UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended ~~January 31,~~April 30, 2022
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from __________________ to ____________________
	Commission File No. 000-25043

FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC.
(Exact name of registrant as specified in its charter)
Maryland	22-1697095
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
505 Main Street, Hackensack, New Jersey	07601
(Address of principal executive offices)	(Zip Code)
201-488-6400
(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

	Title of each class		Trading Symbol(s)		Name of each exchange on which registered
	Common stock, par value $0.01 per share		FREVS		OTC Pink Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ☐	Accelerated Filer ☐	Non-Accelerated Filer ☒	Smaller Reporting Company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of ~~March 17,~~June 14, 2022, the number of shares of common stock outstanding was 6,863,744.

Page 2

FIRST REAL ESTATE

INVESTMENT TRUST OF NEW JERSEY, INC.

INDEX



Part I:Financial Information	Page
Item 1:Unaudited Condensed Consolidated Financial Statements
a.)Condensed Consolidated Balance Sheets as of ~~January 31,~~April 30, 2022 and October 31, 2021;	3
b.)Condensed Consolidated Statements of ~~Income~~Operations for the Six and Three Months Ended ~~January 31, 2022~~ April 30, 2022 and 2021;	4
c.)Condensed Consolidated Statements of Comprehensive Income for the Six and Three Months ~~Ended~~ ~~January 31,~~Ended April 30, 2022 and 2021;	5
d.)Condensed Consolidated Statements of Equity for the Six and Three Months Ended ~~January 31, 2022~~April 30, 2022 and 2021;	~~6-7~~6
e.)Condensed Consolidated Statements of Cash Flows for the ~~Three~~Six Months Ended ~~January 31,~~April 30, 2022 ~~2022~~ and 2021;	8
f.)Notes to Condensed Consolidated Financial Statements.	9

Item 2:Management’s Discussion and Analysis of Financial Condition and Results of Operations	2021

Item 3:Quantitative and Qualitative Disclosures About Market Risk	3234

Item 4:Controls and Procedures	3234


Part II:Other Information

Item 1:Legal Proceedings	33

~~Item 1A:Risk Factors~~	35

Item 6:1A:~~Exhibits~~Risk Factors	3536

Item 6:Exhibits	36

Signatures	3536

Index

Page 3

Part I: Financial Information

Item 1: Unaudited Condensed Consolidated Financial Statements

FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	January 31, 2022			October 31, 2021			April 30, 2022			October 31, 2021
	(In Thousands, Except Share and Per Share Amounts)						(In Thousands, Except Share and Per Share Amounts)
ASSETS

Real estate, at cost, net of accumulated depreciation	$	96,999		$	270,634		$	96,513		$	270,634
Construction in progress		668			665			678			665
Cash and cash equivalents		95,438			35,891			95,748			35,891
Investment in tenancy-in-common		18,902			19,383			18,870			19,383
Tenants' security accounts		1,062			1,340
Tenants’ security accounts								1,030			1,340
Receivables arising from straight-lining of rents		762			3,747			711			3,747
Accounts receivable, net of allowance for doubtful accounts of $1,327 and $966 as of January 31, 2022 and October 31, 2021, respectively		754			1,622
Accounts receivable, net of allowance for doubtful accounts of $1,260 and $966 as of April 30, 2022 and October 31, 2021, respectively								736			1,622
Secured loans receivable (related party)		221			5,292			222			5,292
Funds held in post-closing escrow		9,337			0-			6,251			0-
Prepaid expenses and other assets		3,059			5,493			2,710			5,493
Deferred charges, net		193			2,038			204			2,038
Interest rate swap contract		71			0-
Interest rate swap contracts								1,493			0-
Total Assets	$	227,466		$	346,105		$	225,166		$	346,105


LIABILITIES AND EQUITY

Liabilities:
Mortgages payable, including deferred interest of $358 as of January 31, 2022 and October 31, 2021	$	137,774		$	301,276
Mortgages payable, including deferred interest of $358 as of April 30, 2022 and October 31, 2021							$	137,190		$	301,276
Less unamortized debt issuance costs		1,283			1,400			1,132			1,400
Mortgages payable, net		136,491			299,876			136,058			299,876

Due to affiliate		0-			3,252			0-			3,252
Deferred director compensation payable		2,475			2,475			2,317			2,475
Accounts payable and accrued expenses		2,804			2,375			1,613			2,375
Dividends payable		686			686			686			686
Tenants' security deposits		1,305			2,039
Tenants’ security deposits								1,303			2,039
Deferred revenue		559			1,143			462			1,143
Interest rate cap and swap contracts		1,117			2,308			0-			2,308
Total Liabilities		145,437			314,154			142,439			314,154

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, at January 31, 2022 and October 31, 2021		0-			0-
5,000,000 and 0 shares authorized and issued at April 30, 2022 and October 31, 2021, respectively								0-			0-
Common stock with par value of $0.01 per share:
20,000,000 shares authorized at January 31, 2022 and October 31, 2021; 6,860,048 shares issued plus 178,419 and 175,923 vested share units granted to Directors at January 31, 2022 and October 31, 2021, respectively		71			71
20,000,000 shares authorized at April 30, 2022 and October 31, 2021; 6,863,744 and 6,860,048 shares issued plus 176,307 and 175,923 vested share units granted to Directors at April 30, 2022 and October 31, 2021, respectively								71			71
Additional paid-in-capital		25,622			25,556			25,666			25,556
Retained earnings		58,037			12,963			56,981			12,963
Accumulated other comprehensive loss		(1,089	)		(2,017	)
Accumulated other comprehensive income (loss)								769			(2,017	)
Total Common Equity		82,641			36,573			83,487			36,573
Noncontrolling interests in subsidiaries		(612	)		(4,622	)		(760	)		(4,622	)
Total Equity		82,029			31,951			82,727			31,951
Total Liabilities and Equity	$	227,466		$	346,105		$	225,166		$	346,105


	Three Months Ended January 31,						Six Months Ended April 30,						Three Months Ended April 30,
	2022			2021			2022			2021			2022			2021
	(In Thousands Except Per Share Amounts)						(In Thousands Except Per Share Amounts)						(In Thousands Except Per Share Amounts)
Revenue:
Rental income	$	9,763		$	10,850		$	15,778		$	21,915		$	6,015		$	11,065
Reimbursements		757			1,544			1,255			3,197			498			1,653
Sundry income		129			360			231			446			102			86
Total revenue		10,649			12,754			17,264			25,558			6,615			12,804

Expenses:
Operating expenses		4,293			4,108			6,696			8,885			2,403			4,777
Management fees		497			526			811			1,087			314			561
Real estate taxes		1,863			1,917			3,295			3,959			1,432			2,042
Depreciation		1,820			2,295			2,534			4,633			714			2,338
Total expenses		8,473			8,846			13,336			18,564			4,863			9,718

Operating income		2,176			3,908			3,928			6,994			1,752			3,086

Investment income		26			30			64			59			38			29
Loss on investment in tenancy-in-common		(124	)		(27	)		(156	)		(145	)		(32	)		(118	)
Net gain on sale of Maryland properties		70,003			0-
Net gain (loss) on sale of Maryland properties								68,771			0-			(1,232	)		0-
Interest expense including amortization of deferred financing costs		(2,928	)		(3,132	)		(4,455	)		(6,192	)		(1,527	)		(3,060	)
Net income		69,153			779
Net income (loss)								68,152			716			(1,001	)		(63	)

Net income attributable to noncontrolling interests in subsidiaries		(23,376	)		(221	)
Net income attributable to common equity	$	45,777		$	558
Net (income) loss attributable to noncontrolling interests in subsidiaries								(22,727	)		(149	)		649			72
Net income (loss) attributable to common equity							$	45,425		$	567		$	(352	)	$	9

Earnings per share:
Earnings (Loss) per share:
Basic	$	6.51		$	0.08		$	6.46		$	0.08		$	(0.05	)	$	0.00
Diluted	$	6.45		$	0.08		$	6.40		$	0.08		$	(0.05	)	$	0.00

Weighted average shares outstanding:
Basic		7,036			7,009			7,037			7,012			7,038			7,016
Diluted		7,099			7,009			7,108			7,012			7,038			7,018

	Three Months Ended January 31,						Six Months Ended April 30,						Three Months Ended April 30,
	2022			2021			2022			2021			2022			2021
	(In Thousands of Dollars)						(In Thousands of Dollars)						(In Thousands of Dollars)

Net income	$	69,153		$	779
Net income (loss)							$	68,152		$	716		$	(1,001	)	$	(63	)

Other comprehensive income:
Unrealized gain on interest rate cap and swap contracts before reclassifications		756			189			3,081			1,052			2,325			863
Amount reclassified from accumulated other comprehensive loss to interest expense		506			309
Amount reclassified from accumulated other comprehensive income to interest expense								720			623			214			314
Net unrealized gain on interest rate cap and swap contracts		1,262			498			3,801			1,675			2,539			1,177
Comprehensive income		70,415			1,277			71,953			2,391			1,538			1,114

Net income attributable to noncontrolling interests in subsidiaries		(23,376	)		(221	)
Net (income) loss attributable to noncontrolling interests in subsidiaries								(22,727	)		(149	)		649			72
Other comprehensive income:
Unrealized gain on interest rate cap and swap contracts attributable to noncontrolling interests in subsidiaries		(334	)		(111	)		(1,015	)		(431	)		(681	)		(320	)
Comprehensive income attributable to noncontrolling interests in subsidiaries		(23,710	)		(332	)		(23,742	)		(580	)		(32	)		(248	)

Comprehensive income attributable to common equity	$	46,705		$	945		$	48,211		$	1,811		$	1,506		$	866

	Common Equity																					Common Equity
	Common Stock				Additional Paid-In-		Retained			Accumulated Other Comprehensive			Total Common			Noncontrolling Interests in			Total			Common Stock				Additional Paid-In-		Retained			Accumulated Other Comprehensive			Total Common			Noncontrolling Interests in			Total
	Shares		Amount		Capital		Earnings			(Loss) Income			Equity			Subsidiaries			Equity			Shares		Amount		Capital		Earnings			(Loss) Income			Equity			Subsidiaries			Equity
	(In Thousands of Dollars, Except Per Share Amounts))																					(In Thousands of Dollars, Except Per Share Amounts)

Balance at October 31, 2021		7,036	$	71	$	25,556	$	12,963		$	(2,017	)	$	36,573		$	(4,622	)	$	31,951			7,036	$	71	$	25,556	$	12,963		$	(2,017	)	$	36,573		$	(4,622	)	$	31,951

Stock based compensation expense						5								5						5							5								5						5

Vested share units granted to Directors, including $17 in dividends declared payable in share units ($0.10 per share)		2				61								61						61			2				61								61						61

Distributions to noncontrolling interests in subsidiaries														-			(19,700	)		(19,700	)														0-			(19,700	)		(19,700	)

Net income								45,777						45,777			23,376			69,153									45,777						45,777			23,376			69,153

Dividends declared, including $17 payable in share units ($0.10 per share)								(703	)					(703	)					(703	)								(703	)					(703	)					(703	)

Net unrealized gain on interest rate swap contracts											928			928			334			1,262												928			928			334			1,262

Balance at January 31, 2022		7,038	$	71	$	25,622	$	58,037		$	(1,089	)	$	82,641		$	(612	)	$	82,029			7,038		71		25,622		58,037			(1,089	)		82,641			(612	)		82,029

Stock based compensation expense																											5								5						5

Vested share units granted to Directors, including $18 in dividends declared payable in share units ($0.10 per share)																							2				39								39						39

Distributions to noncontrolling interests in subsidiaries																																			0-			(180	)		(180	)

Net loss																													(352	)					(352	)		(649	)		(1,001	)

Dividends declared, including $18 payable in share units ($0.10 per share)																													(704	)					(704	)					(704	)

Net unrealized gain on interest rate swap contracts																																1,858			1,858			681			2,539

Balance at April 30, 2022																							7,040	$	71	$	25,666	$	56,981		$	769		$	83,487		$	(760	)	$	82,727

	Common Equity																								Common Equity
	Beneficial Interest				Treasury Shares at Cost								Accumulated Other			Total			Noncontrolling						Beneficial Interest						Treasury Shares at Cost						Retained			Accumulated Other Comprehensive			Total Common			Noncontrolling Interests in			Total
	Shares		Amount		Shares		Amount			Retained Earnings			Comprehensive (Loss) Income			Common Equity			Interests in Subsidiaries			Total Equity			Shares			Amount			Shares			Amount			Earnings			Loss			Equity			Subsidiaries			Equity
	(In Thousands of Dollars, Except Per Share Amounts)																								(In Thousands of Dollars, Except Per Share Amounts)

Balance at October 31, 2020		7,145	$	27,960		137	$	(2,863	)	$	13,791		$	(3,986	)	$	34,902		$	(4,039	)	$	30,863			7,145		$	27,960			137		$	(2,863	)	$	13,791		$	(3,986	)	$	34,902		$	(4,039	)	$	30,863

Stock based compensation expense				12													12						12						12															12						12

Vested share units granted to Directors, including $8 in dividends declared payable in share units ($0.05 per share)		7		118													118						118			7			118															118						118

Net income											558						558			221			779															558						558			221			779

Dividends declared, including $8 payable in share units ($0.05 per share)											(350	)					(350	)					(350	)														(350	)					(350	)					(350	)

Net unrealized gain on interest rate cap and swap contracts														387			387			111			498																		387			387			111			498

Balance at January 31, 2021		7,152	$	28,090		137	$	(2,863	)	$	13,999		$	(3,599	)	$	35,627		$	(3,707	)	$	31,920			7,152			28,090			137			(2,863	)		13,999			(3,599	)		35,627			(3,707	)		31,920

Stock based compensation expense																													12															12						12

Vested share units granted to Directors, including $8 in dividends declared payable in share units ($0.05 per share)																										7			113															113						113

Vested share units issued to retired Director*																										(4	)		(72	)		(4	)	$	72									0-						0-

Distributions to noncontrolling interests																																												-			(510	)		(510	)

Net income (loss)																																						9						9			(72	)		(63	)

Dividends declared, including $8 payable in share units ($0.05 per share)																																						(350	)					(350	)					(350	)

Net unrealized gain on interest rate cap and swap contracts																																									857			857			320			1,177

Balance at April 30, 2021																										7,155		$	28,143			133		$	(2,791	)	$	13,658		$	(2,742	)	$	36,268		$	(3,969	)	$	32,299

* Represents the issuance of treasury shares to retired Director for share units earned.

		Three Months Ended							Six Months Ended
		January 31,							April 30,
		2022			2021				2022			2021
		(In Thousands of Dollars)							(In Thousands of Dollars)
Operating activities:
Net income		$	69,153		$	779			$	68,152		$	716
Adjustments to reconcile net income to net cash provided by operating activities:
Net gain on sale of Maryland properties			(70,003	)		0-				(68,771	)		0-
Depreciation			1,820			2,295				2,534			4,633
Amortization			434			404				602			800
Stock based compensation expense			5			12				10			24
Director fees and related interest paid in stock units			44			110				65			215
Loss on investment in tenancy-in-common			124			27				156			145
Deferred rents - straight line rent			10			206				61			213
Deferred real estate tax appeal fees			35			0-				35			35
Bad debt expense			408			171				377			295
Changes in operating assets and liabilities:
Tenants' security accounts			(734	)		(46	)			(736	)		(41	)
Accounts receivable, prepaid expenses and other assets			2,139			548				2,377			1,565
Accounts payable, accrued expenses and deferred director compensation payable			91			728				(1,214	)		223
Deferred revenue			(584	)		(115	)			(681	)		(135	)
Due to affiliate - accrued interest			(47	)		44				(47	)		84
Deferred interest on mortgages			0-			(2	)			0-			(2	)
Net cash provided by operating activities			2,895			5,161				2,920			8,770
Investing activities:
Proceeds from sale of Maryland properties, net			247,412			0-				246,089			0-
Proceeds from payment of secured loans receivable inclusive of accrued interest			5,094			0-				5,094			0-
Capital improvements - existing properties			(485	)		(409	)			(676	)		(617	)
Deferred leasing costs			(60	)		(65	)			(88	)		(143	)
Distribution from investment in tenancy-in-common			357			0-				357			423
Net cash provided by (used in) investing activities			252,318			(474	)			250,776			(337	)
Financing activities:
Repayment of mortgages			(171,002	)		(969	)			(171,586	)		(2,972	)
Proceeds from mortgage loan refinancing			7,500			0-				7,500			0-
Deferred financing costs			(246	)		(73	)			(246	)		(640	)
Due to affiliate - loan repayment			(3,205	)		0-				(3,205	)		(800	)
Dividends paid			(686	)		0-				(1,372	)		(342	)
Distributions to noncontrolling interests in subsidiaries			(19,700	)		0-				(19,880	)		(510	)
Net cash used in financing activities			(187,339	)		(1,042	)			(188,789	)		(5,264	)
Net increase in cash, cash equivalents and restricted cash			67,874			3,645				64,907			3,169
Cash, cash equivalents and restricted cash, beginning of period			39,045			39,517				39,045			39,517
Cash, cash equivalents and restricted cash, end of period		$	106,919		$	43,162			$	103,952		$	42,686

Supplemental disclosure of cash flow data:
Interest paid		$	2,525		$	2,472			$	3,900		$	5,508

Supplemental schedule of non cash activities:
Operating activities:
Commercial tenant security deposits applied to accounts receivable		$	0-		$	18			$	0-		$	15
Investing activities:
Accrued transactional costs for sales of Maryland properties		$	407		$	0-
Accrued transactional costs for sales of Maryland Properties									$	326		$	0-
Accrued capital expenditures, construction costs and pre-development costs		$	58		$	75			$	93		$	345
Financing activities:
Dividends declared but not paid		$	686		$	342			$	686		$	342
Dividends paid in share units		$	17		$	8			$	35		$	16
Vested share units issued to consultant and retired director									$	0-		$	72

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:							The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:

Cash and cash equivalents		$	95,438		$	39,788			$	95,748		$	38,627
Tenants' security accounts			1,062			1,451				1,030			1,395
Funds held in post-closing escrow			9,337			0-				6,251			0-
Mortgage escrows (included in prepaid expenses and other assets)			1,082			1,923				923			2,664
Total cash, cash equivalents and restricted cash		$	106,919		$	43,162			$	103,952		$	42,686

First Real Estate Investment Trust of New Jersey ~~(“FREIT”)~~ was organized on November 1, 1961 as a New Jersey Business Trust. On July 1, 2021, ~~FREIT~~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 ~~FREIT’s~~First Real Estate Investment Trust of New Jersey’s affairs from New Jersey law to Maryland law and was accomplished by the merger of ~~FREIT~~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 Maryland”~~FREIT”, “Trust”, “us”, “we”, “our” or the “Company”), a Maryland corporation. As a result of the Reincorporation, the separate existence of ~~FREIT~~First Real Estate Investment Trust of New Jersey ceased and FREIT ~~Maryland~~ succeeded to all the business, properties, assets and liabilities of ~~FREIT.~~First Real Estate Investment Trust of New Jersey. Holders of shares of beneficial interest in ~~FREIT~~First Real Estate Investment Trust of New Jersey received one newly issued share of common stock of FREIT ~~Maryland~~ for each share of ~~FREIT that they own,~~First Real Estate Investment Trust of New Jersey owned by them, without any action of stockholders required and all treasury stock held by ~~FREIT~~First Real Estate Investment Trust of New Jersey was retired.

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

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

The consolidated results of operations for the six and three-month ~~period~~periods ended ~~January 31,~~April 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other period. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in ~~the~~FREIT’s Annual Report on Form 10-K for the year ended October 31, ~~2021 of FREIT Maryland.~~2021.

Certain prior year cash flow line items have been reclassified to conform to the current year presentation.

In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04 “Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, and ASU 2021-01 “Reference Rate Reform (ASC 848): Scope” which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform in contracts and other transactions that reference the London Interbank Offered Rate or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. ASU 2020-04 and ASU 2021-01 are effective for all entities as of March 12, 2020 through December 31, 2022. We currently do not anticipate the need to modify our existing debt agreements as a result of reference rate reform in the current year, however if any modification is executed as a result of reference rate reform, the Company will elect the optional expedient available under ASU 2020-04 and ASU 2021-01, which allows entities to account for the modification as if the modification was not substantial. We will disclose the nature of and reason for electing the optional expedient in each interim and annual financial statement period if and when applicable through December 31, 2022.

The FREIT ~~Maryland~~ Board of Directors (“Board”) declared a dividend of $0.10 per share in the ~~first~~second quarter of Fiscal 2022 which ~~was~~will be paid on ~~March~~June 15, 2022 to stockholders of record on ~~March~~June 1, 2022. The Board will continue to evaluate the dividend on a quarterly basis.

Basic earnings (loss) 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 14) 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 Maryland’s~~FREIT’s stock at the average market price during the period, thereby increasing the number of shares to be added in computing diluted earnings per share. For the six and three months ended ~~January 31,~~April 30, 2022, the outstanding stock options increased the average dilutive shares outstanding by approximately ~~63,000~~71,000 and 0 shares, respectively, with an impact of approximately $0.06 and $0.00, respectively, on earnings (loss) per share. For the six months ended April 30, 2021, the outstanding stock options were anti-dilutive with 0 impact on earnings per share. For the three months ended ~~January 31,~~April 30, 2021, the outstanding stock options ~~were anti-dilutive~~increased the average dilutive shares outstanding by approximately 2,000 shares with no impact on earnings per share. There were approximately 0 and 311,000 anti-dilutive shares for the six and three months ended ~~January 31,~~April 30, 2022, respectively. There were approximately 311,000 and 268,000 anti-dilutive shares for the six and three months ended April 30, 2021, respectively. Anti-dilutive shares consist of out-of-the money stock options under the Equity Incentive Plan (See Note 13).

In accordance with “Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815")”, FREIT ~~Maryland~~ has been accounting for the Damascus Centre, LLC (“Damascus Centre”), FREIT Regency, LLC (“Regency”), Wayne PSC, LLC (“Wayne PSC”) and Station Place on Monmouth (“Station Place”) interest rate swaps and the Grande Rotunda, LLC (“Grande Rotunda”) interest rate cap as cash flow hedges marking these contracts to market, taking into account present interest rates compared to the contracted fixed rate over the life of the contract and recording the unrealized gain or loss on the swaps and cap in comprehensive income. On December 30, 2021, the Rotunda property owned by Grande Rotunda was sold, a portion of the proceeds from the sale was used to pay off the $116.5 million then outstanding balance of ~~this~~the underlying loan and the corresponding interest rate cap on this loan matured with no settlement due at maturity. On January 10, 2022, the property owned by Damascus Centre was sold and a portion of the proceeds from the sale was used to pay off the $18.2 million then outstanding balance of ~~this~~the underlying loan and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on this loan which was included as interest expense on the accompanying condensed consolidated statement of income for the ~~three~~six months ended ~~January 31,~~April 30, 2022. (See Note 7 for further details on the sales of these properties.)

For the six and three months ended ~~January 31,~~April 30, 2022, ~~and 2021,~~ FREIT ~~Maryland~~ recorded an unrealized gain of approximately ~~$1,262,000~~$3,801,000 and ~~$498,000,~~$2,539,000, respectively, in the condensed consolidated statements of comprehensive income representing the change in the fair value of these cash flow hedges during such periods. For the six and three months ended April 30, 2021, FREIT recorded an unrealized gain of approximately $1,675,000 and $1,177,000, respectively, in the condensed consolidated statements of comprehensive income representing the change in the fair value of these cash flow hedges during such period. As of ~~January 31,~~April 30, 2022, there was an asset of approximately ~~$71,000~~$1,204,000 for the Wayne PSC swap, ~~and a liability of approximately $475,000~~$131,000 for the Regency swap and ~~$642,000~~$158,000 for the Station Place swap. As of October 31, 2021, there was a liability of approximately $278,000 for the Damascus Centre swaps, $348,000 for the Wayne PSC swap, $750,000 for the Regency swap, $932,000 for the Station Place swap and $0 for the Grande Rotunda interest rate cap.

The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance).

On February 28, 2020, FREIT ~~Maryland~~ 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 ~~Maryland~~ owned a 65% membership 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 ~~Maryland~~ 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 810, “Consolidation”, ~~FREIT Maryland’s~~FREIT’s investment in the TIC is accounted for under the equity method of accounting. While ~~FREIT Maryland’s~~FREIT’s effective ownership percentage interest in the Pierre Towers property remained unchanged after the reorganization to a TIC, FREIT ~~Maryland~~ no longer had a controlling interest as the TIC is now under joint control.

~~FREIT Maryland’s~~FREIT’s investment in the TIC was approximately $18.9 million and $19.4 million at ~~January 31,~~April 30, 2022 and October 31, 2021, ~~respectively, with~~respectively. For the six and three months ended April 30, 2022, FREIT recognized a loss on investment in TIC of approximately ~~$124,000~~$156,000 and ~~$27,000,~~$32,000, in the accompanying condensed consolidated statements of ~~income for~~operations. For the six and three months ended ~~January 31, 2022~~April 30, 2021, FREIT recognized a loss on investment in TIC of approximately $145,000 and ~~2021, respectively.~~$118,000, respectively, in the accompanying condensed consolidated statements of operations.

Hekemian & Co., Inc. (“Hekemian & Co.”) manages the Pierre Towers property based on a management agreement between the owners of the TIC and Hekemian & Co. dated as of February 28, 2020 and will expire on February 28, 2023. The management agreement is for a term of one year and is automatically renewed for successive periods of one year unless either party gives not less than sixty (60) days prior notice of non-renewal. The management agreement requires the payment of management fees equal to 5% of rents collected. Management fees charged to operations were approximately ~~$98,000~~$197,000 and ~~$93,000~~$99,000 for the six and three months ended ~~January 31,~~April 30, 2022, respectively, and $187,000 and $95,000 for the six and three months ended April 30, 2021, 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 $0 ~~and $10,000~~ for the six and three months ended ~~January 31,~~April 30, 2022 and $10,000 and $0 for the six and three months ended April 30, 2021, respectively.

The following table summarizes the balance sheets of the Pierre Towers property as of ~~January 31,~~April 30, 2022 and October 31, 2021, accounted for by the equity method:

		January 31,		October 31,		April 30,		October 31,
		2022		2021		2022		2021
		(In Thousands of Dollars)				(In Thousands of Dollars)

Real estate, net	$	77,508	$	78,023	$	77,020	$	78,023
Cash and cash equivalents		1,205		1,338		1,430		1,338
Tenants' security accounts		475		484		457		484
Receivables and other assets		359		510		527		510
Total assets	$	79,547	$	80,355	$	79,434	$	80,355

Mortgages payable, net of unamortized debt issuance costs	$	49,624	$	49,691	$	49,558	$	49,691
Accounts payable and accrued expenses		275		261		247		261
Tenants' security deposits		475		484		466		484
Deferred revenue		93		99		132		99
Equity		29,080		29,820		29,031		29,820
Total liabilities & equity	$	79,547	$	80,355	$	79,434	$	80,355

FREIT Maryland's investment in TIC (65% interest)	$	18,902	$	19,383
FREIT's investment in TIC (65% interest)					$	18,870	$	19,383

The following table summarizes the statements of operations of the Pierre Towers property for the six and three months ended ~~January 31,~~April 30, 2022 and 2021, accounted for by the equity method:

	Three Months Ended January 31,							Six Months Ended April 30,					Three Months Ended April 30,
	2022			2021				2022			2021		2022			2021
	(In Thousands of Dollars)							(In Thousands of Dollars)					(In Thousands of Dollars)

Revenue	$	1,954		$	1,891		$	3,923		$	3,774		$	1,969		$	1,883
Operating expenses		1,201			991			2,275			2,114			1,074			1,123
Depreciation		542			540			1,087			1,081			545			541
Operating income		211			360			561			579			350			219

Interest expense including amortization of deferred financing costs		401			401			801			802			400			401

Net loss	$	(190	)	$	(41	)	$	(240	)	$	(223	)	$	(50	)	$	(182	)

FREIT Maryland's loss on investment in TIC (65% interest)	$	(124	)	$	(27	)
FREIT's loss on investment in TIC (65% interest)							$	(156	)	$	(145	)	$	(32	)	$	(118	)

~~On January 14, 2020,~~ FREIT Maryland and certain of its affiliates (collectively, the “Sellers”), entered into a Purchase and Sale Agreement (as subsequently amended, the “Purchase and Sale Agreement”) with Sinatra Properties LLC (the “Purchaser”), which provides 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, basedpreviously reported that 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~~February 4, 2022, the Superior Court of New Jersey, in which, among other things, the Purchaser alleged 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 was not terminated, (ii) the Purchaser was not in default under the Purchase and Sale Agreement, and (iii) the Sellers were in default under the Purchase and Sale Agreement, subject to a right to cure; (c)Monmouth County (“Court”) entered an order for injunctive relief compelling the Sellers to perform the Purchase and Sale Agreement; (d) in the event that the court did 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 filed lis pendens~~Order with respect to each of the six properties that were subject to the Purchase and Sale Agreement, providing notice to the public of the Complaint. The lis pendens have been dismissed by the Court pursuant to the Order entered on February 4, 2022 discussed below. Accordingly, subject to the Purchaser’s possible challenge of the Court’s Order, the future sale or financing of these properties is not affected by the lis pendens.

~~On June 17, 2020, the Sellers~~summary judgment motions filed their answer, separate defenses, and counterclaims (the “Answer”) in response to the Complaint, in which, among other things, the Sellers (a) denied the Purchaser’s claim that the Sellers’ termination of the Purchase and Sale Agreement was wrongful, and asserted 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) asserted certain defenses to the allegations set forth in the Complaint without admitting any liability, and (c) requested 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 deemed just.

In addition, the Answer asserted counterclaims by the Sellers against the Purchaser for breach of contract due to the Purchaser’s failure to close the Purchase and Sale Agreement in accordance with its terms, and the Sellers sought a declaratory judgment from the Court that the Sellers properly terminated the Purchase and Sale Agreement in accordance with its terms due to the Purchaser’s default and an order from the Court that the Purchaser authorized 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 the Purchaser for breach of contract due to the Purchaser’s breach of confidentiality and non-disclosure obligations contained in the Purchase and Sale Agreement, and (2) third-party claims against Purchaser’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~~litigation between certain affiliates of ~~the transactions contemplated by the~~FREIT (the “Sellers” or “Defendant”) and Sinatra Properties, LLC (“Sinatra” or “Plaintiff”). The litigation relates to a Purchase and Sale Agreement ~~based~~entered into on ~~the conduct of the Purchaser 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 deemed just and equitable.

~~In the Answer filed by the Purchaser on September 15,~~January 14, 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~~(“PSA”) between the Sellers and Sinatra involving the ~~Purchaser filed motions for summary judgment (“Summary Judgment Motions”) with~~sale by the ~~Court~~Sellers of 100% of their ownership interests in ~~which~~six (6) real properties held by the ~~litigation is pending seeking, among other things, the dismissal of the other parties’ claims.~~Sellers.

OnThe February 4, 2022 ~~the Court entered an~~ Order ~~(the “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 Plaintiff 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.

The Sellers ~~are~~have been evaluating the February 4, 2022 Order and their rights and remedies with respect thereto.

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 PSA, (2) the Sellers did not breach the PSA and (3) the Court’s dismissal of the Complaint and Lis Pendens.

The Sellers continue to believe that the allegations set forth in the Complaint and Answer filed by ~~the Purchaser~~Sinatra and in the Answer and Affirmative Defenses filed by ~~the Purchaser~~Sinatra and Kushner Realty Acquisition LLC are without merit.

Through the quarter ended ~~January 31,~~April 30, 2022, the $15 million deposit has not been included in income in the accompanying condensed consolidated ~~statement~~statements of ~~income.~~operations. Legal costs attributed to the legal proceeding between FREIT ~~Maryland~~ and certain of its affiliates and Sinatra Properties, LLC have been incurred in the amount of approximately ~~$613,000~~$892,000 and ~~$481,000~~$279,000 for the six and three months ended ~~January 31,~~April 30, 2022, respectively, and $1,108,000 and $628,000, for the six and three months ended April 30, 2021, respectively, and are included in operating expenses on the condensed consolidated statements of ~~income.~~operations.

On November 22, 2021, certain affiliates (the “Maryland Sellers”) of FREIT ~~Maryland~~ 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 ~~Maryland~~ 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 with respect to certain leases at the Maryland Properties, which have not been executed or where the rent commencement date has not occurred or economic obligations of the Maryland Sellers under certain leases remain unpaid. Although there can be no assurance, a portion of the $15,526,731 escrow deposit (the “Maryland Purchaser Escrow Payment”) may be paid to the Maryland Sellers depending upon the outcome of construction and leasing activities at the Maryland Properties. 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 ~~$135.7~~$136.1 million, 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 ~~$35.4~~$36.5 million (inclusive of approximately $0.7 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), after payment of related mortgage debt in the amount of $116.5 million, payment of loans (including interest) to each of the partners in Grande Rotunda (FREIT ~~Maryland~~ with a 60% interest and Rotunda 100, LLC (“Rotunda 100”) with a 40% interest) in the amount of approximately $31 million, with FREIT ~~Maryland~~ receiving approximately $27.7 million, and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. of approximately $4.8 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 April 30, 2022, approximately $710,000 of these funds has been released from escrow to Grande Rotunda. The escrow and related gain on sale were reduced by approximately $1.2 million due to a change in estimate in the second quarter of Fiscal 2022 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 $6.3 million of remaining funds are held in post-closing escrow for rents are anticipated to be released and are included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheet as of April 30, 2022. The net proceeds from the sale ~~of approximately $35.4 million~~ were distributed to the partners in Grande Rotunda with FREIT ~~Maryland~~ receiving approximately $21.4 million based on its 60% interest in Grande Rotunda. The sale of the Rotunda Property resulted in a net gain of approximately ~~$51.2~~$50 million (as adjusted) which includes approximately ~~$8.2~~$7 million of proceeds released and anticipated to be released from ~~the $14,026,401 of~~ funds held in escrow, ~~(included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheet as of January 31, 2022),~~ 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. ~~During the first quarter ended January 31,~~As of April 30, 2022, secured loans including accrued interest held by certain members in Rotunda 100 in the amount of approximately $5.1 million were repaid to FREIT Maryland. 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 Maryland, generally, is contingent on the success and timing of future leasing activities at the Maryland Properties.FREIT.

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 ~~paid~~received net ~~cash outlays~~proceeds from the sale of approximately ~~$0.7~~$0.1 million (inclusive of approximately $0.8 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), 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 $0.5 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 ~~have~~had not been executed or where the rent commencement date ~~has~~had not occurred or economic obligations of WestFREIT under certain leases ~~remain~~remained unpaid. As of April 30, 2022, approximately $821,000 of these funds have been released from escrow with no remaining funds held in post-closing escrow for rents anticipated to be released. The sale of the Westridge Square Property resulted in a net gain of approximately $8.7 million which includes approximately ~~$0.7~~$0.8 million of proceeds ~~anticipated to be~~ released from ~~the $1,015,396 of~~ funds held in escrow, ~~(included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheet as of January 31, 2022),~~ 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 ~~$16.9~~$17.3 million (inclusive of approximately $0.4 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), 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 ~~have~~had not been executed or where the rent commencement date ~~has~~had not occurred or economic obligations of Damascus Centre under certain leases ~~remain~~remained unpaid. As of April 30, 2022, approximately $415,000 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 ~~of approximately $16.9 million~~ were distributed to the partners in Damascus Centre with FREIT ~~Maryland~~ receiving approximately $11.8 million 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 ~~anticipated to be~~ released from ~~the $484,934 of~~ funds held in escrow, ~~(included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheet as of January 31, 2022),~~ 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 ~~$171.8~~$172.2 million, 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 Maryland Purchaser Escrow Payment. This sale resulted in net proceeds of approximately $53.9 million (inclusive of approximately $1.9 million in funds released from the ~~sale~~Maryland Purchaser Escrow Payment during the second quarter of ~~approximately $51.6 million,~~Fiscal 2022), 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 partners in Grande Rotunda in the amount of approximately $31 million and certain transactional expenses and transfer taxes including a brokerage ~~fee~~fees due to Hekemian & Co. of approximately $6.2 million. ~~The sale~~As of April 30, 2022, approximately $1,946,000 of these funds have been released from escrow to the Maryland ~~Properties resulted~~Sellers. The escrow and related gain on sale were reduced by approximately $1.2 million due to a change in estimate in the second quarter of Fiscal 2022 related to a ~~net gain~~change in the timing of ~~approximately $70 million (with a consolidated impact~~anticipated rent commencement dates for certain tenants, which will reduce the escrowed funds available to ~~FREIT Maryland of approximately $46.3 million) which includes approximately $9.3~~be released to Grande Rotunda. Approximately $6.3 million of ~~proceeds~~remaining funds are held in post-closing escrow for rents anticipated to be released ~~from the $15,526,731 of funds held in escrow (included~~and are included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheet as of ~~January 31, 2022),~~April 30, 2022. The sale of the Maryland Properties resulted in a net gain of approximately $68.8 million (as adjusted) (with a consolidated impact to FREIT of approximately $45.6 million) which includes approximately $8.2 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.

As the disposal of the Maryland Properties did not represent a strategic shift that would have a major impact on ~~FREIT Maryland’s~~FREIT’s operations or financial results, the properties’ operations were not reflected as discontinued operations in the accompanying condensed consolidated financial statements.

Hekemian & Co. currently manages all the properties owned by FREIT ~~Maryland~~ 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. The management agreement between FREIT ~~Maryland~~ and Hekemian & Co. dated as of November 1, 2001 (“Management Agreement”) expires on October 31, 2023 and is automatically renewed for successive periods of two years unless either party gives not less than six (6) months prior notice of non-renewal.

The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Such fees charged to operations were approximately ~~$484,000~~$790,000 and ~~$513,000~~$1,062,000 for the six months ended April 30, 2022 and 2021, respectively, and $306,000 and $549,000 for the three months ended ~~January 31,~~April 30, 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 Maryland.~~FREIT. Such commissions and reimbursements amounted to approximately ~~$184,000~~$348,000 and ~~$129,000~~$255,000 for the six months ended April 30, 2022 and 2021, respectively, and $164,000 and $126,000 for the three months ended ~~January 31,~~April 30, 2022 and 2021, respectively. FREIT ~~Maryland~~ 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 were charged to operations and amounted to approximately ~~$52,000~~$59,000 and ~~$69,000~~$71,000 for the six months ended April 30, 2022 and 2021, respectively, and $7,000 and $2,000 for the three months ended ~~January 31,~~April 30, 2022 and 2021, respectively.

From time to time, FREIT ~~Maryland~~ 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 Maryland.~~FREIT. Separate fee arrangements are negotiated between Hekemian & Co. and FREIT ~~Maryland~~ with respect to such additional services. Such fees incurred for the six and three months ended ~~January 31,~~April 30, 2022 ~~and 2021~~ were approximately $6,294,000 and $0, respectively. 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; $75,000 for the refinancing of the loan on the Boulders property. The commissions related to the sale of the Rotunda Property, the Damascus Property and the Westridge Square Property were charged against the gain on sale of the Maryland Properties (See Note 7) in the accompanying condensed consolidated statement of income ~~statement~~ for the ~~three~~six months ended ~~January 31,~~April 30, 2022. The commission for the refinancing of the loan on the Boulders property was a deferred mortgage cost included in the unamortized debt issuance costs in the accompanying condensed consolidated balance sheet as of ~~January 31,~~April 30, 2022. Such fees incurred for the six and three months ended April 30, 2021 were approximately $236,500 and $236,500, respectively. 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 loan; $32,500 for the renewal of FREIT’s line of credit.

Robert S. Hekemian, Jr., Chief Executive Officer, President and a Director of FREIT, ~~Maryland,~~ is the Chief Executive Officer of Hekemian & Co. David B. Hekemian, a Director of FREIT, ~~Maryland,~~ is the President of Hekemian & Co. Allan Tubin, Chief Financial Officer and Treasurer of FREIT, ~~Maryland,~~ is the Chief Financial Officer of Hekemian & Co.

Director fee expense and/or executive compensation (including interest and dividends) incurred by FREIT ~~Maryland~~for the six months ended April 30, 2022 and 2021 was approximately $279,000 and $232,000, respectively, for Robert S. Hekemian, Jr., $20,000 and $15,000, respectively, for Allan Tubin and $29,000 and $27,000, respectively, for David Hekemian. Director fee expense and/or executive compensation (including interest and dividends) incurred by FREIT for the three months ended ~~January 31,~~April 30, 2022 and 2021 was approximately ~~$135,000~~$141,000 and $116,000, respectively, for Robert S. Hekemian, Jr., $10,000 and $8,000, respectively, for Allan Tubin and ~~$15,000~~$14,000 and ~~$14,000,~~$10,000, respectively, for David Hekemian (See Note 14). Such costs are included within operating expenses on the accompanying condensed consolidated statements of ~~income.~~operations.

The equity owners of Rotunda 100, which owns a 40% minority equity interest in Grande Rotunda, are principally employees of Hekemian & Co. To incentivize the employees of Hekemian & Co., FREIT ~~Maryland~~ 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 bear interest at rates that float at 225 basis points over the ninety (90) day LIBOR, as adjusted each November 1, February 1, May 1 and August 1. These loans are secured by the Hekemian & Co. employees’ interests in Rotunda 100 and are full recourse loans. On December 7, 2017, the Board approved a further extension of the previously amended maturity dates of these loans to the date or dates upon which distributions of cash are made by Grande Rotunda to its members as a result of a refinancing or sale of Grande Rotunda or the Rotunda Property. On December 30, 2021, the Rotunda Property was sold and the net sales proceeds were distributed to the partners in Grande Rotunda. (See Note 7 for further details.) As of ~~January 31,~~April 30, 2022, approximately $5.1 million of the secured loans receivable (including accrued interest) were repaid to ~~FREIT Maryland.~~FREIT. The aggregate outstanding principal balance of the Rotunda 100 notes was approximately $167,000 and $4,000,000 at ~~January 31,~~April 30, 2022 and October 31, 2021, respectively. The accrued but unpaid interest related to these notes as of ~~January 31,~~April 30, 2022 and October 31, 2021 amounted to approximately ~~$54,000~~$56,000 and $1,292,000, respectively, and is included in secured loans receivable on the accompanying condensed consolidated balance sheets.

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. In Fiscal 2021, Grande Rotunda repaid $7 million to the equity owners in Grande Rotunda based on their respective pro-rata share resulting in a loan repayment to Rotunda 100 of approximately $2.8 million. As of October 31, 2021, Rotunda 100 had funded Grande Rotunda with approximately $3.3 million (including interest) which was included in “Due to affiliate” on the accompanying condensed consolidated balance sheet. On December 30, 2021, the Rotunda Property was sold and 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. As of ~~January 31,~~April 30, 2022, all loans were repaid in full to each of the partners.

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 up to $600,000 and $400,000, respectively, based on each owner’s respective pro-rata share. During May 2022, Wayne PSC required funding by each of the partners totaling $500,000, with each owner contributing its respective pro-rata share of Wayne PSC, H-TPKE funded $300,000 and FREIT funded $200,000.

On December 30, 2021, FREIT ~~Maryland~~ refinanced its $14.4 million loan (which would have matured on February 1, 2022) on its Boulders property located in Rockaway, New Jersey with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn upon in the amount of $7,500,000 for corporate needs inclusive of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property resulting from the legal proceeding between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC (See Note 6).needs. This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT ~~Maryland~~ to extend for one year from the maturity date, subject to certain provisions of the loan agreement. This refinancing will provide annual debt service savings of approximately $1,173,000 as a result of the reduction in the principal amount, 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.

~~FREIT Maryland’s~~FREIT’s revolving line of credit provided by the Provident Bank was renewed for a three-year term ending on October 31, 2023. 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 Maryland’s~~FREIT’s Franklin Crossing Shopping Center in Franklin Lakes, New Jersey and retail space in Glen Rock, New Jersey. The total line of credit is $13 million and the interest rate on the amount outstanding is based on a floating interest rate of prime minus 25 basis points with a floor of 3.75%. As of ~~January 31,~~April 30, 2022 and October 31, 2021, there was no amount outstanding and $13 million was available under the line of credit.

In accordance with certain loan agreements, FREIT ~~Maryland~~ may be required to meet or maintain certain financial covenants throughout the term of the loan. As a result of the COVID-19 pandemic, rent losses and the planning for a potential redevelopment of its shopping center, as of October 31, 2021, Wayne PSC was not, and currently is not, in compliance with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank. ~~As of January 31, 2022, this loan has a balance of approximately $22.4 million.~~ Although the Company continues to make its required debt service payments in accordance with the loan agreement, it is unable to comply with this covenant. As such, the bank could exercise its remedies under the loan agreement including, among other things, requiring a partial or full repayment of the loan with a balance of approximately ~~$22.4~~$22.2 million as of ~~January 31,~~April 30, 2022. ~~The Company is currently working with~~On June 2, 2022, the lender agreed to ~~remediate this~~waive the covenant ~~default. As~~default subject to the loan being paid off on or before September 1, 2022. Additionally, Wayne PSC is in the process of ~~the date of the filing of this quarterly report on Form 10-Q, the bank has not declared~~refinancing this loan towith a new lender in the amount of $25 million, which would be ~~in default.~~interest only for a term of three years and based on a fixed interest rate of 5%. Until such time as a definitive agreement is entered into, there can be no assurance ~~the~~this loan ~~covenant~~ will be ~~amended and the bank will not declare this loan to be in default.~~entered into.

The following table shows the estimated fair value and net carrying value of ~~FREIT Maryland’s~~FREIT’s long-term debt at ~~January 31,~~April 30, 2022 and October 31, 2021:

($ in Millions)	January 31, 2022	October 31, 2021	April 30, 2022	October 31, 2021

Fair Value	$136.5	$301.6	$131.8	$301.6

Carrying Value, Net	$136.5	$299.9	$136.1	$299.9

Fair values are estimated based on market interest rates at ~~January 31,~~April 30, 2022 and October 31, 2021 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).

FREIT ~~Maryland~~ has determined that it has 2two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires different operating strategies and management expertise. The commercial segment is comprised of five (5) properties, excluding the Rotunda Property, the Westridge Square Property and the Damascus Property which were sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively. The residential segment is comprised of six (6) properties, excluding the Icon at the Rotunda Property which was sold on December 30, 2021. (See Note 7 for further details.)

The accounting policies of the segments are the same as those described in Note 1 in ~~FREIT Maryland’s~~FREIT’s Annual Report on Form 10-K for the fiscal year ended October 31, 2021. The chief operating and decision-making group responsible for oversight and strategic decisions of ~~FREIT Maryland's~~FREIT's commercial segment, residential segment and corporate/other is comprised of ~~FREIT Maryland’s~~FREIT’s Board.

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

Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income attributable to common equity for the six and three month periods ended ~~January 31,~~April 30, 2022 and 2021. Asset information is not reported since FREIT ~~Maryland~~ does not use this measure to assess performance.

	Three Months Ended				Six Months Ended				Three Months Ended
	January 31,				April 30,				April 30,
	2022		2021		2022		2021		2022		2021
	(In Thousands of Dollars)				(In Thousands of Dollars)				(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	4,321	$	6,351	$	6,266	$	12,414	$	1,945	$	6,063
Residential		6,338		6,609		11,059		13,357		4,721		6,748
Total real estate rental revenue		10,659		12,960		17,325		25,771		6,666		12,811

Real estate operating expenses:
Commercial		2,685		2,627		3,919		5,811		1,234		3,184
Residential		2,641		2,664		4,687		5,390		2,046		2,726
Total real estate operating expenses		5,326		5,291		8,606		11,201		3,280		5,910

Net operating income:
Commercial		1,636		3,724		2,347		6,603		711		2,879
Residential		3,697		3,945		6,372		7,967		2,675		4,022
Total net operating income	$	5,333	$	7,669	$	8,719	$	14,570	$	3,386	$	6,901


Reconciliation to condensed consolidated net income attributable to common equity:
Reconciliation to condensed consolidated net income (loss) attributable to common equity:
Segment NOI	$	5,333		$	7,669		$	8,719		$	14,570		$	3,386		$	6,901
Deferred rents - straight lining		(10	)		(206	)		(61	)		(213	)		(51	)		(7	)
Investment income		26			30			64			59			38			29
General and administrative expenses		(1,327	)		(1,260	)		(2,196	)		(2,730	)		(869	)		(1,470	)
Loss on investment in tenancy-in-common		(124	)		(27	)		(156	)		(145	)		(32	)		(118	)
Depreciation		(1,820	)		(2,295	)		(2,534	)		(4,633	)		(714	)		(2,338	)
Net gain on sale of Maryland properties		70,003			0-
Net gain (loss) on sale of Maryland properties								68,771			0-			(1,232	)		0-
Financing costs		(2,928	)		(3,132	)		(4,455	)		(6,192	)		(1,527	)		(3,060	)
Net income		69,153			779
Net income attributable to noncontrolling interests in subsidiaries		(23,376	)		(221	)
Net income attributable to common equity	$	45,777		$	558
Net income (loss)								68,152			716			(1,001	)		(63	)
Net (income) loss attributable to noncontrolling interests in subsidiaries								(22,727	)		(149	)		649			72
Net income (loss) attributable to common equity							$	45,425		$	567		$	(352	)	$	9

FREIT ~~Maryland~~ has elected to be treated as a REIT for federal income tax purposes and as such intends to distribute at least 90% of its ordinary taxable income (to maintain its status as a REIT) and 100% of its capital gains to its stockholders as dividends for the fiscal year ending October 31, 2022. FREIT ~~Maryland~~ distributed 99% 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 were recorded in ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for the six and three months ended ~~January 31,~~April 30, 2022 and 2021.

As of ~~January 31,~~April 30, 2022, FREIT ~~Maryland~~ had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2018 remain open to examination by the major taxing jurisdictions.

As of ~~January 31,~~April 30, 2022, 442,060 shares are available for issuance under the Plan.

The following table summarizes stock option activity for the six and three month periods ended ~~January 31,~~April 30, 2022 and 2021:

	Three Months Ended January 31, 2022				Three Months Ended January 31, 2021				Six and Three Months Ended April 30, 2022				Six and Three Months Ended April 30, 2021
	No. of Options		Exercise		No. of Options		Exercise		No. of Options		Weighted Average		No. of Options		Weighted Average
	Outstanding		Price		Outstanding		Price		Outstanding		Price		Outstanding		Price
Options outstanding at beginning of period		310,740	$	18.35		310,740	$	18.35		310,740	$	18.35		310,740	$	18.35
Options granted during period		0-		0-		0-		0-		0-		0-		0-		0-
Options forfeited/cancelled during period		0-		0-		0-		0-		0-		0-		0-		0-
Options outstanding at end of period		310,740	$	18.35		310,740	$	18.35		310,740	$	18.35		310,740	$	18.35
Options vested and expected to vest		309,450				308,310				309,450				308,310
Options exercisable at end of period		292,540				276,340				293,540				277,340

For the six and three month periods ended ~~January 31,~~April 30, 2022, compensation expense related to stock options vested amounted to approximately $10,000 and $5,000, respectively. For the six and three month periods ended April 30, 2021, compensation expense related to stock options vested amounted to approximately ~~$5,000~~$24,000 and $12,000, respectively. At ~~January 31,~~April 30, 2022, there was approximately ~~$25,000~~$20,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately ~~1.4~~1.1 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at ~~January 31,~~April 30, 2022 was approximately ~~$1,706,000~~$1,978,000 and ~~$1,563,000,~~$1,830,000, respectively.

On September 4, 2014, the Board approved amendments, effective November 1, 2014, to the FREIT ~~Maryland~~ Deferred Fee Plan for its executive officers and directors, one of which provides for the issuance of share units payable in FREIT ~~Maryland~~ 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 will be determined by the closing price of FREIT ~~Maryland~~ shares on the date as set forth in the Deferred Fee Plan.

On November 4, 2021 (the “Adoption Date”), the Board approved the termination of the Deferred Fee Plan resulting in the termination of the deferral of fees on December 31, 2021 with any subsequent fees earned by a participant being paid in cash. Consistent with the termination of the Deferred Fee Plan, payment related to each participant’s cash account (in the form of a cash lump sum payment) and share unit account (in the form of the issuance of common stock) 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, will continue to accrue in share units on each participant’s account until final payment is made.

For the ~~three~~six month periods ended ~~January 31,~~April 30, 2022 and 2021, the aggregate amounts of deferred director fees together with related interest and dividends were approximately ~~$61,600~~$100,500 and ~~$118,100,~~$230,600, respectively, which have been paid through the issuance of ~~2,496~~4,080 and ~~6,919~~13,233 vested FREIT ~~Maryland~~ share units, respectively, based on the closing price of FREIT ~~Maryland~~ shares on the dates as set forth in the Deferred Fee Plan.

For the ~~three month~~six-month periods ended ~~January 31,~~April 30, 2022 and 2021, FREIT ~~Maryland~~ has charged as expense approximately ~~$43,800~~$65,200 and ~~$110,200,~~$214,600, respectively, representing deferred director fees and interest, and the balance of approximately ~~$17,000~~$35,300 and ~~$7,900,~~$16,000, respectively, representing dividends payable in respect of share units allocated to Plan participants, has been charged to equity.

The Deferred Fee Plan, as amended, ~~provided~~provides that cumulative fees together with accrued interest deferred as of November 1, 2014 ~~was~~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. As of ~~January 31,~~April 30, 2022 and October 31, 2021, approximately $1,366,000 and $1,454,000, respectively, of fees has been deferred together with accrued interest of approximately ~~$1,021,000.~~$951,000 and $1,021,000, respectively.

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

Minimum fixed lease consideration (in thousands of dollars) under non-cancelable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration and rents from tenants for which collectability is deemed to be constrained, for the years ending October 31, as of ~~January 31,~~April 30, 2022, is as follows:

Year Ending October 31,	Amount			Amount
2022*	$	5,782		$	5,740
2023		5,191			5,647
2024		4,110			4,541
2025		3,413			3,827
2026		2,666			3,077
Thereafter		3,362			4,526
Total	$	24,524		$	27,358

*Amount represents full fiscal year and excludes rents from the Rotunda Property, the Westridge Square Property and the Damascus Property sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively.
* Amount represents full fiscal year and excludes rents from the Rotunda Property, the Westridge Square Property and the Damascus Property which were sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively.			* Amount represents full fiscal year and excludes rents from the Rotunda Property, the Westridge Square Property and the Damascus Property which were sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively.

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 the six and three month periods ended ~~January 31,~~April 30, 2022 and 2021 were not material.

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. Over the past year, vaccinations for the COVID-19 virus were widely distributed among the general U.S. population which resulted in loosened restrictions previously mandated on our tenants identified as nonessential. However, the potential emergence of vaccine-resistant variants of COVID-19 could trigger restrictions to be put back in place. Such restrictions may include mandatory business shut-downs, reduced business operations and social distancing requirements. As the impact of the pandemic evolves, it continues to cause uncertainty and volatility in the financial markets. The COVID-19 pandemic and the actions taken by individuals, businesses and government authorities to reduce its spread have caused substantial lost business revenue, changes in consumer behavior and large reductions in liquidity and fair value of many assets.

Despite the COVID-19 pandemic and preventive measures taken to mitigate the spread, our residential properties have continued to generate cash flow. At our commercial properties, with the exception of grocery stores and other "essential" businesses, many of our retail tenants ~~have been~~were adversely affected by the previously mandated shut downs and the continued lingering impact to consumer sentiment and preferences for safety amid the reemergence of other COVID-19 variants. The Company iscontinues to closely ~~monitoring~~monitor changes in the collectability assessment of its tenant ~~receivables as a result of certain tenants suffering adverse financial consequences related to~~receivables. For the ~~COVID-19 pandemic. For the~~six and three months ended ~~January 31,~~April 30, 2022, rental revenue deemed uncollectible of approximately $0.4 million and $0.3 million (with a consolidated impact to FREIT of approximately $0.2 million and $0.2 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. For the six and three months ended April 30, 2021, rental revenue deemed uncollectible of approximately ~~$0.1~~$0.9 million and ~~$0.6~~$0.3 million (with a consolidated impact to FREIT ~~Maryland~~ of approximately ~~$0.1~~$0.6 million and ~~$0.4~~$0.2 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 ~~Maryland~~ has 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. For the six and three months ended ~~January 31,~~April 30, 2022, there were no security deposits from its commercial tenants applied to outstanding receivables due. On a case by case basis, FREIT ~~Maryland~~ has offered rent abatements totaling approximately $9,000 and ~~$50,000~~$0 (with a consolidated impact to FREIT ~~Maryland~~ of approximately $9,000 and ~~$31,000)~~$0) for the six and three months ended ~~January 31,~~April 30, 2022, respectively, and $101,000 and $51,000 (with a consolidated impact to FREIT of approximately $71,000 and $40,000) for the six and three months ended April 30, 2021, respectively. There were no significant deferrals of rent over a specified time period offered to its commercial tenants for the six and three months ended ~~January 31,~~April 30, 2022 and 2021. FREIT ~~Maryland~~ currently remains in active discussions and negotiations with these impacted retail tenants.

For the ~~three~~six months ended ~~January 31,~~April 30, 2022, we have experienced a positive cash flow from operations with cash provided by operations of approximately $2.9 million. This could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of ~~January 31,~~April 30, 2022 of approximately ~~$95.4~~$95.7 million coupled with a $13 million available line of credit (available through October 31, 2023, see Note 9) and the additional $7.5 million in funds available to be drawn upon on the Boulders loan (See Note 9 for additional details). This cash and available cash will provide us with sufficient liquidity for at least the next twelve months from the filing of this quarterly report on Form ~~10-Q.~~10-Q including, partial or full payment of the Wayne PSC loan should we be unable to resolve the Wayne PSC covenant non-compliance and the bank exercises its remedies under the loan agreement, and after giving consideration to the dividends we may need to distribute over this period to maintain our status as a REIT.

Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

FREIT ~~Maryland~~ is an equity real estate investment trust (“REIT”) that is self-administered and externally managed. FREIT ~~Maryland~~ owns a portfolio of residential apartment and commercial properties. ~~FREIT Maryland’s~~FREIT’s revenues consist primarily of rental income and other related revenues from its residential and commercial properties and additional rents derived from operating commercial properties. ~~FREIT Maryland’s~~FREIT’s properties are primarily located in northern New Jersey and New York.

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.

and amounts of escrowed funds to FREIT, generally, is contingent on the success and timing of future leasing activities at the Maryland Properties.

The sale of the Maryland Properties having a total net book value of $172.2 million, 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 Maryland Purchaser Escrow Payment. This sale resulted in net proceeds of approximately $53.9 million (inclusive of approximately $1.9 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), 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 partners 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 $6.2 million. As of April 30, 2022, approximately $1,946,000 of these funds have been released from escrow to the Maryland Sellers. The escrow and related gain on sale were reduced by approximately $1.2 million due to a change in estimate in the second quarter of Fiscal 2022 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 $6.3 million of remaining funds are held in post-closing escrow for rents anticipated to be released and are included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheet as of April 30, 2022. The sale of the Maryland Properties resulted in a net gain of approximately $68.8 million (as adjusted) (with a consolidated impact to FREIT of approximately $45.6 million) which includes approximately $8.2 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. See Note 7 to FREIT’s condensed consolidated financial statements for additional details on the sale of these three properties.

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. Over the past year, vaccinations for the COVID-19 virus were widely distributed among the general U.S. population which resulted in loosened restrictions previously mandated on our tenants identified as nonessential. However, the potential emergence of vaccine-resistant variants of COVID-19 could trigger restrictions to be put back in place. Such restrictions may include mandatory business shut-downs, reduced business operations and social distancing requirements. The COVID-19 pandemic and the actions taken by individuals, businesses and government authorities to reduce its spread have caused substantial lost business revenue, changes in consumer behavior and large reductions in liquidity and fair value of many assets.

As the impact of the pandemic evolves, it continues to cause uncertainty and volatility in the financial markets. Many U.S. industries and businesses were negatively affected and millions of people filed for unemployment resulting in the U.S. unemployment rate rising to 14.7% in April 2020, which was the highest recorded rate since the Great Depression. Since April 2020, the U.S unemployment rate has declined to 4%3.6% as of ~~January 2022, as many businesses continue to reopen and rehire employees following many of the COVID-19 mandated shut down orders being lifted.~~April 2022. However, ~~the jobless rate remains above the pre-pandemic levels of about 3.5%. Additionally,~~ the annual inflation rate in the U.S. has accelerated to ~~7.5%~~8.3% in ~~January~~April 2022, the highest since 1982, which is primarily driven by soaring food prices and energy costs, labor shortages and supply disruptions.

Despite the COVID-19 pandemic and preventive measures taken to mitigate the spread, our residential properties continued to generate cash flow. At our commercial properties, with the exception of grocery stores and other "essential" businesses, many of our retail tenants ~~have been~~were adversely affected by the previously mandated shut downs and the continued lingering impact to consumer

sentiment and preferences for safety amid the reemergence of other COVID-19 variants. The Company iscontinues to closely ~~monitoring~~monitor changes in the collectability assessment of its tenant ~~receivables as a result of certain tenants suffering adverse financial consequences related to~~receivables. For the ~~COVID-19 pandemic. For the~~six and three months ended ~~January 31,~~April 30, 2022, rental revenue deemed uncollectible of approximately $0.4 million and $0.3 million (with a consolidated impact to FREIT of approximately $0.2 million and $0.2 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. For the six and three months ended April 30, 2021, rental revenue deemed uncollectible of approximately ~~$0.1~~$0.9 million and ~~$0.6~~$0.3 million (with a consolidated impact to FREIT ~~Maryland~~ of approximately ~~$0.1~~$0.6 million and ~~$0.4~~$0.2 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 ~~Maryland~~ has 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. For the six and three months ended ~~January 31,~~April 30, 2022, there were no security deposits from its commercial tenants applied to outstanding receivables due. On a case by case basis, FREIT ~~Maryland~~ has offered rent abatements totaling approximately $9,000 and ~~$50,000~~$0 (with a consolidated impact to FREIT ~~Maryland~~ of approximately $9,000 and ~~$31,000)~~$0) for the six and three months ended ~~January 31,~~April 30, 2022, respectively, and $101,000 and $51,000 (with a consolidated impact to FREIT of approximately $71,000 and $40,000) for the six and three months ended April 30, 2021, respectively. There were no significant deferrals of rent over a specified time period offered to its commercial tenants for the six and three months ended ~~January 31,~~April 30, 2022 and 2021. FREIT ~~Maryland~~ currently remains in active discussions and negotiations with these impacted retail tenants.

For the ~~three~~six months ended ~~January 31,~~April 30, 2022, we have experienced a positive cash flow from operations with cash provided by operations of approximately $2.9 million. This could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of ~~January 31,~~April 30, 2022 of approximately ~~$95.4~~$95.7 million coupled with a $13 million available line of credit (available through October 31, 2023, see Note 9 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for further details) and the additional $7.5 million in funds available to be drawn upon on the Boulders loan (See Note 9 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for further details). This cash and available cash will provide us with sufficient liquidity for at least the next twelve months from the filing of this quarterly report on Form ~~10-Q.~~10-Q including, partial or full repayment of the Wayne PSC loan should we be unable to resolve the Wayne PSC covenant non-compliance and the bank exercises its remedies under the loan agreement, and after giving consideration to the dividends we may need to distribute over this period to maintain our status as a REIT.

The extent of the effects of COVID-19 on our business, results of operations, cash flows, value of our real estate assets and growth prospects is highly uncertain and will ultimately depend on future developments, none of which can be predicted with any certainty. (See Note 16 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for further details.)

Residential Properties: While our residential properties continue to generate positive cash flow, the impact COVID-19, ~~and~~ the significant rise in inflation and rising interest rates may have on these properties over the next year is uncertain.

Commercial Properties: There continues to be uncertainty in the retail environment that could have an adverse impact on ~~FREIT Maryland’s~~FREIT’s retail tenants, which could have an adverse impact on ~~FREIT Maryland.~~FREIT. The impact COVID-19, ~~and~~ the significant rise in inflation and rising interest rates may have on the operating and financial performance of our commercial properties is currently uncertain.

On November 22, 2021, certain affiliates (the “Maryland Sellers”) of FREIT Maryland 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 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 Maryland 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 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 with respect to certain leases at the Maryland Properties, which have not been executed or where the rent commencement date has not occurred or economic obligations of the Sellers under certain leases remain unpaid. Although there can be no assurance, a portion of the $15,526,731 escrow deposit (the “Maryland Purchaser Escrow Payment”) may be paid to the Sellers depending upon the outcome of construction and leasing activities at the Maryland Properties. 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 Maryland, generally, is contingent on the success and timing of future leasing activities at the Maryland Properties.

The sale of the Maryland Properties having a total net book value of $171.8 million resulted in net proceeds from the sale of approximately $51.6 million, after payment of related mortgage debt in the amount of $155.8 million and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on the Damascus Property loan, payment of loans (including interest) to each of the partners in Grande Rotunda in the amount of approximately $31 million and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. of approximately $6.2 million. The sale of the Maryland Properties resulted in a net gain of approximately $70 million (with a consolidated impact to FREIT Maryland of approximately $46.3 million) which includes approximately $9.3 million of proceeds anticipated to be released from the $15,526,731 of funds held in escrow (included in “Funds held in post-closing escrow” on the accompanying condensed consolidated balance sheet as of January 31, 2022), 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. See Note 7 to FREIT Maryland’s condensed consolidated financial statements for additional details on the sale of these three properties.

Debt Financing Availability: Financing has been available to FREIT ~~Maryland~~ and its affiliates. The lis pendens filed in connection with the legal proceeding between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC have been dismissed by the Court pursuant to the Order entered on February 4, 2022 discussed elsewhere in this report. (See Note 6 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements). ~~Accordingly, subject to the possible challenge of the Court’s Order by Sinatra Properties, LLC the future sale or financing of these properties is not affected by the lis pendens.~~

On December 30, 2021, FREIT ~~Maryland~~ refinanced its $14.4 million loan (which would have matured on February 1, 2022) on its Boulders property located in Rockaway, New Jersey with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn upon in the amount of $7,500,000 for corporate needs inclusive of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property resulting from the legal proceeding between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC (See Note 6 to FREIT Maryland’s condensed consolidated financial statements).needs. This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT ~~Maryland~~ to extend for one year from the maturity date, subject to certain provisions of the loan agreement. This refinancing will provide annual debt service savings of approximately $1,173,000 as a result of the reduction in the principal amount, 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.

Operating Cash Flow: FREIT ~~Maryland~~ expects that cash provided by operating activities and cash reserves will be adequate to cover mandatory debt service payments (including payments of interest, but excluding balloon payments which are expected to be refinanced and/or extended), real estate taxes, recurring capital improvements at its properties and other needs to maintain its status as a REIT for at least a period of one year from the date of filing of this quarterly report on Form 10-Q.

Pursuant to the SEC disclosure guidance for "Critical Accounting Policies," the SEC defines Critical Accounting Policies as those that require the application of management's most difficult, subjective, or complex judgments, often because of the need to make estimates about the effect of matters that are inherently uncertain and may change in subsequent periods.

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, the preparation of which takes into account estimates based on judgments and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from these estimates. The accounting policies and estimates used, which are outlined in Note 1 to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021, have been applied consistently as of ~~January 31,~~April 30, 2022, and for the six and three months ended ~~January 31,~~April 30, 2022 and 2021. We believe that the following accounting policies or estimates require the application of management's most difficult, subjective, or complex judgments.

Revenue Recognition: Base rents, additional rents based on tenants' sales volume and reimbursement of the tenants' share of certain operating expenses are generally recognized when due from tenants. The straight-line basis is used to recognize base rents under leases if they provide for varying rents over the lease terms. Straight-line rents receivable represent unbilled rents receivable to the extent straight-line rents exceed current rents billed in accordance with lease agreements. Before FREIT ~~Maryland~~ can recognize revenue, it is required to assess, among other things, its collectability.

Valuation of Long-Lived Assets: FREIT ~~Maryland~~ assesses the carrying value of long-lived assets periodically, or whenever events or changes in circumstances indicate that the carrying amounts of certain assets may not be recoverable. When FREIT ~~Maryland~~ determines that the carrying value of long-lived assets may be impaired, the measurement of any impairment is based on a projected discounted cash flow method determined by ~~FREIT Maryland's~~FREIT's management. While FREIT ~~Maryland~~ believes that our discounted cash flow methods are reasonable, different assumptions regarding such cash flows may significantly affect the measurement of impairment.

Real Estate Development Costs: It is ~~FREIT Maryland’s~~FREIT’s policy to capitalize pre-development costs, which generally include legal and 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 ~~Maryland~~ ceases capitalization of these costs when the project or portion thereof becomes operational, or when construction has been postponed. In the event of postponement, capitalization of these costs will recommence once construction on the project resumes.

See Note 2 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for recently issued accounting standards.

Real estate revenue for the six months ended April 30, 2022 (“Current Six Months”) decreased 32.5% to $17,264,000, compared to $25,558,000 for the six months ended April 30, 2021 (“Prior Year’s Six Months”). For the three months ended ~~January 31,~~April 30, 2022 (“Current Quarter”) real estate revenue decreased ~~16.5%~~48.3% to ~~$10,649,000,~~$6,615,000, compared to ~~$12,754,000~~$12,804,000 for the three months ended ~~January 31,~~April 30, 2021 (“Prior Year’s Quarter”).

The decrease in revenue for the Current Six Months was primarily attributable to the following: (a) a decrease of approximately $8.5 million attributed to the Maryland Properties sold; (b) a decrease from the commercial segment of approximately $0.4 million, excluding the Maryland Properties sold, primarily attributed to approximately $0.2 million in rental revenue being deemed uncollectible and classified as a reduction in rental revenue in the Current Six Months and a $0.2 million decrease resulting from a decline in the average occupancy rate to 67.7% from 69.5% in the Prior Year’s Six Months; offset by (c) an increase from the residential segment of approximately $0.6 million, excluding the Icon at the Rotunda Property sold, driven by an increase in base rents across all properties and an increase in the average occupancy rate to 98.7% from 97.1% in the Prior Year’s Six Months.

The decrease in revenue for the Current Quarter was primarily attributable to the following: (a) a decrease of approximately ~~$2.3~~$6.2 million attributed to the Maryland Properties sold; (b) a decrease from the commercial segment of approximately $0.3 million, excluding the Maryland Properties sold, primarily attributed to approximately $0.2 million in rental revenue being deemed uncollectible and classified as a reduction in rental revenue in the Current ~~Quarter; (b)~~Quarter and a ~~decrease of approximately~~ $0.1 million ~~primarily driven by lease termination fees received~~decrease resulting from a decline in the average occupancy rate to 66.6% from 68.8% in the Prior Year’s ~~Quarter from Pet Valu, Inc., a former pet store tenant at the Preakness Shopping Center located in Wayne, New Jersey;~~Quarter; offset by (c) an increase from the residential segment of approximately $0.3 million, excluding the Icon at the Rotunda Property sold, ~~in the Current Quarter, of approximately $0.3 million~~ primarily driven by an increase in base rents across all properties and an increase in the average occupancy rate to ~~98.9%~~98.5% from ~~97.3%~~96.8% in the Prior Year’s Quarter.

Net income (loss) attributable to common equity (“net ~~income-common~~income (loss)-common equity”) for the Current Six Months and Current Quarter was ~~$45,777,000~~net income of $45,425,000 ($~~6.51~~6.46 per share basic and ~~$6.45~~$6.40 per share diluted) and net loss of $352,000 (($0.05) per share basic and diluted), compared to ~~$558,000~~$567,000 ($0.08 per share basic and diluted) and $9,000 ($0.00 per share basic and diluted), for the Prior Year’s ~~Quarter.~~comparable periods, respectively.

The schedule below provides a detailed analysis of the major changes that impacted net ~~income-common~~income (loss)-common equity for the six and three months ended ~~January 31,~~April 30, 2022 and 2021:

The condensed consolidated results of operations for the Current Six Months and Current Quarter are not necessarily indicative of the results to be expected for the full year or any other period. The table above includes income from real estate operations which is a ~~non-GAAP~~non-

GAAP financial measure and is not a measure of operating results or cash flow as measured by GAAP, and is not necessarily indicative of cash available to fund cash needs.

Adjusted net (loss) income for the Current Six Months and Current Quarter was ~~adjusted~~ net loss of ~~$850,000~~$619,000 (($0.09) per share basic and diluted) and net income of $231,000 ($~~0.12~~0.03 per share basic and diluted), compared to ~~adjusted~~ net income of ~~$779,000~~$716,000 ($~~0.11~~0.10 per share basic and diluted) and net loss of $63,000 (($0.01) per share basic and diluted), for the Prior Year’s ~~Quarter.~~comparable periods. Adjusted net (loss) income is a

non-GAAP measure, which management believes is a useful and meaningful gauge to investors of our operating performance, since it excludes the impact of unusual and infrequent items specifically: a gain on sale of Maryland properties in Fiscal 2022.

The decrease in adjusted net income for the Current ~~Quarter~~Six Months was primarily driven by the following: (a) a decrease of approximately ~~$1.4~~$2.4 million (with a consolidated impact to FREIT ~~Maryland~~ of approximately ~~$0.9~~$1.7 million) attributed to the Maryland Properties ~~sold in the Current Quarter;~~sold; offset by (b) ~~an increase~~a decrease in general and administrative expenses (“G&A”) of approximately ~~$0.1~~$0.5 million primarily driven by ~~an increase~~reincorporation expenses in the amount of approximately $0.4 million incurred in the Prior Year’s Six Months and a decline in legal costs in the amount of approximately $0.2 million attributed to the legal proceeding between FREIT ~~Maryland~~ and certain of its affiliates and Sinatra Properties, LLC; (c) a decrease in interest expense of approximately $0.2 million attributed to the refinancing of the loan on the Boulders property in the Current Six Months resulting in a reduction in the interest rate and principal balance of the loan; (d) a decrease in the reserve for uncollectible rents of approximately $0.3 million (with a consolidated impact to FREIT of approximately $0.2 million), excluding the Maryland Properties sold, primarily due to rental revenue being deemed uncollectible and classified as a reduction in rental revenue in the Current Six Months; and (e) an increase in revenue of approximately $0.2 million (with a consolidated impact to FREIT of approximately $0.3 million), excluding the Maryland Properties sold.

The increase in adjusted net income for the Current Quarter was primarily driven by the following: (a) a decrease in G&A of approximately $0.6 million primarily driven by reincorporation expenses in the amount of approximately $0.3 million incurred in the Prior Year’s Quarter and a decline in legal costs in the amount of approximately $0.3 million attributed to the legal proceeding between FREIT and certain of its affiliates and Sinatra Properties, LLC; (b) a decrease in the reserve for uncollectible rents of approximately $0.3 million (with a consolidated impact to FREIT of approximately $0.2 million), excluding the Maryland Properties sold, primarily due to rental revenue being deemed uncollectible and classified as a reduction in rental revenue in the Current Quarter; (c) a decline in snow removal costs of approximately $0.3 million (with a consolidated impact to FREIT of approximately $0.2 million), excluding the Maryland Properties sold; (d) a decrease in interest expense of approximately $0.1 million attributed to the refinancing of the loan on the Boulders property resulting in a reduction in the interest rate and principal balance of the loan; and (e) a decrease in loss on investment in tenancy-in-common of approximately $0.1 million; ~~(d) an increase in adjusted net loss at the Preakness Shopping Center~~offset by (f) a decrease of approximately ~~$0.3~~$1 million (with a consolidated impact to FREIT ~~Maryland~~ of approximately ~~$0.1~~$0.8 million) ~~primarily~~ attributed to a decline in revenue of approximately $0.1 million as explained above, an increase in snow removal costs of approximately $0.1 million and an increase in depreciation expense of approximately $0.1 million resulting from the write-off of tenant improvements; offset by (e) an increase of approximately $0.2 million (with a consolidated impact to FREIT Maryland of approximately $0.2 million) from the residential segment, excluding the Maryland Properties ~~sold, primarily attributed to the increase in revenue as explained above.~~sold. (Refer to the segment disclosure below for a more detailed discussion of the financial performance of ~~FREIT Maryland’s~~FREIT’s commercial and residential segments.)


	Commercial									Residential									Combined				Commercial									Residential									Combined
	Three Months Ended									Three Months Ended									Three Months Ended				Six Months Ended									Six Months Ended									Six Months Ended
	January 31,				Increase (Decrease)					January 31,				Increase (Decrease)					January 31,				April 30,				Increase (Decrease)					April 30,				Increase (Decrease)					April 30,
	2022		2021		$			%		2022		2021		$			%		2022		2021		2022		2021		$			%		2022		2021		$			%		2022			2021
	(In Thousands)									(In Thousands)									(In Thousands)				(In Thousands)									(In Thousands)									(In Thousands)
Rental income	$	3,576	$	4,551	$	(975	)		-21.4%	$	6,197	$	6,505	$	(308	)		-4.7%	$	9,773	$	11,056	$	5,006	$	8,987	$	(3,981	)		-44.3%	$	10,833	$	13,141	$	(2,308	)		-17.6%	$	15,839		$	22,128
Reimbursements		727		1,504		(777	)		-51.7%		30		40		(10	)		-25.0%		757		1,544		1,232		3,119		(1,887	)		-60.5%		23		78		(55	)		-70.5%		1,255			3,197
Other		18		296		(278	)		-93.9%		111		64		47			73.4%		129		360		28		308		(280	)		-90.9%		203		138		65			47.1%		231			446
Total revenue		4,321		6,351		(2,030	)		-32.0%		6,338		6,609		(271	)		-4.1%		10,659		12,960		6,266		12,414		(6,148	)		-49.5%		11,059		13,357		(2,298	)		-17.2%		17,325			25,771
Operating expenses		2,685		2,627		58			2.2%		2,641		2,664		(23	)		-0.9%		5,326		5,291		3,919		5,811		(1,892	)		-32.6%		4,687		5,390		(703	)		-13.0%		8,606			11,201
Net operating income	$	1,636	$	3,724	$	(2,088	)		-56.1%	$	3,697	$	3,945	$	(248	)		-6.3%		5,333		7,669	$	2,347	$	6,603	$	(4,256	)		-64.5%	$	6,372	$	7,967	$	(1,595	)		-20.0%		8,719			14,570

Average Occupancy % *		68.9%		70.2%					-1.3%		98.9%		97.3%					1.6%						67.7%		69.5%					-1.8%		98.7%		97.1%					1.6%

																												Reconciliation to condensed consolidated net income-common equity:
																												Deferred rents - straight lining														(61	)		(213	)
																												Investment income														64			59
																												General and administrative expenses														(2,196	)		(2,730	)
																												Loss on investment in tenancy-in-common														(156	)		(145	)
																												Depreciation														(2,534	)		(4,633	)
																												Net gain on sale of Maryland properties														68,771			—
																												Financing costs														(4,455	)		(6,192	)
																												Net income														68,152			716
																												Net income attributable to noncontrolling interests in subsidiaries														(22,727	)		(149	)
																												Net income attributable to common equity													$	45,425		$	567

NOI 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. FREIT ~~Maryland~~ assesses and measures segment operating results based on NOI.

Same Property NOI: FREIT ~~Maryland~~ considers same property net operating income (“Same Property NOI”) to be a useful supplemental non-GAAP measure of its operating performance. FREIT ~~Maryland~~ defines same property within both the commercial and residential segments to be those properties that FREIT ~~Maryland~~ has owned and operated for both the current and prior periods presented, excluding those properties that FREIT ~~Maryland~~ acquired, sold or redeveloped during those periods. Any newly acquired property that has been in operation for less than

a year, any property that is undergoing a major redevelopment but may still be in operation at less than full capacity, and/or any property that has been sold is not considered same property.

NOI and Same Property NOI are non-GAAP financial measures and are not measures of operating results or cash flow as measured by GAAP, and are 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.

The commercial segment contains five (5) separate properties, excluding the Rotunda Property, the Westridge Square Property and the Damascus Property which were sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively. Three of these properties are multi-tenanted retail centers, one is a single tenanted retail center located in Glen Rock, New Jersey and one is single tenanted on land located in Rockaway, New Jersey owned by FREIT ~~Maryland~~ from which it receives monthly rental income from a tenant who has built and operates a bank branch on the land. (See Note 7 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for additional details on the sale of these three properties.)

As indicated in the table above under the caption Segment Information, total revenue ~~and NOI~~ from ~~FREIT Maryland’s~~FREIT’s commercial segment for the Current Six Months and Current Quarter decreased by ~~32%~~49.5% and ~~56.1%~~67.9%, respectively, and NOI decreased by 64.5% and 75.3%, respectively, as compared to the Prior Year’s ~~Quarter.~~comparable periods. Average occupancy for all commercial properties for the Current Six Months and Current Quarter decreased by ~~1.3%~~1.8% and 2.2%, respectively, as compared to the Prior Year’s ~~Quarter.~~comparable periods.

The decline in revenue for the Current Six Months was primarily attributable to the following: (a) a decrease of approximately $5.7 million (excluding an increase in the straight-line rent receivable of approximately $0.1 million) attributed to the Maryland Properties sold; and (b) a decrease of approximately $0.4 million, excluding the Maryland Properties sold, primarily attributed to rental revenue being deemed uncollectible and classified as a reduction in rental revenue in the Current Six Months and a decline in the average occupancy rate to 67.7% from 69.5% in the Prior Year’s Six Months. The decrease in NOI for the Current Six Months was primarily attributable to the following: (a) a decrease of approximately $4.1 million attributed to the Maryland Properties sold; (b) a decline in revenue of approximately $0.4 million, excluding the Maryland Properties sold, as explained above; offset by (c) a decrease in the reserve for uncollectible rents of approximately $0.2 million, excluding the Maryland Properties sold, primarily due to rental revenue being deemed uncollectible and classified as a reduction in rental revenue in the Current Six Months.

The decline in revenue for the Current Quarter was primarily attributable to the following: (a) a decrease of approximately ~~$1.9~~$3.9 million ~~(excluding an increase in the straight-line rent receivable of approximately $0.2 million)~~ attributed to the Maryland Properties ~~sold in the Current Quarter;~~sold; and (b) a decrease of approximately ~~$0.1~~$0.3 million, excluding the Maryland Properties sold, primarily attributed to ~~lease termination fees received~~rental revenue being deemed uncollectible and classified as a reduction in rental revenue in the Current Quarter and a decline in the average occupancy rate to 66.6% from 68.8% in the Prior Year’s ~~Quarter from Pet Valu, Inc., a former pet store tenant at the Preakness Shopping Center.~~Quarter. The decrease in NOI for the Current Quarter was primarily attributable to the following: (a) a decrease of approximately ~~$1.8~~$2.3 million attributed to the Maryland Properties ~~sold in the Current Quarter; and~~sold; (b) ~~a decrease of approximately $0.2 million attributed to~~ a decline in revenue of approximately ~~$0.1~~$0.3 million, excluding the Maryland Properties sold, as explained ~~above~~above; offset by (c) a decrease in the reserve for uncollectible rents of approximately $0.2 million, excluding the Maryland Properties sold, primarily due to rental revenue being deemed uncollectible and ~~an increase~~classified as a reduction in rental revenue in the Current Quarter; and (d) a decline in snow removal costs of approximately ~~$0.1~~$0.2 million, atexcluding the ~~Preakness Shopping Center.~~Maryland Properties sold.

Same Property Operating Results: ~~FREIT Maryland’s~~FREIT’s commercial segment currently contains five (5) same properties. (See definition of same property under Segment Information above.) The Rotunda property, the Westridge Square Property and the Damascus Property were excluded from same property results for all periods presented because these properties were sold in the Current ~~Quarter.~~Six Months. Same property revenue ~~and NOI~~ for the Current Six Months and Current Quarter decreased by ~~6.8%~~9% and ~~24%~~11.4%, respectively, and same property NOI decreased by 6.5% and increased by 19.1%, respectively, as compared to the Prior Year’s ~~Quarter.~~comparable periods. The changes resulted from the factors discussed in the immediately preceding paragraph.

Leasing: The following ~~tables reflect~~table reflects leasing activity at ~~FREIT Maryland’s~~FREIT’s commercial properties for comparable leases (leases executed for spaces in which there was a tenant at some point during the previous twelve-month period) and non-comparable leases for the Current ~~Quarter~~Six Months (excluding any leases executed for the Rotunda Property, the Westridge Square Property and the Damascus Property which were sold in the Current ~~Quarter)~~Six Months):

(a) These leasing costs are presented as annualized costs per square foot and are allocated uniformly over the initial lease term.

(b) This includes new tenant leases and/or modifications/extensions/renewals of existing tenant leases.

FREIT ~~Maryland~~ currently operates six (6) multi-family apartment buildings or complexes totaling 792 apartment units, excluding the Icon at the Rotunda Property which was sold on December 30, ~~2021. (See~~2021 (see Note 7 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial ~~statements for additional details on~~statements) and the ~~sale of the Rotunda Property.)~~Pierre Towers property which was converted to a TIC (see Note 5 to FREIT’s condensed consolidated financial statements).

As indicated in the table above under the caption Segment Information, total revenue ~~and NOI~~ from ~~FREIT Maryland’s~~FREIT’s residential segment for the Current Six Months and Current Quarter decreased by ~~4.1%~~17.2% and ~~6.3%~~30%, respectively, and NOI decreased by 20% and 33.5%, respectively, as compared to the Prior Year’s ~~Quarter.~~comparable periods. Average occupancy for all residential properties for the Current Six Months and Current Quarter increased by 1.6% and 1.7%, respectively, as compared to the Prior Year’s comparable periods.

The decrease in revenue for the Current Six Months was primarily attributable to the following: (a) a decrease of approximately $2.9 million attributed to the Icon at the Rotunda Property sold; offset by (b) an increase of approximately $0.6 million, excluding the Icon at the Rotunda Property sold, primarily driven by an increase in base rents and an increase in the average occupancy rate to 98.7% from 97.1% in the Prior Year’s Quarter. The decrease in NOI for the Current Six Months was primarily attributable to the following: (a) a decrease of approximately $2.1 million attributed to the Icon at the Rotunda Property sold; offset by (b) an increase in revenue of approximately $0.6 million, excluding the Icon at the Rotunda Property; and (c) a decrease in the reserve for uncollectible rents of approximately $0.1 million, excluding the Maryland Properties sold.

The decrease in revenue for the Current Quarter was primarily attributable to the following: (a) a decrease of approximately ~~$0.6~~$2.3 million attributed to the Icon at the Rotunda Property ~~sold in the Current Quarter;~~sold; offset by (b) an increase of approximately $0.3 million, excluding the Icon at the Rotunda Property sold, primarily driven by an increase in base rents and an increase in the average occupancy rate to ~~98.9%~~98.5% from ~~97.3%~~96.8% in the Prior Year’s Quarter. The decrease in NOI for the Current Quarter was primarily attributable to the following: (a) a decrease of approximately ~~$0.4~~$1.7 million attributed to the Icon at the Rotunda Property ~~sold in the Current Quarter;~~sold; offset by (b) an increase of approximately ~~$0.2~~$0.3 million in revenue, excluding the Icon at the Rotunda Property ~~which was primarily driven by an increase~~sold; (c) a decrease in ~~revenue as explained above.~~the reserve for uncollectible rents of approximately $0.1 million, excluding the Maryland Properties sold; and (d) a decline in snow removal costs of approximately $0.1 million, excluding the Maryland Properties sold.

Same Property Operating Results: ~~FREIT Maryland’s~~FREIT’s residential segment currently contains six (6) same properties. (See definition of same property under Segment Information above.) The Icon at the Rotunda property was excluded from same property results

for all periods presented because this property was sold in the Current ~~Quarter.~~Six Months. Same property revenue ~~and NOI~~ for the Current Six Months and Current Quarter increased by ~~7.5%~~7.2% and 7%6.9%, respectively, and same property NOI increased by 10.4% and 13.7%, respectively, as compared to the Prior Year’s ~~Quarter.~~comparable periods. The changes resulted from the factors discussed in the immediately preceding paragraph.

~~FREIT Maryland’s~~FREIT’s residential revenue is principally composed of monthly apartment rental income. Total rental income is a factor of occupancy and monthly apartment rents. Monthly average residential rents, (excluding from both periods presented for comparability purposes the Icon at the Rotunda property which was sold in the Current ~~Quarter)~~Six Months), at the end of the Current Quarter and the Prior Year’s Quarter were ~~$1,958~~$1,984 and ~~$1,957,~~$1,892, respectively. A 1% decline in annual average occupancy, or a 1% decline in average rents from current levels, results in an annual revenue decline of approximately ~~$186,000~~$189,000 and ~~$184,000,~~$186,000, respectively.

Capital expenditures: Since all of ~~FREIT Maryland’s~~FREIT’s apartment communities, with the exception of the Boulders, Regency and Station Place properties, were constructed more than 25 years ago, FREIT ~~Maryland~~ tends to spend more in any given year on maintenance and capital improvements than may be spent on newer properties. As a result of the COVID-19 global pandemic, only capital improvements deemed essential are being made at this time. Funds for these capital projects are available from cash flow from the property's operations and cash reserves.

	Three Months Ended January 31,					Six Months Ended April 30,				Three Months Ended April 30,
	2022		2021			2022		2021		2022		2021
	(In Thousands of Dollars)					(In Thousands of Dollars)				(In Thousands of Dollars)
Fixed rate mortgages (a):
1st Mortgages
Existing	$	1,322	$	1,461		$	2,359	$	2,903	$	1,037	$	1,442
New		20		—			72		—		52		—
Variable rate mortgages:					��
1st Mortgages
Existing		952		1,316			1,217		2,581		265		1,265
New		—		—			—		—		—		—
Interest rate swap contracts breakage fee		213		—			213				—		—
Other		58		61			80		140		22		79
Total financing costs, gross		2,565		2,838			3,941		5,624		1,376		2,786
Amortization of mortgage costs		363		294			514		568		151		274
Total financing costs, net	$	2,928	$	3,132		$	4,455	$	6,192	$	1,527	$	3,060

(a) Includes the effect of interest rate swap contracts which effectively convert the floating interest rate to a fixed interest rate over the term of the loan.

(a) Includes the effect of interest rate swap contracts which effectively convert the floating interest rate to a fixed interest rate over the term of the loan.

Total financing costs for the Current ~~Quarter~~Six Months decreased by approximately ~~$204,000,~~$1,737,000, or ~~6.5%~~28.1%, compared to the Prior Year’s ~~Quarter~~Six Months which iswas primarily attributable to the following: (a) a decline of approximately ~~$364,000 in interest on variable rate mortgages~~$1,758,000 primarily attributed to the pay-down ~~in the Current Quarter~~ of the loans outstanding on the ~~Rotunda Property and~~Maryland Properties sold in the ~~Westridge Square Property from the net proceeds of the sale;~~Current Six Months; (b) ~~an increase~~a decrease of approximately ~~$69,000 primarily~~$165,000 attributed to the ~~write-off~~refinancing of the ~~deferred mortgage costs~~loan on the ~~loans associated with~~Boulders property in the ~~sale of~~Current Six Months resulting in a reduction in the ~~Maryland Properties;~~interest rate from 5.37% to 2.85% and in the principal balance from approximately $14.4 million to $7.5 million; offset by (c) an increase of approximately $213,000 attributed to a breakage fee on the early termination of the interest rate swap contracts relating to the loan outstanding on the Damascus property, which was repaid from the net proceeds of the sale of the Damascus property in the Current ~~Quarter. (See~~Six Months.

Total financing costs for the Current Quarter decreased by approximately $1,533,000, or 50.1%, compared to the Prior Year’s Quarter which was primarily attributable to the following: (a) a decline of approximately $1,399,000 primarily attributed to the pay-down of the loans outstanding on the Maryland Properties sold; and (b) a decrease of approximately $117,000 attributed to the refinancing of the loan on the Boulders property.

(See Note 7 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for additional details on the sale of these three properties.)

G&A ~~expense~~ for the Current Six Months and Current Quarter was approximately ~~$1,327,000~~$2,196,000 and $869,000, respectively, compared to ~~$1,260,000~~$2,730,000 and $1,470,000, respectively, for the Prior Year’s ~~Quarter.~~comparable periods. The primary components of G&A are legal and professional fees, directors’ fees, corporate expenses and accounting/auditing fees. The ~~increase~~decrease in G&A for the Current Six Months was primarily driven by reincorporation expenses in the amount of approximately $0.4 million incurred in the Prior Year’s Six Months and a decline in legal costs in the amount of approximately $0.2 million attributed to the legal proceeding between FREIT and certain of its affiliates and Sinatra Properties, LLC. The decrease in G&A for the Current Quarter was primarily driven by ~~an increase~~reincorporation expenses in the amount of approximately $0.3 million incurred in the Prior Year’s Quarter and a decline in legal costs in the amount of approximately $0.3 million attributed to the legal proceeding between FREIT ~~Maryland~~ and certain of its affiliates and Sinatra Properties, LLC.

Depreciation expense for the Current Six Months and Current Quarter was approximately ~~$1,820,000~~$2,534,000 and $714,000, respectively, compared to ~~$2,295,000~~$4,633,000 and $2,338,000, respectively, for the Prior Year’s ~~Quarter.~~comparable periods. The decline in depreciation expense for the Current Six Months and Current Quarter was primarily attributable ~~to the following: (a) a decrease of approximately $0.5 million attributed to~~ the sale of the Maryland ~~Properties in~~Properties. (See Note 7 to FREIT’s condensed consolidated financial statements for additional details on the ~~Current Quarter; offset by (b) an increase~~sale of ~~approximately $0.1 million attributed to tenant improvements written off at the Preakness Shopping Center in the Current Quarter.~~

Net cash provided by operating activities was approximately $2.9 million for the Current ~~Quarter~~Six Months compared to net cash provided by operating activities of approximately ~~$5.2~~$8.8 million for the Prior Year’s ~~Quarter.~~Six Months. FREIT ~~Maryland~~ expects that cash provided by operating activities and cash reserves will be adequate to cover mandatory debt service payments (including payments of interest, but excluding balloon payments which are expected to be refinanced and/or extended), real estate taxes, dividends, recurring capital improvements at its properties and other needs to maintain its status as a REIT for at least a period of one year from the date of filing of this quarterly report on Form 10-Q.

As of ~~January 31,~~April 30, 2022, FREIT ~~Maryland~~ had cash, cash equivalents and restricted cash totaling ~~$106.9~~$104 million, compared to $39 million at October 31, 2021. The increase in cash in the Current ~~Quarter is~~Six Months was primarily attributable to approximately ~~$252.3~~$250.8 million in net cash provided by investing activities including capital expenditures and $2.9 million in net cash provided by operating activities offset by approximately ~~$187.3~~$188.8 million in net cash used in financing activities. The increase in cash of approximately ~~$67.9~~$64.9 million was primarily attributed to the following: (a) a distribution of net proceeds received from the sale of the Rotunda Property of approximately $54.2 million (inclusive of a loan repayment from Grande Rotunda of approximately $27.7 million and repayment of secured loans receivable including accrued interest ~~held~~ by certain members in Rotunda 100 of approximately $5.1 million); (b) a distribution of net proceeds received from the sale of the Damascus Property of approximately $11.8 million; (c) ~~anticipated funds~~net proceeds received from the sale of the Westridge Square Property of approximately ~~$9.3 million~~$0.1 million; (d) anticipated funds to be released of approximately $6.3 million and funds released of approximately $1.9 million from the funds held in post-closing escrow for rents related to the sale of the Maryland Properties; offset by ~~(d)~~(e) a loan pay-down including closing costs of approximately $7.6 million attributed to the refinancing of the loan on the Boulders property; and ~~(e) a net cash outlay from~~(f) dividends paid in the ~~sale of~~Current Six Months the ~~Westridge Square Property~~amount of approximately ~~$0.7~~$1.4 million. (See Note 7 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for additional details on the sale of these three properties.)

Credit Line: ~~FREIT Maryland’s~~FREIT’s revolving line of credit provided by Provident Bank was renewed for a three-year term ending on October 31, 2023. 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 Maryland’s~~FREIT’s Franklin Crossing Shopping Center in Franklin Lakes, New Jersey and retail space in Glen Rock, New Jersey. The total line of credit is $13 million and the interest rate on the amount outstanding is based on a floating interest

rate of prime minus 25 basis points with a floor of 3.75%. As of ~~January 31,~~April 30, 2022 and October 31, 2021, there was no amount outstanding and $13 million was available under the line of credit.

Dividend: After careful consideration of ~~FREIT Maryland’s~~FREIT’s projected operating results and cash needs, the Board declared a dividend of $0.10 per share in the ~~first~~second quarter of Fiscal 2022 which ~~was~~will be paid on ~~March~~June 15, 2022 to stockholders of record on ~~March~~June 1, 2022. The Board will continue to evaluate the dividend on a quarterly basis.

As of ~~January 31,~~April 30, 2022, ~~FREIT Maryland’s~~FREIT’s aggregate outstanding mortgage debt was ~~$137.8~~$137.2 million, which bears a weighted average interest rate of ~~3.94%~~3.96% and an average life of approximately ~~2.03~~1.9 years. ~~FREIT Maryland’s~~FREIT’s mortgages are subject to amortization schedules that are longer than the terms of the mortgages. As such, balloon payments (unpaid principal amounts at the mortgage due date) for all mortgage debt will be required as follows:

The following table shows the estimated fair value and net carrying value of ~~FREIT Maryland’s~~FREIT’s long-term debt at ~~January 31,~~April 30, 2022 and October 31, 2021:

($ in Millions)		January 31, 2022	October 31, 2021		April 30, 2022	October 31, 2021

Fair Value		$136.5	$301.6		$131.8	$301.6

Carrying Value, Net	Carrying Value, Net	$136.5	$299.9	Carrying Value, Net	$136.1	$299.9

FREIT ~~Maryland~~ expects to refinance the individual mortgages with new mortgages or exercise extension options when their terms expire. To this extent FREIT ~~Maryland~~ has exposure to interest rate risk. If interest rates, at the time any individual mortgage note is due, are higher than the current fixed interest rate, higher debt service may be required, and/or refinancing proceeds may be less than the amount of mortgage debt being retired. For example, at ~~January 31,~~April 30, 2022, a 1% interest rate increase would reduce the fair value of ~~FREIT Maryland’s~~FREIT’s debt by $4$3.6 million, and a 1% decrease would increase the fair value by ~~$4.3~~$3.8 million.

FREIT ~~Maryland~~ continually reviews its debt levels to determine if additional debt can prudently be utilized for property acquisitions for its real estate portfolio that will increase income and cash flow to stockholders.

On December 30, 2021, FREIT ~~Maryland~~ refinanced its $14.4 million loan (which would have matured on February 1, 2022) on its Boulders property located in Rockaway, New Jersey with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn upon in the amount of $7,500,000 for corporate needs inclusive of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property resulting from the legal proceeding between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC (See Note 6 to FREIT Maryland’s condensed consolidated financial statements).needs. This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT ~~Maryland~~ to extend for one year from the maturity date, subject to certain provisions of the loan agreement. This refinancing will provide annual debt service savings of approximately $1,173,000 as a result of the reduction in the principal amount, 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.

Interest rate swap contracts: To reduce interest rate volatility, FREIT ~~Maryland~~ uses a “pay fixed, receive floating” interest rate swap to convert floating interest rates to fixed interest rates over the term of a certain loan. FREIT ~~Maryland~~ enters into these swap contracts with a counterparty that is usually a high-quality commercial bank. In essence, FREIT ~~Maryland~~ agrees to pay its counterparties a fixed rate of interest on a dollar amount of notional principal (which generally corresponds to ~~FREIT Maryland’s~~FREIT’s mortgage debt) over a term equal to the term of the mortgage

notes. ~~FREIT Maryland’s~~FREIT’s counterparties, in return, agree to pay FREIT ~~Maryland~~ a short-term rate of interest - generally LIBOR - on that same notional amount over the same term as the mortgage notes.

FREIT ~~Maryland~~ has variable interest rate loans secured by its Damascus Centre, Regency, Wayne PSC and Station Place properties. To reduce interest rate fluctuations, FREIT ~~Maryland~~ entered into interest rate swap contracts for each of these loans. These interest rate swap contracts effectively converted variable interest rate payments to fixed interest rate payments. The contracts were based on a notional amount of approximately $16,200,000 ($~~14,838,000~~14,754,000 at ~~January 31,~~April 30, 2022) for the Regency swap, a notional amount of approximately $25,800,000 ($~~22,144,000~~21,949,000 at ~~January 31,~~April 30, 2022) for the Wayne PSC swap and a notional amount of approximately $12,350,000 ($~~11,917,000~~11,862,000 at ~~January 31,~~April 30, 2022) for the Station Place swap. On January 10, 2022, the property owned by Damascus Centre was sold and a portion of the proceeds from the sale was used to pay off the $18.2 million then outstanding balance of ~~this~~the underlying loan and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on this loan which was included as interest expense on the accompanying condensed consolidated statement of income for the ~~three~~six months ended ~~January 31,~~April 30, 2022. (See Note 7 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for further details.)

Interest rate cap contract: To limit exposure on interest rate volatility, FREIT ~~Maryland~~ uses an interest rate cap contract to cap a floating interest rate at a set pre-determined rate. FREIT ~~Maryland~~ enters into cap contracts with a counterparty that is usually a high-quality commercial bank. In essence, so long as the floating interest rate is below the cap rate, FREIT ~~Maryland~~ agrees to pay its counterparties a variable rate of interest on a dollar amount of notional principal (which generally corresponds to ~~FREIT Maryland’s~~FREIT’s mortgage debt). Once the floating interest rate rises above the cap rate, ~~FREIT Maryland’s~~FREIT’s counterparties, in return, agree to pay FREIT ~~Maryland~~ a short-term rate of interest above the cap on that same notional amount.

FREIT ~~Maryland~~ had a variable interest rate loan secured by its Rotunda Property. As part of the refinancing of Grande Rotunda’s construction loan with a new loan from Aareal Capital Corporation, Grande Rotunda had purchased an interest rate cap contract on LIBOR for the full amount that could have been drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for the first two years of this loan which matured on March 5, 2020. On February 28, 2020, Grande Rotunda had purchased an interest rate cap on LIBOR, with an effective date of March 5, 2020, for the full amount that could have been drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for one year, maturing on March 5, 2021. Effective February 6, 2021, Grande Rotunda exercised the first extension option on this loan with a balance in the amount of approximately $118.5 million, extending

the loan one year with a new maturity date of February 6, 2022. Additionally, Grande Rotunda purchased an interest rate cap contract on LIBOR, with an effective date of March 5, 2021, for the loan amount of approximately $118.5 million, capping the one-month LIBOR rate at 3% for one year expiring on February 6, 2022. On December 30, 2021, the Rotunda Property owned by Grande Rotunda was sold, a portion of the proceeds from the sale was used to pay off the $116.5 million then outstanding balance of ~~this~~the underlying loan and the corresponding interest rate cap on this loan matured with no settlement due at maturity. (See Note 7 to ~~FREIT Maryland’s~~FREIT’s condensed consolidated financial statements for further details.)

In accordance with ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities to Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815")”, FREIT ~~Maryland~~ marks-to-market its interest rate swap and cap contracts. As the floating interest rate varies from time-to-time over the term of the contract, the value of the contract will change upward or downward. If the floating rate is higher than the fixed rate, the value of the contract goes up and there is a gain and an asset. If the floating rate is less than the fixed rate, there is a loss and a liability. The interest rate swaps and cap are accounted for as cash flow hedges with the corresponding gains or losses on these contracts not affecting ~~FREIT Maryland’s~~FREIT’s condensed consolidated statement of ~~income;~~operations; changes in the fair value of these cash flow hedges will be reported in other comprehensive income and appear in the equity section of the condensed consolidated balance sheet. This gain or loss represents the economic consequence of liquidating fixed rate swaps or the cap contract and replacing them with like-duration funding at current market rates, something we would likely never do. Periodic cash settlements of these contracts will be accounted for as an adjustment to interest expense.

FREIT ~~Maryland~~ has the following derivative-related risks with its interest rate swap and cap contracts (“contract”): 1) early termination risk, and 2) counterparty credit risk.

Early Termination Risk: If FREIT ~~Maryland~~ wants to terminate its contract before maturity, it would be bought out or terminated at market value; i.e., the difference in the present value of the anticipated net cash flows from each of the contract’s parties. If current variable interest rates are significantly below ~~FREIT Maryland’s~~FREIT’s fixed interest rate payments, this could be costly. Conversely, if interest rates rise above ~~FREIT Maryland’s~~FREIT’s fixed interest payments and FREIT ~~Maryland~~ elected early termination, FREIT ~~Maryland~~ would realize a gain on termination. At ~~January 31,~~April 30, 2022, the contracts for Regency, ~~and~~ Station Place and Wayne PSC were in ~~the counterparties’ favor and the contract for Wayne PSC was in FREIT Maryland’s~~FREIT’s favor. If FREIT ~~Maryland~~ had terminated these contracts at that date it would have realized ~~losses~~gains of approximately ~~$475,000~~$131,000 for the Regency swap, ~~and $642,000~~$158,000 for the Station Place swap and $1,204,000 for the Wayne PSC swap all of which have been included as ~~a liability~~an asset in ~~FREIT Maryland’s~~FREIT’s condensed consolidated balance sheet as at ~~January 31, 2022 and a gain of approximately $71,000 for the Wayne PSC swap which has been included as an asset in FREIT Maryland’s condensed consolidated balance sheet as of January 31,~~April 30, 2022. The change in the fair value for the contract (gain or loss) during such period has been included in comprehensive income (loss) and for the six and three months ended ~~January 31,~~April 30, 2022, ~~and 2021,~~ FREIT ~~Maryland~~ recorded an unrealized gain of approximately ~~$1,262,000~~$3,801,000 and ~~$498,000,~~$2,539,000, respectively, in the condensed consolidated statements of comprehensive income. For the six and three months ended April 30, 2021, FREIT recorded an unrealized gain of approximately $1,675,000 and $1,177,000, respectively, in the condensed consolidated statements of comprehensive income.

Counterparty Credit Risk: Each party to a contract bears the risk that its counterparty will default on its obligation to make a periodic payment. FREIT ~~Maryland~~ reduces this risk by entering into a contract only with major financial institutions that are experienced market makers in the derivatives market.

Funds From Operations (“FFO”) is a non-GAAP measure defined by the National Association of Real Estate Investment Trusts (“NAREIT”). FREIT ~~Maryland~~ does not include distributions from equity/debt/capital gain sources in its computation of FFO. Although many consider FFO as the standard measurement of a REIT’s performance, FREIT ~~Maryland~~ modified the NAREIT computation of FFO to include other adjustments to GAAP net income that are not considered by management to be the primary drivers of its decision making process. These adjustments to GAAP net income are straight-line rents and recurring capital improvements on ~~FREIT Maryland’s~~FREIT’s residential apartments. The modified FFO computation is referred to as Adjusted Funds From Operations (“AFFO”). FREIT ~~Maryland~~ believes that AFFO is a superior measure of its operating performance. FREIT ~~Maryland~~ computes FFO and AFFO as follows:

FFO and AFFO do not represent cash generated from operating activities in accordance with GAAP, and therefore should not be considered a substitute for net income as a measure of results of operations or for cash flow from operations as a measure of liquidity. Additionally, the application and calculation of FFO and AFFO by certain other REITs may vary materially from that of FREIT, ~~Maryland,~~ and therefore ~~FREIT Maryland’s~~FREIT’s FFO and AFFO may not be directly comparable to those of other REITs.

Inflation can impact the financial performance of FREIT ~~Maryland~~ in various ways. ~~FREIT Maryland’s~~FREIT’s commercial tenant leases normally provide that the tenants bear all or a portion of most operating expenses, which can reduce the impact of inflationary increases on ~~FREIT Maryland.~~FREIT. Apartment leases are normally for a one-year term, which may allow FREIT ~~Maryland~~ to seek increased rents as leases renew or when new tenants are obtained, subject to prevailing market conditions.

See “Commercial Segment”, “Residential Segment” and “Liquidity and Capital Resources” under Item 2 above for a detailed discussion of ~~FREIT Maryland’s~~FREIT’s quantitative and qualitative market risk disclosures.

At the end of the period covered by this report, we carried out an evaluation of the effectiveness of the design and operation of ~~FREIT Maryland’s~~FREIT’s disclosure controls and procedures. This evaluation was carried out under the supervision and with participation of ~~FREIT Maryland’s~~FREIT’s management, including ~~FREIT Maryland’s~~FREIT’s Chief Executive Officer and Chief Financial Officer, who concluded that ~~FREIT Maryland’s~~FREIT’s disclosure controls and procedures are effective as of ~~January 31,~~April 30, 2022. There has been no change in ~~FREIT Maryland’s~~FREIT’s internal control over financial reporting during the period covered by this report that has materially affected, or is reasonably likely to materially affect, ~~FREIT Maryland’s~~FREIT’s internal control over financial reporting.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in ~~FREIT Maryland’s~~FREIT’s reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in ~~FREIT Maryland’s~~FREIT’s reports filed under the Exchange Act is accumulated and communicated to management, including ~~FREIT Maryland’s~~FREIT’s Chief Executive Officer and Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

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 provided 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.

~~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 deemed just and equitable.~~

OnThe February 4, 2022 ~~the Court entered an~~ Order ~~(the “Order”) with respect to the Summary Judgment Motions which~~ provides as follows:

(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.

The Sellers ~~are~~have been evaluating the February 4, 2022 Order and their rights and remedies with respect thereto.

There were no material changes in any risk factors previously disclosed in FREIT’s Annual Report on Form 10-K for the year ended October 31, 2021, that was filed with the Securities and Exchange Commission on January 28, 2022.

Exhibit 101 - The following materials from ~~FREIT Maryland’s~~FREIT’s quarterly report on Form 10-Q for the period ended ~~January 31,~~April 30, 2022, are formatted in Inline Extensible Business Reporting Language (“iXBRL”): (i) condensed consolidated balance sheets; (ii) condensed consolidated statements of ~~income;~~operations; (iii) condensed consolidated statements of comprehensive income; (iv) condensed consolidated statements of equity; (v) condensed consolidated statements of cash flows; and (vi) notes to condensed consolidated financial statements.

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


Recurring capital improvements - residential	$	(206	)	$	(180	)	$	(158	)	$	(98	)

RETAIL:	Number of Leases		Lease Area (Sq. Ft.)		Weighted Average Lease Rate (per Sq. Ft.)		Weighted Average Prior Lease Rate (per Sq. Ft.)		% Increase (Decrease)		Tenant Improvement Allowance (per Sq. Ft.) (a)		Lease Commissions (per Sq. Ft.) (a)

Comparable leases (b)		5		90,493	$	5.51	$	6.67		-17.4%	$	—	$	0.02

Non-comparable leases		5		11,875	$	26.37		N/A		N/A	$	1.07	$	1.32

Total leasing activity		10		102,368

RETAIL:	Number of Leases		Lease Area (Sq. Ft.)		Weighted Average Lease Rate (per Sq. Ft.)		Weighted Average Prior Lease Rate (per Sq. Ft.)		% Increase (Decrease)		Tenant Improvement Allowance (per Sq. Ft.) (a)		Lease Commissions (per Sq. Ft.) (a)

Comparable leases (b)		1		2,750	$	20.50	$	60.80		-66.3%	$	—	$	—

Non-comparable leases		2		4,483	$	25.15		N/A		N/A	$	1.49	$	1.26

Total leasing activity		3		7,233

Fiscal Year		2022	2023	2024	2025	2026	2027	2028	2029
($ in millions)
Mortgage "Balloon" Payments		$47.4 (A)	$17.1	$16.5	$13.9	$0.0	$0.0	$10.5	$26.0

	(A)	Includes the following:
		(1) A loan on the Preakness Shopping Center located in Wayne, New Jersey in the amount of approximately $22.4 million. Although the Company continues to make its required debt service payments in accordance with the loan agreement, it is unable to comply with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank. As such, the bank could exercise its remedies under the loan agreement including, among other things, requiring a partial or full repayment of the loan. (See Note 9 to FREIT Maryland's condensed consolidated financial statements for additional details.)

		(2) A loan on the Westwood Hills property located in Westwood, New Jersey in the amount of $25 million which matures on October 1, 2022 and has an option to extend for two (2) additional six (6)-month periods from the maturity date, subject to provisions of the loan agreement.

Fiscal Year		2022	2023	2024	2025	2026	2027	2028	2029
($ in millions)
Mortgage "Balloon" Payments		$47.4 (A)	$17.1	$16.5	$13.9	$0.0	$0.0	$10.5	$26.0

	(A)	Includes the following:
		(1) A loan on the Preakness Shopping Center located in Wayne, New Jersey in the amount of approximately $22.2 million. Although the Company continues to make its required debt service payments in accordance with the loan agreement, it was unable to comply with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank. On June 2, 2022, the lender agreed to waive the covenant default subject to the loan being paid off on or before September 1, 2022. (See Note 9 to FREIT's condensed consolidated financial statements for additional details.)

		(2) A loan on the Westwood Hills property located in Westwood, New Jersey in the amount of $25 million which matures on October 1, 2022 and has an option to extend for two (2) additional six (6)-month periods from the maturity date, subject to provisions of the loan agreement.

NON-GAAP NET INCOME COMPONENTS	Three Months Ended
	January 31,
	2022			2021			Change
	(In Thousands of Dollars)
Income from real estate operations:
Commercial properties	$	1,626		$	3,518		$	(1,892	)
Residential properties		3,697			3,945			(248	)
Total income from real estate operations		5,323			7,463			(2,140	)

Financing costs:
Fixed rate mortgages		(1,342	)		(1,461	)		119
Floating rate mortgages		(952	)		(1,316	)		364
Interest rate swap contracts breakage fee		(213	)		—			(213	)
Other - Corporate interest		(58	)		(61	)		3
Mortgage cost amortization		(363	)		(294	)		(69	)
Total financing costs		(2,928	)		(3,132	)		204

Investment income		26			30			(4	)

General & administrative expenses:
Accounting fees		(138	)		(154	)		16
Legal and professional fees		(713	)		(532	)		(181	)
Directors fees		(273	)		(237	)		(36	)
Stock option expense		(5	)		(12	)		7
Corporate expenses		(198	)		(325	)		127
Total general & administrative expenses		(1,327	)		(1,260	)		(67	)

Depreciation		(1,820	)		(2,295	)		475
Loss on investment in tenancy-in-common		(124	)		(27	)		(97	)
Adjusted net (loss) income		(850	)		779			(1,629	)

Net gain on sale of Maryland properties		70,003			—			70,003
Net income		69,153			779			68,374

Net income attributable to noncontrolling interests in subsidiaries		(23,376	)		(221	)		(23,155	)

Net income attributable to common equity	$	45,777		$	558		$	45,219

NON-GAAP NET INCOME (LOSS) COMPONENTS	Six Months Ended									Three Months Ended
	April 30,									April 30,
	2022			2021			Change			2022			2021			Change
	(In Thousands of Dollars)									(In Thousands of Dollars)
Income from real estate operations:
Commercial properties	$	2,286		$	6,390		$	(4,104	)	$	660		$	2,872		$	(2,212	)
Residential properties		6,372			7,967			(1,595	)		2,675			4,022			(1,347	)
Total income from real estate operations		8,658			14,357			(5,699	)		3,335			6,894			(3,559	)

Financing costs:
Fixed rate mortgages		(2,431	)		(2,903	)		472			(1,089	)		(1,442	)		353
Floating rate mortgages		(1,217	)		(2,581	)		1,364			(265	)		(1,265	)		1,000
Interest rate swap contracts breakage fee		(213	)		—			(213	)		—			—			—
Other - Corporate interest		(80	)		(140	)		60			(22	)		(79	)		57
Mortgage cost amortization		(514	)		(568	)		54			(151	)		(274	)		123
Total financing costs		(4,455	)		(6,192	)		1,737			(1,527	)		(3,060	)		1,533

Investment income		64			59			5			38			29			9

General & administrative expenses:
Accounting fees		(251	)		(264	)		13			(113	)		(110	)		(3	)
Legal and professional fees		(1,010	)		(1,177	)		167			(297	)		(645	)		348
Directors fees		(533	)		(465	)		(68	)		(260	)		(228	)		(32	)
Stock option expense		(10	)		(24	)		14			(5	)		(12	)		7
Corporate expenses		(392	)		(800	)		408			(194	)		(475	)		281
Total general & administrative expenses		(2,196	)		(2,730	)		534			(869	)		(1,470	)		601

Depreciation		(2,534	)		(4,633	)		2,099			(714	)		(2,338	)		1,624
Loss on investment in tenancy-in-common		(156	)		(145	)		(11	)		(32	)		(118	)		86
Adjusted net (loss) income		(619	)		716			(1,335	)		231			(63	)		294

Net gain (loss) on sale of Maryland properties		68,771			—			68,771			(1,232	)		—			(1,232	)
Net income (loss)		68,152			716			67,436			(1,001	)		(63	)		(938	)

Net (income) loss attributable to noncontrolling interests in subsidiaries		(22,727	)		(149	)		(22,578	)		649			72			577

Net income (loss) attributable to common equity	$	45,425		$	567		$	44,858		$	(352	)	$	9		$	(361	)

	For the Three Months Ended January 31,
	2022			2021
	(In Thousands, Except Per Share)
Funds From Operations ("FFO") (a)
Net income	$	69,153		$	779
Depreciation of consolidated properties		1,820			2,295
Amortization of deferred leasing costs		71			110
Distributions to non-controlling interests		(345	)		—
Net gain on sale of Maryland properties		(70,003	)		—
Adjustment to loss in investment in tenancy-in-common for depreciation		353			351
FFO	$	1,049		$	3,535

Per Share - Basic and Diluted	$	0.15		$	0.50

(a) As prescribed by NAREIT.

Adjusted Funds From Operations ("AFFO")
FFO	$	1,049		$	3,535
Deferred rents (Straight lining)		10			206
Capital Improvements - Apartments		(48	)		(82	)
AFFO	$	1,011		$	3,659

Per Share - Basic and Diluted	$	0.14		$	0.52

Weighted Average Shares Outstanding:
Basic		7,036			7,009
Diluted		7,099			7,009

	For the Six Months Ended April 30,						For the Three Months Ended April 30,
	2022			2021			2022			2021
	(In Thousands, Except Per Share)						(In Thousands, Except Per Share)
Funds From Operations ("FFO") (a)
Net income (loss)	$	68,152		$	716		$	(1,001	)	$	(63	)
Depreciation of consolidated properties		2,534			4,633			714			2,338
Amortization of deferred leasing costs		88			232			17			122
Distributions to non-controlling interests		(525	)		(510	)		(180	)		(510	)
Net (gain) loss on sale of Maryland properties		(68,771	)		—			1,232			—
Adjustment to loss in investment in tenancy-in-common for depreciation		707			703			354			352
FFO	$	2,185		$	5,774		$	1,136		$	2,239

Per Share - Basic and Diluted	$	0.31		$	0.82		$	0.16		$	0.32

(a) As prescribed by NAREIT.

Adjusted Funds From Operations ("AFFO")
FFO	$	2,185		$	5,774		$	1,136		$	2,239
Deferred rents (Straight lining)		61			213			51			7
Capital Improvements - Apartments		(206	)		(180	)		(158	)		(98	)
AFFO	$	2,040		$	5,807		$	1,029		$	2,148

Per Share - Basic and Diluted	$	0.29		$	0.83		$	0.15		$	0.31

Weighted Average Shares Outstanding:
Basic		7,037			7,012			7,038			7,016
Diluted		7,108			7,012			7,038			7,018

	FIRST REAL ESTATE INVESTMENT
	TRUST OF NEW JERSEY, INC.
	(Registrant)

Date: ~~March 17,~~June 14, 2022
	/s/ Robert S. Hekemian, Jr.
	(Signature)
	Robert S. Hekemian, Jr.
	President and Chief Executive Officer
	(Principal Executive Officer)


	/s/ Allan Tubin
	(Signature)
	Allan Tubin
	Chief Financial Officer and Treasurer
	(Principal Financial/Accounting Officer)