Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2021 | Sep. 14, 2021 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0000036840 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jul. 31, 2021 | |
Entity File Number | 000-25043 | |
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 22-1697095 | |
Entity Address, Address Line One | 505 Main Street | |
Entity Address, City or Town | Hackensack | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07601 | |
City Area Code | 201 | |
Local Phone Number | 488-6400 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | FREVS | |
Name of Exchange on which Security is Registered | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,860,048 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 272,362 | $ 278,150 |
Construction in progress | 642 | 566 |
Cash and cash equivalents | 36,359 | 36,860 |
Investment in tenancy-in-common | 19,433 | 20,101 |
Tenants' security accounts | 1,343 | 1,408 |
Receivables arising from straight-lining of rents | 3,752 | 3,977 |
Accounts receivable, net of allowance for doubtful accounts of $891 and $804 as of July 31, 2021 and October 31, 2020, respectively | 1,366 | 1,811 |
Secured loans receivable | 5,268 | 5,194 |
Prepaid expenses and other assets | 5,525 | 4,985 |
Deferred charges, net | 2,096 | 2,163 |
Total Assets | 348,146 | 355,215 |
Liabilities: | ||
Mortgages payable, including deferred interest of $358 and $360 as of July 31, 2021 and October 31, 2020, respectively | 302,774 | 307,240 |
Less unamortized debt issuance costs | 1,612 | 1,810 |
Mortgages payable, net | 301,162 | 305,430 |
Due to affiliate | 3,229 | 5,921 |
Deferred director compensation payable | 2,475 | 2,633 |
Accounts payable and accrued expenses | 2,813 | 2,277 |
Dividends payable | 343 | |
Tenants' security deposits | 2,030 | 2,124 |
Deferred revenue | 895 | 1,043 |
Interest rate cap and swap contracts | 3,483 | 4,924 |
Total Liabilities | 316,430 | 324,352 |
Commitments and contingencies | ||
Common equity: | ||
Shares of beneficial interest without par value: 0 shares authorized and issued at July 31, 2021; 8,000,000 shares authorized and 6,993,152 shares issued plus 152,144 vested share units granted to Directors at October 31, 2020 | 27,960 | |
Treasury stock, at cost: 0 and 136,501 shares at July 31, 2021 and October 31, 2020, respectively | (2,863) | |
Shares of common stock with par value of $0.01 per share: 20,000,000 and 0 shares authorized at July 31, 2021 and October 31, 2020, respectively; 6,860,048 and 0 shares issued plus 169,075 and 0 vested share units granted to Directors at July 31, 2021 and October 31, 2020, respectively | 71 | |
Shares of preferred stock with par value of $0.01 per share: 5,000,000 and 0 shares authorized and issued, respectively, at July 31, 2021; 0 shares authorized and issued, respectively, at October 31, 2020 | ||
Additional Paid-In-Capital | 25,417 | |
Retained earnings | 13,516 | 13,791 |
Accumulated other comprehensive loss | (2,885) | (3,986) |
Total Common Equity | 36,119 | 34,902 |
Noncontrolling interests in subsidiaries | (4,403) | (4,039) |
Total Equity | 31,716 | 30,863 |
Total Liabilities and Equity | $ 348,146 | $ 355,215 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 891 | $ 804 |
Deferred interest | $ 358 | $ 360 |
Shares of benefical interest, authorized | 0 | 8,000,000 |
Shares of benefical interest, issued | 0 | 6,993,152 |
Beneficial vested share units granted to Directors | 0 | 152,144 |
Treasury stock at cost, shares | 0 | 136,501 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 0 |
Common stock, shares issued | 6,860,048 | 0 |
Common vested share units to Directors | 169,075 | 0 |
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Revenue: | ||||
Rental income | $ 10,956 | $ 10,701 | $ 32,871 | $ 36,158 |
Reimbursements | 1,470 | 1,382 | 4,667 | 4,804 |
Sundry income | 116 | 66 | 562 | 468 |
Total revenue | 12,542 | 12,149 | 38,100 | 41,430 |
Expenses: | ||||
Operating expenses | 4,193 | 4,293 | 13,078 | 12,620 |
Third party transaction costs (See Note 6) | 87 | 4,606 | ||
Management fees | 538 | 496 | 1,625 | 1,719 |
Real estate taxes | 2,059 | 2,007 | 6,018 | 6,529 |
Depreciation | 2,315 | 2,425 | 6,948 | 7,887 |
Total expenses | 9,105 | 9,308 | 27,669 | 33,361 |
Operating income | 3,437 | 2,841 | 10,431 | 8,069 |
Investment income | 29 | 38 | 88 | 174 |
Gain on deconsolidation of subsidiary | 27,680 | |||
Loss on investment in tenancy-in-common | (100) | (78) | (245) | (96) |
Interest expense including amortization of deferred financing costs | (3,050) | (3,121) | (9,242) | (11,032) |
Net income (loss) | 316 | (320) | 1,032 | 24,795 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (107) | 139 | (256) | (18) |
Net income (loss) attributable to common equity | $ 209 | $ (181) | $ 776 | $ 24,777 |
Earnings per share: | ||||
Basic | $ 0.03 | $ (0.02) | $ 0.11 | $ 3.55 |
Diluted | $ 0.03 | $ (0.02) | $ 0.11 | $ 3.54 |
Weighted average shares outstanding: | ||||
Basic | 7,022 | 6,998 | 7,016 | 6,989 |
Diluted | 7,026 | 6,998 | 7,018 | 6,992 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 316 | $ (320) | $ 1,032 | $ 24,795 |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on interest rate cap and swap contracts before reclassifications | (551) | (576) | 501 | (4,082) |
Amount reclassified from accumulated other comprehensive loss to interest expense | 317 | 304 | 940 | 438 |
Net unrealized gain (loss) on interest rate cap and swap contracts | (234) | (272) | 1,441 | (3,644) |
Comprehensive income (loss) | 82 | (592) | 2,473 | 21,151 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (107) | 139 | (256) | (18) |
Other comprehensive (income) loss: | ||||
Unrealized (gain) loss on interest rate cap and swap contracts attributable to noncontrolling interests in subsidiaries | 91 | 100 | (340) | 1,069 |
Comprehensive (income) loss attributable to noncontrolling interests in subsidiaries | (16) | 239 | (596) | 1,051 |
Comprehensive income (loss) attributable to common equity | $ 66 | $ (353) | $ 1,877 | $ 22,202 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Shares of Beneficial Interest [Member] | Treasury Shares at Cost [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Loss [Member] | Total Common Equity [Member] | Noncontrolling Interests [Member] | Total | |
Balance at Oct. 31, 2019 | $ 28,847 | $ (4,330) | $ (6,762) | $ (2,040) | $ 15,715 | $ 333 | $ 16,048 | |||
Balance, shares at Oct. 31, 2019 | 7,185 | 206 | ||||||||
Stock based compensation expense | $ 12 | 12 | 12 | |||||||
Vested share units granted to Directors and consultant | $ 211 | 211 | 211 | |||||||
Vested share units granted to Directors and consultant, shares | 10 | |||||||||
Vested share units issued to consultant and retired Director | [1] | $ (1,401) | $ 1,401 | |||||||
Vested share units issued to consultant and retired Director, shares | [1] | (66) | (66) | |||||||
Distributions to noncontrolling interests | (583) | (583) | ||||||||
Net (loss) income | (2,262) | (2,262) | 241 | (2,021) | ||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | (261) | (261) | (129) | (390) | ||||||
Balance at Jan. 31, 2020 | $ 27,669 | $ (2,929) | (9,024) | (2,301) | 13,415 | (138) | 13,277 | |||
Balance, shares at Jan. 31, 2020 | 7,129 | 140 | ||||||||
Balance at Oct. 31, 2019 | $ 28,847 | $ (4,330) | (6,762) | (2,040) | 15,715 | 333 | 16,048 | |||
Balance, shares at Oct. 31, 2019 | 7,185 | 206 | ||||||||
Vested share units issued to consultant and retired Director | (1,467) | |||||||||
Deconsolidation of subsidiary | 3,596 | |||||||||
Net (loss) income | 24,795 | |||||||||
Balance at Jul. 31, 2020 | $ 27,869 | $ (2,863) | 18,015 | (4,615) | 38,406 | 2,295 | 40,701 | |||
Balance, shares at Jul. 31, 2020 | 7,139 | 137 | ||||||||
Balance at Jan. 31, 2020 | $ 27,669 | $ (2,929) | (9,024) | (2,301) | 13,415 | (138) | 13,277 | |||
Balance, shares at Jan. 31, 2020 | 7,129 | 140 | ||||||||
Stock based compensation expense | $ 12 | 12 | 12 | |||||||
Vested share units issued to retired Director | [1] | $ (66) | $ 66 | |||||||
Vested share units issued to retired Director, shares | [1] | (3) | (3) | |||||||
Vested share units granted to Directors | $ 166 | 166 | 166 | |||||||
Vested share units granted to Directors, shares | 8 | |||||||||
Deconsolidation of subsidiary | 3,596 | 3,596 | ||||||||
Net (loss) income | 27,220 | 27,220 | (84) | 27,136 | ||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | (2,142) | (2,142) | (840) | (2,982) | ||||||
Balance at Apr. 30, 2020 | $ 27,781 | $ (2,863) | 18,196 | (4,443) | 38,671 | 2,534 | 41,205 | |||
Balance, shares at Apr. 30, 2020 | 7,134 | 137 | ||||||||
Stock based compensation expense | $ 11 | 11 | 11 | |||||||
Vested share units granted to Directors | $ 77 | 77 | 77 | |||||||
Vested share units granted to Directors, shares | 5 | |||||||||
Net (loss) income | (181) | (181) | (139) | (320) | ||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | (172) | (172) | (100) | (272) | ||||||
Balance at Jul. 31, 2020 | $ 27,869 | $ (2,863) | 18,015 | (4,615) | 38,406 | 2,295 | 40,701 | |||
Balance, shares at Jul. 31, 2020 | 7,139 | 137 | ||||||||
Balance at Oct. 31, 2020 | $ 27,960 | $ (2,863) | 13,791 | (3,986) | 34,902 | (4,039) | 30,863 | |||
Balance, shares at Oct. 31, 2020 | 7,145 | 137 | ||||||||
Stock based compensation expense | $ 12 | 12 | 12 | |||||||
Vested share units granted to Directors, including dividends declared payable in share units (per share) | $ 118 | 118 | 118 | |||||||
Vested share units granted to Directors, including dividends declared payable in share units (per share), shares | 7 | |||||||||
Net (loss) income | 558 | 558 | 221 | 779 | ||||||
Dividends declared, including payable in share units (per share) | (350) | (350) | (350) | |||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | 387 | 387 | 111 | 498 | ||||||
Balance at Jan. 31, 2021 | $ 28,090 | $ (2,863) | 13,999 | (3,599) | 35,627 | (3,707) | 31,920 | |||
Balance, shares at Jan. 31, 2021 | 7,152 | 137 | ||||||||
Balance at Oct. 31, 2020 | $ 27,960 | $ (2,863) | 13,791 | (3,986) | 34,902 | (4,039) | 30,863 | |||
Balance, shares at Oct. 31, 2020 | 7,145 | 137 | ||||||||
Vested share units issued to consultant and retired Director | (72) | |||||||||
Deconsolidation of subsidiary | ||||||||||
Net (loss) income | 1,032 | |||||||||
Balance at Jul. 31, 2021 | $ 71 | 25,417 | 13,516 | (2,885) | 36,119 | (4,403) | 31,716 | |||
Balance, shares at Jul. 31, 2021 | 7,029 | |||||||||
Balance at Jan. 31, 2021 | $ 28,090 | $ (2,863) | 13,999 | (3,599) | 35,627 | (3,707) | 31,920 | |||
Balance, shares at Jan. 31, 2021 | 7,152 | 137 | ||||||||
Stock based compensation expense | $ 12 | 12 | 12 | |||||||
Vested share units granted to Directors, including dividends declared payable in share units (per share) | $ 113 | 113 | 113 | |||||||
Vested share units granted to Directors, including dividends declared payable in share units (per share), shares | 7 | |||||||||
Vested share units issued to retired Director | [2] | $ (72) | $ 72 | |||||||
Vested share units issued to retired Director, shares | [2] | (4) | (4) | |||||||
Distributions to noncontrolling interests | (510) | (510) | ||||||||
Net (loss) income | 9 | 9 | (72) | (63) | ||||||
Dividends declared, including payable in share units (per share) | (350) | (350) | (350) | |||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | 857 | 857 | 320 | 1,177 | ||||||
Balance at Apr. 30, 2021 | $ 28,143 | $ (2,791) | 13,658 | (2,742) | 36,268 | (3,969) | 32,299 | |||
Balance, shares at Apr. 30, 2021 | 7,155 | 133 | ||||||||
Stock based compensation expense | $ 7 | 4 | 11 | 11 | ||||||
Vested share units granted to Directors, including dividends declared payable in share units (per share) | $ 1 | 124 | 125 | 125 | ||||||
Vested share units granted to Directors, including dividends declared payable in share units (per share), shares | 7 | |||||||||
Distributions to noncontrolling interests | (450) | (450) | ||||||||
Net (loss) income | 209 | 209 | 107 | 316 | ||||||
Dividends declared, including payable in share units (per share) | (351) | (351) | (351) | |||||||
Reincorporation of FREIT with and into FREIT Maryland | $ (28,150) | $ 2,791 | $ 70 | 25,289 | ||||||
Reincorporation of FREIT with and into FREIT Maryland, shares | (7,155) | (133) | 7,022 | |||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | (143) | (143) | (91) | (234) | ||||||
Balance at Jul. 31, 2021 | $ 71 | $ 25,417 | $ 13,516 | $ (2,885) | $ 36,119 | $ (4,403) | $ 31,716 | |||
Balance, shares at Jul. 31, 2021 | 7,029 | |||||||||
[1] | Represents the issuance of treasury shares to consultant and retired Director for share units earned. | |||||||||
[2] | Represents the issuance of treasury shares to retired Director for share units earned. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | ||
Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | |
Stock dividends payable | $ 8 | $ 8 | $ 8 |
Dividends declared, per share | $ 0.05 | $ 0.05 | $ 0.05 |
Directors [Member] | |||
Stock dividends payable | $ 8 | $ 8 | $ 8 |
Dividends declared, per share | $ 0.05 | $ 0.05 | $ 0.05 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | |
Operating activities: | ||
Net income | $ 1,032 | $ 24,795 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation | 6,948 | 7,887 |
Amortization | 1,201 | 1,400 |
Stock based compensation expense | 35 | 35 |
Director fees, consultant fee and related interest paid in stock units | 332 | 454 |
Gain on deconsolidation of subsidiary | (27,680) | |
Loss on investment in tenancy-in-common | 245 | 96 |
Deferred rents - straight line rent | 225 | 213 |
Bad debt expense | 264 | 921 |
Changes in operating assets and liabilities: | ||
Tenants' security accounts | (84) | (105) |
Accounts receivable, prepaid expenses and other assets | (402) | (2,793) |
Accounts payable, accrued expenses and deferred director compensation payable | 441 | (5,198) |
Deferred revenue | (148) | (615) |
Due to affiliate - accrued interest | 108 | 171 |
Deferred interest on mortgages | (2) | 416 |
Net cash provided by (used in) operating activities | 10,195 | (3) |
Investing activities: | ||
Capital improvements - existing properties | (1,299) | (1,738) |
Deferred leasing costs | (104) | (183) |
Distribution from investment in tenancy-in-common | 423 | |
Deconsolidation of subsidiary cash and cash equivalents | (1,383) | |
Net cash used in investing activities | (980) | (3,304) |
Financing activities: | ||
Repayment of mortgages | (4,464) | (2,916) |
Deferred financing costs | (640) | |
Due to affiliate - loan repayment | (2,800) | |
Dividends paid | (684) | (1,357) |
Distributions to noncontrolling interests in subsidiaries | (960) | (583) |
Net cash used in financing activities | (9,548) | (4,856) |
Net decrease in cash, cash equivalents and restricted cash | (333) | (8,163) |
Cash, cash equivalents and restricted cash, beginning of period | 39,517 | 42,488 |
Cash, cash equivalents and restricted cash, end of period | 39,184 | 34,325 |
Supplemental disclosure of cash flow data: | ||
Interest paid | 8,245 | 9,570 |
Operating activities: | ||
Commercial tenant security deposits applied to accounts receivable | 10 | 462 |
Investing activities: | ||
Accrued capital expenditures, construction costs and pre-development costs | 116 | 121 |
Financing activities: | ||
Retirement of treasury stock | 2,791 | |
Dividends declared but not paid | 343 | |
Dividends paid in share units | 24 | |
Vested share units issued to consultant and retired director | 72 | 1,467 |
Deconsolidation of subsidiary: | ||
Real estate, at cost, net of accumulated depreciation | (36,225) | |
Accounts receivable, net of allowance for doubtful accounts | (55) | |
Prepaid expenses and other assets | (315) | |
Mortgage payable | 48,000 | |
Unamortized debt issuance costs | (489) | |
Accounts payable and accrued expenses | 353 | |
Tenants' security deposits | 585 | |
Deferred revenue | 47 | |
Deconsolidation of subsidiary cash and cash equivalents | (1,383) | |
Net carrying value of assets and liabilities deconsolidated | 10,518 | |
Recognition of retained investment in tenancy-in-common at fair value | 20,758 | |
Derecognition of noncontrolling interest in subsidiary | $ (3,596) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation of Cash Reported in Balance Sheet) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets: | ||||
Cash and cash equivalents | $ 36,359 | $ 36,860 | $ 31,034 | |
Tenants' security accounts | 1,343 | 1,590 | ||
Mortgage escrows (included in prepaid expenses and other assets) | 1,482 | 1,701 | ||
Total cash, cash equivalents and restricted cash | $ 39,184 | $ 39,517 | $ 34,325 | $ 42,488 |
Basis of presentation
Basis of presentation | 9 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Note 1 – Basis of presentation: On July 1, 2021, First Real Estate Investment Trust of New Jersey (“FREIT”) 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 shareholders at the annual meeting of shareholders held on May 6, 2021. The Reincorporation changes the law applicable to FREIT’s affairs from New Jersey law to Maryland law and was accomplished by the merger of FREIT with and into its wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. (“FREIT Maryland”, “Trust”, “us”, “we”, “our” or the “Company”), a Maryland corporation. As a result of the Reincorporation, the separate existence of FREIT has ceased and FREIT Maryland has succeeded to all the business, properties, assets and liabilities of FREIT. Holders of shares of beneficial interest in FREIT have received one newly issued share of common stock of FREIT Maryland for each share of FREIT that they own, without any action of shareholders required and all treasury stock held by FREIT 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 nine and three-month periods ended July 31, 2021 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 Annual Report on Form 10-K for the year ended October 31, 2020 of FREIT. Reclassification: Certain prior year cash flow line items have been reclassified to conform to the current year presentation. |
Recently issued accounting stan
Recently issued accounting standard | 9 Months Ended |
Jul. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently issued accounting standards | Note 2 – Recently issued accounting standard: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13 " Financial Instruments – Credit Losses (Topic 326) Codification Improvements to Topic 326, Financial Instruments—Credit Losses Leases (Topic 842) |
Dividends and earnings (loss) p
Dividends and earnings (loss) per share | 9 Months Ended |
Jul. 31, 2021 | |
Earnings per share: | |
Dividends and earnings (loss) per share | Note 3 – Dividends and earnings (loss) per share: The Board of Directors (“Board”) declared a third quarter dividend of $0.05 per share which will be paid on September 15, 2021 to shareholders of record on September 1, 2021. 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 to FREIT Maryland’s condensed consolidated financial statements) 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 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 nine and three months ended July 31, 2021, the outstanding stock options increased the average dilutive shares outstanding by approximately 2,000 and 4,000 shares, respectively, with no impact on earnings per share. For the nine months ended July 31, 2020, the outstanding stock options increased the average dilutive shares outstanding by approximately 3,000 shares with a $0.01 impact on earnings per share. For the three months ended July 31, 2020, the outstanding Index Page 10 stock options were anti-dilutive with no impact on loss per share. There were approximately 268,000 anti-dilutive shares for both the nine and three months ended July 31, 2021. There were approximately 268,000 and 311,000 anti-dilutive shares for the nine and three months ended July 31, 2020, respectively. Anti-dilutive shares consist of out-of-the money stock options under the Equity Incentive Plan. |
Interest rate cap and swap cont
Interest rate cap and swap contracts | 9 Months Ended |
Jul. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate cap and swap contracts | Note 4 – Interest rate cap and swap contracts: In accordance with “Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815")” The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). |
Investment in tenancy-in-common
Investment in tenancy-in-common | 9 Months Ended |
Jul. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in tenancy-in-common | Note 5 – Investment in tenancy-in-common: 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. Accordingly, FREIT Maryland consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, liabilities, operations and cash flows with the interest not owned by FREIT Maryland reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. 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 investment in the TIC was approximately $19.4 million and $20.1 million at July 31, 2021 and October 31, 2020, respectively. For the nine and three months ended July 31, 2021, FREIT Maryland recognized a loss on investment in TIC of approximately $245,000 and $100,000, respectively, in the accompanying condensed consolidated statements of operations. For the nine and three months ended July 31, 2020, FREIT Maryland recognized a loss on investment in TIC of approximately $96,000 and $78,000, respectively, in the accompanying condensed consolidated statements of operations. Hekemian & Co., Inc. (“Hekemian”) currently manages the Pierre Towers property based on a management agreement between the owners of the TIC and Hekemian dated as of February 28, 2020, which expires on February 28, 2022, 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 $280,000 and $93,000 for the nine and three months ended July 31, 2021, respectively, and $150,000 for the period from February 28, 2020 through July 31, 2020 and $88,000 for the three months ended July 31, 2020. The Pierre Towers property also uses the resources of the Hekemian insurance department to secure various insurance coverages for its property. Hekemian is paid a commission for these services. Such commissions were charged to operations and amounted to approximately $47,000 and $37,000 for the nine and three months ended July 31, 2021, respectively, and $22,000 for both the period from February 28, 2020 through July 31, 2020 and for the three months ended July 31, 2020. Index Page 11 The following table summarizes the balance sheets of the Pierre Towers property as of July 31, 2021 and October 31, 2020, accounted for by the equity method: July 31, October 31, 2021 2020 (In Thousands of Dollars) Real estate, net $ 78,533 $ 80,041 Cash and cash equivalents 911 754 Tenants' security accounts 494 523 Receivables and other assets 545 468 Total assets $ 80,483 $ 81,786 Mortgages payable, net of unamortized debt issuance costs $ 49,757 $ 49,956 Accounts payable and accrued expenses 241 314 Tenants' security deposits 495 535 Deferred revenue 93 56 Equity 29,897 30,925 Total liabilities & equity $ 80,483 $ 81,786 FREIT's investment in TIC (65% interest) $ 19,433 $ 20,101 The following table summarizes the statements of operations of the Pierre Towers property for the nine and three months ended July 31, 2021, for the period from February 28, 2020 through July 31, 2020 and for the three months ended July 31, 2020, accounted for by the equity method: For the period from Nine Months Ended February 28, 2020 Three Months Ended Three Months Ended July 31, 2021 through July 31, 2020 July 31, 2021 July 31, 2020 (In Thousands of Dollars) (In Thousands of Dollars) Revenue $ 5,674 $ 3,106 $ 1,900 $ 1,864 Operating expenses 3,225 1,689 1,111 1,046 Depreciation 1,623 895 542 537 Operating income 826 522 247 281 Interest expense including amortization of deferred financing costs 1,203 669 401 401 Net loss $ (377) $ (147) $ (154) $ (120) FREIT's loss on investment in TIC (65% interest) $ (245) $ (96) $ (100) $ (78) |
Termination of Purchase and Sal
Termination of Purchase and Sale Agreement | 9 Months Ended |
Jul. 31, 2021 | |
Business Combination, Consideration Transferred [Abstract] | |
Termination of Purchase and Sale Agreement | Note 6 – Termination of Purchase and Sale Agreement: 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”), provided for the sale by the Sellers to the Purchaser of 100% of the Sellers’ ownership interests in six real properties held by the Sellers in exchange for the purchase price described therein, subject to the terms and conditions of the Purchase and Sale Agreement. On April 30, 2020, the Sellers delivered written notice to the Purchaser of the Sellers’ termination of the Purchase and Sale Agreement in accordance with its terms due to the occurrence of a “Purchaser Default” thereunder, based on the Purchaser’s failure to perform its obligations under the Purchase and Sale Agreement and close the transactions contemplated therein. Upon the execution of the Purchase and Sale Agreement, the Purchaser delivered into escrow a deposit in the amount of $15 million (the “Deposit”), in the form of an unconditional, irrevocable letter of credit in such amount (the “Letter of Credit”). The Purchase and Sale Agreement provides that the Sellers’ exclusive remedy, in the event of a “Purchaser Default” and the termination of the Purchase and Sale Agreement, is the forfeiture of the Deposit to the Sellers as liquidated damages. Accordingly, contemporaneously with the Sellers’ delivery of the termination notice to the Purchaser, the Sellers delivered written notice to the escrow agent requesting that the escrow agent release the Letter of Credit from escrow and deliver same to the Sellers. On May 6, 2020, the Purchaser filed a complaint (the “Complaint”) against the Sellers in the Superior Court of New Jersey, in which, among other things, the Purchaser alleges breach of contract and breach of the covenant of good faith and fair dealing against the Sellers in connection with the Sellers’ termination of the Purchase and Sale Agreement. The Purchaser seeks (a) a judgment of specific performance compelling the Sellers to convey the properties under the Purchase and Sale Agreement to the Purchaser; (b) declaratory judgment from the court that (i) the Purchase and Sale Agreement is not terminated, (ii) the Purchaser is Index Page 12 not in default under the Purchase and Sale Agreement, and (iii) the Sellers are in default under the Purchase and Sale Agreement, subject to a right to cure; (c) an order for injunctive relief compelling the Sellers to perform the Purchase and Sale Agreement; (d) in the event that the court does not order specific performance, a judgment directing that the Purchaser’s $15 million deposit under the Purchase and Sale Agreement be returned to the Purchaser, and compensatory, consequential and incidental damages in an amount to be determined at trial; and (e) attorneys’ fees and costs. The Purchaser has filed lis pendens with respect to each of the six properties that were subject to the Purchase and Sale Agreement. The lis pendens provides notice to the public of the Complaint. Pending the resolution of this litigation, the filing of the lis pendens will adversely affect the future sale or financing of those properties. On June 17, 2020, the Sellers filed their answer, separate defenses, and counterclaims (the “Answer”) in response to the Complaint, in which, among other things, the Sellers (a) deny the Purchaser’s claim that the Sellers’ termination of the Purchase and Sale Agreement was wrongful, and assert that there was no contractual basis in the Purchase and Sale Agreement to relieve the Purchaser from its obligation to perform thereunder, or to defer or postpone the Purchaser’s obligation to perform, (b) assert certain defenses to the allegations set forth in the Complaint without admitting any liability, and (c) request relief from the Court in the form of (i) judgment in the Sellers’ favor dismissing all of the Purchaser’s claims against them with prejudice and denying all of the Purchaser’s requests for relief, (ii) reasonable attorneys’ fees and costs, and (iii) such other and further relief as the Court deems just. In addition, the Answer asserts counterclaims by the Sellers against 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 seek 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 authorize the escrow agent to release the $15 million deposit under the Purchase and Sale Agreement to the Sellers. On April 28, 2021, the Sellers amended the Answer to include (1) counterclaims against 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 of the transactions contemplated by the Purchase and Sale Agreement, based 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 seeks the following relief from the Court: (a) liquidated damages in the amount of $15 million, as provided in the Purchase and Sale Agreement; (b) in the alternative to the liquidated damages provided for in the Purchase and Sale Agreement, money damages in an amount to be determined at trial; (c) interest, attorneys’ fees and costs associated with the defense of the Purchaser’s claims and the prosecution of the Sellers’ counterclaims against the Purchaser, as provided for in the Purchase and Sale Agreement; (d) judgment declaring that the Sellers properly terminated the Purchase and Sale Agreement due to the Purchaser’s default thereunder; (e) judgment declaring that the Purchaser must authorize the escrow agent to release the $15 million deposit to the Sellers; (f) an order enjoining the Purchaser and its affiliates from engaging in further breaches of the Purchase and Sale Agreement and non-disclosure agreement, and compelling the Purchaser and its affiliates to return the Sellers’ confidential information and materials and to use best efforts to ensure the return of the Sellers’ confidential information and materials from third parties to whom the Purchaser and/or its affiliates provided such materials; and (g) such other relief as the Court deems just and equitable. In the Answer filed by the Purchaser on September 15, 2020 and the Answer and Affirmative Defenses filed by the Purchaser and Kushner Realty Acquisition LLC on June 7, 2021, the Purchaser and Kushner Realty Acquisition LLC have generally denied the claims, counterclaims and allegations contained in the Sellers’ original and amended Answer, and asserted affirmative defenses to the Sellers’ claims and counterclaims. The Sellers believe that the allegations set forth in the Complaint and Answer filed by the Purchaser and in the Answer and Affirmative Defenses filed by the Purchaser and Kushner Realty Acquisition LLC are without merit and intend to vigorously defend the action and enforce the Sellers’ rights and remedies under the Purchase and Sale Agreement in connection with the “Purchaser Default” thereunder, including the Purchaser’s forfeiture of its $15 million deposit to the Sellers as liquidated damages as provided in the Purchase and Sale Agreement. As of the quarter ended July 31, 2021, the $15 million deposit has not been included in income in the accompanying condensed consolidated statements of operations. For the nine and three months ended July 31, 2020, the Special Committee of the Board (“Special Committee”) incurred on behalf of the Company third party transaction costs for advisory, legal and other expenses primarily related to the Purchase and Sale Agreement and the Plan of Liquidation discussed in Note 7 in the amount of approximately $4,606,000 and $87,000, respectively, compared to $0 and $0, respectively, for the nine and three months ended July 31, 2021. On April 30, 2020, the Sellers delivered written notice to the Purchaser of the Sellers’ termination of the Purchase and Sale Agreement and on May 7, 2020 the Board approved the elimination of the Special Committee. No further transaction costs were incurred thereafter. Legal costs attributed to the legal proceedings between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC have been incurred in the amount of approximately $1,842,000 and $733,000 for the nine and three months ended July 31, 2021, respectively, and $601,000 and $601,000, for the nine and three months ended July 31, 2020, respectively, and are included in operating expenses on the condensed consolidated statements of operations. |
Termination of Plan of Liquidat
Termination of Plan of Liquidation | 9 Months Ended |
Jul. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Termination of Plan of Liquidation | Note 7 – Termination of Plan of Liquidation: On January 14, 2020, the Trust’s Board adopted a Plan of Voluntary Liquidation with respect to the Trust (the “Plan of Liquidation”), which provided for the voluntary dissolution, termination and liquidation of the Trust by the sale, conveyance, transfer or delivery of all of the Trust’s remaining assets in accordance with the terms and conditions of the Plan of Liquidation and the Internal Revenue Code of 1986, as amended, and the Treasury regulations thereunder. The Plan of Liquidation provided that it would become effective upon (i) approval by a majority of the votes cast by Trust’s shareholders present in person or represented by proxy at a duly called meeting of the Trust’s shareholders at which a quorum is present and (ii) the consummation of the transactions contemplated by the Purchase and Sale Agreement. While the Plan of Liquidation received shareholder approval, the Plan of Liquidation did not become effective as the Sellers terminated the Purchase and Sale Agreement by written notice delivered to the Purchaser on April 30, 2020, and the transactions contemplated thereby were not consummated. Accordingly, the Trust did not proceed with the sale, conveyance, transfer or delivery of all of the Trust’s remaining assets as contemplated by the Plan of Liquidation that was adopted by the Board on January 14, 2020. |
Management agreement, fees and
Management agreement, fees and transactions with related party | 9 Months Ended |
Jul. 31, 2021 | |
Related Party Transactions [Abstract] | |
Management agreement, fees and transactions with related party | Note 8 – Management agreement, fees and transactions with related party: Hekemian currently manages all the properties owned by FREIT Maryland and its affiliates, except for the office building at The Rotunda located in Baltimore, Maryland, which is managed by an independent third party management company. The management agreement between FREIT Maryland and Hekemian dated as of November 1, 2001 (“Management Agreement”) has been renewed and will expire on October 31, 2023. The Management Agreement 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 $1,587,000 and $1,682,000 for the nine months ended July 31, 2021 and 2020, respectively, and $525,000 and $484,000 for the three months ended July 31, 2021 and 2020, respectively. In addition, the management agreement provides for the payment to Hekemian of leasing commissions, as well as the reimbursement of operating expenses incurred on behalf of FREIT Maryland. Such commissions and reimbursements amounted to approximately $385,000 and $835,000 for the nine months ended July 31, 2021 and 2020, respectively, and $130,000 and $131,000 for the three months ended July 31, 2021 and 2020, respectively. FREIT Maryland also uses the resources of the Hekemian insurance department to secure various insurance coverages for its properties and subsidiaries. Hekemian is paid a commission for these services. Such commissions were charged to operations and amounted to approximately $181,000 and $152,000 for the nine months ended July 31, 2021 and 2020, respectively, and $110,000 and $96,000 for the three months ended July 31, 2021 and 2020, respectively. From time to time, FREIT Maryland engages Hekemian, or certain affiliates of Hekemian, to provide additional services, such as consulting services related to development, property sales and financing activities of FREIT Maryland. Separate fee arrangements are negotiated between Hekemian and FREIT Maryland with respect to such additional services. Such fees incurred for the nine and three months ended July 31, 2021 were approximately $236,500 and $0, respectively. Fees incurred during Fiscal 2021 related to commissions to Hekemian for the following: $150,000 for the extension of the Grande Rotunda, LLC loan; $54,000 for the extension and modification of the WestFREIT, Corp. loan; $32,500 for the renewal of FREIT Maryland’s line of credit. There were no such fees incurred for the nine and three months ended July 31, 2020. Robert S. Hekemian, Jr., Chief Executive Officer, President and a Director of the Trust, is the President and Chief Operating Officer of Hekemian. David B. Hekemian, a Director of the Trust, is the Principal/Broker – Salesperson and Director of Commercial Brokerage of Hekemian. Robert S. Hekemian, the former Chairman and Chief Executive Officer of the Trust, served as a consultant to the Trust and Chairman of the Board and Chief Executive Officer of Hekemian prior to his death in December 2019. Allan Tubin, Chief Financial Officer and Treasurer of the Trust, is the Chief Financial Officer of Hekemian. Director fee expense and/or executive compensation (including interest and dividends) incurred by FREIT Maryland for the nine months ended July 31, 2021 and 2020 was approximately $0 and $21,000, respectively, for Robert S. Hekemian, $350,000 and $322,000, respectively, for Robert S. Hekemian, Jr., $23,000 and $20,000, respectively, for Allan Tubin and $42,000 and $40,000, respectively, for David Hekemian. Director fee expense and/or executive compensation (including interest and dividends) incurred by FREIT Maryland for the three months ended July 31, 2021 and 2020 was approximately $0 and $0, respectively, for Robert S. Hekemian, $118,000 and $86,000, respectively, for Robert S. Hekemian, Jr., $8,000 and $5,000, respectively, for Allan Tubin and $15,000 and $9,000, respectively, for David Hekemian (See Note 14 to FREIT Maryland’s condensed consolidated financial statements). Such costs are included within operating expenses on the accompanying condensed consolidated statements of operations. Effective upon the late Robert S. Hekemian’s retirement as Chairman, Chief Executive Officer and as a Director on April 5, 2018, FREIT Maryland entered into a Consulting Agreement with Mr. Hekemian, pursuant to which Mr. Hekemian provided consulting services to the Trust through December 2019. The Consulting Agreement obliged Mr. Hekemian to provide advice and consultation with respect to matters pertaining to the Trust and its subsidiaries, affiliates, assets and business, for no fewer than 30 hours per month during the term of the agreement. FREIT Maryland paid Mr. Hekemian a consulting fee of $5,000 per month during the term of the Consulting Agreement, which was payable in the form of shares on a quarterly basis (i.e. in quarterly Index Page 14 installments of $15,000). The number of shares to be issued for each quarterly installment of the consulting fee was determined by dividing the dollar amount of the consulting fee by the closing price of one share on the OTC Pink Open Market as of the close of trading on the last trading day of the calendar quarter with respect to which such consulting fee was payable. For the nine and three months ended July 31, 2021, there were no consulting fee expenses for Robert S. Hekemian. For the nine and three months ended July 31, 2020, consulting fee expense for Robert S. Hekemian was approximately $8,000 and $0, respectively. The equity owners of Rotunda 100, LLC (“Rotunda 100”), which owns a 40% minority equity interest in Grande Rotunda, are principally employees of Hekemian. To incentivize the employees of Hekemian, FREIT Maryland advanced, only to employees of Hekemian, up to 50% of the amount of the equity contributions that the Hekemian 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 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. The aggregate outstanding principal balance of the Rotunda 100 notes was $4,000,000 at both July 31, 2021 and October 31, 2020. The accrued but unpaid interest related to these notes as of July 31, 2021 and October 31, 2020 amounted to approximately $1,268,000 and $1,194,000, 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 (FREIT Maryland with a 60% ownership and Rotunda 100 with a 40% ownership) contributed their respective pro-rata share of any cash needs through loans to Grande Rotunda, LLC. 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 July 31, 2021 and October 31, 2020, Rotunda 100 has funded Grande Rotunda with approximately $3.2 million and $5.9 million (including interest), respectively, which is included in “Due to affiliate” on the accompanying condensed consolidated balance sheets. |
Mortgage financings and line of
Mortgage financings and line of credit | 9 Months Ended |
Jul. 31, 2021 | |
Debt Disclosure [Abstract] | |
Mortgage financings and line of credit | Note 9 – Mortgage financings and line of credit: On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”), a consolidated subsidiary, refinanced its $19.2 million loan (which would have matured on November 1, 2020) with a new loan held by ConnectOne Bank in the amount of $25,000,000, with additional funding available in the amount of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property. (See Note 6 to FREIT Maryland’s condensed consolidated financial statements for additional details in regards to the lis pendens.) This loan, secured by an apartment building in Westwood, New Jersey, is interest-only based on a floating rate at 400 basis points over the one-month LIBOR rate with a floor of 4.15% and has a maturity date of October 1, 2022 with the option of Westwood Hills to extend for two (2) additional six (6)-month periods from the maturity date, subject to certain provisions of the loan agreement. This refinancing resulted in: (i) a change in the annual interest rate from a fixed rate of 4.62% to a variable rate with a floor of 4.15% and (ii) net refinancing proceeds of approximately $5.6 million that were distributed to the partners in Westwood Hills with FREIT Maryland receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. As of July 31, 2021, $25,000,000 of this loan was drawn and outstanding and the interest rate was based on the floor of 4.15%. On April 3, 2019, WestFREIT Corp. (owned 100% by FREIT Maryland) exercised its option to extend its loan secured by the Westridge Square shopping center in Frederick, Maryland, held by M&T Bank, with a then outstanding balance of approximately $22.5 million, for twelve months. Effective beginning on June 1, 2019, the extension of this loan required monthly principal payments of $47,250 plus interest based on a floating interest rate equal to 240 basis points over the one-month LIBOR and had a maturity date of May 1, 2020. This loan was extended to November 1, 2020 and further extended to January 31, 2021 under the same terms and conditions of the existing agreement. WestFREIT Corp. entered into a loan extension and modification agreement with M&T Bank, effective beginning on February 1, 2021, which requires monthly principal payments of $49,250 plus interest based on a floating interest rate equal to 255 basis points over the one-month LIBOR and has a maturity date of January 31, 2022, with the option of WestFREIT Corp. to extend for an additional one-year period through January 31, 2023, subject to certain requirements as provided for in the loan agreement including the lease-up of certain space. As of July 31, 2021, approximately $21.3 million of this loan was outstanding and the interest rate was approximately 2.68%. On February 7, 2018, Grande Rotunda refinanced its construction loan with a new loan held by Aareal Capital Corporation in the amount of approximately $118.5 million with additional funding which was available through February 6, 2021 for retail tenant improvements and leasing costs in the amount of $3,380,000. This loan bears a floating interest rate at 285 basis points over the one-month LIBOR rate and had a maturity date of February 6, 2021 with two one-year options of Grande Rotunda to extend the maturity of this loan, subject to certain requirements as provided for in the loan agreement. Grande Rotunda had purchased an interest rate cap 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 Index Page 15 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, which matured 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, which may be extended further for an additional one-year term at Grande Rotunda’s option. Principal payments in the amount of $500,000 were required upon exercise of the first loan extension option and per calendar quarter thereafter. If the second loan extension option is exercised, principal payments in the amount of $750,000 will be required upon exercise of the second loan extension option and per calendar quarter thereafter. Additionally, Grande Rotunda purchased an interest rate cap 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. At July 31, 2021, the total amount outstanding on this loan was approximately $117 million and the interest rate was approximately 2.95%. FREIT Maryland’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 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 July 31, 2021 and October 31, 2020, there was no amount outstanding and $13 million was available under the line of credit. The lis pendens filed in connection with the legal proceeding between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC may adversely affect FREIT Maryland’s ability to refinance certain of its residential properties. (See Note 6 to FREIT Maryland’s condensed consolidated financial statements for additional details.) As a result of the negative impact of the COVID-19 pandemic at our commercial properties, in Fiscal 2020 we were granted debt payment relief from certain of our lenders on such properties in the form of deferral of principal and/or interest payments for a three-month period, resulting in total deferred payments of approximately $1,013,000 which will become due at the maturity of the loans. As of July 31, 2021 and October 31, 2020, approximately $162,000 of this amount has been repaid. There will be no further deferrals of principal and/or interest payments on these loans and the balance due has been included in mortgages payable on the condensed consolidated balance sheets as of July 31, 2021 and October 31, 2020. |
Fair value of long-term debt
Fair value of long-term debt | 9 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | Note 10 – Fair value of long-term debt: The following table shows the estimated fair value and net carrying value of FREIT Maryland’s long-term debt at July 31, 2021 and October 31, 2020: ($ in Millions) July 31, 2021 October 31, 2020 Fair Value $304.2 $311.4 Carrying Value, Net $301.2 $305.4 Fair values are estimated based on market interest rates at July 31, 2021 and October 31, 2020 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). |
Segment information
Segment information | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment information | Note 11 – Segment information: FREIT Maryland has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires different operating strategies and management expertise. The commercial segment is comprised of eight (8) properties and the residential segment is comprised of seven (7) properties, excluding the Pierre Towers property which was converted into a TIC and deconsolidated from FREIT Maryland’s operating results as of February 28, 2020 (See Note 5 to FREIT Maryland’s condensed consolidated financial statements for further details). The accounting policies of the segments are the same as those described in Note 1 in FREIT Maryland’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020. The chief operating and decision-making group responsible for oversight and strategic decisions of FREIT Maryland's commercial segment, residential segment and corporate/other is comprised of FREIT Maryland’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. Index Page 16 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 (loss) attributable to common equity for the nine and three month periods ended July 31, 2021 and 2020. Asset information is not reported since FREIT Maryland does not use this measure to assess performance. Nine Months Ended Three Months Ended July 31, July 31, 2021 2020 2021 2020 (In Thousands of Dollars) (In Thousands of Dollars) Real estate rental revenue: Commercial $ 18,299 $ 19,638 $ 5,885 $ 6,090 Residential 20,026 22,005 6,669 6,393 Total real estate rental revenue 38,325 41,643 12,554 12,483 Real estate operating expenses: Commercial 8,346 8,810 2,535 2,914 Residential 8,232 8,997 2,842 2,649 Total real estate operating expenses 16,578 17,807 5,377 5,563 Net operating income: Commercial 9,953 10,828 3,350 3,176 Residential 11,794 13,008 3,827 3,744 Total net operating income $ 21,747 $ 23,836 $ 7,177 $ 6,920 Recurring capital improvements - residential $ (438 ) $ (353 ) $ (258 ) $ (127 ) Reconciliation to condensed consolidated net income (loss) attributable to common equity: Segment NOI $ 21,747 $ 23,836 $ 7,177 $ 6,920 Deferred rents - straight lining (225 ) (213 ) (12 ) (334 ) Investment income 88 174 29 38 General and administrative expenses (4,143 ) (3,061 ) (1,413 ) (1,233 ) Third party transaction costs - (4,606 ) - (87 ) Gain on deconsolidation of subsidiary - 27,680 - - Loss on investment in tenancy-in-common (245 ) (96 ) (100 ) (78 ) Depreciation (6,948 ) (7,887 ) (2,315 ) (2,425 ) Financing costs (9,242 ) (11,032 ) (3,050 ) (3,121 ) Net income (loss) 1,032 24,795 316 (320 ) Net (income) loss attributable to noncontrolling interests in subsidiaries (256 ) (18 ) (107 ) 139 Net income (loss) attributable to common equity $ 776 $ 24,777 $ 209 $ (181 ) |
Income taxes
Income taxes | 9 Months Ended |
Jul. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12 – Income taxes: FREIT Maryland has elected to be treated as a REIT for federal income tax purposes and as such intends to distribute 100% of its ordinary taxable income to its shareholders as dividends for the fiscal year ending October 31, 2021. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income was recorded in FREIT Maryland’s condensed consolidated financial statements. There was no ordinary taxable income for the fiscal year ending October 31, 2020 and no dividends were made/declared for Fiscal 2020. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income was recorded in FREIT Maryland’s condensed consolidated financial statements. As of July 31, 2021, 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. |
Equity incentive plan
Equity incentive plan | 9 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity incentive plan | Note 13 – Equity incentive plan: On September 4, 2014, the Board approved the grant of an aggregate of 246,000 non-qualified share options under FREIT Maryland’s Equity Incentive Plan (“the Plan”) to certain FREIT Maryland executive officers, the members of the Board and certain employees of Hekemian. The options have an exercise price of $18.45 per share, fully vested on September 3, 2019 and will expire 10 years from the date of grant, which will be September 3, 2024. On November 10, 2016, the Board approved the grant of an aggregate of 38,000 non-qualified share options under the Plan to two members of the Board who were appointed to the Board during Fiscal 2016. The options have an exercise price of $21.00 per share, will vest in equal annual installments over a 5-year period and will expire 10 years from the date of grant, which will be November 9, 2026. On May 3, 2018, the Board approved the grant of an aggregate of 38,000 non-qualified share options under the Plan to two members of the Board who were appointed to the Board during Fiscal 2018. The options have an exercise price of $15.50 per Index Page 17 share, will vest in equal annual installments over a 5-year period and will expire 10 years from the date of grant, which will be May 2, 2028. On March 4, 2019, the Board approved the grant of an aggregate of 5,000 non-qualified share options under the Plan to the Chairman of the Board. The options have an exercise price of $15.00 per share, will vest in equal annual installments over a 5-year period and will expire 10 years from the date of grant, which will be March 3, 2029. As of July 31, 2021, 442,060 shares are available for issuance under the Plan. As a result of the Reincorporation of FREIT with and into FREIT Maryland as discussed in Note 1 to the condensed consolidated financial statements, there was no impact to the Plan or options previously granted. The following table summarizes stock option activity for the nine month periods ended July 31, 2021 and 2020: Nine Months Ended July 31, 2021 Nine Months Ended July 31, 2020 No. of Options Exercise No. of Options Exercise Outstanding Price Outstanding Price Options outstanding at beginning of period 310,740 $ 18.35 310,740 $ 18.35 Options granted during period - - - - Options forfeited/cancelled during period - - - - Options outstanding at end of period 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 308,310 308,310 Options exercisable at end of period 284,940 268,740 For the nine month periods ended July 31, 2021 and 2020, compensation expense related to stock options vested amounted to approximately $35,000 and $35,000, respectively. For the three month periods ended July 31, 2021 and 2020, compensation expense related to stock options vested amounted to approximately $11,000 and $11,000, respectively. At July 31, 2021, there was approximately $36,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately 1.5 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at July 31, 2021 was approximately $90,000 and $53,000, respectively. |
Deferred fee plan
Deferred fee plan | 9 Months Ended |
Jul. 31, 2021 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred fee plan | Note 14 – Deferred fee plan: 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. All fees payable to directors for the nine and three-month periods ended July 31, 2021 and 2020 were deferred under the Deferred Fee Plan except for fees payable to one director, who elected to receive such fees in cash. As a result of the amendment to the Deferred Fee Plan described above, for the nine-month periods ended July 31, 2021 and 2020, the aggregate amounts of deferred director fees together with related interest and dividends were approximately $356,000 and $444,400, respectively, which have been paid through the issuance of 20,328 and 23,302 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 nine-month periods ended July 31, 2021 and 2020, FREIT Maryland has charged as expense approximately $332,000 and $444,400, respectively, representing deferred director fees and interest, and the balance of approximately $24,000 and $0, respectively, representing dividends payable in respect of share units allocated to Plan participants, has been charged to equity. The Deferred Fee Plan, as amended, provides that cumulative fees together with accrued interest deferred as of November 1, 2014 will 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 July 31, 2021 and October 31, 2020, approximately $1,454,000 and $1,542,000, respectively, of fees has been deferred together with accrued interest of approximately $1,021,000 and $1,091,000, respectively. |
Rental Income
Rental Income | 9 Months Ended |
Jul. 31, 2021 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Rental Income | Note 15 – Rental Income: Commercial tenants: Fixed lease income under our commercial operating leases generally includes fixed minimum lease consideration which is accrued on a straight-line basis over the terms of the leases. Variable lease income includes consideration based on sales, as well as reimbursements for real estate taxes, maintenance, insurance and certain other operating expenses of the properties. Index Page 18 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 July 31, 2021, is as follows: Year Ending October 31, Amount 2021* $ 17,294 2022 15,985 2023 13,674 2024 11,229 2025 9,077 Thereafter 27,749 Total $ 95,008 *Amount represents full fiscal year 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 nine and three-month periods ended July 31, 2021 and 2020 were not material. Residential tenants: Lease terms for residential tenants are usually one |
COVID-19 Pandemic
COVID-19 Pandemic | 9 Months Ended |
Jul. 31, 2021 | |
Covid 19Pandemic Abstract | |
COVID-19 Pandemic | Note 16 – COVID-19 Pandemic: The international spread of COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. The extent to which this pandemic could continue to affect our financial condition, liquidity, and results of operations is difficult to predict and depends on evolving factors, including: duration, scope, government actions, and other social responses. Beginning in March 2020, many states in the U.S., including New Jersey, New York and Maryland, where our properties are located, implemented stay-at-home and shutdown orders for all "non-essential" business and activity in an aggressive effort to mitigate the spread of COVID-19. These orders have continued to evolve resulting in a full or partial lifting of these restrictions at various points over the past year. Vaccinations for the COVID-19 virus have been widely distributed among the general U.S. population which has 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 has been evolving, 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. These and other adverse conditions that may unfold in the future are expected to continue until such time as government shutdown orders are fully lifted, and business operations and commercial activity can fully resume. The lifting of all government shutdown orders cannot be predicted with any certainty. Further, even after such orders are fully lifted, the resumption of business operations and commercial activity will depend on several factors, including prevailing sentiments among workers and consumers regarding the safety of resuming public activity, and cannot be predicted with any certainty. 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 adversely affected by the previously mandated shutdowns and the continued lingering impact to consumer sentiment and preferences for safety amid the reemergence of other variants. During the first quarter of Fiscal 2021, Pet Valu, Inc., a pet store tenant, vacated several stores located in shopping centers owned by FREIT Maryland affiliates (Wayne PSC, Damascus Centre and Grande Rotunda) and terminated the related leases early paying an aggregate lease termination fee in the amount of approximately $260,000 (with a consolidated impact to FREIT Maryland of approximately $140,000). Until the space is re-leased at each of these properties, FREIT Maryland’s operating results will be adversely impacted from the loss of base rent and additional rent of approximately $0.4 million (with a consolidated impact to FREIT Maryland of approximately $0.2 million) on an annualized basis. The Company is closely monitoring changes in the collectability assessment of its tenant receivables as a result of certain tenants suffering adverse financial consequences related to the COVID-19 pandemic. For the nine and three months ended July 31, 2021, rental revenue deemed uncollectible of approximately $1.2 million and $0.3 million (with a consolidated impact to FREIT Maryland of approximately $0.7 million and $0.1 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. As of July 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 nine and three months ended July 31, 2021, on a case by case basis, FREIT Maryland has offered some commercial tenants rent abatements over a specified time period totaling approximately $135,000 and $34,000 (with a consolidated impact to FREIT Maryland of Index Page 19 approximately $91,000 and $20,000), respectively. FREIT Maryland has not offered any significant new deferrals of rent over a specified time period during the nine and three months ended July 31, 2021. FREIT Maryland currently remains in active discussions and negotiations with these impacted retail tenants. As a result of the negative impact of the COVID-19 pandemic at our commercial properties, in Fiscal 2020 we were granted debt payment relief from certain of our lenders on such properties in the form of deferral of principal and/or interest payments for a three-month period, resulting in total deferred payments of approximately $1,013,000, which will become due at the maturity of the loans. As of July 31, 2021 and October 31, 2020, approximately $162,000 of this amount has been repaid, there will be no further deferrals of principal and/or interest payments on these loans and the balance due has been included in mortgages payable on the condensed consolidated balance sheets as of July 31, 2021 and October 31, 2020. (See Note 9 to FREIT Maryland’s condensed consolidated financial statements for additional details). For the nine months ended July 31, 2021, we have experienced a positive cash flow from operations with cash provided by operations of approximately $10.2 million. This could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of July 31, 2021 of approximately $36.4 million coupled with a $13 million available line of credit (available through October 31, 2023, see Note 9) will provide us with sufficient liquidity for at least the next twelve months from the filing of this Form 10-Q. 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. |
Investment in tenancy-in-comm_2
Investment in tenancy-in-common (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Balance Sheet of Pierre Property | The following table summarizes the balance sheets of the Pierre Towers property as of July 31, 2021 and October 31, 2020, accounted for by the equity method: July 31, October 31, 2021 2020 (In Thousands of Dollars) Real estate, net $ 78,533 $ 80,041 Cash and cash equivalents 911 754 Tenants' security accounts 494 523 Receivables and other assets 545 468 Total assets $ 80,483 $ 81,786 Mortgages payable, net of unamortized debt issuance costs $ 49,757 $ 49,956 Accounts payable and accrued expenses 241 314 Tenants' security deposits 495 535 Deferred revenue 93 56 Equity 29,897 30,925 Total liabilities & equity $ 80,483 $ 81,786 FREIT's investment in TIC (65% interest) $ 19,433 $ 20,101 |
Schedule of Income Statement of Pierre Property | The following table summarizes the statements of operations of the Pierre Towers property for the nine and three months ended July 31, 2021, for the period from February 28, 2020 through July 31, 2020 and for the three months ended July 31, 2020, accounted for by the equity method: For the period from Nine Months Ended February 28, 2020 Three Months Ended Three Months Ended July 31, 2021 through July 31, 2020 July 31, 2021 July 31, 2020 (In Thousands of Dollars) (In Thousands of Dollars) Revenue $ 5,674 $ 3,106 $ 1,900 $ 1,864 Operating expenses 3,225 1,689 1,111 1,046 Depreciation 1,623 895 542 537 Operating income 826 522 247 281 Interest expense including amortization of deferred financing costs 1,203 669 401 401 Net loss $ (377) $ (147) $ (154) $ (120) FREIT's loss on investment in TIC (65% interest) $ (245) $ (96) $ (100) $ (78) |
Fair value of long-term debt (T
Fair value of long-term debt (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt | The following table shows the estimated fair value and net carrying value of FREIT Maryland’s long-term debt at July 31, 2021 and October 31, 2020: ($ in Millions) July 31, 2021 October 31, 2020 Fair Value $304.2 $311.4 Carrying Value, Net $301.2 $305.4 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment and Related Information | Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income (loss) attributable to common equity for the nine and three month periods ended July 31, 2021 and 2020. Asset information is not reported since FREIT Maryland does not use this measure to assess performance. Nine Months Ended Three Months Ended July 31, July 31, 2021 2020 2021 2020 (In Thousands of Dollars) (In Thousands of Dollars) Real estate rental revenue: Commercial $ 18,299 $ 19,638 $ 5,885 $ 6,090 Residential 20,026 22,005 6,669 6,393 Total real estate rental revenue 38,325 41,643 12,554 12,483 Real estate operating expenses: Commercial 8,346 8,810 2,535 2,914 Residential 8,232 8,997 2,842 2,649 Total real estate operating expenses 16,578 17,807 5,377 5,563 Net operating income: Commercial 9,953 10,828 3,350 3,176 Residential 11,794 13,008 3,827 3,744 Total net operating income $ 21,747 $ 23,836 $ 7,177 $ 6,920 Recurring capital improvements - residential $ (438 ) $ (353 ) $ (258 ) $ (127 ) Reconciliation to condensed consolidated net income (loss) attributable to common equity: Segment NOI $ 21,747 $ 23,836 $ 7,177 $ 6,920 Deferred rents - straight lining (225 ) (213 ) (12 ) (334 ) Investment income 88 174 29 38 General and administrative expenses (4,143 ) (3,061 ) (1,413 ) (1,233 ) Third party transaction costs - (4,606 ) - (87 ) Gain on deconsolidation of subsidiary - 27,680 - - Loss on investment in tenancy-in-common (245 ) (96 ) (100 ) (78 ) Depreciation (6,948 ) (7,887 ) (2,315 ) (2,425 ) Financing costs (9,242 ) (11,032 ) (3,050 ) (3,121 ) Net income (loss) 1,032 24,795 316 (320 ) Net (income) loss attributable to noncontrolling interests in subsidiaries (256 ) (18 ) (107 ) 139 Net income (loss) attributable to common equity $ 776 $ 24,777 $ 209 $ (181 ) |
Equity incentive plan (Tables)
Equity incentive plan (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the nine month periods ended July 31, 2021 and 2020: Nine Months Ended July 31, 2021 Nine Months Ended July 31, 2020 No. of Options Exercise No. of Options Exercise Outstanding Price Outstanding Price Options outstanding at beginning of period 310,740 $ 18.35 310,740 $ 18.35 Options granted during period - - - - Options forfeited/cancelled during period - - - - Options outstanding at end of period 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 308,310 308,310 Options exercisable at end of period 284,940 268,740 |
Rental Income (Tables)
Rental Income (Tables) | 9 Months Ended |
Jul. 31, 2021 | |
Baltimore, MD [Member] | |
Schedule of Minimum Rental Income to be Received from Non-Cancelable Operating Leases | Minimum fixed lease consideration (in thousands of dollars) under non-cancelable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration and rents from tenants for which collectability is deemed to be constrained, for the years ending October 31, as of July 31, 2021, is as follows: Year Ending October 31, Amount 2021* $ 17,294 2022 15,985 2023 13,674 2024 11,229 2025 9,077 Thereafter 27,749 Total $ 95,008 *Amount represents full fiscal year |
Dividends and earnings (loss)_2
Dividends and earnings (loss) per share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Earnings per share: | ||||
Dividend per share | $ 0.05 | $ 0.05 | ||
Average dilutive shares outstanding | 4,000 | 2,000 | 3,000 | |
Impact of Earnings per share | $ 0.01 | |||
Anti-dulutive shares excluded from the computation of diluted earnings per share | 268,000 | 311,000 | 268,000 | 268,000 |
Interest rate cap and swap co_2
Interest rate cap and swap contracts (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Derivative [Line Items] | |||||
Interest rate swap contract liability | $ 3,483,000 | $ 3,483,000 | $ 4,924,000 | ||
Net unrealized gain (loss) on interest rate swap contracts | (234,000) | $ (272,000) | 1,441,000 | $ (3,644,000) | |
Damascus Centre Swap [Member] | |||||
Derivative [Line Items] | |||||
Interest rate swap contract liability | 391,000 | 391,000 | 610,000 | ||
Wayne PSC swap [Member] | |||||
Derivative [Line Items] | |||||
Interest rate swap contract liability | 802,000 | 802,000 | 1,260,000 | ||
Regency Swap [Member] | |||||
Derivative [Line Items] | |||||
Interest rate swap contract liability | 1,030,000 | 1,030,000 | 1,385,000 | ||
Station Place [Member] | |||||
Derivative [Line Items] | |||||
Interest rate swap contract liability | 1,260,000 | 1,260,000 | 1,669,000 | ||
Grande Rotunda LLC [Member] | |||||
Derivative [Line Items] | |||||
Interest rate swap contract liability | $ 0 | $ 0 | $ 0 |
Investment in tenancy-in-comm_3
Investment in tenancy-in-common (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | |||
Feb. 28, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Gain on deconsolidation of subsidiary | $ 27,680,000 | ||||||
Investment in tenancy-in-common | 19,433,000 | 19,433,000 | $ 20,101,000 | ||||
Loss on investment in tenancy-in-common | 100,000 | 78,000 | 245,000 | $ 96,000 | |||
Percentage of management fees of rent collected | 5.00% | ||||||
Management fees | 93,000 | 88,000 | $ 150,000 | 280,000 | |||
Insurance commissions | $ 37,000 | $ 22,000 | $ 22,000 | $ 47,000 | |||
S And A Commercial Associates Limited Partnership [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 65.00% | ||||||
Pierre Towers, LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 100.00% | ||||||
TIC Agreement [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 65.00% |
Investment in tenancy-in-comm_4
Investment in tenancy-in-common (Schedule of balance sheet of Pierre Property) (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||||||
Real estate, net | $ 272,362 | $ 278,150 | ||||||
Cash and cash equivalents | 36,359 | 36,860 | $ 31,034 | |||||
Tenants' security accounts | 1,343 | 1,408 | ||||||
Receivables and other assets | 1,366 | 1,811 | ||||||
Total Assets | 348,146 | 355,215 | ||||||
Mortgages payable, net of unamortized debt issuance costs | 301,162 | 305,430 | ||||||
Accounts payable and accrued expenses | 2,813 | 2,277 | ||||||
Tenants' security deposits | 2,030 | 2,124 | ||||||
Deferred revenue | 895 | 1,043 | ||||||
Equity | 31,716 | $ 32,299 | $ 31,920 | 30,863 | $ 40,701 | $ 41,205 | $ 13,277 | $ 16,048 |
Total Liabilities and Equity | 348,146 | 355,215 | ||||||
FREIT's investment in TIC (65% interest) | 19,433 | 20,101 | ||||||
Pierre Property [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Real estate, net | 78,533 | 80,041 | ||||||
Cash and cash equivalents | 911 | 754 | ||||||
Tenants' security accounts | 494 | 523 | ||||||
Receivables and other assets | 545 | 468 | ||||||
Total Assets | 80,483 | 81,786 | ||||||
Mortgages payable, net of unamortized debt issuance costs | 49,757 | 49,956 | ||||||
Accounts payable and accrued expenses | 241 | 314 | ||||||
Tenants' security deposits | 495 | 535 | ||||||
Deferred revenue | 93 | 56 | ||||||
Equity | 29,897 | 30,925 | ||||||
Total Liabilities and Equity | 80,483 | 81,786 | ||||||
FREIT's investment in TIC (65% interest) | $ 19,433 | $ 20,101 |
Investment in tenancy-in-comm_5
Investment in tenancy-in-common (Schedule of Income Statement of Pierre Property) (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenue | $ 12,542 | $ 12,149 | $ 38,100 | $ 41,430 | |||||
Operating expenses | 9,105 | 9,308 | 27,669 | 33,361 | |||||
Depreciation | 2,315 | 2,425 | 6,948 | 7,887 | |||||
Operating income | 3,437 | 2,841 | 10,431 | 8,069 | |||||
Interest expense including amortization of deferred financing costs | 3,050 | 3,121 | 9,242 | 11,032 | |||||
Net income (loss) | 316 | $ (63) | $ 779 | (320) | $ 27,136 | $ (2,021) | 1,032 | 24,795 | |
FREIT's loss on investment in TIC (65% interest) | (100) | (78) | (245) | $ (96) | |||||
Pierre Property [Member] | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Revenue | 1,900 | 1,864 | $ 3,106 | 5,674 | |||||
Operating expenses | 1,111 | 1,046 | 1,689 | 3,225 | |||||
Depreciation | 542 | 537 | 895 | 1,623 | |||||
Operating income | 247 | 281 | 522 | 826 | |||||
Interest expense including amortization of deferred financing costs | 401 | 401 | 669 | 1,203 | |||||
Net income (loss) | (154) | (120) | (147) | (377) | |||||
FREIT's loss on investment in TIC (65% interest) | $ (100) | $ (78) | $ (96) | $ (245) |
Termination of Purchase and S_2
Termination of Purchase and Sale Agreement (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 17, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jan. 14, 2020 | |
Escrow deposit amount | $ 1,482,000 | $ 1,701,000 | $ 1,482,000 | $ 1,701,000 | ||
Amount of liquidated damages | $ 15,000,000 | |||||
Expense incurred | 0 | 87,000 | 0 | 4,606,000 | ||
Legal costs | $ 733,000 | $ 601,000 | $ 1,842,000 | $ 601,000 | ||
Purchase and Sale Agreement [Member] | Six Apartment Properties [Member] | ||||||
Percentage of ownership interest | 100.00% | |||||
Purchase and Sale Agreement [Member] | Six Apartment Properties [Member] | Letter of Credit [Member] | ||||||
Escrow deposit amount | $ 15,000,000 |
Management agreement, fees an_2
Management agreement, fees and transactions with related party (Details) - USD ($) | 3 Months Ended | 5 Months Ended | 9 Months Ended | |||
Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Related Party Transaction [Line Items] | ||||||
Asset management fees | $ 538,000 | $ 496,000 | $ 1,625,000 | $ 1,719,000 | ||
Insurance commissions | 37,000 | 22,000 | $ 22,000 | 47,000 | ||
Secured loans receivable | 5,268,000 | 5,268,000 | $ 5,194,000 | |||
Letter of Credit [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Sales commissions | 32,500 | |||||
Rotunda 100 members [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Secured loans receivable | 4,000,000 | 4,000,000 | 4,000,000 | |||
Unpaid accrued interest | $ 1,268,000 | $ 1,268,000 | 1,194,000 | |||
Grande Rotunda, LLC [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership by noncontrolling owners (percentage) | 40.00% | 40.00% | ||||
Ownership by parent (percentage) | 60.00% | 60.00% | ||||
Due to affiliate | $ 3,200,000 | $ 3,200,000 | $ 5,900,000 | |||
Principal amount on notes paid off | 7,000,000 | 7,000,000 | ||||
Loan commission | 150,000 | |||||
Repayment to affiliate | 2,800,000 | |||||
WestFREIT, Corp. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Loan commission | 54,000 | |||||
Managing Agent Hekemian & Co [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Asset management fees | 525,000 | 484,000 | 1,587,000 | 1,682,000 | ||
Leasing commissions and reimbursement of operating expenses | 130,000 | 131,000 | 385,000 | 835,000 | ||
Insurance commissions | 110,000 | 96,000 | 181,000 | 152,000 | ||
Additional services | 0 | 236,500 | ||||
Robert S. Hekemian [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Trustee fees and related interest payable in stock units | 0 | 0 | 0 | 21,000 | ||
Consulting fee per month | 5,000 | |||||
Consulting fee quarterly installments | 15,000 | |||||
Consulting services expense | 0 | 8,000 | ||||
Robert S. Hekemian, Jr. [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Trustee fees and related interest payable in stock units | 118,000 | 86,000 | 350,000 | 322,000 | ||
Allan Tubin [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Trustee fees and related interest payable in stock units | 8,000 | 5,000 | 23,000 | 20,000 | ||
David Hekemian [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Trustee fees and related interest payable in stock units | $ 15,000 | $ 9,000 | $ 42,000 | $ 40,000 | ||
Minimum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Asset management fees percentage rate | 4.00% | |||||
Maximum [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Asset management fees percentage rate | 5.00% |
Mortgage financings and line _2
Mortgage financings and line of credit (Details) - USD ($) | Mar. 05, 2021 | Sep. 30, 2020 | Apr. 03, 2019 | Feb. 07, 2018 | Feb. 28, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 |
Debt Instrument [Line Items] | ||||||||||
Available to draw | $ 104,000 | $ 183,000 | ||||||||
Deferred loan payments | $ 1,013,000 | 1,013,000 | ||||||||
Repayments Of Loan | 162,000 | $ 162,000 | ||||||||
Legal fees | 733,000 | $ 601,000 | 1,842,000 | $ 601,000 | ||||||
Westwood Hills Property [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed rate mortgage loans | $ 19,200,000 | |||||||||
Loan amount, new | $ 25,000,000 | $ 25,000,000 | ||||||||
Basis points, interest rate | 4.00% | |||||||||
Interest rate | 4.15% | 4.15% | ||||||||
Membership interest percentage | 40.00% | |||||||||
Maturity date of loan | Oct. 1, 2022 | |||||||||
Available to draw | $ 25,000,000 | |||||||||
Legal fees | 250,000 | |||||||||
Westwood Hills Property [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed rate mortgage loans | $ 2,200,000 | |||||||||
Fixed interest rate on old loan | 4.15% | |||||||||
Westwood Hills Property [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed rate mortgage loans | $ 5,600,000 | |||||||||
Fixed interest rate on old loan | 4.62% | |||||||||
M&T Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loan amount | $ 22,500,000 | $ 21,300,000 | $ 21,300,000 | |||||||
Basis points, interest rate | 2.40% | 2.55% | ||||||||
Interest rate cap | 2.68% | 2.68% | ||||||||
Maturity date of loan | May 1, 2020 | |||||||||
Extended maturity date of loan | Nov. 1, 2020 | Jan. 31, 2023 | ||||||||
Maturity date of interest rate cap | Jan. 31, 2022 | |||||||||
Monthly payment of loan | $ 47,250 | $ 49,250 | ||||||||
Wells Fargo Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed rate mortgage loans | $ 500,000 | |||||||||
Loan amount | 118,500,000 | |||||||||
Principal payments per quater | 750,000 | |||||||||
Aareal Capital Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loan amount | $ 118,500,000 | $ 118,500,000 | $ 117,000,000 | $ 117,000,000 | ||||||
Basis points, interest rate | 2.85% | |||||||||
Interest rate cap | 3.00% | 3.00% | 2.95% | 2.95% | ||||||
Maturity date of loan | Feb. 6, 2022 | Feb. 6, 2021 | ||||||||
Available to draw | $ 3,380,000 | |||||||||
Monthly payment of loan | $ 121,900,000 | |||||||||
Grande Rotunda LLC [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loan amount available | $ 121,900,000 | |||||||||
Interest rate cap | 3.00% | |||||||||
Maturity date of interest rate cap | Mar. 5, 2020 | |||||||||
Provident Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Loan amount | $ 13,000,000 | $ 13,000,000 | ||||||||
Basis points, interest rate | 0.25% | |||||||||
Interest rate cap | 3.75% | 3.75% | ||||||||
Line of credit, maximum borrowing capacity | $ 13,000,000 | $ 13,000,000 | $ 13,000,000 |
Fair value of long-term debt (D
Fair value of long-term debt (Details) - USD ($) $ in Thousands | Jul. 31, 2021 | Oct. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 304,200 | $ 311,400 |
Carrying value of long-term debt | $ 301,162 | $ 305,430 |
Segment information (Details)
Segment information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2021USD ($)Properties | Apr. 30, 2021USD ($) | Jan. 31, 2021USD ($) | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Jul. 31, 2021USD ($)segmentsProperties | Jul. 31, 2020USD ($) | |
Reportable Segments | ||||||||
Real estate rental revenue | $ 12,542 | $ 12,149 | $ 38,100 | $ 41,430 | ||||
Real estate operating expenses | 9,105 | 9,308 | 27,669 | 33,361 | ||||
Operating income | 3,437 | 2,841 | 10,431 | 8,069 | ||||
Reconciliation to condensed consolidated net income attributable to common equity: | ||||||||
Segment NOI | 7,177 | 6,920 | 21,747 | 23,836 | ||||
Deferred rents - straight lining | (12) | (334) | (225) | (213) | ||||
Investment income | 29 | 38 | 88 | 174 | ||||
General and administrative expenses | (1,413) | (1,233) | (4,143) | (3,061) | ||||
Third party transaction costs | (87) | (4,606) | ||||||
Gain on deconsolidation of subsidiary | 27,680 | |||||||
Loss on investment in tenancy-in-common | (100) | (78) | (245) | (96) | ||||
Depreciation | (2,315) | (2,425) | (6,948) | (7,887) | ||||
Financing costs | (3,050) | (3,121) | (9,242) | (11,032) | ||||
Net income (loss) | 316 | $ (63) | $ 779 | (320) | $ 27,136 | $ (2,021) | 1,032 | 24,795 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (107) | 139 | (256) | (18) | ||||
Net income (loss) attributable to common equity | $ 209 | (181) | $ 776 | 24,777 | ||||
Number of reportable segments | segments | 2 | |||||||
Commercial [Member] | ||||||||
Reconciliation to condensed consolidated net income attributable to common equity: | ||||||||
Number of properties | Properties | 8 | 8 | ||||||
Residential [Member] | ||||||||
Reportable Segments | ||||||||
Recurring capital improvements | $ (258) | (127) | $ (438) | (353) | ||||
Reconciliation to condensed consolidated net income attributable to common equity: | ||||||||
Number of properties | Properties | 7 | 7 | ||||||
Operating Segments [Member] | ||||||||
Reportable Segments | ||||||||
Real estate rental revenue | $ 12,554 | 12,483 | $ 38,325 | 41,643 | ||||
Real estate operating expenses | 5,377 | 5,563 | 16,578 | 17,807 | ||||
Operating income | 7,177 | 6,920 | 21,747 | 23,836 | ||||
Operating Segments [Member] | Commercial [Member] | ||||||||
Reportable Segments | ||||||||
Real estate rental revenue | 5,885 | 6,090 | 18,299 | 19,638 | ||||
Real estate operating expenses | 2,535 | 2,914 | 8,346 | 8,810 | ||||
Operating income | 3,350 | 3,176 | 9,953 | 10,828 | ||||
Operating Segments [Member] | Residential [Member] | ||||||||
Reportable Segments | ||||||||
Real estate rental revenue | 6,669 | 6,393 | 20,026 | 22,005 | ||||
Real estate operating expenses | 2,842 | 2,649 | 8,232 | 8,997 | ||||
Operating income | $ 3,827 | $ 3,744 | $ 11,794 | $ 13,008 |
Income taxes (Details)
Income taxes (Details) | 12 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Ordinary taxable income distributed as dividends (percentage) | 100.00% |
Equity incentive plan (Narrativ
Equity incentive plan (Narrative) (Details) - USD ($) | Mar. 04, 2019 | May 03, 2018 | Nov. 10, 2016 | Sep. 04, 2014 | Jul. 31, 2021 | Jul. 31, 2020 | Jul. 31, 2021 | Jul. 31, 2020 |
Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuance | 442,060 | 442,060 | ||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan term | 10 years | 10 years | 10 years | 10 years | ||||
Vesting term | 5 years | 5 years | 5 years | |||||
Options granted during period | 5,000 | 38,000 | 38,000 | 246,000 | ||||
Options granted during period, price per share | $ 15 | $ 15.50 | $ 21 | $ 18.45 | ||||
Compensation expense related to stock options | $ 11,000 | $ 11,000 | $ 35,000 | $ 35,000 | ||||
Unrecognized compensation cost | 36,000 | $ 36,000 | ||||||
Unrecognized compensation cost, recognition period | 1 year 6 months | |||||||
Aggregate intrinsic value of options expected to vest | 90,000 | $ 90,000 | ||||||
Aggregate intrinsic value of options exercisable | $ 53,000 | $ 53,000 |
Equity incentive plan (Schedule
Equity incentive plan (Schedule of Stock Option Activity) (Details) - Employee Stock Option [Member] - $ / shares | Mar. 04, 2019 | May 03, 2018 | Nov. 10, 2016 | Sep. 04, 2014 | Jul. 31, 2021 | Jul. 31, 2020 |
No. of Options Outstanding | ||||||
Options outstanding at beginning of period | 310,740 | 310,740 | ||||
Options granted during period | 5,000 | 38,000 | 38,000 | 246,000 | ||
Options forfeited/cancelled during period | ||||||
Options outstanding at end of period | 310,740 | 310,740 | ||||
Options vested and expected to vest | 308,310 | 308,310 | ||||
Options exercisable at end of period | 284,940 | 268,740 | ||||
Weighted Average Exercise Price | ||||||
Options outstanding beginning of period | $ 18.35 | $ 18.35 | ||||
Options granted during period | $ 15 | $ 15.50 | $ 21 | $ 18.45 | ||
Options forfeited/cancelled during period | ||||||
Options outstanding end of period | $ 18.35 | $ 18.35 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Dividends payable | $ 343,000 | ||
Deferred Fee Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Trustee fee expense | 356,000 | 444,400 | |
Deferred trustee fees | 332,000 | $ 444,400 | |
Deferred accrued interest | $ 1,021,000 | 1,091,000 | |
Basis spread on any deferred fee (percentage) | 1.50% | ||
Term of distribution to participants | 10 years | ||
Shares issued | 20,328 | 23,302 | |
Dividends payable | $ 24,000 | $ 0 | |
Cumulative fees | $ 1,454,000 | $ 1,542,000 |
Rental Income (Narrative) (Deta
Rental Income (Narrative) (Details) | 9 Months Ended |
Jul. 31, 2021 | |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease terms for residential tenants, periods | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease terms for residential tenants, periods | 2 years |
Rental Income (Schedule of Mini
Rental Income (Schedule of Minimum Rental Income) (Details) $ in Thousands | Jul. 31, 2021USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2021 | $ 17,294 | [1] |
2022 | 15,985 | |
2023 | 13,674 | |
2024 | 11,229 | |
2025 | 9,077 | |
Thereafter | 27,749 | |
Total | $ 95,008 | |
[1] | Amount represents full fiscal year |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Jul. 31, 2021 | Jul. 31, 2020 | Oct. 31, 2020 | |
Aggregate lease termination fee | $ 260,000 | |||
Loss of base rent and additional rent | $ 400,000 | |||
Rental revenue deemed uncollectible | 300,000 | 1,200,000 | ||
Security deposit as accounts receivables | 1,343,000 | $ 1,590,000 | ||
Rent abatements | 34,000 | 135,000 | ||
Deferred payments of loan | 1,013,000 | |||
Repayments of Loan | 162,000 | $ 162,000 | ||
Positive cash flow from operations | 10,195,000 | $ (3,000) | ||
Cash balance | 36,400,000 | |||
Available line of credit | 13,000,000 | |||
FREIT [Member] | ||||
Aggregate lease termination fee | 140,000 | |||
Loss of base rent and additional rent | 200,000 | |||
Rental revenue deemed uncollectible | 100,000 | 700,000 | ||
Rent abatements | $ 20,000 | 91,000 | ||
Commercial Properties [Member] | ||||
Security deposit as accounts receivables | $ 397,000 |