One Liberty Properties, Inc. Announces Results of Operations for the Quarter and Nine Months Ended September 30, 2005.

GREAT NECK, N.Y. -- One Liberty Properties, Inc. (NYSE: OLP) today announced that it had rental income for the three months ended September 30, 2005 of $7,107,000 and net income of $1,729,000, or $.18 per share on a diluted basis. Net income for the quarter ended September 30, 2005 includes a $524,000 loss in equity in earnings of unconsolidated joint ventures and income from discontinued operations of $566,000. This compares with rental income, net income and net income per share on a diluted basis of $5,550,000, $2,499,000, and $.26 per share, respectively, for the three months ended September 30, 2004. Net income for the three months ended September 30, 2004 includes equity in earnings of unconsolidated joint ventures of $669,000, income from discontinued operations of $384,000 and a $73,000 gain on sale of real estate. The weighted average number of common shares outstanding on a diluted basis was 9,857,000 and 9,762,000 for the three months ended September 30, 2005 and September 30, 2004, respectively.

The Company also reported rental income of $20,900,000 and net income of $17,736,000, or $1.80 per share on a diluted basis, for the nine months ended September 30, 2005. Net income for the nine months ended September 30, 2005 includes a gain on sale of air rights of $10,248,000 ($1.04 per share), equity in earnings of unconsolidated joint ventures of $1,327,000 and income from discontinued operations of $816,000. This compares with rental income, net income and net income per share on a diluted basis of $15,666,000, $6,965,000, and $.72 per share, respectively, for the nine months ended September 30, 2004. Net income for the nine months ended September 30, 2004 includes equity in earnings of unconsolidated joint ventures of $1,639,000 and income from discontinued operations of $1,401,000. The weighted average number of common shares outstanding on a diluted basis was 9,835,000 and 9,729,000 for the nine months ended September 30, 2005 and September 30, 2004, respectively.

One Liberty also reported funds from operations for the three months ended September 30, 2005 of $2,877,000, compared to $3,880,000 for the three months ended September 30, 2004. Funds from operations for the nine months ended September 30, 2005 was $21,887,000 compared to $11,038,000 for the nine months ended September 30, 2004. Funds from operations, calculated in accordance with the NAREIT definition, adds back to net income depreciation of properties, One Liberty's share of depreciation in unconsolidated joint ventures and amortization of capitalized leasing expenses, and deducts from net income net gain on property sales. In accordance with the NAREIT definition, funds from operations reported by One Liberty for the September 30, 2005 nine month period include the $10,248,000 gain ($1.04 per share) recognized by One Liberty on the sale of air rights, which One Liberty has deferred for tax purposes because it entered into a 1031 tax deferred exchange and used the sale proceeds to acquire a new property.

Commenting on the results of operations and the funds from operations, Fredric H. Gould, President and Chief Executive Officer of One Liberty, noted that rental income increased by $1,557,000, or 28%, quarter over quarter, and by $5,234,000, or 33%, nine months over nine months due primarily to thirteen property acquisitions between March 2004 and September 2005.

On the expense side, total operating expenses increased by $885,000, or 43%, quarter over quarter, and $2,140,000, or 38%, nine months over nine months, due primarily to an increase in depreciation and amortization as a result of the ownership of additional properties and an increase in general and administrative expenses, offset in part by a decrease in real estate expenses. Mr. Gould noted that general and administrative expenses increased by $546,000, or 68%, quarter versus quarter, and $797,000, or 33%, nine months versus nine months and that 98% of the quarterly increase and 67% of the nine month increase is due to fees incurred in the investigation and related activities involving the financial dealings of the Company's former President and Chief Executive Officer who resigned July 20, 2005. Other factors contributing to the increase in expenses include an increase in executive and support personnel and an increase in professional fees resulting in part from compliance with Sarbanes-Oxley, offset in part by a reduction in payroll and payroll related expenses due to the resignation of the Company's former President and Chief Executive Officer.

Commenting further, Mr. Gould noted that One Liberty's equity in earnings of unconsolidated joint ventures decreased by $1.2 million quarter versus quarter, which resulted in a loss of $524,000 in the quarter ended September 30, 2005, and decreased by $312,000, nine months versus nine months, to $1.3 million. The decreases in the 2005 three month and nine month periods resulted from a $2.56 million provision for valuation adjustment of real estate taken by one of the Company's movie theater joint ventures against one of its five properties, of which $1.3 million is the Company's equity share. The joint venture was funding the construction of a six screen movie theater at this property pursuant to a lease agreement with its former tenant. The Company ceased construction when the lease with the former tenant/operator of the facility was terminated in September 2004 by mutual consent. Mr. Gould noted that the joint venture has been seeking a tenant and exploring alternative uses for this property. Taking into consideration a recently completed independent third party appraisal and an engineering report which valued the construction completed to date at the property, the joint venture determined to take the write down. The Company's equity share of the write down was offset in part by the Company's equity share of income earned by two joint ventures organized in the second half of 2004.

Interest expense increased by $451,000, or 22%, and $1,532,000, or 26%, quarter over quarter and nine months versus nine months, respectively, as a result of an increase in interest on mortgages payable resulting from mortgages placed on ten properties between September 2004 and June 2005, the assumption of mortgages in connection with the purchase of two properties and an increase in interest on the line of credit in connection with borrowings made to facilitate property purchases.

Mr. Gould commented that the Company's business continues to grow, as evidenced by the growth in its rental income quarter over quarter and nine months over nine months. He noted that the Company is continuing its acquisition activities and is diligently seeking to expand its portfolio of net leased properties. Mr. Gould stated that the Company's new President, Patrick J. Callan, Jr., currently a director of the Company, will join the Company on January 3, 2006 and that he is looking forward to working with him to continue to grow and enhance the Company's property portfolio.

One Liberty Properties is a real estate investment trust and invests primarily in improved commercial real estate under long term net lease.

Certain information contained in this press release, including information with respect to factors which may improve our future results of operations and future acquisitions, together with other statements and information publicly disseminated by One Liberty Properties, Inc. is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. We intend such forward looking statements to be covered by the safe harbor provision for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for the purpose of complying with these safe harbor provisions. Information regarding certain important factors that could cause actual outcomes or other events to differ materially from any such forward looking statements will appear in the Company's Form 10-K for the year ended December 31, 2004. You should not rely on forward looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements.

ONE LIBERTY PROPERTIES, INC. (NYSE: OLP)
             (Amounts in Thousands, Except Per Share Data)

                             Three Months Ended     Nine Months Ended
                               September 30,         September 30,
                              2005       2004       2005       2004
                           ---------- ---------- ---------- ----------
Revenues
 Rental income - Note 1    $   7,107  $   5,550  $  20,900  $  15,666
                           ---------- ---------- ---------- ----------

Operating expenses:
 Depreciation and
  amortization                 1,403      1,032      4,119      2,913
 General and
  administrative               1,347        801      3,199      2,402
 Real estate expenses            103        170        285        337
 Leasehold rent                   77         42        231         42
                           ---------- ---------- ---------- ----------
 Total operating expenses      2,930      2,045      7,834      5,694
                           ---------- ---------- ---------- ----------

 Operating income              4,177      3,505     13,066      9,972

Other income and expenses:
 Equity in earnings of
  unconsolidated joint
  ventures                      (524)       669      1,327      1,639
 Interest and other income       150         71        230        225
 Interest:
  Expense                     (2,505)    (2,054)    (7,529)    (5,997)
  Amortization of deferred
   financing costs              (135)      (149)      (421)      (349)
Gain on sale of air rights         -          -     10,248          -
Gain on sale of real
 estate                            -         73          -         73
(Loss) gain on sale
 available-for-sale
 securities                        -          -         (1)         1
                           ---------- ---------- ---------- ----------

Income from continuing
 operations                    1,163      2,115     16,920      5,564

Discontinued operations:
 (Loss) income from
  operations                     (65)       384       (405)     1,401
 Net gain on sale                631          -      1,221          -
                           ---------- ---------- ---------- ----------
Income from discontinued
 operations                      566        384        816      1,401
                           ---------- ---------- ---------- ----------

Net income                 $   1,729  $   2,499  $  17,736  $   6,965
                           ========== ========== ========== ==========

Net income per common
 share (basic and
 diluted):
 Income from continuing
  operations               $     .12  $     .22  $    1.72  $     .57
 Income from discontinued
  operations                     .06        .04        .08        .15
                           ---------- ---------- ---------- ----------
 Net income per common
  share                    $     .18  $    .26$       1.80  $     .72
                           ========== ========== ========== ==========

Funds from operations *    $   2,877  $   3,880  $  21,887  $  11,038
                           ========== ========== ========== ==========

Funds from operations per
 common share-diluted**    $     .29  $     .40  $    2.23  $    1.13
                           ========== ========== ========== ==========

Weighted average number of
 common shares
 outstanding:

 Basic                         9,852      9,749      9,830      9,711
                           ========== ========== ========== ==========
 Diluted                       9,857      9,762      9,835      9,729
                           ========== ========== ========== ==========

Note 1 - Rental income includes straight line rent accruals of
$901 and $380 for the nine and three months ended September 30, 2005
and $645 and $229 for the nine and three months ended September 30,
2004, respectively.



* Funds from operations is summarized in the following table:

Net income (a)             $   1,729  $   2,499  $17,736(b) $   6,965
 Add: depreciation of
  properties                   1,442      1,173      4,361      3,334
 Add:  our share of
  depreciation in
  unconsolidated joint
  ventures                       319        268        957        772
Add: amortization of
 capitalized leasing
 expenses                         18         13         54         40
 Deduct:  net gain on sale
  of real estate                (631)       (73)    (1,221)       (73)
                           ---------- ---------- ---------- ----------
 Funds from operations (a) $   2,877  $   3,880  $21,887(b) $  11,038
                           ========== ========== ========== ==========

** Funds from operations per common share is summarized in the
following table:

 Net income (a)            $     .18  $     .26  $  1.80(b) $     .72
 Add:  depreciation of
  properties                     .14        .12        .44        .34
 Add:  our share of
  depreciation in
  unconsolidated joint
  ventures                       .03        .03        .10        .08
 Add:  amortization of
  capitalized leasing
  expenses                         -          -        .01          -
 Deduct:  net gain on sale
  of real estate                (.06)      (.01)      (.12)      (.01)
                           ---------- ---------- ---------- ----------
 Funds from operations per
  common share (a)         $     .29  $     .40  $ 2.23 (b) $    1.13
                           ========== ========== ========== ==========



(a) We believe that FFO is a useful and a standard supplemental
    measure of the operating performance for equity REITs and is used
    frequently by securities analysts, investors and other interested
    parties in evaluating equity REITs, many of which present FFO when
    reporting their operating results. FFO is intended to exclude GAAP
    historical cost depreciation and amortization of real estate
    assets, which assures that the value of real estate assets
    diminish predictability over time. In fact, real estate values
    have historically risen and fallen with market conditions. As a
    result, we believe that FFO provides a performance measure that
    when compared year over year, should reflect the impact to
    operations from trends in occupancy rates, rental rates, operating
    costs, interest costs and other matters without the inclusion of
    depreciation and amortization, providing a perspective that may
    not be necessarily apparent from net income. We also consider FFO
    to be useful to us in evaluating potential property acquisitions.

    FFO does not represent net income or cash flows from operations as
    defined by GAAP. You should not consider FFO to be an alternative
    to net income as a reliable measure of our operating performance;
    nor should you consider FFO to be an alternative to cash flows
    from operating, investing or financing activities (as defined by
    GAAP) as measures of liquidity.

    FFO does not measure whether cash flow is sufficient to fund all
    of our cash needs, including principal amortization, capital
    improvements and distributions to stockholders. FFO does not
    represent cash flows from operating, investing or financing
    activities as defined by GAAP.

(b) Includes net gain on sale of air rights of $10,248, or $1.04 per
    share for the nine months ended September 30, 2005.