Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2016 | Mar. 11, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | |
Entity Central Index Key | 36,840 | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Period End Date | Jan. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,726,869 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 218,381 | $ 219,430 |
Construction in progress | 107,946 | 101,415 |
Cash and cash equivalents | 13,148 | 13,500 |
Tenants' security accounts | 1,713 | 1,728 |
Receivables arising from straight-lining of rents, net of allowance for loss in 2015 | 2,581 | 2,604 |
Accounts receivable, net of allowance for doubtful accounts | 1,647 | 2,105 |
Secured loans receivable | 5,451 | 5,451 |
Prepaid expenses and other assets | 3,996 | 4,555 |
Deferred charges, net | 1,296 | 1,327 |
Total Assets | 356,159 | 352,115 |
Liabilities: | ||
Mortgages and construction loan payable | 315,673 | 307,899 |
Less unamortized debt issuance costs | 2,894 | 3,129 |
Mortgages payable, net | 312,779 | 304,770 |
Deferred trustee compensation payable | 9,078 | 9,078 |
Accounts payable and accrued expenses | 7,365 | 10,305 |
Dividends payable | 2,018 | 2,018 |
Tenants' security deposits | 2,600 | 2,561 |
Deferred revenue | 950 | 1,080 |
Interest rate swap contracts | 1,764 | 1,066 |
Total Liabilities | $ 336,554 | $ 330,878 |
Commitments and contingencies | ||
Common equity: | ||
Shares of beneficial interest without par value: 8,000,000 shares authorized; 6,993,152 shares issued; 49,684 and 39,350 vested share units to trustees at January 31, 2016 and October 31, 2015, respectively | $ 26,066 | $ 25,860 |
Treasury stock, at cost: 266,283 shares at January 31, 2016 and at October 31, 2015 | (5,517) | (5,517) |
Dividends in excess of net income | (12,800) | (11,769) |
Accumulated other comprehensive loss | (1,628) | (1,030) |
Total Common Equity | 6,121 | 7,544 |
Noncontrolling interests in subsidiaries | 13,484 | 13,693 |
Total Equity | 19,605 | 21,237 |
Total Liabilities and Equity | $ 356,159 | $ 352,115 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jan. 31, 2016 | Oct. 31, 2015 |
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 | 266,283 | 266,283 |
Vested share units to trustees, issued | 49,684 | 39,350 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Revenue: | ||
Rental income | $ 9,830 | $ 9,681 |
Reimbursements | 1,522 | 1,337 |
Sundry income | 72 | 262 |
Revenue | 11,424 | 11,280 |
Expenses: | ||
Operating expenses | 3,522 | 3,139 |
Management fees | 484 | 486 |
Real estate taxes | 1,965 | 1,953 |
Depreciation | 1,720 | 1,647 |
Expenses | 7,691 | 7,225 |
Operating income | 3,733 | 4,055 |
Investment income | 39 | 40 |
Interest expense including amortization of deferred financing costs | (2,729) | (2,782) |
Net income | 1,043 | 1,313 |
Net income attributable to noncontrolling interests in subsidiaries | (41) | (265) |
Net income attributable to common equity | $ 1,002 | $ 1,048 |
Earnings per share - basic and diluted | $ 0.15 | $ 0.15 |
Weighted average shares outstanding: | ||
Basic and diluted | 6,766 | 6,821 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Net income | $ 1,043 | $ 1,313 |
Other comprehensive income (loss): | ||
Unrealized loss on interest rate swap contracts before reclassifications | (859) | (2,259) |
Amount reclassified from accumulated other comprehensive loss to interest expense | 161 | 110 |
Net unrealized loss on interest rate swap contracts | (698) | (2,149) |
Comprehensive income (loss) | 345 | (836) |
Net income attributable to noncontrolling interests | (41) | (265) |
Other comprehensive income (loss): | ||
Unrealized loss on interest rate swap contract attributable to noncontrolling interests | 100 | 256 |
Comprehensive (income) loss attributable to noncontrolling interests | 59 | (9) |
Comprehensive income (loss) attributable to common equity | $ 404 | $ (845) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF EQUITY - 3 months ended Jan. 31, 2016 - USD ($) $ in Thousands | 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] |
Balance at Oct. 31, 2015 | $ 21,237 | $ 25,860 | $ (5,517) | $ (11,769) | $ (1,030) | $ 7,544 | $ 13,693 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock based compensation expense | 24 | 24 | 24 | ||||
Vested share units granted to Trustees | 182 | 182 | $ 182 | ||||
Distributions to noncontrolling interests | (150) | (150) | |||||
Net income | 1,043 | 1,002 | $ 1,002 | $ 41 | |||
Dividends declared, including $15 payable in share units ($0.30 per share) | (2,033) | (2,033) | (2,033) | ||||
Net unrealized loss on interest rate swaps | (698) | (598) | (598) | $ (100) | |||
Balance at Jan. 31, 2016 | $ 19,605 | $ 26,066 | $ (5,517) | $ (12,800) | $ (1,628) | $ 6,121 | $ 13,484 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) $ in Thousands | 3 Months Ended |
Jan. 31, 2016USD ($)$ / shares | |
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY [Abstract] | |
Stock dividends payable | $ | $ 15 |
Dividends declared, per share | $ / shares | $ 0.30 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Operating activities: | ||
Net income | $ 1,043 | $ 1,313 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,720 | 1,647 |
Amortization | 171 | 159 |
Stock based compensation expense | 24 | 23 |
Trustee fees and related interest payable in stock units | 167 | 187 |
Deferred rents - straight line rent | 23 | 75 |
Bad debt expense | $ 92 | 109 |
Net amortization of acquired leases | 1 | |
Changes in operating assets and liabilities: | ||
Tenants' security accounts | $ 54 | 93 |
Accounts receivable, prepaid expenses and other assets | 879 | (248) |
Accounts payable, accrued expenses and deferred trustee compensation | (279) | 1,343 |
Deferred revenue | (130) | (62) |
Net cash provided by operating activities | 3,764 | 4,640 |
Investing activities: | ||
Capital improvements - existing properties | (604) | (1,057) |
Construction and pre-development costs | (8,538) | (16,449) |
Net cash used in investing activities | (9,142) | (17,506) |
Financing activities: | ||
Repayment of mortgages and construction loan | $ (1,032) | (1,001) |
Repayment of credit line | (5,000) | |
Proceeds from mortgage loan refinancing | 16,200 | |
Proceeds from construction loan | $ 8,231 | 15,193 |
Deferred financing costs | (5) | (318) |
Dividends paid | (2,018) | (2,049) |
Distributions to noncontrolling interests | (150) | (300) |
Net cash provided by financing activities | 5,026 | 22,725 |
Net increase (decrease) in cash and cash equivalents | (352) | 9,859 |
Cash and cash equivalents, beginning of period | 13,500 | 10,554 |
Cash and cash equivalents, end of period | 13,148 | 20,413 |
Supplemental disclosure of cash flow data: | ||
Interest paid, net of amounts capitalized | 2,745 | 2,571 |
Investing activities: | ||
Accrued capital expenditures, construction costs, pre-development costs and interest | 2,273 | 5,226 |
Financing activities: | ||
Dividends declared but not paid | 2,018 | 2,046 |
Dividends paid in share units | $ 15 | $ 3 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Jan. 31, 2016 | |
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 the three-month period ended January 31, 2016 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, 2015 of First Real Estate Investment Trust of New Jersey (FREIT). |
Recently issued accounting stan
Recently issued accounting standards | 3 Months Ended |
Jan. 31, 2016 | |
Recently issued accounting standards [Abstract] | |
Recently issued accounting standards | Note 2 Recently issued accounting standards: In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In February 2015, the FASB issued ASU No. 2015-02, " Amendments to the Consolidation Analysis" |
Earnings per share
Earnings per share | 3 Months Ended |
Jan. 31, 2016 | |
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 14) outstanding during each period (denominator). The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional shares that would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options, were issued during the period using the Treasury Stock method. Under the Treasury Stock method, the assumption is that the proceeds received upon exercise of the options, including the unrecognized stock option compensation expense attributed to future services, are used to repurchase FREIT's 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, 2016 and 2015, the outstanding stock options were anti-dilutive with no impact on diluted earnings per share. |
Interest rate swap contracts
Interest rate swap contracts | 3 Months Ended |
Jan. 31, 2016 | |
Interest rate swap contracts [Abstract] | |
Interest rate swap contracts | Note 4 - Interest rate swap contract s : On December 26, 2012, Damascus Centre, LLC refinanced its $ 15 25 18.9 million wa s outstanding as of January 31, 2016 . The loan will mature on January 3, 2023. In connection t herewith, 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 , 20 16 , the derivative financial instrument had a notional amount of approximately $ 18.9 million 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 $ 16.2 125 3.75 At January 31 , 20 16 , the derivative financial instrument has a notional amount of approximately $ 16.2 million and a current maturity date of December 2024 . In 698,000 $ 1,311,000 453,000 2,149,000 1,581,000 945,000 121,000 |
Property held for sale
Property held for sale | 3 Months Ended |
Jan. 31, 2016 | |
Property held for sale [Abstract] | |
Property held for sale | Note 5 Property held for sale: On January 11, 2016, FREIT was notified by Lakeland Bank (as successor by merger to Pascack Community Bank) of its election and exercise of the option to purchase the property leased by FREIT to Lakeland Bank located in Rochelle Park, New Jersey having a carrying amount of approximately $ 2.3 3 241,000 |
Capitalized interest
Capitalized interest | 3 Months Ended |
Jan. 31, 2016 | |
Capitalized interest [Abstract] | |
Capitalized interest | Note 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 period ended January 31, 2016 and 2015 amounted to approximately $ 811,000 $ 421 ,000 |
Management agreement, fees and
Management agreement, fees and transactions with related party | 3 Months Ended |
Jan. 31, 2016 | |
Management agreement, fees and transactions with related party [Abstract] | |
Management agreement, fees and transactions with related party | Note 7 - 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 office building at The Rotunda 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 $ 458,000 460,000 152,000 69,000 FREIT also 49,000 45,000 From time 270,000 482,000 Mr. $ 128,000 and $ 132 ,000 $ 17,000 and $ 16 ,000 Rotunda 100, LLC and Damascus 100, LLC own the minority interests in Grande Rotunda, LLC and Damascus Centre, LLC, respectively. Rotunda 100, LLC owns a 40 30 60 70 |
Mortgage financings
Mortgage financings | 3 Months Ended |
Jan. 31, 2016 | |
Mortgage financings [Abstract] | |
Mortgage financings | Note 8 Mortgage financings : The original Rotunda acquisition loan for $ 22.5 19.5 120 4 225 $ 100.8 8.8 19 $ 81.8 On December 29, 2014, FREIT Regency, LLC closed on a $ 16.2 125 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 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 were used to pay off the $ 5 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 long-term debt
Fair value of long-term debt | 3 Months Ended |
Jan. 31, 2016 | |
Fair value of long-term debt [Abstract] | |
Fair value of long-term debt | Note 9 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 , 2016 and October 31, 2015: (in Millions) January 31, 2016 October 31, 2015 Fair Value $323.0 $313.5 Carrying Value $312.8 $304.8 Fair values are estimated based on market interest rates at January 31 , 2016 and October 31, 2015 and on discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value is based on observable inputs(level 2 in the fair value hierarchy as provided by authoritative guidance). |
Segment information
Segment information | 3 Months Ended |
Jan. 31, 2016 | |
Segment information [Abstract] | |
Segment information | Note 10 - Segment information: FREIT has determined that it has two 10 7 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), 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 GAAP, and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income attributable to common equity for the three-month periods ended January 31, 2016 and 2015. Asset information is not reported since FREIT does not use this measure to assess performance. Three Months Ended January 31, 2016 2015 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 5,925 $ 5,744 Residential 5,522 5,612 Total real estate revenue 11,447 11,356 Real estate operating expenses: Commercial 2,799 2,432 Residential 2,701 2,654 Total real estate operating expenses 5,500 5,086 Net operating income: Commercial 3,126 3,312 Residential 2,821 2,958 Total net operating income $ 5,947 $ 6,270 Recurring capital improvements- residential $ (314 ) $ (86 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 5,947 $ 6,270 Deferred rents - straight lining (23 ) (75 ) Amortization of acquired leases (1 ) Investment income 39 40 General and administrative expenses (471 ) (492 ) Depreciation (1,720 ) (1,647 ) Financing costs (2,729 ) (2,782 ) Net income 1,043 1,313 Net income attributable to noncontrolling interests (41 ) (265 ) Net income attributable to common equity $ 1,002 $ 1,048 |
Income taxes
Income taxes | 3 Months Ended |
Jan. 31, 2016 | |
Income taxes [Abstract] | |
Income taxes | Note 11 Income taxes: FREIT distributed as dividends to its shareholders 100 100 As of January 31, 2016, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2012 remain open to examination by the major taxing jurisdictions to which FREIT is subject. |
Share repurchases
Share repurchases | 3 Months Ended |
Jan. 31, 2016 | |
Share repurchases [Abstract] | |
Share repurchases | Note 12 Share repurchases : On February 17, 2015, FREIT announced a tender offer to purchase up to 100,000 94,302 23.00 2,168,946 |
Stock option plan
Stock option plan | 3 Months Ended |
Jan. 31, 2016 | |
Stock option plan [Abstract] | |
Stock option plan | Note 13 Stock option plan : On 246,000 18.45 5 10 The following table summarizes stock option activity for the three-month period ended January 31, 2016 : Three Months Ended January 31, 2016 No. of Options Exercise Outstanding Price Options outstanding beginning of period 243,900 $ 18.45 Options granted during period Options forfeited/cancelled during period (500 ) $ 18.45 Options outstanding end of period 243,400 $ 18.45 Options expected to vest 238,620 Options exercisable at end of period 48,680 $ 24 ,000 and $ 23 $ 337,000 There was no aggregate intrinsic value of options expected to vest and options exercisable at January 31, 2016 as the exercise price was higher than the market value of the shares of beneficial interest. |
Deferred fee plan
Deferred fee plan | 3 Months Ended |
Jan. 31, 2016 | |
Deferred fee plan [Abstract] | |
Deferred fee plan | Note 14 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 10 182,200 187,000 10,334 9,807 For the three-month periods ended January 31, 2016 and 2015, FREIT has charged $ 167,500 184,000 14,700 3,000 |
Fair value of long-term debt (T
Fair value of long-term debt (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Fair value of long-term debt [Abstract] | |
Schedule of estimated fair value and carrying value of long-term debt | (in Millions) January 31, 2016 October 31, 2015 Fair Value $323.0 $313.5 Carrying Value $312.8 $304.8 |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Segment information [Abstract] | |
Schedule of segment and related information | Three Months Ended January 31, 2016 2015 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 5,925 $ 5,744 Residential 5,522 5,612 Total real estate revenue 11,447 11,356 Real estate operating expenses: Commercial 2,799 2,432 Residential 2,701 2,654 Total real estate operating expenses 5,500 5,086 Net operating income: Commercial 3,126 3,312 Residential 2,821 2,958 Total net operating income $ 5,947 $ 6,270 Recurring capital improvements- residential $ (314 ) $ (86 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 5,947 $ 6,270 Deferred rents - straight lining (23 ) (75 ) Amortization of acquired leases (1 ) Investment income 39 40 General and administrative expenses (471 ) (492 ) Depreciation (1,720 ) (1,647 ) Financing costs (2,729 ) (2,782 ) Net income 1,043 1,313 Net income attributable to noncontrolling interests (41 ) (265 ) Net income attributable to common equity $ 1,002 $ 1,048 |
Stock option plan (Tables)
Stock option plan (Tables) | 3 Months Ended |
Jan. 31, 2016 | |
Stock option plan [Abstract] | |
Schedule of Stock Option Activity | Three Months Ended January 31, 2016 No. of Options Exercise Outstanding Price Options outstanding beginning of period 243,900 $ 18.45 Options granted during period Options forfeited/cancelled during period (500 ) $ 18.45 Options outstanding end of period 243,400 $ 18.45 Options expected to vest 238,620 Options exercisable at end of period 48,680 |
Interest rate swap contracts (D
Interest rate swap contracts (Details) - USD ($) | Dec. 26, 2012 | Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 |
Amount drawn on loan | $ 315,673,000 | $ 307,899,000 | ||
Unrealized loss on derivatives | 698,000 | $ (2,149,000) | 1,581,000 | |
Interest rate swap contract liabilities | 1,764,000 | 1,066,000 | ||
Regency Swap [Member] | ||||
Interest rate swap contract liabilities | 1,311,000 | 945,000 | ||
Damascus Centre Swap [Member] | ||||
Interest rate swap contract liabilities | 453,000 | 121,000 | ||
Construction Loan [Member] | ||||
Refinanced loan amount | $ 15,000,000 | |||
Loan amount | 25,000,000 | $ 25,000,000 | ||
Amount drawn on loan | 18,900,000 | |||
Notional amount of interest rate swap | $ 18,900,000 | |||
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% |
Property held for sale (Details
Property held for sale (Details) - Lakeland Bank Property [Member] - USD ($) | 3 Months Ended | |
Jan. 31, 2016 | Oct. 31, 2015 | |
Real Estate Properties [Line Items] | ||
Rental properties | $ 2,300,000 | $ 2,300,000 |
Maximum purchase price of property | 3,000,000 | |
Lost annual rents due to sale of property | $ 241,000 |
Capitalized interest (Details)
Capitalized interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Capitalized interest [Abstract] | ||
Interest capitalized | $ 811,000 | $ 421,000 |
Management agreement, fees an29
Management agreement, fees and transactions with related party (Details) - USD ($) | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Asset management fees | $ 484,000 | $ 486,000 | |
Trustee fees and related interest payable in stock units | 182,000 | ||
Secured loans receivable | $ 5,451,000 | $ 5,451,000 | |
Grande Rotunda, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership by noncontrolling owners (percentage) | 40.00% | 40.00% | |
Ownership by parent (percentage) | 60.00% | 60.00% | |
Damascus Centre, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership by noncontrolling owners (percentage) | 30.00% | 30.00% | |
Ownership by parent (percentage) | 70.00% | 70.00% | |
Managing Agent Hekemian & Co [Member] | |||
Related Party Transaction [Line Items] | |||
Asset management fees | $ 458,000 | 460,000 | |
Leasing commissions and reimbursement of operating expenses | 152,000 | 69,000 | |
Insurance commissions | 49,000 | 45,000 | |
Robert S. Hekemian [Member] | |||
Related Party Transaction [Line Items] | |||
Trustee fees and related interest payable in stock units | 128,000 | 132,000 | |
Robert S. Hekemian, Jr. [Member] | |||
Related Party Transaction [Line Items] | |||
Trustee fees and related interest payable in stock units | 17,000 | 16,000 | |
Hekemian and Resources [Member] | |||
Related Party Transaction [Line Items] | |||
Redevelopment fees | $ 270,000 | $ 482,000 |
Mortgage financings (Details)
Mortgage financings (Details) - USD ($) | Dec. 26, 2012 | Feb. 01, 2010 | Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 |
Debt Instrument [Line Items] | |||||
Amount drawn on loan | $ 315,673,000 | $ 307,899,000 | |||
Construction and pre-development costs | 8,538,000 | $ 16,449,000 | |||
Proceeds from construction loan | 8,231,000 | $ 15,193,000 | |||
Notes Payable, Other Payables [Member] | Baltimore, MD [Member] | |||||
Debt Instrument [Line Items] | |||||
Construction and pre-development costs | 81,800,000 | ||||
Line of credit | 100,800,000 | ||||
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 | $ 25,000,000 | |||
Amount drawn on loan | $ 18,900,000 | ||||
Construction Loan [Member] | Baltimore, MD [Member] | |||||
Debt Instrument [Line Items] | |||||
Refinanced loan amount | $ 19,500,000 | ||||
Basis points, interest rate | 2.25% | ||||
Loan amount | $ 22,500,000 | $ 120,000,000 | |||
Term of the loan | 4 years |
Fair value of long-term debt (D
Fair value of long-term debt (Details) - USD ($) $ in Thousands | Jan. 31, 2016 | Oct. 31, 2015 |
Fair value of long-term debt [Abstract] | ||
Fair value of long-term debt | $ 323,000 | $ 313,500 |
Carrying value of long-term debt | $ 312,779 | $ 304,770 |
Segment information (Details)
Segment information (Details) $ in Thousands | 3 Months Ended | |
Jan. 31, 2016USD ($)propertiessegments | Jan. 31, 2015USD ($) | |
Reportable Segments | ||
Real estate rental revenue | $ 11,424 | $ 11,280 |
Real estate operating expenses | 7,691 | 7,225 |
Operating income | 3,733 | 4,055 |
Reconciliation to consolidated net income: | ||
Segment NOI | 5,947 | 6,270 |
Deferred rents - straight lining | $ (23) | (75) |
Amortization of acquired leases | (1) | |
Investment income | $ 39 | 40 |
General and administrative expenses | (471) | (492) |
Depreciation | (1,720) | (1,647) |
Financing costs | (2,729) | (2,782) |
Net income | 1,043 | 1,313 |
Net income attributable to noncontrolling interests | (41) | (265) |
Net income attributable to common equity | $ 1,002 | 1,048 |
Number of reportable segments | segments | 2 | |
Operating Segments [Member] | ||
Reportable Segments | ||
Real estate rental revenue | $ 11,447 | 11,356 |
Real estate operating expenses | 5,500 | 5,086 |
Operating income | $ 5,947 | 6,270 |
Commercial [Member] | ||
Reconciliation to consolidated net income: | ||
Number of properties | properties | 10 | |
Commercial [Member] | Operating Segments [Member] | ||
Reportable Segments | ||
Real estate rental revenue | $ 5,925 | 5,744 |
Real estate operating expenses | 2,799 | 2,432 |
Operating income | 3,126 | 3,312 |
Residential [Member] | ||
Reportable Segments | ||
Recurring capital improvements | $ (314) | (86) |
Reconciliation to consolidated net income: | ||
Number of properties | properties | 7 | |
Residential [Member] | Operating Segments [Member] | ||
Reportable Segments | ||
Real estate rental revenue | $ 5,522 | 5,612 |
Real estate operating expenses | 2,701 | 2,654 |
Operating income | $ 2,821 | $ 2,958 |
Income taxes (Details)
Income taxes (Details) | 12 Months Ended |
Oct. 31, 2015 | |
Income taxes [Abstract] | |
Ordinary taxable income distributed as dividends (percentage) | 100.00% |
Share repurchases (Details)
Share repurchases (Details) | Feb. 17, 2015USD ($)$ / sharesshares |
Share repurchases [Abstract] | |
Number of shares authorized to repurchase | 100,000 |
Number of shares repurchased | 94,302 |
Stock repurchased price (per share) | $ / shares | $ 23 |
Shares repurchased, value | $ | $ 2,168,946 |
Stock option plan (Details)
Stock option plan (Details) - Employee Stock Option [Member] - USD ($) | Sep. 04, 2014 | Jan. 31, 2016 | Jan. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan term | 10 years | ||
Vesting term | 5 years | ||
No. of Options Outstanding | |||
Options outstanding beginning of period | 243,900 | ||
Options granted during period | 246,000 | ||
Options forfeited/cancelled during the period | (500) | ||
Options outstanding end of period | 243,400 | ||
Options expected to vest | 238,620 | ||
Options exercisable at end of period | 48,680 | ||
Exercise Price | |||
Options outstanding beginning of period | $ 18.45 | ||
Options granted during period | $ 18.45 | ||
Options forfeited/cancelled during period | $ 18.45 | ||
Options outstanding end of period | $ 18.45 | ||
Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: | |||
Compensation expense related to stock options | $ 24,000 | $ 23,000 | |
Unrecognized compensation cost | $ 337,000 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 3 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Oct. 31, 2015 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Trustee fee expense | $ 182,000 | ||
Dividends payable | 2,018,000 | $ 2,046,000 | $ 2,018,000 |
Deferred Fee Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Trustee fee expense | 167,500 | 184,000 | |
Deferred trustee fees | $ 182,200 | $ 187,000 | |
Basis spread on any deferred fee (percentage) | 1.50% | ||
Term of distribution to participants | 10 years | ||
Shares issued | 10,334 | 9,807 | |
Dividends payable | $ 14,700 | $ 3,000 |