– Occupancy at 98.8% –
– Paid-Off
– Declared 125th Consecutive Quarterly Dividend –
– Repurchased
Fourth Quarter Operating Results:
Revenues and Operating Expenses
Rental income for the three months ended
Total operating expenses in the fourth quarter of 2023 were
Other income and expenses
For the fourth quarter of 2023 net expenses were
Gain-on-sale of real estate
Gain on sale of real estate was
Net income, FFO1 and AFFO
Net income attributable to One Liberty in the fourth quarter of 2023 was
Funds from Operations, or FFO, was
Adjusted Funds from Operations, or AFFO, was
Full Year 2023 Operating Results:
Revenues and Operating Expenses
Rental income in 2023 was
Total operating expenses in 2023 were
Gain on sale of real estate
In 2023, net gain on sale of real estate was
Other income and expenses
Other income and expenses for 2023 were a net expense of
Net income, FFO and AFFO
Net income attributable to One Liberty in 2023 was
FFO for 2023 was
AFFO for 2023 was
Acquisitions and Dispositions in 2023:
The Company acquired one industrial property for
The Company sold seven restaurant properties, three retail properties, and an out-parcel, for a net gain of
Balance Sheet:
At
At
Share Repurchase and Dividends:
During 2023, approximately 499,000 shares of common stock were repurchased for approximately
On
Subsequent Events:
The Company entered into a contract to sell for
Non-GAAP Financial Measures:
One Liberty computes FFO in accordance with the “White Paper on Funds from Operations” issued by the
One Liberty computes AFFO by adjusting from FFO for straight-line rent accruals and amortization of lease intangibles, deducting income from 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 its financing activities (including its share of its 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 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 statements 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
1 A description and reconciliation of non-GAAP financial measures (i.e., FFO and AFFO) to GAAP financial measures is presented later in this release.
CONDENSED BALANCE SHEETS | |||||||
(Amounts in Thousands) | |||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Real estate investments, at cost | $ | 864,655 | $ | 879,596 | |||
Accumulated depreciation | (182,705 | ) | (173,143 | ) | |||
Real estate investments, net | 681,950 | 706,453 | |||||
Investment in unconsolidated joint ventures | 2,051 | 10,400 | |||||
Cash and cash equivalents | 26,430 | 6,718 | |||||
Unbilled rent receivable | 16,661 | 16,079 | |||||
Unamortized intangible lease assets, net | 14,681 | 19,841 | |||||
Other assets | 19,833 | 23,764 | |||||
Total assets | $ | 761,606 | $ | 783,255 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Mortgages payable, net | $ | 418,347 | $ | 405,162 | |||
Line of credit, net | — | 21,068 | |||||
Unamortized intangible lease liabilities, net | 10,096 | 11,125 | |||||
Other liabilities | 25,418 | 28,963 | |||||
Total liabilities | 453,861 | 466,318 | |||||
306,703 | 315,965 | ||||||
Non-controlling interests in consolidated joint ventures | 1,042 | 972 | |||||
Total equity | 307,745 | 316,937 | |||||
Total liabilities and equity | $ | 761,606 | $ | 783,255 | |||
(Amounts in Thousands, Except Per Share Data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenues: | |||||||||||||||
Rental income, net | $ | 22,741 | $ | 27,715 | $ | 90,646 | $ | 92,191 | |||||||
Lease termination fees | — | — | — | 25 | |||||||||||
Total revenues | 22,741 | 27,715 | 90,646 | 92,216 | |||||||||||
Operating expenses: | |||||||||||||||
Depreciation and amortization | 6,220 | 6,063 | 24,789 | 23,781 | |||||||||||
General and administrative | 3,753 | 3,724 | 15,822 | 15,258 | |||||||||||
Real estate expenses | 4,305 | 4,302 | 16,444 | 15,508 | |||||||||||
State taxes | 52 | 74 | 284 | 285 | |||||||||||
Total operating expenses | 14,330 | 14,163 | 57,339 | 54,832 | |||||||||||
Other operating income | |||||||||||||||
Gain on sale of real estate, net | 11,962 | — | 17,008 | 16,762 | |||||||||||
Operating income | 20,373 | 13,552 | 50,315 | 54,146 | |||||||||||
Other income and expenses: | |||||||||||||||
Equity in (loss) earnings of unconsolidated joint ventures | (144 | ) | 90 | (904 | ) | 400 | |||||||||
Equity in loss from sale of unconsolidated joint venture property | (108 | ) | — | (108 | ) | — | |||||||||
Income on settlement of litigation | — | — | — | 5,388 | |||||||||||
Other income | 103 | 6 | 234 | 1,003 | |||||||||||
Interest: | |||||||||||||||
Expense | (4,802 | ) | (4,543 | ) | (18,780 | ) | (17,569 | ) | |||||||
Amortization and write-off of deferred financing costs | (220 | ) | (198 | ) | (839 | ) | (1,115 | ) | |||||||
Net income | 15,202 | 8,907 | 29,918 | 42,253 | |||||||||||
Net income attributable to non-controlling interests | (240 | ) | (24 | ) | (304 | ) | (76 | ) | |||||||
Net income attributable to | $ | 14,962 | $ | 8,883 | $ | 29,614 | $ | 42,177 | |||||||
Net income per share attributable to common stockholders - diluted | $ | 0.71 | $ | 0.42 | $ | 1.38 | $ | 1.99 | |||||||
Funds from operations - Note 1 | $ | 9,621 | $ | 15,063 | $ | 38,996 | $ | 49,669 | |||||||
Funds from operations per common share - diluted - Note 2 | $ | 0.45 | $ | 0.71 | $ | 1.82 | $ | 2.34 | |||||||
Adjusted funds from operations - Note 1 | $ | 10,582 | $ | 10,970 | $ | 42,595 | $ | 42,129 | |||||||
Adjusted funds from operations per common share - diluted - Note 2 | $ | 0.50 | $ | 0.52 | $ | 1.99 | $ | 1.98 | |||||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 20,342 | 20,358 | 20,499 | 20,360 | |||||||||||
Diluted | 20,383 | 20,406 | 20,556 | 20,453 | |||||||||||
(Amounts in Thousands, Except Per Share Data) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
Note 1: | 2023 | 2022 | 2023 | 2022 | |||||||||||
NAREIT funds from operations is summarized in the following table: | |||||||||||||||
GAAP net income attributable to | $ | 14,962 | $ | 8,883 | $ | 29,614 | $ | 42,177 | |||||||
Add: depreciation and amortization of properties | 6,035 | 5,897 | 24,063 | 23,193 | |||||||||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | 88 | 130 | 477 | 519 | |||||||||||
Add: amortization of deferred leasing costs | 185 | 166 | 726 | 588 | |||||||||||
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures | 3 | 5 | 18 | 21 | |||||||||||
Add: our share of impairment loss of unconsolidated joint venture property | — | — | 850 | — | |||||||||||
Add: equity in loss from sale of unconsolidated joint venture property | 108 | — | 108 | — | |||||||||||
Deduct: gain on sale of real estate, net | (11,962 | ) | — | (17,008 | ) | (16,762 | ) | ||||||||
Adjustments for non-controlling interests | 202 | (18 | ) | 148 | (67 | ) | |||||||||
NAREIT funds from operations applicable to common stock | 9,621 | 15,063 | 38,996 | 49,669 | |||||||||||
Deduct: straight-line rent accruals and amortization of lease intangibles | (578 | ) | (1,044 | ) | (2,717 | ) | (3,240 | ) | |||||||
Deduct: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures | (3 | ) | (5 | ) | (19 | ) | (27 | ) | |||||||
Deduct: other income and income on settlement of litigation | (37 | ) | — | (112 | ) | (5,388 | ) | ||||||||
Deduct: additional rent from ground lease tenant | — | (4,626 | ) | (16 | ) | (4,626 | ) | ||||||||
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 | ) | (25 | ) | |||||||||
Add: amortization of restricted stock and RSU compensation | 1,264 | 1,317 | 5,367 | 5,507 | |||||||||||
Add: amortization and write-off of deferred financing costs | 220 | 198 | 839 | 1,115 | |||||||||||
Add: amortization of lease incentives | 30 | 44 | 121 | 44 | |||||||||||
Add: amortization of mortgage intangible assets | 34 | 12 | 114 | 12 | |||||||||||
Add: our share of amortization of deferred financing costs of unconsolidated joint venture | 29 | 4 | 42 | 17 | |||||||||||
Adjustments for non-controlling interests | 2 | 7 | 1 | 14 | |||||||||||
Adjusted funds from operations applicable to common stock | $ | 10,582 | $ | 10,970 | $ | 42,595 | $ | 42,129 | |||||||
Note 2: | |||||||||||||||
NAREIT funds from operations is summarized in the following table: | |||||||||||||||
GAAP net income attributable to | $ | 0.71 | $ | 0.42 | $ | 1.38 | $ | 1.99 | |||||||
Add: depreciation and amortization of properties | 0.27 | 0.27 | 1.13 | 1.09 | |||||||||||
Add: our share of depreciation and amortization of unconsolidated joint ventures | — | 0.01 | 0.02 | 0.02 | |||||||||||
Add: amortization of deferred leasing costs | 0.01 | 0.01 | 0.03 | 0.03 | |||||||||||
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 | — | |||||||||||
Add: equity in loss from sale of unconsolidated joint venture property | 0.01 | — | 0.01 | — | |||||||||||
Deduct: gain on sale of real estate, net | (0.56 | ) | — | (0.80 | ) | (0.79 | ) | ||||||||
Adjustments for non-controlling interests | 0.01 | — | 0.01 | — | |||||||||||
NAREIT funds from operations per share of common stock - diluted (a) | 0.45 | 0.71 | 1.82 | 2.34 | |||||||||||
Deduct: straight-line rent accruals and amortization of lease intangibles | (0.02 | ) | (0.04 | ) | (0.13 | ) | (0.16 | ) | |||||||
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 | — | — | (0.01 | ) | (0.25 | ) | |||||||||
Deduct: additional rent from ground lease tenant | — | (0.22 | ) | — | (0.22 | ) | |||||||||
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 | 0.25 | 0.26 | |||||||||||
Add: amortization and write-off of deferred financing costs | 0.01 | 0.01 | 0.04 | 0.05 | |||||||||||
Add: amortization of lease incentives | — | — | 0.01 | — | |||||||||||
Add: amortization of mortgage intangible assets | — | — | 0.01 | — | |||||||||||
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) | $ | 0.50 | $ | 0.52 | $ | 1.99 | $ | 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. |
Source:
2024 GlobeNewswire, Inc., source