One Liberty To Pay Most Of Dividend In Stock

GREAT NECK, N.Y. (AP) — One Liberty Properties Inc. said Friday that it will pay most of its upcoming quarterly dividend in stock instead of cash to save money as the real estate investment trust braces for more of its tenants to default on their leases.

Just 10 percent of One Liberty's quarterly dividend of 22 cents per share will consist of cash when it's paid next month. The remaining amount will be paid in stock.

The previous quarterly dividend was also 22 cents per share, but was paid entirely in cash. That was down from a cash dividend of 36 cents per share during 2008's earlier quarters.

By shifting more of the payment into stock, One Liberty will be able to hold on to an additional $2 million, estimated Chief Executive Patrick Callan Jr.

One Liberty is hoarding its money because the recession is reducing its rental income as the recession hammers many of its tenants.

Electronics retailer Circuit City Stores Inc. already abandoned five of One Liberty's properties after going out of business this year. Circuit City accounted for about 2.3 percent, or about $928,000, of One Liberty's rental revenue in 2008, according to the company's annual report.