SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

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

                   For the quarterly period ended June 30, 2002

                                       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 office)                  (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 August 7, 2002, the Registrant had 5,597,631 shares of
            Common Stock and 648,058 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
                      (Amounts in Thousands, Except Per Share Data)



                                                                                      June 30,         December 31,
                                                                                       2002               2001
                                                                                       ----               ----
                                                                                   (Unaudited)
<S>                                                                                 <C>                <C>

Assets
   Real estate investments, at cost
   Land                                                                             $  25,939          $  25,939
   Buildings                                                                          100,292            101,288
                                                                                    ---------          ---------
                                                                                      126,231            127,227
           Less accumulated depreciation                                                9,768              8,663
                                                                                    ---------          ---------
                                                                                      116,463            118,564

   Investment in unconsolidated joint ventures                                         13,436              6,345
   Cash and cash equivalents                                                           29,891              2,285
   Unbilled rent receivable                                                             2,787              2,442
   Rent, interest, deposits and other receivables                                       1,195              1,157
   Note receivable - officer                                                              166                167
   Investment in BRT Realty Trust-(related party)                                         413                361
   Deferred financing costs                                                             1,105              1,247
   Other   (including available-for-sale securities of
         $1,098 and $249)                                                               1,313                371
                                                                                     --------           --------

           Total assets                                                              $166,769           $132,939
                                                                                     ========           ========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                                                            $ 74,651          $  76,587
        Accrued expenses and other liabilities                                            831                827
        Dividends payable                                                               2,105              1,177
                                                                                     --------          ---------

           Total liabilities                                                           77,587             78,591
                                                                                     --------          ---------

Commitments and contingencies                                                               -                  -


Stockholders' equity:
        Redeemable convertible preferred stock, $1 par value; $1.60 cumulative
         annual dividend; 2,300 shares authorized; 648 shares issued;
         liquidation and
         redemption values of $16.50                                                   10,693             10,693
        Common stock, $1 par value; 25,000
         shares authorized; 5,593 and 3,058
         shares issued  and outstanding                                                 5,593              3,058
        Paid-in capital                                                                65,268             32,192
        Accumulated other comprehensive income - net
          unrealized gain on available-for-sale securities                                340                261
        Accumulated undistributed net income                                            7,288              8,144
                                                                                    ---------           --------

           Total stockholders' equity                                                  89,182             54,348
                                                                                    ---------           --------

           Total liabilities and stockholders' equity                                $166,769           $132,939
                                                                                     ========           ========




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

<PAGE>
<TABLE>
<CAPTION>


                  ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                  (Amounts in Thousands, Except Per Share Data)
                                   (Unaudited)

                                                                       Three Months Ended            Six Months Ended
                                                                             June 30,                     June 30,
                                                                   ---------------------------    -----------------------
                                                                      2002             2001          2002         2001
                                                                      ----             ----          ----         ----
<S>                                                                 <C>              <C>           <C>           <C>

Revenues:
   Rental income                                                    $ 3,631          $ 3,830       $ 7,283       $ 7,590
   Equity in earnings of unconsolidated joint ventures                  275                -           473             -
   Interest and other income                                            183               52           201            76
                                                                   --------         --------     ---------      --------
                                                                      4,089            3,882         7,957         7,666
                                                                   --------         --------      --------      --------
Expenses:
   Depreciation and amortization                                        699              727         1,423         1,446
   Interest - mortgages payable                                       1,501            1,477         3,003         2,750
   Interest - line of credit                                             19               38            28           231
   Leasehold rent                                                         -               72            24           144
   General and administrative                                           413              298           774           597
   Public offering expenses                                             105                -           125             -
   Real estate expenses                                                  31               52            64            89
                                                                   --------         --------      --------     ---------
                                                                      2,768            2,664         5,441         5,257
                                                                   --------         --------      --------      --------

Income before gain (loss) on sale                                     1,321            1,218         2,516         2,409
                                                                   --------         --------      --------      --------

(Loss) on sale of real estate                                             -              (46)            -           (46)
Gain (loss) on sale of available-for-sale securities                      6               (9)            8           (14)
                                                                  ---------         ---------     --------      ---------
                                                                          6              (55)            8           (60)
                                                                  ---------         ---------     --------      ---------

Net income                                                          $ 1,327          $ 1,163       $ 2,524       $ 2,349
                                                                   ========         ========      ========      ========

Calculation of net income applicable to common stockholders:
Net income                                                          $ 1,327          $ 1,163       $ 2,524       $ 2,349
Less: dividends on preferred stock                                      259              259           518           518
                                                                  ---------         --------      --------      --------

Net income applicable to
   common stockholders                                              $ 1,068         $    904       $ 2,006       $ 1,831
                                                                    =======         ========       =======       =======

Weighted average number of common shares outstanding:
     Basic                                                            4,129            3,016         3,600         3,013
                                                                      =====            =====         =====         =====
     Diluted                                                          4,168            3,026         3,637         3,020
                                                                      =====            =====         =====         =====

Net income per common share:
     Basic                                                        $     .26        $     .30     $     .56     $     .61
                                                                  =========        =========     =========     =========
     Diluted                                                      $     .26        $     .30     $     .55     $     .61
                                                                  =========        =========     =========     =========

Cash distributions per share:
   Common Stock                                                   $     .33        $     .30     $     .66     $     .60
                                                                  =========        =========     =========     =========
   Preferred Stock                                                $     .40        $     .40     $     .80     $     .80
                                                                  =========        =========     =========     =========


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

<PAGE>



<TABLE>
<CAPTION>


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

             For the six month period ended June 30, 2002 (unaudited)
                       and the year ended December 31, 2001
                             (Amounts in Thousands)

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

Balances, January 1, 2001              $10,693     $ 3,010       $31,650          $    76         $ 7,947         $53,376

Distributions -
   common stock                              -           -             -                -          (3,632)         (3,632)
Distributions -
   preferred stock                           -           -             -                -          (1,037)         (1,037)
Exercise of options                          -          33           368                -               -             401
Shares issued through
   dividend reinvestment plan                -          15           174                -               -             189
     Net income                              -           -             -                -           4,866           4,866
     Other comprehensive income-
      net unrealized gain on
      available-for-sale securities          -           -             -              185               -             185
                                                                                                                  -------
Comprehensive income                         -           -             -                -               -           5,051
                                    ----------   ---------     ---------        ---------       ---------        --------

Balances, December 31, 2001             10,693       3,058        32,192              261           8,144          54,348

Distributions -
   common stock                              -           -             -                -          (2,862)         (2,862)
Distributions -
   preferred stock                           -           -             -                -            (518)           (518)
Exercise of options                          -          25           303                -               -             328
Shares issued through public offering        -       2,500        32,644                -               -          35,144
Shares issued through
   dividend reinvestment plan                -          10           129                -               -             139
     Net income                              -           -             -                -           2,524           2,524
     Other comprehensive income-
      net unrealized gain on
      available-for-sale securities          -           -             -               79               -              79
                                                                                                                 --------
Comprehensive income                         -           -             -                -               -           2,603
                                        --------   -------     ---------          -------       ---------      ----------

Balances, June 30, 2002                $10,693     $ 5,593       $65,268          $   340         $ 7,288         $89,182
                                       =======     =======       =======        =========         =======         =======



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

<PAGE>

<TABLE>
<CAPTION>

                   ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (Amounts in Thousands)
                                 (Unaudited)


                                                                                                     Six Months Ended
                                                                                                          June 30,
                                                                                                 2002                 2001
                                                                                                 ----                 ----
<S>                                                                                            <C>                   <C>

Cash flows from operating activities:
   Net income                                                                                  $ 2,524               $ 2,349
   Adjustments to reconcile net income
     to net cash provided by operating activities:
   Loss on sale of real estate                                                                       -                    46
   (Gain) loss on sale of available-for-sale securities                                             (8)                   14
   Increase in rental income from straight-lining of rent                                         (345)                 (416)
   Equity in earnings of unconsolidated joint ventures                                            (473)                    -
   Distributions from unconsolidated joint ventures                                                464                     -
   Payments to minority interest by subsidiary                                                      (9)                  (11)
   Depreciation and amortization                                                                 1,423                 1,446
   Changes in assets and liabilities:
   (Increase) decrease in rent, interest, deposits and other receivables                          (129)                  124
   Increase (decrease) in accrued expenses and other liabilities                                    12                   (23)
                                                                                            ----------             ----------
           Net cash provided by operating activities                                             3,459                 3,529
                                                                                            ----------             ---------

Cash flows from investing activities:
   Additions to real estate                                                                          -                   (14)
   Investment in unconsolidated joint ventures                                                  (9,412)                    -
   Sale of portion of interest in unconsolidated joint venture                                   3,150                     -
   Net proceeds from sale of real estate                                                             -                   240
   Net proceeds from sale of available-for-sale securities                                         178                   184
   Purchase of available-for-sale securities                                                         -                  (132)
   Purchase of treasury bill                                                                      (992)                    -
                                                                                             ----------           ----------
           Net cash (used in) provided by investing activities                                  (7,076)                  278
                                                                                             ----------           ----------

Cash flows from financing activities:
   Proceeds from mortgages payable                                                                   -                13,600
   Repayment of mortgages payable                                                               (1,936)                 (538)
   Payment of financing costs                                                                        -                  (408)
   (Increase) decrease in line of credit borrowings, net                                             -               (10,000)
   Net proceeds from issuance of shares through public offering                                 35,144                     -
   Cash distributions - common stock                                                            (1,934)                 (903)
   Cash distributions - preferred stock                                                           (518)                 (259)
   Exercise of stock options                                                                       328                     -
   Issuance of shares through dividend reinvestment plan                                           139                    62
                                                                                             ---------             ---------
           Net cash provided by financing activities                                            31,223                 1,554
                                                                                              --------             ---------

           Net increase in cash and cash equivalents                                            27,606                 5,361

Cash and cash equivalents at beginning of period                                                 2,285                 2,069
                                                                                             ---------             ---------

Cash and cash equivalents at end of period                                                    $ 29,891               $ 7,430
                                                                                              ========               =======

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                                           $ 3,035                $ 3,008

Supplemental schedule of non-cash investing activities:
   Contribution of real property to unconsolidated joint venture                              $   819                $     -


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

<PAGE>


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

Note 1 - Basis of Preparation

The accompanying interim unaudited  consolidated financial statements as of June
30, 2002 and for the six and three  months  ended June 30, 2002 and 2001 reflect
all normal,  recurring  adjustments  which are,  in the  opinion of  management,
necessary for a fair  presentation of the results for such interim periods.  The
results of  operations  for the six and three months ended June 30, 2002 are not
necessarily indicative of the results for the full year.

The  preparation  of the  financial  statements in  conformity  with  accounting
principles  generally accepted in the United States requires  management to make
estimates  and  assumptions  that affect the amounts  reported in the  financial
statements  and  accompanying  notes.  Actual  results  could  differ from those
estimates.

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  balances and transactions have been
eliminated. The Company's investments in less than majority owned joint ventures
have been accounted for using the equity method. 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, 2001.

Note 2 - Earnings Per Common Share

For the six and three  months  ended June 30, 2002 and 2001 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.

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 six and three month  periods ended June
30, 2002 and 2001  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 (36,738 and 38,197 for the six and
three  months  ended  June 30,  2002 and 6,613 and  10,873 for the six and three
months ended June 30, 2001  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.





<PAGE>


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


Note 3 - Preferred and Common Stock Dividend Distributions

On June 10, 2002 the Board of Directors declared quarterly cash distributions of
$.33  and  $.40  per  share  on  the  Company's   common  and  preferred  stock,
respectively,  which was paid on July 3, 2002 to  stockholders of record on June
22, 2002.


Note 4 - Public Offering

On May 30, 2002, the Company sold 2,500,000 shares of common stock at $15.25 per
share in a follow-on  public  offering.  The net proceeds of  approximately  $35
million were used to repay the $6 million  outstanding  under the Company's line
of credit (that was borrowed to pay  substantially all of the Company's share of
the purchase price of two megaplex  stadium style movie theaters  purchased by a
joint  venture  in which the  Company is a 25%  participant),  and to repay $1.3
million of  outstanding  indebtedness  on two mortgage  loans that were maturing
during the year.  The  remainder of the net proceeds,  a substantial  portion of
which have been invested in cash  equivalents and Treasury  bills,  will be used
for working capital, general corporate purposes and other property acquisitions.


Note 5 - Investment in Unconsolidated Joint Ventures - Movie Theater
         Joint Venture

In November  2001,  the Company  entered  into a joint  venture  with  Greenwood
Properties, Corp., an affiliate of the real estate equity group of Deutsche Bank
AG, for the general  purpose of acquiring,  owning and financing  megaplex movie
theater  properties.  The Company invested  approximately $6.3 million for a 50%
participation  in the joint  venture,  which  acquired a megaplex  stadium-style
movie  theater.  In April 2002, the Company sold one-half of its 50% interest in
this joint venture to MTC Investors LLC, an unrelated  entity,  at a price which
approximated  our basis.  In April and May of 2002,  the joint venture  acquired
three  additional   megaplex  movie  theaters  for  a  total   consideration  of
approximately $36 million, of which the Company's share was 25% or approximately
$9 million. Venturers holding at least 75% of the aggregate membership interests
in this joint  venture  must  approve all material  decisions,  except  property
acquisitions which require unanimous approval.

The Company's investment in the movie theater joint venture,  which is accounted
for on the equity method,  was approximately  $12,347,000 and $6,345,000 at June
30, 2002 and December 31, 2001, respectively.





<PAGE>




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


Note 5 - Movie Theater  Unconsolidated Joint Venture (Continued)
         -------------------------------------------------------


The following table presents unaudited condensed balance sheets and operating
data for the joint venture:

<TABLE>
<CAPTION>

Condensed Balance Sheet Data                                    June 30, 2002             December 31, 2001
----------------------------                                    -------------             -----------------
<S>                                                             <C>                          <C>

Cash and cash equivalents                                       $    496,240                 $    172,408
Real estate investments, net                                      48,204,159                   12,494,935
Other assets (A)                                                     656,169                        7,676
Total assets                                                      49,356,568                   12,675,019
Other liabilities                                                     53,862                       39,195
Total equity                                                      49,302,706                   12,635,824


                                                              Three Months Ended           Six Months Ended
Condensed Operating Data                                       June 30, 2002(B)            June 30, 2002 (B)
------------------------                                       ----------------            -----------------


Rental income                                                      $1,009,437                   $1,419,789
                                                                   ----------                   ----------

Total revenue                                                       1,009,537                    1,419,889
                                                                  -----------                  -----------

Depreciation expense                                                  172,356                      234,987
Fees and other                                                          7,850                       13,891
                                                                  -----------                -------------

Total expenses                                                        180,206                      248,878
                                                                  -----------                 ------------

Net income attributable to members                                $   829,331                   $1,171,011
                                                                  ===========                   ==========

Company's share of net income                                     $   242,000                  $   413,000
                                                                  ===========                  ===========


(A) Other assets include unbilled rent receivable of $69,502 and $7,676
 at June 30, 2002 and December 31, 2001, respectively.

(B) The joint venture was formed in November 2001, therefore there is no
comparative data from June 30, 2001.

</TABLE>







<PAGE>


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


Note 6 - Comprehensive Income

Statement No. 130 establishes  standards for reporting  comprehensive income and
its  components  in a  full  set of  general-purpose  financial  statements  and
requires that all components of comprehensive  income be reported in a financial
statement  that is  displayed  with  the  same  prominence  as  other  financial
statements.  During the six and three months  ended June 30,  2002,  accumulated
other comprehensive  income, which is solely composed of the net unrealized gain
on  available-for-sale  securities,  increased  $79,000 and $14,000 to $340,000.
During  the six and  three  months  ended  June 30,  2001  comprehensive  income
increased $144,000 and $183,000 to $220,000.


Note 7  - Accounting for Long-Lived Assets

The Financial  Accounting  Standards Board issued  Statement No. 144 "Accounting
for the  Impairment of Long-Lived  Assets" which  supersedes  FASB Statement No.
121,  "Accounting  for the  Impairment of Long-Lived  Assets and for  Long-Lived
Assets to be Disposed of"; however it retains the fundamental provisions of that
statement  related to the  recognition  and  measurement  of the  impairment  of
long-lived assets to be "held and used". In addition, Statement No. 144 provides
more guidance on estimating  cash flows when performing a  recoverability  test,
requires that a long-lived  asset or asset group to be disposed of other than by
sale (e.g.  abandoned) be classified as "held and used" until it is disposed of,
and establishes more restrictive criteria to classify an asset or asset group as
"held for sale".  The Company  adopted SFAS 144 on January 1, 2002 and there was
no material effect on the earnings or the financial position of the Company.


Note 8  - New Accounting Pronouncement

The  Financial  Accounting  Standard  Board  issued  Statement  No.  145,  which
rescinded  Statement No. 4, "Reporting Gains and Losses from  Extinguishment  of
Debt." The  Company  adopted  SFAS 145 on May 15, 2002 and there was no material
effect on the earnings or the financial position of the Company.




<PAGE>


Item 2.  Management's Discussion And Analysis Of Financial Condition And
         ---------------------------------------------------------------
         Results Of Operations
         ---------------------

Forward-Looking Statements

With the exception of historical information,  this report on Form 10-Q contains
certain  forward-looking  statements  within the  meaning of Section  27A of the
Securities Act of 1933. We intend such forward-looking  statements to be covered
by the safe harbor  provision for  forward-looking  statements  contained in the
Private Securities  Litigation Reform Act of 1995 and include this statement for
purposes  of  complying  with  these  safe  harbor  provisions.  Forward-looking
statements,  which are based on  certain  assumptions  and  describe  our future
plans,  strategies and  expectations,  are generally  identifiable by use of the
words "may", "will", "believe",  "expect", "intend",  "anticipate",  "estimate",
"project",  or  similar  expressions  or  variations  thereof.   Forward-looking
statements  should not be relied on since they involve known and unknown  risks,
uncertainties and other factors which are, in some cases, beyond our control and
which could  materially  affect actual  results,  performance  or  achievements.
Investors  are  cautioned  not to place undue  reliance  on any  forward-looking
statements.

General

We are a  self-administered  REIT and we  primarily  own real estate that we net
lease to tenants. We own 33 properties and we are a member of two joint ventures
that own a total of five properties. Our 38 properties are located in 13 states.

We have  elected  to be taxed as a REIT  under the  Internal  Revenue  Code.  To
qualify  as a REIT,  we must meet a number  of  organizational  and  operational
requirements,  including a requirement that we currently distribute at least 90%
of ordinary taxable income to our  stockholders.  We intend to comply with these
requirements and to maintain our REIT status.

Our  principal  business  strategy  is  to  acquire  improved,   free  standing,
commercial properties subject to long-term net leases. We acquire properties for
their value as long-term  investments  and for their ability to generate  income
over an extended  period of time.  We borrow  funds on a secured  and  unsecured
basis to finance the  purchase of real estate and we intend to continue to do so
in the future.

Our rental  properties are generally leased to corporate tenants under operating
leases  substantially all of which are noncancellable.  Substantially all of our
lease agreements are net lease  arrangements  that require the tenant to pay not
only  rent but also  substantially  all the  operating  expenses  of the  leased
property,  including maintenance,  taxes, utilities and insurance. A majority of
our lease agreements provide for periodic rental increases; certain of our other
leases provide for increases based on the consumer price index.

In November  2001, we entered into a joint venture with an affiliate of Deutsche
Bank AG, which  acquired a megaplex  stadium-style  movie  theater.  We invested
approximately  $6.3 million for our 50%  participation in the joint venture.  In
April 2002,  we sold  one-half of our 50% interest in this joint  venture to MTC
Investors   LLC.  This  joint  venture   acquired  three   additional   megaplex
stadium-style movie theaters during April and May 2002 for a total consideration
of  approximately  $36 million.  During July 2002,  mortgage  financing of $28.9
million was completed on the four theaters owned by the joint venture. Venturers
holding at least 75% of the aggregate  membership interest in this joint venture
must approve all material  decisions,  except for  property  acquisitions  which
require unanimous approval. Under the joint venture operating agreement, we will
receive an acquisition  fee from the joint venture equal to 0.5% of the purchase
price of each property  acquired by the joint  venture,  other than the property
acquired in November 2001. In addition,  Majestic  Property  Management Corp., a
company  owned and  controlled  by our  chairman of the board and certain of our
officers, but in which we have no ownership interest,  will receive a management
fee equal to 1% of all rents  received by the joint  venture from  single-tenant
properties  and a management  fee equal to 3% of all rents received by the joint
venture from multi-tenant properties. Majestic will receive leasing and mortgage
brokerage fees at any property  acquired by the joint venture at a rate equal to
80% of  the  then  market  cost.  Majestic  will  also  receive  a  construction
supervision  fee equal to 8% of the cost of any capital  improvements or repairs
to the  property  and a sales  commission  equal to 1% of the sales price of any
properties that are sold.

In February  2002,  we  contributed  our  leasehold  interest  in an  industrial
property in Miami,  Florida to a joint venture with the owners of the fee estate
in that  property in exchange  for an  approximately  36%  interest in the joint
venture.

At June 30, 2002, we had 21 outstanding  mortgages  payable,  aggregating  $74.7
million  in  principal  amount,  all of which  are  secured  by  first  liens on
individual  real  estate   investments  with  an  aggregate  carrying  value  of
approximately $114 million before accumulated  depreciation.  The mortgages bear
interest at fixed rates ranging from 6.9% to 8.8%,  and mature  between 2003 and
2017.
<PAGE>

Results of Operations

Comparison of Six and Three Months Ended June 30, 2002 and  2001

Revenues

Our  revenues  consist  primarily  of rental  income from  tenants in our rental
properties. In the latter part of 2001 we made a decision to expand our business
activities by acquiring and owning  megaplex  stadium-style  movie  theaters net
leased to the operator,  in a joint venture (as described above).  Approximately
91.5% and 88.8%,  respectively,  of our  revenues  for the six and three  months
ended  June 30,  2002  consists  of rental  income  from  tenants  in our rental
properties and 5.9% and 6.7%, respectively, of our revenues represents equity in
the earnings of joint  ventures,  principally  the movie theater joint  venture.
There was no joint  venture  related  revenues in the six and three months ended
June 30, 2001.

Total  revenues for the six and three  months  ended June 30, 2002  increased by
$291,000, or 3.8%, from $7.7 million to $8 million, and by $207,000, or 5.3%, to
$4.1 million from $3.9 million for the six and three months ended June 30, 2001,
respectively.  Total  revenues  for the six and three months ended June 30, 2002
include  $413,000 and $242,000,  respectively,  representing our equity share of
the earnings of our movie theatre venture and $60,000 and $33,000, respectively,
representing  our equity share of the  earnings of a joint  venture that owns an
industrial building in Miami, Florida.

The increase in our revenues,  resulting primarily from our participation in the
movie theater joint  venture,  was offset in part by a decrease in rental income
from our rental properties.  Rental income decreased by $307,000, or 4%, to $7.3
million  for the six months  ended June 30,  2002 from $7.6  million for the six
months  ended June 30, 2001.  For the three  months ended June 30, 2002,  rental
income  decreased  $199,000,  or 5.2%, to $3.6 million from $3.8 million for the
three months ended June 30, 2001.  The rental income decline  includes  $177,000
and $106,000 for the six and three months ended June 30, 2002, primarily because
rental  income from an  industrial  property in Miami,  Florida,  the  leasehold
interest of which was  transferred  by us to a joint venture in February,  2002,
was not  included in rental  income for the entire six and three  month  periods
ended June 30, 2002. Our share of net earnings from this property,  now owned by
a joint venture in which we own an approximately  36% interest,  is reflected in
"Equity in earnings of unconsolidated joint ventures" from February 2002. Rental
income also  decreased by $144,000 and $94,000 in the six and three months ended
June 30,  2002 as a result of the sale of two small  retail  properties  and the
vacancy of two retail  properties  during such  periods.  This decline in rental
income was partially  offset by rent increases at three of our properties and an
increase in percentage rent collected.

Interest  and other  income  increased  by $125,000 and $131,000 to $201,000 and
$183,000  for the six and three  months  ended June 30,  2002 from  $76,000  and
$52,000 for the six and three  months  ended June 30,  2001.  This  increase was
substantially  due to net acquisition fees totaling  $134,000  received from our
movie theater joint venture  partners equal to 0.5% of the purchase price of the
three  properties  acquired by the joint venture during April and May 2002. This
net amount reflects a reduction based on our proportionate share of ownership in
the  joint  venture.  To a  lesser  extent,  this  increase  is also  due to the
investment in cash equivalents and Treasury bills of the balance  (approximately
$28 million) of the net proceeds  received  from the public  offering  which was
funded to the Company on May 30, 2002.

Expenses

Depreciation  and  amortization  expense  decreased  by $23,000  and  $28,000 to
$1,423,000  and  $699,000  for the six and three months ended June 30, 2002 from
$1,446,000  and $727,000  for the six and three months ended June 30, 2001.  The
change  was  relatively   insignificant   because  our  mix  of  properties  was
substantially the same during the two comparative periods.

Interest-mortgages  payable increased by $253,000 and $24,000, or 9.2% and 1.6%,
to $3 million and $1.5  million for the six and three months ended June 30, 2002
from $2.8  million and $1.5  million for the six and three months ended June 30,
2001.  This increase  resulted from mortgages  placed on two  properties  during
March and April 2001.

Interest-line  of credit  decreased by $203,000 and $19,000,  or 88% and 50%, to
$28,000  and  $19,000  for the six and three  months  ended  June 30,  2002 from
$231,000  and $38,000 for the six and three  months  ended June 30,  2001.  This
decrease  resulted  from our  repayment of all of the  outstanding  indebtedness
under  our line of  credit  during  2001.  This  indebtedness  was  incurred  to
facilitate the purchase of several  properties during 2000, and was repaid using
the proceeds from mortgage  financings on two properties  during March and April
2001. To facilitate the purchase of two theaters  through our joint venture,  we
borrowed $6 million  under our line of credit  during May 2002,  which we repaid
with a portion of the proceeds received from the public offering.

Leasehold  rent expense  decreased  by $120,000 and $72,000,  or 83% and 100% to
$24,000 and zero for the six and three months ended June 30, 2002 from  $144,000
and $72,000 for the six and three months ended June 30, 2001.  This rent expense
was  payable on the  leasehold  interest  position  that we  contributed  during
February 2002 to a joint venture in which we hold an approximately 36% interest.
Therefore, effective February 2002, we no longer paid the leasehold rent.

General and administrative  expenses  increased $177,000 and $115,000,  or 29.6%
and 38.6%,  to $774,000 and $413,000 for the six and three months ended June 30,
2002 from  $597,000  and  $298,000  for the six and three  months ended June 30,
2001.  This  increase  was  primarily  due to  increases  in  payroll  and fees,
including approximately $73,000 and $61,000 for the current six and three months
of payroll and related  expenses of executive and support  personnel,  primarily
for legal and accounting  services allocated to us pursuant to a Shared Services
Agreement between us and related entities. The increase in the allocated payroll
expenses resulted from an increase in our level of business activity,  primarily
property acquisition  activity.  The increase in payroll expenses is also due to
compensation  and fees  approved  by our  compensation  committee  and  board of
directors and recorded  during the six and three months ended June 30, 2002 (and
will  continue to be recorded  during future  quarters):  an increase of $50,000
($12,500  per  quarter) in the base salary and a bonus of $50,000  ($12,500  per
quarter) to our president and chief  executive  officer and a fee of $50,000 per
annum ($12,500 per quarter) to the chairman of our board of directors.

On May 30,  2002,  we sold 2.5  million  shares of Common  Stock in a  follow-on
public offering.  Allocated payroll and payroll related expenses,  primarily for
legal and accounting  services resulting from time expended by various executive
and administrative  personnel in connection with the preparation and filing of a
Registration  Statement  on Form S-2,  declared  effective by the SEC on May 24,
2002 have been  included in the line item  "Public  Offering  Expenses",  all of
which are nonrecurring.

Real estate  expenses  decreased by $25,000 and $21,000,  or 28.1% and 40.4%, to
$64,000  and  $31,000  for the six and three  months  ended  June 30,  2002 from
$89,000 and  $52,000  for the six and three  months  ended June 30,  2001.  This
decrease  was  primarily  due  to  the  write  off  of  a  leasing   commission,
non-recurring  landlord  repairs and certain  real estate  taxes not rebilled to
tenants during the six and three months ended June 30, 2001.

Liquidity and Capital Resources

We had cash and cash  equivalents of $29.9 million at June 30, 2002. Our primary
sources  of  liquidity  are cash  and cash  equivalents,  our  revolving  credit
facility  and cash  generated  from  operating  activities,  including  mortgage
financings.  We maintain a $15 million  revolving  credit facility with Citibank
N.A. The facility is available to us to pay down  existing  mortgages or to fund
the  acquisition  of additional  properties.  The facility  matures on March 24,
2003.  Borrowings  under the  facility  bear  interest at the bank's prime rate,
currently  4.75%,  and there is an unused  facility fee of one-quarter of 1% per
annum.  Net proceeds  received from the sale or  refinancing  of properties  are
required to be used to repay amounts  outstanding under the facility if proceeds
from the facility were used to purchase or refinance the property.  The facility
is guaranteed by all of our subsidiaries that own unencumbered properties and is
secured by the outstanding stock of all of our subsidiaries. At June 30, 2002 we
had no indebtedness outstanding under the facility. We are currently negotiating
for an increased credit facility.

On May 30, 2002, we sold 2.5 million  shares of Common Stock at $15.25 per share
in a follow-on  public offering.  The net proceeds of approximately  $35 million
(after underwriting commissions and expenses of the offering) were used to repay
the $6 million outstanding under the line of credit and outstanding indebtedness
under two mortgage loans related to two of our properties  totaling $1.3 million
that were maturing during the year. The balance of the net proceeds will be used
for  working  capital,   general  corporate  purposes  and  for  other  property
acquisitions.  At June 30, 2002 a  substantial  portion of the net  proceeds was
invested in cash equivalents and Treasury bills.

We, on our own behalf and on behalf of our megaplex  theater joint venture,  are
involved in various stages of negotiation,  due diligence and documentation with
respect  to the  acquisition  of  additional  net leased  properties.  The joint
venture will only acquire movie theater  properties.  We will use the balance of
the  proceeds  of the  offering  (presently  invested  in cash  equivalents  and
Treasury  bills),  cash provided from operations and our credit facility to fund
acquisitions.  We and the joint  venture seek and will continue to seek mortgage
financing  secured by  properties  owned and to be acquired.  In July 2002,  the
joint venture closed on a first  mortgage loan of $28.9 million  secured by four
megaplex stadium movie theater properties previously acquired by it. We received
approximately $7.1 million from this financing, which will be used in additional
to cash available of $29.5 million to acquire additional properties.

The following sets forth our contractual  cash  obligations as of June 30, 2002,
all of which relate to scheduled  principal  and interest  payments and balances
due at maturity under outstanding  mortgages secured by our properties,  for the
periods indicated:

<TABLE>
<CAPTION>



                                                                   Principal            Balances Due
                                             Total               and Interest            at Maturity
                                             -----               ------------            -----------
        <S>                               <C>                    <C>                    <C>

        Due within 1 year                 $ 10,891,000           $  6,673,000           $ 4,218,000
        Due 1 to 3 years                    27,861,000             12,146,000            15,715,000
        Due 4 to 5 years                    17,174,000              9,464,000             7,710,000
        Due after 5 years                   53,770,000             19,111,000            34,659,000

</TABLE>

As of June 30, 2002, we had outstanding approximately $74.7 million in long-term
mortgage  indebtedness,  all of  which  is  non-recourse  (subject  to  standard
carve-outs). We expect that debt service payments of approximately $18.8 million
due in the next three years will be paid  primarily from cash generated from our
operations.  We anticipate that loan maturities of  approximately  $19.9 million
due in the next three years will be paid primarily  from mortgage  financings or
refinancings.  If we are not successful in refinancing our existing indebtedness
or financing our unencumbered  properties,  our cash flow and available cash, if
any, will not be sufficient to repay all maturing debt when payments become due,
and we may be forced to sell  additional  equity or  dispose  of  properties  on
disadvantageous terms.

We  had  no   outstanding   contingent   commitments,   such  as  guarantees  of
indebtedness, or any other contractual cash obligations at June 30, 2002.

Since  completion  of the public  offering on May 30, 2002, we have expanded our
investment activities independently and through our movie theater joint venture.
In the  ordinary  course of our  business we are  involved in varying  levels of
discussions,  negotiation,  due diligence and documentation  with respect to the
acquisition  of  additional  properties.  After our use of the  public  offering
funds,  continuation  of our  expansion  program  will  depend on our ability to
obtain a significant amount of additional capital, either through increased debt
or additional equity or through increased  reliance on joint ventures with third
parties.

Cash Distribution Policy

We have elected to be taxed as a REIT under the Internal  Revenue Code since our
taxable  year ended  December  31,  1983.  To qualify as a REIT,  we must meet a
number of organizational and operational  requirements,  including a requirement
that we distribute  currently at least 90% of our ordinary taxable income to our
stockholders.  It is our current intention to comply with these requirements and
maintain  our REIT  status.  As a REIT,  we  generally  will not be  subject  to
corporate  federal,  state or local income taxes on taxable income we distribute
currently  (in  accordance  with  the  Internal   Revenue  Code  and  applicable
regulations) to our stockholders. If we fail to qualify as a REIT in any taxable
year,  we will be subject to federal,  state and local  income  taxes at regular
corporate rates and may not be able to qualify as a REIT for four subsequent tax
years.  Even if we qualify for federal  taxation as a REIT, we may be subject to
certain  state and local  taxes on our income  and to federal  income and excise
taxes on our undistributed  taxable income, i.e., taxable income not distributed
in the amounts and in the time frames  prescribed  by the Internal  Revenue Code
and applicable regulations thereunder.

It is our  intention  to  pay  to  our  stockholders  within  the  time  periods
prescribed by the Internal Revenue Code no less that 90%, and, if possible, 100%
of our annual taxable  income,  including gains from the sale of real estate and
recognized  gains on sale of  securities.  It will  continue to be our policy to
make sufficient cash  distributions  to stockholders in order for us to maintain
our REIT status under the Internal Revenue Code.



<PAGE>




Item 3. - Quantitative and Qualitative Disclosures About Market Risks

All of our long-term debt bears interest at fixed rates,  and therefore the fair
value of these  instruments is affected by changes in the market interest rates.
The following table presents scheduled principal  repayments based upon maturity
dates of the debt obligations and the related weighted-average interest rates by
expected maturity dates for the fixed rate debt.


                            Scheduled
                            Principal
  Year Ending              Repayments                 Average
   June 30,              (In Thousands)            Interest Rate
   --------              -------------             -------------

     2003                   $  5,395                   7.85%
     2004                      8,647                   7.92
     2005                      9,417                   7.95
     2006                      6,819                   7.99
     2007                      3,007                   7.93
     Thereafter               41,366                   7.96
                            --------
     Total                  $ 74,651                   7.95
                            ========

     Fair Value             $ 76,178                   7.50%
                            ========





                           Part II - Other Information


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


A Form 8-K was filed on April 17, 2002 to report that OLP Theatres LLC, a wholly
owned subsidiary of the Company,  sold a 25% membership interest in OLP Holdings
LLC ("Holdings") to MTC Investors LLC ("MTC") for $3,275,000.






<PAGE>



                           ONE LIBERTY PROPERTIES, INC.


                                   SIGNATURES



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



                          One Liberty Properties, Inc.
                          ----------------------------
                                  (Registrant)





August 14, 2002            /s/ Jeffrey Fishman
---------------            -------------------
Date                       Jeffrey Fishman
                           President and
                           Chief Executive Officer



August 14, 2002            /s/ David W. Kalish
---------------            -------------------
Date                       David W. Kalish
                           Senior Vice President and
                           Chief Financial Officer
[{"type": "10-Q", "sequence": "1", "filename": "olp106-63002.txt", "description": "06/30/02", "secsgml_size_bytes": 59680}]
{"company-data": {"conformed-name": "ONE LIBERTY PROPERTIES INC", "cik": "0000712770", "assigned-sic": "6798", "irs-number": "133147497", "state-of-incorporation": "MD", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-09279", "film-number": "02733403"}, "business-address": {"street1": "60 CUTTER MILL RD", "street2": "SUITE 303", "city": "GREAT NECK", "state": "NY", "zip": "11021-3190", "phone": "5164663100"}, "mail-address": {"street1": "60 CUTTER MILL ROAD", "street2": "SUITE 303", "city": "GREAT NECK", "state": "NY", "zip": "11021-3190"}, "former-company": {"former-conformed-name": "ONE LIBERTY FIRESTONE PROPERTIES INC", "date-changed": "19851112"}}
SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                    FORM 10-Q

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

                   For the quarterly period ended June 30, 2002

                                       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 office)                  (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 August 7, 2002, the Registrant had 5,597,631 shares of
            Common Stock and 648,058 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
                      (Amounts in Thousands, Except Per Share Data)

                                                                                      June 30,         December 31,
                                                                                       2002               2001
                                                                                       ----               ----
                                                                                   (Unaudited)
Assets
   Real estate investments, at cost
   Land                                                                             $  25,939          $  25,939
   Buildings                                                                          100,292            101,288
                                                                                    ---------          ---------
                                                                                      126,231            127,227
           Less accumulated depreciation                                                9,768              8,663
                                                                                    ---------          ---------
                                                                                      116,463            118,564

   Investment in unconsolidated joint ventures                                         13,436              6,345
   Cash and cash equivalents                                                           29,891              2,285
   Unbilled rent receivable                                                             2,787              2,442
   Rent, interest, deposits and other receivables                                       1,195              1,157
   Note receivable - officer                                                              166                167
   Investment in BRT Realty Trust-(related party)                                         413                361
   Deferred financing costs                                                             1,105              1,247
   Other   (including available-for-sale securities of
         $1,098 and $249)                                                               1,313                371
                                                                                     --------           --------

           Total assets                                                              $166,769           $132,939
                                                                                     ========           ========

Liabilities and Stockholders' Equity
   Liabilities:
        Mortgages payable                                                            $ 74,651          $  76,587
        Accrued expenses and other liabilities                                            831                827
        Dividends payable                                                               2,105              1,177
                                                                                     --------          ---------

           Total liabilities                                                           77,587             78,591
                                                                                     --------          ---------

Commitments and contingencies                                                               -                  -

Stockholders' equity:
        Redeemable convertible preferred stock, $1 par value; $1.60 cumulative
         annual dividend; 2,300 shares authorized; 648 shares issued;
         liquidation and
         redemption values of $16.50                                                   10,693             10,693
        Common stock, $1 par value; 25,000
         shares authorized; 5,593 and 3,058
         shares issued  and outstanding                                                 5,593              3,058
        Paid-in capital                                                                65,268             32,192
        Accumulated other comprehensive income - net
          unrealized gain on available-for-sale securities                                340                261
        Accumulated undistributed net income                                            7,288              8,144
                                                                                    ---------           --------

           Total stockholders' equity                                                  89,182             54,348
                                                                                    ---------           --------

           Total liabilities and stockholders' equity                                $166,769           $132,939
                                                                                     ========           ========

          See accompanying notes to consolidated financial statements.
ONE LIBERTY PROPERTIES, INC. AND SUBSIDIARIES
                        CONSOLIDATED STATEMENTS OF INCOME
                  (Amounts in Thousands, Except Per Share Data)
                                   (Unaudited)

                                                                       Three Months Ended            Six Months Ended
                                                                             June 30,                     June 30,
                                                                   ---------------------------    -----------------------
                                                                      2002             2001          2002         2001
                                                                      ----             ----          ----         ----
Revenues:
   Rental income                                                    $ 3,631          $ 3,830       $ 7,283       $ 7,590
   Equity in earnings of unconsolidated joint ventures                  275                -           473             -
   Interest and other income                                            183               52           201            76
                                                                   --------         --------     ---------      --------
                                                                      4,089            3,882         7,957         7,666
                                                                   --------         --------      --------      --------
Expenses:
   Depreciation and amortization                                        699              727         1,423         1,446
   Interest - mortgages payable                                       1,501            1,477         3,003         2,750
   Interest - line of credit                                             19               38            28           231
   Leasehold rent                                                         -               72            24           144
   General and administrative                                           413              298           774           597
   Public offering expenses                                             105                -           125             -
   Real estate expenses                                                  31               52            64            89
                                                                   --------         --------      --------     ---------
                                                                      2,768            2,664         5,441         5,257
                                                                   --------         --------      --------      --------

Income before gain (loss) on sale                                     1,321            1,218         2,516         2,409
                                                                   --------         --------      --------      --------

(Loss) on sale of real estate                                             -              (46)            -           (46)
Gain (loss) on sale of available-for-sale securities                      6               (9)            8           (14)
                                                                  ---------         ---------     --------      ---------
                                                                          6              (55)            8           (60)
                                                                  ---------         ---------     --------      ---------

Net income                                                          $ 1,327          $ 1,163       $ 2,524       $ 2,349
                                                                   ========         ========      ========      ========

Calculation of net income applicable to common stockholders:
Net income                                                          $ 1,327          $ 1,163       $ 2,524       $ 2,349
Less: dividends on preferred stock                                      259              259           518           518
                                                                  ---------         --------      --------      --------

Net income applicable to
   common stockholders                                              $ 1,068         $    904       $ 2,006       $ 1,831
                                                                    =======         ========       =======       =======

Weighted average number of common shares outstanding:
     Basic                                                            4,129            3,016         3,600         3,013
                                                                      =====            =====         =====         =====
     Diluted                                                          4,168            3,026         3,637         3,020
                                                                      =====            =====         =====         =====

Net income per common share:
     Basic                                                        $     .26        $     .30     $     .56     $     .61
                                                                  =========        =========     =========     =========
     Diluted                                                      $     .26        $     .30     $     .55     $     .61
                                                                  =========        =========     =========     =========

Cash distributions per share:
   Common Stock                                                   $     .33        $     .30     $     .66     $     .60
                                                                  =========        =========     =========     =========
   Preferred Stock                                                $     .40        $     .40     $     .80     $     .80
                                                                  =========        =========     =========     =========

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

             For the six month period ended June 30, 2002 (unaudited)
                       and the year ended December 31, 2001
                             (Amounts in Thousands)

                                                                                Accumulated
                                                                                  Other          Accumulated
                                      Preferred    Common        Paid-in      Comprehensive     Undistributed
                                        Stock       Stock        Capital          Income         Net Income       Total
                                       -------     -------       -------          -------        ----------      ------
Balances, January 1, 2001              $10,693     $ 3,010       $31,650          $    76         $ 7,947         $53,376

Distributions -
   common stock                              -           -             -                -          (3,632)         (3,632)
Distributions -
   preferred stock                           -           -             -                -          (1,037)         (1,037)
Exercise of options                          -          33           368                -               -             401
Shares issued through
   dividend reinvestment plan                -          15           174                -               -             189
     Net income                              -           -             -                -           4,866           4,866
     Other comprehensive income-
      net unrealized gain on
      available-for-sale securities          -           -             -              185               -             185
                                                                                                                  -------
Comprehensive income                         -           -             -                -               -           5,051
                                    ----------   ---------     ---------        ---------       ---------        --------

Balances, December 31, 2001             10,693       3,058        32,192              261           8,144          54,348

Distributions -
   common stock                              -           -             -                -          (2,862)         (2,862)
Distributions -
   preferred stock                           -           -             -                -            (518)           (518)
Exercise of options                          -          25           303                -               -             328
Shares issued through public offering        -       2,500        32,644                -               -          35,144
Shares issued through
   dividend reinvestment plan                -          10           129                -               -             139
     Net income                              -           -             -                -           2,524           2,524
     Other comprehensive income-
      net unrealized gain on
      available-for-sale securities          -           -             -               79               -              79
                                                                                                                 --------
Comprehensive income                         -           -             -                -               -           2,603
                                        --------   -------     ---------          -------       ---------      ----------

Balances, June 30, 2002                $10,693     $ 5,593       $65,268          $   340         $ 7,288         $89,182
                                       =======     =======       =======        =========         =======         =======

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

                                                                                                     Six Months Ended
                                                                                                          June 30,
                                                                                                 2002                 2001
                                                                                                 ----                 ----
Cash flows from operating activities:
   Net income                                                                                  $ 2,524               $ 2,349
   Adjustments to reconcile net income
     to net cash provided by operating activities:
   Loss on sale of real estate                                                                       -                    46
   (Gain) loss on sale of available-for-sale securities                                             (8)                   14
   Increase in rental income from straight-lining of rent                                         (345)                 (416)
   Equity in earnings of unconsolidated joint ventures                                            (473)                    -
   Distributions from unconsolidated joint ventures                                                464                     -
   Payments to minority interest by subsidiary                                                      (9)                  (11)
   Depreciation and amortization                                                                 1,423                 1,446
   Changes in assets and liabilities:
   (Increase) decrease in rent, interest, deposits and other receivables                          (129)                  124
   Increase (decrease) in accrued expenses and other liabilities                                    12                   (23)
                                                                                            ----------             ----------
           Net cash provided by operating activities                                             3,459                 3,529
                                                                                            ----------             ---------

Cash flows from investing activities:
   Additions to real estate                                                                          -                   (14)
   Investment in unconsolidated joint ventures                                                  (9,412)                    -
   Sale of portion of interest in unconsolidated joint venture                                   3,150                     -
   Net proceeds from sale of real estate                                                             -                   240
   Net proceeds from sale of available-for-sale securities                                         178                   184
   Purchase of available-for-sale securities                                                         -                  (132)
   Purchase of treasury bill                                                                      (992)                    -
                                                                                             ----------           ----------
           Net cash (used in) provided by investing activities                                  (7,076)                  278
                                                                                             ----------           ----------

Cash flows from financing activities:
   Proceeds from mortgages payable                                                                   -                13,600
   Repayment of mortgages payable                                                               (1,936)                 (538)
   Payment of financing costs                                                                        -                  (408)
   (Increase) decrease in line of credit borrowings, net                                             -               (10,000)
   Net proceeds from issuance of shares through public offering                                 35,144                     -
   Cash distributions - common stock                                                            (1,934)                 (903)
   Cash distributions - preferred stock                                                           (518)                 (259)
   Exercise of stock options                                                                       328                     -
   Issuance of shares through dividend reinvestment plan                                           139                    62
                                                                                             ---------             ---------
           Net cash provided by financing activities                                            31,223                 1,554
                                                                                              --------             ---------

           Net increase in cash and cash equivalents                                            27,606                 5,361

Cash and cash equivalents at beginning of period                                                 2,285                 2,069
                                                                                             ---------             ---------

Cash and cash equivalents at end of period                                                    $ 29,891               $ 7,430
                                                                                              ========               =======

Supplemental disclosures of cash flow information:
   Cash paid during the period for interest expense                                           $ 3,035                $ 3,008

Supplemental schedule of non-cash investing activities:
   Contribution of real property to unconsolidated joint venture                              $   819                $     -

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

Note 1 - Basis of Preparation

The accompanying interim unaudited  consolidated financial statements as of June
30, 2002 and for the six and three  months  ended June 30, 2002 and 2001 reflect
all normal,  recurring  adjustments  which are,  in the  opinion of  management,
necessary for a fair  presentation of the results for such interim periods.  The
results of  operations  for the six and three months ended June 30, 2002 are not
necessarily indicative of the results for the full year.

The  preparation  of the  financial  statements in  conformity  with  accounting
principles  generally accepted in the United States requires  management to make
estimates  and  assumptions  that affect the amounts  reported in the  financial
statements  and  accompanying  notes.  Actual  results  could  differ from those
estimates.

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  balances and transactions have been
eliminated. The Company's investments in less than majority owned joint ventures
have been accounted for using the equity method. 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, 2001.

Note 2 - Earnings Per Common Share

For the six and three  months  ended June 30, 2002 and 2001 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.

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 six and three month  periods ended June
30, 2002 and 2001  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 (36,738 and 38,197 for the six and
three  months  ended  June 30,  2002 and 6,613 and  10,873 for the six and three
months ended June 30, 2001  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.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 3 - Preferred and Common Stock Dividend Distributions

On June 10, 2002 the Board of Directors declared quarterly cash distributions of
$.33  and  $.40  per  share  on  the  Company's   common  and  preferred  stock,
respectively,  which was paid on July 3, 2002 to  stockholders of record on June
22, 2002.

Note 4 - Public Offering

On May 30, 2002, the Company sold 2,500,000 shares of common stock at $15.25 per
share in a follow-on  public  offering.  The net proceeds of  approximately  $35
million were used to repay the $6 million  outstanding  under the Company's line
of credit (that was borrowed to pay  substantially all of the Company's share of
the purchase price of two megaplex  stadium style movie theaters  purchased by a
joint  venture  in which the  Company is a 25%  participant),  and to repay $1.3
million of  outstanding  indebtedness  on two mortgage  loans that were maturing
during the year.  The  remainder of the net proceeds,  a substantial  portion of
which have been invested in cash  equivalents and Treasury  bills,  will be used
for working capital, general corporate purposes and other property acquisitions.

Note 5 - Investment in Unconsolidated Joint Ventures - Movie Theater
         Joint Venture

In November  2001,  the Company  entered  into a joint  venture  with  Greenwood
Properties, Corp., an affiliate of the real estate equity group of Deutsche Bank
AG, for the general  purpose of acquiring,  owning and financing  megaplex movie
theater  properties.  The Company invested  approximately $6.3 million for a 50%
participation  in the joint  venture,  which  acquired a megaplex  stadium-style
movie  theater.  In April 2002, the Company sold one-half of its 50% interest in
this joint venture to MTC Investors LLC, an unrelated  entity,  at a price which
approximated  our basis.  In April and May of 2002,  the joint venture  acquired
three  additional   megaplex  movie  theaters  for  a  total   consideration  of
approximately $36 million, of which the Company's share was 25% or approximately
$9 million. Venturers holding at least 75% of the aggregate membership interests
in this joint  venture  must  approve all material  decisions,  except  property
acquisitions which require unanimous approval.

The Company's investment in the movie theater joint venture,  which is accounted
for on the equity method,  was approximately  $12,347,000 and $6,345,000 at June
30, 2002 and December 31, 2001, respectively.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 5 - Movie Theater  Unconsolidated Joint Venture (Continued)
         -------------------------------------------------------

The following table presents unaudited condensed balance sheets and operating
data for the joint venture:
Condensed Balance Sheet Data                                    June 30, 2002             December 31, 2001
----------------------------                                    -------------             -----------------
Cash and cash equivalents                                       $    496,240                 $    172,408
Real estate investments, net                                      48,204,159                   12,494,935
Other assets (A)                                                     656,169                        7,676
Total assets                                                      49,356,568                   12,675,019
Other liabilities                                                     53,862                       39,195
Total equity                                                      49,302,706                   12,635,824

                                                              Three Months Ended           Six Months Ended
Condensed Operating Data                                       June 30, 2002(B)            June 30, 2002 (B)
------------------------                                       ----------------            -----------------

Rental income                                                      $1,009,437                   $1,419,789
                                                                   ----------                   ----------

Total revenue                                                       1,009,537                    1,419,889
                                                                  -----------                  -----------

Depreciation expense                                                  172,356                      234,987
Fees and other                                                          7,850                       13,891
                                                                  -----------                -------------

Total expenses                                                        180,206                      248,878
                                                                  -----------                 ------------

Net income attributable to members                                $   829,331                   $1,171,011
                                                                  ===========                   ==========

Company's share of net income                                     $   242,000                  $   413,000
                                                                  ===========                  ===========

(A) Other assets include unbilled rent receivable of $69,502 and $7,676
 at June 30, 2002 and December 31, 2001, respectively.

(B) The joint venture was formed in November 2001, therefore there is no
comparative data from June 30, 2001.
One Liberty Properties, Inc. and Subsidiaries
                   Notes to Consolidated Financial Statements
                                   (Continued)

Note 6 - Comprehensive Income

Statement No. 130 establishes  standards for reporting  comprehensive income and
its  components  in a  full  set of  general-purpose  financial  statements  and
requires that all components of comprehensive  income be reported in a financial
statement  that is  displayed  with  the  same  prominence  as  other  financial
statements.  During the six and three months  ended June 30,  2002,  accumulated
other comprehensive  income, which is solely composed of the net unrealized gain
on  available-for-sale  securities,  increased  $79,000 and $14,000 to $340,000.
During  the six and  three  months  ended  June 30,  2001  comprehensive  income
increased $144,000 and $183,000 to $220,000.

Note 7  - Accounting for Long-Lived Assets

The Financial  Accounting  Standards Board issued  Statement No. 144 "Accounting
for the  Impairment of Long-Lived  Assets" which  supersedes  FASB Statement No.
121,  "Accounting  for the  Impairment of Long-Lived  Assets and for  Long-Lived
Assets to be Disposed of"; however it retains the fundamental provisions of that
statement  related to the  recognition  and  measurement  of the  impairment  of
long-lived assets to be "held and used". In addition, Statement No. 144 provides
more guidance on estimating  cash flows when performing a  recoverability  test,
requires that a long-lived  asset or asset group to be disposed of other than by
sale (e.g.  abandoned) be classified as "held and used" until it is disposed of,
and establishes more restrictive criteria to classify an asset or asset group as
"held for sale".  The Company  adopted SFAS 144 on January 1, 2002 and there was
no material effect on the earnings or the financial position of the Company.

Note 8  - New Accounting Pronouncement

The  Financial  Accounting  Standard  Board  issued  Statement  No.  145,  which
rescinded  Statement No. 4, "Reporting Gains and Losses from  Extinguishment  of
Debt." The  Company  adopted  SFAS 145 on May 15, 2002 and there was no material
effect on the earnings or the financial position of the Company.
Item 2.  Management's Discussion And Analysis Of Financial Condition And
         ---------------------------------------------------------------
         Results Of Operations
         ---------------------

Forward-Looking Statements

With the exception of historical information,  this report on Form 10-Q contains
certain  forward-looking  statements  within the  meaning of Section  27A of the
Securities Act of 1933. We intend such forward-looking  statements to be covered
by the safe harbor  provision for  forward-looking  statements  contained in the
Private Securities  Litigation Reform Act of 1995 and include this statement for
purposes  of  complying  with  these  safe  harbor  provisions.  Forward-looking
statements,  which are based on  certain  assumptions  and  describe  our future
plans,  strategies and  expectations,  are generally  identifiable by use of the
words "may", "will", "believe",  "expect", "intend",  "anticipate",  "estimate",
"project",  or  similar  expressions  or  variations  thereof.   Forward-looking
statements  should not be relied on since they involve known and unknown  risks,
uncertainties and other factors which are, in some cases, beyond our control and
which could  materially  affect actual  results,  performance  or  achievements.
Investors  are  cautioned  not to place undue  reliance  on any  forward-looking
statements.

General

We are a  self-administered  REIT and we  primarily  own real estate that we net
lease to tenants. We own 33 properties and we are a member of two joint ventures
that own a total of five properties. Our 38 properties are located in 13 states.

We have  elected  to be taxed as a REIT  under the  Internal  Revenue  Code.  To
qualify  as a REIT,  we must meet a number  of  organizational  and  operational
requirements,  including a requirement that we currently distribute at least 90%
of ordinary taxable income to our  stockholders.  We intend to comply with these
requirements and to maintain our REIT status.

Our  principal  business  strategy  is  to  acquire  improved,   free  standing,
commercial properties subject to long-term net leases. We acquire properties for
their value as long-term  investments  and for their ability to generate  income
over an extended  period of time.  We borrow  funds on a secured  and  unsecured
basis to finance the  purchase of real estate and we intend to continue to do so
in the future.

Our rental  properties are generally leased to corporate tenants under operating
leases  substantially all of which are noncancellable.  Substantially all of our
lease agreements are net lease  arrangements  that require the tenant to pay not
only  rent but also  substantially  all the  operating  expenses  of the  leased
property,  including maintenance,  taxes, utilities and insurance. A majority of
our lease agreements provide for periodic rental increases; certain of our other
leases provide for increases based on the consumer price index.

In November  2001, we entered into a joint venture with an affiliate of Deutsche
Bank AG, which  acquired a megaplex  stadium-style  movie  theater.  We invested
approximately  $6.3 million for our 50%  participation in the joint venture.  In
April 2002,  we sold  one-half of our 50% interest in this joint  venture to MTC
Investors   LLC.  This  joint  venture   acquired  three   additional   megaplex
stadium-style movie theaters during April and May 2002 for a total consideration
of  approximately  $36 million.  During July 2002,  mortgage  financing of $28.9
million was completed on the four theaters owned by the joint venture. Venturers
holding at least 75% of the aggregate  membership interest in this joint venture
must approve all material  decisions,  except for  property  acquisitions  which
require unanimous approval. Under the joint venture operating agreement, we will
receive an acquisition  fee from the joint venture equal to 0.5% of the purchase
price of each property  acquired by the joint  venture,  other than the property
acquired in November 2001. In addition,  Majestic  Property  Management Corp., a
company  owned and  controlled  by our  chairman of the board and certain of our
officers, but in which we have no ownership interest,  will receive a management
fee equal to 1% of all rents  received by the joint  venture from  single-tenant
properties  and a management  fee equal to 3% of all rents received by the joint
venture from multi-tenant properties. Majestic will receive leasing and mortgage
brokerage fees at any property  acquired by the joint venture at a rate equal to
80% of  the  then  market  cost.  Majestic  will  also  receive  a  construction
supervision  fee equal to 8% of the cost of any capital  improvements or repairs
to the  property  and a sales  commission  equal to 1% of the sales price of any
properties that are sold.

In February  2002,  we  contributed  our  leasehold  interest  in an  industrial
property in Miami,  Florida to a joint venture with the owners of the fee estate
in that  property in exchange  for an  approximately  36%  interest in the joint
venture.

At June 30, 2002, we had 21 outstanding  mortgages  payable,  aggregating  $74.7
million  in  principal  amount,  all of which  are  secured  by  first  liens on
individual  real  estate   investments  with  an  aggregate  carrying  value  of
approximately $114 million before accumulated  depreciation.  The mortgages bear
interest at fixed rates ranging from 6.9% to 8.8%,  and mature  between 2003 and
2017.
Results of Operations

Comparison of Six and Three Months Ended June 30, 2002 and  2001

Revenues

Our  revenues  consist  primarily  of rental  income from  tenants in our rental
properties. In the latter part of 2001 we made a decision to expand our business
activities by acquiring and owning  megaplex  stadium-style  movie  theaters net
leased to the operator,  in a joint venture (as described above).  Approximately
91.5% and 88.8%,  respectively,  of our  revenues  for the six and three  months
ended  June 30,  2002  consists  of rental  income  from  tenants  in our rental
properties and 5.9% and 6.7%, respectively, of our revenues represents equity in
the earnings of joint  ventures,  principally  the movie theater joint  venture.
There was no joint  venture  related  revenues in the six and three months ended
June 30, 2001.

Total  revenues for the six and three  months  ended June 30, 2002  increased by
$291,000, or 3.8%, from $7.7 million to $8 million, and by $207,000, or 5.3%, to
$4.1 million from $3.9 million for the six and three months ended June 30, 2001,
respectively.  Total  revenues  for the six and three months ended June 30, 2002
include  $413,000 and $242,000,  respectively,  representing our equity share of
the earnings of our movie theatre venture and $60,000 and $33,000, respectively,
representing  our equity share of the  earnings of a joint  venture that owns an
industrial building in Miami, Florida.

The increase in our revenues,  resulting primarily from our participation in the
movie theater joint  venture,  was offset in part by a decrease in rental income
from our rental properties.  Rental income decreased by $307,000, or 4%, to $7.3
million  for the six months  ended June 30,  2002 from $7.6  million for the six
months  ended June 30, 2001.  For the three  months ended June 30, 2002,  rental
income  decreased  $199,000,  or 5.2%, to $3.6 million from $3.8 million for the
three months ended June 30, 2001.  The rental income decline  includes  $177,000
and $106,000 for the six and three months ended June 30, 2002, primarily because
rental  income from an  industrial  property in Miami,  Florida,  the  leasehold
interest of which was  transferred  by us to a joint venture in February,  2002,
was not  included in rental  income for the entire six and three  month  periods
ended June 30, 2002. Our share of net earnings from this property,  now owned by
a joint venture in which we own an approximately  36% interest,  is reflected in
"Equity in earnings of unconsolidated joint ventures" from February 2002. Rental
income also  decreased by $144,000 and $94,000 in the six and three months ended
June 30,  2002 as a result of the sale of two small  retail  properties  and the
vacancy of two retail  properties  during such  periods.  This decline in rental
income was partially  offset by rent increases at three of our properties and an
increase in percentage rent collected.

Interest  and other  income  increased  by $125,000 and $131,000 to $201,000 and
$183,000  for the six and three  months  ended June 30,  2002 from  $76,000  and
$52,000 for the six and three  months  ended June 30,  2001.  This  increase was
substantially  due to net acquisition fees totaling  $134,000  received from our
movie theater joint venture  partners equal to 0.5% of the purchase price of the
three  properties  acquired by the joint venture during April and May 2002. This
net amount reflects a reduction based on our proportionate share of ownership in
the  joint  venture.  To a  lesser  extent,  this  increase  is also  due to the
investment in cash equivalents and Treasury bills of the balance  (approximately
$28 million) of the net proceeds  received  from the public  offering  which was
funded to the Company on May 30, 2002.

Expenses

Depreciation  and  amortization  expense  decreased  by $23,000  and  $28,000 to
$1,423,000  and  $699,000  for the six and three months ended June 30, 2002 from
$1,446,000  and $727,000  for the six and three months ended June 30, 2001.  The
change  was  relatively   insignificant   because  our  mix  of  properties  was
substantially the same during the two comparative periods.

Interest-mortgages  payable increased by $253,000 and $24,000, or 9.2% and 1.6%,
to $3 million and $1.5  million for the six and three months ended June 30, 2002
from $2.8  million and $1.5  million for the six and three months ended June 30,
2001.  This increase  resulted from mortgages  placed on two  properties  during
March and April 2001.

Interest-line  of credit  decreased by $203,000 and $19,000,  or 88% and 50%, to
$28,000  and  $19,000  for the six and three  months  ended  June 30,  2002 from
$231,000  and $38,000 for the six and three  months  ended June 30,  2001.  This
decrease  resulted  from our  repayment of all of the  outstanding  indebtedness
under  our line of  credit  during  2001.  This  indebtedness  was  incurred  to
facilitate the purchase of several  properties during 2000, and was repaid using
the proceeds from mortgage  financings on two properties  during March and April
2001. To facilitate the purchase of two theaters  through our joint venture,  we
borrowed $6 million  under our line of credit  during May 2002,  which we repaid
with a portion of the proceeds received from the public offering.

Leasehold  rent expense  decreased  by $120,000 and $72,000,  or 83% and 100% to
$24,000 and zero for the six and three months ended June 30, 2002 from  $144,000
and $72,000 for the six and three months ended June 30, 2001.  This rent expense
was  payable on the  leasehold  interest  position  that we  contributed  during
February 2002 to a joint venture in which we hold an approximately 36% interest.
Therefore, effective February 2002, we no longer paid the leasehold rent.

General and administrative  expenses  increased $177,000 and $115,000,  or 29.6%
and 38.6%,  to $774,000 and $413,000 for the six and three months ended June 30,
2002 from  $597,000  and  $298,000  for the six and three  months ended June 30,
2001.  This  increase  was  primarily  due to  increases  in  payroll  and fees,
including approximately $73,000 and $61,000 for the current six and three months
of payroll and related  expenses of executive and support  personnel,  primarily
for legal and accounting  services allocated to us pursuant to a Shared Services
Agreement between us and related entities. The increase in the allocated payroll
expenses resulted from an increase in our level of business activity,  primarily
property acquisition  activity.  The increase in payroll expenses is also due to
compensation  and fees  approved  by our  compensation  committee  and  board of
directors and recorded  during the six and three months ended June 30, 2002 (and
will  continue to be recorded  during future  quarters):  an increase of $50,000
($12,500  per  quarter) in the base salary and a bonus of $50,000  ($12,500  per
quarter) to our president and chief  executive  officer and a fee of $50,000 per
annum ($12,500 per quarter) to the chairman of our board of directors.

On May 30,  2002,  we sold 2.5  million  shares of Common  Stock in a  follow-on
public offering.  Allocated payroll and payroll related expenses,  primarily for
legal and accounting  services resulting from time expended by various executive
and administrative  personnel in connection with the preparation and filing of a
Registration  Statement  on Form S-2,  declared  effective by the SEC on May 24,
2002 have been  included in the line item  "Public  Offering  Expenses",  all of
which are nonrecurring.

Real estate  expenses  decreased by $25,000 and $21,000,  or 28.1% and 40.4%, to
$64,000  and  $31,000  for the six and three  months  ended  June 30,  2002 from
$89,000 and  $52,000  for the six and three  months  ended June 30,  2001.  This
decrease  was  primarily  due  to  the  write  off  of  a  leasing   commission,
non-recurring  landlord  repairs and certain  real estate  taxes not rebilled to
tenants during the six and three months ended June 30, 2001.

Liquidity and Capital Resources

We had cash and cash  equivalents of $29.9 million at June 30, 2002. Our primary
sources  of  liquidity  are cash  and cash  equivalents,  our  revolving  credit
facility  and cash  generated  from  operating  activities,  including  mortgage
financings.  We maintain a $15 million  revolving  credit facility with Citibank
N.A. The facility is available to us to pay down  existing  mortgages or to fund
the  acquisition  of additional  properties.  The facility  matures on March 24,
2003.  Borrowings  under the  facility  bear  interest at the bank's prime rate,
currently  4.75%,  and there is an unused  facility fee of one-quarter of 1% per
annum.  Net proceeds  received from the sale or  refinancing  of properties  are
required to be used to repay amounts  outstanding under the facility if proceeds
from the facility were used to purchase or refinance the property.  The facility
is guaranteed by all of our subsidiaries that own unencumbered properties and is
secured by the outstanding stock of all of our subsidiaries. At June 30, 2002 we
had no indebtedness outstanding under the facility. We are currently negotiating
for an increased credit facility.

On May 30, 2002, we sold 2.5 million  shares of Common Stock at $15.25 per share
in a follow-on  public offering.  The net proceeds of approximately  $35 million
(after underwriting commissions and expenses of the offering) were used to repay
the $6 million outstanding under the line of credit and outstanding indebtedness
under two mortgage loans related to two of our properties  totaling $1.3 million
that were maturing during the year. The balance of the net proceeds will be used
for  working  capital,   general  corporate  purposes  and  for  other  property
acquisitions.  At June 30, 2002 a  substantial  portion of the net  proceeds was
invested in cash equivalents and Treasury bills.

We, on our own behalf and on behalf of our megaplex  theater joint venture,  are
involved in various stages of negotiation,  due diligence and documentation with
respect  to the  acquisition  of  additional  net leased  properties.  The joint
venture will only acquire movie theater  properties.  We will use the balance of
the  proceeds  of the  offering  (presently  invested  in cash  equivalents  and
Treasury  bills),  cash provided from operations and our credit facility to fund
acquisitions.  We and the joint  venture seek and will continue to seek mortgage
financing  secured by  properties  owned and to be acquired.  In July 2002,  the
joint venture closed on a first  mortgage loan of $28.9 million  secured by four
megaplex stadium movie theater properties previously acquired by it. We received
approximately $7.1 million from this financing, which will be used in additional
to cash available of $29.5 million to acquire additional properties.

The following sets forth our contractual  cash  obligations as of June 30, 2002,
all of which relate to scheduled  principal  and interest  payments and balances
due at maturity under outstanding  mortgages secured by our properties,  for the
periods indicated:
Principal            Balances Due
                                             Total               and Interest            at Maturity
                                             -----               ------------            -----------
Due within 1 year                 $ 10,891,000           $  6,673,000           $ 4,218,000
        Due 1 to 3 years                    27,861,000             12,146,000            15,715,000
        Due 4 to 5 years                    17,174,000              9,464,000             7,710,000
        Due after 5 years                   53,770,000             19,111,000            34,659,000
As of June 30, 2002, we had outstanding approximately $74.7 million in long-term
mortgage  indebtedness,  all of  which  is  non-recourse  (subject  to  standard
carve-outs). We expect that debt service payments of approximately $18.8 million
due in the next three years will be paid  primarily from cash generated from our
operations.  We anticipate that loan maturities of  approximately  $19.9 million
due in the next three years will be paid primarily  from mortgage  financings or
refinancings.  If we are not successful in refinancing our existing indebtedness
or financing our unencumbered  properties,  our cash flow and available cash, if
any, will not be sufficient to repay all maturing debt when payments become due,
and we may be forced to sell  additional  equity or  dispose  of  properties  on
disadvantageous terms.

We  had  no   outstanding   contingent   commitments,   such  as  guarantees  of
indebtedness, or any other contractual cash obligations at June 30, 2002.

Since  completion  of the public  offering on May 30, 2002, we have expanded our
investment activities independently and through our movie theater joint venture.
In the  ordinary  course of our  business we are  involved in varying  levels of
discussions,  negotiation,  due diligence and documentation  with respect to the
acquisition  of  additional  properties.  After our use of the  public  offering
funds,  continuation  of our  expansion  program  will  depend on our ability to
obtain a significant amount of additional capital, either through increased debt
or additional equity or through increased  reliance on joint ventures with third
parties.

Cash Distribution Policy

We have elected to be taxed as a REIT under the Internal  Revenue Code since our
taxable  year ended  December  31,  1983.  To qualify as a REIT,  we must meet a
number of organizational and operational  requirements,  including a requirement
that we distribute  currently at least 90% of our ordinary taxable income to our
stockholders.  It is our current intention to comply with these requirements and
maintain  our REIT  status.  As a REIT,  we  generally  will not be  subject  to
corporate  federal,  state or local income taxes on taxable income we distribute
currently  (in  accordance  with  the  Internal   Revenue  Code  and  applicable
regulations) to our stockholders. If we fail to qualify as a REIT in any taxable
year,  we will be subject to federal,  state and local  income  taxes at regular
corporate rates and may not be able to qualify as a REIT for four subsequent tax
years.  Even if we qualify for federal  taxation as a REIT, we may be subject to
certain  state and local  taxes on our income  and to federal  income and excise
taxes on our undistributed  taxable income, i.e., taxable income not distributed
in the amounts and in the time frames  prescribed  by the Internal  Revenue Code
and applicable regulations thereunder.

It is our  intention  to  pay  to  our  stockholders  within  the  time  periods
prescribed by the Internal Revenue Code no less that 90%, and, if possible, 100%
of our annual taxable  income,  including gains from the sale of real estate and
recognized  gains on sale of  securities.  It will  continue to be our policy to
make sufficient cash  distributions  to stockholders in order for us to maintain
our REIT status under the Internal Revenue Code.
Item 3. - Quantitative and Qualitative Disclosures About Market Risks

All of our long-term debt bears interest at fixed rates,  and therefore the fair
value of these  instruments is affected by changes in the market interest rates.
The following table presents scheduled principal  repayments based upon maturity
dates of the debt obligations and the related weighted-average interest rates by
expected maturity dates for the fixed rate debt.

                            Scheduled
                            Principal
  Year Ending              Repayments                 Average
   June 30,              (In Thousands)            Interest Rate
   --------              -------------             -------------

     2003                   $  5,395                   7.85%
     2004                      8,647                   7.92
     2005                      9,417                   7.95
     2006                      6,819                   7.99
     2007                      3,007                   7.93
     Thereafter               41,366                   7.96
                            --------
     Total                  $ 74,651                   7.95
                            ========

     Fair Value             $ 76,178                   7.50%
                            ========

                           Part II - Other Information

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

A Form 8-K was filed on April 17, 2002 to report that OLP Theatres LLC, a wholly
owned subsidiary of the Company,  sold a 25% membership interest in OLP Holdings
LLC ("Holdings") to MTC Investors LLC ("MTC") for $3,275,000.
ONE LIBERTY PROPERTIES, INC.

                                   SIGNATURES

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

                          One Liberty Properties, Inc.
                          ----------------------------
                                  (Registrant)

August 14, 2002            /s/ Jeffrey Fishman
---------------            -------------------
Date                       Jeffrey Fishman
                           President and
                           Chief Executive Officer

August 14, 2002            /s/ David W. Kalish
---------------            -------------------
Date                       David W. Kalish
                           Senior Vice President and
                           Chief Financial Officer