What the changes say
- Tenant lease expirations and non-renewals pose immediate revenue risks totaling $553,000 in 2026 base rent.
- Credit facility expiration on December 31, 2026, with $30.0 million outstanding, threatens liquidity and property acquisitions.
- Artificial intelligence adoption introduces new operational and competitive uncertainties.
What changed since the prior 10-K
New
- NewRisks Related to Our Business
(a)We believe or have been advised that tenants with respect to three leases, or $553,000 of 2026 base rent, intend to allow their leases to expire
Tenants representing three leases and $553,000 of 2026 base rent intend to let their leases expire.
- NewRisks Related to Our Financing Activities, Indebtedness and Capital Resources
If we are required to refinance mortgage debt that matures over the next several years at higher interest rates than such mortgage debt currently bears, our net income will decline and the funds available for dividends will be reduced
Refinancing maturing mortgage debt at higher interest rates will reduce net income, dividends, and common stock valuation.
- NewRisks Related to Our Financing Activities, Indebtedness and Capital Resources
If we are unable to renew or replace our credit facility which expires on December 31, 2026, we will be adversely affected as we will be limited in our ability to acquire properties and will be forced to immediately repay the debt outstanding thereunder
The $30.0 million credit facility expires on December 31, 2026, forcing potential property sales if unrenewed.
- NewGeneral Business Risks
Artificial intelligence and other machine learning techniques could increase competitive, operational, legal and regulatory risks to our business in ways that we cannot predict
Artificial intelligence adoption by competitors and third parties creates unpredictable competitive, operational, and regulatory risks.
Dropped
- DroppedRisks Related to Our Business
(1)Eight leases accounting for 2.1% of contractual rental income expire in 2025, and we believe or have been advised that tenants with respect to $560,000 of 2025 contractual rental income intend to allow their leases to expire
- DroppedRisks Related to Our Business
Our portfolio of properties is concentrated in the industrial and retail real estate sectors, and our business would be adversely affected by an economic downturn in either of such sectors
Eight leases accounting for $560,000 of 2025 rental income were set to expire.
- DroppedRisks Related to Our Financing Activities, Indebtedness and Capital Resources
If our borrowings increase, the risk of default on our repayment obligations and our debt service requirements will also increase
- DroppedGeneral Business Risks
The failure of any bank in which we deposit our funds could have an adverse impact on our financial condition
Reworded
- 88% rewrittenGeneral Business Risks
Actual or threatened epidemics, pandemics, outbreaks, or other public health crises may adversely affect our tenants’ financial condition and the profitability of our properties
Updated to describe general public health crisis impacts broadly rather than detailing COVID-19 supply chain and retail traffic effects.
- 83% rewrittenRisks Related to Our Business
If we are unable to re-rent properties upon the expiration of our leases or if our tenants default or seek bankruptcy protection, our revenues and operating cash flows will be reduced and we would incur additional costs
Updated lease expiration schedule from 2025-2030 to reflect 2026 base rent figures and expiration periods.
- 79% rewrittenRisks Related to Real Estate Investments
We have been, and will continue to be, subject to significant competition and we may not be able to compete successfully for investments
Removed specific reference to acquiring industrial properties, broadening the competition risk to all investment opportunities.
- 71% rewrittenRisks Related to Our Business
The concentration of our properties in certain states makes our revenues and the value of our portfolio vulnerable to adverse changes in local economic conditions
Updated state concentration figures for 2026 base rent, showing South Carolina at 12.8% and Pennsylvania at 10.8%.
- 60% rewrittenRisks Related to Our Financing Activities, Indebtedness and Capital Resources
Volatile or increasing interest rates, or credit market tightening, may make it more difficult for us to secure financing, which may limit our ability to finance or refinance our real estate properties, reduce the number of properties we can acquire, sell certain properties, and decrease our stock price
Retained substantially the same text regarding volatile interest rates while updating underlying financial context.
- 45% rewrittenRisks Related to Our Business
Traditional retail tenants account for 14.6% of our 2026 base rent and the competition that such tenants face from e-commerce retail sales could adversely affect our business
Updated retail tenant base rent percentage to 14.6% and Havertys Furniture to 3.1%, removing Office Depot references.
Was: Traditional retail tenants account for 21.1% of our 2025 contractual rental income and the competition that such tenants face from e-commerce retail sales could adversely affect our business
- 44% rewrittenRisks Related to Our Business
Approximately 21.7% of our 2026 base rent is derived from six tenants. The default, financial distress or failure of any of these tenants, or such tenant’s determination not to renew or extend their lease, would significantly reduce our revenues
Updated top six tenant percentages and remaining lease terms for 2026 base rent, adding Toro Company at 3.0%.
Was: Approximately 21.1% of our 2025 contractual rental income is derived from five tenants. The default, financial distress or failure of any of these tenants, or such tenant’s determination not to renew or extend their lease, would significantly reduce our revenues
- 41% rewrittenRisks Related to Our Business
Our ability to fully control the maintenance of our properties may be limited
Changed wording on maintenance cost recovery from enforcing remedies to difficulty recovering repair costs from troubled tenants.
Was: Our ability to fully control the maintenance of our net-leased properties may be limited
- 40% rewrittenRisks Related to Our Business
Write-offs of unbilled rent receivables and intangible lease assets will reduce our net income, total assets and stockholders’ equity and may result in breaches of financial covenants under our credit facility
- 35% rewrittenRisks Related to OLP’s Organization, Structure and Ownership of Stock
Our transactions with affiliated entities involve conflicts of interest
- 33% rewrittenRisks Related to Our Business
Declines in the value of our properties could result in impairment losses
Was: Declines in the value of our properties could result in impairment charges
- 20% rewrittenRisks Related to Our Financing Activities, Indebtedness and Capital Resources
If we are unable to refinance our mortgage loans at maturity, we may be forced to sell properties at disadvantageous terms, which would result in the loss of revenues and in a decline in the value of our portfolio
All 35 risk factors
Headings as the filing states them, in filing order.
Risks Related to Our Business
- 01If we are unable to re-rent properties upon the expiration of our leases or if our tenants default or seek bankruptcy protection, our revenues and operating cash flows will be reduced and we would incur additional costs83% rewritten
- 02(a)We believe or have been advised that tenants with respect to three leases, or $553,000 of 2026 base rent, intend to allow their leases to expireNew
- 03Approximately 21.7% of our 2026 base rent is derived from six tenants. The default, financial distress or failure of any of these tenants, or such tenant’s determination not to renew or extend their lease, would significantly reduce our revenues44% rewritten
- 04The concentration of our properties in certain states makes our revenues and the value of our portfolio vulnerable to adverse changes in local economic conditions71% rewritten
- 05Write-offs of unbilled rent receivables and intangible lease assets will reduce our net income, total assets and stockholders’ equity and may result in breaches of financial covenants under our credit facility40% rewritten
- 06Declines in the value of our properties could result in impairment losses33% rewritten
- 07Our ability to fully control the maintenance of our properties may be limited41% rewritten
- 08Traditional retail tenants account for 14.6% of our 2026 base rent and the competition that such tenants face from e-commerce retail sales could adversely affect our business45% rewritten
Risks Related to Our Financing Activities, Indebtedness and Capital Resources
- 09If we are unable to refinance our mortgage loans at maturity, we may be forced to sell properties at disadvantageous terms, which would result in the loss of revenues and in a decline in the value of our portfolio20% rewritten
- 10Volatile or increasing interest rates, or credit market tightening, may make it more difficult for us to secure financing, which may limit our ability to finance or refinance our real estate properties, reduce the number of properties we can acquire, sell certain properties, and decrease our stock price60% rewritten
- 11If we are required to refinance mortgage debt that matures over the next several years at higher interest rates than such mortgage debt currently bears, our net income will decline and the funds available for dividends will be reducedNew
- 12A breach of our credit facility could occur if a significant number of our tenants default or fail to renew expiring leases, or we take impairment charges against our properties
- 13If we are unable to renew or replace our credit facility which expires on December 31, 2026, we will be adversely affected as we will be limited in our ability to acquire properties and will be forced to immediately repay the debt outstanding thereunderNew
- 14Certain of our leases require us to pay property related expenses that are not the obligations of our tenants
- 15Our failure to comply with our obligations under our mortgages may reduce our stockholders’ equity, and adversely affect our net income and ability to pay dividends
Risks Related to Real Estate Investments
- 16Our revenues and the value of our portfolio are affected by a number of factors that affect investments in leased real estate generally
- 17Real estate investments are relatively illiquid and their values may decline
- 18Uninsured and underinsured losses may affect the revenues generated by, the value of, and the return from a property affected by a casualty or other claim
- 19We have been, and will continue to be, subject to significant competition and we may not be able to compete successfully for investments79% rewritten
Regulatory and Tax Risks
- 20Compliance with environmental regulations and associated costs could adversely affect our results of operations and liquidity
- 21Compliance with the Americans with Disabilities Act could be costly
- 22Legislative or regulatory tax changes could have an adverse effect on us
Risks Related to OLP’s Organization, Structure and Ownership of Stock
- 23Our transactions with affiliated entities involve conflicts of interest35% rewritten
- 24Our senior management and other key personnel, including those performing services on a part-time basis, are critical to our business and our future success depends on our ability to retain them
- 25Certain provisions of our charter, our Bylaws, as amended, and Maryland law may inhibit a change in control that stockholders consider favorable and could also limit the market price of our common stock
- 26Failure to qualify as a REIT could result in material adverse tax consequences and could significantly reduce cash available for distributions
- 27We are subject to certain distribution requirements that may result in our having to borrow funds at unfavorable rates
- 28Compliance with REIT requirements may hinder our ability to maximize profits
- 29If we reduce or do not increase our dividend, the market value of our common stock may decline
- 30The stock market is volatile, and fluctuations in our operating results, removal from various indices and other factors could cause our stock price to decline
General Business Risks
- 31Enhanced market and economic volatility due to adverse economic and geopolitical conditions, health crises or dislocations in the credit markets, could have a material adverse effect on our results of operations, financial condition and ability to pay dividends
- 32Breaches of information technology systems could materially harm our business and reputation
- 33Artificial intelligence and other machine learning techniques could increase competitive, operational, legal and regulatory risks to our business in ways that we cannot predictNew
- 34Actual or threatened epidemics, pandemics, outbreaks, or other public health crises may adversely affect our tenants’ financial condition and the profitability of our properties88% rewritten
- 35We are dependent on third party software for our financial reporting processes and systems
Other One Liberty Properties 10-Ks
- FY2024 10-K risk factors35 risks
Concentrated exposure to industrial and retail real estate sectors drives revenue risks and property valuations. Major tenant concentrations, lease expirations, and debt maturities threaten cash flows and credit facility covenants. Geographic concentration in six states increases vulnerability to local economic downturns.
Filed Mar 06, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.