ONE LIBERTY PROPERTIES REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS (Form 8-K)

ONE LIBERTY PROPERTIES REPORTS

FOURTH QUARTER AND FULL YEAR 2025 RESULTS

- Approximately 82% of Annual Base Rent from Industrial Properties -

- Acquires 23 Industrial Properties for $245.5 Million in 2025 and Subsequent to Year End -

- Completes Sale of 12 Non-Core Assets for $61.3 Million of Net Proceeds in 2025 -

GREAT NECK, New York, March 5, 2026 - One Liberty Properties, Inc. (NYSE: OLP), a real estate investment trust focused on the ownership of industrial properties, today announced operating results for the quarter and year ended December 31, 2025.

"We have successfully transformed One Liberty into a predominantly industrial-focused platform, comprising 82% of our annual base rent, after completing $246 million in strategic acquisitions through disciplined capital recycling over the past 14 months," stated Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty. "As a result, we believe this period marked an important inflection point, and we are confident this foundation will drive stronger, more durable earnings growth in 2026 and beyond."

Recent Events, Fourth Quarter and Full Year 2025 Highlights:

Key Drivers of Fourth Quarter Results:

Rental income increased by $0.9 million year-over-year due primarily to the net impact of acquisitions and dispositions.

Total operating expenses increased by $4.6 million year-over-year primarily due to a $3.3 million non-cash impairment charge related to assets targeted for sale and the net impact of acquisitions and dispositions. Interest expense increased by $0.8 million year-over-year due primarily to increased mortgage debt incurred in connection with acquisitions.

During the quarter, the Company recognized $2.0 million gain on sale of real estate and collected $1.3 million of litigation settlement income.

The improvement in FFO is due primarily to litigation settlement income and an increase in rental income, offset by higher interest expense. The change in AFFO is due primarily to the same factors, excluding the litigation settlement income.

Diluted per share net income, FFO and AFFO were impacted in the quarter ended December 31, 2025 compared to the corresponding quarter in the prior year by an average increase of approximately 150,000 in the weighted average number of shares of common stock outstanding as a result of stock issuances in connection with the non-cash equity incentive and dividend reinvestment programs.

Key Drivers of 2025 Results:

Rental income increased by $6.8 million year-over-year due primarily to the net impact of acquisitions and dispositions.

Total operating expenses increased by $9.3 million year-over-year primarily due to the net impact of acquisitions and dispositions and a $3.5 million increase in non-cash impairment charge related to the Beachwood, Ohio and St. Louis Park, Minnesota properties. Interest expense increased by $3.3 million year-over-year due primarily to acquisitions and the related increases in the weighted average principal amount of mortgage debt and weighted average interest rate.

During the year, the Company recognized an $18.7 million gain on sale of real estate.

The improvement in FFO is due primarily to increases in rental income and litigation settlement income, offset by higher interest expense and real estate expenses. The increase in AFFO is due to the same factors, excluding the litigation settlement income and non-cash equity compensation awards.

Diluted per share net income, FFO and AFFO were impacted in 2025 compared to 2024 by an average increase of approximately 204,000 in the weighted average number of shares of common stock outstanding as a result of stock issuances in connection with the non-cash equity incentive and dividend reinvestment programs.

Balance Sheet:

At December 31, 2025, the Company had $14.4 million of cash and cash equivalents, total assets of $857.6 million, total debt of $517.3 million, and total OLP stockholders' equity of $299.6 million.

At February 27, 2026, One Liberty's available liquidity was $78.5 million, including $8.5 million of cash and cash equivalents (including the credit facility's required $3.0 million average deposit maintenance balance) and $70 million available under its credit facility.

2025 Transaction Activity:

The Company acquired 13 industrial properties for $188.8 million, from which the Company expects to recognize, in 2026, approximately $13.3 million of rental income and $6.5 million of mortgage interest expense.

The Company sold ten properties (seven retail, a restaurant, a veterinary hospital and a property ground leased to a multi-unit apartment complex owner/operator) for aggregate net sales proceeds of $58.9 million and an aggregate net gain on sale of real estate of $18.7 million. The properties sold accounted for $4.5 million of rental income in 2024, the last year of full ownership, and accounted for $2.4 million of rental income in 2025.

The Company sold two joint venture properties; its 50% share of the net sales proceeds and gain were $2.4 million and $991,000, respectively.

The Company entered into a contract in October 2025, to sell a vacant retail property located in Cary, North Carolina for $6.0 million. It is anticipated that the sale will close by the end of the first quarter 2026 and will result in a gain on sale of approximately $2.5 million. This property accounted for $192,000 of rental income and $45,000 of mortgage interest expense in 2025.

Subsequent Events:

The Company completed, in January 2026, the purchase of ten industrial properties totaling 637,633 square feet located in seven markets and leased to six tenants (each of which has a global or national presence) for $56.7 million, including new mortgage debt on six of the properties of $17.0 million bearing an interest rate of 5.53% and maturing in 2033. The Company also entered into a contract to purchase an additional 14 acres of land adjacent to one of such properties for $800,000. The Company drew $30 million on its credit facility as part of its purchase. The Company anticipates using the net proceeds from property sales and mortgage financings on two of the unencumbered properties to pay down the credit facility. The Company expects to recognize approximately $2.8 million of base rent from these properties and, after giving effect to anticipated lease renewals (as to which no assurance can be provided), estimates that the base rent from these properties in 2026 will be approximately $3.6 million.

The Company entered into a contract in January 2026, to sell a retail property located in Newport News, Virginia for $4.2 million. It is anticipated that the sale will close in April 2026 and should result in a gain on sale of approximately $1.3 million. This property accounted for $360,000 of rental income in 2025.

Non-GAAP Financial Measures:

One Liberty computes FFO in accordance with the "White Paper on Funds from Operations" issued by the National Association of Real Estate Investment Trusts ("NAREIT") and NAREIT's related guidance. FFO is defined in the White Paper as net income (calculated in accordance with generally accepted accounting principles), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities where the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. In computing FFO, management does not add back to net income the amortization of costs in connection with its financing activities or depreciation of non-real estate assets.

One Liberty computes adjusted funds from operations, or AFFO, by adjusting from FFO for its straight-line rent accruals and amortization of lease intangibles, deducting from income additional rent from ground lease tenant, income on settlement of litigation, income on insurance recoveries from casualties, lease termination and assignment fees, and adding back amortization of restricted stock and restricted stock unit compensation expense, amortization of costs in connection with its financing activities (including its share of its unconsolidated joint ventures), debt prepayment costs and amortization of lease incentives and mortgage intangible assets. Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.

One Liberty believes that FFO and AFFO are useful and standard supplemental measures of the operating performance for equity REITs and are used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO and AFFO when reporting their operating results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assumes that the value of real estate assets diminish predictability over time. In fact, real estate values have historically risen and fallen with market conditions. As a result, management believes that FFO and AFFO provide a performance measure that when compared period-over-period, should reflect the impact to operations from trends in, among other things, occupancy rates, rental rates, operating costs and interest costs, without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. Management also considers FFO and AFFO to be useful in evaluating potential property acquisitions.

FFO and AFFO do not represent net income or cash flows from operating, investing or financing activities as defined by GAAP. FFO and AFFO are not alternatives to net income as a reliable measure of One Liberty's operating performance nor an alternative to cash flows as measures of liquidity. FFO and AFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization, capital improvements and distributions to stockholders. Management recognizes that there are limitations in the use of FFO and AFFO. In evaluating our performance, management is careful to examine GAAP measures such as net income and cash flows from operating, investing and financing activities.

Operating Measure:

Annual base rent, or ABR, generally represents the cash base rent payable to OLP during the twelve months ending December 31, 2026 under leases in effect at December 31, 2025. See OLP's Annual Report on Form 10-K for the year ended December 31, 2025 (the "Form 10-K") for further information on the calculation of ABR, which is referred to in the Form 10-K as "2026 base rent."