Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Oct. 31, 2014 | Jan. 14, 2015 | Apr. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | ||
Entity Central Index Key | 36840 | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | 31-Oct-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -21 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Entitys Reporting Status Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $100 | ||
Entity Common Stock, Shares Outstanding | 6,821,171 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $222,317 | $205,451 |
Construction in progress | 50,146 | 12,092 |
Cash and cash equivalents | 10,554 | 7,801 |
Tenants' security accounts | 1,590 | 1,435 |
Receivables arising from straight-lining of rents | 3,869 | 4,259 |
Accounts receivable, net of allowance for doubtful accounts | 1,673 | 2,602 |
Secured loans receivable | 5,451 | 3,323 |
Prepaid expenses and other assets | 4,059 | 3,393 |
Deferred charges, net | 5,143 | 2,915 |
Interest rate swap contract | 515 | 980 |
Total Assets | 305,317 | 244,251 |
Liabilities: | ||
Mortgages payable | 251,552 | 199,423 |
Deferred trustee compensation payable | 9,017 | 7,813 |
Accounts payable and accrued expenses | 9,495 | 5,656 |
Dividends payable | 2,046 | 4,582 |
Tenants' security deposits | 2,319 | 2,118 |
Deferred revenue | 1,042 | 854 |
Total Liabilities | 275,471 | 220,446 |
Commitments and contingencies (Note 8) | ||
Common equity: | ||
Shares of beneficial interest without par value: 8,000,000 shares authorized; 6,993,152 shares issued | 24,985 | 24,969 |
Treasury stock, at cost: 171,981 shares @ October 31, 2014; 51,009 shares @ October 31, 2013 | -3,348 | -1,135 |
Dividends in excess of net income | -6,270 | -9,651 |
Accumulated other comprehensive income | 360 | 686 |
Total Common Equity | 15,727 | 14,869 |
Noncontrolling interests in subsidiaries | 14,119 | 8,936 |
Total Equity | 29,846 | 23,805 |
Total Liabilities and Equity | $305,317 | $244,251 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Shares of benefical interest, no par value (in dollars per share) | ||
Shares of benefical interest, authorized | 8,000,000 | 8,000,000 |
Shares of benefical interest, issued | 6,993,152 | 6,993,152 |
Treasury stock at cost, shares | 171,981 | 51,009 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Revenue: | |||
Rental income | $36,913 | $35,819 | $36,440 |
Reimbursements | 5,054 | 5,006 | 4,843 |
Income relating to early lease termination | 2,950 | ||
Sundry income | 463 | 512 | 795 |
Revenue | 42,430 | 41,337 | 45,028 |
Expenses: | |||
Operating expenses | 11,405 | 10,374 | 10,118 |
Management fees | 1,968 | 1,849 | 1,863 |
Real estate taxes | 7,515 | 7,527 | 7,611 |
Depreciation | 6,346 | 6,233 | 6,171 |
Deferred project cost write-off | 3,726 | ||
Expenses | 27,234 | 25,983 | 29,489 |
Operating income | 15,196 | 15,354 | 15,539 |
Investment income | 184 | 191 | 173 |
Acquisition expenses-Regency | -648 | ||
Interest expense including amortization of deferred financing costs | -11,309 | -11,945 | -11,704 |
Income from continuing operations | 3,423 | 3,600 | 4,008 |
Income from discontinued operations | 7 | 797 | 460 |
Gain on sale of discontinued operations (net of tax of $1,965 in fiscal 2012) | 8,734 | 3,545 | 7,528 |
Net income | 12,164 | 7,942 | 11,996 |
Net income attributable to noncontrolling interest in subsidiaries | -507 | -493 | -645 |
Net income attributable to common equity | 11,657 | 7,449 | 11,351 |
Earnings per share - basic and diluted: | |||
Continuing operations | $0.42 | $0.45 | $0.49 |
Discontinued operations | $1.27 | $0.62 | $1.15 |
Net income attributable to common equity | $1.69 | $1.07 | $1.64 |
Weighted average shares outstanding-basic and diluted | 6,908 | 6,942 | 6,942 |
Amounts attributable to common equity: | |||
Income from continuing operations | 2,916 | 3,107 | 3,363 |
Income from discontinued operations | 8,741 | 4,342 | 7,988 |
Net income attributable to common equity | $11,657 | $7,449 | $11,351 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Oct. 31, 2012 |
CONSOLIDATED STATEMENTS OF INCOME [Abstract] | |
Tax on sale of discontinued operations | $1,965 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net income | $12,164 | $7,942 | $11,996 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on interest rate swap contract before reclassifications | -774 | 721 | |
Amount reclassed from accumulated other comprehensive income to interest expense | 309 | 259 | |
Net unrealized gain (loss) on interest rate swap contract | -465 | 980 | |
Comprehensive income | 11,699 | 8,922 | 11,996 |
Net income attributable to noncontrolling interests | -507 | -493 | -645 |
Other comprehensive income (loss): | |||
Unrealized (gain) loss on interest rate swap contract attributable to noncontrolling interests | 140 | -294 | |
Comprehensive income attributable to noncontrolling interests | -367 | -787 | -645 |
Comprehensive income attributable to common equity | $11,332 | $8,135 | $11,351 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Shares of Beneficial Interest [Member] | Treasury Stock [Member] | Dividends in Excess of Net Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Common Equity [Member] | Noncontrolling Interests [Member] |
Balance at Oct. 31, 2011 | $22,650,000 | $24,969,000 | ($1,135,000) | ($9,984,000) | $13,850,000 | $8,800,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions to noncontrolling interests | -834,000 | -834,000 | |||||
Net income | 11,996,000 | 11,351,000 | 11,351,000 | 645,000 | |||
Dividends declared | -7,637,000 | -7,637,000 | -7,637,000 | ||||
Net unrealized loss on interest rate swap | |||||||
Balance at Oct. 31, 2012 | 26,175,000 | 24,969,000 | -1,135,000 | -6,270,000 | 17,564,000 | 8,611,000 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions to noncontrolling interests | -462,000 | -462,000 | |||||
Net income | 7,942,000 | 7,449,000 | 7,449,000 | 493,000 | |||
Dividends declared | -10,830,000 | -10,830,000 | -10,830,000 | ||||
Net unrealized loss on interest rate swap | 980,000 | 686,000 | 686,000 | 294,000 | |||
Balance at Oct. 31, 2013 | 23,805,000 | 24,969,000 | -1,135,000 | -9,651,000 | 686,000 | 14,869,000 | 8,936,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of 120,972 shares of beneficial interest | -2,213,000 | -2,213,000 | -2,213,000 | ||||
Stock based compensation expense | 16,000 | 16,000 | 16,000 | ||||
Distributions to noncontrolling interests | -975,000 | -975,000 | |||||
Net income | 12,164,000 | 11,657,000 | 11,657,000 | 507,000 | |||
Dividends declared | -8,276,000 | -8,276,000 | -8,276,000 | ||||
Net unrealized loss on interest rate swap | -465,000 | -326,000 | -326,000 | -140,000 | |||
Additional investment by noncontrolling interest to Granda Rotunda, LLC | 5,791,000 | 5,791,000 | |||||
Balance at Oct. 31, 2014 | $29,846,000 | $24,985,000 | ($3,348,000) | ($6,270,000) | $360,000 | $15,727,000 | $14,119,000 |
CONSOLIDATED_STATEMENTS_OF_EQU1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 17, 2013 | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
CONSOLIDATED STATEMENTS OF EQUITY [Abstract] | ||||||||||||
Dividends declared, per share | $0.30 | $0.30 | $0.30 | $0.30 | $0.66 | $0.30 | $0.30 | $0.30 | $1.20 | $1.56 | $1.10 | |
Number of shares repurchased | 20,400 | 120,972 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |||
Operating activities: | ||||||
Net income | $12,164 | $7,942 | $11,996 | |||
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | ||||||
Depreciation | 6,346 | 6,244 | 6,215 | |||
Amortization | 750 | 665 | 669 | |||
Stock based compensation | 16 | |||||
Net amortization of acquired leases | 21 | 24 | 2 | |||
Income from early lease termination | -2,950 | |||||
Deferred project cost write-off | 3,726 | |||||
Net gain on sale of discontinued operations | -8,734 | -3,545 | -7,528 | |||
Income tax adjustment on gain on sale of discontinued operation | -720 | [1] | ||||
Changes in operating assets and liabilities: | ||||||
Tenants' security accounts | 46 | 17 | 17 | |||
Accounts and straight-line rents receivable, prepaid expenses and other assets | -217 | -181 | -324 | |||
Accounts payable, accrued expenses and deferred trustee compensation | 1,812 | 318 | 1,541 | |||
Deferred revenue | 190 | -289 | -239 | |||
Net cash provided by operating activities | 12,394 | 10,475 | 13,125 | |||
Investing activities: | ||||||
Capital improvements - existing properties | -3,770 | -2,149 | -2,114 | |||
Construction and pre-development costs | -33,579 | [2] | -4,732 | [3] | -3,999 | [4] |
Regency acquisition | -10,855 | [5] | ||||
Proceeds from sale of discontinued operations | 3,752 | 9,908 | ||||
Secured loans receivable to noncontrolling interest | -2,128 | |||||
Net cash (used in) provided by investing activities | -50,332 | -3,129 | 3,795 | |||
Financing activities: | ||||||
Repayment of mortgages and construction loan | -13,260 | -45,747 | -6,337 | |||
Repayment of credit line | -7,000 | |||||
Proceeds from mortgages and construction loans | 61,829 | 42,750 | 3,085 | |||
Proceeds from credit line | 10,000 | 2,000 | ||||
Deferred financing costs | -2,669 | -1,059 | -210 | |||
Dividends paid | -10,812 | -7,637 | -8,331 | |||
Repurchase of Company's shares of beneficial interest | -2,213 | |||||
Additional investment by noncontrolling interest | 5,791 | [6] | ||||
Distributions to noncontrolling interests | -975 | -462 | -834 | |||
Net cash provided by (used in) financing activities | 40,691 | -10,155 | -12,627 | |||
Net increase (decrease) in cash and cash equivalents | 2,753 | -2,809 | 4,293 | |||
Cash and cash equivalents, beginning of period | 7,801 | 10,610 | 6,317 | |||
Cash and cash equivalents, end of period | 10,554 | 7,801 | 10,610 | |||
Supplemental disclosure of cash flow data: | ||||||
Interest paid, net of amounts capitalized | 10,206 | 10,933 | 10,526 | |||
Income taxes paid | 1,072 | |||||
Investing activities: | ||||||
Proceeds from sale of discontinued operation applied to acquisition of 1031 replacement property. | 9,770 | |||||
Accrued capital expenditures, construction costs, pre-development costs and interest | 8,091 | 3,766 | 747 | |||
Financing activities: | ||||||
Dividends declared but not paid | $2,046 | $4,582 | $1,389 | |||
[1] | Income tax adjustment relating to fiscal 2012 gain on sale of discontinued operation. | |||||
[2] | Includes $3,766 that was incurred and accrued in fiscal 2013; paid in fiscal 2014. | |||||
[3] | Includes $743 that was incurred and accrued in fiscal 2012; paid in fiscal 2013. | |||||
[4] | Includes $2,256 that was incurred and accrued in fiscal 2011; paid in fiscal 2012. | |||||
[5] | Net of $9,770 of proceeds from the sale of South Brunswick property (see Note 2). | |||||
[6] | Represents $5,791 investment in Grande Rotunda, LLC, of which $2,128 was loaned to noncontrolling interest by FREIT. |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2011 |
Statement of Cash Flows [Abstract] | |||
Construction in Progress Expenditures Incurred but Not yet Paid | $3,766 | $743 | $2,256 |
Organization_and_significant_a
Organization and significant accounting policies | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Organization and significant accounting policies [Abstract] | ||||||||||||||
Organization and significant accounting policies | Note 1 - Organization and significant accounting policies: | |||||||||||||
Organization: | ||||||||||||||
First Real Estate Investment Trust of New Jersey ("FREIT" or the “Company”) was organized on November 1, 1961 as a New Jersey Business Trust. FREIT is engaged in owning residential and commercial income producing properties located primarily in New Jersey, Maryland and New York. | ||||||||||||||
FREIT has elected to be taxed as a Real Estate Investment Trust under the provisions of Sections 856-860 of the Internal Revenue Code, as amended. Accordingly, FREIT does not pay federal income tax on income whenever income distributed to shareholders is equal to at least 90% of real estate investment trust taxable income. Further, FREIT pays no federal income tax on capital gains distributed to shareholders. | ||||||||||||||
FREIT is subject to federal income tax on undistributed taxable income and capital gains. FREIT may make an annual election under Section 858 of the Internal Revenue Code to apply part of the regular dividends paid in each respective subsequent year as a distribution for the immediately preceding year. | ||||||||||||||
Adopted and recently issued accounting standards: | ||||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. This update requires companies to present the effects on the line items of net income of significant reclassifications out of accumulated other comprehensive income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income in the same reporting period. ASU 2013-02 is effective prospectively for the Company for fiscal years, and interim periods within those years, beginning after December 15, 2012 with early adoption permitted. The Company has adopted this guidance effective with its 1st quarter ended January 31, 2014. The adoption of this guidance in the year ended October 31, 2014 did not have any material impact on our financial statements. | ||||||||||||||
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amends the definition of a discontinued operation. The new guidance requires discontinued operation treatment for disposals of a component or group of components that represent a strategic shift that has, or will have, a major impact on an entity's operations or financial results. The ASU is effective prospectively for all disposals that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. | ||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2016. Early adoption is not permitted. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. FREIT is currently assessing the impact this new accounting guidance will have on its consolidated financial statements and footnote disclosures. | ||||||||||||||
Principles of consolidation: | ||||||||||||||
The consolidated financial statements include the accounts of FREIT and the following subsidiaries in which FREIT has a controlling financial interest, including two LLCs in which FREIT is the managing member with a 40% ownership interest: | ||||||||||||||
Subsidiary | Owning | % | Year | |||||||||||
Entity | Ownership | Acquired/Organized | ||||||||||||
Westwood Hills, LLC | FREIT | 40 | % | 1994 | ||||||||||
S and A Commercial Associates Limited Partnership ("S and A") | FREIT | 65 | % | 2000 | ||||||||||
Wayne PSC, LLC | FREIT | 40 | % | 2002 | ||||||||||
Damascus Centre, LLC | FREIT | 70 | % | 2003 | ||||||||||
Pierre Towers, LLC | S and A | 100 | % | 2004 | ||||||||||
Grande Rotunda, LLC | FREIT | 60 | % | 2005 | ||||||||||
WestFREIT Corp | FREIT | 100 | % | 2007 | ||||||||||
WestFredic LLC | FREIT | 100 | % | 2007 | ||||||||||
Damascus Second, LLC | FREIT | 70 | % | 2008 | ||||||||||
FREIT Regency, LLC | FREIT | 100 | % | 2014 | ||||||||||
The consolidated financial statements include 100% of each subsidiary's assets, liabilities, operations and cash flows, with the interests not owned by FREIT reflected as "noncontrolling interests in subsidiaries”. All significant inter-company accounts and transactions have been eliminated in consolidation. | ||||||||||||||
Use of estimates: | ||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | ||||||||||||||
Cash and cash equivalents: | ||||||||||||||
Financial instruments that potentially subject FREIT to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits of $250,000. | ||||||||||||||
Real estate development costs: | ||||||||||||||
It is FREIT's policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT ceases capitalization of these costs, when the project or portion thereof becomes operational, or when construction has been postponed. Capitalization of these costs will recommence once construction on the project resumes. | ||||||||||||||
Depreciation: | ||||||||||||||
Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. | ||||||||||||||
Impairment of long-lived assets: | ||||||||||||||
Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. For the fiscal years ended October 31, 2014, 2013 and 2012, there were no impairments of long-lived assets. | ||||||||||||||
Deferred charges: | ||||||||||||||
Deferred charges consist of mortgage costs and leasing commissions. Deferred mortgage costs are amortized on the straight-line method by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $359,000, $370,000 and $368,000 in 2014, 2013 and 2012, respectively. Deferred leasing commissions are amortized on the straight-line method over the terms of the applicable leases. | ||||||||||||||
Revenue recognition: | ||||||||||||||
Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT and commercial tenants generally provide for additional rentals and reimbursements based on such factors as percentage of tenants' sales in excess of specified volumes, increases in real estate taxes, Consumer Price Indices and common area maintenance charges. These additional rentals are generally included in income when reported to FREIT, when earned, or ratably over the appropriate period. | ||||||||||||||
Interest rate swap contract: | ||||||||||||||
FREIT utilizes derivative financial instruments to reduce interest rate risk. FREIT does not hold or issue derivative financial instruments for trading purposes. FREIT recognizes all derivatives as either assets or liabilities in the consolidated balance sheet and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as cash flow hedges, are reported in other comprehensive income (see Note 6). | ||||||||||||||
Advertising: | ||||||||||||||
FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $133,000, $93,000 and $127,000 in 2014, 2013 and 2012, respectively. | ||||||||||||||
Stock-based compensation: | ||||||||||||||
FREIT has a stock-based compensation plan that was approved by FREIT's Board of Trustees (“Board”), and ratified by FREIT's shareholders. Stock based awards under the plan to employees are accounted for based on their grant-date fair value (see Note 12). | ||||||||||||||
Stock-based awards to nonemployees are accounted for based on the fair value of the equity instruments on the vesting date. | ||||||||||||||
Acquired Over Market and Below Market Value Leases and In-Place Leases: | ||||||||||||||
Capitalized above-market lease values are being amortized as a reduction of base rental revenue over the remaining term of the leases, and the capitalized below-market lease values are being amortized as an increase to base rental revenue over the remaining terms of the leases, including renewal options. The value ascribed to leases in place is being amortized over the weighted average remaining lease terms. |
Discontinued_operations
Discontinued operations | 12 Months Ended |
Oct. 31, 2014 | |
Discontinued operations [Abstract] | |
Discontinued operations | Note 2 – Discontinued operations: |
On December 20, 2013, FREIT's South Brunswick property, which consisted of vacant land, was sold for $11 million resulting in a capital gain of approximately $8.7 million net of sales fees and commissions. FREIT structured this sale in a manner that qualifies it as a like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code. The 1031 Exchange transaction will result in a deferral for income tax purposes of the $8.7 million capital gain. The net proceeds from this sale, which were approximately $9.8 million, were held in escrow until a replacement property was purchased. A replacement property related to this like-kind exchange was acquired on June 18, 2014, and the sale proceeds held in escrow were applied to the purchase price of such property (see Note 3 for further details). | |
On April 26, 2013, FREIT sold its Palisades Manor Apartments in Palisades Park, New Jersey for $1.6 million and recognized a capital gain of approximately $1.4 million from the sale. On August 13, 2013, FREIT sold its Grandview Apartments in Hasbrouck Heights, New Jersey for $2.5 million and recognized a capital gain of approximately $2.2 million from the sale of this property. | |
On August 29, 2012, FREIT sold its Heights Manor Apartments in Spring Lake Heights, NJ. In connection with the Heights Manor sale, FREIT recognized a capital gain of approximately $9.5 million of which it distributed approximately $5 million to its shareholders during the fiscal year ended October 31, 2012. As FREIT did not intend to distribute to its shareholders the remaining $4.5 million of capital gain, FREIT paid approximately $1.5 million federal and $400,000 state income taxes on such undistributed gain, which were charged to discontinued operations during the fiscal year ended October 31, 2012. In the quarter ended January 31, 2013, FREIT elected, under Section 858 of the Internal Revenue Code, to treat the $1.4 million dividend paid during such period as a distribution of the prior year's capital gain and, accordingly, reversed $720,000 of the income tax liability, which has been credited to income from discontinued operations for the fiscal year ended October 31, 2013. | |
The gains from the sale of the properties as described above, as well as the related results of their operations for the other three properties described above, have been classified as discontinued operations in the accompanying statements of income for all periods presented. Revenue attributable to discontinued operations for the fiscal years ended October 31, 2014, 2013 and 2012 was $1,000, $317,000 and $1,299,000, respectively. |
Property_acquisition
Property acquisition | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Property acquisition [Abstract] | |||||||||||||
Property acquisition | Note 3 – Property acquisition: | ||||||||||||
On June 18, 2014, FREIT completed the acquisition of the Regency Club (“Regency”), a residential apartment complex located in Middletown, New York. The Regency complex consists of 132 units in 11 buildings and a clubhouse. The acquisition cost was $20,625,000 (exclusive of $648,000 of transaction costs charged to expense), which was funded in part with $9.8 million in net proceeds from the sale of the South Brunswick land, and the remaining balance of $11.5 million (inclusive of the $648,000 of transaction costs) was funded utilizing $10 million of FREIT's credit line with Provident Bank, and FREIT's available cash. On December 29, 2014, FREIT secured long-term financing for this property in the amount of $16.2 million from Provident Bank. A portion of the loan will be used to replace the funds borrowed from its credit line, and the remainder will be available to fund FREIT's future capital expenditures and for general corporate purposes (see Note 17). | |||||||||||||
The acquisition price of $20,625,000 has been preliminarily allocated as follows: $17.8 million (86.3%) to the buildings and $2.8 million (13.7%) to the land. These allocated values are subject to change as more data becomes available and the fair value of the tangible and intangible assets acquired can be more accurately determined. | |||||||||||||
The Regency is part of FREIT's Residential segment. Results of Regency's operations are included in the accompanying financial statements from June 18, 2014, the date of acquisition. Since its acquisition, total revenue, net operating income, and net income recorded for the Regency amounts to $808,000, $314,000, and $165,000, respectively. | |||||||||||||
FREIT identified the Regency as a replacement property for the vacant land located in South Brunswick, New Jersey that FREIT sold on December 20, 2013 (see Note 2). | |||||||||||||
The following unaudited pro forma information shows the results of operations for the fiscal years ended October 31, 2014, 2013 and 2012 for FREIT and Subsidiaries as though the Regency had been acquired at the beginning of fiscal 2012: | |||||||||||||
Years Ended October 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In Thousands) | |||||||||||||
Revenues | $ | 44,016 | $ | 43,672 | $ | 47,213 | |||||||
Net expenses | 40,033 | 39,935 | 42,942 | ||||||||||
Income from continuing operations | 3,983 | 3,737 | 4,271 | ||||||||||
Income from discontinued operations | 7 | 797 | 460 | ||||||||||
Gain on sale of discontinued operation | — | 3,545 | 7,528 | ||||||||||
Net income | 3,990 | 8,079 | 12,259 | ||||||||||
Net income attributable to noncontrolling interest in subsidiaries | (507 | ) | (493 | ) | (645 | ) | |||||||
Net income attributable to common equity | $ | 3,483 | $ | 7,586 | $ | 11,614 | |||||||
Earnings per share - basic and diluted: | |||||||||||||
Continuing operations | $ | 0.5 | $ | 0.47 | $ | 0.52 | |||||||
Discontinued operations | 0 | 0.62 | 1.15 | ||||||||||
Net income attributable to common equity | $ | 0.5 | $ | 1.09 | $ | 1.67 | |||||||
Weighted average shares outstanding - basic and diluted | 6,908 | 6,942 | 6,942 | ||||||||||
The pro forma results for the current and prior year periods reflect the following adjustments: (a) additional depreciation expense based on the purchase price allocated to the buildings and a depreciable life of 40 years, (b) additional interest expense based on the $10 million loan used towards the purchase of the property at acquisition date, (c) exclusion of the $8.7 million gain from the sale of the South Brunswick land in June 2014, since this sale was treated as a 1031 Exchange, and would have had to occur prior to the Regency acquisition under Section 1031 of the Internal Revenue Code, and (d) exclusion of the $648,000 in non-recurring acquisition expenses related to the Regency purchase. | |||||||||||||
The pro forma results of operations set forth above are not necessarily indicative of the results that would have occurred had the acquisition been made at the beginning of fiscal 2012, or of future results of operations of FREIT's combined properties. |
Real_estate
Real estate | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Real estate [Abstract] | |||||||||||
Real estate | Note 4 - Real estate: | ||||||||||
Real estate consists of the following: | |||||||||||
Range of | |||||||||||
Estimated | October 31, | ||||||||||
Useful Lives | 2014 | 2013 | |||||||||
(In Thousands of Dollars) | |||||||||||
Land | $ | 79,435 | $ | 76,602 | |||||||
Unimproved land | 354 | 883 | |||||||||
Apartment buildings | 7-40 years | 101,968 | 81,972 | ||||||||
Commercial buildings/shopping centers | 15-50 years | 119,027 | 118,253 | ||||||||
Equipment/Furniture | 3-15 years | 3,102 | 2,967 | ||||||||
303,886 | 280,677 | ||||||||||
Less accumulated depreciation | 81,569 | 75,226 | |||||||||
Totals | $ | 222,317 | $ | 205,451 |
Mortgages_notes_payable_and_cr
Mortgages, notes payable and credit line | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Mortgages, notes payable and credit line [Abstract] | |||||||||
Mortgages, notes payable and credit line | Note 5 – Mortgages, notes payable and credit line: | ||||||||
October 31, | |||||||||
2014 | 2013 | ||||||||
(In Thousands of Dollars) | |||||||||
Frederick, MD (A) | $ | 22,000 | $ | 22,000 | |||||
Rockaway, NJ (B) | 18,030 | 18,440 | |||||||
Westwood, NJ (C) | 21,884 | 22,388 | |||||||
Patchogue, NY (D) | 5,376 | 5,503 | |||||||
Wayne, NJ (E) | 18,686 | 18,976 | |||||||
River Edge, NJ (F): | |||||||||
First mortgage | — | 3,952 | |||||||
Second mortgage | — | 1,494 | |||||||
River Edge, NJ (G) | 11,037 | — | |||||||
Maywood, NJ (H): | |||||||||
First mortgage | — | 2,868 | |||||||
Second mortgage | — | 1,060 | |||||||
Maywood, NJ (I) | 8,374 | — | |||||||
Westwood, NJ (J) | 21,974 | 22,383 | |||||||
Wayne, NJ (K) | 25,978 | 26,863 | |||||||
Hackensack, NJ (L) | 31,198 | 31,797 | |||||||
Damascus, MD (M) | 19,326 | 19,699 | |||||||
Total fixed rate mortgage loans | 203,863 | 197,423 | |||||||
Baltimore, MD (N) | 42,689 | — | |||||||
Line of credit - Provident Bank (O) | 5,000 | 2,000 | |||||||
Total mortgages, notes payable and credit line | $ | 251,552 | $ | 199,423 | |||||
(A) | Payable in monthly installments of interest only computed over the actual number of days in the elapsed monthly interest period at the rate of 5.55% through May 2017 at which time the outstanding balance is due. The mortgage is secured by a retail building in Frederick, MD having a net book value of approximately $17,197,000 as of October 31, 2014. | ||||||||
(B) | Payable in monthly installments of $115,850 including interest at 5.37% through February 2022 at which time the outstanding balance is due. The mortgage is secured by a residential building in Rockaway, NJ having a net book value of approximately $17,080,000 as of October 31, 2014. | ||||||||
(C) | On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8.0 million, with a new mortgage loan in the amount of $22,750,000, which is payable in monthly installments of $129,702 including interest at 4.75% through January 2023 at which time the outstanding balance is due. The new mortgage is secured by a retail building in Westwood, NJ having a net book value of approximately $8,375,000 as of October 31, 2014. | ||||||||
(D) | The loan, modified effective January 31, 2013, is payable in monthly installments of $31,046 including interest at 4.5%, through March 2018 at which time the outstanding balance is due. Under the terms of the mortgage loan agreement, FREIT can request, during the term of the loan, additional fundings that will bring the outstanding principal balance up to 75% of loan-to-value (percentage of mortgage loan to total appraised value of property securing the loan). The mortgage is secured by a retail building in Patchogue, NY having a net book value of approximately $7,152,000 as of October 31, 2014. | ||||||||
(E) | Payable in monthly installments of $121,100 including interest at 6.09%, through September 1, 2019 at which time the outstanding balance is due. The mortgage is secured by an apartment building in Wayne, NJ having a net book value of approximately $1,653,000 as of October 31, 2014. | ||||||||
(F) | The first mortgage was payable in monthly installments of $34,862 including interest at 6.75% through December 2013 at which time the outstanding balance was due. The second mortgage is payable in monthly installments of $12,318 including interest at 5.53% through December 2013 at which time the outstanding balance was due (see G). | ||||||||
(G) | On November 19, 2013, FREIT refinanced these mortgage loans, which were scheduled to mature on December 1, 2013. The amount of the new loan is $11,200,000 at a fixed interest rate of 4.54%, with a scheduled maturity of December 1, 2023. The mortgages are secured by an apartment building in River Edge, NJ having a net book value of approximately $942,000 as of October 31, 2014. | ||||||||
(H) | The first mortgage was payable in monthly installments of $25,295 including interest at 6.75% through December 2013 at which time the outstanding balance was due. The second mortgage is payable in monthly installments of $8,739 including interest at 5.53% through December 2013 at which time the outstanding balance was due (see I). | ||||||||
(I) | On November 19, 2013, FREIT refinanced these mortgage loans, which were scheduled to mature on December 1, 2013. The amount of the new loan is $8,500,000 at a fixed interest rate of 4.54%, with a scheduled maturity of December 1, 2023. The mortgages are secured by an apartment building in Maywood, NJ having a net book value of approximately $748,000 as of October 31, 2014. | ||||||||
(J) | Payable in monthly installments of $120,752 including interest of 4.62%, through November 1, 2020, at which time the outstanding balance is due. The mortgage is secured by an apartment building in Westwood, NJ having a net book value of approximately $10,398,000 as of October 31, 2014. | ||||||||
(K) | Payable in monthly installments of $206,960 including interest of 6.04% until June 2016 at which time the unpaid balance is due. The mortgage is secured by a shopping center in Wayne, NJ having a net book value of approximately $26,945,000 as of October 31, 2014. | ||||||||
(L) | Payable in monthly installments of $191,197 including interest of 5.38% until May 2019 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Hackensack, NJ having a net book value of approximately $41,546,000 as of October 31, 2014. | ||||||||
(M) | On December 26, 2012, Damascus Centre, LLC refinanced its $15 million construction loan with long-term financing provided by People's United Bank. The amount of the new loan is $25 million, of which $20 million has been drawn as of October 31, 2014. The balance, up to an additional $5 million, will be available as a one-time draw over the 36 month period ending December 26, 2015, and the amount available will depend on future leasing at the shopping center. The new loan bears a floating interest rate equal to 210 basis points over the BBA LIBOR and the loan will mature on January 3, 2023. In order to minimize interest rate volatility during the term of the loan, Damascus Centre, LLC entered into an interest rate swap agreement that in effect, converted the floating interest rate to a fixed interest rate of 3.81% over the term of the loan (see Note 6 for additional information relating to the interest rate swap). The shopping center securing the loan has a net book value of approximately $29,644,000 as of October 31, 2014. | ||||||||
(N) | On February 1, 2010, a principal payment of $3 million was made reducing the original loan amount of $22.5 million to $19.5 million and the due date was extended until February 1, 2013. As part of the terms of the loan extension agreement, the loan was further collateralized by a first mortgage lien and the assignment of the ground lease on FREIT's Rochelle Park, NJ land parcel. Under the restructured terms, the interest rate is now 350 basis points above the BBA LIBOR with a floor of 4%, and monthly principal payments of $10,000 are required. An additional principal payment of $110,000 was required on February 1, 2012 in order to reduce the loan to achieve the stipulated debt service coverage ratio. Under the agreement with the equity owners of Grande Rotunda, LLC, FREIT would be responsible for 60% of any cash required by Grande Rotunda, LLC, and 40% would be the responsibility of the minority interest. The due date of the loan was further extended to May 1, 2013 from February 1, 2013. While the bank agreed to an additional extension of ninety-days (90) from May 1, 2013, FREIT elected to purchase the Rotunda loan from the bank and have all the bank's rights assigned to FREIT. The purchase of this loan by FREIT was completed on May 28, 2013. FREIT subsequently sold this loan to Wells Fargo Bank, the lender providing the construction financing for the expansion of the Rotunda project. On December 9, 2013, Grande Rotunda, LLC closed with Wells Fargo Bank on a construction loan of up to $120 million to be used for the purpose of funding the major redevelopment and expansion project in progress at the Rotunda. The construction loan is for a term of four (4) years, with one 12-month extension, at a rate of 225 basis points over the monthly LIBOR. Interest on the loan is accrued and applied to principal. Such interest will be due and payable at maturity. The loan is secured by the Rotunda property in Baltimore, MD, which has a net book value of approximately $79,268,000 as of October 31, 2014, including $48.8 million classified as construction in progress. As of October 31, 2014, $42.7 million was drawn on the construction loan with Wells Fargo Bank, of which $19 million was used to pay off the loan from FREIT, and $23.7 million was used towards the construction at the Rotunda. | ||||||||
(O) | Credit Line: FREIT has a line of credit provided by the Provident Bank in the amount of $13 million. The line of credit is for a two year term ending on November 1, 2016, but can be cancelled by the bank, at its will, within 60 days before or after each anniversary date. The credit line will automatically be extended at the termination date of the current term and each subsequent term for an additional period of 24 months, provided there is no default and the credit line has not been cancelled. Draws against the credit line can be used for general corporate purposes, for property acquisitions, construction activities, and letters of credit. Draws against the credit line are secured by mortgages on FREIT's Franklin Crossing Shopping Center, in Franklin Lakes, NJ, and retail space in Glen Rock, NJ. Interest rates on draws will be set at the time of each draw for 30, 60, or 90-day periods, based on our choice of the prime rate or at 175 basis points over the 30, 60, or 90-day LIBOR rates at the time of the draws. The interest rate on the line of credit has a floor of 3.5%. The Palisades Manor and the Grandview Apartment properties had been part of the collateral for the line of credit prior to FREIT's sales of these properties in April 2013 and August 2013, respectively. Provident Bank released these properties as collateral for the credit line in connection with these dispositions, and as a result, the credit line was reduced from $18 million to approximately $13 million as of July 2013. As of October 31, 2014, approximately $8 million was available under the line of credit, and $5 million was outstanding. | ||||||||
Certain of the Company's mortgage loans and the Credit Line contain financial covenants. The Company was in compliance with all of its financial covenants as of October 31, 2014. | |||||||||
Fair Value of Long-Term Debt: | |||||||||
The following table shows the estimated fair value and carrying value of FREIT's long-term debt at October 31, 2014 and 2013: | |||||||||
October 31, | October 31, | ||||||||
($ in Millions) | 2014 | 2013 | |||||||
Fair Value | $ | 256 | $ | 201.9 | |||||
Carrying Value | $ | 251.6 | $ | 199.4 | |||||
Fair values are estimated based on market interest rates at October 31, 2014 and October 31, 2013 and on discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value, which is based on observable inputs, has been characterized as level 2 in the fair value hierarchy as provided by authoritative guidance. | |||||||||
Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2014 are as follows: | |||||||||
Year Ending October 31, | Amount | ||||||||
2015 | $ | 4,101 | |||||||
2016 | $ | 28,434 | |||||||
2017 | $ | 25,494 | |||||||
2018 | $ | 8,489 | |||||||
2019 | $ | 91,102 | (a) | ||||||
(a) | Includes $42,689 relating to the Rotunda construction loan, due December 2018. (See Note 5(N).) |
Interest_rate_swap_contract
Interest rate swap contract | 12 Months Ended |
Oct. 31, 2014 | |
Interest rate swap contract [Abstract] | |
Interest rate swap contract | Note 6 - Interest rate swap contract: |
On December 26, 2012, Damascus Centre, LLC refinanced its $15 million construction loan with a variable rate $25 million mortgage loan of which $20 million has been drawn as of October 31, 2014. The new loan will mature on January 3, 2023 (see Note 5(M) for additional information regarding the refinanced loan). In connection therewith, on December 26, 2012, FREIT entered into an interest rate swap contract to reduce the impact of interest rate fluctuations on the LIBOR based variable rate mortgage. At October 31, 2014, the derivative financial instrument has a notional amount of approximately $19,356,000 and a current maturity date of January 2023. The contract effectively converts the LIBOR based variable rate to a fixed rate of 3.81%. In accordance with ASC 815, “Accounting for Derivative Instruments and Hedging Activities”, FREIT is accounting for this interest rate swap as a cash flow hedge and marks to market its fixed pay interest rate swap, taking into account present interest rates compared to the contracted fixed rate over the life of the contract. For the year ended October 31, 2013, FREIT recorded an unrealized gain of $980,000 in comprehensive income representing the fair value of the swap, which resulted in a $980,000 corresponding asset as of October 31, 2013. During the year ended October 31, 2014, FREIT recorded an unrealized loss of $465,000 in comprehensive income representing the reduction in the fair value of the swap for fiscal 2014, which resulted in a $515,000 corresponding asset as of October 31, 2014. The fair value is based on observable inputs (level 2 in the fair value hierarchy). |
Capitalized_interest
Capitalized interest | 12 Months Ended |
Oct. 31, 2014 | |
Capitalized interest [Abstract] | |
Capitalized interest | Note 7 - Capitalized interest |
Interest costs associated with amounts expended at the Rotunda development are capitalized and included in the cost of the project. Interest capitalized during the year ended October 31, 2014, amounted to $1,110,000. |
Commitments_and_contigencies
Commitments and contigencies | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Commitments and contingencies [Abstract] | |||||
Commitments and contigencies | Note 8 - Commitments and contingencies: | ||||
Leases: | |||||
Commercial tenants: | |||||
FREIT leases commercial space having a net book value of approximately $179 million at October 31, 2014 to tenants for periods of up to twenty-five years. Most of the leases contain clauses for reimbursement of real estate taxes, maintenance, insurance and certain other operating expenses of the properties. | |||||
Minimum rental income (in thousands of dollars) to be received from non-cancelable operating leases in years subsequent to October 31, 2014 is as follows: | |||||
Year Ending October | Amount | ||||
31, | |||||
2015 | $ | 16,667 | |||
2016 | 15,398 | ||||
2017 | 12,276 | ||||
2018 | 10,258 | ||||
2019 | 8,861 | ||||
Thereafter | 56,270 | ||||
Total | $ | 119,730 | |||
The above amounts assume that all leases which expire are not renewed and, accordingly, neither minimal rentals 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 or increases in Consumer Price Indices. Rental income that is contingent on future events is not included in income until the contingency is resolved. Contingent rentals included in income for each of the three years for the period ended October 31, 2014 were not material. | |||||
Residential tenants: | |||||
Lease terms for residential tenants are usually one year or less. | |||||
Environmental concerns: | |||||
The Westwood Plaza Shopping Center property is in a Flood Hazard Zone. FREIT maintains flood insurance in the amount of $500,000 for the subject property, which is the maximum available under the Flood Program for the property. Any reconstruction of that portion of the property situated in the flood hazard zone is subject to regulations promulgated by the New Jersey Department of Environmental Protection (“NJDEP”), which could require extraordinary construction methods. | |||||
Prior to its purchase by Wayne PSC, LLC, a 40% owned affiliate of FREIT (“Wayne PSC”), a Phase I and Phase II Environmental Assessment of the Preakness shopping center revealed soil and ground water contamination with Percloroethylene (Dry Cleaning Fluid) caused by the mishandling of this chemical by a former dry cleaner tenant. | |||||
The seller of the Preakness shopping center to Wayne PSC is in the process of performing the remedial work in accordance with the requirements of the NJDEP. Additionally, the seller has escrowed the estimated cost of the remediation and has purchased a cap-cost insurance policy covering any expenses over and above the estimated cost. | |||||
In performing the remedial work, possible contamination of this property by groundwater migrating from an offsite source was discovered. The NJDEP has not made any determination with respect to responsibility for remediation of this possible condition, and it is not possible to determine whether or to what extent Wayne PSC will have potential liability with respect to this condition or whether or to what extent insurance coverage may be available. | |||||
FREIT has conducted environmental audits for all of its properties except for its undeveloped land and retail properties in Franklin Lakes (Franklin Crossing) and Glen Rock, New Jersey. Except as noted above, the environmental reports secured by FREIT have not revealed any environmental conditions on its properties, which require remediation pursuant to any applicable federal or state law or regulation. | |||||
FREIT has determined that several of its properties contain lead based paint (“LBP”). FREIT believes that it complies with all federal, state and local requirements as they pertain to LBP. | |||||
FREIT does not believe that the environmental conditions described above will have a materially adverse effect upon the capital expenditures, revenues, earnings, financial condition or competitive position of FREIT. |
Giant_lease_termination_Rotund
Giant lease termination; Rotunda project cost write-off | 12 Months Ended |
Oct. 31, 2014 | |
Giant lease termination; Rotunda project cost write-off [Abstract] | |
Giant lease termination; Rotunda project cost write-off | Note 9 - Giant lease termination; Rotunda project cost write-off: |
On February 3, 2012, Grande entered into a lease termination agreement (“Agreement”) with Giant of Maryland LLC (“Giant”), the former tenant and operator of the 35,994 sq. ft. Giant supermarket at Grande's Rotunda property located in Baltimore, Maryland. Giant, under the terms of the Agreement, agreed to (i) waive its right to extend the term of the lease through March 31, 2035, (ii) terminate the lease and surrender the premises to Grande no later than the earlier of commencement of the redevelopment of the property or March 31, 2015, and (iii) notwithstanding any earlier termination date, continue to pay monthly fixed rent payments plus its share of common area maintenance charges and taxes for the Rotunda property through March 31, 2015. Grande agreed (i) not to lease more than 20,000 sq. ft. of any space in the property for use as a food supermarket through March 31, 2035, and (ii) if Grande decides to lease such space for use as a food supermarket, it must first offer the space for the same use under the terms acceptable to Grande, to Giant, which will have thirty days to accept the offer before the space may be leased to a third party. As a result of the Giant lease termination and the terms of the Agreement, Grande will not be required to construct a lower level Giant supermarket as part of the redevelopment project at the Rotunda, which represented a costly component to the project. In addition, the Giant lease contained significant restrictions on Grande's ability to make modifications to the property. This development cleared the way for Grande to move forward with the redevelopment planning for this property. As a result of Giant terminating its lease and vacating its space at the Rotunda shopping center, the results for Fiscal 2012 include income of $2.95 million relating to the Giant early lease termination, offset by a $1.49 million deferred project cost write-off relating to a change in the future development plans for the Rotunda shopping center, specifically the impact that the Giant portion of the project had on the design fees incurred to date and included in Construction in Progress (“CIP”). The early lease termination fee is comprised of the net present value of the monthly rent in accordance with the terms of the terminated lease, projected common area maintenance charges and real estate taxes from April 1, 2012 through March 31, 2015. In addition, included in the $2.95 million lease termination fee are the write-off of the balances in Below Market Value Acquisition Costs, and In-Place Lease Costs relating to the Giant lease. Accretion of the present value discount during Fiscal 2014, 2013 and 2012 amounted to approximately $44,000, $87,000 and $69,000, respectively, which is included in investment income on the accompanying Consolidated Statements of Income. | |
In light of the Giant lease termination and its potential impact on the scope of the development plans for the Rotunda site, management proposed further revisions to the scope of the Rotunda development project. On July 24, 2012, the Board approved the revisions to the scope of the project, thereby further reducing the complexity and projected cost of the project. As a result of the Board's decision to move forward with the revised development plans, an additional $2.2 million of certain deferred project costs relating to planning and feasibility costs included in CIP were no longer deemed to have any utility, and were written-off in Fiscal 2012. |
Management_agreement_fees_and_
Management agreement, fees and transactions with related party | 12 Months Ended |
Oct. 31, 2014 | |
Management agreement, fees and transactions with related party [Abstract] | |
Management agreement, fees and transactions with related party | Note 10 - Management agreement, fees and transactions with related party: |
On April 10, 2002, FREIT and Hekemian & Co., Inc. (“Hekemian”) executed a Management Agreement whereby Hekemian would continue as Managing Agent for FREIT. The term of the Management Agreement was renewed on November 1, 2013 for a two-year term which will expire on October 31, 2015. The Management Agreement automatically renews for successive periods of two years unless either party gives not less than six (6) months prior notice to the other of non-renewal. | |
Pursuant to the terms of the Management Agreement: FREIT retains Hekemian as the exclusive management and leasing agent for properties which FREIT owned as of April 2002 and for the Preakness Shopping Center acquired on November 1, 2002 by Wayne PSC. However, FREIT may retain other managing agents to manage certain other properties acquired after April 10, 2002 and to perform various other duties such as sales, acquisitions, and development with respect to any or all properties. Hekemian does not serve as the exclusive advisor for FREIT to locate and recommend to FREIT investments, which Hekemian deems suitable for FREIT, and is not required to offer potential acquisition properties exclusively to FREIT before acquiring those properties for its own account. The Management Agreement includes a detailed schedule of fees for those services, which Hekemian may be called upon to perform. The Management Agreement provides for a termination fee in the event of a termination or non-renewal of the Management Agreement under certain circumstances. | |
Hekemian currently manages all the properties owned by FREIT, except for the Rotunda, a mixed-use office and retail facility located in Baltimore, Maryland, which is managed by an independent third party management company. The management agreement with Hekemian, effective November 1, 2001, requires the payment of management fees equal to a percentage of rents collected. Such fees were approximately $1,866,000, $1,747,000 and $1,792,000 in Fiscal 2014, 2013 and 2012, 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. Such fees amounted to approximately $673,000, $339,000 and $402,000 in Fiscal 2014, 2013 and 2012, respectively. The primary reason for the increase in fees for fiscal 2014 was leasing commissions amounting to approximately $396,000. Total Hekemian management fees outstanding at October 31, 2014 and 2013 were $171,000 and $152,000, respectively, and included in Accounts Payable on the accompanying Consolidated Balance Sheets. FREIT 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 amounted to approximately $133,000, $121,000 and $122,000 in fiscal 2014, 2013 and 2012, respectively. | |
Grande owns and operates the Rotunda. FREIT owns a 60% equity interest in Grande, and Rotunda 100, LLC (“Rotunda 100”) owns a 40% equity interest. | |
Damascus Centre, LLC owns and operates the Damascus Center. During fiscal 2005, the Board authorized an investor group, Damascus 100, LLC (“Damascus 100”), to acquire a 30% equity interest in Damascus Centre, LLC. The sale price, based on the fair market value of the shopping center, reduced FREIT's equity interest to 70%. The sale was completed on October 31, 2006, at a sales price of $3,224,000, of which FREIT financed approximately $1,451,000. The sale price was equivalent to the book value of the interest sold. | |
The equity owners of Rotunda 100, and Damascus 100 are principally employees of Hekemian. To incentivize the employees of Hekemian, FREIT has agreed to advance, 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 and Damascus 100. These advances are in the form of secured loans that bear interest that will 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 Damascus 100, and are full recourse loans. Interest only payments are required to be made quarterly. | |
No principal payments are required during the term of the notes, except that the borrowers are required to pay to FREIT all refinancing proceeds and other cash flow they receive from their interests in Damascus Centre, LLC and Grande. These payments shall be applied first to accrued and unpaid interest and then any outstanding principal. The notes mature at the earlier of (a) ten (10) years after issue (Grande– 6/19/2015, Damascus Centre, LLC – 9/30/2016), or, (b) at the election of FREIT, ninety (90) days after the borrower terminates employment with Hekemian, at which time all outstanding unpaid principal is due. On May 8, 2008, the Board approved amendments to the existing loan agreements with the Hekemian employees, relative to their interests in Rotunda 100, to increase the aggregate amount that FREIT may advance to such employees from $2 million to $4 million. No other terms of the loan agreements were amended. | |
With regard to the funding of the Rotunda redevelopment project, Wells Fargo Bank, the construction lender, required that Grande contribute not less than $14,460,000 towards the construction before any construction loan proceeds could be disbursed. To secure these funds Grande made a capital call on its members – FREIT and Rotunda 100. FREIT's share (60%) amounts to approximately $8.7 million, and the Rotunda 100 members' share (40%) amounts to approximately $5.8 million. During Fiscal 2014, FREIT, pursuant to previous agreements, has made secured loans to the Rotunda 100 members of approximately $2.1 million towards their share of the $5.8 million capital call. The balance of Rotunda 100's capital call of approximately $3.7 million was initially made by FREIT until it was repaid by Rotunda 100 in August 2014. These loans bear an interest rate of 225 basis points over the 90 day LIBOR, and have a maturity date of June 19, 2015. These loans are included in Secured Loans Receivable on FREIT's consolidated balance sheet at October 31, 2014. | |
As of October 31, 2014, FREIT and Rotunda 100 have made their required capital call contributions of $8.7 million and $5.8 million, respectively, towards the Rotunda construction financing. Both FREIT and the Rotunda 100 members are treating their required capital call contributions as additional investments in Grande. Rotunda 100 is principally owned by employees of Hekemian, including certain members of the immediate family of Robert S. Hekemian and Robert S. Hekemian, Jr. | |
The aggregate outstanding principal balance of the notes at October 31, 2014 and 2013 was $5,451,000 and $3,323,000, respectively. The accrued but unpaid interest related to these notes for Fiscal 2014 and Fiscal 2013 amounted to approximately $595,000 and $486,000, respectively, and is included in Accounts Receivable on the accompanying Consolidated Balance Sheets. | |
From time to time, FREIT engages Hekemian to provide certain additional services, such as consulting services related to development, property sales and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian and FREIT with respect to such additional services. In Fiscal 2007, the Board approved development fee arrangements for the Rotunda and Damascus Center redevelopment projects. In connection with the development activities at the Rotunda and the redevelopment activities at the Damascus Center, definitive contract agreements for the development services to be provided by Hekemian Development Resources LLC (“Resources”), a wholly-owned subsidiary of Hekemian, have been approved and executed. The development fee arrangement for the Rotunda provides for Resources to receive a fee equal to 6.375% of the total development costs of up to $84.6 million (as may be modified, and less the amount of $3 million previously paid to Hekemian for the Rotunda project). In addition, the Board approved the payment of a fee to Resources in the amount of $1.4 million in connection with the revision to the scope of the Rotunda development project. The fee will be paid to Resources upon the following terms: (i) $500,000 of the $1.4 million will be paid on a monthly basis during the design phase (the $500,000 was paid in Fiscal 2013); and (ii) $900,000 of the $1.4 million will be paid upon the issuance of a certificate of occupancy for the multi-family portion of the project, (the $900,000 is included in Accounts Payable at October 31, 2014 and 2013). The fee for the redevelopment of the Damascus Center was equal to 7% of the redevelopment costs of up to approximately $17.3 million (as may be modified). Such fees incurred to Hekemian and Resources during Fiscal 2014, Fiscal 2013 and Fiscal 2012 were $1,998,000, $1,823,000 and $317,000, respectively. Included within the $2.0 million in fees for Fiscal 2014 are: (a) development fees of approximately $1 million paid to Resources, relating to the Rotunda development project, and (b) commissions of $880,000 relating to the sale of the South Brunswick land and the subsequent acquisition of the Regency apartment complex. Included within the $1.8 million in fees incurred for Fiscal 2013 are: (a) development fees totaling $1.4 million payable to Resources, relating to the Rotunda development project, referred to above, (b) services performed with regard to the Westwood Plaza shopping center and Damascus shopping center mortgage loan refinancings amounting to $239,000 (see Note 5), and (c) $185,000 relating to commissions paid to Hekemian for the sale of the Palisades Manor and Grandview Apartment properties. In Fiscal 2012, FREIT paid Hekemian $317,000 relating to the commission on the sale of the Heights Manor property. All such fees, expect for those related to sales of properties, were capitalized. | |
Resources, Rotunda 100, and Damascus 100 are principally owned by employees of Hekemian, including certain members of the immediate family of Robert S. Hekemian and Robert S. Hekemian, Jr. Robert S. Hekemian, Chairman of the Board, Chief Executive Officer and a Trustee of FREIT, is the Chairman of the Board and Chief Executive Officer of Hekemian. Robert S. Hekemian, Jr, a Trustee of FREIT, is the President of Hekemian. Trustee fee expense (including interest) incurred by FREIT for Fiscal 2014, 2013 and 2012 was approximately $642,000, $586,000 and $546,000, respectively, for Robert S. Hekemian, and $46,000, $40,000 and $43,000, respectively, for Robert S. Hekemian, Jr. The members of the Hekemian family have majority management control of these entities. |
Income_taxes
Income taxes | 12 Months Ended |
Oct. 31, 2014 | |
Income taxes [Abstract] | |
Income taxes | Note 11 – Income taxes: |
FREIT distributed as dividends to its shareholders 100% of its ordinary taxable income for each of the fiscal years ended October 31, 2014, 2013 and 2012. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income was recorded in the Company's financial statements. As described in Note 2, FREIT has completed a like-kind exchange with respect to the sale of the South Brunswick, NJ property, which was sold on December 20, 2013 at a gain of approximately $8.7 million. Accordingly, no provision for federal or state income taxes related to such gain was recorded in the Company's financial statements. The tax basis of Regency, which was the replacement property in the like-kind exchange, is approximately $8 million lower than the acquisition cost of approximately $20.6 million recorded for financial reporting purposes. In December 2013, FREIT distributed as dividends in December 2013, the entire capital gain of approximately $3.5 million realized on the sale of its Palisades Manor and Grandview properties in Fiscal 2013, and in Fiscal 2012, FREIT distributed $5 million of the $9.5 million capital gain realized from the sale of its Heights Manor Apartments (see Note 2). With regard to such capital gains dividend distributions for Fiscal 2013 and Fiscal 2012, no provisions for federal or state income taxes related to such capital gain income was recorded in the Company's financial statements. However, since FREIT did not intend to distribute to its shareholders the remaining $4.5 million of capital gain realized on the Heights Manor sale, FREIT provided approximately $1.5 million federal and $400,000 state income taxes on such undistributed gain, which was charged to discontinued operations in Fiscal 2012. In the quarter ended January 31, 2013, FREIT decided to elect, under Section 858 of the Internal Revenue Code, to treat the $1.4 million dividend paid during such period as a distribution of the prior year's capital gain and, accordingly, reversed $720,000 of the income tax liability, which has been credited to income from discontinued operations for Fiscal 2013. | |
As of October 31, 2014, the Company had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2011 remain open to examination by the major taxing jurisdictions to which the Company is subject. |
Equity_incentive_plan
Equity incentive plan | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Equity incentive plan [Abstract] | |||||||||
Equity incentive plan | Note 12- Equity incentive plan: | ||||||||
On September 10, 1998, the Board approved FREIT's Equity Incentive Plan (the "Plan") which was ratified by FREIT's shareholders on April 7, 1999, whereby up to 920,000 of FREIT's shares of beneficial interest (adjusted for stock splits) may be granted to key personnel in the form of stock options, restricted share awards and other share-based awards. In connection therewith, the Board approved an increase of 920,000 shares in FREIT's number of authorized shares of beneficial interest. Key personnel eligible for these awards include trustees, executive officers and other persons or entities including, without limitation, employees, consultants and employees of consultants, who are in a position to make significant contributions to the success of FREIT. Under the Plan, the exercise price of all options will be the fair market value of the shares on the date of grant. The consideration to be paid for restricted share and other share-based awards shall be determined by the Board, with the amount not to exceed the fair market value of the shares on the date of grant. The maximum term of any award granted may not exceed ten years. The Board will determine the actual terms of each award. | |||||||||
On April 4, 2007, FREIT shareholders approved amendments to the Plan as follows: (a) reserving an additional 300,000 shares for issuance under the Plan; and (b) extending the term of the Plan until September 10, 2018. As of October 31, 2014, 220,000 shares are available for issuance under the Plan. | |||||||||
On September 4, 2014, the Board approved the grant of a total of 246,000 non-qualified share options under the Plan to certain FREIT Executive Officers, the members of the Board and certain employees of Hekemian & Co., Inc., FREIT's managing agent. The options have an exercise price of $18.45 per share, will vest over a 5 year period at 20% per year, and will expire 10 years from the date of grant, which will be September 3, 2024. | |||||||||
During Fiscal 2013 and 2012, no options or other stock awards were granted under the Plan. There were no options outstanding at October 31, 2013, since all previously granted options expired in September 2008 or were exercised prior to that date. | |||||||||
The following table summarizes stock option activity for Fiscal 2014: | |||||||||
Year Ended October 31, | |||||||||
2014 | |||||||||
No. of Options | Exercise | ||||||||
Outstanding | Price | ||||||||
Options outstanding beginning of period | — | — | |||||||
Options granted during period | 246,000 | $ | 18.45 | ||||||
Options outstanding end of period | 246,000 | $ | 18.45 | ||||||
Options expected to vest | — | ||||||||
Options exercisable at end of period | — | ||||||||
The estimated fair value of options granted during Fiscal 2014 was $1.91 per option. Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: | |||||||||
• | Expected volatility – 30.50% | ||||||||
• | Risk-free interest rate – 2.50% | ||||||||
• | Imputed option life – 6.81 years | ||||||||
• | Expected dividend yield – 6.60% | ||||||||
The expected volatility over the options' expected life was based on the historical volatility of the weekly closing price of the Company's stock over a five (5) year period. The risk-free interest rate is based on the annual yield on the grant date of a zero-coupon U.S. Treasury Bond the maturity of which equals the option's expected life. The imputed option life is based on the simplified expected term calculation permitted by the SEC, which defines the expected life as the average of the contractual term of the options and the weighted-average vesting period for all option tranches. The expected dividend yield is based on the Company's historical dividend yield, exclusive of capital gain dividends. | |||||||||
For Fiscal 2014, compensation expense related to stock options granted amounted to $16,000. At October 31, 2014, there was approximately $454,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over a vesting period of approximately five (5) years. | |||||||||
The aggregate intrinsic value of options outstanding at October 31, 2014 was $12,300. |
Deferred_fee_plan
Deferred fee plan | 12 Months Ended | ||
Oct. 31, 2014 | |||
Deferred fee plan [Abstract] | |||
Deferred fee plan | Note 13- Deferred fee plan: | ||
During fiscal 2001, the Board adopted a deferred fee plan for its officers and trustees, which was amended and restated in fiscal 2009 to make the deferred fee plan compliant with Section 409A of the Internal Revenue Code and the regulations promulgated thereunder (the “Deferred Fee Plan”). Pursuant to the Deferred Fee Plan, any officer or trustee may elect to defer receipt of any fees that would be due them. These fees include annual retainer and meeting attendance fees as determined by the full Board of Trustees. FREIT has agreed to pay any participant (the “Participant”) in the Deferred Fee Plan interest on any deferred fee at 9% per annum, compounded quarterly. Any such deferred fee is to be paid to the Participants at the later of: (i) the retirement age specified in the deferral election; (ii) actual retirement; or (iii) upon cessation of a Participant's duties as an officer or trustee. | |||
The Deferred Fee Plan provides that any such deferral fee 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. Trustee fee expense (including interest) for each of the years ended October 31, 2014, 2013 and 2012 was $1,204,000, $1,101,000, and $1,045,000, respectively. As of October 31, 2014 and 2013, approximately $5,163,000 and $4,703,000, respectively, of fees have been deferred together with accrued interest of approximately $3,854,000 and $3,110,000, respectively. | |||
On September 4, 2014, the Board approved the following amendments to the FREIT Deferred Fee Plan, effective November 1, 2014, as follows: | |||
(a) | On a prospective basis, a change in the interest rate payable on deferred fees payable to FREIT Trustees from 9% per annum, compounded quarterly, to a floating rate, adjusted quarterly, equal to the average interest rate on ten year treasury bonds plus 150 basis points; | ||
(b) | On a prospective basis, allowing for the continued deferral of fees payable to FREIT Trustees, but not for the deferral of salaries payable to Executive Officers of FREIT; | ||
(c) | To provide for the issuance of share units payable in FREIT shares in respect of (i) deferred amounts of fees on a prospective basis; (ii) interest on fees deferred prior to November 1, 2014; and (iii) dividends payable in respect of share units allocated to participants in the Deferred Fee Plan as a result of the deferrals described in subparagraphs (c)(i) and (c)(ii) above. The number of share units will be determined by the closing price of FREIT shares on the date of the deferral. The number of share units will be converted into an equivalent number of FREIT shares upon distribution to the participant on a future date designated by the participant. | ||
Dividends_and_earnings_per_sha
Dividends and earnings per share | 12 Months Ended |
Oct. 31, 2014 | |
Dividends and earnings per share [Abstract] | |
Dividends and earnings per share | Note 14- Dividends and earnings per share: |
FREIT declared dividends of $8,276,000 ($1.20 per share), $10,830,000 ($1.56 per share) and $7,637,000 ($1.10 per share) to shareholders of record during Fiscal 2014, 2013 and 2012, respectively. | |
Basic earnings per share is calculated by dividing net income attributable to common equity by the weighted average number of shares outstanding during each period. 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 which would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options had been issued during the period, after utilizing the exercise proceeds to repurchase outstanding shares at the average market price during the period under the Treasury Stock method. | |
For the fiscal years ended October 31, 2013 and 2012, no options or other potentially diluted shares were outstanding. On September 4, 2014, a total of 246,000 non-qualified stock options were granted and outstanding at October 31, 2014. (See Note 12.) | |
For fiscal 2014, outstanding stock options were anti-dilutive, since the exercise price was higher than the average market price for FREIT shares during the period the options were outstanding. |
Segment_information
Segment information | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Segment information [Abstract] | |||||||||||||
Segment information | Note 15- Segment information: | ||||||||||||
ASC 280-10, "Disclosures about Segments of an Enterprise and Related Information", established standards for reporting financial information about operating segments in interim and annual financial reports and provides for a "management approach" in identifying the reportable segments. | |||||||||||||
FREIT has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires different operating strategies and management expertise. | |||||||||||||
The commercial segment is comprised of ten (10) properties during the fiscal years ended October 31, 2014, 2013 and 2012. The residential segment is comprised of seven (7) properties during the fiscal year ended October 31, 2014, inclusive of the property acquired in fiscal 2014, and six (6) properties during the fiscal years ended October 31, 2013 and 2012, exclusive of the residential properties sold in Fiscal 2013 and Fiscal 2012 which have been classified as discontinued operations. | |||||||||||||
The accounting policies of the segments are the same as those described in Note 1. | |||||||||||||
The chief operating decision-making group of FREIT's commercial segment, residential segment and corporate/other is comprised of the Board. | |||||||||||||
FREIT assesses and measures segment operating results based on net operating income ("NOI"). NOI is based on operating revenue and expenses directly associated with the operations of the real estate properties, but excludes: deferred rents (straight lining), depreciation, financing costs, amortization of acquired lease values and other items. NOI is not a measure of operating results or cash flows from operating activities as measured by accounting principles generally accepted in the United States of America, 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. | |||||||||||||
Continuing real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2014. Asset information is not reported since FREIT does not use this measure to assess performance. | |||||||||||||
Years Ended October 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In Thousands of Dollars) | |||||||||||||
Real estate rental revenue: | |||||||||||||
Commercial | $ | 22,424 | $ | 22,876 | $ | 23,383 | |||||||
Residential | 20,419 | 18,497 | 18,680 | ||||||||||
Totals | 42,843 | 41,373 | 42,063 | ||||||||||
Real estate operating expenses: | |||||||||||||
Commercial | 9,663 | 9,235 | 9,526 | ||||||||||
Residential | 9,757 | 8,892 | 8,442 | ||||||||||
Totals | 19,420 | 18,127 | 17,968 | ||||||||||
Net operating income: | |||||||||||||
Commercial | 12,761 | 13,641 | 13,857 | ||||||||||
Residential | 10,662 | 9,605 | 10,238 | ||||||||||
Totals | $ | 23,423 | $ | 23,246 | $ | 24,095 | |||||||
Recurring capital improvements- | |||||||||||||
residential | $ | (549 | ) | $ | (681 | ) | $ | (697 | ) | ||||
Reconciliation to consolidated net | |||||||||||||
income-common equity: | |||||||||||||
Segment NOI | $ | 23,423 | $ | 23,246 | $ | 24,095 | |||||||
Deferred rents - straight lining | (93 | ) | (12 | ) | 17 | ||||||||
Amortization of acquired above and below | |||||||||||||
market value leases | (21 | ) | (24 | ) | (2 | ) | |||||||
Net investment income | 184 | 191 | 173 | ||||||||||
General and administrative expenses | (1,396 | ) | (1,623 | ) | (1,624 | ) | |||||||
G-Mart lease termination expenses | (371 | ) | — | — | |||||||||
Acquisition costs-Regency | (648 | ) | — | — | |||||||||
Depreciation | (6,346 | ) | (6,233 | ) | (6,171 | ) | |||||||
Deferred project cost write-off, net of | |||||||||||||
income relating to early lease termination | — | — | (776 | ) | |||||||||
Financing costs | (11,309 | ) | (11,945 | ) | (11,704 | ) | |||||||
Income from continuing operations | 3,423 | 3,600 | 4,008 | ||||||||||
Income from discontinued operation | 7 | 797 | 460 | ||||||||||
Gain on sale of discontinued operation | 8,734 | 3,545 | 7,528 | (a) | |||||||||
Net income | 12,164 | 7,942 | 11,996 | ||||||||||
Net income attributable to | |||||||||||||
noncontrolling interests in subsidiaries | (507 | ) | (493 | ) | (645 | ) | |||||||
Net income attributable to common equity | $ | 11,657 | $ | 7,449 | $ | 11,351 | |||||||
(a) Represents gain of $9,493 net of federal and state tax of $1,965. |
Share_repurchases
Share repurchases | 12 Months Ended |
Oct. 31, 2014 | |
Share repurchases [Abstract] | |
Share repurchases | Note 16 – Share repurchases: |
On December 4, 2013, the Board authorized the repurchase of up to 24,400 FREIT shares. On December 17, 2013, FREIT repurchased 20,400 shares in a privately-negotiated transaction with an unaffiliated party for an aggregate purchase price of $357,000, or $17.50 per share. | |
On September 4, 2014, the Board authorized the repurchase of 100,572 FREIT shares held by the pension plan of Hekemian & Co., Inc., FREIT's managing agent, for an aggregate cash purchase of $1,855,553 or $18.45 per share, which was the closing price of FREIT shares on September 3, 2014. The repurchase was undertaken in connection with the termination of the pension plan. Mr. Robert S. Hekemian, Chairman and Chief Executive Officer of FREIT, and Mr. Robert S. Hekemian, Jr., a Trustee of FREIT, and members of their family are participants in the pension plan. |
Subsequent_events
Subsequent events | 3 Months Ended |
Oct. 31, 2014 | |
Subsequent events [Abstract] | |
Subsequent events | Note 17- Subsequent events: |
On December 29, 2014, FREIT Regency, LLC closed on a $16.2 million mortgage loan with Provident Bank. The new loan bears a floating interest rate equal to 125 basis points over the BBA LIBOR and the loan will mature on December 15, 2024. In order to minimize interest rate volatility during the term of the loan, FREIT Regency, LLC entered into an interest rate swap agreement that in effect, converted the floating interest rate to a fixed interest rate of 3.75% over the term of the loan. Proceeds from the loan will be used to pay-off the outstanding balance on FREIT's credit line, and the remainder of the proceeds will be available to fund future capital expenditures and for general corporate purposes. |
Selected_quarterly_financial_d
Selected quarterly financial data (unaudited) | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||
Selected quarterly financial data (unaudited) [Abstract] | |||||||||||||||||||||
Selected quarterly financial data (unaudited) | Note 18- Selected quarterly financial data (unaudited): | ||||||||||||||||||||
The following summary represents the results of operations for each quarter for the years ended October 31, 2014 and 2013 (in thousands, except per share amounts): | |||||||||||||||||||||
2014:00:00 | Quarter Ended | Year | |||||||||||||||||||
January 31, | April 30, | July 31, | October 31, | October 31, | |||||||||||||||||
Revenue | $ | 10,572 | $ | 10,632 | $ | 10,433 | $ | 10,793 | (c) | $ | 42,430 | ||||||||||
Expenses | 9,454 | 9,742 | 9,716 | (b) | 10,095 | (d) | 39,007 | ||||||||||||||
Income from continuing operations | 1,118 | 890 | 717 | 698 | 3,423 | ||||||||||||||||
Income from discontinued operations | 8,700 | (a) | 41 | — | — | 8,741 | |||||||||||||||
Net income | 9,818 | 931 | 717 | 698 | 12,164 | ||||||||||||||||
Net income attributable to noncontrolling interest in subsidiaries | (193 | ) | (98 | ) | (162 | ) | (54 | ) | (507 | ) | |||||||||||
Net income attributable to common equity | $ | 9,625 | $ | 833 | $ | 555 | $ | 644 | $ | 11,657 | |||||||||||
Basic & diluted earnings per share: | |||||||||||||||||||||
Continuing operations | $ | 0.13 | $ | 0.11 | $ | 0.08 | (b) | $ | 0.1 | (c) | $ | 0.42 | |||||||||
Discontinued operations | 1.26 | (a) | 0.01 | — | — | 1.27 | |||||||||||||||
Net income attributable to common equity | $ | 1.39 | $ | 0.12 | $ | 0.08 | $ | 0.1 | $ | 1.69 | |||||||||||
Dividends declared per share | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 1.2 | |||||||||||
(a) Represents gain on sale of discontinued operations of $8,734 | |||||||||||||||||||||
(b) Includes $648 in expenses related to Regency acquisition ($0.09 per share) | |||||||||||||||||||||
(c) Includes $298 in straight-line rent expense related to G-Mart lease termination ($0.04 per share) | |||||||||||||||||||||
(d) Includes $73 in expenses related to G-Mart lease termination ($0.01 per share) | |||||||||||||||||||||
2013:00:00 | Quarter Ended | Year | |||||||||||||||||||
January 31, | April 30, | July 31, | October 31, | October 31, | |||||||||||||||||
Revenue | $ | 10,387 | $ | 9,907 | $ | 10,384 | $ | 10,659 | $ | 41,337 | |||||||||||
Expenses | 9,417 | 9,403 | 9,339 | 9,578 | 37,737 | ||||||||||||||||
Income from continuing operations | 970 | 504 | 1,045 | 1,081 | 3,600 | ||||||||||||||||
Income from discontinued operations | 730 | (a) | 1,409 | (b) | 48 | 2,155 | (c) | 4,342 | |||||||||||||
Net income | 1,700 | 1,913 | 1,093 | 3,236 | 7,942 | ||||||||||||||||
Net income attributable to noncontrolling interest in subsidiaries | (229 | ) | (43 | ) | (182 | ) | (39 | ) | (493 | ) | |||||||||||
Net income attributable to common equity | $ | 1,471 | $ | 1,870 | $ | 911 | $ | 3,197 | $ | 7,449 | |||||||||||
Basic earnings per share: | |||||||||||||||||||||
Continuing operations | $ | 0.11 | $ | 0.07 | $ | 0.12 | $ | 0.15 | $ | 0.45 | |||||||||||
Discontinued operations | 0.1 | (a) | 0.2 | (b) | 0.01 | 0.31 | (c) | 0.62 | |||||||||||||
Net income attributable to common equity | $ | 0.21 | $ | 0.27 | $ | 0.13 | $ | 0.46 | $ | 1.07 | |||||||||||
Dividends declared per share | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.66 | $ | 1.56 | |||||||||||
(a) Includes $720 reversal of income tax provision ($0.10 per share) (See Note 11) | |||||||||||||||||||||
(b) Includes gain on sale of discontinued operations of $1,377 ($0.20 per share) | |||||||||||||||||||||
(c) Includes gain on sale of discontinued operations of $2,168 ($0.31 per share) | |||||||||||||||||||||
SCHEDULE_XI_REAL_ESTATE_AND_AC
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE XI – REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||||||||||||||||||||||||||||||||||||||||||||
31-Oct-14 | |||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | Column F | Column G | Column H | Column I | |||||||||||||||||||||||||||||||||||||||
Initial Cost | Costs Capitalized | Gross Amount at Which | |||||||||||||||||||||||||||||||||||||||||||||
to Company | Subsequent to Acquisition | Carried at Close of Period | |||||||||||||||||||||||||||||||||||||||||||||
Life on | |||||||||||||||||||||||||||||||||||||||||||||||
Buildings | Buildings | Which De- | |||||||||||||||||||||||||||||||||||||||||||||
Encum- | and | Improve- | Carrying | and | Accumulated | Date of | Date | preciation | |||||||||||||||||||||||||||||||||||||||
Description | brances | Land | Improvements | Land | ments | Costs | Land | Improvements | Total (1) | Depreciation | Construction | Acquired | is Computed | ||||||||||||||||||||||||||||||||||
Residential Properties: | |||||||||||||||||||||||||||||||||||||||||||||||
Hammel Gardens, Maywood, NJ | $ | 8,374 | 312 | 728 | — | 1,272 | 312 | 2,000 | 2,312 | 1,564 | 1949 | 1972 | 7-40 years | ||||||||||||||||||||||||||||||||||
Steuben Arms, River Edge, NJ | 11,037 | 364 | 1,773 | — | 1,573 | 364 | 3,346 | 3,710 | 2,768 | 1966 | 1975 | 7-40 years | |||||||||||||||||||||||||||||||||||
Berdan Court, Wayne, NJ | 18,686 | 250 | 2,206 | — | 4,221 | 250 | 6,427 | 6,677 | 5,024 | 1964 | 1965 | 7-40 years | |||||||||||||||||||||||||||||||||||
Westwood Hills, Westwood, NJ | 21,974 | 3,849 | 11,546 | — | 2,674 | 3,849 | 14,220 | 18,069 | 7,671 | 1965-70 | 1994 | 7-40 years | |||||||||||||||||||||||||||||||||||
Pierre Towers, Hackensack, NJ | 31,198 | 8,390 | 37,486 | 19 | 7,932 | 8,409 | 45,418 | 53,827 | 12,281 | 1970 | 2004 | 7-40 years | |||||||||||||||||||||||||||||||||||
Boulders - Rockaway, NJ | 18,030 | 1,683 | — | 3,335 | 16,274 | 5,018 | 16,274 | 21,292 | 4,212 | 2005-2006 | 1963/1964 | 7-40 years | |||||||||||||||||||||||||||||||||||
Regency Club - Middletown, NY | — | 2,833 | 17,792 | — | 85 | 2,833 | 17,877 | 20,710 | 149 | 2003 | 2014 | 7-40 years | |||||||||||||||||||||||||||||||||||
Retail Properties: | |||||||||||||||||||||||||||||||||||||||||||||||
Damascus Shopping Center, | |||||||||||||||||||||||||||||||||||||||||||||||
Damascus, MD | 19,326 | 2,950 | 6,987 | 6,296 | 17,425 | 9,246 | 24,412 | 33,658 | 4,014 | 1960's | 2003 | 15-39 years | |||||||||||||||||||||||||||||||||||
Franklin Crossing, Franklin Lakes, NJ | — | 29 | — | 3,382 | 7,999 | 3,411 | 7,999 | 11,410 | 3,756 | 1963/75/97 | 1966 | 10-50 years | |||||||||||||||||||||||||||||||||||
Glen Rock, NJ | — | 12 | 36 | — | 213 | 12 | 249 | 261 | 204 | 1940 | 1962 | 10-31.5 years | |||||||||||||||||||||||||||||||||||
Pathmark Super Center, | |||||||||||||||||||||||||||||||||||||||||||||||
Patchogue, NY | 5,376 | 2,128 | 8,818 | — | (21 | ) | 2,128 | 8,797 | 10,925 | 3,773 | 1997 | 1997 | 39 years | ||||||||||||||||||||||||||||||||||
Westridge Square S/C, Frederick, MD | 22,000 | 9,135 | 19,159 | (1 | ) | 4,196 | 9,134 | 23,355 | 32,489 | 15,292 | 1986 | 1992 | 15-31.5 years | ||||||||||||||||||||||||||||||||||
Westwood Plaza, Westwood, NJ | 21,884 | 6,889 | 6,416 | — | 2,487 | 6,889 | 8,903 | 15,792 | 7,417 | 1981 | 1988 | 15-31.5 years | |||||||||||||||||||||||||||||||||||
Preakness S/C, Wayne, NJ | 25,978 | 9,280 | 24,217 | — | 1,685 | 9,280 | 25,902 | 35,182 | 8,524 | 1955/89/00 | 2002 | 15-31.5 years | |||||||||||||||||||||||||||||||||||
The Rotunda, Baltimore, MD | 42,689 | 16,263 | 14,634 | 232 | 53,525 | 16,495 | 68,159 | 84,654 | 4,682 | 1920 | 2005 | 40 years | |||||||||||||||||||||||||||||||||||
Land Leased: | |||||||||||||||||||||||||||||||||||||||||||||||
Rockaway, NJ | — | 114 | — | 51 | — | 165 | — | 165 | — | 1963/1964 | |||||||||||||||||||||||||||||||||||||
Rochelle Park, NJ | — | 1,640 | 905 | — | — | 1,640 | 905 | 2,545 | 238 | 2007 | |||||||||||||||||||||||||||||||||||||
Vacant Land: | ` | ||||||||||||||||||||||||||||||||||||||||||||||
Franklin Lakes, NJ | — | 224 | — | (156 | ) | — | 68 | — | 68 | — | 1966/93 | ||||||||||||||||||||||||||||||||||||
Wayne, NJ | — | 286 | — | — | 286 | — | 286 | — | 2002 | ||||||||||||||||||||||||||||||||||||||
$ | 246,552 | $ | 66,631 | $ | 152,703 | $ | 13,158 | $ | 121,540 | $ | — | $ | 79,789 | $ | 274,243 | $ | 354,032 | $ | 81,569 | ||||||||||||||||||||||||||||
-1 | Total cost for each property is the same for Federal income tax purposes, with the exception of Pierre Towers, Preakness S/C, The Rotunda and the Regency Club whose cost for Federal income tax purposes is approximately $40.9 million, $35.4 million, $71.6 million and $12.6 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||||||||||||||||||||||||||||||||||||||||||||
(In Thousands of Dollars) | |||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Real Estate and Accumulated Depreciation: | |||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, Beginning of year | $ | 292,769 | $ | 283,703 | $ | 285,137 | |||||||||||||||||||||||||||||||||||||||||
Additions: | |||||||||||||||||||||||||||||||||||||||||||||||
Buildings and improvements | 62,340 | 9,903 | 4,267 | ||||||||||||||||||||||||||||||||||||||||||||
Deferred project cost write-off | — | — | (3,726 | ) | |||||||||||||||||||||||||||||||||||||||||||
Sale of discontinued operation | (1,077 | ) | (837 | ) | (1,975 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 354,032 | $ | 292,769 | $ | 283,703 | |||||||||||||||||||||||||||||||||||||||||
Accumulated depreciation: | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 75,226 | $ | 69,619 | $ | 64,976 | |||||||||||||||||||||||||||||||||||||||||
Additions - Charged to operating expenses | 6,346 | 6,244 | 6,215 | ||||||||||||||||||||||||||||||||||||||||||||
Sale of discontinued operation | — | (631 | ) | (1,561 | ) | ||||||||||||||||||||||||||||||||||||||||||
Adjustments/Deletions | (3 | ) | (6 | ) | (11 | ) | |||||||||||||||||||||||||||||||||||||||||
Balance, end of year | $ | 81,569 | $ | 75,226 | $ | 69,619 |
Organization_and_significant_a1
Organization and significant accounting policies (Policies) | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Organization and significant accounting policies [Abstract] | ||||||||||||||
Adopted and recently issued accounting standards: | Adopted and recently issued accounting standards: | |||||||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income. This update requires companies to present the effects on the line items of net income of significant reclassifications out of accumulated other comprehensive income if the amount being reclassified is required under U.S. generally accepted accounting principles to be reclassified in its entirety to net income in the same reporting period. ASU 2013-02 is effective prospectively for the Company for fiscal years, and interim periods within those years, beginning after December 15, 2012 with early adoption permitted. The Company has adopted this guidance effective with its 1st quarter ended January 31, 2014. The adoption of this guidance in the year ended October 31, 2014 did not have any material impact on our financial statements. | ||||||||||||||
In April 2014, the FASB issued ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”, which amends the definition of a discontinued operation. The new guidance requires discontinued operation treatment for disposals of a component or group of components that represent a strategic shift that has, or will have, a major impact on an entity's operations or financial results. The ASU is effective prospectively for all disposals that occur in annual periods (and interim periods therein) beginning on or after December 15, 2014, with early adoption permitted. | ||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”, which is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2016. Early adoption is not permitted. ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. FREIT is currently assessing the impact this new accounting guidance will have on its consolidated financial statements and footnote disclosures. | ||||||||||||||
Principles of consolidation: | Principles of consolidation: | |||||||||||||
The consolidated financial statements include the accounts of FREIT and the following subsidiaries in which FREIT has a controlling financial interest, including two LLCs in which FREIT is the managing member with a 40% ownership interest: | ||||||||||||||
Subsidiary | Owning | % | Year | |||||||||||
Entity | Ownership | Acquired/Organized | ||||||||||||
Westwood Hills, LLC | FREIT | 40 | % | 1994 | ||||||||||
S and A Commercial Associates Limited Partnership ("S and A") | FREIT | 65 | % | 2000 | ||||||||||
Wayne PSC, LLC | FREIT | 40 | % | 2002 | ||||||||||
Damascus Centre, LLC | FREIT | 70 | % | 2003 | ||||||||||
Pierre Towers, LLC | S and A | 100 | % | 2004 | ||||||||||
Grande Rotunda, LLC | FREIT | 60 | % | 2005 | ||||||||||
WestFREIT Corp | FREIT | 100 | % | 2007 | ||||||||||
WestFredic LLC | FREIT | 100 | % | 2007 | ||||||||||
Damascus Second, LLC | FREIT | 70 | % | 2008 | ||||||||||
FREIT Regency, LLC | FREIT | 100 | % | 2014 | ||||||||||
The consolidated financial statements include 100% of each subsidiary's assets, liabilities, operations and cash flows, with the interests not owned by FREIT reflected as "noncontrolling interests in subsidiaries”. All significant inter-company accounts and transactions have been eliminated in consolidation. | ||||||||||||||
Use of estimates: | Use of estimates: | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. | ||||||||||||||
Cash and cash equivalents: | Cash and cash equivalents: | |||||||||||||
Financial instruments that potentially subject FREIT to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits of $250,000. | ||||||||||||||
Real estate development costs: | Real estate development costs: | |||||||||||||
It is FREIT's policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT ceases capitalization of these costs, when the project or portion thereof becomes operational, or when construction has been postponed. Capitalization of these costs will recommence once construction on the project resumes. | ||||||||||||||
Depreciation: | Depreciation: | |||||||||||||
Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. | ||||||||||||||
Impairment of long-lived assets: | Impairment of long-lived assets: | |||||||||||||
Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. For the fiscal years ended October 31, 2014, 2013 and 2012, there were no impairments of long-lived assets. | ||||||||||||||
Deferred charges: | Deferred charges: | |||||||||||||
Deferred charges consist of mortgage costs and leasing commissions. Deferred mortgage costs are amortized on the straight-line method by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $359,000, $370,000 and $368,000 in 2014, 2013 and 2012, respectively. Deferred leasing commissions are amortized on the straight-line method over the terms of the applicable leases. | ||||||||||||||
Revenue recognition: | Revenue recognition: | |||||||||||||
Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT and commercial tenants generally provide for additional rentals and reimbursements based on such factors as percentage of tenants' sales in excess of specified volumes, increases in real estate taxes, Consumer Price Indices and common area maintenance charges. These additional rentals are generally included in income when reported to FREIT, when earned, or ratably over the appropriate period. | ||||||||||||||
Interest rate swap contract: | Interest rate swap contract: | |||||||||||||
FREIT utilizes derivative financial instruments to reduce interest rate risk. FREIT does not hold or issue derivative financial instruments for trading purposes. FREIT recognizes all derivatives as either assets or liabilities in the consolidated balance sheet and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as cash flow hedges, are reported in other comprehensive income (see Note 6). | ||||||||||||||
Advertising: | Advertising: | |||||||||||||
FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $133,000, $93,000 and $127,000 in 2014, 2013 and 2012, respectively. | ||||||||||||||
Stock-based compensation: | Stock-based compensation: | |||||||||||||
FREIT has a stock-based compensation plan that was approved by FREIT's Board of Trustees (“Board”), and ratified by FREIT's shareholders. Stock based awards under the plan to employees are accounted for based on their grant-date fair value (see Note 12). | ||||||||||||||
Stock-based awards to nonemployees are accounted for based on the fair value of the equity instruments on the vesting date. | ||||||||||||||
Acquired over market and below market value leases and in-place leases | Acquired Over Market and Below Market Value Leases and In-Place Leases: | |||||||||||||
Capitalized above-market lease values are being amortized as a reduction of base rental revenue over the remaining term of the leases, and the capitalized below-market lease values are being amortized as an increase to base rental revenue over the remaining terms of the leases, including renewal options. The value ascribed to leases in place is being amortized over the weighted average remaining lease terms. |
Organization_and_significant_a2
Organization and significant accounting policies (Tables) | 12 Months Ended | |||||||||||||
Oct. 31, 2014 | ||||||||||||||
Organization and significant accounting policies [Abstract] | ||||||||||||||
Schedule of subsidiaries in which FREIT has a controlling financial interest | Subsidiary | Owning | % | Year | ||||||||||
Entity | Ownership | Acquired/Organized | ||||||||||||
Westwood Hills, LLC | FREIT | 40 | % | 1994 | ||||||||||
S and A Commercial Associates Limited Partnership ("S and A") | FREIT | 65 | % | 2000 | ||||||||||
Wayne PSC, LLC | FREIT | 40 | % | 2002 | ||||||||||
Damascus Centre, LLC | FREIT | 70 | % | 2003 | ||||||||||
Pierre Towers, LLC | S and A | 100 | % | 2004 | ||||||||||
Grande Rotunda, LLC | FREIT | 60 | % | 2005 | ||||||||||
WestFREIT Corp | FREIT | 100 | % | 2007 | ||||||||||
WestFredic LLC | FREIT | 100 | % | 2007 | ||||||||||
Damascus Second, LLC | FREIT | 70 | % | 2008 | ||||||||||
FREIT Regency, LLC | FREIT | 100 | % | 2014 |
Property_acquisition_Tables
Property acquisition (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Property acquisition [Abstract] | |||||||||||||
Schedule of unaudited pro forma information | Years Ended October 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In Thousands) | |||||||||||||
Revenues | $ | 44,016 | $ | 43,672 | $ | 47,213 | |||||||
Net expenses | 40,033 | 39,935 | 42,942 | ||||||||||
Income from continuing operations | 3,983 | 3,737 | 4,271 | ||||||||||
Income from discontinued operations | 7 | 797 | 460 | ||||||||||
Gain on sale of discontinued operation | — | 3,545 | 7,528 | ||||||||||
Net income | 3,990 | 8,079 | 12,259 | ||||||||||
Net income attributable to noncontrolling interest in subsidiaries | (507 | ) | (493 | ) | (645 | ) | |||||||
Net income attributable to common equity | $ | 3,483 | $ | 7,586 | $ | 11,614 | |||||||
Earnings per share - basic and diluted: | |||||||||||||
Continuing operations | $ | 0.5 | $ | 0.47 | $ | 0.52 | |||||||
Discontinued operations | 0 | 0.62 | 1.15 | ||||||||||
Net income attributable to common equity | $ | 0.5 | $ | 1.09 | $ | 1.67 | |||||||
Weighted average shares outstanding - basic and diluted | 6,908 | 6,942 | 6,942 |
Real_estate_Tables
Real estate (Tables) | 12 Months Ended | ||||||||||
Oct. 31, 2014 | |||||||||||
Real estate [Abstract] | |||||||||||
Schedule of real estate and equipment | Range of | ||||||||||
Estimated | October 31, | ||||||||||
Useful Lives | 2014 | 2013 | |||||||||
(In Thousands of Dollars) | |||||||||||
Land | $ | 79,435 | $ | 76,602 | |||||||
Unimproved land | 354 | 883 | |||||||||
Apartment buildings | 7-40 years | 101,968 | 81,972 | ||||||||
Commercial buildings/shopping centers | 15-50 years | 119,027 | 118,253 | ||||||||
Equipment/Furniture | 3-15 years | 3,102 | 2,967 | ||||||||
303,886 | 280,677 | ||||||||||
Less accumulated depreciation | 81,569 | 75,226 | |||||||||
Totals | $ | 222,317 | $ | 205,451 |
Mortgages_notes_payable_and_cr1
Mortgages, notes payable and credit line (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Mortgages, notes payable and credit line [Abstract] | |||||||||
Schedule of debt | |||||||||
October 31, | |||||||||
2014 | 2013 | ||||||||
(In Thousands of Dollars) | |||||||||
Frederick, MD (A) | $ | 22,000 | $ | 22,000 | |||||
Rockaway, NJ (B) | 18,030 | 18,440 | |||||||
Westwood, NJ (C) | 21,884 | 22,388 | |||||||
Patchogue, NY (D) | 5,376 | 5,503 | |||||||
Wayne, NJ (E) | 18,686 | 18,976 | |||||||
River Edge, NJ (F): | |||||||||
First mortgage | — | 3,952 | |||||||
Second mortgage | — | 1,494 | |||||||
River Edge, NJ (G) | 11,037 | — | |||||||
Maywood, NJ (H): | |||||||||
First mortgage | — | 2,868 | |||||||
Second mortgage | — | 1,060 | |||||||
Maywood, NJ (I) | 8,374 | — | |||||||
Westwood, NJ (J) | 21,974 | 22,383 | |||||||
Wayne, NJ (K) | 25,978 | 26,863 | |||||||
Hackensack, NJ (L) | 31,198 | 31,797 | |||||||
Damascus, MD (M) | 19,326 | 19,699 | |||||||
Total fixed rate mortgage loans | 203,863 | 197,423 | |||||||
Baltimore, MD (N) | 42,689 | — | |||||||
Line of credit - Provident Bank (O) | 5,000 | 2,000 | |||||||
Total mortgages, notes payable and credit line | $ | 251,552 | $ | 199,423 | |||||
(A) | Payable in monthly installments of interest only computed over the actual number of days in the elapsed monthly interest period at the rate of 5.55% through May 2017 at which time the outstanding balance is due. The mortgage is secured by a retail building in Frederick, MD having a net book value of approximately $17,197,000 as of October 31, 2014. | ||||||||
(B) | Payable in monthly installments of $115,850 including interest at 5.37% through February 2022 at which time the outstanding balance is due. The mortgage is secured by a residential building in Rockaway, NJ having a net book value of approximately $17,080,000 as of October 31, 2014. | ||||||||
(C) | On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8.0 million, with a new mortgage loan in the amount of $22,750,000, which is payable in monthly installments of $129,702 including interest at 4.75% through January 2023 at which time the outstanding balance is due. The new mortgage is secured by a retail building in Westwood, NJ having a net book value of approximately $8,375,000 as of October 31, 2014. | ||||||||
(D) | The loan, modified effective January 31, 2013, is payable in monthly installments of $31,046 including interest at 4.5%, through March 2018 at which time the outstanding balance is due. Under the terms of the mortgage loan agreement, FREIT can request, during the term of the loan, additional fundings that will bring the outstanding principal balance up to 75% of loan-to-value (percentage of mortgage loan to total appraised value of property securing the loan). The mortgage is secured by a retail building in Patchogue, NY having a net book value of approximately $7,152,000 as of October 31, 2014. | ||||||||
(E) | Payable in monthly installments of $121,100 including interest at 6.09%, through September 1, 2019 at which time the outstanding balance is due. The mortgage is secured by an apartment building in Wayne, NJ having a net book value of approximately $1,653,000 as of October 31, 2014. | ||||||||
(F) | The first mortgage was payable in monthly installments of $34,862 including interest at 6.75% through December 2013 at which time the outstanding balance was due. The second mortgage is payable in monthly installments of $12,318 including interest at 5.53% through December 2013 at which time the outstanding balance was due (see G). | ||||||||
(G) | On November 19, 2013, FREIT refinanced these mortgage loans, which were scheduled to mature on December 1, 2013. The amount of the new loan is $11,200,000 at a fixed interest rate of 4.54%, with a scheduled maturity of December 1, 2023. The mortgages are secured by an apartment building in River Edge, NJ having a net book value of approximately $942,000 as of October 31, 2014. | ||||||||
(H) | The first mortgage was payable in monthly installments of $25,295 including interest at 6.75% through December 2013 at which time the outstanding balance was due. The second mortgage is payable in monthly installments of $8,739 including interest at 5.53% through December 2013 at which time the outstanding balance was due (see I). | ||||||||
(I) | On November 19, 2013, FREIT refinanced these mortgage loans, which were scheduled to mature on December 1, 2013. The amount of the new loan is $8,500,000 at a fixed interest rate of 4.54%, with a scheduled maturity of December 1, 2023. The mortgages are secured by an apartment building in Maywood, NJ having a net book value of approximately $748,000 as of October 31, 2014. | ||||||||
(J) | Payable in monthly installments of $120,752 including interest of 4.62%, through November 1, 2020, at which time the outstanding balance is due. The mortgage is secured by an apartment building in Westwood, NJ having a net book value of approximately $10,398,000 as of October 31, 2014. | ||||||||
(K) | Payable in monthly installments of $206,960 including interest of 6.04% until June 2016 at which time the unpaid balance is due. The mortgage is secured by a shopping center in Wayne, NJ having a net book value of approximately $26,945,000 as of October 31, 2014. | ||||||||
(L) | Payable in monthly installments of $191,197 including interest of 5.38% until May 2019 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Hackensack, NJ having a net book value of approximately $41,546,000 as of October 31, 2014. | ||||||||
(M) | On December 26, 2012, Damascus Centre, LLC refinanced its $15 million construction loan with long-term financing provided by People's United Bank. The amount of the new loan is $25 million, of which $20 million has been drawn as of October 31, 2014. The balance, up to an additional $5 million, will be available as a one-time draw over the 36 month period ending December 26, 2015, and the amount available will depend on future leasing at the shopping center. The new loan bears a floating interest rate equal to 210 basis points over the BBA LIBOR and the loan will mature on January 3, 2023. In order to minimize interest rate volatility during the term of the loan, Damascus Centre, LLC entered into an interest rate swap agreement that in effect, converted the floating interest rate to a fixed interest rate of 3.81% over the term of the loan (see Note 6 for additional information relating to the interest rate swap). The shopping center securing the loan has a net book value of approximately $29,644,000 as of October 31, 2014. | ||||||||
(N) | On February 1, 2010, a principal payment of $3 million was made reducing the original loan amount of $22.5 million to $19.5 million and the due date was extended until February 1, 2013. As part of the terms of the loan extension agreement, the loan was further collateralized by a first mortgage lien and the assignment of the ground lease on FREIT's Rochelle Park, NJ land parcel. Under the restructured terms, the interest rate is now 350 basis points above the BBA LIBOR with a floor of 4%, and monthly principal payments of $10,000 are required. An additional principal payment of $110,000 was required on February 1, 2012 in order to reduce the loan to achieve the stipulated debt service coverage ratio. Under the agreement with the equity owners of Grande Rotunda, LLC, FREIT would be responsible for 60% of any cash required by Grande Rotunda, LLC, and 40% would be the responsibility of the minority interest. The due date of the loan was further extended to May 1, 2013 from February 1, 2013. While the bank agreed to an additional extension of ninety-days (90) from May 1, 2013, FREIT elected to purchase the Rotunda loan from the bank and have all the bank's rights assigned to FREIT. The purchase of this loan by FREIT was completed on May 28, 2013. FREIT subsequently sold this loan to Wells Fargo Bank, the lender providing the construction financing for the expansion of the Rotunda project. On December 9, 2013, Grande Rotunda, LLC closed with Wells Fargo Bank on a construction loan of up to $120 million to be used for the purpose of funding the major redevelopment and expansion project in progress at the Rotunda. The construction loan is for a term of four (4) years, with one 12-month extension, at a rate of 225 basis points over the monthly LIBOR. Interest on the loan is accrued and applied to principal. Such interest will be due and payable at maturity. The loan is secured by the Rotunda property in Baltimore, MD, which has a net book value of approximately $79,268,000 as of October 31, 2014, including $48.8 million classified as construction in progress. As of October 31, 2014, $42.7 million was drawn on the construction loan with Wells Fargo Bank, of which $19 million was used to pay off the loan from FREIT, and $23.7 million was used towards the construction at the Rotunda. | ||||||||
(O) | Credit Line: FREIT has a line of credit provided by the Provident Bank in the amount of $13 million. The line of credit is for a two year term ending on November 1, 2016, but can be cancelled by the bank, at its will, within 60 days before or after each anniversary date. The credit line will automatically be extended at the termination date of the current term and each subsequent term for an additional period of 24 months, provided there is no default and the credit line has not been cancelled. Draws against the credit line can be used for general corporate purposes, for property acquisitions, construction activities, and letters of credit. Draws against the credit line are secured by mortgages on FREIT's Franklin Crossing Shopping Center, in Franklin Lakes, NJ, and retail space in Glen Rock, NJ. Interest rates on draws will be set at the time of each draw for 30, 60, or 90-day periods, based on our choice of the prime rate or at 175 basis points over the 30, 60, or 90-day LIBOR rates at the time of the draws. The interest rate on the line of credit has a floor of 3.5%. The Palisades Manor and the Grandview Apartment properties had been part of the collateral for the line of credit prior to FREIT's sales of these properties in April 2013 and August 2013, respectively. Provident Bank released these properties as collateral for the credit line in connection with these dispositions, and as a result, the credit line was reduced from $18 million to approximately $13 million as of July 2013. As of October 31, 2014, approximately $8 million was available under the line of credit, and $5 million was outstanding. | ||||||||
Schedule of estimated fair value and carrying value of long-term debt | October 31, | October 31, | |||||||
($ in Millions) | 2014 | 2013 | |||||||
Fair Value | $ | 256 | $ | 201.9 | |||||
Carrying Value | $ | 251.6 | $ | 199.4 | |||||
Schedule of principal amounts of long-term debt | Year Ending October 31, | Amount | |||||||
2015 | $ | 4,101 | |||||||
2016 | $ | 28,434 | |||||||
2017 | $ | 25,494 | |||||||
2018 | $ | 8,489 | |||||||
2019 | $ | 91,102 | (a) | ||||||
(a) | Includes $42,689 relating to the Rotunda construction loan, due December 2018. (See Note 5(N).) |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||
Oct. 31, 2014 | |||||
Commitments and contingencies [Abstract] | |||||
Schedule of minimum rental income to be received from non-cancelable operating leases | Year Ending October | Amount | |||
31, | |||||
2015 | $ | 16,667 | |||
2016 | 15,398 | ||||
2017 | 12,276 | ||||
2018 | 10,258 | ||||
2019 | 8,861 | ||||
Thereafter | 56,270 | ||||
Total | $ | 119,730 |
Equity_incentive_plan_Tables
Equity incentive plan (Tables) | 12 Months Ended | ||||||||
Oct. 31, 2014 | |||||||||
Equity incentive plan [Abstract] | |||||||||
Schedule of Stock Option Activity | Year Ended October 31, | ||||||||
2014 | |||||||||
No. of Options | Exercise | ||||||||
Outstanding | Price | ||||||||
Options outstanding beginning of period | — | — | |||||||
Options granted during period | 246,000 | $ | 18.45 | ||||||
Options outstanding end of period | 246,000 | $ | 18.45 | ||||||
Options expected to vest | — | ||||||||
Options exercisable at end of period | — |
Segment_information_Tables
Segment information (Tables) | 12 Months Ended | ||||||||||||
Oct. 31, 2014 | |||||||||||||
Segment information [Abstract] | |||||||||||||
Schedule of segment and related information | Years Ended October 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In Thousands of Dollars) | |||||||||||||
Real estate rental revenue: | |||||||||||||
Commercial | $ | 22,424 | $ | 22,876 | $ | 23,383 | |||||||
Residential | 20,419 | 18,497 | 18,680 | ||||||||||
Totals | 42,843 | 41,373 | 42,063 | ||||||||||
Real estate operating expenses: | |||||||||||||
Commercial | 9,663 | 9,235 | 9,526 | ||||||||||
Residential | 9,757 | 8,892 | 8,442 | ||||||||||
Totals | 19,420 | 18,127 | 17,968 | ||||||||||
Net operating income: | |||||||||||||
Commercial | 12,761 | 13,641 | 13,857 | ||||||||||
Residential | 10,662 | 9,605 | 10,238 | ||||||||||
Totals | $ | 23,423 | $ | 23,246 | $ | 24,095 | |||||||
Recurring capital improvements- | |||||||||||||
residential | $ | (549 | ) | $ | (681 | ) | $ | (697 | ) | ||||
Reconciliation to consolidated net | |||||||||||||
income-common equity: | |||||||||||||
Segment NOI | $ | 23,423 | $ | 23,246 | $ | 24,095 | |||||||
Deferred rents - straight lining | (93 | ) | (12 | ) | 17 | ||||||||
Amortization of acquired above and below | |||||||||||||
market value leases | (21 | ) | (24 | ) | (2 | ) | |||||||
Net investment income | 184 | 191 | 173 | ||||||||||
General and administrative expenses | (1,396 | ) | (1,623 | ) | (1,624 | ) | |||||||
G-Mart lease termination expenses | (371 | ) | — | — | |||||||||
Acquisition costs-Regency | (648 | ) | — | — | |||||||||
Depreciation | (6,346 | ) | (6,233 | ) | (6,171 | ) | |||||||
Deferred project cost write-off, net of | |||||||||||||
income relating to early lease termination | — | — | (776 | ) | |||||||||
Financing costs | (11,309 | ) | (11,945 | ) | (11,704 | ) | |||||||
Income from continuing operations | 3,423 | 3,600 | 4,008 | ||||||||||
Income from discontinued operation | 7 | 797 | 460 | ||||||||||
Gain on sale of discontinued operation | 8,734 | 3,545 | 7,528 | (a) | |||||||||
Net income | 12,164 | 7,942 | 11,996 | ||||||||||
Net income attributable to | |||||||||||||
noncontrolling interests in subsidiaries | (507 | ) | (493 | ) | (645 | ) | |||||||
Net income attributable to common equity | $ | 11,657 | $ | 7,449 | $ | 11,351 | |||||||
(a) Represents gain of $9,493 net of federal and state tax of $1,965. |
Selected_quarterly_financial_d1
Selected quarterly financial data (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Oct. 31, 2014 | |||||||||||||||||||||
Selected quarterly financial data (unaudited) [Abstract] | |||||||||||||||||||||
Schedule of quarterly results of operation | |||||||||||||||||||||
2014:00:00 | Quarter Ended | Year | |||||||||||||||||||
January 31, | April 30, | July 31, | October 31, | October 31, | |||||||||||||||||
Revenue | $ | 10,572 | $ | 10,632 | $ | 10,433 | $ | 10,793 | (c) | $ | 42,430 | ||||||||||
Expenses | 9,454 | 9,742 | 9,716 | (b) | 10,095 | (d) | 39,007 | ||||||||||||||
Income from continuing operations | 1,118 | 890 | 717 | 698 | 3,423 | ||||||||||||||||
Income from discontinued operations | 8,700 | (a) | 41 | — | — | 8,741 | |||||||||||||||
Net income | 9,818 | 931 | 717 | 698 | 12,164 | ||||||||||||||||
Net income attributable to noncontrolling interest in subsidiaries | (193 | ) | (98 | ) | (162 | ) | (54 | ) | (507 | ) | |||||||||||
Net income attributable to common equity | $ | 9,625 | $ | 833 | $ | 555 | $ | 644 | $ | 11,657 | |||||||||||
Basic & diluted earnings per share: | |||||||||||||||||||||
Continuing operations | $ | 0.13 | $ | 0.11 | $ | 0.08 | (b) | $ | 0.1 | (c) | $ | 0.42 | |||||||||
Discontinued operations | 1.26 | (a) | 0.01 | — | — | 1.27 | |||||||||||||||
Net income attributable to common equity | $ | 1.39 | $ | 0.12 | $ | 0.08 | $ | 0.1 | $ | 1.69 | |||||||||||
Dividends declared per share | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 1.2 | |||||||||||
(a) Represents gain on sale of discontinued operations of $8,734 | |||||||||||||||||||||
(b) Includes $648 in expenses related to Regency acquisition ($0.09 per share) | |||||||||||||||||||||
(c) Includes $298 in straight-line rent expense related to G-Mart lease termination ($0.04 per share) | |||||||||||||||||||||
(d) Includes $73 in expenses related to G-Mart lease termination ($0.01 per share) | |||||||||||||||||||||
2013:00:00 | Quarter Ended | Year | |||||||||||||||||||
January 31, | April 30, | July 31, | October 31, | October 31, | |||||||||||||||||
Revenue | $ | 10,387 | $ | 9,907 | $ | 10,384 | $ | 10,659 | $ | 41,337 | |||||||||||
Expenses | 9,417 | 9,403 | 9,339 | 9,578 | 37,737 | ||||||||||||||||
Income from continuing operations | 970 | 504 | 1,045 | 1,081 | 3,600 | ||||||||||||||||
Income from discontinued operations | 730 | (a) | 1,409 | (b) | 48 | 2,155 | (c) | 4,342 | |||||||||||||
Net income | 1,700 | 1,913 | 1,093 | 3,236 | 7,942 | ||||||||||||||||
Net income attributable to noncontrolling interest in subsidiaries | (229 | ) | (43 | ) | (182 | ) | (39 | ) | (493 | ) | |||||||||||
Net income attributable to common equity | $ | 1,471 | $ | 1,870 | $ | 911 | $ | 3,197 | $ | 7,449 | |||||||||||
Basic earnings per share: | |||||||||||||||||||||
Continuing operations | $ | 0.11 | $ | 0.07 | $ | 0.12 | $ | 0.15 | $ | 0.45 | |||||||||||
Discontinued operations | 0.1 | (a) | 0.2 | (b) | 0.01 | 0.31 | (c) | 0.62 | |||||||||||||
Net income attributable to common equity | $ | 0.21 | $ | 0.27 | $ | 0.13 | $ | 0.46 | $ | 1.07 | |||||||||||
Dividends declared per share | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.66 | $ | 1.56 | |||||||||||
(a) Includes $720 reversal of income tax provision ($0.10 per share) (See Note 11) | |||||||||||||||||||||
(b) Includes gain on sale of discontinued operations of $1,377 ($0.20 per share) | |||||||||||||||||||||
(c) Includes gain on sale of discontinued operations of $2,168 ($0.31 per share) |
Organization_and_significant_a3
Organization and significant accounting policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Organization and significant accounting policies [Abstract] | |||
Advertising costs | $133,000 | $93,000 | $127,000 |
Amortization of mortgage costs and leasing commissions | $359,000 | $370,000 | $368,000 |
Organization_and_significant_a4
Organization and significant accounting policies (Schedule of Subsidiaries) Details) | 12 Months Ended |
Oct. 31, 2014 | |
Westwood Hills, LLC [Member] | |
% Ownership | 40.00% |
Year Acquired/Organized | 1994 |
S and A Commercial Associates Limited Partnership ("S and A") [Member] | |
% Ownership | 65.00% |
Year Acquired/Organized | 2000 |
Wayne PSC, LLC [Member] | |
% Ownership | 40.00% |
Year Acquired/Organized | 2002 |
Damascus Centre, LLC [Member] | |
% Ownership | 70.00% |
Year Acquired/Organized | 2003 |
Pierre Towers, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2004 |
Grande Rotunda, LLC [Member] | |
% Ownership | 60.00% |
Year Acquired/Organized | 2005 |
WestFREIT Corp [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2007 |
WestFredic LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2007 |
Damascus Second, LLC [Member] | |
% Ownership | 70.00% |
Year Acquired/Organized | 2008 |
FREIT Regency, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2014 |
Discontinued_operations_Detail
Discontinued operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Dec. 20, 2013 | Apr. 26, 2013 | Aug. 13, 2013 | Aug. 29, 2012 | Jan. 31, 2013 | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Capital gain on sale of apartments | $3,500,000 | $9,493,000 | ||||||||
Tax on sale of discontinued operations | 1,965,000 | |||||||||
Income tax adjustment on gain on sale of discontinued operation | -720,000 | -720,000 | [1] | |||||||
Revenue from discontinued operations | 1,000 | 317,000 | 1,299,000 | |||||||
South Brunswick property [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Sale of property | 11,000,000 | |||||||||
Capital gain on sale of apartments | 8,700,000 | |||||||||
Deferred gain on sale | 8,700,000 | |||||||||
Net proceeds on sale of business | 9,800,000 | |||||||||
Palisades Manor Apartments [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Sale of property | 1,600,000 | |||||||||
Capital gain on sale of apartments | 1,400,000 | |||||||||
Grandview Apartments [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Sale of property | 2,500,000 | |||||||||
Capital gain on sale of apartments | 2,200,000 | |||||||||
Heights Manor Apartments [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Capital gain on sale of apartments | 9,500,000 | 9,500,000 | ||||||||
Distributions to shareholders | 5,000,000 | 5,000,000 | 1,400,000 | |||||||
Undistributed gain | 4,500,000 | |||||||||
Income tax adjustment on gain on sale of discontinued operation | -720,000 | |||||||||
Heights Manor Apartments [Member] | Federal [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Tax on sale of discontinued operations | 1,500,000 | |||||||||
Heights Manor Apartments [Member] | State [Member] | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Tax on sale of discontinued operations | $400,000 | |||||||||
[1] | Income tax adjustment relating to fiscal 2012 gain on sale of discontinued operation. |
Property_acquisition_Narrative
Property acquisition (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 4 Months Ended | ||||||
Jul. 31, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Apr. 30, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Jun. 18, 2014 | Jun. 30, 2014 | Oct. 31, 2014 | Dec. 29, 2014 | |
Business Acquisition [Line Items] | |||||||||||
Regency acquisition costs | $648,000 | $648,000 | |||||||||
Net operating income | 15,196,000 | 15,354,000 | 15,539,000 | ||||||||
Gain on sale of discontinued operations (net of tax of $1,965 in fiscal 2012) | 8,734,000 | 2,168,000 | 1,377,000 | 8,734,000 | 3,545,000 | 7,528,000 | |||||
Mortgages [Member] | Provident Bank Mortgage [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Loan amount | 16,200,000 | ||||||||||
South Brunswick property [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Deferred gain utilized in acquisition | 9,800,000 | ||||||||||
Gain on sale of discontinued operations (net of tax of $1,965 in fiscal 2012) | 8,700,000 | ||||||||||
Regency Club Acquisition [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of units acquired | 132 | ||||||||||
Number of buildings acquired | 11 | ||||||||||
Acquisition price | 20,625,000 | ||||||||||
Regency acquisition costs | 648,000 | ||||||||||
Remaining balance in acquisition, after net proceeds from sale | 11,500,000 | ||||||||||
Cash used for acquisition | 10,000,000 | ||||||||||
Acquisition price allocation to buildings | 17,800,000 | ||||||||||
Percentage allocation to buildings | 86.30% | ||||||||||
Acquisition price allocation to land | 2,800,000 | ||||||||||
Percentage allocation to land | 13.70% | ||||||||||
Total revenue | 808,000 | ||||||||||
Net operating income | 314,000 | ||||||||||
Net income | $165,000 | ||||||||||
Estimated useful life | 40 years |
Property_acquisition_Schedule_
Property acquisition (Schedule of Results of Operations) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Schedule of pro-forma information | |||
Revenues | $44,016 | $43,672 | $47,213 |
Net expenses | 40,033 | 39,935 | 42,942 |
Income from continuing operations | 3,983 | 3,737 | 4,271 |
Income from discontinued operations | 7 | 797 | 460 |
Gain on sale of discontinued operations | 3,545 | 7,528 | |
Net income | 3,990 | 8,079 | 12,259 |
Net income attributable to noncontrolling interests in subsidiaries | -507 | -493 | -645 |
Net income attributable to common equity | $3,483 | $7,586 | $11,614 |
Earnings per share - basic and diluted: | |||
Continuing operations | $0.50 | $0.47 | $0.52 |
Discontinued operations | $0 | $0.62 | $1.15 |
Net income attributable to common equity | $0.50 | $1.09 | $1.67 |
Weighted average shares outstanding - basic and diluted | 6,908 | 6,942 | 6,942 |
Real_estate_Details
Real estate (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Oct. 31, 2014 | Oct. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Land | 79,435 | $76,602 |
Unimproved land | 354 | 883 |
Equipment/Furniture | 3,102 | 2,967 |
Real estate and equipment | 303,886 | 280,677 |
Less accumulated depreciation | 81,569 | 75,226 |
Totals | 222,317 | 205,451 |
Apartment Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental properties | 101,968 | 81,972 |
Commercial Buildings/Shopping Centers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental properties | 119,027 | $118,253 |
Minimum [Member] | Apartment Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Minimum [Member] | Commercial Buildings/Shopping Centers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Maximum [Member] | Apartment Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Maximum [Member] | Commercial Buildings/Shopping Centers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 50 years | |
Equipment/Furniture [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Equipment/Furniture [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years |
Mortgages_notes_payable_and_cr2
Mortgages, notes payable and credit line (Schedule of Debt) (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Total mortgages, notes payable and credit line | $251,552 | $199,423 |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 203,863 | 197,423 |
Mortgages [Member] | Frederick, MD [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 22,000 | 22,000 |
Mortgages [Member] | Rockaway, NJ Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 18,030 | 18,440 |
Mortgages [Member] | Westwood, NJ #2 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 21,884 | 22,388 |
Mortgages [Member] | Patchogue, NY [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 5,376 | 5,503 |
Mortgages [Member] | Wayne, NJ Mortgage 1 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 18,686 | 18,976 |
Mortgages [Member] | River Edge, NJ First Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 3,952 | |
Mortgages [Member] | River Edge, NJ Second Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 1,494 | |
Mortgages [Member] | River Edge, NJ Refinanced Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 11,037 | |
Mortgages [Member] | Maywood, NJ First Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 2,868 | |
Mortgages [Member] | Maywood, NJ Second Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 1,060 | |
Mortgages [Member] | Refinanced Maywood, NJ Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 8,374 | |
Mortgages [Member] | Westwood, NJ #3 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 21,974 | 22,383 |
Mortgages [Member] | Second Wayne, NJ Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 25,978 | 26,863 |
Mortgages [Member] | Hackensack, NJ [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 31,198 | 31,797 |
Mortgages [Member] | Damascus, MD [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 19,326 | 19,699 |
Notes Payable, Other Payables [Member] | Baltimore, MD [Member] | ||
Debt Instrument [Line Items] | ||
Total mortgages, notes payable and credit line | 42,689 | |
Provident Bank [Member] | ||
Debt Instrument [Line Items] | ||
Total mortgages, notes payable and credit line | $5,000 | $2,000 |
Mortgages_notes_payable_and_cr3
Mortgages, notes payable and credit line (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Jan. 14, 2013 | Feb. 01, 2010 | Feb. 01, 2012 | Jan. 30, 2010 | ||||
Debt Instrument [Line Items] | ||||||||||
Repayment of mortgages and construction loan | $13,260,000 | $45,747,000 | $6,337,000 | |||||||
Construction and pre-development costs | 33,579,000 | [1] | 4,732,000 | [2] | 3,999,000 | [3] | ||||
Amount due within five years | 91,102,000 | |||||||||
Mortgages [Member] | Frederick, MD [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 5.55% | |||||||||
Debt Instrument, Collateral Amount | 17,197,000 | |||||||||
Mortgages [Member] | Rockaway, NJ Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 5.37% | |||||||||
Debt Instrument, Periodic Payment | 115,850 | |||||||||
Debt Instrument, Collateral Amount | 17,080,000 | |||||||||
Mortgages [Member] | Westwood, NJ#1 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Refinanced loan amount | 8,000,000 | |||||||||
Mortgages [Member] | Westwood, NJ #2 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 4.75% | |||||||||
Debt Instrument, Periodic Payment | 129,702 | |||||||||
Debt Instrument, Collateral Amount | 8,375,000 | |||||||||
Loan amount | 22,750,000 | |||||||||
Mortgages [Member] | Patchogue, NY [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 4.50% | |||||||||
Debt Instrument, Periodic Payment | 31,046 | |||||||||
Debt Instrument, Collateral Amount | 7,152,000 | |||||||||
Loan To Value | 75.00% | |||||||||
Mortgages [Member] | Wayne, NJ Mortgage 1 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 6.09% | |||||||||
Debt Instrument, Periodic Payment | 121,100 | |||||||||
Debt Instrument, Collateral Amount | 1,653,000 | |||||||||
Mortgages [Member] | River Edge, NJ First Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 6.75% | |||||||||
Debt Instrument, Periodic Payment | 34,862 | |||||||||
Mortgages [Member] | River Edge, NJ Second Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 5.53% | |||||||||
Debt Instrument, Periodic Payment | 12,318 | |||||||||
Mortgages [Member] | River Edge, NJ Refinanced Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 4.54% | |||||||||
Debt Instrument, Collateral Amount | 942,000 | |||||||||
Loan amount | 11,200,000 | |||||||||
Mortgages [Member] | Maywood, NJ First Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 6.75% | |||||||||
Debt Instrument, Periodic Payment | 25,295 | |||||||||
Mortgages [Member] | Maywood, NJ Second Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 5.53% | |||||||||
Debt Instrument, Periodic Payment | 8,739 | |||||||||
Mortgages [Member] | Refinanced Maywood, NJ Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 4.54% | |||||||||
Debt Instrument, Collateral Amount | 748,000 | |||||||||
Loan amount | 8,500,000 | |||||||||
Mortgages [Member] | Westwood, NJ #3 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 4.62% | |||||||||
Debt Instrument, Periodic Payment | 120,752 | |||||||||
Debt Instrument, Collateral Amount | 10,398,000 | |||||||||
Mortgages [Member] | Second Wayne, NJ Mortgage [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 6.04% | |||||||||
Debt Instrument, Periodic Payment | 206,960 | |||||||||
Debt Instrument, Collateral Amount | 26,945,000 | |||||||||
Mortgages [Member] | Hackensack, NJ [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Fixed interest rate | 5.38% | |||||||||
Debt Instrument, Periodic Payment | 191,197 | |||||||||
Debt Instrument, Collateral Amount | 41,546,000 | |||||||||
Mortgages [Member] | Damascus, MD [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis points, interest rate | 2.10% | |||||||||
Fixed interest rate | 3.81% | |||||||||
Debt Instrument, Collateral Amount | 29,644,000 | |||||||||
Loan amount | 25,000,000 | |||||||||
Amount drawn on loan | 20,000,000 | |||||||||
Unused loan draw | 5,000,000 | |||||||||
Term of the loan | 36 months | |||||||||
Notes Payable, Other Payables [Member] | Baltimore, MD [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis points, interest rate | 3.50% | |||||||||
Debt Instrument, Collateral Amount | 79,268,000 | |||||||||
Loan amount | 19,500,000 | 22,500,000 | ||||||||
Construction and pre-development costs | 23,700,000 | |||||||||
Debt reduction | 3,000,000 | 110,000 | ||||||||
Interest rate floor | 4.00% | |||||||||
Monthly principal payment amount | 10,000 | |||||||||
Amount due within five years | 42,689,000 | |||||||||
Repayments of debt to affiliate | 19,000,000 | |||||||||
Notes Payable, Other Payables [Member] | Baltimore, MD [Member] | Construction in Progress [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Collateral Amount | 48,800,000 | |||||||||
Provident Bank [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis points, interest rate | 1.75% | |||||||||
Term of the loan | 2 years | |||||||||
Interest rate floor | 3.50% | |||||||||
Line of credit, maximum borrowing capacity | 13,000,000 | 18,000,000 | ||||||||
Line of credit, current borrowing capacity | 8,000,000 | |||||||||
Line of credit | 5,000,000 | |||||||||
Construction Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Refinanced loan amount | 15,000,000 | 15,000,000 | ||||||||
Loan amount | 25,000,000 | |||||||||
Amount drawn on loan | 20,000,000 | |||||||||
Construction Loan [Member] | Baltimore, MD [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis points, interest rate | 2.25% | |||||||||
Loan amount | $120,000,000 | |||||||||
Term of the loan | 4 years | |||||||||
[1] | Includes $3,766 that was incurred and accrued in fiscal 2013; paid in fiscal 2014. | |||||||||
[2] | Includes $743 that was incurred and accrued in fiscal 2012; paid in fiscal 2013. | |||||||||
[3] | Includes $2,256 that was incurred and accrued in fiscal 2011; paid in fiscal 2012. |
Mortgages_notes_payable_and_cr4
Mortgages, notes payable and credit line (Schedule of Fair Value of Long-Term Debt) (Details) (USD $) | Oct. 31, 2014 | Oct. 31, 2013 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $256,000,000 | $201,900,000 |
Carrying value of long-term debt | $251,552,000 | $199,423,000 |
Mortgages_notes_payable_and_cr5
Mortgages, notes payable and credit line (Schedule of Principal Amounts Due) (Details) (USD $) | Oct. 31, 2014 |
In Thousands, unless otherwise specified | |
Mortgages, notes payable and credit line [Abstract] | |
2015 | $4,101 |
2016 | 28,434 |
2017 | 25,494 |
2018 | 8,489 |
2019 | $91,102 |
Interest_rate_swap_contract_De
Interest rate swap contract (Details)) (USD $) | 12 Months Ended | |
Oct. 31, 2014 | Oct. 31, 2013 | |
Notional amount of interest rate swap | $19,356,000 | |
Maturity date | 3-Jan-23 | |
Fixed interest rate | 3.81% | |
Interest rate swap contract | 515,000 | 980,000 |
Unrealized Gain (Loss) on Derivatives | -465,000 | 980,000 |
Construction Loan [Member] | ||
Refinanced loan amount | 15,000,000 | 15,000,000 |
Loan amount | 25,000,000 | |
Amount drawn on loan | $20,000,000 |
Capitalized_interest_Details
Capitalized interest (Details) (USD $) | 12 Months Ended |
Oct. 31, 2014 | |
Capitalized interest [Abstract] | |
Interest capitalized | $1,110,000 |
Commitments_and_contingencies_1
Commitments and contingencies (Narrative) (Details) (USD $) | 12 Months Ended |
Oct. 31, 2014 | |
Commercial space leases, net book value | $179,000,000 |
Lease terms for tenants, periods | 25 years |
Westwood Plaza Shopping Center [Member] | |
Flood insurance, amount per incident | $500,000 |
Commitments_and_contingencies_2
Commitments and contingencies (Schedule of Minimum Rental Income) (Details) (USD $) | Oct. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and contingencies [Abstract] | |
2015 | $16,667 |
2016 | 15,398 |
2017 | 12,276 |
2018 | 10,258 |
2019 | 8,861 |
Thereafter | 56,270 |
Total | $119,730 |
Giant_lease_termination_Rotund1
Giant lease termination; Rotunda project cost write-off (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Jul. 24, 2012 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Feb. 03, 2012 | |
sqft | |||||
Deferred project cost write-off | ($3,726,000) | ||||
Lease termination agreement [Member] | |||||
Area of property | 35,994 | ||||
Maximum ceiling on space that can be given on lease for use as a food supermarket (in square feet) | 20,000 | ||||
Deferred project cost write-off | 2,200,000 | 1,490,000 | |||
Lease termination fee | 2,950,000 | ||||
Accretion of present value discount | $44,000 | $87,000 | $69,000 |
Management_agreement_fees_and_1
Management agreement, fees and transactions with related party (Details) (USD $) | 12 Months Ended | 0 Months Ended | 6 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Oct. 31, 2006 | 7-May-08 | |
Related Party Transaction [Line Items] | |||||
Asset management fees | $1,968,000 | $1,849,000 | $1,863,000 | ||
Total construction financing, including other members | 14,460,000 | ||||
Secured loans receivable to noncontrolling interest | -2,128,000 | ||||
Amount of the capital call | 8,700,000 | ||||
Payment of capital call | 8,700,000 | ||||
S and A Commercial Associates Limited Partnership ("S and A") [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership by parent (percentage) | 65.00% | ||||
Damascus Centre, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership by parent (percentage) | 70.00% | ||||
Ownership by noncontrolling owners (percentage) | 30.00% | ||||
Sale of interest | 3,224,000 | ||||
Sale of interest, amount financed | 1,451,000 | ||||
Grande Rotunda, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate outstanding principal balance | 5,451,000 | 3,323,000 | |||
Accrued but unpaid interest | 595,000 | 486,000 | |||
Ownership by parent (percentage) | 60.00% | ||||
Ownership by noncontrolling owners (percentage) | 40.00% | ||||
Managing Agent Hekemian & Co [Member] | |||||
Related Party Transaction [Line Items] | |||||
Asset management fees | 1,866,000 | 1,747,000 | 1,792,000 | ||
Leasing commissions and reimbursement of operating expenses | 673,000 | 339,000 | 402,000 | ||
Leasing commissions | 396,000 | ||||
Insurance commissions | 133,000 | 121,000 | 122,000 | ||
Sales commissions | 880,000 | 185,000 | 317,000 | ||
Other fees - refinancing | 239,000 | ||||
Maximum advances to employees | 4,000,000 | 2,000,000 | |||
Accounts Payable | 171,000 | 152,000 | |||
Robert S. Hekemian [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fee expense | 642,000 | 586,000 | 546,000 | ||
Robert S. Hekemian, Jr. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fee expense | 46,000 | 40,000 | 43,000 | ||
Rotunda 100 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Secured loans receivable to noncontrolling interest | -2,100,000 | ||||
Basis points, interest rate | 2.25% | ||||
Amount of the capital call | 5,800,000 | ||||
Payment of capital call | 5,800,000 | ||||
Advance to affiliate | 3,700,000 | ||||
Fee amount | 1,400,000 | ||||
Affiliated Entity [Member] | |||||
Related Party Transaction [Line Items] | |||||
Development fee (as percentage) | 6.38% | ||||
Development costs, maximum amount | 84,600,000 | ||||
Development fees paid | 3,000,000 | ||||
Fee, monthly amount during design phase | 500,000 | ||||
Fee, to be paid on issuance of certificate of occupancy | 900,000 | ||||
Affiliated Entity 1 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Development fees paid | 1,000,000 | ||||
Redevelopment fee (as percentage) | 7.00% | ||||
Redevelopment costs, maximum amount | 17,300,000 | ||||
Redevelopment fees | 1,998,000 | 1,823,000 | 317,000 | ||
Construction and development costs | 1,400,000 | ||||
Development fees included in accounts payable | $900,000 | $900,000 |
Income_taxes_Details
Income taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | Dec. 20, 2013 | Aug. 29, 2012 | Jan. 31, 2013 | Apr. 26, 2013 | Aug. 13, 2013 | Jun. 18, 2014 | ||
Ordinary taxable income distributed as dividends (percentage) | 100.00% | 100.00% | 100.00% | ||||||||
Capital gain on sale of apartments | $3,500,000 | $9,493,000 | |||||||||
Gain on sale of discontinued operations, tax effect | 1,965,000 | ||||||||||
Income tax adjustment on gain on sale of discontinued operation | -720,000 | -720,000 | [1] | ||||||||
Distributions to shareholders | 1,400,000 | 10,812,000 | 7,637,000 | 8,331,000 | |||||||
South Brunswick property [Member] | |||||||||||
Capital gain on sale of apartments | 8,700,000 | ||||||||||
Heights Manor Apartments [Member] | |||||||||||
Capital gain on sale of apartments | 9,500,000 | 9,500,000 | |||||||||
Income tax adjustment on gain on sale of discontinued operation | -720,000 | ||||||||||
Distributions to shareholders | 5,000,000 | 5,000,000 | 1,400,000 | ||||||||
Undistributed gain | 4,500,000 | ||||||||||
Heights Manor Apartments [Member] | Federal [Member] | |||||||||||
Gain on sale of discontinued operations, tax effect | 1,500,000 | ||||||||||
Heights Manor Apartments [Member] | State [Member] | |||||||||||
Gain on sale of discontinued operations, tax effect | 400,000 | ||||||||||
Palisades Manor Apartments [Member] | |||||||||||
Capital gain on sale of apartments | 1,400,000 | ||||||||||
Grandview Apartments [Member] | |||||||||||
Capital gain on sale of apartments | 2,200,000 | ||||||||||
Regency Club Acquisition [Member] | |||||||||||
Acquisition price | 20,625,000 | ||||||||||
Amount tax basis is lower than the acquisition price | $8,000,000 | ||||||||||
[1] | Income tax adjustment relating to fiscal 2012 gain on sale of discontinued operation. |
Equity_incentive_plan_Details
Equity incentive plan (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |
Sep. 04, 2014 | Oct. 31, 2014 | Apr. 04, 2007 | Sep. 10, 1998 | |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Plan term | 10 years | |||
Vesting term | 5 years | |||
Vesting rate | 20.00% | |||
No. of Options Outstanding | ||||
Options outstanding beginning of period | ||||
Options granted during period | 246,000 | 246,000 | ||
Options outstanding end of period | 246,000 | |||
Options expected to vest | ||||
Options exercisable at end of period | ||||
Exercise Price | ||||
Options outstanding beginning of period | ||||
Options granted during period | $18.45 | $18.45 | ||
Options outstanding end of period | $18.45 | |||
Estimated fair value of options granted | $1.91 | |||
Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: | ||||
Expected volatility | 30.50% | |||
Risk-free interest rate | 2.50% | |||
Imputed option life | 6 years 9 months 22 days | |||
Expected dividend yield | 6.60% | |||
Compensation expense related to stock options | $16,000 | |||
Unrecognized compensation cost | 454,000 | |||
Unrecognized compensation cost, recognition period | 5 years | |||
Aggregate intrinsic value of options outstanding | $12,300 | |||
Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized to be issued under plan | 920,000 | |||
Increase in number of shares authorized | 300,000 | 920,000 | ||
Shares available for issuance | 220,000 | |||
Plan term | 10 years |
Deferred_fee_plan_Details
Deferred fee plan (Details) (Deferred Fee Plan [Member], USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Deferred Fee Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Trustee fee expense | $1,204,000 | $1,101,000 | $1,045,000 |
Deferred trustee fees | 5,163,000 | 4,703,000 | |
Deferred accrued interest | $3,854,000 | $3,110,000 | |
Interest rate on any deferred fee | 9.00% | ||
Basis spread on any deferred fee (percentage) | 1.50% | ||
Term of distribution to participants | 10 years |
Dividends_and_earnings_per_sha1
Dividends and earnings per share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 |
Dividends and earnings per share [Abstract] | |||||||||||
Dividends declared (amount) | $8,276 | $10,830 | $7,637 | ||||||||
Dividends declared (per share) | $0.30 | $0.30 | $0.30 | $0.30 | $0.66 | $0.30 | $0.30 | $0.30 | $1.20 | $1.56 | $1.10 |
Anti-dilutive stock options outstanding | 246,000 |
Segment_information_Details
Segment information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
segments | |||||||||||
Reportable Segments | |||||||||||
Real estate rental revenue | $42,430,000 | $41,337,000 | $45,028,000 | ||||||||
Real estate operating expenses | 27,234,000 | 25,983,000 | 29,489,000 | ||||||||
Operating income | 15,196,000 | 15,354,000 | 15,539,000 | ||||||||
Reconciliation to consolidated net income: | |||||||||||
Deferred rents - straight lining | -298,000 | -93,000 | -12,000 | 17,000 | |||||||
Amortization of acquired above and below market value leases | -21,000 | -24,000 | -2,000 | ||||||||
Net investment income | 184,000 | 191,000 | 173,000 | ||||||||
General and administrative expenses | -1,396,000 | -1,623,000 | -1,624,000 | ||||||||
G-Mart lease termination expenses | -73,000 | -371,000 | |||||||||
Acquisition expenses-Regency | -648,000 | -648,000 | |||||||||
Depreciation | -6,346,000 | -6,233,000 | -6,171,000 | ||||||||
Deferred project write-off, net of income from early lease termination | -776,000 | ||||||||||
Financing costs | -11,309,000 | -11,945,000 | -11,704,000 | ||||||||
Income from continuing operations | 698,000 | 717,000 | 890,000 | 1,118,000 | 1,081,000 | 1,045,000 | 504,000 | 970,000 | 3,423,000 | 3,600,000 | 4,008,000 |
Income from discontinued operation | 7,000 | 797,000 | 460,000 | ||||||||
Gain on sale of discontinued operation | 8,734,000 | 2,168,000 | 1,377,000 | 8,734,000 | 3,545,000 | 7,528,000 | |||||
Net income | 698,000 | 717,000 | 931,000 | 9,818,000 | 3,236,000 | 1,093,000 | 1,913,000 | 1,700,000 | 12,164,000 | 7,942,000 | 11,996,000 |
Net income attributable to noncontrolling interests | -54,000 | -162,000 | -98,000 | -193,000 | -39,000 | -182,000 | -43,000 | -229,000 | -507,000 | -493,000 | -645,000 |
Net income attributable to common equity | 644,000 | 555,000 | 833,000 | 9,625,000 | 3,197,000 | 911,000 | 1,870,000 | 1,471,000 | 11,657,000 | 7,449,000 | 11,351,000 |
Number of reportable segments | 2 | ||||||||||
Gain on sale of discontinued operations | 3,500,000 | 9,493,000 | |||||||||
Gain on sale of discontinued operations, tax effect | 1,965,000 | ||||||||||
Operating Segments [Member] | |||||||||||
Reportable Segments | |||||||||||
Real estate rental revenue | 42,843,000 | 41,373,000 | 42,063,000 | ||||||||
Real estate operating expenses | 19,420,000 | 18,127,000 | 17,968,000 | ||||||||
Operating income | 23,423,000 | 23,246,000 | 24,095,000 | ||||||||
Reconciliation to consolidated net income: | |||||||||||
Segment NOI | 23,423,000 | 23,246,000 | 24,095,000 | ||||||||
Commercial [Member] | |||||||||||
Reconciliation to consolidated net income: | |||||||||||
Number of properties | 10 | 10 | 10 | 10 | 10 | ||||||
Commercial [Member] | Operating Segments [Member] | |||||||||||
Reportable Segments | |||||||||||
Real estate rental revenue | 22,424,000 | 22,876,000 | 23,383,000 | ||||||||
Real estate operating expenses | 9,663,000 | 9,235,000 | 9,526,000 | ||||||||
Operating income | 12,761,000 | 13,641,000 | 13,857,000 | ||||||||
Residential [Member] | |||||||||||
Reportable Segments | |||||||||||
Recurring capital improvements | -549,000 | -681,000 | -697,000 | ||||||||
Reconciliation to consolidated net income: | |||||||||||
Number of properties | 7 | 6 | 7 | 6 | 6 | ||||||
Residential [Member] | Operating Segments [Member] | |||||||||||
Reportable Segments | |||||||||||
Real estate rental revenue | 20,419,000 | 18,497,000 | 18,680,000 | ||||||||
Real estate operating expenses | 9,757,000 | 8,892,000 | 8,442,000 | ||||||||
Operating income | $10,662,000 | $9,605,000 | $10,238,000 |
Share_repurchases_Details
Share repurchases (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Sep. 04, 2014 | Dec. 17, 2013 | Oct. 31, 2014 | Dec. 04, 2013 | |
Share repurchases [Abstract] | ||||
Number of shares authorized to repurchase | 100,572 | 24,400 | ||
Number of shares repurchased | 20,400 | 120,972 | ||
Shares repurchased, value | $1,855,553 | $357,000 | $2,213,000 | |
Stock repurchased price (per share) | $18.45 | $17.50 |
Subsequent_events_Details
Subsequent events (Details) (USD $) | 2 Months Ended | |
Dec. 29, 2014 | Oct. 31, 2014 | |
Subsequent Event [Line Items] | ||
Fixed interest rate | 3.81% | |
Provident Bank Mortgage [Member] | Mortgages [Member] | ||
Subsequent Event [Line Items] | ||
Loan amount | $16,200,000 | |
Provident Bank Mortgage [Member] | Mortgages [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Loan amount | $16,200,000 | |
Basis points, interest rate | 1.25% | |
Fixed interest rate | 3.75% |
Selected_quarterly_financial_d2
Selected quarterly financial data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Per Share data, unless otherwise specified | Oct. 31, 2014 | Jul. 31, 2014 | Apr. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Jul. 31, 2013 | Apr. 30, 2013 | Jan. 31, 2013 | Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
Selected quarterly financial data (unaudited) [Abstract] | ||||||||||||
Revenue | $10,793 | $10,433 | $10,632 | $10,572 | $10,659 | $10,384 | $9,907 | $10,387 | $42,430 | $41,337 | ||
Expenses | 10,095 | 9,716 | 9,742 | 9,454 | 9,578 | 9,339 | 9,403 | 9,417 | 39,007 | 37,737 | ||
Income from continuing operations | 698 | 717 | 890 | 1,118 | 1,081 | 1,045 | 504 | 970 | 3,423 | 3,600 | 4,008 | |
Income from discontinued operations | 41 | 8,700 | 2,155 | 48 | 1,409 | 730 | 8,741 | 4,342 | ||||
Net income | 698 | 717 | 931 | 9,818 | 3,236 | 1,093 | 1,913 | 1,700 | 12,164 | 7,942 | 11,996 | |
Net income attributable to noncontrolling interest in subsidiaries | -54 | -162 | -98 | -193 | -39 | -182 | -43 | -229 | -507 | -493 | -645 | |
Net income attributable to common equity | 644 | 555 | 833 | 9,625 | 3,197 | 911 | 1,870 | 1,471 | 11,657 | 7,449 | 11,351 | |
Basic & diluted earnings per share: | ||||||||||||
Continuing operations | $0.10 | $0.08 | $0.11 | $0.13 | $0.15 | $0.12 | $0.07 | $0.11 | $0.42 | $0.45 | $0.49 | |
Discontinued operations | $0.01 | $1.26 | $0.31 | $0.01 | $0.20 | $0.10 | $1.27 | $0.62 | $1.15 | |||
Net income attributable to common equity | $0.10 | $0.08 | $0.12 | $1.39 | $0.46 | $0.13 | $0.27 | $0.21 | $1.69 | $1.07 | $1.64 | |
Dividends per share | $0.30 | $0.30 | $0.30 | $0.30 | $0.66 | $0.30 | $0.30 | $0.30 | $1.20 | $1.56 | $1.10 | |
Income tax adjustment on gain on sale of discontinued operation | -720 | -720 | [1] | |||||||||
Per share effect of adjustment | $0.10 | |||||||||||
Gain on sale of discontinued operations (net of tax of $1,965 in fiscal 2012) | 8,734 | 2,168 | 1,377 | 8,734 | 3,545 | 7,528 | ||||||
Gain on sale of discontinued operations, per share effect | $0.31 | $0.20 | ||||||||||
Expenses related to Regency acquisition | 648 | 648 | ||||||||||
Expenses related to Regency acquisition, per share | $0.09 | |||||||||||
Deferred rents - straight lining | 298 | 93 | 12 | -17 | ||||||||
Straight line rent expense per share | $0.04 | |||||||||||
G-Mart lease termination expenses | ($73) | ($371) | ||||||||||
G-Mart lease termination expenses, per share | ($0.01) | |||||||||||
[1] | Income tax adjustment relating to fiscal 2012 gain on sale of discontinued operation. |
SCHEDULE_XI_REAL_ESTATE_AND_AC1
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION (Schedule of Properties) (Details) (USD $) | 12 Months Ended | ||
Oct. 31, 2014 | Oct. 31, 2013 | Oct. 31, 2012 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | $246,552,000 | ||
Initial Cost to Company | |||
Land | 66,631,000 | ||
Buildings and Improvements | 152,703,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | 13,158,000 | ||
Improvements | 121,540,000 | ||
Carrying Costs | |||
Gross Amount at Which Carried at Close of Period | |||
Land | 79,789,000 | ||
Buildings and Improvements | 274,243,000 | ||
Total | 354,032,000 | 292,769,000 | 283,703,000 |
Accumulated Depreciation | 81,569,000 | 75,226,000 | 69,619,000 |
Real estate: | |||
Balance, beginning of year | 292,769,000 | 283,703,000 | 285,137,000 |
Buildings and improvements | 62,340,000 | 9,903,000 | 4,267,000 |
Deferred project cost write-off | -3,726,000 | ||
Sale of discontinued operation | -1,077,000 | -837,000 | -1,975,000 |
Balance, end of year | 354,032,000 | 292,769,000 | 283,703,000 |
Accumulated depreciation: | |||
Balance, beginning of year | 75,226,000 | 69,619,000 | 64,976,000 |
Additions - Charged to operating expenses | 6,346,000 | 6,244,000 | 6,215,000 |
Sale of discontinued operation | -631,000 | -1,561,000 | |
Adjustments/Deletions | -3,000 | -6,000 | -11,000 |
Balance, end of year | 81,569,000 | 75,226,000 | 69,619,000 |
Hammel Gardens, Maywood, NJ [Member] | Residential Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 8,374,000 | ||
Initial Cost to Company | |||
Land | 312,000 | ||
Buildings and Improvements | 728,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 1,272,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 312,000 | ||
Buildings and Improvements | 2,000,000 | ||
Total | 2,312,000 | ||
Accumulated Depreciation | 1,564,000 | ||
Real estate: | |||
Balance, end of year | 2,312,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 1,564,000 | ||
Hammel Gardens, Maywood, NJ [Member] | Residential Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 7 years | ||
Hammel Gardens, Maywood, NJ [Member] | Residential Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 40 years | ||
Steuben Arms, River Edge, NJ [Member] | Residential Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 11,037,000 | ||
Initial Cost to Company | |||
Land | 364,000 | ||
Buildings and Improvements | 1,773,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 1,573,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 364,000 | ||
Buildings and Improvements | 3,346,000 | ||
Total | 3,710,000 | ||
Accumulated Depreciation | 2,768,000 | ||
Real estate: | |||
Balance, end of year | 3,710,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 2,768,000 | ||
Steuben Arms, River Edge, NJ [Member] | Residential Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 7 years | ||
Steuben Arms, River Edge, NJ [Member] | Residential Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 40 years | ||
Berdan Court, Wayne, NJ [Member] | Residential Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 18,686,000 | ||
Initial Cost to Company | |||
Land | 250,000 | ||
Buildings and Improvements | 2,206,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 4,221,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 250,000 | ||
Buildings and Improvements | 6,427,000 | ||
Total | 6,677,000 | ||
Accumulated Depreciation | 5,024,000 | ||
Real estate: | |||
Balance, end of year | 6,677,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 5,024,000 | ||
Berdan Court, Wayne, NJ [Member] | Residential Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 7 years | ||
Berdan Court, Wayne, NJ [Member] | Residential Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 40 years | ||
Westwood Hills, Westwood, NJ [Member] | Residential Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 21,974,000 | ||
Initial Cost to Company | |||
Land | 3,849,000 | ||
Buildings and Improvements | 11,546,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 2,674,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 3,849,000 | ||
Buildings and Improvements | 14,220,000 | ||
Total | 18,069,000 | ||
Accumulated Depreciation | 7,671,000 | ||
Real estate: | |||
Balance, end of year | 18,069,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 7,671,000 | ||
Westwood Hills, Westwood, NJ [Member] | Residential Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 7 years | ||
Westwood Hills, Westwood, NJ [Member] | Residential Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 40 years | ||
Pierre Towers, Hackensack, NJ [Member] | Residential Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 31,198,000 | ||
Initial Cost to Company | |||
Land | 8,390,000 | ||
Buildings and Improvements | 37,486,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | 19,000 | ||
Improvements | 7,932,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 8,409,000 | ||
Buildings and Improvements | 45,418,000 | ||
Total | 53,827,000 | ||
Accumulated Depreciation | 12,281,000 | ||
Cost for Federal income tax purposes | 40,900,000 | ||
Real estate: | |||
Balance, end of year | 53,827,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 12,281,000 | ||
Pierre Towers, Hackensack, NJ [Member] | Residential Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 7 years | ||
Pierre Towers, Hackensack, NJ [Member] | Residential Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 40 years | ||
Boulders - Rockaway, NJ [Member] | Residential Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 18,030,000 | ||
Initial Cost to Company | |||
Land | 1,683,000 | ||
Buildings and Improvements | |||
Costs Capitalized Subsequent to Acquisition | |||
Land | 3,335,000 | ||
Improvements | 16,274,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 5,018,000 | ||
Buildings and Improvements | 16,274,000 | ||
Total | 21,292,000 | ||
Accumulated Depreciation | 4,212,000 | ||
Real estate: | |||
Balance, end of year | 21,292,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 4,212,000 | ||
Boulders - Rockaway, NJ [Member] | Residential Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 7 years | ||
Boulders - Rockaway, NJ [Member] | Residential Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 40 years | ||
Regency Club - Middletown, NY [Member] | Residential Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Initial Cost to Company | |||
Land | 2,833,000 | ||
Buildings and Improvements | 17,792,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 85,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 2,833,000 | ||
Buildings and Improvements | 17,877,000 | ||
Total | 20,710,000 | ||
Accumulated Depreciation | 149,000 | ||
Cost for Federal income tax purposes | 12,600,000 | ||
Real estate: | |||
Balance, end of year | 20,710,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 149,000 | ||
Regency Club - Middletown, NY [Member] | Residential Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 7 years | ||
Regency Club - Middletown, NY [Member] | Residential Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 40 years | ||
Damascus Shopping Center, Damascus, MD [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 19,326,000 | ||
Initial Cost to Company | |||
Land | 2,950,000 | ||
Buildings and Improvements | 6,987,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | 6,296,000 | ||
Improvements | 17,425,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 9,246,000 | ||
Buildings and Improvements | 24,412,000 | ||
Total | 33,658,000 | ||
Accumulated Depreciation | 4,014,000 | ||
Real estate: | |||
Balance, end of year | 33,658,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 4,014,000 | ||
Damascus Shopping Center, Damascus, MD [Member] | Retail Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 15 years | ||
Damascus Shopping Center, Damascus, MD [Member] | Retail Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 39 years | ||
Franklin Crossing, Franklin Lakes, NJ [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Initial Cost to Company | |||
Land | 29,000 | ||
Buildings and Improvements | |||
Costs Capitalized Subsequent to Acquisition | |||
Land | 3,382,000 | ||
Improvements | 7,999,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 3,411,000 | ||
Buildings and Improvements | 7,999,000 | ||
Total | 11,410,000 | ||
Accumulated Depreciation | 3,756,000 | ||
Real estate: | |||
Balance, end of year | 11,410,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 3,756,000 | ||
Franklin Crossing, Franklin Lakes, NJ [Member] | Retail Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 10 years | ||
Franklin Crossing, Franklin Lakes, NJ [Member] | Retail Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 50 years | ||
Glen Rock, NJ [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Initial Cost to Company | |||
Land | 12,000 | ||
Buildings and Improvements | 36,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 213,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 12,000 | ||
Buildings and Improvements | 249,000 | ||
Total | 261,000 | ||
Accumulated Depreciation | 204,000 | ||
Real estate: | |||
Balance, end of year | 261,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 204,000 | ||
Glen Rock, NJ [Member] | Retail Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 10 years | ||
Glen Rock, NJ [Member] | Retail Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 31 years 6 months | ||
Pathmark Super Center, Patchogue, NY [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 5,376,000 | ||
Initial Cost to Company | |||
Land | 2,128,000 | ||
Buildings and Improvements | 8,818,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | -21,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 2,128,000 | ||
Buildings and Improvements | 8,797,000 | ||
Total | 10,925,000 | ||
Accumulated Depreciation | 3,773,000 | ||
Life on Which Depreciation is Computed | 39 years | ||
Real estate: | |||
Balance, end of year | 10,925,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 3,773,000 | ||
Westridge Square S/C, Frederick, MD [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 22,000,000 | ||
Initial Cost to Company | |||
Land | 9,135,000 | ||
Buildings and Improvements | 19,159,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | -1,000 | ||
Improvements | 4,196,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 9,134,000 | ||
Buildings and Improvements | 23,355,000 | ||
Total | 32,489,000 | ||
Accumulated Depreciation | 15,292,000 | ||
Real estate: | |||
Balance, end of year | 32,489,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 15,292,000 | ||
Westridge Square S/C, Frederick, MD [Member] | Retail Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 15 years | ||
Westridge Square S/C, Frederick, MD [Member] | Retail Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 31 years 6 months | ||
Westwood Plaza, Westwood, NJ [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 21,884,000 | ||
Initial Cost to Company | |||
Land | 6,889,000 | ||
Buildings and Improvements | 6,416,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 2,487,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 6,889,000 | ||
Buildings and Improvements | 8,903,000 | ||
Total | 15,792,000 | ||
Accumulated Depreciation | 7,417,000 | ||
Real estate: | |||
Balance, end of year | 15,792,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 7,417,000 | ||
Westwood Plaza, Westwood, NJ [Member] | Retail Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 15 years | ||
Westwood Plaza, Westwood, NJ [Member] | Retail Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 31 years 6 months | ||
Preakness S/C, Wayne, NJ [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 25,978,000 | ||
Initial Cost to Company | |||
Land | 9,280,000 | ||
Buildings and Improvements | 24,217,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | 1,685,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 9,280,000 | ||
Buildings and Improvements | 25,902,000 | ||
Total | 35,182,000 | ||
Accumulated Depreciation | 8,524,000 | ||
Cost for Federal income tax purposes | 35,400,000 | ||
Real estate: | |||
Balance, end of year | 35,182,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 8,524,000 | ||
Preakness S/C, Wayne, NJ [Member] | Retail Properties [Member] | Minimum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 15 years | ||
Preakness S/C, Wayne, NJ [Member] | Retail Properties [Member] | Maximum [Member] | |||
Gross Amount at Which Carried at Close of Period | |||
Life on Which Depreciation is Computed | 31 years 6 months | ||
The Rotunda, Baltimore, MD [Member] | Retail Properties [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 42,689,000 | ||
Initial Cost to Company | |||
Land | 16,263,000 | ||
Buildings and Improvements | 14,634,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | 232,000 | ||
Improvements | 53,525,000 | ||
Gross Amount at Which Carried at Close of Period | |||
Land | 16,495,000 | ||
Buildings and Improvements | 68,159,000 | ||
Total | 84,654,000 | ||
Accumulated Depreciation | 4,682,000 | ||
Life on Which Depreciation is Computed | 40 years | ||
Cost for Federal income tax purposes | 71,600,000 | ||
Real estate: | |||
Balance, end of year | 84,654,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 4,682,000 | ||
Rockaway, NJ [Member] | Land Leased [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Initial Cost to Company | |||
Land | 114,000 | ||
Buildings and Improvements | |||
Costs Capitalized Subsequent to Acquisition | |||
Land | 51,000 | ||
Improvements | |||
Gross Amount at Which Carried at Close of Period | |||
Land | 165,000 | ||
Buildings and Improvements | |||
Total | 165,000 | ||
Accumulated Depreciation | |||
Real estate: | |||
Balance, end of year | 165,000 | ||
Accumulated depreciation: | |||
Balance, end of year | |||
Rochelle Park, NJ [Member] | Land Leased [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Initial Cost to Company | |||
Land | 1,640,000 | ||
Buildings and Improvements | 905,000 | ||
Costs Capitalized Subsequent to Acquisition | |||
Land | |||
Improvements | |||
Gross Amount at Which Carried at Close of Period | |||
Land | 1,640,000 | ||
Buildings and Improvements | 905,000 | ||
Total | 2,545,000 | ||
Accumulated Depreciation | 238,000 | ||
Real estate: | |||
Balance, end of year | 2,545,000 | ||
Accumulated depreciation: | |||
Balance, end of year | 238,000 | ||
Franklin Lakes, NJ [Member] | Vacant Land [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Initial Cost to Company | |||
Land | 224,000 | ||
Buildings and Improvements | |||
Costs Capitalized Subsequent to Acquisition | |||
Land | -156,000 | ||
Improvements | |||
Gross Amount at Which Carried at Close of Period | |||
Land | 68,000 | ||
Buildings and Improvements | |||
Total | 68,000 | ||
Accumulated Depreciation | |||
Real estate: | |||
Balance, end of year | 68,000 | ||
Accumulated depreciation: | |||
Balance, end of year | |||
Wayne, NJ [Member] | Vacant Land [Member] | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Initial Cost to Company | |||
Land | 286,000 | ||
Buildings and Improvements | |||
Costs Capitalized Subsequent to Acquisition | |||
Improvements | |||
Gross Amount at Which Carried at Close of Period | |||
Land | 286,000 | ||
Buildings and Improvements | |||
Total | 286,000 | ||
Accumulated Depreciation | |||
Real estate: | |||
Balance, end of year | 286,000 | ||
Accumulated depreciation: | |||
Balance, end of year |