One Liberty Properties

OLP

Market cap $444M

One Liberty Properties remains a Buy, offering an attractive yield and solid upside potential despite recent price declines and macro headwinds. One Liberty Properties' transition to industrial properties and strong 98.2% occupancy support its portfolio, but the high ~96.7% AFFO payout ratio today poses dividend safety concerns, for now. One Liberty Properties benefits from very high insider ownership, well-laddered fixed-rate debt, and asset recycling initiatives, which enhance margin of safety and future growth prospects.

– Approximately 80% of Annual Base Rent from Industrial Properties at Quarter End – – Acquired Industrial Property for $23M and Agreed to Acquire Six Building Industrial Portfolio for $53.5M After Quarter End – – Completed Sale of Non-Core Asset for Net Proceeds of $17.7M After Quarter End –

REIT dividend cuts often lead to significant losses. Unfortunately, quite a few REITs likely won't sustain their dividends. I identify popular high-yielding REITs that are at risk of cutting their dividends.

– Increased or Maintained Dividend for Over 31 Consecutive Years – GREAT NECK, N.Y., Sept. 10, 2025 (GLOBE NEWSWIRE) -- One Liberty Properties, Inc. (NYSE: OLP) today announced that its Board of Directors declared a quarterly dividend on the Company's common stock of $0.45 per share.

Diversified REITs are trading at a 24% discount to the value implied by their underlying real estate assets, based on cap rate analysis. This discount exists despite diversified REITs owning similar property mixes as pure-play REITs, suggesting a mispricing opportunity for investors. While some valuation gap is justified, I believe the current discount is excessive and presents a compelling opportunity in diversified REITs.

OLP is transitioning to industrial properties, supported by recent acquisitions and asset sales, positioning for growth amid favorable market tailwinds. The REIT offers a compelling 7.7% dividend yield, although not that well covered by AFFO, as the high payout ratio may warrant monitoring if portfolio rebalancing accelerates. OLP's well-laddered, mostly fixed-rate debt, and high insider ownership align management with long-term performance and provide resilience against rate volatility.

One Liberty Properties (OLP -0.35%), a real estate investment trust focusing on commercial properties, especially in the industrial sector, released its financial results for the second quarter, reported on August 5, 2025. However, revenue (GAAP), although up from the prior year, missed consensus projections by 2.08% at $24.479 million.

The Fed's likely rate cuts, spurred by weak jobs data, create a favorable environment for dividend stocks poised to benefit from lower interest rates. Whirlpool is deeply undervalued, with pent-up appliance demand likely to surge as mortgage rates fall and the housing market thaws. One Liberty Properties offers an 8% yield, high insider ownership, and strong dividend coverage, making it compelling if rates decline.

– Enters Agreement to Acquire Industrial Property for $24.0 Million Bringing 2025 Acquisitions to Over $112 Million –

One Liberty Properties, a diversified industrial/retail REIT, gets a hold for my first-ever coverage. Steady portfolio growth, high occupancy levels, and relatively proven demand are all positives, as well as geographic diversification. Although it is not much of a proven dividend grower, the 7% fwd yield may attract high-yield investors.