Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jan. 31, 2015 | Mar. 12, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | |
Entity Central Index Key | 36840 | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Period End Date | 31-Jan-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,821,171 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $221,721 | $222,317 |
Construction in progress | 65,565 | 50,146 |
Cash and cash equivalents | 20,413 | 10,554 |
Tenants' security accounts | 1,520 | 1,590 |
Receivables arising from straight-lining of rents | 3,793 | 3,869 |
Accounts receivable, net of allowance for doubtful accounts | 1,899 | 1,673 |
Secured loans receivable | 5,451 | 5,451 |
Prepaid expenses and other assets | 3,930 | 4,059 |
Deferred charges, net | 5,199 | 5,143 |
Interest rate swap contract | 515 | |
Total Assets | 329,491 | 305,317 |
Liabilities: | ||
Mortgages payable | 277,242 | 251,552 |
Deferred trustee compensation payable | 9,078 | 9,017 |
Accounts payable and accrued expenses | 9,354 | 9,495 |
Dividends payable | 2,046 | 2,046 |
Tenants' security deposits | 2,342 | 2,319 |
Deferred revenue | 924 | 1,042 |
Interest rate swap contract, net | 1,634 | |
Total Liabilities | 302,620 | 275,471 |
Commitments and contingencies | ||
Common equity: | ||
Shares of beneficial interest without par value: 8,000,000 shares authorized; 6,993,152 shares issued | 25,195 | 24,985 |
Treasury stock, at cost: 171,981 shares @ January 31, 2015 and October 31, 2014 | -3,348 | -3,348 |
Dividends in excess of net income | -7,271 | -6,270 |
Accumulated other comprehensive (loss) income | -1,533 | 360 |
Total Common Equity | 13,043 | 15,727 |
Noncontrolling interests in subsidiaries | 13,828 | 14,119 |
Total Equity | 26,871 | 29,846 |
Total Liabilities and Equity | $329,491 | $305,317 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
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 | 171,981 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Revenue: | ||
Rental income | $9,681 | $8,992 |
Reimbursements | 1,337 | 1,283 |
Sundry income | 262 | 297 |
Revenue | 11,280 | 10,572 |
Expenses: | ||
Operating expenses | 3,139 | 2,668 |
Management fees | 486 | 468 |
Real estate taxes | 1,953 | 1,864 |
Depreciation | 1,647 | 1,520 |
Expenses | 7,225 | 6,520 |
Operating income | 4,055 | 4,052 |
Investment income | 40 | 42 |
Interest expense including amortization of deferred financing costs | -2,782 | -2,976 |
Income from continuing operations | 1,313 | 1,118 |
Income from discontinued operations | 7 | |
Gain on sale of discontinued operations | 8,693 | |
Net income | 1,313 | 9,818 |
Net income attributable to noncontrolling interest in subsidiaries | -265 | -193 |
Net income attributable to common equity | 1,048 | 9,625 |
Earnings per share - basic and diluted: | ||
Continuing operations | $0.15 | $0.13 |
Discontinued operations | $1.26 | |
Net income attributable to common equity | $0.15 | $1.39 |
Weighted average shares and share units outstanding-basic and diluted | 6,821 | 6,932 |
Amounts attributable to common equity: | ||
Income from continuing operations | 1,048 | 925 |
Income from discontinued operations | 8,700 | |
Net income attributable to common equity | $1,048 | $9,625 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $1,313 | $9,818 |
Other comprehensive income: | ||
Unrealized loss on interest rate swap contracts before reclassifications | -2,259 | -9 |
Amount reclassed from accumulated other comprehensive income to interest expense | 110 | 79 |
Net unrealized (loss) gain on interest rate swap contracts | -2,149 | 70 |
Comprehensive (loss) income | -836 | 9,888 |
Net income attributable to noncontrolling interests | -265 | -193 |
Other comprehensive income: | ||
Unrealized loss (gain) on interest rate swap contract attributable to noncontrolling interests | 256 | -21 |
Comprehensive income attributable to noncontrolling interests | -9 | -214 |
Comprehensive (loss) income attributable to common equity | ($845) | $9,674 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (USD $) | Total | Shares of Beneficial Interest [Member] | Treasury Shares at Cost [Member] | Dividends in Excess of Net Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Common Equity [Member] | Noncontrolling Interests [Member] |
In Thousands, unless otherwise specified | |||||||
Balance at Oct. 31, 2014 | $29,846 | $24,985 | ($3,348) | ($6,270) | $360 | $15,727 | $14,119 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation expense | 23 | 23 | 23 | ||||
Vested share units granted to Trustees | 187 | 187 | 187 | ||||
Distributions to noncontrolling interests | -300 | -300 | |||||
Net income | 1,313 | 1,048 | 1,048 | 265 | |||
Dividends declared, including $3 payable in share units ($0.30 per share) | -2,049 | -2,049 | -2,049 | ||||
Net unrealized loss on interest rate swap | -2,149 | -1,893 | -1,893 | -256 | |||
Balance at Jan. 31, 2015 | $26,871 | $25,195 | ($3,348) | ($7,271) | ($1,533) | $13,043 | $13,828 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 |
CONSOLIDATED STATEMENTS OF EQUITY [Abstract] | |
Dividends declared, per share | $0.30 |
Stock dividends payable | $3 |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Operating activities: | ||
Net income | $1,313 | $9,818 |
Adjustments to reconcile net income to net cash provided by operating activities (including discontinued operations): | ||
Depreciation | 1,647 | 1,520 |
Amortization | 159 | 154 |
Stock based compensation expense | 23 | |
Trustee fees and related interest payable in stock units | 187 | |
Net amortization of acquired leases | 1 | 5 |
Gain on sale of discontinued operations | -8,693 | |
Changes in operating assets and liabilities: | ||
Tenants' security accounts | 93 | 10 |
Accounts and straight-line rents receivable, prepaid expenses and other assets | -64 | 64 |
Accounts payable, accrued expenses and deferred trustee compensation | 1,343 | 448 |
Deferred revenue | -62 | -12 |
Net cash provided by operating activities | 4,640 | 3,314 |
Investing activities: | ||
Capital improvements - existing properties | -1,057 | -2,055 |
Construction and pre-development costs | -16,449 | -2,679 |
Net cash used in investing activities | -17,506 | -4,734 |
Financing activities: | ||
Repayment of mortgages and construction loan | -1,001 | -12,226 |
Repayment of credit line | -5,000 | |
Proceeds from mortgage loan refinancings | 16,200 | 19,700 |
Proceeds from construction loan | 15,193 | 19,000 |
Deferred financing costs | -318 | -2,573 |
Dividends paid | -2,049 | -4,582 |
Repurchase of Company stock-Treasury shares | -357 | |
Distributions to noncontrolling interests | -300 | -255 |
Net cash provided by financing activities | 22,725 | 18,707 |
Net increase in cash and cash equivalents | 9,859 | 17,287 |
Cash and cash equivalents, beginning of period | 10,554 | 7,801 |
Cash and cash equivalents, end of period | 20,413 | 25,088 |
Supplemental disclosure of cash flow data: | ||
Interest paid, net of amounts capitalized | 2,571 | 2,680 |
Investing activities: | ||
Proceeds from sale of discontinued operation, held in escrow pending 1031 exchange | 9,770 | |
Accrued capital expenditures, construction costs, pre-development costs and interest | 5,226 | 2,043 |
Financing activities: | ||
Dividends declared but not paid | $2,046 | $2,077 |
Basis_of_presentation
Basis of presentation | 3 Months Ended |
Jan. 31, 2015 | |
Basis of presentation [Abstract] | |
Basis of presentation | Note 1 - Basis of presentation: |
The accompanying interim condensed consolidated financial statements have been prepared, in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the rules of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnotes required by GAAP for complete financial statements have been omitted. It is the opinion of management that all adjustments considered necessary for a fair presentation have been included, and that all such adjustments are of a normal recurring nature. | |
The consolidated results of operations for three-month period ended January 31, 2015 are not necessarily indicative of the results to be expected for the full year or any other period. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended October 31, 2014 of First Real Estate Investment Trust of New Jersey (“FREIT”). | |
Recently_issued_accounting_sta
Recently issued accounting standards | 3 Months Ended |
Jan. 31, 2015 | |
Recently issued accounting standards [Abstract] | |
Recently issued accounting standards | Note 2 –Recently issued accounting standards: |
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. The Company has adopted this guidance effective with its 1st quarter ended January 31, 2015. The adoption of this guidance did not have any impact on our financial statements. | |
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. | |
Earnings_per_share
Earnings per share | 3 Months Ended |
Jan. 31, 2015 | |
Earnings per share [Abstract] | |
Earnings per share | Note 3 - Earnings per share: |
Basic earnings per share is calculated by dividing net income attributable to common equity (numerator) by the weighted average number of shares and vested share units (see Note 15) outstanding during each period (denominator). The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional shares that would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options, were issued during the period using the Treasury Stock method at the average market price during the period. Under the Treasury Stock method, the assumption is that the proceeds received upon exercise of the options, including the unrecognized stock option compensation expense attributed to future services, are used to repurchase FREIT stock at the average market price during the period, thereby reducing the number of shares to be added in computing diluted earnings per share. For the three months ended January 31, 2015, the outstanding options were anti-dilutive. | |
For the three months ended January 31, 2014, no options or other potentially dilutive shares were outstanding. | |
Interest_rate_swap_contracts
Interest rate swap contracts | 3 Months Ended |
Jan. 31, 2015 | |
Interest rate swap contracts [Abstract] | |
Interest rate swap contracts | Note 4 - Interest rate swap contracts: |
On December 26, 2012, Damascus Centre, LLC refinanced its $15 million construction loan with a variable rate $25 million mortgage loan of which $19.2 million is outstanding as of January 31, 2015. The new loan will mature on January 3, 2023. 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 January 31, 2015, the derivative financial instrument has a notional amount of approximately $19,263,000 and a current maturity date of January 2023. The contract effectively converts the LIBOR based variable rate to a fixed rate of 3.81%. | |
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. At January 31, 2015, the derivative financial instrument has a notional amount of approximately $16,200,000 and a current maturity date of December 2024. | |
In accordance with ASC 815, “Accounting for Derivative Instruments and Hedging Activities”, FREIT is accounting for the Damascus Centre, LLC and the FREIT Regency, LLC interest rate swaps as cash flow hedges and marks to market its fixed pay interest rate swaps, taking into account present interest rates compared to the contracted fixed rate over the life of the contract. For the three-months ended January 31, 2015, FREIT recorded an unrealized loss of $2,149,000 in comprehensive income representing the reduction in the fair value of the swap which resulted in a corresponding net liability of $1,634,000 as of January 31, 2015. As of January 31, 2014, FREIT recorded an asset of $1,050,000 representing the fair value of the swap, along with a corresponding increase to accumulated other comprehensive income of $70,000. 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, which resulted in a $515,000 corresponding asset as of October 31, 2014. The fair values are based on observable inputs (level 2 in the fair value hierarchy). | |
Discontinued_operations
Discontinued operations | 3 Months Ended |
Jan. 31, 2015 | |
Discontinued operations [Abstract] | |
Discontinued operations | Note 5 – 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 qualified it as a like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code. The 1031 Exchange transaction resulted 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. | |
The gain from the sale of the South Brunswick property described above, has been classified as discontinued operations in the accompanying statements of income for the three months ended January 31, 2014. | |
Property_acquisition
Property acquisition | 3 Months Ended | |||
Jan. 31, 2015 | ||||
Property acquisition [Abstract] | ||||
Property acquisition | Note 6 – 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. | ||||
The acquisition price of $20,625,000 has been allocated as follows: $18.5 million to the buildings and $2.1 million to the land. | ||||
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 5). The Regency is part of FREIT's Residential segment. | ||||
The following unaudited pro forma information shows the results of operations for the three-month period ended January 31, 2014 for FREIT and Subsidiaries as though the Regency had been acquired at the beginning of fiscal 2014: | ||||
FREIT/Regency Pro Forma | ||||
Quarter Ended | ||||
31-Jan-14 | ||||
Pro Forma | ||||
Revenues | $ | 11,125 | ||
Net expenses | 9,987 | |||
Income from continuing operations | 1,138 | |||
Income from discontinued operations | 7 | |||
Gain on sale of discontinued operation | 8,693 | |||
Net income | 9,838 | |||
Net income attributable to noncontrolling interest in subsidiaries | (193 | ) | ||
Net income attributable to common equity | $ | 9,645 | ||
Earnings per share - basic and diluted: | ||||
Continuing operations | $ | 0.13 | ||
Discontinued operations | 1.26 | |||
Net income attributable to common equity | $ | 1.39 | ||
Weighted average shares outstanding - basic and diluted | 6,932 | |||
The pro forma results for the prior year period reflects the following adjustments: (a) additional depreciation expense based on the purchase price allocated to the buildings and a depreciable life of 40 years, and (b) additional interest expense based on the $10 million loan used towards the purchase of the property at acquisition date. | ||||
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 2014, or of future results of operations of FREIT's combined properties. | ||||
Capitalized_interest
Capitalized interest | 3 Months Ended |
Jan. 31, 2015 | |
Capitalized interest [Abstract] | |
Capitalized interest | Note 7 – Capitalized interest |
Interest costs associated with amounts expended at the Grande Rotunda development are capitalized and included in the cost of the project. Interest capitalized during the three-month periods ended January 31, 2015 and 2014, amounted to $421,000 and $45,000, respectively. | |
Management_agreement_fees_and_
Management agreement, fees and transactions with related party | 3 Months Ended |
Jan. 31, 2015 | |
Management agreement, fees and transactions with related party [Abstract] | |
Management agreement, fees and transactions with related party | Note 8 - Management agreement, fees and transactions with related party: |
Hekemian & Co., Inc. (“Hekemian”) currently manages all the properties owned by FREIT and its affiliates, 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 4% to 5% of rents collected. Such fees were approximately $460,000 and $444,000 for the three-month periods ended January 31, 2015 and 2014, 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 items amounted to approximately $69,000 and $69,000 for the three-months ended January 31, 2015 and 2014, respectively. The management agreement expires on October 31, 2015, and is automatically renewed for periods of two years unless either party gives not less than six (6) months prior notice of non-renewal. | |
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 $45,000 and $30,000 for the three-months ended January 31, 2015 and 2014, respectively. | |
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 connection with the development activities at the Rotunda, which is owned and operated by Grande Rotunda, LLC, a definitive agreement for the development services to be provided by Hekemian Development Resources LLC (“Resources”), a wholly owned subsidiary of Hekemian, has been approved and executed. Such fees incurred to Hekemian and Resources during the three-months ended January 31, 2015 and 2014 were $482,000 and $429,000, respectively. Fees paid in the current three-month period relate to fees paid to Resources relative to the Rotunda development project. Fees paid in the prior year's three-month period relate to $330,000 in commissions paid to Hekemian relative to the sale of FREIT's South Brunswick, NJ property and $99,000 related to services performed with regard to the Hammel Gardens and Steuben Arms mortgage loan refinancings. | |
Mr. 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. Mr. Robert S. Hekemian, Jr, a Trustee of FREIT, is the President of Hekemian. Trustee fee expense (including interest) incurred by FREIT for the three-months ended January 31, 2015 and 2014 was approximately $132,000 and $156,000, respectively, for Mr. Robert S. Hekemian, and $16,000 and $11,000, respectively, for Mr. Robert S. Hekemian, Jr. | |
Mortgage_refinancings
Mortgage refinancings | 3 Months Ended |
Jan. 31, 2015 | |
Mortgage refinancings [Abstract] | |
Mortgage refinancings | Note 9 – Mortgage refinancings: |
On May 28, 2013, the balance of the Grande Rotunda LLC acquisition loan amounting to $19 million was purchased from the bank by FREIT. The due date of the loan was May 1, 2013. While the bank agreed to an additional extension of ninety (90) days from May 1, 2013, FREIT elected to purchase the Rotunda loan from the bank and have all the bank's rights assigned to FREIT. It was FREIT's intention to sell this loan to the lender providing the construction financing for the expansion of the Rotunda project. On December 9, 2013, FREIT's 60% owned affiliate, Grande Rotunda, LLC, closed with Wells Fargo Bank on a construction loan of up to $120 million to be used to reconfigure and expand its Rotunda property in Baltimore, MD. 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. As of January 31, 2015, $58.2 million of this loan was drawn down, of which $19 million was used to pay off the loan from FREIT, and $39.2 million was used toward the construction at the Rotunda. | |
On November 19, 2013, FREIT refinanced the mortgages on its Hammel Gardens and Steuben Arms properties that were scheduled to mature on December 1, 2013. The mortgages, aggregating $9.4 million, were refinanced for $19.7 million. The new mortgage amounts reflect, in part, the appreciated value of those assets. This refinancing resulted in: (i) a reduction of annual interest costs from 6.4% to 4.54%, and (ii) net refinancing proceeds of approximately $10 million that were available for capital expenditures and general corporate purposes. | |
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 one-month BBA LIBOR and the loan will mature on December 15, 2024. Interest only payments are required each month through December 15, 2017. Thereafter, principal payments of $27,807 (plus accrued interest) are required each month through maturity. In order to minimize interest rate volatility during the term of the loan, 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 were used to pay-off the $5 million outstanding balance on FREIT's credit line, and the remainder of the proceeds will be available to fund future capital expenditures and for general corporate purposes. | |
Fair_value_of_longterm_debt
Fair value of long-term debt | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Fair value of long-term debt [Abstract] | |||||||||
Fair value of long-term debt | Note 10 – Fair value of long-term debt: | ||||||||
The following table shows the estimated fair value and carrying value of FREIT's long-term debt at January 31, 2015 and October 31, 2014: | |||||||||
January 31, | October 31, | ||||||||
($ In Millions) | 2015 | 2014 | |||||||
Fair Value | $ | 288.3 | $ | 256 | |||||
Carrying Value | $ | 277.2 | $ | 251.6 | |||||
Fair values are estimated based on market interest rates at January 31, 2015 and October 31, 2014 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. | |||||||||
Segment_information
Segment information | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Segment information [Abstract] | ||||||||
Segment information | Note 11 - Segment information: | |||||||
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 contains ten (10) separate properties and the residential segment contains seven (7) properties. The accounting policies of the segments are the same as those described in Note 1 in FREIT's Annual Report on Form 10-K for the fiscal year ended October 31, 2014. | ||||||||
The chief operating and decision-making group of FREIT's commercial segment, residential segment and corporate/other is comprised of FREIT's Board of Trustees (“Board”). | ||||||||
FREIT assesses and measures segment operating results based on net operating income ("NOI"). NOI, a standard used by real estate professionals, is based on operating revenue and expenses directly associated with the operations of the real estate properties, but excludes deferred rents (straight lining), lease amortization, depreciation, financing costs and other items. NOI is not a measure of operating results or cash flows from operating activities as measured by GAAP, and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. | ||||||||
Continuing real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income-common equity for the three-month period ended January 31, 2015 and 2014. Asset information is not reported since FREIT does not use this measure to assess performance. | ||||||||
Three Months Ended | ||||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(In Thousands) | ||||||||
Real estate rental revenue: | ||||||||
Commercial | $ | 5,744 | $ | 5,707 | ||||
Residential | 5,612 | 4,916 | ||||||
Total real estate revenue | 11,356 | 10,623 | ||||||
Real estate operating expenses: | ||||||||
Commercial | 2,432 | 2,324 | ||||||
Residential | 2,654 | 2,274 | ||||||
Total real estate operating expenses | 5,086 | 4,598 | ||||||
Net operating income: | ||||||||
Commercial | 3,312 | 3,383 | ||||||
Residential | 2,958 | 2,642 | ||||||
Total net operating income | $ | 6,270 | $ | 6,025 | ||||
Recurring capital improvements-residential | $ | (86 | ) | $ | (104 | ) | ||
Reconciliation to consolidated net income: | ||||||||
Segment NOI | $ | 6,270 | $ | 6,025 | ||||
Deferred rents - straight lining | (75 | ) | (46 | ) | ||||
Amortization of acquired leases | (1 | ) | (5 | ) | ||||
Investment income | 40 | 42 | ||||||
General and administrative expenses | (492 | ) | (402 | ) | ||||
Depreciation | (1,647 | ) | (1,520 | ) | ||||
Financing costs | (2,782 | ) | (2,976 | ) | ||||
Income from continuing operations | 1,313 | 1,118 | ||||||
Income from discontinued operations | - | 7 | ||||||
Gain on sale of discontinued operation | - | 8,693 | ||||||
Net income | 1,313 | 9,818 | ||||||
Net income attributable to noncontrolling | ||||||||
interests | (265 | ) | (193 | ) | ||||
Net income attributable to common equity | $ | 1,048 | $ | 9,625 |
Income_taxes
Income taxes | 3 Months Ended |
Jan. 31, 2015 | |
Income taxes [Abstract] | |
Income taxes | Note 12 – Income taxes: |
FREIT distributed as dividends to its shareholders 100% of its ordinary taxable income for the fiscal year ended October 31, 2014 and intends to distribute as dividends 100% of its ordinary taxable income for the fiscal year ending October 31, 2015. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income was recorded in FREIT's financial statements. As described in Note 5, FREIT 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 FREIT'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 the entire capital gain of approximately $3.5 million realized on the sale of its Palisades Manor and Grandview properties in Fiscal 2013. With regard to such capital gain dividend distribution for Fiscal 2013, no provision for federal or state income taxes related to such capital gain income was recorded in FREIT's financial statements. | |
As of January 31, 2015, FREIT 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 FREIT is subject. | |
Share_repurchases
Share repurchases | 3 Months Ended |
Jan. 31, 2015 | |
Share repurchases [Abstract] | |
Share repurchases | Note 13 – 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 which occurred in September 2014 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 were participants in the pension plan. | |
Stock_option_plan
Stock option plan | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Stock option plan [Abstract] | ||||||||
Stock option plan | Note 14 – Stock option 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. 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. | ||||||||
The following table summarizes stock option activity for the three-month period ended January 31, 2015: | ||||||||
Quarter Ended January 31, | ||||||||
2015 | ||||||||
No. of Options | Exercise | |||||||
Outstanding | Price | |||||||
Options outstanding beginning of period | 246,000 | $ | 18.45 | |||||
Options granted during period | - | - | ||||||
Options outstanding end of period | 246,000 | $ | 18.45 | |||||
Options expected to vest | 238,620 | |||||||
Options exercisable at end of period | - | |||||||
For the three-month period ended January 31, 2015, compensation expense related to stock options granted amounted to $23,000. At January 31, 2015, there was approximately $431,000 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 January 31, 2015 was $147,600. | ||||||||
Deferred_fee_plan
Deferred fee plan | 3 Months Ended |
Jan. 31, 2015 | |
Deferred fee plan [Abstract] | |
Deferred fee plan | Note 15 – Deferred fee plan: |
On September 4, 2014, the Board approved amendments, effective November 1, 2014, to the FREIT Deferred Fee Plan for its Executive Officers and Trustees, one of which provides for the issuance of share units payable in FREIT shares in respect of (i) deferred amounts of all Trustee fees on a prospective basis; (ii) interest on Trustee fees deferred prior to November 1, 2014 (payable at a floating rate, adjusted quarterly, based on the average 10-year Treasury Bond interest rate plus 150 basis points); and (iii) dividends payable in respect of share units allocated to participants in the Deferred Fee Plan as a result of deferrals described above. The number of share units will be determined by the closing price of FREIT shares on the date as set forth in the agreement. As a result of the plan amendment described above, all Trustee fees and related interest for the three-months ended January 31, 2015, which amounted to approximately $187,000, have been paid through the issuance of 9,807 FREIT share units based on the closing price of FREIT shares on January 29, 2015, the date as set forth in the agreement. Such vested units are reflected in “Shares of beneficial interest” in FREIT's Condensed Consolidated Balance Sheet as of January 31, 2015. | |
FREIT has charged $184,000 of this amount, representing Trustee fees and interest, to expense and the balance of $3,000, representing dividends payable in respect of share units allocated to Plan participants, has been charged to equity. | |
Subsequent_event
Subsequent event | 3 Months Ended |
Jan. 31, 2015 | |
Subsequent event [Abstract] | |
Subsequent event | Note 16 – Subsequent event: |
On February 17, 2015, FREIT announced that it has commenced a tender offer to purchase up to 100,000 shares of beneficial interest in the Company at a price of $23.00 per share, which it intends to fund principally from cash and cash equivalents. The number of shares proposed to be purchased in the tender offer represents approximately 1.5% of FREIT's currently outstanding shares. | |
FREIT's Trustees and executive officers have advised FREIT that they do not intend to tender their shares of beneficial interest in FREIT in the tender offer. | |
Mortgages_notes_payable_and_cr
Mortgages, notes payable and credit line (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Mortgage refinancings [Abstract] | |||||||||
Schedule of estimated fair value and carrying value of long-term debt | January 31, | October 31, | |||||||
($ In Millions) | 2015 | 2014 | |||||||
Fair Value | $ | 288.3 | $ | 256 | |||||
Carrying Value | $ | 277.2 | $ | 251.6 |
Property_acquisition_Tables
Property acquisition (Tables) | 3 Months Ended | |||
Jan. 31, 2014 | ||||
Property acquisition [Abstract] | ||||
Schedule of unaudited pro forma information | FREIT/Regency Pro Forma | |||
Quarter Ended | ||||
31-Jan-14 | ||||
Pro Forma | ||||
Revenues | $ | 11,125 | ||
Net expenses | 9,987 | |||
Income from continuing operations | 1,138 | |||
Income from discontinued operations | 7 | |||
Gain on sale of discontinued operation | 8,693 | |||
Net income | 9,838 | |||
Net income attributable to noncontrolling interest in subsidiaries | (193 | ) | ||
Net income attributable to common equity | $ | 9,645 | ||
Earnings per share - basic and diluted: | ||||
Continuing operations | $ | 0.13 | ||
Discontinued operations | 1.26 | |||
Net income attributable to common equity | $ | 1.39 | ||
Weighted average shares outstanding - basic and diluted | 6,932 |
Fair_value_of_longterm_debt_Ta
Fair value of long-term debt (Tables) | 3 Months Ended | ||||||||
Jan. 31, 2015 | |||||||||
Fair value of long-term debt [Abstract] | |||||||||
Schedule of estimated fair value and carrying value of long-term debt | January 31, | October 31, | |||||||
($ In Millions) | 2015 | 2014 | |||||||
Fair Value | $ | 288.3 | $ | 256 | |||||
Carrying Value | $ | 277.2 | $ | 251.6 |
Stock_option_plan_Tables
Stock option plan (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Stock option plan [Abstract] | ||||||||
Schedule of Stock Option Activity | Quarter Ended January 31, | |||||||
2015 | ||||||||
No. of Options | Exercise | |||||||
Outstanding | Price | |||||||
Options outstanding beginning of period | 246,000 | $ | 18.45 | |||||
Options granted during period | - | - | ||||||
Options outstanding end of period | 246,000 | $ | 18.45 | |||||
Options expected to vest | 238,620 | |||||||
Options exercisable at end of period | - |
Segment_information_Tables
Segment information (Tables) | 3 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Segment information [Abstract] | ||||||||
Schedule of segment and related information | Three Months Ended | |||||||
January 31, | ||||||||
2015 | 2014 | |||||||
(In Thousands) | ||||||||
Real estate rental revenue: | ||||||||
Commercial | $ | 5,744 | $ | 5,707 | ||||
Residential | 5,612 | 4,916 | ||||||
Total real estate revenue | 11,356 | 10,623 | ||||||
Real estate operating expenses: | ||||||||
Commercial | 2,432 | 2,324 | ||||||
Residential | 2,654 | 2,274 | ||||||
Total real estate operating expenses | 5,086 | 4,598 | ||||||
Net operating income: | ||||||||
Commercial | 3,312 | 3,383 | ||||||
Residential | 2,958 | 2,642 | ||||||
Total net operating income | $ | 6,270 | $ | 6,025 | ||||
Recurring capital improvements-residential | $ | (86 | ) | $ | (104 | ) | ||
Reconciliation to consolidated net income: | ||||||||
Segment NOI | $ | 6,270 | $ | 6,025 | ||||
Deferred rents - straight lining | (75 | ) | (46 | ) | ||||
Amortization of acquired leases | (1 | ) | (5 | ) | ||||
Investment income | 40 | 42 | ||||||
General and administrative expenses | (492 | ) | (402 | ) | ||||
Depreciation | (1,647 | ) | (1,520 | ) | ||||
Financing costs | (2,782 | ) | (2,976 | ) | ||||
Income from continuing operations | 1,313 | 1,118 | ||||||
Income from discontinued operations | - | 7 | ||||||
Gain on sale of discontinued operation | - | 8,693 | ||||||
Net income | 1,313 | 9,818 | ||||||
Net income attributable to noncontrolling | ||||||||
interests | (265 | ) | (193 | ) | ||||
Net income attributable to common equity | $ | 1,048 | $ | 9,625 |
Interest_rate_swap_contracts_D
Interest rate swap contracts (Details)) (USD $) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2014 | |
Interest rate swap contract assets | $1,050,000 | $515,000 | |
Unrealized Gain (Loss) on Derivatives | -2,149,000 | 70,000 | -465,000 |
Interest rate swap contract liabilities | 1,634,000 | ||
Construction Loan [Member] | |||
Refinanced loan amount | 15,000,000 | ||
Loan amount | 25,000,000 | ||
Amount drawn on loan | 19,200,000 | ||
Notional amount of interest rate swap | 19,263,000 | ||
Fixed interest rate | 3.81% | ||
Mortgage Loans over $1,000,000 [Member] | |||
Loan amount | 16,200,000 | ||
Notional amount of interest rate swap | $16,200,000 | ||
Fixed interest rate | 3.75% | ||
Basis points, interest rate | 1.25% |
Discontinued_operations_Detail
Discontinued operations (Details) (USD $) | 12 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Oct. 31, 2013 | Dec. 20, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Capital gain on sale of apartments | $3.50 | |
South Brunswick property [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Sale of property | 11 | |
Capital gain on sale of apartments | 8.7 | |
Deferred gain on sale | 8.7 | |
Net proceeds on sale of business | $9.80 |
Property_acquisition_Narrative
Property acquisition (Narrative) (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2014 | Jun. 18, 2014 | Dec. 29, 2014 | |
Business Acquisition [Line Items] | ||||
Net operating income | $4,055,000 | $4,052,000 | ||
Gain on sale of discontinued operations (net of tax of $1,965 in fiscal 2012) | 8,693,000 | |||
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 | |||
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 | 18,500,000 | |||
Acquisition price allocation to land | $2,100,000 | |||
Estimated useful life | 40 years |
Property_acquisition_Schedule_
Property acquisition (Schedule of Results of Operations) (Details) (USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2014 |
Schedule of pro-forma information | |
Revenues | $11,125 |
Net expenses | 9,987 |
Income from continuing operations | 1,138 |
Income from discontinued operations | 7 |
Gain on sale of discontinued operations | 8,693 |
Net income | 9,838 |
Net income attributable to noncontrolling interests in subsidiaries | -193 |
Net income attributable to common equity | $9,645 |
Earnings per share - basic and diluted: | |
Continuing operations | $0.13 |
Discontinued operations | $1.26 |
Net income attributable to common equity | $1.39 |
Weighted average shares outstanding - basic and diluted | 6,932 |
Capitalized_interest_Details
Capitalized interest (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Capitalized interest [Abstract] | ||
Interest capitalized | $421,000 | $45,000 |
Management_agreement_fees_and_1
Management agreement, fees and transactions with related party (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
Related Party Transaction [Line Items] | ||
Asset management fees | $486 | $468 |
Trustee fees and related interest payable in stock units | 187 | |
Managing Agent Hekemian & Co [Member] | ||
Related Party Transaction [Line Items] | ||
Asset management fees | 460 | 444 |
Leasing commissions and reimbursement of operating expenses | 69 | 69 |
Insurance commissions | 45 | 30 |
Sales commissions | 330 | |
Other fees - refinancing | 99 | |
Robert S. Hekemian [Member] | ||
Related Party Transaction [Line Items] | ||
Trustee fees and related interest payable in stock units | 132 | 156 |
Robert S. Hekemian, Jr. [Member] | ||
Related Party Transaction [Line Items] | ||
Trustee fees and related interest payable in stock units | 16 | 11 |
Affiliated Entity 1 [Member] | ||
Related Party Transaction [Line Items] | ||
Redevelopment fees | $482 | $429 |
Mortgage_refinancings_Details
Mortgage refinancings (Details) (USD $) | 3 Months Ended | |||
Jan. 31, 2015 | Jan. 31, 2014 | Nov. 19, 2013 | Oct. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Repayment of mortgages and construction loan | $1,001,000 | $12,226,000 | ||
Construction and pre-development costs | 16,449,000 | 2,679,000 | ||
Mortgages [Member] | Refinanced Maywood, NJ Mortgage [Member] | ||||
Debt Instrument [Line Items] | ||||
Refinanced loan amount | 19,700,000 | |||
Loan amount | 9,400,000 | |||
Annual interest costs | 4.54% | 6.40% | ||
Net proceeds from refinancing of debt | 10,000,000 | |||
Notes Payable, Other Payables [Member] | Baltimore, MD [Member] | ||||
Debt Instrument [Line Items] | ||||
Construction and pre-development costs | 39,200,000 | |||
Line of credit | 58,200,000 | |||
Repayments of debt to affiliate | 19,000,000 | |||
Provident Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis points, interest rate | 1.25% | |||
Loan amount | 16,200,000 | |||
Amount drawn on loan | 5,000,000 | |||
Annual interest costs | 3.75% | |||
Monthly principal payment amount | 27,807 | |||
Construction Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Refinanced loan amount | 15,000,000 | |||
Loan amount | 25,000,000 | |||
Amount drawn on loan | 19,200,000 | |||
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 |
Fair_value_of_longterm_debt_De
Fair value of long-term debt (Details) (USD $) | Jan. 31, 2015 | Oct. 31, 2014 |
Fair value of long-term debt [Abstract] | ||
Fair value of long-term debt | $288,300,000 | $256,000,000 |
Carrying value of long-term debt | $277,242,000 | $251,552,000 |
Segment_information_Details
Segment information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 |
segments | ||
Reportable Segments | ||
Real estate rental revenue | $11,280 | $10,572 |
Real estate operating expenses | 7,225 | 6,520 |
Operating income | 4,055 | 4,052 |
Reconciliation to consolidated net income: | ||
Deferred rents - straight lining | -75 | -46 |
Amortization of acquired leases | -1 | -5 |
Investment income | 40 | 42 |
General and administrative expenses | -492 | -402 |
Depreciation | -1,647 | -1,520 |
Financing costs | -2,782 | -2,976 |
Income from continuing operations | 1,313 | 1,118 |
Income from discontinued operation | 7 | |
Gain on sale of discontinued operation | 8,693 | |
Net income | 1,313 | 9,818 |
Net income attributable to noncontrolling interests | -265 | -193 |
Net income attributable to common equity | 1,048 | 9,625 |
Number of reportable segments | 2 | |
Operating Segments [Member] | ||
Reportable Segments | ||
Real estate rental revenue | 11,356 | 10,623 |
Real estate operating expenses | 5,086 | 4,598 |
Operating income | 6,270 | 6,025 |
Reconciliation to consolidated net income: | ||
Segment NOI | 6,270 | 6,025 |
Commercial [Member] | ||
Reconciliation to consolidated net income: | ||
Number of properties | 10 | |
Commercial [Member] | Operating Segments [Member] | ||
Reportable Segments | ||
Real estate rental revenue | 5,744 | 5,707 |
Real estate operating expenses | 2,432 | 2,324 |
Operating income | 3,312 | 3,383 |
Residential [Member] | ||
Reportable Segments | ||
Recurring capital improvements | -86 | -104 |
Reconciliation to consolidated net income: | ||
Number of properties | 7 | |
Residential [Member] | Operating Segments [Member] | ||
Reportable Segments | ||
Real estate rental revenue | 5,612 | 4,916 |
Real estate operating expenses | 2,654 | 2,274 |
Operating income | $2,958 | $2,642 |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2013 | Dec. 20, 2013 | Jun. 18, 2014 | Jan. 31, 2015 | |
Ordinary taxable income distributed as dividends (percentage) | 100.00% | 100.00% | ||||
Capital gain on sale of apartments | $3,500,000 | |||||
South Brunswick property [Member] | ||||||
Capital gain on sale of apartments | 8,700,000 | |||||
Regency Club Acquisition [Member] | ||||||
Acquisition price | 20,625,000 | |||||
Amount tax basis is lower than the acquisition price | $8,000,000 |
Share_repurchases_Details
Share repurchases (Details) (USD $) | 0 Months Ended | ||
Sep. 04, 2014 | Dec. 17, 2013 | Dec. 04, 2013 | |
Share repurchases [Abstract] | |||
Number of shares authorized to repurchase | 100,572 | 24,400 | |
Number of shares repurchased | 20,400 | ||
Shares repurchased, value | $1,855,553 | $357,000 | |
Stock repurchased price (per share) | $18.45 | $17.50 |
Stock_option_plan_Details
Stock option plan (Details) (Employee Stock Option [Member], USD $) | 0 Months Ended | 3 Months Ended |
Sep. 04, 2014 | Jan. 31, 2015 | |
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 | 246,000 | |
Options granted during period | 246,000 | |
Options outstanding end of period | 246,000 | |
Options expected to vest | 238,620 | |
Options exercisable at end of period | ||
Exercise Price | ||
Options outstanding beginning of period | $18.45 | |
Options granted during period | $18.45 | |
Options outstanding end of period | $18.45 | |
Compensation expense related to stock options | $23,000 | |
Unrecognized compensation cost | 431,000 | |
Unrecognized compensation cost, recognition period | 5 years | |
Aggregate intrinsic value of options outstanding | $147,600 |
Deferred_fee_plan_Details
Deferred fee plan (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jan. 31, 2015 | Jan. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Trustee fee expense | $187 | |||
Dividends payable | 2,046 | 2,077 | 2,046 | |
Deferred Fee Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Trustee fee expense | 184 | |||
Deferred trustee fees | 187 | |||
Basis spread on any deferred fee (percentage) | 1.50% | |||
Term of distribution to participants | 10 years | |||
Shares issued | 9,807 | |||
Dividends payable | $3 |
Subsequent_events_Details
Subsequent events (Details) (Subsequent Event [Member], USD $) | Feb. 17, 2015 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Number Of Shares In Tender Offer | 100,000 |
Price Per Share Of Tender Offer | $23 |
Percentage Of Outstanding Shares In Tender Offer | 1.50% |