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 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.

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. Approximately 75% of this property has been vacant since August 2025. Based on the lease in effect at October 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 $570,000 during the year ending December 31, 2026. We are pursuing the sale of this property and/or the lease of the vacant space 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 (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.

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 September 30, 2026, we own 108 properties with approximately 12.3 million square feet (including 81 industrial properties with approximately 11.1 million square feet) located in 33 states. Based on square footage, our overall occupancy rate at September 30, 2026 is approximately 97.5% and the occupancy rate by property type is: 98.3% for our industrial properties, 87.6% for our retail properties and 100% for our other properties.

Previous 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).

Current wording

Our Base Rent is approximately $83.1 million; Base Rent represents the base rent payable to us during the twelve months ending September 30, 2027 under leases in effect at October 1, 2026 (excluding tenant reimbursements and after giving effect to any abatements, concessions, deferrals or adjustments). It excludes an aggregate of $1.6 million representing the Base Rent from two industrial and three retail properties which were sold in October 2026 and November 2026 (i.e., Louisville, Kentucky, El Paso, Texas, Amarillo, Texas and Austin, Texas).

Previous wording

Property Transactions During the Three Months Ended June 30, 2026

Current wording

Property Transactions During the Three Months Ended September 30, 2026 and Subsequent Thereto

Previous wording

During the six months ended June 30, 2026 and year ended December 31, 2025, this property contributed $183,000 and $228,000 of rental income, net, $254,000 and $290,000 of operating expenses (including $46,000 and $57,000 of depreciation and amortization expense) and $0 and $53,000 of mortgage interest expense (this mortgage was paid off in June 2025), respectively.

Current wording

During the nine months ended September 30, 2026 and year ended December 31, 2025, these properties contributed $464,000 and $431,000 of rental income, net, $371,000 and $359,000 of operating expenses (including $91,000 and $83,000 of depreciation and amortization expense and excluding the impairment loss during the nine months ended September 30, 2026), and $0 and $53,000 of mortgage interest expense, respectively.

Previous wording

During the six months ended June 30, 2026 and year ended December 31, 2025, these properties contributed $858,000 and $2.6 million of rental income, net, $183,000 and $1.7 million of operating expenses (including $264,000 and $816,000 of depreciation and amortization expense), and $148,000 and $372,000 of mortgage interest expense, respectively.

Current wording

During the nine months ended September 30, 2026 and year ended December 31, 2025, these properties contributed $1.7 million and $2.2 million of rental income, net, $638,000 and $867,000 of operating expenses (including $518,000 and $713,000 of depreciation and amortization expense), and $0 and $36,000 of mortgage interest expense, respectively.

Previous wording

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

Current wording

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

Previous wording

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

Current wording

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

Previous wording

Depreciation and amortization. The increases in the three and six months ended June 30, 2026 are due primarily to $2.1 million and $4.4 million, respectively, from the properties acquired since January 1, 2025.

Current wording

Depreciation and amortization. The increases in the three and nine months ended September 30, 2026 are due primarily to $1.9 million and $6.3 million, respectively, from the properties acquired since January 1, 2025.

Previous wording

The increases were offset primarily by the inclusion, in the corresponding 2025 periods, of $410,000 and $708,000, respectively, from the properties sold since January 1, 2025.

Current wording

The increases were offset primarily by the inclusion, in the corresponding 2025 periods, of $305,000 and $996,000, respectively, from the properties sold since January 1, 2025.

Previous 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.

Current wording

Real estate expenses. The increases in the three and nine months ended September 30, 2026 are due primarily to $679,000 and $2.4 million, respectively, from the properties acquired since January 1, 2025.

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 $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.

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 approximately $780,000 and $2.6 million for the three and nine months ended September 30, 2026, respectively, and $840,000 and $2.4 million for the three and nine months ended September 30, 2025, respectively.

Previous wording

General and administrative. The increase in the six months ended June 30, 2026 is due primarily to increases of (i) $175,000 in payroll and payroll-related expenses related to higher compensation levels and (ii) $155,000 in professional fees and amounts payable pursuant to the compensation and services agreement. The increases were offset by a decrease in non-cash compensation expense of $128,000 related to reduced expectations as to the vesting of our RSUs.

Current wording

General and administrative. The increase in the nine months ended September 30, 2026 is due primarily to increases of (i) $210,000 in payroll and payroll-related expenses related to higher compensation levels, (ii) $177,000 in professional fees and (iii) $103,000 payable pursuant to the compensation and services agreement. The increase was offset by a decrease in non-cash compensation expense of $133,000 related to reduced expectations as to the vesting of our RSUs.

Previous wording

*Impairment loss.*During the three and six months ended June 30, 2026, we recorded a $142,000 impairment loss at our Chicago, Illinois property. (See Note 5 to our consolidated financial statements).

Current wording

*Impairment losses.*During the three and nine months ended September 30, 2026, we recorded impairment losses of $1.4 million and $1.6 million, respectively, at our former Chicago, Illinois property. During the three and nine months ended September 30, 2025, we recorded a $1.3 million impairment loss at our former Beachwood, 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 such year.

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 such year.

Previous wording

The following table lists the sold properties and the related gains, net, for the periods indicated:

Current wording

The following table lists the sold properties and the related gains (loss), net, for the periods indicated (see Note 5 to our consolidated financial statements):

Previous wording

Other income. The decrease in the three months ended June 30, 2026 is due to the inclusion, in the corresponding period of 2025, of (i) interest income from a seller-financing receivable that was repaid in June 2025 and (ii) equity in earnings from two unconsolidated joint venture properties in Savannah, Georgia, that were sold in August 2025. The decrease in the six months ended June 30, 2026 is due to the same factors as well as the inclusion, in the corresponding period of 2025, of income from investments in short-term U.S. treasury bills.

Current wording

Other income. The decrease in the nine months ended September 30, 2026 is due to the inclusion, in the corresponding period of 2025, of (i) interest income from a seller-financing receivable that was repaid in June 2025, (ii) equity in earnings from two unconsolidated joint venture properties in Savannah, Georgia, that were sold in August 2025 and (iii) income from more investments in short-term U.S. treasury bills.

Previous wording

The following table reflects the average interest rate on the average principal amount of outstanding mortgage debt for the periods indicated:

Current wording

The following table reflects the weighted average interest rate on the weighted average principal amount of outstanding mortgage debt for the periods indicated:

Previous 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.

Current wording

The increases in mortgage interest in the three and nine months ended September 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

The following table reflects the average interest rate on the average principal amount of outstanding credit line debt for the periods indicated:

Current wording

The following table reflects the weighted average interest rate on the weighted average principal amount of outstanding credit line debt for the period indicated:

Previous wording

The increases in credit line interest in the three and six months ended June 30, 2026 are due to increases in the weighted average principal amount of credit line debt outstanding, offset by the decrease in the weighted average interest rate.

Current wording

The increase in credit line interest in the nine months ended September 30, 2026 is due to the increase in the weighted average principal amount of credit line debt outstanding, offset by the decrease in 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 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.

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 30, 2026, was $104.8 million, including $21.0 million of cash and cash equivalents (including the credit facility’s required minimum $3.0 million average deposit maintenance balance) and up to $83.8 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 $1.0 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 $600,000 of capital expenditures and, subject to market and other conditions, repurchasing our shares under our share repurchase program) from the foregoing, as well as property financings and property sales.

Previous 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).

Current wording

At September 30, 2026, we had 58 outstanding mortgages payable secured by 72 properties in the aggregate principal amount of $538.4 million (before netting unamortized deferred financing costs of $4.5 million and mortgage intangibles of $427,000). These mortgages represent first liens on individual real estate investments with an aggregate carrying value of $826.6 million, before accumulated depreciation of $139.1 million. The mortgage payments bear interest at fixed rates ranging from 3.05% to 6.42% (a 4.98% weighted average interest rate) and mature between 2027 and 2047 (a 5.3 year weighted average remaining term to maturity).

Previous 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.

Current wording

Our credit facility with Manufacturers and Traders Trust Company and Valley National Bank 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, 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 credit 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 September 30, 2026, 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 $100.0 million and the outstanding loan balance. The credit facility requires the maintenance of at least $3.0 million in average deposit balances with the credit facility’s administrative agent. The facility also includes an 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 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.

Current wording

The 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 thereunder if proceeds of the facility were used to purchase or refinance such property.

Previous wording

We compute adjusted funds from operations, or AFFO, by adjusting FFO for straight-line rent accruals and amortization of lease intangibles, deducting from income (i) additional rent from a ground lease tenant, (ii) income on settlement of litigation, (iii) income on insurance recoveries from casualties, (iv) lease termination and assignment fees, and adding back to income (i) amortization of restricted stock and restricted stock unit compensation expense, (ii) amortization of costs in connection with its financing activities (including its share of its unconsolidated joint ventures), (iii) debt prepayment costs, (iv) amortization of lease incentives and (v) mortgage intangible assets. Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO varies from one REIT to another.

Current wording

We compute adjusted funds from operations, or AFFO, by adjusting FFO for straight-line rent accruals and amortization of lease intangibles, deducting from income (i) additional rent from a ground lease tenant, (ii) income on settlement of litigation, (iii) income on insurance recoveries from casualties, (iv) lease termination and assignment fees, and adding back to income (i) amortization of restricted stock and restricted stock unit compensation expense, (ii) amortization of costs in connection with its financing activities (including its share of its unconsolidated joint ventures), (iii) debt prepayment costs, (iv) amortization of lease incentives and (v) amortization of mortgage intangible assets. Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO varies from one REIT to another.

Previous wording

The $1.1 million, or 11.6%, increase in FFO for the three months ended June 30, 2026 from the corresponding 2025 period is due primarily to the $2.5 million increase in rental income.

Current wording

The $880,000, or 9.7%, increase in FFO for the three months ended September 30, 2026 from the corresponding 2025 period is due primarily to the $2.8 million increase in rental income.

Previous 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.

Current wording

The $935,000, or 9.3%, increase in AFFO for the three months ended September 30, 2026 from the corresponding 2025 period is due primarily to the factors impacting FFO as described immediately above.

Previous 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:

Current wording

The $3.4 million, or 11.9%, increase in FFO for the nine months ended September 30, 2026 from the corresponding 2025 period is due primarily to a:

Previous wording

The $619,000, or 2.9%, increase in AFFO for the six months ended June 30, 2026 from the corresponding 2025 period is due primarily to the factors impacting FFO as described immediately above, excluding (i) the $1.3 million increase in lease termination fee income, (ii) a $644,000 increase (to $4.7 million) in rental income, net, due to the exclusion of the amortization of straight line rent and lease-related intangibles and (iii) a $128,000 increase (to $348,000) in general and administrative expenses due to the exclusion of the amortization of restricted stock and RSU compensation.

Current wording

The $1.6 million, or 5.0%, increase in AFFO for the nine months ended September 30, 2026 from the corresponding 2025 period is due primarily to the factors impacting FFO as described immediately above, excluding (i) the $1.3 million increase in lease termination fee income, (ii) a $685,000 decrease (to $7.5 million) in rental income, net, due to the exclusion of the amortization of straight line rent and lease-related intangibles and (iii) a $133,000 increase (to $513,000) in general and administrative expenses due to the exclusion of the amortization of restricted stock and RSU compensation.

Previous 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.

Current wording

Diluted per share net income, FFO and AFFO were impacted negatively in the three and nine months ended September 30, 2026 compared to the corresponding quarters in the prior year by an average increase of approximately 224,000 and 230,000, 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.