ONE LIBERTY PROPERTIES INC

Previous wording

We face challenges (i) due to the volatile economic environment (including the impact of threatened and/or imposed tariffs, and the related possibility of trade wars and the impact of the foregoing on us and in particular, on our seaport based industrial/warehouse properties), and (ii) at The Vue, our Beachwood, Ohio property. Our cash flow and profitability will be adversely impacted if these issues are not resolved in a satisfactory manner.

Current wording

We face challenges due to the volatile economic environment (including the impact of threatened and/or imposed tariffs, and the related possibility of trade wars and the impact of the foregoing on us and in particular, on our seaport based industrial/warehouse properties). Our cash flow and profitability will be adversely impacted if these challenges are not resolved in a satisfactory manner.

Previous wording

We acquire, own and manage a geographically diversified portfolio consisting primarily of industrial properties, many of which are subject to long-term net leases. As of June 30, 2025, we own 103 properties (including two properties owned by consolidated joint ventures and two properties owned by unconsolidated joint ventures) located in 32 states. Based on square footage, our occupancy rate at June 30, 2025 is approximately 98.8%.

Current wording

We acquire, own and manage a portfolio consisting primarily of industrial properties. As of September 30, 2025, we own 98 properties (including 61 industrial properties) located in 30 states. Based on square footage, our occupancy rate at September 30, 2025 is approximately 98.2%.

Previous wording

In acquiring and disposing of properties, among other things, we evaluate the terms of the leases, the credit of the existing tenants, the terms and conditions of the related financing arrangement (including any contemplated financing) and engage in a fundamental analysis of the real estate to be bought or sold. This fundamental analysis takes into account, among other things, the estimated value of the property, local competition and demographics, and the ability to re-rent or dispose of the property on favorable terms upon lease expiration or early termination. In addition, in evaluating property sales, we take

Current wording

In acquiring and disposing of properties, among other things, we evaluate the terms of the leases, the credit of the existing tenants, the terms and conditions of the related financing arrangement (including any contemplated financing) and engage in a fundamental analysis of the real estate to be bought or sold. This fundamental analysis takes into account, among other things, the estimated value of the property, local competition and demographics, and the ability to re-rent or dispose of the property on favorable terms upon lease expiration or early termination. In addition, in evaluating property sales, we take into account, among other things, the property type (*i.e.,*industrial, retail or other), our perception of the property’s long-term

Previous wording

into account, among other things, the property type (*i.e.,*industrial, retail or other), our perception of the property’s long-term prospects (including the likelihood for, and the extent of, any further appreciation or diminution in value), the term remaining on the related lease and mortgage debt, the price and other terms and conditions for the sale of such property and the returns anticipated to be generated from the reinvestment ofthe net proceeds to us from such property sale.

Current wording

prospects (including the likelihood for, and the extent of, any further appreciation or diminution in value), the term remaining on the related lease and mortgage debt, the price and other terms and conditions for the sale of such property and the returns anticipated to be generated from the reinvestment ofthe net proceeds to us from such property sale.

Previous wording

Our 2026 base rent is approximately $75.4 million and represents, after giving effect to any abatements, concessions, deferrals or adjustments, the base rent (excluding tenant reimbursements) payable to us during the twelve months ending June 30, 2026 under leases in effect at June 30, 2025.

Current wording

Our 2026 base rent is approximately $77.4 million and represents, after giving effect to any abatements, concessions, deferrals or adjustments, the base rent (excluding tenant reimbursements) payable to us during the twelve months ending September 30, 2026 under leases in effect at September 30, 2025.

Previous wording

On June 24, 2025, we entered into a contract to acquire a 210,600 square foot, single-tenant industrial property located in Blythewood, South Carolina for $24.0 million. In connection with the acquisition, we anticipate obtaining new mortgage debt of approximately $14.0 million bearing an interest rate of 5.77% (interest only) and maturing in 2030. We estimate the annual base rent will be approximately $1.5 million (with annual base rent increases of 3.5%) and anticipate the closing will occur during the three months ending September 30, 2025.

Current wording

On October 13, 2025, we entered into a contract to acquire a 397,440 square foot, six-building, multi-tenant industrial property (the “Pittsburgh Portfolio”) located in Sewickley, Pennsylvania, part of the Pittsburgh MSA, for $53.5 million. In connection with the acquisition, we anticipate obtaining new mortgage debt of approximately $32.4 million bearing an interest rate of 5.45% (interest only for five years) and maturing in 2032. We anticipate paying the balance of the purchase price from our available cash, including the net proceeds from property sales and, if needed, our line of credit. We estimate the annual base rent will be approximately $3.4 million (with annual base rent increases ranging from 2.0% to 3.0%) and anticipate the closing will occur during the three months ending December 31, 2025.

Previous wording

The changes in same store rental income during the three and six months ended June 30, 2025 are due primarily to increases of:

Current wording

The changes in same store rental income during the three and nine months ended September 30, 2025 are due primarily to increases of:

Previous wording

The increases were offset during the three and six months ended June 30, 2025 by decreases in rental income of:

Current wording

The increases were offset during the three and nine months ended September 30, 2025 by decreases in rental income of $652,000 and $1.3 million, respectively, from lease expirations at various properties.

Previous wording

In March 2024, a consolidated joint venture in Lakewood, Colorado, in which we hold a 90% interest, received a lease termination fee of $250,000 due to the early termination of a lease in connection with the sale of the related restaurant parcel.

Current wording

In the nine months ended September 30, 2025, we recognized a lease termination fee of $66,000 from an industrial tenant in a lease buy-out transaction. The space was simultaneously re-leased to a new industrial tenant. In the nine months ended September 30, 2024, a consolidated joint venture in Lakewood, Colorado, in which we held a 90% interest, received a lease termination fee of $250,000 due to the early termination of a lease in connection with the sale of the related restaurant parcel.

Previous wording

Depreciation and amortization. The increases in the three and six months ended June 30, 2025 are due primarily to (i) $1.2 million and $2.2 million, respectively, from the properties acquired since January 1, 2024, and (ii) $114,000 and $241,000, respectively, from improvements at several properties.

Current wording

Depreciation and amortization. The increases in the three and nine months ended September 30, 2025 are due primarily to (i) $1.1 million and $3.3 million, respectively, from the properties acquired since January 1, 2024, and (ii) in the nine months ended September 30, 2025, $321,000 from improvements at several properties.

Previous wording

The increases were offset primarily by (i) the inclusion, in the corresponding 2024 periods, of $289,000 and $614,000, respectively, from the properties sold since January 1, 2024, and (ii) decreases of $249,000 and $489,000, respectively, related to tenant origination costs at several properties that prior to June 30, 2025 were fully amortized.

Current wording

The increases were offset during the three and nine months ended September 30, 2025 primarily by (i) the inclusion, in the corresponding 2024 periods, of $358,000 and $972,000, respectively, from the properties sold since January 1, 2024, and (ii) decreases of $264,000 and $684,000, respectively, related to tenant origination costs at several properties that prior to September 30, 2025 were fully amortized.

Previous wording

Real estate expenses. The increases in the three and six months ended June 30, 2025 are due primarily to (i) $489,000 and $558,000, respectively, primarily related to a re-assessment of real estate taxes at our El Paso, Texas property, (ii) $468,000 and $825,000, respectively, from the properties acquired since January 1, 2024, and (iii) $161,000 and $414,000, respectively, primarily related to common area maintenance and insurance expense at several properties, none of which were individually significant.

Current wording

Real estate expenses. The increases in the three and nine months ended September 30, 2025 are due primarily to (i) $522,000 and $1.3 million, respectively, from the properties acquired since January 1, 2024, (ii) $370,000 and $1.0 million, respectively, related to real estate taxes at several properties, and (iii) in the nine months ended September 30, 2025, $505,000 related to common area maintenance and insurance expense at several properties, none of which were individually significant.

Previous wording

The increase was offset by the inclusion, in the corresponding 2024 periods, of $203,000 and $314,000, respectively, from the properties sold since January 1, 2024.

Current wording

The increase was offset by the inclusion, in the corresponding 2024 periods, of $387,000 and $787,000, respectively, from the properties sold since January 1, 2024.

Previous wording

General and administrative. The increases in the three and six months ended June 30, 2025 are due primarily to an increase in compensation expense of $142,000 and $311,000, respectively, from (i) non-cash expense related to the amortization of our RSUs, and (ii) higher levels of payroll and payroll-related expenses.

Current wording

General and administrative. The increases (i) in the three and nine months ended September 30, 2025 are due primarily to increases of non-cash expense of $151,000 and $354,000, respectively, primarily from the re-assessment of the achievability of performance metrics related to the RSUs, and (ii) of $153,000 for the nine months ended September 30, 2025, is primarily due to higher levels of payroll and payroll-related expenses.

Previous wording

Impairment loss. During the three and six months ended June 30, 2024, we recorded a $1.1 million impairment loss at our former Hamilton, Ohio property. (See Note 5 to our consolidated financial statements).

Current wording

Impairment loss. During the three and nine months ended September 30, 2025, we recorded a $1.3 million impairment loss at our Beachwood, Ohio property. During the nine months ended September 30, 2024, we recorded a $1.1 million impairment loss at our former Hamilton, Ohio property. (See Note 5 to our consolidated financial statements).

Previous wording

State tax expense (benefit). During the six months ended June 30, 2025, our state tax expense was offset by a $135,000 refund from Tennessee related to franchise taxes paid in 2023, as the state amended the method of calculating such taxes, resulting in an overpayment in 2023.

Current wording

State tax expense. During the nine months ended September 30, 2025, our state tax expense was offset by a $135,000 refund from Tennessee related to franchise taxes paid in 2023, as the state amended the method of calculating such taxes, resulting in an overpayment in 2023.

Previous wording

Other income. The decreases in the three and six months ended June 30, 2025 are due to decreases of $113,000 and $228,000, respectively, in interest income from lesser amounts invested and available to be invested in short-term U.S. treasury bills.

Current wording

Other income. The three and nine months ended September 30, 2025 primarily reflect decreases in interest income from less amounts invested in short-term U.S. treasury bills.

Previous wording

The increases in mortgage interest in the three and six months ended June 30, 2025 are due to increases in the weighted average principal amount of mortgage debt outstanding and the weighted average interest rate.

Current wording

The increases in mortgage interest in the three and nine months ended September 30, 2025 are due to increases in the weighted average principal amount of mortgage debt outstanding and the weighted average interest rate.

Previous wording

We anticipate that our mortgage interest expense will increase (and our earnings and the amount we are required to distribute to stockholders to maintain our REIT status may decrease) as we refinance our mortgages maturing through 2027 because current comparable mortgage interest rates are generally higher than the weighted average interest rate on such maturing mortgages. The weighted average interest rate of (i) our mortgages maturing in the six months ending December 31, 2025 and for the years ending December 31, 2026 and 2027 is 3.78%, 3.91% and 3.64%, respectively, and (ii) the mortgages we obtained in connection with the acquisitions completed during the six months ended June 30, 2025 is 6.21%.

Current wording

We anticipate that our mortgage interest expense will increase (and our earnings and the amount we are required to distribute to stockholders to maintain our REIT status may decrease) as we refinance our mortgages maturing through 2027 because current comparable mortgage interest rates are generally higher than the weighted average interest rate on such maturing mortgages. The weighted average interest rate of (i) our mortgages maturing in the three months ending December 31, 2025 and for the years ending December 31, 2026 and 2027 is 3.78%, 3.91% and 3.64%, respectively, and (ii) the mortgages we obtained in connection with the acquisitions completed during the nine months ended September 30, 2025 is 6.11%.

Previous wording

The weighted average principal amount outstanding was $11.9 million and $6.5 million for the three and six months ended June 30, 2025, respectively, and the weighted average interest rate was 6.07% for each of the three and six months ended June 30, 2025.

Current wording

The Company paid off the principal balance outstanding on the credit facility in July 2025. The weighted average principal amount outstanding was $4.5 million and the weighted average interest rate was 6.07% for the nine months ended September 30, 2025.

Previous wording

There was no balance outstanding on the credit line during the three and six months ended June 30, 2024. The interest expense of $63,000 and $126,000 for the three and six months ended June 30, 2024, respectively, constitutes the unused facility fee.

Current wording

There was no balance outstanding on the credit line during the three and nine months ended September 30, 2024. The interest expense of $64,000 and $189,000 for the three and nine months ended September 30, 2024, respectively, constitutes the unused facility fee.

Previous wording

Our sources of liquidity and capital include cash flow from operations, cash and cash equivalents, borrowings under our credit facility, refinancing existing mortgage loans, obtaining mortgage loans secured by our unencumbered properties, issuance of our equity securities and property sales. Our available liquidity at August 1, 2025, was $115.5 million, including $15.5 million of cash and cash equivalents (including the credit facility’s required minimum $3.0 million average deposit maintenance balance) and up to $100.0 million available under our credit facility. At August 1, 2025, the facility is available for the acquisition of commercial real estate, repayment of mortgage debt, and up to $40.0 million for renovation and operating expense purposes.

Current wording

Our sources of liquidity and capital include cash flow from operations, cash and cash equivalents, borrowings under our credit facility, refinancing existing mortgage loans, obtaining mortgage loans secured by our unencumbered properties, issuance of our equity securities and property sales. Our available liquidity at October 31, 2025, was $109.4 million, including $9.4 million of cash and cash equivalents (including the credit facility’s required minimum $3.0 million average deposit maintenance balance) and up to $100.0 million available under our credit facility. At October 31, 2025, the facility is available for the acquisition of commercial real estate, repayment of mortgage debt, and up to $40.0 million for renovation and operating expense purposes.

Previous wording

We expect to meet our short-term (i.e., one year or less) and long-term (i) operating cash requirements (including debt service and anticipated dividend payments) principally from cash flow from operations, our available cash and cash equivalents, proceeds from and, to the extent permitted and needed, our credit facility and (ii) investing and financing cash requirements (including an estimated aggregate of $2.5 million of capital expenditures) from the foregoing, as well as property financings, property sales and sales of our common stock.

Current wording

We expect to meet our short-term (i.e., one year or less) and long-term (i) operating cash requirements (including debt service and anticipated dividend payments) principally from cash flow from operations, our available cash and cash equivalents, proceeds from and, to the extent permitted and needed, our credit facility and (ii) investing and financing cash requirements (including an estimated aggregate of $3.0 million of capital expenditures) from the foregoing, as well as property financings, property sales and sales of our common stock.

Previous wording

At June 30, 2025, we had 59 outstanding mortgages payable secured by 61 properties in the aggregate principal amount of $452.8 million (before netting unamortized deferred financing costs of $3.9 million and mortgage intangibles of $599,000). These mortgages represent first liens on individual real estate investments with an aggregate carrying value of $705.7 million, before accumulated depreciation of $128.5 million. After giving effect to interest rate swap agreements, the mortgage payments bear interest at fixed rates ranging from 3.05% to 6.42% (a 4.76% weighted average interest rate) and mature between 2025 and 2047 (a 6.3 year weighted average remaining term to maturity).

Current wording

At September 30, 2025, we had 59 outstanding mortgages payable secured by 61 properties in the aggregate principal amount of $463.1 million (before netting unamortized deferred financing costs of $3.9 million and mortgage intangibles of $564,000). These mortgages represent first liens on individual real estate investments with an aggregate carrying value of $723.8 million, before accumulated depreciation of $130.5 million. After giving effect to interest rate swap agreements, the mortgage payments bear interest at fixed rates ranging from 3.05% to 6.42% (a 4.79% weighted average interest rate) and mature between 2025 and 2047 (a 6.0 year weighted average remaining term to maturity).

Previous wording

The following table sets forth, as of June 30, 2025, information with respect to our mortgage debt that is payable during the six months ending December 31, 2025 and for each of the subsequent twelve months through December 31, 2028:

Current wording

The following table sets forth, as of September 30, 2025, information with respect to our mortgage debt:

Previous wording

Our credit facility provides that subject to borrowing base requirements, we can borrow up to $100.0 million for the acquisition of commercial real estate, repayment of mortgage debt, and renovation and operating expense purposes; provided, that if used for renovation and operating expense purposes, the amount outstanding for such purposes will not exceed the lesser of $40.0 million and 40% of the borrowing base. The facility matures December 31, 2026 and bears interest equal to 30-day SOFR plus the applicable margin. The applicable margin ranges from 175 basis points if our ratio of total debt to total value (as calculated pursuant to the facility) is equal to or less than 50%, increasing to a maximum of 275 basis points if such ratio is greater than 60%. The applicable margin was 175 basis points for each of the six months ended June 30, 2025 and 2024. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and $100.0 million. The credit facility requires the maintenance of $3.0 million in average deposit balances. The interest rate on the facility was 6.07% and 6.10% at June 30, 2025 and August 1, 2025.

Current wording

Our credit facility provides that subject to borrowing base requirements, we can borrow up to $100.0 million for the acquisition of commercial real estate, repayment of mortgage debt, and renovation and operating expense purposes; provided, that if used for renovation and operating expense purposes, the amount outstanding for such purposes will not exceed the lesser of $40.0 million and 40% of the borrowing base. The facility matures December 31, 2026 and bears interest equal to 30-day SOFR plus the applicable margin. The applicable margin ranges from 175 basis points if our ratio of total debt to total value (as calculated pursuant to the facility) is equal to or less than 50%, increasing to a maximum of 275 basis points if such ratio is greater than 60%. The applicable margin was 175 basis points for each of the nine months ended September 30, 2025 and 2024. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and $100.0 million. The credit facility requires the maintenance of $3.0 million in average deposit balances. The interest rate on the facility was 6.03% and 5.88% at September 30, 2025 and October 31, 2025.

Previous wording

The $449,000, or 4.9%, increase in FFO for the three months ended June 30, 2025 from the corresponding 2024 period is due primarily to a $2.7 million increase in rental income, net.

Current wording

The $136,000, or 1.5%, decrease in FFO for the three months ended September 30, 2025 from the corresponding 2024 period is due primarily to a:

Previous wording

The $392,000, or 3.8%, increase in AFFO for the three months ended June 30, 2025 from the corresponding 2024 period is due primarily to the factors impacting FFO as described immediately above.

Current wording

The $173,000, or 1.7%, increase in AFFO for the three months ended September 30, 2025 from the corresponding 2024 period is due primarily to the factors impacting FFO as described immediately above, including a (i) $180,000 increase (to $1.7 million) in rental income, net, due to the exclusion of the amortization of straight line rent and lease-related intangibles and (ii) $151,000 decrease (to $91,000) in general and administrative expenses due to the exclusion of the amortization of restricted stock and RSU compensation.

Previous wording

The $463,000, or 2.5%, increase in FFO for the six months ended June 30, 2025 from the corresponding 2024 period is due primarily to a:

Current wording

The $327,000, or 1.2%, increase in FFO for the nine months ended September 30, 2025 from the corresponding 2024 period is due primarily to a:

Previous wording

The $692,000, or 3.4%, increase in AFFO for the six months ended June 30, 2025 from the corresponding 2024 period is primarily due to the factors impacting FFO as described immediately above, other than the $184,000 decrease in lease termination fee income.

Current wording

The $865,000, or 2.9%, increase in AFFO for the nine months ended September 30, 2025 from the corresponding 2024 period is primarily due to the factors impacting FFO as described immediately above, including a $354,000 decrease (to $297,000) in general and administrative expenses due to the exclusion of the amortization of restricted stock and RSU compensation and excluding the $184,000 decrease in lease termination fee income.

Previous wording

Diluted per share net income, FFO and AFFO were impacted negatively in the three and six months ended June 30, 2025 compared to the corresponding quarter in the prior year by an average increase of approximately 292,000 and 323,000, respectively, in the weighted average number of shares of common stock outstanding as a result of stock issuances in connection with the equity incentive and dividend reinvestment programs.

Current wording

Diluted per share net income, FFO and AFFO were impacted negatively in the three and nine months ended September 30, 2025 compared to the corresponding quarter in the prior year by an average increase of approximately 214,000 and 248,000, respectively, in the weighted average number of shares of common stock outstanding as a result of stock issuances in connection with the equity incentive and dividend reinvestment programs.