ONE LIBERTY PROPERTIES INC

Previous wording

As reported in our Annual Report on Form 10-K for the year ended December 31, 2025, we recorded an impairment charge of $3.3 million with respect to our retail property located at St. Louis Park, Minnesota. At March 31, 2026, approximately 75% of the property is vacant. Based on the lease in effect at April 1, 2026, we expect this property to generate rental income (excluding tenant reimbursements) of $505,000 and in 2025, we generated $917,000 of rental income (excluding tenant reimbursements) from this property. We estimate that this property will incur unreimbursed real estate expenses of approximately $400,000 during the nine months ending December 31, 2026. We are pursuing the sale and/or lease of this property and may be required to take additional impairment(s) with respect thereto.

Current wording

As reported in our Annual Report on Form 10-K for the year ended December 31, 2025, we recorded an impairment charge of $3.3 million with respect to our retail property located at St. Louis Park, Minnesota. At June 30, 2026, approximately 75% of the property is vacant. Based on the lease in effect at July 1, 2026, we expect this property to generate rental income (excluding tenant reimbursements) of approximately $500,000 for 2026 and, in 2025, we generated $917,000 of rental income (excluding tenant reimbursements) from this property. We estimate that this property will incur unreimbursed real estate expenses of approximately $260,000 during the six months ending December 31, 2026. We are pursuing the sale and/or lease of this property and may be required to take additional impairment(s) with respect thereto.

Previous wording

We acquire, own and manage a geographically diversified portfolio consisting primarily of industrial properties. As of March 31, 2026, we own 111 properties with approximately 12.4 million square feet, (including 79 industrial properties with approximately 11.0 million square feet) located in 33 states. Based on square footage, our occupancy rate at March 31, 2026 is approximately 98.8%.

Current wording

We acquire, own and manage a geographically diversified portfolio consisting primarily of industrial properties (and in particular, warehouse and distribution facilities). As of June 30, 2026, we own 109 properties with approximately 12.2 million square feet (including 80 industrial properties with approximately 11.0 million square feet) located in 33 states. Based on square footage, our overall occupancy rate at June 30, 2026 is approximately 97.6% and the occupancy rate by property type is: 98.3% for our industrial properties, 87.8% for our retail properties and 100% for our other properties.

Previous wording

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 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

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 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 Base Rent is approximately $83.2 million; Base Rent represents the base rent payable to us during the twelve months ending March 31, 2027 under leases in effect at April 1, 2026 (excluding tenant reimbursements and after giving effect to any abatements, concessions, deferrals or adjustments). It excludes an aggregate of $2.2 million representing the Base Rent of three retail properties which were sold or are anticipated to be sold during the three months ending June 30, 2026.

Current wording

Our Base Rent is approximately $84.0 million; Base Rent represents the base rent payable to us during the twelve months ending June 30, 2027 under leases in effect at July 1, 2026 (excluding tenant reimbursements and after giving effect to any abatements, concessions, deferrals or adjustments). It excludes an aggregate of $619,000 representing the Base Rent of two retail properties which we sold in July 2026 and anticipate selling in August 2026 (i.e., Monroeville, Pennsylvania and Chicago, Illinois).

Previous wording

In January 2026, we entered into a contract, as thereafter amended, to sell an Advance Auto Parts retail property located in South Euclid, Ohio for $1.5 million. The property was sold on April 16, 2026 and the net proceeds were approximately $600,000, after repaying approximately $794,000 of the related mortgage debt. The sale will result in a gain of approximately $118,000, which will be recognized as Gain on sale of real estate, net, in the consolidated statements of income for the three and six months ending June 30, 2026.

Current wording

In May 2026, we entered into a contract to sell a retail property leased to Men’s Wearhouse, located in Monroeville, Pennsylvania for $2.1 million. The property was sold on July 28, 2026, the net proceeds therefrom were approximately $1.9 million and the sale resulted in a gain of approximately $887,000, which will be recognized as Gain on sale of real estate, net, in the consolidated statements of income for the three and nine months ending September 30, 2026.

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 three months ended March 31, 2026 and 2025. 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 5.42% and 5.40% at March 31, 2026 and May 1, 2026.

Current wording

The New Facility provides that subject to borrowing base requirements, we can borrow up to $100.0 million for general corporate purposes. The facility is scheduled to mature on December 31, 2029, subject to a built-in right to extend such maturity to December 31, 2030 (the “Extension Feature”), upon satisfaction of certain conditions and payment of a nominal extension fee. The facility bears interest equal to 30-day SOFR plus the applicable margin, which 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 250 basis points if such ratio is greater than 55%. As of the date we entered into the New Facility the applicable margin was 175 basis points. There is an unused facility fee ranging from 0.20% to 0.25% per annum on the difference between the outstanding loan balance and $100.0 million. The credit facility requires, at any time, the maintenance of at least $3.0 million in average deposit balances with the facility’s administrative agent. The facility also includes an accordion feature (the “Accordion Feature”) pursuant to which we can request up to three increases in the total commitments by an amount not to exceed $50.0 million in the aggregate, subject to satisfaction of specified conditions.

Previous wording

The terms of our credit facility include certain restrictions and covenants which may limit, among other things, the incurrence of liens, and which require compliance with financial ratios relating to, among other things, the minimum amount of tangible net worth, the minimum amount of debt service coverage, the minimum amount of fixed charge coverage, the maximum amount of debt to value, the minimum level of net income, certain investment limitations and the minimum value of unencumbered properties and the number of such properties. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under our credit facility. At March 31, 2026, we were in compliance with the covenants under this facility.

Current wording

The New Facility includes certain restrictions and covenants which limit, among other things, the incurrence of liens, and which require ongoing compliance with certain financial ratios relating to, among other things, the minimum amount of tangible net worth, the minimum amount of debt service coverage, the minimum amount of fixed charge coverage, the maximum amount of total debt to total value and the minimum value of unencumbered properties and the number of such properties. The facility also contains certain investment limitations. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under the New Facility if proceeds of the facility were used to purchase or refinance such property.

Previous wording

The change in same store rental income is due primarily to increases of:

Current wording

The changes in same store rental income during the three and six months ended June 30, 2026 are due primarily to increases of:

Previous wording

The increases were offset by decreases in rental income of:

Current wording

The increases were offset during the three and six months ended June 30, 2026 by decreases in rental income of:

Previous wording

Real estate expenses. The increase is due primarily to (i) $919,000 from the properties acquired since January 1, 2025, and (ii) $290,000 primarily related to common area maintenance and utilities at several properties, none of which were individually significant.

Current wording

Real estate expenses. The increases in the three and six months ended June 30, 2026 are due primarily to (i) $819,000 and $1.7 million, respectively, from the properties acquired since January 1, 2025, and (ii) $186,000 and $455,000, respectively, primarily related to common area maintenance and insurance expense at several properties, none of which were individually significant.

Previous wording

The increase was offset by (i) the inclusion, in the corresponding 2025 period, of $309,000 from the properties sold since January 1, 2025, and (ii) decreases of $226,000 related to real estate tax expense primarily at our El Paso, Texas property for which we collected a refund on taxes paid in a prior year.

Current wording

The increase was offset by the inclusion, in the corresponding 2025 periods, of $757,000 and $1.1 million, respectively, from the properties sold since January 1, 2025, and (ii) decreases of $210,000 and $370,000, respectively, related to real estate tax expense primarily at our El Paso, Texas property for which we collected a refund on taxes paid in a prior year.

Previous wording

A substantial portion of real estate expenses is rebilled to tenants and is included in Rental income, net, on the consolidated statements of income. The portion of real estate expenses not reimbursed by our tenants was $1.1 million and $776,000 for the three months ended March 31, 2026 and 2025, respectively.

Current wording

A substantial portion of real estate expenses is rebilled to tenants and is included in Rental income, net, on the consolidated statements of income. The portion of real estate expenses not reimbursed by our tenants was $690,000 and $1.8 million for the three and six months ended June 30, 2026, respectively, and $780,000 and $1.6 million for the three and six months ended June 30, 2025, respectively.

Previous wording

State tax expense (benefit). During the three months ended March 31, 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 such year.

Current 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 such year.

Previous wording

The increase in mortgage interest is due to increases in the weighted average principal amount of mortgage debt outstanding and, to a lesser extent, the weighted average interest rate.

Current wording

The increases in mortgage interest in the three and six months ended June 30, 2026 are due to increases in the weighted average principal amount of mortgage debt outstanding and, to a lesser extent, the weighted average interest rate.

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 May 1, 2026, was $79.8 million, including $5.3 million of cash and cash equivalents (including the credit facility’s required minimum $3.0 million average deposit maintenance balance) and up to $74.5 million available under our credit facility. At May 1, 2026, the facility is available for the acquisition of commercial real estate, repayment of mortgage debt, and up to $38.5 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 August 3, 2026, was $110.6 million, including $15.4 million of cash and cash equivalents (including the New Credit Facility’s required minimum $3.0 million average deposit maintenance balance) and up to $95.2 million available thereunder.

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 $1.1 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 $1.0 million of capital expenditures) from the foregoing, as well as property financings, property sales and sales of our common stock.

Previous wording

At March 31, 2026, we had 61 outstanding mortgages payable secured by 74 properties in the aggregate principal amount of $534.7 million (before netting unamortized deferred financing costs of $4.7 million and mortgage intangibles of $496,000). These mortgages represent first liens on individual real estate investments with an aggregate carrying value of $830.8 million, before accumulated depreciation of $140.0 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 4.91% weighted average interest rate) and mature between 2026 and 2047 (a 5.6 year weighted average remaining term to maturity).

Current wording

At June 30, 2026, we had 60 outstanding mortgages payable secured by 73 properties in the aggregate principal amount of $533.4 million (before netting unamortized deferred financing costs of $4.6 million and mortgage intangibles of $462,000). These mortgages represent first liens on individual real estate investments with an aggregate carrying value of $828.0 million, before accumulated depreciation of $134.6 million. After giving effect to an interest rate swap, the mortgage payments bear interest at fixed rates ranging from 3.05% to 6.42% (a 4.94% weighted average interest rate) and mature between 2026 and 2047 (a 5.4 year weighted average remaining term to maturity).

Previous wording

We intend to make debt amortization payments from operating cash flow and, although no assurance can be given that we will be successful in this regard, generally intend to refinance, extend or pay off the mortgage loans which mature from 2026 through 2029. We generally intend to repay the amounts not refinanced or extended from our existing funds and sources of funds, including our available cash, proceeds from the sale of our common stock and our credit facility (to the extent available).

Current wording

We intend to make debt amortization payments from operating cash flow and although no assurance can be given that we will be successful in this regard, generally intend to refinance, extend or pay off the mortgage loans which mature from 2026 through 2029. We generally intend to repay the amounts not refinanced or extended from our existing funds and other sources of funds, including our available cash, proceeds from the sale of our common stock and our credit facility (to the extent available).

Previous wording

Typically, we utilize funds from our credit facility to acquire a property and, thereafter secure long-term, fixed rate mortgage debt on such property. We apply the proceeds from the mortgage loan to repay borrowings under the credit facility, thus providing us with the ability to re-borrow under the credit facility for the acquisition of additional properties.

Current wording

We utilize funds from our credit facility, as needed, to acquire a property and, thereafter secure long-term, fixed rate mortgage debt on such property. We apply the proceeds from the mortgage loan to repay borrowings under the credit facility, thus providing us with the ability to re-borrow under the credit facility for the acquisition of additional properties.

Previous wording

The $11,000, or 0.1%, increase in AFFO for the three months ended March 31, 2026 from the corresponding 2025 period is due primarily to the factors impacting FFO as described immediately above, excluding the $1.3 million lease termination fee income.

Current wording

The $607,000, or 5.7%, increase in AFFO for the three months ended June 30, 2026 from the corresponding 2025 period is due primarily to the factors impacting FFO as described immediately above, excluding a $584,000 increase (to $1.9 million) in rental income, net, due to the exclusion of the amortization of straight line rent and lease-related intangibles.

Previous wording

The $1.4 million, or 14.1%, increase in FFO for the three months ended March 31, 2026 from the corresponding 2025 period is due primarily to:

Current wording

The $2.5 million, or 12.9%, increase in FFO for the six months ended June 30, 2026 from the corresponding 2025 period is due primarily to:

Previous wording

Diluted per share net income, FFO and AFFO were impacted negatively in the three months ended March 31, 2026 compared to the corresponding quarter in the prior year by an average increase of approximately 179,000 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 six months ended June 30, 2026 compared to the corresponding quarters in the prior year by an average increase of approximately 236,000 and 234,000, 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.