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 June 30, 1997

                                       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.

       Asof August 1, 1997, the Registrant had 1,533,811 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>


Part I - FINANCIAL INFORMATION

Item 1.    Financial Statements
<TABLE>
<CAPTION>
                   ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                            CONSOLIDATED BALANCE SHEETS
                                                  June 30,      December 31,
                                                   1997             1996
                                                (Unaudited)
 <S>                                            <C>               <C>
Assets
   Real estate investments, at cost
     Land                                       $10,703,651       $11,040,590
     Buildings                                   33,461,018        33,695,317
                                                 ----------       -----------
                                                 44,164,669        44,735,907
           Less accumulated depreciation          2,158,806         1,846,694
                                                  ---------       -----------
                                                 42,005,863        42,889,213
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related parties)                          5,980,973         6,049,033
   Cash and cash equivalents                      2,085,475         2,478,580
   Unbilled rent receivable                         480,501           304,828
   Rent, interest, deposits and
        other receivables                           120,461            66,908
   Investment in BRT Realty Trust-
        (related party)                             223,482           199,068
   Deferred financing costs                         512,042           480,640
   Other                                             76,733            54,718
                                                     ------    --------------
           Total assets                         $51,485,530       $52,522,988
                                                ===========       ===========
Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                      $ 18,317,688       $16,846,921
        Note payable-bank                         1,050,626         3,900,000
        Accrued expenses and other liabilities      508,513           475,109
        Dividends payable                           779,729           765,603
                                                    -------     -------------
           Total liabilities                     20,656,556        21,987,633
                                                 ----------      ------------
Commitments and contingencies                             -                 -
Minority interest in subsidiary                     141,829           141,722
                                               ------------      ------------
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             13,028,647        12,950,792
                                                -----------       -----------
   Stockholders' equity:
        Common stock, $1 par value;
        25,000,000 shares authorized;
        1,520,729 and 1,473,642
        shares issued and outstanding             1,520,729         1,473,642
       Paid-in capital                           14,064,727        13,650,737
        Net unrealized gain on
           available-for-sale securities            122,087            97,673
        Accumulated undistributed net income      1,950,955         2,220,789

   Total stockholders' equity                    17,658,498        17,442,841
                                                 ------------      -----------
   Total liabilities and stockholders' equity   $51,485,530       $52,522,988
                                                ===========       ===========

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

<PAGE>


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

<CAPTION>
                                               Three Months Ended                   Six Months Ended
                                                    June 30,                            June 30,
                                             -----------------------              --------------
                                              1997             1996               1997             1996
                                              ----             ----               ----             ----
<S>                                       <C>             <C>                 <C>                <C>
Revenues:
   Rental income                          $1,343,554      $   850,006         $ 2,682,512        $1,593,569
   Interest from related parties             208,701          326,901             418,400           619,871
   Interest and other income                  14,913          111,564             32,447            169,501
                                           ------------   ------------     -------------            -------
                                           1,567,168        1,288,471          3,133,359          2,382,941
                                           -----------    -----------       -----------          ---------
Expenses:
   Depreciation and amortization             251,754          159,320            502,104            295,876
   Interest - mortgages payable              395,459          198,005            788,239            341,549
   Interest - bank                            29,152                -             71,136                  -
   Leasehold rent                             72,209           72,209            144,417            144,417
   General and administrative                170,841          176,679            333,900            342,377
   Provision for valuation adjustment
     of real estate                                -          314,000                  -            314,000
                                          ---------------     -------       -------------        -----------
                                             919,415          920,213          1,839,796          1,438,219
                                            -----------      -----------     ---------          ---------

Operating income before minority
 interest in earnings of subsidiary          647,753          368,258          1,293,563            944,722

Minority interest in earnings of subsidiary   (6,703)               -            (13,307)                 -
                                            ------------ ---------------      ------------  ---------------

Net income                               $   641,050     $    368,258         $1,280,256         $  944,722
                                            ===========  ============          ==========        ==========

Calculation of net income applicable
 to common stockholders:
Net income                               $   641,050     $    368,258         $1,280,256         $  944,722
Less: dividends and accretion
   on preferred stock                        362,496          362,031            724,875            723,947
                                         ------------    -------------        ----------         ----------

Net income applicable to
   common stockholders                   $   278,554     $      6,227         $  555,381         $  220,775
                                         ===========     ============         ==========         ==========

Weighted average number of
   common shares outstanding               1,507,542        1,438,619          1,498,484          1,429,842
                                         ============    ============         ==========         =========

Net income per common share (Note 2)     $       .18     $          -         $      .37         $      .15
                                         ============    ============         ==========         ==========   
   

Cash distributions per share:

   Common Stock                          $       .30     $        .30         $       .60        $      .60
                                         ============    ============         ===========        ==========

   Preferred Stock                       $       .40     $        .40         $       .80        $      .80
                                         ============    ============         ===========        ==========    


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

<PAGE>

<TABLE>
                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<CAPTION>
                  For the six  month  period  ended  June 30,  1997 and the year
                      ended December 31, 1996
                                   (Unaudited)
                                                                              Net Unrealized
                                                                              Gain (loss) on       Accumulated
                                                 Common         Paid-in        Available-for-      Undistributed
                                                 Stock          Capital        Sale Securities     Net Income           Total
<S>                                           <C>              <C>               <C>              <C>                <C>

Balances,
   January 1, 1996                            $1,416,119       $13,218,757       $  ( 6,758)      $3,083,386         $17,711,504

Net income                                             -                 -                -        2,173,952           2,173,952
Distributions -
   common stock                                        -                 -                -       (1,742,507)         (1,742,507)
Distributions -
   preferred stock                                     -                 -                -       (1,294,042)         (1,294,042)
Accretion on
   preferred stock                                     -          (154,317)               -                -            (154,317)
Exercise of options                               23,500           190,937                -                -             214,437
Shares issued through
   dividend reinvestment
   plan                                           34,023           395,360                -                -             429,383
Net unrealized gain
   on available-for-sale
   securities                                          -                 -          104,431                -             104,431
                                             -----------        -----------        ---------       ------------        -----------


Balances,
   December 31, 1996                           1,473,642        13,650,737           97,673        2,220,789          17,442,841
Net income                                             -                 -                -        1,280,256           1,280,256
Distributions -
   common stock                                        -                 -                -         (903,070)           (903,070)
Distributions -
   preferred stock                                     -                 -                -         (647,020)           (647,020)
Accretion on
   preferred stock                                     -           (77,855)               -                -             (77,855)
Exercise of options                               15,000           121,875                -                -             136,875
Shares issued through
   dividend reinvestment
   plan                                           32,087           369,970                -                -             402,057
Net unrealized gain
   on available-for-sale
   securities                                          -                 -           24,414                -              24,414
                                         ---------------  ----------------      -----------  ---------------       --------------

Balances,
   June 30, 1997                              $1,520,729       $14,064,727      $   122,087      $ 1,950,955         $17,658,498
                                          ==============       ===========      ===========      ===========         ===========
   See accompanying notes to consolidated financial statements.
</TABLE>


<PAGE>

<TABLE>
<CAPTION>
                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                Six Months Ended June 30,            
                                                                    1997           1996
<S>                                                               <C>                 <C>
Cash flows from operating activities:
   Net income                                                     $  1,280,256        $ 944,722
   Adjustments to reconcile net income
    to net cash provided by operating
     activities: 
   (Increase)in rental income from straight-lining of rent            (175,673)               -
   Provision for valuation adjustment of real estate                         -          314,000
   Depreciation and amortization                                       502,104          295,876
   Minority interest in earnings of subsidiary                          13,307                -
   Changes in assets and liabilities:
   (Increase) decrease in rent, interest,
     deposits and other receivables                                    (75,568)         265,828
   Increase in accrued expenses and other liabilities                   33,404           45,853
                                                                    -----------     -----------

           Net cash provided by operating activities                 1,577,830        1,866,279
                                                                    -----------     -----------

Cash flows from investing activities:
   Additions to real estate                                                  -       (4,059,478)
   Sale of real estate                                                 384,598                -
   Collection of mortgages receivable -
     (including $56,577 and $873,353
      from related parties)                                             68,060          885,019
   Collection of senior secured note
      receivable - BRT Realty Trust - related party                          -          327,546
   Sale of U.S. Government
     obligations and securities, net                                         -           60,356
   Other                                                                41,134                -
                                                                     ----------- --------------
           Net cash provided by (used in) investing activities         493,792       (2,786,557)
                                                                      ---------- -------------

Cash flows from financing activities:
   Proceeds from mortgages payable                                   1,600,000        2,725,000
   Repayment of mortgages payable                                     (129,233)         (45,985)
   Repayments on note payable-bank                                  (2,849,374)               -
   Payment of financing costs                                          (89,088)         (88,108)
   Exercise of stock options                                           136,875          205,312
   Cash distributions - common stock                                  (888,944)        (856,422)
   Cash distributions - preferred stock                               (647,020)        (647,020)
   Issuance of shares through
     dividend reinvestment plan                                        402,057                -
                                                                      ---------- --------------

           Net cash provided by (used in) financing activities      (2,464,727)       1,292,777
                                                                    -----------      -----------

           Net (decrease) increase in cash
               and cash equivalents                                   (393,105)         372,499

Cash and cash equivalents at beginning of period                     2,478,580        3,844,409
                                                                     ----------       ----------

Cash and cash equivalents at end of period                          $2,085,475       $4,216,908
                                                                    ==========       ==========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                 $  858,777       $  315,382
   Cash paid during the period for income taxes                         16,011           55,999

Supplemental schedule of noncash
 investing and financing activities:
   Accretion on preferred stock                                         77,855           76,927

  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 June
30, 1997 and for the six and three  months  ended June 30, 1997 and 1996 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 six and three months ended June 30, 1997 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 its 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, 1996.

Note 2 - Per Share Data

Primary earnings per common share data is based upon the weighted average number
of common shares and assumed  equivalent shares  outstanding  during the period,
after  giving  effect to  dividends  and  accretion  relating  to the  Company's
preferred stock. The preferred stock is not considered a common stock equivalent
for  the  purposes  of  computing  earnings  per  share  because  their  assumed
conversion is anti-dilutive.  The assumed exercise of outstanding stock options,
using the treasury stock method, is not materially  dilutive or is anti-dilutive
for the primary  earnings  per common  share  computation  for the six and three
month periods ended June 30, 1997 and 1996.

Fully  diluted  earnings per common share are based on an increase in the number
of common shares that would be outstanding assuming the exercise of common share
options.  Since fully  diluted  earnings  per share  amounts are not  materially
dilutive, such amounts are not presented.





<PAGE>



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

Note 2 - Per Share Data (Continued)

In February, 1997, the Financial Accounting Standards Board issued Statement No.
128,  Earnings per Share,  which is required to be adopted on December 31, 1997.
At that time,  the Company will be required to change the method  currently used
to compute  earnings per share and to restate all prior  periods.  Under the new
requirements for calculating  primary earnings per share, the dilutive effect of
stock options will be excluded.  The impact of Statement 128 on the  calculation
of primary and fully diluted earnings per share is not expected to be material.

Note 3 - Preferred and Common Stock Dividend Distributions

On June 6, 1997 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 July 1,  1997 to  stockholders  of record on June 20,
1997.

Note 4 - Stock Options

Options to purchase a total of 15,000  shares of the  Company's  common stock at
$9.125 per share were exercised in June 1997. The options had been granted under
the 1989 Stock Option Plan.


<PAGE>



Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations


Liquidity and Capital Resources

At June 30, 1997, the Company's primary sources of liquidity were cash generated
from operating activities, approximately $2,085,475 in cash and cash equivalents
and  a  $9,000,000  revolving  credit  agreement  (discussed  below),  of  which
$7,949,374  was  available  at June 30,  1997.  Long-term  debt at June 30, 1997
consisted of $18,317,688 of mortgages payable,  which is secured by certain real
estate investments.

On August 5, 1997, a property owned by a limited  liability company in which the
Company  is a  significant  member  was sold.  The  Company  realized  a gain of
approximately  $500,000 on the sale. A portion of the net cash proceeds was used
to pay off the entire $1,050,626 outstanding balance under the credit agreement.

In March,  1996 the Company entered into a $5 million revolving credit agreement
with Bank Leumi  Trust  Company of New York ("Bank  Leumi").  Under the terms of
this agreement the Company has the ability to 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 First Bank of the Americas,  increasing
the total facility to  $9,000,000.  Borrowings  under the credit  agreement will
provide 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 agreement until February 29, 2000.

The Company is currently in discussions concerning the acquisition of additional
net leased properties. In management's judgement, cash provided from operations,
the Company's cash position and cash available  under the credit  agreement will
provide  adequate  funds  for  cash  distributions  to  shareholders,  operating
expenses and future investments.  It will continue to be the Company's policy to
make sufficient cash  distributions  to shareholders 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 discovered at certain locations that were 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 cost 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. The escrow agent held
approximately  $1,058,000 as of June 30, 1997,  which the Company deems adequate
to cover any additional environmental costs.




<PAGE>


Results of Operations


Six and three months ended June 30, 1997 and 1996

As a result of the Company's  acquisition  of five  properties  in 1996,  rental
income increased by $1,088,943 and $493,548 to $2,682,512 and $1,343,554 for the
six and three  months ended June 30, 1997 from  $1,593,569  and $850,006 for the
six and three months ended June 30,  1996.  The straight  lining of rents during
the six and three months ended June 30, 1997 contributed $175,673 and $86,121 to
the increase in rental income.

The decrease in interest  income from related  parties of $201,471 from $619,871
in the six months  ended June 30,  1996 to  $418,400  in the  current  six month
period and the decrease of $118,200 from $326,901 in the three months ended June
30, 1996 to $208,701 in the current three month period is  substantially  due to
the payoff in full  during  August  1996 of a senior  note  receivable  and to a
lesser  extent,  the payoff in full during  March 1996 of an  $845,000  mortgage
receivable.

Interest and other  income  decreased to $32,447 in the current six month period
from  $169,501 in the prior six month period and to $14,913 in the current three
month period from  $111,564 in the prior three month period due to a combination
of factors including a decrease in interest earned on U.S. Government securities
resulting from the sale of such investments,  the proceeds of which were used to
purchase properties.

Increases in depreciation and  amortization  expense of $206,228 and $92,434 for
the six and three months  ended June 30, 1997 to $502,104  and $251,754  results
from  depreciation on properties  acquired during 1996. Also contributing to the
increase was the  amortization of capitalized  costs incurred in connection with
the Company  obtaining  a bank credit  facility  and  placing  mortgages  on its
properties.

The  increase  in  interest-mortgages  payable to $788,239  and  $395,459 in the
current six and three month  periods from $341,549 and $198,005 in the prior six
and  three  month  periods  is due to  interest  paid  on  mortgages  placed  in
connection with property  acquisitions during 1996. Interest - bank note payable
amounted to $71,136 and $29,152  during the six and three  months ended June 30,
1997 resulting from borrowings under the revolving credit agreement.

At June 30, 1996 the Company had determined that the estimated fair value of two
of its  properties  were lower  than the  carrying  amount  and thus  recorded a
provision for valuation  adjustment for the  difference.  These  properties were
sold  during  the six  months  ended  June 30,  1997.  There  was no  comparable
provision taken in 1997.


<PAGE>




                                    Part II - Other Information

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

No Form 8-Ks were filed during the quarter ended June 30, 1997.





<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)






August 14, 1997            /s/ Matthew Gould
 Date                      Matthew Gould
                           President





August 14, 1997            /s/ David W. Kalish
 Date                      David W. Kalish
                           Vice President and
                           Chief Financial Officer
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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 June 30, 1997

                                       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.

       Asof August 1, 1997, the Registrant had 1,533,811 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
                                                  June 30,      December 31,
                                                   1997             1996
                                                (Unaudited)
Assets
   Real estate investments, at cost
     Land                                       $10,703,651       $11,040,590
     Buildings                                   33,461,018        33,695,317
                                                 ----------       -----------
                                                 44,164,669        44,735,907
           Less accumulated depreciation          2,158,806         1,846,694
                                                  ---------       -----------
                                                 42,005,863        42,889,213
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related parties)                          5,980,973         6,049,033
   Cash and cash equivalents                      2,085,475         2,478,580
   Unbilled rent receivable                         480,501           304,828
   Rent, interest, deposits and
        other receivables                           120,461            66,908
   Investment in BRT Realty Trust-
        (related party)                             223,482           199,068
   Deferred financing costs                         512,042           480,640
   Other                                             76,733            54,718
                                                     ------    --------------
           Total assets                         $51,485,530       $52,522,988
                                                ===========       ===========
Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                      $ 18,317,688       $16,846,921
        Note payable-bank                         1,050,626         3,900,000
        Accrued expenses and other liabilities      508,513           475,109
        Dividends payable                           779,729           765,603
                                                    -------     -------------
           Total liabilities                     20,656,556        21,987,633
                                                 ----------      ------------
Commitments and contingencies                             -                 -
Minority interest in subsidiary                     141,829           141,722
                                               ------------      ------------
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             13,028,647        12,950,792
                                                -----------       -----------
   Stockholders' equity:
        Common stock, $1 par value;
        25,000,000 shares authorized;
        1,520,729 and 1,473,642
        shares issued and outstanding             1,520,729         1,473,642
       Paid-in capital                           14,064,727        13,650,737
        Net unrealized gain on
           available-for-sale securities            122,087            97,673
        Accumulated undistributed net income      1,950,955         2,220,789

   Total stockholders' equity                    17,658,498        17,442,841
                                                 ------------      -----------
   Total liabilities and stockholders' equity   $51,485,530       $52,522,988
                                                ===========       ===========

       See  accompanying  notes to  consolidated  financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                   (Unaudited)
Three Months Ended                   Six Months Ended
                                                    June 30,                            June 30,
                                             -----------------------              --------------
                                              1997             1996               1997             1996
                                              ----             ----               ----             ----
Revenues:
   Rental income                          $1,343,554      $   850,006         $ 2,682,512        $1,593,569
   Interest from related parties             208,701          326,901             418,400           619,871
   Interest and other income                  14,913          111,564             32,447            169,501
                                           ------------   ------------     -------------            -------
                                           1,567,168        1,288,471          3,133,359          2,382,941
                                           -----------    -----------       -----------          ---------
Expenses:
   Depreciation and amortization             251,754          159,320            502,104            295,876
   Interest - mortgages payable              395,459          198,005            788,239            341,549
   Interest - bank                            29,152                -             71,136                  -
   Leasehold rent                             72,209           72,209            144,417            144,417
   General and administrative                170,841          176,679            333,900            342,377
   Provision for valuation adjustment
     of real estate                                -          314,000                  -            314,000
                                          ---------------     -------       -------------        -----------
                                             919,415          920,213          1,839,796          1,438,219
                                            -----------      -----------     ---------          ---------

Operating income before minority
 interest in earnings of subsidiary          647,753          368,258          1,293,563            944,722

Minority interest in earnings of subsidiary   (6,703)               -            (13,307)                 -
                                            ------------ ---------------      ------------  ---------------

Net income                               $   641,050     $    368,258         $1,280,256         $  944,722
                                            ===========  ============          ==========        ==========

Calculation of net income applicable
 to common stockholders:
Net income                               $   641,050     $    368,258         $1,280,256         $  944,722
Less: dividends and accretion
   on preferred stock                        362,496          362,031            724,875            723,947
                                         ------------    -------------        ----------         ----------

Net income applicable to
   common stockholders                   $   278,554     $      6,227         $  555,381         $  220,775
                                         ===========     ============         ==========         ==========

Weighted average number of
   common shares outstanding               1,507,542        1,438,619          1,498,484          1,429,842
                                         ============    ============         ==========         =========

Net income per common share (Note 2)     $       .18     $          -         $      .37         $      .15
                                         ============    ============         ==========         ==========   
   

Cash distributions per share:

   Common Stock                          $       .30     $        .30         $       .60        $      .60
                                         ============    ============         ===========        ==========

   Preferred Stock                       $       .40     $        .40         $       .80        $      .80
                                         ============    ============         ===========        ==========    

       See  accompanying  notes to  consolidated  financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the six  month  period  ended  June 30,  1997 and the year
                      ended December 31, 1996
                                   (Unaudited)
                                                                              Net Unrealized
                                                                              Gain (loss) on       Accumulated
                                                 Common         Paid-in        Available-for-      Undistributed
                                                 Stock          Capital        Sale Securities     Net Income           Total
Balances,
   January 1, 1996                            $1,416,119       $13,218,757       $  ( 6,758)      $3,083,386         $17,711,504

Net income                                             -                 -                -        2,173,952           2,173,952
Distributions -
   common stock                                        -                 -                -       (1,742,507)         (1,742,507)
Distributions -
   preferred stock                                     -                 -                -       (1,294,042)         (1,294,042)
Accretion on
   preferred stock                                     -          (154,317)               -                -            (154,317)
Exercise of options                               23,500           190,937                -                -             214,437
Shares issued through
   dividend reinvestment
   plan                                           34,023           395,360                -                -             429,383
Net unrealized gain
   on available-for-sale
   securities                                          -                 -          104,431                -             104,431
                                             -----------        -----------        ---------       ------------        -----------

Balances,
   December 31, 1996                           1,473,642        13,650,737           97,673        2,220,789          17,442,841
Net income                                             -                 -                -        1,280,256           1,280,256
Distributions -
   common stock                                        -                 -                -         (903,070)           (903,070)
Distributions -
   preferred stock                                     -                 -                -         (647,020)           (647,020)
Accretion on
   preferred stock                                     -           (77,855)               -                -             (77,855)
Exercise of options                               15,000           121,875                -                -             136,875
Shares issued through
   dividend reinvestment
   plan                                           32,087           369,970                -                -             402,057
Net unrealized gain
   on available-for-sale
   securities                                          -                 -           24,414                -              24,414
                                         ---------------  ----------------      -----------  ---------------       --------------

Balances,
   June 30, 1997                              $1,520,729       $14,064,727      $   122,087      $ 1,950,955         $17,658,498
                                          ==============       ===========      ===========      ===========         ===========
   See accompanying notes to consolidated financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                Six Months Ended June 30,            
                                                                    1997           1996
Cash flows from operating activities:
   Net income                                                     $  1,280,256        $ 944,722
   Adjustments to reconcile net income
    to net cash provided by operating
     activities: 
   (Increase)in rental income from straight-lining of rent            (175,673)               -
   Provision for valuation adjustment of real estate                         -          314,000
   Depreciation and amortization                                       502,104          295,876
   Minority interest in earnings of subsidiary                          13,307                -
   Changes in assets and liabilities:
   (Increase) decrease in rent, interest,
     deposits and other receivables                                    (75,568)         265,828
   Increase in accrued expenses and other liabilities                   33,404           45,853
                                                                    -----------     -----------

           Net cash provided by operating activities                 1,577,830        1,866,279
                                                                    -----------     -----------

Cash flows from investing activities:
   Additions to real estate                                                  -       (4,059,478)
   Sale of real estate                                                 384,598                -
   Collection of mortgages receivable -
     (including $56,577 and $873,353
      from related parties)                                             68,060          885,019
   Collection of senior secured note
      receivable - BRT Realty Trust - related party                          -          327,546
   Sale of U.S. Government
     obligations and securities, net                                         -           60,356
   Other                                                                41,134                -
                                                                     ----------- --------------
           Net cash provided by (used in) investing activities         493,792       (2,786,557)
                                                                      ---------- -------------

Cash flows from financing activities:
   Proceeds from mortgages payable                                   1,600,000        2,725,000
   Repayment of mortgages payable                                     (129,233)         (45,985)
   Repayments on note payable-bank                                  (2,849,374)               -
   Payment of financing costs                                          (89,088)         (88,108)
   Exercise of stock options                                           136,875          205,312
   Cash distributions - common stock                                  (888,944)        (856,422)
   Cash distributions - preferred stock                               (647,020)        (647,020)
   Issuance of shares through
     dividend reinvestment plan                                        402,057                -
                                                                      ---------- --------------

           Net cash provided by (used in) financing activities      (2,464,727)       1,292,777
                                                                    -----------      -----------

           Net (decrease) increase in cash
               and cash equivalents                                   (393,105)         372,499

Cash and cash equivalents at beginning of period                     2,478,580        3,844,409
                                                                     ----------       ----------

Cash and cash equivalents at end of period                          $2,085,475       $4,216,908
                                                                    ==========       ==========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                 $  858,777       $  315,382
   Cash paid during the period for income taxes                         16,011           55,999

Supplemental schedule of noncash
 investing and financing activities:
   Accretion on preferred stock                                         77,855           76,927

  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 June
30, 1997 and for the six and three  months  ended June 30, 1997 and 1996 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 six and three months ended June 30, 1997 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 its 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, 1996.

Note 2 - Per Share Data

Primary earnings per common share data is based upon the weighted average number
of common shares and assumed  equivalent shares  outstanding  during the period,
after  giving  effect to  dividends  and  accretion  relating  to the  Company's
preferred stock. The preferred stock is not considered a common stock equivalent
for  the  purposes  of  computing  earnings  per  share  because  their  assumed
conversion is anti-dilutive.  The assumed exercise of outstanding stock options,
using the treasury stock method, is not materially  dilutive or is anti-dilutive
for the primary  earnings  per common  share  computation  for the six and three
month periods ended June 30, 1997 and 1996.

Fully  diluted  earnings per common share are based on an increase in the number
of common shares that would be outstanding assuming the exercise of common share
options.  Since fully  diluted  earnings  per share  amounts are not  materially
dilutive, such amounts are not presented.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 2 - Per Share Data (Continued)

In February, 1997, the Financial Accounting Standards Board issued Statement No.
128,  Earnings per Share,  which is required to be adopted on December 31, 1997.
At that time,  the Company will be required to change the method  currently used
to compute  earnings per share and to restate all prior  periods.  Under the new
requirements for calculating  primary earnings per share, the dilutive effect of
stock options will be excluded.  The impact of Statement 128 on the  calculation
of primary and fully diluted earnings per share is not expected to be material.

Note 3 - Preferred and Common Stock Dividend Distributions

On June 6, 1997 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 July 1,  1997 to  stockholders  of record on June 20,
1997.

Note 4 - Stock Options

Options to purchase a total of 15,000  shares of the  Company's  common stock at
$9.125 per share were exercised in June 1997. The options had been granted under
the 1989 Stock Option Plan.
Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations

Liquidity and Capital Resources

At June 30, 1997, the Company's primary sources of liquidity were cash generated
from operating activities, approximately $2,085,475 in cash and cash equivalents
and  a  $9,000,000  revolving  credit  agreement  (discussed  below),  of  which
$7,949,374  was  available  at June 30,  1997.  Long-term  debt at June 30, 1997
consisted of $18,317,688 of mortgages payable,  which is secured by certain real
estate investments.

On August 5, 1997, a property owned by a limited  liability company in which the
Company  is a  significant  member  was sold.  The  Company  realized  a gain of
approximately  $500,000 on the sale. A portion of the net cash proceeds was used
to pay off the entire $1,050,626 outstanding balance under the credit agreement.

In March,  1996 the Company entered into a $5 million revolving credit agreement
with Bank Leumi  Trust  Company of New York ("Bank  Leumi").  Under the terms of
this agreement the Company has the ability to 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 First Bank of the Americas,  increasing
the total facility to  $9,000,000.  Borrowings  under the credit  agreement will
provide 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 agreement until February 29, 2000.

The Company is currently in discussions concerning the acquisition of additional
net leased properties. In management's judgement, cash provided from operations,
the Company's cash position and cash available  under the credit  agreement will
provide  adequate  funds  for  cash  distributions  to  shareholders,  operating
expenses and future investments.  It will continue to be the Company's policy to
make sufficient cash  distributions  to shareholders 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 discovered at certain locations that were 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 cost 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. The escrow agent held
approximately  $1,058,000 as of June 30, 1997,  which the Company deems adequate
to cover any additional environmental costs.
Results of Operations

Six and three months ended June 30, 1997 and 1996

As a result of the Company's  acquisition  of five  properties  in 1996,  rental
income increased by $1,088,943 and $493,548 to $2,682,512 and $1,343,554 for the
six and three  months ended June 30, 1997 from  $1,593,569  and $850,006 for the
six and three months ended June 30,  1996.  The straight  lining of rents during
the six and three months ended June 30, 1997 contributed $175,673 and $86,121 to
the increase in rental income.

The decrease in interest  income from related  parties of $201,471 from $619,871
in the six months  ended June 30,  1996 to  $418,400  in the  current  six month
period and the decrease of $118,200 from $326,901 in the three months ended June
30, 1996 to $208,701 in the current three month period is  substantially  due to
the payoff in full  during  August  1996 of a senior  note  receivable  and to a
lesser  extent,  the payoff in full during  March 1996 of an  $845,000  mortgage
receivable.

Interest and other  income  decreased to $32,447 in the current six month period
from  $169,501 in the prior six month period and to $14,913 in the current three
month period from  $111,564 in the prior three month period due to a combination
of factors including a decrease in interest earned on U.S. Government securities
resulting from the sale of such investments,  the proceeds of which were used to
purchase properties.

Increases in depreciation and  amortization  expense of $206,228 and $92,434 for
the six and three months  ended June 30, 1997 to $502,104  and $251,754  results
from  depreciation on properties  acquired during 1996. Also contributing to the
increase was the  amortization of capitalized  costs incurred in connection with
the Company  obtaining  a bank credit  facility  and  placing  mortgages  on its
properties.

The  increase  in  interest-mortgages  payable to $788,239  and  $395,459 in the
current six and three month  periods from $341,549 and $198,005 in the prior six
and  three  month  periods  is due to  interest  paid  on  mortgages  placed  in
connection with property  acquisitions during 1996. Interest - bank note payable
amounted to $71,136 and $29,152  during the six and three  months ended June 30,
1997 resulting from borrowings under the revolving credit agreement.

At June 30, 1996 the Company had determined that the estimated fair value of two
of its  properties  were lower  than the  carrying  amount  and thus  recorded a
provision for valuation  adjustment for the  difference.  These  properties were
sold  during  the six  months  ended  June 30,  1997.  There  was no  comparable
provision taken in 1997.
Part II - Other Information

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

No Form 8-Ks were filed during the quarter ended June 30, 1997.
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)

August 14, 1997            /s/ Matthew Gould
 Date                      Matthew Gould
                           President

August 14, 1997            /s/ David W. Kalish
 Date                      David W. Kalish
                           Vice President and
                           Chief Financial Officer