One Liberty Properties 3rd-qtr FFO up 22 percent

One Liberty Properties Inc. on Friday said its third-quarter funds from operations rose 22 percent as rental income rose.

The real estate investment trust, which focuses on commercial properties, said funds from operations rose to $5.7 million, or 51 cents per share, compared with $4.7 million, or 42 cents per share a year ago.

FFO, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other non-operating items, to net income.

Revenue rose 9.7 percent to $9.6 million from $8.7 million in the year-ago period.

Net income rose 39 percent to $3.4 million, or 31 cents per share, from $2.5 million, or 22 cents per share, last year.

The results reflected an $897,000 million gain on the transfer of five former Circuit City properties to the holder of the mortgages on them.

The company "continues to have concerns about the economy, particularly the retail segment," said President and CEO Patrick J. Callan Jr. in a statement. "We are hopeful, however, that business is starting to stabilize and we look forward to 2010 with cautious optimism."

One Liberty Properties shares closed unchanged Friday at $8.35.