One Liberty Properties Inc (NYSE: OLP)

Sector: Real Estate Industry: REIT - Diversified CIK: 0000712770
Market Cap 346.54 Mn
P/B 1.39
P/E 10.03
P/S 7.57
ROIC (Qtr) 4.25
Div Yield % 7.93
Rev 1y % (Qtr) 7.02
Total Debt (Qtr) 470.51 Mn
Debt/Equity (Qtr) 1.54
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About

ONE Liberty Properties Inc., often recognized by its stock symbol OLP, operates in the real estate industry, specifically as a self-administered and self-managed real estate investment trust (REIT). The company's primary business activities involve the acquisition, ownership, and management of a diversified portfolio of industrial and retail properties. These activities are carried out in 31 states across the United States, with a portfolio comprising 108 properties and an approximate total square footage of 10.9 million square feet. OLP generates...

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Investment thesis

Bull case

  • Operating cash flow of 44.66M provides exceptional 27.10x coverage of minority interest expenses 1.65M, showing strong core operations.
  • Strong operating cash flow of 44.66M provides 2.78x coverage of SG&A expenses 16.04M, showing efficient operational cost management.
  • Cash position of 18.80M provides exceptional 11.41x coverage of minority interest expenses 1.65M, indicating strong liquidity.
  • Cash reserves of 18.80M provide ample 12.16x coverage of acquisition spending 1.55M, enabling strategic growth opportunities.
  • Strong tangible asset base of 782.78M provides 506.33x coverage of acquisition spending 1.55M, enabling strategic growth.

Bear case

  • Operating cash flow of 44.66M barely covers its investment activities of (45.85M), with a coverage ratio of -0.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 44.66M provides thin coverage of dividend payments of (38.89M) with a -1.15 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of (72.91M) provides weak coverage of capital expenditures of 117.58M, with a -0.62 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 55.56M show weak coverage of depreciation charges of 26.24M, with a 2.12 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (72.91M) represents just -2.31x of debt issuance 31.60M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer comparison

Companies in the REIT - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 VICI Vici Properties Inc. 30.39 Bn 11.76 8.24 16.76 Bn
2 WPC W. P. Carey Inc. 16.39 Bn 35.15 9.55 8.72 Bn
3 BNL Broadstone Net Lease, Inc. 2.77 Bn 40.51 8.39 2.34 Bn
4 SAFE Safehold Inc. 1.15 Bn 10.07 2.99 4.59 Bn
5 AAT American Assets Trust, Inc. 1.13 Bn 20.37 2.60 1.69 Bn
6 ESRT Empire State Realty Trust, Inc. 0.91 Bn 16.82 1.33 2.06 Bn
7 CTO CTO Realty Growth, Inc. 0.60 Bn 6,383.33 35.13 0.60 Bn
8 GNL Global Net Lease, Inc. 0.57 Bn 11.86 2.57 2.93 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.70 0.68
EV to Cash from Ops. EV/CFO 22.49 -30.44
EV to Debt EV to Debt 1.19 1.31
EV to EBIT EV/EBIT 11.81 52.23
EV to EBITDA EV/EBITDA 16.32 6.51
EV to Free Cash Flow [EV/FCF] EV/FCF -38.67 21.01
EV to Market Cap EV to Market Cap 1.62 6.71
EV to Revenue EV/Rev 12.23 9.65
Price to Book Value [P/B] P/B 1.39 0.98
Price to Earnings [P/E] P/E 10.03 385.22
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.86 -1.16
Dividend Payout Ratio % Div Payout % (Qtr) 116.90 90.61
Dividend per Basic Share Div per Share (Qtr) 1.80 1.00
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) -51.55 -0.65
Interest Coverage Int. cover (Qtr) 2.53 0.73
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -142.91 -246.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.80 49.26
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 2.40
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2.98 -20.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 5.75 -2.00
EBIT Growth (1y) % EBIT 1y % (Qtr) 2.45 -20.80
EBT Growth (1y) % EBT 1y % (Qtr) -4.09 -13.26
EPS Growth (1y) % EPS 1y % (Qtr) -6.10 -38.39
FCF Growth (1y) % FCF 1y % (Qtr) -566.42 -62.73
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 5.38 -1.85
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.12 0.11
Cash Payout Ratio Cash Payout (Qtr) 0.24 0.34
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 1.54 0.82
Interest Cover Ratio Int Coverage (Qtr) 2.53 0.73
Times Interest Earned Times Interest Earned (Qtr) 2.53 0.73
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 84.90 38.58
EBIT Margin % EBIT Margin % (Qtr) 57.67 10.26
EBT Margin % EBT Margin % (Qtr) 34.87 -13.89
Gross Margin % Gross Margin % (Qtr) 79.30 59.91
Net Profit Margin % Net Margin % (Qtr) 34.90 -17.09