10-K

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TABLE OF CONTENTS Form 10-K
PART IV

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K

ý	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2017
Or
o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-09279

ONE LIBERTY PROPERTIES, INC.
(Exact name of registrant as specified in its charter)

MARYLAND (State or other jurisdiction of Incorporation or Organization)	13-3147497 (I.R.S. employer Identification No.)
60 Cutter Mill Road, Great Neck, New York (Address of principal executive offices)	11021 (Zip Code)

Registrant's telephone number, including area code: (516) 466-3100

         Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Name of exchange on which registered
Common Stock, par value $1.00 per share	New York Stock Exchange

         Securities registered pursuant to Section 12(g) of the Act: NONE

         Indicate by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act. Yes o    No ý

         Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes o    No ý

         Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý    No o

         Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý    No o

         Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

         Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "small reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer ý Non-accelerated filer o
(Do not check if a
small reporting company) Smaller reporting company o Emerging growth company o

         If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial standards provided pursuant to Section 13(a) of the Exchange Act. o

         Indicate by check mark whether registrant is a shell company (defined in Rule 12b-2 of the Act). Yes o    No ý

         As of June 30, 2017 (the last business day of the registrant's most recently completed second quarter), the aggregate market value of all common equity held by non-affiliates of the registrant, computed by reference to the price at which common equity was last sold on said date, was approximately $338 million.

         As of March 1, 2018, the registrant had 19,068,336 shares of common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

         Portions of the proxy statement for the 2018 annual meeting of stockholders of One Liberty Properties, Inc., to be filed pursuant to Regulation 14A not later than April 30, 2018, are incorporated by reference into Part III of this Annual Report on Form 10-K.

TABLE OF CONTENTS
Form 10-K

Item No.		Page(s)
PART I
1.	Business		1
1A.	Risk Factors		9
1B.	Unresolved Staff Comments		19
2.	Properties		19
3.	Legal Proceedings		25
4.	Mine Safety Disclosures		25
PART II
5.	Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		26
6.	Selected Financial Data		28
7.	Management's Discussion and Analysis of Financial Condition and Results of Operations		32
7A.	Quantitative and Qualitative Disclosures About Market Risk		46
8.	Financial Statements and Supplementary Data		47
9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure		47
9A.	Controls and Procedures		47
9B.	Other Information		48
PART III
10.	Directors, Executive Officers and Corporate Governance		51
11.	Executive Compensation		52
12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		52
13.	Certain Relationships and Related Transactions, and Director Independence		53
14.	Principal Accountant Fees and Services		53
PART IV
15.	Exhibits and Financial Statement Schedules		54
16.	Form 10-K Summary		56
Signatures			57

PART I

Item 1.    Business.

General

        We are a self-administered and self-managed real estate investment trust, also known as a REIT. We were incorporated in Maryland on December 20, 1982. We acquire, own and manage a geographically diversified portfolio of industrial, retail (including furniture stores and supermarkets), restaurant, health and fitness and theater properties, many of which are subject to long-term leases. Most of our leases are "net leases" under which the tenant, directly or indirectly, is responsible for paying the real estate taxes, insurance and ordinary maintenance and repairs of the property. As of December 31, 2017, we own 113 properties (excluding a property disposed of in January 2018) and participate in joint ventures that own five properties. These 118 properties are located in 30 states and have an aggregate of approximately 10.7 million square feet (including an aggregate of approximately 1.2 million square feet at properties owned by our joint ventures).

        As of December 31, 2017:

•

our 2018 contractual rental income (as described below) is $67.7 million.

•

the occupancy rate of our properties is 99.6% based on square footage.

•

the weighted average remaining term of our mortgage debt is 8.8 years and the weighted average interest rate thereon is 4.22%.

•

the weighted average remaining term of the leases generating our 2018 contractual rental income is 8.4 years.

        Our 2018 contractual rental income represents, after giving effect to any abatements, concessions or adjustments, the base rent payable to us in 2018 under leases in effect at December 31, 2017. Excluded from 2018 contractual rental income are approximately $483,000 of straight-line rent, amortization of approximately $1.0 million of intangibles, $56,000 of base rent payable through January 31, 2018 with respect to a property we sold in January 2018, and our share of the base rent payable to our joint ventures, which in 2018 is approximately $2.4 million.

2017 Highlights and Recent Developments

        In 2017:

•

our rental income, net, increased by $4.1 million, or 6.4%, from 2016.

•

we acquired four properties for an aggregate purchase price of $43.2 million. The acquired properties account for $3.1 million, or 4.6%, of our 2018 contractual rental income.

•

we sold four properties, three of which were vacant, for a net gain on sale of real estate of $9.8 million. The properties sold accounted for 0.5% and 2.6% of 2017 and 2016 rental income, net, respectively.

•

we obtained proceeds of $21.2 million from mortgage financings, all of which relate to properties acquired in 2017.

•

we increased our quarterly dividend by 4.7% to $0.45 per share, commencing with the dividend declared in December 2017 and paid in January 2018.

•

we raised net proceeds of approximately $5.6 million from the issuance of 231,000 shares of common stock pursuant to our at-the-market equity offering program.

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•

we re-leased four vacant properties or portions thereof. In 2017, we incurred an aggregate of $739,000 of real estate operating expenses in carrying such properties. In 2018, we will generate an aggregate of approximately $1.2 million of rental income from such properties and in the future, will not be responsible for the related operating expenses.

•

on January 30, 2018, we sold a multi-tenant retail property located in Fort Bend, Texas, in which we held an 85% interest, for gross proceeds of $9.2 million and paid off the $4.4 million mortgage. In the quarter ending March 31, 2018, we anticipate recognizing a gain on this sale of approximately $2.4 million. The non-controlling interests' share of the gain from the transaction will be approximately $800,000.

        In the narrative portion of this Annual Report on Form 10-K, except as otherwise indicated:

•

the information with respect to our consolidated joint ventures is generally described as if such ventures are our wholly owned subsidiaries and information with respect to unconsolidated joint ventures is generally separately described,

•

(i) all references to joint ventures refer to unconsolidated joint ventures, (ii) all interest rates with respect to debt give effect to the related interest rate derivative, if any, (iii) amounts reflected as debt, reflects the gross debt owed, without deducting deferred financing costs, and (iv) square footage and terms of like import refers to the total square footage of the applicable building, including common areas, if any,

•

2018 contractual rental income derived from multiple properties leased pursuant to a master lease is allocated among such properties based on management's estimate of the appropriate allocations, and

•

the rental, operating, mortgage and statistical information, excludes the Fort Bend, Texas property sold in January 2018, other than with respect to the disclosures under "Item 6. Selected Financial Data" and "Item 7. Management's Discussion and Analysis of Financial Condition—Results of Operations—Comparison of Years Ended December 31, 2017 and 2016 " and "—Results of Operations—Comparison of Years Ended December 31, 2016 and 2015."

Acquisition Strategies

        We seek to acquire properties throughout the United States that have locations, demographics and other investment attributes that we believe to be attractive. We believe that long-term leases provide a predictable income stream over the term of the lease, making fluctuations in market rental rates and in real estate values less significant to achieving our overall investment objectives. Our primary goal is to acquire single-tenant properties that are subject to long-term net leases that include periodic contractual rental increases or rent increases based on increases in the consumer price index. Periodic contractual rental increases provide reliable increases in future rent payments and rent increases based on the consumer price index provide protection against inflation. Historically, long-term leases have made it easier for us to obtain longer-term, fixed-rate mortgage financing with principal amortization, thereby moderating the interest rate risk associated with financing or refinancing our property portfolio and reducing the outstanding principal balance over time. We may, however, acquire a property that is subject to a short-term lease when we believe the property represents a favorable opportunity for generating additional income from its re-lease or has significant residual value. Although the acquisition of single-tenant properties subject to net leases is the focus of our investment strategy, we also consider investments in, among other things, (i) properties that can be re-positioned or re-developed, (ii) community shopping centers anchored by national or regional tenants and (iii) properties ground leased to operators of multi-family properties. We pay substantially all the operating expenses at community shopping centers, a significant portion of which is reimbursed by tenants pursuant to their leases.

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        Generally, we hold the properties we acquire for an extended period of time. Our investment criteria are intended to identify properties from which increased asset value and overall return can be realized from an extended period of ownership. Although our investment criteria favor an extended period of ownership, we will dispose of a property if we regard the disposition of the property as an opportunity to realize the overall value of the property sooner or to avoid future risks by achieving a determinable return from the property.

        Historically, a significant portion of our portfolio generated rental income from retail properties. We are sensitive to the risks facing the retail industry and have been addressing our exposure thereto by seeking to acquire properties that capitalize on e-commerce activities, such as e-commerce distribution and warehousing facilities, and by being especially selective in acquiring retail properties. As a result of this emphasis, retail properties generated 43.3%, 46.1%, and 49.5% of rental income, net, in 2017, 2016, and 2015, respectively.

        We identify properties through the network of contacts of our senior management and our affiliates, which contacts include real estate brokers, private equity firms, banks and law firms. In addition, we attend industry conferences and engage in direct solicitations.

        Our charter documents do not limit the number of properties in which we may invest, the amount or percentage of our assets that may be invested in any specific property or property type, or the concentration of investments in any region in the United States. We do not intend to acquire properties located outside of the United States. We will continue to form entities to acquire interests in real properties, either alone or with other investors, and we may acquire interests in joint ventures or other entities that own real property.

        It is our policy, and the policy of our affiliated entities, that any investment opportunity presented to us or to any of our affiliated entities that involves the acquisition of a net leased property, a ground lease (other than a ground lease of a multi-family property) or a community shopping center, will first be offered to us and may not be pursued by any of our affiliated entities unless we decline the opportunity. Further, to the extent our affiliates are unable or unwilling to pursue an acquisition of a multi-family property (including a ground lease of a multi-family property), we may pursue such transaction if it meets our investment objectives.

Investment Evaluation

        In evaluating potential investments, we consider, among other criteria, the following:

•

the current and projected cash flow of the property;

•

the estimated return on equity to us;

•

an evaluation of the property and improvements, given its location and use;

•

local demographics (population and rental trends);

•

the terms of tenant leases, including co-tenancy provisions and the relationship between current rents and market rents;

•

the ability of a tenant, if a net leased property, or major tenants, if a multi-tenant property, to meet operational needs and lease obligations;

•

an evaluation of the credit quality of the tenant;

•

the projected residual value of the property;

•

the potential to finance or refinance the property;

•

potential for income and capital appreciation;

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•

occupancy of and demand for similar properties in the market area; and

•

alternate uses or tenants for the property.

Our Business Objective

        Our business objective is to maintain and increase, over time, the cash available for distribution to our stockholders by:

•

identifying opportunistic and strategic property acquisitions consistent with our portfolio and our acquisition strategies;

•

obtaining mortgage indebtedness (including refinancings) on favorable terms and maintaining access to capital to finance property acquisitions; and

•

monitoring and maintaining our portfolio, including tenant negotiations and lease amendments with tenants that are renewing, expanding or having financial difficulty; and

•

managing our portfolio effectively, including opportunistic and strategic property sales.

Typical Property Attributes

        As of December 31, 2017, the properties in our portfolio have the following attributes:

•

Net leases.  Most of our leases are net leases under which the tenant is typically responsible for real estate taxes, insurance and ordinary maintenance and repairs. We believe that investments in net leased properties offer reasonably predictable returns.

•

Long-term leases.  Many of our leases are long-term leases. The weighted average remaining term of our leases is 8.4 years. Leases representing approximately 27.3% of our 2018 contractual rental income expire between 2023 and 2026 and leases representing approximately 36.4% of our 2018 contractual rental income expire after 2027.

•

Scheduled rent increases.  Leases representing approximately 73.6% of our 2018 contractual rental income provide for either periodic contractual rent increases or a rent increase based on the consumer price index.

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Our Tenants

        The following table sets forth information about the diversification of our tenants by industry sector as of December 31, 2017:

Type of Property	Number of Tenants		Number of Properties		2018 Contractual Rental Income		Percentage of 2018 Contractual Rental Income
Industrial		31		28	$	25,119,990		37.1
Retail—General		57		35		15,963,958		23.6
Retail—Furniture(1)		3		14		6,109,003		9.0
Restaurant		10		16		3,185,623		4.7
Health & Fitness		1		3		3,080,333		4.5
Retail—Supermarket		3		3		2,718,682		4.0
Retail—Office Supply(2)		1		7		2,406,728		3.6
Theater		1		2		2,293,132		3.4
Other		5		5		6,856,708		10.1
		112		113	$	67,734,157		100.0

(1)

Eleven properties are net leased to Haverty Furniture Companies, Inc., which we refer to as Haverty Furniture, pursuant to a master lease covering all such properties.

(2)

Includes seven properties which are net leased to Office Depot pursuant to seven separate leases. Five of the Office Depot leases contain cross-default provisions.

        Many of our tenants (including franchisees of national chains) operate on a national basis including, among others, Advanced Auto, Applebees, Barnes & Noble, Burlington Coat Factory, CarMax, CVS, Famous Footwear, FedEx, Ferguson Enterprises, LA Fitness, Marshalls, Men's Wearhouse, Northern Tool, Office Depot, Party City, PetSmart, Ross Stores, Shutterfly, TGI Friday's, The Toro Company, Urban Outfitters, Walgreens, Wendy's and Whole Foods, and some of our tenants operate on a regional basis, including Haverty Furniture and Giant Food Stores.

Our Leases

        Most of our leases are net leases under which the tenant, in addition to its rental obligation, typically is responsible, directly or indirectly for expenses attributable to the operation of the property, such as real estate taxes and assessments, insurance and ordinary maintenance and repairs. The tenant is also generally responsible for maintaining the property and for restoration following a casualty or partial condemnation. The tenant is typically obligated to indemnify us for claims arising from the property and is responsible for maintaining insurance coverage for the property it leases and naming us an additional insured. Under some net leases, we are responsible for structural repairs, including foundation and slab, roof repair or replacement and restoration following a casualty event, and at several properties we are responsible for certain expenses related to the operation and maintenance of the property.

        Our typical lease provides for contractual rent increases periodically throughout the term of the lease or for rent increases pursuant to a formula based on the consumer price index. Some of our leases provide for minimum rents supplemented by additional payments based on sales derived from the property subject to the lease (i.e., percentage rent). Percentage rent from four properties contributed $263,000 to 2017 rental income, of which $174,000 was contributed by one tenant. Percentage rent contributed $42,000, and $38,000 to rental income in 2016 and 2015, respectively.

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        Generally, our strategy is to acquire properties that are subject to existing long-term leases or to enter into long-term leases with our tenants. Our leases generally provide the tenant with one or more renewal options.

        The following table sets forth scheduled expirations of leases at our properties as of December 31, 2017:

Year of Lease Expiration(1)	Number of Expiring Leases		Approximate Square Footage Subject to Expiring Leases		2018 Contractual Rental Income Under Expiring Leases		Percentage of 2018 Contractual Rental Income Represented by Expiring Leases
2018		12		206,592	$	1,333,898		2.0
2019		12		321,507		2,952,389		4.4
2020		9		110,548		1,621,506		2.4
2021		18		578,070		4,194,598		6.2
2022		25		2,144,389		14,424,295		21.3
2023		13		852,141		5,689,479		8.4
2024		6		408,093		2,069,484		3.1
2025		10		387,202		5,410,643		8.0
2026		11		551,229		5,266,182		7.8
2027 and thereafter		33		3,827,219		24,771,683		36.4
		149		9,386,990	$	67,734,157		100.0

(1)

Lease expirations assume tenants do not exercise existing renewal options.

Financing, Re-Renting and Disposition of Our Properties

        Our revolving credit facility provides us with a source of funds that may be used to acquire properties, payoff existing mortgages, and to a more limited extent, invest in joint ventures, implement property improvements and for working capital purposes. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under our facility. See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Credit Facility".

        We mortgage specific properties on a non-recourse basis, subject to the standard carve-outs described under "Item 2. Properties—Mortgage Debt", to enhance the return on our investment in a specific property. The proceeds of mortgage loans may be used for property acquisitions, investments in joint ventures or other entities that own real property, to reduce bank debt and for working capital purposes.

        With respect to properties we acquire on a free and clear basis, we usually seek to obtain long-term fixed-rate mortgage financing, when available at acceptable terms, shortly after the acquisition of such property to avoid the risk of movement of interest rates and fluctuating supply and demand in the mortgage markets. We also will acquire a property that is subject to (and will assume) a fixed-rate mortgage. Substantially all of our mortgages provide for amortization of part of the principal balance during the term, thereby reducing the refinancing risk at maturity. Some of our properties may be financed on a cross-defaulted or cross-collateralized basis, and we may collateralize a single financing with more than one property.

        After termination or expiration of any lease relating to any of our properties, we will seek to re-rent or sell such property in a manner that will maximize the return to us, considering, among other factors, the income potential and market value of such property. We acquire properties for long-term

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investment for income purposes and do not typically engage in the turnover of investments. We will consider the sale of a property if a sale appears advantageous in view of our investment objectives. If there is a substantial tax gain, we may seek to enter into a tax deferred transaction and reinvest the proceeds in another property. Cash realized from the sale of properties, net of required payoffs of the related mortgage debt, if any, required paydowns of our credit facility, and distributions to stockholders, is available for general working capital purposes and the acquisition of additional properties.

Our Joint Ventures

        As of December 31, 2017, we participated in five joint ventures that own an aggregate of five properties, with approximately 1.2 million square feet of space. Four of the properties are retail properties and one is an industrial property. We own 50% of the equity interest in all of these joint ventures. At December 31, 2017, our investment in joint ventures was approximately $10.7 million and the occupancy rate at the properties owned by these ventures, based on square footage, was 97.6%.

        Based on the leases in effect at December 31, 2017, we anticipate that our share of the base rent payable in 2018 to our joint ventures is approximately $2.4 million. Leases for two properties are expected to contribute 86.5% of the aggregate base rent payable to all of our joint ventures in 2018. Leases with respect to 55.6%, 11.9% and 32.5% of the aggregate base rent payable to all of our joint ventures in 2018, is payable pursuant to leases expiring from 2018 to 2019, from 2020 to 2021, and thereafter, respectively.

        See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Other Developments" for information regarding properties tenanted by Kmart.

Competition

        We face competition for the acquisition of properties from a variety of investors, including domestic and foreign corporations and real estate companies, financial institutions, insurance companies, pension funds, investment funds, other REITs and individuals, many of which have significant advantages over us, including a larger, more diverse group of properties and greater financial (including access to debt on more favorable terms) and other resources than we have.

Our Structure

        Nine employees, including Patrick J. Callan, Jr., our president and chief executive officer, Lawrence G. Ricketts, Jr., our executive vice president and chief operating officer, Justin Clair, a vice president, Karen Dunleavy, vice president-financial and five other employees, devote all of their business time to us. Our other executive, administrative, legal, accounting and clerical personnel provide their services to us on a part-time basis pursuant to the compensation and services agreement described below.

        We entered into a compensation and services agreement with Majestic Property Management Corp. effective as of January 1, 2007. Majestic Property is wholly-owned by our vice chairman of the board and it provides compensation to certain of our executive officers. Pursuant to this agreement, we pay fees to Majestic Property and Majestic Property provides us with the services of all affiliated executive, administrative, legal, accounting and clerical personnel that we use on a part time basis, as well as property management services, property acquisition, sales and leasing and mortgage brokerage services. The fees we pay Majestic Property are negotiated by us and Majestic Property in consultation with our audit and compensation committees, and are approved by these committees and our independent directors.

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        In 2017, pursuant to the compensation and services agreement, we paid Majestic Property a fee of approximately $2.7 million plus $216,000 for our share of all direct office expenses, including rent, telephone, postage, computer services, supplies and internet usage. Included in the $2.7 million fee is $1,154,000 for property management services—the fee for the property management services is based on 1.5% and 2.0% of the rental payments (including tenant reimbursements) actually received by us from net lease tenants and operating lease tenants, respectively. Property management fees are not paid to Majestic Property with respect to properties managed by third parties. Based on our portfolio of properties at December 31, 2017, we estimate that the property management fee in 2018 will be approximately $1,190,000.

        We believe that the compensation and services agreement allows us to benefit from (i) access to, and from the services of, a group of senior executives with significant knowledge and experience in the real estate industry and our company, (ii) other individuals who perform services on our behalf, and (iii) general economies of scale. If not for this agreement, we believe that a company of our size would not have access to the skills and expertise of these executives at the cost that we have incurred and will incur in the future. For a description of the background of our management, please see the information under the heading "Executive Officers" in Part I of this Annual Report. See Note 12 to our consolidated financial statements for information regarding equity awards to individuals performing services on our behalf pursuant to the compensation and services agreement.

Available Information

        Our Internet address is www.onelibertyproperties.com. On the Investor Information page of our web site, we post the following filings as soon as reasonably practicable after they are electronically filed with or furnished to the Securities and Exchange Commission (the "SEC"): our annual report on Form 10-K, our quarterly reports on Form 10-Q, our current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended. All such filings on our Investor Information Web page, which also includes Forms 3, 4 and 5 filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, as amended, are available to be viewed free of charge.

        On the Corporate Governance page of our web site, we post the following charters and guidelines: Audit Committee Charter, Compensation Committee Charter, Nominating and Corporate Governance Committee Charter, Corporate Governance Guidelines and Code of Business Conduct and Ethics, as amended and restated. All such documents on our Corporate Governance Web page are available to be viewed free of charge.

        Information contained on our web site is not part of, and is not incorporated by reference into, this Annual Report on Form 10-K or our other filings with the SEC. A copy of this Annual Report on Form 10-K and those items disclosed on our Investor Information Web page and our Corporate Governance Web page are available without charge upon written request to: One Liberty Properties, Inc., 60 Cutter Mill Road, Suite 303, Great Neck, New York 11021, Attention: Secretary.

Forward-Looking Statements

        This Annual Report on Form 10-K, together with other statements and information publicly disseminated by us, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "could," "believe," "expect,"

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"intend," "anticipate," "estimate," "project," or similar expressions or variations thereof. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements. Factors which may cause actual results to differ materially from current expectations include, but are not limited to:

•

the financial condition of our tenants and the performance of their lease obligations;

•

general economic and business conditions, including those currently affecting our nation's economy and real estate markets;

•

the availability of and costs associated with sources of liquidity;

•

accessibility of debt and equity capital markets;

•

general and local real estate conditions, including any changes in the value of our real estate;

•

compliance with credit facility covenants;

•

increased competition for leasing of vacant space due to current economic conditions;

•

changes in governmental laws and regulations relating to real estate and related investments;

•

the level and volatility of interest rates;

•

competition in our industry; and

•

the other risks described under Item 1A. Risk Factors.

        Any or all of our forward-looking statements in this report and in any other public statements we make may turn out to be incorrect. Actual results may differ from our forward-looking statements because of inaccurate assumptions we might make or because of the occurrence of known or unknown risks and uncertainties. Many factors mentioned in the discussion below will be important in determining future results. Consequently, no forward-looking statement can be guaranteed and you are cautioned not to place undue reliance on these forward- looking statements. Actual future results may vary materially.

        Except as may be required under the United States federal securities laws, we undertake no obligation to publicly update our forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures we make in our reports that are filed with or furnished to the SEC.

Item 1A.    Risk Factors.

Set forth below is a discussion of certain risks affecting our business. The categorization of risks set forth below is meant to help you better understand the risks facing our business and is not intended to limit your consideration of the possible effects of these risks to the listed categories. Any adverse effects arising from the realization of any of the risks discussed, including our financial condition and results of operations, may, and likely will, adversely affect many aspects of our business. In addition to the other information contained or incorporated by reference in this Form 10-K, readers should carefully consider the following risk factors:

Risks Related to Our Business

Approximately 40.2% of our 2018 contractual rental income is derived from tenants operating in the retail industry and the failure of those tenants to pay rent would significantly reduce our revenues.

        Approximately 40.2% of our 2018 contractual rental income is derived from retail tenants, including 9.0% from tenants engaged in retail furniture (i.e., Haverty Furniture accounts for 7.1% of

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2018 contractual rental income) and 3.6% from tenants engaged in office supply activities (i.e., Office Depot accounts for 3.6% of 2018 contractual rental income).

        Various factors could cause our retail tenants to close their locations, including difficult economic conditions and e-commerce competition. The failure of our retail tenants to meet their lease obligations, including rent payment obligations, due to these and other factors, may make it difficult for us to satisfy our operating and debt service requirements, make capital expenditures and pay dividends.

If we are unable to re-rent properties upon the expiration of our leases or if our tenants default or seek bankruptcy protection, our rental income will be reduced and we would incur additional costs.

        Substantially all of our rental income is derived from rent paid by our tenants. From 2018 through 2020, leases with respect to 33 tenants that account for 8.8% of our 2018 contractual rental income, expire. If our tenants, and in particular, our significant tenants, (i) do not renew their leases upon the expiration of same, (ii) default on their obligations or (iii) seek rent relief, lease renegotiation or other accommodations, our revenues could decline and, in certain cases, co-tenancy provisions may be triggered possibly allowing other tenants at the same property to reduce their rental payments or terminate their leases. At the same time, we would remain responsible for the payment of the mortgage obligations with respect to the related properties and would become responsible for the operating expenses related to these properties, including, among other things, real estate taxes, maintenance and insurance. In addition, we may incur expenses in enforcing our rights as landlord. Even if we find replacement tenants or renegotiate leases with current tenants, the terms of the new or renegotiated leases, including the cost of required renovations or concessions to tenants, or the expense of the reconfiguration of a tenant's space, may be less favorable than current lease terms and could reduce the amount of cash available to meet expenses and pay dividends. If tenants facing financial difficulties default on their obligation to pay rent or do not renew their leases at lease expiration, our results of operations and financial condition may be adversely affected. See "Item 7. Management's Discussion and Analysis of Financial Condition or Results of Operations—Other Developments".

Approximately 22.9% of our 2018 contractual rental income is derived from five tenants. The default, financial distress or failure of any of these tenants could significantly reduce our revenues.

        Haverty Furniture, LA Fitness, Northern Tool, Office Depot and Ferguson Enterprises account for approximately 7.1%, 4.5%, 4.2%, 3.6% and 3.5%, respectively, of our 2018 contractual rental income. The default, financial distress or bankruptcy of any of these tenants could cause interruptions in the receipt of, or the loss of, a significant amount of rental income and would require us to pay operating expenses (including real estate taxes) currently paid by the tenant. This could also result in the vacancy of the property or properties occupied by the defaulting tenant, which would significantly reduce our rental revenues and net income until the re-rental of the property or properties, and could decrease the ultimate sale value of the property.

Competition that traditional retail tenants face from e-commerce retail sales could adversely affect our business.

        Our retail tenants face increasing competition from e-commerce retailers. These retailers may be able to provide customers with better pricing and the ease and comfort of shopping from their home or office. E-commerce sales have been obtaining an increasing percentage of retail sales over the past few years and this trend is expected to continue. The continued growth of e-commerce sales could decrease the need for traditional retail outlets and reduce retailers' space and property requirements. This could adversely impact our ability to rent space at our retail properties and increase competition for retail tenants thereby reducing the rent we would receive at these properties and adversely affect our results of operations and financial condition.

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If we are unable to refinance our mortgage loans at maturity, we may be forced to sell properties at disadvantageous terms, which would result in the loss of revenues and in a decline in the value of our portfolio.

        We had, as of December 31, 2017, $392.5 million in mortgage debt outstanding, all of which is non-recourse (subject to standard carve-outs) and our ratio of mortgage debt to total assets was 53.3%. Our joint ventures had $35.0 million in total mortgage indebtedness (all of which is non-recourse, subject to standard carve-outs). The risks associated with our mortgage debt and the mortgage debt of our joint ventures include the risk that cash flow from properties securing the indebtedness and our available cash and cash equivalents will be insufficient to meet required payments of principal and interest.

        Generally, only a portion of the principal of our mortgage indebtedness will be repaid prior to or at maturity and we do not plan to retain sufficient cash to repay such indebtedness at maturity. Accordingly, to meet these obligations if they cannot be refinanced at maturity, we will have to use funds available under our credit facility, if any, and our available cash and cash equivalents to pay our mortgage debt or seek to raise funds through the financing of unencumbered properties, sale of properties or the issuance of additional equity. From 2018 through 2022, approximately $111.4 million of our mortgage debt matures—specifically, $20.4 million in 2018, $14.6 million in 2019, $11.9 million in 2020, $20.7 million in 2021 and $43.8 million in 2022. With respect to our joint ventures, approximately $14.2 million of mortgage debt matures from 2018 through 2022—specifically, $4.3 million in 2018, $877,000 in 2019, $911,000 in 2020, $948,000 in 2021, and $7.2 million in 2022. If we (or our joint ventures) are unsuccessful in refinancing or extending existing mortgage indebtedness or financing unencumbered properties, selling properties on favorable terms or raising additional equity, our cash flow (or the cash flow of a joint venture) will not be sufficient to repay all maturing mortgage debt when payments become due, and we (or a joint venture) may be forced to dispose of properties on disadvantageous terms or convey properties secured by mortgages to the mortgagees, which would lower our revenues and the value of our portfolio.

        We may find that the value of a property could be less than the mortgage secured by such property. We may also have to decide whether we should refinance or pay off a mortgage on a property at which the mortgage matures prior to lease expiration and the tenant may not renew the lease. In these types of situations, after evaluating various factors, including among other things, the tenant's competitive position in the applicable submarket, our and our tenant's estimates of its prospects, consideration of alternative uses and opportunities to re-purpose or re-let the property, we may seek to renegotiate the terms of the mortgage, or to the extent that the loan is non-recourse and the terms of the mortgage cannot be satisfactorily renegotiated, forfeit the property by conveying it to the mortgagee and writing off our investment.

Declines in the value of our properties could result in impairment charges.

        If we are presented with indications of an impairment in the value of a particular property or group of properties, we will be required to evaluate any such property or properties. If we determine that any of our properties at which indicators of impairment exist have a fair market value below the net book value of such property, we will be required to recognize an impairment charge for the difference between the fair value and the book value during the quarter in which we make such determination; such impairment charges may then increase in subsequent quarters. This evaluation may lead us to write off any straight-line rent receivable and lease intangible balances recorded with respect to such property. In addition, we may incur losses from time to time if we dispose of properties for sales prices that are less than our book value.

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The concentration of our properties in certain states may make our revenues and the value of our portfolio vulnerable to adverse changes in local economic conditions.

        Many of the properties we own are located in the same or a limited number of geographic regions. Approximately 40.7% of our 2018 contractual rental income will be derived from properties located in five states—Texas (11.9%), South Carolina (8.3%), New York (7.9%), Pennsylvania (6.4%) and North Carolina (6.2%). At December 31, 2017, approximately 43.1% of the net book value of our real estate investments was located in five states—Texas (11.3%), South Carolina (9.6%), Pennsylvania (9.3%), Tennessee (7.2%) and Maryland (5.7%). As a result, a decline in the economic conditions in these states or in regions where our properties may be concentrated in the future, may have an adverse effect on the rental and occupancy rates for, and the property values of, these properties, which could lead to a reduction of our rental income and/or impairment charges.

If interest rates increase or credit markets tighten, it may be more difficult for us to secure financing, which may limit our ability to finance or refinance our real estate properties, reduce the number of properties we can acquire, sell certain properties, and decrease our stock price.

        An increase in interest rates could reduce the amount investors are willing to pay for our common stock. Because REIT stocks are often perceived as high-yield investments, investors may perceive less relative benefit to owning REIT stocks as interest rates and the yield on government treasuries and other bonds increase.

        Increases in interest rates or reduced access to credit markets may make it difficult for us to obtain financing, refinance mortgage debt, limit the mortgage debt available on properties we wish to acquire and limit the properties we can acquire. Even in the event that we are able to secure mortgage debt on, or otherwise finance our real estate properties, due to increased costs associated with securing financing and other factors beyond our control, we may be unable to refinance the entire outstanding loan balance or be subject to unfavorable terms (such as higher loan fees, interest rates and periodic payments) if we do refinance the loan balance. In addition, an increase in interest rates could decrease the amount third parties are willing to pay for our assets, thereby limiting our ability to reposition our portfolio promptly in response to changes in economic or other conditions.

        While interest rates have been at historically low levels the past several years, they have recently been increasing and become increasingly volatile. At December 29, 2017 and February 28, 2018, the interest rate on the 10-year treasury note was 2.40% and 2.87%, respectively. If we are required to refinance mortgage debt that matures over the next several years at higher interest rates than such mortgage debt currently bears, the funds available for dividends may be reduced. The following table sets forth, as of December 31, 2017, the principal balance of the mortgage payments due at maturity on our properties and the weighted average interest rate thereon (dollars in thousands):

Year	Principal Balances Due at Maturity		Weighted Average Interest Rate Percentage
2018	$	10,260		4.26
2019		3,485		3.88
2020		—		—
2021		8,463		4.13
2022		31,539		3.92
2023 and thereafter		214,048		4.20

        We manage a substantial portion of our exposure to interest rate risk by accessing debt with staggered maturities, obtaining fixed rate mortgage debt and through the use of interest rate swap agreements. However, no amount of hedging activity can fully insulate us from the risks associated with changes in interest rates. Swap agreements involve risk, including that counterparties may fail to honor

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their obligations under these arrangements, and that these arrangements may cause us to pay higher interest rates on our debt obligations than would otherwise be the case. Failure to hedge effectively against interest rate risk could adversely affect our results of operations and financial condition.

If our borrowings increase, the risk of default on our repayment obligations and our debt service requirements will also increase.

        The terms of our revolving credit facility limit our ability to incur indebtedness, including limiting the total indebtedness that we may incur to an amount equal to 70% of the total value (as defined in the credit facility) of our properties. Increased leverage could result in increased risk of default on our payment obligations related to borrowings and in an increase in debt service requirements, which could reduce our net income and the amount of cash available to meet expenses and to pay dividends.

If a significant number of our tenants default or fail to renew expiring leases, or we take impairment charges against our properties, a breach of our revolving credit facility could occur.

        Our revolving credit facility includes covenants that require us to maintain certain financial ratios and comply with other requirements. If our tenants default under their leases with us or fail to renew expiring leases, generally accepted accounting principles may require us to recognize impairment charges against our properties, and our financial position could be adversely affected causing us to be in breach of the financial covenants contained in our credit facility.

        Failure to meet interest and other payment obligations under our revolving credit facility or a breach by us of the covenants to maintain the financial ratios would place us in default under our credit facility, and, if the banks called a default and required us to repay the full amount outstanding under the credit facility, we might be required to rapidly dispose of our properties, which could have an adverse impact on the amounts we receive on such disposition. If we are unable to dispose of our properties in a timely fashion to the satisfaction of the banks, the banks could foreclose on that portion of our collateral pledged to the banks, which could result in the disposition of our properties at below market values. The disposition of our properties at below our carrying value would adversely affect our net income, reduce our stockholders' equity and adversely affect our ability to pay dividends.

Certain of our net leases and our ground leases require us to pay property related expenses that are not the obligations of our tenants.

        Under the terms of substantially all of our net leases, in addition to satisfying their rent obligations, our tenants are responsible for the payment of real estate taxes, insurance and ordinary maintenance and repairs. However, under the provisions of certain net and ground leases, we are required to pay some expenses, such as the costs of environmental liabilities, roof and structural repairs, insurance premiums, certain non-structural repairs and maintenance. If our properties incur significant expenses that must be paid by us under the terms of our leases, our business, financial condition and results of operations will be adversely affected and the amount of cash available to meet expenses and pay dividends may be reduced.

Uninsured and underinsured losses may affect the revenues generated by, the value of, and the return from a property affected by a casualty or other claim.

        Most all of our tenants obtain, for our benefit, comprehensive insurance covering our properties in amounts that are intended to be sufficient to provide for the replacement of the improvements at each property. However, the amount of insurance coverage maintained for any property may be insufficient (i) to pay the full replacement cost of the improvements at the property following a casualty event or (ii) if coverage is provided pursuant to a blanket policy and the tenant's other properties are subject to insurance claims. In addition, the rent loss coverage under the policy may not extend for the full period

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of time that a tenant may be entitled to a rent abatement as a result of, or that may be required to complete restoration following, a casualty event In addition, there are certain types of losses, such as those arising from earthquakes, floods, hurricanes and terrorist attacks, that may be uninsurable or that may not be economically insurable. Changes in zoning, building codes and ordinances, environmental considerations and other factors also may make it impossible or impracticable for us to use insurance proceeds to replace damaged or destroyed improvements at a property. If restoration is not or cannot be completed to the extent, or within the period of time, specified in certain of our leases, the tenant may have the right to terminate the lease. If any of these or similar events occur, it may reduce our revenues, the value of, or our return from, an affected property.

Our revenues and the value of our portfolio are affected by a number of factors that affect investments in real estate generally.

        We are subject to the general risks of investing in real estate. These include adverse changes in economic conditions and local conditions such as changing demographics, retailing trends and traffic patterns, declines in the rental rates, changes in the supply and price of quality properties and the market supply and demand of competing properties, the impact of environmental laws, security concerns, prepayment penalties applicable under mortgage financings, changes in tax, zoning, building code, fire safety and other laws and regulations, the type of insurance coverage available in the market, and changes in the type, capacity and sophistication of building systems. Approximately 40.2% and 37.1% of our 2018 contractual rental income is from retail and industrial tenants, respectively, and we are vulnerable to economic declines that negatively impact these sectors of the economy, which could have an adverse effect on our results of operations, liquidity and financial condition.

Our revenues and the value of our portfolio are affected by a number of factors that affect investments in leased real estate generally.

        We are subject to the general risks of investing in leased real estate. These include the non-performance of lease obligations by tenants, leasehold improvements that will be costly or difficult to remove should it become necessary to re-rent the leased space for other uses, covenants in certain retail leases that limit the types of tenants to which available space can be rented (which may limit demand or reduce the rents realized on re-renting), rights of termination of leases due to events of casualty or condemnation affecting the leased space or the property or due to interruption of the tenant's quiet enjoyment of the leased premises, and obligations of a landlord to restore the leased premises or the property following events of casualty or condemnation. The occurrence of any of these events could adversely impact our results of operations, liquidity and financial condition.

Real estate investments are relatively illiquid and their values may decline.

        Real estate investments are relatively illiquid. Therefore, we will be limited in our ability to reconfigure our real estate portfolio in response to economic changes. We may encounter difficulty in disposing of properties when tenants vacate either at the expiration of the applicable lease or otherwise. If we decide to sell any of our properties, our ability to sell these properties and the prices we receive on their sale may be affected by many factors, including the number of potential buyers, the number of competing properties on the market and other market conditions, as well as whether the property is leased and if it is leased, the terms of the lease. As a result, we may be unable to sell our properties for an extended period of time without incurring a loss, which would adversely affect our results of operations, liquidity and financial condition.

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We have been, and in the future will be, subject to significant competition and we may not be able to compete successfully for investments.

        We have been, and in the future will be, subject to significant competition for attractive investment opportunities from other real estate investors, many of which have greater financial resources than us, including publicly-traded REITs, non-traded REITs, insurance companies, commercial and investment banking firms, private institutional funds, hedge funds, private equity funds and other investors. We may not be able to compete successfully for investments. If we pay higher prices for investments, our returns may be lower and the value of our assets may not increase or may decrease significantly below the amount we paid for such assets. If such events occur, we may experience lower returns on our investments.

We cannot assure you of our ability to pay dividends in the future.

        We intend to pay quarterly dividends and to make distributions to our stockholders in amounts such that all or substantially all of our taxable income in each year is distributed. This, along with other factors, will enable us to qualify for the tax benefits accorded to a REIT under the Internal Revenue Code of 1986, as amended, which we refer to as the "Code". We have not established a minimum dividend payment level and our ability to pay dividends may be adversely affected by the risk factors described in this Annual Report on Form 10-K. All distributions will be made at the discretion of our board of directors and will depend on our earnings (including taxable income), our financial condition, maintenance of our REIT status and such other factors as our board of directors may deem relevant from time to time.

If we reduce our dividend, the market value of our common stock may decline.

        The level of our common stock dividend is established by our board of directors from time to time based on a variety of factors, including our cash available for distribution, funds from operations, adjusted funds from operations and maintenance of our REIT status. Various factors could cause our board of directors to decrease our dividend level, including insufficient income to cover our dividends, tenant defaults or bankruptcies resulting in a material reduction in our funds from operations or a material loss resulting from an adverse change in the value of one or more of our properties. If our board of directors determines to reduce our common stock dividend, the market value of our common stock could be adversely affected.

Our current and future investments in joint ventures could be adversely affected by the lack of sole decision making authority, reliance on joint venture partners' financial condition or insurance coverage, disputes that may arise between our joint venture partners and us and our reliance on one significant joint venture partner.

        A number of properties in which we have an interest are owned through consolidated and unconsolidated joint ventures. We may continue to acquire properties through joint ventures and/or contribute some of our properties to joint ventures. Investments in joint ventures may, under certain circumstances, involve risks not present when a third party is not involved, including the possibility that joint venture partners might file for bankruptcy protection, fail to fund their share of required capital contributions or obtain insurance coverage pursuant to a blanket policy as a result of which claims with respect to other properties covered by such policy and in which we have no interest could reduce or eliminate the coverage available with respect to the joint venture properties. Further, joint venture partners may have conflicting business interests or goals, and as a result there is the potential risk of impasses on decisions, such as a sale and the timing thereof. Any disputes that may arise between joint venture partners and us may result in litigation or arbitration that would increase our expenses and prevent our officers and/or directors from focusing their time and effort on our business. Consequently, actions by or disputes with joint venture partners might result in subjecting properties owned by the joint venture to additional risk. With respect to our (i) consolidated joint ventures, we own, with two

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joint venture partners and their respective affiliates, five properties that account for 5.1% of 2018 contractual rental income (and we own one property, of which our share of the annual base rent in 2018 is $1.4 million, with one of these joint venture partners through an unconsolidated joint venture), and (ii) unconsolidated joint ventures, we own, with one joint venture partner and its affiliates, three properties which account for our $326,000 share of 2018 base rent payable. We may be adversely affected if we are unable to maintain a satisfactory working relationship with these joint venture partners or if any of these partners becomes financially distressed.

Compliance with environmental regulations and associated costs could adversely affect our results of operations and liquidity.

        Under various federal, state and local laws, ordinances and regulations, an owner or operator of real property may be required to investigate and clean up hazardous or toxic substances or petroleum product releases at the property and may be held liable to a governmental entity or to third parties for property damage and for investigation and cleanup costs incurred in connection with contamination. The cost of investigation, remediation or removal of hazardous or toxic substances may be substantial, and the presence of such substances, or the failure to properly remediate a property, may adversely affect our ability to sell or rent the property or to borrow money using the property as collateral. In connection with our ownership, operation and management of real properties, we may be considered an owner or operator of the properties and, therefore, potentially liable for removal or remediation costs, as well as certain other related costs, including governmental fines and liability for injuries to persons and property, not only with respect to properties we own now or may acquire, but also with respect to properties we have owned in the past.

        We cannot provide any assurance that existing environmental studies with respect to any of our properties reveal all potential environmental liabilities, that any prior owner of a property did not create any material environmental condition not known to us, or that a material environmental condition does not otherwise exist, or may not exist in the future, as to any one or more of our properties. If a material environmental condition does in fact exist, or exists in the future, the remediation costs could have a material adverse impact upon our results of operations, liquidity and financial condition.

Compliance with the Americans with Disabilities Act could be costly.

        Under the Americans with Disabilities Act of 1990, all public accommodations must meet Federal requirements for access and use by disabled persons. A determination that our properties do not comply with the Americans with Disabilities Act could result in liability for both governmental fines and damages. If we are required to make unanticipated major modifications to any of our properties to comply with the Americans with Disabilities Act, which are determined not to be the responsibility of our tenants, we could incur unanticipated expenses that could have an adverse impact upon our results of operations, liquidity and financial condition.

Our senior management and other key personnel are critical to our business and our future success depends on our ability to retain them.

        We depend on the services of Matthew J. Gould, chairman of our board of directors, Fredric H. Gould, vice chairman of our board of directors, Patrick J. Callan, Jr., our president and chief executive officer, Lawrence G. Ricketts, Jr., our executive vice president and chief operating officer, David W. Kalish, our senior vice president and chief financial officer and Karen Dunleavy, our vice president—financial, and other members of our senior management to carry out our business and investment strategies. Only three of our senior officers, Messrs. Callan and Ricketts, and Ms. Dunleavy, devote all of their business time to us. The remainder of our senior management provides services to us on a part-time, as-needed basis. The loss of the services of any of our senior management or other key

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personnel, the inability or failure of the members of senior management providing services to us on a part-time basis to devote sufficient time or attention to our activities or our inability to recruit and retain qualified personnel in the future, could impair our ability to carry out our business and investment strategies.

Our transactions with affiliated entities involve conflicts of interest.

        From time to time we have entered into transactions with persons and entities affiliated with us and with certain of our officers and directors. Such transactions involve a potential conflict of interest, and entail a risk that we could have obtained more favorable terms if we had entered into such transaction with an unaffiliated third party. Our policy for transactions with affiliates is to have these transactions approved by our audit committee. We entered into a compensation and services agreement with Majestic Property effective as of January 1, 2007. Majestic Property is wholly-owned by the vice chairman of our board of directors and it provides compensation to certain of our part-time senior executive officers and other individuals performing services on our behalf. Pursuant to the compensation and services agreement, we pay an annual fee to Majestic Property which provides us with the services of all affiliated executive, administrative, legal, accounting and clerical personnel that we use on a part time basis, as well as property management services, property acquisition, sales and leasing and mortgage brokerage services. In 2017, pursuant to the compensation and services agreement, we paid Majestic Property a fee of $2.7 million and an additional $216,000 for our share of all direct office expenses, including rent, telephone, postage, computer services, supplies, and internet usage. We also obtain our property insurance in conjunction with Gould Investors L.P., our affiliate, and in 2017, reimbursed Gould Investors $790,000 for our share of the insurance premiums paid by Gould Investors. Gould Investors beneficially owns approximately 9.5% of our outstanding common stock and certain of our senior executive officers are also executive officers of the managing general partner of Gould Investors. See Note 12 of our consolidated financial statements for information regarding equity awards to individuals performing services on our behalf pursuant to the compensation and services agreement.

The failure of any bank in which we deposit our funds could have an adverse impact on our financial condition.

        We have diversified our cash and cash equivalents between several banking institutions in an attempt to minimize exposure to any one of these entities. However, the Federal Deposit Insurance Corporation only insures accounts in amounts up to $250,000 per depositor per insured bank. We currently have cash and cash equivalents deposited in certain financial institutions significantly in excess of federally insured levels. If any of the banking institutions in which we have deposited funds ultimately fails, we may lose our deposits over $250,000. The loss of our deposits may have an adverse effect on our financial condition.

Breaches of information technology systems could materially harm our business and reputation.

        We collect and retain on information technology systems, certain financial, personal and other sensitive information provided by third parties, including tenants, vendors and employees. We also rely on information technology systems for the collection and distribution of funds. There can be no assurance that we will be able to prevent unauthorized access to sensitive information or the unauthorized distribution of funds. Any loss of this information or unauthorized distribution of funds as a result of a breach of information technology systems may result in loss of funds to which we are entitled, legal liability and costs (including damages and penalties), as well as damage to our reputation, that could materially and adversely affect our business.

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We are dependent on third party software for our billing and financial reporting processes.

        We are dependent on third party software, and in particular Yardi's property management software, for generating tenant invoices and financial reports. If the software fails (including a failure resulting from such parties unwillingness or inability to maintain or upgrade the functionality of the software), our ability to bill tenants and prepare financial reports could be impaired which would adversely affect our business.

Risks Related to the REIT Industry

Legislative, regulatory or administrative changes could adversely affect us or our stockholders.

        The tax laws or regulations governing REITs or the administrative interpretations thereof may be amended at any time. We cannot predict if or when any new or amended law, regulation or administrative interpretation will be adopted, promulgated or become effective, and any such change may apply retroactively. We and our stockholders may be adversely affected by any new or amended law, regulation or administrative interpretation.

        On December 22, 2017, the Tax Cuts and Jobs Act, which we refer to as the "Tax Act", was enacted. The Tax Act enacted significant changes to the U.S. federal income tax rules for taxation of individuals and corporations, generally effective for taxable years beginning after December 31, 2017. Most of the changes applicable to individuals are temporary and apply only to taxable years beginning after December 31, 2017 and before January 1, 2026. The Tax Act makes numerous large and small changes to the tax rules that do not affect REITs directly but may affect our stockholders and may indirectly affect us.

        While the changes in the Tax Act generally appear to be favorable with respect to REITs, the extensive changes to non-REIT provisions in the Code may have unanticipated effects on us or our stockholders. Investors are urged to consult with their tax advisors with respect to the status of the Tax Act and any other regulatory or administrative developments and proposals and their potential effect on investment in our capital stock.

Failure to qualify as a REIT could result in material adverse tax consequences and could significantly reduce cash available for distributions.

        We operate so as to qualify as a REIT under the Code. Qualification as a REIT involves the application of technical and complex legal provisions for which there are limited judicial and administrative interpretations. The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a REIT. In addition, no assurance can be given that legislation, new regulations, administrative interpretations or court decisions will not significantly change the tax laws with respect to qualification as a REIT or the federal income tax consequences of such qualification. If we fail to quality as a REIT, we will be subject to federal, certain additional state and local income tax (including any applicable alternative minimum tax) on our taxable income at regular corporate rates and would not be allowed a deduction in computing our taxable income for amounts distributed to stockholders. In addition, unless entitled to relief under certain statutory provisions, we would be disqualified from treatment as a REIT for the four taxable years following the year during which qualification is lost. The additional tax would reduce significantly our net income and the cash available to pay dividends.

We are subject to certain distribution requirements that may result in our having to borrow funds at unfavorable rates.

        To obtain the favorable tax treatment associated with being a REIT, we generally are required, among other things, to distribute to our stockholders at least 90% of our ordinary taxable income

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(subject to certain adjustments) each year. To the extent that we satisfy these distribution requirements, but distribute less than 100% of our taxable income we will be subject to Federal and state corporate tax on our undistributed taxable income.

        As a result of differences in timing between the receipt of income and the payment of expenses, and the inclusion of such income and the deduction of such expenses in arriving at taxable income, and the effect of nondeductible capital expenditures, the creation of reserves and the timing of required debt service (including amortization) payments, we may need to borrow funds in order to make the distributions necessary to retain the tax benefits associated with qualifying as a REIT, even if we believe that then prevailing market conditions are not generally favorable for such borrowings. Such borrowings could reduce our net income and the cash available to pay dividends.

Compliance with REIT requirements may hinder our ability to maximize profits.

        In order to qualify as a REIT for Federal income tax purposes, we must continually satisfy tests concerning, among other things, our sources of income, the amounts we distribute to our stockholders and the ownership of our stock. We may also be required to make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution. Accordingly, compliance with REIT requirements may hinder our ability to operate solely on the basis of maximizing profits.

        In order to qualify as a REIT, we must also ensure that at the end of each calendar quarter, at least 75% of the value of our assets consists of cash, cash items, government securities and real estate assets. Any investment in securities cannot include more than 10% of the outstanding voting securities of any one issuer or more than 10% of the total value of the outstanding securities of any one issuer. In addition, no more than 5% of the value of our assets can consist of the securities of any one issuer, other than a qualified REIT security. If we fail to comply with these requirements, we must dispose of such portion of these securities in excess of these percentages within 30 days after the end of the calendar quarter in order to avoid losing our REIT status and suffering adverse tax consequences. This requirement could cause us to dispose of assets for consideration that is less than their true value and could lead to an adverse impact on our results of operations and financial condition.

Item 1B.    Unresolved Staff Comments.

        None.

Item 2.    Properties.

        As of December 31, 2017, we own 113 properties with an aggregate net book value of $660.0 million. Our occupancy rate, based on square footage, was 99.6% and 97.3% as of December 31, 2017 and 2016, respectively.

        We also participate in joint ventures that own five properties and at December 31, 2017, our investment in these unconsolidated joint ventures is $10.7 million. The occupancy rate of our joint venture properties, based on square footage, was 97.6% and 97.9% as of December 31, 2017 and 2016, respectively.

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Our Properties

        The following table details, as of December 31, 2017, certain information about our properties:

Location	Type of Property	Percentage of 2018 Contractual Rental Income		Approximate Square Footage of Building		2018 Contractual Rental Income per Square Foot
Fort Mill, SC	Industrial		4.2		701,595	$	4.02
Baltimore, MD	Industrial		3.5		367,000		6.39
Royersford, PA(1)	Retail		3.2		194,600		11.48
Round Rock, TX	Assisted Living Facility		3.0		87,560		23.27
Lebanon, TN	Industrial		3.0		540,200		3.73
Hauppauge, NY	Industrial		2.6		149,870		11.87
El Paso, TX	Industrial		2.6		419,821		4.21
Beachwood, OH(2)	Apartments		2.4		349,999		4.68
Greensboro, NC	Theater		2.3		61,213		25.92
W. Hartford, CT	Retail—Supermarket		2.3		47,174		32.97
Littleton, CO(3)	Retail		2.1		101,596		14.45
St. Louis, MO(4)	Industrial		2.1		339,094		4.17
Secaucus, NJ	Health & Fitness		2.0		44,863		30.40
El Paso, TX(5)	Retail		1.9		110,179		12.22
McCalla, AL	Industrial		1.8		294,000		4.18
Lincoln, NE	Retail		1.8		112,260		10.75
Brooklyn, NY	Office		1.8		66,000		18.15
Wheaton, IL(2)	Apartments		1.7		300,104		3.88
Knoxville, TN	Retail		1.7		35,330		32.84
St. Louis Park, MN(4)	Retail		1.7		131,710		8.50
Fort Mill, SC	Industrial		1.7		303,188		3.69
Joppa, MD	Industrial		1.6		258,710		4.08
Ankeny, IA(4)	Industrial		1.5		208,234		4.96
Tucker, GA	Health & Fitness		1.4		58,800		16.67
Pittston, PA	Industrial		1.4		249,600		3.73
Lakemoor, IL(2)	Apartments		1.2		480,684		1.70
Saco, ME	Industrial		1.2		131,400		6.12
Cedar Park, TX	Retail—Furniture		1.1		50,810		14.71
Hamilton, OH	Health & Fitness		1.1		38,000		19.38
Columbus, OH	Retail—Furniture		1.1		96,924		7.40
Indianapolis, IN	Theater		1.0		57,688		12.25
Indianapolis, IN	Industrial		1.0		125,622		5.43
Lake Charles, LA(6)	Retail		1.0		54,229		12.23
Greenville, SC(7)	Industrial		0.9		142,200		4.39
Ft. Myers, FL	Retail		0.9		29,993		20.17
Ronkonkoma, NY(4)	Industrial		0.9		90,599		6.61
Huntersville, NC	Industrial		0.9		78,319		7.50
Kennesaw, GA	Retail		0.8		32,138		17.90
Memphis, TN	Industrial		0.8		224,749		2.56
Wichita, KS	Retail—Furniture		0.8		88,108		6.35
Greenville, SC(7)	Industrial		0.8		128,000		4.35
Champaign, IL(4)	Retail		0.8		50,530		10.78
Chicago, IL	Retail—Office Supply		0.8		23,939		22.16
New Hope, MN	Industrial		0.8		122,461		4.33

20

Location	Type of Property	Percentage of 2018 Contractual Rental Income		Approximate Square Footage of Building		2018 Contractual Rental Income per Square Foot
Clemmons, NC	Retail		0.8		96,725		5.40
Melville, NY	Industrial		0.8		51,351		10.06
Tyler, TX	Retail—Furniture		0.7		72,000		6.75
Athens, GA(8)	Retail		0.7		41,280		11.63
Fayetteville, GA	Retail—Furniture		0.7		65,951		6.97
Louisville, KY	Industrial		0.7		125,370		3.60
Onalaska, WI	Retail		0.7		63,919		7.00
Cary, NC	Retail—Office Supply		0.7		33,490		13.29
Highlands Ranch, CO	Retail		0.6		43,480		10.12
New Hyde Park, NY	Industrial		0.6		38,000		10.99
Houston, TX	Retail		0.6		25,005		16.70
Richmond, VA	Retail—Furniture		0.6		38,788		10.53
Amarillo, TX	Retail—Furniture		0.6		72,027		5.64
Deptford, NJ	Retail		0.6		25,358		15.90
Virginia Beach, VA	Retail—Furniture		0.6		58,937		6.82
Lexington, KY	Retail—Furniture		0.6		30,173		12.48
Eugene, OR	Retail—Office Supply		0.5		24,978		14.88
Duluth, GA	Retail—Furniture		0.5		50,260		7.29
Newark, DE	Retail		0.5		23,547		15.40
Newport News, VA	Retail—Furniture		0.5		49,865		7.09
Woodbury, MN	Retail		0.5		49,406		7.00
El Paso, TX	Retail—Office Supply		0.5		25,000		13.81
Columbus, OH	Industrial		0.5		105,191		3.25
Houston, TX	Retail		0.5		20,087		16.00
Durham, NC	Industrial		0.5		46,181		6.95
Greensboro, NC	Retail		0.4		12,950		23.00
Hyannis, MA	Retail		0.4		9,750		30.07
Selden, NY	Retail		0.4		14,555		20.00
Gurnee, IL	Retail—Furniture		0.4		22,768		12.21
Bluffton, SC	Retail—Furniture		0.4		35,011		7.92
Naples, FL	Retail—Furniture		0.4		15,912		17.00
Pinellas Park, FL	Industrial		0.4		53,064		5.03
Carrollton, GA	Restaurant		0.4		6,012		43.87
Batavia, NY	Retail—Office Supply		0.4		23,483		11.09
Philadelphia, PA	Retail—Supermarket		0.4		57,653		4.51
Hauppauge, NY	Restaurant		0.4		7,000		36.65
Cartersville, GA	Restaurant		0.4		5,635		44.16
Richmond, VA	Restaurant		0.3		9,367		25.07
Greensboro, NC	Restaurant		0.3		6,655		35.13
W. Hartford, CT(9)	Retail		0.3		—		—
Myrtle Beach, SC	Restaurant		0.3		6,734		31.83
Somerville, MA	Retail		0.3		12,054		17.42
Kennesaw, GA	Restaurant		0.3		4,051		50.43
Bolingbrook, IL	Retail		0.3		33,111		6.10
Concord, NC	Restaurant		0.3		4,749		42.23
Cape Girardeau, MO	Retail		0.3		13,502		14.71
Lawrenceville, GA	Restaurant		0.3		4,025		48.64
Everett, MA	Retail		0.3		18,572		10.39

21

Location	Type of Property	Percentage of 2018 Contractual Rental Income		Approximate Square Footage of Building		2018 Contractual Rental Income per Square Foot
Marston Mills, MA	Retail		0.3		8,775		20.75
Miamisburg, OH	Industrial		0.2		35,707		4.57
Monroeville, PA	Retail		0.2		6,051		25.30
Reading, PA	Restaurant		0.2		2,754		52.00
Reading, PA	Restaurant		0.2		2,551		54.79
West Palm Beach, FL	Industrial		0.2		10,361		13.17
Gettysburg, PA	Restaurant		0.2		2,944		43.42
Hanover, PA	Restaurant		0.2		2,702		46.74
Houston, TX	Retail		0.2		12,000		10.50
Palmyra, PA	Restaurant		0.2		2,798		44.43
Trexlertown, PA	Restaurant		0.2		3,004		40.55
Cuyahoga Falls, OH	Retail		0.2		6,796		17.21
South Euclid, OH	Retail		0.2		11,672		9.94
Hilliard, OH	Retail		0.2		6,751		15.55
Lawrence, KS	Retail		0.2		8,600		12.21
Port Clinton, OH	Retail		0.1		6,749		15.19
Indianapolis, IN	Restaurant		0.1		12,820		6.43
Rosenberg, TX	Retail		0.1		8,000		8.79
Seattle, WA	Retail		0.1		3,053		16.00
Louisville, KY	Industrial		0.1		9,642		4.02
Crystal Lake, IL(10)	Vacant		—		32,446		—
			100.0		9,428,251

(1)

This property, a community shopping center, is leased to eleven tenants. Contractual rental income per square foot excludes 3,850 vacant square feet. Approximately 27.9% of the square footage is leased to a supermarket.

(2)

This property is ground leased to a multi-unit apartment complex owner/operator. Reflects contingent rent that may be received subject to the satisfaction of performance requirements. See Notes 4 and 7 of our consolidated financial statements.

(3)

This property, a community shopping center, is leased to 27 tenants. Contractual rental income per square foot excludes 2,570 vacant square feet.

(4)

This property has two tenants.

(5)

This property has four tenants. Contractual rental income per square foot excludes 2,395 vacant square feet.

(6)

This property has three tenants. Approximately 43.4% of the square footage is leased to a retail office supply operator.

(7)

This property has three tenants.

(8)

This property has two tenants. Approximately 48.4% of the square footage is leased to a retail office supply operator.

(9)

This property provides additional parking for the W. Hartford, CT, retail supermarket.

22

(10)

This property was operated as a hhgregg. The tenant filed for Chapter 11 bankruptcy protection, rejected the lease and in late May 2017, vacated the property. At December 31, 2017, the property is vacant.

Properties Owned by Joint Ventures

        The following table sets forth, as of December 31, 2017, information about the properties owned by joint ventures in which we are a venture partner:

Location	Type of Property	Percentage of Base Rent Payable in 2018 Contributed by the Applicable Joint Venture(1)		Approximate Square Footage of Building		2018 Base Rent per Square Foot
Manahawkin, NJ(2)	Retail		59.4		319,349	$	9.92
Milwaukee, WI	Industrial		27.1		750,300		1.75
Savannah, GA	Retail		7.4		45,973		7.77
Savannah, GA	Retail		5.1		101,550		2.44
Savannah, GA	Retail		1.0		7,959		5.93
			100.0		1,225,131

(1)

Represents the base rent payable in 2018 with respect to such joint venture property, expressed as a percentage of the aggregate base rent payable in 2018 with respect to all of our joint venture properties.

(2)

This property, a community shopping center, is leased to 25 tenants. Base rent per square foot excludes 29,068 vacant square feet.

23

Geographic Concentration

        As of December 31, 2017, the 113 properties owned by us are located in 30 states. The following table sets forth information, presented by state, related to our properties as of December 31, 2017:

State	Number of Properties		2018 Contractual Rental Income		Percentage of 2018 Contractual Rental Income		Approximate Building Square Feet
Texas		11	$	8,043,732		11.9		902,489
South Carolina		6		5,610,987		8.3		1,316,728
New York		8		5,317,586		7.9		440,858
Pennsylvania		10		4,316,651		6.4		524,657
North Carolina		8		4,193,700		6.2		340,282
Ohio		9		4,037,748		6.0		657,789
Georgia		9		3,774,291		5.6		268,152
Tennessee		3		3,750,286		5.5		800,279
Illinois		7		3,538,228		5.2		943,582
Maryland		2		3,402,779		5.0		625,710
Minnesota		3		1,994,870		2.9		303,577
Colorado		2		1,871,008		2.8		145,076
Connecticut		2		1,779,365		2.6		47,174
New Jersey		2		1,766,818		2.6		70,221
Missouri		2		1,611,325		2.4		352,596
Indiana		3		1,471,540		2.2		196,130
Virginia		4		1,398,944		2.1		156,957
Florida		4		1,278,657		1.9		109,330
Alabama		1		1,228,353		1.8		294,000
Nebraska		1		1,207,188		1.8		112,260
Iowa		1		1,033,122		1.5		208,234
Massachusetts		4		878,252		1.3		49,151
Kentucky		3		866,722		1.3		165,185
Maine		1		803,670		1.1		131,400
Kansas		2		664,617		1.0		96,708
Louisiana		1		663,125		1.0		54,229
Other		4		1,230,593		1.7		115,497
		113	$	67,734,157		100.0		9,428,251

        The following table sets forth information, presented by state, related to the properties owned by our joint ventures as of December 31, 2017:

State	Number of Properties		Our Share of the Base Rent Payable in 2018 to these Joint Ventures		Approximate Building Square Feet
New Jersey		1	$	1,439,770		319,349
Wisconsin		1		657,844		750,300
Georgia		3		325,958		155,482
		5	$	2,423,572		1,225,131

24

Mortgage Debt

        At December 31, 2017, we had:

•

69 first mortgages secured by 86 of our 113 properties; and

•

$392.5 million of mortgage debt outstanding with a weighted average interest rate of 4.22% and a weighted average remaining term to maturity of approximately 8.8 years. Substantially all of such mortgage debt bears fixed interest at rates ranging from 3.02% to 6.59% and contains prepayment penalties.

        The following table sets forth scheduled principal mortgage payments due on our properties as of December 31, 2017 (dollars in thousands):

YEAR	PRINCIPAL PAYMENTS DUE
2018	$	20,448
2019		14,610
2020		11,901
2021		20,742
2022		43,771
Thereafter		281,051
Total	$	392,523

        At December 31, 2017, our joint ventures had first mortgages on four properties with outstanding balances aggregating approximately $35.0 million, bearing interest at rates ranging from 3.49% to 5.81% with a weighted average interest rate of 4.07% and a weighted average remaining term to maturity of 6.1 years. Substantially all of these mortgages contain prepayment penalties. The following table sets forth the scheduled principal mortgage payments due for properties owned by our joint ventures as of December 31, 2017 (dollars in thousands):

YEAR	PRINCIPAL PAYMENTS DUE
2018	$	4,272
2019		877
2020		911
2021		948
2022		7,189
Thereafter		20,850
Total	$	35,047

        The mortgages on our properties are generally non-recourse, subject to standard carve-outs. The term "standard carve-outs" refers to recourse items to an otherwise non-recourse mortgage and are customary to mortgage financing. While carve-outs vary from lender to lender and transaction to transaction, the carve-outs may include, among other things, voluntary bankruptcy filings, environmental liabilities, the sale, financing or encumbrance of the property in violation of loan documents, damage to property as a result of intentional misconduct or gross negligence, failure to pay valid taxes and other claims which could create liens on property and the conversion of security deposits, insurance proceeds or condemnation awards.

Item 3.    Legal Proceedings.

        Not applicable.

Item 4.    Mine Safety Disclosures.

        Not applicable.

25

Part II

Item 5.    Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

        Our common stock is listed on the New York Stock Exchange under the symbol "OLP." The following table sets forth for the periods indicated, the high and low prices for our common stock as reported by the New York Stock Exchange and the per share distributions declared on our common stock.

	2017						2016
Quarter Ended	High		Low		Dividend Declared Per Share(1)		High		Low		Dividend Per Share(1)
March 31	$	25.45	$	21.96	$	.43	$	22.96	$	18.80	$	.41
June 30		25.24		22.21		.43		24.90		21.65		.41
September 30		24.81		22.67		.43		25.85		23.50		.41
December 31		27.70		23.61		.45		25.89		22.43		.43

(1)

The dividends in the fourth quarter of 2017 and 2016 were distributed on January 5, 2018 and January 5, 2017, respectively.

        As of March 7, 2018, there were approximately 294 holders of record of our common stock.

        We qualify as a REIT for Federal income tax purposes. In order to maintain that status, we are required to distribute to our stockholders at least 90% of our annual ordinary taxable income. The amount and timing of future distributions will be at the discretion of our board of directors and will depend upon our financial condition, earnings, business plan, cash flow and other factors. We intend to make distributions in an amount at least equal to that necessary for us to maintain our status as a real estate investment trust for Federal income tax purposes.

26

Stock Performance Graph

        The following graph compares the five year cumulative return of our common stock with the Standard and Poor's 500 index (the "S&P Index") and the FTSE-NAREIT Equity REITs, a peer group index (the "Peer Group Index"). The graph assumes $100 was invested on December 31, 2012 in our common stock, the S&P Index and the Peer Group Index and assumes the reinvestment of dividends.

	December 31,
	2012		2013		2014		2015		2016		2017
OLP	$	100.00	$	105.80	$	133.05	$	129.41	$	162.39	$	180.11
S&P 500		100.00		132.39		150.51		152.59		170.84		208.14
FTSE NAREIT Equity REITs Index		100.00		102.47		133.35		137.61		149.33		157.14

Issuer Purchases of Equity Securities

        We did not repurchase any shares of our outstanding common stock in 2017.

27

Item 6.    Selected Financial Data.

        The following table sets forth on a historical basis our selected financial data. This information should be read in conjunction with our consolidated financial statements and "Item 7. Management's Discussion and Analysis of Financial Conditions and Results of Operations" appearing elsewhere in this Annual Report on Form 10-K.

	As of and for the Year Ended December 31, (Dollars in thousands, except per share data)
	2017		2016		2015			2014			2013
OPERATING DATA
Total revenues	$	75,916	$	70,588	$	65,711	(1)	$	60,477	(1)	$	50,979
Gain on sale of real estate, net		9,837		10,087		5,392			10,180			4,705
Equity in earnings of unconsolidated joint ventures		826		1,005		412			533			651
Income from continuing operations		24,249		24,481		21,907			22,197			17,409
Income from discontinued operations		—		—		—			13			515
Net income attributable to One Liberty Properties, Inc.		24,147		24,422		20,517			22,116			17,875
Weighted average number of common shares outstanding:
Basic		17,944		16,768		15,971			15,563			14,948
Diluted		18,047		16,882		16,079			15,663			15,048
Net income per common share—basic	$	1.29	$	1.40	$	1.23		$	1.37		$	1.15
Net income per common share—diluted	$	1.28	$	1.39	$	1.22		$	1.37		$	1.14
Cash distributions declared per share of common stock	$	1.74	$	1.66	$	1.58		$	1.50		$	1.42
BALANCE SHEET DATA
Real estate investments, net	$	666,374	$	651,213	$	562,257		$	504,850		$	496,187
Unamortized intangible lease assets, net		30,525		32,645		28,978			27,387			26,035
Investment in unconsolidated joint ventures		10,723		10,833		11,350			4,907			4,906
Cash and cash equivalents		13,766		17,420		12,736			20,344			16,631
Total assets		742,586		733,445		646,499			587,162			568,693
Mortgages payable, net of deferred financing costs		393,157		394,898		331,055			288,868			275,319
Due under line of credit, net of deferred financing costs		8,776		9,064		17,744			13,154			22,772
Unamortized intangible lease liabilities, net		17,551		19,280		14,521			10,463			6,917
Total liabilities		444,084		441,518		384,073			331,258			318,603
Total equity		298,502		291,927		262,426			255,904			250,090
OTHER DATA(2)
Funds from operations	$	36,193	$	33,256	$	32,717		$	28,248		$	25,740
Funds from operations per common share:
Basic	$	1.95	$	1.91	$	1.98		$	1.76		$	1.67
Diluted	$	1.94	$	1.90	$	1.97		$	1.75		$	1.66
Adjusted funds from operations	$	39,065	$	34,848	$	31,997		$	29,703		$	27,094
Adjusted funds from operations per common share:
Basic	$	2.10	$	2.01	$	1.94		$	1.85		$	1.76
Diluted	$	2.09	$	1.99	$	1.92		$	1.84		$	1.75

(1)

Includes lease termination fees of $2.9 million and $1.3 million for 2015 and 2014, respectively.

(2)

See "—Funds from Operations and Adjusted Funds from Operations" for a discussion of the limitations on such data and a reconciliation of such data to our financial information presented in accordance with GAAP.

28

Funds from Operations and Adjusted Funds from Operations

        We compute funds from operations, or FFO, in accordance with the "White Paper on Funds From Operations" issued by the National Association of Real Estate Investment Trusts ("NAREIT") and NAREIT's related guidance. FFO is defined in the White Paper as net income (computed in accordance with generally accepting accounting principles), excluding gains (or losses) from sales of property, plus real estate depreciation and amortization (including amortization of deferred leasing costs), plus impairment write-downs of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. In computing FFO, we do not add back to net income the amortization of costs in connection with our financing activities or depreciation of non-real estate assets. We compute adjusted funds from operations, or AFFO, by adjusting from FFO for our straight-line rent accruals and amortization of lease intangibles, deducting lease termination fees and gain on extinguishment of debt and adding back amortization of restricted stock compensation, amortization of costs in connection with our financing activities (including our share of our unconsolidated joint ventures) and debt prepayment costs. Since the NAREIT White Paper does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.

        We believe that FFO and AFFO are useful and standard supplemental measures of the operating performance for equity REITs and are used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO and AFFO when reporting their operating results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assumes that the value of real estate assets diminish predictability over time. In fact, real estate values have historically risen and fallen with market conditions. As a result, we believe that FFO and AFFO provide a performance measure that when compared year over year, should reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs and other matters without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. We also consider FFO and AFFO to be useful to us in evaluating potential property acquisitions.

        FFO and AFFO do not represent net income or cash flows from operations as defined by GAAP. FFO and AFFO and should not be considered to be an alternative to net income as a reliable measure of our operating performance; nor should FFO and AFFO be considered an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity. FFO and AFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization, capital improvements and distributions to stockholders.

        Management recognizes that there are limitations in the use of FFO and AFFO. In evaluating our performance, management is careful to examine GAAP measures such as net income and cash flows from operating, investing and financing activities.

29

        The table below provides a reconciliation of net income in accordance with GAAP to FFO and AFFO for each of the indicated years (dollars in thousands):

	2017			2016			2015			2014			2013
GAAP net income attributable to One Liberty Properties, Inc.	$	24,147		$	24,422		$	20,517		$	22,116		$	17,875
Add: depreciation and amortization of properties		20,674			17,865			16,150			14,494			11,891
Add: our share of depreciation and amortization of unconsolidated joint ventures		872			893			634			374			517
Add: impairment loss		153			—			—			1,093			62
Add: amortization of deferred leasing costs		319			299			234			168			152
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures		—			—			—			—			8
Add: Federal excise tax relating to gain on sale		—			6			174			302			45
Deduct: gain on sale of real estate		(9,837	)		(10,087	)		(5,392	)		(10,180	)		—
Deduct: purchase price fair value adjustment		—			—			(960	)		—			—
Deduct: net gain on sale of real estate of unconsolidated joint ventures		—			—			—			—			(4,705	)
Adjustments for non-controlling interests		(135	)		(142	)		1,360			(119	)		(105	)
NAREIT funds from operations applicable to common stock		36,193			33,256			32,717			28,248			25,740
Deduct: straight-line rent accruals and amortization of lease intangibles		(1,329	)		(2,991	)		(1,605	)		(1,756	)		(1,274	)
Add (deduct): our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures		36			49			7			(1	)		91
Deduct: lease termination fee income		—			—			(2,886	)		(1,269	)		—
Add: amortization of restricted stock compensation		3,133			2,983			2,334			1,833			1,440
Add: prepayment costs on debt		—			577			568			1,581			171
Add: amortization and write-off of deferred financing costs		977			904			1,023			1,038			891
Add: our share of amortization and write-off of deferred financing costs of unconsolidated joint ventures		25			25			23			17			25
Adjustments for non-controlling interests		30			45			(184	)		12			10
Adjusted funds from operations applicable to common stock	$	39,065		$	34,848		$	31,997		$	29,703		$	27,094

30

        The table below provides a reconciliation of net income per common share (on a diluted basis) in accordance with GAAP to FFO and AFFO:

	2017			2016			2015			2014			2013
GAAP net income attributable to One Liberty Properties, Inc.	$	1.28		$	1.39		$	1.22		$	1.37		$	1.14
Add: depreciation and amortization of properties		1.12			1.02			.98			.90			.78
Add: our share of depreciation and amortization of unconsolidated joint ventures		.05			.05			.04			.02			.03
Add: impairment loss		.01			—			—			.07			.01
Add: amortization of deferred leasing costs		.02			.02			.02			.01			.01
Add: our share of amortization of deferred leasing costs of unconsolidated joint ventures		—			—			—			—			—
Add: Federal excise tax relating to gain on sale		—			—			.01			.02			—
Deduct: gain on sale of real estate		(.53	)		(.57	)		(.32	)		(.63	)		—
Deduct: purchase price fair value adjustment		—			—			(.06	)		—			—
Deduct: net gain on sale of real estate of unconsolidated joint ventures		—			—			—			—			(.30	)
Adjustments for non-controlling interests		(.01	)		(.01	)		.08			(.01	)		(.01	)
NAREIT funds from operations per share of common stock		1.94			1.90			1.97			1.75			1.66
Deduct: straight-line rent accruals and amortization of lease intangibles		(.07	)		(.16	)		(.10	)		(.10	)		(.07	)
Add: our share of straight-line rent accruals and amortization of lease intangibles of unconsolidated joint ventures		—			—			—			—			—
Deduct: lease termination fee income		—			—			(.17	)		(.08	)		—
Add: amortization of restricted stock compensation		.17			.17			.14			.11			.09
Add: prepayment costs on debt		—			.03			.03			.10			.01
Add: amortization and write-off of deferred financing costs		.05			.05			.06			.06			.06
Add: our share of amortization and write-off of deferred financing costs of unconsolidated joint ventures		—			—			—			—			—
Adjustments for non-controlling interests		—			—			(.01	)		—			—
Adjusted funds from operations per share of common stock	$	2.09		$	1.99		$	1.92		$	1.84		$	1.75

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Item 7.    Management's Discussion and Analysis of Financial Condition and Results of Operations.

Overview

        We are a self-administered and self-managed real estate investment trust. We are focused on acquiring, owning and managing a geographically diversified portfolio of industrial, retail (including furniture stores and supermarkets), restaurant, health and fitness and theater properties, many of which are subject to long-term leases. Most of our leases are "net leases" under which the tenant, directly or indirectly, is responsible for paying the real estate taxes, insurance and ordinary maintenance and repairs of the property. As of December 31, 2017, we own 113 properties and our joint ventures own five properties. These 118 properties are located in 30 states.

        We face a variety of risks and challenges in our business. As more fully described under "Item 1A. Risk Factors", we, among other things, face the possibility we will not be able to acquire accretive properties on acceptable terms, lease our properties on terms favorable to us or at all, our tenants may not be able to pay their rental and other obligations and we may not be able to renew or relet, on acceptable terms, leases that are expiring or otherwise terminating.

        We seek to manage the risk of our real property portfolio and the related financing arrangements by diversifying among types of properties, industries, locations, tenants, scheduled lease expirations, mortgage maturities and lenders, and by seeking to minimize our exposure to interest rate fluctuations. As a result, as of December 31, 2017:

•

our 2018 contractual rental income is derived from the following property types: 40.2% from retail, 37.1% from industrial, 4.7% from restaurant, 4.5% from health and fitness, 3.4% from theater and 10.1% from other properties,

•

properties in only one state (i.e., Texas, 11.9%) account for 10% or more of 2018 contractual rental income,

•

no tenant accounts for more than 7.1% of our 2018 contractual rental income,

•

through 2026, there is only one year in which the percentage of our contractual rental income represented by expiring leases exceeds 10% of our 2018 contractual rental income (i.e., 21.3% in 2022)—approximately 36.4% of our 2018 contractual rental income is represented by leases expiring in 2027 and thereafter,

•

after giving effect to interest rate swap agreements, substantially all of our mortgage debt bears interest at fixed rates,

•

until 2022, not more than 6% of our total scheduled principal mortgage payments is due in any year,

•

there are seven different counterparties to our portfolio of interest rate swaps: three counterparties, rated A- or better by a national rating agency, account for 72.3%, or $103.7 million, of the notional value of our swaps; and two counterparties, rated BB or better by a national rating agency, account for 21.7%, or $31.1 million, of the notional value of such swaps, and

•

we have 18 different mortgage lenders (including with respect to the mortgage debt of our unconsolidated joint ventures): four different lenders account for 30.0%, 15.9%, 14.8% and 10.3% of such debt.

        We monitor the risk of tenant non-payments through a variety of approaches tailored to the applicable situation. Generally, based on our assessment of the credit risk posed by our tenants, we monitor a tenant's financial condition through one or more of the following actions: reviewing tenant financial statements or other financial information, obtaining other tenant related information, regular

32

contact with tenant's representatives, tenant credit checks and regular management reviews of our tenants. We may sell a property if the tenant's financial condition is unsatisfactory.

        In acquiring properties, we balance an evaluation of the terms of the leases and the credit of the existing tenants with a fundamental analysis of the real estate to be acquired, which analysis takes into account, among other things, the estimated value of the property, local demographics and the ability to re-rent or dispose of the property on favorable terms upon lease expiration or early termination.

        We are sensitive to the risks facing the retail industry as a result of the growth of e-commerce. We are addressing our exposure to the retail industry by seeking to acquire industrial properties that we believe capitalize on e-commerce activities, such as e-commerce distribution and warehousing facilities, and by being especially selective in acquiring retail properties. As a result, retail properties generated 43.3%, 46.1% and 49.5%, of rental income, net, in 2017, 2016 and 2015 respectively, and industrial properties generated 34.1%, 30.8% and 27.3% of rental income, net, in 2017, 2016, 2015, respectively .

2017 Highlights

        In 2017:

•

our rental income, net, increased by $4.1 million, or 6.4%, from 2016.

•

we acquired four properties for an aggregate purchase price of $43.2 million. The acquired properties account for $3.1 million or 4.6%, of our 2018 contractual rental income.

•

we sold four properties, three of which were vacant (i.e. properties formerly tenanted by hhgregg—Niles, Illinois, Sports Authority and Joe's Crab Shack) for a net gain on sale of real estate of $9.8 million. The properties sold accounted for 0.5% and 2.6% of 2017 and 2016 rental income net, respectively.

•

we obtained proceeds of $21.2 million from mortgage financings, all of which relate to properties acquired in 2017.

•

we increased our quarterly dividend by 4.7% to $0.45 per share, commencing with the dividend declared in December 2017 and paid in January 2018.

•

we raised net proceeds of approximately $5.6 million from the issuance of 231,000 shares of common stock pursuant to our at-the-market equity offering program.

•

we re-leased four vacant properties or portions thereof (i.e., properties formerly tenanted by Pathmark, Philadelphia, PA; Quality Bakery, Columbus, OH; Payless Shoe Source, Seattle, WA; and a portion of a property located in Ronkonkoma, NY) . In 2017, we incurred an aggregate of approximately $739,000 of real estate operating expenses in carrying such properties. In 2018, we will generate an aggregate of $1.2 million of rental income from such properties and in the future, will not be responsible for the related operating expenses.

Challenges Facing Certain Retail Tenants

        Four tenants at four retail properties have ceased operations (or have advised they intend to cease operations prior to the expiration of their lease) and continue to pay rent. At December 31, 2017, the unbilled rent receivable balance, tenant origination costs and unamortized intangible lease liabilities associated with these properties were $195,000, $972,000, and $4.5 million, respectively. These properties account for $2.3 million, or 3.4%, of our contractual rental income and the weighted average remaining lease term for these tenants at these properties is 3.1 years.

        We own interests in three properties tenanted by Kmart Holdings Corp. and its subsidiaries. Kmart and its parent, Sears Holding Corporation, have experienced financial difficulties for several years. During 2017, Kmart closed two stores owned by our unconsolidated joint ventures at properties located

33

in Savannah, Georgia and Manahawkin, New Jersey. Our share of the aggregate annual base rent at those two properties is $510,000 and the leases expire in November 2018 and July 2019. The 2018 contractual rental income associated with our third Kmart property is $522,000, and the lease at this property, which Kmart recently extended, expires in 2023.

        In light of the difficulties these retail tenants are experiencing, it is possible that they may cease paying rent and/or we may not be able to re-lease the property on a timely basis. Though a tenant may close a store prior to lease expiration, such closure, without a bankruptcy or similar filing, does not relieve it of its obligation to pay rent. If these tenants stop paying rent, and we are unable to re-lease these properties on an as favorable and a timely basis, we may be adversely effected.

New Accounting Standards

        We (i) have determined that the adoption of the New Revenue Recognition Standards, as such term is used in Note 2 of our consolidated financial statements, will not have a material impact on our consolidated financial statements and (ii) are evaluating the impact on our consolidated financial statements, if any, resulting from the guidance issued by the Financial Accounting Standards Board in February 2016 with the respect to the treatment of leases. See Note 2 of our consolidated financial statements.

Transaction Subsequent to December 31, 2017

        On January 30, 2018, we sold a multi-tenant retail property located in Fort Bend, Texas, in which we held an 85% interest, with an aggregate of 42,446 square feet for gross proceeds of $9.2 million and paid off the $4.4 million mortgage. In the quarter ending March 31, 2018, we anticipate recognizing a gain on this sale of approximately $2.4 million. The non-controlling interest's share of the gain from the transaction will be approximately $800,000. In 2017, this property accounted for $732,000 of rental income and an aggregate of $448,000 of real estate operating expenses (net of tenant reimbursements), depreciation and amortization and interest expense.

Changes to Federal Tax Laws

        On December 22, 2017, the Tax Act was enacted. The Tax Act makes significant changes to the U.S. federal income tax rules for taxation of individuals and corporations, generally effective for taxable years beginning after December 31, 2017. While the changes in the Tax Act generally appear to be favorable with respect to REITs, the extensive changes to non-REIT provisions in the Code may have unanticipated effects on us or our stockholders.

Results of Operations

Comparison of Years Ended December 31, 2017 and 2016

Revenues

        The following table compares total revenues for the periods indicated:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2017		2016				% Change
Rental income, net	$	68,244	$	64,164	$	4,080		6.4
Tenant reimbursements		7,672		6,424		1,248		19.4
Total revenues	$	75,916	$	70,588	$	5,328		7.5

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        Rental income, net.    The increase is due to:

•

$5.2 million from properties acquired in 2016,

•

$1.6 million from properties acquired in 2017,

•

$267,000 of rental income from a tenant whose lease commenced April 1, 2016 at our Joppa, Maryland property, and

•

$201,000 of annual percentage rent income received from three tenants.

        Offsetting the increases are decreases of:

•

$1.2 million representing the 2016 rental income from properties sold during 2016,

•

$1.3 million representing the 2016 rental income from properties sold during 2017,

•

$496,000 representing the 2016 rental income from a property formerly tenanted by Quality Bakery, which lease expired November 2016, and is now re-tenanted, and

•

$277,000 relating to a property formerly tenanted by hhgregg (that is vacant) and a property formerly tenanted by Payless ShoeSource (that has re-leased).

        Tenant reimbursements.    Real estate tax and operating expense reimbursements increased due primarily to reimbursements of approximately $855,000 and $377,000 from properties acquired in 2016 and 2017, respectively. Tenant reimbursements generally relate to real estate expenses incurred in the same period.

Operating Expenses

        The following table compares operating expenses for the periods indicated:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2017		2016					% Change
Operating expenses:
Depreciation and amortization	$	20,993	$	18,164	$	2,829			15.6
General and administrative		11,279		10,693		586			5.5
Real estate expenses		10,736		8,931		1,805			20.2
Real estate acquisition costs		—		596		(596	)		(100.0	)
Federal excise and state taxes		481		203		278			136.9
Leasehold rent		308		308		—			—
Impairment loss		153		—		153			n/a
Total operating expenses		43,950		38,895		5,055			13.0
Operating income	$	31,966	$	31,693	$	273			0.9

        Depreciation and amortization.    The increase is due primarily to increases of: (i) $1.6 million and $761,000 of depreciation and amortization expense on the properties acquired in 2016 and 2017, respectively, and (ii) an aggregate $884,000 of write-offs of tenant origination costs related to the hhgregg and Joe's Crab Shack properties. The increase was offset by $433,000 due to the sales of properties in 2016 and 2017. We estimate that depreciation and amortization in 2018 related to the properties acquired in 2017 will be approximately $1.5 million.

        General and administrative.    The increase is due primarily to increases of: (i) $278,000 in compensation expense primarily due to higher compensation levels; (ii) $166,000 in non-cash

35

compensation expense related to the accelerated vesting of restricted stock due to the retirement of a non-management director; and (iii) $142,000 for other miscellaneous expenses.

        Real estate expenses.    The increase is due primarily to an increase of $1.3 million from properties acquired in 2016 and 2017; substantially all these expenses are rebilled to tenants and are included in Tenant reimbursements. Also contributing to the increase are: (i) $435,000 related to properties formerly tenanted by Quality Bakery and hhgregg-Crystal Lake, Illinois; and (ii) $245,000 related to the hhgregg-Niles, Illinois property that we sold. The increase was offset by a decrease of $197,000 of expenses related to the vacant property formerly tenanted by Sports Authority, which was sold in May 2017.

        Real estate acquisition costs.    The expense in 2016 primarily relates to properties purchased that year. As a result of the adoption of ASU 2017-01 in January 2017, asset acquisition costs of $387,000 in 2017 were capitalized to the related real estate assets.

        Federal excise and state taxes.    The increase primarily relates to an annual state franchise tax resulting from the 2016 and 2017 purchase of two properties located in Tennessee.

        Impairment loss.    In 2017, we recorded an impairment loss of $153,000 with respect to our property formerly tenanted by Joe's Crab Shack, which was sold in November 2017. There was no similar loss in the prior year.

Other Income and Expenses

        The following table compares other income and expenses for the periods indicated:

	Year Ended December 31,
							Increase (Decrease)
(Dollars in thousands)	2017			2016						% Change
Other income and expenses:
Equity in earnings of unconsolidated joint ventures	$	826		$	1,005		$	(179	)		(17.8	)
Prepayment costs on debt		—			(577	)		(577	)		(100.0	)
Other income		407			435			(28	)		(6.4	)
Interest:
Expense		(17,810	)		(17,258	)		552			3.2
Amortization and write-off of deferred financing costs		(977	)		(904	)		73			8.1
Income before gain on sale of real estate, net		14,412			14,394			18			0.1

        Equity in earnings of unconsolidated joint ventures.    The 2016 income includes our 50% share, or $146,000, of income obtained for permanent utility easements granted at two properties. There was no such income during 2017.

        Prepayment costs on debt.    These costs were incurred in connection with the property sales and the payoff, prior to the stated maturity, of the related mortgage debt in 2016, primarily relating to the sales of several properties.

        Other income.    Other income in 2017 includes $243,000 paid to us by a former tenant in connection with the resolution of a dispute, and $74,000 that we received for easements on a property sold in 2017. Other income in 2016 includes $356,000 that we received for such easements.

36

        Interest expense.    The following table summarizes interest expense for the periods indicated:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2017		2016					% Change
Interest expense:
Credit facility interest	$	478	$	590	$	(112	)		(19.0	)
Mortgage interest		17,332		16,668		664			4.0
Total	$	17,810	$	17,258	$	552			3.2

Credit facility interest

        The decrease in 2017 is due to the $11.2 million decrease in the weighted average balance outstanding under our line of credit. The decrease was offset by an increase of 64 basis points in the average interest rate due to the increase in the one month LIBOR rate and an increase of $81,000 in the unused facility fee primarily resulting from the $25.0 million increase in our borrowing capacity under the facility.

Mortgage interest

        The following table reflects the average interest rate on the average principal amount of outstanding mortgage debt during the applicable year:

	Year Ended December 31,
							Increase (Decrease)
(Dollars in thousands)	2017			2016						% Change
Average interest rate on mortgage debt		4.31	%		4.61	%		(.30	)%		(6.5	)
Average principal amount of mortgage debt	$	399,086		$	361,645		$	37,441			10.4

        The increase is due primarily to the increase in the average principal amount of mortgage debt outstanding, offset by a decrease in the average interest rate on outstanding mortgage debt. The increase in the average balance outstanding is due substantially to mortgage debt of $72.9 million incurred in connection with properties acquired in 2016 and 2017 and the financing or refinancing of $51.5 million of mortgage debt, net of refinanced amounts, in connection with properties acquired prior to 2016. The decrease in the average interest rate is due to the financing (including financings effectuated in connection with acquisitions) or refinancing in 2017 and 2016 of $158.8 million of gross mortgage debt (including $34.4 million of refinanced amounts) with an average interest rate of approximately 3.7%.

        We estimate that in 2018, the mortgage interest expense associated with the properties acquired in 2017 will be approximately $973,000. Interest expense for these properties in 2017 was $374,000.

Gain on sale of real estate, net.

        The following table compares gain on sale of real estate, net:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2017		2016					% Change
Gain on sale of real estate, net	$	9,837	$	10,087	$	(250	)		(2.5	)

        The gain in 2017 was realized from the sales of the Greenwood Village, Colorado property, the Kohl's property in Kansas City, Missouri, and the former hhgregg property in Niles, Illinois. See "—Comparison of Years Ended December 31, 2016 and 2015—Other Income and Expenses" for information regarding the gain on sale in 2016.

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Comparison of Years Ended December 31, 2016 and 2015

Revenues

        The following table compares total revenues for the periods indicated:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2016		2015					% Change
Rental income, net	$	64,164	$	58,973	$	5,191			8.8
Tenant reimbursements		6,424		3,852		2,572			66.8
Lease termination fees		—		2,886		(2,886	)		(100.0	)
Total revenues	$	70,588	$	65,711	$	4,877			7.4

        Rental income, net.    The increase is due primarily to (i) $4.4 million earned from 11 properties acquired in 2016 and $2.7 million from seven properties acquired in 2015; (ii) the $530,000 write-off against rental income in 2015 of the entire balance of unbilled rent receivable and the intangible lease asset related to the 2015 lease termination fees described below; and (iii) $383,000 from three replacement tenants that leased vacant space at one of our El Paso, Texas properties.

        Offsetting the increase are decreases of (i) $2.1 million due to the 2016 sale of 12 properties (the "2016 Sold Properties"), including a portfolio of eight convenience stores (the "Pantry Portfolio"); and (ii) $909,000 from three vacant properties which were leased to Pathmark, Sports Authority and Quality Bakery (the "Vacant Properties"). During 2016, Pathmark did not generate rental income and Sports Authority and Quality Bakery generated an aggregate of $751,000 of rental income.

        Tenant reimbursements.    Real estate tax and operating expense reimbursements in 2016 increased by (i) $781,000 and $644,000 from the properties acquired in 2016 and 2015, respectively, and (ii) $1.1 million from other properties in our portfolio. We recognized an equivalent amount of real estate expense for these tenant reimbursements.

        Lease termination fees.    In 2015, we received lease termination fees of $2.9 million in lease buy-out transactions and re-leased substantially all of such premises simultaneously with the lease terminations. There were no such fees in 2016.

Operating Expenses

        The following table compares operating expenses for the periods indicated:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2016		2015					% Change
Operating expenses:
Depreciation and amortization	$	18,164	$	16,384	$	1,780			10.9
General and administrative		10,693		9,527		1,166			12.2
Real estate expenses		8,931		6,047		2,884			47.7
Real estate acquisition costs		596		449		147			32.7
Federal excise and state taxes		203		343		(140	)		(40.8	)
Leasehold rent		308		308		—			—
Total operating expenses		38,895		33,058		5,837			17.7
Operating income	$	31,693	$	32,653	$	(960	)		(2.9	)

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        Depreciation and amortization.    Approximately $1.5 million and $932,000 of the increase is due to depreciation expense on the properties acquired in 2016 and 2015, respectively, approximately $365,000 of the increase is due to depreciation on property improvements and approximately $94,000 is due to amortization of leasing commissions. Offsetting these increases are decreases in 2016 of (i) $440,000 of expenses related to the 2016 Sold Properties and (ii) $657,000 of amortization and write-offs of intangibles and lease commissions. The $657,000 includes a $380,000 write-off of tenant origination costs in 2015 related to the Pathmark property and the balance relates primarily to the write-off of intangibles and lease commissions with respect to leases that expired or terminated in 2015 and 2016.

        General and administrative.    Contributing to the increase were increases of: (i) $649,000 in non-cash compensation expense primarily related to the increase in the number of shares of restricted stock granted in 2016 and the higher fair value of the awards granted in 2016 in comparison to the awards granted in 2011 that vested in 2016; (ii) $286,000 for third party audit and audit related services; and (iii) $97,000 in compensation expense payable to our full and part time personnel, primarily due to higher levels of compensation.

        Real estate expenses.    The increase in 2016 is due primarily to increases of $1.4 million from properties acquired in 2015 and 2016 and $719,000 from other properties in our portfolio. Most of these increases are rebilled to tenants and are included in Tenant reimbursement revenues. Also contributing to the increase in 2016 are $587,000 of expenses related to taxes and maintenance of the Vacant Properties and $165,000 due to the change in which property management fees are determined pursuant to the Compensation and Services Agreement.

        Real estate acquisition costs.    The increase is due to increased acquisition activity in 2016.

        Federal excise and state taxes.    We incurred Federal excise tax of $174,000 in 2015 and $6,000 in 2016 because profitable property sales resulted in calendar year distributions to stockholders being less than the amount required to be distributed during such year. In 2016, we deferred a $6.8 million taxable gain on a property sale through an IRC Section 1031 exchange.

Other Income and Expenses

        The following table compares other income and expenses for the periods indicated:

	Year Ended December 31,
							Increase (Decrease)
(Dollars in thousands)	2016			2015						% Change
Other income and expenses:
Equity in earnings of unconsolidated joint ventures	$	1,005		$	412		$	593			143.9
Purchase price fair value adjustment		—			960			(960	)		(100.0	)
Prepayment costs on debt		(577	)		(568	)		9			1.6
Other income		435			108			327			302.8
Interest:
Expense		(17,258	)		(16,027	)		1,231			7.7
Amortization and write-off of deferred financing costs		(904	)		(1,023	)		(119	)		(11.6	)
Income before gain on sale of real estate, net		14,394			16,515			(2,121	)		(12.8	)

        Equity in earnings of unconsolidated joint ventures.    The increase in 2016 is due primarily to an increase of $633,000 in our share of income from the Manahawkin, New Jersey retail center which was acquired in June 2015. The year ended December 31, 2015 included our $400,000 share of acquisition expenses associated with the purchase of this center.

        Purchase price fair value adjustment.    In connection with the acquisition of our joint venture partner's 50% interest in a property located in Lincoln, Nebraska, we recorded this adjustment,

39

representing the difference between the book value of the preexisting equity investment on the purchase date of March 31, 2015 and the fair value of the investment.

        Prepayment costs on debt.    These costs were incurred primarily in connection with property sales and the payoff, prior to the stated maturity, of the related mortgage debt. In 2016, these costs related primarily to the sales of the Tomlinson, Pennsylvania property and the Pantry Portfolio. In 2015, these costs related primarily to the sale of the Cherry Hill, New Jersey property.

        Other income.    As a result of a partial condemnation of land and easements obtained by the Colorado Department of Transportation ("CDOT") at our Greenwood Village, Colorado property, we received $509,000 from CDOT, of which $356,000 is attributable to easements and is included in Other income in 2016. See "—Gain on sale of real estate, net" below for the gain resulting from the balance.

        Interest expense.    The following table summarizes interest expense for the periods indicated:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2016		2015					% Change
Interest expense:
Credit facility interest	$	590	$	594	$	(4	)		(.7	)
Mortgage interest		16,668		15,433		1,235			8.0
Total	$	17,258	$	16,027	$	1,231			7.7

Credit facility interest

        The decrease in 2016 is due to the $3.8 million decrease in the weighted average balance outstanding under our line of credit, offset by an increase of 28 basis points in the average interest rate from 1.95% to 2.23%, as well as an increase in the unused fee resulting from a $25.0 million increase in our borrowing capacity in connection with the November 2016 amendment and restatement of the credit facility.

Mortgage interest

        The following table reflects the average interest rate on the average principal amount of outstanding mortgage debt during the applicable year:

	Year Ended December 31,
							Increase (Decrease)
(Dollars in thousands)	2016			2015						% Change
Interest rate on mortgage debt		4.61	%		4.96	%		(.35	)%		(7.1	)
Principal amount of mortgage debt	$	361,645		$	310,991		$	50,654			16.3

        The increase in mortgage interest expense is due to the increase in the average principal amount of mortgage debt outstanding, offset by a decrease in the average interest rate on outstanding mortgage debt. The increase in the average balance outstanding is substantially due to the incurrence of mortgage debt of $89.5 million in connection with properties acquired in 2015 and 2016 and the financing or refinancing of $85.2 million of mortgage debt, net of refinanced amounts, in connection with properties acquired prior to 2015. The decrease in the average interest rate is due to the financing (including financings effectuated in connection with acquisitions) or refinancing in 2016 and 2015 of $217.2 million of gross mortgage debt (including $42.6 million of refinanced amounts) with an average interest rate of approximately 3.8%.

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        Amortization and write-off of deferred financing costs.    The decrease in 2016 is primarily due to the write-off in 2015 of $249,000 relating to the sale of the Cherry Hill, New Jersey property. This decrease was offset by the write-off and increased amortization in 2016 of $66,000 relating to the new line of credit and other write-offs of $57,000 relating to property sales.

Gain on sale of real estate, net.

        The following table compares gain on sale of real estate, net,:

	Year Ended December 31,
					Increase (Decrease)
(Dollars in thousands)	2016		2015				% Change
Gain on sale of real estate, net	$	10,087	$	5,392	$	4,695		87.1

        The gain for 2016 was realized from (i) the sales of 12 properties, including the Pantry Portfolio and (ii) a $116,000 gain on the partial condemnation of land at our former Sports Authority property in Greenwood Village, Colorado. The 2015 gain was realized from the January 2015 sale of the Cherry Hill, New Jersey property. The minority partner's share of the gain on the Cherry Hill, New Jersey property was $1.3 million, which is the primary reason for the decrease in net income attributable to non-controlling interests for 2016 as compared to 2015.

Liquidity and Capital Resources

        Our sources of liquidity and capital include cash flow from operations, cash and cash equivalents, borrowings under our revolving credit facility, refinancing existing mortgage loans, obtaining mortgage loans secured by our unencumbered properties, issuance of our equity securities and property sales. In 2017, we obtained $21.2 million of proceeds from mortgage financings, $5.6 million of net proceeds from the sale of our common stock pursuant to our at-the-market equity offering program and $5.9 million from a fixed rent payment, which is deferred over the lease term, received from a ground lease tenant in connection with its obtaining supplemental mortgage financing. See Note 7 to our consolidated financial statements. Our available liquidity at March 5, 2018 was approximately $102.8 million, including approximately $6.7 million of cash and cash equivalents (net of the credit facility's required $3.0 million deposit maintenance balance) and, subject to borrowing base requirements, up to $96.1 million available under our revolving credit facility.

Liquidity and Financing

        We expect to meet our (i) operating cash requirements (including debt service and dividends) principally from cash flow from operations and (ii) capital requirements of $4.2 million of building expansion and improvements at our property tenanted by L-3 located in Hauppauge, NY, from cash flow from operations, our available cash and cash equivalents, proceeds from the sale of our common stock and, to the extent permitted, our credit facility. We and our joint venture partner are also contemplating a significant redevelopment of our multi-tenant shopping center in Manahawkin, New Jersey—we anticipate that the capital expenditures that may be incurred if such property is redeveloped will be funded by the foregoing sources as well as equity contributions from us and our joint venture partner.

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        The following table sets forth, as of December 31, 2017, information with respect to our mortgage debt that is payable from January 2018 through December 31, 2020 (excluding our unconsolidated joint ventures):

(Dollars in thousands)	2018		2019		2020		Total
Amortization payments	$	10,188	$	11,125	$	11,901	$	33,214
Principal due at maturity		10,260		3,485		—		13,745
Total	$	20,448	$	14,610	$	11,901	$	46,959

        At December 31, 2017, our unconsolidated joint ventures had first mortgages on four properties with outstanding balances aggregating approximately $35.0 million, bearing interest at rates ranging from 3.49% to 5.81% (i.e., a 4.07% weighted average interest rate) and maturing between 2018 and 2025 (i.e., a weighted average remaining term to maturity of 6.1 years).

        We intend to make debt amortization payments from operating cash flow and, though no assurance can be given that we will be successful in this regard, generally intend to refinance, extend or payoff the mortgage loans which mature in 2018 through 2020. We intend to repay the amounts not refinanced or extended from our existing funds and sources of funds, including our available cash, proceeds from the sale of our common stock and our credit facility (to the extent available).

        We continually seek to refinance existing mortgage loans on terms we deem acceptable to generate additional liquidity. Additionally, in the normal course of our business, we sell properties when we determine that it is in our best interests, which also generates additional liquidity. Further, since each of our encumbered properties is subject to a non-recourse mortgage (with standard carve-outs), if our in-house evaluation of the market value of such property is less than the principal balance outstanding on the mortgage loan, we may determine to convey, in certain circumstances, such property to the mortgagee in order to terminate our mortgage obligations, including payment of interest, principal and real estate taxes, with respect to such property.

        Typically, we utilize funds from our credit facility to acquire a property and, thereafter secure long-term, fixed rate mortgage debt on such property. We apply the proceeds from the mortgage loan to repay borrowings under the credit facility, thus providing us with the ability to re-borrow under the credit facility for the acquisition of additional properties.

Credit Facility

        Subject to borrowing base requirements, we can borrow up to $100.0 million pursuant to our revolving credit facility which is available to us for the acquisition of commercial real estate, repayment of mortgage debt, property improvements and general working capital purposes; provided, that if used for property improvements and working capital purposes, the amount outstanding for such purposes will not exceed the lesser of $15.0 million and 15% of the borrowing base and if used for working capital purposes, will not exceed $10.0 million. The facility matures December 31, 2019 and bears interest equal to the one month LIBOR rate plus the applicable margin. The applicable margin 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 300 basis points if such ratio is greater than 65%. The applicable margin was 175 basis points for 2016 and 2017. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and $100.0 million. The credit facility requires the maintenance of $3.0 million in average deposit balances. For 2017, the average interest rate on the facility was approximately 2.87% and as of March 6, 2018, the rate on the facility was 3.33%.

        The terms of our revolving credit facility include certain restrictions and covenants which limit, among other things, the incurrence of liens, and which require compliance with financial ratios relating

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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 debt to value, the minimum level of net income, certain investment limitations and the minimum value of unencumbered properties and the number of such properties. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under our credit facility. At December 31, 2017, we were in compliance in all material respects with the covenants under this facility.

Contractual Obligations

        The following sets forth our contractual obligations as of December 31, 2017:

	Payment due by period
(Dollars in thousands)	Less than 1 Year		1 - 3 Years		4 - 5 Years		More than 5 Years		Total
Contractual Obligations
Mortgages payable—interest and amortization	$	26,833	$	53,376	$	52,190	$	110,928	$	243,327
Mortgages payable—balances due at maturity		10,260		3,485		40,002		214,048		267,795
Credit facility(1)		—		9,400		—		—		9,400
Purchase obligations(2)		7,520		6,425		5,895		—		19,840
Total	$	44,613	$	72,686	$	98,087	$	324,976	$	540,362

(1)

Represents the amount outstanding at December 31, 2017. We may borrow up to $100.0 million under such facility.

(2)

Assumes that (i) $2.9 million will be payable annually during the next five years pursuant to the compensation and services agreement and (ii) $4.2 million will be spent in contractually required building expansion and tenant improvements at the L-3, Hauppauge, New York property in 2018. Excludes $3.0 million for tenant improvements at our Greensboro, North Carolina property, which obligation was satisfied in January 2018.

        As of December 31, 2017, we had $392.5 million of mortgage debt outstanding (excluding mortgage indebtedness of our unconsolidated joint ventures), all of which is non-recourse (subject to standard carve-outs). We expect that mortgage interest and amortization payments (excluding repayments of principal at maturity) of approximately $80.2 million due through 2020 will be paid primarily from cash generated from our operations. We anticipate that principal balances due at maturity through 2020 of $13.7 million will be paid primarily from cash and cash equivalents and mortgage financings and refinancings. If we are unsuccessful in refinancing our existing indebtedness or financing our unencumbered properties, our cash flow, funds available under our credit facility and available cash, if any, may not be sufficient to repay all debt obligations when payments become due, and we may need to issue additional equity, obtain long or short-term debt, or dispose of properties on unfavorable terms.

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Statement of Cash Flows

        The following discussion of our cash flows is based on the consolidated statements of cash flows and is not meant to be a comprehensive discussion of the changes in our cash flows for the years presented.

	For the Years ended December 31,
(Dollars in thousands)	2017			2016			2015
Cash flow provided by operating activities	$	44,557		$	31,405		$	34,484
Cash flow used in investing activities		(23,444	)		(80,911	)		(73,498	)
Cash flow (used in) provided by financing activities		(24,767	)		54,190			31,406
Net (decrease) increase in cash and cash equivalents		(3,654	)		4,684			(7,608	)
Cash and cash equivalents at beginning of year		17,420			12,736			20,344
Cash and cash equivalents at end of year	$	13,766		$	17,420		$	12,736

        Our principal source of operating cash flow is the net funds generated from the operation of our properties. Our properties provide a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service and fund quarterly dividend requirements.

        The decrease in cash used in investing activities during 2017 compared to 2016 is due primarily to the decrease in purchases of real estate in 2017, offset by the decrease in net proceeds from sales of real estate in 2017.

        The increase in cash flow used in financing activities during 2017 compared to 2016 is due primarily to the net decrease of $65.6 million in financings/repayments of mortgages payable and to a lesser extent, the net increase of $7.7 million in repayments (net of proceeds from drawdowns) on the credit facility in 2017. The increase in cash flow used in financing activities also resulted from a $20.2 million decrease in net proceeds from the sale of our common stock in 2017.

Cash Distribution Policy

        We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. Accordingly, to qualify as a REIT, we must, among other things, meet a number of organizational and operational requirements, including a requirement that we distribute currently at least 90% of our ordinary taxable income to our stockholders. It is our current intention to comply with these requirements and maintain our REIT status. As a REIT, we generally will not be subject to corporate federal, state or local income taxes on taxable income we distribute currently (in accordance with the Internal Revenue Code and applicable regulations) to our stockholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal, state and local income taxes at regular corporate rates and may not be able to qualify as a REIT for four subsequent tax years. Even if we qualify for federal taxation as a REIT, we may be subject to certain state and local taxes on our income and to federal income taxes on our undistributed taxable income (i.e., taxable income not distributed in the amounts and in the time frames prescribed by the Internal Revenue Code and applicable regulations thereunder) and are subject to Federal excise taxes on our undistributed taxable income.

        It is our intention to pay to our stockholders within the time periods prescribed by the Internal Revenue Code no less than 90%, and, if possible, 100% of our annual taxable income, including taxable gains from the sale of real estate. It will continue to be our policy to make sufficient distributions to stockholders in order for us to maintain our REIT status under the Internal Revenue Code.

        Our board of directors reviews the dividend policy regularly to determine if any changes to our dividend should be made.

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Off-Balance Sheet Arrangements

        We are not a party to any off-balance sheet arrangements other than with respect to land parcels owned by us and located in Lakemoor, Illinois, Wheaton, Illinois and Beachwood, Ohio. These parcels are improved by multi-family complexes and we ground leased the parcels to the owner/operators of such complexes. These ground leases generated $3.7 million of rental income, net, during 2017. At December 31, 2017, our maximum exposure to loss with respect to these properties is $34.0 million, representing the carrying value of the land; our leasehold positions are subordinate to an aggregate of $158.2 million of mortgage debt incurred by our tenants, the owner/operators of the multi-family complexes. These owner/operators are affiliated with one another. We do not believe that this type of off-balance sheet arrangement has been or will be material to our liquidity and capital resource positions. See Notes 4 and 7 to our consolidated financial statements for additional information regarding these arrangements.

Critical Accounting Policies

        Our significant accounting policies are more fully described in Note 2 to our consolidated financial statements included in this Annual Report on Form 10-K. Certain of our accounting policies are particularly important to an understanding of our financial position and results of operations and require the application of significant judgment by our management; as a result they are subject to a degree of uncertainty. These critical accounting policies include the following, discussed below.

Purchase Accounting for Acquisition of Real Estate

        The fair value of real estate acquired is allocated to acquired tangible assets, consisting of land and building, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases and other value of in-place leases based in each case on their fair values. The fair value of the tangible assets of an acquired property (which includes land, building and building improvements) is determined by valuing the property as if it were vacant, and the "as-if-vacant" value is then allocated to land, building and building improvements based on our determination of relative fair values of these assets. We assess fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. The fair values associated with below-market rental renewal options are determined based on our experience and the relevant facts and circumstances that existed at the time of the acquisitions. The portion of the values of the leases associated with below-market renewal options that we deem likely to be exercised are amortized to rental income over the respective renewal periods. The allocation made by us may have a positive or negative effect on net income and may have an effect on the assets and liabilities on the balance sheet.

Revenues

        Our revenues, which are substantially derived from rental income, include rental income that our tenants pay in accordance with the terms of their respective leases reported on a straight-line basis over the non-cancellable term of each lease. Since many of our leases provide for rental increases at specified intervals, straight-line basis accounting requires us to record as an asset and include in revenues, unbilled rent receivables which we will only receive if the tenant makes all rent payments required through the expiration of the term of the lease. Accordingly, our management must determine, in its judgment, that the unbilled rent receivable applicable to each specific tenant is collectible. We review unbilled rent receivables on a quarterly basis and take into consideration the tenant's payment history and the financial condition of the tenant. In the event that the collectability of an unbilled rent receivable is in doubt, we are required to take a reserve against the receivable or a direct write-off of the receivable, which has an adverse effect on net income for the year in which the reserve or direct write-off is taken, and will decrease total assets and stockholders' equity.

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Carrying Value of Real Estate Portfolio

        We review our real estate portfolio on a quarterly basis to ascertain if there are any indicators of impairment to the value of any of our real estate assets, including deferred costs and intangibles, to determine if there is any need for an impairment charge. In reviewing the portfolio, we examine the type of asset, the current financial statements or other available financial information of the tenant, the economic situation in the area in which the asset is located, the economic situation in the industry in which the tenant is involved and the timeliness of the payments made by the tenant under its lease, as well as any current correspondence that may have been had with the tenant, including property inspection reports. For each real estate asset owned for which indicators of impairment exist, we perform a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset to its carrying amount. If the undiscounted cash flows are less than the asset's carrying amount, an impairment loss is recorded to the extent that the estimated fair value is less than the asset's carrying amount. The estimated fair value is determined using a discounted cash flow model of the expected future cash flows through the useful life of the property. Real estate assets that are expected to be disposed of are valued at the lower of carrying amount or fair value less costs to sell on an individual asset basis. We generally do not obtain any independent appraisals in determining value but rely on our own analysis and valuations. Any impairment charge taken with respect to any part of our real estate portfolio will reduce our net income and reduce assets and stockholders' equity to the extent of the amount of any impairment charge, but it will not affect our cash flow or our distributions until such time as we dispose of the property.

Item 7A.    Quantitative and Qualitative Disclosures About Market Risk.

        Our primary market risk exposure is the effect of changes in interest rates on the interest cost of draws on our revolving variable rate credit facility and the effect of changes in the fair value of our interest rate swap agreements. Interest rates are highly sensitive to many factors, including governmental monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control.

        We use interest rate swaps to limit interest rate risk on variable rate mortgages. These swaps are used for hedging purposes-not for speculation. We do not enter into interest rate swaps for trading purposes. At December 31, 2017, our aggregate liability in the event of the early termination of our swaps was $1.6 million.

        At December 31, 2017, we had 30 interest rate swap agreements outstanding (including two held by three of our unconsolidated joint ventures). The fair market value of the interest rate swaps is dependent upon existing market interest rates and swap spreads, which change over time. As of December 31, 2017, if there had been an increase of 100 basis points in forward interest rates, the fair market value of the interest rate swaps would have increased by approximately $7.5 million and the net unrealized gain on derivative instruments would have increased by $7.5 million. If there were a decrease of 100 basis points in forward interest rates, the fair market value of the interest rate swaps would have decreased by approximately $8.1 million and the net unrealized gain on derivative instruments would have decreased by $8.1 million. These changes would not have any impact on our net income or cash.

        Our mortgage debt, after giving effect to the interest rate swap agreements, bears interest at fixed rates and accordingly, the effect of changes in interest rates would not impact the amount of interest expense that we incur under these mortgages.

        Our variable rate credit facility is sensitive to interest rate changes. At December 31, 2017, a 100 basis point increase of the interest rate on this facility would increase our related interest costs by approximately $94,000 per year and a 100 basis point decrease of the interest rate would decrease our related interest costs by approximately $94,000 per year.

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        The fair market value of our long-term debt is estimated based on discounting future cash flows at interest rates that our management believes reflect the risks associated with long term debt of similar risk and duration.

        The following table sets forth our debt obligations by scheduled principal cash flow payments and maturity date, weighted average interest rates and estimated fair market value at December 31, 2017:

	For the Year Ended December 31,
(Dollars in thousands)	2018			2019			2020			2021			2022			Thereafter			Total			Fair Market Value
Fixed rate:
Long-term debt	$	20,448		$	14,610		$	11,901		$	20,742		$	43,771		$	281,051		$	392,523		$	397,103
Weighted average interest rate		4.32	%		4.24	%		4.35	%		4.27	%		4.05	%		4.23	%		4.22	%		4.25	%
Variable rate:
Long-term debt(1)		—		$	9,400			—			—			—			—		$	9,400			—

(1)

Our credit facility matures on December 31, 2019 and bears interest at the 30 day LIBOR rate plus the applicable margin. The applicable margin varies based on the ratio of total debt to total value. See "Item 7. Management's Discussion and Analysis of Financial Conditions and Results of Operations—Liquidity and Capital Resources—Credit Facility."

Item 8.    Financial Statements and Supplementary Data.

        This information appears in Item 15(a) of this Annual Report on Form 10-K, and is incorporated into this Item 8 by reference thereto.

Item 9.    Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

        Not applicable.

Item 9A.    Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

        A review and evaluation was performed by our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") as of the end of the period covered by this Annual Report on Form 10-K. Based on that review and evaluation, the CEO and CFO have concluded that our disclosure controls and procedures, as designed and implemented as of December 31, 2017, were effective.

Changes in Internal Controls over Financial Reporting

        There have been no changes in our internal controls over financial reporting, as defined in in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act, that occurred during the three months ended December 31, 2017 that materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

Management's Report on Internal Control Over Financial Reporting

        Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, a company's principal executive and principal financial officers and effected by a company's board,

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management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that:

•

pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of a company;

•

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures of a company are being made only in accordance with authorizations of management and directors of a company; and

•

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of a company's assets that could have a material effect on the financial transactions.

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

        Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of our internal control over financial reporting as of December 31, 2017. In making this assessment, our management used criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control—Integrated Framework (2013).

        Based on its assessment, our management concluded that, as of December 31, 2017, our internal control over financial reporting was effective based on those criteria.

        Our independent registered public accounting firm, Ernst & Young LLP, have issued a report on management's assessment of the effectiveness of internal control over financial reporting. This report appears on page F-2 of this Annual Report on Form 10-K.

Item 9B.    Other Information.

        The following discussion supplements and updates the discussion (the "Prior Discussion") contained in our prospectus dated May 10, 2017 under the heading "Federal Income Tax Considerations" and supersedes the Prior Discussion to the extent the discussion below is inconsistent with the Prior Discussion. The Prior Discussion and the discussion below (collectively referred to as the "Tax Discussion") are subject to the qualifications set forth therein and below. The tax treatment of security holders will vary depending upon the holder's particular situation, and the Tax Discussion addresses only holders that hold securities as a capital asset and does not deal with all aspects of taxation that may be relevant to particular holders in light of their personal investment or tax circumstances. The Tax Discussion also does not deal with all aspects of taxation that may be relevant to certain types of holders, to which special provisions of the federal income tax laws apply, including:

•

dealers in securities or currencies;

•

traders in securities that elect to use a mark-to-market method of accounting for their securities holdings;

•

banks and other financial institutions;

•

tax-exempt organizations;

•

certain insurance companies;

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•

persons liable for the alternative minimum tax;

•

persons that hold securities as a hedge against interest rate or currency risks or as part of a straddle or conversion transaction;

•

non-U.S. individuals and foreign corporations; and

•

holders whose functional currency is not the U.S. dollar.

        The statements in the Tax Discussion are based on the Code, its legislative history, current and proposed regulations under the Code, published rulings and court decisions. This summary describes the provisions of these sources of law only as they are currently in effect. All of these sources of law may change at any time, and any change in the law may apply retroactively. We cannot assure you that new laws, interpretations of law or court decisions, any of which may take effect retroactively, will not cause any statement in this discussion to be inaccurate.

        As supplemented and updated by this summary, and by the discussion in any applicable prospectus supplement, investors should review the discussion in the prospectus under the heading "Federal Income Tax Considerations" for a more detailed summary of the federal income tax consequences of the purchase, ownership, and disposition of our securities and our election to be subject to federal income tax as a REIT.

        PROSPECTIVE INVESTORS SHOULD CONSULT THEIR TAX ADVISORS REGARDING THE U.S. FEDERAL, STATE, LOCAL, FOREIGN AND OTHER TAX CONSEQUENCES OF THE ACQUISITION, OWNERSHIP, AND DISPOSITION OF OUR SECURITIES.

Enactment of Tax Act

        On December 22, 2017, the Tax Cuts and Jobs Act, which we refer to as the "Tax Act", was enacted. The Tax Act makes major changes to the Code, including a number of provisions of the Code that may affect the taxation of REITs and the holders of their securities. The most significant of these provisions are described below. The individual and collective impact of these changes on REITs and their security holders is uncertain and may not become evident for some period of time. Prospective investors should consult their tax advisors regarding the implications of the Tax Act on their investment.

Revised Individual Tax Rates and Deductions

        The Tax Act adjusted the tax brackets and reduced the top federal income tax rate for individuals from 39.6% to 37%. In addition, numerous deductions were eliminated or limited, including the deduction for state and local taxes being limited to $10,000 per year. These individual income tax changes are generally effective beginning in 2018, but without further legislation, they will sunset after 2025.

Pass-Through Business Income Tax Rate Lowered through Deduction

        Under the Tax Act, individuals, trusts, and estates generally may deduct 20% of "qualified business income" (generally, domestic trade or business income other than certain investment items) of a partnership, S corporation, or sole proprietorship. In addition, "qualified REIT dividends" (i.e., REIT dividends other than capital gain dividends and portions of REIT dividends designated as qualified dividend income eligible for capital gain tax rates) and certain other income items are eligible for the deduction. The deduction, however, is subject to complex limitations to its availability. As with the other individual income tax changes, the provisions related to the deduction are effective beginning in 2018, but without further legislation, they will sunset after 2025.

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Graduated Corporate Tax Rates Replaced With Single Rate; Elimination of Corporate Alternative Minimum Tax

        The Tax Act eliminated graduated corporate income tax rates with a maximum rate of 35% and replaced them with a single corporate income tax rate of 21%, and reduced the dividends received deduction for certain corporate subsidiaries. The 21% rate may also apply to (i) our net income for any taxable period in which we fail to qualify as a REIT, or (ii) our net income from nonqualifying assets during a period in which we fail to satisfy the REIT asset test but otherwise qualify as a REIT. The Tax Act also permanently eliminated the corporate alternative minimum tax. These provisions are effective beginning in 2018.

Net Operating Loss Modifications

        The Tax Act limited the net operating loss ("NOL") deduction to 80% of taxable income (before the deduction). The Tax Act also generally eliminated NOL carrybacks for individuals and non-REIT corporations (NOL carrybacks did not apply to REITs under prior law) but allows indefinite NOL carryforwards. The new NOL rules apply beginning in 2018.

Limitations on Interest Deductibility

        The Tax Act limits the net interest expense deduction of a business to 30% of the sum of adjusted taxable income, business interest, and certain other amounts. The Tax Act allows a real property trade or business to elect out of such limitation so long as it uses the alternative depreciation system which lengthens the depreciation recovery period with respect to certain property. The limitation with respect to the net interest expense deduction applies beginning in 2018.

Withholding Rate Reduced

        The Tax Act reduced the highest rate of withholding with respect to distributions to non-U.S. holders that are treated as attributable to gains from the sale or exchange of U.S. real property interests from 35% to 21%. These provisions are effective beginning in 2018.

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PART III

Item 10.    Directors, Executive Officers and Corporate Governance.

        Apart from certain information concerning our executive officers which is set forth in Part I of this Annual Report, additional information required by this Item 10 shall be included in our proxy statement for our 2018 annual meeting of stockholders, to be filed with the SEC not later than April 30, 2018, and is incorporated herein by reference.

EXECUTIVE OFFICERS

        Set forth below is a list of our executive officers whose terms expire at our 2018 annual board of directors' meeting. The business history of our officers, who are also directors, will be provided in our proxy statement to be filed pursuant to Regulation 14A not later than April 30, 2018.

NAME	AGE		POSITION WITH THE COMPANY
Matthew J. Gould*		58	Chairman of the Board
Fredric H. Gould*		82	Vice Chairman of the Board
Patrick J. Callan, Jr.		55	President, Chief Executive Officer and Director
Lawrence G. Ricketts, Jr.		41	Executive Vice President and Chief Operating Officer
Jeffrey A. Gould*		52	Senior Vice President and Director
David W. Kalish**		70	Senior Vice President and Chief Financial Officer
Mark H. Lundy		55	Senior Vice President and Secretary
Israel Rosenzweig		70	Senior Vice President
Karen Dunleavy		59	Vice President, Financial
Alysa Block		57	Treasurer
Richard M. Figueroa		50	Vice President and Assistant Secretary
Isaac Kalish**		42	Vice President and Assistant Treasurer
Justin Clair		35	Vice President

*

Matthew J. Gould and Jeffrey A. Gould are Fredric H. Gould's sons.

**

Isaac Kalish is David W. Kalish's son.

        Lawrence G. Ricketts, Jr.    Mr. Ricketts has been our Chief Operating Officer since 2008, Vice President from 1999 through 2006 and Executive Vice President since 2006.

        David W. Kalish.    Mr. Kalish has served as our Senior Vice President and Chief Financial Officer since 1990 and as Senior Vice President, Finance of BRT Apartments Corp. since 1998. Since 1990, he has served as Vice President and Chief Financial Officer of the managing general partner of Gould Investors L.P., a master limited partnership involved primarily in the ownership and operation of a diversified portfolio of real estate assets. Mr. Kalish is a certified public accountant.

        Mark H. Lundy.    Mr. Lundy has served as our Secretary since 1993, as our Vice President since 2000 and as our Senior Vice President since 2006. Mr. Lundy has been a Vice President of BRT Apartments Corp. from 1993 to 2006, its Senior Vice President since 2006, a Vice President of the managing general partner of Gould Investors from 1990 through 2012 and its President and Chief Operating Officer since 2013. He is an attorney admitted to practice in New York and the District of Columbia.

        Israel Rosenzweig.    Mr. Rosenzweig has served as our Senior Vice President since 1997, as Chairman of the Board of Directors of BRT Apartments Corp. since 2013, as Vice Chairman of its Board of Directors from 2012 through 2013, and as its Senior Vice President from 1998 through 2012. He has been a Vice President of the managing general partner of Gould Investors since 1997.

51

        Karen Dunleavy.    Ms. Dunleavy has been our Vice President, Financial since 1994. She served as Treasurer of the managing general partner of Gould Investors from 1986 through 2013. Ms. Dunleavy is a certified public accountant.

        Alysa Block.    Ms. Block has been our Treasurer since 2007, and served as Assistant Treasurer from 1997 to 2007. Ms. Block has also served as the Treasurer of BRT Apartments Corp. from 2008 through 2013, and served as its Assistant Treasurer from 1997 to 2008.

        Richard M. Figueroa.    Mr. Figueroa has served as our Vice President and Assistant Secretary since 2001, as Vice President and Assistant Secretary of BRT Apartments Corp. since 2002 and as Vice President of the managing general partner of Gould Investors since 1999. Mr. Figueroa is an attorney admitted to practice in New York.

        Isaac Kalish.    Mr. Kalish has served as our Vice President since 2013, Assistant Treasurer since 2007, as Assistant Treasurer of the managing general partner of Gould Investors from 2012 through 2013, as Treasurer from 2013, as Vice President and Treasurer of BRT Apartments Corp. since 2013, and as its Assistant Treasurer from 2009 through 2013. Mr. Kalish is a certified public accountant.

        Justin Clair.    Mr. Clair has been employed by us since 2006, served as Assistant Vice President from 2010 through 2014 and as Vice President since 2014.

Item 11.    Executive Compensation.

        The information concerning our executive compensation required by this Item 11 shall be included in our proxy statement for our 2018 annual meeting of stockholders, to be filed with the SEC not later than April 30, 2018, and is incorporated herein by reference.

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

        The information concerning our beneficial owners and management required by this Item 12 shall be included in our proxy statement for our 2018 annual meeting of stockholders, to be filed with the SEC not later than April 30, 2018 and is incorporated herein by reference.

Equity Compensation Plan Information

        As of December 31, 2017, the only equity compensation plan under which equity compensation may be awarded is our 2016 Incentive Plan, which was approved by our stockholders in June 2016. This plan permits us to grant stock options, restricted stock, restricted stock units and performance based awards to our employees, officers, directors, consultants and other eligible participants. The following

52

table provides information as of December 31, 2017 about shares of our common stock that may be issued upon the exercise of options, warrants and rights under our 2016 Incentive Plan:

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights(1)		Weighted-average exercise price of outstanding options, warrants and rights		Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column(a))(2)
	(a)		(b)		(c)
Equity compensation plans approved by security holders		76,250		—		533,750
Equity compensation plans not approved by security holders		—		—		—
Total		76,250		—		533,750

(1)

Represents an aggregate of up to 76,250 shares of common stock issuable pursuant to restricted stock units. Assuming a continuing relationship with us, the shares underlying these units vest on June 30, 2020 if and to the extent specified performance (i.e., average annual return on capital) and/or market (i.e., average annual total stockholder return) conditions are satisfied by June 30, 2020.

(2)

Does not give effect to 144,750 restricted stock awards granted January 18, 2018 pursuant to our 2016 Incentive Plan.

Item 13.    Certain Relationships and Related Transactions, and Director Independence.

        The information concerning certain relationships, related transactions and director independence required by this Item 13 shall be included in our proxy statement for our 2018 annual meeting of stockholders, to be filed with the SEC not later than April 30, 2018 and is incorporated herein by reference.

Item 14.    Principal Accountant Fees and Services.

        The information concerning our principal accounting fees required by this Item 14 shall be included in our proxy statement for our 2018 annual meeting of stockholders, to be filed with the SEC not later than April 30, 2018 and is incorporated herein by reference.

53

PART IV

Item 15.    Exhibits and Financial Statement Schedules.

(a)

Documents filed as part of this Report:

(1)

The following financial statements of the Company are included in this Annual Report on Form 10-K:

—	Reports of Independent Registered Public Accounting Firm	F-1 through F-3
—	Statements:
	Consolidated Balance Sheets	F-4
	Consolidated Statements of Income	F-5
	Consolidated Statements of Comprehensive Income	F-6
	Consolidated Statements of Changes in Equity	F-7
	Consolidated Statements of Cash Flows	F-8 through F-9
	Notes to Consolidated Financial Statements	F-10 through F-43

(2)

Financial Statement Schedules:

— Schedule III—Real Estate and Accumulated Depreciation F-44 through F-47

        All other schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or the notes thereto.

(b)

Exhibits:

1.1	Equity Offering Sales Agreement, dated May 10, 2017 by and between One Liberty Properties, Inc. and Deutsche Bank Securities, Inc. (incorporated by reference to Exhibit 1.1 to our Current Report on Form 8-K filed on May 10, 2017).
3.1	Articles of Amendment and Restatement of One Liberty Properties, Inc., dated July 20, 2004 (incorporated by reference to Exhibit 3.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2004).
3.2	Articles of Amendment to Restated Articles of Incorporation of One Liberty Properties, Inc. filed with the State of Assessments and Taxation of Maryland on June 17, 2005 (incorporated by reference to Exhibit 3.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2005).
3.3	Articles of Amendment to Restated Articles of Incorporation of One Liberty Properties, Inc. filed with the State of Assessments and Taxation of Maryland on June 21, 2005 (incorporated by reference to Exhibit 3.2 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2005).
3.4	By-Laws of One Liberty Properties, Inc., as amended (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on December 12, 2007).
3.5	Amendment, effective as of June 12, 2012, to By-Laws of One Liberty Properties, Inc. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on June 12, 2012).
3.6	Amendment, effective as of September 11, 2014, to By-Laws of One Liberty Properties, Inc. (incorporated by reference to Exhibit 3.1 to our Current Report on Form 8-K filed on September 12, 2014).

54

4.1	*	One Liberty Properties, Inc. 2009 Incentive Plan (incorporated by reference to Exhibit 4.1 to our Annual Report on Form 10-K for the year ended December 31, 2010).
4.2	*	One Liberty Properties, Inc. 2012 Incentive Plan (incorporated by reference to Exhibit 4.1 to our Current Report on Form 8-K filed on June 12, 2012).
4.3	*	One Liberty Properties, Inc. 2016 Incentive Plan (incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2016).
4.4		Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to our Registration Statement on Form S-2, Registration No. 333-86850, filed on April 24, 2002 and declared effective on May 24, 2002).
10.1		Third Amended and Restated Loan Agreement dated as of November 9, 2016, between VNB New York, LLC, People's United Bank, Bank Leumi USA and Manufacturers and Traders Trust Company, as lenders, and One Liberty Properties, Inc. (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed November 10, 2016).
10.2	*	Compensation and Services Agreement effective as of January 1, 2007 between One Liberty Properties, Inc. and Majestic Property Management Corp. (incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed on March 14, 2007).
10.3	*	First Amendment to Compensation and Services Agreement effective as of April 1, 2012 between One Liberty Properties,  Inc. and Majestic Property Management Corp. (incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended March 31, 2012).
10.4	*	Form of Restricted Stock Award Agreement for the 2012 Incentive Plan (incorporated by reference to Exhibit 10.9 to our Annual Report on Form 10-K for the year ended December 31, 2013).
10.5	*	Form of Restricted Stock Award Agreement for awards granted in 2017 pursuant to the 2016 Incentive Plan (incorporated by reference to Exhibit 10.12 to our Annual Report on Form 10-K for the year ended December 31, 2016).
10.6	*	Form of Performance Award Agreement for the 2016 Incentive Plan (incorporated by reference to Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2017).
10.7	*	Form of Restricted Stock Award Agreement for awards granted in 2018 pursuant to the 2016 Incentive Plan.
21.1		Subsidiaries of the Registrant
23.1		Consent of Ernst & Young LLP
31.1		Certification of President and Chief Executive Officer
31.2		Certification of Senior Vice President and Chief Financial Officer
32.1		Certification of President and Chief Executive Officer
32.2		Certification of Senior Vice President and Chief Financial Officer
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

55

101.LAB	XBRL Taxonomy Extension Definition Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

*

Indicates a management contract or compensatory plan or arrangement.

        The file number for all the exhibits incorporated by reference is 001- 09279 other than exhibit 4.4 whose file number is 333-86850.

Item 16.    Form 10-K Summary

        Not applicable.

56

SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Exchange, the Registrant has duly caused this report to be signed on its behalf of the undersigned, thereunto duly authorized.

March 14, 2018	ONE LIBERTY PROPERTIES, INC.
	By:	/s/ PATRICK J. CALLAN, JR. Patrick J. Callan, Jr. President and Chief Executive Officer

        Pursuant to the requirements of the Exchange Act, this report has been signed below by the following persons on behalf of the Registrant in the capacities indicated on the dates indicated.

Signature	Title	Date
/s/ MATTHEW J. GOULD Matthew J. Gould	Chairman of the Board of Directors	March 14, 2018
/s/ FREDRIC H. GOULD Fredric H. Gould	Vice Chairman of the Board of Directors	March 14, 2018
/s/ PATRICK J. CALLAN, JR. Patrick J. Callan, Jr.	President, Chief Executive Officer and Director	March 14, 2018
/s/ CHARLES BIEDERMAN Charles Biederman	Director	March 14, 2018
/s/ JOSEPH A. DELUCA Joseph A. DeLuca	Director	March 14, 2018
/s/ JEFFREY A. GOULD Jeffrey A. Gould	Director	March 14, 2018
/s/ LOUIS P. KAROL Louis P. Karol	Director	March 14, 2018
/s/ J. ROBERT LOVEJOY J. Robert Lovejoy	Director	March 14, 2018

57

Signature	Title	Date
/s/ LEOR SIRI Leor Siri	Director	March 14, 2018
/s/ EUGENE I. ZURIFF Eugene I. Zuriff	Director	March 14, 2018
/s/ DAVID W. KALISH David W. Kalish	Senior Vice President and Chief Financial Officer (Principal Financial Officer)	March 14, 2018
/s/ KAREN DUNLEAVY Karen Dunleavy	Vice President, Financial (Principal Accounting Officer)	March 14, 2018

58

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of One Liberty Properties, Inc.

Opinion on the Financial Statements

        We have audited the accompanying consolidated balance sheets of One Liberty Properties, Inc. and subsidiaries (the Company) as of December 31, 2017 and 2016, the related consolidated statements of income, comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2017, and the related notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2017 and 2016, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in conformity with U.S. generally accepted accounting principles.

        We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 14, 2018 expressed an unqualified opinion thereon.

Basis for Opinion

        These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

        We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1989.

New York, New York
March 14, 2018

F-1

Report of Independent Registered Public Accounting Firm

To the Stockholders and the Board of Directors of One Liberty Properties, Inc.

Opinion on Internal Control over Financial Reporting

        We have audited One Liberty Properties, Inc. and subsidiaries' internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, One Liberty Properties, Inc. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the COSO criteria.

        We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the 2017 consolidated financial statements of the Company and our report dated March 14, 2018 expressed an unqualified opinion thereon.

Basis for Opinion

        The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

        We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

        Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

        A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

F-2

        Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Ernst & Young LLP

New York, New York
March 14, 2018

F-3

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Amounts in Thousands, Except Par Value)

	December 31,
	2017		2016
ASSETS
Real estate investments, at cost
Land	$	209,320	$	211,432
Buildings and improvements		566,007		536,633
Total real estate investments, at cost		775,327		748,065
Less accumulated depreciation		108,953		96,852
Real estate investments, net		666,374		651,213
Investment in unconsolidated joint ventures		10,723		10,833
Cash and cash equivalents		13,766		17,420
Restricted cash		443		643
Unbilled rent receivable		14,125		13,797
Unamortized intangible lease assets, net		30,525		32,645
Escrow, deposits and other assets and receivables		6,630		6,894
Total assets(1)	$	742,586	$	733,445
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of $3,789 and $4,294 of deferred financing costs, respectively	$	393,157	$	394,898
Line of credit, net of $624 and $936 of deferred financing costs, respectively		8,776		9,064
Dividends payable		8,493		7,806
Accrued expenses and other liabilities		16,107		10,470
Unamortized intangible lease liabilities, net		17,551		19,280
Total liabilities(1)		444,084		441,518
Commitments and contingencies
Equity:
One Liberty Properties, Inc. stockholders' equity:
Preferred stock, $1 par value; 12,500 shares authorized; none issued		—		—
Common stock, $1 par value; 25,000 shares authorized; 18,261 and 17,600 shares issued and outstanding		18,261		17,600
Paid-in capital		275,087		262,511
Accumulated other comprehensive income (loss)		155		(1,479	)
Accumulated undistributed net income		3,257		11,501
Total One Liberty Properties, Inc. stockholders' equity		296,760		290,133
Non-controlling interests in consolidated joint ventures(1)		1,742		1,794
Total equity		298,502		291,927
Total liabilities and equity	$	742,586	$	733,445

(1)

The Company's consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs"). See Note 7. The consolidated balance sheets include the following amounts related to the Company's consolidated VIEs: $17,844 and $17,844 of land, $31,789 and $32,535 of building and improvements, net of $3,811 and $2,732 of accumulated depreciation, $4,345 and $5,521 of other assets included in other line items, $32,252 and $33,121 of real estate debt, net, $2,885 and $3,093 of other liabilities included in other line items, and $1,742 and $1,794 of non-controlling interests as of December 31, 2017 and 2016, respectively.

See accompanying notes.

F-4

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

	Year Ended December 31,
	2017			2016			2015
Revenues:
Rental income, net	$	68,244		$	64,164		$	58,973
Tenant reimbursements		7,672			6,424			3,852
Lease termination fees		—			—			2,886
Total revenues		75,916			70,588			65,711
Operating expenses:
Depreciation and amortization		20,993			18,164			16,384
General and administrative (see Note 12 for related party information)		11,279			10,693			9,527
Real estate expenses (see Note 12 for related party information)		10,736			8,931			6,047
Real estate acquisition costs (see Note 12 for related party information)		—			596			449
Federal excise and state taxes		481			203			343
Leasehold rent		308			308			308
Impairment loss		153			—			—
Total operating expenses		43,950			38,895			33,058
Operating income		31,966			31,693			32,653
Other income and expenses:
Equity in earnings of unconsolidated joint ventures (see Note 12 for related party information)		826			1,005			412
Purchase price fair value adjustment		—			—			960
Prepayment costs on debt		—			(577	)		(568	)
Other income		407			435			108
Interest:
Expense		(17,810	)		(17,258	)		(16,027	)
Amortization and write-off of deferred financing costs		(977	)		(904	)		(1,023	)
Income before gain on sale of real estate, net		14,412			14,394			16,515
Gain on sale of real estate, net		9,837			10,087			5,392
Net income		24,249			24,481			21,907
Net income attributable to non-controlling interests		(102	)		(59	)		(1,390	)
Net income attributable to One Liberty Properties, Inc.	$	24,147		$	24,422		$	20,517
Weighted average number of common shares outstanding:
Basic		17,944			16,768			15,971
Diluted		18,047			16,882			16,079
Per common share attributable to common stockholders:
Basic	$	1.29		$	1.40		$	1.23
Diluted	$	1.28		$	1.39		$	1.22

See accompanying notes.

F-5

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(Amounts in Thousands)

	Year Ended December 31,
	2017			2016			2015
Net income	$	24,249		$	24,481		$	21,907
Other comprehensive gain (loss)
Net unrealized gain on available-for-sale securities		—			—			3
Reclassification of gain on available-for-sale securities included in net income		—			(27	)		—
Net unrealized gain (loss) on derivative instruments		1,565			2,879			(1,168	)
One Liberty Properties, Inc.'s share of joint ventures' net unrealized gain (loss) on derivative instruments		76			64			(1	)
Other comprehensive gain (loss)		1,641			2,916			(1,166	)
Comprehensive income		25,890			27,397			20,741
Net income attributable to non-controlling interests		(102	)		(59	)		(1,390	)
Adjustment for derivative instruments attributable to non-controlling interests		(7	)		(5	)		29
Comprehensive income attributable to One Liberty Properties, Inc.	$	25,781		$	27,333		$	19,380

See accompanying notes.

F-6

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the Three Years Ended December 31, 2017

(Amounts in Thousands, Except Per Share Data)

	Common Stock		Paid-in Capital			Accumulated Other Comprehensive Income (Loss)			Accumulated Undistributed Net Income			Non- Controlling Interests in Consolidated Joint Ventures			Total
Balances, December 31, 2014	$	15,728	$	219,867		$	(3,195	)	$	21,876		$	1,628		$	255,904
Distributions—common stock
Cash—$1.58 per share		—		—			—			(26,178	)		—			(26,178	)
Shares issued through equity offering program—net		295		6,162			—			—			—			6,457
Restricted stock vesting		72		(72	)		—			—			—			—
Shares issued through dividend reinvestment plan		197		4,087			—			—			—			4,284
Contributions from non-controlling interests		—		—			—			—			713			713
Distributions to non-controlling interests		—		—			—			—			(1,829	)		(1,829	)
Compensation expense—restricted stock		—		2,334			—			—			—			2,334
Net income		—		—			—			20,517			1,390			21,907
Other comprehensive (loss) income		—		—			(1,195	)		—			29			(1,166	)
Balances, December 31, 2015		16,292		232,378			(4,390	)		16,215			1,931			262,426
Distributions—common stock
Cash—$1.66 per share		—		—			—			(29,136	)		—			(29,136	)
Shares issued through equity offering program—net		1,080		24,707			—			—			—			25,787
Restricted stock vesting		86		(86	)		—			—			—			—
Shares issued through dividend reinvestment plan		142		2,965			—			—			—			3,107
Contribution from non-controlling interests		—		—			—			—			80			80
Distributions to non-controlling interests		—		—			—			—			(271	)		(271	)
Purchase of non-controlling interest		—		(436	)		—			—			(10	)		(446	)
Compensation expense—restricted stock		—		2,983			—			—			—			2,983
Net income		—		—			—			24,422			59			24,481
Other comprehensive income		—		—			2,911			—			5			2,916
Balances, December 31, 2016		17,600		262,511			(1,479	)		11,501			1,794			291,927
Distributions—common stock
Cash—$1.74 per share		—		—			—			(32,391	)		—			(32,391	)
Shares issued through equity offering program—net		231		5,339			—			—			—			5,570
Restricted stock vesting		232		(232	)		—			—			—			—
Shares issued through dividend reinvestment plan		198		4,336			—			—			—			4,534
Contribution from non-controlling interest		—		—			—			—			20			20
Distributions to non-controlling interests		—		—			—			—			(181	)		(181	)
Compensation expense—restricted stock		—		3,133			—			—			—			3,133
Net income		—		—			—			24,147			102			24,249
Other comprehensive income		—		—			1,634			—			7			1,641
Balances, December 31, 2017	$	18,261	$	275,087		$	155		$	3,257		$	1,742		$	298,502

See accompanying notes.

F-7

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Amounts in Thousands)

	Year Ended December 31,
	2017			2016			2015
Cash flows from operating activities:
Net income	$	24,249		$	24,481		$	21,907
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of real estate, net		(9,837	)		(10,087	)		(5,392	)
Purchase price fair value adjustment		—			—			(960	)
Gain on sale of available-for-sale securities		—			(27	)		—
Impairment loss		153			—			—
Prepayment costs on debt		—			577			568
Increase in unbilled rent receivable		(794	)		(2,286	)		(1,448	)
Write-off of unbilled rent receivable		362			7			566
Bad debt expense		291			98			—
Amortization and write-off of intangibles relating to leases, net		(897	)		(712	)		(723	)
Amortization of restricted stock expense		3,133			2,983			2,334
Equity in earnings of unconsolidated joint ventures		(826	)		(1,005	)		(412	)
Distributions of earnings from unconsolidated joint ventures		656			939			540
Depreciation and amortization		20,993			18,164			16,384
Amortization and write-off of deferred financing costs		977			904			1,023
Payment of leasing commissions		(168	)		(1,050	)		(716	)
Decrease (increase) in escrow, deposits, other assets and receivables		179			(731	)		197
Increase (decrease) in accrued expenses and other liabilities		6,086			(850	)		616
Net cash provided by operating activities		44,557			31,405			34,484
Cash flows from investing activities:
Purchase of real estate		(43,537	)		(118,589	)		(67,445	)
Improvements to real estate		(6,565	)		(4,868	)		(3,868	)
Net proceeds from sale of real estate		26,301			42,312			16,025
Purchase of partner's interest in consolidated joint venture		—			(446	)		—
Purchase of partner's interest in unconsolidated joint venture		—			—			(6,300	)
Investment in unconsolidated joint ventures		—			—			(12,686	)
Distributions of capital from unconsolidated joint ventures		357			647			776
Net proceeds from sale of available-for-sale securities		—			33			—
Net cash used in investing activities		(23,444	)		(80,911	)		(73,498	)
Cash flows from financing activities:
Scheduled amortization payments of mortgages payable		(10,520	)		(9,138	)		(7,793	)
Repayment of mortgages payable		(12,936	)		(63,726	)		(27,967	)
Proceeds from mortgage financings		21,210			137,628			79,605
Proceeds from sale of common stock, net		5,570			25,787			6,457
Proceeds from bank line of credit		47,000			86,000			45,400
Repayment on bank line of credit		(47,600	)		(94,250	)		(40,400	)
Issuance of shares through dividend reinvestment plan		4,534			3,107			4,284
Payment of financing costs		(160	)		(2,220	)		(897	)
Prepayment costs on debt		—			(577	)		(568	)
Capital contributions from non-controlling interests		20			80			713
Distributions to non-controlling interests		(181	)		(271	)		(1,829	)
Cash distributions to common stockholders		(31,704	)		(28,230	)		(25,599	)
Net cash (used in) provided by financing activities		(24,767	)		54,190			31,406
Net (decrease) increase in cash and cash equivalents		(3,654	)		4,684			(7,608	)
Cash and cash equivalents at beginning of year		17,420			12,736			20,344
Cash and cash equivalents at end of year	$	13,766		$	17,420		$	12,736

See accompanying notes.

F-8

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Continued)

(Amounts in Thousands)

	Year Ended December 31,
	2017			2016			2015
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense	$	17,777		$	17,310		$	15,986
Cash paid during the year for Federal excise tax, net		—			190			300
Supplemental schedule of non-cash investing and financing activities:
Mortgage debt extinguished upon conveyance of the Company's Morrow, Georgia property to mortgagee by deed-in-lieu of foreclosure	$	—		$	—		$	1,466
Consolidation of real estate investment		—			—			2,633
Purchase accounting allocation—intangible lease assets		4,009			8,194			5,776
Purchase accounting allocation—intangible lease liabilities		(158	)		(6,288	)		(5,365	)

See accompanying notes.

F-9

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2017

NOTE 1—ORGANIZATION AND BACKGROUND

        One Liberty Properties, Inc. ("OLP") was incorporated in 1982 in Maryland. OLP is a self-administered and self-managed real estate investment trust ("REIT"). OLP acquires, owns and manages a geographically diversified portfolio of industrial, retail (including furniture stores and supermarkets), restaurant, health and fitness, and theater properties, many of which are subject to long-term net leases. As of December 31, 2017, OLP owns 119 properties, including six properties owned by consolidated joint ventures and five properties owned by unconsolidated joint ventures. The 119 properties are located in 30 states.

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

        The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities ("VIEs") of which the Company is the primary beneficiary. OLP and its consolidated subsidiaries are hereinafter referred to as the "Company". Material intercompany items and transactions have been eliminated in consolidation.

Investment in Joint Ventures and Variable Interest Entities

        The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE's economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE.

        The Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement, to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights, such as the requirement of partner approval to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where, among other things, the Company and its partners jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture's tax return before filing, and (iv) approve each lease at a property, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. Leases may contain certain protective rights, such as the right of sale and the receipt of certain escrow deposits.

        The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these

F-10

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

ventures. As a result, none of these joint ventures are VIEs. In addition, the Company shares power with its co-managing members over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. None of the joint venture debt is recourse to the Company, subject to standard carve-outs.

        The Company periodically reviews its investments in unconsolidated joint ventures for other-than-temporary losses in investment value. Any decline that is not expected to be recovered based on the underlying assets of the investment is considered other than temporary and an impairment charge is recorded as a reduction in the carrying value of the investment. During the three years ended December 31, 2017, there were no impairment charges related to the Company's investments in unconsolidated joint ventures.

        The Company has elected to follow the cumulative earnings approach when assessing, for the consolidated statement of cash flows, whether the distribution from the investee is a return of the investor's investment as compared to a return on its investment. The source of the cash generated by the investee to fund the distribution is not a factor in the analysis (that is, it does not matter whether the cash was generated through investee refinancing, sale of assets or operating results). Consequently, the investor only considers the relationship between the cash received from the investee to its equity in the undistributed earnings of the investee, on a cumulative basis, in assessing whether the distribution from the investee is a return on or return of its investment. Cash received from the unconsolidated entity is presumed to be a return on the investment to the extent that, on a cumulative basis, distributions received by the investor are less than its share of the equity in the undistributed earnings of the entity.

Use of Estimates

        The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

        Management believes that the estimates and assumptions that are most important to the portrayal of the Company's consolidated financial condition and results of operations, in that they require management's most difficult, subjective or complex judgments, form the basis of the accounting policies deemed to be most significant to the Company. These significant accounting policies relate to revenues and the value of the Company's real estate portfolio, including investments in unconsolidated joint ventures. Management believes its estimates and assumptions related to these significant accounting policies are appropriate under the circumstances; however, should future events or occurrences result in unanticipated consequences, there could be a material impact on the Company's future consolidated financial condition or results of operations.

Revenue Recognition

        Rental income includes the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the non-cancelable term of the

F-11

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

lease. In determining, in its judgment, that the unbilled rent receivable applicable to each specific property is collectible, management reviews unbilled rent receivables on a quarterly basis and takes into consideration the tenant's payment history and financial condition. Some of the leases provide for increases based on the Consumer Price Index and for additional contingent rental revenue in the form of percentage rents. The percentage rents are based upon the level of sales achieved by the lessee and are recognized once the required sales levels are reached. Certain ground leases provide for rent which can be deferred and paid based on the operating performance of the property; therefore, this rent is recognized as rental income when the operating performance is achieved and the rent is received.

        Many of the Company's properties are subject to long-term net leases under which the tenant is typically responsible to pay directly to the vendor the real estate taxes, insurance, utilities and ordinary maintenance and repairs related to the property, and the Company is not the primary obligor with respect to such items. As a result, the revenue and expenses relating to these properties are recorded on a net basis. For certain properties, in addition to contractual base rent, the tenants pay their pro rata share of real estate taxes and operating expenses to the Company. The income and expenses associated with these properties are generally recorded on a gross basis when the Company is the primary obligor. During 2017, 2016 and 2015, the Company recorded reimbursements of expenses of $7,672,000, $6,424,000 and $3,852,000, respectively, which are reported as Tenant reimbursements in the accompanying consolidated statements of income.

        Gains and losses on the sale of real estate investments are recorded when the criteria under GAAP have been met.

Fair Value Measurements

        The Company measures the fair value of financial instruments based on the assumptions that market participants would use in pricing the asset or liability. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other "observable" market inputs and Level 3 assets/liabilities are valued based on significant "unobservable" market inputs.

Purchase Accounting for Acquisition of Real Estate

        In January 2017, the Company adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which requires an entity to evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, and if that requirement is met, the asset group is accounted for as an asset acquisition and not a business combination. Transaction costs incurred with such asset acquisitions are capitalized to real estate assets and depreciated over the respectful useful lives. The Company analyzed the real estate acquisitions made during 2017 and determined the gross assets acquired are

F-12

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

concentrated in a single identifiable asset. Prior to January 1, 2017, the Company recorded acquired real estate investments as business combinations when the real estate was occupied, at least in part, at acquisition. Costs directly related to the acquisition of such investments were expensed as incurred.

        The Company allocates the purchase price of real estate among land, building, improvements and intangibles, such as the value of above, below and at-market leases, and origination costs associated with in-place leases at the acquisition date. The Company assesses the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. The value, as determined, is allocated to land, building and improvements based on management's determination of the relative fair values of these assets.

        The Company assesses the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 in the fair value hierarchy. In valuing an acquired property's intangibles, factors considered by management include an estimate of carrying costs during the expected lease-up periods, such as real estate taxes, insurance, other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on its evaluation of current market demand. Management also estimates costs to execute similar leases, including leasing commissions and tenant improvements.

        The values of acquired above-market and below-market leases are recorded based on the present values (using discount rates which reflect the risks associated with the leases acquired) of the difference between the contractual amounts to be received and management's estimate of market lease rates, measured over the terms of the respective leases that management deemed appropriate at the time of the acquisitions. Such valuations include a consideration of the non-cancellable terms of the respective leases, as well as any applicable renewal period(s). The fair values associated with below-market rental renewal options are determined based on the Company's experience and the relevant facts and circumstances at the time of the acquisitions. The values of above-market leases are amortized as a reduction to rental income over the terms of the respective non-cancellable lease periods. The portion of the values of below-market leases are amortized as an increase to rental income over the terms of the respective non-cancellable lease periods. The portion of the values of the leases associated with below-market renewal options that management deemed are likely to be exercised by the tenant are amortized to rental income over such renewal periods. The value of other intangible assets (i.e., origination costs) is recorded to amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its contractual expiration date or not renewed, all unamortized amounts relating to that lease would be recognized in operations at that time. The estimated useful lives of intangible assets or liabilities generally range from one to 38 years.

Accounting for Long-Lived Assets and Impairment of Real Estate Owned

        The Company reviews its real estate portfolio on a quarterly basis to ascertain if there are any indicators of impairment to the value of any of its real estate assets, including deferred costs and intangibles, to determine if there is any need for an impairment charge. In reviewing the portfolio, the Company examines one or more of the following: the type of asset, the current financial statements or other available financial information of the tenant, the economic situation in the area in which the asset is located, the economic situation in the industry in which the tenant is involved, the timeliness of the payments made by the tenant under its lease, and any current communication with the tenant,

F-13

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

including property inspection reports. For each real estate asset owned for which indicators of impairment exist, management performs a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset to its carrying amount. If the aggregate undiscounted cash flows are less than the asset's carrying amount, an impairment loss is recorded to the extent that the estimated fair value is less than the asset's carrying amount. The estimated fair value is determined using a discounted cash flow model of the expected future cash flows through the useful life of the property. The analysis includes an estimate of the future cash flows that are expected to result from the real estate investment's use and eventual disposition. These cash flows consider factors such as expected future operating income, trends and prospects, the effects of leasing demand, competition and other factors.

Properties Held-for-Sale

        Real estate investments are classified as properties held-for-sale when management determines that the investment meets the applicable criteria. Real estate assets that are classified as held-for-sale are: (i) valued at the lower of carrying amount or the estimated fair value less costs to sell on an individual asset basis; and (ii) not depreciated.

Cash and Cash Equivalents

        All highly liquid investments with original maturities of three months or less when purchased are considered to be cash equivalents.

Escrows

        Real estate taxes, insurance and other escrows aggregating $460,000 and $387,000 at December 31, 2017 and 2016, respectively, are included in Escrow, deposits and other assets and receivables.

Depreciation and Amortization

        Depreciation of buildings is computed on the straight-line method over an estimated useful life of 40 years. Depreciation of building improvements is computed on the straight-line method over the estimated useful life of the improvements. If the Company determines it is the owner of tenant improvements, the amounts funded to construct the tenant improvements are treated as a capital asset and depreciated over the lesser of the remaining lease term or the estimated useful life of the improvements on the straight-line method. Leasehold interest and the related ground lease payments are amortized over the initial lease term of the leasehold position. Depreciation expense (including amortization of a leasehold position, lease origination costs, and capitalized leasing commissions) was $20,993,000, $18,164,000 and $16,384,000 during 2017, 2016 and 2015, respectively.

Deferred Financing Costs

        Mortgage and credit line costs are deferred and amortized on a straight-line basis over the terms of the respective debt obligations, which approximates the effective interest method. At December 31, 2017 and 2016, accumulated amortization of such costs was $2,804,000 and $2,090,000, respectively. The

F-14

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

Company presents unamortized deferred financing costs as a direct deduction from the carrying amount of the associated debt liability.

Income Taxes

        The Company is qualified as a real estate investment trust under the applicable provisions of the Internal Revenue Code. Under these provisions, the Company will not be subject to Federal, and generally, state and local income taxes, on amounts distributed to stockholders, provided it distributes at least 90% of its taxable income and meets certain other conditions.

        The Company follows a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that more-likely-than-not will be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited. The Company has not identified any uncertain tax positions requiring accrual.

Concentration of Credit Risk

        The Company maintains cash accounts at various financial institutions. While the Company attempts to limit any financial exposure, substantially all of its deposit balances exceed federally insured limits. The Company has not experienced any losses on such accounts.

        The Company's properties are located in 30 states. During 2017, 2016 and 2015, 13.2%, 12.9% and 13.0% of total revenues, respectively, were attributable to real estate investments located in Texas which is the only state in which real estate investments contributed more than 10% to the Company's total revenues.

        No tenant contributed over 10% to the Company's total revenues during 2017, 2016 and 2015.

Segment Reporting

        Substantially all of the Company's real estate assets, at acquisition, are comprised of real estate owned that is leased to tenants on a long-term basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment.

Stock Based Compensation

        The fair value of restricted stock grants and restricted stock units, determined as of the date of grant, is amortized into general and administrative expense over the respective vesting period. The deferred compensation to be recognized as expense is net of certain forfeiture and performance assumptions which are re-evaluated quarterly. The Company recognizes the effect of forfeitures when they occur and previously recognized compensation expense shall be reversed in the period the grant or unit is forfeited. For share-based awards with a performance or market measure, we recognize compensation expense over the requisite service period. The requisite service period begins on the date the compensation committee of the Company's Board of Directors authorizes the award, adopts any relevant performance measures and communicates the award.

F-15

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

Derivatives and Hedging Activities

        The Company's objective in using interest rate swaps is to add stability to interest expense. The Company does not use derivatives for trading or speculative purposes.

        The Company records all derivatives on the consolidated balance sheets at fair value using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. In addition, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. These counterparties are generally large financial institutions engaged in providing a variety of financial services. These institutions generally face similar risks regarding adverse changes in market and economic conditions including, but not limited to, fluctuations in interest rates, exchange rates, equity and commodity prices and credit spreads.

        The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in accumulated other comprehensive income (outside of earnings) and subsequently reclassified to earnings in the period in which the hedged transaction becomes ineffective. For derivatives not designated as cash flow hedges, changes in the fair value of the derivative are recognized directly in earnings in the period in which the change occurs; however, the Company's policy is to not enter into such transactions.

Allowance for Doubtful Accounts

        The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of a tenant to make required rent and other payments. If the financial condition of a specific tenant were to deteriorate, adversely impacting its ability to make payments, additional allowances may be required.

Reclassifications

        Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current year's presentation. Such reclassifications primarily relate to change the presentation of Gain on sale of real estate, net on the consolidated statement of operations for the years ended December 31, 2016 and 2015. The Company has included a caption for Income before gain on sale of real estate, net, to present gains and losses on sales of properties in accordance with the Securities and Exchange Commission Rule 3-15(a) of Regulation S-X. The change was made for the years ended December 31, 2016 and 2015 because, as prescribed by ASC 360-10-45-5, such gains from sale of real estate were not included as a component of Operating income. Such change was determined to be immaterial to the consolidated financial statements.

F-16

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

New Accounting Pronouncements

        In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the presentation and disclosure requirements for hedge accounting and changes how companies assess hedge effectiveness. This ASU is intended to more closely align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope and application on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company has evaluated the new guidance and determined there will be no impact on the consolidated financial statements as the Company will be electing the practical expedient which is forward-looking to future sales. In addition, none of the Company's prior sales were partial sales and all were under closed contracts.

        In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amount generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current "incurred loss" model with an "expected loss" approach. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted after December 2018. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The effective date of the standard

F-17

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES (Continued)

will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating this new standard. The Company anticipates adopting this guidance effective as of January 1, 2019 and will apply the modified retrospective approach.

        In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2014-09, ASU 2015-14 and ASU 2016-08 are herein collectively referred to as the "New Revenue Recognition Standards".

        The New Revenue Recognition Standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The Company anticipates adopting the New Revenue Recognition Standards effective as of January 1, 2018, and applying the cumulative-effect adoption method. The Company has evaluated its revenue streams, and as they are primarily related to leasing activities which are scoped out of the New Revenue Recognition Standards, it has determined that the adoption of such standards will not have a material impact on the consolidated financial statements and there will be no cumulative translation adjustments upon adoption.

F-18

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 3—EARNINGS PER COMMON SHARE

        Basic earnings per share was determined by dividing net income allocable to common stockholders for each year by the weighted average number of shares of common stock outstanding during the applicable year. Net income is also allocated to the unvested restricted stock outstanding during each year, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. Unvested restricted stock is not allocated net losses; such amounts are allocated entirely to the common stockholders, other than the holders of unvested restricted stock. As of December 31, 2017, the shares of common stock underlying the restricted stock units awarded under the 2016 Incentive Plan are excluded from the basic earnings per share calculation, as these units are not participating securities. The restricted stock units issued pursuant to the 2009 and 2016 Incentive Plans are referred to as "RSUs".

        Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company.

        See Note 13 for information regarding the Company's equity incentive plans.

        The diluted weighted average number of shares of common stock includes common stock underlying the RSUs awarded under the plans identified in the table below:

			Year Ended December 31,
	Number of underlying shares
			2017			2016		2015
2009 Incentive Plan		200,000		—	(a)		114,000		108,000
2016 Incentive Plan		76,250		71,478	(b)		—		—

(a)

RSUs with respect to 113,584 shares vested on June 30, 2017 and such shares were issued in August 2017.

(b)

Includes 33,353 shares that would be issued pursuant to a return on capital performance metric and 38,125 shares that would be issued pursuant to a stockholder return metric, assuming the end of the quarterly period was the June 30, 2020 vesting date. The remaining 4,772 shares awarded pursuant to the capital performance metric (of a total of 38,125 that were awarded on September 26, 2017) are not included.

        There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock in 2017, 2016 and 2015.

F-19

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 3—EARNINGS PER COMMON SHARE (Continued)

        The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts):

	Year Ended December 31,
	2017			2016			2015
Numerator for basic and diluted earnings per share:
Net income	$	24,249		$	24,481		$	21,907
Less net income attributable to non-controlling interests		(102	)		(59	)		(1,390	)
Less earnings allocated to unvested restricted stock(a)		(1,072	)		(999	)		(852	)
Net income available for common stockholders: basic and diluted	$	23,075		$	23,423		$	19,665
Denominator for basic earnings per share:
Weighted average number of common shares		17,944			16,768			15,971
Effect of diluted securities:
RSUs		103			114			108
Denominator for diluted earnings per share:
Weighted average number of shares		18,047			16,882			16,079
Earnings per common share, basic	$	1.29		$	1.40		$	1.23
Earnings per common share, diluted	$	1.28		$	1.39		$	1.22
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests	$	24,147		$	24,422		$	20,517

(a)

Represents an allocation of distributed earnings to unvested restricted stock which, as participating securities, are entitled to receive dividends.

NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS

Real Estate Acquisitions

        The following charts detail the Company's acquisitions of real estate during 2017 and 2016 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs(a)
Forbo industrial facility, Huntersville, North Carolina	May 25, 2017	$	8,700	Cash and $5,190 mortgage(b)	$	72
Saddle Creek Logistics industrial facility, Pittston, Pennsylvania	June 9, 2017		11,750	All cash(c)		199
Corporate Woods industrial facility, Ankeny, Iowa	June 20, 2017		14,700	All cash(d)		29
Dufresne Spencer Group industrial facility, Memphis, Tennessee	October 10, 2017		8,000	All cash		87
Totals for 2017		$	43,150		$	387

F-20

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS (Continued)

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs(e)
Multi-tenant industrial facility, Greenville, South Carolina	March 30, 2016	$	8,100	All cash	$	80
Multi-tenant industrial facility, Greenville, South Carolina	March 30, 2016		8,950	All cash		81
Toro distribution facility, El Paso, Texas	June 3, 2016		23,695	All cash		72
4 Advanced Auto retail stores, Ohio	June 16, 2016		6,523	Cash and $4,300 mortgage(b)		80
Land—The Briarbrook Village Apartments, Wheaton, Illinois	August 2, 2016		10,530	All cash		—	(f)
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota	August 12, 2016		14,150	All cash		74
Land—The Vue Apartments, Beachwood, Ohio	August 16, 2016		13,896	All cash		—	(g)
Famous Footwear distribution facility, Lebanon, Tennessee	September 1, 2016		32,734	Cash and $21,288 mortgage(b)		195
Other costs(h)			—			14
Totals for 2016		$	118,578		$	596

(a)

Transaction costs incurred with these asset acquisitions were capitalized.

(b)

The new mortgage debt was obtained simultaneously with the acquisition of the property.

(c)

In August 2017, the Company obtained new mortgage debt of $7,200.

(d)

In July 2017, the Company obtained new mortgage debt of $8,820.

(e)

Included as an expense in Real estate acquisition costs in the accompanying consolidated statement of income.

(f)

Transaction costs aggregating $6 incurred with this asset acquisition were capitalized.

(g)

Transaction costs aggregating $5 incurred with this asset acquisition were capitalized.

(h)

Costs incurred for properties purchased in the previous year.

F-21

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS (Continued)

        The following charts detail the allocation of the purchase price for the Company's acquisitions of real estate during 2017 and 2016 (amounts in thousands):

							Intangible Lease
					Building Improvements
Description of Property	Land		Building				Asset		Liability			Total
Forbo industrial facility,
Huntersville, North Carolina	$	1,046	$	6,452	$	222	$	1,052	$	—		$	8,772
Saddle Creek Logistics industrial facility,
Pittston, Pennsylvania		999		9,675		247		1,028		—			11,949
Corporate Woods industrial facility,
Ankeny, Iowa		1,351		11,420		187		1,929		(158	)		14,729
Dufresne Spencer Group industrial facility,
Memphis, Tennessee		135		7,750		202		—		—			8,087
Totals for 2017	$	3,531	$	35,297	$	858	$	4,009	$	(158	)	$	43,537
Multi-tenant industrial facility,
Greenville, South Carolina	$	693	$	6,718	$	175	$	514	$	—		$	8,100
Multi-tenant industrial facility,
Greenville, South Carolina		528		7,893		181		441		(93	)		8,950
Toro distribution facility,
El Paso, Texas		3,691		17,525		379		2,100		—			23,695
4 Advanced Auto retail stores,
Ohio		653		5,012		189		912		(243	)		6,523
Land—The Briarbrook Village Apartments,
Wheaton, Illinois		10,536		—		—		—		—			10,536
Burlington Coat and Micro Center retail stores,
St. Louis Park, Minnesota		3,388		12,632		456		651		(2,977	)		14,150
Land—The Vue Apartments,
Beachwood, Ohio		13,901		—		—		—		—			13,901
Famous Footwear distribution facility,
Lebanon, Tennessee		2,094		29,436		603		3,576		(2,975	)		32,734
Totals for 2016	$	35,484	$	79,216	$	1,983	$	8,194	$	(6,288	)	$	118,589

        As of December 31, 2017, the weighted average amortization period for the 2017 acquisitions is 6.8 years and 12.2 years for the intangible lease assets and intangible lease liabilities, respectively. As of December 31, 2016, the weighted average amortization period for the 2016 acquisitions is 9.3 years and 13.0 years for the intangible lease assets and intangible lease liabilities, respectively. The Company assessed the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 (as defined in Note 2) in the fair value hierarchy.

        At December 31, 2017 and 2016, accumulated amortization of intangible lease assets was $17,542,000 and $16,074,000, respectively, and accumulated amortization of intangible lease liabilities was $7,849,000 and $6,386,000, respectively.

F-22

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS (Continued)

        During 2017, 2016 and 2015, the Company recognized net rental income of $897,000, $712,000 and $723,000, respectively, for the amortization of the above/below market leases. During 2017, 2016 and 2015, the Company recognized amortization expense of $4,984,000, $3,612,000 and $3,467,000, respectively, relating to the amortization of the origination costs associated with in-place leases, which is included in Depreciation and amortization expense.

        The unamortized balance of intangible lease assets as a result of acquired above market leases at December 31, 2017 will be deducted from rental income through 2032 as follows (amounts in thousands):

2018	$	748
2019		646
2020		620
2021		614
2022		448
Thereafter		1,217
Total	$	4,293

        The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2017 will be added to rental income through 2055 as follows (amounts in thousands):

2018	$	1,794
2019		1,781
2020		1,629
2021		1,593
2022		1,468
Thereafter		9,286
Total	$	17,551

        The unamortized balance of origination costs associated with in-place leases at December 31, 2017 will be charged to amortization expense through 2055 as follows (amounts in thousands):

2018	$	4,056
2019		3,669
2020		3,435
2021		3,168
2022		2,672
Thereafter		9,232
Total	$	26,232

F-23

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS (Continued)

Minimum Future Rents

        The rental properties owned at December 31, 2017 are leased under operating leases with current expirations ranging from 2018 to 2037, with certain tenant renewal rights.

        The minimum future contractual rents do not include (i) straight-line rent or amortization of intangibles and (ii) rental income which can be deferred under the Company's ground leases on the basis of the respective property's operating performance. Such rents were $3,623,000, $2,379,000 and $1,458,000 during 2017, 2016 and 2015, respectively.

        The minimum future contractual rents to be received over the next five years and thereafter on non-cancellable operating leases in effect at December 31, 2017 are as follows (amounts in thousands):

2018	$	64,412
2019		62,360
2020		60,035
2021		56,965
2022		47,434
Thereafter		176,838
Total	$	468,044

Unbilled Rent Receivable

        At December 31, 2017 and 2016, the Company's unbilled rent receivables aggregating $14,125,000 and $13,797,000, respectively, represent rent reported on a straight-line basis in excess of rental payments required under the respective leases. The unbilled rent receivable is to be billed and received pursuant to the lease terms during the next 24 years.

        During 2017 and 2016, the Company wrote off $105,000 and $2,060,000, respectively, of unbilled straight-line rent receivable related to the properties sold during such years, which reduced the gain on sale reported on the consolidated statements of income.

        During 2017, 2016 and 2015, the Company also wrote off $362,000, $7,000 and $89,000, respectively, of unbilled straight-line rent receivable related to properties at which the tenant filed for Chapter 11 bankruptcy.

        During 2015, the Company wrote off unbilled straight-line rent receivables of $477,000 related to lease terminations effected prior to lease expirations (see below).

F-24

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS (Continued)

Lease Termination Fees

        In 2015, the Company received lease termination fees of $2,886,000 from tenants in lease buy-out transactions. In connection with the receipt of these fees, the Company wrote off an aggregate of $530,000 as offsets to rental income, representing the entire balance of the unbilled rent receivables and the intangible lease assets related to these tenants as of December 31, 2015. The Company re-leased substantially all of such spaces simultaneously with the termination of the leases.

Purchase of Partner's 50% Interest

        In March 2015, the Company purchased for $6,300,000, its partner's 50% interest in an unconsolidated joint venture that owned a property in Lincoln, Nebraska, and as a result, the Company obtained a controlling financial interest. The payment was comprised of (i) $2,636,000 paid directly to the partner and (ii) $3,664,000, substantially all of which was used to pay off the partner's 50% share of the underlying joint venture mortgage. In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statement of income, representing the difference between the book value of its preexisting equity investment on the March 31, 2015 purchase date and the fair value of the net assets acquired.

F-25

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 5—SALES OF PROPERTIES AND IMPAIRMENT LOSS

Sales of Properties

        The following chart details the Company's sales of real estate during 2017 and 2016 (amounts in thousands):

Description of Property	Date Sold	Gross Sales Price		Gain on Sale of Real Estate, Net
Retail property,
Greenwood Village, Colorado	May 8, 2017	$	9,500	$	6,568
Retail property,
Kansas City, Missouri(a)	July 14, 2017		10,250		2,180
Retail property,
Niles, Illinois	August 31, 2017		5,000		1,089
Restaurant property,
Ann Arbor, Michigan(a)(b)	November 14, 2017		2,300		—
Totals for 2017		$	27,050	$	9,837
Portfolio of eight retail properties,
Louisiana and Mississippi	February 1, 2016	$	13,750	$	787
Retail property,
Killeen, Texas	May 19, 2016		3,100		980
Land,
Sandy Springs, Georgia	June 15, 2016		8,858		2,331
Industrial property,
Tomlinson, Pennsylvania	June 30, 2016		14,800		5,660
Retail property,
Island Park, NY	December 22, 2016		2,702		213
			43,210		9,971
Partial condemnation of land,
Greenwood Village, Colorado(c)	July 5, 2016		153		116
Totals for 2016		$	43,363	$	10,087

(a)

See Note 11 for information on the payoff of the mortgage on this property and the early termination of the interest rate swap derivative.

(b)

See "—Impairment Loss" for additional information.

(c)

Represents amount received from the Colorado Department of Transportation ("CDOT"), as a result of a partial condemnation of land and easements obtained by CDOT.

F-26

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 5—SALES OF PROPERTIES AND IMPAIRMENT LOSS (Continued)

        In January 2015, a consolidated joint venture of the Company sold a property located in Cherry Hill, New Jersey for $16,025,000, net of closing costs. The sale resulted in a gain of $5,392,000, recorded as Gain on sale of real estate, net, for the year ended December 31, 2015. In connection with the sale, the Company paid off the $7,376,000 mortgage balance on this property and incurred a $472,000 swap termination fee (included in Prepayment costs on debt). The non-controlling interest's share of income from the transaction was $1,320,000 and is included in net income attributable to non-controlling interests.

Sale of Property Subsequent to December 31, 2017

        On January 30, 2018, the Company sold a property located in Fort Bend, Texas and owned by a consolidated joint venture in which the Company held an 85% interest, for approximately $9,000,000, net of closing costs, and paid off the $4,400,000 mortgage. This property accounted for less than 1.2% of the Company's rental income, net, during 2017, 2016 and 2015. The Company anticipates recognizing a gain of approximately $2,400,000 during the three months ending March 31, 2018. The non-controlling interest's share of the gain from the transaction will be approximately $800,000.

Impairment Loss

        In November 2017, the Company sold its property formerly tenanted by Joe's Crab Shack, located in Ann Arbor, Michigan. As the sales price was less than the net book value, the Company determined that the property was impaired and recorded an impairment loss of $153,000, representing the difference, at September 30, 2017, between the net sales price and the net book value. The impairment loss is included in the accompanying consolidated statement of income for the year ended December 31, 2017.

NOTE 6—ALLOWANCE FOR DOUBTFUL ACCOUNTS

        At December 31, 2017 and 2016, there was no balance in the allowance for doubtful accounts.

        The Company records bad debt expense as a reduction of rental income and/or tenant reimbursements. The Company recorded bad debt expense of $291,000, $105,000 and $89,000 during 2017, 2016 and 2015, respectively. Such bad debt expense related to rental income and tenant reimbursements due from five tenants at properties that filed for Chapter 11 bankruptcy protection during such years. In relation to these tenants, the Company wrote off (i) $362,000, $7,000 and $89,000 of unbilled straight-line rent receivable as a reduction to rental income, (ii) $67,000, $0 and $124,000 of unamortized intangible lease assets and liabilities as an adjustment to rental income and (iii) $884,000, $0 and $380,000 of tenant origination costs as an increase to depreciation expense during 2017, 2016 and 2015, respectively. In 2017, the Company sold three of these properties, located in Greenwood Village, Colorado, Niles, Illinois and Ann Arbor, Michigan (see Note 5) and re-tenanted one property in Philadelphia, Pennsylvania. The Company has determined that no impairment charge is required with respect to the remaining property, which at December 31, 2017, had a net book value of $2,118,000.

F-27

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 7—VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES

Variable Interest Entities—Ground Leases

        The Company determined that with respect to the properties identified in the table below, it has a variable interest through its ground leases and the three owner/operators (which are affiliated with one another) are VIEs because their equity investment at risk is insufficient to finance its activities without additional subordinated financial support. The Company further determined that it is not the primary beneficiary of any of these VIEs because the Company has shared power over certain activities that most significantly impact the owner/operator's economic performance (i.e., shared rights on the sale of the property) and therefore, does not consolidate these VIEs for financial statement purposes. Accordingly, the Company accounts for these investments as land and the revenues from the ground leases as Rental income, net. Such rental income amounted to $3,702,000, $2,361,000 and $1,280,000 during 2017, 2016 and 2015, respectively. Included in these amounts is rental income for a similarly structured transaction for a property located in Sandy Springs, Georgia, amounting to $308,000 and $419,000 during 2016 and 2015, respectively, which the Company sold in June 2016 (see Note 5).

        The following chart details the Company's VIEs through its ground leases and the aggregate carrying amount and maximum exposure to loss as of December 31, 2017 (dollars in thousands):

Description of Property(a)	Date Acquired	Land Contract Purchase Price		# Units in Apartment Complex		Owner/ Operator Mortgage from Third Party(b)			Type of Exposure	Carrying Amount and Maximum Exposure to Loss
The Meadows Apartments,
Lakemoor, Illinois	March 24, 2015	$	9,300		496	$	51,380	(c)	Land	$	9,592
The Briarbrook Village Apartments,
Wheaton, Illinois	August 2, 2016		10,530		342		39,411		Land		10,536
The Vue Apartments,
Beachwood, Ohio	August 16, 2016		13,896		348		67,444		Land		13,901
Totals		$	33,726		1,186	$	158,235			$	34,029

(a)

Simultaneously with each purchase, the Company entered into a triple net ground lease with affiliates of Strategic Properties of North America, the owner/operators of these properties.

(b)

Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party which, together with the Company's purchase of the land, provided substantially all of the funds to acquire the complex. The Company provided its land as collateral for the respective owner/operator's mortgage loans; accordingly, each land position is subordinated to the applicable mortgage. No other financial support has been provided by the Company to the owner/operator.

(c)

In November 2017, the owner/operator closed on a $7,556 supplemental mortgage (the original mortgage was for $43,824). In connection therewith, the Company agreed to subordinate its fee interest to this second mortgage in exchange for a payment by the owner/operator to the Company of $5,906 as a fixed rent payment which was recorded as deferred income and will be included in rental income over the term of the lease.

F-28

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 7—VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES (Continued)

        Pursuant to the terms of the ground lease for the Wheaton, Illinois property, the owner/operator is obligated to make certain unit renovations as and when units become vacant. Cash reserves to cover such renovation work, received by the Company in conjunction with the purchase of the property, are disbursed when the unit renovations are completed. The related cash reserve balance for this property was $443,000 and $643,000 at December 31, 2017 and 2016, respectively, and is classified as Restricted cash on the consolidated balance sheets.

Variable Interest Entities—Consolidated Joint Ventures

        With respect to the six consolidated joint ventures in which the Company holds between an 85% to 95% interest, the Company has determined that such ventures are VIEs because the non-controlling interests do not hold substantive kick-out or participating rights.

        In each of these six joint ventures, the Company has determined it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact each joint venture's performance including management, approval of expenditures, and the obligation to absorb the losses or rights to receive benefits. Accordingly, the Company has consolidated the operations of these joint ventures for financial statement purposes. The joint ventures' creditors do not have recourse to the assets of the Company other than those held by these joint ventures.

        The following is a summary of the consolidated VIEs' carrying amounts and classification in the Company's consolidated balance sheets, none of which are restricted (amounts in thousands):

	December 31,
	2017			2016
Land	$	17,844		$	17,844
Buildings and improvements, net of accumulated depreciation of $3,811 and $2,732, respectively		31,789			32,535
Cash		1,145			1,796
Unbilled rent receivable		1,011			775
Unamortized intangible lease assets, net		1,241			1,595
Escrow, deposits and other assets and receivables		948			1,355
Mortgages payable, net of unamortized deferred financing costs of $442 and $539, respectively		32,252			33,121
Accrued expenses and other liabilities		870			893
Unamortized intangible lease liabilities, net		2,015			2,200
Accumulated other comprehensive loss		(1	)		(70	)
Non-controlling interests in consolidated joint ventures		1,742			1,794

        At December 31, 2017 and 2016, MCB Real Estate, LLC and its affiliates ("MCB") are the Company's joint venture partner in four consolidated joint ventures in which the Company has aggregate equity investments of approximately $9,705,000 and $10,522,000, respectively. The Company's equity investment in its two other consolidated joint ventures is approximately $7,395,000 and $7,440,000 at December 31, 2017 and 2016, respectively.

F-29

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 7—VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES (Continued)

        In October 2016, the Company purchased MCB's 5% interest in a consolidated joint venture that owns a property in Deptford, New Jersey and obtained 100% ownership. The $436,000 difference between the purchase price paid of $446,000 and the non-controlling interest's share of the net assets of the property was accounted for as a reduction to paid-in capital.

        Distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro rata to the equity interest each partner has in the applicable venture.

NOTE 8—INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

        At December 31, 2017 and 2016, the Company's five unconsolidated joint ventures each owned and operated one property. The Company's equity investment in such unconsolidated joint ventures at such dates totaled $10,723,000 and $10,833,000, respectively. The Company recorded equity in earnings of $826,000, $1,005,000 and $412,000 during 2017, 2016 and 2015, respectively.

        At December 31, 2017, MCB is the Company's joint venture partner in one of these unconsolidated joint ventures in which the Company has an equity investment of $8,245,000.

NOTE 9—OTHER INCOME

        The year ended December 31, 2017 includes $243,000 paid to the Company by a former tenant in connection with the resolution of a dispute, and $74,000 that the Company received for easements on a sold property. The year ended December 31, 2016 includes $356,000 that the Company received for such easements.

NOTE 10—DEBT OBLIGATIONS

Mortgages Payable

        The following table details the Mortgages payable, net, balances per the consolidated balance sheets (amounts in thousands):

	December 31,
	2017			2016
Mortgages payable, gross	$	396,946		$	399,192
Unamortized deferred financing costs		(3,789	)		(4,294	)
Mortgages payable, net	$	393,157		$	394,898

        At December 31, 2017, there were 70 outstanding mortgages payable, all of which are secured by first liens on individual real estate investments with an aggregate gross carrying value of $624,361,000 before accumulated depreciation of $83,015,000. After giving effect to the interest rate swap agreements (see Note 11), the mortgage payments bear interest at fixed rates ranging from 3.02% to 6.59%, and mature between 2018 and 2042. The weighted average interest rate on all mortgage debt was 4.22% and 4.27% at December 31, 2017 and 2016, respectively.

F-30

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 10—DEBT OBLIGATIONS (Continued)

        Scheduled principal repayments during the next five years and thereafter are as follows (amounts in thousands):

Year Ending December 31,
2018(a)	$	24,871
2019		14,610
2020		11,901
2021		20,742
2022		43,771
Thereafter		281,051
Total	$	396,946

(a)

Includes $4,423 related to a mortgage loan that was paid off on a property sold in January 2018.

Line of Credit

        The Company has a credit facility with Manufacturers & Traders Trust Company, People's United Bank, VNB New York, LLC, and Bank Leumi USA, pursuant to which the Company may borrow up to $100,000,000, subject to borrowing base requirements. The facility, which matures December 31, 2019, provides that the Company pay an interest rate equal to the one month LIBOR rate plus an applicable margin ranging from 175 basis points to 300 basis points depending on the ratio of the Company's total debt to total value, as determined pursuant to the facility. The applicable margin was 175 basis points at December 31, 2017 and 2016. An unused facility fee of .25% per annum applies to the facility. The average interest rate on the facility was approximately 2.87%, 2.23% and 1.95% during 2017, 2016 and 2015, respectively.

        The credit facility includes certain restrictions and covenants which may limit, among other things, the incurrence of liens, and which require compliance with 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 debt to value, the minimum level of net income, certain investment limitations and the minimum value of unencumbered properties and the number of such properties. The Company was in compliance with all covenants at December 31, 2017.

        The facility is guaranteed by subsidiaries of the Company that own unencumbered properties and the Company pledged to the lenders the equity interests in the Company's subsidiaries. The facility is available for the acquisition of commercial real estate, repayment of mortgage debt, property improvements and general working capital purposes; provided, that if used for property improvements and working capital purposes, the amount outstanding for such purposes will not exceed the lesser of $15,000,000 and 15% of the borrowing base and if used for working capital purposes, will not exceed $10,000,000. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under the credit facility.

F-31

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 10—DEBT OBLIGATIONS (Continued)

        The following table details the Line of credit, net, balances per the consolidated balance sheets (amounts in thousands):

	December 31,
	2017			2016
Line of credit, gross	$	9,400		$	10,000
Unamortized deferred financing costs		(624	)		(936	)
Line of credit, net	$	8,776		$	9,064

        At March 5, 2018, there was an outstanding balance of $3,900,000 (before unamortized deferred financing costs) under the facility.

NOTE 11—FAIR VALUE MEASUREMENTS

        The carrying amounts of cash and cash equivalents, restricted cash, escrow, deposits and other assets and receivables (excluding interest rate swaps), dividends payable, and accrued expenses and other liabilities (excluding interest rate swaps), are not measured at fair value on a recurring basis, but are considered to be recorded at amounts that approximate fair value.

        At December 31, 2017, the $397,103,000 estimated fair value of the Company's mortgages payable is more than their $396,946,000 carrying value (before unamortized deferred financing costs) by approximately $157,000, assuming a blended market interest rate of 4.25% based on the 8.7 year weighted average remaining term to maturity of the mortgages. At December 31, 2016, the $413,916,000 estimated fair value of the Company's mortgages payable is greater than their $399,192,000 carrying value (before unamortized deferred financing costs) by approximately $14,724,000, assuming a blended market interest rate of 3.74% based on the 9.3 year weighted average remaining term to maturity of the mortgages.

        At December 31, 2017 and 2016, the carrying amount of the Company's line of credit (before unamortized deferred financing costs) of $9,400,000 and $10,000,000, respectively, approximates its fair value.

        The fair value of the Company's mortgages payable and line of credit are estimated using unobservable inputs such as available market information and discounted cash flow analysis based on borrowing rates the Company believes it could obtain with similar terms and maturities. These fair value measurements fall within Level 3 of the fair value hierarchy.

        Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

F-32

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 11—FAIR VALUE MEASUREMENTS (Continued)

Fair Value on a Recurring Basis

        The fair value of the Company's derivative financial instruments, using Level 2 inputs, was determined to be the following (amounts in thousands):

	As of December 31,		Carrying and Fair Value
Financial assets:
Interest rate swaps		2017	$	1,615
		2016		1,257
Financial liabilities:
Interest rate swaps		2017	$	1,492
		2016		2,695

        The Company does not currently own any financial instruments that are measured on a recurring basis and that are classified as Level 1 or 3.

        The Company's objective in using interest rate swaps is to add stability to interest expense. The Company does not use derivatives for trading or speculative purposes.

        Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities.

        Although the Company has determined the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with it use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparty. As of December 31, 2017, the Company has assessed and determined the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company determined its derivative valuation is classified in Level 2 of the fair value hierarchy.

        As of December 31, 2017, the Company had entered into 28 interest rate derivatives, all of which were interest rate swaps, related to 28 outstanding mortgage loans with an aggregate $132,965,000 notional amount and mature between 2018 and 2028 (weighted average remaining term to maturity of 7.0 years). Such interest rate swaps, all of which were designated as cash flow hedges, converted LIBOR based variable rate mortgages to fixed annual rate mortgages (with interest rates ranging from 3.02% to 5.38% and a weighted average interest rate of 4.11% at December 31, 2017). The fair value of the Company's derivatives in asset and liability positions are reflected as other assets or other liabilities on the consolidated balance sheets. During the year ended December 31, 2017, the Company discontinued hedge accounting on two of its interest rate swaps (see discussion following the table below).

        Three of the Company's unconsolidated joint ventures, in which wholly-owned subsidiaries of the Company are 50% partners, had two interest rate derivatives outstanding at December 31, 2017 with an

F-33

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 11—FAIR VALUE MEASUREMENTS (Continued)

aggregate $10,491,000 notional amount. These interest rate swaps, which were designated as cash flow hedges, have interest rates of 3.49% and 5.81% and mature in 2022 and 2018, respectively.

        The following table presents the effect of the Company's derivative financial instruments on the consolidated statements of income for the periods presented (amounts in thousands):

	Year Ended December 31,
	2017			2016			2015
One Liberty Properties Inc. and Consolidated Subsidiaries
Amount of (loss) gain recognized on derivatives in Other comprehensive income (loss)	$	(221	)	$	255		$	(3,722	)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Interest expense		(1,786	)		(2,624	)		(2,554	)
Unconsolidated Joint Ventures (Company's share)
Amount of gain (loss) recognized on derivatives in Other comprehensive income (loss)	$	15		$	(31	)	$	(109	)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Equity in earnings of unconsolidated joint ventures		(61	)		(95	)		(108	)

        During 2017, in connection with the sale of two properties located in Kansas City, Missouri and Ann Arbor, Michigan, the Company paid off the mortgages and terminated the related interest rate swaps. As the Company discontinued hedge accounting on these interest rate swaps as the hedged forecasted transactions became probable not to occur, the Company accelerated the reclassification of $201,000 from Accumulated other comprehensive income to Interest expense for the year ended December 31, 2017. No gain or loss was recognized with respect to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company's cash flow hedges for the three years ended December 31, 2017.

        During the twelve months ending December 31, 2018, the Company estimates an additional $565,000 will be reclassified from Accumulated other comprehensive income as an increase to Interest expense and $7,000 will be reclassified from Accumulated other comprehensive income as a decrease to Equity in earnings of unconsolidated joint ventures.

        The derivative agreements in effect at December 31, 2017 provide that if the wholly-owned subsidiary of the Company which is a party to the agreement defaults or is capable of being declared in default on any of its indebtedness, then a default can be declared on such subsidiary's derivative obligation. In addition, the Company is a party to the derivative agreements and if there is a default by the subsidiary on the loan subject to the derivative agreement to which the Company is a party and if there are swap breakage losses on account of the derivative being terminated early, then the Company could be held liable for such swap breakage losses, if any. During the year ended December 31, 2016, the Company terminated three interest rate swaps in connection with the early payoff of the related mortgages, and during the year ended December 31, 2015, the Company terminated one interest rate swap in connection with the sale of its Cherry Hill, New Jersey property. The Company accelerated the

F-34

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 11—FAIR VALUE MEASUREMENTS (Continued)

reclassification of amounts in accumulated other comprehensive income to earnings as a result of these hedged forecasted transactions being terminated. The accelerated amounts were losses of $178,000 and $472,000 during 2016 and 2015, respectively, which are included in Prepayment costs on debt on the consolidated statements of income.

        As of December 31, 2017 and 2016, the fair value of the derivatives in a liability position, including accrued interest of $53,000 and $113,000, respectively, but excluding any adjustments for nonperformance risk, was approximately $1,638,000 and $2,951,000, respectively. In the event the Company breaches any of the contractual provisions of the derivative contracts, it would be required to settle its obligations thereunder at their termination liability value of $1,638,000 and $2,951,000 as of December 31, 2017 and 2016, respectively. This termination liability value, net of adjustments for nonperformance risk of $93,000 and $143,000, is included in Accrued expenses and other liabilities on the consolidated balance sheet at December 31, 2017 and 2016, respectively.

Available-for-sale securities

        During 2016, the Company sold its available-for-sale securities for $33,000 which had a cost of $5,300. The Company realized a gain on sale of $27,000, which was reclassified from Accumulated other comprehensive loss on the consolidated balance sheet into Other income on the consolidated statement of income.

NOTE 12—RELATED PARTY TRANSACTIONS

Compensation and Services Agreement

        Pursuant to the compensation and services agreement with Majestic Property Management Corp. ("Majestic"), the Company pays fees to Majestic and Majestic provides to the Company the services of all affiliated executive, administrative, legal, accounting, clerical and property management personnel, as well as property acquisition, sale and lease consulting and brokerage services, consulting services with respect to mortgage financings and construction supervisory services. Majestic is wholly-owned by the Company's vice-chairman and certain of the Company's executive officers are officers of, and are compensated by, Majestic. The fee the Company pays Majestic is negotiated each year by Majestic and the Compensation and Audit Committees of the Company's Board of Directors, and is approved by such committees and the independent directors.

        In consideration for the services described above, the Company paid Majestic $2,673,000 in 2017, $2,504,000 in 2016 and $2,339,000 in 2015. Included in these fees are $1,154,000 in 2017, $1,057,000 in 2016 and $892,500 in 2015, of property management costs. The property management fee portion of the compensation and services agreement is paid based on 1.5% and 2.0% of the rental payments (including tenant reimbursements) actually received by the Company from net lease tenants and operating lease tenants, respectively. The Company does not pay Majestic property management fees with respect to properties managed by third parties. Majestic credits against the fees due to it under the compensation and services agreement any management or other fees received by it from any joint venture in which the Company is a joint venture partner. The compensation and services agreement also provides for an additional payment to Majestic of $216,000 in 2017, $196,000 in each of 2016 and 2015 for the Company's share of all direct office expenses, including rent, telephone, postage, computer

F-35

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 12—RELATED PARTY TRANSACTIONS (Continued)

services, internet usage and supplies. The Company does not pay any fees or expenses to Majestic for such services except for the fees described in this paragraph. In 2018, the fees paid to Majestic will remain the same as the 2017 fees (exclusive of the property management costs, which are calculated as described above).

        Executive officers and others providing services to the Company under the compensation and services agreement were awarded shares of restricted stock and RSUs under the Company's stock incentive plans (described in Note 13). The related expense charged to the Company's operations was $1,539,000, $1,480,000 and $1,245,000 in 2017, 2016 and 2015, respectively.

        The fees paid under the compensation and services agreement (except for the property management fees which are included in Real estate expenses) and the costs of the stock incentive plans are included in General and administrative expense on the consolidated statements of income for 2017, 2016 and 2015.

Joint Venture Partners and Affiliates

        During 2017, 2016 and 2015, the Company paid an aggregate of $143,000, $185,000 and $198,000, respectively, to its joint venture partners or their affiliates (none of whom are officers, directors, or employees of the Company) of its consolidated joint ventures for property management and acquisition fees, which are included in Real estate expenses and Real estate acquisition costs on the consolidated statements of income.

        The Company's unconsolidated joint ventures paid management fees of $175,000, $176,000 and $409,000 to the other partner of the venture, which reduced Equity in earnings of unconsolidated joint ventures on the consolidated statements of income by $88,000, $88,000 and $205,000 during 2017, 2016 and 2015, respectively. In 2015, the Company received a $131,000 fee for obtaining the mortgage debt for the unconsolidated joint venture that acquired the Manahawkin, New Jersey property. Fifty percent of this income is included in Other income on the consolidated statement of income and the balance is recorded as a reduction to the investment.

        See Note 7 for information regarding the Company's purchase in October 2016, of MCB's 5% interest in a consolidated joint venture that owned a property in Deptford, New Jersey.

Other

        During 2017, 2016 and 2015, the Company paid fees of (i) $276,000, $262,500 and $262,500, respectively, to the Company's chairman and (ii) $110,000, $105,000 and $105,000, respectively, to the Company's vice-chairman. There is no increase in the amounts to be paid to the Company's chairman and vice-chairman in 2018. These fees are included in General and administrative expense on the consolidated statements of income.

        At December 31, 2017 and 2016, Gould Investors L.P. ("Gould Investors"), owned 1,785,976 shares of the outstanding common stock of the Company, or approximately 9.5% and 9.8%, respectively. During 2015, Gould Investors purchased 81,211 shares of the Company's stock through the Company's dividend reinvestment plan, and did not purchase any such shares during 2017 and 2016.

F-36

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 12—RELATED PARTY TRANSACTIONS (Continued)

        The Company obtains its property insurance in conjunction with Gould Investors and reimburses Gould Investors annually for the Company's insurance cost relating to its properties. Amounts reimbursed to Gould Investors were $790,000, $699,000 and $520,000 during 2017, 2016 and 2015, respectively. Included in Real estate expenses on the consolidated statements of income is insurance expense of $757,000, $645,000 and $339,000 during 2017, 2016 and 2015, respectively. The balance of the amounts reimbursed to Gould Investors represents prepaid insurance and is included in Other assets on the consolidated balance sheets.

NOTE 13—STOCKHOLDERS' EQUITY

Stock Based Compensation

        The Company's 2016 Incentive Plan ("Plan"), approved by the Company's stockholders in June 2016, permits the Company to grant, among other things, stock options, restricted stock, RSUs, performance share awards and dividend equivalent rights and any one or more of the foregoing to its employees, officers, directors and consultants. A maximum of 750,000 shares of the Company's common stock is authorized for issuance pursuant to this Plan. As of December 31, 2017, (i) restricted stock awards with respect to 140,100 shares had been issued, of which 100 shares were forfeited and 3,000 shares had vested, and (ii) as further described below, RSUs with respect to 76,250 shares had been issued and are outstanding. On January 18, 2018, 144,750 restricted shares were issued pursuant to this Plan, having an aggregate value of approximately $3,664,000 and are scheduled to vest in January 2023.

        Under the Company's 2012 equity incentive plan, as of December 31, 2017, 500,700 shares had been issued, of which 3,350 shares were forfeited and 21,450 shares had vested. No additional awards may be granted under this plan.

        For accounting purposes, the restricted stock is not included in the shares shown as outstanding on the balance sheet until they vest; however, dividends are paid on the unvested shares. The restricted stock grants are charged to General and administrative expense over the respective vesting periods based on the market value of the common stock on the grant date. Unless earlier forfeited because the participant's relationship with the Company terminated, unvested restricted stock awards vest on the fifth anniversary of the grant date, and under certain circumstances may vest earlier.

F-37

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 13—STOCKHOLDERS' EQUITY (Continued)

        During 2017, the Company granted RSUs exchangeable for up to 76,250 shares of common stock upon satisfaction, through June 30, 2020, of specified conditions. Specifically, up to 50% of these RSUs vest upon achievement of metrics related to average annual total stockholder return (the "TSR Awards"), which metrics meet the definition of a market condition, and up to 50% vest upon achievement of metrics related to average annual return on capital (the "ROC Awards"), which metrics meet the definition of a performance condition. The holders of the RSUs are not entitled to dividends or to vote the underlying shares until such RSUs vest and shares are issued. Accordingly, the shares underlying these RSUs are not included in the shares shown as outstanding on the balance sheet. For the TSR awards, a third party appraiser prepared a Monte Carlo simulation pricing model to determine the fair value, which is recognized ratably over the service period. The Monte Carlo valuation consisted of computing the grant date fair value of the awards using the Company's simulated stock price. The per unit or share fair value was estimated using the following assumptions: an expected life of three years, a dividend rate of 7.16%, a risk-free interest rate of 1.14% - 1.64% and an expected price volatility of 16.57% - 19.16%. The expected price volatility was calculated based on the historical volatility and implied volatility. For the ROC awards, the fair value is based on the market value on the date of grant and the performance assumptions are re-evaluated quarterly. Expense is not recognized on the RSUs which the Company does not expect to vest as a result of service conditions or the Company's performance expectations.

        The total amount recorded as deferred compensation is $1,004,000, based on performance and market assumptions and will be charged to General and administrative expense through June 30, 2020. None of these RSUs were forfeited or vested during the year ended December 31, 2017.

        In 2010, RSUs exchangeable for up to 200,000 shares of common stock were awarded pursuant to the Company's 2009 equity incentive plan. The holders of RSUs were not entitled to dividends or to vote the underlying shares until the RSUs vested and the underlying shares were issued. Accordingly, for financial statement purposes, the shares underlying these RSUs were not included in the shares shown as outstanding on the balance sheet as of December 31, 2016. During 2017, 113,584 shares of common stock underlying the RSUs were deemed to have vested and were issued. RSUs with respect to the balance of 86,416 shares were forfeited.

F-38

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 13—STOCKHOLDERS' EQUITY (Continued)

        The following is a summary of the activity of the equity incentive plans:

	Years Ended December 31,
	2017			2016			2015
Restricted stock:
Number of shares		140,100			139,225			129,975
Average per share grant price	$	24.75		$	21.74		$	24.60
Deferred compensation to be recognized over vesting period	$	3,467,000		$	3,027,000		$	3,197,000
Number of non-vested shares:
Non-vested beginning of year		591,750			538,755			480,995
Grants		140,100			139,225			129,975
Vested during year		(118,450	)		(85,730	)		(72,215	)
Forfeitures		(500	)		(500	)		—
Non-vested end of year		612,900			591,750			538,755
RSU grants:
Number of underlying shares		76,250			—			—
Average per share grant price	$	24.03			—			—
Deferred compensation to be recognized over vesting period	$	1,004,000			—			—
Number of non-vested shares:
Non-vested beginning of year		200,000			200,000			200,000
Grants		76,250			—			—
Vested during year		(113,584	)		—			—
Forfeitures		(86,416	)		—			—
Non-vested end of year		76,250			200,000			200,000
Restricted stock and RSU grants:
Weighted average per share value of non-vested shares (based on grant price)	$	22.89		$	17.95		$	17.12
Value of stock vested during the year (based on grant price)	$	3,008,000		$	1,451,500		$	612,000
Weighted average per share value of shares forfeited during the year (based on grant price)	$	8.37		$	21.05		$	—
Total charge to operations:
Outstanding restricted stock grants	$	2,966,000		$	2,692,000		$	2,204,000
Outstanding RSUs		167,000			291,000			130,000
Total charge to operations	$	3,133,000		$	2,983,000		$	2,334,000

        As of December 31, 2017, total compensation of $7,098,000 related to non-vested restricted stock awards and RSUs have not yet been recognized. These compensation costs will be charged to General and administrative expense over the remaining respective vesting periods. The weighted average vesting period is 2.2 years for the restricted stock and 2.5 years for the RSUs.

F-39

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 13—STOCKHOLDERS' EQUITY (Continued)

Common Stock Dividend Distributions

        In 2017, 2016 and 2015, the Board of Directors declared an aggregate $1.74, $1.66, and $1.58 per share in cash distributions, respectively.

        On March 12, 2018, the Board of Directors declared a quarterly cash dividend of $.45 per share on the Company's common stock, totaling $8,581,000. The quarterly dividend is payable on April 6, 2018 to stockholders of record on March 27, 2018.

Dividend Reinvestment Plan

        The Company's Dividend Reinvestment Plan (the "DRP") provides stockholders with the opportunity to reinvest all, or a portion of, their cash dividends paid on the Company's common stock in additional shares of its common stock, at a discount of up to 5% from the market price. The discount is determined in the Company's sole discretion. The Company is currently offering up to a 5% discount from market. The Company issued 198,000, 142,000, and 197,000 common shares under the DRP during 2017, 2016 and 2015, respectively.

Shares Issued Through Equity Offering Program

        During 2017, the Company sold 231,000 shares for proceeds of $5,758,000, net of commissions of $58,000, and incurred offering costs of $188,000 for professional fees. During 2016, the Company sold 1,079,862 shares for proceeds of $25,947,000, net of commissions of $262,000, and incurred offering costs of $160,000 for professional fees. There were no sales subsequent to December 31, 2017.

NOTE 14—COMMITMENTS AND CONTINGENCIES

        The Company maintains a non-contributory defined contribution pension plan covering eligible employees. Contributions by the Company are made through a money purchase plan, based upon a percent of the qualified employees' total salary (subject to the maximum amount allowed by law). Pension expense approximated $275,000, $273,000, and $266,000 for 2017, 2016 and 2015, respectively, and is included in General and administrative expense in the consolidated statements of income.

        The Company is contractually required (i) to expend approximately $7,800,000 through 2018 for building expansion and improvements at its property tenanted by L-3 Communications, located in Hauppauge, New York, of which $3,584,000 has been spent through December 31, 2017 and (ii) to reimburse Regal Cinemas, a tenant in Greensboro, North Carolina, $3,000,000 when the tenant completes specified improvements to the property. On January 26, 2018, the Company reimbursed this amount to the tenant.

        The Company pays, with respect to one of its real estate properties, annual fixed leasehold rent of $371,094 through July 2019 and $463,867 through March 3, 2020. The Company has the right to extend the lease for up to five 5-year renewal options and one seven month renewal option.

        As discussed in Note 7, the Company provided its land in Lakemoor and Wheaton, Illinois, and Beachwood, Ohio as collateral for the respective owner/operator's mortgage loans and accordingly, each land position is subordinated to the applicable mortgage.

F-40

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 14—COMMITMENTS AND CONTINGENCIES (Continued)

        In the ordinary course of business, the Company is party to various legal actions which management believes are routine in nature and incidental to the operation of the Company's business. Management believes that the outcome of the proceedings will not have a material adverse effect upon the Company's consolidated financial statements taken as a whole.

NOTE 15—INCOME TAXES

        The Company elected to be taxed as a REIT under the Internal Revenue Code, commencing with its taxable year ended December 31, 1983. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its adjusted taxable income to its stockholders. As a REIT, the Company generally will not be subject to corporate level federal, state and local income tax on taxable income it distributes currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal, state and local income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. It is management's current intention to adhere to these requirements and maintain the Company's REIT status.

        Even though the Company qualifies for taxation as a REIT, the Company is subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. As of December 31, 2017, tax returns for the calendar years 2014 through 2017 remain subject to examination by the Internal Revenue Service and various state and local tax jurisdictions.

        During 2017, 2016 and 2015, the Company recorded federal excise tax expense of $0, $6,000 and $174,000, respectively, which is based on taxable income generated but not yet distributed. During 2017, 2016 and 2015, the Company did not incur any federal income tax expense. The Company does not have any deferred tax assets or liabilities at December 31, 2017 and 2016.

        During 2017, 2016 and 2015, 17%, 27% and 67%, respectively, of the distributions were treated as capital gain distributions, with the balance treated as ordinary income.

        The Company treats depreciation expense, straight-line rent adjustments and certain other items differently for tax purposes than for financial reporting purposes. Therefore, its dividends paid deduction differs from its financial statement income.

F-41

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 15—INCOME TAXES (Continued)

        The following table reconciles cash dividends paid with the dividends paid deduction for the years indicated (amounts in thousands):

	2017 Estimate			2016 Actual			2015 Actual
Dividends paid	$	32,393		$	29,135		$	26,179
Dividend reinvestment plan(a)		252			181			228
		32,645			29,316			26,407
Less: Spillover dividends designated to previous year		(11,916	)		(15,209	)		(18,177	)
Plus: Dividends designated from following year		10,263			11,916			15,209
Dividends paid deduction	$	30,992		$	26,023		$	23,439

(a)

Reflects the up to 5% discount on common stock purchased through the dividend reinvestment plan.

NOTE 16—SUBSEQUENT EVENTS

        Subsequent events have been evaluated and, except as previously disclosed, there were no other events relative to the consolidated financial statements that require additional disclosure.

NOTE 17—QUARTERLY FINANCIAL DATA (Unaudited):

            (In Thousands, Except Per Share Data)

	Quarter Ended
									Total For Year
2017	March 31		June 30		Sept. 30		Dec. 31
Total revenues	$	18,472	$	18,413	$	19,137	$	19,894	$	75,916
Gain on sale of real estate, net	$	—	$	6,568	$	3,269	$	—	$	9,837
Net income	$	2,886	$	9,993	$	7,128	$	4,242	$	24,249
Net income attributable to One Liberty Properties, Inc.	$	2,865	$	9,972	$	7,105	$	4,205	$	24,147
Weighted average number of common shares outstanding:
Basic		17,751		17,824		18,000		18,198		17,944
Diluted		17,865		17,938		18,079		18,269		18,047
Net income per common share attributable to common stockholders:
Basic	$	.15	$	.54	$	.38	$	.22	$	1.29	(a)
Diluted	$	.15	$	.54	$	.38	$	.22	$	1.28	(a)

F-42

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Continued)

December 31, 2017

NOTE 17—QUARTERLY FINANCIAL DATA (Unaudited): (Continued)

	Quarter Ended
									Total For Year
2016	March 31		June 30		Sept. 30		Dec. 31
Total revenues	$	16,344	$	17,233	$	18,021	$	18,990	$	70,588
Gain on sale of real estate, net	$	787	$	8,918	$	119	$	263	$	10,087
Net income	$	3,285	$	12,459	$	4,323	$	4,414	$	24,481
Net income attributable to One Liberty Properties, Inc.	$	3,287	$	12,441	$	4,299	$	4,395	$	24,422
Weighted average number of common shares outstanding:
Basic		16,388		16,579		16,845		17,255		16,768
Diluted		16,495		16,686		16,962		17,369		16,882
Net income per common share attributable to common stockholders:
Basic	$	.19	$	.72	$	.24	$	.24	$	1.40	(a)
Diluted	$	.18	$	.72	$	.24	$	.24	$	1.39	(a)

(a)

Calculated on weighted average shares outstanding for the year.

F-43

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Schedule III—Consolidated Real Estate and Accumulated Depreciation

December 31, 2017

(Amounts in Thousands)

								Cost Capitalized Subsequent to Acquisition		Gross Amount at Which Carried at December 31, 2017
				Initial Cost to Company
						Building and Improvements						Building & Improvements				Accumulated Depreciation(1)		Date of Construction		Date Acquired
Type	Location	Encumbrances		Land				Improvements		Land				Total
Health & Fitness	Tucker, GA	$	—	$	807	$	3,027	$	3,126	$	807	$	6,153	$	6,960	$	2,290		1988		2002
Health & Fitness	Hamilton, OH		4,814		1,483		5,953		—		1,483		5,953		7,436		1,096		2008		2011
Health & Fitness	Secaucus, NJ		8,865		5,449		9,873		—		5,449		9,873		15,322		1,253		1986		2012
Industrial	Ronkonkoma, NY		—		1,042		4,171		2,517		1,042		6,688		7,730		2,181		1986		2000
Industrial	Hauppauge, NY		11,969		1,951		10,954		5,382		1,951		16,336		18,287		5,255		1982		2000
Industrial	Fort Mill, SC		8,290		1,840		12,687		23		1,840		12,710		14,550		1,568		1992		2013
Industrial	Columbus, OH		—		435		1,703		27		435		1,730		2,165		734		1979		1995
Industrial	West Palm Beach, FL		—		181		724		—		181		724		905		348		1973		1998
Industrial	New Hyde Park, NY		2,563		182		728		281		182		1,009		1,191		380		1960		1999
Industrial	Melville, NY		2,749		774		3,029		975		774		4,004		4,778		1,324		1982		2003
Industrial	Saco, ME		—		1,027		3,623		2,050		1,027		5,673		6,700		1,063		2001		2006
Industrial	Baltimore, MD(2)		20,527		6,474		25,282		—		6,474		25,282		31,756		6,979		1960		2006
Industrial	Durham, NC		2,788		1,043		2,404		—		1,043		2,404		3,447		466		1991		2011
Industrial	Pinellas Park, FL		2,384		1,231		1,669		—		1,231		1,669		2,900		271		1995		2012
Industrial	Miamisburg, OH		735		165		1,348		11		165		1,359		1,524		199		1987		2012
Industrial	Indianapolis, IN		5,933		1,224		6,935		—		1,224		6,935		8,159		996		1997		2013
Industrial	Fort Mill, SC		24,994		1,804		33,650		—		1,804		33,650		35,454		5,123		1997		2013
Industrial	New Hope, MN		4,227		881		6,064		81		881		6,145		7,026		481		1967		2014
Industrial	Louisville, KY		2,389		578		3,727		4		578		3,731		4,309		274		1974		2015
Industrial	Louisville, KY		—		51		230		—		51		230		281		16		1974		2015
Industrial	McCalla, AL		10,325		1,588		14,682		—		1,588		14,682		16,270		921		2003		2015
Industrial	St. Louis, MO		11,707		3,728		13,006		695		3,728		13,701		17,429		809		1969		2015
Industrial	Greenville, SC		5,086		693		6,893		11		693		6,904		7,597		322		1997		2016
Industrial	Greenville, SC		5,651		528		8,074		6		528		8,080		8,608		375		2000		2016
Industrial	El Paso, TX		14,487		3,691		17,904		324		3,691		18,228		21,919		737		1997		2016
Industrial	Lebanon, TN		21,288		2,094		30,039		14		2,094		30,053		32,147		1,004		1996		2016
Industrial	Huntersville, NC		5,116		1,046		6,674		—		1,046		6,674		7,720		111		2014		2017
Industrial	Pittston, PA		7,142		999		9,922		250		999		10,172		11,171		146		1990		2017
Industrial	Ankeny, IA		8,729		1,351		11,607		—		1,351		11,607		12,958		162		2016		2017
Industrial	Memphis, TN		—		135		7,952		—		135		7,952		8,087		43		1979		2017
Industrial	Joppa, MD		9,600		3,815		8,142		1,473		3,815		9,615		13,430		836		1994		2014
Office	Brooklyn, NY		3,532		1,381		5,447		2,870		1,381		8,317		9,698		3,641		1973		1998
Other	Round Rock, TX		13,892		1,678		16,670		—		1,678		16,670		18,348		1,840		2012		2013
Other	Lakemoor, IL		—		9,592		—		—		9,592		—		9,592		—		N/A		2015
Other	Wheaton, IL		—		10,536		—		—		10,536		—		10,536		—		N/A		2016
Other	Beachwood, OH		—		13,901		—		—		13,901		—		13,901		—		N/A		2016
Restaurant	Hauppauge, NY		1,736		725		2,963		—		725		2,963		3,688		898		1992		2005
Restaurant	Palmyra, PA		735		650		650		—		650		650		1,300		121		1981		2010

F-44

								Cost Capitalized Subsequent to Acquisition		Gross Amount at Which Carried at December 31, 2017
				Initial Cost to Company
						Building and Improvements						Building & Improvements				Accumulated Depreciation(1)		Date of Construction		Date Acquired
Type	Location	Encumbrances		Land				Improvements		Land				Total
Restaurant	Reading, PA		726		655		625		—		655		625		1,280		116		1981		2010
Restaurant	Reading, PA		714		618		643		—		618		643		1,261		121		1983		2010
Restaurant	Hanover, PA		803		736		686		—		736		686		1,422		126		1992		2010
Restaurant	Gettysburg, PA		823		754		704		—		754		704		1,458		130		1991		2010
Restaurant	Trexlertown, PA		700		800		439		—		800		439		1,239		81		1994		2010
Restaurant	Carrollton, GA		1,569		796		1,458		—		796		1,458		2,254		250		1996		2012
Restaurant	Cartersville, GA		1,484		786		1,346		—		786		1,346		2,132		245		1995		2012
Restaurant	Kennesaw, GA		1,216		702		916		—		702		916		1,618		161		1989		2012
Restaurant	Lawrenceville, GA		1,167		866		899		—		866		899		1,765		204		1988		2012
Restaurant	Concord, NC		1,529		999		1,076		—		999		1,076		2,075		143		2000		2013
Restaurant	Myrtle Beach, SC		1,529		1,102		1,161		—		1,102		1,161		2,263		161		1978		2013
Restaurant	Greensboro, NC		3,253		1,770		1,237		—		1,770		1,237		3,007		156		1983		2013
Restaurant	Richmond, VA		—		1,680		1,341		—		1,680		1,341		3,021		162		1983		2013
Restaurant	Indianapolis, IN		928		853		1,465		—		853		1,465		2,318		169		1982		2014
Retail	Seattle, WA		—		201		189		—		201		189		390		143		1986		1987
Retail	Rosenberg, TX		—		216		863		66		216		929		1,145		500		1994		1995
Retail	Ft. Myers, FL		—		1,013		4,054		—		1,013		4,054		5,067		2,141		1995		1996
Retail	Houston, TX		—		396		1,583		30		396		1,613		2,009		800		1997		1998
Retail	Selden, NY		2,889		572		2,287		150		572		2,437		3,009		1,132		1997		1999
Retail	Champaign, IL		1,580		791		3,165		308		791		3,473		4,264		1,553		1985		1999
Retail	El Paso, TX		11,086		2,821		11,123		2,544		2,821		13,667		16,488		5,567		1974		2000
Retail	Somerville, MA		1,774		510		1,993		24		510		2,017		2,527		749		1993		2003
Retail	Newark, DE		1,716		935		3,643		43		935		3,686		4,621		1,318		1996		2003
Retail	Knoxville, TN		9,112		2,290		8,855		—		2,290		8,855		11,145		3,053		2003		2004
Retail	Onalaska, WI		3,539		753		3,099		—		753		3,099		3,852		1,017		1994		2004
Retail	Hyannis, MA		131		802		2,324		—		802		2,324		3,126		579		1998		2008
Retail	Marston Mills, MA		—		461		2,313		—		461		2,313		2,774		571		1998		2008
Retail	Everett, MA		1,178		1,935		—		—		1,935		—		1,935		—		N/A		2008
Retail	Kennesaw, GA		5,373		1,501		4,349		1,138		1,501		5,487		6,988		1,148		1995		2008
Retail	Royersford, PA		19,750		19,538		3,150		424		19,538		3,574		23,112		707		2001		2010
Retail	Monroeville, PA		—		450		863		—		450		863		1,313		164		1994		2010
Retail	Houston, TX		—		1,962		1,540		—		1,962		1,540		3,502		315		2006		2010
Retail	Houston, TX		—		2,002		1,800		—		2,002		1,800		3,802		362		2009		2010
Retail	Bolingbrook, IL		—		834		1,887		101		834		1,988		2,822		368		2001		2011
Retail	Crystal Lake, IL		1,696		615		1,899		—		615		1,899		2,514		396		1997		2011
Retail	Lawrence, KS		—		134		938		22		134		960		1,094		138		1915		2012
Retail	Greensboro, NC		1,365		1,046		1,552		29		1,046		1,581		2,627		182		2002		2014
Retail	Highlands Ranch, CO		—		2,361		2,924		—		2,361		2,924		5,285		307		1995		2014
Retail	Woodbury, MN		2,957		1,190		4,003		—		1,190		4,003		5,193		413		2006		2014
Retail	Lincoln, NE		—		3,768		11,832		30		3,768		11,862		15,630		888		2001		2015
Retail	Cuyahoga Falls, OH		1,114		71		1,371		—		71		1,371		1,442		55		2004		2016
Retail	Hilliard, OH		987		300		1,077		—		300		1,077		1,377		45		2007		2016
Retail	Port Clinton, OH		955		52		1,187		—		52		1,187		1,239		49		2005		2016
Retail	South Euclid, OH		1,083		230		1,566		—		230		1,566		1,796		63		1975		2016
Retail	St Louis Park, MN		—		3,388		13,088		141		3,388		13,229		16,617		483		1962		2016

F-45

								Cost Capitalized Subsequent to Acquisition		Gross Amount at Which Carried at December 31, 2017
				Initial Cost to Company
						Building and Improvements						Building & Improvements				Accumulated Depreciation(1)		Date of Construction		Date Acquired
Type	Location	Encumbrances		Land				Improvements		Land				Total
Retail	Deptford, NJ		2,718		572		1,779		705		572		2,484		3,056		556		1981		2012
Retail	Cape Girardeau, MO		1,199		545		1,547		—		545		1,547		2,092		229		1994		2012
Retail	Clemmons, NC		2,119		2,564		3,293		—		2,564		3,293		5,857		561		1993		2013
Retail	Houston, TX		4,423		3,121		3,767		179		3,121		3,946		7,067		700		2001		2012
Retail	Littleton, CO		11,077		6,005		11,272		206		6,005		11,478		17,483		975		1985		2015
Retail—Supermarket	Philadelphia, PA		4,276		1,793		5,640		80		1,793		5,720		7,513		511		1992		2014
Retail—Supermarket	West Hartford, CT		17,211		9,296		4,813		261		9,296		5,074		14,370		1,055		2005		2010
Retail—Supermarket	West Hartford, CT		—		2,881		94		326		2,881		420		3,301		148		N/A		2010
Retail—Furniture	Columbus, OH		—		1,445		5,431		413		1,445		5,844		7,289		2,914		1996		1997
Retail—Furniture	Duluth, GA(3)		1,558		778		3,436		—		778		3,436		4,214		1,006		1987		2006
Retail—Furniture	Fayetteville, GA(3)		1,956		976		4,308		—		976		4,308		5,284		1,262		1987		2006
Retail—Furniture	Wichita, KS(3)		2,382		1,189		5,248		—		1,189		5,248		6,437		1,537		1996		2006
Retail—Furniture	Lexington, KY(3)		1,602		800		3,532		—		800		3,532		4,332		1,034		1999		2006
Retail—Furniture	Bluffton, SC(3)		1,180		589		2,600		—		589		2,600		3,189		761		1994		2006
Retail—Furniture	Amarillo, TX(3)		1,723		860		3,810		—		860		3,810		4,670		1,112		1996		2006
Retail—Furniture	Austin, TX(3)		3,179		1,587		7,010		—		1,587		7,010		8,597		2,052		2001		2006
Retail—Furniture	Tyler, TX(3)		2,066		1,031		4,554		—		1,031		4,554		5,585		1,333		2001		2006
Retail—Furniture	Newport News, VA(3)		1,505		751		3,316		—		751		3,316		4,067		971		1995		2006
Retail—Furniture	Richmond, VA(3)		1,736		867		3,829		—		867		3,829		4,696		1,121		1979		2006
Retail—Furniture	Virginia Beach, VA(3)		1,711		854		3,770		—		854		3,770		4,624		1,104		1995		2006
Retail—Furniture	Gurnee, IL		—		834		3,635		—		834		3,635		4,469		1,026		1994		2006
Retail—Furniture	Naples, FL		2,069		3,070		2,846		189		3,070		3,035		6,105		700		1992		2008
Retail—Office Supply	Batavia, NY(4)		—		515		2,061		—		515		2,061		2,576		972		1998		1999
Retail—Office Supply	Lake Charles, LA(4)		5,146		1,167		4,669		599		1,167		5,268		6,435		2,014		1998		2002
Retail—Office Supply	Athens, GA(4)		2,772		1,130		4,340		—		1,130		4,340		5,470		1,478		2003		2004
Retail—Office Supply	Chicago, IL(4)		3,735		3,877		2,256		—		3,877		2,256		6,133		524		1994		2008
Retail—Office Supply	Cary, NC(4)		3,151		1,129		3,736		—		1,129		3,736		4,865		868		1995		2008
Retail—Office Supply	Eugene, OR(4)		2,805		1,952		2,096		—		1,952		2,096		4,048		487		1994		2008
Retail—Office Supply	El Paso, TX(4)		2,451		1,035		2,700		—		1,035		2,700		3,735		627		1993		2008
Theater	Greensboro, NC		—		—		8,328		—		—		8,328		8,328		7,170		1999		2004
Theater	Indianapolis, IN		4,217		3,099		5,225		19		3,099		5,244		8,343		451		1997		2014
		$	396,946	$	209,320	$	537,860	$	28,147	$	209,320	$	566,007	$	775,327	$	108,953

Note 1—Depreciation is provided over the estimated useful lives of the buildings and improvements, which range from 3 to 40 years.

Note 2—Upon purchase of the property in December 2006, a $416,000 rental income reserve was posted by the seller for the Company's benefit, since the property was not producing sufficient rent at the time of acquisition. The Company recorded the receipt of this rental reserve as a reduction to land and building.

Note 3—These 11 properties are retail furniture stores covered by one master lease and one loan that is secured by cross - collateralized mortgages. They are located in six states (Georgia, Kansas, Kentucky, South Carolina, Texas and Virginia).

Note 4—These seven properties are retail office supply stores net leased to the same tenant, pursuant to separate leases. Five of these leases contain cross default provisions. They are located in seven states (Illinois, Louisiana, North Carolina, Texas, Georgia, Oregon, and New York).

F-46

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
Notes to Schedule III
Consolidated Real Estate and Accumulated Depreciation

(a)

Reconciliation of "Real Estate and Accumulated Depreciation"

(Amounts in Thousands)

	Year Ended December 31,
	2017			2016			2015
Investment in real estate (b):
Balance, beginning of year	$	748,065		$	662,182		$	592,668
Addition: Land, buildings and improvements		47,207			121,564			83,643
Deduction: Properties sold/conveyed		(19,792	)		(35,681	)		(14,129	)
Deduction: Impairment loss		(153	)		—			—
Balance, end of year	$	775,327		$	748,065		$	662,182
		(c)
Accumulated depreciation (b):
Balance, beginning of year	$	96,852		$	87,801		$	77,643
Addition: Depreciation		15,689			14,247			12,680
Deduction: Accumulated depreciation related to properties sold/conveyed		(3,588	)		(5,196	)		(2,522	)
Balance, end of year	$	108,953		$	96,852		$	87,801

(b)

Includes properties held-for-sale in 2015.

(c)

The aggregate cost of the properties is approximately $13,260 higher for federal income tax purposes at December 31, 2017.

F-47

EX-10.7

Exhibit 10.7

RESTRICTED STOCK AWARDS AGREEMENT

RESTRICTED STOCK AWARDS AGREEMENT, dated as of January 18, 2018, by and between One Liberty Properties, Inc., a Maryland corporation, having its principal place of business at 60 Cutter Mill Road, Great Neck, New York  11021 (the “Company”) and the person named on the signature page of this Agreement (“Holder”).

W I T N E S S E T H

A.            The Board of Directors of the Company adopted, and the stockholders of the Company approved, the One Liberty Properties, Inc. 2016 Incentive Plan, a copy of which is made a part hereof (the “Plan”);

B.            The Holder acknowledges receipt of a copy of the Plan;

C.            The Compensation Committee of the Board of Directors (“Committee”) has approved an award of restricted shares of the Company’s common stock, $1.00 par value per share (the “Restricted Stock”) to the Holder, all in accordance with the terms and conditions of the Plan and this Agreement; and

D.            Unless otherwise defined herein, the defined terms used in this Agreement shall have the meanings set forth in the Plan

NOW THEREFORE, in consideration of the foregoing and the mutual promises herein contained, the Company and the Holder hereby agree as follows:

1.             Participant.  Holder is (a) an officer, employee, director or consultant of the Company and/or (b) performing services on behalf of the Company, either directly or pursuant to a Shared Services Agreement among the Company, BRT Apartments Corp., Gould Investors L.P. and other entities and is deemed an employee of the Company for all purposes of the Plan and this Agreement (all of the foregoing referred to collectively as an “Eligible Participant”).

2.             Award.  Holder is hereby awarded the number of shares of Restricted Stock set forth opposite Holder’s name on the signature page hereof.  At the sole discretion of the Company, the Restricted Stock will be issued in either (a) uncertificated form, with such shares recorded in the name of the Holder on the books and records of the Company’s transfer agent (the “Transfer Agent”)  with appropriate notations to reflect the restrictions imposed by the Plan and this Agreement; or (b) in certificated form.

3.             Stock Power; Legend. The Restricted Stock registered in the name of the Holder shall remain, either directly, or indirectly through the Transfer Agent, in the custody of the Company.  The Holder shall execute, deliver to and deposit with the Company a stock power, duly endorsed in blank, so as to permit the retransfer to the Company of the Restricted Stock if the Restricted Stock shall be forfeited or otherwise does not vest in accordance with the Plan and this Agreement.  The certificate representing the Restricted Stock shall bear (or if the Restricted Stock is issued in uncertificated form, the books and records of the Transfer Agent shall reflect) the following (or other similar) restrictive legend:

“The transferability of these shares is subject to the terms and conditions of the One Liberty Properties, Inc. 2016 Incentive Plan and to the terms and conditions of an Agreement entered into between the owner of these shares and One Liberty Properties, Inc.  Copies of the Plan and the Agreement are on file at the offices of the Company.”

4.             Vesting of Restricted Stock.  (a) Unless the Restricted Stock is forfeited pursuant to this Agreement or the Plan, the Period of Restriction for the Restricted Stock shall terminate upon the earlier of (such date, the “Vesting Date,”) (i) the death, Disability or Retirement of the Holder, (ii) a Change of Control, and (iii) January 17, 2023.

(b) On the Vesting Date, (i) the Period of Restriction shall terminate, (ii) the Restricted Stock shall vest and be delivered to the Holder and (iii) Retained Distributions (as defined in Section 5), if any, with respect to the Restricted Stock shall vest and be delivered (and in the case of subparagraphs (ii) or (iii), if the Restricted Stock or Retained Distributions are in uncertificated form, made available by the Transfer Agent) to Holder.

5.             Rights During Restriction Period.  During the Period of Restriction, if the Restricted Stock has not been forfeited, Holder will have the right to vote the Restricted Stock, to receive and retain cash dividends and cash distributions paid or distributed on the Restricted Stock by the Company in the ordinary course of its business as a real estate investment trust and to exercise all other rights, powers and privileges of a holder of the Company’s Shares (as defined in the Plan) with respect to the Restricted Stock; except that (a) the Holder will not be entitled to delivery of the stock certificate representing the Restricted Stock until the Vesting Date, (b) the Company (either directly, or indirectly through the Transfer Agent), will retain custody of the Restricted Stock until the Vesting Date, (c) other than regular and special cash distributions paid by the Company in the ordinary course of its business as a real estate investment trust, the Company will retain custody of all distributions made or declared with respect to the Restricted Stock (the “Retained Distributions”) until the Vesting Date, and such Retained Distributions shall not vest or bear interest or be segregated in a separate account, (d) the Holder may not sell, assign, transfer, pledge, encumber or dispose of the Restricted Stock or any Retained Distributions or his or her interest in any of them until the Vesting Date, and (e) a breach of any restrictions, terms or conditions provided herein or in the Plan will cause a forfeiture of the Restricted Stock and any Retained Distributions with respect thereto.

6.             Forfeiture.  In the event that during the Period of Restriction the Holder ceases to be an Eligible Participant for any reason other than Holder’s death, Disability, Retirement or a Change in Control, then the Holder’s rights to the Restricted Stock and to any Retained Distributions shall be forfeited immediately, the Company shall transfer the certificate representing (or if the Restricted Stock is issued in uncertificated form, shall instruct the Transfer Agent to transfer) the Restricted Stock to the Company and the Holder shall not have any rights whatsoever (including the right to receive any dividends and voting rights) with respect to the Restricted Stock and the Retained Distributions.

7.             Changes in Status as Eligible Participant.  Nothing contained in this Agreement  shall interfere in any way with the right of the Company, its Subsidiaries or affiliates to terminate the Holder’s status as an Eligible Participant.

8.             Pledge, Sale Assignment, Etc.  Holder shall not permit the Restricted Stock to be subject to anticipation, alienation, sale, assignment, hypothecation, pledge, exchange, transfer, encumbrance or charge and any attempt to anticipate, alienate, sell, assign, hypothecate, pledge, exchange, transfer, encumber or charge shall be deemed void by the Company, and the

Committee may, at its sole discretion cause the Restricted Stock to be forfeited upon such event.  No right or benefit hereunder shall in any manner be liable for or subject to the debts, contracts, liabilities or torts of the Holder.

9.             Stock Registration.  The Holder acknowledges that the Restricted Stock has been registered under the Securities Act of 1933, as amended, pursuant to a Registration Statement on Form S-8, and that at such time as the Period of Restriction has been satisfied or accelerated, the Restricted Stock may not be sold, assigned, transferred, pledged, exchanged, encumbered or disposed of, except pursuant to the Securities Act of 1933 and the rules and regulations thereunder and the rules and regulations of any securities exchange or association on which the Shares may be listed or quoted.

10.          Board’s Authority.  The execution and delivery by the Company of this Agreement shall not be construed as creating any limitations on the power of its Board of Directors to adopt such other incentive arrangements as it may deem desirable, including without limitation the granting of stock options and the awarding of stock and cash otherwise then under the Plan and such arrangements may be either generally applicable or applicable only in specific cases.

11.          Incentive Compensation.  By acceptance of the Restricted Stock and the execution of this Agreement, the Holder agrees that the Restricted Stock is special incentive compensation that will not be taken into account, in any manner, as salary, compensation or bonus in determining the amount of any payment under any pension, retirement or other employee benefit plan, program or policy of the Company, Subsidiary or any affiliate.  In addition, each beneficiary of a deceased Holder shall be deemed to have agreed that the Restricted Stock will not effect the amount of any life insurance, if any, provided by the Company, any Subsidiary or affiliate on the life of the Holder which is payable to such beneficiary under any life insurance plan covering Eligible Participants.

12.          No Segregation.  Neither the Company nor any Subsidiary shall be required to segregate any cash or Shares which may at any time be represented by awards under the Plan and the Plan shall constitute an “unfunded” plan of the Company.  Neither the Company nor any Subsidiary shall by any provisions of the Plan be deemed a trustee of any Shares or any other property, and the liabilities of the Company and any Subsidiary to the Holder pursuant to the Plan shall be those of a debtor pursuant to such contract obligations as are created by or pursuant to the Plan and this Agreement and the rights of the Holder or his/her beneficiary under the Plan shall be limited to those of a general creditor of the Company or the applicable Subsidiary, as the case may be.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

ONE LIBERTY PROPERTIES, INC.

By:
	David W. Kalish
	Senior Vice President and Chief
	Financial Officer

Name of Holder Number of Shares of Restricted Stock Awarded
to Holder

Signature of Holder

Holder’s Address

Holder’s Social Security Number

EX-21.1

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Exhibit 21.1

SUBSIDIARIES OF THE COMPANY

Company	State of Organization
OLP Greenwood Village, Colorado, Inc.	Colorado
OLP 4809 Louisville LLC	Delaware
OLP 6609 Grand LLC	Delaware
OLP Air Trans Road TN LLC	Delaware
OLP Ankeny IA LLC	Delaware
OLP Ann Arbor LLC	Delaware
OLP Athens LLC	Delaware
OLP BD Delray JV LLC	Delaware
OLP Battleground Avenue Greensboro LLC	Delaware
OLP Beachwood OH LLC	Delaware
OLP Boling Brook LLC	Delaware
OLP CEC Indianapolis LLC	Delaware
OLP Cape Girardeau LLC	Delaware
OLP Cary LLC	Delaware
OLP Cherry Hill LLC	Delaware
OLP Chicago LLC	Delaware
OLP Clemmons LLC	Delaware
OLP Concord LLC	Delaware
OLP Cottman PA LLC	Delaware
OLP Delport St Louis LLC	Delaware
OLP Deptford LLC	Delaware
OLP El Paso I, LLC	Delaware
OLP Eugene LLC	Delaware
OLP Farmington Avenue CT LLC	Delaware
OLP Fort Bend Manager LLC	Delaware
OLP Fort Mill LLC	Delaware
OLP Greensboro LLC	Delaware
OLP Greensboro Wendover LLC	Delaware
OLP Greenville Brozzini 1 LLC	Delaware
OLP Greenville Brozzini 3 LLC	Delaware
OLP Havertportfolio GP LLC	Delaware
OLP Havertportfolio LP	Delaware
OLP Haverty's LLC	Delaware
OLP Highlands Ranch LLC	Delaware
OLP Houston Pet Store LLC	Delaware
OLP Hudson Road MN LLC	Delaware
OLP Huntersville NC LLC	Delaware
OLP Hyannis LLC	Delaware
OLP Indianapolis LLC	Delaware
OLP Jennings Louisville LLC	Delaware
OLP Kennesaw LLC	Delaware
OLP LA-MS LLC	Delaware
OLP Lakemoor IL LLC	Delaware
OLP Lakewood Manager LLC	Delaware
OLP Lawrence LLC	Delaware
OLP Lebanon TN LLC	Delaware
OLP Maine LLC	Delaware
OLP Manahawkin LLC	Delaware
OLP-MCB Cape Girardeau LLC	Delaware

Company	State of Organization
OLP-MCB Cherry Hill JV LLC	Delaware
OLP-MCB Clemmons LLC	Delaware
OLP-MCB Deptford, LLC	Delaware
OLP-MCB Philly-Cottman JV LLC	Delaware
OLP-MCB WAG JV, LLC	Delaware
OLP McCalla LLC	Delaware
OLP Miller Fort Bend LLC	Delaware
OLP Miller Lakewood JV LLC	Delaware
OLP Myrtle Beach LLC	Delaware
OLP NNN Manager LLC	Delaware
OLP Naples LLC	Delaware
OLP New Hope LLC	Delaware
OLP Newark, LLC	Delaware
OLP NTE Fort Mill LLC	Delaware
OLP-OD LLC	Delaware
OLP Pittston PA LLC	Delaware
OLP Randolph MA LLC	Delaware
OLP Richmond-Broad LLC	Delaware
OLP River Crossing Atlanta LLC	Delaware
OLP Savannah LLC	Delaware
OLP Savannah JV Member II LLC	Delaware
OLP Simpsonville SC LLC	Delaware
OLP South Milwaukee Manager LLC	Delaware
OLP St Louis Park MN LLC	Delaware
OLP Sunland Park Drive LLC	Delaware
OLP Theater Indianapolis LLC	Delaware
OLP TLC Killeen LLC	Delaware
OLP West Hartford LLC	Delaware
OLP Wheaton IL LLC	Delaware
OLP Wyoming Springs LLC	Delaware
OLP Ft. Myers, Inc.	Florida
OLP Palm Beach, Inc.	Florida
OLP Pinellas Park LLC	Florida
OLP Apple Kennesaw LLC	Georgia
OLP Carrollton LLC	Georgia
OLP Cartersville LLC	Georgia
OLP Lawrenceville LLC	Georgia
OLP-TSA Georgia, Inc.	Georgia
OLP Tucker, LLC	Georgia
Gurnee Real Estate Owners LLC	Illinois
OLP CC Fairview Heights LLC	Illinois
OLP Champaign, Inc.	Illinois
OLP Crystal Lake LLC	Illinois
OLP Niles LLC	Illinois
OLP CC Florence LLC	Kentucky
OLP Lake Charles, LLC	Louisiana
OLP Baltimore LLC	Maryland
OLP Baltimore MD, Inc.	Maryland
OLP Fashion Court LLC	Maryland
OLP-MCB Fashion Court Joppa JV LLC	Maryland

Company	State of Organization
OLP Everett LLC	Massachusetts
OLP Marston Mass LLC	Massachusetts
OLP Somerville, LLC	Massachusetts
OLP CC Ferguson LLC	Missouri
OLP CC St. Louis LLC	Missouri
OLP Kansas City LLC	Missouri
OLP Secaucus LLC	New Jersey
OLP Batavia, Inc.	New York
OLP Centerreach LLC	New York
OLP Hauppauge, LLC	New York
OLP Island Park LLC	New York
OLP Marcus Drive, LLC	New York
OLP New Hyde Park, Inc.	New York
OLP Rabro Drive Corp.	New York
OLP Ronkonkoma, LLC	New York
OLP Selden, Inc.	New York
OLP Veterans Highway LLC	New York
OLP Durham LLC	North Carolina
OLP Columbus, Inc.	Ohio
OLP Cuyahoga Falls LLC	Ohio
OLP Hilliard LLC	Ohio
OLP LAF Hamilton LLC	Ohio
OLP Miamisburg LLC	Ohio
OLP Port Clinton LLC	Ohio
OLP South Euclid LLC	Ohio
OLP Lakeview LP	Pennsylvania
OLP Monroeville LP	Pennsylvania
OLP PA Monroeville LLC	Pennsylvania
OLP Pawendy I LLC	Pennsylvania
OLP Pawendy LP	Pennsylvania
OLP-MCB Philadelphia I LLC	Pennsylvania
OLP-MCB Philly-Cottman LP	Pennsylvania
OLP Royersford LLC	Pennsylvania
OLP Tomlinson LLC	Pennsylvania
OLP CC Antioch LLC	Tennessee
OLP Knoxville LLC	Tennessee
OLP El Paso, Inc.	Texas
OLP El Paso I, LP	Texas
OLP Haskins El Paso TX LLC	Texas
OLP Houston Guitars LLC	Texas
OLP Houston Pets LLC	Texas
OLP South Highway Houston, Inc.	Texas
OLP Texas, Inc.	Texas
OLP Onalaska LLC	Wisconsin

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Exhibit 21.1

SUBSIDIARIES OF THE COMPANY

EX-23.1

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Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

        We consent to the incorporation by reference in the following Registration Statements:

(1)

Form S-3 (No. 333-216611) of One Liberty Properties, Inc. and in the related Prospectus,



(2)

Form S-3 (No. 333-207915) of One Liberty Properties, Inc. and in the related Prospectus, and



(3)

Form S-8 (No. 333-212935) pertaining to the One Liberty Properties, Inc. 2016 Incentive Plan;

of our reports dated March 14, 2018, with respect to the consolidated financial statements and schedule of One Liberty Properties, Inc. and Subsidiaries and the effectiveness of internal control over financial reporting of One Liberty Properties, Inc. and Subsidiaries included in this Annual Report (Form 10-K) of One Liberty Properties, Inc. and Subsidiaries for the year ended December 31, 2017.

/s/ Ernst & Young LLP

New York, New York
March 14, 2018

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Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

EX-31.1

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Exhibit 31.1

CERTIFICATION

I, Patrick J. Callan, Jr., certify that:

1.

I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2017 of One Liberty Properties, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

        (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

        (b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

        (c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

        (d)   Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

        (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

        (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 14, 2018 /s/ PATRICK J. CALLAN, JR.
Patrick J. Callan, Jr.
President and Chief Executive Officer

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Exhibit 31.1

CERTIFICATION

EX-31.2

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Exhibit 31.2

CERTIFICATION

I, David W. Kalish, certify that:

1.

I have reviewed this Annual Report on Form 10-K for the fiscal year ended December 31, 2017 of One Liberty Properties, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

        (a)   Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

        (b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

        (c)   Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

        (d)   Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.

The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal controls over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

        (a)   All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

        (b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: March 14, 2018 /s/ DAVID W. KALISH
David W. Kalish
Senior Vice President and Chief Financial Officer

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Exhibit 31.2

CERTIFICATION

EX-32.1

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EXHIBIT 32.1

CERTIFICATION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350
(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

        The undersigned, Patrick J. Callan, Jr., does hereby certify to his knowledge, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that based upon a review of the Annual Report on Form 10-K for the year ended December 31, 2017 of One Liberty Properties, Inc. ("the Registrant"), as filed with the Securities and Exchange Commission on the date hereof (the "Report"):

        (1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

        (2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: March 14, 2018 /s/ PATRICK J. CALLAN, JR.
Patrick J. Callan, Jr.
President and Chief Executive Officer

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EXHIBIT 32.1

CERTIFICATION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 (SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

EX-32.2

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EXHIBIT 32.2

CERTIFICATION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350
(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

        The undersigned, David W. Kalish, does hereby certify to his knowledge, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that based upon a review of the Annual Report on Form 10-K for the year ended December 31, 2017 of One Liberty Properties, Inc. ("the Registrant"), as filed with the Securities and Exchange Commission on the date hereof (the "Report"):

        (1)   The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

        (2)   The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: March 14, 2018 /s/ DAVID W. KALISH
David W. Kalish
Senior Vice President and Chief Financial Officer

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EXHIBIT 32.2

CERTIFICATION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350 (SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

XML

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Mar. 01, 2018	Jun. 30, 2017
Document and Entity Information
Entity Registrant Name	ONE LIBERTY PROPERTIES INC
Entity Central Index Key	0000712770
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 338
Entity Common Stock, Shares Outstanding		19,068,336
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Real estate investments, at cost
Land		$ 209,320	$ 211,432
Buildings and improvements		566,007	536,633
Total real estate investments, at cost		775,327	748,065
Less accumulated depreciation		108,953	96,852
Real estate investments, net		666,374	651,213
Investment in unconsolidated joint ventures		10,723	10,833
Cash and cash equivalents		13,766	17,420
Restricted cash		443	643
Unbilled rent receivable		14,125	13,797
Unamortized intangible lease assets, net		30,525	32,645
Escrow, deposits and other assets and receivables		6,630	6,894
Total assets	[1]	742,586	733,445
Liabilities:
Mortgages payable, net of $3,789 and $4,294 of deferred financing costs, respectively		393,157	394,898
Line of credit, net of $624 and $936 of deferred financing costs, respectively		8,776	9,064
Dividends payable		8,493	7,806
Accrued expenses and other liabilities		16,107	10,470
Unamortized intangible lease liabilities, net		17,551	19,280
Total liabilities	[1]	444,084	441,518
Commitments and contingencies
One Liberty Properties, Inc. stockholders' equity:
Preferred stock, $1 par value; 12,500 shares authorized; none issued
Common stock, $1 par value; 25,000 shares authorized; 18,261 and 17,600 shares issued and outstanding		18,261	17,600
Paid-in capital		275,087	262,511
Accumulated other comprehensive income (loss)		155	(1,479)
Accumulated undistributed net income		3,257	11,501
Total One Liberty Properties, Inc. stockholders' equity		296,760	290,133
Non-controlling interests in consolidated joint ventures	[1]	1,742	1,794
Total equity		298,502	291,927
Total liabilities and equity		$ 742,586	$ 733,445

[1] The Company’s consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”). See Note 7. The consolidated balance sheets include the following amounts related to the Company’s consolidated VIEs: $17,844 and $17,844 of land, $31,789 and $32,535 of building and improvements, net of $3,811 and $2,732 of accumulated depreciation, $4,345 and $5,521 of other assets included in other line items, $32,252 and $33,121 of real estate debt, net, $2,885 and $3,093 of other liabilities included in other line items, and $1,742 and $1,794 of non-controlling interests as of December 31, 2017 and 2016, respectively.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands		Dec. 31, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)		$ 1	$ 1
Preferred stock, shares authorized		12,500	12,500
Preferred stock, shares issued		0	0
Common stock, par value (in dollars per share)		$ 1	$ 1
Common stock, shares authorized		25,000	25,000
Common stock, shares issued		18,261	17,600
Common stock, shares outstanding		18,261	17,600
Land		$ 209,320,000	$ 211,432,000
Buildings and improvements		566,007,000	536,633,000
Accumulated depreciation		108,953,000	96,852,000
Non-controlling interest in joint venture	[1]	1,742,000	1,794,000
Consolidated VIE entities
Deferred financing costs		442,000	539,000
Land		17,844,000	17,844,000
Buildings and improvements		31,789,000	32,535,000
Accumulated depreciation		3,811,000	2,732,000
Other assets		4,345,000	5,521,000
Real estate debt, net		32,252,000	33,121,000
Other liabilities		2,885,000	3,093,000
Non-controlling interest in joint venture		1,742,000	1,794,000
Mortgages payable
Deferred financing costs		3,789,000	4,294,000
Accumulated depreciation		83,015,000
Facility
Deferred financing costs		$ 624,000	$ 936,000

[1] The Company’s consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”). See Note 7. The consolidated balance sheets include the following amounts related to the Company’s consolidated VIEs: $17,844 and $17,844 of land, $31,789 and $32,535 of building and improvements, net of $3,811 and $2,732 of accumulated depreciation, $4,345 and $5,521 of other assets included in other line items, $32,252 and $33,121 of real estate debt, net, $2,885 and $3,093 of other liabilities included in other line items, and $1,742 and $1,794 of non-controlling interests as of December 31, 2017 and 2016, respectively.

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Consolidated Statements of Income - USD ($) shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Rental income, net	$ 68,244,000	$ 64,164,000	$ 58,973,000
Tenant reimbursements	7,672,000	6,424,000	3,852,000
Lease termination fees			2,886,000
Total revenues	75,916,000	70,588,000	65,711,000
Operating expenses:
Depreciation and amortization	20,993,000	18,164,000	16,384,000
General and administrative (see Note 12 for related party information)	11,279,000	10,693,000	9,527,000
Real estate expenses (see Note 12 for related party information)	10,736,000	8,931,000	6,047,000
Real estate acquisition costs (see Note 12 for related party information)		596,000	449,000
Federal excise and state taxes	481,000	203,000	343,000
Leasehold rent	308,000	308,000	308,000
Impairment loss	153,000
Total operating expenses	43,950,000	38,895,000	33,058,000
Operating income	31,966,000	31,693,000	32,653,000
Other income and expenses:
Equity in earnings of unconsolidated joint ventures (see Note 12 for related party information)	826,000	1,005,000	412,000
Purchase price fair value adjustment			960,000
Prepayment costs on debt		(577,000)	(568,000)
Other income	407,000	435,000	108,000
Interest:
Expense	(17,810,000)	(17,258,000)	(16,027,000)
Amortization and write-off of deferred financing costs	(977,000)	(904,000)	(1,023,000)
Income before gain on sale of real estate, net	14,412,000	14,394,000	16,515,000
Gain on sale of real estate, net	9,837,000	10,087,000	5,392,000
Net income	24,249,000	24,481,000	21,907,000
Net income attributable to non-controlling interests	(102,000)	(59,000)	(1,390,000)
Net income attributable to One Liberty Properties, Inc.	$ 24,147,000	$ 24,422,000	$ 20,517,000
Weighted average number of common shares outstanding:
Basic (in shares)	17,944	16,768	15,971
Diluted (in shares)	18,047	16,882	16,079
Basic (in dollars per share)	$ 1.29	$ 1.40	$ 1.23
Diluted (in dollars per share)	$ 1.28	$ 1.39	$ 1.22

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Comprehensive Income
Net income	$ 24,249	$ 24,481	$ 21,907
Other comprehensive gain (loss)
Net unrealized gain on available-for-sale securities			3
Reclassification of gain on available-for-sale securities included in net income		(27)
Net unrealized gain (loss) on derivative instruments	1,565	2,879	(1,168)
One Liberty Properties Inc.'s share of joint ventures' net unrealized gain (loss) on derivative instruments	76	64	(1)
Other comprehensive gain (loss)	1,641	2,916	(1,166)
Comprehensive income	25,890	27,397	20,741
Net income attributable to non-controlling interests	(102)	(59)	(1,390)
Adjustment for derivative instruments attributable to non-controlling interests	(7)	(5)	29
Comprehensive income attributable to One Liberty Properties, Inc.	$ 25,781	$ 27,333	$ 19,380

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Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Common Stock	Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Undistributed Net Income	Non-Controlling Interests in Consolidated Joint Ventures	Total
Balances at Dec. 31, 2014	$ 15,728	$ 219,867	$ (3,195)	$ 21,876	$ 1,628	$ 255,904
Distributions - common stock
Cash - $ 1.74 per share,$1.66 per share and $1.58 per share for the year ended December 31, 2017, 2016 and 2014, respectively				(26,178)		(26,178)
Shares issued through equity offering program - net	295	6,162				6,457
Restricted stock vesting	72	(72)
Shares issued through dividend reinvestment plan	197	4,087				4,284
Contributions from non-controlling interests					713	713
Distributions to non-controlling interests					(1,829)	(1,829)
Compensation expense - restricted stock		2,334				2,334
Net income				20,517	1,390	21,907
Other comprehensive (loss) income			(1,195)		29	(1,166)
Balances at Dec. 31, 2015	16,292	232,378	(4,390)	16,215	1,931	262,426
Distributions - common stock
Cash - $ 1.74 per share,$1.66 per share and $1.58 per share for the year ended December 31, 2017, 2016 and 2014, respectively				(29,136)		(29,136)
Shares issued through equity offering program - net	1,080	24,707				25,787
Restricted stock vesting	86	(86)
Shares issued through dividend reinvestment plan	142	2,965				3,107
Contributions from non-controlling interests					80	80
Distributions to non-controlling interests					(271)	(271)
Purchase of non-controlling interest		(436)			(10)	(446)
Compensation expense - restricted stock		2,983				2,983
Net income				24,422	59	24,481
Other comprehensive (loss) income			2,911		5	2,916
Balances at Dec. 31, 2016	17,600	262,511	(1,479)	11,501	1,794	291,927
Distributions - common stock
Cash - $ 1.74 per share,$1.66 per share and $1.58 per share for the year ended December 31, 2017, 2016 and 2014, respectively				(32,391)		(32,391)
Shares issued through equity offering program - net	231	5,339				5,570
Restricted stock vesting	232	(232)
Shares issued through dividend reinvestment plan	198	4,336				4,534
Contributions from non-controlling interests					20	20
Distributions to non-controlling interests					(181)	(181)
Compensation expense - restricted stock		3,133				3,133
Net income				24,147	102	24,249
Other comprehensive (loss) income			1,634		7	1,641
Balances at Dec. 31, 2017	$ 18,261	$ 275,087	$ 155	$ 3,257	$ 1,742	$ 298,502

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Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statements of Changes in Equity
Distributions - common stock, Cash per share (in dollars per share)	$ 1.74	$ 1.66	$ 1.58

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 24,249,000	$ 24,481,000	$ 21,907,000
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on sale of real estate, net	(9,837,000)	(10,087,000)	(5,392,000)
Purchase price fair value adjustment			(960,000)
Gain on sale of available-for-sale securities		(27,000)
Impairment loss	153,000
Prepayment costs on debt		577,000	568,000
Increase in unbilled rent receivable	(794,000)	(2,286,000)	(1,448,000)
Write-off of unbilled rent receivable	362,000	7,000	566,000
Bad debt expense	291,000	98,000
Amortization and write-off of intangibles relating to leases, net	(897,000)	(712,000)	(723,000)
Amortization of restricted stock expense	3,133,000	2,983,000	2,334,000
Equity in earnings of unconsolidated joint ventures	(826,000)	(1,005,000)	(412,000)
Distributions of earnings from unconsolidated joint ventures	656,000	939,000	540,000
Depreciation and amortization	20,993,000	18,164,000	16,384,000
Amortization and write-off of deferred financing costs	977,000	904,000	1,023,000
Payment of leasing commissions	(168,000)	(1,050,000)	(716,000)
Decrease (Increase) in escrow, deposits, other assets and receivables	179,000	(731,000)	197,000
Increase (Decrease) in accrued expenses and other liabilities	6,086,000	(850,000)	616,000
Net cash provided by operating activities	44,557,000	31,405,000	34,484,000
Cash flows from investing activities:
Purchase of real estate	(43,537,000)	(118,589,000)	(67,445,000)
Improvements to real estate	(6,565,000)	(4,868,000)	(3,868,000)
Net proceeds from sale of real estate	26,301,000	42,312,000	16,025,000
Purchase of partner's interest in consolidated joint venture		(446,000)
Purchase of partner's interest in unconsolidated joint venture			(6,300,000)
Investment in unconsolidated joint ventures			(12,686,000)
Distributions of capital from unconsolidated joint ventures	357,000	647,000	776,000
Net proceeds from sale of available-for-sale securities		33,000
Net cash used in investing activities	(23,444,000)	(80,911,000)	(73,498,000)
Cash flows from financing activities:
Scheduled amortization payments of mortgages payable	(10,520,000)	(9,138,000)	(7,793,000)
Repayment of mortgages payable	(12,936,000)	(63,726,000)	(27,967,000)
Proceeds from mortgage financings	21,210,000	137,628,000	79,605,000
Proceeds from sale of common stock, net	5,570,000	25,787,000	6,457,000
Proceeds from bank line of credit	47,000,000	86,000,000	45,400,000
Repayment on bank line of credit	(47,600,000)	(94,250,000)	(40,400,000)
Issuance of shares through dividend reinvestment plan	4,534,000	3,107,000	4,284,000
Payment of financing costs	(160,000)	(2,220,000)	(897,000)
Prepayment costs on debt		(577,000)	(568,000)
Capital contributions from non-controlling interests	20,000	80,000	713,000
Distributions to non-controlling interests	(181,000)	(271,000)	(1,829,000)
Cash distributions to common stockholders	(31,704,000)	(28,230,000)	(25,599,000)
Net cash (used in) provided by financing activities	(24,767,000)	54,190,000	31,406,000
Net (decrease) increase in cash and cash equivalents	(3,654,000)	4,684,000	(7,608,000)
Cash and cash equivalents at beginning of year	17,420,000	12,736,000	20,344,000
Cash and cash equivalents at end of year	13,766,000	17,420,000	12,736,000
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense	17,777,000	17,310,000	15,986,000
Cash paid during the year for Federal excise tax, net		190,000	300,000
Supplemental schedule of non-cash investing and financing activities:
Mortgage debt extinguished upon conveyance of the Company's Morrow, Georgia property to mortgagee by deed-in-lieu of foreclosure			1,466,000
Consolidation of real estate investment			2,633,000
Purchase accounting allocation - intangible lease assets	4,009,000	8,194,000	5,776,000
Purchase accounting allocation - intangible lease liabilities	$ (158,000)	$ (6,288,000)	$ (5,365,000)

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ORGANIZATION AND BACKGROUND

12 Months Ended

Dec. 31, 2017

ORGANIZATION AND BACKGROUND

ORGANIZATION AND BACKGROUND

NOTE 1—ORGANIZATION AND BACKGROUND

        One Liberty Properties, Inc. ("OLP") was incorporated in 1982 in Maryland. OLP is a self-administered and self-managed real estate investment trust ("REIT"). OLP acquires, owns and manages a geographically diversified portfolio of industrial, retail (including furniture stores and supermarkets), restaurant, health and fitness, and theater properties, many of which are subject to long-term net leases. As of December 31, 2017, OLP owns 119 properties, including six properties owned by consolidated joint ventures and five properties owned by unconsolidated joint ventures. The 119 properties are located in 30 states.

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2017

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 2—SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

        The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities ("VIEs") of which the Company is the primary beneficiary. OLP and its consolidated subsidiaries are hereinafter referred to as the "Company". Material intercompany items and transactions have been eliminated in consolidation.

Investment in Joint Ventures and Variable Interest Entities

        The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE's economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE.

        The Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement, to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights, such as the requirement of partner approval to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where, among other things, the Company and its partners jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture's tax return before filing, and (iv) approve each lease at a property, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. Leases may contain certain protective rights, such as the right of sale and the receipt of certain escrow deposits.

        The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are VIEs. In addition, the Company shares power with its co-managing members over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. None of the joint venture debt is recourse to the Company, subject to standard carve-outs.

        The Company periodically reviews its investments in unconsolidated joint ventures for other-than-temporary losses in investment value. Any decline that is not expected to be recovered based on the underlying assets of the investment is considered other than temporary and an impairment charge is recorded as a reduction in the carrying value of the investment. During the three years ended December 31, 2017, there were no impairment charges related to the Company's investments in unconsolidated joint ventures.

        The Company has elected to follow the cumulative earnings approach when assessing, for the consolidated statement of cash flows, whether the distribution from the investee is a return of the investor's investment as compared to a return on its investment. The source of the cash generated by the investee to fund the distribution is not a factor in the analysis (that is, it does not matter whether the cash was generated through investee refinancing, sale of assets or operating results). Consequently, the investor only considers the relationship between the cash received from the investee to its equity in the undistributed earnings of the investee, on a cumulative basis, in assessing whether the distribution from the investee is a return on or return of its investment. Cash received from the unconsolidated entity is presumed to be a return on the investment to the extent that, on a cumulative basis, distributions received by the investor are less than its share of the equity in the undistributed earnings of the entity.

Use of Estimates

        The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

        Management believes that the estimates and assumptions that are most important to the portrayal of the Company's consolidated financial condition and results of operations, in that they require management's most difficult, subjective or complex judgments, form the basis of the accounting policies deemed to be most significant to the Company. These significant accounting policies relate to revenues and the value of the Company's real estate portfolio, including investments in unconsolidated joint ventures. Management believes its estimates and assumptions related to these significant accounting policies are appropriate under the circumstances; however, should future events or occurrences result in unanticipated consequences, there could be a material impact on the Company's future consolidated financial condition or results of operations.

Revenue Recognition

        Rental income includes the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the non-cancelable term of the lease. In determining, in its judgment, that the unbilled rent receivable applicable to each specific property is collectible, management reviews unbilled rent receivables on a quarterly basis and takes into consideration the tenant's payment history and financial condition. Some of the leases provide for increases based on the Consumer Price Index and for additional contingent rental revenue in the form of percentage rents. The percentage rents are based upon the level of sales achieved by the lessee and are recognized once the required sales levels are reached. Certain ground leases provide for rent which can be deferred and paid based on the operating performance of the property; therefore, this rent is recognized as rental income when the operating performance is achieved and the rent is received.

        Many of the Company's properties are subject to long-term net leases under which the tenant is typically responsible to pay directly to the vendor the real estate taxes, insurance, utilities and ordinary maintenance and repairs related to the property, and the Company is not the primary obligor with respect to such items. As a result, the revenue and expenses relating to these properties are recorded on a net basis. For certain properties, in addition to contractual base rent, the tenants pay their pro rata share of real estate taxes and operating expenses to the Company. The income and expenses associated with these properties are generally recorded on a gross basis when the Company is the primary obligor. During 2017, 2016 and 2015, the Company recorded reimbursements of expenses of $7,672,000, $6,424,000 and $3,852,000, respectively, which are reported as Tenant reimbursements in the accompanying consolidated statements of income.

        Gains and losses on the sale of real estate investments are recorded when the criteria under GAAP have been met.

Fair Value Measurements

        The Company measures the fair value of financial instruments based on the assumptions that market participants would use in pricing the asset or liability. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other "observable" market inputs and Level 3 assets/liabilities are valued based on significant "unobservable" market inputs.

Purchase Accounting for Acquisition of Real Estate

        In January 2017, the Company adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which requires an entity to evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, and if that requirement is met, the asset group is accounted for as an asset acquisition and not a business combination. Transaction costs incurred with such asset acquisitions are capitalized to real estate assets and depreciated over the respectful useful lives. The Company analyzed the real estate acquisitions made during 2017 and determined the gross assets acquired are concentrated in a single identifiable asset. Prior to January 1, 2017, the Company recorded acquired real estate investments as business combinations when the real estate was occupied, at least in part, at acquisition. Costs directly related to the acquisition of such investments were expensed as incurred.

        The Company allocates the purchase price of real estate among land, building, improvements and intangibles, such as the value of above, below and at-market leases, and origination costs associated with in-place leases at the acquisition date. The Company assesses the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. The value, as determined, is allocated to land, building and improvements based on management's determination of the relative fair values of these assets.

        The Company assesses the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 in the fair value hierarchy. In valuing an acquired property's intangibles, factors considered by management include an estimate of carrying costs during the expected lease-up periods, such as real estate taxes, insurance, other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on its evaluation of current market demand. Management also estimates costs to execute similar leases, including leasing commissions and tenant improvements.

        The values of acquired above-market and below-market leases are recorded based on the present values (using discount rates which reflect the risks associated with the leases acquired) of the difference between the contractual amounts to be received and management's estimate of market lease rates, measured over the terms of the respective leases that management deemed appropriate at the time of the acquisitions. Such valuations include a consideration of the non-cancellable terms of the respective leases, as well as any applicable renewal period(s). The fair values associated with below-market rental renewal options are determined based on the Company's experience and the relevant facts and circumstances at the time of the acquisitions. The values of above-market leases are amortized as a reduction to rental income over the terms of the respective non-cancellable lease periods. The portion of the values of below-market leases are amortized as an increase to rental income over the terms of the respective non-cancellable lease periods. The portion of the values of the leases associated with below-market renewal options that management deemed are likely to be exercised by the tenant are amortized to rental income over such renewal periods. The value of other intangible assets (i.e., origination costs) is recorded to amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its contractual expiration date or not renewed, all unamortized amounts relating to that lease would be recognized in operations at that time. The estimated useful lives of intangible assets or liabilities generally range from one to 38 years.

Accounting for Long-Lived Assets and Impairment of Real Estate Owned

        The Company reviews its real estate portfolio on a quarterly basis to ascertain if there are any indicators of impairment to the value of any of its real estate assets, including deferred costs and intangibles, to determine if there is any need for an impairment charge. In reviewing the portfolio, the Company examines one or more of the following: the type of asset, the current financial statements or other available financial information of the tenant, the economic situation in the area in which the asset is located, the economic situation in the industry in which the tenant is involved, the timeliness of the payments made by the tenant under its lease, and any current communication with the tenant, including property inspection reports. For each real estate asset owned for which indicators of impairment exist, management performs a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset to its carrying amount. If the aggregate undiscounted cash flows are less than the asset's carrying amount, an impairment loss is recorded to the extent that the estimated fair value is less than the asset's carrying amount. The estimated fair value is determined using a discounted cash flow model of the expected future cash flows through the useful life of the property. The analysis includes an estimate of the future cash flows that are expected to result from the real estate investment's use and eventual disposition. These cash flows consider factors such as expected future operating income, trends and prospects, the effects of leasing demand, competition and other factors.

Properties Held-for-Sale

        Real estate investments are classified as properties held-for-sale when management determines that the investment meets the applicable criteria. Real estate assets that are classified as held-for-sale are: (i) valued at the lower of carrying amount or the estimated fair value less costs to sell on an individual asset basis; and (ii) not depreciated.

Cash and Cash Equivalents

        All highly liquid investments with original maturities of three months or less when purchased are considered to be cash equivalents.

Escrows

        Real estate taxes, insurance and other escrows aggregating $460,000 and $387,000 at December 31, 2017 and 2016, respectively, are included in Escrow, deposits and other assets and receivables.

Depreciation and Amortization

        Depreciation of buildings is computed on the straight-line method over an estimated useful life of 40 years. Depreciation of building improvements is computed on the straight-line method over the estimated useful life of the improvements. If the Company determines it is the owner of tenant improvements, the amounts funded to construct the tenant improvements are treated as a capital asset and depreciated over the lesser of the remaining lease term or the estimated useful life of the improvements on the straight-line method. Leasehold interest and the related ground lease payments are amortized over the initial lease term of the leasehold position. Depreciation expense (including amortization of a leasehold position, lease origination costs, and capitalized leasing commissions) was $20,993,000, $18,164,000 and $16,384,000 during 2017, 2016 and 2015, respectively.

Deferred Financing Costs

        Mortgage and credit line costs are deferred and amortized on a straight-line basis over the terms of the respective debt obligations, which approximates the effective interest method. At December 31, 2017 and 2016, accumulated amortization of such costs was $2,804,000 and $2,090,000, respectively. The Company presents unamortized deferred financing costs as a direct deduction from the carrying amount of the associated debt liability.

Income Taxes

        The Company is qualified as a real estate investment trust under the applicable provisions of the Internal Revenue Code. Under these provisions, the Company will not be subject to Federal, and generally, state and local income taxes, on amounts distributed to stockholders, provided it distributes at least 90% of its taxable income and meets certain other conditions.

        The Company follows a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that more-likely-than-not will be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited. The Company has not identified any uncertain tax positions requiring accrual.

Concentration of Credit Risk

        The Company maintains cash accounts at various financial institutions. While the Company attempts to limit any financial exposure, substantially all of its deposit balances exceed federally insured limits. The Company has not experienced any losses on such accounts.

        The Company's properties are located in 30 states. During 2017, 2016 and 2015, 13.2%, 12.9% and 13.0% of total revenues, respectively, were attributable to real estate investments located in Texas which is the only state in which real estate investments contributed more than 10% to the Company's total revenues.

        No tenant contributed over 10% to the Company's total revenues during 2017, 2016 and 2015.

Segment Reporting

        Substantially all of the Company's real estate assets, at acquisition, are comprised of real estate owned that is leased to tenants on a long-term basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment.

Stock Based Compensation

        The fair value of restricted stock grants and restricted stock units, determined as of the date of grant, is amortized into general and administrative expense over the respective vesting period. The deferred compensation to be recognized as expense is net of certain forfeiture and performance assumptions which are re-evaluated quarterly. The Company recognizes the effect of forfeitures when they occur and previously recognized compensation expense shall be reversed in the period the grant or unit is forfeited. For share-based awards with a performance or market measure, we recognize compensation expense over the requisite service period. The requisite service period begins on the date the compensation committee of the Company's Board of Directors authorizes the award, adopts any relevant performance measures and communicates the award.

Derivatives and Hedging Activities

        The Company's objective in using interest rate swaps is to add stability to interest expense. The Company does not use derivatives for trading or speculative purposes.

        The Company records all derivatives on the consolidated balance sheets at fair value using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. In addition, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. These counterparties are generally large financial institutions engaged in providing a variety of financial services. These institutions generally face similar risks regarding adverse changes in market and economic conditions including, but not limited to, fluctuations in interest rates, exchange rates, equity and commodity prices and credit spreads.

        The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in accumulated other comprehensive income (outside of earnings) and subsequently reclassified to earnings in the period in which the hedged transaction becomes ineffective. For derivatives not designated as cash flow hedges, changes in the fair value of the derivative are recognized directly in earnings in the period in which the change occurs; however, the Company's policy is to not enter into such transactions.

Allowance for Doubtful Accounts

        The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of a tenant to make required rent and other payments. If the financial condition of a specific tenant were to deteriorate, adversely impacting its ability to make payments, additional allowances may be required.

Reclassifications

        Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current year's presentation. Such reclassifications primarily relate to change the presentation of Gain on sale of real estate, net on the consolidated statement of operations for the years ended December 31, 2016 and 2015. The Company has included a caption for Income before gain on sale of real estate, net, to present gains and losses on sales of properties in accordance with the Securities and Exchange Commission Rule 3-15(a) of Regulation S-X. The change was made for the years ended December 31, 2016 and 2015 because, as prescribed by ASC 360-10-45-5, such gains from sale of real estate were not included as a component of Operating income. Such change was determined to be immaterial to the consolidated financial statements.

New Accounting Pronouncements

        In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the presentation and disclosure requirements for hedge accounting and changes how companies assess hedge effectiveness. This ASU is intended to more closely align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope and application on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company has evaluated the new guidance and determined there will be no impact on the consolidated financial statements as the Company will be electing the practical expedient which is forward-looking to future sales. In addition, none of the Company's prior sales were partial sales and all were under closed contracts.

        In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amount generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current "incurred loss" model with an "expected loss" approach. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted after December 2018. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating this new standard. The Company anticipates adopting this guidance effective as of January 1, 2019 and will apply the modified retrospective approach.

        In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2014-09, ASU 2015-14 and ASU 2016-08 are herein collectively referred to as the "New Revenue Recognition Standards".

        The New Revenue Recognition Standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The Company anticipates adopting the New Revenue Recognition Standards effective as of January 1, 2018, and applying the cumulative-effect adoption method. The Company has evaluated its revenue streams, and as they are primarily related to leasing activities which are scoped out of the New Revenue Recognition Standards, it has determined that the adoption of such standards will not have a material impact on the consolidated financial statements and there will be no cumulative translation adjustments upon adoption.

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EARNINGS PER COMMON SHARE

12 Months Ended

Dec. 31, 2017

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

NOTE 3—EARNINGS PER COMMON SHARE

        Basic earnings per share was determined by dividing net income allocable to common stockholders for each year by the weighted average number of shares of common stock outstanding during the applicable year. Net income is also allocated to the unvested restricted stock outstanding during each year, as the restricted stock is entitled to receive dividends and is therefore considered a participating security. Unvested restricted stock is not allocated net losses; such amounts are allocated entirely to the common stockholders, other than the holders of unvested restricted stock. As of December 31, 2017, the shares of common stock underlying the restricted stock units awarded under the 2016 Incentive Plan are excluded from the basic earnings per share calculation, as these units are not participating securities. The restricted stock units issued pursuant to the 2009 and 2016 Incentive Plans are referred to as "RSUs".

        Diluted earnings per share reflects the potential dilution that could occur if securities or other rights exercisable for, or convertible into, common stock were exercised or converted or otherwise resulted in the issuance of common stock that shared in the earnings of the Company.

        See Note 13 for information regarding the Company's equity incentive plans.

        The diluted weighted average number of shares of common stock includes common stock underlying the RSUs awarded under the plans identified in the table below:

			Year Ended December 31,
	Number of underlying shares
			2017			2016		2015
2009 Incentive Plan		200,000		—	(a)		114,000		108,000
2016 Incentive Plan		76,250		71,478	(b)		—		—

(a)

RSUs with respect to 113,584 shares vested on June 30, 2017 and such shares were issued in August 2017.

(b)

Includes 33,353 shares that would be issued pursuant to a return on capital performance metric and 38,125 shares that would be issued pursuant to a stockholder return metric, assuming the end of the quarterly period was the June 30, 2020 vesting date. The remaining 4,772 shares awarded pursuant to the capital performance metric (of a total of 38,125 that were awarded on September 26, 2017) are not included.

        There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock in 2017, 2016 and 2015.

        The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts):

	Year Ended December 31,
	2017			2016			2015
Numerator for basic and diluted earnings per share:
Net income	$	24,249		$	24,481		$	21,907
Less net income attributable to non-controlling interests		(102	)		(59	)		(1,390	)
Less earnings allocated to unvested restricted stock(a)		(1,072	)		(999	)		(852	)
Net income available for common stockholders: basic and diluted	$	23,075		$	23,423		$	19,665
Denominator for basic earnings per share:
Weighted average number of common shares		17,944			16,768			15,971
Effect of diluted securities:
RSUs		103			114			108
Denominator for diluted earnings per share:
Weighted average number of shares		18,047			16,882			16,079
Earnings per common share, basic	$	1.29		$	1.40		$	1.23
Earnings per common share, diluted	$	1.28		$	1.39		$	1.22
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests	$	24,147		$	24,422		$	20,517

(a)           Represents an allocation of distributed earnings to unvested restricted stock which, as participating securities, are entitled to receive dividends.

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REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS

12 Months Ended

Dec. 31, 2017

REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS

REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS

NOTE 4—REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS

Real Estate Acquisitions

        The following charts detail the Company's acquisitions of real estate during 2017 and 2016 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs(a)
Forbo industrial facility, Huntersville, North Carolina	May 25, 2017	$	8,700	Cash and $5,190 mortgage(b)	$	72
Saddle Creek Logistics industrial facility, Pittston, Pennsylvania	June 9, 2017		11,750	All cash(c)		199
Corporate Woods industrial facility, Ankeny, Iowa	June 20, 2017		14,700	All cash(d)		29
Dufresne Spencer Group industrial facility, Memphis, Tennessee	October 10, 2017		8,000	All cash		87
Totals for 2017		$	43,150		$	387

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs(e)
Multi-tenant industrial facility, Greenville, South Carolina	March 30, 2016	$	8,100	All cash	$	80
Multi-tenant industrial facility, Greenville, South Carolina	March 30, 2016		8,950	All cash		81
Toro distribution facility, El Paso, Texas	June 3, 2016		23,695	All cash		72
4 Advanced Auto retail stores, Ohio	June 16, 2016		6,523	Cash and $4,300 mortgage(b)		80
Land—The Briarbrook Village Apartments, Wheaton, Illinois	August 2, 2016		10,530	All cash		—	(f)
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota	August 12, 2016		14,150	All cash		74
Land—The Vue Apartments, Beachwood, Ohio	August 16, 2016		13,896	All cash		—	(g)
Famous Footwear distribution facility, Lebanon, Tennessee	September 1, 2016		32,734	Cash and $21,288 mortgage(b)		195
Other costs(h)			—			14
Totals for 2016		$	118,578		$	596

(a)	Transaction costs incurred with these asset acquisitions were capitalized.
(b)	The new mortgage debt was obtained simultaneously with the acquisition of the property.
(c)	In August 2017, the Company obtained new mortgage debt of $7,200.
(d)	In July 2017, the Company obtained new mortgage debt of $8,820.
(e)	Included as an expense in Real estate acquisition costs in the accompanying consolidated statement of income.
(f)	Transaction costs aggregating $6 incurred with this asset acquisition were capitalized.
(g)	Transaction costs aggregating $5 incurred with this asset acquisition were capitalized.
(h)	Costs incurred for properties purchased in the previous year.

        The following charts detail the allocation of the purchase price for the Company's acquisitions of real estate during 2017 and 2016 (amounts in thousands):

							Intangible Lease
					Building Improvements
Description of Property	Land		Building				Asset		Liability			Total
Forbo industrial facility,
Huntersville, North Carolina	$	1,046	$	6,452	$	222	$	1,052	$	—		$	8,772
Saddle Creek Logistics industrial facility,
Pittston, Pennsylvania		999		9,675		247		1,028		—			11,949
Corporate Woods industrial facility,
Ankeny, Iowa		1,351		11,420		187		1,929		(158	)		14,729
Dufresne Spencer Group industrial facility,
Memphis, Tennessee		135		7,750		202		—		—			8,087
Totals for 2017	$	3,531	$	35,297	$	858	$	4,009	$	(158	)	$	43,537
Multi-tenant industrial facility,
Greenville, South Carolina	$	693	$	6,718	$	175	$	514	$	—		$	8,100
Multi-tenant industrial facility,
Greenville, South Carolina		528		7,893		181		441		(93	)		8,950
Toro distribution facility,
El Paso, Texas		3,691		17,525		379		2,100		—			23,695
4 Advanced Auto retail stores,
Ohio		653		5,012		189		912		(243	)		6,523
Land—The Briarbrook Village Apartments,
Wheaton, Illinois		10,536		—		—		—		—			10,536
Burlington Coat and Micro Center retail stores,
St. Louis Park, Minnesota		3,388		12,632		456		651		(2,977	)		14,150
Land—The Vue Apartments,
Beachwood, Ohio		13,901		—		—		—		—			13,901
Famous Footwear distribution facility,
Lebanon, Tennessee		2,094		29,436		603		3,576		(2,975	)		32,734
Totals for 2016	$	35,484	$	79,216	$	1,983	$	8,194	$	(6,288	)	$	118,589

        As of December 31, 2017, the weighted average amortization period for the 2017 acquisitions is 6.8 years and 12.2 years for the intangible lease assets and intangible lease liabilities, respectively. As of December 31, 2016, the weighted average amortization period for the 2016 acquisitions is 9.3 years and 13.0 years for the intangible lease assets and intangible lease liabilities, respectively. The Company assessed the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 (as defined in Note 2) in the fair value hierarchy.

        At December 31, 2017 and 2016, accumulated amortization of intangible lease assets was $17,542,000 and $16,074,000, respectively, and accumulated amortization of intangible lease liabilities was $7,849,000 and $6,386,000, respectively.

        During 2017, 2016 and 2015, the Company recognized net rental income of $897,000, $712,000 and $723,000, respectively, for the amortization of the above/below market leases. During 2017, 2016 and 2015, the Company recognized amortization expense of $4,984,000, $3,612,000 and $3,467,000, respectively, relating to the amortization of the origination costs associated with in-place leases, which is included in Depreciation and amortization expense.

        The unamortized balance of intangible lease assets as a result of acquired above market leases at December 31, 2017 will be deducted from rental income through 2032 as follows (amounts in thousands):

2018	$	748
2019		646
2020		620
2021		614
2022		448
Thereafter		1,217
Total	$	4,293

        The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2017 will be added to rental income through 2055 as follows (amounts in thousands):

2018	$	1,794
2019		1,781
2020		1,629
2021		1,593
2022		1,468
Thereafter		9,286
Total	$	17,551

        The unamortized balance of origination costs associated with in-place leases at December 31, 2017 will be charged to amortization expense through 2055 as follows (amounts in thousands):

2018	$	4,056
2019		3,669
2020		3,435
2021		3,168
2022		2,672
Thereafter		9,232
Total	$	26,232

Minimum Future Rents

        The rental properties owned at December 31, 2017 are leased under operating leases with current expirations ranging from 2018 to 2037, with certain tenant renewal rights.

        The minimum future contractual rents do not include (i) straight-line rent or amortization of intangibles and (ii) rental income which can be deferred under the Company's ground leases on the basis of the respective property's operating performance. Such rents were $3,623,000, $2,379,000 and $1,458,000 during 2017, 2016 and 2015, respectively.

        The minimum future contractual rents to be received over the next five years and thereafter on non-cancellable operating leases in effect at December 31, 2017 are as follows (amounts in thousands):

2018	$	64,412
2019		62,360
2020		60,035
2021		56,965
2022		47,434
Thereafter		176,838
Total	$	468,044

Unbilled Rent Receivable

        At December 31, 2017 and 2016, the Company's unbilled rent receivables aggregating $14,125,000 and $13,797,000, respectively, represent rent reported on a straight-line basis in excess of rental payments required under the respective leases. The unbilled rent receivable is to be billed and received pursuant to the lease terms during the next 24 years.

        During 2017 and 2016, the Company wrote off $105,000 and $2,060,000, respectively, of unbilled straight-line rent receivable related to the properties sold during such years, which reduced the gain on sale reported on the consolidated statements of income.

        During 2017, 2016 and 2015, the Company also wrote off $362,000, $7,000 and $89,000, respectively, of unbilled straight-line rent receivable related to properties at which the tenant filed for Chapter 11 bankruptcy.

        During 2015, the Company wrote off unbilled straight-line rent receivables of $477,000 related to lease terminations effected prior to lease expirations (see below).

Lease Termination Fees

        In 2015, the Company received lease termination fees of $2,886,000 from tenants in lease buy-out transactions. In connection with the receipt of these fees, the Company wrote off an aggregate of $530,000 as offsets to rental income, representing the entire balance of the unbilled rent receivables and the intangible lease assets related to these tenants as of December 31, 2015. The Company re-leased substantially all of such spaces simultaneously with the termination of the leases.

Purchase of Partner's 50% Interest

        In March 2015, the Company purchased for $6,300,000, its partner's 50% interest in an unconsolidated joint venture that owned a property in Lincoln, Nebraska, and as a result, the Company obtained a controlling financial interest. The payment was comprised of (i) $2,636,000 paid directly to the partner and (ii) $3,664,000, substantially all of which was used to pay off the partner's 50% share of the underlying joint venture mortgage. In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statement of income, representing the difference between the book value of its preexisting equity investment on the March 31, 2015 purchase date and the fair value of the net assets acquired.

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SALES OF PROPERTIES AND IMPAIRMENT LOSS

12 Months Ended

Dec. 31, 2017

SALES OF PROPERTIES AND IMPAIRMENT LOSS

SALES OF PROPERTIES AND IMPAIRMENT LOSS

NOTE 5—SALES OF PROPERTIES AND IMPAIRMENT LOSS

Sales of Properties

        The following chart details the Company's sales of real estate during 2017 and 2016 (amounts in thousands):

Description of Property	Date Sold	Gross Sales Price		Gain on Sale of Real Estate, Net
Retail property,
Greenwood Village, Colorado	May 8, 2017	$	9,500	$	6,568
Retail property,
Kansas City, Missouri(a)	July 14, 2017		10,250		2,180
Retail property,
Niles, Illinois	August 31, 2017		5,000		1,089
Restaurant property,
Ann Arbor, Michigan(a)(b)	November 14, 2017		2,300		—
Totals for 2017		$	27,050	$	9,837
Portfolio of eight retail properties,
Louisiana and Mississippi	February 1, 2016	$	13,750	$	787
Retail property,
Killeen, Texas	May 19, 2016		3,100		980
Land,
Sandy Springs, Georgia	June 15, 2016		8,858		2,331
Industrial property,
Tomlinson, Pennsylvania	June 30, 2016		14,800		5,660
Retail property,
Island Park, NY	December 22, 2016		2,702		213
			43,210		9,971
Partial condemnation of land,
Greenwood Village, Colorado(c)	July 5, 2016		153		116
Totals for 2016		$	43,363	$	10,087

(a)	See Note 11 for information on the payoff of the mortgage on this property and the early termination of the interest rate swap derivative.
(b)	See "—Impairment Loss" for additional information.
(c)	Represents amount received from the Colorado Department of Transportation ("CDOT"), as a result of a partial condemnation of land and easements obtained by CDOT.

        In January 2015, a consolidated joint venture of the Company sold a property located in Cherry Hill, New Jersey for $16,025,000, net of closing costs. The sale resulted in a gain of $5,392,000, recorded as Gain on sale of real estate, net, for the year ended December 31, 2015. In connection with the sale, the Company paid off the $7,376,000 mortgage balance on this property and incurred a $472,000 swap termination fee (included in Prepayment costs on debt). The non-controlling interest's share of income from the transaction was $1,320,000 and is included in net income attributable to non-controlling interests.

Sale of Property Subsequent to December 31, 2017

        On January 30, 2018, the Company sold a property located in Fort Bend, Texas and owned by a consolidated joint venture in which the Company held an 85% interest, for approximately $9,000,000, net of closing costs, and paid off the $4,400,000 mortgage. This property accounted for less than 1.2% of the Company's rental income, net, during 2017, 2016 and 2015. The Company anticipates recognizing a gain of approximately $2,400,000 during the three months ending March 31, 2018. The non-controlling interest's share of the gain from the transaction will be approximately $800,000.

Impairment Loss

        In November 2017, the Company sold its property formerly tenanted by Joe's Crab Shack, located in Ann Arbor, Michigan. As the sales price was less than the net book value, the Company determined that the property was impaired and recorded an impairment loss of $153,000, representing the difference, at September 30, 2017, between the net sales price and the net book value. The impairment loss is included in the accompanying consolidated statement of income for the year ended December 31, 2017.

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ALLOWANCE FOR DOUBTFUL ACCOUNTS

12 Months Ended

Dec. 31, 2017

ALLOWANCE FOR DOUBTFUL ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS

NOTE 6—ALLOWANCE FOR DOUBTFUL ACCOUNTS

        At December 31, 2017 and 2016, there was no balance in the allowance for doubtful accounts.

        The Company records bad debt expense as a reduction of rental income and/or tenant reimbursements. The Company recorded bad debt expense of $291,000, $105,000 and $89,000 during 2017, 2016 and 2015, respectively. Such bad debt expense related to rental income and tenant reimbursements due from five tenants at properties that filed for Chapter 11 bankruptcy protection during such years. In relation to these tenants, the Company wrote off (i) $362,000, $7,000 and $89,000 of unbilled straight-line rent receivable as a reduction to rental income, (ii) $67,000, $0 and $124,000 of unamortized intangible lease assets and liabilities as an adjustment to rental income and (iii) $884,000, $0 and $380,000 of tenant origination costs as an increase to depreciation expense during 2017, 2016 and 2015, respectively. In 2017, the Company sold three of these properties, located in Greenwood Village, Colorado, Niles, Illinois and Ann Arbor, Michigan (see Note 5) and re-tenanted one property in Philadelphia, Pennsylvania. The Company has determined that no impairment charge is required with respect to the remaining property, which at December 31, 2017, had a net book value of $2,118,000.

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VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES

12 Months Ended

Dec. 31, 2017

VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES

VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES

NOTE 7—VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES

Variable Interest Entities—Ground Leases

        The Company determined that with respect to the properties identified in the table below, it has a variable interest through its ground leases and the three owner/operators (which are affiliated with one another) are VIEs because their equity investment at risk is insufficient to finance its activities without additional subordinated financial support. The Company further determined that it is not the primary beneficiary of any of these VIEs because the Company has shared power over certain activities that most significantly impact the owner/operator's economic performance (i.e., shared rights on the sale of the property) and therefore, does not consolidate these VIEs for financial statement purposes. Accordingly, the Company accounts for these investments as land and the revenues from the ground leases as Rental income, net. Such rental income amounted to $3,702,000, $2,361,000 and $1,280,000 during 2017, 2016 and 2015, respectively. Included in these amounts is rental income for a similarly structured transaction for a property located in Sandy Springs, Georgia, amounting to $308,000 and $419,000 during 2016 and 2015, respectively, which the Company sold in June 2016 (see Note 5).

        The following chart details the Company's VIEs through its ground leases and the aggregate carrying amount and maximum exposure to loss as of December 31, 2017 (dollars in thousands):

Description of Property(a)	Date Acquired	Land Contract Purchase Price		# Units in Apartment Complex		Owner/ Operator Mortgage from Third Party(b)			Type of Exposure	Carrying Amount and Maximum Exposure to Loss
The Meadows Apartments,
Lakemoor, Illinois	March 24, 2015	$	9,300		496	$	51,380	(c)	Land	$	9,592
The Briarbrook Village Apartments,
Wheaton, Illinois	August 2, 2016		10,530		342		39,411		Land		10,536
The Vue Apartments,
Beachwood, Ohio	August 16, 2016		13,896		348		67,444		Land		13,901
Totals		$	33,726		1,186	$	158,235			$	34,029

(a)	Simultaneously with each purchase, the Company entered into a triple net ground lease with affiliates of Strategic Properties of North America, the owner/operators of these properties.
(b)	Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party which, together with the Company's purchase of the land, provided substantially all of the funds to acquire the complex. The Company provided its land as collateral for the respective owner/operator's mortgage loans; accordingly, each land position is subordinated to the applicable mortgage. No other financial support has been provided by the Company to the owner/operator.
(c)	In November 2017, the owner/operator closed on a $7,556 supplemental mortgage (the original mortgage was for $43,824). In connection therewith, the Company agreed to subordinate its fee interest to this second mortgage in exchange for a payment by the owner/operator to the Company of $5,906 as a fixed rent payment which was recorded as deferred income and will be included in rental income over the term of the lease.

        Pursuant to the terms of the ground lease for the Wheaton, Illinois property, the owner/operator is obligated to make certain unit renovations as and when units become vacant. Cash reserves to cover such renovation work, received by the Company in conjunction with the purchase of the property, are disbursed when the unit renovations are completed. The related cash reserve balance for this property was $443,000 and $643,000 at December 31, 2017 and 2016, respectively, and is classified as Restricted cash on the consolidated balance sheets.

Variable Interest Entities—Consolidated Joint Ventures

        With respect to the six consolidated joint ventures in which the Company holds between an 85% to 95% interest, the Company has determined that such ventures are VIEs because the non-controlling interests do not hold substantive kick-out or participating rights.

        In each of these six joint ventures, the Company has determined it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact each joint venture's performance including management, approval of expenditures, and the obligation to absorb the losses or rights to receive benefits. Accordingly, the Company has consolidated the operations of these joint ventures for financial statement purposes. The joint ventures' creditors do not have recourse to the assets of the Company other than those held by these joint ventures.

        The following is a summary of the consolidated VIEs' carrying amounts and classification in the Company's consolidated balance sheets, none of which are restricted (amounts in thousands):

	December 31,
	2017			2016
Land	$	17,844		$	17,844
Buildings and improvements, net of accumulated depreciation of $3,811 and $2,732, respectively		31,789			32,535
Cash		1,145			1,796
Unbilled rent receivable		1,011			775
Unamortized intangible lease assets, net		1,241			1,595
Escrow, deposits and other assets and receivables		948			1,355
Mortgages payable, net of unamortized deferred financing costs of $442 and $539, respectively		32,252			33,121
Accrued expenses and other liabilities		870			893
Unamortized intangible lease liabilities, net		2,015			2,200
Accumulated other comprehensive loss		(1	)		(70	)
Non-controlling interests in consolidated joint ventures		1,742			1,794

        At December 31, 2017 and 2016, MCB Real Estate, LLC and its affiliates ("MCB") are the Company's joint venture partner in four consolidated joint ventures in which the Company has aggregate equity investments of approximately $9,705,000 and $10,522,000, respectively. The Company's equity investment in its two other consolidated joint ventures is approximately $7,395,000 and $7,440,000 at December 31, 2017 and 2016, respectively.

        In October 2016, the Company purchased MCB's 5% interest in a consolidated joint venture that owns a property in Deptford, New Jersey and obtained 100% ownership. The $436,000 difference between the purchase price paid of $446,000 and the non-controlling interest's share of the net assets of the property was accounted for as a reduction to paid-in capital.

        Distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro rata to the equity interest each partner has in the applicable venture.

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

12 Months Ended

Dec. 31, 2017

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 8—INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

        At December 31, 2017 and 2016, the Company's five unconsolidated joint ventures each owned and operated one property. The Company's equity investment in such unconsolidated joint ventures at such dates totaled $10,723,000 and $10,833,000, respectively. The Company recorded equity in earnings of $826,000, $1,005,000 and $412,000 during 2017, 2016 and 2015, respectively.

        At December 31, 2017, MCB is the Company's joint venture partner in one of these unconsolidated joint ventures in which the Company has an equity investment of $8,245,000.

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OTHER INCOME

12 Months Ended

Dec. 31, 2017

OTHER INCOME

OTHER INCOME

NOTE 9—OTHER INCOME

        The year ended December 31, 2017 includes $243,000 paid to the Company by a former tenant in connection with the resolution of a dispute, and $74,000 that the Company received for easements on a sold property. The year ended December 31, 2016 includes $356,000 that the Company received for such easements.

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DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2017

DEBT OBLIGATIONS

DEBT OBLIGATIONS

NOTE 10—DEBT OBLIGATIONS

Mortgages Payable

        The following table details the Mortgages payable, net, balances per the consolidated balance sheets (amounts in thousands):

	December 31,
	2017			2016
Mortgages payable, gross	$	396,946		$	399,192
Unamortized deferred financing costs		(3,789	)		(4,294	)
Mortgages payable, net	$	393,157		$	394,898

        At December 31, 2017, there were 70 outstanding mortgages payable, all of which are secured by first liens on individual real estate investments with an aggregate gross carrying value of $624,361,000 before accumulated depreciation of $83,015,000. After giving effect to the interest rate swap agreements (see Note 11), the mortgage payments bear interest at fixed rates ranging from 3.02% to 6.59%, and mature between 2018 and 2042. The weighted average interest rate on all mortgage debt was 4.22% and 4.27% at December 31, 2017 and 2016, respectively.

        Scheduled principal repayments during the next five years and thereafter are as follows (amounts in thousands):

Year Ending December 31,
2018(a)	$	24,871
2019		14,610
2020		11,901
2021		20,742
2022		43,771
Thereafter		281,051
Total	$	396,946

(a)           Includes $4,423 related to a mortgage loan that was paid off on a property sold in January 2018.

Line of Credit

        The Company has a credit facility with Manufacturers & Traders Trust Company, People's United Bank, VNB New York, LLC, and Bank Leumi USA, pursuant to which the Company may borrow up to $100,000,000, subject to borrowing base requirements. The facility, which matures December 31, 2019, provides that the Company pay an interest rate equal to the one month LIBOR rate plus an applicable margin ranging from 175 basis points to 300 basis points depending on the ratio of the Company's total debt to total value, as determined pursuant to the facility. The applicable margin was 175 basis points at December 31, 2017 and 2016. An unused facility fee of .25% per annum applies to the facility. The average interest rate on the facility was approximately 2.87%, 2.23% and 1.95% during 2017, 2016 and 2015, respectively.

        The credit facility includes certain restrictions and covenants which may limit, among other things, the incurrence of liens, and which require compliance with 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 debt to value, the minimum level of net income, certain investment limitations and the minimum value of unencumbered properties and the number of such properties. The Company was in compliance with all covenants at December 31, 2017.

        The facility is guaranteed by subsidiaries of the Company that own unencumbered properties and the Company pledged to the lenders the equity interests in the Company's subsidiaries. The facility is available for the acquisition of commercial real estate, repayment of mortgage debt, property improvements and general working capital purposes; provided, that if used for property improvements and working capital purposes, the amount outstanding for such purposes will not exceed the lesser of $15,000,000 and 15% of the borrowing base and if used for working capital purposes, will not exceed $10,000,000. Net proceeds received from the sale, financing or refinancing of properties are generally required to be used to repay amounts outstanding under the credit facility.

        The following table details the Line of credit, net, balances per the consolidated balance sheets (amounts in thousands):

	December 31,
	2017			2016
Line of credit, gross	$	9,400		$	10,000
Unamortized deferred financing costs		(624	)		(936	)
Line of credit, net	$	8,776		$	9,064

        At March 5, 2018, there was an outstanding balance of $3,900,000 (before unamortized deferred financing costs) under the facility.

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FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2017

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 11—FAIR VALUE MEASUREMENTS

        The carrying amounts of cash and cash equivalents, restricted cash, escrow, deposits and other assets and receivables (excluding interest rate swaps), dividends payable, and accrued expenses and other liabilities (excluding interest rate swaps), are not measured at fair value on a recurring basis, but are considered to be recorded at amounts that approximate fair value.

        At December 31, 2017, the $397,103,000 estimated fair value of the Company's mortgages payable is more than their $396,946,000 carrying value (before unamortized deferred financing costs) by approximately $157,000, assuming a blended market interest rate of 4.25% based on the 8.7 year weighted average remaining term to maturity of the mortgages. At December 31, 2016, the $413,916,000 estimated fair value of the Company's mortgages payable is greater than their $399,192,000 carrying value (before unamortized deferred financing costs) by approximately $14,724,000, assuming a blended market interest rate of 3.74% based on the 9.3 year weighted average remaining term to maturity of the mortgages.

        At December 31, 2017 and 2016, the carrying amount of the Company's line of credit (before unamortized deferred financing costs) of $9,400,000 and $10,000,000, respectively, approximates its fair value.

        The fair value of the Company's mortgages payable and line of credit are estimated using unobservable inputs such as available market information and discounted cash flow analysis based on borrowing rates the Company believes it could obtain with similar terms and maturities. These fair value measurements fall within Level 3 of the fair value hierarchy.

        Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

Fair Value on a Recurring Basis

        The fair value of the Company's derivative financial instruments, using Level 2 inputs, was determined to be the following (amounts in thousands):

	As of December 31,		Carrying and Fair Value
Financial assets:
Interest rate swaps		2017	$	1,615
		2016		1,257
Financial liabilities:
Interest rate swaps		2017	$	1,492
		2016		2,695

        The Company does not currently own any financial instruments that are measured on a recurring basis and that are classified as Level 1 or 3.

        The Company's objective in using interest rate swaps is to add stability to interest expense. The Company does not use derivatives for trading or speculative purposes.

        Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities.

        Although the Company has determined the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with it use Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparty. As of December 31, 2017, the Company has assessed and determined the impact of the credit valuation adjustments on the overall valuation of its derivative positions is not significant. As a result, the Company determined its derivative valuation is classified in Level 2 of the fair value hierarchy.

        As of December 31, 2017, the Company had entered into 28 interest rate derivatives, all of which were interest rate swaps, related to 28 outstanding mortgage loans with an aggregate $132,965,000 notional amount and mature between 2018 and 2028 (weighted average remaining term to maturity of 7.0 years). Such interest rate swaps, all of which were designated as cash flow hedges, converted LIBOR based variable rate mortgages to fixed annual rate mortgages (with interest rates ranging from 3.02% to 5.38% and a weighted average interest rate of 4.11% at December 31, 2017). The fair value of the Company's derivatives in asset and liability positions are reflected as other assets or other liabilities on the consolidated balance sheets. During the year ended December 31, 2017, the Company discontinued hedge accounting on two of its interest rate swaps (see discussion following the table below).

        Three of the Company's unconsolidated joint ventures, in which wholly-owned subsidiaries of the Company are 50% partners, had two interest rate derivatives outstanding at December 31, 2017 with an aggregate $10,491,000 notional amount. These interest rate swaps, which were designated as cash flow hedges, have interest rates of 3.49% and 5.81% and mature in 2022 and 2018, respectively.

        The following table presents the effect of the Company's derivative financial instruments on the consolidated statements of income for the periods presented (amounts in thousands):

	Year Ended December 31,
	2017			2016			2015
One Liberty Properties Inc. and Consolidated Subsidiaries
Amount of (loss) gain recognized on derivatives in Other comprehensive income (loss)	$	(221	)	$	255		$	(3,722	)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Interest expense		(1,786	)		(2,624	)		(2,554	)
Unconsolidated Joint Ventures (Company's share)
Amount of gain (loss) recognized on derivatives in Other comprehensive income (loss)	$	15		$	(31	)	$	(109	)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Equity in earnings of unconsolidated joint ventures		(61	)		(95	)		(108	)

        During 2017, in connection with the sale of two properties located in Kansas City, Missouri and Ann Arbor, Michigan, the Company paid off the mortgages and terminated the related interest rate swaps. As the Company discontinued hedge accounting on these interest rate swaps as the hedged forecasted transactions became probable not to occur, the Company accelerated the reclassification of $201,000 from Accumulated other comprehensive income to Interest expense for the year ended December 31, 2017. No gain or loss was recognized with respect to hedge ineffectiveness or to amounts excluded from effectiveness testing on the Company's cash flow hedges for the three years ended December 31, 2017.

        During the twelve months ending December 31, 2018, the Company estimates an additional $565,000 will be reclassified from Accumulated other comprehensive income as an increase to Interest expense and $7,000 will be reclassified from Accumulated other comprehensive income as a decrease to Equity in earnings of unconsolidated joint ventures.

        The derivative agreements in effect at December 31, 2017 provide that if the wholly-owned subsidiary of the Company which is a party to the agreement defaults or is capable of being declared in default on any of its indebtedness, then a default can be declared on such subsidiary's derivative obligation. In addition, the Company is a party to the derivative agreements and if there is a default by the subsidiary on the loan subject to the derivative agreement to which the Company is a party and if there are swap breakage losses on account of the derivative being terminated early, then the Company could be held liable for such swap breakage losses, if any. During the year ended December 31, 2016, the Company terminated three interest rate swaps in connection with the early payoff of the related mortgages, and during the year ended December 31, 2015, the Company terminated one interest rate swap in connection with the sale of its Cherry Hill, New Jersey property. The Company accelerated the reclassification of amounts in accumulated other comprehensive income to earnings as a result of these hedged forecasted transactions being terminated. The accelerated amounts were losses of $178,000 and $472,000 during 2016 and 2015, respectively, which are included in Prepayment costs on debt on the consolidated statements of income.

        As of December 31, 2017 and 2016, the fair value of the derivatives in a liability position, including accrued interest of $53,000 and $113,000, respectively, but excluding any adjustments for nonperformance risk, was approximately $1,638,000 and $2,951,000, respectively. In the event the Company breaches any of the contractual provisions of the derivative contracts, it would be required to settle its obligations thereunder at their termination liability value of $1,638,000 and $2,951,000 as of December 31, 2017 and 2016, respectively. This termination liability value, net of adjustments for nonperformance risk of $93,000 and $143,000, is included in Accrued expenses and other liabilities on the consolidated balance sheet at December 31, 2017 and 2016, respectively.

Available-for-sale securities

        During 2016, the Company sold its available-for-sale securities for $33,000 which had a cost of $5,300. The Company realized a gain on sale of $27,000, which was reclassified from Accumulated other comprehensive loss on the consolidated balance sheet into Other income on the consolidated statement of income.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2017

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 12—RELATED PARTY TRANSACTIONS

Compensation and Services Agreement

        Pursuant to the compensation and services agreement with Majestic Property Management Corp. ("Majestic"), the Company pays fees to Majestic and Majestic provides to the Company the services of all affiliated executive, administrative, legal, accounting, clerical and property management personnel, as well as property acquisition, sale and lease consulting and brokerage services, consulting services with respect to mortgage financings and construction supervisory services. Majestic is wholly-owned by the Company's vice-chairman and certain of the Company's executive officers are officers of, and are compensated by, Majestic. The fee the Company pays Majestic is negotiated each year by Majestic and the Compensation and Audit Committees of the Company's Board of Directors, and is approved by such committees and the independent directors.

        In consideration for the services described above, the Company paid Majestic $2,673,000 in 2017, $2,504,000 in 2016 and $2,339,000 in 2015. Included in these fees are $1,154,000 in 2017, $1,057,000 in 2016 and $892,500 in 2015, of property management costs. The property management fee portion of the compensation and services agreement is paid based on 1.5% and 2.0% of the rental payments (including tenant reimbursements) actually received by the Company from net lease tenants and operating lease tenants, respectively. The Company does not pay Majestic property management fees with respect to properties managed by third parties. Majestic credits against the fees due to it under the compensation and services agreement any management or other fees received by it from any joint venture in which the Company is a joint venture partner. The compensation and services agreement also provides for an additional payment to Majestic of $216,000 in 2017, $196,000 in each of 2016 and 2015 for the Company's share of all direct office expenses, including rent, telephone, postage, computer services, internet usage and supplies. The Company does not pay any fees or expenses to Majestic for such services except for the fees described in this paragraph. In 2018, the fees paid to Majestic will remain the same as the 2017 fees (exclusive of the property management costs, which are calculated as described above).

        Executive officers and others providing services to the Company under the compensation and services agreement were awarded shares of restricted stock and RSUs under the Company's stock incentive plans (described in Note 13). The related expense charged to the Company's operations was $1,539,000, $1,480,000 and $1,245,000 in 2017, 2016 and 2015, respectively.

        The fees paid under the compensation and services agreement (except for the property management fees which are included in Real estate expenses) and the costs of the stock incentive plans are included in General and administrative expense on the consolidated statements of income for 2017, 2016 and 2015.

Joint Venture Partners and Affiliates

        During 2017, 2016 and 2015, the Company paid an aggregate of $143,000, $185,000 and $198,000, respectively, to its joint venture partners or their affiliates (none of whom are officers, directors, or employees of the Company) of its consolidated joint ventures for property management and acquisition fees, which are included in Real estate expenses and Real estate acquisition costs on the consolidated statements of income.

        The Company's unconsolidated joint ventures paid management fees of $175,000, $176,000 and $409,000 to the other partner of the venture, which reduced Equity in earnings of unconsolidated joint ventures on the consolidated statements of income by $88,000, $88,000 and $205,000 during 2017, 2016 and 2015, respectively. In 2015, the Company received a $131,000 fee for obtaining the mortgage debt for the unconsolidated joint venture that acquired the Manahawkin, New Jersey property. Fifty percent of this income is included in Other income on the consolidated statement of income and the balance is recorded as a reduction to the investment.

        See Note 7 for information regarding the Company's purchase in October 2016, of MCB's 5% interest in a consolidated joint venture that owned a property in Deptford, New Jersey.

Other

        During 2017, 2016 and 2015, the Company paid fees of (i) $276,000, $262,500 and $262,500, respectively, to the Company's chairman and (ii) $110,000, $105,000 and $105,000, respectively, to the Company's vice-chairman. There is no increase in the amounts to be paid to the Company's chairman and vice-chairman in 2018. These fees are included in General and administrative expense on the consolidated statements of income.

        At December 31, 2017 and 2016, Gould Investors L.P. ("Gould Investors"), owned 1,785,976 shares of the outstanding common stock of the Company, or approximately 9.5% and 9.8%, respectively. During 2015, Gould Investors purchased 81,211 shares of the Company's stock through the Company's dividend reinvestment plan, and did not purchase any such shares during 2017 and 2016.

        The Company obtains its property insurance in conjunction with Gould Investors and reimburses Gould Investors annually for the Company's insurance cost relating to its properties. Amounts reimbursed to Gould Investors were $790,000, $699,000 and $520,000 during 2017, 2016 and 2015, respectively. Included in Real estate expenses on the consolidated statements of income is insurance expense of $757,000, $645,000 and $339,000 during 2017, 2016 and 2015, respectively. The balance of the amounts reimbursed to Gould Investors represents prepaid insurance and is included in Other assets on the consolidated balance sheets.

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STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2017

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

NOTE 13—STOCKHOLDERS' EQUITY

Stock Based Compensation

        The Company's 2016 Incentive Plan ("Plan"), approved by the Company's stockholders in June 2016, permits the Company to grant, among other things, stock options, restricted stock, RSUs, performance share awards and dividend equivalent rights and any one or more of the foregoing to its employees, officers, directors and consultants. A maximum of 750,000 shares of the Company's common stock is authorized for issuance pursuant to this Plan. As of December 31, 2017, (i) restricted stock awards with respect to 140,100 shares had been issued, of which 100 shares were forfeited and 3,000 shares had vested, and (ii) as further described below, RSUs with respect to 76,250 shares had been issued and are outstanding. On January 18, 2018, 144,750 restricted shares were issued pursuant to this Plan, having an aggregate value of approximately $3,664,000 and are scheduled to vest in January 2023.

        Under the Company's 2012 equity incentive plan, as of December 31, 2017, 500,700 shares had been issued, of which 3,350 shares were forfeited and 21,450 shares had vested. No additional awards may be granted under this plan.

        For accounting purposes, the restricted stock is not included in the shares shown as outstanding on the balance sheet until they vest; however, dividends are paid on the unvested shares. The restricted stock grants are charged to General and administrative expense over the respective vesting periods based on the market value of the common stock on the grant date. Unless earlier forfeited because the participant's relationship with the Company terminated, unvested restricted stock awards vest on the fifth anniversary of the grant date, and under certain circumstances may vest earlier.

        During 2017, the Company granted RSUs exchangeable for up to 76,250 shares of common stock upon satisfaction, through June 30, 2020, of specified conditions. Specifically, up to 50% of these RSUs vest upon achievement of metrics related to average annual total stockholder return (the "TSR Awards"), which metrics meet the definition of a market condition, and up to 50% vest upon achievement of metrics related to average annual return on capital (the "ROC Awards"), which metrics meet the definition of a performance condition. The holders of the RSUs are not entitled to dividends or to vote the underlying shares until such RSUs vest and shares are issued. Accordingly, the shares underlying these RSUs are not included in the shares shown as outstanding on the balance sheet. For the TSR awards, a third party appraiser prepared a Monte Carlo simulation pricing model to determine the fair value, which is recognized ratably over the service period. The Monte Carlo valuation consisted of computing the grant date fair value of the awards using the Company's simulated stock price. The per unit or share fair value was estimated using the following assumptions: an expected life of three years, a dividend rate of 7.16%, a risk-free interest rate of 1.14% - 1.64% and an expected price volatility of 16.57% - 19.16%. The expected price volatility was calculated based on the historical volatility and implied volatility. For the ROC awards, the fair value is based on the market value on the date of grant and the performance assumptions are re-evaluated quarterly. Expense is not recognized on the RSUs which the Company does not expect to vest as a result of service conditions or the Company's performance expectations.

        The total amount recorded as deferred compensation is $1,004,000, based on performance and market assumptions and will be charged to General and administrative expense through June 30, 2020. None of these RSUs were forfeited or vested during the year ended December 31, 2017.

        In 2010, RSUs exchangeable for up to 200,000 shares of common stock were awarded pursuant to the Company's 2009 equity incentive plan. The holders of RSUs were not entitled to dividends or to vote the underlying shares until the RSUs vested and the underlying shares were issued. Accordingly, for financial statement purposes, the shares underlying these RSUs were not included in the shares shown as outstanding on the balance sheet as of December 31, 2016. During 2017, 113,584 shares of common stock underlying the RSUs were deemed to have vested and were issued. RSUs with respect to the balance of 86,416 shares were forfeited.

        The following is a summary of the activity of the equity incentive plans:

	Years Ended December 31,
	2017			2016			2015
Restricted stock:
Number of shares		140,100			139,225			129,975
Average per share grant price	$	24.75		$	21.74		$	24.60
Deferred compensation to be recognized over vesting period	$	3,467,000		$	3,027,000		$	3,197,000
Number of non-vested shares:
Non-vested beginning of year		591,750			538,755			480,995
Grants		140,100			139,225			129,975
Vested during year		(118,450	)		(85,730	)		(72,215	)
Forfeitures		(500	)		(500	)		—
Non-vested end of year		612,900			591,750			538,755
RSU grants:
Number of underlying shares		76,250			—			—
Average per share grant price	$	24.03			—			—
Deferred compensation to be recognized over vesting period	$	1,004,000			—			—
Number of non-vested shares:
Non-vested beginning of year		200,000			200,000			200,000
Grants		76,250			—			—
Vested during year		(113,584	)		—			—
Forfeitures		(86,416	)		—			—
Non-vested end of year		76,250			200,000			200,000
Restricted stock and RSU grants:
Weighted average per share value of non-vested shares (based on grant price)	$	22.89		$	17.95		$	17.12
Value of stock vested during the year (based on grant price)	$	3,008,000		$	1,451,500		$	612,000
Weighted average per share value of shares forfeited during the year (based on grant price)	$	8.37		$	21.05		$	—
Total charge to operations:
Outstanding restricted stock grants	$	2,966,000		$	2,692,000		$	2,204,000
Outstanding RSUs		167,000			291,000			130,000
Total charge to operations	$	3,133,000		$	2,983,000		$	2,334,000

        As of December 31, 2017, total compensation of $7,098,000 related to non-vested restricted stock awards and RSUs have not yet been recognized. These compensation costs will be charged to General and administrative expense over the remaining respective vesting periods. The weighted average vesting period is 2.2 years for the restricted stock and 2.5 years for the RSUs.

Common Stock Dividend Distributions

        In 2017, 2016 and 2015, the Board of Directors declared an aggregate $1.74, $1.66, and $1.58 per share in cash distributions, respectively.

        On March 12, 2018, the Board of Directors declared a quarterly cash dividend of $.45 per share on the Company's common stock, totaling $8,581,000. The quarterly dividend is payable on April 6, 2018 to stockholders of record on March 27, 2018.

Dividend Reinvestment Plan

        The Company's Dividend Reinvestment Plan (the "DRP") provides stockholders with the opportunity to reinvest all, or a portion of, their cash dividends paid on the Company's common stock in additional shares of its common stock, at a discount of up to 5% from the market price. The discount is determined in the Company's sole discretion. The Company is currently offering up to a 5% discount from market. The Company issued 198,000, 142,000, and 197,000 common shares under the DRP during 2017, 2016 and 2015, respectively.

Shares Issued Through Equity Offering Program

        During 2017, the Company sold 231,000 shares for proceeds of $5,758,000, net of commissions of $58,000, and incurred offering costs of $188,000 for professional fees. During 2016, the Company sold 1,079,862 shares for proceeds of $25,947,000, net of commissions of $262,000, and incurred offering costs of $160,000 for professional fees. There were no sales subsequent to December 31, 2017.

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2017

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 14—COMMITMENTS AND CONTINGENCIES

        The Company maintains a non-contributory defined contribution pension plan covering eligible employees. Contributions by the Company are made through a money purchase plan, based upon a percent of the qualified employees' total salary (subject to the maximum amount allowed by law). Pension expense approximated $275,000, $273,000, and $266,000 for 2017, 2016 and 2015, respectively, and is included in General and administrative expense in the consolidated statements of income.

        The Company is contractually required (i) to expend approximately $7,800,000 through 2018 for building expansion and improvements at its property tenanted by L-3 Communications, located in Hauppauge, New York, of which $3,584,000 has been spent through December 31, 2017 and (ii) to reimburse Regal Cinemas, a tenant in Greensboro, North Carolina, $3,000,000 when the tenant completes specified improvements to the property. On January 26, 2018, the Company reimbursed this amount to the tenant.

        The Company pays, with respect to one of its real estate properties, annual fixed leasehold rent of $371,094 through July 2019 and $463,867 through March 3, 2020. The Company has the right to extend the lease for up to five 5-year renewal options and one seven month renewal option.

        As discussed in Note 7, the Company provided its land in Lakemoor and Wheaton, Illinois, and Beachwood, Ohio as collateral for the respective owner/operator's mortgage loans and accordingly, each land position is subordinated to the applicable mortgage.

        In the ordinary course of business, the Company is party to various legal actions which management believes are routine in nature and incidental to the operation of the Company's business. Management believes that the outcome of the proceedings will not have a material adverse effect upon the Company's consolidated financial statements taken as a whole.

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INCOME TAXES

12 Months Ended

Dec. 31, 2017

INCOME TAXES

INCOME TAXES

NOTE 15—INCOME TAXES

        The Company elected to be taxed as a REIT under the Internal Revenue Code, commencing with its taxable year ended December 31, 1983. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it currently distribute at least 90% of its adjusted taxable income to its stockholders. As a REIT, the Company generally will not be subject to corporate level federal, state and local income tax on taxable income it distributes currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal, state and local income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. It is management's current intention to adhere to these requirements and maintain the Company's REIT status.

        Even though the Company qualifies for taxation as a REIT, the Company is subject to certain state and local taxes on its income and property, and to federal income and excise taxes on its undistributed taxable income. As of December 31, 2017, tax returns for the calendar years 2014 through 2017 remain subject to examination by the Internal Revenue Service and various state and local tax jurisdictions.

        During 2017, 2016 and 2015, the Company recorded federal excise tax expense of $0, $6,000 and $174,000, respectively, which is based on taxable income generated but not yet distributed. During 2017, 2016 and 2015, the Company did not incur any federal income tax expense. The Company does not have any deferred tax assets or liabilities at December 31, 2017 and 2016.

        During 2017, 2016 and 2015, 17%, 27% and 67%, respectively, of the distributions were treated as capital gain distributions, with the balance treated as ordinary income.

        The Company treats depreciation expense, straight-line rent adjustments and certain other items differently for tax purposes than for financial reporting purposes. Therefore, its dividends paid deduction differs from its financial statement income.

        The following table reconciles cash dividends paid with the dividends paid deduction for the years indicated (amounts in thousands):

	2017 Estimate			2016 Actual			2015 Actual
Dividends paid	$	32,393		$	29,135		$	26,179
Dividend reinvestment plan(a)		252			181			228
		32,645			29,316			26,407
Less: Spillover dividends designated to previous year		(11,916	)		(15,209	)		(18,177	)
Plus: Dividends designated from following year		10,263			11,916			15,209
Dividends paid deduction	$	30,992		$	26,023		$	23,439

(a)           Reflects the up to 5% discount on common stock purchased through the dividend reinvestment plan.

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SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2017

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 16—SUBSEQUENT EVENTS

        Subsequent events have been evaluated and, except as previously disclosed, there were no other events relative to the consolidated financial statements that require additional disclosure.

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QUARTERLY FINANCIAL DATA (Unaudited)

12 Months Ended

Dec. 31, 2017

QUARTERLY FINANCIAL DATA (Unaudited):

QUARTERLY FINANCIAL DATA (Unaudited):

NOTE 17—QUARTERLY FINANCIAL DATA (Unaudited):

            (In Thousands, Except Per Share Data)

	Quarter Ended
									Total For Year
2017	March 31		June 30		Sept. 30		Dec. 31
Total revenues	$	18,472	$	18,413	$	19,137	$	19,894	$	75,916
Gain on sale of real estate, net	$	—	$	6,568	$	3,269	$	—	$	9,837
Net income	$	2,886	$	9,993	$	7,128	$	4,242	$	24,249
Net income attributable to One Liberty Properties, Inc.	$	2,865	$	9,972	$	7,105	$	4,205	$	24,147
Weighted average number of common shares outstanding:
Basic		17,751		17,824		18,000		18,198		17,944
Diluted		17,865		17,938		18,079		18,269		18,047
Net income per common share attributable to common stockholders:
Basic	$	.15	$	.54	$	.38	$	.22	$	1.29	(a)
Diluted	$	.15	$	.54	$	.38	$	.22	$	1.28	(a)

	Quarter Ended
									Total For Year
2016	March 31		June 30		Sept. 30		Dec. 31
Total revenues	$	16,344	$	17,233	$	18,021	$	18,990	$	70,588
Gain on sale of real estate, net	$	787	$	8,918	$	119	$	263	$	10,087
Net income	$	3,285	$	12,459	$	4,323	$	4,414	$	24,481
Net income attributable to One Liberty Properties, Inc.	$	3,287	$	12,441	$	4,299	$	4,395	$	24,422
Weighted average number of common shares outstanding:
Basic		16,388		16,579		16,845		17,255		16,768
Diluted		16,495		16,686		16,962		17,369		16,882
Net income per common share attributable to common stockholders:
Basic	$	.19	$	.72	$	.24	$	.24	$	1.40	(a)
Diluted	$	.18	$	.72	$	.24	$	.24	$	1.39	(a)

(a)           Calculated on weighted average shares outstanding for the year.

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Schedule III - Consolidated Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2017

Schedule III - Consolidated Real Estate and Accumulated Depreciation

Schedule III - Consolidated Real Estate and Accumulated Depreciation

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

Schedule III—Consolidated Real Estate and Accumulated Depreciation

December 31, 2017

(Amounts in Thousands)

								Cost Capitalized Subsequent to Acquisition		Gross Amount at Which Carried at December 31, 2017
				Initial Cost to Company
						Building and Improvements						Building & Improvements				Accumulated Depreciation(1)		Date of Construction		Date Acquired
Type	Location	Encumbrances		Land				Improvements		Land				Total
Health & Fitness	Tucker, GA	$	—	$	807	$	3,027	$	3,126	$	807	$	6,153	$	6,960	$	2,290		1988		2002
Health & Fitness	Hamilton, OH		4,814		1,483		5,953		—		1,483		5,953		7,436		1,096		2008		2011
Health & Fitness	Secaucus, NJ		8,865		5,449		9,873		—		5,449		9,873		15,322		1,253		1986		2012
Industrial	Ronkonkoma, NY		—		1,042		4,171		2,517		1,042		6,688		7,730		2,181		1986		2000
Industrial	Hauppauge, NY		11,969		1,951		10,954		5,382		1,951		16,336		18,287		5,255		1982		2000
Industrial	Fort Mill, SC		8,290		1,840		12,687		23		1,840		12,710		14,550		1,568		1992		2013
Industrial	Columbus, OH		—		435		1,703		27		435		1,730		2,165		734		1979		1995
Industrial	West Palm Beach, FL		—		181		724		—		181		724		905		348		1973		1998
Industrial	New Hyde Park, NY		2,563		182		728		281		182		1,009		1,191		380		1960		1999
Industrial	Melville, NY		2,749		774		3,029		975		774		4,004		4,778		1,324		1982		2003
Industrial	Saco, ME		—		1,027		3,623		2,050		1,027		5,673		6,700		1,063		2001		2006
Industrial	Baltimore, MD(2)		20,527		6,474		25,282		—		6,474		25,282		31,756		6,979		1960		2006
Industrial	Durham, NC		2,788		1,043		2,404		—		1,043		2,404		3,447		466		1991		2011
Industrial	Pinellas Park, FL		2,384		1,231		1,669		—		1,231		1,669		2,900		271		1995		2012
Industrial	Miamisburg, OH		735		165		1,348		11		165		1,359		1,524		199		1987		2012
Industrial	Indianapolis, IN		5,933		1,224		6,935		—		1,224		6,935		8,159		996		1997		2013
Industrial	Fort Mill, SC		24,994		1,804		33,650		—		1,804		33,650		35,454		5,123		1997		2013
Industrial	New Hope, MN		4,227		881		6,064		81		881		6,145		7,026		481		1967		2014
Industrial	Louisville, KY		2,389		578		3,727		4		578		3,731		4,309		274		1974		2015
Industrial	Louisville, KY		—		51		230		—		51		230		281		16		1974		2015
Industrial	McCalla, AL		10,325		1,588		14,682		—		1,588		14,682		16,270		921		2003		2015
Industrial	St. Louis, MO		11,707		3,728		13,006		695		3,728		13,701		17,429		809		1969		2015
Industrial	Greenville, SC		5,086		693		6,893		11		693		6,904		7,597		322		1997		2016
Industrial	Greenville, SC		5,651		528		8,074		6		528		8,080		8,608		375		2000		2016
Industrial	El Paso, TX		14,487		3,691		17,904		324		3,691		18,228		21,919		737		1997		2016
Industrial	Lebanon, TN		21,288		2,094		30,039		14		2,094		30,053		32,147		1,004		1996		2016
Industrial	Huntersville, NC		5,116		1,046		6,674		—		1,046		6,674		7,720		111		2014		2017
Industrial	Pittston, PA		7,142		999		9,922		250		999		10,172		11,171		146		1990		2017
Industrial	Ankeny, IA		8,729		1,351		11,607		—		1,351		11,607		12,958		162		2016		2017
Industrial	Memphis, TN		—		135		7,952		—		135		7,952		8,087		43		1979		2017
Industrial	Joppa, MD		9,600		3,815		8,142		1,473		3,815		9,615		13,430		836		1994		2014
Office	Brooklyn, NY		3,532		1,381		5,447		2,870		1,381		8,317		9,698		3,641		1973		1998
Other	Round Rock, TX		13,892		1,678		16,670		—		1,678		16,670		18,348		1,840		2012		2013
Other	Lakemoor, IL		—		9,592		—		—		9,592		—		9,592		—		N/A		2015
Other	Wheaton, IL		—		10,536		—		—		10,536		—		10,536		—		N/A		2016
Other	Beachwood, OH		—		13,901		—		—		13,901		—		13,901		—		N/A		2016
Restaurant	Hauppauge, NY		1,736		725		2,963		—		725		2,963		3,688		898		1992		2005
Restaurant	Palmyra, PA		735		650		650		—		650		650		1,300		121		1981		2010

								Cost Capitalized Subsequent to Acquisition		Gross Amount at Which Carried at December 31, 2017
				Initial Cost to Company
						Building and Improvements						Building & Improvements				Accumulated Depreciation(1)		Date of Construction		Date Acquired
Type	Location	Encumbrances		Land				Improvements		Land				Total
Restaurant	Reading, PA		726		655		625		—		655		625		1,280		116		1981		2010
Restaurant	Reading, PA		714		618		643		—		618		643		1,261		121		1983		2010
Restaurant	Hanover, PA		803		736		686		—		736		686		1,422		126		1992		2010
Restaurant	Gettysburg, PA		823		754		704		—		754		704		1,458		130		1991		2010
Restaurant	Trexlertown, PA		700		800		439		—		800		439		1,239		81		1994		2010
Restaurant	Carrollton, GA		1,569		796		1,458		—		796		1,458		2,254		250		1996		2012
Restaurant	Cartersville, GA		1,484		786		1,346		—		786		1,346		2,132		245		1995		2012
Restaurant	Kennesaw, GA		1,216		702		916		—		702		916		1,618		161		1989		2012
Restaurant	Lawrenceville, GA		1,167		866		899		—		866		899		1,765		204		1988		2012
Restaurant	Concord, NC		1,529		999		1,076		—		999		1,076		2,075		143		2000		2013
Restaurant	Myrtle Beach, SC		1,529		1,102		1,161		—		1,102		1,161		2,263		161		1978		2013
Restaurant	Greensboro, NC		3,253		1,770		1,237		—		1,770		1,237		3,007		156		1983		2013
Restaurant	Richmond, VA		—		1,680		1,341		—		1,680		1,341		3,021		162		1983		2013
Restaurant	Indianapolis, IN		928		853		1,465		—		853		1,465		2,318		169		1982		2014
Retail	Seattle, WA		—		201		189		—		201		189		390		143		1986		1987
Retail	Rosenberg, TX		—		216		863		66		216		929		1,145		500		1994		1995
Retail	Ft. Myers, FL		—		1,013		4,054		—		1,013		4,054		5,067		2,141		1995		1996
Retail	Houston, TX		—		396		1,583		30		396		1,613		2,009		800		1997		1998
Retail	Selden, NY		2,889		572		2,287		150		572		2,437		3,009		1,132		1997		1999
Retail	Champaign, IL		1,580		791		3,165		308		791		3,473		4,264		1,553		1985		1999
Retail	El Paso, TX		11,086		2,821		11,123		2,544		2,821		13,667		16,488		5,567		1974		2000
Retail	Somerville, MA		1,774		510		1,993		24		510		2,017		2,527		749		1993		2003
Retail	Newark, DE		1,716		935		3,643		43		935		3,686		4,621		1,318		1996		2003
Retail	Knoxville, TN		9,112		2,290		8,855		—		2,290		8,855		11,145		3,053		2003		2004
Retail	Onalaska, WI		3,539		753		3,099		—		753		3,099		3,852		1,017		1994		2004
Retail	Hyannis, MA		131		802		2,324		—		802		2,324		3,126		579		1998		2008
Retail	Marston Mills, MA		—		461		2,313		—		461		2,313		2,774		571		1998		2008
Retail	Everett, MA		1,178		1,935		—		—		1,935		—		1,935		—		N/A		2008
Retail	Kennesaw, GA		5,373		1,501		4,349		1,138		1,501		5,487		6,988		1,148		1995		2008
Retail	Royersford, PA		19,750		19,538		3,150		424		19,538		3,574		23,112		707		2001		2010
Retail	Monroeville, PA		—		450		863		—		450		863		1,313		164		1994		2010
Retail	Houston, TX		—		1,962		1,540		—		1,962		1,540		3,502		315		2006		2010
Retail	Houston, TX		—		2,002		1,800		—		2,002		1,800		3,802		362		2009		2010
Retail	Bolingbrook, IL		—		834		1,887		101		834		1,988		2,822		368		2001		2011
Retail	Crystal Lake, IL		1,696		615		1,899		—		615		1,899		2,514		396		1997		2011
Retail	Lawrence, KS		—		134		938		22		134		960		1,094		138		1915		2012
Retail	Greensboro, NC		1,365		1,046		1,552		29		1,046		1,581		2,627		182		2002		2014
Retail	Highlands Ranch, CO		—		2,361		2,924		—		2,361		2,924		5,285		307		1995		2014
Retail	Woodbury, MN		2,957		1,190		4,003		—		1,190		4,003		5,193		413		2006		2014
Retail	Lincoln, NE		—		3,768		11,832		30		3,768		11,862		15,630		888		2001		2015
Retail	Cuyahoga Falls, OH		1,114		71		1,371		—		71		1,371		1,442		55		2004		2016
Retail	Hilliard, OH		987		300		1,077		—		300		1,077		1,377		45		2007		2016
Retail	Port Clinton, OH		955		52		1,187		—		52		1,187		1,239		49		2005		2016
Retail	South Euclid, OH		1,083		230		1,566		—		230		1,566		1,796		63		1975		2016
Retail	St Louis Park, MN		—		3,388		13,088		141		3,388		13,229		16,617		483		1962		2016

								Cost Capitalized Subsequent to Acquisition		Gross Amount at Which Carried at December 31, 2017
				Initial Cost to Company
						Building and Improvements						Building & Improvements				Accumulated Depreciation(1)		Date of Construction		Date Acquired
Type	Location	Encumbrances		Land				Improvements		Land				Total
Retail	Deptford, NJ		2,718		572		1,779		705		572		2,484		3,056		556		1981		2012
Retail	Cape Girardeau, MO		1,199		545		1,547		—		545		1,547		2,092		229		1994		2012
Retail	Clemmons, NC		2,119		2,564		3,293		—		2,564		3,293		5,857		561		1993		2013
Retail	Houston, TX		4,423		3,121		3,767		179		3,121		3,946		7,067		700		2001		2012
Retail	Littleton, CO		11,077		6,005		11,272		206		6,005		11,478		17,483		975		1985		2015
Retail—Supermarket	Philadelphia, PA		4,276		1,793		5,640		80		1,793		5,720		7,513		511		1992		2014
Retail—Supermarket	West Hartford, CT		17,211		9,296		4,813		261		9,296		5,074		14,370		1,055		2005		2010
Retail—Supermarket	West Hartford, CT		—		2,881		94		326		2,881		420		3,301		148		N/A		2010
Retail—Furniture	Columbus, OH		—		1,445		5,431		413		1,445		5,844		7,289		2,914		1996		1997
Retail—Furniture	Duluth, GA(3)		1,558		778		3,436		—		778		3,436		4,214		1,006		1987		2006
Retail—Furniture	Fayetteville, GA(3)		1,956		976		4,308		—		976		4,308		5,284		1,262		1987		2006
Retail—Furniture	Wichita, KS(3)		2,382		1,189		5,248		—		1,189		5,248		6,437		1,537		1996		2006
Retail—Furniture	Lexington, KY(3)		1,602		800		3,532		—		800		3,532		4,332		1,034		1999		2006
Retail—Furniture	Bluffton, SC(3)		1,180		589		2,600		—		589		2,600		3,189		761		1994		2006
Retail—Furniture	Amarillo, TX(3)		1,723		860		3,810		—		860		3,810		4,670		1,112		1996		2006
Retail—Furniture	Austin, TX(3)		3,179		1,587		7,010		—		1,587		7,010		8,597		2,052		2001		2006
Retail—Furniture	Tyler, TX(3)		2,066		1,031		4,554		—		1,031		4,554		5,585		1,333		2001		2006
Retail—Furniture	Newport News, VA(3)		1,505		751		3,316		—		751		3,316		4,067		971		1995		2006
Retail—Furniture	Richmond, VA(3)		1,736		867		3,829		—		867		3,829		4,696		1,121		1979		2006
Retail—Furniture	Virginia Beach, VA(3)		1,711		854		3,770		—		854		3,770		4,624		1,104		1995		2006
Retail—Furniture	Gurnee, IL		—		834		3,635		—		834		3,635		4,469		1,026		1994		2006
Retail—Furniture	Naples, FL		2,069		3,070		2,846		189		3,070		3,035		6,105		700		1992		2008
Retail—Office Supply	Batavia, NY(4)		—		515		2,061		—		515		2,061		2,576		972		1998		1999
Retail—Office Supply	Lake Charles, LA(4)		5,146		1,167		4,669		599		1,167		5,268		6,435		2,014		1998		2002
Retail—Office Supply	Athens, GA(4)		2,772		1,130		4,340		—		1,130		4,340		5,470		1,478		2003		2004
Retail—Office Supply	Chicago, IL(4)		3,735		3,877		2,256		—		3,877		2,256		6,133		524		1994		2008
Retail—Office Supply	Cary, NC(4)		3,151		1,129		3,736		—		1,129		3,736		4,865		868		1995		2008
Retail—Office Supply	Eugene, OR(4)		2,805		1,952		2,096		—		1,952		2,096		4,048		487		1994		2008
Retail—Office Supply	El Paso, TX(4)		2,451		1,035		2,700		—		1,035		2,700		3,735		627		1993		2008
Theater	Greensboro, NC		—		—		8,328		—		—		8,328		8,328		7,170		1999		2004
Theater	Indianapolis, IN		4,217		3,099		5,225		19		3,099		5,244		8,343		451		1997		2014
		$	396,946	$	209,320	$	537,860	$	28,147	$	209,320	$	566,007	$	775,327	$	108,953

Note 1—Depreciation is provided over the estimated useful lives of the buildings and improvements, which range from 3 to 40 years.

Note 2—Upon purchase of the property in December 2006, a $416,000 rental income reserve was posted by the seller for the Company's benefit, since the property was not producing sufficient rent at the time of acquisition. The Company recorded the receipt of this rental reserve as a reduction to land and building.

Note 3—These 11 properties are retail furniture stores covered by one master lease and one loan that is secured by cross - collateralized mortgages. They are located in six states (Georgia, Kansas, Kentucky, South Carolina, Texas and Virginia).

Note 4—These seven properties are retail office supply stores net leased to the same tenant, pursuant to separate leases. Five of these leases contain cross default provisions. They are located in seven states (Illinois, Louisiana, North Carolina, Texas, Georgia, Oregon, and New York).

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
Notes to Schedule III
Consolidated Real Estate and Accumulated Depreciation

(a)           Reconciliation of "Real Estate and Accumulated Depreciation"

(Amounts in Thousands)

	Year Ended December 31,
	2017			2016			2015
Investment in real estate (b):
Balance, beginning of year	$	748,065		$	662,182		$	592,668
Addition: Land, buildings and improvements		47,207			121,564			83,643
Deduction: Properties sold/conveyed		(19,792	)		(35,681	)		(14,129	)
Deduction: Impairment loss		(153	)		—			—
Balance, end of year	$	775,327		$	748,065		$	662,182
		(c)
Accumulated depreciation (b):
Balance, beginning of year	$	96,852		$	87,801		$	77,643
Addition: Depreciation		15,689			14,247			12,680
Deduction: Accumulated depreciation related to properties sold/conveyed		(3,588	)		(5,196	)		(2,522	)
Balance, end of year	$	108,953		$	96,852		$	87,801

(b)	Includes properties held-for-sale in 2015.
(c)	The aggregate cost of the properties is approximately $13,260 higher for federal income tax purposes at December 31, 2017.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2017

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Principles of Consolidation

        The consolidated financial statements include the accounts and operations of OLP, its wholly-owned subsidiaries, its joint ventures in which the Company, as defined, has a controlling interest, and variable interest entities ("VIEs") of which the Company is the primary beneficiary. OLP and its consolidated subsidiaries are hereinafter referred to as the "Company". Material intercompany items and transactions have been eliminated in consolidation.

Investment in Joint Ventures and Variable Interest Entities

Investment in Joint Ventures and Variable Interest Entities

        The Financial Accounting Standards Board, or FASB, provides guidance for determining whether an entity is a VIE. VIEs are defined as entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. A VIE is required to be consolidated by its primary beneficiary, which is the party that (i) has the power to control the activities that most significantly impact the VIE's economic performance and (ii) has the obligation to absorb losses, or the right to receive benefits, of the VIE that could potentially be significant to the VIE.

        The Company assesses the accounting treatment for each of its investments, including a review of each venture or limited liability company or partnership agreement, to determine the rights of each party and whether those rights are protective or participating. The agreements typically contain certain protective rights, such as the requirement of partner approval to sell, finance or refinance the property and to pay capital expenditures and operating expenditures outside of the approved budget or operating plan. In situations where, among other things, the Company and its partners jointly (i) approve the annual budget, (ii) approve certain expenditures, (iii) prepare or review and approve the joint venture's tax return before filing, and (iv) approve each lease at a property, the Company does not consolidate as the Company considers these to be substantive participation rights that result in shared, joint power over the activities that most significantly impact the performance of the joint venture or property. Additionally, the Company assesses the accounting treatment for any interests pursuant to which the Company may have a variable interest as a lessor. Leases may contain certain protective rights, such as the right of sale and the receipt of certain escrow deposits.

        The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting. All investments in unconsolidated joint ventures have sufficient equity at risk to permit the entity to finance its activities without additional subordinated financial support and, as a group, the holders of the equity at risk have power through voting rights to direct the activities of these ventures. As a result, none of these joint ventures are VIEs. In addition, the Company shares power with its co-managing members over these entities, and therefore the entities are not consolidated. These investments are recorded initially at cost, as investments in unconsolidated joint ventures, and subsequently adjusted for their share of equity in earnings, cash contributions and distributions. None of the joint venture debt is recourse to the Company, subject to standard carve-outs.

        The Company periodically reviews its investments in unconsolidated joint ventures for other-than-temporary losses in investment value. Any decline that is not expected to be recovered based on the underlying assets of the investment is considered other than temporary and an impairment charge is recorded as a reduction in the carrying value of the investment. During the three years ended December 31, 2017, there were no impairment charges related to the Company's investments in unconsolidated joint ventures.

        The Company has elected to follow the cumulative earnings approach when assessing, for the consolidated statement of cash flows, whether the distribution from the investee is a return of the investor's investment as compared to a return on its investment. The source of the cash generated by the investee to fund the distribution is not a factor in the analysis (that is, it does not matter whether the cash was generated through investee refinancing, sale of assets or operating results). Consequently, the investor only considers the relationship between the cash received from the investee to its equity in the undistributed earnings of the investee, on a cumulative basis, in assessing whether the distribution from the investee is a return on or return of its investment. Cash received from the unconsolidated entity is presumed to be a return on the investment to the extent that, on a cumulative basis, distributions received by the investor are less than its share of the equity in the undistributed earnings of the entity.

Use of Estimates

Use of Estimates

        The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

        Management believes that the estimates and assumptions that are most important to the portrayal of the Company's consolidated financial condition and results of operations, in that they require management's most difficult, subjective or complex judgments, form the basis of the accounting policies deemed to be most significant to the Company. These significant accounting policies relate to revenues and the value of the Company's real estate portfolio, including investments in unconsolidated joint ventures. Management believes its estimates and assumptions related to these significant accounting policies are appropriate under the circumstances; however, should future events or occurrences result in unanticipated consequences, there could be a material impact on the Company's future consolidated financial condition or results of operations.

Revenue Recognition

Revenue Recognition

        Rental income includes the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the non-cancelable term of the lease. In determining, in its judgment, that the unbilled rent receivable applicable to each specific property is collectible, management reviews unbilled rent receivables on a quarterly basis and takes into consideration the tenant's payment history and financial condition. Some of the leases provide for increases based on the Consumer Price Index and for additional contingent rental revenue in the form of percentage rents. The percentage rents are based upon the level of sales achieved by the lessee and are recognized once the required sales levels are reached. Certain ground leases provide for rent which can be deferred and paid based on the operating performance of the property; therefore, this rent is recognized as rental income when the operating performance is achieved and the rent is received.

        Many of the Company's properties are subject to long-term net leases under which the tenant is typically responsible to pay directly to the vendor the real estate taxes, insurance, utilities and ordinary maintenance and repairs related to the property, and the Company is not the primary obligor with respect to such items. As a result, the revenue and expenses relating to these properties are recorded on a net basis. For certain properties, in addition to contractual base rent, the tenants pay their pro rata share of real estate taxes and operating expenses to the Company. The income and expenses associated with these properties are generally recorded on a gross basis when the Company is the primary obligor. During 2017, 2016 and 2015, the Company recorded reimbursements of expenses of $7,672,000, $6,424,000 and $3,852,000, respectively, which are reported as Tenant reimbursements in the accompanying consolidated statements of income.

        Gains and losses on the sale of real estate investments are recorded when the criteria under GAAP have been met.

Fair Value Measurements

Fair Value Measurements

        The Company measures the fair value of financial instruments based on the assumptions that market participants would use in pricing the asset or liability. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). As a basis for considering market participant assumptions in fair value measurements, a fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. In accordance with the fair value hierarchy, Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other "observable" market inputs and Level 3 assets/liabilities are valued based on significant "unobservable" market inputs.

Purchase Accounting for Acquisition of Real Estate

Purchase Accounting for Acquisition of Real Estate

        In January 2017, the Company adopted ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which requires an entity to evaluate whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, and if that requirement is met, the asset group is accounted for as an asset acquisition and not a business combination. Transaction costs incurred with such asset acquisitions are capitalized to real estate assets and depreciated over the respectful useful lives. The Company analyzed the real estate acquisitions made during 2017 and determined the gross assets acquired are concentrated in a single identifiable asset. Prior to January 1, 2017, the Company recorded acquired real estate investments as business combinations when the real estate was occupied, at least in part, at acquisition. Costs directly related to the acquisition of such investments were expensed as incurred.

        The Company allocates the purchase price of real estate among land, building, improvements and intangibles, such as the value of above, below and at-market leases, and origination costs associated with in-place leases at the acquisition date. The Company assesses the fair value of the tangible assets of an acquired property by valuing the property as if it were vacant. The value, as determined, is allocated to land, building and improvements based on management's determination of the relative fair values of these assets.

        The Company assesses the fair value of the lease intangibles based on estimated cash flow projections that utilize appropriate discount rates and available market information. Such inputs are Level 3 in the fair value hierarchy. In valuing an acquired property's intangibles, factors considered by management include an estimate of carrying costs during the expected lease-up periods, such as real estate taxes, insurance, other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on its evaluation of current market demand. Management also estimates costs to execute similar leases, including leasing commissions and tenant improvements.

        The values of acquired above-market and below-market leases are recorded based on the present values (using discount rates which reflect the risks associated with the leases acquired) of the difference between the contractual amounts to be received and management's estimate of market lease rates, measured over the terms of the respective leases that management deemed appropriate at the time of the acquisitions. Such valuations include a consideration of the non-cancellable terms of the respective leases, as well as any applicable renewal period(s). The fair values associated with below-market rental renewal options are determined based on the Company's experience and the relevant facts and circumstances at the time of the acquisitions. The values of above-market leases are amortized as a reduction to rental income over the terms of the respective non-cancellable lease periods. The portion of the values of below-market leases are amortized as an increase to rental income over the terms of the respective non-cancellable lease periods. The portion of the values of the leases associated with below-market renewal options that management deemed are likely to be exercised by the tenant are amortized to rental income over such renewal periods. The value of other intangible assets (i.e., origination costs) is recorded to amortization expense over the remaining terms of the respective leases. If a lease were to be terminated prior to its contractual expiration date or not renewed, all unamortized amounts relating to that lease would be recognized in operations at that time. The estimated useful lives of intangible assets or liabilities generally range from one to 38 years.

Accounting for Long-Lived Assets and Impairment of Real Estate Owned

Accounting for Long-Lived Assets and Impairment of Real Estate Owned

        The Company reviews its real estate portfolio on a quarterly basis to ascertain if there are any indicators of impairment to the value of any of its real estate assets, including deferred costs and intangibles, to determine if there is any need for an impairment charge. In reviewing the portfolio, the Company examines one or more of the following: the type of asset, the current financial statements or other available financial information of the tenant, the economic situation in the area in which the asset is located, the economic situation in the industry in which the tenant is involved, the timeliness of the payments made by the tenant under its lease, and any current communication with the tenant, including property inspection reports. For each real estate asset owned for which indicators of impairment exist, management performs a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset to its carrying amount. If the aggregate undiscounted cash flows are less than the asset's carrying amount, an impairment loss is recorded to the extent that the estimated fair value is less than the asset's carrying amount. The estimated fair value is determined using a discounted cash flow model of the expected future cash flows through the useful life of the property. The analysis includes an estimate of the future cash flows that are expected to result from the real estate investment's use and eventual disposition. These cash flows consider factors such as expected future operating income, trends and prospects, the effects of leasing demand, competition and other factors.

Properties Held-for-Sale

Properties Held-for-Sale

        Real estate investments are classified as properties held-for-sale when management determines that the investment meets the applicable criteria. Real estate assets that are classified as held-for-sale are: (i) valued at the lower of carrying amount or the estimated fair value less costs to sell on an individual asset basis; and (ii) not depreciated.

Cash and Cash Equivalents

Cash and Cash Equivalents

        All highly liquid investments with original maturities of three months or less when purchased are considered to be cash equivalents.

Escrows

Escrows

        Real estate taxes, insurance and other escrows aggregating $460,000 and $387,000 at December 31, 2017 and 2016, respectively, are included in Escrow, deposits and other assets and receivables.

Depreciation and Amortization

Depreciation and Amortization

        Depreciation of buildings is computed on the straight-line method over an estimated useful life of 40 years. Depreciation of building improvements is computed on the straight-line method over the estimated useful life of the improvements. If the Company determines it is the owner of tenant improvements, the amounts funded to construct the tenant improvements are treated as a capital asset and depreciated over the lesser of the remaining lease term or the estimated useful life of the improvements on the straight-line method. Leasehold interest and the related ground lease payments are amortized over the initial lease term of the leasehold position. Depreciation expense (including amortization of a leasehold position, lease origination costs, and capitalized leasing commissions) was $20,993,000, $18,164,000 and $16,384,000 during 2017, 2016 and 2015, respectively.

Deferred Financing Costs

Deferred Financing Costs

        Mortgage and credit line costs are deferred and amortized on a straight-line basis over the terms of the respective debt obligations, which approximates the effective interest method. At December 31, 2017 and 2016, accumulated amortization of such costs was $2,804,000 and $2,090,000, respectively. The Company presents unamortized deferred financing costs as a direct deduction from the carrying amount of the associated debt liability.

Income Taxes

Income Taxes

        The Company is qualified as a real estate investment trust under the applicable provisions of the Internal Revenue Code. Under these provisions, the Company will not be subject to Federal, and generally, state and local income taxes, on amounts distributed to stockholders, provided it distributes at least 90% of its taxable income and meets certain other conditions.

        The Company follows a two-step approach for evaluating uncertain tax positions. Recognition (step one) occurs when an enterprise concludes that a tax position, based solely on its technical merits, is more-likely-than-not to be sustained upon examination. Measurement (step two) determines the amount of benefit that more-likely-than-not will be realized upon settlement. Derecognition of a tax position that was previously recognized would occur when a company subsequently determines that a tax position no longer meets the more-likely-than-not threshold of being sustained. The use of a valuation allowance as a substitute for derecognition of tax positions is prohibited. The Company has not identified any uncertain tax positions requiring accrual.

Concentration of Credit Risk

Concentration of Credit Risk

        The Company maintains cash accounts at various financial institutions. While the Company attempts to limit any financial exposure, substantially all of its deposit balances exceed federally insured limits. The Company has not experienced any losses on such accounts.

        The Company's properties are located in 30 states. During 2017, 2016 and 2015, 13.2%, 12.9% and 13.0% of total revenues, respectively, were attributable to real estate investments located in Texas which is the only state in which real estate investments contributed more than 10% to the Company's total revenues.

        No tenant contributed over 10% to the Company's total revenues during 2017, 2016 and 2015.

Segment Reporting

Segment Reporting

        Substantially all of the Company's real estate assets, at acquisition, are comprised of real estate owned that is leased to tenants on a long-term basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment.

Stock Based Compensation

Stock Based Compensation

        The fair value of restricted stock grants and restricted stock units, determined as of the date of grant, is amortized into general and administrative expense over the respective vesting period. The deferred compensation to be recognized as expense is net of certain forfeiture and performance assumptions which are re-evaluated quarterly. The Company recognizes the effect of forfeitures when they occur and previously recognized compensation expense shall be reversed in the period the grant or unit is forfeited. For share-based awards with a performance or market measure, we recognize compensation expense over the requisite service period. The requisite service period begins on the date the compensation committee of the Company's Board of Directors authorizes the award, adopts any relevant performance measures and communicates the award.

Derivatives and Hedging Activities

Derivatives and Hedging Activities

        The Company's objective in using interest rate swaps is to add stability to interest expense. The Company does not use derivatives for trading or speculative purposes.

        The Company records all derivatives on the consolidated balance sheets at fair value using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. In addition, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. These counterparties are generally large financial institutions engaged in providing a variety of financial services. These institutions generally face similar risks regarding adverse changes in market and economic conditions including, but not limited to, fluctuations in interest rates, exchange rates, equity and commodity prices and credit spreads.

        The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows are considered cash flow hedges. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in accumulated other comprehensive income (outside of earnings) and subsequently reclassified to earnings in the period in which the hedged transaction becomes ineffective. For derivatives not designated as cash flow hedges, changes in the fair value of the derivative are recognized directly in earnings in the period in which the change occurs; however, the Company's policy is to not enter into such transactions.

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

        The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of a tenant to make required rent and other payments. If the financial condition of a specific tenant were to deteriorate, adversely impacting its ability to make payments, additional allowances may be required.

Reclassifications

Reclassifications

        Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current year's presentation. Such reclassifications primarily relate to change the presentation of Gain on sale of real estate, net on the consolidated statement of operations for the years ended December 31, 2016 and 2015. The Company has included a caption for Income before gain on sale of real estate, net, to present gains and losses on sales of properties in accordance with the Securities and Exchange Commission Rule 3-15(a) of Regulation S-X. The change was made for the years ended December 31, 2016 and 2015 because, as prescribed by ASC 360-10-45-5, such gains from sale of real estate were not included as a component of Operating income. Such change was determined to be immaterial to the consolidated financial statements.

New Accounting Pronouncements

New Accounting Pronouncements

        In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the presentation and disclosure requirements for hedge accounting and changes how companies assess hedge effectiveness. This ASU is intended to more closely align hedge accounting with companies' risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In February 2017, the FASB issued ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope and application on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company has evaluated the new guidance and determined there will be no impact on the consolidated financial statements as the Company will be electing the practical expedient which is forward-looking to future sales. In addition, none of the Company's prior sales were partial sales and all were under closed contracts.

        In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the Emerging Issues Task Force), which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amount generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and early adoption is permitted. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The guidance replaces the current "incurred loss" model with an "expected loss" approach. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted after December 2018. The Company is evaluating the new guidance to determine if, and to the extent, it will impact the consolidated financial statements.

        In February 2016, the FASB issued ASU No. 2016-02, Leases, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and early adoption is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating this new standard. The Company anticipates adopting this guidance effective as of January 1, 2019 and will apply the modified retrospective approach.

        In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The standard can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. ASU 2014-09, ASU 2015-14 and ASU 2016-08 are herein collectively referred to as the "New Revenue Recognition Standards".

        The New Revenue Recognition Standards are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted but not before annual periods beginning after December 15, 2016. The Company anticipates adopting the New Revenue Recognition Standards effective as of January 1, 2018, and applying the cumulative-effect adoption method. The Company has evaluated its revenue streams, and as they are primarily related to leasing activities which are scoped out of the New Revenue Recognition Standards, it has determined that the adoption of such standards will not have a material impact on the consolidated financial statements and there will be no cumulative translation adjustments upon adoption.

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EARNINGS PER COMMON SHARE (Tables)

12 Months Ended

Dec. 31, 2017

EARNINGS PER COMMON SHARE

Schedule of diluted weighted average number of shares of common stock includes common stock underlying RSUs awarded

			Year Ended December 31,
	Number of underlying shares
			2017			2016		2015
2009 Incentive Plan		200,000		—	(a)		114,000		108,000
2016 Incentive Plan		76,250		71,478	(b)		—		—

(a)

RSUs with respect to 113,584 shares vested on June 30, 2017 and such shares were issued in August 2017.

(b)

Includes 33,353 shares that would be issued pursuant to a return on capital performance metric and 38,125 shares that would be issued pursuant to a stockholder return metric, assuming the end of the quarterly period was the June 30, 2020 vesting date. The remaining 4,772 shares awarded pursuant to the capital performance metric (of a total of 38,125 that were awarded on September 26, 2017) are not included.

Schedule of reconciliation of the numerator and denominator of earnings per share calculations

        The following table provides a reconciliation of the numerator and denominator of earnings per share calculations (amounts in thousands, except per share amounts):

	Year Ended December 31,
	2017			2016			2015
Numerator for basic and diluted earnings per share:
Net income	$	24,249		$	24,481		$	21,907
Less net income attributable to non-controlling interests		(102	)		(59	)		(1,390	)
Less earnings allocated to unvested restricted stock(a)		(1,072	)		(999	)		(852	)
Net income available for common stockholders: basic and diluted	$	23,075		$	23,423		$	19,665
Denominator for basic earnings per share:
Weighted average number of common shares		17,944			16,768			15,971
Effect of diluted securities:
RSUs		103			114			108
Denominator for diluted earnings per share:
Weighted average number of shares		18,047			16,882			16,079
Earnings per common share, basic	$	1.29		$	1.40		$	1.23
Earnings per common share, diluted	$	1.28		$	1.39		$	1.22
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests	$	24,147		$	24,422		$	20,517

(a)           Represents an allocation of distributed earnings to unvested restricted stock which, as participating securities, are entitled to receive dividends.

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REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS (Tables)

12 Months Ended

Dec. 31, 2017

REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS

Schedule of the Company's acquisitions of real estate

        The following charts detail the Company's acquisitions of real estate during 2017 and 2016 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs(a)
Forbo industrial facility, Huntersville, North Carolina	May 25, 2017	$	8,700	Cash and $5,190 mortgage(b)	$	72
Saddle Creek Logistics industrial facility, Pittston, Pennsylvania	June 9, 2017		11,750	All cash(c)		199
Corporate Woods industrial facility, Ankeny, Iowa	June 20, 2017		14,700	All cash(d)		29
Dufresne Spencer Group industrial facility, Memphis, Tennessee	October 10, 2017		8,000	All cash		87
Totals for 2017		$	43,150		$	387

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs(e)
Multi-tenant industrial facility, Greenville, South Carolina	March 30, 2016	$	8,100	All cash	$	80
Multi-tenant industrial facility, Greenville, South Carolina	March 30, 2016		8,950	All cash		81
Toro distribution facility, El Paso, Texas	June 3, 2016		23,695	All cash		72
4 Advanced Auto retail stores, Ohio	June 16, 2016		6,523	Cash and $4,300 mortgage(b)		80
Land—The Briarbrook Village Apartments, Wheaton, Illinois	August 2, 2016		10,530	All cash		—	(f)
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota	August 12, 2016		14,150	All cash		74
Land—The Vue Apartments, Beachwood, Ohio	August 16, 2016		13,896	All cash		—	(g)
Famous Footwear distribution facility, Lebanon, Tennessee	September 1, 2016		32,734	Cash and $21,288 mortgage(b)		195
Other costs(h)			—			14
Totals for 2016		$	118,578		$	596

(a)	Transaction costs incurred with these asset acquisitions were capitalized.
(b)	The new mortgage debt was obtained simultaneously with the acquisition of the property.
(c)	In August 2017, the Company obtained new mortgage debt of $7,200.
(d)	In July 2017, the Company obtained new mortgage debt of $8,820.
(e)	Included as an expense in Real estate acquisition costs in the accompanying consolidated statement of income.
(f)	Transaction costs aggregating $6 incurred with this asset acquisition were capitalized.
(g)	Transaction costs aggregating $5 incurred with this asset acquisition were capitalized.
(h)	Costs incurred for properties purchased in the previous year.

Schedule of allocation of the purchase price for the company's acquisitions of real estate

       The following charts detail the allocation of the purchase price for the Company's acquisitions of real estate during 2017 and 2016 (amounts in thousands):

							Intangible Lease
					Building Improvements
Description of Property	Land		Building				Asset		Liability			Total
Forbo industrial facility,
Huntersville, North Carolina	$	1,046	$	6,452	$	222	$	1,052	$	—		$	8,772
Saddle Creek Logistics industrial facility,
Pittston, Pennsylvania		999		9,675		247		1,028		—			11,949
Corporate Woods industrial facility,
Ankeny, Iowa		1,351		11,420		187		1,929		(158	)		14,729
Dufresne Spencer Group industrial facility,
Memphis, Tennessee		135		7,750		202		—		—			8,087
Totals for 2017	$	3,531	$	35,297	$	858	$	4,009	$	(158	)	$	43,537
Multi-tenant industrial facility,
Greenville, South Carolina	$	693	$	6,718	$	175	$	514	$	—		$	8,100
Multi-tenant industrial facility,
Greenville, South Carolina		528		7,893		181		441		(93	)		8,950
Toro distribution facility,
El Paso, Texas		3,691		17,525		379		2,100		—			23,695
4 Advanced Auto retail stores,
Ohio		653		5,012		189		912		(243	)		6,523
Land—The Briarbrook Village Apartments,
Wheaton, Illinois		10,536		—		—		—		—			10,536
Burlington Coat and Micro Center retail stores,
St. Louis Park, Minnesota		3,388		12,632		456		651		(2,977	)		14,150
Land—The Vue Apartments,
Beachwood, Ohio		13,901		—		—		—		—			13,901
Famous Footwear distribution facility,
Lebanon, Tennessee		2,094		29,436		603		3,576		(2,975	)		32,734
Totals for 2016	$	35,484	$	79,216	$	1,983	$	8,194	$	(6,288	)	$	118,589

Schedule of amortization of intangible lease assets as a result of acquired above market leases

        The unamortized balance of intangible lease assets as a result of acquired above market leases at December 31, 2017 will be deducted from rental income through 2032 as follows (amounts in thousands):

2018	$	748
2019		646
2020		620
2021		614
2022		448
Thereafter		1,217
Total	$	4,293

Schedule of amortization of intangible lease liabilities as a result of acquired below market leases

        The unamortized balance of intangible lease liabilities as a result of acquired below market leases at December 31, 2017 will be added to rental income through 2055 as follows (amounts in thousands):

2018	$	1,794
2019		1,781
2020		1,629
2021		1,593
2022		1,468
Thereafter		9,286
Total	$	17,551

Schedule of amortization of origination costs associated with in-place leases

        The unamortized balance of origination costs associated with in-place leases at December 31, 2017 will be charged to amortization expense through 2055 as follows (amounts in thousands):

2018	$	4,056
2019		3,669
2020		3,435
2021		3,168
2022		2,672
Thereafter		9,232
Total	$	26,232

Schedule of minimum future contractual rents to be received

        The minimum future contractual rents to be received over the next five years and thereafter on non-cancellable operating leases in effect at December 31, 2017 are as follows (amounts in thousands):

2018	$	64,412
2019		62,360
2020		60,035
2021		56,965
2022		47,434
Thereafter		176,838
Total	$	468,044

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SALES OF PROPERTIES AND IMPAIRMENT LOSS (Tables)

12 Months Ended

Dec. 31, 2017

SALES OF PROPERTIES AND IMPAIRMENT LOSS

Schedule of sale of real estate property

        The following chart details the Company's sales of real estate during 2017 and 2016 (amounts in thousands):

Description of Property	Date Sold	Gross Sales Price		Gain on Sale of Real Estate, Net
Retail property,
Greenwood Village, Colorado	May 8, 2017	$	9,500	$	6,568
Retail property,
Kansas City, Missouri(a)	July 14, 2017		10,250		2,180
Retail property,
Niles, Illinois	August 31, 2017		5,000		1,089
Restaurant property,
Ann Arbor, Michigan(a)(b)	November 14, 2017		2,300		—
Totals for 2017		$	27,050	$	9,837
Portfolio of eight retail properties,
Louisiana and Mississippi	February 1, 2016	$	13,750	$	787
Retail property,
Killeen, Texas	May 19, 2016		3,100		980
Land,
Sandy Springs, Georgia	June 15, 2016		8,858		2,331
Industrial property,
Tomlinson, Pennsylvania	June 30, 2016		14,800		5,660
Retail property,
Island Park, NY	December 22, 2016		2,702		213
			43,210		9,971
Partial condemnation of land,
Greenwood Village, Colorado(c)	July 5, 2016		153		116
Totals for 2016		$	43,363	$	10,087

(a)	See Note 11 for information on the payoff of the mortgage on this property and the early termination of the interest rate swap derivative.
(b)	See "—Impairment Loss" for additional information.
(c)	Represents amount received from the Colorado Department of Transportation ("CDOT"), as a result of a partial condemnation of land and easements obtained by CDOT.

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VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES (Tables)

12 Months Ended

Dec. 31, 2017

Unconsolidated JV

Schedule of Variable Interest Entities through Ground Leases and Carrying Amount and Maximum Exposure to Loss

        The following chart details the Company's VIEs through its ground leases and the aggregate carrying amount and maximum exposure to loss as of December 31, 2017 (dollars in thousands):

Description of Property(a)	Date Acquired	Land Contract Purchase Price		# Units in Apartment Complex		Owner/ Operator Mortgage from Third Party(b)			Type of Exposure	Carrying Amount and Maximum Exposure to Loss
The Meadows Apartments,
Lakemoor, Illinois	March 24, 2015	$	9,300		496	$	51,380	(c)	Land	$	9,592
The Briarbrook Village Apartments,
Wheaton, Illinois	August 2, 2016		10,530		342		39,411		Land		10,536
The Vue Apartments,
Beachwood, Ohio	August 16, 2016		13,896		348		67,444		Land		13,901
Totals		$	33,726		1,186	$	158,235			$	34,029

(a)	Simultaneously with each purchase, the Company entered into a triple net ground lease with affiliates of Strategic Properties of North America, the owner/operators of these properties.
(b)	Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party which, together with the Company's purchase of the land, provided substantially all of the funds to acquire the complex. The Company provided its land as collateral for the respective owner/operator's mortgage loans; accordingly, each land position is subordinated to the applicable mortgage. No other financial support has been provided by the Company to the owner/operator.
(c)	In November 2017, the owner/operator closed on a $7,556 supplemental mortgage (the original mortgage was for $43,824). In connection therewith, the Company agreed to subordinate its fee interest to this second mortgage in exchange for a payment by the owner/operator to the Company of $5,906 as a fixed rent payment which was recorded as deferred income and will be included in rental income over the term of the lease.

Consolidated JV

Summary of our variable interests in identified VIEs

        The following is a summary of the consolidated VIEs' carrying amounts and classification in the Company's consolidated balance sheets, none of which are restricted (amounts in thousands):

	December 31,
	2017			2016
Land	$	17,844		$	17,844
Buildings and improvements, net of accumulated depreciation of $3,811 and $2,732, respectively		31,789			32,535
Cash		1,145			1,796
Unbilled rent receivable		1,011			775
Unamortized intangible lease assets, net		1,241			1,595
Escrow, deposits and other assets and receivables		948			1,355
Mortgages payable, net of unamortized deferred financing costs of $442 and $539, respectively		32,252			33,121
Accrued expenses and other liabilities		870			893
Unamortized intangible lease liabilities, net		2,015			2,200
Accumulated other comprehensive loss		(1	)		(70	)
Non-controlling interests in consolidated joint ventures		1,742			1,794

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DEBT OBLIGATIONS (Tables)

12 Months Ended

Dec. 31, 2017

DEBT OBLIGATIONS

Schedule of Mortgages payable, net

        The following table details the Mortgages payable, net, balances per the consolidated balance sheets (amounts in thousands):

	December 31,
	2017			2016
Mortgages payable, gross	$	396,946		$	399,192
Unamortized deferred financing costs		(3,789	)		(4,294	)
Mortgages payable, net	$	393,157		$	394,898

Schedule of principal repayments

        Scheduled principal repayments during the next five years and thereafter are as follows (amounts in thousands):

Year Ending December 31,
2018(a)	$	24,871
2019		14,610
2020		11,901
2021		20,742
2022		43,771
Thereafter		281,051
Total	$	396,946

(a)           Includes $4,423 related to a mortgage loan that was paid off on a property sold in January 2018.

Schedule of Line of credit, net

        The following table details the Line of credit, net, balances per the consolidated balance sheets (amounts in thousands):

	December 31,
	2017			2016
Line of credit, gross	$	9,400		$	10,000
Unamortized deferred financing costs		(624	)		(936	)
Line of credit, net	$	8,776		$	9,064

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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2017

FAIR VALUE MEASUREMENTS

Schedule of derivative financial instruments measured at fair value, using Level 2 inputs

        The fair value of the Company's derivative financial instruments, using Level 2 inputs, was determined to be the following (amounts in thousands):

	As of December 31,		Carrying and Fair Value
Financial assets:
Interest rate swaps		2017	$	1,615
		2016		1,257
Financial liabilities:
Interest rate swaps		2017	$	1,492
		2016		2,695

Schedule of effect of derivative financial instruments on statements of income

        The following table presents the effect of the Company's derivative financial instruments on the consolidated statements of income for the periods presented (amounts in thousands):

	Year Ended December 31,
	2017			2016			2015
One Liberty Properties Inc. and Consolidated Subsidiaries
Amount of (loss) gain recognized on derivatives in Other comprehensive income (loss)	$	(221	)	$	255		$	(3,722	)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Interest expense		(1,786	)		(2,624	)		(2,554	)
Unconsolidated Joint Ventures (Company's share)
Amount of gain (loss) recognized on derivatives in Other comprehensive income (loss)	$	15		$	(31	)	$	(109	)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Equity in earnings of unconsolidated joint ventures		(61	)		(95	)		(108	)

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STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2017

STOCKHOLDERS' EQUITY

Summary of the activity of the equity incentive plans

        The following is a summary of the activity of the equity incentive plans:

	Years Ended December 31,
	2017			2016			2015
Restricted stock:
Number of shares		140,100			139,225			129,975
Average per share grant price	$	24.75		$	21.74		$	24.60
Deferred compensation to be recognized over vesting period	$	3,467,000		$	3,027,000		$	3,197,000
Number of non-vested shares:
Non-vested beginning of year		591,750			538,755			480,995
Grants		140,100			139,225			129,975
Vested during year		(118,450	)		(85,730	)		(72,215	)
Forfeitures		(500	)		(500	)		—
Non-vested end of year		612,900			591,750			538,755
RSU grants:
Number of underlying shares		76,250			—			—
Average per share grant price	$	24.03			—			—
Deferred compensation to be recognized over vesting period	$	1,004,000			—			—
Number of non-vested shares:
Non-vested beginning of year		200,000			200,000			200,000
Grants		76,250			—			—
Vested during year		(113,584	)		—			—
Forfeitures		(86,416	)		—			—
Non-vested end of year		76,250			200,000			200,000
Restricted stock and RSU grants:
Weighted average per share value of non-vested shares (based on grant price)	$	22.89		$	17.95		$	17.12
Value of stock vested during the year (based on grant price)	$	3,008,000		$	1,451,500		$	612,000
Weighted average per share value of shares forfeited during the year (based on grant price)	$	8.37		$	21.05		$	—
Total charge to operations:
Outstanding restricted stock grants	$	2,966,000		$	2,692,000		$	2,204,000
Outstanding RSUs		167,000			291,000			130,000
Total charge to operations	$	3,133,000		$	2,983,000		$	2,334,000

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INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

INCOME TAXES

Schedule of reconciliation of cash dividends paid with the dividends paid deduction

        The following table reconciles cash dividends paid with the dividends paid deduction for the years indicated (amounts in thousands):

	2017 Estimate			2016 Actual			2015 Actual
Dividends paid	$	32,393		$	29,135		$	26,179
Dividend reinvestment plan(a)		252			181			228
		32,645			29,316			26,407
Less: Spillover dividends designated to previous year		(11,916	)		(15,209	)		(18,177	)
Plus: Dividends designated from following year		10,263			11,916			15,209
Dividends paid deduction	$	30,992		$	26,023		$	23,439

(a)           Reflects the up to 5% discount on common stock purchased through the dividend reinvestment plan.

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QUARTERLY FINANCIAL DATA (Unaudited): (Tables)

12 Months Ended

Dec. 31, 2017

QUARTERLY FINANCIAL DATA (Unaudited):

Schedule of Quarterly Financial Information

                                                  (In Thousands, Except Per Share Data)

	Quarter Ended
									Total For Year
2017	March 31		June 30		Sept. 30		Dec. 31
Total revenues	$	18,472	$	18,413	$	19,137	$	19,894	$	75,916
Gain on sale of real estate, net	$	—	$	6,568	$	3,269	$	—	$	9,837
Net income	$	2,886	$	9,993	$	7,128	$	4,242	$	24,249
Net income attributable to One Liberty Properties, Inc.	$	2,865	$	9,972	$	7,105	$	4,205	$	24,147
Weighted average number of common shares outstanding:
Basic		17,751		17,824		18,000		18,198		17,944
Diluted		17,865		17,938		18,079		18,269		18,047
Net income per common share attributable to common stockholders:
Basic	$	.15	$	.54	$	.38	$	.22	$	1.29	(a)
Diluted	$	.15	$	.54	$	.38	$	.22	$	1.28	(a)

	Quarter Ended
									Total For Year
2016	March 31		June 30		Sept. 30		Dec. 31
Total revenues	$	16,344	$	17,233	$	18,021	$	18,990	$	70,588
Gain on sale of real estate, net	$	787	$	8,918	$	119	$	263	$	10,087
Net income	$	3,285	$	12,459	$	4,323	$	4,414	$	24,481
Net income attributable to One Liberty Properties, Inc.	$	3,287	$	12,441	$	4,299	$	4,395	$	24,422
Weighted average number of common shares outstanding:
Basic		16,388		16,579		16,845		17,255		16,768
Diluted		16,495		16,686		16,962		17,369		16,882
Net income per common share attributable to common stockholders:
Basic	$	.19	$	.72	$	.24	$	.24	$	1.40	(a)
Diluted	$	.18	$	.72	$	.24	$	.24	$	1.39	(a)

(a)           Calculated on weighted average shares outstanding for the year.

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ORGANIZATION AND BACKGROUND (Details)	Dec. 31, 2017 state property
Organization and Background
Number of real estate properties	119
Number of states in which properties are located | state	30
Properties owned by consolidated joint ventures
Organization and Background
Number of real estate properties	6
Properties owned by unconsolidated joint ventures
Organization and Background
Number of real estate properties	5

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SIGNIFICANT ACCOUNTING POLICIES - Principles of Consolidation (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Investment in Joint Ventures and Variable Interest Entities
Number of Unconsolidated Joint Venture VIEs | item	0
Recourse debt of joint venture	$ 0
Impairment charge relating to investments in unconsolidated joint ventures	0
Revenue Recognition
Additional rental income for the reimbursement of expenses	$ 7,672,000	$ 6,424,000	$ 3,852,000
Purchase Accounting for Acquisition of Real Estate
Estimated useful lives of intangible assets, minimum	1 year
Estimated useful lives of building and intangible assets, maximum	38 years
Escrow, Deposits and Other Assets and Receivables
Real estate taxes, insurance and other escrows	$ 460,000	$ 387,000

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SIGNIFICANT ACCOUNTING POLICIES - Depreciation and Amortization (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Depreciation and Amortization
Depreciation and amortization	$ 20,993,000	$ 18,164,000	$ 16,384,000
Deferred Financing Costs
Accumulated amortization of deferred financing costs	$ 2,804,000	$ 2,090,000
Commercial properties
Depreciation and Amortization
Estimated useful life	40 years

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SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details)	12 Months Ended
	Dec. 31, 2017 state tenant item	Dec. 31, 2016 tenant	Dec. 31, 2015 tenant
Concentration of Credit Risk
Number of states in which properties are located | state	30
Segment Reporting
Number of operating segments | item	1
Rental income | Geographic concentration | Texas
Concentration of Credit Risk
Concentration risk percentage	13.20%	12.90%	13.00%
Rental income | Customer concentration
Concentration of Credit Risk
Number of tenants contributed over 10% of total revenues | tenant	0	0	0

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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								6 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Outstanding options at the end of the period (in shares)	0				0					0	0	0
Numerator for basic and diluted earnings per share:
Net income	$ 4,242	$ 7,128	$ 9,993	$ 2,886	$ 4,414	$ 4,323	$ 12,459	$ 3,285		$ 24,249	$ 24,481	$ 21,907
Less net income attributable to non-controlling interests										(102)	(59)	(1,390)
Less earnings allocated to unvested restricted stock										(1,072)	(999)	(852)
Net income available for common stockholders, basic										23,075	23,423	19,665
Net income available for common stockholders, diluted										$ 23,075	$ 23,423	$ 19,665
Denominator for basic earnings per share:
Weighted average number of common shares	18,198,000	18,000,000	17,824,000	17,751,000	17,255,000	16,845,000	16,579,000	16,388,000		17,944,000	16,768,000	15,971,000
Effect of diluted securities:
RSUs										103,000	114,000	108,000
Denominator for diluted earnings per share: weighted average number of shares										18,047,000	16,882,000	16,079,000
Earnings per common share, basic	$ 0.22	$ 0.38	$ 0.54	$ 0.15	$ 0.24	$ 0.24	$ 0.72	$ 0.19		$ 1.29	$ 1.40	$ 1.23
Earnings per common share, diluted	$ 0.22	$ 0.38	$ 0.54	$ 0.15	$ 0.24	$ 0.24	$ 0.72	$ 0.18		$ 1.28	$ 1.39	$ 1.22
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests	$ 4,205	$ 7,105	$ 9,972	$ 2,865	$ 4,395	$ 4,299	$ 12,441	$ 3,287		$ 24,147	$ 24,422	$ 20,517
2009 Incentive Plan
Number of underlying shares										200,000
Effect of diluted securities:
RSUs									113,584		114,000	108,000
2016 Incentive Plan
Number of underlying shares										76,250
Number of shares included in diluted weighted average number of shares pursuant to return on capital performance metric										33,353
Number of shares included in diluted weighted average number of shares pursuant to stockholder return metric										38,125
Number of shares not included in diluted weighted average number of shares pursuant to return on capital performance metric										4,772
Effect of diluted securities:
RSUs										71,478

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REAL ESTATE INVESTMENTS AND MINIMUM FUTURE RENTALS (Details) - USD ($)		1 Months Ended		12 Months Ended
	Mar. 31, 2015	Aug. 31, 2017	Jul. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Real Estate Acquisitions
Contract purchase price (real estate)				$ 43,150,000	$ 118,578,000
Third Party Real Estate Acquisition Costs					596,000	$ 449,000
Third Party Real Estate Acquisition Costs				387,000
Allocation of purchase price for the company's real estate acquisitions
Land				3,531,000	35,484,000
Building				35,297,000	79,216,000
Building Improvements				858,000	1,983,000
Intangible Lease Asset				4,009,000	8,194,000
Intangible Lease Liability				(158,000)	(6,288,000)
Total				$ 43,537,000	$ 118,589,000
Weighted average amortization period for intangible lease assets				6 years 9 months 18 days	9 years 3 months 18 days
Weighted average amortization period for intangible lease liabilities				12 years 2 months 12 days	13 years
Above market lease accumulated amortization				$ 17,542,000	$ 16,074,000
Below market lease accumulated amortization				7,849,000	6,386,000
Net rental income due to amortization of the above/below market leases				897,000	712,000	723,000
Future amortization income of below market leases
Deferred rental income				3,623,000	2,379,000	1,458,000
Minimum future contractual rents to be received
2018				64,412,000
2019				62,360,000
2020				60,035,000
2021				56,965,000
2022				47,434,000
Thereafter				176,838,000
Total				468,044,000
Unbilled Rent Receivable
Unbilled rent receivable				$ 14,125,000	13,797,000
Period during which amount of unbilled rent receivable is to be billed and received				24 years
Unbilled straight-line rent receivable written off related to property sold				$ 105,000	2,060,000
Unbilled rent straight-line rent receivable written off related to tenant filed bankruptcy				362,000	7,000	89,000
Unbilled straight-line rent receivable written off related to lease termination fees						477,000
Lease Termination Fees
Lease termination fee received from tenants in a lease buy-out transaction						2,886,000
Write-off of entire balance of the unbilled rent receivable and the intangible lease asset						530,000
Purchase of Partner's 50% Interest
Purchase of partner's interest in unconsolidated joint venture						6,300,000
Rental income
Future amortization income of below market leases
2018				1,794,000
2019				1,781,000
2020				1,629,000
2021				1,593,000
2022				1,468,000
Thereafter				9,286,000
Total				17,551,000
Amortization expense
Allocation of purchase price for the company's real estate acquisitions
Amortization expense relating to origination costs				4,984,000	3,612,000	$ 3,467,000
Amortization of intangible lease assets
2018				4,056,000
2019				3,669,000
2020				3,435,000
2021				3,168,000
2022				2,672,000
Thereafter				9,232,000
Total				26,232,000
Intangible lease asset - above market lease | Rental income
Amortization of intangible lease assets
2018				748,000
2019				646,000
2020				620,000
2021				614,000
2022				448,000
Thereafter				1,217,000
Total				4,293,000
Forbo industrial facility, Huntersville, North Carolina
Real Estate Acquisitions
Contract purchase price (real estate)				8,700,000
Mortgage incurred				5,190,000
Third Party Real Estate Acquisition Costs				72,000
Allocation of purchase price for the company's real estate acquisitions
Land				1,046,000
Building				6,452,000
Building Improvements				222,000
Intangible Lease Asset				1,052,000
Total				8,772,000
Saddle Creek Logistics industrial facility, Pittston, Pennsylvania
Real Estate Acquisitions
Contract purchase price (real estate)				11,750,000
Mortgage incurred		$ 7,200,000
Third Party Real Estate Acquisition Costs				199,000
Allocation of purchase price for the company's real estate acquisitions
Land				999,000
Building				9,675,000
Building Improvements				247,000
Intangible Lease Asset				1,028,000
Total				11,949,000
Corporate Woods industrial facility, Ankeny, Iowa
Real Estate Acquisitions
Contract purchase price (real estate)				14,700,000
Mortgage incurred			$ 8,820,000
Third Party Real Estate Acquisition Costs				29,000
Allocation of purchase price for the company's real estate acquisitions
Land				1,351,000
Building				11,420,000
Building Improvements				187,000
Intangible Lease Asset				1,929,000
Intangible Lease Liability				(158,000)
Total				14,729,000
Dufresne Spencer Group industrial facility, Memphis, Tennessee
Real Estate Acquisitions
Contract purchase price (real estate)				8,000,000
Third Party Real Estate Acquisition Costs				87,000
Allocation of purchase price for the company's real estate acquisitions
Land				135,000
Building				7,750,000
Building Improvements				202,000
Total				$ 8,087,000
Multi-tenant industrial facility, Greenville, South Carolina - 1
Real Estate Acquisitions
Contract purchase price (real estate)					8,100,000
Third Party Real Estate Acquisition Costs					80,000
Allocation of purchase price for the company's real estate acquisitions
Land					693,000
Building					6,718,000
Building Improvements					175,000
Intangible Lease Asset					514,000
Total					8,100,000
Multi-tenant industrial facility, Greenville, South Carolina - 2
Real Estate Acquisitions
Contract purchase price (real estate)					8,950,000
Third Party Real Estate Acquisition Costs					81,000
Allocation of purchase price for the company's real estate acquisitions
Land					528,000
Building					7,893,000
Building Improvements					181,000
Intangible Lease Asset					441,000
Intangible Lease Liability					(93,000)
Total					8,950,000
Toro distribution facility, El Paso, Texas
Real Estate Acquisitions
Contract purchase price (real estate)					23,695,000
Third Party Real Estate Acquisition Costs					72,000
Allocation of purchase price for the company's real estate acquisitions
Land					3,691,000
Building					17,525,000
Building Improvements					379,000
Intangible Lease Asset					2,100,000
Total					23,695,000
4 Advanced Auto retail locations, Ohio
Real Estate Acquisitions
Contract purchase price (real estate)					6,523,000
Third Party Real Estate Acquisition Costs					80,000
Mortgage incurred					4,300,000
Allocation of purchase price for the company's real estate acquisitions
Land					653,000
Building					5,012,000
Building Improvements					189,000
Intangible Lease Asset					912,000
Intangible Lease Liability					(243,000)
Total					6,523,000
The Briarbrook Village Apartments Wheaton, Illinois
Real Estate Acquisitions
Contract purchase price (real estate)					10,530,000
Third Party Real Estate Acquisition Costs					6,000
Allocation of purchase price for the company's real estate acquisitions
Land					10,536,000
Total					10,536,000
Burlington Coat and Micro Center retail stores, St. Louis Park, Minnesota
Real Estate Acquisitions
Contract purchase price (real estate)					14,150,000
Third Party Real Estate Acquisition Costs					74,000
Allocation of purchase price for the company's real estate acquisitions
Land					3,388,000
Building					12,632,000
Building Improvements					456,000
Intangible Lease Asset					651,000
Intangible Lease Liability					(2,977,000)
Total					14,150,000
The Vue Apartments, Beachwood, Ohio
Real Estate Acquisitions
Contract purchase price (real estate)					13,896,000
Third Party Real Estate Acquisition Costs					5,000
Allocation of purchase price for the company's real estate acquisitions
Land					13,901,000
Total					13,901,000
Famous Footwear distribution facility, Lebanon, Tennessee
Real Estate Acquisitions
Contract purchase price (real estate)					32,734,000
Third Party Real Estate Acquisition Costs					195,000
Mortgage incurred					21,288,000
Allocation of purchase price for the company's real estate acquisitions
Land					2,094,000
Building					29,436,000
Building Improvements					603,000
Intangible Lease Asset					3,576,000
Intangible Lease Liability					(2,975,000)
Total					32,734,000
Represents the retail property located in Lincoln, Nebraska acquired by the entity.
Purchase of Partner's 50% Interest
Purchase of partner's interest in unconsolidated joint venture	$ 6,300,000
Contract price directly paid to the partner of unconsolidated joint venture	2,636,000
payment made to underlying mortgage of the unconsolidated joint venture	$ 3,664,000
Represents the retail property located in Lincoln, Nebraska acquired by the entity. | Unconsolidated joint ventures
Purchase of Partner's 50% Interest
Percentage of equity method investments acquired	50.00%
Represents the retail property located in Lincoln, Nebraska acquired by the entity. | Consolidated JV
Purchase of Partner's 50% Interest
Purchase price fair value adjustment	$ 960,000
Other (n)
Real Estate Acquisitions
Third Party Real Estate Acquisition Costs					$ 14,000

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SALES OF PROPERTIES AND IMPAIRMENT LOSS (Details)		1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Jan. 30, 2018 USD ($)	Jan. 31, 2015 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) property	Dec. 31, 2015 USD ($)
Sale of Properties
Net Sales price					$ 27,050,000	$ 43,363,000
Gain on Sales of Real Estate, Net					9,837,000	10,087,000
Total sales price, net of closing costs					26,301,000	42,312,000	$ 16,025,000
Mortgage loan paid off					12,936,000	63,726,000	27,967,000
Impairment loss					153,000
Retail property, Greenwood Village, Colorado
Sale of Properties
Net Sales price					9,500,000
Gain on Sales of Real Estate, Net					6,568,000
Retail Property, Kansas City, Missouri
Sale of Properties
Net Sales price					10,250,000
Gain on Sales of Real Estate, Net					2,180,000
Retail Property, Niles Illinois
Sale of Properties
Net Sales price					5,000,000
Gain on Sales of Real Estate, Net					1,089,000
Restaurant property, Ann Arbor, Michigan
Sale of Properties
Net Sales price					$ 2,300,000
Portfolio of eight retail properties, Louisiana and Mississippi
Sale of Properties
Net Sales price						13,750,000
Gain on Sales of Real Estate, Net						$ 787,000
Number of real estate properties sold | property						8
Retail property, Killeen, Texas
Sale of Properties
Net Sales price						$ 3,100,000
Gain on Sales of Real Estate, Net						980,000
Land, Sandy Springs, Georgia
Sale of Properties
Net Sales price						8,858,000
Gain on Sales of Real Estate, Net						2,331,000
Industrial property, Tomlinson, Pennsylvania
Sale of Properties
Net Sales price						14,800,000
Gain on Sales of Real Estate, Net						5,660,000
Retail property, Island Park, NY
Sale of Properties
Net Sales price						2,702,000
Gain on Sales of Real Estate, Net						213,000
Properties excluding Partial condemnation of land, Greenwood Village, Colorado
Sale of Properties
Net Sales price						43,210,000
Gain on Sales of Real Estate, Net						9,971,000
Partial condemnation of land, Greenwood Village, Colorado
Sale of Properties
Net Sales price						153,000
Gain on Sales of Real Estate, Net						$ 116,000
Property located in Cherry Hill, NJ | Consolidated JV | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Sale of Properties
Gain on Sales of Real Estate, Net							$ 5,392,000
Total sales price, net of closing costs		$ 16,025,000
Mortgage balance paid off		7,376,000
Swap termination expense		472,000
Property located in Cherry Hill, NJ | Consolidated JV | Non-Controlling Interests in Consolidated Joint Ventures | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Sale of Properties
Non-controlling interest's share of the gain from the transaction		$ 1,320,000
Property located in Fort Bend, Texas | Consolidated JV | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Sale of Properties
Net Sales price	$ 9,000,000
Gain on Sales of Real Estate, Net			$ 2,400,000
Ownership percentage	85.00%
Mortgage loan paid off	$ 4,400,000
Rental revenue to property accounted percentage					1.20%	1.20%	1.20%
Property located in Fort Bend, Texas | Consolidated JV | Non-Controlling Interests in Consolidated Joint Ventures | Disposal Group, Disposed of by Sale, Not Discontinued Operations
Sale of Properties
Non-controlling interest's share of the gain from the transaction	$ 800,000
Joe's Crab Shack restaurant Ann Arbor, Michigan
Sale of Properties
Impairment loss				$ 153,000

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ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) tenant property	Dec. 31, 2016 USD ($) tenant	Dec. 31, 2015 USD ($) tenant
Allowance for Doubtful Accounts
Balance in allowance for doubtful accounts	$ 0	$ 0
Bad debt expense	$ 291,000	$ 98,000
Number of tenants related to rental income and reimbursements due recorded as bad debt expense | tenant	5	5	5
Write-off of unbilled rent receivable	$ 362,000	$ 7,000	$ 566,000
Number of properties sold | property	3
Number of properties re-tenanted | property	1
Impairment loss	$ 153,000
Net book value of property	2,118,000
Properties that filed for Chapter 11 bankruptcy
Allowance for Doubtful Accounts
Write-off of unbilled rent receivable	362,000	7,000	89,000
Write-off of unamortized intangible lease assets and liabilities	67,000	0	124,000
Write off of tenant origination costs	884,000	$ 0	$ 380,000
Impairment loss	$ 0

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VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES - Ground Leases (Details)	1 Months Ended	12 Months Ended
	Nov. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Variable Interest Entities
Number of VIEs through ground leases | item		3
Owner/operator closed supplemental mortgage	$ 7,556,000
Owner/operator closed original mortgage	43,824,000
Fixed rent payment resulting from second mortgage	$ 5,906,000
Cash Reserves - ground lease		$ 443,000	$ 643,000
The Meadows Apartments, Lakemoor, Illinois; Briarbrook Village Apartments, Wheaton, Illinois and Vue Apartments, Beachwood, Ohio
Variable Interest Entities
Land Contract Purchase Price		$ 33,726,000
Units in Apartment Complex | item		1,186
Owner/ Operator Mortgage from Third Party		$ 158,235,000
Carrying Amount and Maximum Exposure to Loss		34,029,000
The Meadows Apartments, Lakemoor, Illinois
Variable Interest Entities
Land Contract Purchase Price		$ 9,300,000
Units in Apartment Complex | item		496
Owner/ Operator Mortgage from Third Party		$ 51,380,000
The Meadows Apartments, Lakemoor, Illinois | Land
Variable Interest Entities
Carrying Amount and Maximum Exposure to Loss		9,592,000
The Briarbrook Village Apartments Wheaton, Illinois
Variable Interest Entities
Land Contract Purchase Price		$ 10,530,000
Units in Apartment Complex | item		342
Owner/ Operator Mortgage from Third Party		$ 39,411,000
The Briarbrook Village Apartments Wheaton, Illinois | Land
Variable Interest Entities
Carrying Amount and Maximum Exposure to Loss		10,536,000
The Vue Apartments, Beachwood, Ohio
Variable Interest Entities
Land Contract Purchase Price		$ 13,896,000
Units in Apartment Complex | item		348
Owner/ Operator Mortgage from Third Party		$ 67,444,000
The Vue Apartments, Beachwood, Ohio | Land
Variable Interest Entities
Carrying Amount and Maximum Exposure to Loss		13,901,000
The Meadows Apartments, Lakemoor, Illinois; Briarbrook Village Apartments, Wheaton, Illinois; Vue Apartments, Beachwood, Ohio and River Crossing Apartments, Sandy Springs, Georgia
Variable Interest Entities
Revenue from the ground lease		$ 3,702,000	2,361,000	$ 1,280,000
River Crossing Apartments, Sandy Springs, Georgia
Variable Interest Entities
Revenue from the ground lease			$ 308,000	$ 419,000

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VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES - Consolidated Joint Ventures (Details) - Consolidated JV	12 Months Ended
	Dec. 31, 2017 item
Variable Interest Entities
Number of joint ventures with controlling interest	6
Consolidated VIE entities
Variable Interest Entities
Number of joint ventures with controlling interest	6
Minimum
Variable Interest Entities
Ownership interest in consolidated joint venture of the company (as a percent)	85.00%
Maximum
Variable Interest Entities
Ownership interest in consolidated joint venture of the company (as a percent)	95.00%

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VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES - Summary of Consolidated VIE's (Details) - USD ($) $ in Thousands		Dec. 31, 2017	Dec. 31, 2016
Consolidated VIEs Carrying Amount of Assets and Liabilities
Land		$ 3,531	$ 35,484
Unbilled rent receivable		14,125	13,797
Unamortized intangible lease assets, net		30,525	32,645
Escrow, deposits and other assets and receivables		6,630	6,894
Mortgages payable, net of unamortized deferred financing costs of $442 and $539, respectively		393,157	394,898
Accrued expenses and other liabilities		16,107	10,470
Unamortized intangible lease liabilities, net		17,551	19,280
Accumulated other comprehensive income (loss)		155	(1,479)
Non-controlling interests in consolidated joint ventures	[1]	1,742	1,794
Consolidated VIE entities
Consolidated VIEs Carrying Amount of Assets and Liabilities
Restricted assets		0	0
Land		17,844	17,844
Buildings and improvements, net of accumulated depreciation of $3,811 and $2,732, respectively		31,789	32,535
Cash		1,145	1,796
Unbilled rent receivable		1,011	775
Unamortized intangible lease assets, net		1,241	1,595
Escrow, deposits and other assets and receivables		948	1,355
Mortgages payable, net of unamortized deferred financing costs of $442 and $539, respectively		32,252	33,121
Accrued expenses and other liabilities		870	893
Unamortized intangible lease liabilities, net		2,015	2,200
Accumulated other comprehensive income (loss)		(1)	(70)
Non-controlling interests in consolidated joint ventures		1,742	1,794
Accumulated depreciation		3,811	2,732
Unamortized deferred financing costs		$ 442	$ 539

[1] The Company’s consolidated balance sheets include assets and liabilities of consolidated variable interest entities (“VIEs”). See Note 7. The consolidated balance sheets include the following amounts related to the Company’s consolidated VIEs: $17,844 and $17,844 of land, $31,789 and $32,535 of building and improvements, net of $3,811 and $2,732 of accumulated depreciation, $4,345 and $5,521 of other assets included in other line items, $32,252 and $33,121 of real estate debt, net, $2,885 and $3,093 of other liabilities included in other line items, and $1,742 and $1,794 of non-controlling interests as of December 31, 2017 and 2016, respectively.

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VARIABLE INTEREST ENTITIES, CONTINGENT LIABILITIES AND CONSOLIDATED JOINT VENTURES - MCB Real Estate, LLC (Details)		1 Months Ended	12 Months Ended
	Oct. 31, 2016 USD ($)	Oct. 31, 2016	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)
Consolidated VIEs Carrying Amount of Assets and Liabilities
Investment in unconsolidated joint ventures			$ 10,723,000	$ 10,833,000
Purchase of non-controlling interest				(446,000)
Payment made to purchase partner's interest in consolidated joint venture				446,000
Consolidated JV
Consolidated VIEs Carrying Amount of Assets and Liabilities
Number of joint ventures with controlling interest | item			6
Other Consolidated JV
Consolidated VIEs Carrying Amount of Assets and Liabilities
Number of joint ventures with controlling interest | item			2
Investment in consolidated joint ventures			$ 7,395,000	7,440,000
MCB Real Estate LLC And Its Affiliates
Consolidated VIEs Carrying Amount of Assets and Liabilities
Investment in unconsolidated joint ventures			8,245,000
MCB Real Estate LLC And Its Affiliates | Consolidated JV
Consolidated VIEs Carrying Amount of Assets and Liabilities
Investment in unconsolidated joint ventures			$ 9,705,000	10,522,000
Number of joint ventures with controlling interest | item			4
MCB Real Estate LLC And Its Affiliates | Consolidated JV | Deptford, New Jersey
Consolidated VIEs Carrying Amount of Assets and Liabilities
Purchase of Minority Interest Percentage	5.00%	5.00%
Equity Method Investment Ownership Percentage Control Obtained	100.00%
Payment made to purchase partner's interest in consolidated joint venture	$ 446,000
Paid-in Capital
Consolidated VIEs Carrying Amount of Assets and Liabilities
Purchase of non-controlling interest				$ (436,000)
Paid-in Capital | MCB Real Estate LLC And Its Affiliates | Consolidated JV | Deptford, New Jersey
Consolidated VIEs Carrying Amount of Assets and Liabilities
Purchase of non-controlling interest	$ 436,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($) item	Dec. 31, 2015 USD ($)
Investment in Unconsolidated Joint Ventures
Number of unconsolidated joint ventures | item	5	5
Number of properties owned and operated by each unconsolidated joint venture | item	1	1
Investment in unconsolidated joint ventures	$ 10,723,000	$ 10,833,000
Equity in earnings of unconsolidated joint ventures	826,000	$ 1,005,000	$ 412,000
MCB Real Estate LLC And Its Affiliates
Investment in Unconsolidated Joint Ventures
Investment in unconsolidated joint ventures	$ 8,245,000

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OTHER INCOME (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
OTHER INCOME
Income from resolution dispute	$ 243,000
Amount received for easements	$ 74,000	$ 356,000

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DEBT OBLIGATIONS - Mortgage Payable current (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Mortgages Payable
Mortgages payable, net	$ 393,157,000	$ 394,898,000
Mortgages payable
Mortgages Payable
Mortgages payable, gross	396,946,000	399,192,000
Unamortized deferred financing costs	(3,789,000)	(4,294,000)
Mortgages payable, net	$ 393,157,000	$ 394,898,000

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DEBT OBLIGATIONS - Principal payments (Details)	1 Months Ended	12 Months Ended
	Jan. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
DEBT OBLIGATIONS
Aggregate gross carrying value of real estate investments		$ 775,327,000	$ 748,065,000
Accumulated depreciation		108,953,000	96,852,000
Repayment of the outstanding debt
Repayment of mortgages payable		$ 12,936,000	$ 63,726,000	$ 27,967,000
Mortgages payable
DEBT OBLIGATIONS
Number of debt instruments outstanding | item		70
Aggregate gross carrying value of real estate investments		$ 624,361,000
Accumulated depreciation		$ 83,015,000
Weighted average interest rate (as a percent)		4.22%	4.27%
Repayment of the outstanding debt
2018		$ 24,871,000
2019		14,610,000
2020		11,901,000
2021		20,742,000
2022		43,771,000
Thereafter		281,051,000
Total		$ 396,946,000	$ 399,192,000
Repayment of mortgages payable	$ 4,423,000
Mortgages payable | Minimum | Interest rate swap
DEBT OBLIGATIONS
Annual fixed interest rate (as a percent)		3.02%
Mortgages payable | Maximum | Interest rate swap
DEBT OBLIGATIONS
Annual fixed interest rate (as a percent)		6.59%

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DEBT OBLIGATIONS - Line of Credit (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Mar. 05, 2018	Dec. 31, 2015
Line of Credit
Line of credit, net	$ 8,776,000	$ 9,064,000
Facility
Line of Credit
Unused facility fee (as a percent)	0.25%
Interest rate at end of period (as a percent)	2.87%	2.23%		1.95%
Percentage of permitted borrowing base available for specified purposes	15.00%
Line of credit, gross	$ 9,400,000	$ 10,000,000
Unamortized deferred financing costs	(624,000)	(936,000)
Facility | Maximum
Line of Credit
Amount of facility available for specified purposes	15,000,000
Amount of facility available for specified purposes if used for working capital purpose	10,000,000
Facility | Credit Facility
Line of Credit
Line of credit, gross	9,400,000	10,000,000	$ 3,900,000
Unamortized deferred financing costs	(624,000)	(936,000)
Line of credit, net	8,776,000	$ 9,064,000
Facility | Credit Facility | Maximum
Line of Credit
Borrowing capacity	$ 100,000,000
Facility | Credit Facility | LIBOR
Line of Credit
Spread on variable interest rate (as a percent)	1.75%	1.75%
Facility | Credit Facility | LIBOR | Maximum
Line of Credit
Spread on variable interest rate (as a percent)	3.00%
Facility | Credit Facility | LIBOR | Minimum
Line of Credit
Spread on variable interest rate (as a percent)	1.75%

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FAIR VALUE MEASUREMENTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Facility
Fair Value of Financial Instruments
Line of credit, gross	$ 9,400,000	$ 10,000,000
Recurring | Level 2 | Interest rate swap
Financial assets:
Derivative financial instruments	1,615,000	1,257,000
Financial liabilities:
Derivative financial instruments	1,492,000	2,695,000
Mortgages payable
Fair Value of Financial Instruments
Estimated fair value of mortgages payable	397,103,000	413,916,000
Carrying value of mortgage loans	396,946,000	399,192,000
Excess of fair value over carrying value	$ 157,000	$ 14,724,000
Blended or estimated market interest rate (as a percent)	4.25%	3.74%
Weighted average remaining term of the mortgages	8 years 8 months 12 days	9 years 3 months 18 days

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FAIR VALUE MEASUREMENTS - Interest Rate Derivatives (Details) - Interest rate derivatives - Cash flow hedges	12 Months Ended
	Dec. 31, 2017 USD ($) item
Fair Value Measurements
Number of interest rate derivatives held	28
Number of mortgage loans outstanding	28
Number of mortgage loans designated as cash flow hedges	28
Notional Amount | $	$ 132,965,000
Weighted average maturity	7 years
Weighted average annual interest rate (as a percent)	4.11%
Minimum
Fair Value Measurements
Fixed Interest Rate (as a percent)	3.02%
Maximum
Fair Value Measurements
Fixed Interest Rate (as a percent)	5.38%

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FAIR VALUE MEASUREMENTS - Derivative Instruments, Gain (Loss) (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($) property item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($) item
Cash flow hedges
Reclassification of gain (loss)
Gain or loss recognized with respect to cash flow hedges' ineffectiveness		$ 0	$ 0	$ 0
Properties located in Kansas City, Missouri and Ann Arbor, Michigan
Reclassification of gain (loss)
Number of real estate properties sold | property		2
Properties located in Kansas City, Missouri and Ann Arbor, Michigan | Cash flow hedges
Reclassification of gain (loss)
Loss on derivative instrument reclassified into interest expense		$ 201,000
Interest rate swap | Cash flow hedges
Fair Value Measurements
Amount of (loss) gain recognized on derivatives in Other comprehensive income (loss)		(221,000)	255,000	(3,722,000)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Interest expense		$ (1,786,000)	(2,624,000)	$ (2,554,000)
Reclassification of gain (loss)
Number of interest rate derivative instruments terminated | item		3		1
Additional amount to be reclassified during the next twelve months	$ 565,000
Credit risk related contingent feature
Fair value of derivative in a liability position, including accrued interest but excluding adjustments for nonperformance risk		$ 1,638,000	2,951,000
Accrued interest on derivative in a liability position		53,000	113,000
Termination value of derivative agreement		$ 1,638,000	2,951,000
Interest rate swap | Cash flow hedges | Unconsolidated joint ventures
Fair Value Measurements
Number of unconsolidated joint ventures of the entity with interest rate derivatives outstanding | item		3
Percentage of ownership in unconsolidated joint venture		50.00%
Number interest rate derivatives outstanding | item		2
Notional Amount		$ 10,491,000
Amount of (loss) gain recognized on derivatives in Other comprehensive income (loss)		15,000	(31,000)	$ (109,000)
Amount of (loss) reclassification from Accumulated other comprehensive income (loss) into Equity in earnings of unconsolidated joint ventures		$ (61,000)	(95,000)	(108,000)
Reclassification of gain (loss)
Additional amount to be reclassified during the next twelve months	$ 7,000
Interest rate swap | Cash flow hedges | Unconsolidated joint ventures | Minimum
Fair Value Measurements
Fixed Interest Rate (as a percent)		3.49%
Interest rate swap | Cash flow hedges | Unconsolidated joint ventures | Maximum
Fair Value Measurements
Fixed Interest Rate (as a percent)		5.81%
Interest rate swap | Cash flow hedges | Prepayment costs on debt
Reclassification of gain (loss)
Loss on termination of interest rate swap			178,000	$ 472,000
Interest rate swap | Cash flow hedges | Accrued expenses and other liabilities
Credit risk related contingent feature
Adjustments for nonperformance risk		$ 93,000	$ 143,000

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FAIR VALUE MEASUREMENTS - Available for Sale (Details)	12 Months Ended
	Dec. 31, 2016 USD ($)
Available-for-sale securities
Aggregate cost of available-for-sale securities	$ 5,300
Gain on sale of available-for-sale securities	(27,000)
Recurring
Available-for-sale securities
Amount of available-for-sale securities sold	$ 33,000

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RELATED PARTY TRANSACTIONS (Details) - USD ($)			1 Months Ended	12 Months Ended
	Oct. 31, 2016	Jan. 01, 2016	Oct. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Related Party Transaction
Share based compensation charged to operations				$ 3,133,000	$ 2,983,000	$ 2,334,000
Deptford, New Jersey | Consolidated JV | MCB Real Estate LLC And Its Affiliates
Related Party Transaction
Purchase of Minority Interest Percentage	5.00%		5.00%
Gould Investors L.P.
Related Party Transaction
Number of common stock owned by the related party				1,785,976	1,785,976
Ownership percentage held by the related party				9.50%	9.80%
Number of shares purchased by the related party under the dividend reinvestment plan						81,211
Amount of insurance reimbursed				$ 790,000	$ 699,000	$ 520,000
Real estate insurance expense				757,000	645,000	339,000
Majestic
Related Party Transaction
Fees under compensation and services agreement				2,673,000	2,504,000	2,339,000
Property management costs allocated to real estate expenses annually				1,154,000	1,057,000	892,500
Additional payment for the entity's share of all direct office expenses				216,000	196,000	196,000
Chairman | General and administrative expense
Related Party Transaction
Fee paid				276,000	262,500	262,500
Vice Chairman | General and administrative expense
Related Party Transaction
Fee paid				110,000	105,000	105,000
Executive officers and others
Related Party Transaction
Share based compensation charged to operations				1,539,000	1,480,000	1,245,000
Joint venture partners
Related Party Transaction
Real estate management and acquisition costs				143,000	185,000	$ 198,000
Percentage of financing fees in Other Income						50.00%
Corporate joint venture
Related Party Transaction
Aggregate fees paid to other partners				175,000	176,000	$ 409,000
Decrease in equity earnings, joint venture transaction				$ 88,000	$ 88,000	205,000
Fee received						$ 131,000
Net lease tenants | Majestic
Related Party Transaction
Property management fee (as a percent)		1.50%
Operating lease tenants | Majestic
Related Party Transaction
Property management fee (as a percent)		2.00%

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STOCKHOLDERS' EQUITY - Stock Based Compensation (Details) - USD ($)		12 Months Ended
	Jan. 18, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Total charge to operations:
Share based compensation charged to operations		$ 3,133,000	$ 2,983,000	$ 2,334,000
Compensation costs related to non-vested awards that have not yet been recognized		$ 7,098,000
Restricted stock
Stock Based Compensation
Vesting period		5 years
Summary of the activity of the incentive plans
Number of shares		140,100	139,225	129,975
Average per share grant price (in dollars per share)		$ 24.75	$ 21.74	$ 24.60
Deferred compensation to be recognized over vesting period		$ 3,467,000	$ 3,027,000	$ 3,197,000
Number of non-vested shares:
Non-vested beginning of year (in shares)		591,750	538,755	480,995
Grants (in shares)		140,100	139,225	129,975
Vested during year (in shares)		(118,450)	(85,730)	(72,215)
Forfeitures (in shares)		(500)	(500)
Non-vested end of year (in shares)		612,900	591,750	538,755
Restricted stock and RSU grants:
Weighted average per share value of non-vested shares (based on grant price) (in dollars per share)		$ 22.89	$ 17.95	$ 17.12
Value of stock vested during the year (based on grant price)		$ 3,008,000	$ 1,451,500	$ 612,000
Weighted average per share value of shares forfeited during the year (based on grant price) (in dollars per share)		$ 8.37	$ 21.05
Total charge to operations:
Share based compensation charged to operations		$ 2,966,000	$ 2,692,000	$ 2,204,000
Approximate weighted average vesting period		2 years 2 months 12 days
RSUs
Stock Based Compensation
Percentage of units to be vested on satisfaction of performance criteria of average total stockholder return		50.00%
Percent of number of units to be vested on satisfaction of performance criteria related to average annual return on capital		50.00%
Summary of the activity of the incentive plans
Number of shares		76,250
Average per share grant price (in dollars per share)		$ 24.03
Deferred compensation to be recognized over vesting period		$ 1,004,000
Number of non-vested shares:
Non-vested beginning of year (in shares)		200,000	200,000	200,000
Grants (in shares)		76,250
Vested during year (in shares)		(113,584)
Forfeitures (in shares)		(86,416)
Non-vested end of year (in shares)		76,250	200,000	200,000
Total charge to operations:
Share based compensation charged to operations		$ 167,000	$ 291,000	$ 130,000
Approximate weighted average vesting period		2 years 6 months
TSR awards
Stock Based Compensation
Expected life		3 years
Dividend rate		7.16%
Risk-free interest rate minimum		1.14%
Risk-free interest rate maximum		1.64%
Expected price volatility minimum		16.57%
Expected price volatility maximum		19.16%
2016 Incentive Plan
Stock Based Compensation
Number of shares authorized for issuance		750,000
Aggregate value of restricted shares granted	$ 3,664,000
Summary of the activity of the incentive plans
Number of shares	144,750
Number of non-vested shares:
Grants (in shares)	144,750
2016 Incentive Plan | Restricted stock
Summary of the activity of the incentive plans
Number of shares		140,100
Number of non-vested shares:
Grants (in shares)		140,100
Vested during year (in shares)		(3,000)
Forfeitures (in shares)		(100)
2016 Incentive Plan | RSUs
Summary of the activity of the incentive plans
Number of shares		76,250
Number of non-vested shares:
Grants (in shares)		76,250
Non-vested end of year (in shares)		76,250
2012 Incentive Plan
Stock Based Compensation
Shares issued pursuant to plan		500,700
Shares forfeited pursuant to Plan		3,350
Shares vested pursuant to plan		21,450
Pay-for-performance program | RSUs | General and administrative expense
Summary of the activity of the incentive plans
Deferred compensation to be recognized over vesting period		$ 1,004,000

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STOCKHOLDERS' EQUITY - Common Stock Dividend Distributions (Details) - USD ($)		12 Months Ended
	Mar. 12, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Stockholders' Equity
Cash distributions declared per share of common stock (in dollars per share)		$ 1.74	$ 1.66	$ 1.58
Cash dividend declared		$ 32,391,000	$ 29,136,000	$ 26,178,000
Dividend Reinvestment Plan
Common shares issued under Dividend Reinvestment Plan		198,000	142,000	197,000
Shares Issued Through Equity Offering Program
Number of shares sold (in shares)		231,000	1,079,862
Proceeds from sale of shares, net of commission and before offering costs		$ 5,758,000	$ 25,947,000
Payment of commissions on sale of shares		58,000	262,000
Payment of Offering Costs on Sale of Shares		$ 188,000	$ 160,000
Maximum
Dividend Reinvestment Plan
Discount rate (as a percent)		5.00%
Dividend Subsequent to Year End
Stockholders' Equity
Cash distributions declared per share of common stock (in dollars per share)	$ 0.45
Cash dividend declared	$ 8,581,000

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COMMITMENTS AND CONTINGENCIES (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2018 USD ($)
Pension expense	$ 275,000	$ 273,000	$ 266,000
Annual fixed leasehold rent for next five years	371,094
Annual fixed leasehold rent thereafter through March 3, 2020	$ 463,867
Number of 5-year extension options | item	5
Lease extension period for the first five renewal options	5 years
Number of seven month extension options | item	1
Lease extension period for the last renewal option	7 months
Building located In Hauppauge, New York
Contractual obligation	$ 3,584,000			$ 7,800,000
Regal Cinemas In Greensboro, North Carolina
Contractual obligation	$ 3,000,000

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INCOME TAXES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
INCOME TAXES
Period of disqualification of REIT status	4 years
Federal excise tax expense	$ 0	$ 6,000	$ 174,000
Capital gain distributions (as a percent)	17.00%	27.00%	67.00%
Reconciliation between Cash Dividends Paid and Dividends Paid Deduction:
Dividends paid	$ 32,393,000	$ 29,135,000	$ 26,179,000
Dividend reinvestment plan	252,000	181,000	228,000
Dividends before adjustment for previous and current year	32,645,000	29,316,000	26,407,000
Less: Spillover dividends designated to previous year	(11,916,000)	(15,209,000)	(18,177,000)
Plus: Dividends designated from following year	10,263,000	11,916,000	15,209,000
Dividends paid deduction	$ 30,992,000	$ 26,023,000	$ 23,439,000
Maximum
Reconciliation between Cash Dividends Paid and Dividends Paid Deduction:
Percentage of discount on common stock purchased through the dividend reinvestment plan	5.00%

XML

QUARTERLY FINANCIAL DATA (Unaudited): (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
QUARTERLY FINANCIAL DATA (Unaudited):
Total revenues	$ 19,894	$ 19,137	$ 18,413	$ 18,472	$ 18,990	$ 18,021	$ 17,233	$ 16,344	$ 75,916	$ 70,588	$ 65,711
Gain on sale of real estate, net		3,269	6,568		263	119	8,918	787	9,837	10,087	5,392
Net income	4,242	7,128	9,993	2,886	4,414	4,323	12,459	3,285	24,249	24,481	21,907
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests	$ 4,205	$ 7,105	$ 9,972	$ 2,865	$ 4,395	$ 4,299	$ 12,441	$ 3,287	$ 24,147	$ 24,422	$ 20,517
Weighted average number of common shares outstanding:
Basic (in shares)	18,198	18,000	17,824	17,751	17,255	16,845	16,579	16,388	17,944	16,768	15,971
Diluted (in shares)	18,269	18,079	17,938	17,865	17,369	16,962	16,686	16,495	18,047	16,882	16,079
Net income per common share attributable to common stockholders:
Basic (in dollars per share)	$ 0.22	$ 0.38	$ 0.54	$ 0.15	$ 0.24	$ 0.24	$ 0.72	$ 0.19	$ 1.29	$ 1.40	$ 1.23
Diluted (in dollars per share)	$ 0.22	$ 0.38	$ 0.54	$ 0.15	$ 0.24	$ 0.24	$ 0.72	$ 0.18	$ 1.28	$ 1.39	$ 1.22

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Schedule III - Consolidated Real Estate and Accumulated Depreciation (Details)	12 Months Ended
	Dec. 31, 2017 USD ($) property item	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	$ 396,946,000
Initial Cost To Company
Land	209,320,000
Buildings and Improvements	537,860,000
Costs Capitalized Subsequent to Acquisition
Improvements	28,147,000
Gross Amount at Which Carried
Land	209,320,000
Buildings and Improvements	566,007,000
Total	775,327,000	$ 748,065,000	$ 662,182,000	$ 592,668,000
Accumulated Depreciation	$ 108,953,000	$ 96,852,000	$ 87,801,000	$ 77,643,000
Minimum
Other disclosure
Estimated useful lives of buildings and improvements	3 years
Maximum
Other disclosure
Estimated useful lives of buildings and improvements	40 years
Industrial
Other disclosure
Reduction to cost of land and buildings	$ 416,000
Retail
Other disclosure
Number of properties net leased to same tenant pursuant to separate leases | property	7
Number of properties containing cross default provisions | property	5
Number of states in which properties containing cross default provisions are located | item	7
Number of properties covered by one master lease and one loan secured by cross - collateralized mortgages | property	11
Number of states in which properties covered by one master lease and one loan secured by cross - collateralized mortgages are located | item	6
Real Estate in Tucker, GA | Health Clubs
Initial Cost To Company
Land	$ 807,000
Buildings and Improvements	3,027,000
Costs Capitalized Subsequent to Acquisition
Improvements	3,126,000
Gross Amount at Which Carried
Land	807,000
Buildings and Improvements	6,153,000
Total	6,960,000
Accumulated Depreciation	2,290,000
Real Estate in Hamilton, OH | Health Clubs
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	4,814,000
Initial Cost To Company
Land	1,483,000
Buildings and Improvements	5,953,000
Gross Amount at Which Carried
Land	1,483,000
Buildings and Improvements	5,953,000
Total	7,436,000
Accumulated Depreciation	1,096,000
Real Estate in Secaucus, NJ | Health Clubs
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	8,865,000
Initial Cost To Company
Land	5,449,000
Buildings and Improvements	9,873,000
Gross Amount at Which Carried
Land	5,449,000
Buildings and Improvements	9,873,000
Total	15,322,000
Accumulated Depreciation	1,253,000
Real Estate in Ronkonkoma, NY | Industrial
Initial Cost To Company
Land	1,042,000
Buildings and Improvements	4,171,000
Costs Capitalized Subsequent to Acquisition
Improvements	2,517,000
Gross Amount at Which Carried
Land	1,042,000
Buildings and Improvements	6,688,000
Total	7,730,000
Accumulated Depreciation	2,181,000
Real Estate in Hauppauge, NY | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	11,969,000
Initial Cost To Company
Land	1,951,000
Buildings and Improvements	10,954,000
Costs Capitalized Subsequent to Acquisition
Improvements	5,382,000
Gross Amount at Which Carried
Land	1,951,000
Buildings and Improvements	16,336,000
Total	18,287,000
Accumulated Depreciation	5,255,000
Real Estate 1 in Fort Mill, SC | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	8,290,000
Initial Cost To Company
Land	1,840,000
Buildings and Improvements	12,687,000
Costs Capitalized Subsequent to Acquisition
Improvements	23,000
Gross Amount at Which Carried
Land	1,840,000
Buildings and Improvements	12,710,000
Total	14,550,000
Accumulated Depreciation	1,568,000
Real Estate in Columbus, OH | Industrial
Initial Cost To Company
Land	435,000
Buildings and Improvements	1,703,000
Costs Capitalized Subsequent to Acquisition
Improvements	27,000
Gross Amount at Which Carried
Land	435,000
Buildings and Improvements	1,730,000
Total	2,165,000
Accumulated Depreciation	734,000
Real Estate in West Palm Beach, FL | Industrial
Initial Cost To Company
Land	181,000
Buildings and Improvements	724,000
Gross Amount at Which Carried
Land	181,000
Buildings and Improvements	724,000
Total	905,000
Accumulated Depreciation	348,000
Real Estate in New Hyde Park, NY | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,563,000
Initial Cost To Company
Land	182,000
Buildings and Improvements	728,000
Costs Capitalized Subsequent to Acquisition
Improvements	281,000
Gross Amount at Which Carried
Land	182,000
Buildings and Improvements	1,009,000
Total	1,191,000
Accumulated Depreciation	380,000
Real Estate in Melville, NY | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,749,000
Initial Cost To Company
Land	774,000
Buildings and Improvements	3,029,000
Costs Capitalized Subsequent to Acquisition
Improvements	975,000
Gross Amount at Which Carried
Land	774,000
Buildings and Improvements	4,004,000
Total	4,778,000
Accumulated Depreciation	1,324,000
Real Estate in Saco, ME | Industrial
Initial Cost To Company
Land	1,027,000
Buildings and Improvements	3,623,000
Costs Capitalized Subsequent to Acquisition
Improvements	2,050,000
Gross Amount at Which Carried
Land	1,027,000
Buildings and Improvements	5,673,000
Total	6,700,000
Accumulated Depreciation	1,063,000
Real Estate in Baltimore, MD | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	20,527,000
Initial Cost To Company
Land	6,474,000
Buildings and Improvements	25,282,000
Gross Amount at Which Carried
Land	6,474,000
Buildings and Improvements	25,282,000
Total	31,756,000
Accumulated Depreciation	6,979,000
Real Estate in Durham, NC | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,788,000
Initial Cost To Company
Land	1,043,000
Buildings and Improvements	2,404,000
Gross Amount at Which Carried
Land	1,043,000
Buildings and Improvements	2,404,000
Total	3,447,000
Accumulated Depreciation	466,000
Real Estate in Pinellas Park, FL | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,384,000
Initial Cost To Company
Land	1,231,000
Buildings and Improvements	1,669,000
Gross Amount at Which Carried
Land	1,231,000
Buildings and Improvements	1,669,000
Total	2,900,000
Accumulated Depreciation	271,000
Real Estate in Miamisburg, OH | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	735,000
Initial Cost To Company
Land	165,000
Buildings and Improvements	1,348,000
Costs Capitalized Subsequent to Acquisition
Improvements	11,000
Gross Amount at Which Carried
Land	165,000
Buildings and Improvements	1,359,000
Total	1,524,000
Accumulated Depreciation	199,000
Real Estate in Indianapolis, IN | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	5,933,000
Initial Cost To Company
Land	1,224,000
Buildings and Improvements	6,935,000
Gross Amount at Which Carried
Land	1,224,000
Buildings and Improvements	6,935,000
Total	8,159,000
Accumulated Depreciation	996,000
Real Estate 2 in Fort Mill, SC | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	24,994,000
Initial Cost To Company
Land	1,804,000
Buildings and Improvements	33,650,000
Gross Amount at Which Carried
Land	1,804,000
Buildings and Improvements	33,650,000
Total	35,454,000
Accumulated Depreciation	5,123,000
Real Estate in New Hope, MN | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	4,227,000
Initial Cost To Company
Land	881,000
Buildings and Improvements	6,064,000
Costs Capitalized Subsequent to Acquisition
Improvements	81,000
Gross Amount at Which Carried
Land	881,000
Buildings and Improvements	6,145,000
Total	7,026,000
Accumulated Depreciation	481,000
Real Estate 1 in Louisville, KY | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,389,000
Initial Cost To Company
Land	578,000
Buildings and Improvements	3,727,000
Costs Capitalized Subsequent to Acquisition
Improvements	4,000
Gross Amount at Which Carried
Land	578,000
Buildings and Improvements	3,731,000
Total	4,309,000
Accumulated Depreciation	274,000
Real Estate 2 in Louisville, KY | Industrial
Initial Cost To Company
Land	51,000
Buildings and Improvements	230,000
Gross Amount at Which Carried
Land	51,000
Buildings and Improvements	230,000
Total	281,000
Accumulated Depreciation	16,000
Real Estate in McCalla, Al | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	10,325,000
Initial Cost To Company
Land	1,588,000
Buildings and Improvements	14,682,000
Gross Amount at Which Carried
Land	1,588,000
Buildings and Improvements	14,682,000
Total	16,270,000
Accumulated Depreciation	921,000
Real Estate In St Louis, Mo | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	11,707,000
Initial Cost To Company
Land	3,728,000
Buildings and Improvements	13,006,000
Costs Capitalized Subsequent to Acquisition
Improvements	695,000
Gross Amount at Which Carried
Land	3,728,000
Buildings and Improvements	13,701,000
Total	17,429,000
Accumulated Depreciation	809,000
Real Estate 1 in Greenville, SC | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	5,086,000
Initial Cost To Company
Land	693,000
Buildings and Improvements	6,893,000
Costs Capitalized Subsequent to Acquisition
Improvements	11,000
Gross Amount at Which Carried
Land	693,000
Buildings and Improvements	6,904,000
Total	7,597,000
Accumulated Depreciation	322,000
Real Estate 2 in Greenville, SC | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	5,651,000
Initial Cost To Company
Land	528,000
Buildings and Improvements	8,074,000
Costs Capitalized Subsequent to Acquisition
Improvements	6,000
Gross Amount at Which Carried
Land	528,000
Buildings and Improvements	8,080,000
Total	8,608,000
Accumulated Depreciation	375,000
Real Estate in El Paso, TX | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	14,487,000
Initial Cost To Company
Land	3,691,000
Buildings and Improvements	17,904,000
Costs Capitalized Subsequent to Acquisition
Improvements	324,000
Gross Amount at Which Carried
Land	3,691,000
Buildings and Improvements	18,228,000
Total	21,919,000
Accumulated Depreciation	737,000
Real Estate in Lebanon, TN | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	21,288,000
Initial Cost To Company
Land	2,094,000
Buildings and Improvements	30,039,000
Costs Capitalized Subsequent to Acquisition
Improvements	14,000
Gross Amount at Which Carried
Land	2,094,000
Buildings and Improvements	30,053,000
Total	32,147,000
Accumulated Depreciation	1,004,000
Real Estate in Huntersville, NC | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	5,116,000
Initial Cost To Company
Land	1,046,000
Buildings and Improvements	6,674,000
Gross Amount at Which Carried
Land	1,046,000
Buildings and Improvements	6,674,000
Total	7,720,000
Accumulated Depreciation	111,000
Real Estate in Pittston, PA | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	7,142,000
Initial Cost To Company
Land	999,000
Buildings and Improvements	9,922,000
Costs Capitalized Subsequent to Acquisition
Improvements	250,000
Gross Amount at Which Carried
Land	999,000
Buildings and Improvements	10,172,000
Total	11,171,000
Accumulated Depreciation	146,000
Real Estate in Ankeny, IA | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	8,729,000
Initial Cost To Company
Land	1,351,000
Buildings and Improvements	11,607,000
Gross Amount at Which Carried
Land	1,351,000
Buildings and Improvements	11,607,000
Total	12,958,000
Accumulated Depreciation	162,000
Real Estate in Memphis, TN | Industrial
Initial Cost To Company
Land	135,000
Buildings and Improvements	7,952,000
Gross Amount at Which Carried
Land	135,000
Buildings and Improvements	7,952,000
Total	8,087,000
Accumulated Depreciation	43,000
Real Estate in Joppa MD | Industrial
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	9,600,000
Initial Cost To Company
Land	3,815,000
Buildings and Improvements	8,142,000
Costs Capitalized Subsequent to Acquisition
Improvements	1,473,000
Gross Amount at Which Carried
Land	3,815,000
Buildings and Improvements	9,615,000
Total	13,430,000
Accumulated Depreciation	836,000
Real Estate in Brooklyn, NY | Office
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	3,532,000
Initial Cost To Company
Land	1,381,000
Buildings and Improvements	5,447,000
Costs Capitalized Subsequent to Acquisition
Improvements	2,870,000
Gross Amount at Which Carried
Land	1,381,000
Buildings and Improvements	8,317,000
Total	9,698,000
Accumulated Depreciation	3,641,000
Real Estate in Round Rock, TX | Other
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	13,892,000
Initial Cost To Company
Land	1,678,000
Buildings and Improvements	16,670,000
Gross Amount at Which Carried
Land	1,678,000
Buildings and Improvements	16,670,000
Total	18,348,000
Accumulated Depreciation	1,840,000
Real Estate in Lakemoor, IL | Other
Initial Cost To Company
Land	9,592,000
Gross Amount at Which Carried
Land	9,592,000
Total	9,592,000
Real Estate in Wheaton, IL | Other
Initial Cost To Company
Land	10,536,000
Gross Amount at Which Carried
Land	10,536,000
Total	10,536,000
Real Estate in Beachwood, OH | Other
Initial Cost To Company
Land	13,901,000
Gross Amount at Which Carried
Land	13,901,000
Total	13,901,000
Real Estate 1 in Hauppauge, NY | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,736,000
Initial Cost To Company
Land	725,000
Buildings and Improvements	2,963,000
Gross Amount at Which Carried
Land	725,000
Buildings and Improvements	2,963,000
Total	3,688,000
Accumulated Depreciation	898,000
Real Estate in Palmyra, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	735,000
Initial Cost To Company
Land	650,000
Buildings and Improvements	650,000
Gross Amount at Which Carried
Land	650,000
Buildings and Improvements	650,000
Total	1,300,000
Accumulated Depreciation	121,000
Real Estate 1 in Reading, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	726,000
Initial Cost To Company
Land	655,000
Buildings and Improvements	625,000
Gross Amount at Which Carried
Land	655,000
Buildings and Improvements	625,000
Total	1,280,000
Accumulated Depreciation	116,000
Real Estate 2 in Reading, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	714,000
Initial Cost To Company
Land	618,000
Buildings and Improvements	643,000
Gross Amount at Which Carried
Land	618,000
Buildings and Improvements	643,000
Total	1,261,000
Accumulated Depreciation	121,000
Real Estate in Hanover, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	803,000
Initial Cost To Company
Land	736,000
Buildings and Improvements	686,000
Gross Amount at Which Carried
Land	736,000
Buildings and Improvements	686,000
Total	1,422,000
Accumulated Depreciation	126,000
Real Estate in Gettysburg, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	823,000
Initial Cost To Company
Land	754,000
Buildings and Improvements	704,000
Gross Amount at Which Carried
Land	754,000
Buildings and Improvements	704,000
Total	1,458,000
Accumulated Depreciation	130,000
Real Estate in Trexlertown, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	700,000
Initial Cost To Company
Land	800,000
Buildings and Improvements	439,000
Gross Amount at Which Carried
Land	800,000
Buildings and Improvements	439,000
Total	1,239,000
Accumulated Depreciation	81,000
Real Estate in Carrollton, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,569,000
Initial Cost To Company
Land	796,000
Buildings and Improvements	1,458,000
Gross Amount at Which Carried
Land	796,000
Buildings and Improvements	1,458,000
Total	2,254,000
Accumulated Depreciation	250,000
Real Estate in Cartersville, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,484,000
Initial Cost To Company
Land	786,000
Buildings and Improvements	1,346,000
Gross Amount at Which Carried
Land	786,000
Buildings and Improvements	1,346,000
Total	2,132,000
Accumulated Depreciation	245,000
Real Estate 1 in Kennesaw, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,216,000
Initial Cost To Company
Land	702,000
Buildings and Improvements	916,000
Gross Amount at Which Carried
Land	702,000
Buildings and Improvements	916,000
Total	1,618,000
Accumulated Depreciation	161,000
Real Estate in Lawrenceville, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,167,000
Initial Cost To Company
Land	866,000
Buildings and Improvements	899,000
Gross Amount at Which Carried
Land	866,000
Buildings and Improvements	899,000
Total	1,765,000
Accumulated Depreciation	204,000
Real Estate in Concord, NC | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,529,000
Initial Cost To Company
Land	999,000
Buildings and Improvements	1,076,000
Gross Amount at Which Carried
Land	999,000
Buildings and Improvements	1,076,000
Total	2,075,000
Accumulated Depreciation	143,000
Real Estate in Myrtle Beach, SC | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,529,000
Initial Cost To Company
Land	1,102,000
Buildings and Improvements	1,161,000
Gross Amount at Which Carried
Land	1,102,000
Buildings and Improvements	1,161,000
Total	2,263,000
Accumulated Depreciation	161,000
Real Estate in Greensboro, NC | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	3,253,000
Initial Cost To Company
Land	1,770,000
Buildings and Improvements	1,237,000
Gross Amount at Which Carried
Land	1,770,000
Buildings and Improvements	1,237,000
Total	3,007,000
Accumulated Depreciation	156,000
Real Estate in Richmond, VA | Retail
Initial Cost To Company
Land	1,680,000
Buildings and Improvements	1,341,000
Gross Amount at Which Carried
Land	1,680,000
Buildings and Improvements	1,341,000
Total	3,021,000
Accumulated Depreciation	162,000
Real Estate 1 in Indianapolis, IN | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	928,000
Initial Cost To Company
Land	853,000
Buildings and Improvements	1,465,000
Gross Amount at Which Carried
Land	853,000
Buildings and Improvements	1,465,000
Total	2,318,000
Accumulated Depreciation	169,000
Real Estate in Seattle, WA | Retail
Initial Cost To Company
Land	201,000
Buildings and Improvements	189,000
Gross Amount at Which Carried
Land	201,000
Buildings and Improvements	189,000
Total	390,000
Accumulated Depreciation	143,000
Real Estate in Rosenberg, TX | Retail
Initial Cost To Company
Land	216,000
Buildings and Improvements	863,000
Costs Capitalized Subsequent to Acquisition
Improvements	66,000
Gross Amount at Which Carried
Land	216,000
Buildings and Improvements	929,000
Total	1,145,000
Accumulated Depreciation	500,000
Real Estate in Ft. Myers, FL | Retail
Initial Cost To Company
Land	1,013,000
Buildings and Improvements	4,054,000
Gross Amount at Which Carried
Land	1,013,000
Buildings and Improvements	4,054,000
Total	5,067,000
Accumulated Depreciation	2,141,000
Real Estate 1 in Houston, TX | Retail
Initial Cost To Company
Land	396,000
Buildings and Improvements	1,583,000
Costs Capitalized Subsequent to Acquisition
Improvements	30,000
Gross Amount at Which Carried
Land	396,000
Buildings and Improvements	1,613,000
Total	2,009,000
Accumulated Depreciation	800,000
Real Estate in Selden, NY | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,889,000
Initial Cost To Company
Land	572,000
Buildings and Improvements	2,287,000
Costs Capitalized Subsequent to Acquisition
Improvements	150,000
Gross Amount at Which Carried
Land	572,000
Buildings and Improvements	2,437,000
Total	3,009,000
Accumulated Depreciation	1,132,000
Real Estate in Champaign, IL | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,580,000
Initial Cost To Company
Land	791,000
Buildings and Improvements	3,165,000
Costs Capitalized Subsequent to Acquisition
Improvements	308,000
Gross Amount at Which Carried
Land	791,000
Buildings and Improvements	3,473,000
Total	4,264,000
Accumulated Depreciation	1,553,000
Real Estate 1 in El Paso, TX | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	11,086,000
Initial Cost To Company
Land	2,821,000
Buildings and Improvements	11,123,000
Costs Capitalized Subsequent to Acquisition
Improvements	2,544,000
Gross Amount at Which Carried
Land	2,821,000
Buildings and Improvements	13,667,000
Total	16,488,000
Accumulated Depreciation	5,567,000
Real Estate in Somerville, MA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,774,000
Initial Cost To Company
Land	510,000
Buildings and Improvements	1,993,000
Costs Capitalized Subsequent to Acquisition
Improvements	24,000
Gross Amount at Which Carried
Land	510,000
Buildings and Improvements	2,017,000
Total	2,527,000
Accumulated Depreciation	749,000
Real Estate in Newark, DE | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,716,000
Initial Cost To Company
Land	935,000
Buildings and Improvements	3,643,000
Costs Capitalized Subsequent to Acquisition
Improvements	43,000
Gross Amount at Which Carried
Land	935,000
Buildings and Improvements	3,686,000
Total	4,621,000
Accumulated Depreciation	1,318,000
Real Estate in Knoxville, TN | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	9,112,000
Initial Cost To Company
Land	2,290,000
Buildings and Improvements	8,855,000
Gross Amount at Which Carried
Land	2,290,000
Buildings and Improvements	8,855,000
Total	11,145,000
Accumulated Depreciation	3,053,000
Real Estate in Onalaska, WI | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	3,539,000
Initial Cost To Company
Land	753,000
Buildings and Improvements	3,099,000
Gross Amount at Which Carried
Land	753,000
Buildings and Improvements	3,099,000
Total	3,852,000
Accumulated Depreciation	1,017,000
Real Estate in Hyannis, MA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	131,000
Initial Cost To Company
Land	802,000
Buildings and Improvements	2,324,000
Gross Amount at Which Carried
Land	802,000
Buildings and Improvements	2,324,000
Total	3,126,000
Accumulated Depreciation	579,000
Real Estate in Marston Mills, MA | Retail
Initial Cost To Company
Land	461,000
Buildings and Improvements	2,313,000
Gross Amount at Which Carried
Land	461,000
Buildings and Improvements	2,313,000
Total	2,774,000
Accumulated Depreciation	571,000
Real Estate in Everett, MA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,178,000
Initial Cost To Company
Land	1,935,000
Gross Amount at Which Carried
Land	1,935,000
Total	1,935,000
Real Estate 2 in Kennesaw, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	5,373,000
Initial Cost To Company
Land	1,501,000
Buildings and Improvements	4,349,000
Costs Capitalized Subsequent to Acquisition
Improvements	1,138,000
Gross Amount at Which Carried
Land	1,501,000
Buildings and Improvements	5,487,000
Total	6,988,000
Accumulated Depreciation	1,148,000
Real Estate in Royersford, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	19,750,000
Initial Cost To Company
Land	19,538,000
Buildings and Improvements	3,150,000
Costs Capitalized Subsequent to Acquisition
Improvements	424,000
Gross Amount at Which Carried
Land	19,538,000
Buildings and Improvements	3,574,000
Total	23,112,000
Accumulated Depreciation	707,000
Real Estate in Monroeville, PA | Retail
Initial Cost To Company
Land	450,000
Buildings and Improvements	863,000
Gross Amount at Which Carried
Land	450,000
Buildings and Improvements	863,000
Total	1,313,000
Accumulated Depreciation	164,000
Real Estate 2 in Houston, TX | Retail
Initial Cost To Company
Land	1,962,000
Buildings and Improvements	1,540,000
Gross Amount at Which Carried
Land	1,962,000
Buildings and Improvements	1,540,000
Total	3,502,000
Accumulated Depreciation	315,000
Real Estate 3 in Houston, TX | Retail
Initial Cost To Company
Land	2,002,000
Buildings and Improvements	1,800,000
Gross Amount at Which Carried
Land	2,002,000
Buildings and Improvements	1,800,000
Total	3,802,000
Accumulated Depreciation	362,000
Real Estate in Bolingbrook, IL | Retail
Initial Cost To Company
Land	834,000
Buildings and Improvements	1,887,000
Costs Capitalized Subsequent to Acquisition
Improvements	101,000
Gross Amount at Which Carried
Land	834,000
Buildings and Improvements	1,988,000
Total	2,822,000
Accumulated Depreciation	368,000
Real Estate in Crystal Lake, IL | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,696,000
Initial Cost To Company
Land	615,000
Buildings and Improvements	1,899,000
Gross Amount at Which Carried
Land	615,000
Buildings and Improvements	1,899,000
Total	2,514,000
Accumulated Depreciation	396,000
Real Estate in Lawrence, KS | Retail
Initial Cost To Company
Land	134,000
Buildings and Improvements	938,000
Costs Capitalized Subsequent to Acquisition
Improvements	22,000
Gross Amount at Which Carried
Land	134,000
Buildings and Improvements	960,000
Total	1,094,000
Accumulated Depreciation	138,000
Real Estate 2 in Greensboro, NC | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,365,000
Initial Cost To Company
Land	1,046,000
Buildings and Improvements	1,552,000
Costs Capitalized Subsequent to Acquisition
Improvements	29,000
Gross Amount at Which Carried
Land	1,046,000
Buildings and Improvements	1,581,000
Total	2,627,000
Accumulated Depreciation	182,000
Real Estate in Highlands Ranch, CO | Retail
Initial Cost To Company
Land	2,361,000
Buildings and Improvements	2,924,000
Gross Amount at Which Carried
Land	2,361,000
Buildings and Improvements	2,924,000
Total	5,285,000
Accumulated Depreciation	307,000
Real Estate in Woodbury, MN | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,957,000
Initial Cost To Company
Land	1,190,000
Buildings and Improvements	4,003,000
Gross Amount at Which Carried
Land	1,190,000
Buildings and Improvements	4,003,000
Total	5,193,000
Accumulated Depreciation	413,000
Real Estate in Lincoln, NE | Retail
Initial Cost To Company
Land	3,768,000
Buildings and Improvements	11,832,000
Costs Capitalized Subsequent to Acquisition
Improvements	30,000
Gross Amount at Which Carried
Land	3,768,000
Buildings and Improvements	11,862,000
Total	15,630,000
Accumulated Depreciation	888,000
Real Estate in Cuyahoga Falls, OH | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,114,000
Initial Cost To Company
Land	71,000
Buildings and Improvements	1,371,000
Gross Amount at Which Carried
Land	71,000
Buildings and Improvements	1,371,000
Total	1,442,000
Accumulated Depreciation	55,000
Real Estate in Hilliard, OH | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	987,000
Initial Cost To Company
Land	300,000
Buildings and Improvements	1,077,000
Gross Amount at Which Carried
Land	300,000
Buildings and Improvements	1,077,000
Total	1,377,000
Accumulated Depreciation	45,000
Real Estate in Port Clinton, OH | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	955,000
Initial Cost To Company
Land	52,000
Buildings and Improvements	1,187,000
Gross Amount at Which Carried
Land	52,000
Buildings and Improvements	1,187,000
Total	1,239,000
Accumulated Depreciation	49,000
Real Estate in South Euclid, OH | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,083,000
Initial Cost To Company
Land	230,000
Buildings and Improvements	1,566,000
Gross Amount at Which Carried
Land	230,000
Buildings and Improvements	1,566,000
Total	1,796,000
Accumulated Depreciation	63,000
Real Estate in St Louis Park, MN | Retail
Initial Cost To Company
Land	3,388,000
Buildings and Improvements	13,088,000
Costs Capitalized Subsequent to Acquisition
Improvements	141,000
Gross Amount at Which Carried
Land	3,388,000
Buildings and Improvements	13,229,000
Total	16,617,000
Accumulated Depreciation	483,000
Real Estate in Deptford, NJ | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,718,000
Initial Cost To Company
Land	572,000
Buildings and Improvements	1,779,000
Costs Capitalized Subsequent to Acquisition
Improvements	705,000
Gross Amount at Which Carried
Land	572,000
Buildings and Improvements	2,484,000
Total	3,056,000
Accumulated Depreciation	556,000
Real Estate in Cape Girardeau, MO | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,199,000
Initial Cost To Company
Land	545,000
Buildings and Improvements	1,547,000
Gross Amount at Which Carried
Land	545,000
Buildings and Improvements	1,547,000
Total	2,092,000
Accumulated Depreciation	229,000
Real Estate in Clemmons, NC | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,119,000
Initial Cost To Company
Land	2,564,000
Buildings and Improvements	3,293,000
Gross Amount at Which Carried
Land	2,564,000
Buildings and Improvements	3,293,000
Total	5,857,000
Accumulated Depreciation	561,000
Real Estate 4 in Houston, TX | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	4,423,000
Initial Cost To Company
Land	3,121,000
Buildings and Improvements	3,767,000
Costs Capitalized Subsequent to Acquisition
Improvements	179,000
Gross Amount at Which Carried
Land	3,121,000
Buildings and Improvements	3,946,000
Total	7,067,000
Accumulated Depreciation	700,000
Real Estate in Littleton, CO | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	11,077,000
Initial Cost To Company
Land	6,005,000
Buildings and Improvements	11,272,000
Costs Capitalized Subsequent to Acquisition
Improvements	206,000
Gross Amount at Which Carried
Land	6,005,000
Buildings and Improvements	11,478,000
Total	17,483,000
Accumulated Depreciation	975,000
Real Estate in Philadelphia, PA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	4,276,000
Initial Cost To Company
Land	1,793,000
Buildings and Improvements	5,640,000
Costs Capitalized Subsequent to Acquisition
Improvements	80,000
Gross Amount at Which Carried
Land	1,793,000
Buildings and Improvements	5,720,000
Total	7,513,000
Accumulated Depreciation	511,000
Real Estate 1 in West Hartford, CT | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	17,211,000
Initial Cost To Company
Land	9,296,000
Buildings and Improvements	4,813,000
Costs Capitalized Subsequent to Acquisition
Improvements	261,000
Gross Amount at Which Carried
Land	9,296,000
Buildings and Improvements	5,074,000
Total	14,370,000
Accumulated Depreciation	1,055,000
Real Estate 2 in West Hartford, CT | Retail
Initial Cost To Company
Land	2,881,000
Buildings and Improvements	94,000
Costs Capitalized Subsequent to Acquisition
Improvements	326,000
Gross Amount at Which Carried
Land	2,881,000
Buildings and Improvements	420,000
Total	3,301,000
Accumulated Depreciation	148,000
Real Estate 1 in Columbus, OH | Retail
Initial Cost To Company
Land	1,445,000
Buildings and Improvements	5,431,000
Costs Capitalized Subsequent to Acquisition
Improvements	413,000
Gross Amount at Which Carried
Land	1,445,000
Buildings and Improvements	5,844,000
Total	7,289,000
Accumulated Depreciation	2,914,000
Real Estate in Duluth, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,558,000
Initial Cost To Company
Land	778,000
Buildings and Improvements	3,436,000
Gross Amount at Which Carried
Land	778,000
Buildings and Improvements	3,436,000
Total	4,214,000
Accumulated Depreciation	1,006,000
Real Estate in Fayetteville, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,956,000
Initial Cost To Company
Land	976,000
Buildings and Improvements	4,308,000
Gross Amount at Which Carried
Land	976,000
Buildings and Improvements	4,308,000
Total	5,284,000
Accumulated Depreciation	1,262,000
Real Estate in Wichita, KS | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,382,000
Initial Cost To Company
Land	1,189,000
Buildings and Improvements	5,248,000
Gross Amount at Which Carried
Land	1,189,000
Buildings and Improvements	5,248,000
Total	6,437,000
Accumulated Depreciation	1,537,000
Real Estate in Lexington, KY | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,602,000
Initial Cost To Company
Land	800,000
Buildings and Improvements	3,532,000
Gross Amount at Which Carried
Land	800,000
Buildings and Improvements	3,532,000
Total	4,332,000
Accumulated Depreciation	1,034,000
Real Estate in Bluffton, SC | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,180,000
Initial Cost To Company
Land	589,000
Buildings and Improvements	2,600,000
Gross Amount at Which Carried
Land	589,000
Buildings and Improvements	2,600,000
Total	3,189,000
Accumulated Depreciation	761,000
Real Estate in Amarillo, TX | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,723,000
Initial Cost To Company
Land	860,000
Buildings and Improvements	3,810,000
Gross Amount at Which Carried
Land	860,000
Buildings and Improvements	3,810,000
Total	4,670,000
Accumulated Depreciation	1,112,000
Real Estate in Austin, TX | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	3,179,000
Initial Cost To Company
Land	1,587,000
Buildings and Improvements	7,010,000
Gross Amount at Which Carried
Land	1,587,000
Buildings and Improvements	7,010,000
Total	8,597,000
Accumulated Depreciation	2,052,000
Real Estate in Tyler, TX | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,066,000
Initial Cost To Company
Land	1,031,000
Buildings and Improvements	4,554,000
Gross Amount at Which Carried
Land	1,031,000
Buildings and Improvements	4,554,000
Total	5,585,000
Accumulated Depreciation	1,333,000
Real Estate in Newport News, VA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,505,000
Initial Cost To Company
Land	751,000
Buildings and Improvements	3,316,000
Gross Amount at Which Carried
Land	751,000
Buildings and Improvements	3,316,000
Total	4,067,000
Accumulated Depreciation	971,000
Real Estate 1 in Richmond, VA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,736,000
Initial Cost To Company
Land	867,000
Buildings and Improvements	3,829,000
Gross Amount at Which Carried
Land	867,000
Buildings and Improvements	3,829,000
Total	4,696,000
Accumulated Depreciation	1,121,000
Real Estate in Virginia Beach, VA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	1,711,000
Initial Cost To Company
Land	854,000
Buildings and Improvements	3,770,000
Gross Amount at Which Carried
Land	854,000
Buildings and Improvements	3,770,000
Total	4,624,000
Accumulated Depreciation	1,104,000
Real Estate in Gurnee, IL | Retail
Initial Cost To Company
Land	834,000
Buildings and Improvements	3,635,000
Gross Amount at Which Carried
Land	834,000
Buildings and Improvements	3,635,000
Total	4,469,000
Accumulated Depreciation	1,026,000
Real Estate in Naples, FL | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,069,000
Initial Cost To Company
Land	3,070,000
Buildings and Improvements	2,846,000
Costs Capitalized Subsequent to Acquisition
Improvements	189,000
Gross Amount at Which Carried
Land	3,070,000
Buildings and Improvements	3,035,000
Total	6,105,000
Accumulated Depreciation	700,000
Real Estate in Batavia, NY | Retail
Initial Cost To Company
Land	515,000
Buildings and Improvements	2,061,000
Gross Amount at Which Carried
Land	515,000
Buildings and Improvements	2,061,000
Total	2,576,000
Accumulated Depreciation	972,000
Real Estate in Lake Charles, LA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	5,146,000
Initial Cost To Company
Land	1,167,000
Buildings and Improvements	4,669,000
Costs Capitalized Subsequent to Acquisition
Improvements	599,000
Gross Amount at Which Carried
Land	1,167,000
Buildings and Improvements	5,268,000
Total	6,435,000
Accumulated Depreciation	2,014,000
Real Estate 1 in Athens, GA | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,772,000
Initial Cost To Company
Land	1,130,000
Buildings and Improvements	4,340,000
Gross Amount at Which Carried
Land	1,130,000
Buildings and Improvements	4,340,000
Total	5,470,000
Accumulated Depreciation	1,478,000
Real Estate in Chicago, IL | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	3,735,000
Initial Cost To Company
Land	3,877,000
Buildings and Improvements	2,256,000
Gross Amount at Which Carried
Land	3,877,000
Buildings and Improvements	2,256,000
Total	6,133,000
Accumulated Depreciation	524,000
Real Estate in Cary, NC | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	3,151,000
Initial Cost To Company
Land	1,129,000
Buildings and Improvements	3,736,000
Gross Amount at Which Carried
Land	1,129,000
Buildings and Improvements	3,736,000
Total	4,865,000
Accumulated Depreciation	868,000
Real Estate in Eugene, OR | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,805,000
Initial Cost To Company
Land	1,952,000
Buildings and Improvements	2,096,000
Gross Amount at Which Carried
Land	1,952,000
Buildings and Improvements	2,096,000
Total	4,048,000
Accumulated Depreciation	487,000
Real Estate 2 in El Paso, TX | Retail
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	2,451,000
Initial Cost To Company
Land	1,035,000
Buildings and Improvements	2,700,000
Gross Amount at Which Carried
Land	1,035,000
Buildings and Improvements	2,700,000
Total	3,735,000
Accumulated Depreciation	627,000
Real Estate 1 in Greensboro, NC | Theatre
Initial Cost To Company
Buildings and Improvements	8,328,000
Gross Amount at Which Carried
Buildings and Improvements	8,328,000
Total	8,328,000
Accumulated Depreciation	7,170,000
Real Estate 3 in Indianapolis, IN | Theatre
Schedule III - Consolidated Real Estate and Accumulated Depreciation
Encumbrances	4,217,000
Initial Cost To Company
Land	3,099,000
Buildings and Improvements	5,225,000
Costs Capitalized Subsequent to Acquisition
Improvements	19,000
Gross Amount at Which Carried
Land	3,099,000
Buildings and Improvements	5,244,000
Total	8,343,000
Accumulated Depreciation	$ 451,000

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Schedule III - Consolidated Real Estate and Accumulated Depreciation (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Investment in real estate:
Balance, beginning of year	$ 748,065	$ 662,182	$ 592,668
Addition: Land, buildings and improvements	47,207	121,564	83,643
Deduction: Properties sold/conveyed	(19,792)	(35,681)	(14,129)
Deduction: Impairment loss	(153)
Balance, end of year	775,327	748,065	662,182
Accumulated depreciation:
Balance, beginning of year	96,852	87,801	77,643
Addition: Depreciation	15,689	14,247	12,680
Deduction: Accumulated depreciation related to properties sold/conveyed	(3,588)	(5,196)	(2,522)
Balance, end of year	108,953	$ 96,852	$ 87,801
Other disclosure
Amount by which aggregate cost of the properties is higher for federal income tax purposes	$ 13,260