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, 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.

            As of May 1, 1997, the Registrant had 1,505,729 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

                                                 March 31,      December 31,
                                                   1997               1996      
                                                   ----               ----      
                                                (Unaudited)
<S>                                            <C>               <C>                             
Assets
   Real estate investments, at cost                                   
     Land                                      $10,799,932       $11,040,590
     Buildings                                  33,590,512        33,695,317
                                                ----------        ----------
                                                44,390,444        44,735,907
           Less accumulated depreciation         1,991,712         1,846,694
                                                 ---------         ---------
                                                42,398,732        42,889,213
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related parties)                         6,016,277         6,049,033
   Cash and cash equivalents                     1,991,989         2,478,580
   Unbilled rent receivable                        394,381           304,828
   Rent, interest, deposits and
        other receivables                           85,582            66,908
   Investment in BRT Realty Trust-
        (related party)                            206,580           199,068
   Deferred financing costs                        484,492           480,640
   Other                                            75,599            54,718
                                                    ------            ------

           Total assets                        $51,653,632       $52,522,988
                                               ===========       ===========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                      $18,385,894       $16,846,921
        Note payable-bank                        1,350,626         3,900,000
        Accrued expenses and other liabilities     539,171           475,109
        Dividends payable                          770,360           765,603
                                                   -------           -------

           Total liabilities                    21,046,051        21,987,633
                                                ----------        ----------

Commitments and contingencies                            -                 -

Minority interest in subsidiary                    141,726           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         12,989,661        12,950,792
                                                ----------        ----------

   Stockholders' equity:
        Common stock, $1 par value;
         25,000,000 shares authorized;
         1,489,501 and 1,473,642
         shares issued and outstanding           1,489,501         1,473,642
        Paid-in capital                         13,791,873        13,650,737
        Net unrealized gain on
           available-for-sale securities           105,185            97,673

        Accumulated undistributed net income     2,089,635         2,220,789
                                                 ---------         ---------

     Total stockholders' equity                 17,476,194        17,442,841
                                                ----------        ----------

     Total liabilities and stockholders'equity $51,653,632       $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
                                                        March 31,
                                                  1997             1996
                                                  ----             ----
<S>                                           <C>              <C>
Revenues:
   Rental income                              $1,338,958       $   743,563
   Interest from related parties                 209,699           292,970
   Interest and other income                      17,534            57,937
                                                  ------            ------
                                               1,566,191         1,094,470
                                               ---------         ---------
Expenses:
   Depreciation and amortization                 250,350           126,082
   Interest - mortgages payable                  392,780           143,544
   Interest - bank                                41,984                 -
   Leasehold rent                                 72,208            72,208
   General and administrative                    163,059           176,172
                                                 -------           -------
                                                 920,381           518,006
                                                 -------           -------

Operating income before minority interest
   in earnings of subsidiary                     645,810           576,464

Minority interest in earnings of subsidiary       (6,604)                -
                                                  ------           -------          

Net income                                    $  639,206        $  576,464
                                              ==========        ==========

Calculation of net income applicable
   to common stockholders:
Net income                                    $  639,206        $  576,464
Less: dividends and accretion
   on preferred stock                            362,379           361,916
                                                 -------           -------

Net income applicable to
   common stockholders                        $  276,827        $  214,548
                                              ==========        ==========

Weighted average number of
   common shares outstanding                   1,489,327         1,421,064
                                               =========         =========

Net income per common share (Note 2)          $      .19        $      .15
                                              ==========        ==========

Cash distributions per share:

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

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





            See accompanying notes to consolidated financial statements.


</TABLE>


<PAGE>

<TABLE>
                                            ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                                           CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
<CAPTION>
                                           For the three month period ended March 31, 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                                             -                 -                -          639,206            639,206
Distributions -
   common stock                                        -                 -                -         (446,850)          (446,850)
Distributions -
   preferred stock                                     -                 -                -         (323,510)          (323,510)
Accretion on
   preferred stock                                     -           (38,869)               -                -            (38,869)
Shares issued through
   dividend reinvestment
   plan                                           15,859           180,005                -                -            195,864
Net unrealized gain
   on available-for-sale
   securities                                          -                 -            7,512                -              7,512
                                                  ------            ------            -----          -------              ----- 

Balances,
   March 31, 1997                            $ 1,489,501       $13,791,873      $   105,185      $ 2,089,635        $17,476,194
                                             ===========       ===========      ===========      ===========        ===========


       See accompanying notes to consolidated financial statements.

 </TABLE>




<PAGE>

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

                                                                                                Three Months Ended March 31,
                                                                                                 1997                  1996
                                                                                                 ----                  ----
<S>                                                                                         <C>                  <C>          
Cash flows from operating activities:
   Net income                                                                               $   639,206          $   576,464
   Adjustments to reconcile net income
     to net cash provided by operating activities:
   (Increase) in rental income from straight-lining of rent                                    (89,553)                    -
   Depreciation and amortization                                                               250,350               136,556
   Minority interest in earnings of subsidiary                                                   6,604                     -
   Changes in assets and liabilities:
   (Increase) decrease in rent, interest,
     deposits and other receivables                                                            (39,555)              106,887
   Increase in accrued expenses
     and other liabilities                                                                      64,062                11,646
                                                                                                ------                ------

           Net cash provided by operating activities                                           831,114               831,553
                                                                                               -------               -------

Cash flows from investing activities:
   Sale of real estate                                                                         236,920                     -
   Collection of mortgages receivable -
     (including $27,792 and $884,099
      from related parties)                                                                     32,756               891,157
   Collection of senior secured note
      receivable - BRT Realty Trust - related party                                                  -                93,008
   Sale of U.S. Government
     obligations and securities, net                                                                 -               (27,731)
   Other                                                                                        24,400                     -
                                                                                                ------                -------      

           Net cash provided by investing activities                                           294,076               956,434
                                                                                               -------               -------
 
Cash flows from financing activities:
   Proceeds from mortgages payable                                                           1,600,000                     -
   Repayment of mortgages payable                                                              (61,027)              (20,693)
   Repayments on note payable-bank                                                          (2,549,374)                    -
   Payment of financing costs                                                                  (31,641)              (79,972)
   Exercise of stock options                                                                         -               205,312
   Cash distributions - common stock                                                          (442,093)             (424,836)
   Cash distributions - preferred stock                                                       (323,510)             (323,510)
   Issuance of shares through
     dividend reinvestment plan                                                                195,864                     -
                                                                                               -------              --------        

           Net cash (used in) financing activities                                          (1,611,781)             (643,699)
                                                                                            ----------              -------- 

           Net (decrease) increase in cash
               and cash equivalents                                                           (486,591)            1,144,288

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

Cash and cash equivalents at end of period                                                  $1,991,989            $4,988,697
                                                                                            ==========            ==========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                                        $   409,455           $   136,951
   Cash paid during the period for income taxes                                                 25,662                58,597

Supplemental schedule of noncash
   investing and financing activities:
   Accretion on preferred stock                                                                 38,869                38,406

            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, 1997 and for the three months ended March 31,1997 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  three  months  ended  March  31,  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 three  month
periods ended March 31, 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.

     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,


<PAGE>

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

     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  March  4,  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 April 1, 1997 to stockholders of record on March
17, 1997.


<PAGE>


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

Liquidity and Capital Resources
-------------------------------

     At March 31, 1997,  the Company's  primary  sources of liquidity  were cash
generated from operating activities,  approximately  $1,992,000 in cash and cash
equivalents and a $5,000,000  revolving credit agreement  (discussed  below), of
which  $3,649,374  was available at March 31, 1997.  Long term debt at March 31,
1997 consisted of  $18,385,894 of mortgages  payable which is secured by certain
real estate  investments.  At May 12, 1997 $1,050,626 was outstanding  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").  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.
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.  The  Company is
currently  negotiating  with  several  banks to  increase  the  facility  to the
maximum.  At March 31,  1997,  one  institution  has  expressed  an  interest in
participating to the extent of $4,000,000.

     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  and from the  anticipated  inclusion  of  other  banks in 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  $1,244,000 as of March 31, 1997 which the Company deems  adequate
to cover any additional environmental costs.






<PAGE>

Results of Operations
 

Three months ended March 31, 1997 and 1996
------------------------------------------

     As a result of the Company's acquisition of five properties in 1996, rental
income  increased by $595,395 to $1,338,958 for the three months ended March 31,
1997  from   $743,563  for  the  three   months   ended  March  31,  1996.   The
straight-lining   of  rents  during  the  three  months  ended  March  31,  1997
contributed $89,553 to the increase in rental income.

     The  decrease in interest  income from  related  parties of $83,271 for the
three months ended March 31, 1997 from $292,970 for the three months ended March
31, 1996 to $209,699 for the three months ended March 31, 1997 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 $17,534 for the three months ended
March  31,  1997  from  $57,937  for the three  months  ended in March 31,  1996
primarily  due to 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.

     A $124,268  increase in depreciation and  amortization  expense to $250,350
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  from  $143,544 in the three
months ended March 31, 1996 to $392,780 in the three months ended March 31, 1997
is due to  interest  paid  on  mortgages  placed  in  connection  with  property
acquisitions  during  1996.  Interest - bank note  payable  amounted  to $41,984
during the three months ended March 31, 1997 resulting from borrowings under the
revolving credit agreement.

     General and administrative  costs of $163,059 reflect a decrease of $13,113
from the prior  period  expense of  $176,172  and results  substantially  from a
decrease in income tax provisions.
<PAGE>



                                    Part II - Other Information

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

No Form 8-Ks were filed during the quarter ended March 31, 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)
                                   






May 14, 1997               /s/ Matthew Gould 
------------               -----------------  
 Date                      Matthew Gould
                           President





May 14, 1997               /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": 29400}]
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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, 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.

            As of May 1, 1997, the Registrant had 1,505,729 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,
                                                   1997               1996      
                                                   ----               ----      
                                                (Unaudited)
Assets
   Real estate investments, at cost                                   
     Land                                      $10,799,932       $11,040,590
     Buildings                                  33,590,512        33,695,317
                                                ----------        ----------
                                                44,390,444        44,735,907
           Less accumulated depreciation         1,991,712         1,846,694
                                                 ---------         ---------
                                                42,398,732        42,889,213
   Mortgages receivable-less unamortized
        discount-(substantially all from
        related parties)                         6,016,277         6,049,033
   Cash and cash equivalents                     1,991,989         2,478,580
   Unbilled rent receivable                        394,381           304,828
   Rent, interest, deposits and
        other receivables                           85,582            66,908
   Investment in BRT Realty Trust-
        (related party)                            206,580           199,068
   Deferred financing costs                        484,492           480,640
   Other                                            75,599            54,718
                                                    ------            ------

           Total assets                        $51,653,632       $52,522,988
                                               ===========       ===========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                      $18,385,894       $16,846,921
        Note payable-bank                        1,350,626         3,900,000
        Accrued expenses and other liabilities     539,171           475,109
        Dividends payable                          770,360           765,603
                                                   -------           -------

           Total liabilities                    21,046,051        21,987,633
                                                ----------        ----------

Commitments and contingencies                            -                 -

Minority interest in subsidiary                    141,726           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         12,989,661        12,950,792
                                                ----------        ----------

   Stockholders' equity:
        Common stock, $1 par value;
         25,000,000 shares authorized;
         1,489,501 and 1,473,642
         shares issued and outstanding           1,489,501         1,473,642
        Paid-in capital                         13,791,873        13,650,737
        Net unrealized gain on
           available-for-sale securities           105,185            97,673

        Accumulated undistributed net income     2,089,635         2,220,789
                                                 ---------         ---------

     Total stockholders' equity                 17,476,194        17,442,841
                                                ----------        ----------

     Total liabilities and stockholders'equity $51,653,632       $52,522,988
                                               ===========       ===========

          See accompanying notes to consolidated financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                                (Unaudited)
Three Months Ended
                                                        March 31,
                                                  1997             1996
                                                  ----             ----
Revenues:
   Rental income                              $1,338,958       $   743,563
   Interest from related parties                 209,699           292,970
   Interest and other income                      17,534            57,937
                                                  ------            ------
                                               1,566,191         1,094,470
                                               ---------         ---------
Expenses:
   Depreciation and amortization                 250,350           126,082
   Interest - mortgages payable                  392,780           143,544
   Interest - bank                                41,984                 -
   Leasehold rent                                 72,208            72,208
   General and administrative                    163,059           176,172
                                                 -------           -------
                                                 920,381           518,006
                                                 -------           -------

Operating income before minority interest
   in earnings of subsidiary                     645,810           576,464

Minority interest in earnings of subsidiary       (6,604)                -
                                                  ------           -------          

Net income                                    $  639,206        $  576,464
                                              ==========        ==========

Calculation of net income applicable
   to common stockholders:
Net income                                    $  639,206        $  576,464
Less: dividends and accretion
   on preferred stock                            362,379           361,916
                                                 -------           -------

Net income applicable to
   common stockholders                        $  276,827        $  214,548
                                              ==========        ==========

Weighted average number of
   common shares outstanding                   1,489,327         1,421,064
                                               =========         =========

Net income per common share (Note 2)          $      .19        $      .15
                                              ==========        ==========

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, 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                                             -                 -                -          639,206            639,206
Distributions -
   common stock                                        -                 -                -         (446,850)          (446,850)
Distributions -
   preferred stock                                     -                 -                -         (323,510)          (323,510)
Accretion on
   preferred stock                                     -           (38,869)               -                -            (38,869)
Shares issued through
   dividend reinvestment
   plan                                           15,859           180,005                -                -            195,864
Net unrealized gain
   on available-for-sale
   securities                                          -                 -            7,512                -              7,512
                                                  ------            ------            -----          -------              ----- 

Balances,
   March 31, 1997                            $ 1,489,501       $13,791,873      $   105,185      $ 2,089,635        $17,476,194
                                             ===========       ===========      ===========      ===========        ===========

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

                                                                                                Three Months Ended March 31,
                                                                                                 1997                  1996
                                                                                                 ----                  ----
Cash flows from operating activities:
   Net income                                                                               $   639,206          $   576,464
   Adjustments to reconcile net income
     to net cash provided by operating activities:
   (Increase) in rental income from straight-lining of rent                                    (89,553)                    -
   Depreciation and amortization                                                               250,350               136,556
   Minority interest in earnings of subsidiary                                                   6,604                     -
   Changes in assets and liabilities:
   (Increase) decrease in rent, interest,
     deposits and other receivables                                                            (39,555)              106,887
   Increase in accrued expenses
     and other liabilities                                                                      64,062                11,646
                                                                                                ------                ------

           Net cash provided by operating activities                                           831,114               831,553
                                                                                               -------               -------

Cash flows from investing activities:
   Sale of real estate                                                                         236,920                     -
   Collection of mortgages receivable -
     (including $27,792 and $884,099
      from related parties)                                                                     32,756               891,157
   Collection of senior secured note
      receivable - BRT Realty Trust - related party                                                  -                93,008
   Sale of U.S. Government
     obligations and securities, net                                                                 -               (27,731)
   Other                                                                                        24,400                     -
                                                                                                ------                -------      

           Net cash provided by investing activities                                           294,076               956,434
                                                                                               -------               -------
 
Cash flows from financing activities:
   Proceeds from mortgages payable                                                           1,600,000                     -
   Repayment of mortgages payable                                                              (61,027)              (20,693)
   Repayments on note payable-bank                                                          (2,549,374)                    -
   Payment of financing costs                                                                  (31,641)              (79,972)
   Exercise of stock options                                                                         -               205,312
   Cash distributions - common stock                                                          (442,093)             (424,836)
   Cash distributions - preferred stock                                                       (323,510)             (323,510)
   Issuance of shares through
     dividend reinvestment plan                                                                195,864                     -
                                                                                               -------              --------        

           Net cash (used in) financing activities                                          (1,611,781)             (643,699)
                                                                                            ----------              -------- 

           Net (decrease) increase in cash
               and cash equivalents                                                           (486,591)            1,144,288

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

Cash and cash equivalents at end of period                                                  $1,991,989            $4,988,697
                                                                                            ==========            ==========

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                                        $   409,455           $   136,951
   Cash paid during the period for income taxes                                                 25,662                58,597

Supplemental schedule of noncash
   investing and financing activities:
   Accretion on preferred stock                                                                 38,869                38,406

            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, 1997 and for the three months ended March 31,1997 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  three  months  ended  March  31,  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 three  month
periods ended March 31, 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.

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

     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  March  4,  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 April 1, 1997 to stockholders of record on March
17, 1997.
Item 2.  Management's Discussion and Analysis of Financial
         -------------------------------------------------
           Condition and Results of Operations
           -----------------------------------  

Liquidity and Capital Resources
-------------------------------

     At March 31, 1997,  the Company's  primary  sources of liquidity  were cash
generated from operating activities,  approximately  $1,992,000 in cash and cash
equivalents and a $5,000,000  revolving credit agreement  (discussed  below), of
which  $3,649,374  was available at March 31, 1997.  Long term debt at March 31,
1997 consisted of  $18,385,894 of mortgages  payable which is secured by certain
real estate  investments.  At May 12, 1997 $1,050,626 was outstanding  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").  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.
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.  The  Company is
currently  negotiating  with  several  banks to  increase  the  facility  to the
maximum.  At March 31,  1997,  one  institution  has  expressed  an  interest in
participating to the extent of $4,000,000.

     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  and from the  anticipated  inclusion  of  other  banks in 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  $1,244,000 as of March 31, 1997 which the Company deems  adequate
to cover any additional environmental costs.
Results of Operations
 

Three months ended March 31, 1997 and 1996
------------------------------------------

     As a result of the Company's acquisition of five properties in 1996, rental
income  increased by $595,395 to $1,338,958 for the three months ended March 31,
1997  from   $743,563  for  the  three   months   ended  March  31,  1996.   The
straight-lining   of  rents  during  the  three  months  ended  March  31,  1997
contributed $89,553 to the increase in rental income.

     The  decrease in interest  income from  related  parties of $83,271 for the
three months ended March 31, 1997 from $292,970 for the three months ended March
31, 1996 to $209,699 for the three months ended March 31, 1997 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 $17,534 for the three months ended
March  31,  1997  from  $57,937  for the three  months  ended in March 31,  1996
primarily  due to 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.

     A $124,268  increase in depreciation and  amortization  expense to $250,350
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  from  $143,544 in the three
months ended March 31, 1996 to $392,780 in the three months ended March 31, 1997
is due to  interest  paid  on  mortgages  placed  in  connection  with  property
acquisitions  during  1996.  Interest - bank note  payable  amounted  to $41,984
during the three months ended March 31, 1997 resulting from borrowings under the
revolving credit agreement.

     General and administrative  costs of $163,059 reflect a decrease of $13,113
from the prior  period  expense of  $176,172  and results  substantially  from a
decrease in income tax provisions.
Part II - Other Information

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

No Form 8-Ks were filed during the quarter ended March 31, 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)
                                   

May 14, 1997               /s/ Matthew Gould 
------------               -----------------  
 Date                      Matthew Gould
                           President

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