What One Liberty Properties, Inc. told the SEC could break it.

Although One Liberty owns 103 properties across 30 states, its rent is geographically concentrated: approximately 51.5% of 2026 base rent is derived from properties in six states — South Carolina (12.8%), Pennsylvania (10.8%), New York (8.5%), Texas (7.1%), Iowa (6.6%) and Alabama (5.7%) — so a decline in economic conditions in these states or regions could adversely affect rental income, occupancy and portfolio value.

“Approximately 51.5% of our 2026 base rent is derived from properties located in six states — South Carolina (12.8%), Pennsylvania (10.8%), New York (8.5%), Texas (7.1%), Iowa (6.6%) and Alabama (5.7%).”

One Liberty is leveraged through $522.5 million of mortgage debt with a 5.8-year weighted-average remaining term and a revolving credit facility ($30.0 million outstanding at a floating 5.42% rate as of February 27, 2026), and funds acquisitions with new property-level mortgages; rising interest rates, tighter credit, or an inability to refinance maturing mortgage debt on acceptable terms could increase its borrowing costs and constrain its ability to re-lease or recycle capital.

“the weighted average remaining term of our $522.5 million mortgage debt is 5.8 years and the weighted average interest rate there”

One Liberty's tax efficiency depends on maintaining REIT status, which requires it to distribute at least 90% of its annual ordinary taxable income to stockholders; this mandatory-distribution requirement limits the capital it can retain to fund acquisitions, debt repayment or operations (forcing reliance on external financing), and a failure to satisfy REIT qualification tests would subject it to corporate-level tax and reduce funds available for distributions.

“in order to maintain that status, we are required to distribute to our stockholders at least 90% of our annual ordinary taxable income.”

One Liberty depends on related-party affiliates for management services: property management is provided by Majestic Property Management Corp. for a fee equal to 1.5% and 2.0% of rental payments received from net-lease and operating-lease tenants respectively (only for properties not managed by third parties), so it relies on an affiliated external manager whose interests may not always align with stockholders', and disruption to or termination of these related-party arrangements could affect its operations.

“The amounts paid for property management services are based on 1.5 % and 2.0 % of the rental payments (including tenant reimbursements) actually received by the Company from net lease tenants and operating lease tenants, respectively. The Company does not pay Majestic for property management services with respect to properties managed by third parties.”