One Liberty Properties: A High-Insider-Ownership REIT with Resilient Balance Sheet and Attractive Dividend Yield

One Liberty Properties (OLP) has emerged as a compelling case for undervaluation and near-term turnaround potential, driven by three key pillars: high insider ownership, a resilient balance sheet, and a strong dividend yield. These factors, combined with strategic operational shifts, position OLP as a compelling opportunity for investors seeking value in the real estate sector.

High Insider Ownership: Alignment of Interests

Insider ownership remains a critical indicator of management's confidence and alignment with shareholders. As of Q3 2025, insiders own over 25% of OLP, a figure described as a "strategic advantage" in recent analyses according to Seeking Alpha. This level of ownership suggests that executives and board members have a vested interest in maximizing shareholder value. While some insider share sales occurred in 2025, the overall ownership percentage remains robust, signaling continued commitment to long-term growth according to Seeking Alpha.

This alignment is particularly significant in a REIT like OLP, where management's ability to execute on capital allocation and asset strategies directly impacts performance. The high insider stake reinforces the argument that OLP's leadership is incentivized to drive operational improvements and unlock value, especially as the company pivots toward industrial properties.

Resilient Balance Sheet: Strategic Shift to Industrial Assets

OLP's balance sheet demonstrates resilience despite a challenging macroeconomic environment. As of September 30, 2025, the company reported $802.3 million in total assets and $458.7 million in total debt, with $305.6 million in stockholders' equity and $109.4 million in available liquidity according to Stock Titan. These figures highlight a strong capital structure, supported by a strategic shift toward industrial properties, which now account for 80% of annual base rent (ABR) according to Stock Titan.

The company's 2025 activity further underscores its disciplined approach: $189 million in acquisitions, including a pending $53.5 million industrial portfolio, and $17.7 million in net proceeds from non-core asset sales according to Stock Titan. This reinvestment strategy not only enhances ABR but also diversifies revenue streams, reducing exposure to volatile sectors. While EBITDA figures for Q3 2025 were not disclosed, the reported 102% year-over-year increase in net income and 1.7% growth in adjusted funds from operations (AFFO) according to Stock Titan suggest improving operational efficiency.

Strong Dividend Yield: A Magnet for Income Investors

OLP's dividend yield remains a standout feature, currently trading at 9.42% with an annualized dividend of $1.80 per share according to MarketBeat. This yield, coupled with a consistent quarterly payout of $0.45 per share, positions OLP as a top-tier income stock in a low-yield environment according to MarketBeat. While 2025-specific dividend data is not yet available, the company's focus on industrial properties-known for stable cash flows-provides a solid foundation for sustaining and potentially growing payouts.

The recent Q3 2025 results further support this narrative. Despite missing FFO estimates by $0.01, the company's $0.46 AFFO per share and $23.77 million in revenue (a 7% year-over-year increase) demonstrate its ability to generate cash flow according to Seeking Alpha. For income-focused investors, OLP's combination of a high yield and operational improvements creates a compelling risk-reward profile.

The Case for Undervaluation and Turnaround

OLP's current valuation appears to discount its strategic momentum and balance sheet strength. The company's shift to industrial assets-now 80% of ABR-positions it to benefit from the sector's long-term tailwinds, including e-commerce-driven demand and infrastructure investment. Meanwhile, its high insider ownership and disciplined capital allocation according to Stock Titan suggest a management team capable of navigating near-term challenges.

The dividend yield, while attractive, also reflects market skepticism about OLP's ability to sustain payouts. However, the recent 1.7% AFFO growth according to Stock Titan and $189 million in acquisitions according to Stock Titan indicate that management is actively enhancing the portfolio's quality and cash flow potential. For investors with a medium-term horizon, OLP's undervaluation relative to its fundamentals presents a compelling entry point.

Conclusion

One Liberty Properties offers a rare trifecta: high insider ownership, a resilient balance sheet, and a strong dividend yield. These factors, combined with a strategic pivot to industrial real estate, create a compelling case for undervaluation and near-term turnaround potential. While risks such as interest rate volatility and sector-specific challenges remain, OLP's operational execution and capital discipline position it as a standout opportunity in the REIT space.