One Liberty Properties, Inc.

What they do

OLP acquires, owns and manages primarily industrial real estate, with the balance in retail and other property types, across 30 states. As of February 1, 2026, after ten January 2026 industrial acquisitions, it owned 113 properties totaling about 12.5 million square feet, including 79 industrial properties of about 11.0 million square feet. It generates revenue almost entirely from tenant rent under long-term leases, with a weighted average remaining lease term of 4.4 years.

Revenue drivers

• Industrial properties — Largest segment: 80.9% of 2026 base rent as of December 31, 2025, and management states industrial is now approximately 85% of base rent as of the second quarter of 2026.
• Retail properties — Second segment at 14.6% of 2026 base rent as of December 31, 2025, and the primary source of disposition activity as non-core retail assets are sold.
• Other properties — Smallest segment at 4.5% of 2026 base rent as of December 31, 2025, and includes the ground-leased and specialty assets referenced in the dispositions.

Recent performance

Second quarter 2026 net income attributable to OLP was $15.7 million, or $0.71 per diluted share, versus $8.4 million and $0.39 a year earlier. Rental income, net, grew 10.3%, or $2.5 million, year over year due primarily to accretive acquisitions. FFO per diluted share rose 8.9% to $0.49 and AFFO per diluted share rose 4.1% to $0.51. Operating expenses increased to $17.6 million from $15.7 million on additional depreciation and amortization, and interest expense rose $1.0 million on higher average mortgage debt. Portfolio occupancy was 97.6% at quarter end.

Strategy

Management is repositioning OLP as an industrial-focused REIT, with industrial now about 85% of base rent. It acquired 13 industrial properties in 2025 for $188.8 million and ten more in January 2026 for $56.7 million, while selling ten properties in 2025 for $58.9 million in net proceeds and a $18.7 million gain. It continues to sell non-core retail, including three properties for $16.3 million of net proceeds and a $13.4 million gain in the second quarter of 2026. Subsequent to quarter end it entered a new up to $100 million revolving credit facility maturing December 2029 with a one-year extension right.

Risks

• Lease expiration exposure — Expiring leases represent at least 10% of 2026 base rent in each year 2027 through 2031, including 18.3% in 2027 and 16.0% in 2028, and 70 leases for 64 tenants at 47 properties representing $30.9 million, or 37.4%, of 2026 base rent expire in the three years ending December 31, 2028.
• Tenant concentration and credit — Substantially all revenue comes from tenant rent, and FedEx alone accounts for 5% of 2026 base rent across five properties, so a default or non-renewal by a significant tenant would reduce revenue and cash flow.
• Interest rate and debt cost risk — OLP had $528.3 million of total debt at June 30, 2026, with $30.0 million outstanding on its credit facility at a floating rate of 5.42% as of February 27, 2026, so higher rates increase interest expense.
• Property impairment and vacancy — The company recorded a $3.3 million impairment on its St. Louis Park, Minnesota retail property, which was approximately 75% vacant at June 30, 2026.

Outlook

Management states that the industrial transformation continues to deliver revenue and per share growth, supported by accretive acquisitions and non-core retail dispositions. It expects the new up to $100 million credit facility, which matures in December 2029 with an extension to December 2030, to provide additional flexibility to execute on industrial growth. The company also has pending sales, including a vacant Cary, North Carolina retail property under contract for $6.0 million and a Newport News, Virginia retail property for $4.2 million, and a Chicago, Illinois retail property for approximately $5.7 million.