Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2023 | Jan. 29, 2024 | Apr. 30, 2023 | |
Document Information Line Items | |||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Common Stock, Shares Outstanding | 7,449,583 | ||
Entity Public Float | $ 87 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000036840 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Oct. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-25043 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 22-1697095 | ||
Entity Address, Address Line One | 505 Main Street | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Hackensack | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07601 | ||
City Area Code | (201) | ||
Local Phone Number | 488-6400 | ||
Entity Interactive Data Current | Yes | ||
Document Financial Statement Error Correction [Flag] | true | ||
Document Financial Statement Restatement Recovery Analysis [Flag] | false | ||
Auditor Firm ID | 274 | ||
Auditor Name | EisnerAmper LLP | ||
Auditor Location | New York, New York | ||
Common Stock | |||
Document Information Line Items | |||
Trading Symbol | FREVS | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Security Exchange Name | NONE | ||
Preferred Stock | |||
Document Information Line Items | |||
Title of 12(b) Security | Preferred Stock Purchase Rights |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 93,617 | $ 95,875 |
Construction in progress | 898 | 688 |
Cash and cash equivalents | 13,217 | 49,578 |
Investment in U.S. Treasury securities available-for-sale | 23,593 | |
Investment in tenancy-in-common | 18,137 | 18,798 |
Tenants' security accounts | 962 | 1,038 |
Receivables arising from straight-lining of rents | 690 | 790 |
Accounts receivable, net of allowance for doubtful accounts of $1,090 and $1,126 as of October 31, 2023 and 2022, respectively | 559 | 802 |
Funds held in post-closing escrow | 883 | 6,251 |
Prepaid expenses and other assets | 4,912 | 3,176 |
Deferred charges, net | 311 | 244 |
Interest rate swap contracts | 1,336 | 1,409 |
Total Assets | 159,115 | 178,649 |
Liabilities: | ||
Mortgages payable, including deferred interest of $222 as of October 31, 2023 and 2022 | 138,179 | 139,217 |
Less unamortized debt issuance costs | 1,117 | 1,145 |
Mortgages payable, net | 137,062 | 138,072 |
Deferred director compensation payable | 2,317 | |
Accounts payable and accrued expenses | 1,275 | 1,306 |
Dividends payable | 372 | 10,573 |
Tenants' security deposits | 1,262 | 1,285 |
Deferred revenue | 668 | 357 |
Total Liabilities | 140,639 | 153,910 |
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; 7,449,583 and 7,048,344 shares issued plus 0 and 272,882 vested share units granted to directors at October 31, 2023 and 2022, respectively | 74 | 73 |
Additional paid-in-capital | 32,074 | 30,635 |
Accumulated deficit | (8,968) | (6,208) |
Accumulated other comprehensive income | 1,336 | 1,409 |
Total Common Equity | 24,516 | 25,909 |
Noncontrolling interests in subsidiaries | (6,040) | (1,170) |
Total Equity | 18,476 | 24,739 |
Total Liabilities and Equity | $ 159,115 | $ 178,649 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 1,090 | $ 1,126 |
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 | 0 |
Preferred stock, shares issued | 5,000,000 | 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 | 7,449,583 | 7,048,344 |
Common vested share units to directors | 0 | 272,882 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Revenue: | |||
Rental income | $ 25,522 | $ 28,453 | $ 44,160 |
Reimbursements | 2,357 | 2,383 | 5,468 |
Sundry income | 465 | 435 | 663 |
Total revenue | 28,344 | 31,271 | 50,291 |
Expenses: | |||
Operating expenses | 10,764 | 12,631 | 17,249 |
Management fees | 1,342 | 1,451 | 2,178 |
Real estate taxes | 5,891 | 6,202 | 8,062 |
Depreciation | 2,944 | 3,995 | 9,300 |
Total expenses | 20,941 | 24,279 | 36,789 |
Investment income | 1,013 | 358 | 116 |
Net (loss) gain on sale of Maryland properties | (1,003) | 68,771 | |
Net realized gain on Wayne PSC interest rate swap termination | 1,415 | ||
Loss on investment in tenancy-in-common | (271) | (228) | (295) |
Interest expense including amortization of deferred financing costs | (7,717) | (8,064) | (12,276) |
Net (loss) income | (575) | 69,244 | 1,047 |
Net loss (income) attributable to noncontrolling interests in subsidiaries | 1,335 | (23,252) | (120) |
Net income attributable to common equity | $ 760 | $ 45,992 | $ 927 |
Earnings per share: | |||
Basic (in Dollars per share) | $ 0.1 | $ 6.52 | $ 0.13 |
Diluted (in Dollars per share) | $ 0.1 | $ 6.45 | $ 0.13 |
Weighted average shares outstanding: | |||
Basic (in Shares) | 7,441 | 7,055 | 7,019 |
Diluted (in Shares) | 7,447 | 7,132 | 7,022 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (575) | $ 69,244 | $ 1,047 |
Other comprehensive (loss) income: | |||
Unrealized gain on interest rate cap and swap contracts before reclassifications | 547 | 4,306 | 1,360 |
Amount reclassified from accumulated other comprehensive income to realized gain on termination of interest rate swap | (1,415) | ||
Amount reclassified from accumulated other comprehensive income to interest expense | (620) | 826 | 1,256 |
Net unrealized (loss) gain on interest rate cap and swap contracts | (73) | 3,717 | 2,616 |
Comprehensive (loss) income | (648) | 72,961 | 3,663 |
Net loss (income) attributable to noncontrolling interests in subsidiaries | 1,335 | (23,252) | (120) |
Other comprehensive loss (income) : | |||
Unrealized gain on interest rate cap and swap contracts attributable to noncontrolling interests in subsidiaries | (291) | (647) | |
Comprehensive loss (income) attributable to noncontrolling interests in subsidiaries | 1,335 | (23,543) | (767) |
Comprehensive income attributable to common equity | $ 687 | $ 49,418 | $ 2,896 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Beneficial Interest | Treasury Shares at Cost | Common Stock | Additional Paid-In-Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Common Equity | Noncontrolling Interests in Subsidiaries | |
Balance at Oct. 31, 2020 | $ 30,863 | $ 27,960 | $ (2,863) | $ 13,791 | $ (3,986) | $ 34,902 | $ (4,039) | |||
Balance (in Shares) at Oct. 31, 2020 | 7,145 | 137 | ||||||||
Stock based compensation expense | 42 | $ 31 | 11 | 42 | ||||||
Vested share units granted to directors | 488 | $ 231 | $ 1 | 256 | 488 | |||||
Vested share units granted to directors (in Shares) | 14 | 14 | ||||||||
Vested share units issued to retired director | [1] | $ (72) | $ 72 | |||||||
Vested share units issued to retired director (in Shares) | [1] | (4) | (4) | |||||||
Distributions to noncontrolling interests in subsidiaries | (1,350) | (1,350) | ||||||||
Net income (loss) | 1,047 | 927 | 927 | 120 | ||||||
Dividends declared | (1,755) | (1,755) | (1,755) | |||||||
Reincorporation of First Real Estate Investment Trust of New Jersey with and into FREIT | $ (28,150) | $ 2,791 | $ 70 | 25,289 | ||||||
Reincorporation of First Real Estate Investment Trust of New Jersey with and into FREIT (in Shares) | (7,155) | (133) | 7,022 | |||||||
Net unrealized loss on interest rate swap contracts | 2,616 | 1,969 | 1,969 | 647 | ||||||
Balance at Oct. 31, 2021 | 31,951 | $ 71 | 25,556 | 12,963 | (2,017) | 36,573 | (4,622) | |||
Balance (in Shares) at Oct. 31, 2021 | 7,036 | |||||||||
Stock based compensation expense | 1,192 | 1,192 | 1,192 | |||||||
Vested share units granted to directors | 1,861 | $ 1 | 1,860 | 1,861 | ||||||
Vested share units granted to directors (in Shares) | 100 | |||||||||
Stock options exercised | 2,028 | $ 1 | 2,027 | 2,028 | ||||||
Stock options exercised (in Shares) | 185 | |||||||||
Distributions to noncontrolling interests in subsidiaries | (20,091) | (20,091) | ||||||||
Net income (loss) | 69,244 | 45,992 | 45,992 | 23,252 | ||||||
Dividends declared | (65,163) | (65,163) | (65,163) | |||||||
Net unrealized loss on interest rate swap contracts | 3,717 | 3,426 | 3,426 | 291 | ||||||
Balance at Oct. 31, 2022 | 24,739 | $ 73 | 30,635 | (6,208) | 1,409 | 25,909 | (1,170) | |||
Balance (in Shares) at Oct. 31, 2022 | 7,321 | |||||||||
Stock based compensation expense | 11 | 11 | 11 | |||||||
Vested share units granted to directors | 26 | 26 | 26 | |||||||
Vested share units granted to directors (in Shares) | 2 | |||||||||
Stock awards granted to Directors | 140 | 140 | 140 | |||||||
Stock awards granted to Directors (in Shares) | 9 | |||||||||
Stock options exercised | 1,263 | $ 1 | 1,262 | 1,263 | ||||||
Stock options exercised (in Shares) | 118 | |||||||||
Distributions to noncontrolling interests in subsidiaries | (3,535) | (3,535) | ||||||||
Net income (loss) | (575) | 760 | 760 | (1,335) | ||||||
Dividends declared | (3,520) | (3,520) | (3,520) | |||||||
Net unrealized loss on interest rate swap contracts | (73) | (73) | (73) | |||||||
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 | |||||||||
[1]Represents the issuance of treasury shares to retired director for share units earned. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Stock dividends payable | $ 1,741 | $ 42 |
Dividends declared, per share | $ 9.2 | $ 0.25 |
Directors | ||
Stock dividends payable | $ 1,741 | $ 42 |
Dividends declared, per share | $ 9.2 | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 USD ($) | Oct. 31, 2022 USD ($) | Oct. 31, 2021 USD ($) | |
Operating activities: | |||
Net (loss) income | $ (575) | $ 69,244 | $ 1,047 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Net loss (gain) on sale of Maryland properties | 1,003 | (68,771) | |
Depreciation | 2,944 | 3,995 | 9,300 |
Amortization | 612 | 1,104 | 1,653 |
Stock based compensation expense | 11 | 1,192 | 42 |
Directors fees and related interest paid in stock units | 26 | 120 | 446 |
Stock awards granted to directors | 140 | ||
Loss on investment in tenancy-in-common | 271 | 228 | 295 |
Deferred rents - straight line rent | 100 | (18) | 230 |
Deferred real estate tax appeal fees | 35 | ||
Bad debt expense | 16 | 361 | 361 |
Accreted interest on investment in U.S. Treasury securities | (353) | ||
Changes in operating assets and liabilities: | |||
Tenants' security accounts | (23) | (754) | (75) |
Accounts receivable, prepaid expenses and other assets | 152 | 2,571 | (363) |
Accounts payable, accrued expenses and deferred director compensation payable | (1,954) | (1,159) | (7) |
Deferred revenue | 311 | (786) | 100 |
Due to affiliate - accrued interest | (47) | (808) | |
Deferred interest on mortgages | (2) | ||
Net cash provided by operating activities | 2,681 | 7,315 | 12,219 |
Investing activities: | |||
(Cash outlays) proceeds from sale of Maryland properties, net | (1,003) | 245,763 | |
Purchase of U.S. Treasury securities | (38,444) | ||
Proceeds from maturities of U.S. Treasury securities | 15,204 | ||
Proceeds from payment of secured loans receivable inclusive of accrued interest | 5,316 | ||
Capital improvements - existing properties | (1,290) | (1,570) | (1,936) |
Deferred leasing costs | (170) | (173) | (279) |
Distribution from investment in tenancy-in-common | 390 | 357 | 423 |
Net cash (used in) provided by investing activities | (25,313) | 249,693 | (1,792) |
Financing activities: | |||
Repayment of mortgages | (26,538) | (194,559) | (5,962) |
Proceeds from mortgage loan refinancings | 25,500 | 32,500 | |
Proceeds from exercise of stock options | 1,263 | 2,028 | |
Deferred financing costs | (481) | (691) | (699) |
Due to affiliate - loan proceeds | 300 | ||
Due to affiliate - loan repayment | (3,505) | (1,861) | |
Dividends paid | (13,721) | (53,535) | (1,027) |
Distributions to noncontrolling interests in subsidiaries | (3,535) | (20,091) | (1,350) |
Net cash used in financing activities | (17,512) | (237,553) | (10,899) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (40,144) | 19,455 | (472) |
Cash, cash equivalents and restricted cash, beginning of year | 58,500 | 39,045 | 39,517 |
Cash, cash equivalents and restricted cash, end of year | 18,356 | 58,500 | 39,045 |
Supplemental disclosure of cash flow data: | |||
Interest paid | 7,182 | 7,134 | 10,965 |
Operating activities: | |||
Commercial tenant security deposits applied to accounts receivable | 10 | ||
Investing activities: | |||
Accrued capital expenditures, construction costs and pre-development costs | 210 | 33 | 125 |
Financing activities: | |||
Retirement of treasury stock | 2,791 | ||
Dividends declared but not paid | 372 | 10,573 | 686 |
Dividends paid in share units | 1,741 | 42 | |
Vested share units issued to retired director | 72 | ||
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets: | |||
Cash and cash equivalents | 13,217 | 49,578 | 35,891 |
Tenants' security accounts | 962 | 1,038 | 1,340 |
Funds held in post-closing escrow | 883 | 6,251 | |
Mortgage escrows (included in prepaid expenses and other assets) | 3,294 | 1,633 | 1,814 |
Total cash, cash equivalents and restricted cash | $ 18,356 | $ 58,500 | $ 39,045 |
Organization and Significant Ac
Organization and Significant Accounting Policies | 12 Months Ended |
Oct. 31, 2023 | |
Organization and Significant Accounting Policies [Abstract] | |
Organization and significant accounting policies | Note 1 - Organization and significant accounting policies: Organization: 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 engaged in owning residential and commercial income producing properties located in New Jersey and New York. FREIT has elected to be taxed as a Real Estate Investment Trust under the provisions of Sections 856-860 of the Internal Revenue Code, as amended. Accordingly, FREIT does not pay federal income tax on income whenever income distributed to stockholders is equal to at least 90% of real estate investment trust taxable income. Further, FREIT pays no federal income tax on capital gains distributed to stockholders. FREIT is subject to federal income tax on undistributed taxable income and capital gains. FREIT may make an annual election under Section 858 of the Internal Revenue Code to apply part of the regular dividends paid in each respective subsequent year as a distribution for the immediately preceding year. 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 Reference Rate Reform (ASC 848): Scope Principles of consolidation: The consolidated financial statements include the accounts of FREIT and the following subsidiaries in which FREIT has a controlling financial interest, including two LLCs in which FREIT is the managing member with a 40% ownership interest: Subsidiary Owning % Year Westwood Hills, LLC FREIT 40% 1994 Wayne PSC, LLC FREIT 40% 2002 Damascus Centre, LLC FREIT 70% 2003 Grande Rotunda, LLC FREIT 60% 2005 WestFREIT, Corp FREIT 100% 2007 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 The consolidated financial statements include 100% of each subsidiary’s assets, liabilities, operations and cash flows, with the interests not owned by FREIT reflected as "noncontrolling interests in subsidiaries”. All significant intercompany accounts and transactions have been eliminated in consolidation. 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. Accordingly, FREIT consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, liabilities, operations and cash flows with the interest not owned by FREIT reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT ultimately acquired a 65% undivided interest in the Pierre Towers property, which was formerly owned by S&A. Based on the guidance of Accounting Standards Codification (“ASC”) 810, “Consolidation” Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents: Financial instruments that potentially subject FREIT to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits. Investments in U.S. Treasury securities: FREIT invests in short-term Treasury bills and Treasury notes (collectively “Treasury securities”) issued by the U.S. Treasury Department and backed by the U.S. Government. Treasury bills yield no interest, are issued at a discount to the redemption price and pay interest at maturity based on the discount to the redemption price. Treasury notes are similar to Treasury bills except they generally have a longer maturity (between two and ten years) and pay interest semi-annually. We classified investments in the U.S. Treasury securities with maturities greater than 90 days as available-for-sale investments. We use quoted market prices to determine the fair value of these investments. (See Note 6) Real estate development costs: It is FREIT’s policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT ceases capitalization of these costs when the project or portion thereof becomes operational, or when construction has been postponed. In the event of a postponement, capitalization of these costs will recommence once construction on the project resumes. Depreciation: Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. Impairment of long-lived assets: Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. There were no impairments of long-lived assets for the fiscal years ended October 31, 2023, 2022 and 2021. Deferred charges: Deferred charges consist primarily of leasing commissions, which are amortized on the straight-line method over the terms of the applicable leases. Debt issuance costs: Debt issuance costs are amortized on the straight-line method (which approximates the effective interest method) by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $509,000, $971,000 and $1,109,000 in Fiscal 2023, 2022 and 2021, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. Revenue recognition: Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT and commercial tenants generally provide for additional rentals and reimbursements for their proportionate share of real estate taxes, insurance, common area maintenance charges and may include percentage of tenants' sales in excess of specified volumes. Percentage rents are generally included in income when reported to FREIT when earned, or ratably over the appropriate period. Interest rate cap and swap contracts: FREIT utilizes derivative financial instruments to reduce interest rate risk. FREIT does not hold or issue derivative financial instruments for trading purposes. FREIT recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as cash flow hedges, are reported in other comprehensive income. (See Note 6) Advertising: FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $287,000, $234,000 and $421,000 in Fiscal 2023, 2022 and 2021, respectively. Stock-based compensation: FREIT has a stock-based compensation plan that was approved by FREIT’s Board of Directors (the “Board”), and ratified by FREIT’s stockholders. Stock based awards are accounted for based on their grant-date fair value. (See Note 10) Correction of previously issued “unaudited” quarterly financial statements: FREIT is adjusting its previously issued “unaudited” quarterly financial statements for the correction of a material error with respect to the previous classification of investments in U.S. Treasury securities with maturities greater than 90 days as cash equivalents for the year ended October 31, 2023. FREIT identified that for each of the prior quarterly reporting periods the Company had incorrectly included investments in U.S. Treasury securities with maturities greater than 90 days in both the line item “Cash and cash equivalents” on the condensed consolidated balance sheet and within the condensed consolidated statement of cash flows. In accordance with U.S. GAAP, any investment with a maturity greater than 90 days is not classified as a cash equivalent. As such, in accordance with Accounting Standards Codification (“ASC”) Topic 320 , “Investments – Debt Securities The Company evaluated the effects of this error on its previously issued consolidated financial statements as of and for the years ended October 31, 2022 and 2021 and the previously issued condensed consolidated financial statements for the quarterly reporting periods within the year ended October 31, 2023 in accordance with the guidance in ASC Topic 250, “ Accounting Changes and Error Corrections Assessing Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements Condensed Consolidated Balance Sheets: (In thousands) January 31, 2023 April 30, 2023 July 31, 2023 As Reported As Restated As Reported As Restated As Reported As Restated Cash and cash equivalents $ 37,187 $ 31,514 $ 35,717 $ 18,633 $ 38,134 $ 17,757 Investments in U.S. Treasury securities available-for-sale $ — $ 5,712 $ — $ 17,246 $ — $ 20,526 Accounts receivable, net $ 621 $ 582 $ 638 $ 476 $ 610 $ 461 Other Assets $ 126,721 $ 126,721 $ 126,345 $ 126,345 $ 122,104 $ 122,104 Total Assets $ 164,529 $ 164,529 $ 162,700 $ 162,700 $ 160,848 $ 160,848 Condensed Consolidated Statements of Cash Flows: (In thousands) January 31, 2023 April 30, 2023 July 31, 2023 As Reported As Restated As Reported As Restated As Reported As Restated Operating activities: Accreted interest on investment in U.S. Treasury securities $ — $ (39 ) $ — $ (162 ) $ — $ (154 ) Change in accounts receivable, prepaid expenses & other assets $ 97 $ 136 $ (20 ) $ 142 $ 248 $ 397 Net cash (used in) provided by operating activities $ (862 ) $ (862 ) $ 308 $ 308 $ 1,883 $ 1,878 Investing activities: Purchase of U.S. Treasury securities $ — $ (5,673 ) $ — $ (17,084 ) $ — $ (31,752 ) Proceeds from maturities of U.S. Treasury securities $ — $ — $ — $ — $ — $ 11,380 Net cash used in investing activities $ (354 ) $ (6,027 ) $ (1,432 ) $ (18,516 ) $ (1,748 ) $ (22,120 ) Cash, cash equivalents and restricted cash $ 45,519 $ 39,846 $ 44,351 $ 27,267 $ 43,389 $ 23,012 |
Maryland Property Dispositions
Maryland Property Dispositions | 12 Months Ended |
Oct. 31, 2023 | |
Maryland Property Dispositions [Abstract] | |
Maryland property dispositions | Note 2 – 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 original purchase price for the Rotunda Property, the Damascus Property and the Westridge Square Property (collectively the “Maryland Properties”) under the Maryland Purchase and Sale Agreement was reduced by $2,723,000 from $267,000,000 to $248,750,269, after giving effect to the $15,526,731 escrow deposit described below. This reduction in the sales price of $2,723,000 was to account for improvements and repairs to the Maryland Properties and miscellaneous items identified by the Maryland Purchaser in the course of its due diligence inspection. Additionally, the Maryland Purchaser was obligated under the Maryland Purchase and Sale Agreement to deposit a total of $15,526,731 in escrow (the “Maryland Purchaser Escrow Payment”) with respect to certain leases at the Maryland Properties, which had not been executed or where the rent commencement date had not occurred or economic obligations of the Maryland Sellers under certain leases remain unpaid. The Maryland Purchaser Escrow Payment Agreement provides for among other things, monthly disbursements from escrow to the Maryland Purchaser related to the aforementioned tenant lease agreements until the earlier of (i) the rent commencement date of the respective tenant lease agreements or (ii) 5-years from the date of the agreement. Release and amounts of escrowed funds to FREIT, generally, is contingent on the success and timing of future leasing activities at the Maryland Properties. On December 30, 2021, the sale of the Rotunda Property, which had a net book value of approximately $136.2 million (as adjusted), was consummated by Grande Rotunda and the Maryland Purchaser for a purchase price of $191,080,598. Grande Rotunda received net proceeds from the sale of approximately $40.7 million (inclusive of approximately $4.5 million and $0.7 million in funds released from the Maryland Purchaser Escrow Payment in the years ended October 31, 2023 and 2022, respectively), after payment of related mortgage debt in the amount of $116.5 million, payment of loans (including interest) to each of the equity owners in Grande Rotunda (FREIT with a 60% interest and Rotunda 100, LLC (“Rotunda 100”) with a 40% interest) in the amount of approximately $31 million, with FREIT receiving approximately $27.7 million, and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. (“Hekemian & Co., Inc.”) of approximately $4.9 million (see Note 8). In addition, the Maryland Purchaser deposited a total of $14,026,401 of the Maryland Purchaser Escrow Payment in escrow with respect to certain leases at the Rotunda Property, which have not been executed or where the rent commencement date has not occurred or economic obligations of Grande Rotunda under certain leases remain unpaid. As of October 31, 2023, approximately $5,186,000 of these funds has been released from escrow to Grande Rotunda. The escrow and related gain on sale were reduced by approximately $1.1 million and $1.2 million in the years ended October 31, 2023 and 2022, 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 $0.9 million and $6.3 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 consolidated balance sheet as of October 31, 2023 and 2022, respectively. These funds held in post-closing escrow are anticipated to be released in Fiscal 2024. The net proceeds from the sale were distributed to the equity owners in Grande Rotunda with FREIT receiving approximately $4.5 million and $21.4 million in the years ended October 31, 2023 and 2022, respectively, based on its 60% interest in Grande Rotunda. The sale of the Rotunda Property resulted in a net gain of approximately $48.9 million (as adjusted) which includes approximately $6.1 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 $1.8 million and a write-off of unamortized lease commissions of approximately $1.1 million. In Fiscal 2022, secured loans including accrued interest made by certain members in Rotunda 100 of approximately $5.3 million were repaid to FREIT with no remaining balance due. On January 7, 2022, the sale of the Westridge Square Property, which had a net book value of approximately $11.5 million, was consummated by WestFREIT and the Maryland Purchaser for a purchase price of $20,984,604. WestFREIT received net proceeds from the sale of approximately $0.2 million (inclusive of approximately $0.1 million and $0.8 million in funds released from the Maryland Purchaser Escrow Payment in the years ended October 31, 2023 and 2022, respectively), after payment of related mortgage debt in the amount of approximately $21.1 million and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. of approximately $0.6 million (see Note 8). In addition, the Maryland Purchaser deposited a total of $1,015,396 of the Maryland Purchaser Escrow Payment in escrow with respect to certain leases at the Westridge Square Property, which had not been executed or where the rent commencement date had not occurred or economic obligations of WestFREIT under certain leases remained unpaid. As of October 31, 2023, approximately $945,000 of these funds have been released from escrow with no remaining funds held in post-closing escrow for rents anticipated to be released. The escrow and related gain on sale were increased by approximately $0.1 million for the year ended October 31, 2023 due to a change in estimate related to a change in the timing of anticipated rent commencement dates for a certain tenant. The sale of the Westridge Square Property resulted in a net gain of approximately $8.8 million (as adjusted), which includes approximately $0.9 million of proceeds released from funds held in escrow, a write-off of the straight-line rent receivable of approximately $0.5 million and a write-off of unamortized lease commissions of approximately $0.3 million. On January 10, 2022, the sale of the Damascus Property, which had a net book value of approximately $24.6 million, was consummated by Damascus Centre and the Maryland Purchaser for a purchase price of $36,685,067. Damascus Centre received net proceeds from the sale of approximately $17.3 million (inclusive of approximately $0 million and $0.4 million in funds released from the Maryland Purchaser Escrow Payment in the years ended October 31, 2023 and 2022, respectively), after payment of related mortgage debt in the amount of approximately $18.2 million and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on this loan and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. of approximately $0.9 million (see Note 8). In addition, the Maryland Purchaser deposited a total of $484,934 of the Maryland Purchaser Escrow Payment in escrow with respect to certain leases at the Damascus Property, which had not been executed or where the rent commencement date had not occurred or economic obligations of Damascus Centre under certain leases remained unpaid. As of October 31, 2023, approximately $416,000 of these funds have been released from escrow with no remaining funds held in post-closing escrow for rents anticipated to be released. The net proceeds from the sale were distributed to the partners in Damascus Centre with FREIT receiving approximately $0.6 million and $11.8 million in the years ended October 31, 2023 and 2022, respectively, based on its 70% interest in Damascus Centre. The sale of the Damascus Property resulted in a net gain of approximately $10.1 million, which includes approximately $0.4 million of proceeds released from funds held in escrow, a write-off of the straight-line rent receivable of approximately $0.6 million and a write-off of unamortized lease commissions of approximately $0.3 million. In summary, 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 $58.2 million (inclusive of approximately $4.6 million and $1.9 million in funds released from the Maryland Purchaser Escrow Payment in the years ended October 31, 2023 and 2022, respectively), 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 October 31, 2023, approximately $6,547,000 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 $1 million and $1.2 million for the years ended October 31, 2023 and 2022, 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 $0.9 million and $6.3 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 consolidated balance sheets as of October 31, 2023 and 2022, respectively. These funds held in post-closing escrow are anticipated to be released in Fiscal 2024. The sale of the Maryland Properties resulted in a net gain of approximately $67.8 million (as adjusted) (with a consolidated impact to FREIT of approximately $45 million) which includes approximately $7.4 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 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. |
Investment in Tenancy-in-Common
Investment in Tenancy-in-Common | 12 Months Ended |
Oct. 31, 2023 | |
Investment in tenancy-in-common [Abstract] | |
Investment in tenancy-in-common | Note 3 – Investment in tenancy-in-common: On February 28, 2020, FREIT reorganized S&A from a partnership into a 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 was approximately $18.1 million and $18.8 million at October 31, 2023 and 2022, respectively, with a loss on investment of approximately $271,000, $228,000 and $295,000, respectively, in the accompanying consolidated statements of income for the fiscal years ended October 31, 2023, 2022 and 2021, respectively. 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 $418,000, $402,000 and $375,000 for the fiscal years ended October 31, 2023, 2022 and 2021, respectively. Hekemian & Co. management fees outstanding at October 31, 2023 and 2022 were approximately $28,500 and $35,100, 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. Such commissions were charged to operations and amounted to approximately $51,000, $40,000 and $51,000 for the fiscal years ended October 31, 2023, 2022 and 2021, respectively. The following table summarizes the balance sheets of the Pierre Towers property as of October 31, 2023 and 2022, accounted for by the equity method: October 31, October 31, 2023 2022 (In Thousands of Dollars) Real estate, net $ 74,202 $ 76,042 Cash and cash equivalents 2,256 2,051 Tenants' security accounts 478 454 Receivables and other assets 455 583 Total assets $ 77,391 $ 79,130 Mortgages payable, net of unamortized debt issuance costs $ 48,516 $ 49,425 Accounts payable and accrued expenses 295 178 Tenants' security deposits 496 462 Deferred revenue 181 145 Equity 27,903 28,920 Total liabilities & equity $ 77,391 $ 79,130 FREIT's investment in TIC (65% interest) $ 18,137 $ 18,798 The following table summarizes the statements of operations of the Pierre Towers property for the fiscal years ended October 31, 2023, 2022 and 2021, accounted for by the equity method: Year Ended Year Ended Year Ended October 31, 2023 October 31, 2022 October 31, 2021 (In Thousands of Dollars) Revenues $ 8,278 $ 8,028 $ 7,627 Operating expenses 4,893 4,594 4,311 Depreciation 2,212 2,183 2,166 Operating income 1,173 1,251 1,150 Interest expense including amortization of deferred financing costs 1,590 1,601 1,604 Net loss $ (417 ) $ (350 ) $ (454 ) FREIT's loss on investment in TIC (65% interest) $ (271 ) $ (228 ) $ (295 ) |
Real Estate
Real Estate | 12 Months Ended |
Oct. 31, 2023 | |
Real Estate [Abstract] | |
Real estate | Note 4 - Real estate: Real estate consists of the following: Range of Estimated October 31, Useful Lives 2023 2022 (In Thousands of Dollars) Land $ 40,813 $ 40,813 Unimproved land 405 405 Apartment buildings 7-40 years 69,724 69,403 Commercial buildings/shopping centers 5-40 years 42,790 42,740 Equipment/furniture 5-15 years 2,229 2,174 Total real estate, gross 155,961 155,535 Less: accumulated depreciation 62,344 59,660 Total real estate, net $ 93,617 $ 95,875 |
Mortgages Payable and Credit Li
Mortgages Payable and Credit Line | 12 Months Ended |
Oct. 31, 2023 | |
Mortgages Payable and Credit Line [Abstract] | |
Mortgages payable and credit line | Note 5 – Mortgages payable and credit line: October 31, 2023 October 31, 2022 Principal (Including Unamortized Principal (Including Unamortized (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 7,500 $ 25 $ 7,500 $ 172 Westwood, NJ (B) 16,617 26 17,274 8 Wayne, NJ (C) 28,815 282 28,815 330 River Edge, NJ (D) 9,022 1 9,291 19 Red Bank, NJ (E) 11,521 63 11,750 78 Wayne, NJ (F) 25,000 275 25,000 431 Middletown, NY (G) 14,254 38 14,587 71 Westwood, NJ (H) 25,450 407 — — Total fixed rate 138,179 1,117 114,217 1,109 Westwood, NJ (H) — — 25,000 — Line of credit - Provident Bank (I) — — — 36 Total variable rate — — 25,000 36 Total $ 138,179 $ 1,117 $ 139,217 $ 1,145 (A) On December 30, 2021, FREIT refinanced its $14.4 million loan with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn upon through December 31, 2023 in the amount of $7,500,000 for corporate needs. This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT to extend for one year from the maturity date, subject to certain provisions of the loan agreement. This refinancing provided a reduction in the annual interest rate from a fixed rate of 5.37% to a fixed rate of 2.85% and interest-only payments being required under this new loan. On October 31, 2023, FREIT exercised its right, pursuant to the loan agreement, to extend the term 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 fully repaid this loan with a balance of $7.5 million. This will result in annual debt service savings of approximately $558,000. The mortgage is secured by a residential building in Rockaway, New Jersey having a net book value of approximately $13,889,000 as of October 31, 2023. (B) On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8 million, with a new mortgage loan held by Valley National Bank in the amount of $22,750,000, which was payable in monthly installments of $129,702 including interest at 4.75% through February 1, 2023 at which time the outstanding balance was due. Effective February 1, 2023, FREIT entered into a loan extension and modification agreement with Valley National Bank on this loan 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 is based on a fixed interest rate of 7.5% and is 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. 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 account 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 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 will be at a fixed interest rate based on the then corresponding Wall Street Journal Prime Rate (approximately 8.5%). The mortgage is secured by a retail building in Westwood, New Jersey having a net book value of approximately $7,255,000 as of October 31, 2023 including approximately $213,000 classified as construction in progress. As a result of the negative impact of the COVID-19 pandemic at this property, FREIT was granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended June 30, 2020, resulting in total deferred payments of approximately $390,000, of which approximately $222,000 related to deferred interest. These deferred payments are included in the mortgages payable on the consolidated balance sheets as of October 31, 2023 and 2022 and are due at the maturity of this loan. (C) On August 26, 2019, Berdan Court, LLC (“Berdan Court”), refinanced its $17 million loan with a new lender in the amount of $28,815,000. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 6.09% to a fixed rate of 3.54% and (ii) net refinancing proceeds of approximately $11.6 million, which could be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,544,000 as of October 31, 2023. (D) On November 19, 2013, FREIT refinanced mortgage loans with a new mortgage loan in the amount of $11,200,000 payable in monthly installments of $57,456 including interest at 4.54% through December 1, 2023 at which time the outstanding balance came due. On December 1, 2023, the mortgage in the amount of approximately $9 million came due. FREIT is in the process of refinancing this loan with the current lender, Provident Bank. While the bank is completing its due diligence around this refinancing, Provident Bank has provided a 90-day extension of the maturity date of this loan based on the same terms and conditions of the existing loan agreement. Management expects this loan to be refinanced, however, until such time as a definitive agreement providing for a refinancing of this loan is entered into, there can be no assurance this loan will be refinanced. The mortgage is secured by an apartment building in River Edge, New Jersey having a net book value of approximately $861,000 as of October 31, 2023. (E) On December 7, 2017, Station Place on Monmouth, LLC (“Station Place”) closed on a mortgage loan in the amount of $12,350,000 held by Provident Bank to purchase the Station Place property in Red Bank, New Jersey. Interest-only payments were required each month for the first two years of the term and thereafter, principal payments plus accrued interest were required each month through maturity. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. In order to minimize interest rate volatility during the term of the loan, Station Place entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment building in Red Bank, New Jersey having a net book value of approximately $17,982,000 as of October 31, 2023. (F) On July 22, 2022, Wayne PSC, LLC (“Wayne PSC”) refinanced its $22.1 million loan (inclusive of deferred interest of approximately $136,000), which would have matured on October 1, 2026, with a new loan held by ConnectOne Bank in the amount of $25,000,000. This loan is interest-only based on a fixed interest rate of 5% and has a term of three years with a maturity date of August 1, 2025. Additionally, an interest reserve escrow was established at closing representing twelve months of interest of $1,250,000, which can be used to pay monthly interest on this loan with a requirement to replenish the escrow account back to $1,250,000 when the balance in the escrow account is reduced to three months of interest. This refinancing resulted in (i) annual debt service savings of approximately $340,000 due to interest-only payments; (ii) an increase in the interest rate from a fixed interest rate of 3.625% to a fixed interest rate of 5%; and (iii) net refinancing proceeds of approximately $1.1 million which can be used for capital expenditures and general corporate purposes. As part of the refinancing, Wayne PSC terminated the interest rate swap contract on the underlying loan resulting in a realized gain on the swap breakage of approximately $1.4 million, which was recorded as a realized gain on the accompanying consolidated statement of income for the year ended October 31, 2022. (See Note 6 for additional details.) The mortgage is secured by a shopping center in Wayne, New Jersey having a net book value of approximately $21,942,000 as of October 31, 2023 including approximately $685,000 classified as construction in progress. As of October 31, 2023 the interest reserve escrow account has a balance of $613,000. (G) On December 29, 2014, FREIT Regency, LLC (“Regency”) closed on a $16.2 million mortgage loan with Provident Bank. The loan bears a floating interest rate equal to 125 basis points over the one-month BBA LIBOR and will mature on December 15, 2024. Interest-only payments had been required each month through December 15, 2017 and thereafter, principal payments of $27,807 (plus accrued interest) are required each month through maturity. In order to minimize interest rate volatility during the term of the loan, Regency entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 3.75% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment complex in Middletown, New York having a net book value of $17,172,000 as of October 31, 2023. (H) On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”) refinanced its $19.2 million loan with a new loan held by ConnectOne Bank in the amount of $25,000,000, with additional funding available in the amount of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property. (See Note 14 for additional details in regards to the lis pendens.) This loan, is interest-only based on a floating rate at 400 basis points over the one-month LIBOR rate with a floor of 4.15% and had a maturity date of October 1, 2022 with the option of Westwood Hills to extend for two (2) additional six (6)-month periods from the maturity date, subject to certain provisions of the loan agreement. This refinancing resulted in: (i) a change in the annual interest rate from a fixed rate of 4.62% to a variable rate with a floor of 4.15% and (ii) net refinancing proceeds of approximately $5.6 million that were distributed to the partners in Westwood Hills with FREIT receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. On August 19, 2022, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its its loan for an additional six (6) months from an initial maturity date of October 1, 2022 to a new maturity date of April 1, 2023 on the same terms and conditions as stated in the loan agreement. On March 1, 2023, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its loan, for an additional six (6) months to a new maturity date of October 1, 2023 on the same terms and conditions as stated in the loan agreement. 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% and annual debt service savings of approximately $535,000. The mortgage is secured by an apartment building in Westwood, New Jersey having a net book value of approximately $7,577,000 as of October 31, 2023. (I) 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 will be based on a floating interest rate of prime minus 25 basis points with a floor of 6.75%. As of October 31, 2023 and 2022, there was no amount outstanding and $13 million was available under the line of credit. Certain of the Company’s mortgage loans and the line of credit contain financial covenants. The Company was in compliance with all of its financial covenants as of October 31, 2023. Fair value of long-term debt: The following table shows the estimated fair value and carrying value of FREIT’s long-term debt, net at October 31, 2023 and 2022: ($ in Millions) October 31, October 31, Fair Value $130.8 $132.2 Carrying Value, Net $137.1 $138.1 Fair values are estimated based on market interest rates at the end of each fiscal year 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). Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2023 are as follows: Year Ending October 31, Amount 2024 $ 17,951 2025 $ 56,111 2026 $ 25,649 2027 $ 849 2028 $ 11,113 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Oct. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6 – Fair Value Measurements: Financial assets that are measured at fair value on our 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 In accordance with “ Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815") For the year ended October 31, 2023, FREIT recorded an unrealized loss of approximately $73,000 in the consolidated statement of comprehensive income representing the change in the fair value of these cash flow hedges during such period. 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. For the year ended October 31, 2022, FREIT recorded an unrealized gain of approximately $3,717,000 in the consolidated statement of comprehensive income representing the change in the fair value of these cash flow hedges during such period. As of October 31, 2022, there was an asset of approximately $611,000 for the Regency swap and $798,000 for the Station Place swap. For the year ended October 31, 2021, FREIT recorded an unrealized gain of approximately $2,616,000 in the consolidated statement of comprehensive income representing the change in the fair value of these cash flow hedges during such period. The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 7 - Commitments and contingencies: Leases Commercial tenants: FREIT leases commercial space having a net book value of approximately $35.5 million at October 31, 2023 to tenants for periods of up to twenty-five years. Most of the leases contain clauses for reimbursement of real estate taxes, maintenance, insurance and certain other operating expenses of the properties. 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-cancellable 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, subsequent to October 31, 2023, is as follows: Year Ending October 31, Amount 2024 $ 4,864 2025 3,955 2026 3,139 2027 2,015 2028 1,024 Thereafter 3,197 Total $ 18,194 The above amounts assume that all leases which 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 each of the years in the three-year period ended October 31, 2023 were not material. Residential tenants: Lease terms for residential tenants are usually one to two years. Environmental concerns The Westwood Plaza Shopping Center property is in a Flood Hazard Zone. FREIT maintains flood insurance in the amount of $500,000 for the subject property, which is the maximum available under the Flood Program for the property. Any reconstruction of that portion of the property situated in the flood hazard zone is subject to regulations promulgated by the New Jersey Department of Environmental Protection ("NJDEP"), which could require extraordinary construction methods. FREIT acquired the Westwood Plaza property in 1988, and the property has not experienced any flooding that gave rise to any claims under FREIT’s flood insurance in this time period. |
Management Agreement, Fees and
Management Agreement, Fees and Transactions With Related Party | 12 Months Ended |
Oct. 31, 2023 | |
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: On April 10, 2002, FREIT and Hekemian & Co. executed a management agreement dated as of November 1, 2001 (“Management Agreement”) whereby Hekemian & Co. would continue as the managing agent for FREIT. The Management Agreement expires 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. Hekemian & Co. currently manages all of the properties owned by FREIT and its affiliates, except for the office building at the Rotunda Property, which was sold on December 30, 2021 and was formerly managed by an independent third party management company. However, FREIT may retain other managing agents to manage properties acquired after April 10, 2002 and to perform various other duties such as sales, acquisitions, and development with respect to any or all properties. Hekemian & Co. does not serve as the exclusive property acquisition advisor to FREIT and is not required to offer potential acquisition properties exclusively to FREIT before acquiring those properties for its own account. The Management Agreement includes a detailed schedule of fees for those services, which Hekemian & Co. may be called upon to perform. The Management Agreement provides for a termination fee (“Termination Fee”) in the event of a termination by FREIT without cause and a termination fee of 1.25 times the Termination Fee if the Management Agreement terminates following a merger or acquisition of FREIT (the “M&A Termination Fee”). On March 9, 2023, the Board approved an amendment to the Management Agreement (the “Second Amendment”) which provides, among other things, that the M&A Termination Fee shall be increased from 1.25 times the Termination Fee to 2.5 times the Termination Fee. The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Such fees charged to operations were approximately $1,342,000, $1,429,000, and $2,127,000 in Fiscal 2023, 2022 and 2021, 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 $825,000, $701,000 and $548,000 in Fiscal 2023, 2022 and 2021, respectively. Total Hekemian & Co. management fees outstanding at October 31, 2023 and 2022 were approximately $97,000 and $105,000, respectively, and included in accounts payable on the accompanying consolidated balance sheets. 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 $166,000, $164,000 and $209,000 in Fiscal 2023, 2022 and 2021, respectively. FREIT owns a 60% equity interest in Grande Rotunda and Rotunda 100, LLC (“Rotunda 100”) owns a 40% equity interest in Grande Rotunda. The equity owners of Rotunda 100 are principally employees of Hekemian & Co. To incentivize the employees of Hekemian & Co., FREIT advanced, only to employees of Hekemian & Co., up to 50% of the amount of the equity contributions that the Hekemian & Co. employees were required to invest in Rotunda 100. These advances were in the form of secured loans that bore interest at rates that floated at 225 basis points over the ninety (90) day LIBOR, as adjusted each November 1, February 1, May 1 and August 1. These loans were secured by the Hekemian & Co. employees’ interests in Rotunda 100 and were full recourse loans. Interest only payments were required to be made when billed. No principal payments were required during the term of the notes, except that the borrowers were required to pay to FREIT all refinancing proceeds and other cash flow they received from their interest in Grande Rotunda. These payments were applied first to accrued and unpaid interest and then any outstanding principal. The notes originally had maturity dates at the earlier of (a) ten (10) years after issue, which was June 19, 2015, or, (b) at the election of FREIT, ninety (90) days after the borrower terminated employment with Hekemian & Co., at which time all outstanding unpaid principal and interest was due. On May 8, 2008, the Board approved amendments to the existing loan agreements with the Hekemian & Co. employees, relative to their interests in Rotunda 100, to increase the aggregate amount that FREIT may advance to such employees from $2 million to $4 million. On June 4, 2015, the Board approved an extension of the maturity date of the secured loans to occur the earlier of (a) June 19, 2018 or (b) five days after the closing of a permanent mortgage loan secured by the Rotunda property. On December 7, 2017, the Board approved a further extension of the maturity dates of these loans to the date or dates upon which distributions of cash were made by Grande Rotunda to its members as a result of a refinancing or sale of Grande Rotunda or the Rotunda property. In Fiscal 2022, approximately $5.3 million of the secured loans receivable (including accrued interest) were repaid to FREIT with no outstanding balance remaining of principal or interest related to the Rotunda 100 notes. In Fiscal 2017, Grande Rotunda incurred substantial expenditures at the Rotunda Property related to retail tenant improvements, leasing costs and operating expenditures which, in the aggregate, exceeded revenues as the property was still in the rent up phase and the construction loan held with Wells Fargo at that time was at its maximum level, with no additional funding available to draw. Accordingly, during Fiscal 2017 the equity owners in Grande Rotunda contributed their respective pro-rata share of any cash needs through loans to Grande Rotunda. On December 30, 2021, the Rotunda Property, owned by Grande Rotunda, was sold and the net proceeds from the sale were distributed to the equity owners in Grande Rotunda. (See Note 2 for further details.) In Fiscal 2022, Grande Rotunda repaid approximately $31 million to the equity owners in Grande Rotunda resulting in a loan repayment to Rotunda 100 of approximately $3.3 million. All loans were repaid in full to each of the equity owners in Grande Rotunda. 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 during Fiscal 2023, 2022 and 2021 were approximately $307,000, $6,388,000 and $236,500, respectively. Fees incurred during Fiscal 2023 related to commissions to Hekemian & Co. for the following: $129,000 for the additional proceeds received from the post-closing rent escrow for the sale of the Rotunda Property; $20,000 for the additional proceeds received from the post-closing rent escrow for the sale of the Westridge Square Property; $10,000 for the additional proceeds received from the post-closing rent escrow for the sale of the Damascus Property; $127,500 for refinancing of the loan on the Westwood Hills property; and $21,000 for the modification and extension of the loan on the Westwood Plaza property. Fees incurred during Fiscal 2022 related to commissions to Hekemian & Co. for the following: $4,777,000 for the sale of the Rotunda Property; $917,000 for the sale of the Damascus Property; $525,000 for the sale of the Westridge Square Property; $94,000 for the refinancing of the loan on the Preakness Shopping Center; and $75,000 for the refinancing of the loan on the Boulders property. Fees incurred during Fiscal 2021 related to commissions to Hekemian & Co. for the following: $150,000 for the extension of the Grande Rotunda loan; $54,000 for the extension and modification of the WestFREIT, Corp. loan; $32,500 for the renewal of FREIT’s line of credit. The commissions related to the sale of the Rotunda Property, the Damascus Property and the Westridge Square Property were charged against the (loss) gain on sale of the Maryland Properties (see Note 2) in the accompanying consolidated statements of income for the years ended October 31, 2023 and 2022. The commissions for the refinancing of loans were deferred mortgage costs included in the unamortized debt issuance costs in the accompanying consolidated balance sheets as of October 31, 2023 and 2022. 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 Fiscal 2023, 2022 and 2021 was approximately $644,000, $831,000 and $469,000, respectively, for Robert S. Hekemian, Jr., $43,000, $40,000 and $30,000, respectively, for Allan Tubin and $76,000, $150,000 and $57,000, respectively, for David Hekemian. (See Note 11 to FREIT’s consolidated financial statements). Such costs are included within operating expenses on the accompanying consolidated statements of income. FREIT owns a 40% equity interest in Wayne PSC and H-TPKE, LLC (“H-TPKE”) owns a 60% equity interest in Wayne PSC. An aggregate of approximately 73% of the membership interests in H-TPKE is controlled by: Robert S. Hekemian, Jr., the Chief Executive Officer, President and a Director of FREIT and a shareholder and officer of Hekemian & Co.; David B. Hekemian, a Director of FREIT and a shareholder and officer of Hekemian & Co.; the late Robert S. Hekemian, the former Chairman and Chief Executive Officer and consultant to FREIT and a former shareholder and former officer of Hekemian & Co.; members of the families of Robert S. Hekemian, Jr., David B. Hekemian and the late Robert S. Hekemian; and other employees of Hekemian & Co. On March 10, 2022, the equity owners in Wayne PSC, H-TPKE and FREIT, each entered into a grid promissory note for funding Wayne PSC up to $600,000 and $400,000, respectively, based on each owner’s respective pro-rata share of Wayne PSC. During May 2022, Wayne PSC required funding by each of the owners totaling $500,000, with each owner contributing its respective pro-rata share of Wayne PSC. As such, H-TPKE funded $300,000 and FREIT funded $200,000. Wayne PSC repaid these loans in full (including accrued interest) to each of the equity owners from the net proceeds received from the refinancing of the loan on the Preakness Shopping Center in July 2022 (See Note 5). |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2023 | |
Income Taxes [Abstract] | |
Income taxes | Note 9 - Income taxes: FREIT has elected to be treated as a REIT for federal income tax purposes. There was no taxable income for the fiscal years ended October 31, 2023 and 2022. FREIT has distributed 100% of its capital gain from the sale of the Maryland Properties to its stockholders as dividends for the fiscal year ended October 31, 2022. FREIT distributed 92.4% of its ordinary taxable income to its stockholders as dividends for the fiscal year ended October 31, 2021. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income and such gains was recorded in FREIT’s consolidated financial statements for the fiscal years ended October 31, 2023, 2022 and 2021. As of October 31, 2023, 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. |
Equity Incentive Plan
Equity Incentive Plan | 12 Months Ended |
Oct. 31, 2023 | |
Equity Incentive Plan [Abstract] | |
Equity incentive plan | Note 10 - Equity Incentive Plan: On September 10, 1998, the Board approved FREIT's Equity Incentive Plan (the "Plan") which was ratified by FREIT's stockholders on April 7, 1999, whereby up to 920,000 of FREIT's shares (adjusted for stock splits) may be granted to key personnel in the form of stock options, restricted share awards and other share-based awards. In connection therewith, the Board approved an increase of 920,000 shares in FREIT's number of authorized shares. Key personnel eligible for these awards include directors, executive officers and other persons or entities including, without limitation, employees, consultants and employees of consultants, who are in a position to make significant contributions to the success of FREIT. Under the Plan, the exercise price of all options will be the fair market value of the shares on the date of grant. The consideration to be paid for restricted share and other share-based awards shall be determined by the Board, with the amount not to exceed the fair market value of the shares on the date of grant. The maximum term of any award granted may not exceed ten years. The Board will determine the actual terms of each award. On April 4, 2007, FREIT stockholders approved amendments to the Plan as follows: (a) reserving an additional 300,000 shares for issuance under the Plan; and (b) extending the term of the Plan until September 10, 2018. On April 5, 2018, FREIT stockholders approved amendments to the Plan to (a) increase the number of shares reserved for issuance thereunder by an additional 300,000 shares and (b) further extended the term of the Plan from September 10, 2018 to September 10, 2028. 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 of Common Stock, $0.01 par value, (the “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 October 31, 2023, 433,030 shares are available for issuance under the Plan. There was no impact to the Plan or options previously granted as a result of the Reincorporation of FREIT with and into FREIT as discussed in Note 1. The following table summarizes stock option activity for Fiscal 2023, 2022 and 2021: Year Ended October 31, Year Ended October 31, Year Ended October 31, 2023 2022 2021 No. of Options Weighted Average No. of Options Weighted Average No. of Options Weighted Average Outstanding Exercise Price Outstanding Exercise Price Outstanding Exercise Price Options outstanding at beginning of year 126,140 $ 10.64 310,740 $ 18.35 310,740 $ 18.35 Options granted during year — — — — — — Options forfeited/cancelled during year — — — — — — Options exercised during year (117,700 ) (10.74 ) (184,600 ) (10.99 ) — — Options outstanding at end of year 8,440 $ 9.21 126,140 $ 10.64 310,740 $ 18.35 Options vested and expected to vest 8,290 124,850 309,450 Options exercisable at end of year 7,440 116,540 292,540 On August 4, 2022, in connection with the Board’s approval of the special, extraordinary, non-recurring cash distribution (“Extraordinary Distribution”), the Compensation Committee of the Board recommended and the Board approved that (i) the option exercise price of options outstanding under the Plan be adjusted, by reason of the Extraordinary Distribution, in accordance with the terms of the Plan; and (ii) the exercise price of options outstanding under the Plan should be reduced by an amount equal to the excess, if any, of (x) the average of the closing price of FREIT’s shares, as reported by Yahoo Finance, for each business day during the period of five (5) business days prior to the ex-dividend date relating to the Extraordinary Distribution (August 31, 2022), over (y) the average of the closing price of FREIT’s shares, as reported by Yahoo Finance, for each business day during the period of five (5) business days following the ex-dividend date relating to the Extraordinary Distribution. (See Note 2 for additional details on the sale of the Maryland Properties.) On September 9, 2022, the Board approved a reduction of $7.50 per share in exercise price for the 310,740 options then outstanding under the Plan. As a result of this modification of the exercise price for stock options outstanding under the Plan, the Company revalued its stock options in accordance with ASC 718 and recorded an incremental stock compensation expense of approximately $1,174,000 in the fourth quarter of Fiscal 2022. For Fiscal 2023, 2022 and 2021, compensation expense related to stock options vested amounted to approximately $11,000, $1,192,000 and $42,000, respectively. At October 31, 2023, there was approximately $1,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately 0.3 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at October 31, 2023 was approximately $54,000 and $47,000, respectively. In Fiscal 2023 and 2022, 117,700 and 184,600, respectively, options were exercised for an aggregate amount of approximately $1.3 million and $2 million, respectively. |
Deferred fee plan
Deferred fee plan | 12 Months Ended |
Oct. 31, 2023 | |
Deferred fee plan [Abstract] | |
Deferred fee plan | Note 11 - Deferred fee plan: During Fiscal 2001, the Board adopted a deferred fee plan for its officers and directors, which was amended and restated in Fiscal 2009 to make the deferred fee plan compliant with Section 409A of the Internal Revenue Code and the regulations promulgated thereunder (the "Deferred Fee Plan"). Pursuant to the Deferred Fee Plan, any officer or director might elect to defer receipt of any fees that would be due to them. These fees included annual retainer and meeting attendance fees as determined by the Board. Prior to the amendments to the Deferred Fee Plan that went into effect November 1, 2014 (described in the following paragraph), amounts deferred under the Deferred Fee Plan accrued interest at a rate of 9% per annum, compounded quarterly. Any such deferred fee was to be paid to the participants at the later of: (i) the retirement age specified in the deferral election; (ii) actual retirement; or (iii) upon cessation of a participant's duties as an officer or director. On September 4, 2014, the Board approved amendments, effective November 1, 2014, to the FREIT Deferred Fee Plan for its executive officers and directors, one of which provided for the issuance of share units payable in FREIT shares in respect of (i) deferred amounts of all director fees on a prospective basis; (ii) interest on director fees deferred prior to November 1, 2014 (payable at a floating rate, adjusted quarterly, based on the average 10-year Treasury Bond interest rate plus 150 basis points); and (iii) dividends payable in respect of share units allocated to participants in the Deferred Fee Plan as a result of deferrals described above. The number of share units credited to a participant’s account was determined by the closing price of FREIT shares on the date as set forth in the Deferred Fee Plan. The Deferred Fee Plan, as amended, provided that cumulative fees together with accrued interest deferred as of November 1, 2014 would be paid in a lump sum or in annual installments over a period not to exceed 10 years, at the election of the participant. 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”), must be 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 November 3, 2022, the Board determined that the Deferred Fee Plan Termination Payment shall be made to the participants in the Deferred Fee Plan on January 20, 2023. The Deferred Fee Plan Termination Payment includes the amount deferred and earned under the Deferred Fee Plan during fiscal 2023 as described in the two following paragraphs. As of October 31, 2022, the total payments related to the cash accounts of all participants was 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 and was included in the “Deferred director compensation payable” in the consolidated balance sheet as of October 31, 2022. On January 20, 2023, in accordance with the Deferred Fee Plan Termination Payment, this amount 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. For the years ended October 31, 2023 and 2022, the aggregate amounts of deferred director fees together with related interest and dividends were approximately $26,500 and $1,861,000, respectively, which have been paid through the issuance of 1,630 and 100,655, vested FREIT share units, respectively, based on the closing price of FREIT shares on the dates as set forth in the Deferred Fee Plan. For the years ended October 31, 2023, 2022 and 2021, FREIT has charged as expense approximately $26,500, $120,000 and $446,000, respectively, representing deferred director fees and interest, and the balance of approximately $0, $1,741,000 and $42,000, respectively, representing dividends payable in respect of share units allocated to Plan participants, has been charged to equity. |
Dividends and Earnings Per Shar
Dividends and Earnings Per Share | 12 Months Ended |
Oct. 31, 2023 | |
Dividends and Earnings Per Share [Abstract] | |
Dividends and earnings per share | Note 12 - Dividends and earnings per share: FREIT declared dividends of approximately $3,520,000 ($0.45 per share), $65,163,000 ($9.20 per share) and $1,755,000 ($0.25 per share), respectively, to stockholders of record during Fiscal 2023, 2022 and 2021. Basic earnings per share is calculated by dividing net income attributable to common equity (numerator) by the weighted average number of shares and vested share units (See Note 11) 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 Fiscal 2023, the outstanding stock options increased the average dilutive shares outstanding by approximately 6,000 shares with no impact on earnings per share. For Fiscal 2022, the outstanding stock options increased the average dilutive shares outstanding by approximately 77,000 shares with an impact of approximately $0.07 on earnings per share. For Fiscal 2021, the outstanding stock options increased the average dilutive shares outstanding by approximately 3,000 shares with no impact on earnings per share. There were no anti-dilutive shares for the years ended October 31, 2023 and 2022. There were approximately 268,000 anti-dilutive shares for the year ended October 31, 2021. Anti-dilutive shares consist of out-of-the money stock options under the Equity Incentive Plan (see Note 10). |
Segment Information
Segment Information | 12 Months Ended |
Oct. 31, 2023 | |
Segment Information [Abstract] | |
Segment information | Note 13 - Segment information: ASC 280-10, " Disclosures about Segments of an Enterprise and Related Information The commercial segment is comprised of five (5) properties, excluding the Rotunda Property, the Westridge Square Property and the Damascus Property sold in Fiscal 2022 (see Note 2), during the fiscal years ended October 31, 2023 and 2022. The commercial segment is comprised of eight (8) properties during the fiscal year ended October 31, 2021. The residential segment is comprised of six (6) properties, excluding the Icon at the Rotunda Property sold in Fiscal 2022 (see Note 2), during the fiscal years ended October 31, 2023 and 2022. The residential segment is comprised of seven (7) properties during the fiscal year ended October 31, 2021. The accounting policies of the segments are the same as those described in Note 1. 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 consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2023. Asset information is not reported since FREIT does not use this measure to assess performance. Years Ended October 31, 2023 2022 2021 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 8,789 $ 10,626 $ 23,547 Residential 19,655 20,627 26,974 Total real estate rental revenue 28,444 31,253 50,521 Real estate operating expenses: Commercial 5,080 6,427 11,223 Residential 8,674 8,854 11,071 Total real estate operating expenses 13,754 15,281 22,294 Net operating income: Commercial 3,709 4,199 12,324 Residential 10,981 11,773 15,903 Total net operating income $ 14,690 $ 15,972 $ 28,227 Recurring capital improvements - residential $ (532 ) $ (1,034 ) $ (625 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 14,690 $ 15,972 $ 28,227 Deferred rents - straight lining (100 ) 18 (230 ) Investment income 1,013 358 116 Net (loss) gain on sale of Maryland properties (1,003 ) 68,771 — Net realized gain on Wayne PSC interest rate swap termination — 1,415 — Loss on investment in tenancy-in-common (271 ) (228 ) (295 ) General and administrative expenses (4,243 ) (5,003 ) (5,195 ) Depreciation (2,944 ) (3,995 ) (9,300 ) Financing costs (7,717 ) (8,064 ) (12,276 ) Net (loss) income (575 ) 69,244 1,047 Net loss (income) attributable to noncontrolling interests in subsidiaries 1,335 (23,252 ) (120 ) Net income attributable to common equity $ 760 $ 45,992 $ 927 |
Termination of Purchase and Sal
Termination of Purchase and Sale Agreement | 12 Months Ended |
Oct. 31, 2023 | |
Termination of Purchase and Sale Agreement [Abstract] | |
Termination of Purchase and Sale Agreement | Note 14 - Termination of Purchase and Sale Agreement: On January 14, 2020, FREIT and certain of its affiliates (collectively, the “Sellers” or “Defendant”), entered into a Purchase and Sale Agreement (as subsequently amended, the “Purchase and Sale Agreement”) with Sinatra Properties LLC (the “Purchaser”, “Sinatra” or “Plaintiff”), which provided for the sale by the Sellers to the Purchaser of 100% of the Sellers’ ownership interests in six real properties held by the Sellers in exchange for the purchase price described therein, subject to the terms and conditions of the Purchase and Sale Agreement. On April 30, 2020, the Sellers delivered written notice to the Purchaser of the Sellers’ termination of the Purchase and Sale Agreement in accordance with its terms due to the occurrence of a “Purchaser Default” thereunder, based on the Purchaser’s failure to perform its obligations under the Purchase and Sale Agreement and close the transactions contemplated therein. Upon the execution of the Purchase and Sale Agreement, the Purchaser delivered into escrow a deposit in the amount of $15 million (the “Deposit”), in the form of an unconditional, irrevocable letter of credit in such amount (the “Letter of Credit”). The Purchase and Sale Agreement provides that the Sellers’ exclusive remedy, in the event of a “Purchaser Default” and the termination of the Purchase and Sale Agreement, is the forfeiture of the Deposit to the Sellers as liquidated damages. Accordingly, contemporaneously with the Sellers’ delivery of the termination notice to the Purchaser, the Sellers delivered written notice to the escrow agent requesting that the escrow agent release the Letter of Credit from escrow and deliver same to the Sellers. On May 6, 2020, the Purchaser filed a complaint (the “Complaint”) against the Sellers in the Superior Court of New Jersey, Monmouth County (“Court”), in which, among other things, the Purchaser alleges breach of contract and breach of the covenant of good faith and fair dealing against the Sellers in connection with the Sellers’ termination of the Purchase and Sale Agreement. The Purchaser sought (a) a judgment of specific performance compelling the Sellers to convey the properties under the Purchase and Sale Agreement to the Purchaser; (b) declaratory judgment from the court that (i) the Purchase and Sale Agreement is not terminated, (ii) the Purchaser is not in default under the Purchase and Sale Agreement, and (iii) the Sellers are in default under the Purchase and Sale Agreement, subject to a right to cure; (c) an order for injunctive relief compelling the Sellers to perform the Purchase and Sale Agreement; (d) in the event that the court does not order specific performance, a judgment directing that the Purchaser’s $15 million deposit under the Purchase and Sale Agreement be returned to the Purchaser, and compensatory, consequential and incidental damages in an amount to be determined at trial; and (e) attorneys’ fees and costs. The Purchaser also filed lis pendens with respect to each of the six properties that were subject to the Purchase and Sale Agreement. The lis pendens provides notice to the public of the Complaint. Pending the resolution of this litigation, the filing of the lis pendens will adversely affect the future sale or financing of those properties. On June 17, 2020, the Sellers filed their answer, separate defenses, and counterclaims (the “Answer”) in response to the Complaint, in which, among other things, the Sellers (a) deny the Purchaser’s claim that the Sellers’ termination of the Purchase and Sale Agreement was wrongful, and assert that there was no contractual basis in the Purchase and Sale Agreement to relieve the Purchaser from its obligation to perform thereunder, or to defer or postpone the Purchaser’s obligation to perform, (b) assert certain defenses to the allegations set forth in the Complaint without admitting any liability, and (c) request relief from the Court in the form of (i) judgment in the Sellers’ favor dismissing all of the Purchaser’s claims against them with prejudice and denying all of the Purchaser’s requests for relief, (ii) reasonable attorneys’ fees and costs, and (iii) such other and further relief as the Court deems just. In addition, the Answer asserts counterclaims by the Sellers against Sinatra for breach of contract due to Sinatra’s failure to close the Purchase and Sale Agreement in accordance with its terms, and the Sellers seek a declaratory judgment from the Court that the Sellers properly terminated the Purchase and Sale Agreement in accordance with its terms due to Sinatra’s default and an order from the Court that Sinatra authorize the escrow agent to release the $15 million deposit under the Purchase and Sale Agreement to the Sellers. On April 28, 2021, the Sellers amended the Answer to include (1) counterclaims against Sinatra for breach of contract due to Sinatra’s breach of confidentiality and non-disclosure obligations contained in the Purchase and Sale Agreement, and (2) third-party claims against Sinatra’s affiliate Kushner Realty Acquisition LLC for breach of its confidentiality and non-disclosure obligations contained in the non-disclosure agreement entered into by the parties in connection with the negotiation of the transactions contemplated by the Purchase and Sale Agreement, based on the conduct of Sinatra and its affiliates after the Sellers terminated the Purchase and Sale Agreement. In connection with these counterclaims and third-party claims, the Answer sought the following relief from the Court: (a) liquidated damages in the amount of $15 million, as provided in the Purchase and Sale Agreement; (b) in the alternative to the liquidated damages provided for in the Purchase and Sale Agreement, money damages in an amount to be determined at trial; (c) interest, attorneys’ fees and costs associated with the defense of the Purchaser’s claims and the prosecution of the Sellers’ counterclaims against the Purchaser, as provided for in the Purchase and Sale Agreement; (d) judgment declaring that the Sellers properly terminated the Purchase and Sale Agreement due to the Purchaser’s default thereunder; (e) judgment declaring that the Purchaser must authorize the escrow agent to release the $15 million deposit to the Sellers; (f) an order enjoining the Purchaser and its affiliates from engaging in further breaches of the Purchase and Sale Agreement and non-disclosure agreement, and compelling the Purchaser and its affiliates to return the Sellers’ confidential information and materials and to use best efforts to ensure the return of the Sellers’ confidential information and materials from third parties to whom the Purchaser and/or its affiliates provided such materials; and (g) such other relief as the Court deems just and equitable. In the Answer filed by the Purchaser on September 15, 2020 and the Answer and Affirmative Defenses filed by the Purchaser and Kushner Realty Acquisition LLC on June 7, 2021, the Purchaser and Kushner Realty Acquisition LLC have generally denied the claims, counterclaims and allegations contained in the Sellers’ original and amended Answer, and asserted affirmative defenses to the Sellers’ claims and counterclaims. Each of the Sellers and the Purchaser filed motions for summary judgment (“Summary Judgment Motions”) with the Court seeking, among other things, the dismissal of the other parties’ claims. On February 4, 2022, the Court entered an Order (the “February 4 Order”) with respect to the Summary Judgment Motions which provides as follows: (1) The Court finds that the Plaintiff’s have breached the subject contract and the Court dismisses all claims for relief filed by the Plaintiffs in this suit. The Court dismissed the Complaint and dismisses the Lis Pendens. (2) The Court finds that the liquidated damage provision of the contract is not enforceable and the Court Orders that the $15 million held in escrow be returned to the Plaintiff. (3) The Court dismisses the Counterclaims and Third Party Complaint. All pleadings are dismissed. On May 31, 2022, Sinatra filed a Motion for Reconsideration with the Court, requesting that the Court reconsider its February 4, 2022 Order and, among other things, (a) grant Sinatra’s motion for summary judgment, and (b) reverse the Court’s findings that (1) Sinatra breached the Purchase and Sale Agreement, (2) the Sellers did not breach the Purchase and Sale Agreement and (3) the Court’s dismissal of the Complaint and Lis Pendens. On July 8, 2022, the Court denied Sinatra’s Motion for Reconsideration. Following the February 4 Order, the Sellers and the Purchaser each filed a motion for an award of attorney’s fees and costs pursuant to the applicable provisions of the Purchase and Sale Agreement. On December 8, 2022 the Court entered an Order awarding Sellers $3,420,422.88 in attorneys’ fees and denying the Plaintiff’s request for attorneys’ fees (the “December 8 Order”). Upon entering the December 8 Order, the Court had adjudicated all unresolved issues in the action. On December 8, 2022, the Sellers filed a Notice of Appeal, appealing from that portion of the February 4 Order which declined to enforce the liquidated damages provision in the Purchase and Sale Agreement. As a result of such appeal by the Sellers, the liquidated damage amount of $15 million remains in escrow and has not been returned to Sinatra. On December 22, 2022, the Purchaser filed a Notice of Cross Appeal appealing from all determinations by the Court adverse to the Purchaser, including (i) that portion of the February 4 Order holding that the Purchaser breached the contract; (ii) the denial of the Purchaser’s motion for reconsideration of the February 4 Order; and (iii) the December 8 Order awarding the Sellers $3,420,422.88 in attorneys’ fees and denying the Purchaser’s request for attorneys’ fees. The Sellers continue to believe that the allegations set forth in the Complaint filed by Sinatra and in the Answer to Counterclaims and Third-Party Complaint and Affirmative Defenses filed by Sinatra and Kushner Realty Acquisition LLC, are without merit. On July 19, 2023, the Sellers filed a complaint (the “Complaint”) in the Superior Court of New Jersey, Monmouth County, Chancery Division (the “Court”), against Kushner Companies LLC (“Kushner”) seeking to collect on a $3.42 million judgment entered by the Court in favor of the Sellers against Sinatra, a wholly owned subsidiary of defendant, Kushner. The Complaint alleges that Kushner used Sinatra as a shell to evade its debts and obligations, and asks the Court to pierce the corporate veil and hold Kushner liable for Sinatra’s debts and obligations under the Purchase Agreement, including the attorneys’ fees awarded to the Sellers, all costs incurred by the Sellers to enforce the Judgment and any additional fees awarded to the Sellers in connection with the pending appeal. On September 22, 2023, Kushner filed a motion with the Court seeking to dismiss the Complaint in lieu of an Answer to the Complaint. The Sellers will vigorously oppose Kushner’s motion to dismiss. As previously disclosed, FREIT has incurred substantial costs in legal fees and related costs through October 31, 2023 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 October 31, 2023, 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 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 $966,000, $1,170,000 and $2,282,000 for the years ended October 31, 2023, 2022 and 2021, respectively, and are included in operating expenses on the consolidated statements of income. |
Covid-19 Pandemic
Covid-19 Pandemic | 12 Months Ended |
Oct. 31, 2023 | |
Covid-19 Pandemic [Abstract] | |
COVID-19 pandemic | Note 15 – COVID-19 pandemic: The international spread of COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. Beginning in March 2020 and throughout most of 2020, many states in the U.S., including New Jersey, New York and Maryland, where our properties were located, implemented stay-at-home and shut down orders for all "non-essential" business and activity in an aggressive effort to mitigate the spread of COVID-19. In Fiscal 2023, our retail properties stabilized from the impact of the COVID-19 pandemic. For the fiscal years ended October 31, 2022 and 2021, rental revenue deemed uncollectible of approximately $0.6 million and $1.3 million (with a consolidated impact to FREIT of approximately $0.3 million and $0.8 million), respectively, was classified as a reduction in rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. During the period beginning March 2020 through October 31, 2021, FREIT applied, net of amounts subsequently paid back by tenants, an aggregate of approximately $397,000 of security deposits from its commercial tenants to outstanding receivables due. On a case by case basis, FREIT offered some commercial tenants deferrals of rent over a specified time period totaling approximately $0 and $132,000 (with a consolidated impact to FREIT of approximately $0 and $81,000) and rent abatements totaling approximately $9,000 and $239,000 (with a consolidated impact to FREIT of approximately $9,000 and $158,000) for the fiscal years ended October 31, 2022 and 2021, respectively. As a result of the negative impact of the COVID-19 pandemic at our commercial properties, in Fiscal 2020 we were granted debt payment relief from certain of our lenders on such properties in the form of deferral of principal and/or interest payments for a three-month period, resulting in total deferred payments of approximately $1,013,000, which will become due at the maturity of the loans. As of October 31, 2023 and 2022, approximately $623,000 and $623,000, respectively, of this amount has been repaid, there will be no further deferrals of principal and/or interest payments on these loans and the balance due has been included in mortgages payable on the consolidated balance sheets as of October 31, 2023 and 2022. (See Note 5) |
Stockholder Rights Plan
Stockholder Rights Plan | 12 Months Ended |
Oct. 31, 2023 | |
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”). |
Kmart Lease
Kmart Lease | 12 Months Ended |
Oct. 31, 2023 | |
K-mart Lease [Abstract] | |
Kmart Lease | Note 17 – Kmart Lease: 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 current term of the lease for Kmart expires on October 31, 2027 with two 5-year renewal options remaining. The lease agreement provides that base rent payments are fixed at $4.00 per square foot ($336,720 annually) and additional rent for common area maintenance and insurance costs are 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Oct. 31, 2023 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Note 18- Selected quarterly financial data (unaudited): The following summary represents the results of operations for each quarter for the years ended October 31, 2023 and 2022 (in thousands, except per share amounts): 2023: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 6,979 $ 6,916 $ 7,296 $ 7,153 $ 28,344 Expenses, net 6,933 7,202 8,142 6,642 28,919 Net income (loss) 46 (286 ) (846 ) 511 (575 ) Net loss attributable to noncontrolling interests in subsidiaries 373 383 434 145 1,335 Net income (loss) attributable to common equity $ 419 $ 97 $ (412 ) $ 656 $ 760 Earnings (Loss) per share - basic and diluted $ 0.06 $ 0.01 $ (0.06 ) $ 0.09 $ 0.10 Dividends declared per share $ 0.05 $ 0.05 $ 0.30 $ 0.05 $ 0.45 2022: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 10,649 $ 6,615 $ 6,959 $ 7,048 $ 31,271 Expenses, net (58,504 )(a) 7,616 (b) 5,145 (c) 7,770 (d) (37,973 ) Net income (loss) 69,153 (1,001 ) 1,814 (722 ) 69,244 Net (income) loss attributable to noncontrolling interests in subsidiaries (23,376 )(a) 649 (b) (693 )(c) 168 (d) (23,252 ) Net income (loss) attributable to common equity $ 45,777 $ (352 ) $ 1,121 $ (554 ) $ 45,992 Earnings (Loss) per share - basic $ 6.51 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.52 Earnings (Loss) per share - diluted $ 6.45 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.45 Dividends declared per share $ 0.10 $ 0.10 $ — $ 9.00 $ 9.20 (a) Includes $70 million gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $46.3 million ($6.58 per share basic and $6.52 per share diluted). (b) Includes $1.2 million reduction in gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $0.7 million ($0.10 per share basic and diluted). (c) Includes $1.4 million realized gain on Wayne PSC interest rate swap termination with a consolidated impact to FREIT of approximately $0.6 million ($0.08 per share basic and diluted). (d) Includes stock compensation expense of approximately $1.2 million for the incremental compensation cost attributed to the revaluation of the stock options modified on September 9, 2022 ($0.17 per share basic and diluted). |
SCHEDULE III _ REAL ESTATE AND
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Oct. 31, 2023 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION | Column A Column B Column C Column D Column E Column F Column G Column H Column I Initial Cost Costs Capitalized Gross Amount at Which to Company Subsequent to Acquisition Carried at Close of Period Life on Buildings Buildings Which Encum- and Improve- Carrying and Accumulated Date of Date Depreciation Description brances Land Improvements Land ments Costs Land Improvements Total (1) Depreciation Construction Acquired is Computed Residential Properties: Steuben Arms, River Edge, NJ $ 9,022 $ 364 $ 1,773 $ — $ 1,805 $ 364 $ 3,578 $ 3,942 $ 3,081 1966 1975 7-40 years Berdan Court, Wayne, NJ 28,815 250 2,206 — 5,310 250 7,516 7,766 6,222 1964 1965 7-40 years Westwood Hills, Westwood, NJ 25,450 3,849 11,546 — 3,132 3,849 14,678 18,527 10,950 1965-70 1994 7-39 years Boulders - Rockaway, NJ 7,500 1,632 — 3,386 16,313 5,018 16,313 21,331 7,493 2005-2006 1963/1964 7-40 years Regency Club - Middletown, NY 14,254 2,833 17,792 — 1,266 2,833 19,058 21,891 4,719 2003 2014 7-40 years Station Place - Red Bank, NJ 11,521 8,793 10,757 — 28 8,793 10,785 19,578 1,596 2015 2017 7-40 years Commercial Properties: Franklin Crossing, Franklin Lakes, NJ — 29 — 3,382 7,611 3,411 7,611 11,022 4,954 1963/75/97 1966 5-39.5 years Glen Rock, NJ — 12 36 — 164 12 200 212 169 1940 1962 5-25 years Westwood Plaza, Westwood, NJ 16,617 6,889 6,416 — 2,581 6,889 8,997 15,886 8,631 1981 1988 5-31.5 years Preakness S/C, Wayne, NJ 25,000 9,280 24,217 — 2,688 9,280 26,905 36,185 14,529 1955/89/00 2002 5-39.5 years Land Leased: Rockaway, NJ — 114 — — — 114 — 114 — 1963/1964 Vacant Land: ` Franklin Lakes, NJ — 224 — (156 ) — 68 — 68 — 1966/93 Wayne, NJ — 286 — — — 286 — 286 — 2002 Rockaway, NJ — 51 — — — 51 — 51 — 1963/1964 $ 138,179 $ 34,606 $ 74,743 $ 6,612 $ 40,898 $ — $ 41,218 $ 115,641 $ 156,859 $ 62,344 (1) Total cost for each property is the same for federal income tax purposes, with the exception of the Regency Club and Station Place whose cost for federal income tax purposes is approximately $13.8 million and $4.2 million, respectively. Reconciliation of Real Estate and Accumulated Depreciation: 2023 2022 2021 Real estate: Balance, Beginning of year $ 156,223 $ 386,920 $ 385,853 Additions - Buildings and improvements 896 1,474 1,883 Disposals - Buildings and improvements (260 ) (232 ) (816 ) Sale of property — (231,939 ) — Balance, end of year $ 156,859 $ 156,223 $ 386,920 Accumulated depreciation: Balance, Beginning of year $ 59,660 $ 115,621 $ 107,137 Additions - Charged to operating expenses 2,944 3,995 9,300 Disposals - Buildings and improvements (260 ) (232 ) (816 ) Sale of property — (59,724 ) — Balance, end of year $ 62,344 $ 59,660 $ 115,621 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Oct. 31, 2023 | |
Organization and Significant Accounting Policies [Abstract] | |
Organization | Organization: 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 engaged in owning residential and commercial income producing properties located in New Jersey and New York. FREIT has elected to be taxed as a Real Estate Investment Trust under the provisions of Sections 856-860 of the Internal Revenue Code, as amended. Accordingly, FREIT does not pay federal income tax on income whenever income distributed to stockholders is equal to at least 90% of real estate investment trust taxable income. Further, FREIT pays no federal income tax on capital gains distributed to stockholders. FREIT is subject to federal income tax on undistributed taxable income and capital gains. FREIT may make an annual election under Section 858 of the Internal Revenue Code to apply part of the regular dividends paid in each respective subsequent year as a distribution for the immediately preceding year. |
Recently issued accounting standards | 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 Reference Rate Reform (ASC 848): Scope |
Principles of consolidation | Principles of consolidation: The consolidated financial statements include the accounts of FREIT and the following subsidiaries in which FREIT has a controlling financial interest, including two LLCs in which FREIT is the managing member with a 40% ownership interest: Subsidiary Owning % Year Westwood Hills, LLC FREIT 40% 1994 Wayne PSC, LLC FREIT 40% 2002 Damascus Centre, LLC FREIT 70% 2003 Grande Rotunda, LLC FREIT 60% 2005 WestFREIT, Corp FREIT 100% 2007 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 The consolidated financial statements include 100% of each subsidiary’s assets, liabilities, operations and cash flows, with the interests not owned by FREIT reflected as "noncontrolling interests in subsidiaries”. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Investments in U.S. Treasury securities | 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. Accordingly, FREIT consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, liabilities, operations and cash flows with the interest not owned by FREIT reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT ultimately acquired a 65% undivided interest in the Pierre Towers property, which was formerly owned by S&A. Based on the guidance of Accounting Standards Codification (“ASC”) 810, “Consolidation” |
Use of estimates | Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents: Financial instruments that potentially subject FREIT to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits. |
Investments in U.S. Treasury securities | Investments in U.S. Treasury securities: FREIT invests in short-term Treasury bills and Treasury notes (collectively “Treasury securities”) issued by the U.S. Treasury Department and backed by the U.S. Government. Treasury bills yield no interest, are issued at a discount to the redemption price and pay interest at maturity based on the discount to the redemption price. Treasury notes are similar to Treasury bills except they generally have a longer maturity (between two and ten years) and pay interest semi-annually. We classified investments in the U.S. Treasury securities with maturities greater than 90 days as available-for-sale investments. We use quoted market prices to determine the fair value of these investments. (See Note 6) |
Real estate development costs | Real estate development costs: It is FREIT’s policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT ceases capitalization of these costs when the project or portion thereof becomes operational, or when construction has been postponed. In the event of a postponement, capitalization of these costs will recommence once construction on the project resumes. |
Depreciation | Depreciation: Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. |
Impairment of long-lived assets | Impairment of long-lived assets: Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. There were no impairments of long-lived assets for the fiscal years ended October 31, 2023, 2022 and 2021. |
Deferred charges | Deferred charges: Deferred charges consist primarily of leasing commissions, which are amortized on the straight-line method over the terms of the applicable leases. |
Debt issuance costs | Debt issuance costs: Debt issuance costs are amortized on the straight-line method (which approximates the effective interest method) by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $509,000, $971,000 and $1,109,000 in Fiscal 2023, 2022 and 2021, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. |
Revenue recognition | Revenue recognition: Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT and commercial tenants generally provide for additional rentals and reimbursements for their proportionate share of real estate taxes, insurance, common area maintenance charges and may include percentage of tenants' sales in excess of specified volumes. Percentage rents are generally included in income when reported to FREIT when earned, or ratably over the appropriate period. |
Interest rate cap and swap contracts | Interest rate cap and swap contracts: |
Advertising | Advertising: FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $287,000, $234,000 and $421,000 in Fiscal 2023, 2022 and 2021, respectively. |
Stock-based compensation | Stock-based compensation: FREIT has a stock-based compensation plan that was approved by FREIT’s Board of Directors (the “Board”), and ratified by FREIT’s stockholders. Stock based awards are accounted for based on their grant-date fair value. (See Note 10) |
Correction of previously issued quarterly financial statements | Correction of previously issued “unaudited” quarterly financial statements: FREIT is adjusting its previously issued “unaudited” quarterly financial statements for the correction of a material error with respect to the previous classification of investments in U.S. Treasury securities with maturities greater than 90 days as cash equivalents for the year ended October 31, 2023. FREIT identified that for each of the prior quarterly reporting periods the Company had incorrectly included investments in U.S. Treasury securities with maturities greater than 90 days in both the line item “Cash and cash equivalents” on the condensed consolidated balance sheet and within the condensed consolidated statement of cash flows. In accordance with U.S. GAAP, any investment with a maturity greater than 90 days is not classified as a cash equivalent. As such, in accordance with Accounting Standards Codification (“ASC”) Topic 320 , “Investments – Debt Securities The Company evaluated the effects of this error on its previously issued consolidated financial statements as of and for the years ended October 31, 2022 and 2021 and the previously issued condensed consolidated financial statements for the quarterly reporting periods within the year ended October 31, 2023 in accordance with the guidance in ASC Topic 250, “ Accounting Changes and Error Corrections Assessing Materiality Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements Condensed Consolidated Balance Sheets: (In thousands) January 31, 2023 April 30, 2023 July 31, 2023 As Reported As Restated As Reported As Restated As Reported As Restated Cash and cash equivalents $ 37,187 $ 31,514 $ 35,717 $ 18,633 $ 38,134 $ 17,757 Investments in U.S. Treasury securities available-for-sale $ — $ 5,712 $ — $ 17,246 $ — $ 20,526 Accounts receivable, net $ 621 $ 582 $ 638 $ 476 $ 610 $ 461 Other Assets $ 126,721 $ 126,721 $ 126,345 $ 126,345 $ 122,104 $ 122,104 Total Assets $ 164,529 $ 164,529 $ 162,700 $ 162,700 $ 160,848 $ 160,848 Condensed Consolidated Statements of Cash Flows: (In thousands) January 31, 2023 April 30, 2023 July 31, 2023 As Reported As Restated As Reported As Restated As Reported As Restated Operating activities: Accreted interest on investment in U.S. Treasury securities $ — $ (39 ) $ — $ (162 ) $ — $ (154 ) Change in accounts receivable, prepaid expenses & other assets $ 97 $ 136 $ (20 ) $ 142 $ 248 $ 397 Net cash (used in) provided by operating activities $ (862 ) $ (862 ) $ 308 $ 308 $ 1,883 $ 1,878 Investing activities: Purchase of U.S. Treasury securities $ — $ (5,673 ) $ — $ (17,084 ) $ — $ (31,752 ) Proceeds from maturities of U.S. Treasury securities $ — $ — $ — $ — $ — $ 11,380 Net cash used in investing activities $ (354 ) $ (6,027 ) $ (1,432 ) $ (18,516 ) $ (1,748 ) $ (22,120 ) Cash, cash equivalents and restricted cash $ 45,519 $ 39,846 $ 44,351 $ 27,267 $ 43,389 $ 23,012 |
Organization and Significant _2
Organization and Significant Accounting Policies (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest | The consolidated financial statements include the accounts of FREIT and the following subsidiaries in which FREIT has a controlling financial interest, including two LLCs in which FREIT is the managing member with a 40% ownership interest: Subsidiary Owning % Year Westwood Hills, LLC FREIT 40% 1994 Wayne PSC, LLC FREIT 40% 2002 Damascus Centre, LLC FREIT 70% 2003 Grande Rotunda, LLC FREIT 60% 2005 WestFREIT, Corp FREIT 100% 2007 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 |
Schedule of Condensed Consolidated Balance Sheets | Corrections made to each affected quarterly reporting period within the fiscal year ended October 31, 2023, are as follows: Condensed Consolidated Balance Sheets: (In thousands) January 31, 2023 April 30, 2023 July 31, 2023 As Reported As Restated As Reported As Restated As Reported As Restated Cash and cash equivalents $ 37,187 $ 31,514 $ 35,717 $ 18,633 $ 38,134 $ 17,757 Investments in U.S. Treasury securities available-for-sale $ — $ 5,712 $ — $ 17,246 $ — $ 20,526 Accounts receivable, net $ 621 $ 582 $ 638 $ 476 $ 610 $ 461 Other Assets $ 126,721 $ 126,721 $ 126,345 $ 126,345 $ 122,104 $ 122,104 Total Assets $ 164,529 $ 164,529 $ 162,700 $ 162,700 $ 160,848 $ 160,848 |
Schedule of Condensed Consolidated Statements of Cash Flows | Condensed Consolidated Statements of Cash Flows: (In thousands) January 31, 2023 April 30, 2023 July 31, 2023 As Reported As Restated As Reported As Restated As Reported As Restated Operating activities: Accreted interest on investment in U.S. Treasury securities $ — $ (39 ) $ — $ (162 ) $ — $ (154 ) Change in accounts receivable, prepaid expenses & other assets $ 97 $ 136 $ (20 ) $ 142 $ 248 $ 397 Net cash (used in) provided by operating activities $ (862 ) $ (862 ) $ 308 $ 308 $ 1,883 $ 1,878 Investing activities: Purchase of U.S. Treasury securities $ — $ (5,673 ) $ — $ (17,084 ) $ — $ (31,752 ) Proceeds from maturities of U.S. Treasury securities $ — $ — $ — $ — $ — $ 11,380 Net cash used in investing activities $ (354 ) $ (6,027 ) $ (1,432 ) $ (18,516 ) $ (1,748 ) $ (22,120 ) Cash, cash equivalents and restricted cash $ 45,519 $ 39,846 $ 44,351 $ 27,267 $ 43,389 $ 23,012 |
Investment in Tenancy-in-Comm_2
Investment in Tenancy-in-Common (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
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 October 31, 2023 and 2022, accounted for by the equity method: October 31, October 31, 2023 2022 (In Thousands of Dollars) Real estate, net $ 74,202 $ 76,042 Cash and cash equivalents 2,256 2,051 Tenants' security accounts 478 454 Receivables and other assets 455 583 Total assets $ 77,391 $ 79,130 Mortgages payable, net of unamortized debt issuance costs $ 48,516 $ 49,425 Accounts payable and accrued expenses 295 178 Tenants' security deposits 496 462 Deferred revenue 181 145 Equity 27,903 28,920 Total liabilities & equity $ 77,391 $ 79,130 FREIT's investment in TIC (65% interest) $ 18,137 $ 18,798 |
Schedule of Income Statement of Pierre Property | The following table summarizes the statements of operations of the Pierre Towers property for the fiscal years ended October 31, 2023, 2022 and 2021, accounted for by the equity method: Year Ended Year Ended Year Ended October 31, 2023 October 31, 2022 October 31, 2021 (In Thousands of Dollars) Revenues $ 8,278 $ 8,028 $ 7,627 Operating expenses 4,893 4,594 4,311 Depreciation 2,212 2,183 2,166 Operating income 1,173 1,251 1,150 Interest expense including amortization of deferred financing costs 1,590 1,601 1,604 Net loss $ (417 ) $ (350 ) $ (454 ) FREIT's loss on investment in TIC (65% interest) $ (271 ) $ (228 ) $ (295 ) |
Real Estate (Tables)
Real Estate (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Real Estate [Abstract] | |
Schedule of Real Estate and Equipment | Real estate consists of the following: Range of Estimated October 31, Useful Lives 2023 2022 (In Thousands of Dollars) Land $ 40,813 $ 40,813 Unimproved land 405 405 Apartment buildings 7-40 years 69,724 69,403 Commercial buildings/shopping centers 5-40 years 42,790 42,740 Equipment/furniture 5-15 years 2,229 2,174 Total real estate, gross 155,961 155,535 Less: accumulated depreciation 62,344 59,660 Total real estate, net $ 93,617 $ 95,875 |
Mortgages Payable and Credit _2
Mortgages Payable and Credit Line (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Mortgages Payable and Credit Line [Abstract] | |
Schedule of Debt | October 31, 2023 October 31, 2022 Principal (Including Unamortized Principal (Including Unamortized (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 7,500 $ 25 $ 7,500 $ 172 Westwood, NJ (B) 16,617 26 17,274 8 Wayne, NJ (C) 28,815 282 28,815 330 River Edge, NJ (D) 9,022 1 9,291 19 Red Bank, NJ (E) 11,521 63 11,750 78 Wayne, NJ (F) 25,000 275 25,000 431 Middletown, NY (G) 14,254 38 14,587 71 Westwood, NJ (H) 25,450 407 — — Total fixed rate 138,179 1,117 114,217 1,109 Westwood, NJ (H) — — 25,000 — Line of credit - Provident Bank (I) — — — 36 Total variable rate — — 25,000 36 Total $ 138,179 $ 1,117 $ 139,217 $ 1,145 (A) On December 30, 2021, FREIT refinanced its $14.4 million loan with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn upon through December 31, 2023 in the amount of $7,500,000 for corporate needs. This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT to extend for one year from the maturity date, subject to certain provisions of the loan agreement. This refinancing provided a reduction in the annual interest rate from a fixed rate of 5.37% to a fixed rate of 2.85% and interest-only payments being required under this new loan. On October 31, 2023, FREIT exercised its right, pursuant to the loan agreement, to extend the term 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 fully repaid this loan with a balance of $7.5 million. This will result in annual debt service savings of approximately $558,000. The mortgage is secured by a residential building in Rockaway, New Jersey having a net book value of approximately $13,889,000 as of October 31, 2023. (B) On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8 million, with a new mortgage loan held by Valley National Bank in the amount of $22,750,000, which was payable in monthly installments of $129,702 including interest at 4.75% through February 1, 2023 at which time the outstanding balance was due. Effective February 1, 2023, FREIT entered into a loan extension and modification agreement with Valley National Bank on this loan 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 is based on a fixed interest rate of 7.5% and is 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. 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 account 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 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 will be at a fixed interest rate based on the then corresponding Wall Street Journal Prime Rate (approximately 8.5%). The mortgage is secured by a retail building in Westwood, New Jersey having a net book value of approximately $7,255,000 as of October 31, 2023 including approximately $213,000 classified as construction in progress. As a result of the negative impact of the COVID-19 pandemic at this property, FREIT was granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended June 30, 2020, resulting in total deferred payments of approximately $390,000, of which approximately $222,000 related to deferred interest. These deferred payments are included in the mortgages payable on the consolidated balance sheets as of October 31, 2023 and 2022 and are due at the maturity of this loan. (C) On August 26, 2019, Berdan Court, LLC (“Berdan Court”), refinanced its $17 million loan with a new lender in the amount of $28,815,000. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 6.09% to a fixed rate of 3.54% and (ii) net refinancing proceeds of approximately $11.6 million, which could be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,544,000 as of October 31, 2023. (D) On November 19, 2013, FREIT refinanced mortgage loans with a new mortgage loan in the amount of $11,200,000 payable in monthly installments of $57,456 including interest at 4.54% through December 1, 2023 at which time the outstanding balance came due. On December 1, 2023, the mortgage in the amount of approximately $9 million came due. FREIT is in the process of refinancing this loan with the current lender, Provident Bank. While the bank is completing its due diligence around this refinancing, Provident Bank has provided a 90-day extension of the maturity date of this loan based on the same terms and conditions of the existing loan agreement. Management expects this loan to be refinanced, however, until such time as a definitive agreement providing for a refinancing of this loan is entered into, there can be no assurance this loan will be refinanced. The mortgage is secured by an apartment building in River Edge, New Jersey having a net book value of approximately $861,000 as of October 31, 2023. (E) On December 7, 2017, Station Place on Monmouth, LLC (“Station Place”) closed on a mortgage loan in the amount of $12,350,000 held by Provident Bank to purchase the Station Place property in Red Bank, New Jersey. Interest-only payments were required each month for the first two years of the term and thereafter, principal payments plus accrued interest were required each month through maturity. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. In order to minimize interest rate volatility during the term of the loan, Station Place entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment building in Red Bank, New Jersey having a net book value of approximately $17,982,000 as of October 31, 2023. (F) On July 22, 2022, Wayne PSC, LLC (“Wayne PSC”) refinanced its $22.1 million loan (inclusive of deferred interest of approximately $136,000), which would have matured on October 1, 2026, with a new loan held by ConnectOne Bank in the amount of $25,000,000. This loan is interest-only based on a fixed interest rate of 5% and has a term of three years with a maturity date of August 1, 2025. Additionally, an interest reserve escrow was established at closing representing twelve months of interest of $1,250,000, which can be used to pay monthly interest on this loan with a requirement to replenish the escrow account back to $1,250,000 when the balance in the escrow account is reduced to three months of interest. This refinancing resulted in (i) annual debt service savings of approximately $340,000 due to interest-only payments; (ii) an increase in the interest rate from a fixed interest rate of 3.625% to a fixed interest rate of 5%; and (iii) net refinancing proceeds of approximately $1.1 million which can be used for capital expenditures and general corporate purposes. As part of the refinancing, Wayne PSC terminated the interest rate swap contract on the underlying loan resulting in a realized gain on the swap breakage of approximately $1.4 million, which was recorded as a realized gain on the accompanying consolidated statement of income for the year ended October 31, 2022. (See Note 6 for additional details.) The mortgage is secured by a shopping center in Wayne, New Jersey having a net book value of approximately $21,942,000 as of October 31, 2023 including approximately $685,000 classified as construction in progress. As of October 31, 2023 the interest reserve escrow account has a balance of $613,000. (G) On December 29, 2014, FREIT Regency, LLC (“Regency”) closed on a $16.2 million mortgage loan with Provident Bank. The loan bears a floating interest rate equal to 125 basis points over the one-month BBA LIBOR and will mature on December 15, 2024. Interest-only payments had been required each month through December 15, 2017 and thereafter, principal payments of $27,807 (plus accrued interest) are required each month through maturity. In order to minimize interest rate volatility during the term of the loan, Regency entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 3.75% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment complex in Middletown, New York having a net book value of $17,172,000 as of October 31, 2023. (H) On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”) refinanced its $19.2 million loan with a new loan held by ConnectOne Bank in the amount of $25,000,000, with additional funding available in the amount of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property. (See Note 14 for additional details in regards to the lis pendens.) This loan, is interest-only based on a floating rate at 400 basis points over the one-month LIBOR rate with a floor of 4.15% and had a maturity date of October 1, 2022 with the option of Westwood Hills to extend for two (2) additional six (6)-month periods from the maturity date, subject to certain provisions of the loan agreement. This refinancing resulted in: (i) a change in the annual interest rate from a fixed rate of 4.62% to a variable rate with a floor of 4.15% and (ii) net refinancing proceeds of approximately $5.6 million that were distributed to the partners in Westwood Hills with FREIT receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. On August 19, 2022, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its its loan for an additional six (6) months from an initial maturity date of October 1, 2022 to a new maturity date of April 1, 2023 on the same terms and conditions as stated in the loan agreement. On March 1, 2023, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its loan, for an additional six (6) months to a new maturity date of October 1, 2023 on the same terms and conditions as stated in the loan agreement. 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% and annual debt service savings of approximately $535,000. The mortgage is secured by an apartment building in Westwood, New Jersey having a net book value of approximately $7,577,000 as of October 31, 2023. (I) 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 will be based on a floating interest rate of prime minus 25 basis points with a floor of 6.75%. As of October 31, 2023 and 2022, there was no amount outstanding and $13 million was available under the line of credit. |
Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt | The following table shows the estimated fair value and carrying value of FREIT’s long-term debt, net at October 31, 2023 and 2022: ($ in Millions) October 31, October 31, Fair Value $130.8 $132.2 Carrying Value, Net $137.1 $138.1 |
Schedule of Principal Amounts of Long-Term Debt | Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2023 are as follows: Year Ending October 31, Amount 2024 $ 17,951 2025 $ 56,111 2026 $ 25,649 2027 $ 849 2028 $ 11,113 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Fixed Lease Consideration Under Non-Cancellable | Minimum fixed lease consideration (in thousands of dollars) under non-cancellable 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, subsequent to October 31, 2023, is as follows: Year Ending October 31, Amount 2024 $ 4,864 2025 3,955 2026 3,139 2027 2,015 2028 1,024 Thereafter 3,197 Total $ 18,194 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Equity Incentive Plan [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for Fiscal 2023, 2022 and 2021: Year Ended October 31, Year Ended October 31, Year Ended October 31, 2023 2022 2021 No. of Options Weighted Average No. of Options Weighted Average No. of Options Weighted Average Outstanding Exercise Price Outstanding Exercise Price Outstanding Exercise Price Options outstanding at beginning of year 126,140 $ 10.64 310,740 $ 18.35 310,740 $ 18.35 Options granted during year — — — — — — Options forfeited/cancelled during year — — — — — — Options exercised during year (117,700 ) (10.74 ) (184,600 ) (10.99 ) — — Options outstanding at end of year 8,440 $ 9.21 126,140 $ 10.64 310,740 $ 18.35 Options vested and expected to vest 8,290 124,850 309,450 Options exercisable at end of year 7,440 116,540 292,540 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Segment Information [Abstract] | |
Schedule of Segment and Related Information | Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2023. Asset information is not reported since FREIT does not use this measure to assess performance. Years Ended October 31, 2023 2022 2021 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 8,789 $ 10,626 $ 23,547 Residential 19,655 20,627 26,974 Total real estate rental revenue 28,444 31,253 50,521 Real estate operating expenses: Commercial 5,080 6,427 11,223 Residential 8,674 8,854 11,071 Total real estate operating expenses 13,754 15,281 22,294 Net operating income: Commercial 3,709 4,199 12,324 Residential 10,981 11,773 15,903 Total net operating income $ 14,690 $ 15,972 $ 28,227 Recurring capital improvements - residential $ (532 ) $ (1,034 ) $ (625 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 14,690 $ 15,972 $ 28,227 Deferred rents - straight lining (100 ) 18 (230 ) Investment income 1,013 358 116 Net (loss) gain on sale of Maryland properties (1,003 ) 68,771 — Net realized gain on Wayne PSC interest rate swap termination — 1,415 — Loss on investment in tenancy-in-common (271 ) (228 ) (295 ) General and administrative expenses (4,243 ) (5,003 ) (5,195 ) Depreciation (2,944 ) (3,995 ) (9,300 ) Financing costs (7,717 ) (8,064 ) (12,276 ) Net (loss) income (575 ) 69,244 1,047 Net loss (income) attributable to noncontrolling interests in subsidiaries 1,335 (23,252 ) (120 ) Net income attributable to common equity $ 760 $ 45,992 $ 927 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
Selected Quarterly Financial Data (Unaudited) [Abstract] | |
Schedule of Quarterly Results of Operations | The following summary represents the results of operations for each quarter for the years ended October 31, 2023 and 2022 (in thousands, except per share amounts): 2023: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 6,979 $ 6,916 $ 7,296 $ 7,153 $ 28,344 Expenses, net 6,933 7,202 8,142 6,642 28,919 Net income (loss) 46 (286 ) (846 ) 511 (575 ) Net loss attributable to noncontrolling interests in subsidiaries 373 383 434 145 1,335 Net income (loss) attributable to common equity $ 419 $ 97 $ (412 ) $ 656 $ 760 Earnings (Loss) per share - basic and diluted $ 0.06 $ 0.01 $ (0.06 ) $ 0.09 $ 0.10 Dividends declared per share $ 0.05 $ 0.05 $ 0.30 $ 0.05 $ 0.45 2022: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 10,649 $ 6,615 $ 6,959 $ 7,048 $ 31,271 Expenses, net (58,504 )(a) 7,616 (b) 5,145 (c) 7,770 (d) (37,973 ) Net income (loss) 69,153 (1,001 ) 1,814 (722 ) 69,244 Net (income) loss attributable to noncontrolling interests in subsidiaries (23,376 )(a) 649 (b) (693 )(c) 168 (d) (23,252 ) Net income (loss) attributable to common equity $ 45,777 $ (352 ) $ 1,121 $ (554 ) $ 45,992 Earnings (Loss) per share - basic $ 6.51 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.52 Earnings (Loss) per share - diluted $ 6.45 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.45 Dividends declared per share $ 0.10 $ 0.10 $ — $ 9.00 $ 9.20 (a) Includes $70 million gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $46.3 million ($6.58 per share basic and $6.52 per share diluted). (b) Includes $1.2 million reduction in gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $0.7 million ($0.10 per share basic and diluted). (c) Includes $1.4 million realized gain on Wayne PSC interest rate swap termination with a consolidated impact to FREIT of approximately $0.6 million ($0.08 per share basic and diluted). (d) Includes stock compensation expense of approximately $1.2 million for the incremental compensation cost attributed to the revaluation of the stock options modified on September 9, 2022 ($0.17 per share basic and diluted). |
SCHEDULE III _ REAL ESTATE AN_2
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION (Tables) | 12 Months Ended |
Oct. 31, 2023 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule of Real Estate and Accumulated Depreciation | Column A Column B Column C Column D Column E Column F Column G Column H Column I Initial Cost Costs Capitalized Gross Amount at Which to Company Subsequent to Acquisition Carried at Close of Period Life on Buildings Buildings Which Encum- and Improve- Carrying and Accumulated Date of Date Depreciation Description brances Land Improvements Land ments Costs Land Improvements Total (1) Depreciation Construction Acquired is Computed Residential Properties: Steuben Arms, River Edge, NJ $ 9,022 $ 364 $ 1,773 $ — $ 1,805 $ 364 $ 3,578 $ 3,942 $ 3,081 1966 1975 7-40 years Berdan Court, Wayne, NJ 28,815 250 2,206 — 5,310 250 7,516 7,766 6,222 1964 1965 7-40 years Westwood Hills, Westwood, NJ 25,450 3,849 11,546 — 3,132 3,849 14,678 18,527 10,950 1965-70 1994 7-39 years Boulders - Rockaway, NJ 7,500 1,632 — 3,386 16,313 5,018 16,313 21,331 7,493 2005-2006 1963/1964 7-40 years Regency Club - Middletown, NY 14,254 2,833 17,792 — 1,266 2,833 19,058 21,891 4,719 2003 2014 7-40 years Station Place - Red Bank, NJ 11,521 8,793 10,757 — 28 8,793 10,785 19,578 1,596 2015 2017 7-40 years Commercial Properties: Franklin Crossing, Franklin Lakes, NJ — 29 — 3,382 7,611 3,411 7,611 11,022 4,954 1963/75/97 1966 5-39.5 years Glen Rock, NJ — 12 36 — 164 12 200 212 169 1940 1962 5-25 years Westwood Plaza, Westwood, NJ 16,617 6,889 6,416 — 2,581 6,889 8,997 15,886 8,631 1981 1988 5-31.5 years Preakness S/C, Wayne, NJ 25,000 9,280 24,217 — 2,688 9,280 26,905 36,185 14,529 1955/89/00 2002 5-39.5 years Land Leased: Rockaway, NJ — 114 — — — 114 — 114 — 1963/1964 Vacant Land: ` Franklin Lakes, NJ — 224 — (156 ) — 68 — 68 — 1966/93 Wayne, NJ — 286 — — — 286 — 286 — 2002 Rockaway, NJ — 51 — — — 51 — 51 — 1963/1964 $ 138,179 $ 34,606 $ 74,743 $ 6,612 $ 40,898 $ — $ 41,218 $ 115,641 $ 156,859 $ 62,344 (1) Total cost for each property is the same for federal income tax purposes, with the exception of the Regency Club and Station Place whose cost for federal income tax purposes is approximately $13.8 million and $4.2 million, respectively. |
Schedule of Reconciliation of Real Estate and Accumulated Depreciation | Reconciliation of Real Estate and Accumulated Depreciation: 2023 2022 2021 Real estate: Balance, Beginning of year $ 156,223 $ 386,920 $ 385,853 Additions - Buildings and improvements 896 1,474 1,883 Disposals - Buildings and improvements (260 ) (232 ) (816 ) Sale of property — (231,939 ) — Balance, end of year $ 156,859 $ 156,223 $ 386,920 Accumulated depreciation: Balance, Beginning of year $ 59,660 $ 115,621 $ 107,137 Additions - Charged to operating expenses 2,944 3,995 9,300 Disposals - Buildings and improvements (260 ) (232 ) (816 ) Sale of property — (59,724 ) — Balance, end of year $ 62,344 $ 59,660 $ 115,621 |
Organization and Significant _3
Organization and Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Feb. 28, 2020 | |
Organization and Significant Accounting Policies (Details) [Line Items] | ||||
Investment trust, percentage | 90% | |||
Noncontrolling interests in subsidiaries, percentage | 100% | |||
Amortization costs, interest expense (in Dollars) | $ 509,000 | $ 971,000 | $ 1,109,000 | |
Advertising costs (in Dollars) | $ 287,000 | $ 234,000 | $ 421,000 | |
FREIT [Member] | ||||
Organization and Significant Accounting Policies (Details) [Line Items] | ||||
Ownership interest, percentage | 40% | |||
Pierre Towers, LLC [Member] | ||||
Organization and Significant Accounting Policies (Details) [Line Items] | ||||
Noncontrolling interests in subsidiaries, percentage | 100% | |||
Percentage of ownership interest | 100% | |||
Pierre Towers, LLC [Member] | FREIT [Member] | ||||
Organization and Significant Accounting Policies (Details) [Line Items] | ||||
Percentage of ownership interest | 100% | |||
Pierre Towers, LLC [Member] | S And A Commercial Associates Limited Partnership [Member] | ||||
Organization and Significant Accounting Policies (Details) [Line Items] | ||||
Percentage of ownership interest | 65% | |||
TIC Agreement [Member] | ||||
Organization and Significant Accounting Policies (Details) [Line Items] | ||||
Percentage of ownership interest | 65% | |||
TIC Agreement [Member] | FREIT [Member] | ||||
Organization and Significant Accounting Policies (Details) [Line Items] | ||||
Percentage of ownership interest | 65% |
Organization and Significant _4
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest | 12 Months Ended |
Oct. 31, 2023 | |
Westwood Hills, LLC [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 40% |
Year Acquired/Organized | 1994 |
Wayne PSC, LLC [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 40% |
Year Acquired/Organized | 2002 |
Damascus Centre, LLC [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 70% |
Year Acquired/Organized | 2003 |
Grande Rotunda, LLC [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 60% |
Year Acquired/Organized | 2005 |
WestFREIT, Corp [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2007 |
FREIT Regency, LLC [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2014 |
Station Place on Monmouth, LLC [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2017 |
Berdan Court, LLC [Member] | |
Organization and Significant Accounting Policies (Details) - Schedule of Subsidiaries in which FREIT has a Controlling Financial Interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2019 |
Organization and Significant _5
Organization and Significant Accounting Policies (Details) - Schedule of Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 |
Previously Reported [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | $ 38,134 | $ 35,717 | $ 37,187 |
Investments in U.S. Treasury securities available-for-sale | |||
Accounts receivable, net | 610 | 638 | 621 |
Other Assets | 122,104 | 126,345 | 126,721 |
Total Assets | 160,848 | 162,700 | 164,529 |
Previously Restated [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash and cash equivalents | 17,757 | 18,633 | 31,514 |
Investments in U.S. Treasury securities available-for-sale | 20,526 | 17,246 | 5,712 |
Accounts receivable, net | 461 | 476 | 582 |
Other Assets | 122,104 | 126,345 | 126,721 |
Total Assets | $ 160,848 | $ 162,700 | $ 164,529 |
Organization and Significant _6
Organization and Significant Accounting Policies (Details) - Schedule of Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 |
Previously Reported [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Accreted interest on investment in U.S. Treasury securities | |||
Change in accounts receivable, prepaid expenses & other assets | 248 | (20) | 97 |
Net cash (used in) provided by operating activities | 1,883 | 308 | (862) |
Purchase of U.S. Treasury securities | |||
Proceeds from maturities of U.S. Treasury securities | |||
Net cash used in investing activities | (1,748) | (1,432) | (354) |
Cash, cash equivalents and restricted cash | 43,389 | 44,351 | 45,519 |
Previously Restated [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Accreted interest on investment in U.S. Treasury securities | (154) | (162) | (39) |
Change in accounts receivable, prepaid expenses & other assets | 397 | 142 | 136 |
Net cash (used in) provided by operating activities | 1,878 | 308 | (862) |
Purchase of U.S. Treasury securities | (31,752) | (17,084) | (5,673) |
Proceeds from maturities of U.S. Treasury securities | 11,380 | ||
Net cash used in investing activities | (22,120) | (18,516) | (6,027) |
Cash, cash equivalents and restricted cash | $ 23,012 | $ 27,267 | $ 39,846 |
Maryland Property Dispositions
Maryland Property Dispositions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||
Aug. 04, 2022 | Jan. 10, 2022 | Jan. 07, 2022 | Dec. 30, 2021 | Dec. 30, 2021 | Nov. 22, 2021 | Oct. 31, 2023 | Oct. 31, 2022 | Dec. 01, 2023 | Sep. 15, 2023 | Jul. 12, 2023 | Jul. 22, 2022 | |
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Purchase price | $ 36,685,067 | $ 11,500,000 | ||||||||||
Escrow deposit | $ 15,526,731 | $ 613,000 | $ 1,250,000 | |||||||||
Net proceeds | 200,000 | 600,000 | $ 11,800,000 | |||||||||
Repayments of mortgage debt | 623,000 | 623,000 | ||||||||||
Released funds | 5,186,000 | |||||||||||
Related gain on sale | 1,100,000 | 1,200,000 | ||||||||||
Fund held for rent | 900,000 | 6,300,000 | ||||||||||
Sale of net gain | 8,800,000 | $ 48,900,000 | 10,100,000 | |||||||||
Released from funds held in escrow | 900,000 | $ 6,100,000 | 6,100,000 | $ 400,000 | ||||||||
Straight-line rent receivable | 500,000 | 1,800,000 | ||||||||||
Unamortized lease commissions | 300,000 | 1,100,000 | ||||||||||
Accrued interest | 5,300,000 | |||||||||||
Mortgage debt amount | 18,200,000 | 21,100,000 | $ 9,000,000 | |||||||||
Breakage fees | $ 213,000 | |||||||||||
Purchase description | This sale resulted in net proceeds of approximately $58.2 million (inclusive of approximately $4.6 million and $1.9 million in funds released from the Maryland Purchaser Escrow Payment in the years ended October 31, 2023 and 2022, respectively), 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 October 31, 2023, approximately $6,547,000 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 $1 million and $1.2 million for the years ended October 31, 2023 and 2022, 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 $0.9 million and $6.3 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 consolidated balance sheets as of October 31, 2023 and 2022, respectively. These funds held in post-closing escrow are anticipated to be released in Fiscal 2024. The sale of the Maryland Properties resulted in a net gain of approximately $67.8 million (as adjusted) (with a consolidated impact to FREIT of approximately $45 million) which includes approximately $7.4 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. | |||||||||||
Cash distribution, per share (in Dollars per share) | $ 7.5 | |||||||||||
Dividend per share (in Dollars per share) | $ 0.3 | |||||||||||
Maryland Purchaser Escrow Payment [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Debt instrument, fund payment | $ 4,500,000 | |||||||||||
FREIT [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Lease term | 5 years | |||||||||||
Principal amount | 27,700,000 | 27,700,000 | ||||||||||
Straight-line rent receivable | 600,000 | |||||||||||
Unamortized lease commissions | 300,000 | |||||||||||
Rotunda 100, LLC [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Principal amount | $ 31,000,000 | $ 31,000,000 | ||||||||||
Rotunda Hundred [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Membership interest percentage | 40% | 40% | ||||||||||
Rotunda Hundred [Member] | FREIT [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Membership interest percentage | 60% | 60% | ||||||||||
Grande Rotunda [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Membership interest percentage | 60% | 60% | ||||||||||
Damascus Centre [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Membership interest percentage | 70% | |||||||||||
Ordinary dividend [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Dividend per share (in Dollars per share) | $ 0.05 | |||||||||||
Special dividend [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Dividend per share (in Dollars per share) | $ 0.25 | |||||||||||
Rotunda Property [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Net proceeds | 4,500,000 | 21,400,000 | ||||||||||
Westridge Square Property [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Remaining funds | 945,000 | |||||||||||
Damascus Property [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Purchase price | $ 24,600,000 | |||||||||||
Net proceeds | 17,300,000 | |||||||||||
Released funds | 0 | 400,000 | ||||||||||
Remaining funds | 416,000 | |||||||||||
Related Party [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Due to affiliate | 900,000 | 600,000 | ||||||||||
Related Party [Member] | Rotunda Property [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Due to affiliate | $ 4,900,000 | $ 4,900,000 | ||||||||||
Purchase and Sale Agreement [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Escrow deposit | 15,000,000 | |||||||||||
Purchase and Sale Agreement [Member] | WestFREIT, Corp [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Percentage of ownership interest | 100% | |||||||||||
Purchase and Sale Agreement [Member] | Grande Rotunda [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Percentage of ownership interest | 60% | |||||||||||
Purchase and Sale Agreement [Member] | Damascus Centre [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Percentage of ownership interest | 70% | |||||||||||
Purchase and Sale Agreement of Rotunda Property [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Purchase price | 136,200,000 | $ 2,723,000 | ||||||||||
Escrow deposit | 15,526,731 | |||||||||||
Sales price | 2,723,000 | |||||||||||
Repayments of mortgage debt | 116,500,000 | |||||||||||
Purchase and Sale Agreement of Rotunda Property [Member] | Maximum [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Purchase price | 267,000,000 | |||||||||||
Purchase and Sale Agreement of Rotunda Property [Member] | Minimum [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Purchase price | $ 248,750,269 | |||||||||||
Maryland Properties [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Purchase price | 20,984,604 | 191,080,598 | 248,750,269 | |||||||||
Net book value | 172,300,000 | |||||||||||
Escrow deposit amount | 15,526,731 | |||||||||||
Grande Rotunda [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Net proceeds | 40,700,000 | |||||||||||
Maryland Purchaser Escrow Payment [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Escrow deposit | $ 484,934 | $ 1,015,396 | $ 14,026,401 | $ 14,026,401 | ||||||||
Debt instrument, fund payment | 700,000 | |||||||||||
Westridge Square Property [Member] | ||||||||||||
Maryland Property Dispositions (Details) [Line Items] | ||||||||||||
Released funds | $ 100,000 | $ 800,000 |
Investment in Tenancy-in-Comm_3
Investment in Tenancy-in-Common (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Feb. 28, 2020 | |
Investment in Tenancy in Common [Line Items] | ||||
Investment in tenancy-in-common | $ 18,137,000 | $ 18,798,000 | ||
Percentage of management fees of rent collected | 5% | |||
Management fees | $ 418,000 | 402,000 | $ 375,000 | |
Commission paid | 51,000 | 40,000 | 51,000 | |
F R E I Ts Investment [Member] | ||||
Investment in Tenancy in Common [Line Items] | ||||
Loss on investment | 271,000 | 228,000 | $ 295,000 | |
F R E I Ts Investment [Member] | ||||
Investment in Tenancy in Common [Line Items] | ||||
Investment in tenancy-in-common | $ 18,100,000 | 18,800,000 | ||
S And A Commercial Associates Limited Partnership [Member] | ||||
Investment in Tenancy in Common [Line Items] | ||||
Percentage of ownership interest | 65% | |||
Pierre Towers [Member] | ||||
Investment in Tenancy in Common [Line Items] | ||||
Percentage of ownership interest | 100% | |||
Pierre Towers, LLC [Member] | ||||
Investment in Tenancy in Common [Line Items] | ||||
Percentage of ownership interest | 100% | |||
TIC Agreement [Member] | ||||
Investment in Tenancy in Common [Line Items] | ||||
Percentage of ownership interest | 65% | |||
Hekemian & Co. [Member] | ||||
Investment in Tenancy in Common [Line Items] | ||||
Management fees | $ 28,500 | $ 35,100 |
Investment in Tenancy-in-Comm_4
Investment in Tenancy-in-Common (Details) - Schedule of Balance Sheet of Pierre Property - Pierre Towers property [Member] - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Investment in Tenancy in Common [Line Items] | ||
Real estate, net | $ 74,202 | $ 76,042 |
Cash and cash equivalents | 2,256 | 2,051 |
Tenants' security accounts | 478 | 454 |
Receivables and other assets | 455 | 583 |
Total assets | 77,391 | 79,130 |
Mortgages payable, net of unamortized debt issuance costs | 48,516 | 49,425 |
Accounts payable and accrued expenses | 295 | 178 |
Tenants' security deposits | 496 | 462 |
Deferred revenue | 181 | 145 |
Equity | 27,903 | 28,920 |
Total liabilities & equity | 77,391 | 79,130 |
FREIT's investment in TIC (65% interest) | $ 18,137 | $ 18,798 |
Investment in Tenancy-in-Comm_5
Investment in Tenancy-in-Common (Details) - Schedule of Income Statement of Pierre Property - Pierre Towers property [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Investment in Tenancy in Common [Line Items] | |||
Revenues | $ 8,278 | $ 8,028 | $ 7,627 |
Operating expenses | 4,893 | 4,594 | 4,311 |
Depreciation | 2,212 | 2,183 | 2,166 |
Operating income | 1,173 | 1,251 | 1,150 |
Interest expense including amortization of deferred financing costs | 1,590 | 1,601 | 1,604 |
Net income (loss) | (417) | (350) | (454) |
FREIT's loss on investment in TIC (65% interest) | $ (271) | $ (228) | $ (295) |
Real Estate (Details) - Schedul
Real Estate (Details) - Schedule of Real Estate and Equipment - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 40,813 | $ 40,813 |
Unimproved land | 405 | 405 |
Total real estate, gross | 155,961 | 155,535 |
Less: accumulated depreciation | 62,344 | 59,660 |
Total real estate, net | 93,617 | 95,875 |
Apartment Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 69,724 | 69,403 |
Apartment Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Apartment Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Commercial Buildings/Shopping Centers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 42,790 | 42,740 |
Commercial Buildings/Shopping Centers [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Commercial Buildings/Shopping Centers [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Equipment/Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 2,229 | $ 2,174 |
Equipment/Furniture [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Equipment/Furniture [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years |
Mortgages Payable and Credit _3
Mortgages Payable and Credit Line (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Aug. 03, 2023 | Feb. 01, 2023 | Feb. 07, 2018 | Dec. 07, 2017 | Jan. 14, 2013 | Aug. 19, 2022 | Jul. 22, 2022 | Dec. 30, 2021 | Sep. 30, 2020 | Aug. 26, 2019 | Dec. 29, 2014 | Nov. 19, 2013 | Dec. 26, 2012 | Jun. 30, 2020 | Oct. 31, 2023 | Oct. 31, 2022 | Dec. 01, 2023 | Jan. 10, 2022 | Jan. 07, 2022 | Nov. 22, 2021 | |
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Refinanced loan amount | $ 8,000,000 | $ 22,100,000 | $ 14,400,000 | $ 17,000,000 | $ 19,200,000 | |||||||||||||||
Loan amount | $ 12,350,000 | $ 22,750,000 | $ 25,000,000 | 7,500,000 | $ 25,000,000 | 28,815,000 | $ 11,200,000 | |||||||||||||
Additional funding | $ 7,500,000 | 250,000 | $ 3,420,000 | |||||||||||||||||
Term of the loan | 3 years | |||||||||||||||||||
Repaid loan | 7,500,000 | |||||||||||||||||||
Net proceeds from refinancing of debt | $ 1,100,000 | $ 5,600,000 | 11,600,000 | 558,000 | ||||||||||||||||
Outstanding balance | $ 16,864,361 | |||||||||||||||||||
Future periodic payment including principal | $ 130,036 | 157,347 | ||||||||||||||||||
Construction progress amount | 685,000,000,000 | |||||||||||||||||||
Fixed interest rate | 6.09% | |||||||||||||||||||
Mortgage debt amount | $ 9,000,000 | $ 18,200,000 | $ 21,100,000 | |||||||||||||||||
Deferred interest | $ 136,000 | |||||||||||||||||||
Fixed interest rate tranche one | 5% | |||||||||||||||||||
Escrow account balance | $ 1,250,000 | 613,000 | $ 15,526,731 | |||||||||||||||||
Annual debt service savings | $ 340,000 | |||||||||||||||||||
Total deferred payments | 1,400,000 | |||||||||||||||||||
Net book value | $ 17,172,000 | |||||||||||||||||||
LIBOR rate | 4.15% | |||||||||||||||||||
Loan amount | $ 25,000,000 | |||||||||||||||||||
Insurance amount | $ 25,500,000,000,000 | |||||||||||||||||||
Percentage of fixed interest rate | 6.05% | 6.05% | ||||||||||||||||||
Principal interest amount | $ 153,706 | |||||||||||||||||||
Percentage of variable interest rate | 9.21% | |||||||||||||||||||
Debt service savings amount | $ 535,000 | |||||||||||||||||||
Line of credit, available | 13,000,000 | |||||||||||||||||||
Line of credit | $ 13,000,000 | $ 13,000,000 | ||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 4.62% | |||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 4.15% | |||||||||||||||||||
Line of Credit [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Refinanced loan amount | $ 16,200,000 | |||||||||||||||||||
Loan agreement [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Jan. 01, 2024 | |||||||||||||||||||
Term of the loan | 1 year | |||||||||||||||||||
Fixed interest rate | 7.50% | |||||||||||||||||||
Loan agreement [Member] | Maximum [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 5.37% | |||||||||||||||||||
Loan agreement [Member] | Minimum [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 2.85% | |||||||||||||||||||
Rockaway, New Jersey [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Net book value | $ 13,889,000 | |||||||||||||||||||
Valley National Bank [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Feb. 01, 2024 | |||||||||||||||||||
Fixed interest rate | 4.75% | |||||||||||||||||||
Monthly princial payments | $ 129,702 | |||||||||||||||||||
Annual Principal payment amount | 1,888,166 | |||||||||||||||||||
Westwood, New Jersey [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Net book value | 7,255,000 | |||||||||||||||||||
Monthly princial payments | $ 390,000 | |||||||||||||||||||
Construction progress amount | 213,000 | |||||||||||||||||||
Deferred Interest | $ 222,000 | |||||||||||||||||||
Berdan Court, LLC [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 3.54% | |||||||||||||||||||
Wayne, New Jersey [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Term of the loan | 5 years | |||||||||||||||||||
Net book value | 21,942,000 | |||||||||||||||||||
Monthly princial payments | $ 85,004 | |||||||||||||||||||
Mortgage loan [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Dec. 01, 2023 | |||||||||||||||||||
Fixed interest rate | 4.54% | |||||||||||||||||||
Monthly princial payments | $ 57,456 | |||||||||||||||||||
River Edge, New Jersey [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Net book value | 861,000 | |||||||||||||||||||
Red Bank, New Jersey [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Dec. 15, 2027 | |||||||||||||||||||
Term of the loan | 2 years | |||||||||||||||||||
Fixed interest rate | 4.35% | |||||||||||||||||||
Monmouth, LLC [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Net book value | $ 17,982,000 | |||||||||||||||||||
Wayne PSC, LLC [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Aug. 01, 2025 | |||||||||||||||||||
Monthly princial payments | $ 1,250,000 | |||||||||||||||||||
Wayne PSC, LLC [Member] | Maximum [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 5% | |||||||||||||||||||
Wayne PSC, LLC [Member] | Minimum [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 3.625% | |||||||||||||||||||
Middletown, NY Mortgage [Member] | Line of Credit [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Dec. 15, 2024 | |||||||||||||||||||
FREIT Regency, LLC [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 3.75% | |||||||||||||||||||
Annual Principal payment amount | $ 27,807 | |||||||||||||||||||
FREIT [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Oct. 31, 2026 | |||||||||||||||||||
Basis points, interest rate | 6.75% | |||||||||||||||||||
Secured Debt [Member] | Wayne, New Jersey [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Net book value | $ 1,544,000 | |||||||||||||||||||
Westwood Hills Property [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Maturity date of loan | Oct. 01, 2022 | |||||||||||||||||||
Net proceeds from refinancing of debt | $ 2,200,000 | |||||||||||||||||||
Percentage of membership interest | 40% | |||||||||||||||||||
Loan agreement description | On August 19, 2022, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its its loan for an additional six (6) months from an initial maturity date of October 1, 2022 to a new maturity date of April 1, 2023 on the same terms and conditions as stated in the loan agreement. On March 1, 2023, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its loan, for an additional six (6) months to a new maturity date of October 1, 2023 on the same terms and conditions as stated in the loan agreement. | |||||||||||||||||||
Westwood Hills Property [Member] | Wayne, New Jersey [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Net book value | $ 7,577,000 | |||||||||||||||||||
FREIT [Member] | Loan agreement [Member] | ||||||||||||||||||||
Mortgages Payable and Credit Line (Details) [Line Items] | ||||||||||||||||||||
Fixed interest rate | 7.44% |
Mortgages Payable and Credit _4
Mortgages Payable and Credit Line (Details) - Schedule of Debt - USD ($) $ in Thousands | Oct. 31, 2023 | Oct. 31, 2022 | |
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | $ 138,179 | $ 139,217 | |
Unamortized debt issuance costs | 1,117 | 1,145 | |
Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [1] | 138,179 | 114,217 |
Unamortized debt issuance costs | [1] | 1,117 | 1,109 |
Notes Payable, Other Payables [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 25,000 | ||
Unamortized debt issuance costs | 36 | ||
Line of Credit [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [1] | ||
Unamortized debt issuance costs | [1] | 36 | |
Rockaway, NJ Mortgage [Member] | Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [2] | 7,500 | 7,500 |
Unamortized debt issuance costs | [2] | 25 | 172 |
Westwood, NJ [Member] | Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [3] | 16,617 | 17,274 |
Unamortized debt issuance costs | [3] | 26 | 8 |
Wayne, NJ Mortgage [Member] | Mortgages [Member] | Berdan Court, LLC [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [4] | 28,815 | 28,815 |
Unamortized debt issuance costs | [4] | 282 | 330 |
River Edge, NJ First Mortgage [Member] | Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [5] | 9,022 | 9,291 |
Unamortized debt issuance costs | [5] | 1 | 19 |
Red Bank, NJ Mortgage [Member] | Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [6] | 11,521 | 11,750 |
Unamortized debt issuance costs | [6] | 63 | 78 |
Wayne, PSC LLC [Member] | Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [7] | 25,000 | 25,000 |
Unamortized debt issuance costs | [7] | 275 | 431 |
Middletown, NY Mortgage [Member] | Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [8] | 14,254 | 14,587 |
Unamortized debt issuance costs | [8] | 38 | 71 |
Westwood, NJ One [Member] | Mortgages [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [9] | 25,450 | |
Unamortized debt issuance costs | [9] | 407 | |
Westwood, NJ Two [Member] | Notes Payable, Other Payables [Member] | |||
Mortgages Payable and Credit Line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [9] | 25,000 | |
Unamortized debt issuance costs | [9] | ||
[1] 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 will be based on a floating interest rate of prime minus 25 basis points with a floor of 6.75%. As of October 31, 2023 and 2022, there was no amount outstanding and $13 million was available under the line of credit. On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8 million, with a new mortgage loan held by Valley National Bank in the amount of $22,750,000, which was payable in monthly installments of $129,702 including interest at 4.75% through February 1, 2023 at which time the outstanding balance was due. Effective February 1, 2023, FREIT entered into a loan extension and modification agreement with Valley National Bank on this loan 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 is based on a fixed interest rate of 7.5% and is 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. 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 account 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 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 will be at a fixed interest rate based on the then corresponding Wall Street Journal Prime Rate (approximately 8.5%). The mortgage is secured by a retail building in Westwood, New Jersey having a net book value of approximately $7,255,000 as of October 31, 2023 including approximately $213,000 classified as construction in progress. As a result of the negative impact of the COVID-19 pandemic at this property, FREIT was granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended June 30, 2020, resulting in total deferred payments of approximately $390,000, of which approximately $222,000 related to deferred interest. These deferred payments are included in the mortgages payable on the consolidated balance sheets as of October 31, 2023 and 2022 and are due at the maturity of this loan. On August 26, 2019, Berdan Court, LLC (“Berdan Court”), refinanced its $17 million loan with a new lender in the amount of $28,815,000. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 6.09% to a fixed rate of 3.54% and (ii) net refinancing proceeds of approximately $11.6 million, which could be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,544,000 as of October 31, 2023. On November 19, 2013, FREIT refinanced mortgage loans with a new mortgage loan in the amount of $11,200,000 payable in monthly installments of $57,456 including interest at 4.54% through December 1, 2023 at which time the outstanding balance came due. On December 1, 2023, the mortgage in the amount of approximately $9 million came due. FREIT is in the process of refinancing this loan with the current lender, Provident Bank. While the bank is completing its due diligence around this refinancing, Provident Bank has provided a 90-day extension of the maturity date of this loan based on the same terms and conditions of the existing loan agreement. Management expects this loan to be refinanced, however, until such time as a definitive agreement providing for a refinancing of this loan is entered into, there can be no assurance this loan will be refinanced. The mortgage is secured by an apartment building in River Edge, New Jersey having a net book value of approximately $861,000 as of October 31, 2023. On December 7, 2017, Station Place on Monmouth, LLC (“Station Place”) closed on a mortgage loan in the amount of $12,350,000 held by Provident Bank to purchase the Station Place property in Red Bank, New Jersey. Interest-only payments were required each month for the first two years of the term and thereafter, principal payments plus accrued interest were required each month through maturity. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. In order to minimize interest rate volatility during the term of the loan, Station Place entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment building in Red Bank, New Jersey having On December 29, 2014, FREIT Regency, LLC (“Regency”) closed on a $16.2 million mortgage loan with Provident Bank. The loan bears a floating interest rate equal to 125 basis points over the one-month BBA LIBOR and will mature on December 15, 2024. Interest-only payments had been required each month through December 15, 2017 and thereafter, principal payments of $27,807 (plus accrued interest) are required each month through maturity. In order to minimize interest rate volatility during the term of the loan, Regency entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 3.75% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment complex in Middletown, New York having a net book value of $17,172,000 as of October 31, 2023. On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”) refinanced its $19.2 million loan with a new loan held by ConnectOne Bank in the amount of $25,000,000, with additional funding available in the amount of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property. (See Note 14 for additional details in regards to the lis pendens.) This loan, is interest-only based on a floating rate at 400 basis points over the one-month LIBOR rate with a floor of 4.15% and had a maturity date of October 1, 2022 with the option of Westwood Hills to extend for two (2) additional six (6)-month periods from the maturity date, subject to certain provisions of the loan agreement. This refinancing resulted in: (i) a change in the annual interest rate from a fixed rate of 4.62% to a variable rate with a floor of 4.15% and (ii) net refinancing proceeds of approximately $5.6 million that were distributed to the partners in Westwood Hills with FREIT receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. On August 19, 2022, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its its loan for an additional six (6) months from an initial maturity date of October 1, 2022 to a new maturity date of April 1, 2023 on the same terms and conditions as stated in the loan agreement. On March 1, 2023, Westwood Hills exercised its right, pursuant to the loan agreement, to extend the term of its loan, for an additional six (6) months to a new maturity date of October 1, 2023 on the same terms and conditions as stated in the loan agreement. 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% and annual debt service savings of approximately $535,000. The mortgage is secured by an apartment building in Westwood, New Jersey having a net book value of approximately $7,577,000 as of October 31, 2023. |
Mortgages Payable and Credit _5
Mortgages Payable and Credit Line (Details) - Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt - USD ($) $ in Millions | Oct. 31, 2023 | Oct. 31, 2022 |
Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt [Abstract] | ||
Fair Value | $ 130.8 | $ 132.2 |
Carrying Value, Net | $ 137.1 | $ 138.1 |
Mortgages Payable and Credit _6
Mortgages Payable and Credit Line (Details) - Schedule of Principal Amounts of Long-Term Debt $ in Thousands | Oct. 31, 2023 USD ($) |
Schedule of Principal Amounts of Long-Term Debt [Abstract] | |
2024 | $ 17,951 |
2025 | 56,111 |
2026 | 25,649 |
2027 | 849 |
2028 | $ 11,113 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |||||
Oct. 31, 2023 | Oct. 31, 2022 | Jan. 10, 2022 | Dec. 30, 2021 | Oct. 31, 2023 | Jun. 17, 2022 | |
Fair Value Measurements (Details) [Line Items] | ||||||
Available for sale | $ 23,593,000 | $ 23,593,000 | ||||
Proceeds from the sale | $ 18,200,000 | $ 116,500,000 | ||||
Breakage fees | $ 213,000 | |||||
Maturity date | October 2026 | |||||
Settlement amount | $ 1,400,000 | |||||
Unrealized loss | 73,000 | |||||
Unrealized gain | 3,717,000 | 2,616,000 | ||||
Regency Swap [Member] | ||||||
Fair Value Measurements (Details) [Line Items] | ||||||
Asset | 459,000 | 611,000 | $ 459,000 | |||
Station Place swap [Member] | ||||||
Fair Value Measurements (Details) [Line Items] | ||||||
Asset | $ 877,000 | $ 798,000 | $ 877,000 |
Commitments and contingencies_2
Commitments and contingencies (Details) | 12 Months Ended |
Oct. 31, 2023 USD ($) | |
Commitments and contingencies (Details) [Line Items] | |
Commercial space leases, net book value | $ 35,500,000 |
Minimum [Member] | |
Commitments and contingencies (Details) [Line Items] | |
Lease terms for residential tenants, periods | 1 year |
Maximum [Member] | |
Commitments and contingencies (Details) [Line Items] | |
Lease terms for residential tenants, periods | 2 years |
Westwood Plaza Shopping Center [Member] | |
Commitments and contingencies (Details) [Line Items] | |
Flood insurance, amount per incident | $ 500,000 |
Commitments and contingencies_3
Commitments and contingencies (Details) - Schedule of Minimum Fixed Lease Consideration Under Non-Cancellable $ in Thousands | Oct. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 4,864 |
2025 | 3,955 |
2026 | 3,139 |
2027 | 2,015 |
2028 | 1,024 |
Thereafter | 3,197 |
Total | $ 18,194 |
Management Agreement, Fees an_2
Management Agreement, Fees and Transactions With Related Party (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2022 | May 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Mar. 10, 2022 | |
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Fees charged to operation | $ 1,342,000 | $ 1,429,000 | $ 2,127,000 | |||
Commissions and reimbursements | 825,000 | 701,000 | 548,000 | |||
Commissions, charged to operations | $ 166,000 | 164,000 | 209,000 | |||
Equity contributions percentage | 50% | |||||
Maturity dates | 10 years | |||||
Increase aggregate amount | $ 2,000,000 | 4,000,000 | ||||
Secured loans receivable | $ 5,300,000 | |||||
Fees incurred | 307,000 | 6,388,000 | 236,500 | |||
Modification and extension | $ 21,000 | |||||
Grande Rotunda, LLC [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Ownership by parent | 60% | |||||
Ownership by noncontrolling owners | 40% | |||||
Principal amount on notes paid off | 31,000,000 | 31,000,000 | ||||
Repayment to affiliate | 3,300,000 | |||||
Rotunda Property [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Additional proceeds received | $ 129,000 | |||||
Loan commission | 4,777,000 | |||||
Westridge Square Property [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Additional proceeds received | 20,000 | |||||
Loan commission | 525,000 | |||||
Damascus Property [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Additional proceeds received | 10,000 | |||||
Loan commission | 917,000 | |||||
Westwood Hills Property [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Loan commission | 127,500 | |||||
Preakness Shopping Center [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Loan commission | 94,000 | |||||
Boulders Property [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Loan commission | 75,000 | |||||
Grande Rotunda [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Loan commission | 150,000 | |||||
WestFREIT, Corp [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Loan commission | 54,000 | |||||
Robert S. Hekemian, Jr. [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Director fee expense | 644,000 | 831,000 | 469,000 | |||
Allan Tubin [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Director fee expense | 43,000 | 40,000 | 30,000 | |||
David Hekemian [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Director fee expense | $ 76,000 | 150,000 | $ 57,000 | |||
Wayne PSC [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Pro-rata share based funding amount | $ 500,000 | |||||
H-TPKE, LLC (“H-TPKE”) [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Percentage of aggregate membership interests | 73% | |||||
H-TPKE, LLC [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Promissory note | $ 600,000 | |||||
Pro-rata share based funding amount | 300,000 | |||||
FREIT [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Ownership by parent | 40% | |||||
Promissory note | $ 400,000 | |||||
Pro-rata share based funding amount | $ 200,000 | |||||
Minimum [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Management fees equal percentage | 4% | |||||
Maximum [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Management fees equal percentage | 5% | |||||
Ownership [Member] | Wayne PSC [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Equity interest | 40% | |||||
Ownership [Member] | H-TPKE, LLC (“H-TPKE”) [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Equity interest | 60% | |||||
Line of Credit [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Sales commissions | $ 32,500 | |||||
Director [Member] | ||||||
Management Agreement, Fees and Transactions With Related Party (Details) [Line Items] | ||||||
Management fees outstanding | $ 105,000 | $ 97,000 | $ 105,000 |
Income Taxes (Details)
Income Taxes (Details) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Income Taxes [Abstract] | ||
Capital gain percentage | 100% | |
Percentage of ordinary taxable income | 92.40% |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - USD ($) | 12 Months Ended | ||||||||
Mar. 09, 2023 | Sep. 09, 2022 | Apr. 05, 2018 | Apr. 04, 2007 | Sep. 10, 1998 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Equity Incentive Plan (Details) [Line Items] | |||||||||
FREIT's number of authorized shares (in Shares) | 300,000 | 300,000 | |||||||
Cash compensation | $ 20,000 | ||||||||
Common stock par value (in Dollars per share) | $ 0.01 | $ 0.01 | |||||||
Deemed per share (in Dollars per share) | $ 15.5 | ||||||||
Award of shares (in Shares) | 1,290 | ||||||||
Shares issued (in Shares) | 1,290 | ||||||||
Exercise price (in Dollars per share) | $ 7.5 | ||||||||
Outstanding options (in Shares) | 310,740 | ||||||||
Compensation expense | $ 1,174,000 | ||||||||
Compensation expense related to stock options | $ 11,000 | 1,192,000 | $ 42,000 | ||||||
Aggregate intrinsic value of options exercisable | $ 2,000,000 | ||||||||
Plan Name 1 [Member] | |||||||||
Equity Incentive Plan (Details) [Line Items] | |||||||||
Equity incentive plan (in Shares) | 920,000 | ||||||||
FREIT's number of authorized shares (in Shares) | 920,000 | ||||||||
Equity Incentive Plan [Member] | |||||||||
Equity Incentive Plan (Details) [Line Items] | |||||||||
Common stock par value (in Dollars per share) | $ 0.01 | ||||||||
Shares issuance (in Shares) | 433,030 | ||||||||
Aggregate intrinsic value of options expected to vest | $ 117,700 | $ 184,600 | |||||||
Aggregate intrinsic value of options exercisable | $ 1,300,000 | ||||||||
Employee Stock Option [Member] | |||||||||
Equity Incentive Plan (Details) [Line Items] | |||||||||
Outstanding options (in Shares) | 8,440 | 126,140 | 310,740 | 310,740 | |||||
Unrecognized compensation cost | $ 1,000 | ||||||||
Unrecognized compensation cost, recognition period | 3 months 18 days | ||||||||
Aggregate intrinsic value of options expected to vest | $ 54,000 | ||||||||
Aggregate intrinsic value of options exercisable | $ 47,000 |
Equity Incentive Plan (Detail_2
Equity Incentive Plan (Details) - Schedule of Stock Option Activity - Share-Based Payment Arrangement, Option [Member] - $ / shares | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Equity Incentive Plan (Details) - Schedule of Stock Option Activity [Line Items] | |||
No. of Options Outstanding, Options outstanding at beginning of year | 126,140 | 310,740 | 310,740 |
Weighted Average Exercise price beginning of year (in Dollars per share) | $ 10.64 | $ 18.35 | $ 18.35 |
No. of Options Outstanding, Options granted during year | |||
Weighted Average Exercise price options granted during year (in Dollars per share) | |||
No. of Options Outstanding, Options forfeited/cancelled during year | |||
Weighted Average Exercise price forfeited/cancelled during year (in Dollars per share) | |||
No. of Options Outstanding, Options exercised during year | (117,700) | (184,600) | |
Weighted Average options exercised during year (in Dollars per share) | $ (10.74) | $ (10.99) | |
No. of Options Outstanding, Options outstanding at end of year | 8,440 | 126,140 | 310,740 |
Weighted Average Exercise price at end of year (in Dollars per share) | $ 9.21 | $ 10.64 | $ 18.35 |
No. of Options Outstandin,Options vested and expected to vest | 8,290 | 124,850 | 309,450 |
No. of Options Outstanding, Options exercisable at end of year | 7,440 | 116,540 | 292,540 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 12 Months Ended | |||
Sep. 04, 2014 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Deferred fee plan (Details) [Line Items] | ||||
Average period | 10 years | |||
Annual installments over a period | 10 years | |||
Issuance of shares (in Shares) | 274,509 | |||
Common stock vested shares (in Shares) | 274,509 | |||
Deferred Fee Plan [Member] | ||||
Deferred fee plan (Details) [Line Items] | ||||
Accrued interest rate | 9% | |||
Total payment to each participant’s | $ 2,317,000 | |||
Cumulative fees | 1,366,000 | |||
Deferred accrued interest | 951,000 | |||
Trustee fee expense | $ 26,500 | $ 1,861,000 | ||
Shares issued (in Shares) | 1,630 | 100,655 | ||
Deferred trustee fees | $ 26,500 | $ 120,000 | $ 446,000 | |
Dividends payable | $ 0 | $ 1,741,000 | $ 42,000 |
Dividends and Earnings Per Sh_2
Dividends and Earnings Per Share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Dividends and Earnings Per Share (Details) [Line Items] | |||||||||||
Dividends declared, per share | $ 0.05 | $ 0.3 | $ 0.05 | $ 0.05 | $ 9 | $ 0.1 | $ 0.1 | $ 0.45 | $ 9.2 | $ 0.25 | |
Average dilutive shares outstanding | 6,000 | 77,000 | 3,000 | ||||||||
Earnings per share | $ 0.07 | ||||||||||
Anti-dilutive shares | 268,000 | ||||||||||
FREIT Maryland [Member] | |||||||||||
Dividends and Earnings Per Share (Details) [Line Items] | |||||||||||
Dividends declared | $ 3,520,000 | $ 65,163,000 | $ 1,755,000 | ||||||||
Dividends declared, per share | $ 0.45 | $ 9.2 | $ 0.25 |
Segment Information (Details) -
Segment Information (Details) - Schedule of Segment and Related Information - Operating Segments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Real estate rental revenue: | |||
Total real estate rental revenue | $ 28,444 | $ 31,253 | $ 50,521 |
Real estate operating expenses: | |||
Total real estate operating expenses | 13,754 | 15,281 | 22,294 |
Net operating income: | |||
Total net operating income | 14,690 | 15,972 | 28,227 |
Recurring capital improvements - residential | (532) | (1,034) | (625) |
Reconciliation to consolidated net income attributable to common equity: | |||
Segment NOI | 14,690 | 15,972 | 28,227 |
Deferred rents - straight lining | (100) | 18 | (230) |
Investment income | 1,013 | 358 | 116 |
Net (loss) gain on sale of Maryland properties | (1,003) | 68,771 | |
Net realized gain on Wayne PSC interest rate swap termination | 1,415 | ||
Loss on investment in tenancy-in-common | (271) | (228) | (295) |
General and administrative expenses | (4,243) | (5,003) | (5,195) |
Depreciation | (2,944) | (3,995) | (9,300) |
Financing costs | (7,717) | (8,064) | (12,276) |
Net (loss) income | (575) | 69,244 | 1,047 |
Net loss (income) attributable to noncontrolling interests in subsidiaries | 1,335 | (23,252) | (120) |
Net income attributable to common equity | 760 | 45,992 | 927 |
Commercial [Member] | |||
Real estate rental revenue: | |||
Total real estate rental revenue | 8,789 | 10,626 | 23,547 |
Real estate operating expenses: | |||
Total real estate operating expenses | 5,080 | 6,427 | 11,223 |
Net operating income: | |||
Total net operating income | 3,709 | 4,199 | 12,324 |
Residential [Member] | |||
Real estate rental revenue: | |||
Total real estate rental revenue | 19,655 | 20,627 | 26,974 |
Real estate operating expenses: | |||
Total real estate operating expenses | 8,674 | 8,854 | 11,071 |
Net operating income: | |||
Total net operating income | $ 10,981 | $ 11,773 | $ 15,903 |
Termination of Purchase and S_2
Termination of Purchase and Sale Agreement (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 08, 2022 | Feb. 04, 2022 | Dec. 22, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | Jul. 19, 2023 | Jul. 22, 2022 | Dec. 30, 2021 | Nov. 22, 2021 | Sep. 30, 2020 | May 06, 2020 | Jan. 14, 2020 | |
Termination of Purchase and Sale Agreement (Details) [Line Items] | |||||||||||||
Escrow deposit amount | $ 613,000 | $ 1,250,000 | $ 15,526,731 | ||||||||||
Liquidation amount | 15,000,000 | ||||||||||||
Escrow agent | 15,000,000 | ||||||||||||
Escrow returned | $ 15,000,000 | ||||||||||||
Order awarding sellers | $ 3,420,422.88 | $ 3,420,422.88 | |||||||||||
Liquidation damage amount | $ 15,000,000 | ||||||||||||
Investment trust | $ 3,420,000 | ||||||||||||
Additional amount | 3,420,000 | $ 7,500,000 | $ 250,000 | ||||||||||
Purchase agreement | 3,420,000 | ||||||||||||
Attorney’s fees | 3,420,000 | ||||||||||||
Incurred amount | 966,000 | $ 1,170,000 | $ 2,282,000 | ||||||||||
Purchase and Sale Agreement [Member] | |||||||||||||
Termination of Purchase and Sale Agreement (Details) [Line Items] | |||||||||||||
Escrow deposit amount | $ 15,000,000 | ||||||||||||
Escrow agent to release the deposit | 15,000,000 | ||||||||||||
Purchase and Sale Agreement [Member] | |||||||||||||
Termination of Purchase and Sale Agreement (Details) [Line Items] | |||||||||||||
Escrow deposit amount | $ 15,000,000 | ||||||||||||
Purchase and Sale Agreement [Member] | Six Apartment Properties [Member] | |||||||||||||
Termination of Purchase and Sale Agreement (Details) [Line Items] | |||||||||||||
Ownership interests | 100% | ||||||||||||
Escrow deposit amount | $ 15,000,000 |
Covid-19 Pandemic (Details)
Covid-19 Pandemic (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Covid-19 Pandemic (Details) [Line Items] | |||
Rental revenue deemed uncollectible | $ 600,000 | $ 1,300,000 | |
Commercial tenants deferrals | 0 | 132,000 | |
Rent abatements | 9,000 | 239,000 | |
Deferred payments | $ 1,013,000 | ||
Amount repaid | $ 623,000 | 623,000 | |
FREIT [Member] | |||
Covid-19 Pandemic (Details) [Line Items] | |||
Rental revenue deemed uncollectible | 300,000 | 800,000 | |
Commercial tenants deferrals | 0 | 81,000 | |
Rent abatements | $ 9,000 | 158,000 | |
Commercial Properties [Member] | |||
Covid-19 Pandemic (Details) [Line Items] | |||
Security deposit as commercial outstanding receivables due | $ 397,000 |
Stockholder Rights Plan (Detail
Stockholder Rights Plan (Details) - $ / shares | 12 Months Ended | |
Oct. 31, 2023 | Oct. 31, 2022 | |
Stockholder Rights Plan (Details) [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, par value | 0.01 | $ 0.01 |
Exercise price | 95 | |
Common Stock [Member] | ||
Stockholder Rights Plan (Details) [Line Items] | ||
Common stock, par value | 0.01 | |
Preferred Stock [Member] | ||
Stockholder Rights Plan (Details) [Line Items] | ||
Preferred stock, par value | $ 0.01 | |
Acquiring Person [Member] | ||
Stockholder Rights Plan (Details) [Line Items] | ||
Ownership percentage | 10% |
Kmart Lease (Details)
Kmart Lease (Details) | 12 Months Ended | |
Oct. 31, 2023 USD ($) $ / ft² | Jun. 24, 2023 ft² | |
Kmart Lease (Details) [Line Items] | ||
Square foot (in Square Feet) | ft² | 84,254 | |
Rent payments per square foot (in Dollars per Square Foot) | $ / ft² | 4 | |
Annual rent payment (in Dollars) | $ | $ 336,720 | |
Re-lease years | 14 years | |
October 31, 2027 [Member] | ||
Kmart Lease (Details) [Line Items] | ||
Renewal term | 5 years |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 09, 2022 | Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | [1] | Jul. 31, 2022 | [2] | Apr. 30, 2022 | [3] | Jan. 31, 2022 | [4] | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Selected Quarterly Financial Data (Unaudited) (Details) [Line Items] | ||||||||||||||||
Gain from sales (in Dollars) | $ 70,000,000 | $ 1,200,000 | ||||||||||||||
Income (loss) from discontinued operations (in Dollars) | $ 46,300,000 | $ 700,000 | ||||||||||||||
Earnings per share basic | $ 0.17 | $ 0.09 | $ (0.06) | $ 0.01 | $ 0.06 | $ (0.08) | $ 0.16 | $ (0.05) | $ 6.51 | $ 0.1 | $ 6.52 | $ 0.13 | ||||
Earnings per share diluted | $ 0.17 | $ (0.08) | $ 0.16 | $ (0.05) | $ 6.45 | 0.1 | 6.45 | $ 0.13 | ||||||||
Stock compensation expense (in Dollars) | $ 1,200,000 | |||||||||||||||
Maryland Properties [Member] | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) (Details) [Line Items] | ||||||||||||||||
Earnings per share basic | 6.58 | 0.1 | ||||||||||||||
Earnings per share diluted | $ 6.52 | $ 0.1 | ||||||||||||||
Wayne PSC [Member] | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) (Details) [Line Items] | ||||||||||||||||
Gain from sales (in Dollars) | $ 1,400,000 | |||||||||||||||
Income (loss) from discontinued operations (in Dollars) | $ 0.6 | |||||||||||||||
Earnings per share basic | $ 0.08 | |||||||||||||||
Earnings per share diluted | $ 0.08 | |||||||||||||||
[1]Includes stock compensation expense of approximately $1.2 million for the incremental compensation cost attributed to the revaluation of the stock options modified on September 9, 2022 ($0.17 per share basic and diluted).[2]Includes $1.4 million realized gain on Wayne PSC interest rate swap termination with a consolidated impact to FREIT of approximately $0.6 million ($0.08 per share basic and diluted).[3]Includes $1.2 million reduction in gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $0.7 million ($0.10 per share basic and diluted).[4]Includes $70 million gain on sale of the Maryland properties with a consolidated impact to FREIT of approximately $46.3 million ($6.58 per share basic and $6.52 per share diluted). |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) (Details) - Schedule of Quarterly Results of Operations - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 09, 2022 | Oct. 31, 2023 | Jul. 31, 2023 | Apr. 30, 2023 | Jan. 31, 2023 | Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |||||
Schedule of Quarterly Results of Operations [Abstract] | ||||||||||||||||
Revenue | $ 7,153 | $ 7,296 | $ 6,916 | $ 6,979 | $ 7,048 | $ 6,959 | $ 6,615 | $ 10,649 | $ 28,344 | $ 31,271 | $ 50,291 | |||||
Expenses, net | 6,642 | 8,142 | 7,202 | 6,933 | 7,770 | [1] | 5,145 | [2] | 7,616 | [3] | (58,504) | [4] | 28,919 | (37,973) | ||
Net income (loss) | 511 | (846) | (286) | 46 | $ (722) | $ 1,814 | $ (1,001) | $ 69,153 | $ (575) | $ 69,244 | $ 1,047 | |||||
Earnings (Loss) per share - diluted (in Dollars per share) | $ 0.17 | $ (0.08) | [1] | $ 0.16 | [2] | $ (0.05) | [3] | $ 6.45 | [4] | $ 0.1 | $ 6.45 | $ 0.13 | ||||
Net (income) loss attributable to noncontrolling interests in subsidiaries | 145 | 434 | 383 | 373 | $ 168 | $ (693) | [2] | $ 649 | [3] | $ (23,376) | [4] | $ 1,335 | $ (23,252) | $ (120) | ||
Net income (loss) attributable to common equity | $ 656 | $ (412) | $ 97 | $ 419 | $ (554) | $ 1,121 | $ (352) | $ 45,777 | $ 760 | $ 45,992 | $ 927 | |||||
Earnings (Loss) per share - basic (in Dollars per share) | $ 0.17 | $ 0.09 | $ (0.06) | $ 0.01 | $ 0.06 | $ (0.08) | [1] | $ 0.16 | [2] | $ (0.05) | [3] | $ 6.51 | [4] | $ 0.1 | $ 6.52 | $ 0.13 |
Dividends declared per share (in Dollars per share) | $ 0.05 | $ 0.3 | $ 0.05 | $ 0.05 | $ 9 | $ 0.1 | $ 0.1 | $ 0.45 | $ 9.2 | $ 0.25 | ||||||
[1]Includes stock compensation expense of approximately $1.2 million for the incremental compensation cost attributed to the revaluation of the stock options modified on September 9, 2022 ($0.17 per share basic and diluted).[2]Includes $1.4 million realized gain on Wayne PSC interest rate swap termination with a consolidated impact to FREIT of approximately $0.6 million ($0.08 per share basic and diluted).[3]Includes $1.2 million reduction in gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $0.7 million ($0.10 per share basic and diluted).[4]Includes $70 million gain on sale of the Maryland properties with a consolidated impact to FREIT of approximately $46.3 million ($6.58 per share basic and $6.52 per share diluted). |
SCHEDULE III _ REAL ESTATE AN_3
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) $ in Millions | Oct. 31, 2023 USD ($) |
Regency Club [Member] | |
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) [Line Items] | |
Federal income tax | $ 13.8 |
Station Place [Member] | |
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) [Line Items] | |
Federal income tax | $ 4.2 |
SCHEDULE III _ REAL ESTATE AN_4
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - Schedule of Real Estate and Accumulated Depreciation $ in Thousands | 12 Months Ended | |
Oct. 31, 2023 USD ($) | ||
Residential Properties: | ||
Accumulated Depreciation | $ 62,344 | |
Encum-brances | 138,179 | |
Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 3,081 | |
Date of Construction | 1966 | |
Date Acquired | 1975 | |
Encum-brances | $ 9,022 | |
Steuben Arms, River Edge, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Steuben Arms, River Edge, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 6,222 | |
Date of Construction | 1964 | |
Date Acquired | 1965 | |
Encum-brances | $ 28,815 | |
Berdan Court, Wayne, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Berdan Court, Wayne, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 10,950 | |
Date Acquired | 1994 | |
Encum-brances | $ 25,450 | |
Westwood Hills, Westwood, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date of Construction | 1965 | |
Life on Which Depreciation is Computed | 7 | |
Westwood Hills, Westwood, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date of Construction | 70 | |
Life on Which Depreciation is Computed | 39 | |
Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 7,493 | |
Encum-brances | $ 7,500 | |
Boulders - Rockaway, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date of Construction | 2005 | |
Date Acquired | 1963 | |
Life on Which Depreciation is Computed | 7 | |
Boulders - Rockaway, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date of Construction | 2006 | |
Date Acquired | 1964 | |
Life on Which Depreciation is Computed | 40 | |
Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 4,719 | |
Date of Construction | 2003 | |
Date Acquired | 2014 | |
Encum-brances | $ 14,254 | |
Regency Club - Middletown, NY [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Regency Club - Middletown, NY [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 1,596 | |
Date of Construction | 2015 | |
Date Acquired | 2017 | |
Encum-brances | $ 11,521 | |
Station Place - Red Bank, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Station Place - Red Bank, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 4,954 | |
Date of Construction | 1963/75/97 | |
Date Acquired | 1966 | |
Encum-brances | ||
Franklin Crossing, Franklin Lakes, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Franklin Crossing, Franklin Lakes, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 39.5 | |
Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 169 | |
Date of Construction | 1940 | |
Date Acquired | 1962 | |
Encum-brances | ||
Glen Rock, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Glen Rock, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 25 | |
Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 8,631 | |
Date of Construction | 1981 | |
Date Acquired | 1988 | |
Encum-brances | $ 16,617 | |
Westridge Square S/C, Frederick, MD [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Westridge Square S/C, Frederick, MD [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 31.5 | |
Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 14,529 | |
Date of Construction | 1955/89/00 | |
Date Acquired | 2002 | |
Encum-brances | $ 25,000 | |
Preakness S/C, Wayne, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Preakness S/C, Wayne, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 39.5 | |
Land Leased [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Encum-brances | ||
Land Leased [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date Acquired | 1963 | |
Land Leased [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date Acquired | 1964 | |
Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Encum-brances | ||
Franklin Lakes, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date Acquired | 1966 | |
Franklin Lakes, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date Acquired | 93 | |
Wayne, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Date Acquired | 2002 | |
Encum-brances | ||
Rockaway, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Encum-brances | ||
Rockaway, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date Acquired | 1963 | |
Rockaway, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date Acquired | 1964 | |
Column C [Member] | ||
Residential Properties: | ||
Land | $ 34,606 | |
Buildings and Improvements | 74,743 | |
Column C [Member] | Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Land | 364 | |
Buildings and Improvements | 1,773 | |
Column C [Member] | Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 250 | |
Buildings and Improvements | 2,206 | |
Column C [Member] | Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Land | 3,849 | |
Buildings and Improvements | 11,546 | |
Column C [Member] | Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 1,632 | |
Buildings and Improvements | ||
Column C [Member] | Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Land | 2,833 | |
Buildings and Improvements | 17,792 | |
Column C [Member] | Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Land | 8,793 | |
Buildings and Improvements | 10,757 | |
Column C [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 29 | |
Buildings and Improvements | ||
Column C [Member] | Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Land | 12 | |
Buildings and Improvements | 36 | |
Column C [Member] | Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Land | 6,889 | |
Buildings and Improvements | 6,416 | |
Column C [Member] | Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 9,280 | |
Buildings and Improvements | 24,217 | |
Column C [Member] | Land Leased [Member] | ||
Residential Properties: | ||
Land | 114 | |
Column C [Member] | Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 224 | |
Buildings and Improvements | ||
Column C [Member] | Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 286 | |
Buildings and Improvements | ||
Column C [Member] | Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 51 | |
Buildings and Improvements | ||
Column D [Member] | ||
Residential Properties: | ||
Land | 6,612 | |
Improve-ments | 40,898 | |
Carrying Costs | ||
Column D [Member] | Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 1,805 | |
Column D [Member] | Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 5,310 | |
Column D [Member] | Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 3,132 | |
Column D [Member] | Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 3,386 | |
Improve-ments | 16,313 | |
Column D [Member] | Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 1,266 | |
Column D [Member] | Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 28 | |
Column D [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 3,382 | |
Improve-ments | 7,611 | |
Column D [Member] | Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 164 | |
Column D [Member] | Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 2,581 | |
Column D [Member] | Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 2,688 | |
Column D [Member] | Land Leased [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | ||
Column D [Member] | Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | (156) | |
Improve-ments | ||
Carrying Costs | ||
Column D [Member] | Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | ||
Carrying Costs | ||
Column D [Member] | Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | ||
Column E [Member] | ||
Residential Properties: | ||
Land | 41,218 | |
Buildings and Improvements | 115,641 | |
Total | 156,859 | [1] |
Column E [Member] | Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Land | 364 | |
Buildings and Improvements | 3,578 | |
Total | 3,942 | [1] |
Column E [Member] | Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 250 | |
Buildings and Improvements | 7,516 | |
Total | 7,766 | [1] |
Column E [Member] | Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Land | 3,849 | |
Buildings and Improvements | 14,678 | |
Total | 18,527 | [1] |
Column E [Member] | Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 5,018 | |
Buildings and Improvements | 16,313 | |
Total | 21,331 | [1] |
Column E [Member] | Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Land | 2,833 | |
Buildings and Improvements | 19,058 | |
Total | 21,891 | [1] |
Column E [Member] | Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Land | 8,793 | |
Buildings and Improvements | 10,785 | |
Total | 19,578 | [1] |
Column E [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 3,411 | |
Buildings and Improvements | 7,611 | |
Total | 11,022 | [1] |
Column E [Member] | Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Land | 12 | |
Buildings and Improvements | 200 | |
Total | 212 | [1] |
Column E [Member] | Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Land | 6,889 | |
Buildings and Improvements | 8,997 | |
Total | 15,886 | [1] |
Column E [Member] | Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 9,280 | |
Buildings and Improvements | 26,905 | |
Total | 36,185 | [1] |
Column E [Member] | Land Leased [Member] | ||
Residential Properties: | ||
Land | 114 | |
Buildings and Improvements | ||
Total | 114 | [1] |
Column E [Member] | Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 68 | |
Buildings and Improvements | ||
Total | 68 | [1] |
Column E [Member] | Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 286 | |
Buildings and Improvements | ||
Total | 286 | [1] |
Column E [Member] | Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 51 | |
Buildings and Improvements | ||
Total | $ 51 | [1] |
[1]Total cost for each property is the same for federal income tax purposes, with the exception of the Regency Club and Station Place whose cost for federal income tax purposes is approximately $13.8 million and $4.2 million, respectively. |
SCHEDULE III _ REAL ESTATE AN_5
SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - Schedule of Reconciliation of Real Estate and Accumulated Depreciation - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2023 | Oct. 31, 2022 | Oct. 31, 2021 | |
Real Estate [Member] | |||
Real estate: | |||
Balance, Beginning of year | $ 156,223 | $ 386,920 | $ 385,853 |
Additions - Buildings and improvements | 896 | 1,474 | 1,883 |
Disposals - Buildings and improvements | (260) | (232) | (816) |
Deconsolidation of subsidiary | (231,939) | ||
Balance, end of year | 156,859 | 156,223 | 386,920 |
Accumulated Depreciation [Member] | |||
Real estate: | |||
Balance, Beginning of year | 59,660 | 115,621 | 107,137 |
Tenant improvement write-off due to COVID-19 - Charged to operating expenses | 2,944 | 3,995 | 9,300 |
Disposals - Buildings and improvements | (260) | (232) | (816) |
Deconsolidation of subsidiary | (59,724) | ||
Balance, end of year | $ 62,344 | $ 59,660 | $ 115,621 |