One Liberty Properties reported higher revenue and stronger funds-from-operations measures for the third quarter, as industrial acquisitions lifted rental income. The real estate investment trust also continued shifting its portfolio toward industrial properties, which accounted for about 86% of base rent at quarter-end, and announced additional property sales and a planned industrial-portfolio purchase.
Net income per share fell sharply from a year earlier, mainly because the prior-year quarter included a much larger gain from property sales. The company reported year-over-year growth in both FFO and AFFO per share, measures commonly used to assess REIT performance.
Key details
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Revenue rose 11.9% to $26.6 million. Net rental income increased by $2.8 million year over year. Acquisitions contributed $3.4 million in additional rental income, partly offset by $661,000 from properties sold.
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Net income was $0.04 per diluted share, down from $0.48 a year earlier. One Liberty attributed the decline principally to a smaller gain on real estate sales: $887,000 in the latest quarter, compared with $9.1 million in the third quarter of 2025.
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FFO and AFFO per share increased. FFO per diluted share rose 7.1% to $0.45, up $0.03 from a year earlier. AFFO per diluted share rose 8.7% to $0.50, up $0.04. The company said the growth was driven primarily by higher rental income.
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Occupancy was 97.5% at quarter-end. Industrial properties represented approximately 86% of base rent.
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One Liberty bought an industrial building in Ocala, Florida. The 100,000-square-foot property was acquired for $11.3 million.
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A larger industrial acquisition is planned in Wisconsin. The company signed an agreement to buy a four-building, 277,000-square-foot portfolio in the Milwaukee metropolitan area for $34 million. Closing was expected in the fourth quarter of 2026.
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Property sales generated $30.7 million in net proceeds during and after the quarter. During the quarter, One Liberty sold two non-core retail properties for $7.8 million in total, receiving $6.2 million in net proceeds. The company reported a $887,000 net gain, alongside a $1.4 million impairment loss. After quarter-end, it sold five properties—two industrial and three retail—for $25.1 million in aggregate, with net proceeds of approximately $24.5 million.
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The company has a new $100 million revolving credit facility. One Liberty said the facility extends maturity and increases financial flexibility; the release did not provide further terms.
What changes for investors
One Liberty is continuing to redirect capital from retail and other non-core assets into industrial real estate. The disclosed sales and acquisitions reflect that shift, while the Milwaukee purchase would add four properties to the industrial portfolio if it closes. The quarter’s lower net income per share largely reflects the comparison with an unusually large property-sale gain in 2025, while revenue, FFO per share and AFFO per share all increased.