One Liberty Rental Income Growth Accelerates to 11.9%

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter total revenues reached $26.6 million as industrial assets carried about 86% of base rent.

One Liberty Properties (OLP), a real estate investment trust focused on industrial properties, reported that rental income, net, grew 11.9% in the three months ended September 30, 2026, a faster year-over-year pace than the 10.3% increase recorded in the second quarter. Total revenues were $26.6 million, up $2.8 million from a year earlier.

The company said accretive acquisitions added $3.4 million to rental income, partially offset by $661,000 from properties sold. President and Chief Executive Officer Patrick J. Callan, Jr., said results reflected continued growth of the industrial portfolio and that the company continues to recycle capital from retail and other assets that have reached peak value into industrial properties.

Net income attributable to OLP fell 89.5% to $1.1 million, or $0.04 a share, from $10.5 million, or $0.48 a share, a year earlier. The company attributed the decline principally to an $887,000 net gain on sales of real estate in the current quarter versus a $9.1 million net gain in the prior-year quarter.

Funds from operations per diluted share grew 7.1% to $0.45, and adjusted funds from operations per diluted share grew 8.7% to $0.50. FFO rose 9.7% to $9.9 million and AFFO 9.3% to $11.0 million, which the company said was driven primarily by higher rental income from industrial acquisitions, offset primarily by additional interest expense. FFO-per-share growth slowed from 8.9% in the second quarter, when FFO per diluted share was $0.49; AFFO per diluted share declined sequentially to $0.50 from $0.51. Diluted per share results were affected by an average increase of approximately 224,000 weighted average shares from stock issuances under equity incentive and dividend reinvestment programs.

Industrial properties represented approximately 86% of base rent, up from approximately 85% in the second quarter. Portfolio occupancy was 97.5% at quarter end, versus 97.6% at June 30.

Total operating expenses were $19.3 million, compared with $17.0 million a year earlier, primarily due to a $1.6 million increase in depreciation and amortization and higher real estate expenses related to additional industrial properties acquired. Interest expense was $6.8 million, versus $5.6 million in the prior-year quarter, reflecting an increase in the weighted average principal amount of mortgage debt outstanding and, to a lesser extent, higher weighted average interest rates.

During the quarter the company acquired a 100,000-square-foot industrial building in Ocala, Florida, for $11.3 million. It estimated the property will initially generate annual rental income of approximately $890,000. One Liberty also signed a definitive agreement to purchase a four-building, 277,000-square-foot industrial portfolio in the Milwaukee, Wisconsin, MSA for $34 million, with closing expected in the fourth quarter of 2026.

It sold two non-core retail properties for an aggregate price of $7.8 million, generating net proceeds of $6.2 million and a net gain, before a $1.4 million impairment loss, of $887,000. Subsequent to quarter end, the company sold five properties, including two industrial and three retail, for an aggregate price of $25.1 million and estimated net proceeds of approximately $24.5 million and an estimated net gain of approximately $8.6 million. The dispositions included two industrial properties in Louisville, Kentucky, that the company said it believed reached peak valuation.

At September 30, 2026, the company had $20.1 million of cash and cash equivalents, total assets of $880.5 million, total debt of $543.4 million, including $10.0 million outstanding under its credit facility, and stockholders’ equity of $297.1 million. In July it entered a new $100 million revolving credit facility with a scheduled maturity in December 2029 and an extension right to December 2030, with an accordion feature allowing an increase of up to $50 million. Available liquidity at October 30, 2026, was $104.8 million.