One Liberty Properties Provides Business Update

GREAT NECK, N.Y., April 28, 2020 (GLOBE NEWSWIRE) -- One Liberty Properties, Inc. (NYSE: OLP), today issued an update on its business in light of the ongoing COVID-19 pandemic. 

Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty commented, “The global spread of the COVID-19 virus is affecting us all.  During these unprecedented times, One Liberty remains committed to the health and safety of our tenants and employees.  We continue to monitor events and take steps to mitigate the potential impact and risks to the Company.  While navigating through this period of uncertainty, we remain confident in the strength of our portfolio and our ability to weather the current volatile period.”

Operations:

The following is a summary of the Company’s March 2020 and April 2020 consolidated cash base rent collections as of April 27, 2020:

• $6.1 million, or 100% of cash base rent required to be paid in March has been collected.
• $4.3 million, or approximately 70.7% of cash base rent required to be paid in April has been collected.

As of April 27, 2020, tenants accounting for an aggregate of approximately 40% of the 2020 cash base rent have requested rent relief because their operations have been impacted by the current virus-related shutdown.  One Liberty has completed or is in discussions with those tenants and, where warranted, expects to give current relief and seek lease modifications that will be favorable to both parties. 

One Liberty is working with its lenders at mortgaged properties where the tenant collections are insufficient to cover full debt service.  The Company is seeking temporary relief which has been received in several situations.

Balance Sheet:

The Company’s balance sheet remains well-positioned to weather the current period of uncertainty.  At April 27, 2020, the Company had $9.6 million of cash and cash equivalents (net of the credit facility’s required $3 million deposit maintenance balance). At April 27, 2020, the Company can borrow up to (i) $36.2 million for acquisitions and (ii) $20 million for renovation expenses, under its credit facility.  The Company has borrowed the $10 million available for operating expenses under that facility.