FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, 10-Q filed on 14 Jun 24
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Cover - shares
 6 Months Ended
Apr. 30, 2024
Jun. 14, 2024
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Entity Interactive Data Current Yes  
Amendment Flag false  
Document Period End Date Apr. 30, 2024  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Entity Information [Line Items]    
Entity Registrant Name FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC.  
Entity Central Index Key 0000036840  
Entity File Number 000-25043  
Entity Tax Identification Number 22-1697095  
Entity Incorporation, State or Country Code MD  
Current Fiscal Year End Date --10-31  
Entity Current Reporting Status Yes  
Entity Shell Company false  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Contact Personnel [Line Items]    
Entity Address, Address Line One 505 Main Street, Suite 400  
Entity Address, City or Town Hackensack  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07601  
Entity Phone Fax Numbers [Line Items]    
City Area Code (201)  
Local Phone Number 488-6400  
Entity Listings [Line Items]    
Entity Common Stock, Shares Outstanding   7,458,193
Common stock    
Entity Listings [Line Items]    
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol FREVS  
Security Exchange Name NONE  
Preferred Stock    
Entity Listings [Line Items]    
Title of 12(b) Security Preferred Stock Purchase Rights  
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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Apr. 30, 2024
Oct. 31, 2023
ASSETS    
Real estate, at cost, net of accumulated depreciation $ 92,380,000 $ 93,617,000
Construction in progress 928,000 898,000
Cash and cash equivalents 12,220,000 13,217,000
Investment in U.S. Treasury securities available-for-sale 16,811,000 23,593,000
Investment in tenancy-in-common 17,635,000 18,137,000
Tenants' security accounts 937,000 962,000
Receivables arising from straight-lining of rents 632,000 690,000
Accounts receivable, net of allowance for doubtful accounts of $260 and $1,090 as of April 30, 2024 and October 31, 2023, respectively 351,000 559,000
Funds held in post-closing escrow 189,000 883,000
Prepaid expenses and other assets 5,093,000 4,912,000
Deferred charges, net 296,000 311,000
Interest rate swap contracts 1,063,000 1,336,000
Total Assets 148,535,000 159,115,000
Liabilities:    
Mortgages payable, including deferred interest of $222 129,756,000 138,179,000
Less unamortized debt issuance costs 1,007,000 1,117,000
Mortgages payable, net 128,749,000 137,062,000
Accounts payable and accrued expenses 936,000 1,275,000
Dividends payable 373,000 372,000
Tenants' security deposits 1,233,000 1,262,000
Deferred revenue 711,000 668,000
Total Liabilities 132,002,000 140,639,000
Commitments and contingencies
Common Equity:    
Preferred stock with par value of $0.01 per share: 5,000,000 and 0 shares authorized and issued, respectively
Common stock with par value of $0.01 per share: 20,000,000 shares authorized; 7,458,193 and 7,449,583 shares issued at April 30, 2024 and October 31, 2023, respectively 75,000 74,000
Additional paid-in-capital 32,215,000 32,074,000
Accumulated deficit (9,692,000) (8,968,000)
Accumulated other comprehensive income 1,043,000 1,336,000
Total Common Equity 23,641,000 24,516,000
Noncontrolling interests in subsidiaries (7,108,000) (6,040,000)
Total Equity 16,533,000 18,476,000
Total Liabilities and Equity $ 148,535,000 $ 159,115,000
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Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)
$ in Thousands
Apr. 30, 2024
Oct. 31, 2023
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts (in Dollars) $ 260 $ 1,090
Deferred interest (in Dollars) $ 222 $ 222
Preferred stock, par value (in Dollars per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Common stock, par value (in Dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 20,000,000 20,000,000
Common stock, shares issued 7,458,193 7,449,583
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Condensed Consolidated Statements of Income (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Revenue:        
Rental income $ 6,586,000 $ 6,345,000 $ 13,040,000 $ 12,567,000
Reimbursements 576,000 491,000 1,034,000 1,137,000
Sundry income 113,000 80,000 200,000 191,000
Total revenue 7,275,000 6,916,000 14,274,000 13,895,000
Expenses:        
Operating expenses 2,714,000 2,625,000 6,203,000 5,075,000
Management fees 331,000 333,000 667,000 659,000
Real estate taxes 1,509,000 1,455,000 3,001,000 2,893,000
Depreciation 789,000 732,000 1,514,000 1,454,000
Total expenses 5,343,000 5,145,000 11,385,000 10,081,000
Investment income 279,000 218,000 686,000 407,000
Net loss on sale of Maryland properties (92,000) (203,000) (171,000) (446,000)
(Loss) gain on investment in tenancy-in-common 62,000 (121,000) (47,000) (188,000)
Interest expense including amortization of deferred financing costs (1,782,000) (1,951,000) (3,624,000) (3,827,000)
Net (loss) income 399,000 (286,000) (267,000) (240,000)
Net loss attributable to noncontrolling interests in subsidiaries 134,000 383,000 288,000 756,000
Net income attributable to common equity $ 533,000 $ 97,000 $ 21,000 $ 516,000
Earnings per share:        
Basic (in Dollars per share) $ 0.07 $ 0.01 $ 0 $ 0.07
Weighted average shares outstanding:        
Basic (in Shares) 7,453 7,441 7,451 7,433
Diluted (in Shares) 7,457 7,446 7,455 7,440
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Condensed Consolidated Statements of Income (Unaudited) (Parentheticals) - $ / shares
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Income Statement [Abstract]        
Diluted $ 0.07 $ 0.01 $ 0.00 $ 0.07
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Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ 399,000 $ (286,000) $ (267,000) $ (240,000)
Other comprehensive (loss) income:        
Unrealized gain (loss) on interest rate swap contracts before reclassifications 446,000 30,000 107,000 (304,000)
Amount reclassified from accumulated other comprehensive income to interest expense (189,000) (137,000) (380,000) (253,000)
Net unrealized (loss) gain on interest rate swap contracts 257,000 (107,000) (273,000) (557,000)
Unrealized loss on U.S. Treasury securities available-for-sale before reclassifications (13,000) (19,000)
Amount reclassified from accumulated other comprehensive income to investment income (1,000)
Net unrealized loss on U.S. Treasury securities available-for-sale (13,000) (20,000)
Comprehensive (loss) income 643,000 (393,000) (560,000) (797,000)
Comprehensive loss attributable to noncontrolling interests in subsidiaries 134,000 383,000 288,000 756,000
Comprehensive (loss) income attributable to common equity $ 777,000 $ (10,000) $ (272,000) $ (41,000)
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Condensed Consolidated Statements of Equity (Unaudited) - USD ($)
Total
Common Stock
Additional Paid-In-Capital
Accumulated Deficit
Accumulated Other Comprehensive Income
Total Common Equity
Noncontrolling Interests in Subsidiaries
Balance at Oct. 31, 2022 $ 24,739,000 $ 73,000 $ 30,635,000 $ (6,208,000) $ 1,409,000 $ 25,909,000 $ (1,170,000)
Balance (in Shares) at Oct. 31, 2022   7,321          
Stock based compensation expense 5,000   5,000     5,000  
Vested share units granted to Directors 26,000   26,000     26,000  
Vested share units granted to Directors (in Shares)   2          
Stock options exercised 1,226,000 $ 1,000 1,225,000     1,226,000  
Stock options exercised (in Shares)   113          
Distributions to noncontrolling interests in subsidiaries (1,850,000)         (1,850,000)
Net income (loss) 46,000     419,000   419,000 (373,000)
Dividends declared (541,000)     (541,000)   (541,000)  
Net unrealized (gain) loss on interest rate swap contracts (450,000)       (450,000) (450,000)
Balance at Jan. 31, 2023 23,201,000 $ 74,000 31,891,000 (6,330,000) 959,000 26,594,000 (3,393,000)
Balance (in Shares) at Jan. 31, 2023   7,436          
Balance at Oct. 31, 2022 24,739,000 $ 73,000 30,635,000 (6,208,000) 1,409,000 25,909,000 (1,170,000)
Balance (in Shares) at Oct. 31, 2022   7,321          
Net income (loss) (240,000)            
Net unrealized (gain) loss on interest rate swap contracts (557,000)            
Balance at Apr. 30, 2023 22,384,000 $ 74,000 32,043,000 (6,605,000) 852,000 26,364,000 (3,980,000)
Balance (in Shares) at Apr. 30, 2023   7,446          
Balance at Jan. 31, 2023 23,201,000 $ 74,000 31,891,000 (6,330,000) 959,000 26,594,000 (3,393,000)
Balance (in Shares) at Jan. 31, 2023   7,436          
Stock awards granted to directors 140,000   140,000     140,000  
Stock awards granted to directors (in Shares)   9          
Stock based compensation expense 5,000   5,000     5,000  
Stock options exercised 7,000   7,000     7,000  
Stock options exercised (in Shares)   1          
Distributions to noncontrolling interests in subsidiaries (204,000)         (204,000)
Net income (loss) (286,000)     97,000   97,000 (383,000)
Dividends declared (372,000)     (372,000)   (372,000)  
Net unrealized (gain) loss on interest rate swap contracts (107,000)       (107,000) (107,000)
Balance at Apr. 30, 2023 22,384,000 $ 74,000 32,043,000 (6,605,000) 852,000 26,364,000 (3,980,000)
Balance (in Shares) at Apr. 30, 2023   7,446          
Balance at Oct. 31, 2023 18,476,000 $ 74,000 32,074,000 (8,968,000) 1,336,000 24,516,000 (6,040,000)
Balance (in Shares) at Oct. 31, 2023   7,450          
Stock based compensation expense 1,000   1,000     1,000  
Distributions to noncontrolling interests in subsidiaries (180,000)         (180,000)
Net income (loss) (666,000)     (512,000)   (512,000) (154,000)
Dividends declared (372,000)     (372,000)   (372,000)  
Net unrealized (gain) loss on interest rate swap contracts (530,000)       (530,000) (530,000)
Net unrealized loss on investment in U.S. Treasury securities available-for-sale (7,000)       (7,000) (7,000)
Balance at Jan. 31, 2024 16,722,000 $ 74,000 32,075,000 (9,852,000) 799,000 23,096,000 (6,374,000)
Balance (in Shares) at Jan. 31, 2024   7,450          
Balance at Oct. 31, 2023 18,476,000 $ 74,000 32,074,000 (8,968,000) 1,336,000 24,516,000 (6,040,000)
Balance (in Shares) at Oct. 31, 2023   7,450          
Net income (loss) (267,000)            
Net unrealized (gain) loss on interest rate swap contracts (273,000)            
Balance at Apr. 30, 2024 16,533,000 $ 75,000 32,215,000 (9,692,000) 1,043,000 23,641,000 (7,108,000)
Balance (in Shares) at Apr. 30, 2024   7,458          
Balance at Jan. 31, 2024 16,722,000 $ 74,000 32,075,000 (9,852,000) 799,000 23,096,000 (6,374,000)
Balance (in Shares) at Jan. 31, 2024   7,450          
Stock awards granted to directors 141,000 $ 1,000 140,000     141,000  
Stock awards granted to directors (in Shares)   8          
Distributions to noncontrolling interests in subsidiaries (600,000)         (600,000)
Net income (loss) 399,000     533,000   533,000 (134,000)
Dividends declared (373,000)     (373,000)   (373,000)  
Net unrealized (gain) loss on interest rate swap contracts 257,000       257,000 257,000
Net unrealized loss on investment in U.S. Treasury securities available-for-sale (13,000)       (13,000) (13,000)
Balance at Apr. 30, 2024 $ 16,533,000 $ 75,000 $ 32,215,000 $ (9,692,000) $ 1,043,000 $ 23,641,000 $ (7,108,000)
Balance (in Shares) at Apr. 30, 2024   7,458          
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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Operating activities:    
Net loss $ (267) $ (240)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Net loss on sale of Maryland properties 171 446
Depreciation 1,514 1,454
Amortization 345 286
Stock based compensation expense 1 10
Director fees and related interest paid in stock units 26
Stock award granted to directors 141 140
Loss on investment in tenancy-in-common 47 188
Deferred rents - straight line rent 58 76
Bad debt expense (recovery) 123 (30)
Accreted interest on investment in U.S. Treasury securities (418) (162)
Changes in operating assets and liabilities:    
Tenants' security accounts (29) 5
Accounts receivable, prepaid expenses and other assets (27) 142
Accounts payable, accrued expenses and deferred director compensation payable (195) (2,143)
Deferred revenue 43 110
Net cash provided by operating activities 1,507 308
Investing activities:    
Cash outlays from sale of Maryland properties, net (171) (446)
Purchase of U.S. Treasury securities (19,135) (17,084)
Proceeds from maturities of U.S. Treasury securities 26,315
Capital improvements - existing properties (456) (908)
Deferred leasing costs (49) (78)
Distribution from investment in tenancy-in-common 455
Net cash provided by (used in) investing activities 6,959 (18,516)
Financing activities:    
Repayment of mortgages (8,423) (764)
Proceeds from exercise of stock options 1,233
Deferred financing costs (166) (326)
Dividends paid (744) (11,114)
Distributions to noncontrolling interests in subsidiaries (780) (2,054)
Net cash used in financing activities (10,113) (13,025)
Net decrease in cash, cash equivalents and restricted cash (1,647) (31,233)
Cash, cash equivalents and restricted cash, beginning of period 18,356 58,500
Cash, cash equivalents and restricted cash, end of period 16,709 27,267
Supplemental disclosure of cash flow data:    
Interest paid 3,343 3,555
Investing activities:    
Accrued capital expenditures, construction costs and pre-development costs 61 82
Financing activities:    
Dividends declared but not paid 373 372
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:    
Cash and cash equivalents 12,220 18,633
Tenants' security accounts 937 1,000
Funds held in post-closing escrow 189 4,651
Mortgage escrows (included in prepaid expenses and other assets) 3,363 2,983
Total cash, cash equivalents and restricted cash $ 16,709 $ 27,267
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Basis of Presentation
 6 Months Ended
Apr. 30, 2024
Basis of Presentation [Abstract]  
Basis of Presentation

Note 1 - Basis of presentation:

 

First Real Estate Investment Trust of New Jersey was organized on November 1, 1961 as a New Jersey Business Trust. On July 1, 2021, First Real Estate Investment Trust of New Jersey completed the change of its form of organization from a New Jersey real estate investment trust to a Maryland corporation (the “Reincorporation”) which was approved by its stockholders at the annual meeting of stockholders held on May 6, 2021. The Reincorporation changed the law applicable to First Real Estate Investment Trust of New Jersey’s affairs from New Jersey law to Maryland law and was accomplished by the merger of First Real Estate Investment Trust of New Jersey with and into its wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. (“FREIT”, “Trust”, “us”, “we”, “our” or the “Company”), a Maryland corporation. As a result of the Reincorporation, the separate existence of First Real Estate Investment Trust of New Jersey has ceased and FREIT has succeeded to all the business, properties, assets and liabilities of First Real Estate Investment Trust of New Jersey. Holders of shares of beneficial interest in First Real Estate Investment Trust of New Jersey have received one newly issued share of common stock of FREIT for each share of First Real Estate Investment Trust of New Jersey that they own, without any action of stockholders required and all treasury stock held by First Real Estate Investment Trust of New Jersey was retired.

 

FREIT is organized and will continue to operate in such a manner as to qualify for taxation as a REIT under the Internal Revenue Code of 1986, as amended, and its stock is traded on the over-the-counter market under the trading symbol FREVS.

 

The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the rules of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnotes required by GAAP for complete financial statements have been omitted. It is the opinion of management that all adjustments considered necessary for a fair presentation have been included, and that all such adjustments are of a normal recurring nature.

 

The consolidated results of operations for the six and three-month periods ended April 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other period. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in FREIT’s Annual Report on Form 10-K for the year ended October 31, 2023.
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Recently Issued Accounting Standards
 6 Months Ended
Apr. 30, 2024
Recently Issued Accounting Standard [Abstract]  
Recently issued accounting standards

Note 2 – Recently issued accounting standards:

 

In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04 “Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, and ASU 2021-01 “Reference Rate Reform (ASC 848): Scope” which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through the recently deferred date of December 31, 2024. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2024.

 

In November 2023, the FASB issued ASU No. 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”) to improve reportable segment disclosure requirements, primarily through enhanced disclosure about significant segment expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on its financial statement disclosure.
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Dividends and Earnings Per Share
 6 Months Ended
Apr. 30, 2024
Dividends and Earnings Per Share [Abstract]  
Dividends and earnings per share

Note 3 – Dividends and earnings per share:

 

The FREIT Board of Directors (“Board”) declared a dividend of approximately $373,000 ($0.05 per share) in the second quarter of Fiscal 2024, which will be paid on June 14, 2024 to stockholders of record on May 31, 2024.

 

Basic earnings per share is calculated by dividing net income attributable to common equity (numerator) by the weighted average number of shares outstanding during each period (denominator). The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional shares that would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options, were issued during the period using the Treasury Stock method. Under the Treasury Stock method, the assumption is that the proceeds received upon exercise of the options, including the unrecognized stock option compensation expense attributable to future services, are used to repurchase

 

FREIT’s stock at the average market price during the period, thereby increasing the number of shares to be added in computing diluted earnings per share. For both the six and three months ended April 30, 2024, the outstanding stock options increased the average dilutive shares outstanding by approximately 4,000 shares with no impact on earnings per share. For the six and three months ended April 30, 2023, the outstanding stock options increased the average dilutive shares outstanding by approximately 7,000 and 5,000 shares, respectively, with no impact on earnings per share. There were no anti-dilutive shares for the six and three months ended April 30, 2024 and 2023. Anti-dilutive shares consist of out-of-the money stock options under the Equity Incentive Plan (See Note 13).
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Fair Value Measurements
 6 Months Ended
Apr. 30, 2024
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 4 – Fair Value Measurements: 

 

Financial assets that are measured at fair value on our condensed consolidated balance sheets consist of (i) investments in U.S. Treasury securities (classified as available for sale) and (ii) interest rate swap contracts.

 

In accordance with ASC Topic 320, “Investments – Debt Securities”, FREIT is accounting for the investments in U.S. Treasury securities classified as available for sale in the amount of approximately $16,811,000 and $23,593,000, as of April 30, 2024 and October 31, 2023, respectively, at fair value. Any changes in the value of these securities are recorded as an unrealized gain or loss in other comprehensive income. At maturity, the realized gain or loss related to these investments is recognized in investment income in the condensed consolidated statements of income. For the six and three months ended April 30, 2024, FREIT recorded an unrealized loss of approximately $20,000 and $13,000, respectively, in the condensed consolidated statements of comprehensive (loss) income representing the change in the fair value of these available for sale investments in U.S. Treasury securities during such periods. There was no unrealized gain or loss recorded for the six and three months ended April 30, 2023. The fair values are based on quoted market prices (level 1 in the fair value hierarchy as provided by authoritative guidance).

 

In accordance with “Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815")”, FREIT has been accounting for the FREIT Regency, LLC (“Regency”) and Station Place on Monmouth (“Station Place”) interest rate swap contracts as cash flow hedges marking these contracts to market, taking into account present interest rates compared to the contracted fixed rate over the life of the contract and recording the unrealized gain or loss on the swaps in comprehensive income (loss). For the six and three months ended April 30, 2024, FREIT recorded an unrealized loss of approximately $273,000 and unrealized gain of $257,000, respectively, in the condensed consolidated statements of comprehensive (loss) income representing the change in the fair value of these cash flow hedges during such periods. For the six and three months ended April 30, 2023, FREIT recorded an unrealized loss of approximately $557,000 and $107,000, respectively, in the condensed consolidated statements of comprehensive loss representing the change in the fair value of these cash flow hedges during such periods. As of April 30, 2024, there was an asset of approximately $267,000 for the Regency swap and $796,000 for the Station Place swap. As of October 31, 2023, there was an asset of approximately $459,000 for the Regency swap and $877,000 for the Station Place swap. The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance).
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Investment in Tenancy-In-Common
 6 Months Ended
Apr. 30, 2024
Investment in Tenancy-In-Common [Abstract]  
Investment in tenancy-in-common

Note 5 – Investment in tenancy-in-common:

 

On February 28, 2020, FREIT reorganized its subsidiary S and A Commercial Associates Limited Partnership (“S&A”) from a partnership into a tenancy-in-common form of ownership (“TIC”). Prior to this reorganization, FREIT owned a 65% partnership interest in S&A, which owned 100% of the Pierre Towers property located in Hackensack, New Jersey through its 100% interest in Pierre Towers, LLC. Pursuant to the TIC agreement, FREIT ultimately acquired a 65% undivided interest in the Pierre Towers property, which was formerly owned by S&A. While FREIT’s effective ownership percentage in the Pierre Towers property remained unchanged after the reorganization to a TIC, FREIT no longer has a controlling interest in the TIC as the TIC is now under joint control. Based on the guidance of ASC 810, “Consolidation”, FREIT’s investment in the TIC is accounted for under the equity method of accounting.

 

FREIT’s investment in the TIC was approximately $17.6 million and $18.1 million at April 30, 2024 and October 31, 2023, respectively. For the six and three months ended April 30, 2024, FREIT recognized a loss on investment in TIC of approximately $47,000 and gain on investment of approximately $62,000, respectively, in the accompanying condensed consolidated statements of income. For the six and three months ended April 30, 2023, FREIT recognized a loss on investment in TIC of approximately $188,000 and $121,000, respectively, in the accompanying condensed consolidated statements of income.

 

Hekemian & Co., Inc. (“Hekemian & Co.”) manages the Pierre Towers property pursuant to a management agreement between the owners of the TIC and Hekemian & Co. dated as of February 28, 2020, which was for an initial term of one (1) year and which renews for successive one (1) year terms unless either party gives written notice of termination to the other party at least sixty (60) days prior to the end of the then-current term. The management agreement was renewed for a successive one (1) year term expiring on February 28, 2025.

 

The management agreement requires the payment of management fees equal to 5% of rents collected. Management fees, charged to operations, were approximately $210,000 and $105,000 for the six and three months ended April 30, 2024, respectively, and $208,000 and $106,000 for the six and three months ended April 30, 2023, respectively. The Pierre Towers property also uses the resources of the Hekemian & Co. insurance department to secure various insurance coverages for its property. Hekemian & Co. is

 

paid a commission for these services. There were no such commissions, charged to operations, for the six and three months ended April 30, 2024 and 2023.

 

The following table summarizes the balance sheets of the Pierre Towers property as of April 30, 2024 and October 31, 2023, accounted for by the equity method:

 

   April 30,   October 31, 
   2024   2023 
   (In Thousands of Dollars) 
         
Real estate, net  $73,321   $74,202 
Cash and cash equivalents   1,819    2,256 
Tenants' security accounts   502    478 
Receivables and other assets   605    455 
Total assets  $76,247   $77,391 
           
Mortgages payable, net of unamortized debt issuance costs  $47,943   $48,516 
Accounts payable and accrued expenses   483    295 
Tenants' security deposits   506    496 
Deferred revenue   185    181 
Equity   27,130    27,903 
Total liabilities & equity  $76,247   $77,391 
           
FREIT's investment in TIC (65% interest)  $17,635   $18,137 

 

The following table summarizes the statements of operations of the Pierre Towers property for the six and three months ended April 30, 2024 and 2023, accounted for by the equity method:

 

   Six Months Ended April 30,   Three Months Ended April 30, 
   2024   2023   2024   2023 
   (In Thousands of Dollars)   (In Thousands of Dollars) 
                 
Revenue  $4,243   $4,096   $2,128   $2,027 
Operating expenses   2,455    2,485    1,097    1,263 
Depreciation   1,115    1,101    558    551 
Operating income   673    510    473    213 
                     
Interest income   37    
—
    12    
—
 
                     
Interest expense including amortization of deferred financing costs   (782)   (799)   (390)   (399)
                     
Net (loss) income  $(72)  $(289)  $95   $(186)
                     
FREIT's (loss) gain on investment in TIC (65% interest)  $(47)  $(188)  $62   $(121)
v3.24.1.1.u2
Termination of Purchase and Sale Agreement
 6 Months Ended
Apr. 30, 2024
Termination of Purchase and Sale Agreement [Abstract]  
Termination of Purchase and Sale Agreement

Note 6 – Termination of Purchase and Sale Agreement:

 

FREIT previously reported in connection with litigation between FREIT and certain of its affiliates and Sinatra Properties, LLC (“Sinatra”) that on December 8, 2022 it had filed a Notice of Appeal with the Appellate Division of the New Jersey Superior Court (the “Appellate Division”) appealing that portion of the trial court’s February 4, 2022 ruling which declined to enforce the liquidated damages provision in the Purchase and Sale Agreement between FREIT and certain of its affiliates and Sinatra (the “Purchase Agreement”). On December 22, 2022, Sinatra filed a Notice of Cross Appeal appealing from all determinations by the trial court adverse to Sinatra, including (i) that portion of the trial court’s order holding that Sinatra breached the Purchase Agreement; (ii) the denial of Sinatra’s motion for reconsideration of the trial court’s order; and (iii) the trial court’s order awarding FREIT and certain of its affiliates $3,420,422.88 in attorneys’ fees and denying Sinatra’s request for attorneys’ fees.

 

On May 1, 2024, the Appellate Division issued its opinion affirming the trial court’s order that (1) held that Sinatra breached the Purchase Agreement; and (2) dismissed all of Sinatra’s other claims and lis pendens on the properties, and reversed that portion of the trial court’s ruling that held the liquidated damages provision of the Purchase Agreement unenforceable. The case was remanded by the Appellate Division to the trial court with direction that the trial court enter an order enforcing the liquidated damages provision and directing Sinatra or the escrow agent to pay to FREIT and certain of its affiliates $15 million in liquidated damages. In addition,

 

the Appellate Division affirmed the trial court’s order denying Sinatra’s motion for reconsideration and the order of the trial court granting the motion made by FREIT and certain of its affiliates for attorney’s fees and costs.

 

FREIT and its affiliates that are parties to this litigation intend to take the necessary actions to collect the $15 million in liquidated damages and the attorney’s fees and costs awarded to them.

 

As previously disclosed, FREIT and certain of its affiliates filed a complaint against Kushner Companies LLC (“Kushner”) asserting that Kushner used Sinatra as a shell to evade its debts and obligations and asking the Court to pierce the corporate veil and hold Kushner liable for Sinatra’s debts and obligations under the Purchase Agreement. Kushner filed a motion with the Court seeking to dismiss the complaint with prejudice. By Order of the Court dated February 2, 2024 (the “Order”), Kushner’s motion to dismiss the complaint was granted without prejudice for failure to join an indispensable party, Sinatra; the Court rejected all of Kushner’s other arguments seeking dismissal of the complaint with prejudice, and expressly granted FREIT the right to file an amended complaint adding Sinatra as a defendant. On February 8, 2024, FREIT filed the amended complaint naming Sinatra as an additional defendant and asserting the same claims as against Kushner. On March 11, 2024, Kushner and Sinatra filed a motion to dismiss FREIT’s amended complaint and seeking reconsideration of the Court’s order dismissing the initial complaint without prejudice. The Court denied the motion made by Kushner and Sinatra to dismiss and for reconsideration. On May 23, 2024, Kushner and Sinatra answered the veil piercing complaint, asserted several affirmative defenses to the claims made in the veil piercing complaint and filed a counterclaim against FREIT and its affiliates. In their counterclaim, Kushner and Sinatra contend that to the extent that they prevail in the veil piercing litigation, they are entitled to a monetary judgment in the amount of their reasonable attorney’s fees and costs incurred in connection with the defense of that action. FREIT will vigorously oppose the affirmative defenses and counterclaim asserted by Kushner and Sinatra.

 

Also, as previously disclosed, FREIT has incurred substantial costs in legal fees and related costs through April 30, 2024 in connection with the Sinatra litigation. FREIT expects to continue to incur additional costs until such time as (i) the appeal is resolved with respect to the Court’s decision to deny FREIT’s liquidated damages claim, and (ii) FREIT also resolves the additional claims to collect on its $3.42 million Judgment and obtain reimbursement of its ongoing legal costs and expenses. Although it is not possible to forecast the final outcome of this litigation, to date FREIT has successfully avoided Sinatra’s claim for specific performance under the Purchase Agreement and was awarded a favorable $3.42 million Judgement to be reimbursed for certain of its legal fees and expenses.

 

As of April 30, 2024, the $15 million deposit and the $3.42 million award for recovery of attorney’s fees and expenses have not been included in income in the accompanying condensed consolidated statements of income. Legal costs attributed to the legal proceeding between FREIT and certain of its affiliates and Sinatra Properties, LLC have been incurred in the amount of approximately $512,000 and $198,000 for the six and three months ended April 30, 2024, respectively, and $391,000 and $195,000 for the six and three months ended April 30, 2023, respectively, and are included in operating expenses on the condensed consolidated statements of income.
v3.24.1.1.u2
Maryland Property Dispositions
 6 Months Ended
Apr. 30, 2024
Maryland Property Dispositions [Abstract]  
Maryland property dispositions

Note 7 – Maryland property dispositions:

 

On November 22, 2021, certain affiliates (the “Maryland Sellers”) of FREIT entered into a Purchase and Sale Agreement (the “Maryland Purchase and Sale Agreement”) with MCB Acquisition Company, LLC (the “Maryland Purchaser”), a third party, pursuant to which the Maryland Sellers agreed to sell three properties to the Maryland Purchaser. The properties consisted of retail and office space and a residential apartment community owned by Grande Rotunda, LLC (the “Rotunda Property”), a shopping center owned by Damascus Centre, LLC (the “Damascus Property”), and a shopping center owned by WestFREIT Corp. (the “Westridge Square Property”). FREIT owns 100% of its subsidiary, WestFREIT Corp. (“WestFREIT”), a 60% interest in Grande Rotunda, LLC (“Grande Rotunda”), the joint venture that owned the Rotunda Property, and a 70% interest in Damascus Centre, LLC (“Damascus Centre”), the joint venture that owned the Damascus Property.

 

The sale of the Maryland Properties having a total net book value of $172.3 million (as adjusted) was consummated by the Maryland Sellers and the Maryland Purchaser for a purchase price of $248,750,269, after giving effect to the $15,526,731 escrow deposit (the “Maryland Purchaser Escrow Payment”). This sale resulted in net proceeds of approximately $58.7 million (inclusive of approximately $0.5 million in funds released from the Maryland Purchaser Escrow Payment for the six months ended April 30, 2024), after payment of related mortgage debt in the amount of $155.8 million and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on the Damascus Property loan, payment of loans (including interest) to each of the equity owners in Grande Rotunda in the amount of approximately $31 million and certain transactional expenses and transfer taxes including brokerage fees due to Hekemian & Co. of approximately $6.4 million (see Note 8 for additional details). As of April 30, 2024, approximately $7,084,000 of the Maryland Purchaser Escrow Payment has been released from escrow to the Maryland Sellers. The escrow and related gain on sale were reduced by approximately $171,000 and $92,000 for the six and three months ended April 30, 2024, respectively, and $446,000 and $203,000 for the six and three months ended April 30, 2023, respectively, due to a change in estimate related to a change in the timing of anticipated rent commencement dates for certain tenants, which will reduce the escrowed funds available to be released to Grande Rotunda. Approximately $0.2 million and $0.9 million of remaining funds are held in a post-closing escrow for rents and are included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheets as of April 30, 2024 and October 31, 2023,

 

respectively. These funds held in post-closing escrow are anticipated to be released by the end of Fiscal 2026. The sale of the Maryland Properties resulted in a net gain of approximately $67.6 million (as adjusted) (with a consolidated impact to FREIT of approximately $44.9 million) which includes approximately $7.3 million of proceeds released and anticipated to be released from funds held in escrow, a write-off of the straight-line rent receivable of approximately $2.9 million and a write-off of unamortized lease commissions of approximately $1.7 million.

 

On August 4, 2022, FREIT’s Board declared a special, extraordinary, non-recurring cash distribution of approximately $51.5 million, or $7.50 per share, which was paid on August 30, 2022, to stockholders of record on August 16, 2022 (with an ex-dividend date of August 31, 2022). This distribution represented most of the net proceeds of FREIT’s sale of its portfolio of Maryland Properties.

 

On July 12, 2023, FREIT’s Board declared an ordinary dividend of $0.05 per share and a special dividend of $0.25 per share to distribute funds released in Fiscal 2023 from the post-closing rent escrow established in connection with the sale of its portfolio of Maryland Properties. The total dividend of $0.30 per share was paid on September 15, 2023 to holders of record of said shares at the close of business on September 1, 2023.

 

As the disposal of the Maryland Properties did not represent a strategic shift that would have a major impact on FREIT’s operations or financial results, the properties’ operations were not reflected as discontinued operations in the accompanying consolidated financial statements.
v3.24.1.1.u2
Management Agreement, Fees and Transactions with Related Party
 6 Months Ended
Apr. 30, 2024
Management Agreement, Fees and Transactions with Related Party [Abstract]  
Management Agreement, Fees and Transactions with Related Party

Note 8 - Management agreement, fees and transactions with related party:

 

Hekemian & Co. currently manages all of the properties owned by FREIT and its affiliates. The management agreement between FREIT and Hekemian & Co. dated as of November 1, 2001 (“Management Agreement”) will expire on October 31, 2025 and is automatically renewed for successive periods of two years unless either party gives not less than six (6) months prior notice of non-renewal.

 

The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Such fees charged to operations were approximately $667,000 and $659,000 for the six months ended April 30, 2024 and 2023, respectively, and $331,000 and $332,000 for the three months ended April 30, 2024 and 2023, respectively. In addition, the Management Agreement provides for the payment to Hekemian & Co. of leasing commissions, as well as the reimbursement of certain operating expenses, such as payroll and insurance costs, incurred on behalf of FREIT. Such commissions and reimbursements amounted to approximately $315,000 and $322,000 for the six months ended April 30, 2024 and 2023, respectively, and $168,000 and $182,000 for the three months ended April 30, 2024 and 2023, respectively. FREIT also uses the resources of the Hekemian & Co. insurance department to secure various insurance coverages for its properties and subsidiaries. Hekemian & Co. is paid a commission for these services. Such commissions, charged to operations, were approximately $59,000 and $65,000 for the six months ended April 30, 2024 and 2023, respectively, and $3,000 and $16,000 for the three months ended April 30, 2024 and 2023, respectively.

 

From time to time, FREIT engages Hekemian & Co., or certain affiliates of Hekemian & Co., to provide additional services, such as consulting services related to development, property sales and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian & Co. and FREIT with respect to such additional services. Such fees incurred for the six and three months ended April 30, 2024 were approximately $89,400 and $76,000, respectively, and for the six and three months ended April 30, 2023 were approximately $21,000 and $21,000, respectively. Fees incurred during Fiscal 2024 related to commissions to Hekemian & Co. for the following: $32,500 for the renewal of FREIT’s line of credit; $22,400 for the modification and extension of the loan on the Steuben Arms property; $21,000 for the extension of the loan on the Westwood Plaza property; and $13,400 for the additional proceeds received from the post-closing rent escrow for the sale of the Rotunda Property. Fees incurred during Fiscal 2023 related to commissions to Hekemian & Co. for the modification and extension of the loan on the Westwood Plaza property. The commissions for the renewal of FREIT’s line of credit and the modification and extension of the loans were accounted for as a deferred mortgage cost and included in the unamortized debt issuance costs in the accompanying condensed consolidated balance sheets as of April 30, 2024 and October 31, 2023. The commission related to the sale of the Rotunda Property was charged against the gain on sale of the Maryland Properties (See Note 7) in the accompanying condensed consolidated statement of income for the six months ended April 30, 2024.

 

Robert S. Hekemian, Jr., Chief Executive Officer, President and a Director of FREIT, is the Chief Executive Officer of Hekemian & Co. David B. Hekemian, a Director of FREIT, is the President of Hekemian & Co. Allan Tubin, Chief Financial Officer and Treasurer of FREIT, is the Chief Financial Officer of Hekemian & Co. Director fee expense and/or executive compensation (including interest, dividends and stock awards) incurred by FREIT for the six months ended April 30, 2024 and 2023 was approximately $350,000 and $314,000, respectively, for Robert S. Hekemian, Jr., $22,000 and $21,000, respectively, for Allan Tubin and $50,000 and $46,000, respectively, for David Hekemian. Such costs are included within operating expenses on the accompanying condensed consolidated statements of income. Director fee expense and/or executive compensation (including stock awards) incurred by FREIT for the three months ended April 30, 2024 and 2023 was approximately $185,000 and $173,000, respectively, for Robert S. Hekemian, Jr., $11,000 and $11,000, respectively, for Allan Tubin and $35,000 and $33,000, respectively, for David Hekemian (See Notes 13 and 14). Such costs are included within operating expenses on the accompanying condensed consolidated statements of income.
v3.24.1.1.u2
Mortgage Financings and Line of Credit
 6 Months Ended
Apr. 30, 2024
Mortgage Financings and Line of Credit [Abstract]  
Mortgage financings and line of credit

Note 9 – Mortgage financings and line of credit:

 

On December 1, 2023, the mortgage secured by an apartment building located in River Edge, New Jersey in the amount of approximately $9 million came due. Provident Bank extended the initial maturity date of this loan for a 90-day period with a maturity date of March 1, 2024 and further extended this loan for another 60-day period with a new maturity date of June 1, 2024, based on the same terms and conditions of the existing loan agreement. On May 1, 2024, FREIT entered into a loan extension and modification agreement with Provident Bank. (See Note 18 for additional details.)

 

Effective February 1, 2023, FREIT entered into a loan extension and modification agreement with Valley National Bank on its loan secured by the Westwood Plaza shopping center located in Westwood, New Jersey with a then outstanding balance of approximately $16,864,361. Under the terms and conditions of this loan extension and modification, the maturity date of the loan was extended for a term of one (1) year from February 1, 2023 to February 1, 2024 with the option of FREIT to extend for one additional year from the extended maturity date, subject to certain provisions of the loan agreement. The loan was based on a fixed interest rate of 7.5% and was payable based on monthly installments of principal and interest of approximately $157,347. Additionally, FREIT funded an interest reserve escrow account (“Escrow”) at closing representing the annualized principal and interest payments for one (1) year, amounting to approximately $1,888,166. On October 31, 2023, FREIT exercised its right, pursuant to the loan agreement, to extend the term of this loan for one additional year from an initial maturity date of February 1, 2024 to a new maturity date of February 1, 2025. This loan extension is based on a fixed interest rate of 8.5% and is payable based on monthly installments of principal and interest of approximately $166,727. Additionally, FREIT funded the Escrow with an additional $112,556 increasing the Escrow balance to $2,000,722, which represents the annualized principal and interest payments for one (1) year under this loan extension. This Escrow is held at Valley National Bank and in the event of a default on this loan, the bank shall be permitted to use the proceeds from the Escrow to make monthly debt service payments on the loan.

 

On October 31, 2023, FREIT exercised its right, pursuant to the loan agreement, to extend the term of its $7.5 million loan on its property located in Rockaway, New Jersey, for an additional one year from an initial maturity date of January 1, 2024 to a new maturity date of January 1, 2025. The loan extension would have been based on a fixed interest rate of approximately 7.44%. On January 11, 2024, FREIT used cash on hand to fully repay this loan with a balance of $7.5 million.

 

On August 3, 2023, Westwood Hills refinanced its $25,000,000 loan (which would have matured on October 1, 2023) with a new loan held by Minnesota Life Insurance Company in the amount of $25,500,000. This loan is based on a fixed interest rate of 6.05%, provides for monthly payments of principal and interest of $153,706 and has a term of three years with a maturity date of September 1, 2026. This refinancing resulted in a decrease in the interest rate from a variable interest rate of approximately 9.21% (at the time of the refinancing) to a fixed interest rate of 6.05%.

 

FREIT’s revolving line of credit provided by Provident Bank was renewed for a three-year term ending on October 31, 2026. Draws against the credit line can be used for working capital needs and standby letters of credit. Draws against the credit line are secured by mortgages on FREIT’s Franklin Crossing Shopping Center in Franklin Lakes, New Jersey and retail space in Glen Rock, New Jersey. The total line of credit is $13 million and the interest rate on the amount outstanding is based on a floating interest rate of prime minus 25 basis points with a floor of 6.75%. As of April 30, 2024 and October 31, 2023, there was no amount outstanding and $13 million was available under the line of credit.

 

While FREIT intends to renew or refinance its debt obligations as they become due, there can be no assurance that it will be successful or, if successful, that the new terms will be similar to the terms of its existing debt obligations or as favorable.
v3.24.1.1.u2
Fair Value of Long-Term Debt
 6 Months Ended
Apr. 30, 2024
Fair Value of Long-Term Debt [Abstract]  
Fair value of long-term debt

Note 10 – Fair value of long-term debt:

 

The following table shows the estimated fair value and net carrying value of FREIT’s long-term debt at April 30, 2024 and October 31, 2023:

 

($ in Millions)   April 30, 2024   October 31, 2023
         
Fair Value   $123.8   $130.8
         
Carrying Value, Net $128.7   $137.1

 

Fair values are estimated based on market interest rates at April 30, 2024 and October 31, 2023 and on a discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value is based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance).
v3.24.1.1.u2
Segment Information
 6 Months Ended
Apr. 30, 2024
Segment Information [Abstract]  
Segment information

Note 11 - Segment information:

 

ASC 280-10, "Disclosures about Segments of an Enterprise and Related Information", establishes standards for reporting financial information about operating segments in interim and annual financial reports and provides for a "management approach" in identifying the reportable segments. FREIT has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires

 

different operating strategies and management expertise. The commercial segment is comprised of five (5) properties and the residential segment is comprised of six (6) properties.

 

The accounting policies of the segments are the same as those described in Note 1 in FREIT’s Annual Report on Form 10-K for the fiscal year ended October 31, 2023. The chief operating and decision-making group responsible for oversight and strategic decisions of FREIT's commercial segment, residential segment and corporate/other is comprised of FREIT’s Board.

 

FREIT, through its chief operating and decision making group, assesses and measures segment operating results based on net operating income ("NOI"). NOI, a standard used by real estate professionals, is based on operating revenue and expenses directly associated with the operations of the real estate properties, but excludes: deferred rents (straight lining), depreciation, financing costs and other items. NOI is not a measure of operating results or cash flows from operating activities as measured by GAAP, and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity.

 

Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income attributable to common equity for the six and three months ended April 30, 2024 and 2023. Asset information is not reported since FREIT does not use this measure to assess performance.

 

   Six Months Ended  Three Months Ended
   April 30,  April 30,
   2024  2023  2024  2023
   (In Thousands of Dollars)  (In Thousands of Dollars)
Real estate rental revenue:                    
Commercial  $4,064   $4,338   $2,083   $2,084 
Residential   10,268    9,633    5,221    4,880 
Total real estate rental revenue   14,332    13,971    7,304    6,964 
                     
Real estate operating expenses:                    
Commercial   2,593    2,488    1,266    1,241 
Residential   4,455    4,337    2,273    2,197 
Total real estate operating expenses   7,048    6,825    3,539    3,438 
                     
Net operating income:                    
Commercial   1,471    1,850    817    843 
Residential   5,813    5,296    2,948    2,683 
Total net operating income  $7,284   $7,146   $3,765   $3,526 
                     
                     
Recurring capital improvements - residential  $(265)  $(290)  $(169)  $(145)
                     
                     
Reconciliation to condensed consolidated net income attributable to common equity:                    
Segment NOI  $7,284   $7,146   $3,765   $3,526 
Deferred rents - straight lining   (58)   (76)   (29)   (48)
Investment income   686    407    279    218 
General and administrative expenses   (2,823)   (1,802)   (1,015)   (975)
(Loss) gain on investment in tenancy-in-common   (47)   (188)   62    (121)
Depreciation   (1,514)   (1,454)   (789)   (732)
Net loss on sale of Maryland properties   (171)   (446)   (92)   (203)
Financing costs   (3,624)   (3,827)   (1,782)   (1,951)
Net (loss) income   (267)   (240)   399    (286)
Net loss attributable to noncontrolling interests in subsidiaries   288    756    134    383 
Net income attributable to common equity  $21   $516   $533   $97 
v3.24.1.1.u2
Income Taxes
 6 Months Ended
Apr. 30, 2024
Income Tax [Abstract]  
Income taxes

Note 12 – Income taxes:

 

FREIT has elected to be treated as a REIT for federal income tax purposes and as such intends to distribute at least 90% of its ordinary taxable income (to maintain its status as a REIT) to its stockholders as dividends for the fiscal year ending October 31, 2024. There was no taxable income or capital gain for the fiscal year ended October 31, 2023. Accordingly, no provision for federal or state income taxes was recorded in FREIT’s condensed consolidated financial statements for the six and three months ended April 30, 2024 and 2023.

 

As of April 30, 2024, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2020 remain open to examination by the major taxing jurisdictions.
v3.24.1.1.u2
Equity Incentive Plan
 6 Months Ended
Apr. 30, 2024
Equity Incentive Plan [Abstract]  
Equity Incentive Plan

Note 13 – Equity Incentive Plan:

 

On March 22, 2024, in accordance with FREIT’s Equity Incentive Plan (the “Plan”), the Compensation Committee of FREIT’s Board recommended to the Board and the Board approved that for services rendered and to be rendered in Fiscal 2024, in lieu of cash compensation in the amount of $20,000, each director was awarded shares of Common Stock, $0.01 par value, (the “Shares”)

 

in FREIT. Based on the closing price of FREIT’s Shares on March 22, 2024 of $16.25 per Share, the Board approved an award of 1,230 Shares of FREIT to each director serving on FREIT’s Board. As such, 1,230 Shares were issued to each director on March 22, 2024 and upon issuance were deemed fully paid and non-assessable.

 

On March 9, 2023, in accordance with the Plan, the Compensation Committee of FREIT’s Board recommended to the Board and the Board approved that for services rendered and to be rendered in Fiscal 2023, in lieu of cash compensation in the amount of $20,000, each director was awarded Shares in FREIT. Based on the closing price of FREIT’s Shares on March 9, 2023 of $15.50 per Share, the Board approved an award of 1,290 Shares of FREIT to each director serving on FREIT’s Board. As such, 1,290 Shares were issued to each director on March 9, 2023 and upon issuance were deemed fully paid and non-assessable. Additionally, the Compensation Committee recommended to the Board and the Board approved other adjustments to the compensation to be paid to directors and the executive officers of FREIT.

 

As of April 30, 2024, 424,420 shares are available for issuance under the Plan.

 

The following table summarizes stock option activity for the six and three months ended April 30, 2024 and 2023:

 

   Six and Three Months Ended April 30,  
   2024  
   No. of Options  Weighted Average  
   Outstanding  Price  
Options outstanding at beginning of period   8,440   $9.21   
Options granted during period   
—
    
—
   
Options forfeited/cancelled during period   
—
    
—
   
Options exercised during period   
—
    
—
   
Options outstanding at end of period   8,440   $9.21   
Options vested   8,440        
Options exercisable at end of period   8,440        
             

 

   Six Months Ended April 30,  Three Months Ended April 30,
   2023  2023
   No. of Options  Weighted Average  No. of Options  Weighted Average
   Outstanding  Price  Outstanding  Price
Options outstanding at beginning of period   126,140   $10.64    13,240   $8.74 
Options granted during period   
—
    
—
    
—
    
—
 
Options forfeited/cancelled during period   
—
    
—
    
—
    
—
 
Options exercised during period   (113,900)   (10.83)   (1,000)   (7.50)
Options outstanding at end of period   12,240   $8.84    12,240   $8.84 
Options vested and expected to vest   11,100         11,100      
Options exercisable at end of period   3,640         3,640      

 

For the six and three months ended April 30, 2024, compensation expense related to stock options vested amounted to approximately $1,000 and $0, respectively. For the six and three months ended April 30, 2023, compensation expense related to stock options vested amounted to approximately $10,000 and $5,000, respectively. At April 30, 2024, all stock options were fully vested and exercisable with no compensation cost remaining to be recognized. The aggregate intrinsic value of options vested and exercisable at April 30, 2024 was approximately $61,000. For the six and three months ended April 30, 2024, there were no options exercised. For the six and three months ended April 30, 2023, 113,900 and 1,000 options, respectively, were exercised for an aggregate amount of approximately $1.2 million and $7,500, respectively.
v3.24.1.1.u2
Termination of Deferred Fee Plan
 6 Months Ended
Apr. 30, 2024
Termination of Deferred Fee Plan [Abstract]  
Termination of Deferred Fee Plan

Note 14 – Termination of Deferred Fee Plan:

 

On November 4, 2021 (the “Adoption Date”), the Board approved the termination of the Deferred Fee Plan resulting in the termination of the deferral of fees on December 31, 2021 with any subsequent fees earned by a participant being paid in cash. Consistent with the termination of the Deferred Fee Plan, payment related to each participant’s cash account (in the form of a cash lump sum payment) and share unit account (in the form of the issuance of common stock) (collectively “the Deferred Fee Plan Termination Payment”) was made to each participant no earlier than twelve (12) months and one day after, and no later than twenty-four (24) months, after the Adoption Date. Any interest earned on the participant’s cash account along with dividends (if any) earned on share units, continued to accrue in share units on each participant’s account until final payment was made. On January 20, 2023, in accordance with the Deferred Fee Plan Termination Payment, total payments related to the cash accounts of all participants of approximately $2,317,000 (consisting of approximately $1,366,000 of cumulative fees and approximately $951,000 of accrued interest) which had been deferred as of November 1, 2014, was paid in full to each respective participant with no remaining balance due. Additionally, payment related to each participant’s share unit account was made in the form of the issuance of stock to each respective participant resulting in the issuance of 274,509 shares of common stock for each of the 274,509 vested share units. There were no remaining vested share units to be paid in the form of the issuance of stock.
v3.24.1.1.u2
Rental Income
 6 Months Ended
Apr. 30, 2024
Rental Income [Abstract]  
Rental Income

Note 15 – Rental Income:

 

Commercial tenants:

 

Fixed lease income under our commercial operating leases generally includes fixed minimum lease consideration, which is accrued on a straight-line basis over the terms of the leases. Variable lease income includes consideration based on sales, as well as reimbursements for real estate taxes, maintenance, insurance and certain other operating expenses of the properties.

 

Minimum fixed lease consideration (in thousands of dollars) under non-cancelable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration and rents from tenants for which collectability is deemed to be constrained, for the years ending October 31, as of April 30, 2024, is as follows:

 

Year Ending October 31,   Amount
2024   $  5,043
2025     4,209
2026     3,286
2027     2,096
2028     1,125
Thereafter     3,697
Total   $ 19,456

 

The above amounts assume that all leases that expire are not renewed and, accordingly, neither month-to-month nor rentals from replacement tenants are included.

 

Minimum future rentals do not include contingent rentals, which may be received under certain leases on the basis of percentage of reported tenants' sales volume. Rental income that is contingent on future events is not included in income until the contingency is resolved. Contingent rentals included in income for the six and three months ended April 30, 2024 and 2023 were not material.

 

Residential tenants:

 

Lease terms for residential tenants are usually one to two years.
v3.24.1.1.u2
Stockholder Rights Plan
 6 Months Ended
Apr. 30, 2024
Stockholder Rights Plan [Abstract]  
Stockholder Rights Plan

Note 16 – Stockholder Rights Plan:

 

On July 28, 2023, FREIT’s Board adopted a stockholder rights plan, as set forth in the Stockholder Rights Agreement, dated July 31, 2023, between the Company and Computershare Trust Company, N.A., as Rights Agent (the “Rights Agreement”). Pursuant to the terms of the Rights Agreement, the Board declared a dividend distribution of one Preferred Stock Purchase Right (a “Right”) for each outstanding share of common stock, par value $0.01 per share, of the Company (the “Common Stock”) to stockholders of record as of the close of business on August 11, 2023 (the “Record Date”). In addition, one Right will automatically attach to each share of Common Stock issued between the Record Date and the Distribution Date (as hereinafter defined). Each Right entitles the registered holder thereof to purchase from the Company a unit consisting of one ten-thousandth of a share (a “Unit”) of Series A Junior Participating Cumulative Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Stock”) at a cash exercise price of $95.00 per Unit (the “Exercise Price”), subject to adjustment, under certain conditions specified in the Rights Agreement.

 

Initially, the Rights are not exercisable and are attached to and trade with all shares of Common Stock outstanding as of, and issued subsequent to, the Record Date. The Rights will separate from the Common Stock and will become exercisable upon the earlier of (i) the close of business on the tenth calendar day following the first public announcement that a person or group of affiliated or associated persons (an “Acquiring Person”) has acquired beneficial ownership of 10% or more of the outstanding shares of Common Stock, other than as a result of repurchases of stock by the Company or certain inadvertent actions by a stockholder (the date of said announcement being referred to as the “Stock Acquisition Date”), or (ii) the close of business on the tenth business day (or such later day as the Board of Directors may determine) following the commencement of a tender offer or exchange offer that could result upon its consummation in a person or group becoming an Acquiring Person (the earlier of such dates being herein referred to as the “Distribution Date”).
v3.24.1.1.u2
Kmart Lease Termination
 6 Months Ended
Apr. 30, 2024
Rental Income [Abstract]  
Kmart Lease Termination

Note 17 – Kmart Lease Termination:

 

On June 24, 2023, the owner/operator of the 84,254 square foot Kmart store located at our Westwood Plaza shopping center in Westwood, New Jersey informed FREIT of its intent to sublet its space to three unidentified retail tenants. The term of the lease for Kmart expired on October 31, 2027 with two 5-year renewal options remaining. The lease agreement provided that base rent payments were fixed at $4.00 per square foot ($336,720 annually) and additional rent for common area maintenance and insurance costs were based on an amount less than Kmart’s pro rata share of the shopping center. While significant tenant and/or capital improvements will be necessary to fit-up this space for a new tenant or tenants, FREIT believes potentially higher rent amounts, if achieved, will more than offset lost rent from Kmart and other tenants with co-tenancy clauses and will only increase the overall value of the shopping center. Accordingly, on July 24, 2023, FREIT denied Kmart’s request and elected pursuant to the lease to terminate the Kmart lease effective October 19, 2023. Thus, FREIT now has full control of this space instead of waiting another 14 years to renegotiate or re-lease this space at a higher market rent.
v3.24.1.1.u2
Subsequent Event
 6 Months Ended
Apr. 30, 2024
Subsequent Events [Abstract]  
Subsequent Event

Note 18 – Subsequent Event:

 

On May 1, 2024, FREIT entered into a loan extension and modification agreement with Provident Bank, effective June 1, 2024, on its loan secured by an apartment building located in River Edge, New Jersey with a then outstanding loan balance of approximately $8.9 million. Under the terms and conditions of this loan extension and modification, the maturity date of this loan is extended for three years to May 31, 2027, will require monthly installments of principal and interest of approximately $58,016 and will be based on a fixed interest rate of 6.75%.
v3.24.1.1.u2
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 533 $ 97 $ 21 $ 516
v3.24.1.1.u2
Insider Trading Arrangements
 3 Months Ended
Apr. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.1.1.u2
Investment in Tenancy-In-Common (Tables)
 6 Months Ended
Apr. 30, 2024
Investment in Tenancy-In-Common [Abstract]  
Schedule of Balance Sheet of Pierre Property The following table summarizes the balance sheets of the Pierre Towers property as of April 30, 2024 and October 31, 2023, accounted for by the equity method:
   April 30,   October 31, 
   2024   2023 
   (In Thousands of Dollars) 
         
Real estate, net  $73,321   $74,202 
Cash and cash equivalents   1,819    2,256 
Tenants' security accounts   502    478 
Receivables and other assets   605    455 
Total assets  $76,247   $77,391 
           
Mortgages payable, net of unamortized debt issuance costs  $47,943   $48,516 
Accounts payable and accrued expenses   483    295 
Tenants' security deposits   506    496 
Deferred revenue   185    181 
Equity   27,130    27,903 
Total liabilities & equity  $76,247   $77,391 
           
FREIT's investment in TIC (65% interest)  $17,635   $18,137 
Schedule of Operations of Pierre Property The following table summarizes the statements of operations of the Pierre Towers property for the six and three months ended April 30, 2024 and 2023, accounted for by the equity method:
   Six Months Ended April 30,   Three Months Ended April 30, 
   2024   2023   2024   2023 
   (In Thousands of Dollars)   (In Thousands of Dollars) 
                 
Revenue  $4,243   $4,096   $2,128   $2,027 
Operating expenses   2,455    2,485    1,097    1,263 
Depreciation   1,115    1,101    558    551 
Operating income   673    510    473    213 
                     
Interest income   37    
—
    12    
—
 
                     
Interest expense including amortization of deferred financing costs   (782)   (799)   (390)   (399)
                     
Net (loss) income  $(72)  $(289)  $95   $(186)
                     
FREIT's (loss) gain on investment in TIC (65% interest)  $(47)  $(188)  $62   $(121)
v3.24.1.1.u2
Fair Value of Long-Term Debt (Tables)
 6 Months Ended
Apr. 30, 2024
Fair Value of Long-Term Debt [Abstract]  
Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt The following table shows the estimated fair value and net carrying value of FREIT’s long-term debt at April 30, 2024 and October 31, 2023:
($ in Millions)   April 30, 2024   October 31, 2023
         
Fair Value   $123.8   $130.8
         
Carrying Value, Net $128.7   $137.1
v3.24.1.1.u2
Segment Information (Tables)
 6 Months Ended
Apr. 30, 2024
Segment Information [Abstract]  
Schedule of Condensed Consolidated Net Income Attributable to Common Equity Asset information is not reported since FREIT does not use this measure to assess performance.
   Six Months Ended  Three Months Ended
   April 30,  April 30,
   2024  2023  2024  2023
   (In Thousands of Dollars)  (In Thousands of Dollars)
Real estate rental revenue:                    
Commercial  $4,064   $4,338   $2,083   $2,084 
Residential   10,268    9,633    5,221    4,880 
Total real estate rental revenue   14,332    13,971    7,304    6,964 
                     
Real estate operating expenses:                    
Commercial   2,593    2,488    1,266    1,241 
Residential   4,455    4,337    2,273    2,197 
Total real estate operating expenses   7,048    6,825    3,539    3,438 
                     
Net operating income:                    
Commercial   1,471    1,850    817    843 
Residential   5,813    5,296    2,948    2,683 
Total net operating income  $7,284   $7,146   $3,765   $3,526 
                     
                     
Recurring capital improvements - residential  $(265)  $(290)  $(169)  $(145)
                     
                     
Reconciliation to condensed consolidated net income attributable to common equity:                    
Segment NOI  $7,284   $7,146   $3,765   $3,526 
Deferred rents - straight lining   (58)   (76)   (29)   (48)
Investment income   686    407    279    218 
General and administrative expenses   (2,823)   (1,802)   (1,015)   (975)
(Loss) gain on investment in tenancy-in-common   (47)   (188)   62    (121)
Depreciation   (1,514)   (1,454)   (789)   (732)
Net loss on sale of Maryland properties   (171)   (446)   (92)   (203)
Financing costs   (3,624)   (3,827)   (1,782)   (1,951)
Net (loss) income   (267)   (240)   399    (286)
Net loss attributable to noncontrolling interests in subsidiaries   288    756    134    383 
Net income attributable to common equity  $21   $516   $533   $97 
v3.24.1.1.u2
Equity Incentive Plan (Tables)
 6 Months Ended
Apr. 30, 2024
Equity Incentive Plan [Abstract]  
Schedule of Stock Option Activity The following table summarizes stock option activity for the six and three months ended April 30, 2024 and 2023:
   Six and Three Months Ended April 30,  
   2024  
   No. of Options  Weighted Average  
   Outstanding  Price  
Options outstanding at beginning of period   8,440   $9.21   
Options granted during period   
—
    
—
   
Options forfeited/cancelled during period   
—
    
—
   
Options exercised during period   
—
    
—
   
Options outstanding at end of period   8,440   $9.21   
Options vested   8,440        
Options exercisable at end of period   8,440        
             
   Six Months Ended April 30,  Three Months Ended April 30,
   2023  2023
   No. of Options  Weighted Average  No. of Options  Weighted Average
   Outstanding  Price  Outstanding  Price
Options outstanding at beginning of period   126,140   $10.64    13,240   $8.74 
Options granted during period   
—
    
—
    
—
    
—
 
Options forfeited/cancelled during period   
—
    
—
    
—
    
—
 
Options exercised during period   (113,900)   (10.83)   (1,000)   (7.50)
Options outstanding at end of period   12,240   $8.84    12,240   $8.84 
Options vested and expected to vest   11,100         11,100      
Options exercisable at end of period   3,640         3,640      
v3.24.1.1.u2
Rental Income (Tables)
 6 Months Ended
Apr. 30, 2024
Rental Income [Abstract]  
Schedule of Minimum Fixed Lease Consideration Under Non-Cancelable Tenant Operating Leases Minimum fixed lease consideration (in thousands of dollars) under non-cancelable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration and rents from tenants for which collectability is deemed to be constrained, for the years ending October 31, as of April 30, 2024, is as follows:
Year Ending October 31,   Amount
2024   $  5,043
2025     4,209
2026     3,286
2027     2,096
2028     1,125
Thereafter     3,697
Total   $ 19,456
v3.24.1.1.u2
Dividends and Earnings Per Share (Details) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Sep. 15, 2023
Jul. 12, 2023
Dividends and Earnings Per Share [Line Items]            
Dividends price per share (in Dollars per share)         $ 0.3 $ 0.25
Stock options dilutive shares outstanding 4,000 5,000 4,000 7,000    
Board of Directors [Member]            
Dividends and Earnings Per Share [Line Items]            
Dividends (in Dollars)     $ 373,000      
Dividend Declared [Member]            
Dividends and Earnings Per Share [Line Items]            
Dividends price per share (in Dollars per share) $ 0.05   $ 0.05      
v3.24.1.1.u2
Fair Value Measurements (Details) - USD ($)
 3 Months Ended 6 Months Ended
Oct. 31, 2023
Apr. 30, 2024
Jan. 31, 2024
Apr. 30, 2023
Jan. 31, 2023
Apr. 30, 2024
Apr. 30, 2023
Fair Value Measurements [Line Items]              
Available for sale $ 23,593,000 $ 16,811,000       $ 16,811,000  
Unrealized loss   13,000       20,000  
Unrealized gain (loss)   $ 257,000 $ (530,000) $ (107,000) $ (450,000) (273,000) $ (557,000)
Regency Swap [Member]              
Fair Value Measurements [Line Items]              
Unrealized gain (loss) 459,000         267,000  
Station Place Swap [Member]              
Fair Value Measurements [Line Items]              
Unrealized gain (loss) $ 877,000         $ 796,000  
v3.24.1.1.u2
Investment in Tenancy-In-Common (Details) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Oct. 31, 2023
Feb. 28, 2020
Investment in Tenancy in Common [Line Items]            
Investment in tenancy-in-common $ 17,635,000   $ 17,635,000   $ 18,137,000  
Gain (loss) on investment 62,000 $ (121,000) $ (47,000) $ (188,000)    
Percentage of management fees of rent collected     5.00%      
Management fees 331,000 333,000 $ 667,000 659,000    
S and A Commercial Associates Limited Partnership [Member]            
Investment in Tenancy in Common [Line Items]            
Percentage of ownership interest           65.00%
Pierre Towers [Member]            
Investment in Tenancy in Common [Line Items]            
Percentage of ownership interest           100.00%
Pierre Towers, LLC [Member]            
Investment in Tenancy in Common [Line Items]            
Percentage of ownership interest           100.00%
TIC Agreement [Member]            
Investment in Tenancy in Common [Line Items]            
Percentage of ownership interest           65.00%
Hekemian & Co [Member]            
Investment in Tenancy in Common [Line Items]            
Management fees 105,000 $ 106,000 210,000 $ 208,000    
Freit’S Investment [Member]            
Investment in Tenancy in Common [Line Items]            
Investment in tenancy-in-common $ 17,600,000   $ 17,600,000   $ 18,100,000  
v3.24.1.1.u2
Investment in Tenancy-In-Common (Details) - Schedule of Balance Sheet of Pierre Property - Equity Method Investments [Member] - USD ($)
$ in Thousands
Apr. 30, 2024
Oct. 31, 2023
Investment in Tenancy in Common [Line Items]    
Real estate, net $ 73,321 $ 74,202
Cash and cash equivalents 1,819 2,256
Tenants' security accounts 502 478
Receivables and other assets 605 455
Total assets 76,247 77,391
Mortgages payable, net of unamortized debt issuance costs 47,943 48,516
Accounts payable and accrued expenses 483 295
Tenants' security deposits 506 496
Deferred revenue 185 181
Equity 27,130 27,903
Total liabilities & equity 76,247 77,391
FREIT's investment in TIC (65% interest) $ 17,635 $ 18,137
v3.24.1.1.u2
Investment in Tenancy-In-Common (Details) - Schedule of Balance Sheet of Pierre Property (Parentheticals)
Apr. 30, 2024
Oct. 31, 2023
Equity Method Investments [Member]    
Investment in Tenancy in Common [Line Items]    
FREIT's investment in TIC 65.00% 65.00%
v3.24.1.1.u2
Investment in Tenancy-In-Common (Details) - Schedule of Operations of Pierre Property - Equity Method Investments [Member] - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Investment in Tenancy in Common [Line Items]        
Revenue $ 2,128 $ 2,027 $ 4,243 $ 4,096
Operating expenses 1,097 1,263 2,455 2,485
Depreciation 558 551 1,115 1,101
Operating income 473 213 673 510
Interest income 12 37
Interest expense including amortization of deferred financing costs (390) (399) (782) (799)
Net (loss) income 95 (186) (72) (289)
FREIT's (loss) gain on investment in TIC (65% interest) $ 62 $ (121) $ (47) $ (188)
v3.24.1.1.u2
Termination of Purchase and Sale Agreement (Details) - USD ($)
 3 Months Ended 6 Months Ended
May 01, 2024
Dec. 22, 2022
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Oct. 31, 2023
Attorneys’ fees   $ 3,420,422.88          
Liquidated damages $ 15,000,000            
Litigation settlement $ 15,000,000            
Additional amount     $ 3,420,000   $ 3,420,000    
Legal fees and expenses         3,420,000    
Escrow deposit amount     15,000,000   15,000,000   $ 112,556
Attorney’s fees         3,420,000    
Incurred amount     $ 198,000 $ 195,000 $ 512,000 $ 391,000  
v3.24.1.1.u2
Maryland Property Dispositions (Details) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Oct. 31, 2023
Aug. 04, 2022
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Sep. 15, 2023
Jul. 12, 2023
Nov. 22, 2021
Maryland Property Dispositions [Line Items]                    
Net book value $ 172,300,000     $ 172,300,000   $ 172,300,000        
Purchase price           248,750,269        
Escrow deposit           3,363,000 $ 2,983,000      
Net proceeds from sale           58,700,000        
Funds released from maryland purchaser escrow payment           500,000        
Payment of related mortgage debt           155,800,000        
Breakage fees           213,000        
Payment of loans           31,000,000        
Brokerage fees           6,400,000        
Purchase of Escrow Payment           7,084,000        
Gain on sale of investments       92,000   171,000 446,000      
Gain on sale of investment         $ 203,000          
Funds held in post-closing escrow. $ 200,000 $ 900,000       (189,000) (4,651,000)      
Net loss on sale of Maryland properties       $ (92,000) $ (203,000) (171,000) $ (446,000)      
Consolidated impact to FREIT Amount           44,900,000        
Proceeds from released funds held in escrow           7,300,000        
Straight-line rent receivable           2,900,000        
Write-off of unamortized lease commissions           1,700,000        
Cash distribution, per share (in Dollars per share)     $ 7.5              
Dividend per share (in Dollars per share)               $ 0.3 $ 0.25  
Related Party [Member]                    
Maryland Property Dispositions [Line Items]                    
Escrow deposit           15,526,731        
FREIT [Member]                    
Maryland Property Dispositions [Line Items]                    
Ownership percentage                   100.00%
Cash distribution     $ 51,500,000              
Dividend per share (in Dollars per share)                 $ 0.05  
Grande Rotunda, LLC [Member]                    
Maryland Property Dispositions [Line Items]                    
Ownership percentage                   60.00%
Damascus Centre, LLC [Member]                    
Maryland Property Dispositions [Line Items]                    
Ownership percentage                   70.00%
Fiscal 2026 [Member]                    
Maryland Property Dispositions [Line Items]                    
Net loss on sale of Maryland properties           $ 67,600,000        
v3.24.1.1.u2
Management Agreement, Fees and Transactions with Related Party (Details) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Fees charged to operations $ 331,000 $ 333,000 $ 667,000 $ 659,000
Commissions and reimbursements amount 168,000 182,000 315,000 322,000
Incurred fees 76,000 21,000 89,400 21,000
Director fee expense 185,000 173,000 350,000 314,000
Hekemian & Co [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Fees charged to operations 331,000 332,000 667,000 659,000
Commissions and reimbursements amount 3,000 16,000 59,000 65,000
Hekemian & Co [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Line of credit renewal 32,500   32,500  
Steuben Arms Property [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Line of credit renewal 22,400   22,400  
Westwood Plaza Property [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Line of credit renewal 21,000   21,000  
Rotunda Property [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Post-closing rent     $ 13,400  
Minimum [Member] | Hekemian & Co [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Management fee percentage     4.00%  
Maximum [Member] | Hekemian & Co [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Management fee percentage     5.00%  
Robert S. Hekemian, Jr. [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Director fee expense 11,000 11,000 $ 22,000 21,000
Allan Tubin [Member]        
Management Agreement, Fees and Transactions with Related Party [Line Items]        
Director fee expense $ 35,000 $ 33,000 $ 50,000 $ 46,000
v3.24.1.1.u2
Mortgage Financings and Line of Credit (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jan. 11, 2024
Dec. 01, 2023
Oct. 31, 2023
Aug. 03, 2023
Apr. 30, 2024
Apr. 30, 2023
Apr. 30, 2024
Apr. 30, 2023
Feb. 01, 2023
Mortgage Financings and Line of Credit [Line Items]                  
Repayment of debt amount $ 7,500,000 $ 9,000,000              
Outstanding balance                 $ 16,864,361
Fixed interest rate percentage     8.50%           7.50%
Installment amount     $ 138,179,000   $ 129,756,000   $ 129,756,000   $ 157,347
Interest payments                 $ 1,888,166
Principal interest     166,727   1,782,000 $ 1,951,000 3,624,000 $ 3,827,000  
Escrow amount     112,556   15,000,000   15,000,000    
Increasing the escrow balance     2,000,722            
Loan amount     7,500,000            
Fixed interest rate       6.05%          
Loan amount       $ 25,500,000          
Variable interest rate       9.21%          
Total line of credit         13,000,000   13,000,000    
Line of credit, available     $ 13,000,000        
FREIT [Member]                  
Mortgage Financings and Line of Credit [Line Items]                  
Debt instrument maturity date description             for an additional one year from an initial maturity date of January 1, 2024 to a new maturity date of January 1, 2025    
Fixed interest rate     7.44% 6.05%          
Monthly payments of principal       $ 153,706          
Westwood Hills [Member]                  
Mortgage Financings and Line of Credit [Line Items]                  
Loan amount       $ 25,000,000          
Floating Interest Rate [Member]                  
Mortgage Financings and Line of Credit [Line Items]                  
Basis points, interest rate             6.75%    
v3.24.1.1.u2
Fair Value of Long-Term Debt (Details) - Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt - $ / shares
Apr. 30, 2024
Oct. 31, 2023
Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt [Abstract]    
Fair Value $ 123.8 $ 130.8
Carrying Value, Net $ 128.7 $ 137.1
v3.24.1.1.u2
Segment Information (Details)
 6 Months Ended
Apr. 30, 2024
Segment Information [Abstract]  
Number of segments 2
v3.24.1.1.u2
Segment Information (Details) - Schedule of Condensed Consolidated Net Income Attributable to Common Equity - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Jan. 31, 2024
Apr. 30, 2023
Jan. 31, 2023
Apr. 30, 2024
Apr. 30, 2023
Real estate rental revenue:            
Real estate rental revenue $ 7,304   $ 6,964   $ 14,332 $ 13,971
Real estate operating expenses:            
Real estate operating expenses 3,539   3,438   7,048 6,825
Net operating income:            
Net operating income 3,765   3,526   7,284 7,146
Recurring capital improvements - residential (169)   (145)   (265) (290)
Reconciliation to condensed consolidated net income attributable to common equity:            
Segment NOI 3,765   3,526   7,284 7,146
Deferred rents - straight lining (29)   (48)   (58) (76)
Investment income 279   218   686 407
General and administrative expenses (1,015)   (975)   (2,823) (1,802)
(Loss) gain on investment in tenancy-in-common 62   (121)   (47) (188)
Depreciation (789)   (732)   (1,514) (1,454)
Net loss on sale of Maryland properties (92)   (203)   (171) (446)
Financing costs (1,782)   (1,951)   (3,624) (3,827)
Net (loss) income 399 $ (666) (286) $ 46 (267) (240)
Net loss attributable to noncontrolling interests in subsidiaries 134   383   288 756
Net income attributable to common equity 533   97   21 516
Commercial [Member]            
Real estate rental revenue:            
Real estate rental revenue 2,083   2,084   4,064 4,338
Real estate operating expenses:            
Real estate operating expenses 1,266   1,241   2,593 2,488
Net operating income:            
Net operating income 817   843   1,471 1,850
Residential [Member]            
Real estate rental revenue:            
Real estate rental revenue 5,221   4,880   10,268 9,633
Real estate operating expenses:            
Real estate operating expenses 2,273   2,197   4,455 4,337
Net operating income:            
Net operating income $ 2,948   $ 2,683   $ 5,813 $ 5,296
v3.24.1.1.u2
Income Taxes (Details)
Oct. 31, 2024
Forecast [Member]  
Income Taxes (Details) [Line Items]  
Percentage of ordinary taxable income 90.00%
v3.24.1.1.u2
Equity Incentive Plan (Details) - USD ($)
 3 Months Ended 6 Months Ended
Mar. 22, 2024
Mar. 09, 2023
Apr. 30, 2024
Apr. 30, 2024
Oct. 31, 2023
Equity Incentive Plan [Line Items]          
Cash compensation $ 20,000        
Common stock par value (in Dollars per share)     $ 0.01 $ 0.01 $ 0.01
Board approved an award shares (in Shares) 1,230        
Cash compensation amount   $ 20,000      
Deemed per share (in Dollars per share)   $ 15.5      
Award of shares (in Shares)   1,290      
Shares issued (in Shares)   1,290      
Compensation expense     $ 0 $ 1,000  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested in Period, Fair Value     5,000 10,000  
Aggregate amount     7,500 1,200,000  
Employee Stock Option [Member]          
Equity Incentive Plan [Line Items]          
Aggregate intrinsic value of options expected to vest     $ 61,000 $ 61,000  
FREIT [Member]          
Equity Incentive Plan [Line Items]          
Closing price per share (in Dollars per share) $ 16.25        
Board approved an award shares (in Shares) 1,230        
Equity Incentive Plan [Member]          
Equity Incentive Plan [Line Items]          
Common stock par value (in Dollars per share) $ 0.01        
Shares issued (in Shares)     424,420 424,420  
Options exercisable (in Shares)     1,000 113,900  
v3.24.1.1.u2
Equity Incentive Plan (Details) - Schedule of Stock Option Activity - $ / shares
 3 Months Ended 6 Months Ended
Apr. 30, 2023
Jan. 31, 2023
Apr. 30, 2024
Apr. 30, 2023
Number of Options Outstanding [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
No. of Options Outstanding, beginning of year 13,240 126,140 8,440 126,140
No. of Options Outstanding, Options vested 11,100   8,440 11,100
No. of Options Outstanding, Options exercisable at end of period 3,640   8,440 3,640
No. of Options Outstanding, Options granted during period  
No. of Options Outstanding, Options forfeited/cancelled during period  
No. of Options Outstanding, Options exercised during period (1,000)   (113,900)
No. of Options Outstanding, end of year 12,240 13,240 8,440 12,240
Weighted Average Price [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Weighted Average Exercise price beginning of year (in Dollars per share) $ 8.74 $ 10.64 $ 9.21 $ 10.64
Weighted Average Exercise price, Options granted during period (in Dollars per share)  
Weighted Average Exercise price, Options forfeited/cancelled during period (in Dollars per share)  
Weighted Average Price, Options exercised during period (in Dollars per share) (7.5)   (10.83)
Weighted Average Exercise price at end of year (in Dollars per share) $ 8.84 $ 8.74 $ 9.21 $ 8.84
v3.24.1.1.u2
Termination of Deferred Fee Plan (Details) - USD ($)
 6 Months Ended
Jan. 20, 2023
Apr. 30, 2024
Deferred Fee Plan [Member]    
Termination of Deferred Fee Plan (Details) [Line Items]    
Total payment to each participant’s $ 2,317,000  
Cumulative fees 1,366,000  
Deferred accrued interest $ 951,000  
Common Stock [Member]    
Termination of Deferred Fee Plan (Details) [Line Items]    
Number of share issued (in Shares)   274,509
Common stock vested shares (in Shares)   274,509
v3.24.1.1.u2
Rental Income (Details)
Apr. 30, 2024
Minimum [Member]  
Rental Income [Line Items]  
Lease term 1 year
Maximum [Member]  
Rental Income [Line Items]  
Lease term 2 years
v3.24.1.1.u2
Rental Income (Details) - Schedule of Minimum Fixed Lease Consideration Under Non-Cancelable Tenant Operating Leases
$ in Thousands
Apr. 30, 2024
USD ($)
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity [Abstract]  
2024 $ 5,043
2025 4,209
2026 3,286
2027 2,096
2028 1,125
Thereafter 3,697
Total $ 19,456
v3.24.1.1.u2
Stockholder Rights Plan (Details) - $ / shares
Jul. 28, 2023
Apr. 30, 2024
Oct. 31, 2023
Class of Stock [Line Items]      
Common stock, par value   $ 0.01 $ 0.01
Preferred stock, par value   $ 0.01 $ 0.01
Exercise price $ 95    
Common Stock [Member]      
Class of Stock [Line Items]      
Common stock, par value 0.01    
Preferred Stock [Member]      
Class of Stock [Line Items]      
Preferred stock, par value $ 0.01    
Acquiring Person [Member]      
Class of Stock [Line Items]      
Ownership percentage 10.00%    
v3.24.1.1.u2
Kmart Lease Termination (Details)
 6 Months Ended
Apr. 30, 2024
USD ($)
$ / ft²
Jun. 24, 2023
ft²
Rental Income [Abstract]    
Square foot (in Square Feet) | ft²   84,254
Renewal term 5 years  
Rent payments per square foot (in Dollars per Square Foot) | $ / ft² 4  
Annual rent payment (in Dollars) | $ $ 336,720  
Re-lease years 14 years  
v3.24.1.1.u2
Subsequent Event (Details) - Subsequent Event [Member] - Extended Maturity [Member]
May 01, 2024
USD ($)
Subsequent Event (Details) [Line Items]  
Outstanding loan balance $ 8,900,000
Maturity date May 31, 2027
Monthly installments of principal and interest $ 58,016
Fixed interest rate 6.75%