– Plans to report a gain of more than $ 21 million –
– Provides rental update –
GREAT NECK, NY, June 21, 2021 (GLOBE NEWSWIRE) – One Liberty Properties, Inc. (NYSE: OLP), owner and manager of a predominantly industrial portfolio as well as other geographically diversified net leased assets, announced today ‘ hui that he closed on a $ 40.5 million sale of a 47,200 square foot building and associated parking lot located in West Hartford, Connecticut and leased to Whole Foods. The proceeds were used to pay off a $ 15.4 million mortgage on the property, pay off the outstanding $ 17.9 million balance on the company’s credit facility and pay transaction costs. The remaining proceeds of approximately $ 5.4 million will be used for general corporate and working capital purposes.
Patrick J. Callan, Jr., President and CEO of One Liberty, said, “As we continue to transform our portfolio into industrial properties in well-located markets, this sale once again demonstrates our ability to create value. significant over time. Similar to the sale of other non-core assets that we believe have reached their maximum value, this transaction allows us to reduce our leverage and increase our financial capacity to fund future growth. “
The Company expects that for the quarter ending June 30, 2021, it will record a net gain of approximately $ 21.5 million on this sale, before giving effect to a mortgage swap termination fee of $ 796,000. During the quarter ended March 31, 2021, the Company recorded $ 440,000 in rental income and incurred $ 132,000 in mortgage interest charges and $ 80,000 in depreciation charges for this property.
The Company and Havertys (NYSE: HVT and HVT.A), entered into new leases that extended the terms of the leases on ten of the eleven properties that were due to expire in August 2022, although one of these leases provides that it may be terminated by either party prior to the stated termination date. Typically, lease extensions last from four to nine years from the August 2022 expiration date. The Company has also agreed to invest up to $ 3.0 million in leasehold improvements. After giving effect to the lease extensions and assuming the lease subject to the right of mutual termination is not terminated, the rental income for this tenant is expected to be approximately $ 4.8 million, $ 4.5 million and $ 4.0 million in 2021, 2022 and 2023, respectively.
Certain information contained in this press release, as well as other statements and information publicly released by One Liberty Properties, Inc. are 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. One Liberty intends that these forward-looking statements 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 such safe-haven provisions. Factors that could cause actual results or other events to differ materially from these forward-looking statements are disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and in the Quarterly Reports on Form 10-Q subsequently filed and in particular in the sections of these reports entitled “Risk Factors” and “Management’s Explanation and Analysis of Financial Position and Results of Operations”. You should not rely on forward-looking statements as 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.
About One Liberty properties:
A freedom is a self-directed, self-directed real estate investment trust incorporated in Maryland in 1982. The Company acquires, owns and manages a geographically diverse portfolio consisting primarily of industrial classifications and other properties. Many of these properties are subject to long-term net leases under which the tenant is generally responsible for property taxes, insurance and routine maintenance and repairs.
One Liberty Properties
Telephone: (516) 466-3100