One Liberty Properties — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues reached $26.6 million, an 11.9% increase from $23.8 million in the third quarter of 2025.
• Net income attributable to One Liberty Properties, Inc. was $1.1 million ($0.04 per diluted share), down from $10.5 million ($0.48 per diluted share) in the prior-year quarter, primarily due to a lower net gain on sales of real estate ($887,000 vs. $9.1 million).
• Funds from operations (FFO) grew 9.7% to $9.9 million ($0.45 per share), up from $9.1 million ($0.42 per share) in the prior year.
• Adjusted funds from operations (AFFO) increased 9.3% to $11.0 million ($0.50 per share), up from $10.1 million ($0.46 per share) in the prior year.
• Total operating expenses were $19.3 million, up from $17.0 million in the prior year, driven by a $1.6 million increase in depreciation and amortization and higher real estate expenses.
• Interest expense rose to $6.8 million from $5.6 million in the prior year, reflecting an increase in weighted average mortgage debt and interest rates.
• Cash and cash equivalents were $20.1 million as of September 30, 2026.
• Total debt stood at $543.4 million, including $10.0 million outstanding under the credit facility.
• Total assets were $880.5 million, with stockholders' equity at $297.1 million.

Guidance and Future Outlook:

• Management stated the company remains well-positioned to execute its industrial growth strategy and create long-term value for stockholders.
• The company plans to recycle capital from retail and other assets that have reached peak value into industrial properties.
• A four-building industrial portfolio in the Milwaukee MSA is under contract, with closing expected in the fourth quarter of 2026.
• The new $100 million credit facility includes an extension right to December 2030 and an accordion feature allowing an increase of up to $50 million.

Business Segments and Product Lines:

• Industrial properties represent approximately 86% of base rent.
• Portfolio occupancy was 97.5% as of the quarter end.
• Acquired a 100,000 square foot industrial building in Ocala, Florida, for $11.3 million; estimated to generate approximately $890,000 in annual rental income.
• Signed a definitive agreement to acquire a four-building, 277,117 square foot industrial portfolio in Milwaukee, Wisconsin, for $34 million.
• Sold two non-core retail properties during the quarter for an aggregate price of $7.8 million, generating net proceeds of $6.2 million.
• Sold five properties subsequent to the quarter end for an aggregate price of $25.1 million, generating net proceeds of approximately $24.5 million.

Market and Competitive Landscape:

• The Ocala, Florida acquisition targets the region's fastest-growing metros of Tampa and Orlando.
• The Milwaukee acquisition targets a tight industrial submarket with a diverse tenant base.
• The company identified two industrial properties in Louisville, Kentucky, as having reached peak valuation prior to their sale.

Risks and Challenges:

• Net income was significantly impacted by the timing and magnitude of gains on the sale of real estate assets compared to the prior year.
• Operating expenses increased due to higher depreciation, amortization, and real estate expenses associated with new industrial acquisitions.
• Interest expense increased due to higher debt principal and interest rates.
• Forward-looking statements involve risks including the potential for anticipated transactions not to be completed, adjustments to estimated net proceeds and gains, and the possibility that rental increases or market-to-market opportunities may not be realized.

Management Commentary and Tone:

• Patrick J. Callan, Jr., President and CEO, stated that results reflect continued portfolio growth driven by accretive industrial acquisitions.
• Management expressed pleasure in adding high-quality assets in the Southeast and diversifying the tenant base in Milwaukee.
• The tone indicates confidence in the industrial growth strategy and the company's financial flexibility following the new credit facility.

Other Key Points:

• Weighted average number of diluted common shares increased by approximately 224,000 compared to the prior year due to stock issuances for equity incentive and dividend reinvestment programs.
• Available liquidity was $104.8 million as of October 30, 2026, including $21.0 million in cash and $83.8 million available under the credit facility.
• The new credit facility interest is based on 30-day SOFR plus a margin of 175 to 250 basis points.
• Post-quarter-end sales included two industrial properties in Louisville, Kentucky ($9.2 million), and three retail properties in El Paso, Amarillo, and Austin, Texas ($14.0 million combined).