FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC., 10-Q filed on 10 Jun 25
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v3.25.1
Cover - shares
 6 Months Ended
Apr. 30, 2025
Jun. 10, 2025
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, 2025  
Document Fiscal Year Focus 2025  
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   7,471,344
Common stock, par value $0.01 per share    
Entity Listings [Line Items]    
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol FREVS  
Security Exchange Name NONE  
Preferred Stock Purchase Rights    
Entity Listings [Line Items]    
Title of 12(b) Security Preferred Stock Purchase Rights  
v3.25.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Apr. 30, 2025
Oct. 31, 2024
ASSETS    
Real estate, at cost, net of accumulated depreciation $ 90,606 $ 91,862
Construction in progress 958 944
Cash and cash equivalents 11,435 14,914
Investment in U.S. Treasury securities available-for-sale 27,782 29,259
Investment in tenancy-in-common 17,080 17,512
Tenants' security accounts 888 913
Receivables arising from straight-lining of rents 516 572
Accounts receivable, net of allowance for doubtful accounts of $206 and $272 as of April 30, 2025 and October 31, 2024, respectively 711 498
Prepaid expenses and other assets 5,753 5,007
Deferred charges, net 247 277
Interest rate swap contracts 237 506
Total Assets 156,213 162,264
Liabilities:    
Mortgages payable, including deferred interest of $222 as of April 30, 2025 and October 31, 2024 127,903 128,871
Less unamortized debt issuance costs 668 799
Mortgages payable, net 127,235 128,072
Accounts payable and accrued expenses 750 857
Dividends payable 598 5,224
Tenants' security deposits 1,166 1,205
Deferred revenue 970 722
Total Liabilities 130,719 136,080
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; 7,471,344 and 7,462,993 shares issued at April 30, 2025 and October 31, 2024, respectively 75 75
Additional paid-in-capital 32,393 32,253
Retained earnings 854 541
Accumulated other comprehensive income 219 494
Total Common Equity 33,541 33,363
Noncontrolling interests in subsidiaries (8,047) (7,179)
Total Equity 25,494 26,184
Total Liabilities and Equity $ 156,213 $ 162,264
v3.25.1
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)
$ in Thousands
Apr. 30, 2025
Oct. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts (in Dollars) $ 206 $ 272
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 7,471,344 7,462,993
v3.25.1
Condensed Consolidated Statements of Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2025
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
Revenue:        
Rental income $ 6,735 $ 6,586 $ 13,327 $ 13,040
Reimbursements 421 576 986 1,034
Sundry income 102 113 214 200
Total revenue 7,258 7,275 14,527 14,274
Expenses:        
Operating expenses 2,457 2,714 5,222 6,203
Management fees 310 331 678 667
Real estate taxes 1,489 1,509 2,937 3,001
Depreciation 734 789 1,457 1,514
Total expenses 4,990 5,343 10,294 11,385
Investment income 350 279 750 686
Net loss on sale of Maryland properties (92) (171)
Income (loss) on investment in tenancy-in-common 14 62 23 (47)
Interest expense including amortization of deferred financing costs (1,851) (1,782) (3,724) (3,624)
Net income (loss) 781 399 1,282 (267)
Net loss attributable to noncontrolling interests in subsidiaries 113 134 226 288
Net income attributable to common equity $ 894 $ 533 $ 1,508 $ 21
Earnings per share:        
Basic (in Dollars per share) $ 0.12 $ 0.07 $ 0.2 $ 0
Diluted (in Dollars per share) $ 0.12 $ 0.07 $ 0.2 $ 0
Weighted average shares outstanding:        
Basic (in Shares) 7,469 7,453 7,466 7,451
Diluted (in Shares) 7,469 7,457 7,466 7,455
v3.25.1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2025
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 781 $ 399 $ 1,282 $ (267)
Other comprehensive income (loss):        
Unrealized (loss) gain on interest rate swap contracts before reclassifications (174) 446 (119) 107
Amount reclassified from accumulated other comprehensive income to interest expense (53) (189) (150) (380)
Net unrealized (loss) gain on interest rate swap contracts (227) 257 (269) (273)
Unrealized loss on U.S. Treasury securities available-for-sale before reclassifications (15) (13) (3) (19)
Amount reclassified from accumulated other comprehensive income to investment income (4) (3) (1)
Net unrealized loss on U.S. Treasury securities available-for-sale (19) (13) (6) (20)
Comprehensive income (loss) 535 643 1,007 (560)
Comprehensive loss attributable to noncontrolling interests in subsidiaries 113 134 226 288
Comprehensive income (loss) attributable to common equity $ 648 $ 777 $ 1,233 $ (272)
v3.25.1
Condensed Consolidated Statements of Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In- Capital
Retained Earnings
Accumulated Other Comprehensive Income
Total Common Equity
Noncontrolling Interests in Subsidiaries
Balance at Oct. 31, 2023 $ 18,476 $ 74 $ 32,074 $ (8,968) $ 1,336 $ 24,516 $ (6,040)
Balance (in Shares) at Oct. 31, 2023   7,450          
Stock based compensation expense 1 1 1
Distributions to noncontrolling interests in subsidiaries (180) (180)
Net income (loss) (666)     (512)   (512) (154)
Dividends declared (372) (372) (372)
Net unrealized loss on interest rate swap contracts (530) (530) (530)
Net unrealized gain on investment in U.S. Treasury securities available-for-sale (7) (7) (7)
Balance at Jan. 31, 2024 16,722 $ 74 32,075 (9,852) 799 23,096 (6,374)
Balance (in Shares) at Jan. 31, 2024   7,450          
Balance at Oct. 31, 2023 18,476 $ 74 32,074 (8,968) 1,336 24,516 (6,040)
Balance (in Shares) at Oct. 31, 2023   7,450          
Net income (loss) (267)            
Net unrealized gain on investment in U.S. Treasury securities available-for-sale (20)            
Balance at Apr. 30, 2024 16,533 $ 75 32,215 (9,692) 1,043 23,641 (7,108)
Balance (in Shares) at Apr. 30, 2024   7,458          
Balance at Jan. 31, 2024 16,722 $ 74 32,075 (9,852) 799 23,096 (6,374)
Balance (in Shares) at Jan. 31, 2024   7,450          
Stock awards granted to directors 141 $ 1 140     141
Stock awards granted to directors (in Shares)   8          
Distributions to noncontrolling interests in subsidiaries (600)         (600)
Net income (loss) 399     533   533 (134)
Dividends declared (373)     (373)   (373)
Net unrealized loss on interest rate swap contracts 257       257 257
Net unrealized gain on investment in U.S. Treasury securities available-for-sale (13)       (13) (13)
Balance at Apr. 30, 2024 16,533 $ 75 32,215 (9,692) 1,043 23,641 (7,108)
Balance (in Shares) at Apr. 30, 2024   7,458          
Balance at Oct. 31, 2024 26,184 $ 75 32,253 541 494 33,363 (7,179)
Balance (in Shares) at Oct. 31, 2024   7,463          
Distributions to noncontrolling interests in subsidiaries (440) (440)
Net income (loss) 501 614 614 (113)
Dividends declared (597) (597) (597)
Net unrealized loss on interest rate swap contracts (42) (42) (42)
Net unrealized gain on investment in U.S. Treasury securities available-for-sale 13       13 13
Balance at Jan. 31, 2025 25,619 $ 75 32,253 558 465 33,351 (7,732)
Balance (in Shares) at Jan. 31, 2025   7,463          
Balance at Oct. 31, 2024 26,184 $ 75 32,253 541 494 33,363 (7,179)
Balance (in Shares) at Oct. 31, 2024   7,463          
Net income (loss) 1,282            
Net unrealized gain on investment in U.S. Treasury securities available-for-sale (6)            
Balance at Apr. 30, 2025 25,494 $ 75 32,393 854 219 33,541 (8,047)
Balance (in Shares) at Apr. 30, 2025   7,471          
Balance at Jan. 31, 2025 25,619 $ 75 32,253 558 465 33,351 (7,732)
Balance (in Shares) at Jan. 31, 2025   7,463          
Stock awards granted to directors 140 140     140
Stock awards granted to directors (in Shares)   8          
Distributions to noncontrolling interests in subsidiaries (202)         (202)
Net income (loss) 781     894   894 (113)
Dividends declared (598)     (598)   (598)
Net unrealized loss on interest rate swap contracts (227)       (227) (227)
Net unrealized gain on investment in U.S. Treasury securities available-for-sale (19)       (19) (19)
Balance at Apr. 30, 2025 $ 25,494 $ 75 $ 32,393 $ 854 $ 219 $ 33,541 $ (8,047)
Balance (in Shares) at Apr. 30, 2025   7,471          
v3.25.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Apr. 30, 2025
Apr. 30, 2024
Operating activities:    
Net income (loss) $ 1,282 $ (267)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Net loss on sale of Maryland properties 171
Depreciation 1,457 1,514
Amortization 280 345
Stock based compensation expense 1
Stock awards granted to directors 140 141
(Income) loss on investment in tenancy-in-common (23) 47
Deferred rents - straight line rent 56 58
Bad debt expense 72 123
Accreted interest on investment in U.S. Treasury securities (487) (418)
Changes in operating assets and liabilities:    
Tenants' security accounts (39) (29)
Accounts receivable, prepaid expenses and other assets (785) (27)
Accounts payable, accrued expenses and deferred director compensation payable 61 (195)
Deferred revenue 248 43
Net cash provided by operating activities 2,262 1,507
Investing activities:    
Cash outlays from sale of Maryland properties, net (171)
Purchase of U.S. Treasury securities (28,247) (19,135)
Proceeds from maturities of U.S. Treasury securities 30,205 26,315
Capital improvements - existing properties (383) (456)
Deferred leasing costs (15) (49)
Distribution from investment in tenancy-in-common 455 455
Net cash provided by investing activities 2,015 6,959
Financing activities:    
Repayment of mortgages (968) (8,423)
Deferred financing costs (104) (166)
Dividends paid (5,821) (744)
Distributions to noncontrolling interests in subsidiaries (642) (780)
Net cash used in financing activities (7,535) (10,113)
Net decrease in cash, cash equivalents and restricted cash (3,258) (1,647)
Cash, cash equivalents and restricted cash, beginning of period 19,223 18,356
Cash, cash equivalents and restricted cash, end of period 15,965 16,709
Supplemental disclosure of cash flow data:    
Interest paid 3,379 3,343
Investing activities:    
Accrued capital expenditures, construction costs and pre-development costs 72 61
Financing activities:    
Dividends declared but not paid 598 373
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:    
Cash and cash equivalents 11,435 12,220
Tenants' security accounts 888 937
Funds held in post-closing escrow 189
Mortgage escrows (included in prepaid expenses and other assets) 3,642 3,363
Total cash, cash equivalents and restricted cash $ 15,965 $ 16,709
v3.25.1
Basis of Presentation
 6 Months Ended
Apr. 30, 2025
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. First Real Estate Investment Trust of New Jersey, Inc. (“FREIT”, “Trust”, “us”, “we”, “our” or the “Company”) is a Maryland corporation.

 

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, 2025 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, 2024.
v3.25.1
Recently Issued Accounting Standards
 6 Months Ended
Apr. 30, 2025
Recently Issued Accounting Standards [Abstract]  
Recently issued accounting standards

Note 2 – Recently issued accounting standards:

 

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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.

 

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statements.

 

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, “Income Statement – Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date” ("ASU 2025-01"). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact of these standards on our consolidated financial statements.
v3.25.1
Dividends and Earnings Per Share
 6 Months Ended
Apr. 30, 2025
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 $598,000 ($0.08 per share) in the second quarter of Fiscal 2025, which will be paid on June 13, 2025 to stockholders of record on May 30, 2025.

 

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 the six and three months ended April 30, 2025, only basic earnings per share is presented since there are no outstanding stock options or other diluted securities. 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. There were no anti-

dilutive shares for the six and three months ended April 30, 2024. Anti-dilutive shares consisted of out-of-the money stock options under the Equity Incentive Plan (See Note 12).
v3.25.1
Fair Value Measurements
 6 Months Ended
Apr. 30, 2025
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 $27,782,000 and $29,259,000, as of April 30, 2025 and October 31, 2024, respectively, at fair value. Since these available for sale securities are being issued at a discount, the discount is being accreted over the term of the U.S. Treasury securities and recognized as investment income on the condensed consolidated statements of income and reflected as accreted interest in the condensed consolidated statements of cash flows. For the six months ended April 30, 2025 and 2024, this amounted to approximately $487,000 and $418,000, respectively. Any changes in the value of these securities are recorded as an unrealized gain or loss in other comprehensive income (loss). Upon sale, 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, 2025, FREIT recorded an unrealized loss of approximately $6,000 and $19,000, respectively, in the condensed consolidated statements of comprehensive income representing the change in the fair value of these available for sale investments in U.S. Treasury securities during such periods. 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. 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). On December 15, 2024, the Regency loan and its corresponding interest rate swap contract matured with no settlement due at maturity. (See Note 9 for further details.) For the six and three months ended April 30, 2025, FREIT recorded an unrealized loss of approximately $269,000 and $227,000, respectively, in the condensed consolidated statements of comprehensive 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, 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. As of April 30, 2025, there was an asset of approximately $237,000 for the Station Place swap. As of October 31, 2024, there was an asset of approximately $54,000 for the Regency swap and $452,000 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).
v3.25.1
Investment in Tenancy-in-Common
 6 Months Ended
Apr. 30, 2025
Investment in Tenancy-in-Common [Abstract]  
Investment in tenancy-in-common

Note 5 – Investment in tenancy-in-common:

 

On February 28, 2020, FREIT reorganized 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 $17.1 million and $17.5 million at April 30, 2025 and October 31, 2024, respectively. For the six and three months ended April 30, 2025, FREIT recognized income from the investment in TIC of approximately $23,000 and $14,000, respectively, in the accompanying condensed consolidated statements of income. 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.

 

Hekemian & Co., Inc. (“Hekemian & Co.”) manages the Pierre Towers property pursuant to a management agreement 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 expires on February 28, 2026.

 

The management agreement requires the payment of management fees equal to 5% of rents collected. Management fees, charged to operations, were approximately $216,000 and $94,000 for the six and three months ended April 30, 2025, respectively, and $210,000 and $105,000 for the six and three months ended April 30, 2024, 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, 2025 and 2024.

The following table summarizes the balance sheets of the Pierre Towers property as of April 30, 2025 and October 31, 2024, accounted for by the equity method:

 

   April 30,   October 31, 
   2025   2024 
   (In Thousands of Dollars) 
         
Real estate, net  $72,181   $72,707 
Cash and cash equivalents   1,251    1,442 
Tenants' security accounts   526    528 
Receivables and other assets   698    556 
Total assets  $74,656   $75,233 
           
Mortgages payable, net of unamortized debt issuance costs  $46,772   $47,362 
Accounts payable and accrued expenses   915    229 
Tenants' security deposits   530    529 
Deferred revenue   162    172 
Equity   26,277    26,941 
Total liabilities & equity  $74,656   $75,233 
           
FREIT's investment in TIC (65% interest)  $17,080   $17,512 

 

The following table summarizes the statements of operations of the Pierre Towers property for the six and three months ended April 30, 2025 and 2024, accounted for by the equity method:

 

   Six Months Ended April 30,   Three Months Ended April 30, 
   2025   2024   2025   2024 
   (In Thousands of Dollars)   (In Thousands of Dollars) 
                 
Revenue  $4,369   $4,243   $2,192   $2,128 
Operating expenses   2,478    2,455    1,241    1,097 
Depreciation   1,126    1,115    564    558 
Operating income   765    673    387    473 
                     
Interest income   36    37    17    12 
Interest expense including amortization of deferred financing costs   (765)   (782)   (382)   (390)
                     
Net income (loss)  $36   $(72)  $22   $95 
                     
FREIT's share of income (loss) on investment in TIC (65% interest)  $23   $(47)  $14   $62 
v3.25.1
Termination of Purchase and Sale Agreement
 6 Months Ended
Apr. 30, 2025
Termination of Purchase and Sale Agreement [Abstract]  
Termination of Purchase and Sale Agreement

Note 6 – Termination of Purchase and Sale Agreement:

 

As FREIT previously reported, on June 26, 2024, a settlement was reached between FREIT and certain of its affiliates and Sinatra Properties, LLC (“Sinatra”) and Kushner Companies, LLC, (collectively the “Kushner Parties”) regarding previously reported ongoing litigation. The litigation involved a dispute between the parties related to a purchase and sale agreement entered into on January 14, 2020. All settlement payments have been received by FREIT and its affiliates.

 

Legal costs attributed to the legal proceeding between FREIT and certain of its affiliates and Sinatra have been incurred in the amount of approximately $1,000 and $0 for the six and three months ended April 30, 2025, respectively, and $512,000 and $198,000 for the six and three months ended April 30, 2024, respectively. These costs are included in operating expenses on the condensed consolidated statements of income.
v3.25.1
Maryland Property Dispositions
 6 Months Ended
Apr. 30, 2025
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, 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, 2025, approximately $7,087,000 of the Maryland Purchaser Escrow Payment has been released from escrow to the Maryland Sellers with no remaining funds held in post-closing escrow for rents anticipated to be released. 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, due to a change in estimate related to a change in the timing of anticipated rent commencement dates for certain tenants, which reduced the escrowed funds released to Grande Rotunda. The sale of the Maryland Properties resulted in a net gain of approximately $67.4 million (as adjusted) (FREIT’s share is approximately $44.8 million) which includes approximately $7.1 million of proceeds 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.
v3.25.1
Management Agreement, Fees and Transactions with Related Party
 6 Months Ended
Apr. 30, 2025
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 $678,000 and $667,000 for the six months ended April 30, 2025 and 2024, respectively, and $310,000 and $331,000 for the three months ended April 30, 2025 and 2024, 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 $202,000 and $315,000 for the six months ended April 30, 2025 and 2024, respectively, and $109,000 and $168,000 for the three months ended April 30, 2025 and 2024, 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 $13,000 and $59,000 for the six months ended April 30, 2025 and 2024, respectively, and $4,000 and $3,000 for the three months ended April 30, 2025 and 2024, 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 were approximately $35,000 and $89,400, for the six months ended April 30, 2025 and 2024, respectively, and $0 and $76,000, for the three months ended April 30, 2025 and 2024, respectively. Fees incurred during Fiscal 2025 related to a commission to Hekemian & Co. for the modification and extension of the loan on the Regency property which was accounted for as a deferred mortgage cost and included in the unamortized debt issuance costs in the accompanying condensed consolidated balance sheet as of April 30, 2025. 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. 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, 2025 and October 31, 2024. 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 stock awards – See Note 12 for additional details) incurred by FREIT for the six months ended April 30, 2025 and 2024 was approximately $350,000 and $350,000, respectively, for Robert S. Hekemian, Jr., $22,000 and $22,000, respectively, for Allan Tubin and $50,000 and $50,000, respectively, for David B. Hekemian. Director fee expense and/or executive compensation (including stock awards) incurred by FREIT for the three months ended April 30, 2025 and 2024 was approximately $185,000 and $185,000, respectively, for Robert S. Hekemian, Jr., $11,000 and $11,000, respectively, for Allan Tubin and $35,000 and $35,000, respectively, for David B. Hekemian. Such costs are included within operating expenses on the accompanying condensed consolidated statements of income.
v3.25.1
Mortgages Payable and Line of Credit
 6 Months Ended
Apr. 30, 2025
Mortgages Payable and Line of Credit [Abstract]  
Mortgages payable and line of credit

Note 9 – Mortgages payable and line of credit:

 

The following table is a summary of mortgages payable as of April 30, 2025 and October 31, 2024:

 

      Interest Rate at   Mortgages Payable as of 
Mortgages Secured By:  Maturity  April 30, 2025   April 30, 2025   October 31, 2024 
          (In Thousands of Dollars) 
Steuben Arms - River Edge, NJ (A)  5/31/2027   6.75%   $8,762   $8,811 
Berdan Court - Wayne, NJ  8/31/2029   3.54%    28,457    28,728 
Westwood Hills - Westwood, NJ  9/1/2026   6.05%    24,972    25,136 
Regency Club - Middletown, NY (B)  12/15/2027   6.05%    13,836    13,920 
Station Place - Red Bank, NJ  12/15/2027   4.35%    11,157    11,281 
Westwood Plaza - Westwood, NJ (C)  5/1/2025   8.50%    15,719    15,995 
Preakness S/C - Wayne, NJ  8/1/2025   5.00%    25,000    25,000 
Total fixed rate mortgages payable           127,903    128,871 
Total unamortized debt issuance costs           (668)   (799)
Total mortgages payable, net          $127,235   $128,072 

 

(A)On December 1, 2023, the mortgage secured by an apartment building located in River Edge, New Jersey 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 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, effective June 1, 2024, 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, the interest rate on the outstanding debt is based on a fixed interest rate of 6.75% and monthly installments of principal and interest of approximately $58,016 are required.
  
(B)On December 15, 2024, the mortgage secured by an apartment building located in Middletown, New York and the corresponding interest rate swap contract on its underlying loan came due with no settlement of the swap contract due at maturity. Effective December 15, 2024, FREIT Regency, LLC entered into a loan extension and modification agreement with the lender of this loan, Provident Bank, with a then outstanding loan balance of approximately $13.9 million. Under the terms and conditions of this loan extension and modification, the maturity date of this loan is extended for three years to December 15, 2027, the interest rate on the outstanding debt is based on a fixed interest rate of 6.05% and monthly installments of principal and interest of approximately $84,521 are required.
  
(C)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 $16.9 million. 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 for this loan (“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 was based on a fixed interest rate of 8.5% and was 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 represented the annualized principal and interest payments for one (1) year under this loan extension. Effective February 1, 2025, Valley National Bank extended this loan for 90 days from a maturity date of February 1, 2025 to a maturity date of May 1, 2025 under the same terms and conditions of the existing loan agreement.

 

Effective May 1, 2025, FREIT entered into a loan extension and modification agreement with Valley National Bank and paid down this loan by approximately $5.7 million (including deferred interest of approximately $0.2 million) bringing the loan balance to $10 million. Under the terms and conditions of this loan extension and modification, the maturity date of this loan is extended for one year to May 1, 2026, the interest rate on the outstanding debt is based on a fixed interest rate of 8.5% and monthly installments of principal and interest of approximately $107,978 are required. Additionally, the Escrow balance was reduced from $2,000,722 to $1,295,739 resulting in a refund to FREIT of approximately $704,983. 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.

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, 2025 and October 31, 2024, 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.

 

Principal amounts (in thousands of dollars) due under the above obligations in each of the next five years ending October 31, is as follows:

 

Year Ending
October 31,		  Amount  
2025  $32,445 (a)(c)
2026   35,745 (b)
2027   9,654  
2028   24,521  
2029   26,506  

 

Includes the following:

 

(a)The $5.7 million (including deferred interest of approximately $0.2 million) pay down of the loan on the Westwood Plaza shopping center paid in May 2025 when FREIT entered into a loan extension and modification agreement with Valley National Bank.

 

(b)The $10 million remaining loan balance on the Westwood Plaza shopping center loan, which per the loan extension and modification agreement the maturity date of this loan is extended for one year to May 1, 2026.

 

(c)The loan on the Preakness shopping center located in Wayne, New Jersey in the amount of approximately $25 million, which has a maturity date of August 1, 2025. Management expects this loan to be extended, however, until such time as a definitive agreement providing for an extension of this loan is entered into, there can be no assurance this loan will be extended.

 

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, 2025 and October 31, 2024:

 

($ in Millions)   April 30, 2025   October 31, 2024
         
Fair Value   $124.5   $124.7
         
Carrying Value, Net   $127.2   $128.1

 

Fair values are estimated based on market interest rates at April 30, 2025 and October 31, 2024 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).
v3.25.1
Segment Information
 6 Months Ended
Apr. 30, 2025
Segment Information [Abstract]  
Segment information

Note 10 - 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, 2024. 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, 2025 and 2024. 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, 
   2025   2024   2025   2024 
   (In Thousands of Dollars)   (In Thousands of Dollars) 
Real estate rental revenue:                    
Commercial  $3,780   $4,064   $1,846   $2,083 
Residential   10,803    10,268    5,440    5,221 
Total real estate rental revenue   14,583    14,332    7,286    7,304 
                     
Real estate operating expenses:                    
Commercial   2,650    2,593    1,283    1,266 
Residential   4,551    4,455    2,182    2,273 
Total real estate operating expenses   7,201    7,048    3,465    3,539 
                     
Net operating income:                    
Commercial   1,130    1,471    563    817 
Residential   6,252    5,813    3,258    2,948 
Total net operating income  $7,382   $7,284   $3,821   $3,765 
                     
                     
Recurring capital improvements - residential  $(203)  $(265)  $(126)  $(169)
                     
                     
Reconciliation to condensed consolidated net income attributable to common equity:                    
Segment NOI  $7,382   $7,284   $3,821   $3,765 
Deferred rents - straight lining   (56)   (58)   (28)   (29)
Investment income   750    686    350    279 
General and administrative expenses   (1,636)   (2,823)   (791)   (1,015)
Income (loss) on investment in tenancy-in-common   23    (47)   14    62 
Depreciation   (1,457)   (1,514)   (734)   (789)
Net loss on sale of Maryland properties   
—
    (171)   
—
    (92)
Financing costs   (3,724)   (3,624)   (1,851)   (1,782)
Net income (loss)   1,282    (267)   781    399 
Net loss attributable to noncontrolling interests in subsidiaries   226    288    113    134 
Net income attributable to common equity  $1,508   $21   $894   $533 
v3.25.1
Income Taxes
 6 Months Ended
Apr. 30, 2025
Income Taxes [Abstract]  
Income taxes

Note 11 – 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, 2025. For the fiscal year ended October 31, 2024, FREIT has distributed 100% of its ordinary taxable income and 100% of its capital gain to its stockholders as dividends. 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, 2025 and 2024.

 

As of April 30, 2025, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2021 remain open to examination by the major taxing jurisdictions.
v3.25.1
Equity Incentive Plan
 6 Months Ended
Apr. 30, 2025
Equity Incentive Plan [Abstract]  
Equity Incentive Plan

Note 12 – Equity Incentive Plan:

 

On February 20, 2025, 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 2025, 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 February 21, 2025 of $16.76 per Share, the Board approved an award of 1,193 Shares of FREIT to each director serving on FREIT’s Board. As such, 1,193 Shares were issued to each director on February 20, 2025 and upon issuance were deemed fully paid and non-assessable.

 

On March 22, 2024, 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 2024, 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 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.

 

As of April 30, 2025, 419,709 shares are available for issuance under the Plan.

 

As of April 30, 2025, all options have been fully vested and exercised with no remaining compensation cost to be recognized. For the six months ended April 30, 2025 and 2024, compensation expense related to stock options vested amounted to approximately $0 and $1,000, respectively. For the three months ended April 30, 2025 and 2024, there was no compensation expense related to stock options vested.

 

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

 

   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      
v3.25.1
Rental Income
 6 Months Ended
Apr. 30, 2025
Rental Income [Abstract]  
Rental Income

Note 13 – 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, 2025, is as follows:

 

Year Ending October 31,  Amount 
2025  $4,857 
2026   4,880 
2027   3,907 
2028   2,940 
2029   2,728 
Thereafter   5,233 
Total  $24,545 

 

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, 2025 and 2024 were not material.

 

Residential tenants:

 

Lease terms for residential tenants are usually one to two years.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2025
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
Pay vs Performance Disclosure        
Net Income (Loss) $ 894 $ 533 $ 1,508 $ 21
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Apr. 30, 2025
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
v3.25.1
Investment in Tenancy-in-Common (Tables)
 6 Months Ended
Apr. 30, 2025
Investment in Tenancy-in-Common [Abstract]  
Schedule of Balance Sheets of the Pierre Towers Property

The following table summarizes the balance sheets of the Pierre Towers property as of April 30, 2025 and October 31, 2024, accounted for by the equity method:

 

   April 30,   October 31, 
   2025   2024 
   (In Thousands of Dollars) 
         
Real estate, net  $72,181   $72,707 
Cash and cash equivalents   1,251    1,442 
Tenants' security accounts   526    528 
Receivables and other assets   698    556 
Total assets  $74,656   $75,233 
           
Mortgages payable, net of unamortized debt issuance costs  $46,772   $47,362 
Accounts payable and accrued expenses   915    229 
Tenants' security deposits   530    529 
Deferred revenue   162    172 
Equity   26,277    26,941 
Total liabilities & equity  $74,656   $75,233 
           
FREIT's investment in TIC (65% interest)  $17,080   $17,512 
Schedule of Statements of Operations of the Pierre Towers Property

The following table summarizes the statements of operations of the Pierre Towers property for the six and three months ended April 30, 2025 and 2024, accounted for by the equity method:

 

   Six Months Ended April 30,   Three Months Ended April 30, 
   2025   2024   2025   2024 
   (In Thousands of Dollars)   (In Thousands of Dollars) 
                 
Revenue  $4,369   $4,243   $2,192   $2,128 
Operating expenses   2,478    2,455    1,241    1,097 
Depreciation   1,126    1,115    564    558 
Operating income   765    673    387    473 
                     
Interest income   36    37    17    12 
Interest expense including amortization of deferred financing costs   (765)   (782)   (382)   (390)
                     
Net income (loss)  $36   $(72)  $22   $95 
                     
FREIT's share of income (loss) on investment in TIC (65% interest)  $23   $(47)  $14   $62 
v3.25.1
Mortgages Payable and Line of Credit (Tables)
 6 Months Ended
Apr. 30, 2025
Mortgages Payable and Line of Credit [Abstract]  
Schedule of Summary of Mortgages Payable

The following table is a summary of mortgages payable as of April 30, 2025 and October 31, 2024:

 

      Interest Rate at   Mortgages Payable as of 
Mortgages Secured By:  Maturity  April 30, 2025   April 30, 2025   October 31, 2024 
          (In Thousands of Dollars) 
Steuben Arms - River Edge, NJ (A)  5/31/2027   6.75%   $8,762   $8,811 
Berdan Court - Wayne, NJ  8/31/2029   3.54%    28,457    28,728 
Westwood Hills - Westwood, NJ  9/1/2026   6.05%    24,972    25,136 
Regency Club - Middletown, NY (B)  12/15/2027   6.05%    13,836    13,920 
Station Place - Red Bank, NJ  12/15/2027   4.35%    11,157    11,281 
Westwood Plaza - Westwood, NJ (C)  5/1/2025   8.50%    15,719    15,995 
Preakness S/C - Wayne, NJ  8/1/2025   5.00%    25,000    25,000 
Total fixed rate mortgages payable           127,903    128,871 
Total unamortized debt issuance costs           (668)   (799)
Total mortgages payable, net          $127,235   $128,072 

 

(A)On December 1, 2023, the mortgage secured by an apartment building located in River Edge, New Jersey 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 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, effective June 1, 2024, 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, the interest rate on the outstanding debt is based on a fixed interest rate of 6.75% and monthly installments of principal and interest of approximately $58,016 are required.
  
(B)On December 15, 2024, the mortgage secured by an apartment building located in Middletown, New York and the corresponding interest rate swap contract on its underlying loan came due with no settlement of the swap contract due at maturity. Effective December 15, 2024, FREIT Regency, LLC entered into a loan extension and modification agreement with the lender of this loan, Provident Bank, with a then outstanding loan balance of approximately $13.9 million. Under the terms and conditions of this loan extension and modification, the maturity date of this loan is extended for three years to December 15, 2027, the interest rate on the outstanding debt is based on a fixed interest rate of 6.05% and monthly installments of principal and interest of approximately $84,521 are required.
  
(C)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 $16.9 million. 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 for this loan (“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 was based on a fixed interest rate of 8.5% and was 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 represented the annualized principal and interest payments for one (1) year under this loan extension. Effective February 1, 2025, Valley National Bank extended this loan for 90 days from a maturity date of February 1, 2025 to a maturity date of May 1, 2025 under the same terms and conditions of the existing loan agreement.
Schedule of Principal Amounts

Principal amounts (in thousands of dollars) due under the above obligations in each of the next five years ending October 31, is as follows:

 

Year Ending
October 31,		  Amount  
2025  $32,445 (a)(c)
2026   35,745 (b)
2027   9,654  
2028   24,521  
2029   26,506  
(a)The $5.7 million (including deferred interest of approximately $0.2 million) pay down of the loan on the Westwood Plaza shopping center paid in May 2025 when FREIT entered into a loan extension and modification agreement with Valley National Bank.

 

(b)The $10 million remaining loan balance on the Westwood Plaza shopping center loan, which per the loan extension and modification agreement the maturity date of this loan is extended for one year to May 1, 2026.

 

(c)The loan on the Preakness shopping center located in Wayne, New Jersey in the amount of approximately $25 million, which has a maturity date of August 1, 2025. Management expects this loan to be extended, however, until such time as a definitive agreement providing for an extension of this loan is entered into, there can be no assurance this loan will be extended.
Schedule of Estimated Fair Value and Net 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, 2025 and October 31, 2024:

 

($ in Millions)   April 30, 2025   October 31, 2024
         
Fair Value   $124.5   $124.7
         
Carrying Value, Net   $127.2   $128.1
v3.25.1
Segment Information (Tables)
 6 Months Ended
Apr. 30, 2025
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, 
   2025   2024   2025   2024 
   (In Thousands of Dollars)   (In Thousands of Dollars) 
Real estate rental revenue:                    
Commercial  $3,780   $4,064   $1,846   $2,083 
Residential   10,803    10,268    5,440    5,221 
Total real estate rental revenue   14,583    14,332    7,286    7,304 
                     
Real estate operating expenses:                    
Commercial   2,650    2,593    1,283    1,266 
Residential   4,551    4,455    2,182    2,273 
Total real estate operating expenses   7,201    7,048    3,465    3,539 
                     
Net operating income:                    
Commercial   1,130    1,471    563    817 
Residential   6,252    5,813    3,258    2,948 
Total net operating income  $7,382   $7,284   $3,821   $3,765 
                     
                     
Recurring capital improvements - residential  $(203)  $(265)  $(126)  $(169)
                     
                     
Reconciliation to condensed consolidated net income attributable to common equity:                    
Segment NOI  $7,382   $7,284   $3,821   $3,765 
Deferred rents - straight lining   (56)   (58)   (28)   (29)
Investment income   750    686    350    279 
General and administrative expenses   (1,636)   (2,823)   (791)   (1,015)
Income (loss) on investment in tenancy-in-common   23    (47)   14    62 
Depreciation   (1,457)   (1,514)   (734)   (789)
Net loss on sale of Maryland properties   
—
    (171)   
—
    (92)
Financing costs   (3,724)   (3,624)   (1,851)   (1,782)
Net income (loss)   1,282    (267)   781    399 
Net loss attributable to noncontrolling interests in subsidiaries   226    288    113    134 
Net income attributable to common equity  $1,508   $21   $894   $533 
v3.25.1
Equity Incentive Plan (Tables)
 6 Months Ended
Apr. 30, 2025
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:

 

   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      
v3.25.1
Rental Income (Tables)
 6 Months Ended
Apr. 30, 2025
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, 2025, is as follows:

 

Year Ending October 31,  Amount 
2025  $4,857 
2026   4,880 
2027   3,907 
2028   2,940 
2029   2,728 
Thereafter   5,233 
Total  $24,545 
v3.25.1
Dividends and Earnings Per Share (Details)
 3 Months Ended 6 Months Ended
Apr. 30, 2025
$ / shares
shares
Apr. 30, 2025
USD ($)
$ / shares
shares
Dividends and Earnings Per Share [Line Items]    
Dividends price per share (in Dollars per share) | $ / shares $ 0.08 $ 0.08
Anti-dilutive shares | shares 4,000 4,000
Board of Directors [Member]    
Dividends and Earnings Per Share [Line Items]    
Dividends declared (in Dollars) | $   $ 598,000
v3.25.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2025
Jan. 31, 2025
Apr. 30, 2024
Jan. 31, 2024
Apr. 30, 2025
Apr. 30, 2024
Oct. 31, 2024
Fair Value Measurements [Line Items]              
Available for sale $ 27,782       $ 27,782   $ 29,259
Accreted interest on investment in U.S. Treasury securities         487 $ 418  
Net unrealized loss on U.S. Treasury securities available-for-sale (19) $ 13 $ (13) $ (7) (6) (20)  
Net unrealized (loss) gain on interest rate swap contracts (227)   $ 257   (269) (273)  
Regency Swap [Member]              
Fair Value Measurements [Line Items]              
Net unrealized loss on U.S. Treasury securities available-for-sale         (6) $ (20)  
Fair value asset             54
Station Place Swap [Member]              
Fair Value Measurements [Line Items]              
Fair value asset $ 237       $ 237   $ 452
v3.25.1
Investment in Tenancy-in-Common (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Feb. 28, 2020
Apr. 30, 2025
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
Oct. 31, 2024
Investment in Tenancy-in-Common [Line Items]            
Investment in tenancy-in-common   $ 17,080   $ 17,080   $ 17,512
Recognized income from investments   14 $ 62 $ 23 $ (47)  
Recognized loss on investment     62,000   47,000  
Percentage of management fees of rent collected       5.00%    
Management fees   310 331 $ 678 667  
TIC Agreement [Member]            
Investment in Tenancy-in-Common [Line Items]            
Undivided interest 65.00%          
S and A Commercial Associates Limited Partnership [Member]            
Investment in Tenancy-in-Common [Line Items]            
Percentage of ownership interest 65.00%          
Pierre Towers Property [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%          
Pierre Towers [Member]            
Investment in Tenancy-in-Common [Line Items]            
Management fees   $ 94 $ 105 $ 216 $ 210  
v3.25.1
Investment in Tenancy-in-Common - Schedule of Balance Sheets of the Pierre Towers Property (Details) - Pierre Towers [Member] - USD ($)
$ in Thousands
Apr. 30, 2025
Oct. 31, 2024
Balance Sheets of the Pierre Towers Property [Line Items]    
Real estate, net $ 72,181 $ 72,707
Cash and cash equivalents 1,251 1,442
Tenants' security accounts 526 528
Receivables and other assets 698 556
Total Assets 74,656 75,233
Mortgages payable, net of unamortized debt issuance costs 46,772 47,362
Accounts payable and accrued expenses 915 229
Tenants' security deposits 530 529
Deferred revenue 162 172
Equity 26,277 26,941
Total Liabilities and Equity 74,656 75,233
FREIT's investment in TIC (65% interest) $ 17,080 $ 17,512
v3.25.1
Investment in Tenancy-in-Common - Schedule of Balance Sheets of the Pierre Towers Property (Parentheticals) (Details)
Apr. 30, 2025
Oct. 31, 2024
Apr. 30, 2024
Pierre Towers [Member]      
Balance Sheets of the Pierre Towers Property [Line Items]      
FREIT's investment in TIC 65.00% 65.00% 65.00%
v3.25.1
Investment in Tenancy-in-Common - Schedule of Statements of Operations of the Pierre Towers Property (Details) - Pierre Towers [Member] - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2025
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
Statements of Operations of the Pierre Towers Property [Line Items]        
Revenue $ 2,192 $ 2,128 $ 4,369 $ 4,243
Operating expenses 1,241 1,097 2,478 2,455
Depreciation 564 558 1,126 1,115
Operating income 387 473 765 673
Interest income 17 12 36 37
Interest expense including amortization of deferred financing costs (382) (390) (765) (782)
Net income (loss) 22 95 36 (72)
FREIT's share of income (loss) on investment in TIC (65% interest) $ 14 $ 62 $ 23 $ (47)
v3.25.1
Investment in Tenancy-in-Common - Schedule of Statements of Operations of the Pierre Towers Property (Parentheticals) (Details)
Apr. 30, 2025
Oct. 31, 2024
Apr. 30, 2024
Pierre Towers [Member]      
Statements of Operations of the Pierre Towers Property [Line Items]      
FREIT's loss on investment in TIC interest 65.00% 65.00% 65.00%
v3.25.1
Termination of Purchase and Sale Agreement (Details) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2025
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
Termination of Purchase and Sale Agreement [Abstract]        
Incurred amount $ 0 $ 198,000 $ 1,000 $ 512,000
v3.25.1
Maryland Property Dispositions (Details) - USD ($)
 3 Months Ended 6 Months Ended
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
May 01, 2025
Nov. 22, 2021
Maryland Property Dispositions [Line Items]          
Net book value   $ 172,300,000      
Escrow deposit   67,400,000   $ 2,000,722  
Net proceeds   58,700,000      
Mortgage debt amount   155,800,000      
Breakage fees   213,000      
Grande rotunda amount   31,000,000      
Brokerage fees   6,400,000      
Purchase of escrow payment   7,087,000      
Escrow gain on sale   44,800,000      
Straight line rent receivable   2,900,000      
Unamortized lease commissions   1,700,000      
Maryland Purchaser Escrow Payment [Member]          
Maryland Property Dispositions [Line Items]          
Escrow gain on sale $ 92,000   $ 171,000    
Purchase and Sale Agreement of Rotunda Property [Member]          
Maryland Property Dispositions [Line Items]          
Purchase price   248,750,269      
Escrow deposit   15,526,731      
First Real Estate Investment Trust [Member]          
Maryland Property Dispositions [Line Items]          
Ownership percentage         100.00%
Escrow gain on sale   $ 7,100,000      
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%
v3.25.1
Management Agreement, Fees and Transactions with Related Party (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Apr. 30, 2025
Apr. 30, 2024
Apr. 30, 2025
Apr. 30, 2024
Oct. 31, 2024
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Fees charged to operation $ 310,000 $ 331,000 $ 678,000 $ 667,000  
Commissions and reimbursements amount 109,000 168,000 202,000 315,000  
Incurred fees 0 76,000 35,000 89,400  
Steuben Arms Property [Member]          
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Line of credit         $ 22,400
Westwood Plaza Property [Member]          
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Line of credit         21,000
Hekemian & Co [Member]          
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Commissions and reimbursements amount 4,000 3,000 13,000 59,000  
Director fee expense 185,000 185,000 350,000 350,000  
Hekemian & Co [Member] | Rotunda Property [Member]          
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Proceeds from rent received         13,400
Robert Hekemian Jr [Member]          
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Director fee expense 11,000 11,000 22,000 22,000  
Allan Tubin [Member]          
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Director fee expense $ 35,000 $ 35,000 $ 50,000 $ 50,000  
FREIT’s [Member]          
Management Agreement, Fees and Transactions with Related Party [Line Items]          
Line of credit         $ 32,500
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%    
v3.25.1
Mortgages Payable and Line of Credit (Details) - USD ($)
 6 Months Ended 12 Months Ended
Dec. 15, 2024
May 01, 2024
Oct. 31, 2023
Feb. 01, 2023
Apr. 30, 2025
Oct. 31, 2024
May 01, 2025
Mortgages Payable and Credit Line [Line Items]              
Outstanding loan balance   $ 8,900,000          
Repayment of loan $ 13,900,000            
Outstanding balance       $ 16,900,000      
Future periodic payment including principal         $ 157,347    
New maturity date     Feb. 01, 2025        
FREIT additional funded         112,556    
Increasing the escrow balance         2,000,722    
Deferred interest         200,000   $ 200,000
Loan balance             $ 10,000,000
Fixed interest rate percentage             8.50%
Principal and interest amount             $ 107,978
Escrow balance         67,400,000   2,000,722
Escrow balance reduced             1,295,739
Refund amount             704,983
Line of credit, available         13,000,000    
Outstanding balance on line of credit         $ 13,000,000  
Provident Bank [Member]              
Mortgages Payable and Credit Line [Line Items]              
Fixed interest rate   6.75%          
Monthly installments of principal   $ 58,016          
FREIT [Member]              
Mortgages Payable and Credit Line [Line Items]              
Fixed interest rate 6.05%            
Monthly installments of principal $ 84,521       $ 166,727    
Maturity date of loan         Oct. 31, 2026    
Basis points, interest rate         6.75%    
Loan Agreement [Member]              
Mortgages Payable and Credit Line [Line Items]              
Fixed interest rate         7.50%    
Valley National Bank [Member]              
Mortgages Payable and Credit Line [Line Items]              
Fixed interest rate         8.50%    
Monthly installments of principal         $ 1,888,166    
Initial maturity date     Feb. 01, 2024        
Deferred interest             $ 5.7
Westwood Plaza Shopping center loan [Member]              
Mortgages Payable and Credit Line [Line Items]              
Deferred interest         5.7    
Loan balance         $ 10,000,000    
Preakness shopping center [Member]              
Mortgages Payable and Credit Line [Line Items]              
Maturity date of loan         Aug. 01, 2025    
Loan amount         $ 25,000,000    
v3.25.1
Mortgages Payable and Line of Credit - Schedule of Summary of Mortgages Payable (Details) - USD ($)
$ in Thousands
Apr. 30, 2025
Oct. 31, 2024
Schedule of Summary of Mortgages Payable [Line Items]    
Total unamortized debt issuance costs $ (668) $ (799)
Total mortgages payable, net $ 127,235 128,072
Mortgages [Member] | Steuben Arms - River Edge, NJ [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Maturity [1] May 31, 2027  
Interest Rate [1] 6.75%  
Mortgages Payable [1] $ 8,762 8,811
Mortgages [Member] | Berdan Court - Wayne, NJ [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Maturity Aug. 31, 2029  
Interest Rate 3.54%  
Mortgages Payable $ 28,457 28,728
Mortgages [Member] | Westwood Hills - Westwood, NJ [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Maturity Sep. 01, 2026  
Interest Rate 6.05%  
Mortgages Payable $ 24,972 25,136
Mortgages [Member] | Regency Club - Middletown, NY [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Maturity [2] Dec. 15, 2027  
Interest Rate [2] 6.05%  
Mortgages Payable [2] $ 13,836 13,920
Mortgages [Member] | Station Place - Red Bank, NJ [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Maturity Dec. 15, 2027  
Interest Rate 4.35%  
Mortgages Payable $ 11,157 11,281
Mortgages [Member] | Westwood Plaza - Westwood, NJ [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Maturity [3] May 01, 2025  
Interest Rate [3] 8.50%  
Mortgages Payable [3] $ 15,719 15,995
Mortgages [Member] | Preakness S/C - Wayne, NJ [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Maturity Aug. 01, 2025  
Interest Rate 5.00%  
Mortgages Payable $ 25,000 25,000
Mortgages [Member] | Total fixed rate mortgages payable [Member]    
Schedule of Summary of Mortgages Payable [Line Items]    
Mortgages Payable $ 127,903 $ 128,871
[1] On December 1, 2023, the mortgage secured by an apartment building located in River Edge, New Jersey 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 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, effective June 1, 2024, 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, the interest rate on the outstanding debt is based on a fixed interest rate of 6.75% and monthly installments of principal and interest of approximately $58,016 are required.
[2] On December 15, 2024, the mortgage secured by an apartment building located in Middletown, New York and the corresponding interest rate swap contract on its underlying loan came due with no settlement of the swap contract due at maturity. Effective December 15, 2024, FREIT Regency, LLC entered into a loan extension and modification agreement with the lender of this loan, Provident Bank, with a then outstanding loan balance of approximately $13.9 million. Under the terms and conditions of this loan extension and modification, the maturity date of this loan is extended for three years to December 15, 2027, the interest rate on the outstanding debt is based on a fixed interest rate of 6.05% and monthly installments of principal and interest of approximately $84,521 are required.
[3] 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 $16.9 million. 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 for this loan (“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 was based on a fixed interest rate of 8.5% and was 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 represented the annualized principal and interest payments for one (1) year under this loan extension. Effective February 1, 2025, Valley National Bank extended this loan for 90 days from a maturity date of February 1, 2025 to a maturity date of May 1, 2025 under the same terms and conditions of the existing loan agreement.
v3.25.1
Mortgages Payable and Line of Credit - Schedule of Principal Amounts (Details)
$ in Thousands
Apr. 30, 2025
USD ($)
Schedule of Principal Amounts of Long-Term Debt [Abstract]  
2025 $ 32,445 [1],[2]
2026 35,745 [3]
2027 9,654
2028 24,521
2029 $ 26,506
[1] The $5.7 million (including deferred interest of approximately $0.2 million) pay down of the loan on the Westwood Plaza shopping center paid in May 2025 when FREIT entered into a loan extension and modification agreement with Valley National Bank.
[2] The loan on the Preakness shopping center located in Wayne, New Jersey in the amount of approximately $25 million, which has a maturity date of August 1, 2025. Management expects this loan to be extended, however, until such time as a definitive agreement providing for an extension of this loan is entered into, there can be no assurance this loan will be extended.
[3] The $10 million remaining loan balance on the Westwood Plaza shopping center loan, which per the loan extension and modification agreement the maturity date of this loan is extended for one year to May 1, 2026.
v3.25.1
Mortgages Payable and Line of Credit - Schedule of Estimated Fair Value and Net Carrying Value of Long-Term Debt (Details) - USD ($)
$ in Millions
Apr. 30, 2025
Oct. 31, 2024
Schedule of Estimated Fair Value and Net Carrying Value of Long-Term Debt [Abstract]    
Fair Value $ 124.5 $ 124.7
Carrying Value, Net $ 127.2 $ 128.1
v3.25.1
Segment Information (Details)
 6 Months Ended
Apr. 30, 2025
segment
Segment Information [Abstract]  
Number of segments 2
v3.25.1
Segment Information - Schedule of Condensed Consolidated Net Income Attributable to Common Equity (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Apr. 30, 2025
Jan. 31, 2025
Apr. 30, 2024
Jan. 31, 2024
Apr. 30, 2025
Apr. 30, 2024
Real estate rental revenue:            
Real estate rental revenue $ 7,286   $ 7,304   $ 14,583 $ 14,332
Real estate operating expenses:            
Real estate operating expenses 3,465   3,539   7,201 7,048
Net operating income:            
Net operating income 3,821   3,765   7,382 7,284
Recurring capital improvements - residential (126)   (169)   (203) (265)
Reconciliation to condensed consolidated net income attributable to common equity:            
Segment NOI 3,821   3,765   7,382 7,284
Deferred rents - straight lining (28)   (29)   (56) (58)
Investment income 350   279   750 686
General and administrative expenses (791)   (1,015)   (1,636) (2,823)
Income (loss) on investment in tenancy-in-common 14   62   23 (47)
Depreciation (734)   (789)   (1,457) (1,514)
Net loss on sale of Maryland properties   (92)   (171)
Financing costs (1,851)   (1,782)   (3,724) (3,624)
Net income (loss) 781 $ 501 399 $ (666) 1,282 (267)
Net loss attributable to noncontrolling interests in subsidiaries 113   134   226 288
Net income attributable to common equity 894   533   1,508 21
Commercial [Member]            
Real estate rental revenue:            
Real estate rental revenue 1,846   2,083   3,780 4,064
Real estate operating expenses:            
Real estate operating expenses 1,283   1,266   2,650 2,593
Net operating income:            
Net operating income 563   817   1,130 1,471
Residential [Member]            
Real estate rental revenue:            
Real estate rental revenue 5,440   5,221   10,803 10,268
Real estate operating expenses:            
Real estate operating expenses 2,182   2,273   4,551 4,455
Net operating income:            
Net operating income $ 3,258   $ 2,948   $ 6,252 $ 5,813
v3.25.1
Income Taxes (Details) - USD ($)
 6 Months Ended 12 Months Ended
Apr. 30, 2025
Oct. 31, 2024
Income Taxes [Abstract]    
Percentage of ordinary taxable income 90.00%  
Percentage of ordinary taxable income distributed   100.00%
Capital gain percentage   100.00%
Provision for federal or state income taxes (in Dollars)  
v3.25.1
Equity Incentive Plan (Details) - USD ($)
 6 Months Ended
Feb. 21, 2025
Feb. 20, 2025
Mar. 22, 2024
Apr. 30, 2025
Apr. 30, 2024
Oct. 31, 2024
Equity Incentive Plan [Line Items]            
Common stock, par value (in Dollars per share)   $ 0.01   $ 0.01   $ 0.01
Board approved issued shares   1,193        
Compensation expense related to stock options vested amount (in Dollars)       $ 0 $ 1,000  
Equity Incentive Plan [Member]            
Equity Incentive Plan [Line Items]            
Cash compensation (in Dollars)   $ 20,000 $ 20,000      
Closing price per share (in Dollars per share) $ 16.76          
Board approved issued shares 1,193   1,230      
Available for issuance shares       419,709    
Equity Incentive Plan [Member] | FREIT [Member]            
Equity Incentive Plan [Line Items]            
Closing price per share (in Dollars per share)     $ 16.25      
Board approved issued shares     1,230      
v3.25.1
Equity Incentive Plan - Schedule of Stock Option Activity (Details) - Stock Option [Member]
 6 Months Ended
Apr. 30, 2025
$ / shares
shares
Schedule of Stock Option Activity [Line Items]  
No. of Options Outstanding, beginning of year 8,440
Weighted Average price, beginning of year (in Dollars per share) | $ / shares $ 9.21
No. of Options Outstanding, Options granted during period
Weighted Average price, Options granted during period (in Dollars per share) | $ / shares
No. of Options Outstanding, Options forfeited/cancelled during period
Weighted Average price, Options forfeited/cancelled during period (in Dollars per share) | $ / shares
No. of Options Outstanding, Options exercised during period
Weighted Average Price, Options exercised during period (in Dollars per share) | $ / shares
No. of Options Outstanding, end of year 8,440
Weighted Average price at end of year (in Dollars per share) | $ / shares $ 9.21
No. of Options Outstanding, Options vested 8,440
No. of Options Outstanding, exercisable at end of period 8,440
v3.25.1
Rental Income (Details)
 6 Months Ended
Apr. 30, 2025
Rental Income [Line Items]  
Lease terms for residential tenants, periods 5 years
Minimum [Member]  
Rental Income [Line Items]  
Lease terms for residential tenants, periods 1 year
Maximum [Member]  
Rental Income [Line Items]  
Lease terms for residential tenants, periods 2 years
v3.25.1
Rental Income - Schedule of Minimum Fixed Lease Consideration Under Non-Cancelable Tenant Operating Leases (Details)
$ in Thousands
Apr. 30, 2025
USD ($)
Schedule of Minimum Fixed Lease Consideration Under Non-Cancelable Tenant Operating Leases [Abstract]  
2025 $ 4,857
2026 4,880
2027 3,907
2028 2,940
2029 2,728
Thereafter 5,233
Total $ 24,545