One Liberty Properties, Inc. (OLP): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of One Liberty Properties, Inc. (OLP) after their big shift, right? Honestly, dissecting a REIT's (Real Estate Investment Trust) model while they're actively recycling assets-selling off older retail to double down on industrial-can be tricky. But here's the quick math: as of mid-2025, they're sitting on a geographically diverse portfolio worth about $795.6 million, with nearly 80% of that annual base rent coming from those sticky, single-tenant industrial properties. If you want to see exactly how they balance that long-term triple-net lease stability against a debt load near $455.0 million while managing a high-conviction pivot, dive into the full Business Model Canvas below.

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Key Partnerships

You're looking at how One Liberty Properties, Inc. (OLP) gets deals done and keeps the capital flowing to fuel its industrial pivot. The partnerships are critical, especially since the company is actively recycling capital from non-core assets into industrial properties, aiming for that 80% industrial ABR mix achieved as of the end of Q3 2025.

The core of OLP's growth engine relies on external relationships to source, finance, and close its acquisitions. Here's a breakdown of those key players.

Commercial real estate brokers for sourcing new industrial assets

These brokers are essential for finding the right industrial assets that fit OLP's disciplined acquisition criteria. While specific broker names or sourcing fees aren't public figures, the result of this partnership activity is clear: OLP completed or planned approximately $189 million in acquisitions for 2025 alone.

• - Sourcing industrial properties near key transportation hubs.
• - Identifying non-core retail assets for capital recycling.

Mortgage lenders and banks for securing property-specific debt financing

Securing debt is how OLP leverages its equity to acquire properties, which is a key part of the REIT structure. As of September 30, 2025, total debt stood at approximately $458.7 million against total assets of $802.3 million. The company leans on lenders to provide property-specific mortgages, often with interest-only terms for a period. The weighted average interest rate on their mortgages payable was reported at 4.79% with six years average remaining maturity, though newer debt in 2025 carried rates between 5.10% and 6.2%. This financing activity is central to their investment strategy.

Here's a look at some of the specific mortgage debt secured during 2025:

Title companies and legal counsel for efficient transaction closings

These professional services ensure that the complex due diligence and closing processes for real estate transactions are handled smoothly. Efficient closings are necessary to deploy capital quickly, especially when aiming to close on a $53.5 million industrial portfolio expected by year-end 2025.

• - Ensuring clear title for acquired industrial assets.
• - Managing legal documentation for new mortgage debt.

Joint venture partners for select property acquisitions and dispositions

One Liberty Properties, Inc. uses joint ventures (JVs) to execute specific transactions, often selling its interest to recycle capital. In August 2025, OLP sold its two unconsolidated JV properties in Savannah, Georgia, which brought in $2.4 million in net proceeds to OLP (representing a 50% share) and a corresponding equity in earnings gain of approximately $991,000. Earlier in Q2 2025, the company completed the sale of three non-industrial assets, one of which was from a consolidated JV where OLP held a 90% interest, realizing a net gain of $6.5 million before the minority interest's $972,000 share. These exits are part of the strategy to fund the industrial acquisitions.

Finance: draft 13-week cash view by Friday.

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Key Activities

One Liberty Properties, Inc. (OLP) focuses its key activities on scaling its industrial property platform through disciplined capital deployment.

Acquiring and managing single-tenant industrial properties

The core activity involves acquiring and managing properties, with a significant pivot underway. As of the end of the third quarter of 2025, approximately 80% of the Annual Base Rent (ABR) was generated from industrial properties. This focus is supported by recent, large-scale purchases:

• - Acquired four industrial properties in Q1 2025 for an aggregate purchase price of $88.3 million.
• - Completed the acquisition of a 210,600 square foot, single-tenant industrial property in Blythewood, South Carolina, in August 2025 for $24.0 million.
• - Closed on the purchase of a 199,919 square foot, single-tenant industrial property in Oakdale, Minnesota, in October 2025 for $23.0 million.

Executing the strategic asset recycling plan (dispositions and acquisitions)

A key activity is the systematic selling of non-core assets to fund the industrial expansion. Total acquisitions completed and to be completed in 2025 are approximately $189 million.

Disposition activity in the third quarter of 2025 included the sale of four non-core properties, which generated net proceeds of $16.3 million and resulted in a gain of $9.1 million. Subsequent to the quarter end, the company completed the sale of another non-core asset, generating net proceeds of approximately $17.7 million. In the second quarter of 2025 alone, the sale of three retail assets realized a net gain of $6.5 million.

Negotiating and enforcing long-term triple-net leases

The company secures its cash flow through long-term leases, often with contractual rental increases. During the third quarter of 2025, One Liberty Properties, Inc. entered into, extended, or renewed leases covering 281,000 square feet. For example, the Oakdale property acquired in October 2025 is estimated to generate an annual base rent of approximately $1.5 million with annual base rent increases of 4.0%. The anticipated acquisition of the Pittsburgh area portfolio is expected to generate an annual base rent of approximately $3.4 million with annual increases ranging from 2% to 3%.

Securing and managing mortgage debt with fixed interest rates

One Liberty Properties, Inc. relies on debt financing, prioritizing fixed-rate mortgages to manage interest rate risk. As of September 30, 2025, the total debt stood at approximately $458.7 million against total stockholders' equity of $305.6 million. New debt incurred in 2025 has been secured at fixed rates, often with interest-only periods until maturity.

Here's a look at the recent mortgage debt activity:

The company maintained total available liquidity of approximately $109.4 million as of October 31, 2025.

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Key Resources

The Key Resources for One Liberty Properties, Inc. (OLP) center on its physical real estate holdings and its operational structure, which is designed to keep management costs lean.

The foundation of One Liberty Properties, Inc.'s business is its property portfolio, which is geographically spread out to mitigate regional economic risk. This portfolio is comprised of a total of 103 properties situated across 32 states.

Operational efficiency is supported by a high rate of tenant occupancy, which stood at approximately 98.8% as of mid-2025, indicating strong demand for the leased spaces.

Financially, the scale of the assets and the company's immediate financial flexibility are critical resources. Here's a look at the hard numbers as of the dates provided:

The structure itself is a resource, as One Liberty Properties, Inc. operates as a self-administered and self-managed REIT. This internal management approach helps align executive incentives directly with shareholder value, avoiding external management fees.

To summarize the core tangible and structural assets:

• Geographically diversified portfolio of 103 properties across 32 states
• High occupancy rate of approximately 98.8% as of mid-2025
• Total real estate assets valued at $795.6 million as of June 30, 2025
• Available liquidity of approximately $109.4 million as of October 31, 2025
• Self-administered and self-managed REIT structure

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Value Propositions

You're looking at the core strengths One Liberty Properties, Inc. (OLP) offers its stakeholders, which are heavily anchored in the stability of its leasing structure and the strategic focus of its asset base. The value proposition centers on delivering reliable income streams through real estate ownership.

• Stable, predictable cash flow from long-term net leases. This stability is enhanced by the fact that many leases include periodic contractual rental increases, designed to provide organic growth to the base rent.
• Industrial-focused portfolio, representing approximately 80% of Annual Base Rent as of the end of Q3 2025. This strategic pivot is designed to capture stability in the logistics sector.
• Tenant responsibility for property operating expenses (triple-net structure). This means the tenant is typically obligated to pay the real estate taxes, insurance, and ordinary maintenance and repairs directly, which keeps OLP's operating expenses lower and more predictable.
• Diversified tenant base to mitigate single-tenant risk (FedEx is largest at ~5.5%). The top 5 tenants, in total, represent only about ~20% of the total rent, which shows a good spread of risk.

The operational performance of the portfolio strongly supports these value propositions, particularly the stability aspect. As of the end of Q3 2025, the overall portfolio occupancy rate stood at a very strong 98.2%. This high occupancy rate, combined with the triple-net lease structure, helps ensure that the rental income component of the value proposition remains robust.

Here's a quick look at how the portfolio composition drives this value proposition, showing the concentration in the target industrial sector:

The commitment to the net lease structure means that the core value is derived from the contractual nature of the revenue, where tenants handle the variable property-level expenses. This is the foundation for the stable, predictable cash flow you are seeking from One Liberty Properties, Inc. (OLP).

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Customer Relationships

You're managing a portfolio that leans heavily on long-term, stable relationships, which is the core of how One Liberty Properties, Inc. (OLP) structures its customer interactions. The strategy centers on securing single-tenant corporate clients, particularly within the industrial sector, which now drives approximately 80% of the Annual Base Rent (ABR) as of the end of the third quarter of 2025. This focus on single-tenant, long-term net and triple-net leases means the tenant handles the property's taxes, insurance, and maintenance, simplifying OLP's day-to-day involvement.

The relationship is built on the quality and predictability of the lease structure itself. Consider the recent additions to the portfolio that exemplify this direct, long-term approach:

The management team, led by CEO Patrick J. Callan, Jr., emphasizes disciplined underwriting for these direct relationships. They are actively scaling this industrial platform through capital recycling. For instance, a signed six-building portfolio, expected to close by year-end 2025, is anticipated to generate an estimated annual base rent of approximately $3.4 million, with fixed increases ranging from 2% to 3%.

Maintaining high occupancy is a direct result of successfully managing lease renewals and extensions. You want to keep those tenants happy enough to stay, especially given the short-term risk inherent in some lease structures. As of the end of the third quarter of 2025, OLP reported significant leasing activity, showing proactive engagement with the existing tenant base.

Here's what the leasing activity looked like for that quarter:

• Leases entered into, extended, or renewed totaled 281,000 square feet in Q3 2025.
• The overall portfolio occupancy rate remained high, reported at approximately 98.8% as of June 30, 2025.
• Even earlier in 2025, the occupancy rate was noted at a strong 99.1%.

The lease expiration schedule requires constant attention; as of early 2025, over 91% of leases were set to expire within the next 8 years. This means negotiations are always on the horizon. For example, 23 buildings, representing about 9% of leases, were scheduled to expire within the next 2 years from that January 2025 report.

Property management at One Liberty Properties, Inc. is distinctly focused on lease compliance rather than the day-to-day running of the building-that's the tenant's job under the net lease structure. The relationship management here is about enforcing the contract terms and managing the lease lifecycle proactively. A concrete example of this focused management occurred in June 2025.

The company recognized a lease termination fee of $66,000 from an industrial tenant involved in a lease buy-out transaction. Following that, the property was successfully re-leased to a new tenant. This shows the team is actively managing lease agreements to maintain cash flow stability, even when a tenant relationship needs to be formally concluded. Finance: draft 13-week cash view by Friday.

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Channels

You're looking at how One Liberty Properties, Inc. (OLP) gets its product-net-leased industrial and selective retail properties-to its customers, which are tenants and capital providers. It's a mix of direct negotiation and public market access.

Direct leasing agreements with corporate tenants

One Liberty Properties, Inc. primarily manages its tenant relationships directly, which is typical for a net-lease REIT structure where tenants handle most operating expenses. This direct channel is evidenced by the volume of lease activity reported.

In the third quarter of 2025, One Liberty Properties, Inc. entered into, extended or renewed leases covering 281,000 square feet. The portfolio is heavily weighted toward industrial assets, with approximately 80% of the portfolio's annual base rent (ABR) generated by industrial properties as of the end of Q3 2025. This focus reflects a strategic shift, moving from 63.3% industrial ABR at the end of 2023 to over 72% by early 2025.

The company owned 103 properties across 32 states as of June 30, 2025, maintaining a high occupancy rate of approximately 98.8% at that time. Rental income reflects the success of this channel, growing 12.3% year-over-year to $24.5 million in Q2 2025, following a 7.7% growth to $24.2 million in Q1 2025. For a specific acquisition agreed upon in Q2 2025, the expected annual base rent is approximately $1.5 million, with 3.5% annual increases built in. Another anticipated closing by year-end 2025 is expected to generate an annual base rent of approximately $3.4 million with annual increases ranging from 2% to 3%. Sometimes, this channel involves restructuring, such as the lease termination fee of $66,000 received in Q2 2025 from an industrial tenant for a lease buy-out before re-leasing.

Commercial real estate brokers for initial tenant placement

While the primary leasing activity appears direct, brokers are an implicit channel for portfolio expansion and property disposition, which feeds the leasing pipeline. The data shows significant external transaction activity that requires market intermediaries.

One Liberty Properties, Inc.'s capital recycling strategy involves external transaction channels. In Q3 2025, the company completed the sale of four non-core properties, generating $16.3 million in net proceeds. The total acquisitions completed and to be completed in 2025 are approximately $189 million. For instance, a Q1 2025 acquisition of four industrial properties for an aggregate purchase price of $88.3 million involved incurring new mortgage debt of $52.1 million.

The use of brokers for tenant placement specifically is not detailed in the public filings, but the scale of leasing activity suggests a professional brokerage presence is likely involved in sourcing or facilitating some of the 281,000 square feet of lease activity in Q3 2025. The company's focus remains on acquiring well-located net leased properties, emphasizing industrial assets.

Key transaction metrics related to capital deployment and recycling include:

Investor relations and public equity markets (NYSE: OLP) for capital

The public equity markets are a critical channel for One Liberty Properties, Inc. to raise capital for its acquisition strategy, as evidenced by the use of its line of credit and stock issuances.

The company is publicly traded on the New York Stock Exchange under the symbol OLP. Capital structure management is ongoing, with total debt at $455.0 million as of June 30, 2025, down from $471 million at March 31, 2025. Available liquidity was approximately $109.4 million at October 31, 2025, consisting of about $9.4 million in cash and cash equivalents and $100 million available under its credit facility. This credit facility matures on December 31, 2026, and allows borrowing up to $100 million.

Investor perception and financial performance are key to this channel. Here's a look at the per-share financial metrics for recent quarters in 2025:

• - Q3 2025 Net income per diluted share: $0.48.
• - Q3 2025 FFO per diluted share: $0.42.
• - Q3 2025 AFFO per diluted share: $0.46.
• - Q2 2025 Net income per diluted share: $0.39.
• - Q2 2025 FFO per diluted share: $0.45.
• - Q2 2025 AFFO per diluted share: $0.49.
• - Q1 2025 FFO per diluted share: $0.44.

Stock issuances for non-cash equity incentive and dividend reinvestment programs impacted Q3 2025 diluted shares by an average increase of approximately 214,000 weighted average shares outstanding compared to the prior year period. This is a direct interaction with the equity base of the company.

Finance: draft 13-week cash view by Friday.

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Customer Segments

You're managing a portfolio that is rapidly concentrating on a specific asset class, which means your customer segments are becoming more focused, too. One Liberty Properties, Inc. (OLP) is clearly prioritizing industrial tenants, but the legacy portfolio still contains other users. Here's the quick math on who is paying the rent as of late 2025, based on the latest reported figures.

The primary customer segment is now overwhelmingly single-tenant industrial users, covering distribution, manufacturing, and logistics needs. This focus is deliberate; as of the end of the third quarter of 2025, approximately 80% of One Liberty Properties, Inc.'s Annual Base Rent (ABR) came from this industrial sector. This is a significant shift from earlier periods, for example, where about 75% of base rent was industrial in Q1 2025. You see this in their acquisition strategy, such as closing on a 199,919 square foot, single-tenant industrial property in Oakdale, Minnesota for \$23.0 million in October 2025. Another example is the August 2025 acquisition of a 210,600 square foot, single-tenant industrial property in Blythewood, South Carolina for \$24.0 million. These deals confirm the appetite for single-tenant logistics and distribution users who typically sign long-term, net leases.

Next up are the credit-worthy, publicly traded companies, which provide stability to the overall rent roll. While the most granular breakdown of top tenants is from April 2024, these relationships remain key anchors. For instance, FedEx (NYSE: FDX) was listed as a top tenant with 6 locations contributing \$3,920,264 in 2024 Contractual Rental Income, representing 5.5% of the total. Haverty's Furniture Companies, Inc. (NYSE: HVT) was another major name, with 8 locations generating \$3,375,585 in 2024 Contractual Rental Income, or 4.7% of the total. These are the types of tenants management likes because they often sign long-term net leases with built-in rental increases.

Finally, you still have select non-industrial tenants remaining from the legacy portfolio, though One Liberty Properties, Inc. is actively shedding these. The company has been disciplined in recycling capital from these sales. For example, in the second quarter of 2025, three retail assets were sold, and in Q3 2025, four non-core properties were sold for \$16.3 million in net proceeds. This active disposition strategy means the percentage of revenue from these legacy retail and restaurant tenants is shrinking relative to the growing industrial base.

Here's a look at how the top tenants contributed to the rental income base, using the latest available full-year data for context on these specific customer relationships:

The portfolio composition shows a clear trend away from the legacy segments, which you can see reflected in the property type breakdown from an earlier period, which is still useful for understanding the mix being refined:

• Industrial Properties: 55 Properties, 8,523,115 SF
• Retail Properties: 43 Properties, 1,658,895 SF
• Other (Legacy): 12 Properties, 715,644 SF

Finance: draft 13-week cash view by Friday.

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive One Liberty Properties, Inc.'s operations as of late 2025. Since One Liberty Properties, Inc. is self-managed, a significant portion of its costs comes from direct operational overhead rather than being passed entirely to a third-party manager.

The most immediate financial pressure point is the cost of capital. One Liberty Properties, Inc. carries substantial leverage to fund its property acquisitions. This results in a high interest expense due to total debt, which stood at $455.0 million as of Q2 2025, though the latest balance sheet data from September 30, 2025, shows total debt at $458.7 million. This debt load directly translates into significant financing costs; for the third quarter of 2025, the reported interest expense was $5.617 million. This interest headwind was noted as outpacing rental income gains in that quarter.

The cost structure is heavily influenced by the nature of its real estate holdings. A major component is real estate operating expenses, which cover property taxes, insurance, and maintenance for the portfolio. While these are mostly reimbursed by tenants under net lease structures, the gross expense figure still impacts cash flow before those reimbursements come through. For the three months ended September 30, 2025, One Liberty Properties, Inc.'s total operating expenses were reported at $7.91 million.

Because One Liberty Properties, Inc. maintains a self-managed structure, general and administrative costs are a direct reflection of its internal team supporting leasing, accounting, and corporate functions. These costs are necessary to run the business without outsourcing management. While the specific G&A line item for Q3 2025 isn't explicitly detailed in the latest summaries, the self-administered nature means these costs are inherent to the operating structure.

Finally, the ongoing investment in the portfolio results in non-cash charges. Depreciation and amortization expense from property acquisitions is a consistent cost that reflects the capital invested in the assets. For the three months ended September 30, 2025, the depreciation and amortization of properties alone amounted to $6,492,000.

Here is a breakdown of key cost-related financial metrics for the third quarter of 2025:

The cost structure is also impacted by capital recycling activities, such as the non-cash impairment charge of $1.3 million recognized in Q3 2025 related to a non-core asset sale.

• - Interest expense rose to $5.617 million in Q3 2025.
• - Depreciation and amortization of properties was $6,492,000 for the quarter.
• - Total operating expenses for Q3 2025 were $7.91 million.
• - The company had $18.8 million in cash and cash equivalents at the end of Q3 2025.

One Liberty Properties, Inc. (OLP) - Canvas Business Model: Revenue Streams

You're looking at how One Liberty Properties, Inc. (OLP) actually brings in the money to run the business and pay its obligations. For a real estate investment trust like OLP, the revenue streams are pretty straightforward, centered on property ownership and strategic sales.

The primary engine here is the money coming from tenants under those long-term net leases. This provides the predictable cash flow that REITs rely on. For the second quarter of 2025, that core rental income hit $24.5 million.

Also feeding into that top-line rental number are the tenant reimbursements. This is where tenants cover the costs associated with the property, which typically includes real estate taxes, property insurance, and routine maintenance, depending on the specific net lease structure. These reimbursements help keep the net operating income strong.

The second major component of revenue generation comes from capital recycling-selling assets that no longer fit the core strategy. This is less predictable but provides significant cash boosts. In the third quarter of 2025, for example, OLP completed the sale of four non-core properties, realizing an aggregate gain on sale of real estate of $9.1 million.

To give you a clearer picture of the Q3 2025 performance, here's a snapshot of some key profitability metrics derived from those revenue sources. Remember, these non-GAAP measures are what we analysts watch closely for REIT health.

The company is actively managing its portfolio to maximize these streams, evidenced by the focus on industrial properties, which accounted for approximately 80% of the Annual Base Rent (ABR) as of the end of Q3 2025. You can see the impact of asset sales and acquisitions on the quarterly results, but the $0.46 per diluted share AFFO for Q3 2025 shows the underlying cash flow stability, even with share count increases.

Here are the key drivers influencing the revenue picture:

• Rental income growth driven by net impact of acquisitions and dispositions in 2025.
• Sale of four non-core properties resulting in $16.3 million of net proceeds in Q3 2025.
• Sale of two unconsolidated properties generating $991,000 of equity in earnings in Q3 2025.
• Leases entered into, extended, or renewed for 281,000 square feet during the third quarter.