |||||||||||||
Adjusted funds from operations per share of common stock-diluted (a) | $ | 0.44 | $ | 0.53 | $ | 1.90 | $ | 1.98 |
(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. |
FAQ
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