SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 11, 2004
ONE LIBERTY PROPERTIES, INC.
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(Exact name of Registrant as specified in charter)
Maryland 0-11083 13-3147497
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(State or other (Commission file No.) (IRS Employer
jurisdiction of I.D. No.)
incorporation)
60 Cutter Mill Road, Suite 303, Great Neck, New York 11021
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code 516-466-3100
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Item 12. Results of Operations and Financial Condition
Attached hereto as an exhibit is a copy of a Press Release issued by
the registrant on March 11, 2004. The Release which is being furnished to the
Securities and Exchange Commission, discloses information regarding the
registrant's results of operations for the year and quarter ended December 31,
2003.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned officer thereunto duly authorized.
ONE LIBERTY PROPERTIES, INC.
Date: March 12, 2004 By: /s/ Simeon Brinberg
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Simeon Brinberg
Senior Vice President
EXHIBIT
ONE LIBERTY PROPERTIES, INC.
60 CUTTER MILL ROAD - SUITE 303
GREAT NECK, NY 11021
Telephone 516-466-3100
Telecopier 516-466-3132
www.onelibertyproperties.com
ONE LIBERTY PROPERTIES ANNOUNCES RESULTS OF OPERATIONS
FOR THE QUARTER AND YEAR ENDED DECEMBER 31, 2003
Great Neck, New York - March 11, 2004 - One Liberty Properties, Inc. (NYSE: OLP)
today announced that for the fiscal year ended December 31, 2003, revenues
increased by 26% and net income applicable to common shareholders increased by
54.6% compared to revenues and net income applicable to common shareholders for
the preceding fiscal year ended December 31, 2002. The Company reported
revenues, net income and net income applicable to common shareholders of
$19,796,000, $8,525,000 and $7,488,000, or $1.18 per share on a diluted basis,
respectively, for the fiscal year ended December 31, 2003. Net income and net
income applicable to common shareholders gives effect to the Company's equity in
earnings of unconsolidated joint ventures of $2,411,000. For the year ended
December 31, 2002, One Liberty reported revenues of $15,705,000, net income of
$5,880,000 and net income applicable to common shareholders of $4,843,000, or
$1.04 per share on a diluted basis. Net income for the 2002 fiscal year includes
the Company's equity in earnings of unconsolidated joint ventures of $1,078,000.
The weighted average number of common shares outstanding on a diluted basis was
6,361,000 and 4,644,000 for the years ended December 31, 2003 and 2002,
respectively.
For the quarter ended December 31, 2003, One Liberty reported revenues of
$5,514,000, net income of $2,165,000 and net income applicable to common
shareholders of $1,906,000, or $.23 per common share on a diluted basis. Net
income for the quarter ended December 31, 2003 gives effect to the Company's
equity in earnings of unconsolidated joint ventures of $577,000. This compares
with revenues of $4,308,000, net income of $1,828,000 and net income applicable
to common shareholders of $1,569,000, or $.28 per common share on a diluted
basis for the quarter ended December 31, 2002. Net income for the quarter ended
December 31, 2002 gives effect to equity in earnings of unconsolidated joint
ventures of $319,000. The weighted average number of common shares outstanding
on a diluted basis was 8,301,000 and 5,644,000 for the three months ended
December 31, 2003 and 2002, respectively.
One Liberty also reported that funds from operations applicable to common
shareholders increased by 51.8% to $11,776,000, or $1.85 per common share on a
diluted basis, for the year ended December 31, 2003 as compared to $7,757,000,
or $1.67 per common share on a diluted basis for the year ended December 31,
2002. Funds from operations applicable to common shareholders for the three
months ended December 31, 2003 was $3,235,000, or $.39 per common share on a
diluted basis, as compared to $2,399,000, or $.43 per common share on a diluted
basis, for the three months ended December 31, 2002. Funds from operations,
calculated in accordance with the NAREIT definition, adds back to net income
depreciation of properties, One Liberty's share of depreciation in
unconsolidated joint ventures and amortization of deferred leasing costs and
deducts gains on sale of real estate and cash distributions to preferred
shareholders. All of One Liberty's preferred shares were redeemed or converted
to common stock effective December 30, 2003.
Commenting on the results of operations, Jeffrey Fishman, President and Chief
Executive Officer of One Liberty, stated that the increase in revenues year over
year and quarter over quarter was primarily due to the increase in rental
revenues, resulting from the acquisition of eight properties between September
2002 and September 2003. On the expense side, Mr. Fishman noted that property
acquisitions and related financing activities and a general increase in the
level of the Company's business caused expenses to increase year over year and
quarter over quarter by 25.7% and 41.7%, respectively. Specifically,
depreciation expense increased due to the acquisition of additional properties,
interest on mortgages payable increased as a result of increased mortgage loans
placed on properties and mortgages assumed in connection with property
acquisitions, interest-line of credit increased as funds were borrowed from time
to time to facilitate property acquisitions, general and administrative expenses
increased, due in large measure to professional expenses incurred in connection
with property acquisitions, mortgage financings and other expenses related to
the increased level of the Company's business and for corporate governance
compliance.
Commenting further, Mr. Fishman noted that positively impacting the Company's
results of operations in both the current year and the current quarter was a
124% and 81% increase in the Company's equity in earnings of unconsolidated
joint ventures. The increase is a direct result of the acquisition of nine
megaplex movie theaters and one retail property by joint ventures in which the
Company has a 50% interest, between April 2002 and July 2003.
Mr. Fishman noted that at December 31, 2003 the Company had approximately
$46,000,000 in cash and cash equivalents, as well as the entire unused credit
line of $30,000,000, available for property acquisitions. Mr. Fishman stated
that "the use of these funds for property acquisitions, should increase our
revenues, net income and net income per share for 2004. In terms of property
acquisition activities, we recently closed on and announced the purchase of a 16
screen megaplex stadium theater located in Chula Vista, California for a
purchase price of approximately $11,500,000 and have one additional property
under contract. We are also involved in negotiations for other property
acquisitions, but we cannot project if any of these negotiations will result in
executed contracts or in property acquisitions or the timing of any
acquisition".
One Liberty Properties is a real estate investment trust and invests primarily
in improved commercial real estate under long term net lease.
Certain information contained in this press release, including information with
respect to factors which may improve our future results of operations and future
acquisitions, together with other statements and information publicly
disseminated by One Liberty Properties, Inc. is forward looking within the
meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E
of the Securities and Exchange Act of 1934 as amended. We intend such forward
looking statements to be covered by the safe harbor provision for forward
looking statements contained in the private securities litigation reform act of
1995 and include this statement for the purpose of complying with these safe
harbor provisions. Information regarding certain important factors that could
cause actual outcomes or other events to differ materially from any such forward
looking statements will appear in the Company's Form 10-K for the year ended
December 31, 2003. You should not rely on forward looking statements since they
involve known and unknown risks, uncertainties and other factors which are, in
some cases, beyond our control and which could materially affect actual results,
performance or achievements.
Contact: Simeon Brinberg
(516) 466-3100
ONE LIBERTY PROPERTIES, INC. (NYSE: OLP)
(Amounts in Thousands, Except Per Share Data)
Three Months Ended Year Ended
December 31, December 31,
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2003 2002 2003 2002
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Revenues $ 5,514 $ 4,308 $19,796 $15,705
Expenses 3,926 2,770 13,696 10,892
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Earnings before equity in earnings of unconsolidated
joint ventures and gain on sale 1,588 1,538 6,100 4,813
Equity in earnings of unconsolidated joint ventures 577 319 2,411 1,078
Gain (loss) on sale of real estate and available-for-sale
securities - (29) 14 (11)
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Net income $ 2,165 $ 1,828 $ 8,525 $ 5,880
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Calculation of net income applicable to common stockholders:
Net income $ 2,165 $ 1,828 $ 8,525 $ 5,880
Less: distributions on preferred stock 259 259 1,037 1,037
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Net income applicable to
common stockholders $ 1,906 $ 1,569 $ 7,488 $ 4,843
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Net income per common share:
Basic $ .23 $ .28 $ 1.18 $ 1.05
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Diluted $ .23 $ .28 $ 1.18 $ 1.04
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Funds from operations applicable to
common stockholders* $ 3,235 $ 2,399 $11,776 $ 7,757
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Funds from operations per common share:
Diluted $ .39 $ .43 $ 1.85 $ 1.67
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Weighted average number of common shares outstanding:
Basic 8,267 5,622 6,329 4,614
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Diluted 8,301 5,644 6,361 4,644
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* Funds from operations applicable to common stockholders is summarized in
the following table:
Net income $ 2,165 $ 1,828 $ 8,525 $ 5,880
Add: depreciation of properties 1,054 691 3,473 2,617
Add: our share of depreciation in
unconsolidated joint ventures 253 110 790 268
Add: amortization of capitalized
leasing expenses 22 - 39 -
Deduct: gain (loss) on sale of real estate - 29 (14) 29
Deduct: preferred distributions (259) (259) (1,037) (1,037)
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Funds from operations applicable to
common stockholders $ 3,235 $ 2,399 $ 11,776 $ 7,757
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