One Liberty Properties, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2009
NOV 6, 2009 - 16:10 ET
GREAT NECK, NY--(Marketwire - November 6, 2009) - One Liberty Properties, Inc. (
One Liberty also reported total revenues of $30,962,000 for the nine months ended September 30, 2009 compared to $25,973,000 for the nine months ended September 30, 2008. Total revenues for the nine months ended September 30, 2009 includes rental income of $29,178,000 and a lease termination fee of $1,784,000. All revenues for the nine months ended September 30, 2008 relate to rental income. Net income for the nine months ended September 30, 2009 was $10,536,000, or $.94 per share. This compares with net income of $8,493,000, or $.75 per share, for the nine months ended September 30, 2008. The weighted average number of common shares outstanding is 11,256,000 and 11,340,000 for the nine months ended September 30, 2009 and 2008, respectively.
Funds from operations (FFO) for the three months ended September 30, 2009 were $5,740,000, or $.51 per share, compared to $4,713,000, or $.42 per share for the three months ended September 30, 2008. FFO for the nine months ended September 30, 2009 was $17,725,000, or $1.57 per share, compared to $14,958,000, or $.1.32 per share for the nine months ended September 30, 2008. Funds from operations, 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 from net income gain on sale of real estate assets, including One Liberty's share of the gain on disposition of real estate of unconsolidated joint ventures.
Commenting on the results of operations, Patrick J. Callan, Jr., President and Chief Executive Officer of the Company, noted the following:
-- Rental income increased by $845,000, or 9.7%, quarter over quarter,
due primarily to additional rental income generated from nine properties
acquired in the second half of 2008.
-- Rental income for the nine months ended September 30, 2009 increased
by $3,205,000, or 12.3%, as compared to rental income for the nine months
ended September 30, 2008. The increase in rental income is primarily due
to the acquisition of twelve properties in 2008.
-- Operating expenses increased by $298,000, or 8%, for the three months
ended September 30, 2009 and by $1,084,000, or 9.9%, for the nine months
ended September 30, 2009. Operating expenses increased in both current
periods primarily because of an increase in depreciation and amortization
resulting from property acquisitions in 2008. Also contributing to the
increase in operating expenses in both current periods was an increase in
real estate operating expenses related to repair and maintenance items and
real estate taxes. The nine months ended September 30, 2008 benefitted
from a $1,830,000 gain on sale of excess unimproved land. There was no
comparable sale in the current nine month period.
-- Discontinued operations increased by $544,000, or 79.9%, quarter over
quarter and by $727,000, or 76.3%, nine months over nine months due in
large measure to the inclusion in both current periods of a gain of
$897,000 resulting from our conveyance of five Circuit City properties to
the holder of the mortgages secured by the properties.
-- Subsequent to the close of the quarter, the Company sold two
properties for a total consideration of approximately $31,800,000, and
received net proceeds after payment of mortgages and other costs and
expenses of approximately $11,000,000. The Company will recognize an
aggregate gain for accounting purposes on these transactions of
approximately $5,800,000 and a taxable gain of approximately $7,100,000.
The Company may defer the gain for federal income tax purposes by entering
into an IRC Section 1031 tax-deferred exchange, using the sale proceeds to
acquire one or more replacement properties. As of this date, the Company
has not identified one or more replacement properties and there is no
assurance that it will be able to locate suitable replacement properties in
accordance with applicable statutory and regulatory requirements.
Mr. Callan noted that notwithstanding the difficult economic conditions in the country, the Company's operations were satisfactory in both current periods. He stated that, "the Company continues to have concerns about the economy, particularly the retail segment, and that it continues to carefully monitor its portfolio. We are hopeful, however, that business is starting to stabilize and we look forward to 2010 with cautious optimism."
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. (NYSE :OLP ) (Amounts in Thousands, Except Per Share Data) Three Months Ended Nine Months Ended September 30, September 30, 2009 2008 2009 2008 -------- -------- -------- -------- Revenues: Rental income - Note 1 $ 9,591 $ 8,746 $ 29,178 $ 25,973 Lease termination fee - - 1,784 - -------- -------- -------- -------- Total revenues 9,591 8,746 30,962 25,973 -------- -------- -------- -------- Operating expenses: Depreciation and amortization 2,107 1,910 6,355 5,653 General and administrative 1,643 1,695 4,895 4,893 Real estate expenses 191 38 531 151 Leasehold rent 77 77 231 231 -------- -------- -------- -------- Total operating expenses 4,018 3,720 12,012 10,928 -------- -------- -------- -------- Operating income 5,573 5,026 18,950 15,045 Other income and expenses: Equity in earnings of unconsolidated joint ventures 140 149 449 446 Gain on disposition of real estate of unconsolidated joint venture - - - 297 Interest and other income 85 157 292 487 Interest: Expense (3,400) (3,399) (10,250) (10,127) Amortization of deferred financing costs (183) (146) (585) (438) Gain on sale of excess unimproved land - - - 1,830 -------- -------- -------- -------- Income from continuing operations 2,215 1,787 8,856 7,540 -------- -------- -------- -------- Discontinued operations: Income from operations 328 681 1,012 1,705 Impairment charges on property sold at a loss - - (229) (752) Gain on troubled mortgage restructuring, as a result of conveyance to mortgagee 897 - 897 - -------- -------- -------- -------- Income from discontinued operations 1,225 681 1,680 953 -------- -------- -------- -------- Net income $ 3,440 $ 2,468 $ 10,536 $ 8,493 ======== ======== ======== ======== Net income per common share-basic and diluted: Income from continuing operations $ 0.20 $ 0.16 $ 0.79 $ 0.67 Income from discontinued operations 0.11 0.06 0.15 0.08 -------- -------- -------- -------- Net income per common share $ 0.31 $ 0.22 $ 0.94 $ 0.75 ======== ======== ======== ======== Funds from operations - Note 2 $ 5,740 $ 4,713 $ 17,725 $ 14,958 ======== ======== ======== ======== Funds from operations per common share-diluted - Note 3 $ 0.51 $ 0.42 $ 1.57 $ 1.32 ======== ======== ======== ======== Weighted average number of common shares outstanding: Basic and Diluted 11,174 11,329 11,256 11,340 ======== ======== ======== ======== Note 1 - Rental income includes straight line rent accruals and amortization of lease intangibles of $571 and $208 for the nine and three months ended September 30, 2009 and $905 and $288 for the nine and three months ended September 30, 2008, respectively. Note 2 - Funds from operations is summarized in the following table: Net income $ 3,440 $ 2,468 $ 10,536 $ 8,493 Add: depreciation of properties 2,201 2,149 6,893 6,475 Add: our share of depreciation in unconsolidated joint ventures 81 81 243 241 Add: amortization of capitalized leasing expenses 18 15 53 46 Deduct: our share of net gain on sale in unconsolidated joint ventures - - - (297) -------- -------- -------- -------- Funds from operations (a) $ 5,740 $ 4,713 $ 17,725 $ 14,958 ======== ======== ======== ======== Note 3 - Funds from operations per common share is summarized in the following table: Net income $ 0.31 $ 0.22 $ 0.94 $ 0.75 Add: depreciation of properties 0.19 0.19 0.61 0.57 Add: our share of depreciation in unconsolidated joint ventures 0.01 0.01 0.02 0.02 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) $ 0.51 $ 0.42 $ 1.57 $ 1.32 ======== ======== ======== ========
(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 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, 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)
September 30, December 31,
2009 2008
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ASSETS
Real estate investments, net $ 347,629 $ 353,113
Investment in unconsolidated joint ventures 5,900 5,857
Cash and cash equivalents 10,639 10,947
Available for sale securities (including
treasury bills of $6,498 in 2009) 9,212 297
Properties held for sale 23,732 34,343
Assets related to properties held for sale 1,824 2,129
Unbilled rent receivable 10,189 9,623
Other assets 11,737 12,796
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Total assets $ 420,862 $ 429,105
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable $ 202,293 $ 207,553
Mortgages payable-properties held for sale 9,069 17,961
Line of credit 27,000 27,000
Other liabilities 9,286 12,616
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Total liabilities 247,648 265,130
Stockholders' equity 173,214 163,975
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Total liabilities and stockholders' equity $ 420,862 $ 429,105
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Contact: Simeon Brinberg (516) 466-3100
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