| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 36.70 | 70 |
| Intrinsic value (DCF) | 11.08 | -49 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 12.01 | -44 |
One Liberty Properties, Inc. (NYSE: OLP) is a diversified real estate investment trust (REIT) specializing in industrial, retail, restaurant, health and fitness, and theater properties. Established in 1982, the company operates as a self-administered and self-managed REIT, focusing on long-term net leases where tenants typically cover property taxes, insurance, and maintenance costs. This structure provides stable cash flows and reduces operational overhead. With a geographically diversified portfolio, One Liberty mitigates regional economic risks while capitalizing on demand for essential commercial real estate. The company’s strategic focus on net-leased properties enhances its resilience in fluctuating markets, making it an attractive option for income-focused investors. As a mid-cap REIT, One Liberty offers exposure to a mix of property sectors, balancing growth potential with steady dividend income.
One Liberty Properties presents a moderate-risk investment opportunity with a focus on income generation. The company’s diversified portfolio and net lease structure provide stable cash flows, supporting its $1.80 annual dividend (yielding ~3.5% based on current market cap). However, its beta of 1.17 indicates higher volatility than the broader market, reflecting sensitivity to interest rate changes and economic cycles. While the REIT maintains solid occupancy rates, its heavy reliance on long-term leases could limit rent growth potential. Debt levels are manageable (total debt of $420.6M vs. cash of $42.3M), but rising interest rates may pressure financing costs. Investors should weigh the steady yield against sector-specific risks, including tenant credit quality and industrial/retail market dynamics.
One Liberty Properties competes in the diversified REIT sector by leveraging its niche focus on net-leased properties, which reduces operational risks and ensures predictable income. Its portfolio diversification across industrial, retail, and fitness assets provides stability, though it lacks the scale of larger peers like Realty Income (O) or W.P. Carey (WPC). The company’s competitive edge lies in its hands-on management and targeted acquisitions in secondary markets, where cap rates may be more favorable. However, its smaller size limits access to premium assets and economies of scale. Unlike sector giants with global footprints, One Liberty’s U.S.-centric portfolio exposes it to domestic economic shifts. Its modest development pipeline also contrasts with peers actively expanding into high-growth sectors like logistics or data centers. While the dividend is reliable, payout growth lags behind top-tier REITs, reflecting slower NAV appreciation.