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One Liberty Properties Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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One Liberty Properties Inc. (OLP) filed Quarterly Report for the period ended 2010-06-30.

One Liberty Properties Inc. has a market cap of $175.9 million; its shares were traded at around $15.35 with and P/S ratio of 4.4. The dividend yield of One Liberty Properties Inc. stocks is 7.7%. One Liberty Properties Inc. had an annual average earning growth of 5.5% over the past 5 years.OLP is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Rental income increased by $1.2 million, or 6.2%, to $20.7 million for the six months ended June 30, 2010 from $19.5 million for the six months ended June 30, 2009. For the three months ended June 30, 2010, rental income increased by $936,000, or 9.6%, to $10.6 million from $9.7 million for the three months ended June 30, 2009. The increase in rental income is primarily due to rental revenues of $965,000 and $767,000 earned during the six and three months ended June 30, 2010, respectively, primarily from the community shopping center we acquired in February 2010, of which $266,000 results from real estate tax and expense reimbursements from tenants. There were also increases in rental income at several of our other properties due primarily to lease revisions. The increases in rental income were offset by a decrease in rental income from one property for which we received a lease termination fee in the prior year, referred to below.

General and administrative expenses increased by $314,000, or 9.7%, and $311,000, or 19.4%, to $3,566,000 and $1,913,000 for the six and three months ended June 30, 2010, respectively. The increases result substantially from a $200,000 annual increase in the compensation and services agreement, of which $100,000 of the increase was recorded in the six and three months ended June 30, 2010, and from a $138,000 expense incurred in the same periods related to professional fees incurred for financing activities.

Equity in earnings of unconsolidated joint ventures decreased by $55,000, or 17.9%, and $21,000, or 14.1%, to $253,000 and $128,000 for the six and three months ended June 30, 2010. The decrease is due primarily to decreases of $50,000 and $25,000 in rental income at one of our joint venture properties. There was also a decrease in income from a joint venture due to the sale of its only property on April 30, 2010. We recognized a net gain of $107,000 on the sale of this property in the six and three months ended June 30, 2010. There was no comparable gain in the six and three months ended June 30, 2009.

Interest expense increased by $217,000, or 3.2%, and $321,000, or 9.4%, to $7.1 million and $3.7 million for the six and three months ended June 30, 2010, from $6.9 million and $3.4 million for the six and three months ended June 30, 2009. This increase resulted from interest expense of $364,000 and $264,000 in the six and three months ended June 30, 2010, respectively, on a mortgage assumed in connection with the purchase of the community shopping center in February 2010. In addition, interest expense relating to our line of credit increased by $172,000 and $209,000 during the six and three months ended June 30, 2010 due to an increase in the interest rate charged under the amended and restated credit line agreement effective April 1, 2010. Interest expense from fixed rate mortgages placed on a property in March 2009 and a property in March 2010 also contributed to the increase in interest expense. These increases in interest expense were partially offset by the payoff in full of three mortgage loans aggregating $6.1 million between July 2009 and January 2010, as well as from the monthly principal amortization of other mortgages.

Income from operations included in discontinued operations was $55,000 and $37,000 for the six and three months ended June 30, 2010 and includes the operations of one of our properties which was sold on July 14, 2010 and is treated as held for sale at June 30, 2010. For the six and three months ended June 30, 2009, income from operations included in discontinued operations was $751,000 and $173,000 and includes the operations of eight properties, five of which were conveyed to the mortgagee in July 2009 and three of which were sold during the year ended December 31, 2009. Included in such income is a $400,000 lease termination payment we received in March 2009 from a retail tenant that had been paying its rent on a current basis, but had vacated the property in 2006. In March 2009, we sold this property and recorded an impairment charge of $229,000 to recognize the loss on the sale.

Our capital sources include income from our operating activities, cash and cash equivalents, available-for-sale securities, borrowings under our revolving credit facility, refinancing existing mortgage loans and obtaining mortgage loans secured by our unencumbered properties. Our available liquidity at June 30, 2010 was approximately $32.2 million, including $18.5 million of cash and cash equivalents, $948,000 of available-for-sale securities and $13 million of available borrowings under our revolving credit facility. Our available liquidity at August 5, 2010 was approximately $25.6 million, including $10 million of cash and cash equivalents, $933,000 of available-for-sale securities and $14.7 million of available borrowings under our revolving credit facility.

Read the The complete Report

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10qk
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