10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC   20549

FORM 10-Q

xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2015

OR

oTransition 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	13-3147497
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification number)
60 Cutter Mill Road, Great Neck, New York	11021
(Address of principal executive offices)	(Zip code)

(516) 466-3100

(Registrant’s telephone number, including area code)

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  x  No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, 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  x  No  o

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

Large accelerated filer  o	Accelerated filer  x
Non-accelerated filer  o	Smaller reporting company  o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  o  No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of May 4, 2015, the registrant had 16,412,382 shares of common stock outstanding.

One Liberty Properties, Inc. and Subsidiaries

Table of Contents

		Page No.
Part I - Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheets — March 31, 2015 and December 31, 2014	1
	Consolidated Statements of Income — Three months ended March 31, 2015 and 2014	2
	Consolidated Statements of Comprehensive Income — Three months ended March 31, 2015 and 2014	3
	Consolidated Statements of Changes in Equity — Three months ended March 31, 2015 and year ended December 31, 2014	4
	Consolidated Statements of Cash Flows — Three months ended March 31, 2015 and 2014	5
	Notes to Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	34
Part II - Other Information
Item 6.	Exhibits	34

Part I — FINANCIAL INFORMATION

Item 1.    Financial Statements

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands, Except Par Value)

	March 31, 2015			December 31, 2014
	(Unaudited)
Assets
Real estate investments, at cost
Land	$	184,846		$	165,153
Buildings and improvements	440,443			416,272
Total real estate investments, at cost	625,289			581,425
Less accumulated depreciation	78,091			76,575
Real estate investments, net	547,198			504,850
Property held-for-sale	—			10,176
Investment in unconsolidated joint ventures	2,486			4,907
Cash and cash equivalents	23,153			20,344
Restricted cash	1,335			1,607
Unbilled rent receivable (including $120 related to property held-for-sale in 2014)	12,870			12,815
Unamortized intangible lease assets, net	29,104			27,387
Escrow, deposits and other assets and receivables	4,561			4,310
Unamortized deferred financing costs, net	3,981			4,043
Total assets	$	624,688		$	590,439
Liabilities and Equity
Liabilities:
Mortgages payable	$	304,808		$	292,049
Line of credit	28,250			13,250
Dividends payable	6,381			6,322
Accrued expenses and other liabilities	12,026			12,451
Unamortized intangible lease liabilities, net	15,028			10,463
Total liabilities	366,493			334,535
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; 15,822 and 15,728 shares issued and outstanding	15,822			15,728
Paid-in capital	220,935			219,867
Accumulated other comprehensive loss	(3,999		)	(3,195		)
Accumulated undistributed net income	23,352			21,876
Total One Liberty Properties, Inc. stockholders’ equity	256,110			254,276
Non-controlling interests in consolidated joint ventures	2,085			1,628
Total equity	258,195			255,904
Total liabilities and equity	$	624,688		$	590,439

See accompanying notes to consolidated financial statements.

1

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in Thousands, Except Per Share Data)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Revenues:
Rental income, net	$	13,894		$	13,813
Tenant reimbursements	782			589
Lease termination fee	650			—
Total revenues	15,326			14,402
Operating expenses:
Depreciation and amortization	3,734			3,577
General and administrative (including $507 and $708, respectively, to related parties)	2,392			2,211
Federal excise and state taxes	74			62
Real estate expenses (including $223 and $213, respectively, to related party)	1,334			1,098
Leasehold rent	77			77
Real estate acquisition costs	248			40
Total operating expenses	7,859			7,065
Operating income	7,467			7,337
Other income and expenses:
Equity in earnings of unconsolidated joint ventures	147			133
Other income	3			8
Purchase price fair value adjustment	960			—
Gain on sale of real estate, net	5,392			—
Prepayment costs on debt	(568		)	—
Interest:
Expense	(3,739		)	(3,953		)
Amortization and write-off of deferred financing costs	(455		)	(238		)
Income from continuing operations	9,207			3,287
Income from discontinued operations	—			13
Net income	9,207			3,300
Net income attributable to non-controlling interests	(1,351		)	(27		)
Net income attributable to One Liberty Properties, Inc.	$	7,856		$	3,273
Weighted average number of common shares outstanding:
Basic	15,776			15,356
Diluted	15,876			15,456
Per common share attributable to common stockholders - basic:	$	.48		$	.20
Per common share attributable to common stockholders - diluted:	$	.48		$	.20
Cash distributions declared per share of common stock	$	.39		$	.37

See accompanying notes to consolidated financial statements.

2

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in Thousands)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Net income	$	9,207		$	3,300
Other comprehensive loss
Net unrealized gain on available-for-sale securities	3			5
Net unrealized loss on derivative instruments	(734		)	(718		)
One Liberty Property’s share of joint venture net unrealized loss on derivative instruments	(48		)	(3		)
Other comprehensive loss	(779		)	(716		)
Comprehensive income	8,428			2,584
Comprehensive income attributable to non-controlling interests	(1,351		)	(27		)
Unrealized gain (loss) on derivative instruments attributable to non-controlling interests	25			(10		)
Comprehensive income attributable to One Liberty Properties, Inc.	$	7,102		$	2,547

See accompanying notes to consolidated financial statements.

3

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the three month period ended March 31, 2015 (Unaudited)

and the year ended December 31, 2014

(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 Joint Ventures			Total
Balances, December 31, 2013	$	15,221	$	210,324		$	(490	)	$	23,877		$	1,158		$	250,090
Distributions - common stock Cash - $1.50 per share	—		—			—			(24,117		)	—			(24,117		)
Shares issued through equity offering program — net	179		3,589			—			—			—			3,768
Restricted stock vesting	101		(101		)	—			—			—			—
Shares issued through dividend reinvestment plan	227		4,222			—			—			—			4,449
Contributions from non-controlling interests	—		—			—			—			639			639
Distributions to non-controlling interests	—		—			—			—			(228		)	(228		)
Compensation expense - restricted stock	—		1,833			—			—			—			1,833
Net income	—		—			—			22,116			94			22,210
Other comprehensive loss	—		—			(2,705		)	—			(35		)	(2,740		)
Balances, December 31, 2014	15,728		219,867			(3,195		)	21,876			1,628			255,904
Distributions - common stock Cash - $.39 per share	—		—			—			(6,380		)	—			(6,380		)
Restricted stock vesting	71		(71		)	—			—			—			—
Shares issued through dividend reinvestment plan	23		562			—			—			—			585
Contribution from non-controlling interest	—		—			—			—			663			663
Distributions to non-controlling interests	—		—			—			—			(1,582		)	(1,582		)
Compensation expense - restricted stock	—		577			—			—			—			577
Net income	—		—			—			7,856			1,351			9,207
Other comprehensive loss (gain)	—		—			(804		)	—			25			(779		)
Balances, March 31, 2015	$	15,822	$	220,935		$	(3,999	)	$	23,352		$	2,085		$	258,195

See accompanying notes to consolidated financial statements.

4

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands)

(Unaudited)

	Three Months Ended March 31,
	2015			2014
Cash flows from operating activities:
Net income	$	9,207		$	3,300
Adjustments to reconcile net income to net cash provided by operating activities:
Purchase price fair value adjustment	(960		)	—
Gain on sale of real estate	(5,392		)	—
Prepayment costs on debt	568			—
Increase in rental income from straight-lining of rent	(175		)	(336		)
Increase in rental income from amortization of intangibles relating to leases	(127		)	(56		)
Amortization of restricted stock expense	577			472
Equity in earnings of unconsolidated joint ventures	(147		)	(133		)
Distributions of earnings from unconsolidated joint ventures	212			113
Depreciation and amortization	3,734			3,577
Amortization and write-off of financing costs	455			240
Payment of leasing commissions	(550		)	(3		)
Changes in assets and liabilities:
(Increase) decrease in escrow, deposits, other assets and receivables	(84		)	1,099
Decrease in accrued expenses and other liabilities	(983		)	(1,028		)
Net cash provided by operating activities	6,335			7,245
Cash flows from investing activities:
Purchase of real estate	(31,413		)	(5,109		)
Improvements to real estate	(355		)	(38		)
Net proceeds from sale of real estate	16,025			5,177
Purchase of partner’s interest in unconsolidated joint venture	(6,300		)	—
Additional investment in unconsolidated joint venture	(3,664		)	—
Distributions of return of capital from unconsolidated joint ventures	575			7
Net cash (used in) provided by investing activities	(25,132		)	37
Cash flows from financing activities:
Scheduled amortization payments of mortgages payable	(1,875		)	(1,874		)
Repayment of mortgages payable	(12,168		)	(19,003		)
Prepayment costs on debt	(568		)	—
Proceeds from mortgage financings	28,268			27,735
Proceeds from sale of common stock, net	—			644
Proceeds from bank line of credit	29,900			3,500
Repayment on bank line of credit	(14,900		)	(13,900		)
Issuance of shares through dividend reinvestment plan	585			1,294
Payment of financing costs	(397		)	(260		)
Capital contribution from non-controlling interest	663			—
Distributions to non-controlling interests	(1,582		)	(75		)
Cash distributions to common stockholders	(6,320		)	(5,806		)
Net cash provided by (used in) financing activities	21,606			(7,745		)
Net increase (decrease) in cash and cash equivalents	2,809			(463		)
Cash and cash equivalents at beginning of period	20,344			16,631
Cash and cash equivalents at end of period	$	23,153		$	16,168

Continued on next page

5

ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands)

(Unaudited) (Continued)

	Three Months Ended March 31,
	2015			2014
Supplemental disclosures of cash flow information:
Cash paid during the period for interest expense	$	3,783		$	4,027
Cash paid during the period for Federal excise tax	300			64
Supplemental schedule of non-cash investing and financing activities:
Mortgage debt extinguished upon conveyance of property to mortgagee by deed-in-lieu of foreclosure	$	1,466		$	—
Consolidation of real estate investment	2,633			—
Purchase accounting allocation - intangible lease assets	2,518			408
Purchase accounting allocation - intangible lease liabilities	4,813			371
Restricted cash for tenant improvements and other reserve, net	(272		)	—

See accompanying notes to consolidated financial statements.

6

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015

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 retail, industrial, flex, health and fitness and other properties, a substantial portion of which are subject to long-term net leases.  As of
March 31, 2015, OLP owns 116 properties, including seven properties owned by consolidated joint ventures and four properties owned by unconsolidated joint ventures. The 116 properties are located in 30 states.

Note 2 — Summary Accounting Policies

Principles of Consolidation/Basis of Preparation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in OLP’s Annual Report on Form 10-K for the year ended December 31, 2014.

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

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

The Company assesses the accounting treatment for each joint venture investment. This assessment includes a review of each joint venture or limited liability company 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 the Company and its partner, among other things, (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 the joint venture as the Company considers these to be substantive participation rights that result in shared power over the activities that most significantly impact the performance of the joint venture.

7

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 2 - Summary Accounting Policies (continued)

The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting.  All investments in these 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 VIE’s.  In addition, although the Company is the managing member, it does not exercise substantial operating control 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.

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 from other parties. 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 of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

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.  In situations where the Company does not have the power over tenant activities that most significantly impact the performance of the property, the Company would not consolidate tenant operations.

Properties Held for Sale

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held-for-sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Additionally, the guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation.  The Company early adopted the guidance effective January 1, 2014 for disposals (or classifications as held-for-sale) that have not been reported in financial statements previously issued.  It did not apply to the two properties sold in February 2014 because these properties were previously classified as properties held-for-sale as of December 31, 2013 and will continue to be accounted for as discontinued operations for the periods presented. It is expected that most of the Company’s future dispositions will not meet the criteria for being treated as a discontinued operation.

8

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 2 - Summary Accounting Policies (continued)

Real estate investments are classified as held-for-sale when management has determined that it has met the applicable criteria.  Real estate investments which are held-for-sale are not depreciated.

Tenant Reimbursements

Tenant reimbursements represent contractually obligated reimbursements from tenants for recoverable real estate taxes and operating expenses and are recognized when earned.

Reclassifications

Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current period’s presentation; primarily to break out tenant reimbursements of $589,000 that had been included in rental income, net, on the consolidated statements of income for the three months ended March 31, 2014.

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 each 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 and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders, other than the holders of unvested restricted stock.  The restricted stock units awarded under the Pay-for-Performance program are excluded from the basic earnings per share calculation, as these units are not participating securities (see Note 14).

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.  For the three months ended March 31, 2015 and 2014, the diluted weighted average number of shares of common stock includes 100,000 shares (of an aggregate of 200,000 shares) of common stock underlying the restricted stock units awarded pursuant to the Pay-For-Performance program.  These 100,000 shares may vest upon satisfaction of the total stockholder return metric. The number of shares that would be issued pursuant to this metric is based on the market price and dividends paid as of the end of each quarterly period assuming the end of that quarterly period was the end of the vesting period.  The remaining 100,000 shares of common stock underlying the restricted stock units awarded under the Pay-For-Performance program are not included during the three months ended March 31, 2015 and 2014, as they did not meet the return on capital performance metric during such periods.

There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock during the three months ended March 31, 2015 and 2014.

9

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

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):

	Three Months Ended March 31,
	2015			2014
Numerator for basic and diluted earnings per share:
Income from continuing operations	$	9,207		$	3,287
Less net income attributable to non-controlling interests	(1,351		)	(27		)
Less earnings allocated to unvested restricted stock (a)	(261		)	(178		)
Income from continuing operations available for common stockholders	7,595			3,082
Discontinued operations	—			13
Net income available for common stockholders, basic and diluted	$	7,595		$	3,095
Denominator for basic earnings per share:
- weighted average common shares	15,776			15,356
Effect of diluted securities:
- restricted stock units awarded under Pay-for-Performance program	100			100
Denominator for diluted earnings per share
- weighted average shares	15,876			15,456
Earnings per common share, basic	$	.48		$	.20
Earnings per common share, diluted	$	.48		$	.20
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests:
Income from continuing operations	$	7,856		$	3,260
Income from discontinued operations	—			13
Net income attributable to One Liberty Properties, Inc.	$	7,856		$	3,273

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

10

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 4 - Real Estate Acquisitions

The following chart details the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs (a)
Marston Park Plaza retail stores, Lakewood, Colorado (b)	February 25, 2015	$	17,485	Cash and $11,853 mortgage (c)	$	184
Interline Brands distribution facility, Louisville, Kentucky	March 18, 2015	4,400		Cash and $2,640 mortgage (d)	44
Land — The Meadows Apartments, Lakemoor, Illinois	March 24, 2015	9,300		All cash	—		(e)
Joint venture interest- Shopko retail store, Lincoln, Nebraska (f)	March 31, 2015	6,300		All cash (f)	—
Other costs (g)		—			20
Totals		$	37,485		$	248

(a)Included as an expense in the accompanying consolidated statements of income.

(b)Owned by a joint venture in which the Company has a 90% interest.  The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase.

(c)The mortgage debt obtained in connection with the purchase bears interest at 4.12% per annum and matures February 2025.

(d)The mortgage debt obtained in connection with the purchase bears interest at 3.88% per annum and matures February 2021.

(e)Transaction costs aggregating $228 incurred with this asset acquisition were capitalized.

(f)The Company purchased its unconsolidated joint venture partner’s 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partner’s 50% share of the underlying joint venture mortgage.

(g)Costs incurred for transactions that were not consummated.

The following chart provides the preliminary allocation of the purchase price for the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands):

					Building		Intangible Lease
Description of Property	Land		Building		Improvements		Asset		Liability			Total
Marston Park Plaza retail stores, Lakewood, Colorado	$	6,005	$	10,109	$	700	$	1,493	$	(822	)	$	17,485
Interline Brands distribution facility, Louisville, Kentucky	578		3,622		105		95		—			4,400
Land — The Meadows Apartments, Lakemoor, Illinois (a)	9,528		—		—		—		—			9,528
Shopko retail store, Lincoln, Nebraska (b)	4,009		11,040		574		930		(3,960		)	12,593
Subtotals	20,120		24,771		1,379		2,518		(4,782		)	44,006
Other (c)	12		19		—		—		(31		)	—
Totals	$	20,132	$	24,790	$	1,379	$	2,518	$	(4,813	)	$	44,006

(a)Includes capitalized transaction costs of $228 incurred with this asset acquisition.

(b)Fair value of the assets previously owned by an unconsolidated joint venture of the Company.  The Company owns 100% of this property as a result of its purchase of its partner’s 50% interest on March 31, 2015.

(c)Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014.

11

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 4 - Real Estate Acquisitions (continued)

With the exception of the Lakewood, Colorado property, the properties purchased by the Company in 2015 are each net leased and occupied by a single tenant pursuant to leases that expire between 2021 through 2045.  The Lakewood, Colorado property has 29 tenant spaces and is 94.5% occupied with leases expiring between 2015 and 2032.

As a result of the Company’s purchase on March 31, 2015 of its partner’s 50% interest in an unconsolidated joint venture that owns a property in Lincoln, Nebraska, it obtained a controlling financial interest. In accordance with GAAP, the Company had presented the investee in accordance with the equity method for the periods prior to gaining control and ceased equity method of accounting and consolidated the investment at March 31, 2015; the date which 100% control was obtained.  In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statements 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 investment.

As a result of the 2015 acquisitions, the Company recorded intangible lease assets of $2,518,000 and intangible lease liabilities of $4,782,000, representing the value of the origination costs and acquired leases.  As of March 31, 2015, the weighted average amortization period for these acquisitions is 7.0 years for the intangible lease assets and 6.7 years for the intangible lease liabilities. 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 15) in the fair value hierarchy. The Company is currently in the process of finalizing the purchase price allocations for the properties acquired during the three months ended March 31, 2015; therefore the allocations are preliminary and subject to change.

Note 5 — Sale and Disposal of Properties and Discontinued Operations

On January 13, 2015, a consolidated joint venture of the Company sold a property located in Cherry Hill, New Jersey for approximately $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 three months ended March 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) and a $249,000 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). The non-controlling interest’s share of income from the transaction is $1,320,000.

On January 6, 2015, the Company’s property located in Morrow, Georgia was acquired by the mortgagee through a foreclosure proceeding.

On February 3, 2014, the Company sold two properties located in Michigan for a total sales price of $5,177,000, net of closing costs.  At December 31, 2013, the Company recorded a $61,700 impairment charge representing the loss on the sale of these properties. Income from discontinued operations applicable to these properties for the three months ended March 31, 2014 totaled $13,000 which was comprised of rental income of $141,000 less real estate expenses of $17,000 and mortgage interest of $111,000.

12

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 6 — Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures

Unconsolidated Variable Interest Entities

In June 2014, the Company purchased land for $6,510,000 in Sandy Springs, Georgia improved with a 196 unit apartment complex and in March 2015, the Company purchased land for $9,300,000 in Lakemoor, Illinois improved with a 496 unit apartment complex.  With each purchase, the Company simultaneously entered into a long-term triple net ground lease with the owner/operator of each complex.

The Company determined that it has a variable interest through its ground leases and the owner/operators are VIEs because their equity investment at risk is not sufficient to finance its activities without additional subordinated financial support.  Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party ($16,230,000 for Sandy Springs and $43,824,000 for Lakemoor) which, together with the Company’s purchase of the land, provided substantially all of the aggregate 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.

The Company further determined that for each acquisition it is not the primary beneficiary because the Company does not have the power to direct the activities that most significantly impact the owner/operator’s economic performance such as management, operational budgets and other rights, including leasing of the units and therefore, does not consolidate the VIEs for financial statement purposes.  Accordingly, the Company accounts for its investments as land and the revenues from the ground leases as Rental income, net.

The following is a summary of the Company’s variable interests in identified VIEs, in which it is not the primary beneficiary, and the aggregate carrying amount and maximum exposure to loss as of March 31, 2015 (amounts in thousands):

Property	Type of Exposure	Carrying Amount		Maximum Exposure to Loss
River Crossing Apartments, Sandy Springs, Georgia	Land	$	6,528	$	6,528
	Unbilled rent receivable	281		281
The Meadows Apartments, Lakemoor, Illinois	Land	9,528		9,528
Total		$	16,337	$	16,337

The Company accounts for its investments as land and the revenues from the ground leases as Rental income, net, which amounted to $252,000 for the three months ended March 31, 2015. There was no such revenue in the three months ended March 31, 2014.

13

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 6 – Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures (continued)

Pursuant to the terms of the ground lease for the property in Sandy Springs, Georgia, the owner/operator is obligated to make certain unit renovations as and when units become vacant.  A cash reserve with a balance of $1,335,000 at March 31, 2015 is held on behalf of the owner/operator to cover renovation work and other reserve requirements and is classified as Restricted cash on the consolidated balance sheet.

Consolidated Variable Interest Entity

In June 2014, the Company entered into a joint venture, in which the Company has a 95% equity interest, and acquired a property located in Joppa, Maryland.  The Company also made a senior preferred equity investment in the joint venture.  The Company determined that this joint venture is a VIE as the Company’s voting rights are not proportional to its economic interests and substantially all of the joint venture’s activities are conducted by the Company.  The Company further determined that it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact the joint venture’s performance including management, approval of expenditures, and the obligation to absorb the losses or rights to receive benefits from the VIE.  Accordingly, the Company consolidates the operations of this joint venture for financial statement purposes.  At March 31, 2015, the carrying amounts and classification in the Company’s consolidated balance sheets were assets (none of which are restricted) consisting of land of $3,815,000, building and improvements (net of depreciation) of $8,016,000, cash of $451,000, prepaid expenses and receivables of $43,000, accrued expenses and other liabilities of $181,000 and non-controlling interest in joint venture of $323,000.  The joint venture’s creditors do not have recourse to the assets of the Company other than those held by the joint venture.

Non-VIE Consolidated Joint Ventures

With respect to six consolidated joint ventures in which the Company has between an 85% to 95% interest, the Company has determined that (i) such ventures are not VIE’s and (ii) the Company exercises substantial operating control and accordingly, such ventures are consolidated for financial statement purposes.

MCB Real Estate, LLC and its affiliates are the Company’s joint venture partner in five consolidated joint ventures (including the Joppa, Maryland joint venture described above).  At March 31, 2015, the Company has aggregate equity investments of approximately $19,000,000 in such ventures.

Distributions by Consolidated Joint Ventures

The 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.

14

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 7 - Investment in Unconsolidated Joint Ventures

The Company has investments in four and five unconsolidated joint ventures at March 31, 2015 and December 31, 2014, respectively, each of which owned and operated one property. The Company’s equity investment in such unconsolidated joint ventures at such dates totaled $2,486,000 and $4,907,000, respectively.  The Company recorded equity in earnings of $147,000 and $133,000 for the three months ended March 30, 2015 and 2014, respectively.

On March 31, 2015, the Company purchased its partner’s 50% interest in one of these unconsolidated joint ventures for $6,300,000 (see note 4).

Note 8 — Lease Termination Fee Income

In March 2015, the Company received a $650,000 lease termination fee from an industrial tenant in a lease buy-out transaction.  In connection with the receipt of this fee, the Company wrote-off $226,000 as an offset to rental income, representing the entire balance of the unbilled rent receivable related to the sole tenant at this property.  The Company re-leased this property simultaneously with the termination of the lease.

Note 9 - Allowance for Doubtful Accounts

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rent payments.  If the financial condition of a specific tenant were to deteriorate resulting in an impairment of its ability to make payments, additional allowances may be required.  At March 31, 2015 and December 31, 2014, there was no balance in allowance for doubtful accounts.

The Company records bad debt expense as a reduction of rental income. For the three months ended March 31, 2015 and 2014, the Company did not incur any bad debt expense.

Note 10 - Line of Credit

On December 31, 2014, the Company entered into an amendment to its $75,000,000 credit facility with Manufacturers & Traders Trust Company, VNB New York, LLC, Bank Leumi USA and Israel Discount Bank of New York, which, among other things, extended the facility’s maturity to December 31, 2018 from March 31, 2015, decreased the minimum required average bank deposit balances to $3 million and eliminated the 4.75% interest rate floor. Under the amendment, the interest rate equals the one month LIBOR rate plus an applicable margin which ranges 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.  An unused facility fee of .25% per annum applies to the facility.  The interest rate on the facility in the first quarter of 2015 was approximately 1.92%.  Prior to the amendment, the interest rate was 4.75% per annum.  In connection with the amendment, the Company incurred a $562,500 commitment fee which will be amortized over the remaining term of the facility.  At March 31, 2015 and May 4, 2015, there were outstanding balances of $28,250,000 and $24,250,000, respectively, under the facility. The Company was in compliance with all covenants at March 31, 2015.

15

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 11 — Related Party Transactions

The Company agreed to pay quarterly fees of $633,750 in 2015 (including overhead expenses of $48,900 and property management fees of $223,100) pursuant to the compensation and services agreement, as amended, with Majestic Property Management Corp., a company wholly-owned by the Company’s vice-chairman.  For the three months ended March 31, 2014, such fees were $825,000 (including overhead expenses of $46,600 and property management fees of $212,500). The 2015 amount reflects an adjustment to the compensation and services agreement that was effective July 1, 2014.

For 2015 and 2014, the Company agreed to pay quarterly fees of $65,625 and $62,500, respectively, to the Company’s chairman and $26,250 and $25,000, respectively, to the Company’s vice-chairman.

The chairman and vice-chairman fees and the fees paid under the compensation and services agreement are included in general and administrative expense on the consolidated statements of income, except for the property management fees which are included in real estate expenses on the consolidated statements of income.

During the three months ended March 31, 2015 and 2014, a portion of the Company’s property insurance ($57,000 and $50,000, respectively) was obtained in conjunction with Gould Investors L.P., a related party. This expense, which represents the Company’s proportionate share of property insurance premiums paid by Gould Investors, is included in real estate expenses on the consolidated statements of income.

During the three months ended March 31, 2015 and 2014, the Company paid an aggregate of $105,000 and $12,000, respectively, to its joint venture partners or their affiliates for property management and acquisition fees, which were included on the consolidated statements of income.

Note 12 - Common Stock Cash Dividend

On March 10, 2015, the Board of Directors declared a quarterly cash dividend of $.39 per share on the Company’s common stock, totaling $6,381,000. The quarterly dividend was paid on April 7, 2015 to stockholders of record on March 27, 2015.

Note 13 - Shares Issued through Equity Offering Program

On March 20, 2014, the Company entered into an amended and restated equity offering sales agreement to sell shares of the Company’s common stock from time to time with an aggregate sales price of up to approximately $38,360,000, through an “at the market” equity offering program.  The Company has not sold any shares in 2015.

16

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 14 - Stock Based Compensation

A maximum of 600,000 shares of the Company’s common stock is authorized for issuance pursuant to the Company’s 2012 Incentive Plan, of which 359,000 shares of restricted stock are outstanding as of March 31, 2015.  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.  An aggregate of 381,000 shares of restricted stock and restricted stock units outstanding under the Company’s 2009 equity incentive plan have not yet vested and no additional awards may be granted under this plan.

Pursuant to the Pay-for-Performance Program, there are 200,000 performance share awards in the form of restricted stock units (the “Units”) outstanding under the Company’s 2009 Incentive Plan. The holders of Units are not entitled to dividends or to vote the underlying shares until the Units vest and shares are issued. Accordingly, for accounting purposes, the shares underlying the Units are not included in the shares shown as outstanding on the balance sheet.  No Units were forfeited or vested in the three months ended March 31, 2015.

As of March 31, 2015 and December 31, 2014, there were no options outstanding under the Company’s equity incentive plans.

The following is a summary of the activity of the equity incentive plans (excluding, except as otherwise noted, the 200,000 Units):

	Three Months Ended March 31,
	2015			2014
Restricted share grants	129,975			118,850
Per share grant price	$	24.60		$	20.54
Deferred compensation to be recognized over vesting period	$	3,197,000		$	2,441,000
Number of non-vested shares:
Non-vested beginning of period	480,995			470,015
Grants	129,975			118,850
Vested during period	(70,685		)	(101,300		)
Forfeitures	—			(6,520		)
Non-vested end of period	540,285			481,045
Average per share value of non-vested shares (based on grant price)	$	17.12		$	14.55
Value of shares vested during the period (based on grant price)	$	586,000		$	621,000
The total charge to operations for all incentive plans, including the 200,000 units, is as follows:
Outstanding restricted stock grants	$	548,000		$	443,000
Outstanding restricted stock units	29,000			29,000
Total charge to operations	$	577,000		$	472,000

17

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 14 - Stock Based Compensation  (continued)

As of March 31, 2015, there were approximately $7,476,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $267,000 related to the Units (net of forfeiture and performance assumptions which are re-evaluated quarterly). These compensation costs will be charged to general and administrative expense over the remaining respective vesting periods. The weighted average vesting period is approximately 2.8 years.

Note 15 - 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.  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 significantly on “unobservable” market inputs.

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

At March 31, 2015, the $316,839,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $12,031,000 assuming a blended market interest rate of 4.16% based on the 9.1 year weighted average remaining term of the mortgages.  At December 31, 2014, the $300,541,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $8,492,000 assuming a blended market interest rate of 4.5% based on the 9.1 year weighted average remaining term of the mortgages.

At March 31, 2015 and December 31, 2014, the $28,250,000 and $13,250,000, respectively, carrying amount of the Company’s line of credit 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.

18

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 15 - Fair Value Measurements (continued)

Fair Value on a Recurring Basis

The fair value of the Company’s available-for-sale securities and derivative financial instruments was determined using the following inputs (amounts in thousands):

		Carrying and		Fair Value Measurements on a Recurring Basis
	As of	Fair Value		Level 1		Level 2
Financial assets:
Available-for-sale securities:
Equity securities	March 31, 2015	$	32	$	32	$	—
	December 31, 2014	29		29		—
Derivative financial instruments:
Interest rate swaps	March 31, 2015	$	—	$	—	$	—
	December 31, 2014	27		—		27
Financial liabilities:
Derivative financial instruments:
Interest rate swaps	March 31, 2015	$	3,851	$	—	$	3,851
	December 31, 2014	3,139		—		3,139

The Company does not own any financial instruments that are classified as Level 3.

Available-for-sale securities

At March 31, 2015, the Company’s available-for-sale securities included a $32,400 investment in equity securities (included in other assets on the consolidated balance sheet). The aggregate cost of these securities was $5,300 and at March 31, 2015, the unrealized gain was $27,100.  Such unrealized gains are included in accumulated other comprehensive loss on the consolidated balance sheet.  Fair values are approximated based on current market quotes from financial sources that track such securities.

19

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 15 - Fair Value Measurements (continued)

Derivative financial instruments

The Company’s objective in using interest rate swaps is to add stability to interest expense and to manage its exposure to interest rate movements. 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 that 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 March 31, 2015, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives.  As a result, the Company determined that its derivative valuation is classified in Level 2 of the fair value hierarchy.

As of March 31, 2015, the Company had entered into 18 interest rate derivatives, all of which were interest rate swaps, related to 18 outstanding mortgage loans with an aggregate $80,704,000 notional amount and mature between 2016 and 2024 (weighted average maturity of 6.9 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 3.55% to 5.75% and a weighted average interest rate of 4.67% at March 31, 2015).  The fair value of the Company’s derivatives designated as hedging instruments in asset and liability positions reflected as other assets or other liabilities on the consolidated balance sheets were $0 and $3,851,000, respectively, at March 31, 2015, and $27,000 and $3,139,000, respectively, at December 31, 2014.

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 March 31, 2015 with an aggregate $11,166,000 notional amount.  These interest rate swaps, which were designated as cash flow hedges, have interest rates of 3.49% and 5.81% and mature between April 2018 and March 2022.

20

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 15 - Fair Value Measurements (continued)

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):

	Three Months EndedMarch 31,
	2015			2014
One Liberty Properties and Consolidated Subsidiaries
Amount of loss recognized on derivatives in Other comprehensive loss	$	(1,623	)	$	(1,106	)
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense	(889		)	(388		)
Unconsolidated Joint Ventures (Company’s share)
Amount of loss recognized on derivative in Other comprehensive loss	(71		)	(7		)
Amount of loss reclassification from accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures	(22		)	(14		)

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 months ended March 31, 2015 and 2014.  During the three months ended March 31, 2015, the Company terminated one of its interest rate swaps, in connection with the sale of its Cherry Hill, New Jersey property, and accelerated the reclassification of amounts in other comprehensive loss to earnings as a result of the hedged forecasted transactions being terminated. The accelerated amount was a loss of $472,000 and is included in Prepayment costs on debt on the Company’s consolidated statements of income.  During the twelve months ending March 31, 2016, the Company estimates an additional $1,526,000 will be reclassified from other comprehensive income (loss) as an increase to interest expense.

The derivative agreements in effect at March 31, 2015 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 one of 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.

As of March 31, 2015, the fair value of the derivatives in a liability position, including accrued interest, and excluding any adjustments for nonperformance risk, was approximately $4,209,000.  In the unlikely event that 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 $4,209,000.  This termination liability value, net of $358,000 adjustments for nonperformance risk, or $3,851,000, is included in accrued expenses and other liabilities on the consolidated balance sheets at March 31, 2015.

21

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 16 - New Accounting Pronouncements

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company has not elected early adoption and is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs, which amends the balance sheet presentation for debt issuance costs. Under the amended guidance, a company will present unamortized debt issuance costs as a direct deduction from the carrying amount of that debt liability. The guidance is to be applied on a retrospective basis, and is effective for annual reporting periods beginning after December 15, 2015, with early adoption being permitted.  The Company is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements.

In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which simplifies income statement presentation by eliminating extraordinary items from US GAAP. The ASU retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. The ASU is effective in annual periods, and interim periods within those annual periods, beginning after December 15, 2015.  Early adoption is permitted; however, adoption must occur at the beginning of an annual period.  An entity can elect to apply the guidance prospectively or retrospectively.  The Company had elected early adoption for the year ended December 31, 2014, and its adoption did not have any impact on its consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), which provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures.  For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued.  The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.  Early application is permitted.  The Company has elected early adoption for the year ending December 31, 2015, and its adoption is not expected to have any impact on its consolidated financial statements.

22

One Liberty Properties, Inc. and Subsidiaries

Notes to Consolidated Financial Statements (Unaudited)

March 31, 2015 (Continued)

Note 16 - New Accounting Pronouncements (continued)

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. This update is effective for interim and annual reporting periods beginning after December 15, 2017 and early adoption is not permitted. The new guidance can be applied either retrospectively to each prior reporting period presented, or as a cumulative-effect adjustment as of the date of adoption.  The Company is currently in the process of evaluating the impact, if any, the adoption of this ASU will have on its consolidated financial statements.

Note 17 - Subsequent Events

Subsequent events have been evaluated and there are no events relative to the Company’s consolidated financial statements that require additional disclosure.

23

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q 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,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or variations thereof.  Forward-looking statements should not be relied on 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.  Investors are encouraged to review the risk factors included in our Annual Report on Form 10-K for the year ended December 31, 2014 under the caption “Item 1A. Risk Factors” for a discussion of certain factors which may cause actual results to differ materially from current expectations and are cautioned not to place undue reliance on any forward-looking statements.

Highlights of the Quarter Ended March 31, 2015

We acquired four properties (including the purchase of our partner’s 50% interest in a joint venture that owns a property in Lincoln, Nebraska) for an aggregate purchase price of $37.5 million (including mortgage debt of $14.5 million incurred in connection with two of the acquisitions). These acquisitions contributed $181,000 of rental income in this quarter - one acquisition was completed in mid-February and three acquisitions were completed in mid to late March. We estimate that commencing April 1, 2015, the rental income (calculated on a straight-line basis) from these four properties will be approximately $1.1 million per quarter.

We sold our Cherry Hill, New Jersey retail property in January 2015 resulting in a gain of approximately $5.4 million, before giving effect to a swap breakage charge of $472,000 and the write-off of $249,000 of the remaining deferred financing cost. The non-controlling interest’s share of income from the transaction is $1.3 million.  This property generated $348,000 of rental income in the three months ended March 31, 2014.

We obtained net proceeds of $28.3 million from mortgage financings (including $14.5 million in connection with two properties acquired in 2015).The weighted average interest rate on these mortgages is 4.0% and the weighted average remaining term is 9.7 years.

24

Overview

We are a self-administered and self-managed real estate investment trust, organized in Maryland in 1982.  We acquire, own and manage a geographically diversified portfolio of retail (including furniture stores, restaurants, office supply stores and supermarkets), industrial, flex, health and fitness and other properties, a substantial portion of which are leased under long-term net leases.  As of March 31, 2015, we own 116 properties (including seven properties owned by consolidated joint ventures and four properties owned by unconsolidated joint ventures) located in 30 states. Based on square footage, our occupancy rate at March 31, 2015 is approximately 99.1%.

We face a variety of risks and challenges in our business. 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.

We seek to manage the risk of our real property portfolio by diversifying among types of properties and industries, locations, tenants and scheduled lease expirations. 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, obtaining other tenant related financial information, regular contact with tenant’s representatives, tenant credit checks and regular management reviews of our tenants.

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.

Further, we are sensitive to the risks facing the retail industry as a result of the growth of e-commerce.  We are addressing this exposure by seeking to acquire properties that we believe capitalize on e-commerce activities, such as e-commerce distribution and warehousing facilities - however, we intend to continue to acquire retail properties as we deem appropriate.

We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute currently at least 90% of ordinary taxable income to our stockholders.  We intend to comply with these requirements and to maintain our REIT status.

Our 2015 contractual rental income is approximately $56.5 million and represents, after giving effect to any abatements, concessions or adjustments, the base rent payable to us in calendar year 2015 under leases in effect at March 31, 2015. The 2015 contractual rental income excludes approximately $1.1 million of straight-line rent, amortization of approximately $651,000 of intangibles, and our share of the rental income payable to our unconsolidated joint ventures, which in 2015 will be approximately $890,000.

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The following table sets forth scheduled lease expirations of leases for our properties (excluding unconsolidated joint ventures) as of March 31, 2015 for the calendar years indicated below:

Year of Lease Expiration (1)	Number of Expiring Leases	Approximate Square Footage Subject to Expiring Leases	2015 Contractual Rental Income Under Expiring Leases		Percent of 2015 Contractual Rental Income Represented by Expiring Leases
2015	10	400,901	$	1,722,534	3.0	%
2016	14	412,845	3,342,963		5.9
2017	18	127,625	2,404,501		4.3
2018	23	409,588	5,806,960		10.3
2019	10	124,648	1,620,264		2.9
2020	10	188,878	4,603,194		8.1
2021	12	472,454	3,585,654		6.4
2022	11	1,371,615	11,001,473		19.5
2023	7	562,820	3,998,783		7.1
2024	4	207,779	1,358,143		2.4
2025 and thereafter	27	2,222,581	17,013,011		30.1
	146	6,501,734	$	56,457,480	100.0	%

(1)Lease expirations assume tenants do not exercise existing renewal options.

Results of Operations

The following table compares revenues for the periods indicated:

	Three Months Ended March 31,				Increase		%
(Dollars in thousands)	2015		2014		(Decrease)		Change
Revenues:
Rental income, net	$	13,894	$	13,813	$	81	0.6	%
Tenant reimbursements	782		589		193		32.8
Lease termination fee	650		—		650		n/a
Total revenues	$	15,326	$	14,402	$	924	6.4

Revenues

Rental income.  The net increase is due to the properties acquired in 2014 and 2015 offset by, among other things, the loss of income from properties that were sold in such periods. Specifically, the increase is due primarily to $1.2 million generated by nine properties acquired in 2014, $181,000 from properties acquired in the three months ended March 31, 2015 (one acquisition was completed in mid-February, and three were completed in mid-to-late March), and $107,000 from leasing vacant space at a property. We estimate that commencing April 1, 2015, the rental income from the four properties acquired in the three months ended March 31, 2015 will be approximately $1.1 million per quarter (calculated on a straight-line basis). Offsetting this increase is the (i) inclusion, in the 2014 period, of $1.0 million from three properties that were sold or disposed of from October 2014 through mid-January 2015 (including the sale, for substantial gains, of the Parsippany and Cherry Hill, New Jersey

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properties), and (ii) $226,000 write-off against rental income, in the 2015 period, of the entire balance of unbilled rent receivable related to the lease termination fee described below.

Tenant reimbursements.  Real estate tax and operating expense reimbursements increased by (i) $192,000 from five properties acquired since May 2014 and (ii) $94,000 due to a net increase from various properties. Partially offsetting the increase was a decrease of $93,000 due to the sale of the Cherry Hill, New Jersey property.

Lease termination fee.  In March 2015, we received a lease termination fee of $650,000 from an industrial tenant in a lease buy-out transaction.  We re-leased this property simultaneously with the termination of the lease.

The following table compares operating expenses for the periods indicated:

	Three Months Ended March 31,				Increase		%
(Dollars in thousands)	2015		2014		(Decrease)		Change
Operating expenses:
Depreciation and amortization	$	3,734	$	3,577	$	157	4.4	%
General and administrative	2,392		2,211		181		8.2
Federal excise and state taxes	74		62		12		19.4
Real estate expenses	1,334		1,098		236		21.5
Leasehold rent	77		77		—		—
Real estate acquisition costs	248		40		208		520.0
Total operating expenses	7,859		7,065		794		11.2
Operating income	$	7,467	$	7,337	$	130	1.8	%

Operating Expenses

Depreciation and amortization.  The three months ended March 31, 2015 includes $401,000 related to properties we acquired in 2014 and 2015 ($332,000 from the properties acquired in 2014) and $81,000 from amortization of property improvements and leasing commissions. The comparison for the three months ended March 31, 2015 and 2014 is impacted, in the current period, by the inclusion, in the 2014 period, of an aggregate $297,000 related to the Parsippany and Cherry Hill, New Jersey properties which were sold in late 2014 and early 2015, respectively.  We estimate that depreciation expense related to the properties acquired in the three months ended March 31, 2015 will be approximately $284,000 per quarter.

General and administrative expenses.  Contributing to the change were increases of: (i) $106,000 in non-cash compensation expense related to the increase in the number of restricted stock awards granted in 2015 and the higher fair value of such awards at the time of grant; and (ii) $103,000 in net compensation expense due to higher compensation levels.

Real estate expenses.  The increase is due primarily to $203,000 from five properties acquired since May 2014, substantially all of which is rebilled to tenants, and several other increases in various real estate expenses, none of which was individually significant. The increase was offset by the decrease in expenses at our Cherry Hill, New Jersey property as a result of its sale in January 2015.

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Real estate acquisition costs.  These costs, which include acquisition fees (including a fee paid to our joint venture partner), legal and other transactional costs and expenses, increased primarily in connection with the acquisition of a property in February 2015.

Other Income and Expenses

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

	Three Months Ended March 31,						Increase			%
(Dollars in thousands)	2015			2014			(Decrease)			Change
Other income and expenses:
Equity in earnings of unconsolidated joint ventures	$	147		$	133		$	14		10.5	%
Other income	3			8			(5		)	(62.5	)
Purchase price fair value adjustment	960			—			960			n/a
Gain on sale of real estate, net	5,392			—			5,392			n/a
Prepayment costs on debt	(568		)	—			568			n/a
Interest:
Expense	(3,739		)	(3,953		)	(214		)	(5.4	)
Amortization and write-off of deferred financing costs	(455		)	(238		)	217			91.2

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

Gain on sale of real estate, net.  We realized this gain from the January 2015 sale of the Cherry Hill, New Jersey property.

Prepayment costs on debt. These costs result primarily from the sale of the Cherry Hill, New Jersey property, as we incurred a swap breakage fee in connection with our payoff, prior to maturity, of the related mortgage. Additionally, we paid off two other mortgages prior to their respective maturities and incurred prepayment charges in connection with their payoffs.

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

	Three Months Ended March 31,				Increase			%
(Dollars in thousands)	2015		2014		(Decrease)			Change
Interest expense:
Credit line interest	$	97	$	257	$	(160	)	(62.3	)%
Mortgage interest	3,642		3,696		(54		)	(1.5	)
Total	$	3,739	$	3,953	$	(214	)	(5.4	)%

Credit line interest

The decrease is primarily due to the $8.8 million decrease in the weighted average balance outstanding under our line of credit in the three months ended March 31, 2015 and, to a lesser extent, the decrease in the interest rate. The weighted average balance decreased due to repayments on the facility with proceeds from the sale and financing of several properties in 2014 and 2015. These decreases were partially offset by borrowings to acquire several properties in 2014 and 2015. Pursuant to an amendment to our facility dated December 31, 2014, the annual interest rate was reduced from 4.75% to approximately 1.92% for the three months ended March 31, 2015.

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Mortgage interest

The following table reflects the interest rate on our mortgage debt and principal amount of outstanding mortgage debt, in each case on a weighted average basis:

	Three Months Ended March 31,						Increase			%
(Dollars in thousands)	2015			2014			(Decrease)			Change
Interest rate on mortgage debt	4.96		%	5.32		%	(.36		)%	(6.8	)%
Principal amount of mortgage debt	$	293,952		$	278,094		$	15,858		5.7

The decrease in mortgage interest expense is attributable to the decrease in the weighted average interest rate due to the financing (including financings effectuated in connection with acquisitions) and refinancing in 2014 and 2015 of $88.7 million of gross new mortgage debt with a weighted average interest rate of approximately 4.4%.  Offsetting the decrease is the increase in the weighted average amount of mortgage debt outstanding resulting from the incurrence of mortgage debt of $33.8 million in connection with properties acquired in 2014 (primarily in the second half of 2014) and 2015 and the financing of $32.3 million, net of refinanced amounts, in connection with properties acquired in prior years. The increase in the weighted average amount outstanding was partially offset by the payoffs of three mortgages and the foreclosure of one mortgage in the three months ended March 31, 2015 totaling $13.6 million.

We estimate that mortgage interest expense relating to the two properties acquired with mortgage debt in the three months ended March 31, 2015 will be approximately $153,000 per quarter.

Amortization and write-off of deferred financing costs.  The increase is primarily due to the write-off of (i) $249,000 relating to the sale of the Cherry Hill, New Jersey property and (ii) $31,000 related to a mortgage paid in full during the current period. Offsetting the increase is a $54,000 decrease associated with the extension of the credit facility in December 2014.

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 equity securities and property sales.  Our available liquidity at May 4, 2015, was approximately $57.4 million, including approximately $6.7 million of cash and cash equivalents (net of the credit facility’s required $3 million deposit maintenance balance) and $50.7 million available under our revolving credit facility.

Liquidity and Financing

We expect to meet substantially all of our operating cash requirements (including dividend and mortgage amortization payments) from cash flow from operations.  To the extent that cash flow from operations is inadequate to cover all of our operating needs, we will be required to use our available cash and cash equivalents, or draw on our credit line (to the extent permitted) to satisfy operating requirements.

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At March 31, 2015, excluding mortgage indebtedness of our unconsolidated joint ventures, we had 60 outstanding mortgages payable secured by 83 properties, in aggregate principal amount of $304.8 million.  These mortgages represent first liens on individual real estate investments with an aggregate carrying value of $482.8 million, before accumulated depreciation of $61.3 million.  After giving effect to interest rate swap agreements, the mortgage payments bear interest at fixed rates ranging from 2.67% to 7.81% (a 4.89% weighted average interest rate) and mature between 2015 and 2037 (a 9.1 year weighted average remaining term on the mortgages).

The following table sets forth, as of March 31, 2015, information with respect to our mortgage debt (excluding mortgage debt of our unconsolidated joint ventures), that is payable from April 1, 2015 through December 31, 2017:

(Dollars in thousands)	2015		2016		2017		Total
Amortization payments	$	5,314	$	7,285	$	7,909	$	20,508
Principal due at maturity	13,165		25,678		21,921		60,764
Total	$	18,479	$	32,963	$	29,830	$	81,272

At March 31, 2015, the Company’s unconsolidated joint ventures had first mortgages on three properties with outstanding balances aggregating approximately $11.2 million, bearing interest at rates ranging from 3.49% to 5.81% (a 4.01% weighted average interest rate) and maturing between 2018 and 2022.

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 or extend the mortgage loans which mature in 2015 through 2017.  We intend to repay the amounts not refinanced or extended from our existing funds and sources of funds, including our available cash and our credit line (to the extent available).

To generate additional liquidity, we continuously seek to refinance existing mortgage loans on terms we deem acceptable.  Additionally, in the ordinary course of 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 to terminate our mortgage obligations, including payment of interest, principal and real estate taxes, with respect to such property.

Typically, we use 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

We can borrow up to $75 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 million and 15% of the borrowing base and if used for working capital

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purposes, will not exceed $10 million. The facility matures December 31, 2018 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%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and $75 million. The credit facility requires the maintenance of $3.0 million in average deposit balances.

The terms of our revolving credit facility include restrictions and covenants which, among other things, may limit 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. 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 March 31, 2015, we were in compliance in all material respects with the covenants under this facility.

Off-Balance Sheet Arrangements

We are not a party to any material off-balance sheet arrangements.  See Note 6 of the Notes to the Consolidated Financial Statements regarding off-balance sheet arrangements on our properties located in Sandy Springs, Georgia and Lakemoor, Illinois.

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 depreciation and amortization, 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.  Since the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one REIT to another. We compute adjusted funds from operations, or AFFO, by deducting from FFO our straight-line rent accruals, amortization of lease intangibles, and lease termination fee income and adding back the 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.

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 assures 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

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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 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. FFO and AFFO do not represent cash flows from operating, investing or financing activities as defined by GAAP.

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.  Management also prepares and reviews the reconciliation of net income to FFO and AFFO.

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

	Three Months Ended March 31,
	2015			2014
Net income attributable to One Liberty Properties, Inc.	$	7,856		$	3,273
Add: depreciation of properties	3,650			3,541
Add: our share of depreciation of unconsolidated joint ventures	93			93
Add: amortization of deferred leasing costs	84			36
Add: Federal excise tax relating to gain on sales	39			(19		)
Deduct: gain on sale of real estate	(5,392		)	—
Deduct: purchase price fair value adjustment	(960		)	—
Adjustments for non-controlling interests	1,505			(27		)
Funds from operations	6,875			6,897
Deduct: straight-line rent accruals and amortization of lease intangibles	(302		)	(393		)
Deduct: lease termination fee income	(650		)	—
Deduct: our share of straight-line rent reversals and amortization of lease intangibles of unconsolidated joint ventures	(1		)	—
Add: amortization of restricted stock compensation	577			472
Add: prepayment costs on debt	568			—
Add: amortization and write-off of deferred financing costs	455			240
Add: our share of amortization of deferred financing costs of unconsolidated joint ventures	8			4
Adjustments for non-controlling interests	(208		)	4
Adjusted funds from operations	$	7,322		$	7,224

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

	Three Months Ended March 31,
	2015			2014
Net income attributable to One Liberty Properties, Inc.	$	.48		$	.20
Add: depreciation of properties	.22			.22
Add: our share of depreciation of unconsolidated joint ventures	.01			.01
Add: amortization of deferred leasing costs	—			—
Add: Federal excise tax relating to gain on sales	—			—
Deduct: gain on sale of real estate	(.33		)	—
Deduct: purchase price fair value adjustment	(.06		)	—
Adjustments for non-controlling interests	.10			—
Funds from operations	.42			.43
Deduct: straight-line rent accruals and amortization of lease intangibles	(.02		)	(.02		)
Deduct: lease termination fee income	(.04		)	—
Deduct: our share of straight-line rent reversals and amortization of lease intangibles of unconsolidated joint ventures	—			—
Add: amortization of restricted stock compensation	.04			.03
Add: prepayment costs on debt	.03			—
Add: amortization and write-off of deferred financing costs	.03			.01
Add: our share of amortization of deferred financing costs of unconsolidated joint ventures	—			—
Adjustments for non-controlling interests	(.01		)	—
Adjusted funds from operations	$	.45		$	.45

Item 3.  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. These swaps are used for hedging purposes - not for trading purposes.

At March 31, 2015, we had 20 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 March 31, 2015, if there had been a 100 basis point: (i) increase in forward interest rates, the fair market value of the interest rate swaps would have increased by approximately $5.2 million and the net unrealized loss on derivative instruments would have decreased by approximately $5.2 million; and (ii) decrease in forward interest rates, the fair market value of the interest rate swaps would have decreased by approximately $5.4 million and the net unrealized loss on derivative instruments would have increased by approximately $5.4 million. These changes would not have any impact on our net income or cash.

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Our mortgage debt, after giving effect to 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 credit rate facility is sensitive to interest rate changes.  Based on the interest rate in effect and the $28.3 million credit facility balance outstanding as of March 31, 2015, a 100 basis point: (i) increase of the interest rate on this facility would increase our related interest costs by approximately $282,500 per year; and (ii) decrease of the interest rate would decrease our related interest costs by approximately $48,000 per year.

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.

Item 4.  Controls and Procedures

Based on their evaluation as of the end of the period covered by this report, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) are effective.

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) promulgated under the Exchange Act) during the three months ended March 31, 2015 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 6. Exhibits

Exhibit No.	Title of Exhibit
31.1	Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Senior Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of President and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Senior Vice President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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
101.LAB	XBRL Taxonomy Extension Definition Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

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ONE LIBERTY PROPERTIES, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	ONE LIBERTY PROPERTIES, INC.
	(Registrant)
Date: May 11, 2015	/s/ Patrick J. Callan, Jr.
	Patrick J. Callan, Jr.
	President and Chief Executive Officer
	(principal executive officer)
Date: May 11, 2015	/s/ David W. Kalish
	David W. Kalish
	Senior Vice President and
	Chief Financial Officer
	(principal financial officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

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

1.I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015 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 officer 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 Rule 13a-15(f) and 15d— 15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls andprocedures 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 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 fiscal 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 officer and I have disclosed, based on our most recent evaluation of internal control 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 internalcontrol 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: May 11, 2015
	/s/ Patrick J. Callan, Jr.
	Patrick J. Callan, Jr.
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, David W. Kalish, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015 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 officer 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 Rule 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 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 fiscal 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 officer and I have disclosed, based on our most recent evaluation of internal control 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 internalcontrol 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: May 11, 2015
	/s/ David W. Kalish
	David W. Kalish
	Senior Vice President and
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRESIDENT AND CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

I, Patrick J. Callan, Jr., do hereby certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that based upon a review of the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015 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: May 11, 2015	/s/ Patrick J. Callan, Jr.
	Patrick J. Callan, Jr.
	President and
	Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

I, David W. Kalish, do hereby certify, pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that based upon a review of the Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015 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: May 11, 2015	/s/ David W. Kalish
	David W. Kalish
	Senior Vice President and
	Chief Financial Officer

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Investment in Unconsolidated Joint Ventures (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015 item property	Mar. 31, 2014	Dec. 31, 2014 item property
Investment in Unconsolidated Joint Ventures
Number of unconsolidated joint ventures	4		5
Number of properties owned and operated by each unconsolidated joint venture	1		1
Investment in unconsolidated joint ventures	$ 2,486,000		$ 4,907,000
Equity in earnings of unconsolidated joint ventures	147,000	133,000
Shopko retail stores, Lincoln, Nebraska
Variable Interest Entities
Ownership percentage in variable interest entity	50.00%
Purchase of remaining investment in unconsolidated joint venture	$ 6,300,000

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Fair Value Measurements (Details 2) (Interest rate derivatives, Cash flow hedges, USD $)	3 Months Ended
	Mar. 31, 2015 item
Interest rate derivatives | Cash flow hedges
Fair Value Measurements
Number of interest rate derivatives held	18
Number of mortgage loans outstanding	18
Notional Amount	$ 80,704,000
Weighted average maturity	6 years 10 months 24 days
Fixed annual interest rate lower end of range (as a percent)	3.55%
Fixed annual interest rate higher end of range (as a percent)	5.75%
Weighted average annual interest rate (as a percent)	4.67%

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Stock Based Compensation (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Stock Based Compensation
Outstanding options at the end of the period (in shares)	0	0	0
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows:
Share based compensation charged to operations	$ 577,000	$ 472,000
Compensation costs related to non-vested awards that have not yet been recognized	7,476,000
Approximate weighted average vesting period	2 years 9 months 18 days
Restricted stock grants
Summary of the activity of the incentive plans
Restricted share grants	129,975	118,850
Per share grant price (in dollars per share)	$ 24.60	$ 20.54
Deferred compensation to be recognized over vesting period	3,197,000	2,441,000
Number of non-vested shares:
Non-vested beginning of period (in shares)	480,995	470,015
Grants (in shares)	129,975	118,850
Vested during period (in shares)	(70,685)	(101,300)
Forfeitures (in shares)		(6,520)
Non-vested end of period (in shares)	540,285	481,045
Other disclosures
Average per share value of non-vested shares (based on grant price) (in dollars per share)	$ 17.12	$ 14.55
Value of shares vested during the period (based on grant price)	586,000	621,000
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows:
Share based compensation charged to operations	548,000	443,000
Restricted stock units
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows:
Share based compensation charged to operations	29,000	29,000
2012 Incentive Plan
Stock Based Compensation
Number of shares authorized for issuance	600,000
Shares issued pursuant to plan	359,000
2009 Incentive Plan
Summary of the activity of the incentive plans
Restricted share grants	0
Number of non-vested shares:
Grants (in shares)	0
Non-vested end of period (in shares)	381,000
The total charge to operations for all incentive plans, including the 200,000 Units, is as follows:
Compensation costs related to non-vested awards that have not yet been recognized	$ 267,000
2009 Incentive Plan | Restricted stock units
Number of non-vested shares:
Vested during period (in shares)	0
Forfeitures (in shares)	0
Non-vested end of period (in shares)	200,000

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Organization and Background (Details)	Mar. 31, 2015 state
Organization and Background
Number of real estate properties	116
Number of states in which properties are located	30
Properties owned by consolidated joint ventures
Organization and Background
Number of real estate properties	7
Properties owned by unconsolidated joint ventures
Organization and Background
Number of real estate properties	4

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New Accounting Pronouncement

3 Months Ended

Mar. 31, 2015

New Accounting Pronouncement

New Accounting Pronouncements

Note 16 - New Accounting Pronouncements

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which amends the current consolidation guidance, including introducing a separate consolidation analysis specific to limited partnerships and other similar entities. Under this analysis, limited partnerships and other similar entities will be considered a VIE unless the limited partners hold substantive kick-out rights or participating rights. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company has not elected early adoption and is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs, which amends the balance sheet presentation for debt issuance costs. Under the amended guidance, a company will present unamortized debt issuance costs as a direct deduction from the carrying amount of that debt liability. The guidance is to be applied on a retrospective basis, and is effective for annual reporting periods beginning after December 15, 2015, with early adoption being permitted.  The Company is currently in the process of evaluating the impact the adoption of the guidance will have on its consolidated financial statements.

In January 2015, the FASB issued ASU No. 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which simplifies income statement presentation by eliminating extraordinary items from US GAAP. The ASU retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. The ASU is effective in annual periods, and interim periods within those annual periods, beginning after December 15, 2015.  Early adoption is permitted; however, adoption must occur at the beginning of an annual period.  An entity can elect to apply the guidance prospectively or retrospectively.  The Company had elected early adoption for the year ended December 31, 2014, and its adoption did not have any impact on its consolidated financial statements.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40), which provides guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures.  For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued.  The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter.  Early application is permitted.  The Company has elected early adoption for the year ending December 31, 2015, and its adoption is not expected to have any impact on its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. This update is effective for interim and annual reporting periods beginning after December 15, 2017 and early adoption is not permitted. The new guidance can be applied either retrospectively to each prior reporting period presented, or as a cumulative-effect adjustment as of the date of adoption.  The Company is currently in the process of evaluating the impact, if any, the adoption of this ASU will have on its consolidated financial statements.

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Fair Value Measurements (Details 4) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Derivative financial instruments related to unconsolidated joint venture
Number of derivative agreements for which the Parent Company could be liable in event of default by a subsidiary	1
Cash flow hedges
Reclassification of gain (loss)
Gain or loss recognized with respect to cash flow hedges' ineffectiveness	$ 0	$ 0
Interest rate swap | Cash flow hedges
Fair Value Measurements
Amount of loss gain recognized on derivative in Other comprehensive loss	(1,623,000)	(1,106,000)
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense	(889,000)	(388,000)
Reclassification of gain (loss)
Number of interest rate derivative instruments terminated	1
Accelerated amount of loss	472,000
Additional amount to be reclassified to interest expense during the next twelve months	1,526,000
Credit risk related contingent feature
Fair value of derivative in a liability position, including accrued interest and excluding adjustments for nonperformance risk	4,209,000
Termination value of derivative agreement	4,209,000
Adjustments for nonperformance risk	358,000
Interest rate swap | Cash flow hedges | Accrued Expenses And Other Liabilities
Credit risk related contingent feature
Termination value of derivative agreement	3,851,000
Interest rate swap | Cash flow hedges | Unconsolidated JV
Fair Value Measurements
Number of unconsolidated joint ventures of the entity with interest rate derivatives outstanding	3
Percentage of ownership in unconsolidated joint venture	50.00%
Number interest rate derivatives outstanding	2
Notional Amount	11,166,000
Amount of loss gain recognized on derivative in Other comprehensive loss	(71,000)	(7,000)
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense	$ (22,000)	$ (14,000)
Interest rate swap | Cash flow hedges | Unconsolidated JV | Minimum
Fair Value Measurements
Fixed Interest Rate (as a percent)	3.49%
Interest rate swap | Cash flow hedges | Unconsolidated JV | Maximum
Fair Value Measurements
Fixed Interest Rate (as a percent)	5.81%

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Line of Credit (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	May 04, 2015
Line of Credit
Line of credit	$ 28,250,000	$ 13,250,000
Facility
Line of Credit
Minimum effective interest rate (as a percent)		4.75%
Unused facility fee (as a percent)	0.25%
Line of credit	28,250,000	13,250,000	24,250,000
Facility | Amendment To The Credit Facility
Line of Credit
Borrowing capacity		75,000,000
Decreases in minimum required average outstanding deposit balances of credit facility	3,000,000
Interest rate at end of period (as a percent)	1.92%
Commitment and extension fees	$ 562,500
Facility | LIBOR | Amendment To The Credit Facility
Line of Credit
Basis of interest rate	one month LIBOR
Facility | LIBOR | Amendment To The Credit Facility | Maximum
Line of Credit
Spread on variable interest rate (as a percent)	3.00%
Facility | LIBOR | Amendment To The Credit Facility | Minimum
Line of Credit
Spread on variable interest rate (as a percent)	1.75%

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Sale and Disposal of Properties and Discontinued Operations ( Details) (USD $)	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Jan. 13, 2015	Feb. 03, 2014 property	Dec. 31, 2013
Discontinued operations and real estate investments
Total sales price, net of closing costs	$ 16,025,000	$ 5,177,000
Discontinued Operations
Mortgage balance paid off	7,376,000
Swap termination expense	472,000
Write off of deferred financing costs	249,000
Income from discontinued operations		13,000
Rental income		141,000
Real estate expenses		17,000
Mortgage interest		111,000
Non-Controlling Interests in Joint Ventures
Discontinued Operations
Non-controlling interest's share of income from the transaction	1,320,000
Property located in Cherry Hill, NJ | Consolidated JV | Real Estate in Cherry Hill, NJ
Discontinued operations and real estate investments
Total sales price, net of closing costs			16,025,000
Discontinued Operations
Gain on sale of property			5,392,000
Real estate property located in Michigan
Discontinued operations and real estate investments
Number of properties under contract of sale				2
Total sales price, net of closing costs				5,177,000
Discontinued Operations
Impairment charge					$ 61,700

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Fair Value Measurements (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	May 04, 2015
Fair Value of Financial Instruments
Carrying amount	$ 28,250,000	$ 13,250,000
Available-for-sale securities
Aggregate cost of available-for-sale securities	5,300
Unrealized gain on available-for-sale securities	27,100
Facility
Fair Value of Financial Instruments
Carrying amount	28,250,000	13,250,000	24,250,000
Recurring | Carrying and fair Value
Available-for-sale securities:
Available-for-sale Securities, Equity Securities	32,400	29,000
Recurring | Carrying and fair Value | Interest rate swap
Available-for-sale securities:
Derivative financial instruments		27,000
Financial liabilities:
Derivative financial instruments	3,851,000	3,139,000
Recurring | Level 1
Available-for-sale securities:
Available-for-sale Securities, Equity Securities	32,400	29,000
Recurring | Level 2 | Interest rate swap
Available-for-sale securities:
Derivative financial instruments		27,000
Financial liabilities:
Derivative financial instruments	3,851,000	3,139,000
Mortgages payable
Fair Value of Financial Instruments
Estimated fair value of mortgages payable	316,839,000	300,541,000
Excess of fair value over carrying value	$ 12,031,000	$ 8,492,000
Blended or estimated market interest rate (as a percent)	4.16%	4.50%
Weighted average remaining term of the mortgages	9 years 1 month 6 days	9 years 1 month 6 days

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income	$ 9,207,000	$ 3,300,000
Adjustments to reconcile net income to net cash provided by operating activities:
Purchase price fair value adjustment	960,000
Gain on sales of real estate	(5,392,000)
Prepayment costs on debt	568,000
Increase in rental income from straight-lining of rent	(175,000)	(336,000)
Increase in rental income from amortization of intangibles relating to leases	(127,000)	(56,000)
Amortization of restricted stock expense	577,000	472,000
Equity in earnings of unconsolidated joint ventures	(147,000)	(133,000)
Distributions of earnings from unconsolidated joint ventures	212,000	113,000
Depreciation and amortization	3,734,000	3,577,000
Amortization and write-off of financing costs	455,000	240,000
Payment of leasing commissions	(550,000)	(3,000)
Changes in assets and liabilities:
(Increase) decrease in escrow, deposits, other assets and receivables	(84,000)	1,099,000
Decrease in accrued expenses and other liabilities	(983,000)	(1,028,000)
Net cash provided by operating activities	6,335,000	7,245,000
Cash flows from investing activities:
Purchase of real estate	(31,413,000)	(5,109,000)
Improvements to real estate	(355,000)	(38,000)
Net proceeds from sale of real estate	16,025,000	5,177,000
Purchase of partner's interest in unconsolidated joint venture	(6,300,000)
Additional investment in unconsolidated joint venture	(3,664,000)
Distributions of return of capital from unconsolidated joint ventures	575,000	7,000
Net cash (used in) provided by investing activities	(25,132,000)	37,000
Cash flows from financing activities:
Scheduled amortization payments of mortgages payable	(1,875,000)	(1,874,000)
Repayment of mortgages payable	(12,168,000)	(19,003,000)
Prepayment costs on debt	(568,000)
Proceeds from mortgage financings	28,268,000	27,735,000
Proceeds from sale of common stock, net		644,000
Proceeds from bank line of credit	29,900,000	3,500,000
Repayment on bank line of credit	(14,900,000)	(13,900,000)
Issuance of shares through dividend reinvestment plan	585,000	1,294,000
Payment of financing costs	(397,000)	(260,000)
Capital contribution from non-controlling interest	663,000
Distributions to non-controlling interests	(1,582,000)	(75,000)
Cash distributions to common stockholders	(6,320,000)	(5,806,000)
Net cash provided by (used in) financing activities	21,606,000	(7,745,000)
Net increase (decrease) in cash and cash equivalents	2,809,000	(463,000)
Cash and cash equivalents at beginning of year	20,344,000	16,631,000
Cash and cash equivalents at end of year	23,153,000	16,168,000
Supplemental disclosures of cash flow information:
Cash paid during the year for interest expense	3,783,000	4,027,000
Cash paid during the period for Federal excise tax	300,000	64,000
Supplemental schedule of non-cash investing and financing activities:
Mortgage debt extinguished upon conveyance of property to mortgagee by deed -in -lieu of foreclosure	1,466,000
Consolidation of real estate investments	2,633,000
Purchase accounting allocations - intangible lease assets	2,518,000	408,000
Purchase accounting allocations - intangible lease liabilities	4,813,000	371,000
Restricted cash for tenant improvements and other reserve, net	$ (272,000)

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Related Party Transactions (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Majestic
Related Party Transaction
Quarterly fees under compensation and services agreement	$ 633,750	$ 825,000
Overhead expenses under compensation and services agreement	48,900	46,600
Management fees under compensation and services agreement	223,100	212,500
Chairman
Related Party Transaction
Quarterly fees under compensation and services agreement	65,625	62,500
Vice Chairman
Related Party Transaction
Quarterly fees under compensation and services agreement	26,250	25,000
Gould Investors L.P.
Related Party Transaction
Share of property insurance premiums	57,000	50,000
Joint venture partners
Related Party Transaction
Real estate management and acquisition costs	$ 105,000	$ 12,000

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Real Estate Acquisitions and Contingent Liability (Tables)

3 Months Ended

Mar. 31, 2015

Real Estate Acquisitions

Schedule of acquisitions of real estate and interest in joint venture

The following chart details the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs (a)
Marston Park Plaza retail stores, Lakewood, Colorado (b)	February 25, 2015	$	17,485	Cash and $11,853 mortgage (c)	$	184
Interline Brands distribution facility, Louisville, Kentucky	March 18, 2015	4,400		Cash and $2,640 mortgage (d)	44
Land — The Meadows Apartments, Lakemoor, Illinois	March 24, 2015	9,300		All cash	—		(e)
Joint venture interest- Shopko retail store, Lincoln, Nebraska (f)	March 31, 2015	6,300		All cash (f)	—
Other costs (g)		—			20
Totals		$	37,485		$	248

(a) Included as an expense in the accompanying consolidated statements of income.

(b) Owned by a joint venture in which the Company has a 90% interest.  The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase.

(c) The mortgage debt obtained in connection with the purchase bears interest at 4.12% per annum and matures February 2025.

(d) The mortgage debt obtained in connection with the purchase bears interest at 3.88% per annum and matures February 2021.

(e) Transaction costs aggregating $228 incurred with this asset acquisition were capitalized.

(f) The Company purchased its unconsolidated joint venture partner’s 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partner’s 50% share of the underlying joint venture mortgage.

(g) Costs incurred for transactions that were not consummated.

Schedule of allocation of purchase price for the company's acquisitions of real estate and an interest in joint venture

The following chart provides the preliminary allocation of the purchase price for the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands):

					Building		Intangible Lease
Description of Property	Land		Building		Improvements		Asset		Liability			Total
Marston Park Plaza retail stores, Lakewood, Colorado	$	6,005	$	10,109	$	700	$	1,493	$	(822	)	$	17,485
Interline Brands distribution facility, Louisville, Kentucky	578		3,622		105		95		—			4,400
Land — The Meadows Apartments, Lakemoor, Illinois (a)	9,528		—		—		—		—			9,528
Shopko retail store, Lincoln, Nebraska (b)	4,009		11,040		574		930		(3,960		)	12,593
Subtotals	20,120		24,771		1,379		2,518		(4,782		)	44,006
Other (c)	12		19		—		—		(31		)	—
Totals	$	20,132	$	24,790	$	1,379	$	2,518	$	(4,813	)	$	44,006

(a) Includes capitalized transaction costs of $228 incurred with this asset acquisition.

(b) Fair value of the assets previously owned by an unconsolidated joint venture of the Company.  The Company owns 100% of this property as a result of its purchase of its partner’s 50% interest on March 31, 2015.

(c) Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014.

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2015

Earnings Per Common Share

Schedule of reconciliation of 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):

	Three Months Ended March 31,
	2015			2014
Numerator for basic and diluted earnings per share:
Income from continuing operations	$	9,207		$	3,287
Less net income attributable to non-controlling interests	(1,351		)	(27		)
Less earnings allocated to unvested restricted stock (a)	(261		)	(178		)
Income from continuing operations available for common stockholders	7,595			3,082
Discontinued operations	—			13
Net income available for common stockholders, basic and diluted	$	7,595		$	3,095
Denominator for basic earnings per share:
- weighted average common shares	15,776			15,356
Effect of diluted securities:
- restricted stock units awarded under Pay-for-Performance program	100			100
Denominator for diluted earnings per share
- weighted average shares	15,876			15,456
Earnings per common share, basic	$	.48		$	.20
Earnings per common share, diluted	$	.48		$	.20
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests:
Income from continuing operations	$	7,856		$	3,260
Income from discontinued operations	—			13
Net income attributable to One Liberty Properties, Inc.	$	7,856		$	3,273

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

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Common Stock Cash Dividend (Details) (USD $)	0 Months Ended	3 Months Ended	12 Months Ended
	Mar. 10, 2015	Mar. 31, 2015	Dec. 31, 2014
Common Stock Cash Dividend
Quarterly cash distributions declared per share of common stock (in dollars per share)	$ 0.39
Quarterly cash dividend declared	$ 6,381,000	$ 6,380,000	$ 24,117,000

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Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2015

Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures Disclosure

Summary of our variable interests in identified VIEs, which are not primary beneficiary, and the aggregate carrying amount and maximum exposure to loss

The following is a summary of the Company’s variable interests in identified VIEs, in which it is not the primary beneficiary, and the aggregate carrying amount and maximum exposure to loss as of March 31, 2015 (amounts in thousands):

Property	Type of Exposure	Carrying Amount		Maximum Exposure to Loss
River Crossing Apartments, Sandy Springs, Georgia	Land	$	6,528	$	6,528
	Unbilled rent receivable	281		281
The Meadows Apartments, Lakemoor, Illinois	Land	9,528		9,528
Total		$	16,337	$	16,337

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Stock Based Compensation (Tables)

3 Months Ended

Mar. 31, 2015

Stock Based Compensation

Summary of the activity of the equity incentive plans excluding the 200,000 units

The following is a summary of the activity of the equity incentive plans (excluding, except as otherwise noted, the 200,000 Units):

	Three Months Ended March 31,
	2015			2014
Restricted share grants	129,975			118,850
Per share grant price	$	24.60		$	20.54
Deferred compensation to be recognized over vesting period	$	3,197,000		$	2,441,000
Number of non-vested shares:
Non-vested beginning of period	480,995			470,015
Grants	129,975			118,850
Vested during period	(70,685		)	(101,300		)
Forfeitures	—			(6,520		)
Non-vested end of period	540,285			481,045
Average per share value of non-vested shares (based on grant price)	$	17.12		$	14.55
Value of shares vested during the period (based on grant price)	$	586,000		$	621,000
The total charge to operations for all incentive plans, including the 200,000 units, is as follows:
Outstanding restricted stock grants	$	548,000		$	443,000
Outstanding restricted stock units	29,000			29,000
Total charge to operations	$	577,000		$	472,000

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Distributions - common stock, Cash per share (in dollars per share)	$ 0.39	$ 0.37	$ 1.50

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Measurements

Schedule of available-for-sale securities and derivative financial instruments measured at fair value

The fair value of the Company’s available-for-sale securities and derivative financial instruments was determined using the following inputs (amounts in thousands):

		Carrying and		Fair Value Measurements on a Recurring Basis
	As of	Fair Value		Level 1		Level 2
Financial assets:
Available-for-sale securities:
Equity securities	March 31, 2015	$	32	$	32	$	—
	December 31, 2014	29		29		—
Derivative financial instruments:
Interest rate swaps	March 31, 2015	$	—	$	—	$	—
	December 31, 2014	27		—		27
Financial liabilities:
Derivative financial instruments:
Interest rate swaps	March 31, 2015	$	3,851	$	—	$	3,851
	December 31, 2014	3,139		—		3,139

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):

	Three Months Ended March 31,
	2015			2014
One Liberty Properties and Consolidated Subsidiaries
Amount of loss recognized on derivatives in Other comprehensive loss	$	(1,623	)	$	(1,106	)
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense	(889		)	(388		)
Unconsolidated Joint Ventures (Company’s share)
Amount of loss recognized on derivative in Other comprehensive loss	(71		)	(7		)
Amount of loss reclassification from accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures	(22		)	(14		)

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Lease Termination Fee Income (Details) (USD $)	1 Months Ended
	Mar. 31, 2015
Lease Termination Fee Income
Lease termination fee received from a retail tenant in a lease buy-out transaction	$ 650,000
Write-off of entire balance of the unbilled rent receivable	$ 226,000

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CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Real estate investments, at cost
Land	$ 184,846,000	$ 165,153,000
Buildings and improvements	440,443,000	416,272,000
Total real estate investments, at cost	625,289,000	581,425,000
Less accumulated depreciation	78,091,000	76,575,000
Real estate investments, net	547,198,000	504,850,000
Property held-for-sale		10,176,000
Investment in unconsolidated joint ventures	2,486,000	4,907,000
Cash and cash equivalents	23,153,000	20,344,000
Restricted cash	1,335,000	1,607,000
Unbilled rent receivable (including $120 related to property held-for-sale in 2014)	12,870,000	12,815,000
Unamortized intangible lease assets, net	29,104,000	27,387,000
Escrow, deposits and other assets and receivables	4,561,000	4,310,000
Unamortized deferred financing costs, net	3,981,000	4,043,000
Total assets	624,688,000	590,439,000
Liabilities:
Mortgages payable	304,808,000	292,049,000
Line of credit	28,250,000	13,250,000
Dividends payable	6,381,000	6,322,000
Accrued expenses and other liabilities	12,026,000	12,451,000
Unamortized intangible lease liabilities, net	15,028,000	10,463,000
Total liabilities	366,493,000	334,535,000
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; 15,822 and 15,728 shares issued and outstanding	15,822,000	15,728,000
Paid-in capital	220,935,000	219,867,000
Accumulated other comprehensive loss	(3,999,000)	(3,195,000)
Accumulated undistributed net income	23,352,000	21,876,000
Total One Liberty Properties, Inc. stockholders' equity	256,110,000	254,276,000
Non-controlling interests in consolidated joint ventures	2,085,000	1,628,000
Total equity	258,195,000	255,904,000
Total liabilities and equity	$ 624,688,000	$ 590,439,000

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Shares Issued Through Equity Offering Program (Details) (USD $)	0 Months Ended	3 Months Ended
	Mar. 20, 2014	Mar. 31, 2015
Shares Issued Through Equity Offering Program
Maximum aggregate sales price of shares to be sold under an Equity Offering Sales Agreement (in dollars)	$ 38,360,000
Number of shares sold		0

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 9,207	$ 3,300
Other comprehensive loss
Net unrealized gain on available-for-sale securities	3	5
Net unrealized loss on derivative instruments	(734)	(718)
One Liberty Property's share of joint venture net unrealized loss on derivative instruments	(48)	(3)
Other comprehensive loss	(779)	(716)
Comprehensive income	8,428	2,584
Comprehensive income attributable to non-controlling interests	(1,351)	(27)
Unrealized gain (loss) on derivative instruments attributable to non-controlling interests	25	(10)
Comprehensive income attributable to One Liberty Properties, Inc.	$ 7,102	$ 2,547

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Earnings Per Common Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015		Mar. 31, 2014		Dec. 31, 2014
Earnings Per Common Share
Number of shares awarded under Pay-for-Performance program included in diluted weighted average number of shares	100,000		100,000
Underlying number of shares awarded under Pay-for-Performance program included in calculation of diluted weighted average number of shares	200,000		200,000
Number of shares awarded under Pay-for-Performance program not included in diluted weighted average number of shares	100,000		100,000
Outstanding options at the end of the period (in shares)	0		0		0
Numerator for basic and diluted earnings per share:
Income from continuing operations	$ 9,207		$ 3,287
Net income attributable to non-controlling interests	(1,351)		(27)
Less earnings allocated to unvested restricted stock	(261)	[1]	(178)	[1]
Income from continuing operations available for common stockholders	7,595		3,082
Discontinued operations			13
Net income available for common stockholders, basic	7,595		3,095
Net income available for common stockholders, diluted	7,595		3,095
Denominator for basic earnings per share:
Weighted average common shares	15,776,000		15,356,000
Effect of diluted securities:
Restricted stock units awarded under Pay-for-Performance program (in shares)	100,000		100,000
Denominator for diluted earnings per share - weighted average shares	15,876,000		15,456,000
Earnings per common share, basic (in dollars per share)	$ 0.48		$ 0.20
Earnings per common share, diluted (in dollars per share)	$ 0.48		$ 0.20
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests:
Income from continuing operations	7,856		3,260
Income from discontinued operations			13
Net income attributable to One Liberty Properties, Inc.	$ 7,856		$ 3,273

[1] Represents an allocation to unvested restricted stock, which as participating securities are entitled to receive dividends.

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Shares Issued Through Equity Offering Program

3 Months Ended

Mar. 31, 2015

Shares Issued Through Equity Offering Program

Shares Issued Through Equity Offering Program

Note 13 - Shares Issued through Equity Offering Program

On March 20, 2014, the Company entered into an amended and restated equity offering sales agreement to sell shares of the Company’s common stock from time to time with an aggregate sales price of up to approximately $38,360,000, through an “at the market” equity offering program.  The Company has not sold any shares in 2015.

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Real Estate Acquisitions (Details) (USD $)	3 Months Ended			12 Months Ended	1 Months Ended
	Mar. 31, 2015 tenant		Mar. 31, 2014	Dec. 31, 2014	Mar. 31, 2015		Jun. 30, 2014
Real Estate Acquisitions
Contract Purchase Price	$ 3,664,000
Third Party Real Estate Acquisition Costs	248,000		40,000
Contributions from non-controlling interests	663,000			639,000
Payment to purchase of partner's interest	6,300,000
Purchase price fair value adjustment	960,000
Allocation of purchase price for the company's real estate acquisitions
Land	20,132,000				20,132,000
Building	24,790,000				24,790,000
Building Improvements	1,379,000				1,379,000
Intangible Lease Asset	2,518,000				2,518,000
Intangible Lease Liability	(4,813,000)				(4,813,000)
Total	44,006,000				44,006,000
Number of tenants in the property	1
Intangible lease assets	2,518,000
Intangible lease liabilities	4,782,000
Weighted average amortization period for intangible lease assets	7 years
Weighted average amortization period for intangible lease liabilities	6 years 8 months 12 days
Marston Park Plaza retail stores, Lakewood, Colorado
Real Estate Acquisitions
Contract Purchase Price	17,485,000	[1]
Mortgage incurred	11,853,000	[1],[2]
Third Party Real Estate Acquisition Costs	184,000	[1],[3]
Ownership interest in consolidated joint venture of non-controlling interest (as a percent)	10.00%				10.00%
Contributions from non-controlling interests	663,000
Interest rate (as a percent)	4.12%				4.12%
Allocation of purchase price for the company's real estate acquisitions
Land	6,005,000				6,005,000
Building	10,109,000				10,109,000
Building Improvements	700,000				700,000
Intangible Lease Asset	1,493,000				1,493,000
Intangible Lease Liability	(822,000)				(822,000)
Total	17,485,000				17,485,000
Number of tenant spaces at the property	29
Percentage of property leased to tenants	94.50%
Marston Park Plaza retail stores, Lakewood, Colorado | Consolidated JV
Real Estate Acquisitions
Ownership interest in consolidated joint venture of the company (as a percent)	90.00%				90.00%
Interline Brands distribution facility, Louisville, Kentucky
Real Estate Acquisitions
Contract Purchase Price	4,400,000
Mortgage incurred	2,640,000	[4]
Third Party Real Estate Acquisition Costs	44,000	[3]
Interest rate (as a percent)	3.88%				3.88%
Allocation of purchase price for the company's real estate acquisitions
Land	578,000				578,000
Building	3,622,000				3,622,000
Building Improvements	105,000				105,000
Intangible Lease Asset	95,000				95,000
Total	4,400,000				4,400,000
Land - The Meadows Apartments, Lakemoor, Illinois
Real Estate Acquisitions
Contract Purchase Price	9,300,000				9,300,000
Capitalized transaction costs incurred with the asset acquisition	228,000				228,000
Allocation of purchase price for the company's real estate acquisitions
Land	9,528,000	[5]			9,528,000	[5]
Total	9,528,000	[5]			9,528,000	[5]
Shopko retail store, Lincoln, Nebraska
Real Estate Acquisitions
Percentage of ownership in unconsolidated joint venture	100.00%				100.00%
Allocation of purchase price for the company's real estate acquisitions
Land	4,009,000	[6]			4,009,000	[6]
Building	11,040,000	[6]			11,040,000	[6]
Building Improvements	574,000	[6]			574,000	[6]
Intangible Lease Asset	930,000	[6]			930,000	[6]
Intangible Lease Liability	(3,960,000)	[6]			(3,960,000)	[6]
Total	12,593,000	[6]			12,593,000	[6]
Shopko retail store, Lincoln, Nebraska | Consolidated JV
Real Estate Acquisitions
Percentage of equity method investments control obtained	100.00%
Shopko retail store, Lincoln, Nebraska | Unconsolidated JV
Real Estate Acquisitions
Contract Purchase Price	6,300,000	[7]
Percentage of ownership in unconsolidated joint venture	50.00%				50.00%
Payment to purchase of partner's interest	2,636,000
Payment to purchase substantial interest	3,664,000
Percentage of equity method investments acquired	50.00%
Subtotals
Real Estate Acquisitions
Contract Purchase Price	37,485,000
Third Party Real Estate Acquisition Costs	248,000	[3]
Allocation of purchase price for the company's real estate acquisitions
Land	20,120,000				20,120,000
Building	24,771,000				24,771,000
Building Improvements	1,379,000				1,379,000
Intangible Lease Asset	2,518,000				2,518,000
Intangible Lease Liability	(4,782,000)				(4,782,000)
Total	44,006,000				44,006,000
Other
Real Estate Acquisitions
Third Party Real Estate Acquisition Costs	20,000	[3],[8]
Allocation of purchase price for the company's real estate acquisitions
Land	12,000	[9]			12,000	[9]
Building	19,000	[9]			19,000	[9]
Intangible Lease Liability	(31,000)	[9]			(31,000)	[9]
Land - River Crossing Apartments, Sandy Springs, Georgia
Real Estate Acquisitions
Contract Purchase Price							$ 6,510,000

[1] Owned by a joint venture in which the Company has a 90% interest. The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase.

[2] The mortgage debt obtained in connection with the purchase bears interest at 4.12% per annum and matures February 2025.

[3] Included as an expense in the accompanying consolidated statements of income.

[4] The mortgage debt obtained in connection with the purchase bears interest at 3.88% per annum and matures February 2021.

[5] Includes capitalized transaction costs of $228 incurred with this asset acquisition.

[6] Fair value of the assets previously owned by an unconsolidated joint venture of the Company. The Company owns 100% of this property as a result of its purchase of its partner’s 50% interest on March 31, 2015.

[7] The Company purchased its unconsolidated joint venture partner's 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partner’s 50% share of the underlying joint venture mortgage.

[8] Costs incurred for transactions that were not consummated.

[9] Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2015

Fair Value Measurements

Fair Value Measurements

Note 15 - 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.  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 significantly on “unobservable” market inputs.

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

At March 31, 2015, the $316,839,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $12,031,000 assuming a blended market interest rate of 4.16% based on the 9.1 year weighted average remaining term of the mortgages.  At December 31, 2014, the $300,541,000 estimated fair value of the Company’s mortgages payable is more than their carrying value by approximately $8,492,000 assuming a blended market interest rate of 4.5% based on the 9.1 year weighted average remaining term of the mortgages.

At March 31, 2015 and December 31, 2014, the $28,250,000 and $13,250,000, respectively, carrying amount of the Company’s line of credit 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 available-for-sale securities and derivative financial instruments was determined using the following inputs (amounts in thousands):

		Carrying and		Fair Value Measurements on a Recurring Basis
	As of	Fair Value		Level 1		Level 2
Financial assets:
Available-for-sale securities:
Equity securities	March 31, 2015	$	32	$	32	$	—
	December 31, 2014	29		29		—
Derivative financial instruments:
Interest rate swaps	March 31, 2015	$	—	$	—	$	—
	December 31, 2014	27		—		27
Financial liabilities:
Derivative financial instruments:
Interest rate swaps	March 31, 2015	$	3,851	$	—	$	3,851
	December 31, 2014	3,139		—		3,139

The Company does not own any financial instruments that are classified as Level 3.

Available-for-sale securities

At March 31, 2015, the Company’s available-for-sale securities included a $32,400 investment in equity securities (included in other assets on the consolidated balance sheet). The aggregate cost of these securities was $5,300 and at March 31, 2015, the unrealized gain was $27,100.  Such unrealized gains are included in accumulated other comprehensive loss on the consolidated balance sheet.  Fair values are approximated based on current market quotes from financial sources that track such securities.

Derivative financial instruments

The Company’s objective in using interest rate swaps is to add stability to interest expense and to manage its exposure to interest rate movements. 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 that 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 March 31, 2015, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives.  As a result, the Company determined that its derivative valuation is classified in Level 2 of the fair value hierarchy.

As of March 31, 2015, the Company had entered into 18 interest rate derivatives, all of which were interest rate swaps, related to 18 outstanding mortgage loans with an aggregate $80,704,000 notional amount and mature between 2016 and 2024 (weighted average maturity of 6.9 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 3.55% to 5.75% and a weighted average interest rate of 4.67% at March 31, 2015).  The fair value of the Company’s derivatives designated as hedging instruments in asset and liability positions reflected as other assets or other liabilities on the consolidated balance sheets were $0 and $3,851,000, respectively, at March 31, 2015, and $27,000 and $3,139,000, respectively, at December 31, 2014.

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 March 31, 2015 with an aggregate $11,166,000 notional amount.  These interest rate swaps, which were designated as cash flow hedges, have interest rates of 3.49% and 5.81% and mature between April 2018 and March 2022.

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):

	Three Months Ended March 31,
	2015			2014
One Liberty Properties and Consolidated Subsidiaries
Amount of loss recognized on derivatives in Other comprehensive loss	$	(1,623	)	$	(1,106	)
Amount of loss reclassification from Accumulated other comprehensive loss into Interest expense	(889		)	(388		)
Unconsolidated Joint Ventures (Company’s share)
Amount of loss recognized on derivative in Other comprehensive loss	(71		)	(7		)
Amount of loss reclassification from accumulated other comprehensive loss into Equity in earnings of unconsolidated joint ventures	(22		)	(14		)

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 months ended March 31, 2015 and 2014.  During the three months ended March 31, 2015, the Company terminated one of its interest rate swaps, in connection with the sale of its Cherry Hill, New Jersey property, and accelerated the reclassification of amounts in other comprehensive loss to earnings as a result of the hedged forecasted transactions being terminated. The accelerated amount was a loss of $472,000 and is included in Prepayment costs on debt on the Company’s consolidated statements of income.  During the twelve months ending March 31, 2016, the Company estimates an additional $1,526,000 will be reclassified from other comprehensive income (loss) as an increase to interest expense.

The derivative agreements in effect at March 31, 2015 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 one of 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.

As of March 31, 2015, the fair value of the derivatives in a liability position, including accrued interest, and excluding any adjustments for nonperformance risk, was approximately $4,209,000.  In the unlikely event that 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 $4,209,000.  This termination liability value, net of $358,000 adjustments for nonperformance risk, or $3,851,000, is included in accrued expenses and other liabilities on the consolidated balance sheets at March 31, 2015.

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $)	Common Stock	Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Undistributed Net Income	Non-Controlling Interests in Joint Ventures	Total
Balances at Dec. 31, 2013	$ 15,221,000	$ 210,324,000	$ (490,000)	$ 23,877,000	$ 1,158,000	$ 250,090,000
Distributions - common stock
Cash - $0.39 and $1.50 per share for the three months ended March 31, 2015 and for the year ended December 31, 2014, respectively				(24,117,000)		(24,117,000)
Shares issued through equity offering - net	179,000	3,589,000				3,768,000
Restricted stock vesting	101,000	(101,000)
Shares issued through dividend reinvestment plan	227,000	4,222,000				4,449,000
Contributions from non-controlling interests					639,000	639,000
Distributions to non-controlling interests					(228,000)	(228,000)
Compensation expense - restricted stock		1,833,000				1,833,000
Net income				22,116,000	94,000	22,210,000
Other comprehensive loss (gain)			(2,705,000)		(35,000)	(2,740,000)
Balances at Dec. 31, 2014	15,728,000	219,867,000	(3,195,000)	21,876,000	1,628,000	255,904,000
Distributions - common stock
Cash - $0.39 and $1.50 per share for the three months ended March 31, 2015 and for the year ended December 31, 2014, respectively				(6,380,000)		(6,380,000)
Restricted stock vesting	71,000	(71,000)
Shares issued through dividend reinvestment plan	23,000	562,000				585,000
Contributions from non-controlling interests					663,000	663,000
Distributions to non-controlling interests					(1,582,000)	(1,582,000)
Compensation expense - restricted stock		577,000				577,000
Net income				7,856,000	1,351,000	9,207,000
Other comprehensive loss (gain)			(804,000)		25,000	(779,000)
Balances at Mar. 31, 2015	$ 15,822,000	$ 220,935,000	$ (3,999,000)	$ 23,352,000	$ 2,085,000	$ 258,195,000

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
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	15,822	15,728
Common stock, shares outstanding	15,822	15,728

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Lease Termination Fee Income

3 Months Ended

Mar. 31, 2015

Lease Termination Fee Income

Lease Termination Fee Income

Note 8 — Lease Termination Fee Income

In March 2015, the Company received a $650,000 lease termination fee from an industrial tenant in a lease buy-out transaction.  In connection with the receipt of this fee, the Company wrote-off $226,000 as an offset to rental income, representing the entire balance of the unbilled rent receivable related to the sole tenant at this property.  The Company re-leased this property simultaneously with the termination of the lease.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2015	May 04, 2015
Document and Entity Information
Entity Registrant Name	ONE LIBERTY PROPERTIES INC
Entity Central Index Key	0000712770
Document Type	10-Q
Document Period End Date	Mar. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		16,412,382
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

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Allowance for Doubtful Accounts

3 Months Ended

Mar. 31, 2015

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

Note 9 - Allowance for Doubtful Accounts

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its tenants to make required rent payments.  If the financial condition of a specific tenant were to deteriorate resulting in an impairment of its ability to make payments, additional allowances may be required.  At March 31, 2015 and December 31, 2014, there was no balance in allowance for doubtful accounts.

The Company records bad debt expense as a reduction of rental income. For the three months ended March 31, 2015 and 2014, the Company did not incur any bad debt expense.

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CONSOLIDATED STATEMENTS OF INCOME (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues:
Rental income, net	$ 13,894,000	$ 13,813,000
Tenant reimbursements	782,000	589,000
Lease termination fee	650,000
Total revenues	15,326,000	14,402,000
Operating expenses:
Depreciation and amortization	3,734,000	3,577,000
General and administrative (including $507 and $708, respectively, to related parties)	2,392,000	2,211,000
Federal excise and state taxes	74,000	62,000
Real estate expenses (including $223 and $213,respectively, to related parties)	1,334,000	1,098,000
Leasehold rent	77,000	77,000
Real estate acquisition costs	248,000	40,000
Total operating expenses	7,859,000	7,065,000
Operating income	7,467,000	7,337,000
Other income and expenses:
Equity in earnings of unconsolidated joint ventures	147,000	133,000
Other income	3,000	8,000
Purchase price fair value adjustment	(960,000)
Gain on sale of real estate, net	5,392,000
Prepayment costs on debt	(568,000)
Interest:
Expense	(3,739,000)	(3,953,000)
Amortization and write-off of deferred financing costs	(455,000)	(238,000)
Income from continuing operations	9,207,000	3,287,000
Income from discontinued operations		13,000
Net income	9,207,000	3,300,000
Net income attributable to non-controlling interests	(1,351,000)	(27,000)
Net income attributable to One Liberty Properties, Inc.	$ 7,856,000	$ 3,273,000
Weighted average number of common shares outstanding:
Basic (in shares)	15,776	15,356
Diluted (in shares)	15,876	15,456
Per common share attributable to common stockholders - basic:	$ 0.48	$ 0.20
Per common share attributable to common stockholders - diluted:	$ 0.48	$ 0.20
Cash distributions declared per share of common stock	$ 0.39	$ 0.37

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2015

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 each 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 and/or any excess of dividends declared over net income; such amounts are allocated entirely to the common stockholders, other than the holders of unvested restricted stock.  The restricted stock units awarded under the Pay-for-Performance program are excluded from the basic earnings per share calculation, as these units are not participating securities (see Note 14).

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.  For the three months ended March 31, 2015 and 2014, the diluted weighted average number of shares of common stock includes 100,000 shares (of an aggregate of 200,000 shares) of common stock underlying the restricted stock units awarded pursuant to the Pay-For-Performance program.  These 100,000 shares may vest upon satisfaction of the total stockholder return metric. The number of shares that would be issued pursuant to this metric is based on the market price and dividends paid as of the end of each quarterly period assuming the end of that quarterly period was the end of the vesting period.  The remaining 100,000 shares of common stock underlying the restricted stock units awarded under the Pay-For-Performance program are not included during the three months ended March 31, 2015 and 2014, as they did not meet the return on capital performance metric during such periods.

There were no options outstanding to purchase shares of common stock or other rights exercisable for, or convertible into, common stock during the three months ended March 31, 2015 and 2014.

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

	Three Months Ended March 31,
	2015			2014
Numerator for basic and diluted earnings per share:
Income from continuing operations	$	9,207		$	3,287
Less net income attributable to non-controlling interests	(1,351		)	(27		)
Less earnings allocated to unvested restricted stock (a)	(261		)	(178		)
Income from continuing operations available for common stockholders	7,595			3,082
Discontinued operations	—			13
Net income available for common stockholders, basic and diluted	$	7,595		$	3,095
Denominator for basic earnings per share:
- weighted average common shares	15,776			15,356
Effect of diluted securities:
- restricted stock units awarded under Pay-for-Performance program	100			100
Denominator for diluted earnings per share
- weighted average shares	15,876			15,456
Earnings per common share, basic	$	.48		$	.20
Earnings per common share, diluted	$	.48		$	.20
Net income attributable to One Liberty Properties, Inc. common stockholders, net of non-controlling interests:
Income from continuing operations	$	7,856		$	3,260
Income from discontinued operations	—			13
Net income attributable to One Liberty Properties, Inc.	$	7,856		$	3,273

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

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Summary Accounting Policies

3 Months Ended

Mar. 31, 2015

Summary Accounting Policies

Summary Accounting Policies

Note 2 — Summary Accounting Policies

Principles of Consolidation/Basis of Preparation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in OLP’s Annual Report on Form 10-K for the year ended December 31, 2014.

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

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

The Company assesses the accounting treatment for each joint venture investment. This assessment includes a review of each joint venture or limited liability company 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 the Company and its partner, among other things, (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 the joint venture as the Company considers these to be substantive participation rights that result in shared power over the activities that most significantly impact the performance of the joint venture.

The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting.  All investments in these 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 VIE’s.  In addition, although the Company is the managing member, it does not exercise substantial operating control 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.

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 from other parties. 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 of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

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.  In situations where the Company does not have the power over tenant activities that most significantly impact the performance of the property, the Company would not consolidate tenant operations.

Properties Held for Sale

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held-for-sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Additionally, the guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation.  The Company early adopted the guidance effective January 1, 2014 for disposals (or classifications as held-for-sale) that have not been reported in financial statements previously issued.  It did not apply to the two properties sold in February 2014 because these properties were previously classified as properties held-for-sale as of December 31, 2013 and will continue to be accounted for as discontinued operations for the periods presented. It is expected that most of the Company’s future dispositions will not meet the criteria for being treated as a discontinued operation.

Real estate investments are classified as held-for-sale when management has determined that it has met the applicable criteria.  Real estate investments which are held-for-sale are not depreciated.

Tenant Reimbursements

Tenant reimbursements represent contractually obligated reimbursements from tenants for recoverable real estate taxes and operating expenses and are recognized when earned.

Reclassifications

Certain amounts previously reported in the consolidated financial statements have been reclassified in the accompanying consolidated financial statements to conform to the current period’s presentation; primarily to break out tenant reimbursements of $589,000 that had been included in rental income, net, on the consolidated statements of income for the three months ended March 31, 2014.

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Stock Based Compensation

3 Months Ended

Mar. 31, 2015

Stock Based Compensation

Stock Based Compensation

Note 14 - Stock Based Compensation

A maximum of 600,000 shares of the Company’s common stock is authorized for issuance pursuant to the Company’s 2012 Incentive Plan, of which 359,000 shares of restricted stock are outstanding as of March 31, 2015.  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.  An aggregate of 381,000 shares of restricted stock and restricted stock units outstanding under the Company’s 2009 equity incentive plan have not yet vested and no additional awards may be granted under this plan.

Pursuant to the Pay-for-Performance Program, there are 200,000 performance share awards in the form of restricted stock units (the “Units”) outstanding under the Company’s 2009 Incentive Plan. The holders of Units are not entitled to dividends or to vote the underlying shares until the Units vest and shares are issued. Accordingly, for accounting purposes, the shares underlying the Units are not included in the shares shown as outstanding on the balance sheet.  No Units were forfeited or vested in the three months ended March 31, 2015.

As of March 31, 2015 and December 31, 2014, there were no options outstanding under the Company’s equity incentive plans.

The following is a summary of the activity of the equity incentive plans (excluding, except as otherwise noted, the 200,000 Units):

	Three Months Ended March 31,
	2015			2014
Restricted share grants	129,975			118,850
Per share grant price	$	24.60		$	20.54
Deferred compensation to be recognized over vesting period	$	3,197,000		$	2,441,000
Number of non-vested shares:
Non-vested beginning of period	480,995			470,015
Grants	129,975			118,850
Vested during period	(70,685		)	(101,300		)
Forfeitures	—			(6,520		)
Non-vested end of period	540,285			481,045
Average per share value of non-vested shares (based on grant price)	$	17.12		$	14.55
Value of shares vested during the period (based on grant price)	$	586,000		$	621,000
The total charge to operations for all incentive plans, including the 200,000 units, is as follows:
Outstanding restricted stock grants	$	548,000		$	443,000
Outstanding restricted stock units	29,000			29,000
Total charge to operations	$	577,000		$	472,000

As of March 31, 2015, there were approximately $7,476,000 of total compensation costs related to non-vested awards that have not yet been recognized, including $267,000 related to the Units (net of forfeiture and performance assumptions which are re-evaluated quarterly). These compensation costs will be charged to general and administrative expense over the remaining respective vesting periods. The weighted average vesting period is approximately 2.8 years.

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Line of Credit

3 Months Ended

Mar. 31, 2015

Line of Credit

Line of Credit

Note 10 - Line of Credit

On December 31, 2014, the Company entered into an amendment to its $75,000,000 credit facility with Manufacturers & Traders Trust Company, VNB New York, LLC, Bank Leumi USA and Israel Discount Bank of New York, which, among other things, extended the facility’s maturity to December 31, 2018 from March 31, 2015, decreased the minimum required average bank deposit balances to $3 million and eliminated the 4.75% interest rate floor. Under the amendment, the interest rate equals the one month LIBOR rate plus an applicable margin which ranges 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.  An unused facility fee of .25% per annum applies to the facility.  The interest rate on the facility in the first quarter of 2015 was approximately 1.92%.  Prior to the amendment, the interest rate was 4.75% per annum.  In connection with the amendment, the Company incurred a $562,500 commitment fee which will be amortized over the remaining term of the facility.  At March 31, 2015 and May 4, 2015, there were outstanding balances of $28,250,000 and $24,250,000, respectively, under the facility. The Company was in compliance with all covenants at March 31, 2015.

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Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures

3 Months Ended

Mar. 31, 2015

Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures Disclosure

Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures

Note 6 — Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures

Unconsolidated Variable Interest Entities

In June 2014, the Company purchased land for $6,510,000 in Sandy Springs, Georgia improved with a 196 unit apartment complex and in March 2015, the Company purchased land for $9,300,000 in Lakemoor, Illinois improved with a 496 unit apartment complex.  With each purchase, the Company simultaneously entered into a long-term triple net ground lease with the owner/operator of each complex.

The Company determined that it has a variable interest through its ground leases and the owner/operators are VIEs because their equity investment at risk is not sufficient to finance its activities without additional subordinated financial support.  Simultaneously with the closing of each acquisition, the owner/operator obtained a mortgage from a third party ($16,230,000 for Sandy Springs and $43,824,000 for Lakemoor) which, together with the Company’s purchase of the land, provided substantially all of the aggregate 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.

The Company further determined that for each acquisition it is not the primary beneficiary because the Company does not have the power to direct the activities that most significantly impact the owner/operator’s economic performance such as management, operational budgets and other rights, including leasing of the units and therefore, does not consolidate the VIEs for financial statement purposes.  Accordingly, the Company accounts for its investments as land and the revenues from the ground leases as Rental income, net.

The following is a summary of the Company’s variable interests in identified VIEs, in which it is not the primary beneficiary, and the aggregate carrying amount and maximum exposure to loss as of March 31, 2015 (amounts in thousands):

Property	Type of Exposure	Carrying Amount		Maximum Exposure to Loss
River Crossing Apartments, Sandy Springs, Georgia	Land	$	6,528	$	6,528
	Unbilled rent receivable	281		281
The Meadows Apartments, Lakemoor, Illinois	Land	9,528		9,528
Total		$	16,337	$	16,337

The Company accounts for its investments as land and the revenues from the ground leases as Rental income, net, which amounted to $252,000 for the three months ended March 31, 2015. There was no such revenue in the three months ended March 31, 2014.

Pursuant to the terms of the ground lease for the property in Sandy Springs, Georgia, the owner/operator is obligated to make certain unit renovations as and when units become vacant.  A cash reserve with a balance of $1,335,000 at March 31, 2015 is held on behalf of the owner/operator to cover renovation work and other reserve requirements and is classified as Restricted cash on the consolidated balance sheet.

Consolidated Variable Interest Entity

In June 2014, the Company entered into a joint venture, in which the Company has a 95% equity interest, and acquired a property located in Joppa, Maryland.  The Company also made a senior preferred equity investment in the joint venture.  The Company determined that this joint venture is a VIE as the Company’s voting rights are not proportional to its economic interests and substantially all of the joint venture’s activities are conducted by the Company.  The Company further determined that it is the primary beneficiary of the VIE as it has the power to direct the activities that most significantly impact the joint venture’s performance including management, approval of expenditures, and the obligation to absorb the losses or rights to receive benefits from the VIE.  Accordingly, the Company consolidates the operations of this joint venture for financial statement purposes.  At March 31, 2015, the carrying amounts and classification in the Company’s consolidated balance sheets were assets (none of which are restricted) consisting of land of $3,815,000, building and improvements (net of depreciation) of $8,016,000, cash of $451,000, prepaid expenses and receivables of $43,000, accrued expenses and other liabilities of $181,000 and non-controlling interest in joint venture of $323,000.  The joint venture’s creditors do not have recourse to the assets of the Company other than those held by the joint venture.

Non-VIE Consolidated Joint Ventures

With respect to six consolidated joint ventures in which the Company has between an 85% to 95% interest, the Company has determined that (i) such ventures are not VIE’s and (ii) the Company exercises substantial operating control and accordingly, such ventures are consolidated for financial statement purposes.

MCB Real Estate, LLC and its affiliates are the Company’s joint venture partner in five consolidated joint ventures (including the Joppa, Maryland joint venture described above).  At March 31, 2015, the Company has aggregate equity investments of approximately $19,000,000 in such ventures.

Distributions by Consolidated Joint Ventures

The 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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Real Estate Acquisitions

3 Months Ended

Mar. 31, 2015

Real Estate Acquisitions

Real Estate Acquisitions

Note 4 - Real Estate Acquisitions

The following chart details the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands):

Description of Property	Date Acquired	Contract Purchase Price		Terms of Payment	Third Party Real Estate Acquisition Costs (a)
Marston Park Plaza retail stores, Lakewood, Colorado (b)	February 25, 2015	$	17,485	Cash and $11,853 mortgage (c)	$	184
Interline Brands distribution facility, Louisville, Kentucky	March 18, 2015	4,400		Cash and $2,640 mortgage (d)	44
Land — The Meadows Apartments, Lakemoor, Illinois	March 24, 2015	9,300		All cash	—		(e)
Joint venture interest- Shopko retail store, Lincoln, Nebraska (f)	March 31, 2015	6,300		All cash (f)	—
Other costs (g)		—			20
Totals		$	37,485		$	248

(a) Included as an expense in the accompanying consolidated statements of income.

(b) Owned by a joint venture in which the Company has a 90% interest.  The non-controlling interest contributed $663 for its 10% interest, which was equal to the fair value of such interest at the date of purchase.

(c) The mortgage debt obtained in connection with the purchase bears interest at 4.12% per annum and matures February 2025.

(d) The mortgage debt obtained in connection with the purchase bears interest at 3.88% per annum and matures February 2021.

(e) Transaction costs aggregating $228 incurred with this asset acquisition were capitalized.

(f) The Company purchased its unconsolidated joint venture partner’s 50% interest for $6,300. The payment was comprised of (i) $2,636 paid directly to the partner and (ii) $3,664, substantially all of which was used to pay off the partner’s 50% share of the underlying joint venture mortgage.

(g) Costs incurred for transactions that were not consummated.

The following chart provides the preliminary allocation of the purchase price for the Company’s acquisitions of real estate and an interest in a joint venture during the three months ended March 31, 2015 (amounts in thousands):

					Building		Intangible Lease
Description of Property	Land		Building		Improvements		Asset		Liability			Total
Marston Park Plaza retail stores, Lakewood, Colorado	$	6,005	$	10,109	$	700	$	1,493	$	(822	)	$	17,485
Interline Brands distribution facility, Louisville, Kentucky	578		3,622		105		95		—			4,400
Land — The Meadows Apartments, Lakemoor, Illinois (a)	9,528		—		—		—		—			9,528
Shopko retail store, Lincoln, Nebraska (b)	4,009		11,040		574		930		(3,960		)	12,593
Subtotals	20,120		24,771		1,379		2,518		(4,782		)	44,006
Other (c)	12		19		—		—		(31		)	—
Totals	$	20,132	$	24,790	$	1,379	$	2,518	$	(4,813	)	$	44,006

(a) Includes capitalized transaction costs of $228 incurred with this asset acquisition.

(b) Fair value of the assets previously owned by an unconsolidated joint venture of the Company.  The Company owns 100% of this property as a result of its purchase of its partner’s 50% interest on March 31, 2015.

(c) Adjustments to finalize the purchase price allocation relating to a property purchased in October 2014.

With the exception of the Lakewood, Colorado property, the properties purchased by the Company in 2015 are each net leased and occupied by a single tenant pursuant to leases that expire between 2021 through 2045.  The Lakewood, Colorado property has 29 tenant spaces and is 94.5% occupied with leases expiring between 2015 and 2032.

As a result of the Company’s purchase on March 31, 2015 of its partner’s 50% interest in an unconsolidated joint venture that owns a property in Lincoln, Nebraska, it obtained a controlling financial interest. In accordance with GAAP, the Company had presented the investee in accordance with the equity method for the periods prior to gaining control and ceased equity method of accounting and consolidated the investment at March 31, 2015; the date which 100% control was obtained.  In consolidating the investment, the Company recorded a purchase price fair value adjustment of $960,000 on the consolidated statements 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 investment.

As a result of the 2015 acquisitions, the Company recorded intangible lease assets of $2,518,000 and intangible lease liabilities of $4,782,000, representing the value of the origination costs and acquired leases.  As of March 31, 2015, the weighted average amortization period for these acquisitions is 7.0 years for the intangible lease assets and 6.7 years for the intangible lease liabilities. 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 15) in the fair value hierarchy. The Company is currently in the process of finalizing the purchase price allocations for the properties acquired during the three months ended March 31, 2015; therefore the allocations are preliminary and subject to change.

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Sale and Disposal of Properties and Discontinued Operations

3 Months Ended

Mar. 31, 2015

Sale and Disposal of Properties and Discontinued Operations

Sale and Disposal of Properties and Discontinued Operations

Note 5 — Sale and Disposal of Properties and Discontinued Operations

On January 13, 2015, a consolidated joint venture of the Company sold a property located in Cherry Hill, New Jersey for approximately $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 three months ended March 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) and a $249,000 write-off of deferred financing costs (included in Amortization and write-off of deferred financing costs). The non-controlling interest’s share of income from the transaction is $1,320,000.

On January 6, 2015, the Company’s property located in Morrow, Georgia was acquired by the mortgagee through a foreclosure proceeding.

On February 3, 2014, the Company sold two properties located in Michigan for a total sales price of $5,177,000, net of closing costs.  At December 31, 2013, the Company recorded a $61,700 impairment charge representing the loss on the sale of these properties. Income from discontinued operations applicable to these properties for the three months ended March 31, 2014 totaled $13,000 which was comprised of rental income of $141,000 less real estate expenses of $17,000 and mortgage interest of $111,000.

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Investment in Unconsolidated Joint Ventures

3 Months Ended

Mar. 31, 2015

Investment in Unconsolidated Joint Ventures

Investment in Unconsolidated Joint Ventures

Note 7 - Investment in Unconsolidated Joint Ventures

The Company has investments in four and five unconsolidated joint ventures at March 31, 2015 and December 31, 2014, respectively, each of which owned and operated one property. The Company’s equity investment in such unconsolidated joint ventures at such dates totaled $2,486,000 and $4,907,000, respectively.  The Company recorded equity in earnings of $147,000 and $133,000 for the three months ended March 30, 2015 and 2014, respectively.

On March 31, 2015, the Company purchased its partner’s 50% interest in one of these unconsolidated joint ventures for $6,300,000 (see note 4).

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Summary Accounting Policies (Details) (USD $)	1 Months Ended	3 Months Ended
	Feb. 28, 2014 property	Mar. 31, 2015	Mar. 31, 2014
Properties Held for Sale
Number of properties sold, considered for reclassification	2
Reclassification
Tenant reimbursements		$ 782,000	$ 589,000

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Common Stock Cash Dividend

3 Months Ended

Mar. 31, 2015

Common Stock Cash Dividend

Common Stock Cash Dividend

Note 12 - Common Stock Cash Dividend

On March 10, 2015, the Board of Directors declared a quarterly cash dividend of $.39 per share on the Company’s common stock, totaling $6,381,000. The quarterly dividend was paid on April 7, 2015 to stockholders of record on March 27, 2015.

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Subsequent Events

3 Months Ended

Mar. 31, 2015

Subsequent Events

Subsequent Events

Note 17 - Subsequent Events

Subsequent events have been evaluated and there are no events relative to the Company’s consolidated financial statements that require additional disclosure.

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Fair Value Measurements (Details 3) (Derivatives designated as hedging instruments, Interest rate swap, USD $)	Mar. 31, 2015	Dec. 31, 2014
Derivatives designated as hedging instruments | Interest rate swap
Fair Value Measurements
Fair value of derivatives assets	$ 0	$ 27,000
Fair value of derivatives liabilities	$ 3,851,000	$ 3,139,000

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Allowance for Doubtful Accounts (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts
Balance in allowance for doubtful accounts	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CONSOLIDATED STATEMENTS OF INCOME
General and administrative, related parties	$ 507	$ 708
Real estate expenses, related party	$ 223	$ 213

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Organization and Background

3 Months Ended

Mar. 31, 2015

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 retail, industrial, flex, health and fitness and other properties, a substantial portion of which are subject to long-term net leases.  As of
March 31, 2015, OLP owns 116 properties, including seven properties owned by consolidated joint ventures and four properties owned by unconsolidated joint ventures. The 116 properties are located in 30 states.

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Summary Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2015

Summary Accounting Policies

Principles of Consolidation/Basis of Preparation

Principles of Consolidation/Basis of Preparation

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and include all of the information and disclosures required by U.S. Generally Accepted Accounting Principles (“GAAP”) for interim reporting. Accordingly, they do not include all of the disclosures required by GAAP for complete financial statement disclosures. In the opinion of management, all adjustments necessary for fair presentation (including normal recurring accruals) have been included. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the results for the full year. These statements should be read in conjunction with the consolidated financial statements and related notes included in OLP’s Annual Report on Form 10-K for the year ended December 31, 2014.

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

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

Investment in Joint Ventures

The Company assesses the accounting treatment for each joint venture investment. This assessment includes a review of each joint venture or limited liability company 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 the Company and its partner, among other things, (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 the joint venture as the Company considers these to be substantive participation rights that result in shared power over the activities that most significantly impact the performance of the joint venture.

The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting.  All investments in these 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 VIE’s.  In addition, although the Company is the managing member, it does not exercise substantial operating control 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.

Variable Interest Entities

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 from other parties. 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 of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

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.  In situations where the Company does not have the power over tenant activities that most significantly impact the performance of the property, the Company would not consolidate tenant operations.

Properties Held for Sale

Properties Held for Sale

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements.  Under the guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held-for-sale and represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Additionally, the guidance requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation.  The Company early adopted the guidance effective January 1, 2014 for disposals (or classifications as held-for-sale) that have not been reported in financial statements previously issued.  It did not apply to the two properties sold in February 2014 because these properties were previously classified as properties held-for-sale as of December 31, 2013 and will continue to be accounted for as discontinued operations for the periods presented. It is expected that most of the Company’s future dispositions will not meet the criteria for being treated as a discontinued operation.

Real estate investments are classified as held-for-sale when management has determined that it has met the applicable criteria.  Real estate investments which are held-for-sale are not depreciated.

Tenant Reimbursements

Tenant Reimbursements

Tenant reimbursements represent contractually obligated reimbursements from tenants for recoverable real estate taxes and operating expenses and are recognized when earned.

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 period’s presentation; primarily to break out tenant reimbursements of $589,000 that had been included in rental income, net, on the consolidated statements of income for the three months ended March 31, 2014.

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Variable Interest Entities, Contingent Liabilities and Consolidated Joint Ventures (USD $)	3 Months Ended		1 Months Ended
	Mar. 31, 2015		Mar. 31, 2015 item		Jun. 30, 2014 item	Dec. 31, 2014
Variable Interest Entities
Mortgage debt	$ 304,808,000		$ 304,808,000			$ 292,049,000
Revenue from the ground lease	252,000
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Carrying Amount	16,337,000		16,337,000
Unbilled rent receivable	12,870,000		12,870,000			12,815,000
Maximum Exposure to Loss	16,337,000		16,337,000
Restricted cash	1,335,000		1,335,000			1,607,000
Land	20,132,000		20,132,000
Accrued expenses and other liabilities	12,026,000		12,026,000			12,451,000
Non-controlling interests in joint ventures	2,085,000		2,085,000			1,628,000
Investment in unconsolidated joint ventures	2,486,000		2,486,000			4,907,000
Noxell Corporation industrial building, Joppa, Maryland
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Ownership interest in consolidated joint venture of the company (as a percent)					95.00%
Restricted assets	0		0
Land	3,815,000		3,815,000
Buildings and improvements, net of depreciation	8,016,000
Cash	451,000		451,000
Prepaid expenses and receivables	43,000		43,000
Accrued expenses and other liabilities	181,000		181,000
Non-controlling interests in joint ventures	323,000		323,000
Non Variable Interest Entity | Consolidated JV
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Number of joint ventures with controlling interest	6
Non Variable Interest Entity | Minimum | Consolidated JV
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Ownership interest in consolidated joint venture of the company (as a percent)	85.00%		85.00%
Non Variable Interest Entity | Maximum | Consolidated JV
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Ownership interest in consolidated joint venture of the company (as a percent)	95.00%		95.00%
MCB Real Estate LLC And Its Affiliates | Consolidated JV
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Number of joint ventures with controlling interest	5
Investment in consolidated joint ventures	19,000,000		19,000,000
Land - The Meadows Apartments, Lakemoor, Illinois
Variable Interest Entities
Contract Purchase Price	9,300,000		9,300,000
Number of apartment units in the complex purchased			496
Mortgage debt	43,824,000		43,824,000
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Land	9,528,000	[1]	9,528,000	[1]
Land - The Meadows Apartments, Lakemoor, Illinois | Land
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Carrying Amount	9,528,000		9,528,000
Maximum Exposure to Loss	9,528,000		9,528,000
Land - River Crossing Apartments, Sandy Springs, Georgia
Variable Interest Entities
Contract Purchase Price					6,510,000
Number of apartment units in the complex purchased					196
Mortgage debt	16,230,000		16,230,000
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Restricted cash	1,335,000		1,335,000
Land - River Crossing Apartments, Sandy Springs, Georgia | Land
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Carrying Amount	6,528,000		6,528,000
Maximum Exposure to Loss	6,528,000		6,528,000
Land - River Crossing Apartments, Sandy Springs, Georgia | Unbilled rent receivable
Variable Interest Entity, Nonconsolidated, Comparison of Carrying Amount of Assets and Liabilities to Maximum Loss Exposure
Carrying Amount	281,000		281,000
Maximum Exposure to Loss	$ 281,000		$ 281,000

[1] Includes capitalized transaction costs of $228 incurred with this asset acquisition.

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Related Party Transactions

3 Months Ended

Mar. 31, 2015

Related Party Transactions

Related Party Transactions

Note 11 — Related Party Transactions

The Company agreed to pay quarterly fees of $633,750 in 2015 (including overhead expenses of $48,900 and property management fees of $223,100) pursuant to the compensation and services agreement, as amended, with Majestic Property Management Corp., a company wholly-owned by the Company’s vice-chairman.  For the three months ended March 31, 2014, such fees were $825,000 (including overhead expenses of $46,600 and property management fees of $212,500). The 2015 amount reflects an adjustment to the compensation and services agreement that was effective July 1, 2014.

For 2015 and 2014, the Company agreed to pay quarterly fees of $65,625 and $62,500, respectively, to the Company’s chairman and $26,250 and $25,000, respectively, to the Company’s vice-chairman.

The chairman and vice-chairman fees and the fees paid under the compensation and services agreement are included in general and administrative expense on the consolidated statements of income, except for the property management fees which are included in real estate expenses on the consolidated statements of income.

During the three months ended March 31, 2015 and 2014, a portion of the Company’s property insurance ($57,000 and $50,000, respectively) was obtained in conjunction with Gould Investors L.P., a related party. This expense, which represents the Company’s proportionate share of property insurance premiums paid by Gould Investors, is included in real estate expenses on the consolidated statements of income.

During the three months ended March 31, 2015 and 2014, the Company paid an aggregate of $105,000 and $12,000, respectively, to its joint venture partners or their affiliates for property management and acquisition fees, which were included on the consolidated statements of income.