One Liberty Properties, Inc. (NYSE: OLP), announced today that it sold a 166,000 square foot industrial property located in Philadelphia, Pennsylvania for $14.8 million, of which approximately $5.3 million was used to pay off the related mortgage debt. In 2015, this property generated approximately $1.1 million of GAAP rental income. One Liberty estimates that in the second quarter of 2016, it will recognize an approximate $5.6 million gain on the sale and will incur a charge of approximately $154,000 related to the prepayment of the mortgage debt prior to its maturity.
In addition, since June 20, 2016, One Liberty has obtained mortgage debt on three properties in aggregate amount of approximately $16.6 million. The debt bears a weighted average interest rate of 3.73% and has a weighted average remaining term of 9.3 years.
"We continue to actively manage our portfolio in our effort to generate returns for stockholders," stated Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty. "The sale is consistent with our overall strategy and approach to remain disciplined around asset values with a focus on appropriate risk adjusted pricing and harvesting gains on assets that have reached their full potential."
Regarding the new mortgage debt, Mr. Callan continued, "Given the historically low long-term interest rates, we employed our quality assets to access capital with attractive terms, including favorable rates. The additional liquidity and financial flexibility illustrate our proactive efforts in managing our balance sheet to ensure that we are we well positioned to execute our strategy."
About One Liberty Properties:
One Liberty is a self-administered and self-managed real estate investment trust incorporated in Maryland in 1982. The primary business of the Company is to acquire, own and manage a geographically diversified portfolio consisting primarily of retail, industrial, flex, and health and fitness properties, many of which are subject to long-term leases. Many of the Company's leases are "net leases", under which the tenant is typically responsible for real estate taxes, insurance and ordinary maintenance and repairs.
