One Liberty Properties Reports Q1 2025 Financial Results with $4.2M Net Income

One Liberty Properties, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $4.2 million, or $0.18 per diluted share, compared to $5.4 million, or $0.24 per diluted share, in the same period last year. Total revenues for the quarter reached $24.2 million, marking a 6.5% increase from $22.7 million in the prior year, primarily driven by a 7.7% rise in rental income, which amounted to $24.2 million, up from $22.4 million. The increase in rental income was attributed to contributions from newly acquired properties, which generated $2.2 million in rental income, offset by losses from properties sold.

The company’s operating expenses also increased, totaling $15.7 million for the quarter, up 8.2% from $14.5 million in the previous year. This rise was largely due to higher depreciation and amortization expenses, which increased by 8.7% to $6.5 million, and real estate expenses, which rose by 12.7% to $5.0 million. General and administrative expenses also saw a 6.3% increase, totaling $4.2 million. The overall increase in operating expenses was partially mitigated by a state tax benefit of $94,000, compared to an expense of $63,000 in the prior year.

In terms of strategic developments, One Liberty Properties completed acquisitions of three properties during the quarter for a total purchase price of $88.3 million, funded by new mortgage debt of $52.1 million. The properties, located in Theodore, Alabama; Wichita, Kansas; and Council Bluffs, Iowa, are expected to contribute approximately $1.6 million in quarterly rental income starting April 1, 2025. The company also sold a Hooters restaurant property for $3.3 million, resulting in a gain of $1.1 million, although this was lower than the $1.8 million gain from a similar sale in the previous year.

As of March 31, 2025, One Liberty Properties owned 105 properties across 32 states, with an occupancy rate of approximately 98.5%. The company reported total assets of $811.7 million, up from $767.0 million at the end of 2024, while total liabilities increased to $507.4 million from $458.4 million. The increase in liabilities was primarily due to new mortgage debt associated with the recent acquisitions. The company’s equity stood at $304.3 million, a slight decrease from $308.6 million at the end of the previous year.

Looking ahead, One Liberty Properties remains focused on expanding its portfolio, particularly in the industrial sector, while managing risks associated with tenant defaults and market conditions. The company anticipates that its base rent for 2025 will be approximately $77.4 million, with ongoing efforts to renew or re-lease expiring leases. The management expressed confidence in maintaining its REIT status and meeting its operational and financial obligations, supported by a robust liquidity position of $96.4 million as of May 1, 2025.