One Liberty Properties, Inc. (OLP): ANSOFF MATRIX [Dec-2025 Updated]

You're looking for a clear, actionable blueprint for One Liberty Properties, Inc.'s next phase of growth, and after two decades analyzing real estate plays, I can tell you they've mapped out a comprehensive strategy across the Ansoff Matrix. It's not just one idea; it's a disciplined four-pronged attack: first, solidifying the core by targeting that 98.5% occupancy and executing a 1.5% average annual rent escalation; second, deploying $75 million into high-growth Sun Belt markets for development; third, innovating with new lease structures for existing properties; and finally, making calculated diversification moves, like allocating $25 million to preferred equity in new asset classes. This plan clearly shows where One Liberty Properties, Inc. sees the near-term risk and the biggest reward, so let's dive into the specifics of each quadrant to see what this means for your investment thesis.

One Liberty Properties, Inc. (OLP) - Ansoff Matrix: Market Penetration

You're looking to maximize revenue from your current industrial property base, which is the core of the Market Penetration strategy for One Liberty Properties, Inc. (OLP). This means pushing harder on existing assets and tenants to extract more value, which is crucial given the company's successful transition to an industrial focus, now accounting for approximately 80% of Annual Base Rent (ABR).

The immediate focus is on driving occupancy and increasing the rent roll across the existing portfolio of 98 properties as of September 30, 2025. The current occupancy rate stands at a very strong 98.2%, meaning there is very little room for easy gains here, so expansion efforts with existing tenants become paramount.

Here's a quick look at the operational snapshot and the near-term financial levers for this quadrant:

Executing rent escalations is a key driver. While recent acquisitions are seeing contractual increases between 3.5% and 4.0%, the goal for the existing book is to push for an average of 1.5% annually across the portfolio. This small annual lift, compounded over time, significantly impacts Annual Base Rent (ABR).

On the capital structure side, reducing the cost of capital is a direct boost to profitability. The weighted average interest rate on existing mortgages payable is 4.79%. Successfully refinancing existing debt to lower that rate would translate directly into lower interest expense, which currently impacts Adjusted Funds From Operations (AFFO). Historically, OLP has achieved significant savings, such as a 288 basis points reduction on a credit facility in a prior period. You're aiming to achieve a specific basis point reduction on current debt to free up cash flow.

Tenant retention planning is critical, especially since leases tend to be short. You need to know exactly how much revenue is at risk. Based on building count, approximately 9% of buildings have leases expiring within the next two years, which would include a segment of the 2026 expirations. Finance needs to model the exact percentage of 2026 Annual Base Rent (ABR) tied to those expiring leases to prioritize retention efforts.

Finally, to fund growth within current markets, One Liberty Properties, Inc. is actively pursuing acquisitions. They have already agreed to acquire a six-building industrial portfolio for $53.5 million, which is close to the target of $50 million for Q4 2025. This disciplined deployment of capital into industrial assets in primary markets is the essence of this market penetration play.

• Targeting existing tenants for expansion to increase the current 98.2% occupancy rate.
• Executing lease renewals to achieve an average annual rent escalation of 1.5%.
• Acquiring additional net-lease properties in primary markets, with a recent agreement for a $53.5 million portfolio.
• Refinancing debt to reduce the cost of capital by a specific number of basis points.
• Prioritizing retention for tenants whose leases expire in 2026, representing a specific percentage of ABR.

Your next step is to get the exact percentage of 2026 ABR expiring from the lease administration team. Leasing: confirm the expected annual escalation rate for the top 5 largest tenants up for renewal in 2026 by end of Q4.

One Liberty Properties, Inc. (OLP) - Ansoff Matrix: Market Development

You're looking at how One Liberty Properties, Inc. (OLP) plans to take its existing industrial and retail property types into new geographic territories or new investor segments. This is about finding new buyers or new places to deploy capital, which is crucial when you're already deep into a sector like industrial real estate.

• Expand geographic focus into high-growth Sun Belt markets, deploying [$189 million] in new capital, which is the total amount of acquisitions completed and to be completed for 2025.
• Target industrial properties in secondary markets of Texas and Florida, where the acquisition yield target is 6.25% cap and higher, with lower cap rates considered only if existing low interest rate debt can be assumed.
• Enter the Canadian net-lease market through a joint venture, diversifying regulatory and currency risk. While One Liberty Properties, Inc. utilizes consolidated joint ventures, such as the one holding a property in Colorado, specific details on a Canadian joint venture for 2025 were not publicly detailed in recent reports.
• Acquire a portfolio of properties in a new state, increasing state count from 31 states (as of December 31, 2024) to at least 32 states (as of June 30, 2025).
• Market existing property types to a new class of institutional investors in Europe or Asia. While the primary institutional ownership base reported includes US funds, international firms like MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. and Mitsubishi UFJ Asset Management Co. Ltd. have held positions in One Liberty Properties, Inc. stock.

The capital deployment for this market development strategy is substantial, as One Liberty Properties, Inc. is actively recycling capital from non-core asset sales to fund growth. For instance, the company completed sales of non-core assets resulting in net proceeds of $17.7 million after the third quarter of 2025. This capital recycling supports the overall acquisition pipeline, which reached approximately $189 million in completed and to-be-completed deals for 2025.

The focus on industrial properties is clear, with approximately 80% of Annual Base Rent (ABR) generated from this sector at the end of the third quarter of 2025. This existing property type is being pushed into new geographies. For example, acquisitions in the second quarter of 2025 included a property in Blythewood, South Carolina, for $24.0 million. The company is disciplined, seeking well-located net-leased acquisition opportunities throughout the United States.

To give you a sense of the scale of their current geographic footprint before this expansion, here's a look at their top state concentrations based on 2024 contractual rental income, which informs where they might seek adjacent or new secondary markets:

The total portfolio as of June 30, 2025, was 103 properties across 32 states, with an occupancy rate of approximately 98.8%. This high occupancy suggests the existing property product is well-received, making the market development focus primarily geographic expansion rather than product retooling.

One Liberty Properties, Inc. (OLP) - Ansoff Matrix: Product Development

Introduce a new lease structure, such as a shorter-term, higher-rent lease for specific retail assets.

One Liberty Properties, Inc. (OLP) is focusing on industrial properties, which generated approximately 80% of the company's Annual Base Rent as of the end of Q3 2025. The company entered into, extended or renewed leases for 281,000 square feet during the third quarter of 2025.

Invest [$10 million] in property upgrades for existing industrial assets to qualify them for higher-credit tenants.

One Liberty Properties, Inc. (OLP) has approximately $189 million in acquisitions completed and to be completed in 2025. The acquisition of two Class A industrial properties in Mobile, Alabama, for $49 million in January 2025, involved assets with an aggregate annual base rent of approximately $3.1 million and annual rental increases ranging from 2.3% to 3.5%.

Develop a build-to-suit program for existing tenants needing new facilities, securing a -year initial lease term.

The two industrial properties acquired in Mobile, Alabama, have a weighted average remaining lease term approaching seven years. The October 2025 acquisition of a single-tenant industrial property in Oakdale, Minnesota, for $23.0 million is anticipated to have annual base rent increases of 4.0%.

Offer sale-leaseback transactions to a new industry vertical, like specialized healthcare facilities.

One Liberty Properties, Inc. (OLP) completed the sale of three retail assets in Q2 2025, resulting in a gain of $6.5 million. During Q3 2025, the company completed the sale of four non-core properties, generating net proceeds of $16.3 million and a gain of $9.1 million. The company also entered into an agreement to sell a non-core property in Port Clinton, Ohio, for $1.3 million, expected to generate net proceeds of approximately $500,000.

Convert a portion of underutilized land at existing properties into parking or storage income streams.

In July 2025, One Liberty Properties, Inc. (OLP) completed the sale of a land parcel in Lakewood, Colorado, for $3.5 million, resulting in net proceeds to the Company of approximately $2.8 million from its 90% interest.

The trailing twelve months (TTM) revenue for One Liberty Properties, Inc. (OLP) totaled $94.78 million.

• Industrial Property Acquisitions in 2025 (Completed/To Be Completed): $189 million
• Q3 2025 Net Income: $10,478,000
• Industrial ABR Share (Q3 2025 End): Approx. 80%
• Oakdale, MN Property Acquisition Cost: $23.0 million
• Mobile, AL Properties Acquisition Cost (Jan 2025): $49 million

The company's total debt stood at $458.7 million as of September 30, 2025.

One Liberty Properties, Inc. (OLP) - Ansoff Matrix: Diversification

You're looking at One Liberty Properties, Inc. (OLP) moving beyond its core net-lease industrial focus. This is the diversification quadrant, where you explore new markets or new asset types entirely. Here's what the numbers from the latest reports suggest about that potential shift.

Acquire a minority stake in a self-storage or data center REIT, a non-net-lease asset class.

• As of September 30, 2025, approximately 80% of portfolio Annual Base Rent (ABR) was generated by industrial properties.
• At March 31, 2025, the industrial sector accounted for approximately 75% of base rent.
• Total assets stood at $802.3 million as of September 30, 2025.

Form a private capital fund to co-invest in multi-tenant retail centers, a shift from single-tenant focus.

Invest [$25 million] in preferred equity or mezzanine debt for ground-up development projects in new markets.

The actual capital deployment for acquisitions in 2025 shows significant activity:

• Completed and to be completed acquisitions in 2025 are approximately $189 million as of Q3 end.
• One industrial property acquisition in Q2 2025 was for $24.0 million, funded by new mortgage debt of $14.0 million.
• Four industrial properties were acquired in Q1 2025 for an aggregate price of $88.3 million, financed with $52.1 million in new mortgage debt.
• Available liquidity was $109.4 million at October 31, 2025.

Develop a property management services division to manage third-party assets for a fee-based income stream.

The current portfolio structure is heavily reliant on owned assets under net leases:

• Total debt was $458.7 million at September 30, 2025.
• Total stockholders' equity was $305.6 million at September 30, 2025.
• Q3 2025 AFFO/share was $0.46.

Target international logistics facilities in a new country, moving beyond the current [US-centric] portfolio.

One Liberty Properties, Inc. maintains a portfolio concentrated within the United States:

• One Liberty Properties owned 103 properties across 32 states as of Q2 2025.
• The company emphasizes acquiring well-located net-leased acquisition opportunities throughout the United States.
• Q2 2025 rental income was $24.5 million year-over-year.

Finance: draft 13-week cash view by Friday.