One Liberty Properties Inc.
03/06/2026 | Press release | Distributed by Public on 03/06/2026 12:27
Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Our primary market risk exposure is the effect of changes in interest rates on the interest cost of draws on our revolving variable rate credit facility and the effect of changes in the fair value of our interest rate swap agreements. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control.
We use interest rate swaps to limit interest rate risk on substantially all variable rate mortgages. These swaps are used for hedging purposes-not for speculation. We do not enter into interest rate swaps for trading purposes. At December 31, 2025, we had no liability in the event of the early termination of our swaps.
At December 31, 2025, we had two interest rate swap agreements outstanding with an aggregate $1.6 million notional amount. The fair market value of the interest rate swaps is dependent upon existing market interest rates and swap spreads, which change over time. As of December 31, 2025, if there had been an increase of 100 basis points in forward interest rates, the fair market value of the interest rate swaps and the net unrealized gain on derivative instruments would have increased by $7,000. If there were a decrease of 100 basis points in forward interest rates, the fair market value of the interest rate swaps and the net unrealized gain on derivative instruments would have decreased by $7,000. These changes would not have any impact on our net income or cash.
The fair market value of our long-term debt is estimated based on discounting future cash flows at interest rates that our management believes reflect the risks associated with long-term debt of similar risk and duration.
The following table sets forth our debt obligations by scheduled principal cash flow payments and maturity date, weighted average interest rates and estimated fair market value at December 31, 2025:
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For the Year Ended December 31, |
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Fair |
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Market |
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(Dollars in thousands) |
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2026 |
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2027 |
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2028 |
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2029 |
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2030 |
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Thereafter |
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Total |
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Value |
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Fixed rate: |
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Long-term debt (a) |
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$ |
28,875 |
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$ |
48,676 |
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$ |
39,671 |
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$ |
86,839 |
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$ |
77,898 |
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$ |
240,542 |
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$ |
522,501 |
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$ |
517,660 |
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Weighted average interest rate |
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4.09 |
% |
3.81 |
% |
4.61 |
% |
4.42 |
% |
5.37 |
% |
5.26 |
% |
4.88 |
% |
5.44 |
% |
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Variable rate: |
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Long-term debt (b) |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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$ |
- |
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| (a) | Includes $2,091 of mortgage debt on which the current interest rate of 3.95% resets in February 2026 and $4,992 of mortgage debt on which the current interest rate of 3.85% resets in June 2029. |
| (b) | As of December 31, 2025 and February 27, 2026, there was $0 and $30,000, respectively, outstanding on our credit facility. Our credit facility matures on December 31, 2026 and bears interest equal to 30-day SOFR plus the applicable margin. The applicable margin varies based on the ratio of total debt to total value. See "Management's Discussion and Analysis of Financial Conditions and Results of Operations-Liquidity and Capital Resources-Credit Facility." |
One Liberty Properties Inc. published this content on March 06, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 06, 2026 at 18:27 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]