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 March 31, 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 May 1, 1998, the  Registrant  had 1,587,317  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



<TABLE>
<CAPTION>

Part I - FINANCIAL INFORMATION

Item 1.    Financial Statements

                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS

                                                                               March 31,        December 31,
                                                                                 1998               1997
                                                                                 ----               ----
                                                                              (Unaudited)
<S>                                                                           <C>               <C>   
Assets
   Real estate investments, at cost
     Land                                                                     $13,552,672       $12,210,147
    Buildings                                                                  44,011,516        38,641,419
                                                                               ----------        ----------
                                                                               57,564,188        50,851,566
            Less accumulated depreciation                                       2,794,288         2,534,582
                                                                                ---------         ---------
                                                                               54,769,900        48,316,984
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related parties)                                                        5,866,200         5,943,450
   Cash and cash equivalents                                                    1,690,108         1,606,364
   Unbilled rent receivable                                                       788,124           665,052
   Rent, interest, deposits and
        other receivables                                                         266,379           300,584
   Investment in BRT Realty Trust-
        (related party)                                                           230,994           240,384
   Deferred financing costs                                                       723,118           510,123
   Other                                                                          104,959            64,614
                                                                                  -------            ------

           Total assets                                                       $64,439,782       $57,647,555
                                                                              ===========       ===========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                                                     $24,990,920       $20,545,247
        Note payable-bank                                                       6,985,029         4,605,029
        Accrued expenses and other liabilities                                    290,996           394,459
        Dividends payable                                                         795,978           791,945
                                                                                  -------           -------     

           Total liabilities                                                   33,062,923        26,336,680
                                                                               ----------        ----------

Commitments and contingencies                                                           -                 -

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                                           13,146,308        13,106,970
                                                                               ----------        ----------

   Stockholders' equity:
        Common stock, $1 par value;
         25,000,000 shares authorized;
         1,574,894 and 1,561,450
         shares issued and outstanding                                          1,574,894         1,561,450
        Paid-in capital                                                        14,548,831        14,419,609
        Net unrealized gain on
           available-for-sale securities                                          140,178           146,706
        Accumulated undistributed net income                                    1,966,648         2,076,140
                                                                                ---------         ---------

           Total stockholders' equity                                          18,230,551        18,203,905
                                                                               ----------        ----------

           Total liabilities and stockholders' equity                         $64,439,782       $57,647,555
                                                                              ===========       ===========

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


<TABLE>
<CAPTION>


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

                                                Three Months Ended
                                                     March 31,
                                               1998           1997
                                               ----           ----
<S>                                      <C>               <C>    

Revenues:
   Rental income                         $1,523,538        $1,338,958
   Interest from related parties            205,620           209,699
   Interest and other income                 15,798            17,534
                                             ------            ------
                                          1,744,956         1,566,191
                                          ---------         ---------
Expenses:
   Depreciation and amortization            298,201           250,350
   Interest - mortgages payable             424,776           392,780
   Interest - bank                          110,611            41,984

   Leasehold rent                           72,208             72,208
   General and administrative              152,674            163,059
                                           -------            -------
                                         1,058,470            920,381
                                         ---------            -------

Income before minority interest            686,486            645,810

Minority interest                                -             (6,604)
                                           -------             ------ 

Net income                             $   686,486        $   639,206
                                       ===========        ===========


Calculation of net income applicable
 to common stockholders:
Net income                             $   686,486        $   639,206
Less: dividends and accretion
   on preferred stock                      362,848            362,379
                                           -------            -------

Net income applicable to
   common stockholders                 $   323,638       $    276,827
                                       ===========       ============

Weighted average number of
 common shares outstanding:
     Basic                               1,574,296          1,489,327
                                         =========          =========
     Diluted                             1,576,401          1,498,479
                                         =========          =========

Net income per common share (Note 2):
     Basic                             $       .21       $        .19
                                       ===========       ============
     Diluted                           $       .21       $        .18
                                       ===========       ============

Cash distributions per share:

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

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


      See accompanying notes to consolidated financial statements.

</TABLE>


<TABLE>
<CAPTION>


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

                   For the three month period ended March 31,
                    1998 and the year ended December 31, 1997
                                   (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, 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                                             -                 -                -          686,486            686,486
Distributions -
   common stock                                        -                 -                -         (472,468)          (472,468)
Distributions -
   preferred stock                                     -                 -                -         (323,510)          (323,510)
Accretion on
   preferred stock                                     -           (39,338)               -                -            (39,338)
Shares issued through
   dividend reinvestment
   plan                                           13,444           168,560                -                -            182,004
Net unrealized loss
   on available-for-sale
   securities                                          -                 -           (6,528)               -             (6,528)
                                                  ------           -------            ------           -----             ------ 

Balances,
   March 31, 1998                             $1,574,894       $14,548,831       $   140,178     $ 1,966,648            $18,230,551
                                              ==========       ===========       ===========     ===========            ===========


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


<TABLE>
<CAPTION>

                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                                   Three Months Ended
                                                                                        March 31,
                                                                                        ---------
                                                                                 1998              1997
                                                                                 ----              ----
<S>                                                                          <C>               <C>    

Cash flows from operating activities:
   Net income                                                                $  686,486        $  639,206
   Adjustments to reconcile net income
     to net cash provided by operating activities::
   (Increase) in rental income from straight-lining of rent                    (123,072)          (89,553)
   Depreciation and amortization                                                298,201           250,350
   Minority interest                                                                  -             6,604
   Changes in assets and liabilities:
   (Increase) in rent, interest,
     deposits and other receivables                                              (3,278)          (39,555)
   Increase (decrease) in accrued expenses and other liabilities               (103,463)           64,062
                                                                               --------            ------
           Net cash provided by operating activities                            754,874           831,114
                                                                                -------           -------

Cash flows from investing activities:
   Additions to real estate                                                  (6,712,622)                -
   Net proceeds from sale of real estate                                              -           236,920
   Collection of mortgages receivable -
     (including $70,193 and $27,792
      from related parties)                                                      77,250            32,756
   Payments to minority interest by subsidiary                                        -            (6,600)
   Other                                                                              -            31,000
                                                                                -------            ------

           Net cash (used in) provided by investing activities               (6,635,372)          294,076
                                                                             ----------           -------

Cash flows from financing activities:
   Proceeds from mortgages payable                                           4,525,000          1,600,000
   Repayment of mortgages payable                                              (79,327)           (61,027)
   Proceeds from bank borrowings, net of repayments                          2,380,000         (2,549,374)
   Payment of financing costs                                                 (251,490)           (31,641)
   Cash distributions - common stock                                          (468,435)          (442,093)
   Cash distributions - preferred stock                                       (323,510)          (323,510)
   Issuance of shares through
     dividend reinvestment plan                                                182,004            195,864
                                                                               -------            -------

           Net cash provided by (used in) financing activities               5,964,242         (1,611,781)

           Net  increase (decrease) in cash
               and cash equivalents                                            83,744            (486,591)

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

Cash and cash equivalents at end of period                                 $1,690,108          $1,991,989
                                                                           ==========          ==========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                        $  578,643         $   409,455
   Cash paid during the period for income taxes                                 4,663              25,662
                  
           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 March
31, 1998 and for the three  months  ended  March 31,  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  three  months  ended  March  31,  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 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 128 requirements.

For the three months ended March 31, 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 three months ended March 31, 1998 and
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 (2,105 and 9,152 for the three months ended 1998
and 1997, respectively) using the treasury stock method. The Preferred Stock was
not considered for the purpose of computing  diluted  earnings per share because
their  assumed  conversion  is  antidilutive.  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 options' exercise price was greater than the average market price of
the Common Stock and,  therefore,  the effect would be antidilutive.  See Note 4
for  information  regarding a Registration  Statement filed February 1998 by the
Company with the  Securities  and Exchange  Commission  with respect to a rights
offering made to its stockholders.

Note 3 - Preferred and Common Stock Dividend Distributions

On March 4, 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 April 1, 1998 to  stockholders  of record on March 18,
1998.

Note 4 - Registration Statement

On February  10,  1998,  the Company  filed a  Registration  Statement  with the
Securities and Exchange  Commission ("SEC") with respect to a rights offering to
its stockholders.  The Registration  Statement was declared effective by the SEC
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 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 is being
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 will expire on June 15, 1998.



<PAGE>




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


Note 5 - 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  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 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 131, but does not anticipate  that the adoption of this statement will
have a significant effect on the Company's reported segments.


<PAGE>



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


Liquidity and Capital Resources

The Company's  primary  sources of liquidity are cash  generated  from operating
activities, cash and cash equivalents,  funds available under a revolving credit
facility (of which approximately $2,015,000 was available at March 31, 1998) and
funds obtainable from mortgages to be secured by real estate investments.

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 can 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  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 Credit
Agreement until February 29, 2000.

The Company is currently in discussions concerning 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,  as well as funds  available under the Credit
Agreement,  provide funds for future property  acquisitions.  In April, 1998 the
Company  commenced a Rights  Offering to its  stockholders.  Funds raised in the
Rights  Offering  will be used to pay down the existing  outstanding  borrowings
under the Credit Agreement and for 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 March  31,  1998,  there  are two
locations which require additional remediation efforts. The Company believes the
$800,000  held by the escrow  agent  will be  adequate  to cover any  additional
environmental costs at the Total Petroleum locations.



<PAGE>




Results of Operations

Three months ended March 31, 1998 and 1997

Rental  income  increased by $184,580 to  $1,523,538  for the three months ended
March 31, 1998 as compared to the three  months  ended March 31, 1997  resulting
primarily from the 1997  acquisition of two properties and offset in part by the
sale of a property during 1997.

A $47,851 increase in depreciation and amortization  expense to $298,201 results
primarily from  depreciation on the two properties  acquired during 1997, offset
in part by the sale of one property during 1997.

The increase in interest-mortgages payable from $392,780 in the 1997 three month
period to $424,776 in the 1998 three month period is due to a mortgage placed on
one of the properties  acquired  during 1997,  offset in part by the sale of one
property during 1997.

Interest-bank note payable amounted to $110,611 and $41,984 for the three months
ended March 31, 1998 and 1997, respectively, resulting from borrowings under the
Credit  Agreement.  Borrowings  were  made to  facilitate  the  purchase  of two
properties in 1997.


<PAGE>




                          Part II - Other Information

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

On April 9,  1998,  the  Company  filed a  current  report on Form 8-K with the
Securities  and Exchange  Commission to report the  acquisition  of the property
located at 300 Gold Street,  Brooklyn,  New York by a limited liability company,
of which the Company is a 95% member.  The purchase price was $6,700,000,  which
was paid in part by a new  $4,525,000  mortgage  from  North  Fork  Bank and the
balance was paid by an advance under the Company's line of credit.





<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)






May 13, 1998                /s/ Matthew Gould
------------                -----------------
 Date                       Matthew Gould
                            President





May 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": 31222}]
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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 March 31, 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 May 1, 1998, the  Registrant  had 1,587,317  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

                                                                               March 31,        December 31,
                                                                                 1998               1997
                                                                                 ----               ----
                                                                              (Unaudited)
Assets
   Real estate investments, at cost
     Land                                                                     $13,552,672       $12,210,147
    Buildings                                                                  44,011,516        38,641,419
                                                                               ----------        ----------
                                                                               57,564,188        50,851,566
            Less accumulated depreciation                                       2,794,288         2,534,582
                                                                                ---------         ---------
                                                                               54,769,900        48,316,984
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related parties)                                                        5,866,200         5,943,450
   Cash and cash equivalents                                                    1,690,108         1,606,364
   Unbilled rent receivable                                                       788,124           665,052
   Rent, interest, deposits and
        other receivables                                                         266,379           300,584
   Investment in BRT Realty Trust-
        (related party)                                                           230,994           240,384
   Deferred financing costs                                                       723,118           510,123
   Other                                                                          104,959            64,614
                                                                                  -------            ------

           Total assets                                                       $64,439,782       $57,647,555
                                                                              ===========       ===========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                                                     $24,990,920       $20,545,247
        Note payable-bank                                                       6,985,029         4,605,029
        Accrued expenses and other liabilities                                    290,996           394,459
        Dividends payable                                                         795,978           791,945
                                                                                  -------           -------     

           Total liabilities                                                   33,062,923        26,336,680
                                                                               ----------        ----------

Commitments and contingencies                                                           -                 -

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                                           13,146,308        13,106,970
                                                                               ----------        ----------

   Stockholders' equity:
        Common stock, $1 par value;
         25,000,000 shares authorized;
         1,574,894 and 1,561,450
         shares issued and outstanding                                          1,574,894         1,561,450
        Paid-in capital                                                        14,548,831        14,419,609
        Net unrealized gain on
           available-for-sale securities                                          140,178           146,706
        Accumulated undistributed net income                                    1,966,648         2,076,140
                                                                                ---------         ---------

           Total stockholders' equity                                          18,230,551        18,203,905
                                                                               ----------        ----------

           Total liabilities and stockholders' equity                         $64,439,782       $57,647,555
                                                                              ===========       ===========

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

                                                Three Months Ended
                                                     March 31,
                                               1998           1997
                                               ----           ----
Revenues:
   Rental income                         $1,523,538        $1,338,958
   Interest from related parties            205,620           209,699
   Interest and other income                 15,798            17,534
                                             ------            ------
                                          1,744,956         1,566,191
                                          ---------         ---------
Expenses:
   Depreciation and amortization            298,201           250,350
   Interest - mortgages payable             424,776           392,780
   Interest - bank                          110,611            41,984

   Leasehold rent                           72,208             72,208
   General and administrative              152,674            163,059
                                           -------            -------
                                         1,058,470            920,381
                                         ---------            -------

Income before minority interest            686,486            645,810

Minority interest                                -             (6,604)
                                           -------             ------ 

Net income                             $   686,486        $   639,206
                                       ===========        ===========

Calculation of net income applicable
 to common stockholders:
Net income                             $   686,486        $   639,206
Less: dividends and accretion
   on preferred stock                      362,848            362,379
                                           -------            -------

Net income applicable to
   common stockholders                 $   323,638       $    276,827
                                       ===========       ============

Weighted average number of
 common shares outstanding:
     Basic                               1,574,296          1,489,327
                                         =========          =========
     Diluted                             1,576,401          1,498,479
                                         =========          =========

Net income per common share (Note 2):
     Basic                             $       .21       $        .19
                                       ===========       ============
     Diluted                           $       .21       $        .18
                                       ===========       ============

Cash distributions per share:

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

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

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

                   For the three month period ended March 31,
                    1998 and the year ended December 31, 1997
                                   (Unaudited)

                                                                             Net Unrealized
                                                                             Gain (loss) on   Accumulated
                                                Common         Paid-in       Available-for-   Undistributed
                                                Stock          Capital      Sale Securities   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                                             -                 -                -          686,486            686,486
Distributions -
   common stock                                        -                 -                -         (472,468)          (472,468)
Distributions -
   preferred stock                                     -                 -                -         (323,510)          (323,510)
Accretion on
   preferred stock                                     -           (39,338)               -                -            (39,338)
Shares issued through
   dividend reinvestment
   plan                                           13,444           168,560                -                -            182,004
Net unrealized loss
   on available-for-sale
   securities                                          -                 -           (6,528)               -             (6,528)
                                                  ------           -------            ------           -----             ------ 

Balances,
   March 31, 1998                             $1,574,894       $14,548,831       $   140,178     $ 1,966,648            $18,230,551
                                              ==========       ===========       ===========     ===========            ===========

        See accompanying notes to consolidated financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
                                                                                   Three Months Ended
                                                                                        March 31,
                                                                                        ---------
                                                                                 1998              1997
                                                                                 ----              ----
Cash flows from operating activities:
   Net income                                                                $  686,486        $  639,206
   Adjustments to reconcile net income
     to net cash provided by operating activities::
   (Increase) in rental income from straight-lining of rent                    (123,072)          (89,553)
   Depreciation and amortization                                                298,201           250,350
   Minority interest                                                                  -             6,604
   Changes in assets and liabilities:
   (Increase) in rent, interest,
     deposits and other receivables                                              (3,278)          (39,555)
   Increase (decrease) in accrued expenses and other liabilities               (103,463)           64,062
                                                                               --------            ------
           Net cash provided by operating activities                            754,874           831,114
                                                                                -------           -------

Cash flows from investing activities:
   Additions to real estate                                                  (6,712,622)                -
   Net proceeds from sale of real estate                                              -           236,920
   Collection of mortgages receivable -
     (including $70,193 and $27,792
      from related parties)                                                      77,250            32,756
   Payments to minority interest by subsidiary                                        -            (6,600)
   Other                                                                              -            31,000
                                                                                -------            ------

           Net cash (used in) provided by investing activities               (6,635,372)          294,076
                                                                             ----------           -------

Cash flows from financing activities:
   Proceeds from mortgages payable                                           4,525,000          1,600,000
   Repayment of mortgages payable                                              (79,327)           (61,027)
   Proceeds from bank borrowings, net of repayments                          2,380,000         (2,549,374)
   Payment of financing costs                                                 (251,490)           (31,641)
   Cash distributions - common stock                                          (468,435)          (442,093)
   Cash distributions - preferred stock                                       (323,510)          (323,510)
   Issuance of shares through
     dividend reinvestment plan                                                182,004            195,864
                                                                               -------            -------

           Net cash provided by (used in) financing activities               5,964,242         (1,611,781)

           Net  increase (decrease) in cash
               and cash equivalents                                            83,744            (486,591)

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

Cash and cash equivalents at end of period                                 $1,690,108          $1,991,989
                                                                           ==========          ==========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                        $  578,643         $   409,455
   Cash paid during the period for income taxes                                 4,663              25,662
                  
           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 March
31, 1998 and for the three  months  ended  March 31,  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  three  months  ended  March  31,  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 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 128 requirements.

For the three months ended March 31, 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 three months ended March 31, 1998 and
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 (2,105 and 9,152 for the three months ended 1998
and 1997, respectively) using the treasury stock method. The Preferred Stock was
not considered for the purpose of computing  diluted  earnings per share because
their  assumed  conversion  is  antidilutive.  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 options' exercise price was greater than the average market price of
the Common Stock and,  therefore,  the effect would be antidilutive.  See Note 4
for  information  regarding a Registration  Statement filed February 1998 by the
Company with the  Securities  and Exchange  Commission  with respect to a rights
offering made to its stockholders.

Note 3 - Preferred and Common Stock Dividend Distributions

On March 4, 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 April 1, 1998 to  stockholders  of record on March 18,
1998.

Note 4 - Registration Statement

On February  10,  1998,  the Company  filed a  Registration  Statement  with the
Securities and Exchange  Commission ("SEC") with respect to a rights offering to
its stockholders.  The Registration  Statement was declared effective by the SEC
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 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 is being
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 will expire on June 15, 1998.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 5 - 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  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 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 131, but does not anticipate  that the adoption of this statement will
have a significant effect on the Company's reported segments.
Item 2.  Management's Discussion and Analysis of Financial
            Condition and Results of Operations

Liquidity and Capital Resources

The Company's  primary  sources of liquidity are cash  generated  from operating
activities, cash and cash equivalents,  funds available under a revolving credit
facility (of which approximately $2,015,000 was available at March 31, 1998) and
funds obtainable from mortgages to be secured by real estate investments.

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 can 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  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 Credit
Agreement until February 29, 2000.

The Company is currently in discussions concerning 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,  as well as funds  available under the Credit
Agreement,  provide funds for future property  acquisitions.  In April, 1998 the
Company  commenced a Rights  Offering to its  stockholders.  Funds raised in the
Rights  Offering  will be used to pay down the existing  outstanding  borrowings
under the Credit Agreement and for 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 March  31,  1998,  there  are two
locations which require additional remediation efforts. The Company believes the
$800,000  held by the escrow  agent  will be  adequate  to cover any  additional
environmental costs at the Total Petroleum locations.
Results of Operations

Three months ended March 31, 1998 and 1997

Rental  income  increased by $184,580 to  $1,523,538  for the three months ended
March 31, 1998 as compared to the three  months  ended March 31, 1997  resulting
primarily from the 1997  acquisition of two properties and offset in part by the
sale of a property during 1997.

A $47,851 increase in depreciation and amortization  expense to $298,201 results
primarily from  depreciation on the two properties  acquired during 1997, offset
in part by the sale of one property during 1997.

The increase in interest-mortgages payable from $392,780 in the 1997 three month
period to $424,776 in the 1998 three month period is due to a mortgage placed on
one of the properties  acquired  during 1997,  offset in part by the sale of one
property during 1997.

Interest-bank note payable amounted to $110,611 and $41,984 for the three months
ended March 31, 1998 and 1997, respectively, resulting from borrowings under the
Credit  Agreement.  Borrowings  were  made to  facilitate  the  purchase  of two
properties in 1997.
Part II - Other Information

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

On April 9,  1998,  the  Company  filed a  current  report on Form 8-K with the
Securities  and Exchange  Commission to report the  acquisition  of the property
located at 300 Gold Street,  Brooklyn,  New York by a limited liability company,
of which the Company is a 95% member.  The purchase price was $6,700,000,  which
was paid in part by a new  $4,525,000  mortgage  from  North  Fork  Bank and the
balance was paid by an advance under the Company's line of credit.
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)

May 13, 1998                /s/ Matthew Gould
------------                -----------------
 Date                       Matthew Gould
                            President

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