One Liberty Properties, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2007

Business Wire, Nov 8, 2007

GREAT NECK, N.Y. -- One Liberty Properties, Inc. (NYSE: OLP) today announced that for the three months ended September 30, 2007 it had rental income of $9,238,000 and net income of $2,579,000, or $.26 per share. Net income for the three months ended September 30, 2007 includes the Company's equity in earnings of unconsolidated joint ventures of $141,000, or $.01 per share, interest income and other income of $432,000, or $.04 per share, and income from discontinued operations of $425,000, or $.04 per share. This compares with rental income, net income and net income per share of $8,285,000, $5,735,000 and $.58 per share, respectively, for the three months ended September 30, 2006. Net income for the three months ended September 30, 2006 includes equity in earnings of unconsolidated joint ventures of $246,000, or $.02 per share, the Company's share of a gain on disposition of real estate of unconsolidated joint venture of $3,294,000, or $.33 per share, and income from discontinued operations of $472,000, or $.05 per share. The weighted average number of common shares outstanding was 10,078,000 and 9,940,000 for the three months ended September 30, 2007 and 2006, respectively.

The Company also reported rental income of $27,812,000 and net income of $8,256,000, or $.82 per share, for the nine months ended September 30, 2007. Net income for the nine months ended September 30, 2007 includes the Company's equity in earnings of unconsolidated joint ventures of $433,000, or $.04 per share, the Company's share of gain on disposition of real estate of unconsolidated joint venture of $583,000, or $.06 per share, interest income and other income of $1,477,000, or $.15 per share, and income from discontinued operations of $1,069,000, or $.10 per share. This compares with rental income, net income and net income per share of $23,468,000, $11,997,000, and $1.21 per share, respectively, for the nine months ended September 30, 2006. Net income for the nine months ended September 30, 2006 includes the Company's equity in earnings of unconsolidated joint ventures of $1,924,000, or $.19 per share, the Company's share of gain on disposition of real estate of unconsolidated joint venture of $3,294,000, or $.33 per share, interest income and other income of $303,000, or $.03 per share, and income from discontinued operations of $1,704,000, or $.17 per share. The weighted average number of common shares outstanding was 10,045,000 and 9,924,000 for the nine months ended September 30, 2007 and 2006, respectively.

One Liberty also reported funds from operations for the three months ended September 30, 2007 of $4,723,000 ($.47 per share), compared to $4,348,000 ($.44 per share) for the three months ended September 30, 2006, and funds from operations for the nine months ended September 30, 2007 of $14,187,000 ($1.41 per share), compared to $14,547,000 ($1.47 per share), for the nine months ended September 30, 2006. Funds from operations, calculated in accordance with the NAREIT definition, adds back to net income depreciation of properties, One Liberty's share of depreciation of its unconsolidated joint ventures and amortization of capitalized leasing expenses, and deducts from net income net gain on sale of real estate, including One Liberty's share of gain on disposition of real estate by its unconsolidated joint venture.

Commenting on the results of operations and funds from operations, Fredric H. Gould, Chairman of the Board and Chief Executive Officer, noted that rental income increased by $953,000, or 11.5%, quarter over quarter, and by $4,344,000, or 18.5%, nine months over nine months. The increase in rental income in both current periods is primarily a result of property acquisitions between April and December 2006.

On the expense side, Mr. Gould noted that operating expenses increased by $356,000, or 10.5%, quarter over quarter, and by $1,908,000, or 20.1%, nine months over nine months. The increase in operating expenses three months versus three months was primarily due to increased depreciation and amortization as a result of the ownership of additional properties. Mr. Gould also noted that general and administrative expenses increased by $99,000 (6.7%) quarter versus quarter essentially due to the implementation of a compensation and services agreement effective as of January 1, 2007, an increase in the compensation of the Chairman of the Board and CEO, as of January 1, 2007, and an increase in compensation expense related to the Company's restricted stock program and in payroll and payroll related expenses. These increases were offset by a decrease in professional fees, as compared to those incurred in the September 30, 2006 quarter, in connection with a Securities and Exchange Commission and a concurrent Audit Committee investigation and litigation arising out of the activities of the Company's former president and chief executive officer.

The increased expenses nine months versus nine months was primarily a result of the increased depreciation and amortization and an increase in general and administrative expenses. General and administrative expenses increased by $696,000, or 16.7%, nine months versus nine months, due to implementation of the compensation and services agreement, an increase in the compensation of the Chairman of the Board and CEO, and an increase in restricted stock expense and in payroll and payroll related expenses. Professional fees, including fees of a compensation consultant retained by the Compensation Committee, and increases in other legal and accounting fees contributed to the increase in general and administrative expenses nine months versus nine months, offset by a decrease in professional fees incurred in connection with investigations by the Securities and Exchange Commission and our Audit Committee and legal fees relating to litigation arising out of the activities of the Company's former president and CEO.