Key Highlights

  • Total revenues rose 11.9% to USD 26.6 million in the third quarter of 2026, up USD 2.8 million, as acquisitions added USD 3.4 million of rental income, partly offset by USD 661,000 lost to sales.
  • Net income was USD 0.04 per diluted share, against USD 0.48 a year earlier, because the net gain on property sales was USD 887,000 versus USD 9.1 million.
  • FFO per diluted share grew 7.1% to USD 0.45, and AFFO per diluted share grew 8.7% to USD 0.50, while interest expense increased to USD 6.8 million from USD 5.6 million.
  • Industrial properties made up about 86% of base rent and portfolio occupancy stood at 97.5%, with a USD 34 million Milwaukee industrial portfolio expected to close in the fourth quarter.

Rental Growth Meets a Much Smaller Sale Gain

One Liberty Properties (NYSE:OLP) announced third quarter 2026 results on November 3, 2026. Revenues of USD 26.6 million compared with USD 23.8 million a year earlier, while FFO rose 9.7% to USD 9.9 million and AFFO rose 9.3% to USD 11.0 million. Net Income attributable to the company fell 89.5% to USD 1.1 million from USD 10.5 million. The gap between growth in Revenue and the drop in net income comes from gains on real estate sales, which are included in net income but excluded from FFO. The prior-year quarter included a USD 9.1 million net gain, while this quarter had USD 887,000 after a USD 1.4 million Impairment on a Chicago retail property.

Capital Recycling From Retail Into Industrial

The real estate Investment trust, organized in Maryland in 1982, owns a diversified portfolio of mostly industrial properties across the United States. Management said it is selling retail and other Assets that have reached peak value and buying industrial buildings. In the quarter it bought a 100,000 square foot industrial building in Ocala, Florida for USD 11.3 million, which it expects to generate about USD 890,000 of initial annual rent, and sold two retail properties for USD 7.8 million. After quarter-end it sold five more properties, two industrial and three retail, for about USD 25.1 million, with estimated net proceeds of USD 24.5 million and an expected gain of about USD 8.6 million. It also signed a contract for four industrial buildings of 277,117 square feet in the Milwaukee area for about USD 34 million.

Interest Costs, Leverage and What to Watch

Interest expense rose to USD 6.8 million because of a higher average amount of Mortgage Debt and, to a lesser extent, higher rates. At September 30, 2026 total debt was USD 543.4 million, including USD 10.0 million drawn on the Credit facility, against stockholders' Equity of USD 297.1 million and cash of USD 20.1 million. A new USD 100 million Facility matures in December 2029, with an extension right to December 2030, and prices at 30-day SOFR plus 175 to 250 basis points. Available Liquidity was USD 104.8 million at October 30, 2026. The Milwaukee deal has not closed.

Where Things Stand

Revenue grew 11.9% because acquisitions of industrial buildings added rent, but Earnings Per Share fell to USD 0.04 mainly because last year's quarter held a USD 9.1 million property sale gain that this year did not repeat. On the measures REITs use to strip out such gains, One Liberty Properties (NYSE:OLP) improved, with FFO per share up 7.1% and AFFO per share up 8.7%. Higher interest cost is the offset, and the release did not include Dividend or guidance data. The closing of the Milwaukee portfolio, the pace of further retail sales and borrowing costs are the next points to monitor.