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One Liberty Properties (OLP) Stock Rises After Selling Property for $40.5 Million

Monday, June 21, 2021 12:56 PM | Kyle Depontes

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One Liberty Properties (OLP) Stock Rises After Selling Property for $40.5 Million

What is going on with OLP?

One Liberty Properties (OLP) stock rose today after the company announced that it closed on a $40.5 million sale of a 47,200 square foot building and the related parking lot located in West Hartford, Connecticut. Shares of OLP increased 2.91% to $28.61 as of Monday at 12:45pm

The proceeds were used to repay a $15.4 million mortgage on the property, pay off the $17.9 million outstanding balance on the company’s credit facility, and pay transaction related costs. The remaining proceeds of approximately $5.4 million will be used for "general corporate and working capital purposes".

What does this mean for One Liberty Properties?

One Liberty Properties sale will allow them to offload a major piece of their portfolio and realize a substantial gain on their investment. The company expects the overall gain from the sale to be around $21 million.

Patrick J. Callan, Jr., President and Chief Executive Officer of One Liberty, commented, “As we continue to transform our portfolio to industrial focused properties in well-located markets, this sale again demonstrates our ability to create meaningful value over time. Similar to the sale of other non-core assets that we believe reached maximum value, this transaction allows us to reduce our leverage and increase our financial capacity to fund future growth.”

The company anticipates that for the quarter ending June 30, 2021, it will recognize an approximate net gain of $21.5 million from the sale, before giving effect to a $796,000 mortgage swap termination fee.

OLP has a Long-Term Technical Rank of 83. Find out what this means to you and get the rest of the rankings on OLP!

One Liberty Properties Inc is a self-administered and self-managed real estate investment trust. It acquires, owns, and manages a geographically diversified portfolio of industrial, retail, restaurant, health and fitness, and theater properties. The group generates the majority of its revenue in the form of rental income.

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