SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

[X]               Quarterly Report Pursuant to Section 13 or 15(d) of the
                                   Securities Exchange Act of 1934

                  For the quarterly period ended September 30, 1998

                                      OR

[  ]              Transition Report Pursuant to Section 13 or 15(d) of the
                            Securities Exchange Act of 1934

                            Commission File Number 0-11083

                              ONE LIBERTY PROPERTIES, INC.

               (Exact name of registrant as specified in its charter)

                  MARYLAND                            13-3147497
             ----------------------------------------------------
            (State or other jurisdiction of      (I.R.S. Employer
             incorporation or organization) Identification Number)

             60 Cutter Mill Road, Great Neck, New York             11021
             ------------------------------------------------------------
             (Address of principal executive offices)          (Zip Code)

      Registrant's telephone number, including area code:     (516)  466-3100

           Indicate  the  number  of  shares  outstanding  of each of the
           issuer's classes of stock, as of the latest practicable date.

           As of November 1, 1998, the Registrant had 2,940,201 shares of
           Common  Stock and  808,776  shares of  Redeemable  Convertible
           Preferred Stock outstanding.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.
         
                                Yes   X           No
                                    ------           -----

<PAGE>
<TABLE>
<CAPTION>


Part I - FINANCIAL INFORMATION

Item 1.    Financial Statements

                    ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS

                                                                           September 30,          December 31,
                                                                              1998                   1997
                                                                              ----                   ----
                                                                           (Unaudited)
<S>                                                                        <C>                   <C>    

Assets
   Real estate investments, at cost
      Land                                                                 $14,602,205           $12,210,147
     Buildings                                                              48,359,301            38,641,419
                                                                            ----------            ----------
                                                                            62,961,506            50,851,566
           Less accumulated depreciation                                    (3,401,903)           (2,534,582)
                                                                            ----------           -----------
                                                                            59,559,603            48,316,984
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related party in 1997)                                                 268,332             5,943,450
   Cash and cash equivalents                                                18,989,773             1,606,364
   Unbilled rent receivable                                                  1,034,633               665,052
   Rent, interest, deposits and
        other receivables                                                      751,330               300,584
   Investment in BRT Realty Trust-
        (related party)                                                        176,532               240,384
   Deferred financing costs                                                    730,060               510,123
   Other                                                                       480,643                64,614
                                                                               -------               -------

           Total assets                                                    $81,990,906           $57,647,555
                                                                           ===========           ===========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                                                  $29,527,096           $20,545,247
        Note payable-bank                                                            -             4,605,029
        Accrued expenses and other liabilities                                 419,312               394,459
        Dividends payable                                                    1,203,573               791,945
                                                                           -----------           -----------

           Total liabilities                                                31,149,981            26,336,680
                                                                            ----------            ----------

Commitments and contingencies                                                        -                     -

Minority interest in subsidiary                                                  2,676                     -
                                                                           -----------          ------------

Redeemable convertible  preferred stock, $1 par value;
  $1.60 cumulative annual dividend; 2,300,000 shares
  authorized; 808,776 shares issued; liquidation
  and redemption values of $16.50                                           13,225,338            13,106,970
                                                                            ----------            ----------

   Stockholders' equity:
        Common stock, $1 par value;
         25,000,000 shares authorized;
         2,933,544 and 1,561,450
         shares issued and outstanding                                       2,933,544             1,561,450
        Paid-in capital                                                     30,934,838            14,419,609
        Accumulated other comprehensive
           income-net unrealized gain on
           available-for-sale securities                                       107,740               146,706
        Accumulated undistributed net income                                 3,636,789             2,076,140
                                                                            ----------            ----------

           Total stockholders' equity                                       37,612,911            18,203,905
                                                                            ----------            ----------

           Total liabilities and stockholders' equity                      $81,990,906           $57,647,555
                                                                           ===========           ===========

          See accompanying notes to consolidated financial statements.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

                                                                 Three Months Ended                 Nine Months Ended
                                                                    September 30,                      September 30,
                                                                --------------------                ---------------
                                                               1998               1997               1998           1997
                                                               ----               ----               ----           ----
<S>                                                       <C>                 <C>               <C>               <C>    

Revenues:
   Rental income                                          $ 1,897,958         $ 1,267,217       $ 5,165,813       $ 3,949,729
   Interest from related party (Note 5)                     2,250,459             207,596         2,660,314           625,996
   Interest and other income                                  129,069              17,703           177,910            50,150
                                                        -------------       -------------      ------------     --------------
                                                            4,277,486           1,492,516         8,004,037         4,625,875
                                                         ------------         -----------       -----------       ------------
Expenses:
   Depreciation and amortization                              368,827             252,476         1,006,949           754,580
   Interest - mortgages payable                               560,703             368,788         1,499,120         1,157,027
   Interest - bank                                                  -              25,635           257,913            96,771
   Leasehold rent                                              72,208              72,208           216,625           216,625
   General and administrative                                 168,300             150,119           498,615           484,019
   Provision for valuation
     adjustment of real estate                                156,832                   -           156,832                 -
                                                        -------------         -----------        ----------      ------------
                                                            1,326,870             869,226         3,636,054         2,709,022
                                                         ------------         -----------       -----------        ----------

Income before gain on sale of
 real estate and minority interest                          2,950,616             623,290         4,367,983         1,916,853
Gain on sale of real estate including
 minority interest share of $215,336                                -             599,251                -            599,251
                                                        -------------         -----------       ------------      -----------
Income before minority interest                             2,950,616           1,222,541         4,367,983         2,516,104

Minority interest                                              (4,032)           (217,532)           (8,076)         (230,839)
                                                        -------------         -----------       ------------       -----------

Net income                                               $  2,946,584         $ 1,005,009       $ 4,359,907       $ 2,285,265
                                                         ============         ===========       ===========       ===========

Calculation of net income applicable to common stockholders:
Net income                                               $  2,946,584        $  1,005,009       $ 4,359,907       $ 2,285,265
Less: dividends and accretion
   on preferred stock                                         363,085             362,613         1,088,899         1,087,488
                                                         ------------       -------------      ------------       ------------

Net income applicable to
   common stockholders                                   $  2,583,499       $     642,396      $  3,271,008       $ 1,197,777
                                                         ============       =============      ============       ===========

Weighted average number of common shares outstanding (Note 2):
     Basic                                                  2,933,544           1,535,982         2,080,601         1,511,042
                                                         ============        ============      ============       ===========
     Diluted                                                3,600,784           1,540,139         2,081,548         1,518,416
                                                         ============        ============       ============      ===========

Net income per common share (Note 2):
     Basic                                               $        .88       $         .42      $       1.57       $       .79
                                                         ============       =============      ============       ===========
     Diluted                                             $        .82       $         .42      $       1.57       $       .79
                                                         ============       =============      ============       ===========

Cash distributions per share:
   Common Stock                                          $        .30       $         .30      $        .90       $       .90
                                                         ============       =============      ============       ===========
   Preferred Stock                                       $        .40       $         .40      $       1.20       $      1.20
                                                         ============       =============      ============       ===========

           See accompanying notes to consolidated financial statements.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>


                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

               For the nine month period ended September 30, 1998
                      and the year ended December 31, 1997
                                   (Unaudited)

                                                              Accumulated
                                                                 Other          Accumulated
                                  Common        Paid-in      Comprehensive     Undistributed
                                  Stock         Capital          Income          Net Income           Total
                                  -----         -------          ------          ----------           -----
<S>                            <C>             <C>              <C>              <C>               <C> 

Balances,
   January 1, 1997             $1,473,642      $13,650,737      $   97,673       $2,220,789        $17,442,841

Net income                              -                -               -        2,984,192          2,984,192
Distributions -
   common stock                         -                -               -       (1,834,799)        (1,834,799)
Distributions -
   preferred stock                      -                -               -       (1,294,042)        (1,294,042)
Accretion on
   preferred stock                      -         (156,178)              -                -           (156,178)
Exercise of options                29,000          235,625               -                -            264,625
Shares issued through
   dividend reinvestment
   plan                            58,808          689,425               -                -            748,233
Net unrealized gain
   on available-for-sale
   securities                           -                -          49,033                -             49,033
                              -----------      -----------      ----------      -----------         ----------

Balances,
   December 31, 1997            1,561,450       14,419,609         146,706        2,076,140         18,203,905
Net income                              -                -               -        4,359,907          4,359,907
Distributions -
   common stock                         -                -               -       (1,828,727)        (1,828,727)
Distributions -
   preferred stock                      -                -               -         (970,531)          (970,531)
Accretion on
   preferred stock                      -         (118,368)              -                -           (118,368)
Shares issued through
   rights offering              1,331,733       16,139,254               -                -         17,470,987
Shares issued through
   dividend reinvestment
   plan                            40,361          494,343               -                -            534,704
Net unrealized loss
   on available-for-sale
   securities                           -                -         (38,966)               -            (38,966)
                              -----------       ----------      -----------     -----------          ----------     

Balances,
   September 30, 1998          $2,933,544      $30,934,838      $   107,740     $ 3,636,789        $37,612,911
                               ==========      ===========      ===========     ===========        ===========

        See accompanying notes to consolidated financial statements.

</TABLE>

<PAGE>
<TABLE>
<CAPTION>


                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                                                    Nine Months Ended
                                                                                                       September 30,
                                                                                                1998                 1997
                                                                                                ----                 ----
<S>                                                                                        <C>                  <C> 

Cash flows from operating activities:
   Net income                                                                              $ 4,359,907          $ 2,285,265
   Adjustments to reconcile net income
     to net cash provided by operating activities:
    Gain on sale of real estate                                                                      -             (599,251)
   (Increase) in rental income from straight-lining of rent                                   (369,581)            (258,575)
   Provision for valuation adjustment                                                          156,832                    -
   Depreciation and amortization                                                             1,006,949              754,580
   Minority interest in earnings of subsidiary                                                   8,076              230,839
   Changes in assets and liabilities:
   (Increase) in rent, interest,
     deposits and other receivables                                                           (495,286)            (259,523)
   Increase (decrease) in accrued expenses and other liabilities                                24,853               (5,756)
                                                                                         -------------        ---------------

           Net cash provided by operating activities                                         4,691,750             2,147,579
                                                                                          ------------          ------------

Cash flows from investing activities:
   Additions to real estate                                                                (12,266,772)           (2,832,231)
   Net proceeds from sale of real estate                                                             -             4,347,603
   Collection of mortgages receivable -
     (including $5,653,413 and $86,466
      from related party)                                                                    5,675,118               106,895
   Purchase of marketable securities                                                          (346,603)                    -
   Payments to minority interest by subsidiary                                                  (5,400)             (396,333)
   Other                                                                                             -                54,332
                                                                                         -------------           -----------

           Net cash (used in) provided by investing activities                              (6,943,657)            1,280,266
                                                                                          -------------         ------------

Cash flows from financing activities:
   Proceeds from mortgages payable                                                           9,236,178             1,600,000
   Repayment of mortgages payable                                                             (254,329)           (2,163,398)
   Repayment of bank borrowings, net of proceeds                                            (4,605,029)           (1,900,000)
   Payment of financing costs                                                                 (359,565)              (89,088)
   Cash distributions - common stock                                                        (1,417,099)           (1,345,163)
   Cash distributions - preferred stock                                                       (970,531)             (970,531)
   Proceeds from issuance of shares through rights offering                                 17,470,987                     -
   Issuance of shares through dividend reinvestment plan                                       534,704               572,946
   Exercise of stock options                                                                         -               232,688
                                                                                           -----------          -------------
           Net cash provided by (used in) financing activities                              19,635,316            (4,062,546)
                                                                                           -----------          -------------

           Net increase (decrease) in cash
               and cash equivalents                                                         17,383,409              (634,701)

Cash and cash equivalents at beginning of period                                             1,606,364             2,478,580
                                                                                          ------------          ------------

Cash and cash equivalents at end of period                                                 $18,989,773           $ 1,843,879
                                                                                           ===========           ===========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                                        $ 1,855,971          $  1,272,646
   Cash paid during the period for income taxes                                                 20,429                17,035


   See accompanying notes to consolidated financial statements.

</TABLE>


<PAGE>



                  One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements


Note 1 - Basis of Preparation

The  accompanying  interim  unaudited  consolidated  financial  statements as of
September  30, 1998 and for the nine and three months ended  September  30, 1998
and 1997 reflect all normal,  recurring adjustments which are, in the opinion of
management,  necessary for a fair  presentation  of the results for such interim
periods. The results of operations for the nine and three months ended September
30, 1998 are not necessarily indicative of the results for the full year.

The  consolidated  financial  statements  include  the  accounts  of One Liberty
Properties,  Inc., its wholly-owned  subsidiaries  and a majority-owned  limited
liability  company.  Material  intercompany  items  and  transactions  have been
eliminated.  One Liberty  Properties,  Inc.,  its  subsidiaries  and the limited
liability company are hereinafter referred to as the "Company".

Certain amounts reported in previous consolidated financial statements have been
reclassified in the accompanying consolidated financial statements to conform to
the current year's presentation.

These statements  should be read in conjunction with the consolidated  financial
statements  and related notes which are included in the Company's  Annual Report
on Form 10-K for the year ended December 31, 1997.


Note 2 - Earnings Per Common Share

     In 1997, the Financial Accounting Standards Board issued Statement No. 128,
Earnings Per Share.  Statement No. 128 replaced the  calculation  of primary and
fully  diluted  earnings  per share with basic and diluted  earnings  per share.
Unlike  primary  earnings  per share,  basic  earnings  per share  excludes  any
dilutive  effects of  options,  warrants  and  convertible  securities.  Diluted
earnings  per share is very similar to the  previously  reported  fully  diluted
earnings per share.  All  earnings  per share  amounts for all periods have been
presented,  and where appropriate,  restated to conform to the Statement No. 128
requirements.

For the nine and three month  periods  ended  September  30, 1998 and 1997 basic
earnings per share was  determined  by dividing net income  applicable to common
stockholders  for the period by the weighted  average number of shares of Common
Stock outstanding during each period.



<PAGE>



                  One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 2 - Earnings Per Common Share (Continued)

Diluted  earnings per share reflects the potential  dilution that could occur if
securities or other  contracts to issue Common Stock were exercised or converted
into Common  Stock or resulted in the  issuance of Common Stock that then shared
in the earnings of the Company.  For the nine month periods ended  September 30,
1998 and 1997 and the three month  period  ended  September  30,  1997,  diluted
earnings per share was  determined  by dividing net income  applicable to common
stockholders  for the  period by the  total of the  weighted  average  number of
shares of Common Stock  outstanding  plus the dilutive  effect of the  Company's
outstanding  options (947 for the nine months ended September 1998 and 7,374 and
4,157 for the nine and three months ended  September 1997,  respectively)  using
the treasury  stock  method.  The  Preferred  Stock was not  considered  for the
purpose of computing  diluted  earnings per share during these  periods  because
their assumed  conversion is antidilutive.  However,  for the three months ended
September 30, 1998, the assumed  conversion of the Preferred  Stock is dilutive.
Thus, for the three months ended September 30, 1998,  diluted earnings per share
was  determined  by  dividing  net  income  for the  period  by the total of the
weighted average number of Common Stock  outstanding plus the dilutive effect of
the Company's Preferred Stock using the if-converted method.

In  addition,  options to purchase  40,000  shares of Common Stock at $14.50 per
share  (which  were  granted  during  March  1998)  were  not  included  in  the
computation  of diluted  earnings per share because the exercise  price of these
options is greater  than the  average  market  price of the common  shares  and,
therefore, the effect would be antidilutive.

Note 3 - Preferred and Common Stock Dividend Distributions

On August 28, 1998 the Board of Directors  declared quarterly cash distributions
of $.30  and $.40  per  share  on the  Company's  common  and  preferred  stock,
respectively,  payable on October 1, 1998 to stockholders of record on September
15, 1998.

Note 4 - Rights Offering

On June 22, 1998,  the Company sold  1,331,733  shares of Common Stock at $13.25
per share in a rights offering to its  shareholders.  Pursuant to a Registration
Statement filed with the Securities and Exchange Commission on February 10, 1998
and declared  effective on March 31, 1998 the Company  issued to each common and
preferred  stockholder of record as of March 24, 1998, one nontransferable right
for each common and/or  preferred share owned of record  entitling the holder to
purchase one share of Common Stock for a price of $13.25 per share. In addition,
each  common  and  preferred   stockholder   was  afforded  the  opportunity  to
over-subscribe  to the extent of two  additional  shares,  but, in order for the
over-subscription  privilege to come into effect a  stockholder  must have fully
exercised the basic subscription privilege. The offer expired on June 15, 1998.


<PAGE>


                  One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 5 - Interest from Related Party

On  September  16,  1998,  the  Company  received a payoff in full of a mortgage
receivable encumbering a property owned by a related party. The principal amount
paid off and received by the Company was $7,582,000. The mortgage receivable was
acquired  during  fiscal  1993 at a  discount  of  $3,738,400  which  was  being
amortized over the life of the mortgage. The Company realized interest income on
this  transaction in the amount of $2,080,918,  which represents the unamortized
balance of the discount.  Such amount is included in interest from related party
in the accompanying consolidated financial statements.

Note 6 - Financial Accounting Standards Board Statement No. 130

In June 1997, the Financial Accounting Standards Board issued Statement No. 130,
Reporting  Comprehensive  Income,  which is effective for fiscal years beginning
after December 15, 1997.  Statement No. 130 establishes  standards for reporting
comprehensive  income  and  its  components  in a full  set  of  general-purpose
financial statements and requires that all components of comprehensive income be
reported in a financial  statement that is displayed with the same prominence as
other financial statements.  The Company adopted Statement No. 130 as of January
1, 1998. At September 30, 1998, accumulated other comprehensive income, which is
solely comprised of the net unrealized gain on available-for-sale securities was
$107,740.

Note 7 - Financial Accounting Standards Board Statement No. 131

In June 1997, the Financial Accounting Standards Board issued Statement No. 131,
Disclosures  About Segments of an Enterprise and Related  Information,  which is
effective for financial statements issued for years beginning after December 15,
1997.  Statement No. 131 establishes  standards for the way that public business
enterprises  report  information  about operating  segments in annual  financial
statements and requires that those enterprises report selected information about
operating segments in interim financial reports.  It also establishes  standards
for related disclosures about products and services, geographic areas, and major
customers.  Statement No. 131 is effective for financial  statements  for fiscal
years  beginning  after  December 15, 1997, and therefore the Company will adopt
the new  requirements  retroactively  in 1998.  Management has not completed its
review of Statement No. 131, but does not  anticipate  that the adoption of this
statement will have a significant effect on the Company's reported segments.

Note 8 - Subsequent Event

On  October  30,  1998,  the  Company  sold a  property  located in the State of
Washington  for a  sales  price  of  $1,500,000  and  will  recognize  a gain of
approximately $1,200,000 during the December 1998 quarter. In addition, a second
mortgage receivable the Company held on the property was paid off as part of the
sale. At September 30, 1998, the outstanding balance of this mortgage receivable
was $36,600.
<PAGE>
Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations

Liquidity and Capital Resources

At  September  30,  1998,  the  Company's   primary  sources  of  liquidity  are
approximately  $18,990,000  in cash and cash  equivalents,  and funds  available
under a revolving credit facility (of which the entire  $9,000,000  facility was
available at September 30, 1998).  Other sources of liquidity are cash generated
from operating  activities and funds  obtainable from mortgages to be secured by
real estate investments.

On June 22, 1998,  the Company sold  1,331,733  shares of Common Stock at $13.25
per  share  in a  rights  offering  to its  shareholders.  The net  proceeds  of
approximately  $17,470,000  (after  expenses)  was used to repay the  $6,985,000
outstanding  under the revolving  credit  facility and the balance is to be used
for  the  acquisition  of  additional  properties.  The  Company  purchased  two
properties during the last week of June 1998. The purchase price of one property
was  $1,970,000,  which  was paid in cash at the  closing.  A  $1,285,000  first
mortgage  loan  secured by the property  was  obtained in  September  1998.  The
purchase price of the other property was $3,525,000, which was paid in part by a
$2,450,000  first mortgage loan secured by the property and the balance in cash.
On October 2, 1998, the Company purchased an additional  property for a purchase
price of $900,000  which was paid in cash. On October 30, 1998, the Company sold
a property  located in the State of  Washington  for a sales price of $1,500,000
and will recognize a gain of approximately  $1,200,000  during the December 1998
quarter.

In March,  1996 the Company entered into a $5 million revolving credit agreement
("Credit  Agreement")  with Bank Leumi Trust Company of New York ("Bank Leumi").
Under the terms of the Credit Agreement the Company could add additional lenders
to provide a maximum total  facility of  $15,000,000.  In June 1997, the Company
closed on a $4,000,000  participation  interest with Commercial Bank of New York
(formerly  First  Bank  of the  Americas),  increasing  the  total  facility  to
$9,000,000.  Borrowings  under the Credit  Agreement  provides  the Company with
funds,  when needed,  to acquire  additional  properties.  The Credit  Agreement
matures  February  28,  1999 with a right for the  Company  to extend the Credit
Agreement until February 29, 2000.

The Company is currently in various stages of negotiation for the acquisition of
additional  net  leased  properties.  Cash  provided  from  operations  and  the
Company's   cash  position  will  provide  funds  for  cash   distributions   to
stockholders  and operating  expenses.  These sources of funds,  funds available
under the Credit  Agreement,  and funds  derived from mortgage  financings  will
provide funds for additional property  acquisitions.  It will continue to be the
Company's policy to make sufficient cash  distributions to stockholders in order
for the Company to maintain  its real estate  investment  trust status under the
Internal Revenue Code.


<PAGE>



In connection  with the lease  agreements  with Total  Petroleum,  Inc.  ("Total
Petroleum")  consummated  in 1991, the Company agreed to expend certain funds to
remediate  environmental  problems  at  certain  locations  net  leased to Total
Petroleum.  It was  agreed  that the net cost to the  Company  would not  exceed
$350,000  per  location,  with any  excess  being  the  responsibility  of Total
Petroleum.  At that time the Company  deposited  $2,000,000  with an independent
escrow  agent to insure  compliance  by the Company  with its  obligations  with
respect to the  environmental  clean up. At September  30,  1998,  there are two
locations which require additional remediation efforts. The Company believes the
$791,000  held by the  escrow  agent  will be  adequate  to cover the  Company's
responsibility to pay for the environmental costs at these two locations.

There will be no effect on the  Company's  liquidity  relating  to the year 2000
issue because during 1997 the Company acquired computer hardware and software to
handle  the  Company's  accounting  and real  estate  management.  The  computer
software  is  capable  of  handling  all  issues  relating  to  the  year  2000.
Non-compliance  with the year 2000 issue by third  parties or tenants  with whom
the  Company  has a relation  will not have a material  effect on the  Company's
business, financial condition or results of operations.


<PAGE>




Results of Operations

Nine and three months ended September 30, 1998 and 1997

Rental income  increased by $1,216,084 and $630,741 to $5,165,813 and $1,897,958
for the nine and three  months  ended  September  30, 1998 from  $3,949,729  and
$1,267,217  for the nine and three months  ended  September  30, 1997  resulting
primarily from the acquisition of three properties in 1998 and two properties in
1997, offset in part by the sale of a property during 1997.

On  September  16,  1998,  the  Company  received a payoff in full of a mortgage
receivable,  which had  previously  been  acquired  at a  discount.  Included in
interest from related party for the 1998 periods is $2,080,918, which represents
the unamortized balance of the discount.

Interest  and other  income  increased  by $127,760 and $111,366 to $177,910 and
$129,069,  due to an  increase  in  cash  and  cash  equivalents  available  for
investment.  Such investments were made primarily from the proceeds  realized by
the Company from the sale of common shares through the rights offering.

Increases in depreciation and amortization  expense of $252,369 and $116,351 for
the nine and three months ended  September 30, 1998 to  $1,006,949  and $368,827
results primarily from depreciation on five properties  acquired during 1998 and
1997, offset in part by the sale of one property during 1997.

The increases in  interest-mortgages  payable to $1,499,120 and $560,703 for the
nine and three months ended  September 30, 1998 from  $1,157,027 and $368,788 in
the prior nine and three month periods is due to mortgages placed on four of the
properties  acquired  during  1998 and  1997,  offset in part by the sale of one
property during 1997.

Interest-bank  note  payable  amounted  to $257,913  for the nine  months  ended
September  30,  1998,  resulting  from  borrowings  under the Credit  Agreement.
Borrowings  were made to facilitate the purchase of one property in 1998 and two
properties in 1997. The $6,985,000  outstanding note balance was repaid June 22,
1998 with a portion of the  proceeds  realized by the  Company  from the sale of
common shares through the rights offering.

General and administrative expenses increased by $14,596 and $18,181 to $498,615
and  $168,300  for  the  nine  and  three  months  ended   September  30,  1998,
respectively.  These increases were due to a combination of factors including an
increase in personnel costs as the Company's level of activities increased.

At September 30, 1998 the Company owns three properties which had been leased to
a retail  chain of stores.  Since the  expiration  of the initial  term of these
leases on December 31, 1996,  two of these  stores have been  re-leased  and one
remains  vacant.  The Company has  determined  that the estimated  fair value of
these properties are lower than their carrying amounts and thus, the Company has
taken a provision for the differences.  The total provision taken on these three
properties  amounts to $156,832.  There was no comparable  provision in the nine
months ended September 30, 1997.

On August 5, 1997,  the property owned by a limited  liability  company in which
the Company was a majority  member was sold and a gain of $599,251  was realized
on the sale. The Company's  share of the gain is $383,915  (after  deducting the
minority  interest share of the gain of $215,336).  There was no comparable gain
in the nine months ended September 30, 1998.



<PAGE>




                                    Part II - Other Information

Item 6. - Exhibits and Reports on Form 8-K

On September 24, 1998,  the Company filed a current  report on Form 8-K with the
Securities and Exchange Commission to report the amendment of certain provisions
of the Company's By-Laws.





<PAGE>



                           ONE LIBERTY PROPERTIES, INC.


                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                             One Liberty Properties, Inc.
                                    (Registrant)






November 13, 1998               /s/ Matthew Gould
 Date                               Matthew Gould
                                    President





November 13, 1998              /s/ David W. Kalish
 Date                              David W. Kalish
                                   Vice President and
                                   Chief Financial Officer
[{"type": "10-Q", "sequence": "1", "description": "FORM 10-Q", "secsgml_size_bytes": 41956}]
{"company-data": {"conformed-name": "ONE LIBERTY PROPERTIES INC", "cik": "0000712770", "assigned-sic": "6798", "irs-number": "133147497", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-09279", "film-number": "98748349"}, "business-address": {"street1": "60 CUTTER MILL RD", "street2": "SUITE 303", "city": "GREAT NECK", "state": "NY", "zip": "11021-3190", "phone": "5164663100"}, "mail-address": {"street1": "60 CUTTER MILL ROAD", "street2": "SUITE 303", "city": "GREAT NECK", "state": "NY", "zip": "11021-3190"}, "former-company": {"former-conformed-name": "ONE LIBERTY FIRESTONE PROPERTIES INC", "date-changed": "19851112"}}
SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

[X]               Quarterly Report Pursuant to Section 13 or 15(d) of the
                                   Securities Exchange Act of 1934

                  For the quarterly period ended September 30, 1998

                                      OR

[  ]              Transition Report Pursuant to Section 13 or 15(d) of the
                            Securities Exchange Act of 1934

                            Commission File Number 0-11083

                              ONE LIBERTY PROPERTIES, INC.

               (Exact name of registrant as specified in its charter)

                  MARYLAND                            13-3147497
             ----------------------------------------------------
            (State or other jurisdiction of      (I.R.S. Employer
             incorporation or organization) Identification Number)

             60 Cutter Mill Road, Great Neck, New York             11021
             ------------------------------------------------------------
             (Address of principal executive offices)          (Zip Code)

      Registrant's telephone number, including area code:     (516)  466-3100

           Indicate  the  number  of  shares  outstanding  of each of the
           issuer's classes of stock, as of the latest practicable date.

           As of November 1, 1998, the Registrant had 2,940,201 shares of
           Common  Stock and  808,776  shares of  Redeemable  Convertible
           Preferred Stock outstanding.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.
         
                                Yes   X           No
                                    ------           -----
Part I - FINANCIAL INFORMATION

Item 1.    Financial Statements

                    ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS

                                                                           September 30,          December 31,
                                                                              1998                   1997
                                                                              ----                   ----
                                                                           (Unaudited)
Assets
   Real estate investments, at cost
      Land                                                                 $14,602,205           $12,210,147
     Buildings                                                              48,359,301            38,641,419
                                                                            ----------            ----------
                                                                            62,961,506            50,851,566
           Less accumulated depreciation                                    (3,401,903)           (2,534,582)
                                                                            ----------           -----------
                                                                            59,559,603            48,316,984
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related party in 1997)                                                 268,332             5,943,450
   Cash and cash equivalents                                                18,989,773             1,606,364
   Unbilled rent receivable                                                  1,034,633               665,052
   Rent, interest, deposits and
        other receivables                                                      751,330               300,584
   Investment in BRT Realty Trust-
        (related party)                                                        176,532               240,384
   Deferred financing costs                                                    730,060               510,123
   Other                                                                       480,643                64,614
                                                                               -------               -------

           Total assets                                                    $81,990,906           $57,647,555
                                                                           ===========           ===========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                                                  $29,527,096           $20,545,247
        Note payable-bank                                                            -             4,605,029
        Accrued expenses and other liabilities                                 419,312               394,459
        Dividends payable                                                    1,203,573               791,945
                                                                           -----------           -----------

           Total liabilities                                                31,149,981            26,336,680
                                                                            ----------            ----------

Commitments and contingencies                                                        -                     -

Minority interest in subsidiary                                                  2,676                     -
                                                                           -----------          ------------

Redeemable convertible  preferred stock, $1 par value;
  $1.60 cumulative annual dividend; 2,300,000 shares
  authorized; 808,776 shares issued; liquidation
  and redemption values of $16.50                                           13,225,338            13,106,970
                                                                            ----------            ----------

   Stockholders' equity:
        Common stock, $1 par value;
         25,000,000 shares authorized;
         2,933,544 and 1,561,450
         shares issued and outstanding                                       2,933,544             1,561,450
        Paid-in capital                                                     30,934,838            14,419,609
        Accumulated other comprehensive
           income-net unrealized gain on
           available-for-sale securities                                       107,740               146,706
        Accumulated undistributed net income                                 3,636,789             2,076,140
                                                                            ----------            ----------

           Total stockholders' equity                                       37,612,911            18,203,905
                                                                            ----------            ----------

           Total liabilities and stockholders' equity                      $81,990,906           $57,647,555
                                                                           ===========           ===========

          See accompanying notes to consolidated financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)

                                                                 Three Months Ended                 Nine Months Ended
                                                                    September 30,                      September 30,
                                                                --------------------                ---------------
                                                               1998               1997               1998           1997
                                                               ----               ----               ----           ----
Revenues:
   Rental income                                          $ 1,897,958         $ 1,267,217       $ 5,165,813       $ 3,949,729
   Interest from related party (Note 5)                     2,250,459             207,596         2,660,314           625,996
   Interest and other income                                  129,069              17,703           177,910            50,150
                                                        -------------       -------------      ------------     --------------
                                                            4,277,486           1,492,516         8,004,037         4,625,875
                                                         ------------         -----------       -----------       ------------
Expenses:
   Depreciation and amortization                              368,827             252,476         1,006,949           754,580
   Interest - mortgages payable                               560,703             368,788         1,499,120         1,157,027
   Interest - bank                                                  -              25,635           257,913            96,771
   Leasehold rent                                              72,208              72,208           216,625           216,625
   General and administrative                                 168,300             150,119           498,615           484,019
   Provision for valuation
     adjustment of real estate                                156,832                   -           156,832                 -
                                                        -------------         -----------        ----------      ------------
                                                            1,326,870             869,226         3,636,054         2,709,022
                                                         ------------         -----------       -----------        ----------

Income before gain on sale of
 real estate and minority interest                          2,950,616             623,290         4,367,983         1,916,853
Gain on sale of real estate including
 minority interest share of $215,336                                -             599,251                -            599,251
                                                        -------------         -----------       ------------      -----------
Income before minority interest                             2,950,616           1,222,541         4,367,983         2,516,104

Minority interest                                              (4,032)           (217,532)           (8,076)         (230,839)
                                                        -------------         -----------       ------------       -----------

Net income                                               $  2,946,584         $ 1,005,009       $ 4,359,907       $ 2,285,265
                                                         ============         ===========       ===========       ===========

Calculation of net income applicable to common stockholders:
Net income                                               $  2,946,584        $  1,005,009       $ 4,359,907       $ 2,285,265
Less: dividends and accretion
   on preferred stock                                         363,085             362,613         1,088,899         1,087,488
                                                         ------------       -------------      ------------       ------------

Net income applicable to
   common stockholders                                   $  2,583,499       $     642,396      $  3,271,008       $ 1,197,777
                                                         ============       =============      ============       ===========

Weighted average number of common shares outstanding (Note 2):
     Basic                                                  2,933,544           1,535,982         2,080,601         1,511,042
                                                         ============        ============      ============       ===========
     Diluted                                                3,600,784           1,540,139         2,081,548         1,518,416
                                                         ============        ============       ============      ===========

Net income per common share (Note 2):
     Basic                                               $        .88       $         .42      $       1.57       $       .79
                                                         ============       =============      ============       ===========
     Diluted                                             $        .82       $         .42      $       1.57       $       .79
                                                         ============       =============      ============       ===========

Cash distributions per share:
   Common Stock                                          $        .30       $         .30      $        .90       $       .90
                                                         ============       =============      ============       ===========
   Preferred Stock                                       $        .40       $         .40      $       1.20       $      1.20
                                                         ============       =============      ============       ===========

           See accompanying notes to consolidated financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

               For the nine month period ended September 30, 1998
                      and the year ended December 31, 1997
                                   (Unaudited)

                                                              Accumulated
                                                                 Other          Accumulated
                                  Common        Paid-in      Comprehensive     Undistributed
                                  Stock         Capital          Income          Net Income           Total
                                  -----         -------          ------          ----------           -----
Balances,
   January 1, 1997             $1,473,642      $13,650,737      $   97,673       $2,220,789        $17,442,841

Net income                              -                -               -        2,984,192          2,984,192
Distributions -
   common stock                         -                -               -       (1,834,799)        (1,834,799)
Distributions -
   preferred stock                      -                -               -       (1,294,042)        (1,294,042)
Accretion on
   preferred stock                      -         (156,178)              -                -           (156,178)
Exercise of options                29,000          235,625               -                -            264,625
Shares issued through
   dividend reinvestment
   plan                            58,808          689,425               -                -            748,233
Net unrealized gain
   on available-for-sale
   securities                           -                -          49,033                -             49,033
                              -----------      -----------      ----------      -----------         ----------

Balances,
   December 31, 1997            1,561,450       14,419,609         146,706        2,076,140         18,203,905
Net income                              -                -               -        4,359,907          4,359,907
Distributions -
   common stock                         -                -               -       (1,828,727)        (1,828,727)
Distributions -
   preferred stock                      -                -               -         (970,531)          (970,531)
Accretion on
   preferred stock                      -         (118,368)              -                -           (118,368)
Shares issued through
   rights offering              1,331,733       16,139,254               -                -         17,470,987
Shares issued through
   dividend reinvestment
   plan                            40,361          494,343               -                -            534,704
Net unrealized loss
   on available-for-sale
   securities                           -                -         (38,966)               -            (38,966)
                              -----------       ----------      -----------     -----------          ----------     

Balances,
   September 30, 1998          $2,933,544      $30,934,838      $   107,740     $ 3,636,789        $37,612,911
                               ==========      ===========      ===========     ===========        ===========

        See accompanying notes to consolidated financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                                                    Nine Months Ended
                                                                                                       September 30,
                                                                                                1998                 1997
                                                                                                ----                 ----
Cash flows from operating activities:
   Net income                                                                              $ 4,359,907          $ 2,285,265
   Adjustments to reconcile net income
     to net cash provided by operating activities:
    Gain on sale of real estate                                                                      -             (599,251)
   (Increase) in rental income from straight-lining of rent                                   (369,581)            (258,575)
   Provision for valuation adjustment                                                          156,832                    -
   Depreciation and amortization                                                             1,006,949              754,580
   Minority interest in earnings of subsidiary                                                   8,076              230,839
   Changes in assets and liabilities:
   (Increase) in rent, interest,
     deposits and other receivables                                                           (495,286)            (259,523)
   Increase (decrease) in accrued expenses and other liabilities                                24,853               (5,756)
                                                                                         -------------        ---------------

           Net cash provided by operating activities                                         4,691,750             2,147,579
                                                                                          ------------          ------------

Cash flows from investing activities:
   Additions to real estate                                                                (12,266,772)           (2,832,231)
   Net proceeds from sale of real estate                                                             -             4,347,603
   Collection of mortgages receivable -
     (including $5,653,413 and $86,466
      from related party)                                                                    5,675,118               106,895
   Purchase of marketable securities                                                          (346,603)                    -
   Payments to minority interest by subsidiary                                                  (5,400)             (396,333)
   Other                                                                                             -                54,332
                                                                                         -------------           -----------

           Net cash (used in) provided by investing activities                              (6,943,657)            1,280,266
                                                                                          -------------         ------------

Cash flows from financing activities:
   Proceeds from mortgages payable                                                           9,236,178             1,600,000
   Repayment of mortgages payable                                                             (254,329)           (2,163,398)
   Repayment of bank borrowings, net of proceeds                                            (4,605,029)           (1,900,000)
   Payment of financing costs                                                                 (359,565)              (89,088)
   Cash distributions - common stock                                                        (1,417,099)           (1,345,163)
   Cash distributions - preferred stock                                                       (970,531)             (970,531)
   Proceeds from issuance of shares through rights offering                                 17,470,987                     -
   Issuance of shares through dividend reinvestment plan                                       534,704               572,946
   Exercise of stock options                                                                         -               232,688
                                                                                           -----------          -------------
           Net cash provided by (used in) financing activities                              19,635,316            (4,062,546)
                                                                                           -----------          -------------

           Net increase (decrease) in cash
               and cash equivalents                                                         17,383,409              (634,701)

Cash and cash equivalents at beginning of period                                             1,606,364             2,478,580
                                                                                          ------------          ------------

Cash and cash equivalents at end of period                                                 $18,989,773           $ 1,843,879
                                                                                           ===========           ===========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                                        $ 1,855,971          $  1,272,646
   Cash paid during the period for income taxes                                                 20,429                17,035

   See accompanying notes to consolidated financial statements.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements

Note 1 - Basis of Preparation

The  accompanying  interim  unaudited  consolidated  financial  statements as of
September  30, 1998 and for the nine and three months ended  September  30, 1998
and 1997 reflect all normal,  recurring adjustments which are, in the opinion of
management,  necessary for a fair  presentation  of the results for such interim
periods. The results of operations for the nine and three months ended September
30, 1998 are not necessarily indicative of the results for the full year.

The  consolidated  financial  statements  include  the  accounts  of One Liberty
Properties,  Inc., its wholly-owned  subsidiaries  and a majority-owned  limited
liability  company.  Material  intercompany  items  and  transactions  have been
eliminated.  One Liberty  Properties,  Inc.,  its  subsidiaries  and the limited
liability company are hereinafter referred to as the "Company".

Certain amounts reported in previous consolidated financial statements have been
reclassified in the accompanying consolidated financial statements to conform to
the current year's presentation.

These statements  should be read in conjunction with the consolidated  financial
statements  and related notes which are included in the Company's  Annual Report
on Form 10-K for the year ended December 31, 1997.

Note 2 - Earnings Per Common Share

     In 1997, the Financial Accounting Standards Board issued Statement No. 128,
Earnings Per Share.  Statement No. 128 replaced the  calculation  of primary and
fully  diluted  earnings  per share with basic and diluted  earnings  per share.
Unlike  primary  earnings  per share,  basic  earnings  per share  excludes  any
dilutive  effects of  options,  warrants  and  convertible  securities.  Diluted
earnings  per share is very similar to the  previously  reported  fully  diluted
earnings per share.  All  earnings  per share  amounts for all periods have been
presented,  and where appropriate,  restated to conform to the Statement No. 128
requirements.

For the nine and three month  periods  ended  September  30, 1998 and 1997 basic
earnings per share was  determined  by dividing net income  applicable to common
stockholders  for the period by the weighted  average number of shares of Common
Stock outstanding during each period.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 2 - Earnings Per Common Share (Continued)

Diluted  earnings per share reflects the potential  dilution that could occur if
securities or other  contracts to issue Common Stock were exercised or converted
into Common  Stock or resulted in the  issuance of Common Stock that then shared
in the earnings of the Company.  For the nine month periods ended  September 30,
1998 and 1997 and the three month  period  ended  September  30,  1997,  diluted
earnings per share was  determined  by dividing net income  applicable to common
stockholders  for the  period by the  total of the  weighted  average  number of
shares of Common Stock  outstanding  plus the dilutive  effect of the  Company's
outstanding  options (947 for the nine months ended September 1998 and 7,374 and
4,157 for the nine and three months ended  September 1997,  respectively)  using
the treasury  stock  method.  The  Preferred  Stock was not  considered  for the
purpose of computing  diluted  earnings per share during these  periods  because
their assumed  conversion is antidilutive.  However,  for the three months ended
September 30, 1998, the assumed  conversion of the Preferred  Stock is dilutive.
Thus, for the three months ended September 30, 1998,  diluted earnings per share
was  determined  by  dividing  net  income  for the  period  by the total of the
weighted average number of Common Stock  outstanding plus the dilutive effect of
the Company's Preferred Stock using the if-converted method.

In  addition,  options to purchase  40,000  shares of Common Stock at $14.50 per
share  (which  were  granted  during  March  1998)  were  not  included  in  the
computation  of diluted  earnings per share because the exercise  price of these
options is greater  than the  average  market  price of the common  shares  and,
therefore, the effect would be antidilutive.

Note 3 - Preferred and Common Stock Dividend Distributions

On August 28, 1998 the Board of Directors  declared quarterly cash distributions
of $.30  and $.40  per  share  on the  Company's  common  and  preferred  stock,
respectively,  payable on October 1, 1998 to stockholders of record on September
15, 1998.

Note 4 - Rights Offering

On June 22, 1998,  the Company sold  1,331,733  shares of Common Stock at $13.25
per share in a rights offering to its  shareholders.  Pursuant to a Registration
Statement filed with the Securities and Exchange Commission on February 10, 1998
and declared  effective on March 31, 1998 the Company  issued to each common and
preferred  stockholder of record as of March 24, 1998, one nontransferable right
for each common and/or  preferred share owned of record  entitling the holder to
purchase one share of Common Stock for a price of $13.25 per share. In addition,
each  common  and  preferred   stockholder   was  afforded  the  opportunity  to
over-subscribe  to the extent of two  additional  shares,  but, in order for the
over-subscription  privilege to come into effect a  stockholder  must have fully
exercised the basic subscription privilege. The offer expired on June 15, 1998.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 5 - Interest from Related Party

On  September  16,  1998,  the  Company  received a payoff in full of a mortgage
receivable encumbering a property owned by a related party. The principal amount
paid off and received by the Company was $7,582,000. The mortgage receivable was
acquired  during  fiscal  1993 at a  discount  of  $3,738,400  which  was  being
amortized over the life of the mortgage. The Company realized interest income on
this  transaction in the amount of $2,080,918,  which represents the unamortized
balance of the discount.  Such amount is included in interest from related party
in the accompanying consolidated financial statements.

Note 6 - Financial Accounting Standards Board Statement No. 130

In June 1997, the Financial Accounting Standards Board issued Statement No. 130,
Reporting  Comprehensive  Income,  which is effective for fiscal years beginning
after December 15, 1997.  Statement No. 130 establishes  standards for reporting
comprehensive  income  and  its  components  in a full  set  of  general-purpose
financial statements and requires that all components of comprehensive income be
reported in a financial  statement that is displayed with the same prominence as
other financial statements.  The Company adopted Statement No. 130 as of January
1, 1998. At September 30, 1998, accumulated other comprehensive income, which is
solely comprised of the net unrealized gain on available-for-sale securities was
$107,740.

Note 7 - Financial Accounting Standards Board Statement No. 131

In June 1997, the Financial Accounting Standards Board issued Statement No. 131,
Disclosures  About Segments of an Enterprise and Related  Information,  which is
effective for financial statements issued for years beginning after December 15,
1997.  Statement No. 131 establishes  standards for the way that public business
enterprises  report  information  about operating  segments in annual  financial
statements and requires that those enterprises report selected information about
operating segments in interim financial reports.  It also establishes  standards
for related disclosures about products and services, geographic areas, and major
customers.  Statement No. 131 is effective for financial  statements  for fiscal
years  beginning  after  December 15, 1997, and therefore the Company will adopt
the new  requirements  retroactively  in 1998.  Management has not completed its
review of Statement No. 131, but does not  anticipate  that the adoption of this
statement will have a significant effect on the Company's reported segments.

Note 8 - Subsequent Event

On  October  30,  1998,  the  Company  sold a  property  located in the State of
Washington  for a  sales  price  of  $1,500,000  and  will  recognize  a gain of
approximately $1,200,000 during the December 1998 quarter. In addition, a second
mortgage receivable the Company held on the property was paid off as part of the
sale. At September 30, 1998, the outstanding balance of this mortgage receivable
was $36,600.
Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations

Liquidity and Capital Resources

At  September  30,  1998,  the  Company's   primary  sources  of  liquidity  are
approximately  $18,990,000  in cash and cash  equivalents,  and funds  available
under a revolving credit facility (of which the entire  $9,000,000  facility was
available at September 30, 1998).  Other sources of liquidity are cash generated
from operating  activities and funds  obtainable from mortgages to be secured by
real estate investments.

On June 22, 1998,  the Company sold  1,331,733  shares of Common Stock at $13.25
per  share  in a  rights  offering  to its  shareholders.  The net  proceeds  of
approximately  $17,470,000  (after  expenses)  was used to repay the  $6,985,000
outstanding  under the revolving  credit  facility and the balance is to be used
for  the  acquisition  of  additional  properties.  The  Company  purchased  two
properties during the last week of June 1998. The purchase price of one property
was  $1,970,000,  which  was paid in cash at the  closing.  A  $1,285,000  first
mortgage  loan  secured by the property  was  obtained in  September  1998.  The
purchase price of the other property was $3,525,000, which was paid in part by a
$2,450,000  first mortgage loan secured by the property and the balance in cash.
On October 2, 1998, the Company purchased an additional  property for a purchase
price of $900,000  which was paid in cash. On October 30, 1998, the Company sold
a property  located in the State of  Washington  for a sales price of $1,500,000
and will recognize a gain of approximately  $1,200,000  during the December 1998
quarter.

In March,  1996 the Company entered into a $5 million revolving credit agreement
("Credit  Agreement")  with Bank Leumi Trust Company of New York ("Bank Leumi").
Under the terms of the Credit Agreement the Company could add additional lenders
to provide a maximum total  facility of  $15,000,000.  In June 1997, the Company
closed on a $4,000,000  participation  interest with Commercial Bank of New York
(formerly  First  Bank  of the  Americas),  increasing  the  total  facility  to
$9,000,000.  Borrowings  under the Credit  Agreement  provides  the Company with
funds,  when needed,  to acquire  additional  properties.  The Credit  Agreement
matures  February  28,  1999 with a right for the  Company  to extend the Credit
Agreement until February 29, 2000.

The Company is currently in various stages of negotiation for the acquisition of
additional  net  leased  properties.  Cash  provided  from  operations  and  the
Company's   cash  position  will  provide  funds  for  cash   distributions   to
stockholders  and operating  expenses.  These sources of funds,  funds available
under the Credit  Agreement,  and funds  derived from mortgage  financings  will
provide funds for additional property  acquisitions.  It will continue to be the
Company's policy to make sufficient cash  distributions to stockholders in order
for the Company to maintain  its real estate  investment  trust status under the
Internal Revenue Code.
In connection  with the lease  agreements  with Total  Petroleum,  Inc.  ("Total
Petroleum")  consummated  in 1991, the Company agreed to expend certain funds to
remediate  environmental  problems  at  certain  locations  net  leased to Total
Petroleum.  It was  agreed  that the net cost to the  Company  would not  exceed
$350,000  per  location,  with any  excess  being  the  responsibility  of Total
Petroleum.  At that time the Company  deposited  $2,000,000  with an independent
escrow  agent to insure  compliance  by the Company  with its  obligations  with
respect to the  environmental  clean up. At September  30,  1998,  there are two
locations which require additional remediation efforts. The Company believes the
$791,000  held by the  escrow  agent  will be  adequate  to cover the  Company's
responsibility to pay for the environmental costs at these two locations.

There will be no effect on the  Company's  liquidity  relating  to the year 2000
issue because during 1997 the Company acquired computer hardware and software to
handle  the  Company's  accounting  and real  estate  management.  The  computer
software  is  capable  of  handling  all  issues  relating  to  the  year  2000.
Non-compliance  with the year 2000 issue by third  parties or tenants  with whom
the  Company  has a relation  will not have a material  effect on the  Company's
business, financial condition or results of operations.
Results of Operations

Nine and three months ended September 30, 1998 and 1997

Rental income  increased by $1,216,084 and $630,741 to $5,165,813 and $1,897,958
for the nine and three  months  ended  September  30, 1998 from  $3,949,729  and
$1,267,217  for the nine and three months  ended  September  30, 1997  resulting
primarily from the acquisition of three properties in 1998 and two properties in
1997, offset in part by the sale of a property during 1997.

On  September  16,  1998,  the  Company  received a payoff in full of a mortgage
receivable,  which had  previously  been  acquired  at a  discount.  Included in
interest from related party for the 1998 periods is $2,080,918, which represents
the unamortized balance of the discount.

Interest  and other  income  increased  by $127,760 and $111,366 to $177,910 and
$129,069,  due to an  increase  in  cash  and  cash  equivalents  available  for
investment.  Such investments were made primarily from the proceeds  realized by
the Company from the sale of common shares through the rights offering.

Increases in depreciation and amortization  expense of $252,369 and $116,351 for
the nine and three months ended  September 30, 1998 to  $1,006,949  and $368,827
results primarily from depreciation on five properties  acquired during 1998 and
1997, offset in part by the sale of one property during 1997.

The increases in  interest-mortgages  payable to $1,499,120 and $560,703 for the
nine and three months ended  September 30, 1998 from  $1,157,027 and $368,788 in
the prior nine and three month periods is due to mortgages placed on four of the
properties  acquired  during  1998 and  1997,  offset in part by the sale of one
property during 1997.

Interest-bank  note  payable  amounted  to $257,913  for the nine  months  ended
September  30,  1998,  resulting  from  borrowings  under the Credit  Agreement.
Borrowings  were made to facilitate the purchase of one property in 1998 and two
properties in 1997. The $6,985,000  outstanding note balance was repaid June 22,
1998 with a portion of the  proceeds  realized by the  Company  from the sale of
common shares through the rights offering.

General and administrative expenses increased by $14,596 and $18,181 to $498,615
and  $168,300  for  the  nine  and  three  months  ended   September  30,  1998,
respectively.  These increases were due to a combination of factors including an
increase in personnel costs as the Company's level of activities increased.

At September 30, 1998 the Company owns three properties which had been leased to
a retail  chain of stores.  Since the  expiration  of the initial  term of these
leases on December 31, 1996,  two of these  stores have been  re-leased  and one
remains  vacant.  The Company has  determined  that the estimated  fair value of
these properties are lower than their carrying amounts and thus, the Company has
taken a provision for the differences.  The total provision taken on these three
properties  amounts to $156,832.  There was no comparable  provision in the nine
months ended September 30, 1997.

On August 5, 1997,  the property owned by a limited  liability  company in which
the Company was a majority  member was sold and a gain of $599,251  was realized
on the sale. The Company's  share of the gain is $383,915  (after  deducting the
minority  interest share of the gain of $215,336).  There was no comparable gain
in the nine months ended September 30, 1998.
Part II - Other Information

Item 6. - Exhibits and Reports on Form 8-K

On September 24, 1998,  the Company filed a current  report on Form 8-K with the
Securities and Exchange Commission to report the amendment of certain provisions
of the Company's By-Laws.
ONE LIBERTY PROPERTIES, INC.

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                             One Liberty Properties, Inc.
                                    (Registrant)

November 13, 1998               /s/ Matthew Gould
 Date                               Matthew Gould
                                    President

November 13, 1998              /s/ David W. Kalish
 Date                              David W. Kalish
                                   Vice President and
                                   Chief Financial Officer