Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Jan. 21, 2020 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | ||
Entity Central Index Key | 0000036840 | ||
Document Type | 10-K | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Oct. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --10-31 | ||
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 Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 95 | ||
Entity Common Stock, Shares Outstanding | 6,787,540 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Name | NJ | ||
Entity File Number | 000-25043 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2019 | Oct. 31, 2018 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 330,108 | $ 344,532 |
Construction in progress | 395 | 159 |
Cash and cash equivalents | 38,075 | 21,747 |
Tenants' security accounts | 2,278 | 2,212 |
Receivables arising from straight-lining of rents | 4,374 | 3,964 |
Accounts receivable, net of allowance for doubtful accounts of $379 and $276 as of October 31, 2019 and 2018, respectively | 1,741 | 1,436 |
Secured loans receivable | 5,053 | 4,862 |
Prepaid expenses and other assets | 5,951 | 6,034 |
Deferred charges, net | 2,643 | 2,693 |
Interest rate cap and swap contracts | 4,434 | |
Total Assets | 390,618 | 392,073 |
Liabilities: | ||
Mortgages payable | 352,790 | 350,504 |
Less unamortized debt issuance costs | 2,886 | 3,498 |
Mortgages payable, net (Note 5) | 349,904 | 347,006 |
Due to affiliate | 5,705 | 5,417 |
Deferred trustee compensation payable | 7,610 | 8,457 |
Accounts payable and accrued expenses | 3,097 | 1,910 |
Dividends payable | 1,357 | 338 |
Tenants' security deposits | 3,381 | 3,232 |
Deferred revenue | 1,390 | 1,369 |
Interest rate swap contract | 2,126 | |
Total Liabilities | 374,570 | 367,729 |
Commitments and contingencies (Note 7) | ||
Common equity: | ||
Shares of beneficial interest without par value: 8,000,000 shares authorized; 6,993,152 shares issued plus 192,122 and 157,395 vested share units granted to Trustees at October 31, 2019 and 2018, respectively | 28,847 | 28,288 |
Treasury stock, at cost: 206,408 and 235,536 shares at October 31, 2019 and 2018, respectively | (4,330) | (4,941) |
Dividends in excess of net income | (6,762) | (4,376) |
Accumulated other comprehensive (loss) income | (2,040) | 2,517 |
Total Common Equity | 15,715 | 21,488 |
Noncontrolling interests in subsidiaries | 333 | 2,856 |
Total Equity | 16,048 | 24,344 |
Total Liabilities and Equity | $ 390,618 | $ 392,073 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2019 | Oct. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 379 | $ 276 |
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 |
Vested share units to trustees, issued | 192,122 | 157,395 |
Treasury stock at cost, shares | 206,408 | 235,536 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Revenue: | |||
Rental income | $ 53,326 | $ 51,267 | $ 45,357 |
Reimbursements | 6,429 | 6,093 | 5,597 |
Sundry income | 522 | 637 | 680 |
Total revenue | 60,277 | 57,997 | 51,634 |
Expenses: | |||
Operating expenses | 17,917 | 16,245 | 15,848 |
Lease termination fee | 620 | ||
Management fees | 2,603 | 2,547 | 2,375 |
Real estate taxes | 9,591 | 8,396 | 10,139 |
Depreciation | 11,339 | 11,515 | 10,669 |
Total expenses | 41,450 | 38,703 | 39,651 |
Operating income | 18,827 | 19,294 | 11,983 |
Investment income | 360 | 267 | 206 |
Unrealized (loss) gain on interest rate cap contract | (160) | 72 | |
Gain on sale of property | 836 | 15,395 | |
Loan prepayment costs relating to property sale | (1,139) | ||
Interest expense including amortization of deferred financing costs | (18,070) | (18,667) | (15,762) |
Net income | 1,793 | 966 | 10,683 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (6) | 517 | 2,433 |
Net income attributable to common equity | $ 1,787 | $ 1,483 | $ 13,116 |
Earnings per share - basic and diluted: | $ 0.26 | $ 0.21 | $ 1.92 |
Weighted average shares outstanding: | |||
Basic and diluted | 6,940 | 6,883 | 6,833 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,793 | $ 966 | $ 10,683 |
Other comprehensive (loss) income: | |||
Unrealized (loss) gain on interest rate swap contracts before reclassifications | (6,081) | 3,043 | 2,424 |
Amount reclassified from accumulated other comprehensive income to interest expense | (319) | 70 | 528 |
Net unrealized (loss) gain on interest rate swap contracts | (6,400) | 3,113 | 2,952 |
Comprehensive (loss) income | (4,607) | 4,079 | 13,635 |
Net (income) loss attributable to noncontrolling interests | (6) | 517 | 2,433 |
Other comprehensive income (loss): | |||
Unrealized loss (gain) on interest rate swap contracts attributable to noncontrolling interests | 1,843 | (880) | (978) |
Comprehensive income (loss) attributable to noncontrolling interests | 1,837 | (363) | 1,455 |
Comprehensive (loss) income attributable to common equity | $ (2,770) | $ 3,716 | $ 15,090 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Shares of Beneficial Interest [Member] | Treasury Stock at Cost [Member] | Dividends in Excess of Net Income [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Common Equity [Member] | Noncontrolling Interests [Member] | Total | |
Balance at Oct. 31, 2016 | $ 26,713 | $ (5,273) | $ (16,916) | $ (1,690) | $ 2,834 | $ 12,627 | $ 15,461 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock based compensation expense | 122 | 122 | 122 | |||||
Vested share units granted to Trustees | 816 | 816 | 816 | |||||
Distributions to noncontrolling interests | (420) | (420) | ||||||
Net income (loss) | 13,116 | 13,116 | (2,433) | 10,683 | ||||
Dividends declared, including $13, $21 and $106 payable in share units in 2017, 2018 and 2019, respectively ($0.15, $0.15 and $0.60per share) | (1,024) | (1,024) | (1,024) | |||||
Net unrealized gain (loss) on interest rate swaps | 1,974 | 1,974 | 978 | 2,952 | ||||
Balance at Oct. 31, 2017 | 27,651 | (5,273) | (4,824) | 284 | 17,838 | 10,752 | 28,590 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock based compensation expense | 130 | 130 | 130 | |||||
Vested share units granted to Trustees and consultant | 839 | 839 | 839 | |||||
Vested share units issued to consultant and retired Trustee | [1] | (332) | 332 | |||||
Distributions to noncontrolling interests | (8,259) | (8,259) | ||||||
Net income (loss) | 1,483 | 1,483 | (517) | 966 | ||||
Dividends declared, including $13, $21 and $106 payable in share units in 2017, 2018 and 2019, respectively ($0.15, $0.15 and $0.60per share) | (1,035) | (1,035) | (1,035) | |||||
Net unrealized gain (loss) on interest rate swaps | 2,233 | 2,233 | 880 | 3,113 | ||||
Balance at Oct. 31, 2018 | 28,288 | (4,941) | (4,376) | 2,517 | 21,488 | 2,856 | 24,344 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock based compensation expense | 124 | 124 | 124 | |||||
Vested share units granted to Trustees and consultant | 1,046 | 1,046 | 1,046 | |||||
Vested share units issued to consultant and retired Trustee | [1] | (611) | 611 | |||||
Distributions to noncontrolling interests | (686) | (686) | ||||||
Net income (loss) | 1,787 | 1,787 | 6 | 1,793 | ||||
Dividends declared, including $13, $21 and $106 payable in share units in 2017, 2018 and 2019, respectively ($0.15, $0.15 and $0.60per share) | (4,173) | (4,173) | (4,173) | |||||
Net unrealized gain (loss) on interest rate swaps | (4,557) | (4,557) | (1,843) | (6,400) | ||||
Balance at Oct. 31, 2019 | $ 28,847 | $ (4,330) | $ (6,762) | $ (2,040) | $ 15,715 | $ 333 | $ 16,048 | |
[1] | Represents the issuance of treasury shares to consultant and retired Trustee(s) for share units earned. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, per share | $ 0.60 | $ 0.15 | $ 0.15 |
Stock dividends payable | $ 106 | $ 21 | $ 13 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Operating activities: | |||
Net income | $ 1,793 | $ 966 | $ 10,683 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 11,339 | 11,515 | 10,669 |
Amortization | 1,750 | 1,789 | 1,932 |
Unrealized loss (gain) on interest rate cap contract | 160 | (72) | |
Stock based compensation expense | 124 | 130 | 122 |
Trustee fees, consultant fee and related interest paid in stock units | 940 | 818 | 803 |
Gain on sale of property | (836) | (15,395) | |
Deferred rents - straight line rent | (410) | (605) | (634) |
Bad debt expense | 263 | 198 | 196 |
Changes in operating assets and liabilities: | |||
Tenants' security accounts | 149 | 272 | 142 |
Accounts receivable, prepaid expenses and other assets | (1,537) | (371) | (4,160) |
Accounts payable, accrued expenses and deferred trustee compensation | 64 | (1,808) | (1,021) |
Deferred revenue | 21 | 93 | 142 |
Net cash provided by operating activities | 13,820 | 12,925 | 3,479 |
Investing activities: | |||
Proceeds from sale of property, net | 7,060 | 16,100 | |
Capital improvements - existing properties | (3,087) | (5,335) | (10,058) |
Acquisition of Station Place | (19,550) | ||
Proceeds from payment of secured loans receivable inclusive of accrued interest | 1,870 | ||
Net cash provided by (used in) investing activities | 3,973 | (23,015) | 6,042 |
Financing activities: | |||
Repayment of mortgages and construction loan | (26,529) | (148,680) | (34,254) |
(Repayment of)/proceeds from credit line | (3,121) | 3,121 | |
Proceeds from mortgage loan refinancings | 28,815 | 166,520 | 23,500 |
Proceeds from acquisition mortgage loan | 12,350 | ||
Proceeds from construction loan | 1,349 | ||
Deferred financing costs | (539) | (2,685) | (640) |
Interest rate cap contract cost | (88) | ||
Dividends paid | (3,048) | (676) | (3,033) |
Due to affiliate | 288 | 245 | 5,172 |
Distributions to noncontrolling interests | (686) | (8,259) | (420) |
Net cash (used in) provided by financing activities | (1,699) | 15,606 | (5,205) |
Net increase in cash, cash equivalents and restricted cash | 16,094 | 5,516 | 4,316 |
Cash, cash equivalents and restricted cash, beginning of year | 26,394 | 20,878 | 16,562 |
Cash, cash equivalents and restricted cash, end of year | 42,488 | 26,394 | 20,878 |
Supplemental disclosure of cash flow data: | |||
Interest paid, net of amounts capitalized including $1,139 in loan prepayment costs related to property sale in 2017 | 16,337 | 17,040 | 15,160 |
Investing activities: | |||
Accrued capital expenditures, construction costs, pre-development costs and interest | 157 | 82 | 413 |
Financing activities: | |||
Dividends declared but not paid | 1,357 | 338 | |
Dividends paid in share units | $ 106 | $ 21 | $ 13 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | 12 Months Ended |
Oct. 31, 2017USD ($) | |
Statement of Cash Flows [Abstract] | |
Loan prepayment costs relating to property sale | $ 1,139 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation of Cash Reported in Balance Sheet) - USD ($) $ in Thousands | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheet: | |||
Cash and cash equivalents | $ 38,075 | $ 21,747 | $ 7,899 |
Tenants' security accounts | 2,278 | 2,212 | 2,007 |
Qualified intermediary deposit | 6,965 | ||
Mortgage escrows (included in prepaid expenses and other assets) | 2,135 | 2,435 | 4,007 |
Total cash, cash equivalents and restricted cash | $ 42,488 | $ 26,394 | $ 20,878 |
Organization and significant ac
Organization and significant accounting policies | 12 Months Ended |
Oct. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [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. Recently issued accounting standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers On November 1, 2018, FREIT adopted ASU No. 2014-09 using the modified retrospective approach. Since FREIT’s primary source of revenue is operating leases, which fall under the scope of “ Leases, Topic 840 Leases, Topic 842 In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 840) Targeted Improvements (the “Practical Expedient Amendment”) In June 2016, the FASB issued ASU No. 2016-13 " Financial Instruments – Credit Losses (Topic 326) In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU 2017-01, “ Business Combinations: Clarifying the Definition of a Business In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging ("ASC 815") The SEC's Disclosure Update and Simplification rule (Release 33-10532) amends the interim financial statement requirements to require a reconciliation of changes in stockholders' equity in the notes or as a separate statement. This analysis should reconcile the beginning balance to the ending balance of each caption in stockholders' equity for each period for which an income statement is required to be filed and comply with the remaining content requirements of Rule 3-04 of Regulation S-X. As a result, registrants will have to provide the reconciliation for both the year-to-date and quarterly periods and comparable periods in Form 10-Q but only for the year-to-date periods in registration statements. The rule does not prescribe the format of the presentation as long as the appropriate periods are provided. Per a Compliance and Disclosure Interpretation (Q 105.09, Exchange Act Forms, 10-Q), "The amendments are effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendments and proximity of effectiveness to the filing date for most filers' quarterly reports, the staff would not object if the filer's first presentation of the changes in shareholders' equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments." This essentially made the requirements effective for the Company's first quarter 2019 filing. FREIT has adopted this guidance in the first quarter of Fiscal 2019 by presenting a reconciliation of changes in stockholders’ equity for the current and prior period as a separate statement. 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 Entity % Ownership Year 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 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 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. Reclassification: Certain prior year balance sheet accounts have been reclassified to conform to the current year presentation. Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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. 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. In the event of a postponement, 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, 2019, 2018 and 2017, there were no impairments of long-lived assets. Deferred charges: Deferred charges consist of leasing commissions which are amortized on the straight-line method over the terms of the applicable leases. Debt issuance costs: Debt issuance 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 $1,139,000, $1,050,000 and $1,298,000 in 2019, 2018 and 2017, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. 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 increases in real estate taxes, Consumer Price Indices, common area maintenance charges and percentage of tenants' sales in excess of specified volumes. These additional rentals are generally included in income when reported to FREIT when earned, or ratably over the appropriate period. Interest rate cap and swap contracts: 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 sheets and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as effective cash flow hedges, are reported in other comprehensive income. Changes in fair value of those instruments, which do not qualify as effective cash flow hedges for accounting purposes, are reported in the statement of income (see Note 6 to FREIT’s consolidated financial statements). Advertising: FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $281,000, $296,000 and $386,000 in 2019, 2018 and 2017, respectively. Stock-based compensation: FREIT has a stock-based compensation plan that was approved by FREIT’s Board of Trustees (the “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 10 to FREIT’s consolidated financial statements). Stock-based awards to nonemployees are accounted for based on the fair value of the equity instruments on the vesting date. |
Property dispositions
Property dispositions | 12 Months Ended |
Oct. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property dispositions | Note 2 – Property dispositions: On June 12, 2017, FREIT sold its Hammel Gardens property, a residential property located in Maywood, New Jersey, for a sale price of $17 million. The sale of this property, which had a carrying value of approximately $0.7 million, resulted in a capital gain of approximately $15.4 million net of sales fees and commissions. As a result of this sale, FREIT incurred a loan prepayment cost of approximately $1.1 million and paid off the related mortgage on the Hammel Gardens property in the amount of approximately $8 million from the proceeds of the sale. 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 $15.4 million capital gain. The net proceeds from this sale, which were approximately $7 million, were held in escrow until a replacement property was purchased. A replacement property to complete this like-kind exchange was acquired on December 7, 2017, and the sale proceeds held in escrow were applied to the purchase price of such property (See Note 3 to FREIT’s consolidated financials for further details). On February 8, 2019, FREIT sold a commercial building, formerly occupied as a Pathmark supermarket in Patchogue, New York for a sales price of $7.5 million. The sale of this property, which had a carrying value of approximately $6.2 million, resulted in a gain of approximately $0.8 million net of sales fees and commissions. Net cash proceeds of approximately $2 million were realized after paying off the related mortgage on this property in the amount of approximately $5.2 million. FREIT distributed and paid approximately $676,000 of this gain by way of a one-time special dividend in connection with and in anticipation of the closing of the sale of the Patchogue property of $0.10 per share. The sale of this property eliminates an operating loss of approximately $0.8 million ($0.12 per share) incurred, annually, since Pathmark vacated the building in December 2015. As the disposal of the Hammel Gardens and Patchogue properties did not represent a strategic shift that would have a major impact on FREIT’s operations or financial results, the properties’ operations were not reflected as discontinued operations in the accompanying consolidated financial statements. |
Property acquisition
Property acquisition | 12 Months Ended |
Oct. 31, 2019 | |
Real Estate [Abstract] | |
Property acquisition | Note 3 – Property acquisition: On December 7, 2017, FREIT completed the acquisition of Station Place, a residential apartment complex consisting of one building with 45 units, located in Red Bank, New Jersey through Station Place on Monmouth, LLC (FREIT’s 100% owned consolidated subsidiary). FREIT identified Station Place as the replacement property for the Hammel Gardens property located in Maywood, New Jersey that FREIT sold on June 12, 2017, which completed the like-kind exchange pursuant to Section 1031 of the Internal Revenue Code. (See Note 2 to FREIT’s consolidated financial statements). Station Place is part of FREIT’s residential segment. The acquisition cost was $19,550,000 (inclusive of approximately $550,000 of transaction costs capitalized as part of the asset acquisition), which was funded in part with $7 million in net proceeds from the sale of the Hammel Gardens property, and the remaining balance of $12,350,000 (inclusive of the transaction costs) was funded by Station Place on Monmouth, LLC through long-term financing for this property from Provident Bank. The acquisition cost of $19.6 million has been allocated as follows: $10.8 million to the building and $8.8 million to the land. |
Real estate
Real estate | 12 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Real estate | Note 4 - Real estate: Real estate consists of the following: Range of Estimated October 31, Useful Lives 2019 2018 (In Thousands of Dollars) Land $ 84,097 $ 86,225 Unimproved land 405 405 Apartment buildings 7-40 years 202,486 201,793 Commercial buildings/shopping centers 5-40 years 159,186 165,986 Equipment/Furniture 5-15 years 2,297 2,090 Total real estate, gross 448,471 456,499 Less: accumulated depreciation 118,363 111,967 Total real estate, net $ 330,108 $ 344,532 |
Mortgages payable and credit li
Mortgages payable and credit line | 12 Months Ended |
Oct. 31, 2019 | |
Debt Disclosure [Abstract] | |
Mortgages payable and credit line | Note 5 – Mortgages payable and credit line: October 31, 2019 October 31, 2018 Principal Unamortized Principal Unamortized (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 15,615 $ 51 $ 16,152 $ 80 Westwood, NJ (B) 18,973 103 19,611 134 Patchogue, NY (C) — — 5,231 15 Wayne, NJ (D) 28,815 475 17,334 18 River Edge, NJ (E) 10,021 70 10,243 87 Red Bank, NJ (F) 12,350 123 12,350 138 Westwood, NJ (G) 19,617 34 20,134 67 Wayne, NJ (H) 23,737 240 24,432 274 Hackensack, NJ (I) 48,000 509 48,000 572 Damascus, MD (J) 19,354 231 19,865 296 Middletown, NY (K) 15,588 170 15,922 203 Total fixed rate 212,070 2,006 209,274 1,884 Frederick, MD (L) 22,200 28 22,710 70 Baltimore, MD (M) 118,520 800 118,520 1,439 Line of credit - Provident Bank (N) — 52 — 105 Total variable rate 140,720 880 141,230 1,614 Total $ 352,790 $ 2,886 $ 350,504 $ 3,498 (A) 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, New Jersey having a net book value of approximately $15,276,000 as of October 31, 2019. (B) 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, New Jersey having a net book value of approximately $7,121,000 as of October 31, 2019. (C) The loan, modified effective January 1, 2016, was reduced to interest only payments based on a rate of 4.5% resulting in monthly payments of approximately $19,600. This loan became due on March 1, 2018 and operated under the same terms and conditions of the then existing agreement until the property was sold on February 8, 2019. A portion of the proceeds from the sale were used to pay-off the $5.2 million then outstanding balance plus accrued interest and fees. (D) On August 26, 2019, Berdan Court, LLC (“Berdan Court”), (owned 100% by FREIT), refinanced its $17 million loan (which matured on September 1, 2019) with the lender in the amount of $28,815,000. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 6.09% to a fixed rate of 3.54% and (ii) net refinancing proceeds of approximately $11.6 million which can be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,622,000 as of October 31, 2019. (E) On November 19, 2013, FREIT refinanced mortgage loans scheduled to mature on December 1, 2013 with a new mortgage loan in the amount of $11,200,000 payable in monthly installments of $57,456 including interest at 4.54% through December 1, 2023 at which time the outstanding balance is due. The mortgage is secured by an apartment building in River Edge, New Jersey having a net book value of approximately $755,000 as of October 31, 2019. (F) On December 7, 2017, Station Place on Monmouth, LLC (owned 100% by FREIT) closed on a mortgage loan in the amount of $12,350,000 held by Provident Bank to purchase the Station Place property in Red Bank, New Jersey (see Note 3 to FREIT’s consolidated financial statements). Interest-only payments are required each month for the first two years of the term and thereafter, principal payments plus accrued interest will be required each month through maturity. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. In order to minimize interest rate volatility during the term of the loan, Station Place on Monmouth, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swap.) The mortgage is secured by an apartment building in Red Bank, New Jersey having a net book value of approximately $19,035,000 as of October 31, 2019. On January 21, 2019, Station Place on Monmouth, LLC entered into a modification agreement with Provident Bank. The material terms of the modification were: (i) FREIT guarantees $2,350,000 of the outstanding principal balance of the loan; and (ii) the loan’s Debt Service Coverage Ratio (“DSCR”) covenants are reduced to a single test that will be tested semi-annually (commencing with the six-month period ending April 30, 2019) and require a DSCR of 1.2 / 1.0 based on actual debt service. Prior to this modification, the loan’s DSCR covenants were calculated using the greater of the actual debt service or other hypothetical debt service measures, as provided in the loan agreement, that were to be tested quarterly. As previously disclosed in FREIT’s current report on Form 8-K filed with the SEC on January 24, 2019, Station Place had not been in compliance with the loan covenants as of October 31, 2018, and the modification waives all previous non-compliance. If the DSCR should fall below 1.2 / 1.0, Provident Bank, at its discretion, may require a current appraisal of the Station Place property. If the loan balance exceeds 85% loan-to-value (“L-T-V”) based on the appraised value, Station Place may be required to resize the loan to bring the L-T-V into compliance by paying down the outstanding principal balance of the loan, posting a letter of credit, or providing additional collateral to Provident Bank. As of October 31, 2019, Station Place was in compliance with this covenant. (G) 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, New Jersey having a net book value of approximately $8,934,000 as of October 31, 2019. (H) On September 29, 2016, Wayne PSC, LLC refinanced its $24,200,000 mortgage loan held by Metropolitan Life Insurance Company, with a new mortgage loan from People’s United Bank in the amount of $25,800,000. The new loan bears a floating interest rate equal to 220 basis points over the one-month BBA LIBOR with a maturity date of October 1, 2026. In order to minimize interest rate volatility during the term of the loan, Wayne PSC, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 3.625% over the term of the loan. This refinancing resulted in: (i) a reduction in interest rate from 6.04% to 3.625% and (ii) net refinancing proceeds of approximately $1 million that were distributed to the partners in Wayne PSC, LLC with FREIT receiving $0.4 million based on it 40% membership interest in Wayne PSC, LLC. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swap.) The mortgage is secured by a shopping center in Wayne, New Jersey having a net book value of approximately $24,787,000 as of October 31, 2019 including approximately $0.4 million classified as construction in progress. (I) On January 8, 2018, Pierre Towers, (which is owned by S And A Commercial Associates Limited Partnership (“S&A”), a consolidated subsidiary of FREIT), refinanced its $29.1 million loan held by State Farm with a new mortgage loan from New York Life Insurance in the amount of $48 million. Pierre Towers paid New York Life Insurance a good faith deposit in the amount of $960,000 which was reimbursed by New York Life when the loan closed in January 2018. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 5.38% to a fixed rate of 3.88%; and (ii) net refinancing proceeds of approximately $17.2 million (after giving effect to a $1.2 million loan prepayment cost to pay-off the loan held by State Farm) that were distributed to the partners in S&A with FREIT receiving approximately $11.2 million, based on its 65% membership interest in S&A, which can be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of $155,200 each month through January 2023. Thereafter, monthly installments of principal plus interest totaling $225,851 will be required each month until January 2028 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Hackensack, New Jersey having a net book value of approximately $36,661,000 as of October 31, 2019. (J) On December 26, 2012, Damascus Centre, LLC refinanced its construction loan with long-term financing provided by People’s United Bank and the first tranche of the new loan was taken down in the amount of $20 million. Based on leasing and net operating income at the shopping center, People’s United Bank agreed to a take down of the second tranche of this loan on April 22, 2016 in the amount of $2,320,000, of which approximately $470,000 was readily available and the remaining $1,850,000 was held in escrow. In July 2018, these funds totaling $1,850,000 were released from escrow by the bank and became readily available to Damascus Centre, LLC. Damascus Centre, LLC distributed amounts due to FREIT and certain members of Damascus 100. The loan has a maturity date of January 3, 2023 and bears a floating interest rate equal to 210 points over the one-month BBA LIBOR. In order to minimize interest rate volatility during the term of this loan, Damascus Centre, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate on each tranche of this loan, resulting in a fixed rate of 3.81% over the term of the first tranche of this loan and a fixed rate of 3.53% over the term of the second tranche of this loan. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swaps.) The shopping center securing the loan has a net book value of approximately $26,136,000 as of October 31, 2019. (K) On December 29, 2014, FREIT Regency, LLC closed on a $16.2 million mortgage loan with Provident Bank. The 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 had been required each month through December 15, 2017 and 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. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swap.) The mortgage is secured by an apartment complex in Middletown, New York having a net book value of $18,735,000 as of October 31, 2019. (L) On April 28, 2017, WestFREIT, Corp. (owned 100% by FREIT), refinanced its $22 million mortgage loan held by Wells Fargo Bank, with a new mortgage loan from Manufacturer’s and Traders Trust Company in the amount of $23.5 million. The new loan had a floating interest rate equal to 275 basis points over the one-month LIBOR and had a maturity date of April 28, 2019 with the option to extend for 12 months. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 5.55% to a variable rate and (ii) net refinancing proceeds of approximately $1.1 million which have been used for general corporate purposes. The loan was payable in monthly installments of interest (as defined above) plus principal of $43,250 through May 2018 and principal of $45,250 from June 2018 through May 2019 at which time the outstanding balance became due. On April 3, 2019, WestFREIT, Corp. exercised its option to extend its loan held by M&T Bank, with a then outstanding balance of approximately $22.5 million, for twelve months. Effective beginning on June 1, 2019, the extension of this loan requires monthly principal payments of $47,250 plus interest based on a floating interest rate equal to 240 basis points over the one-month LIBOR and has a maturity date of May 1, 2020. The mortgage is secured by a retail building in Frederick, Maryland having a net book value of approximately $13,398,000 as of October 31, 2019. (M) The original Rotunda acquisition loan for $22.5 million, which was subsequently reduced to $19.5 million on February 1, 2010, was acquired by FREIT on May 28, 2013. FREIT subsequently sold this loan to Wells Fargo Bank. On December 9, 2013, Grande Rotunda, LLC, a consolidated subsidiary, closed with Wells Fargo Bank on a construction loan of up to $120 million to be used to redevelop and expand the Rotunda property in Baltimore, Maryland with a term of four (4) years, with one twelve-month extension, at a rate of 225 basis points over the monthly LIBOR. On November 23, 2016, the following terms and conditions of this loan were modified: (i) the total amount that could have been drawn on this loan was decreased from $120 million to $116.1 million, allowing for an additional draw of $2.1 million over the then existing balance of approximately $114 million to be used for retail tenant improvements and leasing commissions; (ii) leasing benchmarks were no longer required to be met including the waiver of the leasing benchmarks FREIT was not in compliance with as of June 30, 2016; (iii) Grande Rotunda, LLC provided an interest reserve to Wells Fargo Bank in the amount of $2 million for the purpose of funding interest payments, and was obliged to replenish the account balance to $1 million if it should fall below $500,000; (iv) the maturity date of the loan was changed from December 31, 2017 to October 31, 2017 with no option to extend; and (v) the interest rate on the amount outstanding on the loan was increased by 25 basis points to 250 basis points over the monthly LIBOR. The following terms and conditions of this loan were modified and effective as of October 31, 2017: (i) the maturity date of the loan was extended 120 days from October 31, 2017 to February 28, 2018; (ii) the interest rate on the amount outstanding on the loan was increased by 35 basis points to 285 basis points over the monthly LIBOR through December 31, 2017; and (iii) the interest rate on the amount outstanding on the loan was increased by 65 basis points to 315 basis points over the monthly LIBOR from January 1, 2018 through February 28, 2018. On February 7, 2018, Grande Rotunda, LLC refinanced its $115.3 million construction loan held by Wells Fargo with a new loan held by Aareal Capital Corporation in the amount of approximately $118.5 million with additional funding available for retail tenant improvements and leasing costs in the amount of $3,380,000. This refinancing paid off the loan previously held by Wells Fargo, funded loan closing costs and paid the amount due to Hekemian Development Resources for a development fee of $900,000 plus accrued interest of approximately $45,000 (See Note 8 to FREIT’s consolidated financial statements for further details on this fee). This loan bears a floating interest rate at 285 basis points over the one-month LIBOR rate and has a maturity date of February 6, 2021 with two one-year renewal options. As part of this transaction, Grande Rotunda, LLC purchased an interest rate cap on LIBOR for the full amount that can be drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for the first two years of this loan. As of October 31, 2019, approximately $118.5 million of this loan facility was drawn down and the interest rate was approximately 4.84%. The loan is secured by the Rotunda property, which has a net book value of approximately $151,130,000 as of October 31, 2019. (N) Credit line: On October 27, 2017, FREIT’s revolving line of credit provided by the Provident Bank was renewed for a three-year term ending on October 27, 2020 at which point no further advances shall be permitted and provided the line of credit is not renewed by the lender, the outstanding principal balance of the line of credit shall convert to a commercial term loan maturing on October 31, 2022. Draws against the credit line can be used for working capital needs and standby letters of credit. Draws against the credit line are secured by mortgages on FREIT’s Franklin Crossing Shopping Center in Franklin Lakes, New Jersey and retail space in Glen Rock, New Jersey. The total line of credit was increased from $12.8 million to $13 million and the interest rate on the amount outstanding will be at a floating rate of 275 basis points over the 30-day LIBOR with a floor of 3.75%. During Fiscal 2017, FREIT utilized $3 million of its credit line to fund tenant improvements for new retail tenants at the Rotunda property. In February 2018, FREIT repaid the line of credit in the amount of $3.1 million. As of October 31, 2019 and 2018, there was no amount outstanding and $13 million was available under the line of credit. Certain of the Company’s mortgage loans and the Credit Line contain financial covenants. The Company was in compliance with all of its financial covenants as of October 31, 2019. Fair value of long-term debt: The following table shows the estimated fair value and carrying value of FREIT’s long-term debt, net at October 31, 2019 and 2018: October 31, October 31, ($ in Millions) 2019 2018 Fair Value $352.9 $338.3 Carrying Value, Net $349.9 $347.0 Fair values are estimated based on market interest rates at the end of each fiscal year and on a discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value is based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2019 are as follows: Year Ending October 31, Amount 2020 $ 25,638 2021 $ 141,018 (a) 2022 $ 17,388 2023 $ 36,878 2024 $ 11,378 (a) Includes Rotunda loan in the amount of approximately $118.5 million refinanced with Aareal Capital Corporation on February 7, 2018. (See Note 5(M)) |
Interest rate cap and swap cont
Interest rate cap and swap contracts | 12 Months Ended |
Oct. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate swap contracts | Note 6 - Interest rate cap and swap contracts: On February 7, 2018, Grande Rotunda, LLC, a consolidated subsidiary, refinanced its $115.3 million construction loan held by Wells Fargo with a new loan held by Aareal Capital Corporation in the amount of approximately $118.5 million with additional funding available for retail tenant improvements and leasing costs in the amount of $3,380,000. This loan bears a floating interest rate at 285 basis points over the one-month LIBOR rate and has a maturity date of February 6, 2021. At October 31, 2019, the total amount outstanding on this loan was approximately $118.5 million. As part of this transaction, Grande Rotunda, LLC purchased an interest rate cap on LIBOR for the full amount that can be drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for the first two years of this loan. At October 31, 2019, the derivative financial instrument has a notional amount of $121.9 million and a maturity date of March 5, 2020. On December 7, 2017, Station Place on Monmouth, LLC (owned 100% by FREIT) closed on a $12,350,000 mortgage loan with Provident Bank. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. At October 31, 2019, the total amount outstanding on this loan was $12,350,000. In order to minimize interest rate volatility during the term of this loan, Station Place on Monmouth, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. At October 31, 2019, the derivative financial instrument has a notional amount of $12,350,000 and a maturity date of December 2027. On September 29, 2016, Wayne PSC, LLC, a consolidated subsidiary, refinanced its $24.2 million mortgage loan held by Metropolitan Life Insurance Company, with a new mortgage loan from People’s United Bank in the amount of $25.8 million. The new loan bears a floating interest rate equal to 220 basis points over the one-month BBA LIBOR with a maturity date of October 1, 2026. At October 31, 2019, the total amount outstanding on this loan was approximately $23.7 million. In order to minimize interest rate volatility during the term of the loan, Wayne PSC, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 3.625% over the term of the loan. At October 31, 2019, the derivative financial instrument has a notional amount of approximately $23.8 million and a maturity date of October 2026. On December 26, 2012, Damascus Centre, LLC refinanced its construction loan with long-term financing provided by People’s United Bank and the first tranche of the new loan was taken down in the amount of $20 million. Based on leasing and net operating income at the shopping center, People’s United Bank agreed to a take-down of the second tranche of this loan on April 22, 2016 in the amount of $2,320,000. The total amount outstanding for both tranches of this loan held with People’s United Bank as of October 31, 2019 was approximately $19.4 million. The loan has a maturity date of January 3, 2023 and bears a floating interest rate equal to 210 basis points over the one-month BBA LIBOR. In order to minimize interest rate volatility during the term of this loan, Damascus Centre, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate on each tranche of this loan, resulting in a fixed rate of 3.81% over the term of the first tranche of this loan and a fixed rate of 3.53% over the term of the second tranche of this loan. At October 31, 2019, the derivative financial instrument has a notional amount of approximately $19.4 million and a maturity date of January 2023. On December 29, 2014, FREIT Regency, LLC closed on a $16.2 million mortgage loan with Provident Bank. The 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. At October 31, 2019, the total amount outstanding on this loan was approximately $15.6 million. 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 October 31, 2019, the derivative financial instrument has a notional amount of approximately $15.6 million and a maturity date of December 2024. In accordance with ASC 815, “ Accounting for Derivative Instruments and Hedging Activities The Grande Rotunda, LLC interest rate cap is, for accounting purposes, an ineffective cash flow hedge with a corresponding gain or loss being recorded in FREIT’s income statement. For the year ended October 31, 2019, FREIT recorded an unrealized loss in the consolidated statement of income of approximately $160,000 for the Grande Rotunda, LLC interest rate cap representing the change in the fair value of this ineffective cash flow hedge during such period with a corresponding asset of approximately $0 as of October 31, 2019. For the year ended October 31, 2018, FREIT recorded an unrealized gain in the consolidated statement of income of approximately $72,000 for the Grande Rotunda, LLC interest rate cap representing the change in the fair value of this ineffective cash flow hedge during such period with a corresponding asset of approximately $160,000 as of October 31, 2018. The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 7 - Commitments and contingencies: Leases: Commercial tenants: FREIT leases commercial space having a net book value of approximately $143 million at October 31, 2019 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, 2019 is as follows: Year Ending October 31, Amount 2020 $ 20,055 2021 18,911 2022 15,624 2023 12,993 2024 10,838 Thereafter 46,412 Total $ 124,833 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. 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, 2019 were not material. Residential tenants: Lease terms for residential tenants are usually one to two years. 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. FREIT acquired the Westwood Plaza property in 1988, and the property has not experienced any flooding that gave rise to any claims under FREIT’s flood insurance in this time period. Within the last twelve months, FREIT has conducted environmental audits for all of its properties. The environmental reports secured by FREIT have not revealed any environmental conditions on its properties, which require any further 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 has obtained lead-free interior certifications with respect to all properties that were found to contain LBP, certifying that such properties contain no LBP on the interior surfaces. 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 material adverse effect upon the capital expenditures, revenues, earnings, financial condition or competitive position of FREIT. |
Management agreement, fees and
Management agreement, fees and transactions with related party | 12 Months Ended |
Oct. 31, 2019 | |
Related Party Transactions [Abstract] | |
Management agreement, fees and transactions with related party | Note 8 - 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, 2019 for a two-year term which will expire on October 31, 2021. The Management Agreement automatically renews for successive periods of two years unless either party gives not less than six (6) months prior notice of non-renewal. 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. However, FREIT may retain other managing agents to manage 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 property acquisition advisor to 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. 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, charged to operations, were approximately $2,549,000, $2,438,000, and $2,216,000 in Fiscal 2019, 2018 and 2017, 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 commissions and reimbursements amounted to approximately $762,000, $742,000 and $1,191,000 in Fiscal 2019, 2018 and 2017, respectively. Total Hekemian management fees outstanding at October 31, 2019 and 2018 were approximately $219,000 and $212,000, 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 were charged to operations and amounted to approximately $196,000, $178,000 and $175,000 in Fiscal 2019, 2018 and 2017, respectively. The Management Agreement was amended on January 14, 2020. See Note 15 – Subsequent Events – Amendment to Management Agreement. 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. Grande Rotunda, LLC owns and operates the Rotunda property. FREIT owns a 60% equity interest in Grande Rotunda, LLC and Rotunda 100, LLC (“Rotunda 100”) owns a 40% equity interest in Grande Rotunda, LLC. The equity owners of Rotunda 100 and Damascus 100 are principally employees of Hekemian. To incentivize the employees of Hekemian, FREIT advanced, only to employees of Hekemian, up to 50% of the amount of the equity contributions that the Hekemian employees were required to invest in Rotunda 100 and Damascus 100. These advances were in the form of secured loans that bear interest at rates that float at 225 basis points over the ninety (90) day LIBOR, as adjusted each November 1, February 1, May 1 and August 1. These loans are secured by the Hekemian employees’ interests in Rotunda 100 and Damascus 100, and are full recourse loans. Interest only payments are required to be made when billed. 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 Rotunda, LLC. These payments shall be applied first to accrued and unpaid interest and then any outstanding principal. The notes originally had maturity dates at the earlier of (a) ten (10) years after issue (Grande Rotunda, LLC– 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 and interest 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. On June 4, 2015, the Board approved an extension of the maturity date of the secured loans to occur the earlier of (a) June 19, 2018 or (b) five days after the closing of a permanent mortgage loan secured by the Rotunda property. On December 7, 2017, the Board approved a further extension of the maturity dates of these loans to the date or dates upon which distributions of cash are made by Grande Rotunda, LLC to its members as a result of a refinancing or sale of Grande Rotunda, LLC or the Rotunda property. In the fourth quarter of Fiscal 2018, the Damascus 100 members repaid their secured notes outstanding in full for a total payment of $1,870,000 which was composed of principal in the amount of $1,451,000 and accrued interest in the amount of approximately $419,000. As of October 31, 2019 and 2018, only the principal and accrued interest on the secured notes receivable with Rotunda 100 members was outstanding. As such, the aggregate outstanding principal balance of the notes was $4,000,000 at both October 31, 2019 and 2018. The accrued but unpaid interest related to these notes for Fiscal 2019 and Fiscal 2018 amounted to approximately $1,053,000 and $862,000, respectively, and is included in secured loans receivable on the accompanying consolidated balance sheets. With regard to the funding of the Rotunda redevelopment project, Wells Fargo Bank, a previous lender, required that Grande Rotunda, LLC contribute not less than $14,460,000 towards the construction before any construction loan proceeds could be disbursed. To secure these funds, Grande Rotunda, LLC made a capital call on its members, which are FREIT and Rotunda 100. FREIT’s share (60%) amounted to approximately $8.7 million, and the Rotunda 100 members’ share (40%) amounted to approximately $5.8 million. FREIT, pursuant to previous agreements, made secured loans to the Rotunda 100 members of approximately $2.1 million towards their share of the $5.8 million capital call, which were in addition to the loans that FREIT made to the Rotunda 100 members in connection with their initial equity contribution to Rotunda 100 (described above). 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. As of October 31, 2019, FREIT and Rotunda 100 have made their required capital 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 contributions as additional investments in Grande Rotunda, LLC. In Fiscal 2017, Grande Rotunda, LLC incurred substantial expenditures at the Rotunda property related to retail tenant improvements, leasing costs and operating expenditures which, in the aggregate, exceeded revenues as the property was still in the rent up phase and the construction loan previously held with Wells Fargo was at its maximum level resulting in no additional funding available to draw. Accordingly, during Fiscal 2017 the equity owners in Grande Rotunda, LLC (FREIT with a 60% ownership and Rotunda 100 with a 40% ownership) contributed their respective pro-rata share of any cash needs through loans to Grande Rotunda, LLC. As of October 31, 2019 and 2018, Rotunda 100, LLC has funded Grande Rotunda, LLC with approximately $5.7 million and $5.4 million (including interest), respectively, which is included in “Due to affiliate” on the accompanying consolidated balance sheets. From time to time, FREIT engages Hekemian to provide 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. Such fees incurred during Fiscal 2019, 2018 and 2017 were $275,000, $1,195,000 and $467,500, respectively. Fees incurred during Fiscal 2019 related to commissions to Hekemian for the following: $131,250 for the sale of the Patchogue property; $144,075 for the refinancing of the Berdan Court, LLC loan. Fees incurred during Fiscal 2018 related to commissions to Hekemian for the following: $522,500 for the purchase of the Station Place property; $400,000 for the refinancing of the Grande Rotunda, LLC loan; $240,000 for the refinancing of the Pierre Towers, LLC loan; $32,500 for the renewal of FREIT’s line of credit. Fees incurred in Fiscal 2017 related to commissions to Hekemian relating to the sale of the Hammel Gardens property. In Fiscal 2007, FREIT’s Board of Trustees approved and FREIT executed a development fee agreement for the Rotunda redevelopment project for the development services to be provided by Hekemian Development Resources, LLC (“Resources”), a wholly-owned subsidiary of Hekemian. The development fee agreement, as amended, for the Rotunda provided for Resources to receive a fee equal to 6.375% of the development costs as defined in the development agreement, less the amount of $3 million previously paid to Hekemian for the Rotunda project. As part of this agreement, 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 redevelopment project. Grande Rotunda, LLC paid $500,000 of this fee to Resources in Fiscal 2013 and the balance of $900,000 became due upon the issuance of a certificate of occupancy for the multi-family portion of this project. A final certificate of occupancy was issued in Fiscal 2016; however, Resources agreed to defer the payment of the $900,000 balance of this fee. Grande Rotunda, LLC paid the $900,000 portion of this fee to Resources in February 2018 in connection with the refinancing of the Wells Fargo construction loan for the Rotunda property with a new loan from Aareal Capital Corporation. Additionally, Grande Rotunda, LLC paid Resources the amount of approximately $45,000 representing a mutually agreed upon amount of interest on the $900,000 portion of the fee for the period during which Hekemian Resources had agreed to defer payment thereof. Robert S. Hekemian, the Chairman of the Board and Chief Executive Officer of Hekemian, is the former Chairman and Chief Executive Officer of FREIT. Mr. Hekemian retired as Chairman and Chief Executive Officer of FREIT effective upon the conclusion of FREIT’s 2018 Annual Meeting of Shareholders held on April 5, 2018 (the “2018 Annual Meeting”). Robert S. Hekemian, Jr., the President of Hekemian, is a Trustee of FREIT, and succeeded Robert S. Hekemian as Chief Executive Officer of FREIT effective upon the conclusion of the 2018 Annual Meeting. David Hekemian, a Principal of Hekemian, was elected as a Trustee of FREIT at the 2018 Annual Meeting. On February 7, 2019, Donald W. Barney retired and resigned as President, Chief Financial Officer, Treasurer and a Trustee of FREIT. The Board of Trustees appointed Allan Tubin, the Chief Financial Officer of Hekemian, as the Chief Financial Officer and Treasurer of the Trust and Robert S. Hekemian, Jr. as President of the Trust. As a result, Robert S. Hekemian, Jr. holds the offices of both Chief Executive Officer and President of FREIT. Trustee fee expense (including interest and dividends) incurred by FREIT for Fiscal 2019, 2018 and 2017 was approximately $214,000, $365,000 and $538,000, respectively, for Robert S. Hekemian, $381,000, $149,000 and $65,000, respectively, for Robert S. Hekemian, Jr., $22,000, $0 and $0, respectively, for Allan Tubin and $56,000, $26,000 and $0, respectively, for David Hekemian. (See Note 11 to FREIT’s consolidated financial statements). Pursuant to the terms of a Consulting Agreement between Robert S. Hekemian and the Trust, Mr. Hekemian served the Trust in a consulting capacity effective April 5, 2018 through December 2019. The Consulting Agreement obliged Mr. Hekemian to provide advice and consultation with respect to matters pertaining to FREIT and its subsidiaries, affiliates, assets and business for no fewer than 30 hours per month during the term of the agreement. FREIT paid Mr. Hekemian a consulting fee of $5,000 per month during the term of the Consulting Agreement, which was payable in the form of Shares on a quarterly basis (i.e. in quarterly installments of $15,000). The number of Shares to be issued for each quarterly installment of the consulting fee was determined by dividing the dollar amount of the consulting fee by the closing price of one Share on the OTC Pink Open Market as of the close of trading on the last trading day of the calendar quarter with respect to which such consulting fee was payable. For Fiscal 2019 and 2018, consulting fee expense for Robert S. Hekemian was approximately $60,000 and $34,200, respectively. |
Income taxes
Income taxes | 12 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 9 - Income taxes: FREIT intends to distribute 100% of its ordinary taxable income to its shareholders as dividends for the fiscal year ended October 31, 2019. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income was recorded in FREIT’s consolidated financial statements. There was no ordinary taxable income for the fiscal years ended October 31, 2018 and 2017 for FREIT to distribute to its shareholders. As described in Notes 2 and 3 to FREIT’s consolidated financial statements, FREIT completed a like-kind exchange with respect to the sale of the Hammel Gardens property in Maywood, New Jersey, which was sold on June 12, 2017 resulting in a capital gain of approximately $15.4 million. The tax basis of Station Place in Red Bank, New Jersey, which was the replacement property in the like-kind exchange, was approximately $18.9 million lower than the acquisition cost of approximately $19.6 million recorded for financial reporting purposes. Accordingly, no provision for federal or state income taxes related to such gain was recorded in FREIT’s consolidated financial statements for the fiscal years ended October 31, 2018 and 2017. As of October 31, 2019, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2016 remain open to examination by the major taxing jurisdictions to which FREIT is subject. |
Equity incentive plan
Equity incentive plan | 12 Months Ended |
Oct. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity incentive plan | Note 10 - 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. On April 5, 2018, FREIT shareholders approved amendments to the Plan to (a) increase the number of shares reserved for issuance thereunder by an additional 300,000 shares and (b) further extend the term of the Plan from September 10, 2018 to September 10, 2028. As of October 31, 2019, 442,060 shares are available for issuance under the Plan. On September 4, 2014, the Board approved the grant of an aggregate 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, fully vested on September 3, 2019 and will expire 10 years from the date of grant, which will be September 3, 2024. On November 10, 2016, the Board approved the grant of an aggregate of 38,000 non-qualified share options under the Plan to two members of the Board who were appointed to the Board during Fiscal 2016. The options have an exercise price of $21.00 per share, will vest in equal annual installments over a 5-year period and will expire 10 years from the date of grant, which will be November 9, 2026. On May 3, 2018, the Board approved the grant of an aggregate of 38,000 non-qualified share options under the Plan to two members of the Board who were appointed to the Board during Fiscal 2018. The options have an exercise price of $15.50 per share, will vest in equal annual installments over a 5-year period and will expire 10 years from the date of grant, which will be May 2, 2028. On March 4, 2019, the Board approved the grant of an aggregate of 5,000 non-qualified share options under the Plan to the Chairman of the Board. The options have an exercise price of $15.00 per share, will vest in equal annual installments over a 5-year period and will expire 10 years from the date of grant, which will be March 3, 2029. The following table summarizes stock option activity for Fiscal 2019: Year Ended October 31, 2019 No. of Options Exercise Outstanding Price Options outstanding at beginning of year 305,780 $ 18.40 Options granted during year 5,000 15.00 Options forfeited/cancelled during year (40 ) 18.45 Options outstanding at end of year 310,740 $ 18.35 Options vested and expected to vest 308,310 Options exercisable at end of year 260,140 The estimated fair value of options granted during Fiscal 2019 was $2.43 per option. Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: · Expected volatility – 27.69% · Risk-free interest rate – 2.72% · Imputed option life – 6.3 years · Expected dividend yield – 3.82% The estimated fair value of options granted during Fiscal 2018 was $2.09 per option. Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: · Expected volatility – 27.6% · Risk-free interest rate – 2.94% · Imputed option life – 6.6 years · Expected dividend yield – 4.7% 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 was 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 was 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 was based on the Company’s historical dividend yield, exclusive of capital gain dividends. The fair value is based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). For Fiscal 2019, 2018 and 2017, compensation expense related to stock options granted amounted to $124,000, $130,000 and $122,000, respectively. At October 31, 2019, there was approximately $117,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately 3.1 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at October 31, 2019 was approximately $77,100 and $13,600, respectively. |
Deferred fee plan
Deferred fee plan | 12 Months Ended |
Oct. 31, 2019 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred fee plan | Note 11 - 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. Prior to the amendments to the Deferred Fee Plan that went into effect November 1, 2014 (described in the following paragraph), amounts deferred under the Deferred Fee Plan accrued interest at a rate of 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. 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 credited to a participant’s account will be determined by the closing price of FREIT shares on the date as set forth in the Deferred Fee Plan. All fees payable to Trustees for the year ended October 31, 2019 were deferred under the Deferred Fee Plan except for fees payable to one Trustee, who elected to receive such fees in cash. All fees payable to Trustees for the year ended October 31, 2018 were deferred under the Deferred Fee Plan except for the fees payable to three Trustees, who elected to receive such fees in cash. As a result of the amendment to the Deferred Fee Plan described above, for the years ended October 31, 2019 and 2018, the aggregate amounts of deferred Trustee fees together with related interest and dividends were approximately $986,000 and $805,800, respectively, which have been paid through the issuance of 60,148 and 51,109, vested FREIT share units, respectively, based on the closing price of FREIT shares on the dates as set forth in the Deferred Fee Plan. For the years ended October 31, 2019 and 2018, FREIT has charged as expense approximately $879,800 and $784,000, respectively, representing deferred Trustee fees and interest, and the balance of approximately $106,200 and $21,800, respectively, representing dividends payable in respect of share units allocated to Plan participants, has been charged to equity. The Deferred Fee Plan, as amended, provides that cumulative fees together with accrued interest deferred as of November 1, 2014 will be paid in a lump sum or in annual installments over a period not to exceed 10 years, at the election of the Participant. As of October 31, 2019 and 2018, approximately $4,422,000 and $4,881,000, respectively, of fees has been deferred together with accrued interest of approximately $3,188,000 and $3,576,000, respectively. In connection with the termination of Robert S. Hekemian’s service to the Trust under the Consulting Agreement between Mr. Hekemian and the Trust in December 2019, Mr. Hekemian’s accrued plan benefits under the Deferred Fee Plan became payable to him in a single lump sum in the amount of approximately $4.8 million. |
Dividends and earnings per shar
Dividends and earnings per share | 12 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Dividends and earnings per share | Note 12 - Dividends and earnings per share: FREIT declared dividends of approximately $4,173,000 ($0.60 per share), $1,035,000 ($0.15 per share) and $1,024,000 ($0.15 per share) to shareholders of record during Fiscal 2019, 2018 and 2017, respectively. 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 11 to FREIT’s consolidated financial statements) outstanding during each period (denominator). The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional shares that would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options, were issued during the period using the Treasury Stock method. Under the Treasury Stock method, the assumption is that the proceeds received upon exercise of the options, including the unrecognized stock option compensation expense attributable to future services, are used to repurchase FREIT’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 Fiscal 2019, 2018 and 2017, the outstanding stock options were anti-dilutive with no impact on diluted earnings per share. |
Segment information
Segment information | 12 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment information | Note 13 - Segment information: ASC 280-10, " Disclosures about Segments of an Enterprise and Related 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. During the fiscal year ended October 31, 2019, the commercial segment is comprised of eight (8) properties, excluding the land and building formerly occupied as a Pathmark supermarket in Patchogue, New York, which was sold on February 8, 2019 (see Note 2 to FREIT’s consolidated financial statements). During the fiscal years ended October 31, 2018 and 2017, the commercial segment is comprised of nine (9) properties. The residential segment is comprised of eight (8) properties during the fiscal years ended October 31, 2019 and 2018. The residential segment is comprised of seven (7) properties after giving effect to the sale of a property on June 12, 2017 (See Note 2 to FREIT’s consolidated financial statements) during the fiscal year ended October 31, 2017. The accounting policies of the segments are the same as those described in Note 1. 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. 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 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. 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, 2019. Asset information is not reported since FREIT does not use this measure to assess performance. Years Ended October 31, 2019 2018 2017 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 26,692 $ 25,464 $ 24,114 Residential 33,175 31,928 26,886 Total real estate rental revenue 59,867 57,392 51,000 Real estate operating expenses: Commercial 11,694 11,861 11,791 Residential 14,368 13,022 14,442 Total real estate operating expenses 26,062 24,883 26,233 Net operating income: Commercial 14,998 13,603 12,323 Residential 18,807 18,906 12,444 Total net operating income $ 33,805 $ 32,509 $ 24,767 Recurring capital improvements - residential $ (685 ) $ (738 ) $ (798 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 33,805 $ 32,509 $ 24,767 Gain on sale of property 836 — 15,395 Loan prepayment costs relating to property sale — — (1,139 ) Deferred rents - straight lining 410 605 634 Lease termination fee — — (620 ) Investment income 360 267 206 Unrealized (loss) gain on interest rate cap contract (160 ) 72 — General and administrative expenses (4,049 ) (2,305 ) (2,129 ) Depreciation (11,339 ) (11,515 ) (10,669 ) Financing costs (18,070 ) (18,667 ) (15,762 ) Net income 1,793 966 10,683 Net (income) loss attributable to noncontrolling interests (6 ) 517 2,433 Net income attributable to common equity $ 1,787 $ 1,483 $ 13,116 |
Anchor tenant termination and m
Anchor tenant termination and modification of lease | 12 Months Ended |
Oct. 31, 2019 | |
Anchor Tenant Termination And Modification Of Lease | |
Anchor tenant termination fee and modification of lease | Note 14- Anchor tenant termination and modification of lease: FREIT owns and operates an 87,661 square foot shopping center located in Franklin Lakes, New Jersey, the anchor tenant of which is The Stop & Shop Supermarket Company, LLC (“Stop & Shop”). On July 26, 2017, Stop & Shop entered into a lease modification with FREIT whereby the tenant exercised its option to renew the lease for a ten-year period with a right of the tenant to terminate the lease at any time during the fifth year if the store does not meet certain sales volume levels set forth in the modification. This lease modification provided for a $250,000 reduction in annual rent over the renewed term. On January 4, 2017, Macy’s, Inc. announced its intention to close several of its department stores across the United States, including the approximately 81,160 square foot Macy’s anchor store located at the Preakness Shopping Center in Wayne, New Jersey. Wayne PSC, LLC (“Wayne PSC”), a 40% owned consolidated affiliate of FREIT, owns and operates this shopping center in which Macy’s operated its store under a long-term lease and was paying annual rent of approximately $234,000 ($2.88 per square foot) with no future rent escalations for the remaining term and option periods of the lease. On April 25, 2017, Wayne PSC announced it had agreed to a termination of Macy’s lease effective as of April 15, 2017. To terminate the lease and take possession of the space, Wayne PSC paid Macy’s a termination fee of $620,000, which was fully expensed in the second quarter of Fiscal 2017. Wayne PSC expects to re-position this space and re-lease it to a new tenant (or multiple tenants) at market rents, which are currently higher than the rent provided for under the terminated Macy’s lease. FREIT will lose total consolidated rental income, including reimbursements, of approximately $0.2 million until such time as the space is re-leased. FREIT anticipates increased revenue from the space when it is fully re-leased. |
Subsequent events
Subsequent events | 12 Months Ended |
Oct. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent events | Note 15- Subsequent events: Purchase and Sale Agreement: On January 14, 2020, FREIT and certain of its affiliates (collectively, the “Sellers”), entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) with an affiliate of the Kushner Companies (the “Purchaser”), pursuant to which the Sellers will sell to the Purchaser 100% of Sellers’ ownership interests in seven apartment properties held by the Sellers in exchange for the purchase price described therein, subject to the terms and conditions of the Purchase and Sale Agreement. The Purchase and Sale Agreement provides for the sale of the following seven properties: Berdan Court, located in Wayne, New Jersey; The Boulders at Rockaway, located in Rockaway, New Jersey; Pierre Towers, located in Hackensack, New Jersey; The Regency Club, located in Middletown, New York; Station Place, located in Red Bank, New Jersey; Steuben Arms, located in River Edge, New Jersey; and Westwood Hills, located in Westwood, New Jersey. FREIT has a 100% ownership interest in each of these properties, except for (i) Pierre Towers, in which FREIT has a 65% ownership interest, and (ii) Westwood Hills, in which FREIT has a 40% ownership interest. The aggregate purchase price for the 100% ownership interest in each of the properties is $266,500,000, subject to certain adjustments, including reductions for the amount of certain mortgage loans assumed by the Purchaser aggregating approximately $76,815,000. After taking into account FREIT’s 40% ownership interest in Westwood Hills and 65% ownership interest in Pierre Towers, the sale of all seven apartment properties, if consummated, would result in approximately $208,325,000 in total cash consideration paid to FREIT (subject to adjustments), and would be expected to result in a substantial gain to FREIT (as measured on a GAAP basis). In connection with the entry into the Purchase and Sale Agreement, the Purchaser delivered in escrow a deposit in the form of an unconditional, irrevocable letter of credit in the amount of $15,000,000. Such deposit is non-refundable, except in connection with the termination of the Purchase and Sale Agreement in certain circumstances. Pursuant to the Purchase and Sale Agreement, the Purchaser has agreed to assume, subject to lender approval, the outstanding mortgage loans on the Berdan Court and Pierre Towers properties. In the event one or both of such mortgage loans are not assumed, then the Purchase and Sale Agreement will be deemed to be terminated solely as to the property or properties associated with the mortgage loan or loans that are not assumed by the Purchaser, such property or properties will be excluded from the transaction, and the purchase price will be reduced by an amount equal to the amount(s) allocated to such property or properties in the Purchase and Sale Agreement. In addition, if the ownership structure of Pierre Towers is not converted into a tenancy-in-common on or prior to February 28, 2020, then the Purchase and Sale Agreement will be deemed to be terminated solely as to the Pierre Towers property, such property will be excluded from the transaction, and the purchase price will be reduced by an amount equal to the amount allocated to such property in the Purchase and Sale Agreement. Of the $266,500,000 aggregate purchase price, $42,000,000 has been allocated to Berdan Court, and $80,500,000 has been allocated to Pierre Towers. The Purchase and Sale Agreement also provides that The Regency Club may be excluded from the transaction (and the purchase price will be reduced by an amount equal to the amount(s) allocated to such property in the Purchase and Sale Agreement) if certain title matters affecting such property are not adequately addressed. Of the $266,500,000 aggregate purchase price, $27,250,000 has been allocated to The Regency Club. The Board, following the recommendation of the Special Committee of the Board, unanimously approved the Purchase and Sale Agreement and the transactions contemplated thereby. The closing of the transactions contemplated by the Purchase and Sale Agreement is expected to occur in the second calendar quarter of 2020. The closing of the Purchase and Sale Agreement is subject to various conditions, including the approval of the Purchase and Sale Agreement and the transactions contemplated thereby by a majority of the votes cast by the holders of a majority of the outstanding shares of beneficial interest of the Trust (“Shares”) present in person or represented by proxy at a meeting of the Trust’s shareholders. Concurrently with the execution of the Purchase and Sale Agreement, the Trustees of the Trust entered into voting agreements with the Purchaser pursuant to which, among other things, the Trustees agreed to vote an aggregate of 839,839 Shares held by them and over which they have voting control, which represent approximately 12.4% of the issued and outstanding Shares, in favor of the approval of the Purchase and Sale Agreement and the transactions contemplated thereby. The parties’ respective obligations under the Purchase and Sale Agreement are subject to certain additional customary conditions. There is no due diligence or financing contingency. The Purchase and Sale Agreement contains customary termination rights, including the right of either the Sellers or the Purchaser to terminate the agreement if the closing has not occurred on or before June 14, 2020. In the event that the Purchase and Sale Agreement is terminated in certain circumstances, the Trust will be required to pay the Purchaser a termination fee of $3.5 million and/or reimburse the Purchaser for certain out-of-pocket expenses (subject to a cap of $2 million). The Purchase and Sale Agreement contains various representations, warranties and covenants of the parties customary for a transaction of this nature. Until the earlier of the termination of the Purchase and Sale Agreement and the closing of the Purchase and Sale Agreement, the Sellers will conduct their respective businesses with respect to the applicable properties in the ordinary course of business consistent with past practice. The Purchase and Sale Agreement provides that the Trust will convene a meeting of its shareholders for the purpose of approving the Purchase and Sale Agreement and the transactions contemplated thereby. The Purchase and Sale Agreement provides that following the closing of the Purchase and Sale Agreement, the Sellers, on the one hand, and the Purchaser, on the other hand, will indemnify one another for certain liabilities, subject to certain limitations. Amendment to Management Agreement: On January 14, 2020, in connection with entering into the Purchase and Sale Agreement, FREIT and Hekemian entered into a First Amendment to Management Agreement (the “First Amendment”), which amends the Management Agreement dated as of November 1, 2001 between FREIT and Hekemian. The First Amendment will become effective if, and only if, the Plan of Liquidation becomes effective (as described below). The First Amendment provides that upon the closing of any sale or other disposition of FREIT’s entire direct or indirect interest in each real property owned directly or indirectly, in whole or in part, by FREIT (each a “Trust Property”), whether pursuant to the Purchase and Sale Agreement or otherwise in furtherance of the Plan of Liquidation (as described below), (a) the Management Agreement will automatically terminate and be of no further force or effect with respect to such Trust Property and (b) FREIT will pay to Hekemian (i) any and all commissions and fees for management services and reimbursement required to be paid by FREIT pursuant to the Management Agreement in respect of the applicable Trust Property up to the termination date, calculated on a pro rata basis, plus (ii) a termination fee in respect to such Trust Property equal to the product of (x) the Trust’s direct or indirect percentage ownership interest in such Trust Property, multiplied by (y) 1.25, multiplied by (z) one (1) year’s Base Management Fee (as defined in the Management Agreement and First Amendment) in respect of such Trust Property. In addition, the First Amendment amends the Management Agreement to provide that upon the closing of any sale or other disposition of FREIT’s entire direct or indirect interest in each Trust Property, whether pursuant to the Purchase and Sale Agreement or otherwise in furtherance of the Plan of Liquidation, FREIT will pay to Hekemian a sales fee equal to 1.65% of the sales price for such Trust Property (reduced from the existing range of 2.5% to 4.5% in the Management Agreement); provided, however, that in the event that a Trust Property is not wholly owned, directly or indirectly, by FREIT, the sales fee payable to Hekemian will only be payable in respect of FREIT’s percentage ownership share of the applicable Trust Property. The First Amendment provides that the foregoing fees will be paid in lieu of, and will supersede in their entirety, any other payments which otherwise would be payable to Hekemian under the Management Agreement arising out of or attributable to the sale or other disposition of FREIT’s entire direct or indirect interest in each Trust Property or the termination of the Management Agreement in respect of such Trust Property (including, without limitation, any Termination Fee, M&A Termination Fee or Sale of Property Fee under the Management Agreement (each as defined in the Management Agreement)). Adoption of Plan of Liquidation: On January 14, 2020, the Board adopted a Plan of Voluntary Liquidation with respect to FREIT (the “Plan of Liquidation”), which provides for the voluntary dissolution, termination and liquidation of FREIT by the sale, conveyance, transfer or delivery of all of FREIT’s remaining assets in accordance with the terms and conditions of the Plan of Liquidation and the Internal Revenue Code of 1986, as amended, and the Treasury regulations thereunder. The Plan of Liquidation will become effective upon (i) approval by a majority of the votes cast by FREIT’s shareholders present in person or represented by proxy at a duly called meeting of FREIT’s shareholders at which a quorum is present and (ii) the consummation of the transactions contemplated by the Purchase and Sale Agreement. Upon the effectiveness of the Plan of Liquidation and pursuant thereto, FREIT is authorized to sell, or otherwise dispose of, all of FREIT’s remaining assets for cash, notes or such other assets, upon such terms as the Board may deem advisable, and without further approval of FREIT’s shareholders. The Plan of Liquidation provides that the proceeds from sales and dispositions of FREIT’s assets may be utilized to pay or create a reserve fund for the payment of, or otherwise adequately provide for, all of the liabilities and obligations of FREIT, and will pay all expenses incidental to the Plan of Liquidation, including all counsel fees, accountants’ fees, advisory fees and such other fees and taxes as are necessary to effectuate the Plan of Liquidation. In addition, FREIT will distribute the remaining assets of FREIT, either in cash or in kind, to FREIT’s shareholders in cancellation or redemption of their Shares in one or more distributions. The Plan of Liquidation further provides that upon a determination of the Board, FREIT may transfer any remaining assets, including any reserve fund or other cash on hand, and liabilities to a liquidating trust (or other liquidating entity) and simultaneously with such transfer and assignment, shares of beneficial interests in such liquidating trust (or other liquidating entity) will be deemed distributed to each of FREIT’s shareholders. Upon the adoption of the Plan of Liquidation, FREIT will cease reporting on the going concern basis of accounting and reporting, and thereafter will report on the liquidation basis of accounting and reporting. |
Selected quarterly financial da
Selected quarterly financial data (unaudited) | 12 Months Ended |
Oct. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected quarterly financial data (unaudited) | Note 16- Selected quarterly financial data (unaudited): The following summary represents the results of operations for each quarter for the years ended October 31, 2019 and 2018 (in thousands, except per share amounts): 2019: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 14,928 $ 14,786 $ 15,255 $ 15,308 $ 60,277 Expenses 14,493 13,956 (a) 14,990 15,045 58,484 Net income 435 830 265 263 1,793 Net (loss) income attributable to noncontrolling interests in subsidiaries 24 (44 ) (66 ) 80 (6 ) Net income attributable to common equity $ 459 $ 786 $ 199 $ 343 $ 1,787 Earnings per share - basic and diluted $ 0.07 $ 0.11 (a) $ 0.03 $ 0.05 $ 0.26 Dividends declared per share $ 0.15 $ 0.125 $ 0.125 $ 0.20 $ 0.60 2018: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 14,194 $ 14,325 $ 14,631 $ 14,847 $ 57,997 Expenses 15,114 (b) 12,898 (c) 14,520 14,499 57,031 Net income (loss) (920 ) 1,427 111 348 966 Net (income) loss attributable to noncontrolling interests in subsidiaries 563 (312 ) 181 85 517 Net income (loss) attributable to common equity $ (357 ) $ 1,115 $ 292 $ 433 $ 1,483 Earnings (loss) per share - basic and diluted $ (0.05 )(b) $ 0.16 (c) $ 0.04 $ 0.06 $ 0.21 Dividends declared per share $ — $ 0.05 $ 0.05 $ 0.05 $ 0.15 (a) Includes $0.8 million gain on sale of the Patchogue, New York property sold on February 8, 2019. ($0.12 per share) (b) Includes $1.2 million loan prepayment cost related to refinancing of the loan for Pierre Towers, LLC, owned by S And A Commercial Associates Limited Partnership, which is a consolidated subsidiary. ($0.11 per share) (c) Includes $1.5 million in real estate tax refunds and credits related to tax years 2017 through second quarter of Fiscal 2018 at the Icon property, owned by Grande Rotunda, LLC, which is a consolidated subsidiary. ($0.13 per share) |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Oct. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES OCTOBER 31, 2019 (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 Encum- and Improve- Carrying and Accumulated Date of Date Depreciation Description brances Land Improvements Land ments Costs Land Improvements Total (1) Depreciation Construction Acquired is Computed Residential Properties: Steuben Arms, River Edge, NJ $ 10,021 $ 364 $ 1,773 $ - $ 1,501 $ 364 $ 3,274 $ 3,638 $ 2,883 1966 1975 7-40 years Berdan Court, Wayne, NJ 28,815 250 2,206 - 4,779 250 6,985 7,235 5,613 1964 1965 7-40 years Westwood Hills, Westwood, NJ 19,617 3,849 11,546 - 2,808 3,849 14,354 18,203 9,269 1965-70 1994 7-39 years Pierre Towers, Hackensack, NJ 48,000 8,390 37,486 19 9,653 8,409 47,139 55,548 18,887 1970 2004 7-40 years Boulders - Rockaway, NJ 15,615 1,632 - 3,386 15,951 5,018 15,951 20,969 5,744 2005-2006 1963/1964 7-40 years Regency Club - Middletown, NY 15,588 2,833 17,792 - 730 2,833 18,522 21,355 2,620 2003 2014 7-40 years Icon - Baltimore, MD 65,186 5,871 - - 87,726 5,871 87,726 93,597 7,135 2016 2005 7-40 years Station Place - Red Bank, NJ 12,350 8,793 10,757 - 1 8,793 10,758 19,551 516 2015 2017 7-40 years Commercial Properties: Damascus Shopping Center, Damascus, MD 19,354 2,950 6,987 6,296 17,630 9,246 24,617 33,863 7,727 1960's 2003 5-39.5 years Franklin Crossing, Franklin Lakes, NJ - 29 - 3,382 7,444 3,411 7,444 10,855 4,209 1963/75/97 1966 5-39.5 years Glen Rock, NJ - 12 36 - 235 12 271 283 198 1940 1962 5-25 years Westridge Square S/C, Frederick, MD 22,200 9,135 19,159 (1) 4,788 9,134 23,947 33,081 19,683 1986 1992 5-31.5 years Westwood Plaza, Westwood, NJ 18,973 6,889 6,416 - 2,374 6,889 8,790 15,679 8,558 1981 1988 5-31.5 years Preakness S/C, Wayne, NJ 23,737 9,280 24,217 - 2,877 9,280 27,094 36,374 11,873 1955/89/00 2002 5-39.5 years The Rotunda, Baltimore, MD 53,334 10,392 14,634 232 52,858 10,624 67,492 78,116 13,448 1920/2016 2005 5-40 years Land Leased: Rockaway, NJ - 114 - - - 114 - 114 - 1963/1964 Vacant Land: ` Franklin Lakes, NJ - 224 - (156) - 68 - 68 - 1966/93 Wayne, NJ - 286 - - - 286 - 286 - 2002 Rockaway, NJ - 51 - - - 51 - 51 - 1963/1964 $ 352,790 $ 71,344 $ 153,009 $ 13,158 $ 211,355 $ - $ 84,502 $ 364,364 $ 448,866 $ 118,363 (1) Total cost for each property is the same for federal income tax purposes, with the exception of Pierre Towers, the Regency Club, Station Place and the Rotunda properties (Icon and The Rotunda) whose cost for federal income tax purposes is approximately $43.1 million, $13.3 million, $4.2 million and $169.9 million, respectively. Reconciliation of Real Estate and Accumulated Depreciation: 2019 2018 2017 Real estate: Balance, Beginning of year $ 456,658 $ 433,288 $ 429,445 Additions - Buildings and improvements 3,386 4,562 6,602 Disposal - Buildings and improvements (240 ) (742 ) (443 ) Acquisition (Sale) of property (10,938 ) 19,550 (2,316 ) Balance, end of year $ 448,866 $ 456,658 $ 433,288 Accumulated depreciation: Balance, beginning of year $ 111,967 $ 101,194 $ 92,547 Additions - Charged to operating expenses 11,339 11,515 10,667 Disposal - Buildings and improvements (217 ) (742 ) (409 ) Sale of property (4,726 ) — (1,611 ) Balance, end of year $ 118,363 $ 111,967 $ 101,194 |
Organization and significant _2
Organization and significant accounting policies (Policies) | 12 Months Ended |
Oct. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization: | 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. |
Recently issued accounting standards: | Recently issued accounting standards: In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers On November 1, 2018, FREIT adopted ASU No. 2014-09 using the modified retrospective approach. Since FREIT’s primary source of revenue is operating leases, which fall under the scope of “ Leases, Topic 840 Leases, Topic 842 In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842) Leases (Topic 840) Targeted Improvements (the “Practical Expedient Amendment”) In June 2016, the FASB issued ASU No. 2016-13 " Financial Instruments – Credit Losses (Topic 326) In November 2016, the FASB issued ASU No. 2016-18, “ Statement of Cash Flows (Topic 230): Restricted Cash In January 2017, the FASB issued ASU 2017-01, “ Business Combinations: Clarifying the Definition of a Business In August 2017, the FASB issued ASU 2017-12, “ Targeted Improvements to Accounting for Hedging Activities to ASC Topic 815, Derivatives and Hedging ("ASC 815") The SEC's Disclosure Update and Simplification rule (Release 33-10532) amends the interim financial statement requirements to require a reconciliation of changes in stockholders' equity in the notes or as a separate statement. This analysis should reconcile the beginning balance to the ending balance of each caption in stockholders' equity for each period for which an income statement is required to be filed and comply with the remaining content requirements of Rule 3-04 of Regulation S-X. As a result, registrants will have to provide the reconciliation for both the year-to-date and quarterly periods and comparable periods in Form 10-Q but only for the year-to-date periods in registration statements. The rule does not prescribe the format of the presentation as long as the appropriate periods are provided. Per a Compliance and Disclosure Interpretation (Q 105.09, Exchange Act Forms, 10-Q), "The amendments are effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendments and proximity of effectiveness to the filing date for most filers' quarterly reports, the staff would not object if the filer's first presentation of the changes in shareholders' equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments." This essentially made the requirements effective for the Company's first quarter 2019 filing. FREIT has adopted this guidance in the first quarter of Fiscal 2019 by presenting a reconciliation of changes in stockholders’ equity for the current and prior period as a separate statement. |
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 Entity % Ownership Year 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 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 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. |
Reclassification: | Reclassification: Certain prior year balance sheet accounts have been reclassified to conform to the current year presentation. |
Use of estimates: | Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) 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. |
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. In the event of a postponement, 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, 2019, 2018 and 2017, there were no impairments of long-lived assets. |
Deferred charges: | Deferred charges: Deferred charges consist of leasing commissions which are amortized on the straight-line method over the terms of the applicable leases. |
Debt issuance costs: | Debt issuance costs: Debt issuance 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 $1,139,000, $1,050,000 and $1,298,000 in 2019, 2018 and 2017, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. |
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 increases in real estate taxes, Consumer Price Indices, common area maintenance charges and percentage of tenants' sales in excess of specified volumes. These additional rentals are generally included in income when reported to FREIT when earned, or ratably over the appropriate period. |
Interest rate cap and swap contracts: | Interest rate cap and swap contracts: 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 sheets and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as effective cash flow hedges, are reported in other comprehensive income. Changes in fair value of those instruments, which do not qualify as effective cash flow hedges for accounting purposes, are reported in the statement of income (see Note 6 to FREIT’s consolidated financial statements). |
Advertising: | Advertising: FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $281,000, $296,000 and $386,000 in 2019, 2018 and 2017, respectively. |
Stock-based compensation: | Stock-based compensation: FREIT has a stock-based compensation plan that was approved by FREIT’s Board of Trustees (the “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 10 to FREIT’s consolidated financial statements). Stock-based awards to nonemployees are accounted for based on the fair value of the equity instruments on the vesting date. |
Organization and significant _3
Organization and significant accounting policies (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiaries in which FREIT has a controlling financial interest | 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 Entity % Ownership Year 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 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 |
Real estate (Tables)
Real estate (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of real estate and equipment | Real estate consists of the following: Range of Estimated October 31, Useful Lives 2019 2018 (In Thousands of Dollars) Land $ 84,097 $ 86,225 Unimproved land 405 405 Apartment buildings 7-40 years 202,486 201,793 Commercial buildings/shopping centers 5-40 years 159,186 165,986 Equipment/Furniture 5-15 years 2,297 2,090 Total real estate, gross 448,471 456,499 Less: accumulated depreciation 118,363 111,967 Total real estate, net $ 330,108 $ 344,532 |
Mortgages payable and credit _2
Mortgages payable and credit line (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of debt | October 31, 2019 October 31, 2018 Principal Unamortized Principal Unamortized (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 15,615 $ 51 $ 16,152 $ 80 Westwood, NJ (B) 18,973 103 19,611 134 Patchogue, NY (C) — — 5,231 15 Wayne, NJ (D) 28,815 475 17,334 18 River Edge, NJ (E) 10,021 70 10,243 87 Red Bank, NJ (F) 12,350 123 12,350 138 Westwood, NJ (G) 19,617 34 20,134 67 Wayne, NJ (H) 23,737 240 24,432 274 Hackensack, NJ (I) 48,000 509 48,000 572 Damascus, MD (J) 19,354 231 19,865 296 Middletown, NY (K) 15,588 170 15,922 203 Total fixed rate 212,070 2,006 209,274 1,884 Frederick, MD (L) 22,200 28 22,710 70 Baltimore, MD (M) 118,520 800 118,520 1,439 Line of credit - Provident Bank (N) — 52 — 105 Total variable rate 140,720 880 141,230 1,614 Total $ 352,790 $ 2,886 $ 350,504 $ 3,498 (A) 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, New Jersey having a net book value of approximately $15,276,000 as of October 31, 2019. (B) 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, New Jersey having a net book value of approximately $7,121,000 as of October 31, 2019. (C) The loan, modified effective January 1, 2016, was reduced to interest only payments based on a rate of 4.5% resulting in monthly payments of approximately $19,600. This loan became due on March 1, 2018 and operated under the same terms and conditions of the then existing agreement until the property was sold on February 8, 2019. A portion of the proceeds from the sale were used to pay-off the $5.2 million then outstanding balance plus accrued interest and fees. (D) On August 26, 2019, Berdan Court, LLC (“Berdan Court”), (owned 100% by FREIT), refinanced its $17 million loan (which matured on September 1, 2019) with the lender in the amount of $28,815,000. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 6.09% to a fixed rate of 3.54% and (ii) net refinancing proceeds of approximately $11.6 million which can be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,622,000 as of October 31, 2019. (E) On November 19, 2013, FREIT refinanced mortgage loans scheduled to mature on December 1, 2013 with a new mortgage loan in the amount of $11,200,000 payable in monthly installments of $57,456 including interest at 4.54% through December 1, 2023 at which time the outstanding balance is due. The mortgage is secured by an apartment building in River Edge, New Jersey having a net book value of approximately $755,000 as of October 31, 2019. (F) On December 7, 2017, Station Place on Monmouth, LLC (owned 100% by FREIT) closed on a mortgage loan in the amount of $12,350,000 held by Provident Bank to purchase the Station Place property in Red Bank, New Jersey (see Note 3 to FREIT’s consolidated financial statements). Interest-only payments are required each month for the first two years of the term and thereafter, principal payments plus accrued interest will be required each month through maturity. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. In order to minimize interest rate volatility during the term of the loan, Station Place on Monmouth, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swap.) The mortgage is secured by an apartment building in Red Bank, New Jersey having a net book value of approximately $19,035,000 as of October 31, 2019. On January 21, 2019, Station Place on Monmouth, LLC entered into a modification agreement with Provident Bank. The material terms of the modification were: (i) FREIT guarantees $2,350,000 of the outstanding principal balance of the loan; and (ii) the loan’s Debt Service Coverage Ratio (“DSCR”) covenants are reduced to a single test that will be tested semi-annually (commencing with the six-month period ending April 30, 2019) and require a DSCR of 1.2 / 1.0 based on actual debt service. Prior to this modification, the loan’s DSCR covenants were calculated using the greater of the actual debt service or other hypothetical debt service measures, as provided in the loan agreement, that were to be tested quarterly. As previously disclosed in FREIT’s current report on Form 8-K filed with the SEC on January 24, 2019, Station Place had not been in compliance with the loan covenants as of October 31, 2018, and the modification waives all previous non-compliance. If the DSCR should fall below 1.2 / 1.0, Provident Bank, at its discretion, may require a current appraisal of the Station Place property. If the loan balance exceeds 85% loan-to-value (“L-T-V”) based on the appraised value, Station Place may be required to resize the loan to bring the L-T-V into compliance by paying down the outstanding principal balance of the loan, posting a letter of credit, or providing additional collateral to Provident Bank. As of October 31, 2019, Station Place was in compliance with this covenant. (G) 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, New Jersey having a net book value of approximately $8,934,000 as of October 31, 2019. (H) On September 29, 2016, Wayne PSC, LLC refinanced its $24,200,000 mortgage loan held by Metropolitan Life Insurance Company, with a new mortgage loan from People’s United Bank in the amount of $25,800,000. The new loan bears a floating interest rate equal to 220 basis points over the one-month BBA LIBOR with a maturity date of October 1, 2026. In order to minimize interest rate volatility during the term of the loan, Wayne PSC, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 3.625% over the term of the loan. This refinancing resulted in: (i) a reduction in interest rate from 6.04% to 3.625% and (ii) net refinancing proceeds of approximately $1 million that were distributed to the partners in Wayne PSC, LLC with FREIT receiving $0.4 million based on it 40% membership interest in Wayne PSC, LLC. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swap.) The mortgage is secured by a shopping center in Wayne, New Jersey having a net book value of approximately $24,787,000 as of October 31, 2019 including approximately $0.4 million classified as construction in progress. (I) On January 8, 2018, Pierre Towers, (which is owned by S And A Commercial Associates Limited Partnership (“S&A”), a consolidated subsidiary of FREIT), refinanced its $29.1 million loan held by State Farm with a new mortgage loan from New York Life Insurance in the amount of $48 million. Pierre Towers paid New York Life Insurance a good faith deposit in the amount of $960,000 which was reimbursed by New York Life when the loan closed in January 2018. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 5.38% to a fixed rate of 3.88%; and (ii) net refinancing proceeds of approximately $17.2 million (after giving effect to a $1.2 million loan prepayment cost to pay-off the loan held by State Farm) that were distributed to the partners in S&A with FREIT receiving approximately $11.2 million, based on its 65% membership interest in S&A, which can be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of $155,200 each month through January 2023. Thereafter, monthly installments of principal plus interest totaling $225,851.10 will be required each month until January 2028 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Hackensack, New Jersey having a net book value of approximately $36,661,000 as of October 31, 2019. (J) On December 26, 2012, Damascus Centre, LLC refinanced its construction loan with long-term financing provided by People’s United Bank and the first tranche of the new loan was taken down in the amount of $20 million. Based on leasing and net operating income at the shopping center, People’s United Bank agreed to a take down of the second tranche of this loan on April 22, 2016 in the amount of $2,320,000, of which approximately $470,000 was readily available and the remaining $1,850,000 was held in escrow. In July 2018, these funds totaling $1,850,000 were released from escrow by the bank and became readily available to Damascus Centre, LLC. Damascus Centre, LLC distributed amounts due to FREIT and certain members of Damascus 100. The loan has a maturity date of January 3, 2023 and bears a floating interest rate equal to 210 points over the one-month BBA LIBOR. In order to minimize interest rate volatility during the term of this loan, Damascus Centre, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate on each tranche of this loan, resulting in a fixed rate of 3.81% over the term of the first tranche of this loan and a fixed rate of 3.53% over the term of the second tranche of this loan. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swaps.) The shopping center securing the loan has a net book value of approximately $26,136,000 as of October 31, 2019. (K) On December 29, 2014, FREIT Regency, LLC closed on a $16.2 million mortgage loan with Provident Bank. The 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 had been required each month through December 15, 2017 and 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. (See Note 6 to FREIT’s consolidated financial statements for additional information relating to the interest rate swap.) The mortgage is secured by an apartment complex in Middletown, New York having a net book value of $18,735,000 as of October 31, 2019. (L) On April 28, 2017, WestFREIT, Corp. (owned 100% by FREIT), refinanced its $22 million mortgage loan held by Wells Fargo Bank, with a new mortgage loan from Manufacturer’s and Traders Trust Company in the amount of $23.5 million. The new loan had a floating interest rate equal to 275 basis points over the one-month LIBOR and had a maturity date of April 28, 2019 with the option to extend for 12 months. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 5.55% to a variable rate and (ii) net refinancing proceeds of approximately $1.1 million which have been used for general corporate purposes. The loan was payable in monthly installments of interest (as defined above) plus principal of $43,250 through May 2018 and principal of $45,250 from June 2018 through May 2019 at which time the outstanding balance became due. On April 3, 2019, WestFREIT, Corp. exercised its option to extend its loan held by M&T Bank, with a then outstanding balance of approximately $22.5 million, for twelve months. Effective beginning on June 1, 2019, the extension of this loan requires monthly principal payments of $47,250 plus interest based on a floating interest rate equal to 240 basis points over the one-month LIBOR and has a maturity date of May 1, 2020. The mortgage is secured by a retail building in Frederick, Maryland having a net book value of approximately $13,398,000 as of October 31, 2019. (M) The original Rotunda acquisition loan for $22.5 million, which was subsequently reduced to $19.5 million on February 1, 2010, was acquired by FREIT on May 28, 2013. FREIT subsequently sold this loan to Wells Fargo Bank. On December 9, 2013, Grande Rotunda, LLC, a consolidated subsidiary, closed with Wells Fargo Bank on a construction loan of up to $120 million to be used to redevelop and expand the Rotunda property in Baltimore, Maryland with a term of four (4) years, with one twelve-month extension, at a rate of 225 basis points over the monthly LIBOR. On November 23, 2016, the following terms and conditions of this loan were modified: (i) the total amount that could have been drawn on this loan was decreased from $120 million to $116.1 million, allowing for an additional draw of $2.1 million over the then existing balance of approximately $114 million to be used for retail tenant improvements and leasing commissions; (ii) leasing benchmarks were no longer required to be met including the waiver of the leasing benchmarks FREIT was not in compliance with as of June 30, 2016; (iii) Grande Rotunda, LLC provided an interest reserve to Wells Fargo Bank in the amount of $2 million for the purpose of funding interest payments, and was obliged to replenish the account balance to $1 million if it should fall below $500,000; (iv) the maturity date of the loan was changed from December 31, 2017 to October 31, 2017 with no option to extend; and (v) the interest rate on the amount outstanding on the loan was increased by 25 basis points to 250 basis points over the monthly LIBOR. The following terms and conditions of this loan were modified and effective as of October 31, 2017: (i) the maturity date of the loan was extended 120 days from October 31, 2017 to February 28, 2018; (ii) the interest rate on the amount outstanding on the loan was increased by 35 basis points to 285 basis points over the monthly LIBOR through December 31, 2017; and (iii) the interest rate on the amount outstanding on the loan was increased by 65 basis points to 315 basis points over the monthly LIBOR from January 1, 2018 through February 28, 2018. On February 7, 2018, Grande Rotunda, LLC refinanced its $115.3 million construction loan held by Wells Fargo with a new loan held by Aareal Capital Corporation in the amount of approximately $118.5 million with additional funding available for retail tenant improvements and leasing costs in the amount of $3,380,000. This refinancing paid off the loan previously held by Wells Fargo, funded loan closing costs and paid the amount due to Hekemian Development Resources for a development fee of $900,000 plus accrued interest of approximately $45,000 (See Note 8 to FREIT’s consolidated financial statements for further details on this fee). This loan bears a floating interest rate at 285 basis points over the one-month LIBOR rate and has a maturity date of February 6, 2021 with two one-year renewal options. As part of this transaction, Grande Rotunda, LLC purchased an interest rate cap on LIBOR for the full amount that can be drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for the first two years of this loan. As of October 31, 2019, approximately $118.5 million of this loan facility was drawn down and the interest rate was approximately 4.84%. The loan is secured by the Rotunda property, which has a net book value of approximately $151,130,000 as of October 31, 2019. (N) Credit line: On October 27, 2017, FREIT’s revolving line of credit provided by the Provident Bank was renewed for a three-year term ending on October 27, 2020 at which point no further advances shall be permitted and provided the line of credit is not renewed by the lender, the outstanding principal balance of the line of credit shall convert to a commercial term loan maturing on October 31, 2022. Draws against the credit line can be used for working capital needs and standby letters of credit. Draws against the credit line are secured by mortgages on FREIT’s Franklin Crossing Shopping Center in Franklin Lakes, New Jersey and retail space in Glen Rock, New Jersey. The total line of credit was increased from $12.8 million to $13 million and the interest rate on the amount outstanding will be at a floating rate of 275 basis points over the 30-day LIBOR with a floor of 3.75%. During Fiscal 2017, FREIT utilized $3 million of its credit line to fund tenant improvements for new retail tenants at the Rotunda property. In February 2018, FREIT repaid the line of credit in the amount of $3.1 million. As of October 31, 2019 and 2018, there was no amount outstanding and $13 million was available under the line of credit. |
Schedule of estimated fair value and carrying value of long-term debt | The following table shows the estimated fair value and carrying value of FREIT’s long-term debt, net at October 31, 2019 and 2018: October 31, October 31, ($ in Millions) 2019 2018 Fair Value $352.9 $338.3 Carrying Value, Net $349.9 $347.0 |
Schedule of principal amounts of long-term debt | Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2019 are as follows: Year Ending October 31, Amount 2020 $ 25,638 2021 $ 141,018 (a) 2022 $ 17,388 2023 $ 36,878 2024 $ 11,378 (a) Includes Rotunda loan in the amount of approximately $118.5 million refinanced with Aareal Capital Corporation on February 7, 2018. (See Note 5(M)) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum rental income to be received from non-cancelable operating leases | Minimum rental income (in thousands of dollars) to be received from non-cancelable operating leases in years subsequent to October 31, 2019 is as follows: Year Ending October 31, Amount 2020 $ 20,055 2021 18,911 2022 15,624 2023 12,993 2024 10,838 Thereafter 46,412 Total $ 124,833 |
Equity incentive plan (Tables)
Equity incentive plan (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for Fiscal 2019: Year Ended October 31, 2019 No. of Options Exercise Outstanding Price Options outstanding at beginning of year 305,780 $ 18.40 Options granted during year 5,000 15.00 Options forfeited/cancelled during year (40 ) 18.45 Options outstanding at end of year 310,740 $ 18.35 Options vested and expected to vest 308,310 Options exercisable at end of year 260,140 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment and related information | Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2019. Asset information is not reported since FREIT does not use this measure to assess performance. Years Ended October 31, 2019 2018 2017 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 26,692 $ 25,464 $ 24,114 Residential 33,175 31,928 26,886 Total real estate rental revenue 59,867 57,392 51,000 Real estate operating expenses: Commercial 11,694 11,861 11,791 Residential 14,368 13,022 14,442 Total real estate operating expenses 26,062 24,883 26,233 Net operating income: Commercial 14,998 13,603 12,323 Residential 18,807 18,906 12,444 Total net operating income $ 33,805 $ 32,509 $ 24,767 Recurring capital improvements - residential $ (685 ) $ (738 ) $ (798 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 33,805 $ 32,509 $ 24,767 Gain on sale of property 836 — 15,395 Loan prepayment costs relating to property sale — — (1,139 ) Deferred rents - straight lining 410 605 634 Lease termination fee — — (620 ) Investment income 360 267 206 Unrealized (loss) gain on interest rate cap contract (160 ) 72 — General and administrative expenses (4,049 ) (2,305 ) (2,129 ) Depreciation (11,339 ) (11,515 ) (10,669 ) Financing costs (18,070 ) (18,667 ) (15,762 ) Net income 1,793 966 10,683 Net (income) loss attributable to noncontrolling interests (6 ) 517 2,433 Net income attributable to common equity $ 1,787 $ 1,483 $ 13,116 |
Selected quarterly financial _2
Selected quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operation | The following summary represents the results of operations for each quarter for the years ended October 31, 2019 and 2018 (in thousands, except per share amounts): 2019: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 14,928 $ 14,786 $ 15,255 $ 15,308 $ 60,277 Expenses 14,493 13,956 (a) 14,990 15,045 58,484 Net income 435 830 265 263 1,793 Net (loss) income attributable to noncontrolling interests in subsidiaries 24 (44 ) (66 ) 80 (6 ) Net income attributable to common equity $ 459 $ 786 $ 199 $ 343 $ 1,787 Earnings per share - basic and diluted $ 0.07 $ 0.11 (a) $ 0.03 $ 0.05 $ 0.26 Dividends declared per share $ 0.15 $ 0.125 $ 0.125 $ 0.20 $ 0.60 2018: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 14,194 $ 14,325 $ 14,631 $ 14,847 $ 57,997 Expenses 15,114 (b) 12,898 (c) 14,520 14,499 57,031 Net income (loss) (920 ) 1,427 111 348 966 Net (income) loss attributable to noncontrolling interests in subsidiaries 563 (312 ) 181 85 517 Net income (loss) attributable to common equity $ (357 ) $ 1,115 $ 292 $ 433 $ 1,483 Earnings (loss) per share - basic and diluted $ (0.05 )(b) $ 0.16 (c) $ 0.04 $ 0.06 $ 0.21 Dividends declared per share $ — $ 0.05 $ 0.05 $ 0.05 $ 0.15 (a) Includes $0.8 million gain on sale of the Patchogue, New York property sold on February 8, 2019. ($0.12 per share) (b) Includes $1.2 million loan prepayment cost related to refinancing of the loan for Pierre Towers, LLC, owned by S And A Commercial Associates Limited Partnership, which is a consolidated subsidiary. ($0.11 per share) (c) Includes $1.5 million in real estate tax refunds and credits related to tax years 2017 through second quarter of Fiscal 2018 at the Icon property, owned by Grande Rotunda, LLC, which is a consolidated subsidiary. ($0.13 per share) |
Organization and significant _4
Organization and significant accounting policies (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Dec. 07, 2017 | |
Advertising costs | $ 281,000 | $ 296,000 | $ 386,000 | |
Amortization of mortgage costs and leasing commissions | $ 1,139,000 | $ 1,050,000 | $ 1,298,000 | |
Transaction costs | $ 19,600,000 | |||
Station Place on Monmouth, LLC [Member] | ||||
Transaction costs | $ 550,000 |
Organization and significant _5
Organization and significant accounting policies (Schedule of Subsidiaries) (Details) | 12 Months Ended |
Oct. 31, 2019 | |
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 |
FREIT Regency, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2014 |
Station Place on Monmouth, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2017 |
Berdan Court, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2019 |
Property dispositions (Details)
Property dispositions (Details) - USD ($) | Feb. 08, 2019 | Jun. 12, 2017 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Real Estate Properties [Line Items] | |||||
Agreed sales price of property held for sale | $ 7,060,000 | $ 16,100,000 | |||
Gain on sale of property held for sale | 836,000 | $ 15,395,000 | |||
Special dividend paid | 676,000 | ||||
Deferral of capital gain on sale of property from qualification as like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code | $ 15,400,000 | ||||
Hammel Gardens Property [Member] | |||||
Real Estate Properties [Line Items] | |||||
Rental properties | $ 700,000 | ||||
Agreed sales price of property held for sale | 17,000,000 | ||||
Gain on sale of property held for sale | 15,400,000 | ||||
Mortgage prepayment penalty | 1,100,000 | ||||
Net proceeds from sale of property | 8,000,000 | ||||
Net proceeds from sale of property to be held in escrow until replacement property is purchased | 7,000,000 | ||||
Deferral of capital gain on sale of property from qualification as like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code | $ 15,400,000 | ||||
Pathmark Super Center, Patchogue, NY [Member] | |||||
Real Estate Properties [Line Items] | |||||
Rental properties | $ 6,200,000 | ||||
Agreed sales price of property held for sale | 7,500,000 | ||||
Gain on sale of property held for sale | 800,000 | ||||
Net proceeds from sale of property | 2,000,000 | ||||
Mortgage payoff | $ 5,200,000 | ||||
Dividend per share | $ 0.10 | ||||
Sale of property operating loss | $ 800,000 | ||||
Price per share operating loss eliminated from sale of property | $ 0.12 |
Property acquisition (Details)
Property acquisition (Details) | Dec. 07, 2017USD ($) |
Real Estate [Line Items] | |
Transaction costs | $ 19,600,000 |
Building [Member] | |
Real Estate [Line Items] | |
Transaction costs | 10,800,000 |
Land [Member] | |
Real Estate [Line Items] | |
Transaction costs | 8,800,000 |
Provident Bank [Member] | |
Real Estate [Line Items] | |
Remaining balance (inclusive of the transaction costs) | 12,350,000 |
Station Place on Monmouth, LLC [Member] | |
Real Estate [Line Items] | |
Acquisition costs | 19,550,000 |
Transaction costs | 550,000 |
Hammel Gardens Property [Member] | |
Real Estate [Line Items] | |
Net proceed from sales | $ 7,000,000 |
Real estate (Details)
Real estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 84,097 | $ 86,225 |
Unimproved land | 405 | 405 |
Equipment/Furniture | 2,297 | 2,090 |
Total real estate, gross | 448,471 | 456,499 |
Less accumulated depreciation | 118,363 | 111,967 |
Total real estate, net | $ 330,108 | 344,532 |
Minimum [Member] | Equipment/Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Maximum [Member] | Equipment/Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Apartment Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 202,486 | 201,793 |
Apartment Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Apartment Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Commercial Buildings/Shopping Centers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 159,186 | $ 165,986 |
Commercial Buildings/Shopping Centers [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Commercial Buildings/Shopping Centers [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years |
Mortgages payable and credit _3
Mortgages payable and credit line (Narrative) (Details) - USD ($) | Aug. 26, 2019 | Apr. 03, 2019 | Feb. 28, 2018 | Feb. 07, 2018 | Dec. 07, 2017 | Jan. 14, 2013 | Feb. 28, 2018 | Dec. 31, 2017 | Apr. 28, 2017 | Sep. 29, 2016 | Jun. 30, 2016 | Feb. 01, 2010 | Feb. 28, 2018 | Oct. 31, 2019 | Jan. 21, 2019 | Oct. 31, 2018 | Jan. 08, 2018 | Nov. 23, 2016 |
Debt Instrument [Line Items] | ||||||||||||||||||
Amount drawn on loan | $ 352,790,000 | $ 350,504,000 | ||||||||||||||||
Line of Credit [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maturity date of loan | Oct. 27, 2020 | |||||||||||||||||
Line of Credit, available | $ 13,000,000 | |||||||||||||||||
Line of Credit repaid | $ 3,100,000 | |||||||||||||||||
Grande Rotunda LLC [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fee amount | $ 900,000 | |||||||||||||||||
Station Place on Monmouth, LLC [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 1.80% | |||||||||||||||||
Fixed interest rate current loan | 4.35% | |||||||||||||||||
Loan amount | $ 12,350,000 | |||||||||||||||||
Maturity date of loan | Dec. 15, 2027 | |||||||||||||||||
Term of the loan | 10 years | |||||||||||||||||
Percentage of acquisition | 100.00% | |||||||||||||||||
Portion of outstanding principal balance guaranteed by FREIT | $ 2,350,000 | |||||||||||||||||
WestFREIT Corp [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Refinanced loan amount | $ 22,000,000 | |||||||||||||||||
Basis points, interest rate | 2.75% | |||||||||||||||||
Loan amount | $ 23,500,000 | |||||||||||||||||
Maturity date of loan | Apr. 28, 2019 | |||||||||||||||||
Net proceeds from refinancing of debt | $ 1,100,000 | |||||||||||||||||
Percentage of acquisition | 100.00% | |||||||||||||||||
Description of loan amendment terms | This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 5.55% to a variable rate | |||||||||||||||||
Wells Fargo Bank [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 2.25% | |||||||||||||||||
Debt Instrument, collateral amount | $ 19,500,000 | |||||||||||||||||
Loan amount | $ 22,500,000 | $ 114,000,000 | ||||||||||||||||
Interest reserve to Wells Fargo | $ 2,000,000 | |||||||||||||||||
Accrued interest on development fee paid | $ 45,000 | |||||||||||||||||
Amount repaid | $ 115,300,000 | |||||||||||||||||
Wells Fargo Bank [Member] | Maximum [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 2.85% | 2.50% | 3.15% | |||||||||||||||
Replenish account balance | $ 1,000,000 | |||||||||||||||||
Wells Fargo Bank [Member] | Minimum [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 0.35% | 0.25% | 0.65% | |||||||||||||||
Replenish account balance | $ 500,000 | |||||||||||||||||
Mortgages [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fixed rate mortgage loans | 212,070,000 | 209,274,000 | ||||||||||||||||
Variable rate mortgage loan | $ 140,720,000 | 141,230,000 | ||||||||||||||||
Mortgages [Member] | Rockaway, NJ Mortgage [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fixed interest rate current loan | 5.37% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 115,850 | |||||||||||||||||
Debt Instrument, collateral amount | 15,276,000 | |||||||||||||||||
Fixed rate mortgage loans | $ 15,615,000 | 16,152,000 | ||||||||||||||||
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 current loan | 4.75% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 129,702 | |||||||||||||||||
Debt Instrument, collateral amount | 7,121,000 | |||||||||||||||||
Loan amount | 22,750,000 | |||||||||||||||||
Fixed rate mortgage loans | $ 18,973,000 | 19,611,000 | ||||||||||||||||
Mortgages [Member] | Patchogue, NY [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fixed interest rate current loan | 4.50% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 19,600 | |||||||||||||||||
Loan amount | 5,200,000 | |||||||||||||||||
Fixed rate mortgage loans | 5,231,000 | |||||||||||||||||
Mortgages [Member] | Wayne, NJ Mortgage [Member] | Berdan Court, LLC [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Refinanced loan amount | $ 17,000,000 | |||||||||||||||||
Fixed interest rate on old loan | 6.09% | |||||||||||||||||
Fixed interest rate current loan | 3.54% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 85,004 | |||||||||||||||||
Debt Instrument, collateral amount | 1,622,000 | |||||||||||||||||
Loan amount | $ 28,815,000 | |||||||||||||||||
Maturity date of loan | Sep. 1, 2029 | |||||||||||||||||
Term of the loan | 10 years | |||||||||||||||||
Net proceeds from refinancing of debt | $ 11,600,000 | |||||||||||||||||
Future periodic payment including principal | $ 130,036 | |||||||||||||||||
Percentage of acquisition | 100.00% | |||||||||||||||||
Fixed rate mortgage loans | $ 28,815,000 | 17,334,000 | ||||||||||||||||
Mortgages [Member] | Hackensack, NJ [Member] | Pierre Towers, LLC [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fixed interest rate on old loan | 5.38% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 155,200 | |||||||||||||||||
Debt Instrument, collateral amount | 36,661,000 | |||||||||||||||||
Loan amount | 48,000,000 | |||||||||||||||||
Loan deposit refunded | $ 960,000 | |||||||||||||||||
Maturity date of loan | Jan. 1, 2028 | |||||||||||||||||
Term of the loan | 10 years | |||||||||||||||||
Net proceeds from refinancing of debt | $ 17,200,000 | |||||||||||||||||
Future periodic payment including principal | 225,851 | |||||||||||||||||
Mortgage prepayment penalty | 1,200,000 | |||||||||||||||||
Fixed rate mortgage loans | $ 48,000,000 | 48,000,000 | $ 29,100,000 | |||||||||||||||
Mortgages [Member] | River Edge, NJ Refinanced Mortgage [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fixed interest rate current loan | 4.54% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 57,456 | |||||||||||||||||
Debt Instrument, collateral amount | 755,000 | |||||||||||||||||
Loan amount | 11,200,000 | |||||||||||||||||
Mortgages [Member] | Red Bank, NJ Refinanced Mortgage [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, collateral amount | $ 19,035,000 | |||||||||||||||||
Mortgages [Member] | Westwood, NJ #3 [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fixed interest rate current loan | 4.62% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 120,752 | |||||||||||||||||
Debt Instrument, collateral amount | 8,934,000 | |||||||||||||||||
Fixed rate mortgage loans | 19,617,000 | 20,134,000 | ||||||||||||||||
Mortgages [Member] | Wayne, PSC LLC [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Refinanced loan amount | $ 24,200,000 | $ 25,800,000 | ||||||||||||||||
Basis points, interest rate | 2.20% | |||||||||||||||||
Fixed interest rate on old loan | 6.04% | |||||||||||||||||
Fixed interest rate current loan | 3.625% | |||||||||||||||||
Membership interest percentage | 40.00% | |||||||||||||||||
Debt Instrument, collateral amount | $ 24,787,000 | |||||||||||||||||
Debt Instrument, collateral amount classified as construction in progress | 400,000 | |||||||||||||||||
Loan amount | $ 25,800,000 | |||||||||||||||||
Description of variable interest rate | a reduction in interest rate from 6.04% to 3.625% | |||||||||||||||||
Maturity date of loan | Oct. 1, 2026 | |||||||||||||||||
Net proceeds from refinancing of debt | $ 1,000,000 | |||||||||||||||||
Fixed rate mortgage loans | $ 23,737,000 | 24,432,000 | ||||||||||||||||
Mortgages [Member] | S And A Commercial Associates Limited Partnership [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Membership interest percentage | 65.00% | |||||||||||||||||
Net proceeds from refinancing of debt | $ 11,200,000 | |||||||||||||||||
Mortgages [Member] | Damascus, MD [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 2.10% | |||||||||||||||||
Fixed interest rate tranche one | 3.81% | |||||||||||||||||
Fixed interest rate tranche two | 3.53% | |||||||||||||||||
Debt Instrument, collateral amount | $ 26,136,000 | |||||||||||||||||
Maturity date of loan | Jan. 3, 2023 | |||||||||||||||||
Escrow released | $ 1,850,000 | |||||||||||||||||
Fixed rate mortgage loans | 19,354,000 | 19,865,000 | ||||||||||||||||
Mortgages [Member] | Middletown, NY Mortgage [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Fixed rate mortgage loans | 15,588,000 | $ 15,922,000 | ||||||||||||||||
Mortgages [Member] | Frederick, MD [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt Instrument, collateral amount | $ 13,398,000 | |||||||||||||||||
Provident Bank [Member] | Middletown, NY Mortgage [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 1.25% | |||||||||||||||||
Fixed interest rate current loan | 3.75% | |||||||||||||||||
Debt Instrument, collateral amount | $ 18,735,000 | |||||||||||||||||
Loan amount | $ 16,200,000 | |||||||||||||||||
Maturity date of loan | Dec. 15, 2024 | |||||||||||||||||
Monthly principal payment amount | $ 27,807 | |||||||||||||||||
WestFREIT Corp [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 2.40% | |||||||||||||||||
Debt Instrument, Periodic Payment | $ 47,250 | |||||||||||||||||
Loan amount | $ 22,500,000 | |||||||||||||||||
Maturity date of loan | May 1, 2020 | |||||||||||||||||
Rotunda [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Basis points, interest rate | 2.85% | |||||||||||||||||
Variable interest rate | 4.84% | |||||||||||||||||
Debt Instrument, collateral amount | $ 151,130,000 | |||||||||||||||||
Loan amount | $ 118,500,000 | |||||||||||||||||
Maturity date of loan | Feb. 6, 2021 | |||||||||||||||||
Grande Rotunda LLC Construction Loan [Member] | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Interest rate cap | 3.00% | |||||||||||||||||
Loan amount | $ 121,900,000 | |||||||||||||||||
Line of Credit, available | $ 3,380,000 |
Mortgages payable and credit _4
Mortgages payable and credit line (Schedule of Debt) (Details) - USD ($) | Oct. 31, 2019 | Oct. 31, 2018 | Jan. 08, 2018 |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 2,886,000 | $ 3,498,000 | |
Total mortgages, notes payable and credit line | 352,790,000 | 350,504,000 | |
Mortgages [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 212,070,000 | 209,274,000 | |
Unamortized debt issuance costs | 2,006,000 | 1,884,000 | |
Variable rate mortgage loan | 140,720,000 | 141,230,000 | |
Mortgages [Member] | Rockaway, NJ Mortgage [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 15,615,000 | 16,152,000 | |
Unamortized debt issuance costs | 51,000 | 80,000 | |
Mortgages [Member] | Westwood, NJ #2 [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 18,973,000 | 19,611,000 | |
Unamortized debt issuance costs | 103,000 | 134,000 | |
Mortgages [Member] | Patchogue, NY [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 5,231,000 | ||
Unamortized debt issuance costs | 15,000 | ||
Mortgages [Member] | Wayne, NJ Mortgage [Member] | Berdan Court, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 28,815,000 | 17,334,000 | |
Unamortized debt issuance costs | 475,000 | 18,000 | |
Mortgages [Member] | River Edge, NJ First Mortgage [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 10,021,000 | 10,243,000 | |
Unamortized debt issuance costs | 70,000 | 87,000 | |
Mortgages [Member] | Red Bank, NJ Mortgage [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 12,350,000 | 12,350,000 | |
Unamortized debt issuance costs | 123,000 | 138,000 | |
Mortgages [Member] | Westwood, NJ #3 [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 19,617,000 | 20,134,000 | |
Unamortized debt issuance costs | 34,000 | 67,000 | |
Mortgages [Member] | Wayne, PSC LLC [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 23,737,000 | 24,432,000 | |
Unamortized debt issuance costs | 240,000 | 274,000 | |
Mortgages [Member] | Hackensack, NJ [Member] | Pierre Towers, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 48,000,000 | 48,000,000 | $ 29,100,000 |
Unamortized debt issuance costs | 509,000 | 572,000 | |
Mortgages [Member] | Damascus, MD [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 19,354,000 | 19,865,000 | |
Unamortized debt issuance costs | 231,000 | 296,000 | |
Mortgages [Member] | Middletown, NY Mortgage [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate mortgage loans | 15,588,000 | 15,922,000 | |
Unamortized debt issuance costs | 170,000 | 203,000 | |
Notes Payable, Other Payables [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 880,000 | 1,614,000 | |
Variable rate mortgage loans and credit line | 140,720,000 | 141,230,000 | |
Notes Payable, Other Payables [Member] | Frederick, MD [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 28,000 | 70,000 | |
Variable rate mortgage loan | 22,200,000 | 22,710,000 | |
Notes Payable, Other Payables [Member] | Baltimore, MD [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 800,000 | 1,439,000 | |
Variable rate mortgage loan | 118,520,000 | 118,520,000 | |
Provident Bank [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | 52,000 | 105,000 | |
Line of credit | $ 0 | $ 0 |
Mortgages payable and credit _5
Mortgages payable and credit line (Schedule of Fair Value of Long-Term Debt) (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 352.9 | $ 338.3 |
Carrying value of long-term debt | $ 349.9 | $ 347 |
Mortgages payable and credit _6
Mortgages payable and credit line (Schedule of Principal Amounts Due) (Details) $ in Thousands | Oct. 31, 2019USD ($) | |
Debt Disclosure [Abstract] | ||
2020 | $ 25,638 | |
2021 | 141,018 | [1] |
2022 | 17,388 | |
2023 | 36,878 | |
2024 | $ 11,378 | |
[1] | Includes Rotunda loan in the amount of approximately $118.5 million refinanced with Aareal Capital Corporation on February 7, 2018. (See Note 5(M)) |
Interest rate cap and swap co_2
Interest rate cap and swap contracts (Details) - USD ($) | Feb. 07, 2018 | Dec. 07, 2017 | Sep. 29, 2016 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Derivative [Line Items] | ||||||
Interest rate swap contract assets | $ 4,434,000 | |||||
Unrealized gain (loss) on derivatives | (160,000) | 72,000 | ||||
Net unrealized gain (loss) on interest rate swap contracts | (6,400,000) | 3,113,000 | 2,952,000 | |||
Interest rate swap contract liabilities | 2,126,000 | |||||
Damascus Centre Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate swap contract assets | 955,000 | 275,000 | ||||
Interest rate swap contract liabilities | 179,000 | |||||
Wayne PSC swap [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate swap contract assets | 2,452,000 | 1,325,000 | ||||
Interest rate swap contract liabilities | 53,000 | |||||
Regency Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate swap contract assets | 408,000 | |||||
Interest rate swap contract liabilities | 860,000 | $ 439,000 | ||||
Monmouth swap [Member] | ||||||
Derivative [Line Items] | ||||||
Interest rate swap contract assets | 460,000 | |||||
Interest rate swap contract liabilities | 1,034,000 | |||||
Station Place on Monmouth, LLC [Member] | ||||||
Derivative [Line Items] | ||||||
Percentage of acquisition | 100.00% | |||||
Loan amount | $ 12,350,000 | |||||
Notional amount of interest rate swap | $ 12,350,000 | |||||
Fixed interest rate | 4.35% | |||||
Basis points, interest rate | 1.80% | |||||
Maturity date of loan | Dec. 15, 2027 | |||||
Wells Fargo Bank [Member] | ||||||
Derivative [Line Items] | ||||||
Loan amount | $ 115,300,000 | |||||
Aareal Capital Corporation [Member] | ||||||
Derivative [Line Items] | ||||||
Loan amount | 118,500,000 | |||||
Available to draw | $ 3,380,000 | |||||
Basis points, interest rate | 2.85% | |||||
Maturity date of loan | Feb. 6, 2021 | |||||
Grande Rotunda LLC [Member] | ||||||
Derivative [Line Items] | ||||||
Loan amount | $ 118,500,000 | |||||
Interest rate cap | 3.00% | |||||
Unrealized gain (loss) on derivatives | $ (160,000) | 72,000 | ||||
Interest rate cap asset | $ 0 | $ 160,000 | ||||
Basis points, interest rate | 2.85% | |||||
Grande Rotunda LLC Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Loan amount | $ 118,500,000 | |||||
Notional amount of interest rate swap | $ 121,900,000 | |||||
Interest rate cap | 3.00% | |||||
Maturity date of cap | Mar. 5, 2020 | |||||
Wayne PSC, LLC Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Refinanced loan amount | $ 24,200,000 | |||||
Loan amount | $ 25,800,000 | $ 23,700,000 | ||||
Notional amount of interest rate swap | 23,800,000 | |||||
Fixed interest rate | 3.625% | |||||
Basis points, interest rate | 2.20% | |||||
Maturity date of loan | Oct. 1, 2026 | |||||
People's United Bank [Member] | ||||||
Derivative [Line Items] | ||||||
Loan amount | 19,400,000 | |||||
Notional amount of interest rate swap | $ 19,400,000 | |||||
People's United Bank [Member] | Tranche One [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed interest rate | 3.81% | |||||
Basis points, interest rate | 2.10% | |||||
Maturity date of loan | Jan. 3, 2023 | |||||
People's United Bank [Member] | Tranche Two [Member] | ||||||
Derivative [Line Items] | ||||||
Fixed interest rate | 3.53% | |||||
Regency Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Refinanced loan amount | $ 16,200,000 | |||||
Loan amount | 15,600,000 | |||||
Notional amount of interest rate swap | $ 15,600,000 | |||||
Fixed interest rate | 3.75% | |||||
Basis points, interest rate | 1.25% | |||||
Maturity date of loan | Dec. 15, 2024 |
Commitments and contingencies_2
Commitments and contingencies (Narrative) (Details) | 12 Months Ended |
Oct. 31, 2019USD ($) | |
Commercial space leases, net book value | $ 143,000,000 |
Lease terms for residential tenants, periods | 2 years |
Westwood Plaza Shopping Center [Member] | |
Flood insurance, amount per incident | $ 500,000 |
Commitments and contingencies_3
Commitments and contingencies (Schedule of Minimum Rental Income) (Details) $ in Thousands | Oct. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 20,055 |
2021 | 18,911 |
2022 | 15,624 |
2023 | 12,993 |
2024 | 10,838 |
Thereafter | 46,412 |
Total | $ 124,833 |
Management agreement, fees an_2
Management agreement, fees and transactions with related party (Details) - USD ($) | May 08, 2008 | Oct. 31, 2006 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2013 | Oct. 31, 2016 |
Related Party Transaction [Line Items] | |||||||
Asset management fees | $ 2,603,000 | $ 2,547,000 | $ 2,375,000 | ||||
Sale/Acquisition commissions | 131,250 | 522,500 | 467,500 | ||||
Total construction financing, including other members | 14,460,000 | ||||||
Amount of the capital call | 8,700,000 | ||||||
Payment of capital call | 8,700,000 | ||||||
Due to affiliate | 5,705,000 | 5,417,000 | |||||
Secured loans receivable | 5,053,000 | 4,862,000 | |||||
Commissions related to loan financing | $ 144,075 | 672,500 | |||||
Damascus Centre, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Sale of interest | $ 3,224,000 | ||||||
Sale of interest, amount financed | $ 1,451,000 | ||||||
Damascus Centre, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Ownership by parent (percentage) | 70.00% | ||||||
Ownership by noncontrolling owners (percentage) | 30.00% | ||||||
Grande Rotunda, LLC [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate outstanding principal balance | $ 4,000,000 | 4,000,000 | |||||
Accrued but unpaid interest | $ 1,053,000 | 862,000 | |||||
Ownership by parent (percentage) | 60.00% | ||||||
Ownership by noncontrolling owners (percentage) | 40.00% | ||||||
Due to affiliate | $ 5,700,000 | 5,400,000 | |||||
Managing Agent Hekemian & Co [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Asset management fees | 2,549,000 | 2,438,000 | 2,216,000 | ||||
Leasing commissions and reimbursement of operating expenses | 762,000 | 742,000 | 1,191,000 | ||||
Insurance commissions | 196,000 | 178,000 | 175,000 | ||||
Maximum advances to employees | $ 2,000,000 | 4,000,000 | 4,000,000 | ||||
Accounts Payable | 219,000 | 212,000 | |||||
Rotunda 100 [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Secured loans receivable to noncontrolling interest | 2,100,000 | ||||||
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 1 [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Construction and development costs | $ 1,400,000 | ||||||
Development fees included in accounts payable | 900,000 | $ 900,000 | |||||
Consulting services expense | 275,000 | 1,195,000 | 467,500 | ||||
Robert S. Hekemian [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Trustee fee expense | 214,000 | 365,000 | 538,000 | ||||
Consulting services expense | 60,000 | 34,200 | |||||
Consulting fee per month | 5,000 | ||||||
Consulting fee quarterly installments | 15,000 | ||||||
Robert S. Hekemian, Jr. [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Trustee fee expense | 381,000 | 149,000 | 65,000 | ||||
David Hekemian [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Trustee fee expense | 22,000 | 0 | 0 | ||||
Allan Tubin [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Trustee fee expense | $ 56,000 | $ 26,000 | 0 | ||||
Damascus Centre [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Secured notes outstanding | 1,870,000 | ||||||
Principal amount on notes | 1,451,000 | ||||||
Accrued interest payable | $ 419,000 |
Income taxes (Details)
Income taxes (Details) $ in Millions | 12 Months Ended |
Oct. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Ordinary taxable income distributed as dividends (percentage) | 100.00% |
Deferral of capital gain on sale of property from qualification as like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code | $ 15.4 |
Amount by which tax basis of replacement property in like-kind exchange is lower than acquisition cost | 18.9 |
Acquisition cost | $ 19.6 |
Equity incentive plan (Details)
Equity incentive plan (Details) - USD ($) | Mar. 04, 2019 | May 03, 2018 | Apr. 05, 2018 | Nov. 10, 2016 | Sep. 04, 2014 | Apr. 04, 2007 | Sep. 10, 1998 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
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 | 300,000 | 920,000 | |||||||
Shares available for issuance | 442,060 | |||||||||
Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Plan term | 10 years | 10 years | 10 years | 10 years | ||||||
Vesting term | 5 years | 5 years | 5 years | |||||||
No. of Options Outstanding | ||||||||||
Options outstanding beginning of period | 305,780 | |||||||||
Options granted during period | 5,000 | 38,000 | 38,000 | 246,000 | 5,000 | |||||
Options forfeited/cancelled during period | (40) | |||||||||
Options outstanding end of period | 310,740 | 305,780 | ||||||||
Options vested and expected to vest | 308,310 | |||||||||
Options exercisable at end of period | 260,140 | |||||||||
Exercise Price | ||||||||||
Options outstanding beginning of period | $ 18.40 | |||||||||
Options granted during period | $ 15 | $ 15.50 | $ 21 | $ 18.45 | 15 | |||||
Options forfeited/cancelled during period | 18.45 | |||||||||
Options outstanding end of period | 18.35 | $ 18.40 | ||||||||
Estimated fair value of options granted | $ 2.43 | $ 2.09 | ||||||||
Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: | ||||||||||
Expected volatility | 27.69% | 27.60% | ||||||||
Risk-free interest rate | 2.72% | 2.94% | ||||||||
Imputed option life | 6 years 3 months 19 days | 6 years 7 months 6 days | ||||||||
Expected dividend yield | 3.82% | 4.70% | ||||||||
Compensation expense related to stock options | $ 124,000 | $ 130,000 | $ 122,000 | |||||||
Unrecognized compensation cost | $ 117,000 | |||||||||
Unrecognized compensation cost, recognition period | 3 years 1 month 6 days | |||||||||
Aggregate intrinsic value of options expected to vest | $ 77,100 | |||||||||
Aggregate intrinsic value of options exercisable | $ 13,600 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Dec. 31, 2019 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Dividends payable | $ 1,357,000 | $ 338,000 | ||
Robert S. Hekemian [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Trustee fee expense | 214,000 | 365,000 | $ 538,000 | |
Deferred Fee Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Trustee fee expense | 986,000 | 805,800 | ||
Deferred trustee fees | 879,800 | 784,000 | ||
Deferred accrued interest | $ 3,188,000 | $ 3,576,000 | ||
Basis spread on any deferred fee (percentage) | 1.50% | |||
Shares issued | 60,148 | 51,109 | ||
Dividends payable | $ 106,200 | $ 21,800 | ||
Cumulative fees | $ 4,422,000 | $ 4,881,000 | ||
Deferred Fee Plan [Member] | Robert S. Hekemian [Member] | Subsequent Event [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Lump sum accrued plan benefits payable related party | $ 4,800,000 |
Dividends and earnings per sh_2
Dividends and earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Dividends declared (amount) | $ 4,173 | $ 1,035 | $ 1,024 | ||||||||
Dividends declared per share | $ 0.20 | $ 0.125 | $ 0.125 | $ 0.15 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.60 | $ 0.15 | $ 0.15 | |
Increase in average dilutive shares outstanding |
Segment information (Details)
Segment information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2019USD ($)properties | Jul. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2018USD ($)properties | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2019USD ($)propertiessegments | Oct. 31, 2018USD ($)properties | Oct. 31, 2017USD ($)properties | |
Reportable Segments | |||||||||||
Real estate rental revenue | $ 15,308 | $ 15,255 | $ 14,786 | $ 14,928 | $ 14,847 | $ 14,631 | $ 14,325 | $ 14,194 | $ 60,277 | $ 57,997 | $ 51,634 |
Real estate operating expenses | 41,450 | 38,703 | 39,651 | ||||||||
Operating income | 18,827 | 19,294 | 11,983 | ||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||
Segment NOI | 33,805 | 32,509 | 24,767 | ||||||||
Gain on sale of property | 836 | 15,395 | |||||||||
Loan prepayment costs relating to property sale | (1,139) | ||||||||||
Deferred rents - straight lining | 410 | 605 | 634 | ||||||||
Lease termination fee | (620) | ||||||||||
Investment income | 360 | 267 | 206 | ||||||||
Unrealized (loss) gain on interest rate cap contract | (160) | 72 | |||||||||
General and administrative expenses | (4,049) | (2,305) | (2,129) | ||||||||
Depreciation | (11,339) | (11,515) | (10,669) | ||||||||
Financing costs | (18,070) | (18,667) | (15,762) | ||||||||
Net income | 263 | 265 | 830 | 435 | 348 | 111 | 1,427 | (920) | 1,793 | 966 | 10,683 |
Net (income) loss attributable to noncontrolling interests | 80 | (66) | (44) | 24 | 85 | 181 | (312) | 563 | (6) | 517 | 2,433 |
Net income attributable to common equity | $ 343 | $ 199 | $ 786 | $ 459 | $ 433 | $ 292 | $ 1,115 | $ (357) | $ 1,787 | $ 1,483 | $ 13,116 |
Number of reportable segments | segments | 2 | ||||||||||
Commercial [Member] | |||||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||
Number of properties | properties | 8 | 9 | 8 | 9 | 9 | ||||||
Residential [Member] | |||||||||||
Reportable Segments | |||||||||||
Recurring capital improvements - residential | $ (685) | $ (738) | $ (798) | ||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||
Number of properties | properties | 8 | 8 | 8 | 8 | 7 | ||||||
Operating Segments [Member] | |||||||||||
Reportable Segments | |||||||||||
Real estate rental revenue | $ 59,867 | $ 57,392 | $ 51,000 | ||||||||
Real estate operating expenses | 26,062 | 24,883 | 26,233 | ||||||||
Operating income | 33,805 | 32,509 | 24,767 | ||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||
Segment NOI | 33,805 | 32,509 | 24,767 | ||||||||
Operating Segments [Member] | Commercial [Member] | |||||||||||
Reportable Segments | |||||||||||
Real estate rental revenue | 26,692 | 25,464 | 24,114 | ||||||||
Real estate operating expenses | 11,694 | 11,861 | 11,791 | ||||||||
Operating income | 14,998 | 13,603 | 12,323 | ||||||||
Operating Segments [Member] | Residential [Member] | |||||||||||
Reportable Segments | |||||||||||
Real estate rental revenue | 33,175 | 31,928 | 26,886 | ||||||||
Real estate operating expenses | 14,368 | 13,022 | 14,442 | ||||||||
Operating income | $ 18,807 | $ 18,906 | $ 12,444 |
Anchor tenant termination and_2
Anchor tenant termination and modification of lease (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Jul. 26, 2017 | |
Lease Termination Fee Disclosure Abstract | ||||
FREIT's ownership percentage in Wayne PSC | 40.00% | |||
Annual rental income paid by Macy's, Inc. for terminated leased property | $ 234,000 | |||
Lease termination fee | 620,000 | |||
Expected total rental income lost from termination of lease | $ 200,000 | |||
Reduction in annual rent having adverse effect on future operating results | $ 250,000 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) | Jan. 14, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Subsequent Event [Line Items] | ||||
Escrow deposit | $ 2,135,000 | $ 2,435,000 | $ 4,007,000 | |
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of voting shares | 839,839 | |||
Percentage of voting shares held | 12.40% | |||
Termination fee payable | $ 3,500,000 | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | Maximum [Member] | ||||
Subsequent Event [Line Items] | ||||
Out-of-pocket expenses payable | $ 2,000,000 | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | Seven Apartment Properties [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of ownership interest | 100.00% | |||
Aggregate purchase price | $ 266,500,000 | |||
Mortgage loans assumed | 76,815,000 | |||
Total cash consideration paid | 208,325,000 | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | Seven Apartment Properties [Member] | Letter of Credit [Member] | ||||
Subsequent Event [Line Items] | ||||
Escrow deposit | $ 15,000,000 | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | Seven Apartment Properties Except Pierre Towers and Westwood Hills [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of ownership interest | 100.00% | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | Pierre Towers, Hackensack [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of ownership interest | 65.00% | |||
Aggregate purchase price | $ 80,500,000 | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | Westwood Hills, Westwood [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of ownership interest | 40.00% | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | Berdan Court, Wayne [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate purchase price | $ 42,000,000 | |||
Subsequent Event [Member] | Purchase and Sale Agreement Kushner Companies [Member] | The Regency Club, Middletown [Member] | ||||
Subsequent Event [Line Items] | ||||
Aggregate purchase price | $ 27,250,000 | |||
Subsequent Event [Member] | Amendment To Management Agreement [Member] | Robert S. Hekemian [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of sales fee | 1.65% | |||
Subsequent Event [Member] | Amendment To Management Agreement [Member] | Maximum [Member] | Robert S. Hekemian [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of sales fee | 4.50% | |||
Subsequent Event [Member] | Amendment To Management Agreement [Member] | Minimum [Member] | Robert S. Hekemian [Member] | ||||
Subsequent Event [Line Items] | ||||
Percentage of sales fee | 2.50% |
Selected quarterly financial _3
Selected quarterly financial data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||
Oct. 31, 2019 | Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||
Revenue | $ 15,308 | $ 15,255 | $ 14,786 | $ 14,928 | $ 14,847 | $ 14,631 | $ 14,325 | $ 14,194 | $ 60,277 | $ 57,997 | $ 51,634 | |||
Expenses | 15,045 | 14,990 | 13,956 | [1] | 14,493 | 14,499 | 14,520 | 12,898 | [2] | 15,114 | [3] | 58,484 | 57,031 | |
Net income (loss) | 263 | 265 | 830 | 435 | 348 | 111 | 1,427 | (920) | 1,793 | 966 | 10,683 | |||
Net (income) loss attributable to noncontrolling interests in subsidiaries | 80 | (66) | (44) | 24 | 85 | 181 | (312) | 563 | (6) | 517 | 2,433 | |||
Net income (loss) attributable to common equity | $ 343 | $ 199 | $ 786 | $ 459 | $ 433 | $ 292 | $ 1,115 | $ (357) | $ 1,787 | $ 1,483 | $ 13,116 | |||
Earnings (loss) per share - basic and diluted | $ 0.05 | $ 0.03 | $ 0.11 | [1] | $ 0.07 | $ 0.06 | $ 0.04 | $ 0.16 | [2] | $ (0.05) | [3] | $ 0.26 | $ 0.21 | $ 1.92 |
Dividends declared per share | $ 0.20 | $ 0.125 | 0.125 | $ 0.15 | $ 0.05 | $ 0.05 | 0.05 | $ 0.60 | $ 0.15 | $ 0.15 | ||||
Deferred rents - straight lining | $ (410) | $ (605) | $ (634) | |||||||||||
Gain on sale of property per share | $ 0.12 | |||||||||||||
Loan prepayment cost related to refinacing per share | $ 0.11 | |||||||||||||
Real estate tax refunds and credits for prior year per share | $ 0.13 | |||||||||||||
Gain from sales | $ 800 | |||||||||||||
Loan prepayment cost related to refinancing | $ 1,200 | |||||||||||||
Real estate tax refunds and credits | $ 1,500 | |||||||||||||
[1] | Includes $0.8 million gain on sale of the Patchogue, New York property sold on February 8, 2019. ($0.12 per share) | |||||||||||||
[2] | Includes $1.5 million in real estate tax refunds and credits related to tax years 2017 through second quarter of Fiscal 2018 at the Icon property, owned by Grande Rotunda, LLC, which is a consolidated subsidiary. ($0.13 per share) | |||||||||||||
[3] | Includes $1.2 million loan prepayment cost related to refinancing of the loan for Pierre Towers, LLC, owned by S And A Commercial Associates Limited Partnership, which is a consolidated subsidiary. ($0.11 per share) |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Schedule of Properties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2019 | ||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | $ 352,790 | ||||||
Initial Cost to Company | |||||||
Land | 71,344 | ||||||
Buildings and Improvements | 153,009 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | 13,158 | ||||||
Improvements | 211,355 | ||||||
Carrying Costs | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 84,502 | ||||||
Buildings and Improvements | 364,364 | ||||||
Total | $ 448,866 | [1] | $ 456,658 | $ 433,288 | 448,866 | [1] | |
Accumulated Depreciation | 118,363 | 111,967 | 101,194 | 118,363 | |||
Real estate: | |||||||
Balance, beginning of year | 456,658 | 433,288 | 429,445 | ||||
Additions - Buildings and improvements | 3,386 | 4,562 | 6,602 | ||||
Disposal: Buildings and improvements | (240) | (742) | (443) | ||||
Acquisition of property | 19,550 | ||||||
Sale of property | (10,938) | (2,316) | |||||
Balance, end of year | 448,866 | [1] | 456,658 | 433,288 | |||
Accumulated depreciation: | |||||||
Balance, beginning of year | 111,967 | 101,194 | 92,547 | ||||
Additions - Charged to operating expenses | 11,339 | 11,515 | 10,667 | ||||
Disposal - Buildings and improvements | (217) | (742) | (409) | ||||
Sale of property | (4,726) | (1,611) | |||||
Balance, end of year | 118,363 | $ 111,967 | $ 101,194 | ||||
Residential Properties [Member] | Steuben Arms, River Edge, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 10,021 | ||||||
Initial Cost to Company | |||||||
Land | 364 | ||||||
Buildings and Improvements | 1,773 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 1,501 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 364 | ||||||
Buildings and Improvements | 3,274 | ||||||
Total | [1] | 3,638 | 3,638 | ||||
Accumulated Depreciation | 2,883 | 2,883 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 3,638 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 2,883 | ||||||
Residential Properties [Member] | Steuben Arms, River Edge, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Steuben Arms, River Edge, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Residential Properties [Member] | Berdan Court, Wayne, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 28,815 | ||||||
Initial Cost to Company | |||||||
Land | 250 | ||||||
Buildings and Improvements | 2,206 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 4,779 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 250 | ||||||
Buildings and Improvements | 6,985 | ||||||
Total | [1] | $ 7,235 | 7,235 | ||||
Accumulated Depreciation | 5,613 | 5,613 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 7,235 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 5,613 | ||||||
Residential Properties [Member] | Berdan Court, Wayne, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Berdan Court, Wayne, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Residential Properties [Member] | Westwood Hills, Westwood, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 19,617 | ||||||
Initial Cost to Company | |||||||
Land | 3,849 | ||||||
Buildings and Improvements | 11,546 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 2,808 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 3,849 | ||||||
Buildings and Improvements | 14,354 | ||||||
Total | [1] | $ 18,203 | 18,203 | ||||
Accumulated Depreciation | 9,269 | 9,269 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 18,203 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 9,269 | ||||||
Residential Properties [Member] | Westwood Hills, Westwood, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Westwood Hills, Westwood, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 39 years | ||||||
Residential Properties [Member] | Pierre Towers, Hackensack, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 48,000 | ||||||
Initial Cost to Company | |||||||
Land | 8,390 | ||||||
Buildings and Improvements | 37,486 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | 19 | ||||||
Improvements | 9,653 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 8,409 | ||||||
Buildings and Improvements | 47,139 | ||||||
Total | [1] | $ 55,548 | 55,548 | ||||
Accumulated Depreciation | 18,887 | 18,887 | |||||
Cost for Federal income tax purposes | 43,100 | ||||||
Real estate: | |||||||
Balance, end of year | [1] | 55,548 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 18,887 | ||||||
Residential Properties [Member] | Pierre Towers, Hackensack, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Pierre Towers, Hackensack, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Residential Properties [Member] | Boulders - Rockaway, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 15,615 | ||||||
Initial Cost to Company | |||||||
Land | 1,632 | ||||||
Buildings and Improvements | |||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | 3,386 | ||||||
Improvements | 15,951 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 5,018 | ||||||
Buildings and Improvements | 15,951 | ||||||
Total | [1] | $ 20,969 | 20,969 | ||||
Accumulated Depreciation | 5,744 | 5,744 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 20,969 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 5,744 | ||||||
Residential Properties [Member] | Boulders - Rockaway, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Boulders - Rockaway, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Residential Properties [Member] | Regency Club - Middletown, NY [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 15,588 | ||||||
Initial Cost to Company | |||||||
Land | 2,833 | ||||||
Buildings and Improvements | 17,792 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 730 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 2,833 | ||||||
Buildings and Improvements | 18,522 | ||||||
Total | [1] | $ 21,355 | 21,355 | ||||
Accumulated Depreciation | 2,620 | 2,620 | |||||
Cost for Federal income tax purposes | 13,300 | ||||||
Real estate: | |||||||
Balance, end of year | [1] | 21,355 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 2,620 | ||||||
Residential Properties [Member] | Regency Club - Middletown, NY [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Regency Club - Middletown, NY [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Residential Properties [Member] | Icon - Baltimore, MD [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 65,186 | ||||||
Initial Cost to Company | |||||||
Land | 5,871 | ||||||
Buildings and Improvements | |||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 87,726 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 5,871 | ||||||
Buildings and Improvements | 87,726 | ||||||
Total | [1] | $ 93,597 | 93,597 | ||||
Accumulated Depreciation | 7,135 | 7,135 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 93,597 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 7,135 | ||||||
Residential Properties [Member] | Icon - Baltimore, MD [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Icon - Baltimore, MD [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Residential Properties [Member] | Station Place, Red Bank [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 12,350 | ||||||
Initial Cost to Company | |||||||
Land | 8,793 | ||||||
Buildings and Improvements | 10,757 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 1 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 8,793 | ||||||
Buildings and Improvements | 10,758 | ||||||
Total | [1] | $ 19,551 | 19,551 | ||||
Accumulated Depreciation | 516 | 516 | |||||
Cost for Federal income tax purposes | 4,200 | ||||||
Real estate: | |||||||
Balance, end of year | [1] | 19,551 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 516 | ||||||
Residential Properties [Member] | Station Place, Red Bank [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 7 years | ||||||
Residential Properties [Member] | Station Place, Red Bank [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Damascus Shopping Center, Damascus, MD [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 19,354 | ||||||
Initial Cost to Company | |||||||
Land | 2,950 | ||||||
Buildings and Improvements | 6,987 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | 6,296 | ||||||
Improvements | 17,630 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 9,246 | ||||||
Buildings and Improvements | 24,617 | ||||||
Total | [1] | $ 33,863 | 33,863 | ||||
Accumulated Depreciation | 7,727 | 7,727 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 33,863 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 7,727 | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Damascus Shopping Center, Damascus, MD [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 5 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Damascus Shopping Center, Damascus, MD [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 39 years 6 months | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | |||||||
Initial Cost to Company | |||||||
Land | 29 | ||||||
Buildings and Improvements | |||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | 3,382 | ||||||
Improvements | 7,444 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 3,411 | ||||||
Buildings and Improvements | 7,444 | ||||||
Total | [1] | $ 10,855 | 10,855 | ||||
Accumulated Depreciation | 4,209 | 4,209 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 10,855 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 4,209 | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 5 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 39 years 6 months | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Glen Rock, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | |||||||
Initial Cost to Company | |||||||
Land | 12 | ||||||
Buildings and Improvements | 36 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 235 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 12 | ||||||
Buildings and Improvements | 271 | ||||||
Total | [1] | $ 283 | 283 | ||||
Accumulated Depreciation | 198 | 198 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 283 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 198 | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Glen Rock, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 5 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Glen Rock, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 25 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Westridge Square S/C, Frederick, MD [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 22,200 | ||||||
Initial Cost to Company | |||||||
Land | 9,135 | ||||||
Buildings and Improvements | 19,159 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | (1) | ||||||
Improvements | 4,788 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 9,134 | ||||||
Buildings and Improvements | 23,947 | ||||||
Total | [1] | $ 33,081 | 33,081 | ||||
Accumulated Depreciation | 19,683 | 19,683 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 33,081 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 19,683 | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Westridge Square S/C, Frederick, MD [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 5 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Westridge Square S/C, Frederick, MD [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 31 years 6 months | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Westwood Plaza, Westwood, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 18,973 | ||||||
Initial Cost to Company | |||||||
Land | 6,889 | ||||||
Buildings and Improvements | 6,416 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 2,374 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 6,889 | ||||||
Buildings and Improvements | 8,790 | ||||||
Total | [1] | $ 15,679 | 15,679 | ||||
Accumulated Depreciation | 8,558 | 8,558 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 15,679 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 8,558 | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Westwood Plaza, Westwood, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 5 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Westwood Plaza, Westwood, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 31 years 6 months | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Preakness S/C, Wayne, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 23,737 | ||||||
Initial Cost to Company | |||||||
Land | 9,280 | ||||||
Buildings and Improvements | 24,217 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | 2,877 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 9,280 | ||||||
Buildings and Improvements | 27,094 | ||||||
Total | [1] | $ 36,374 | 36,374 | ||||
Accumulated Depreciation | 11,873 | 11,873 | |||||
Real estate: | |||||||
Balance, end of year | [1] | 36,374 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 11,873 | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Preakness S/C, Wayne, NJ [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 5 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | Preakness S/C, Wayne, NJ [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 39 years 6 months | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | The Rotunda, Baltimore, MD [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | 53,334 | ||||||
Initial Cost to Company | |||||||
Land | 10,392 | ||||||
Buildings and Improvements | 14,634 | ||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | 232 | ||||||
Improvements | 52,858 | ||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 10,624 | ||||||
Buildings and Improvements | 67,492 | ||||||
Total | [1] | $ 78,116 | 78,116 | ||||
Accumulated Depreciation | 13,448 | 13,448 | |||||
Cost for Federal income tax purposes | 169,900 | ||||||
Real estate: | |||||||
Balance, end of year | [1] | 78,116 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | $ 13,448 | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | The Rotunda, Baltimore, MD [Member] | Minimum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 5 years | ||||||
Westwood Plaza and Damascus Shopping Center [Member] | The Rotunda, Baltimore, MD [Member] | Maximum [Member] | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Life on Which Depreciation is Computed | 40 years | ||||||
Land Leased [Member] | Rockaway, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | |||||||
Initial Cost to Company | |||||||
Land | 114 | ||||||
Buildings and Improvements | |||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 114 | ||||||
Buildings and Improvements | |||||||
Total | [1] | $ 114 | 114 | ||||
Accumulated Depreciation | |||||||
Real estate: | |||||||
Balance, end of year | [1] | 114 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | |||||||
Vacant Land [Member] | Rockaway, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | |||||||
Initial Cost to Company | |||||||
Land | 51 | ||||||
Buildings and Improvements | |||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 51 | ||||||
Buildings and Improvements | |||||||
Total | [1] | 51 | 51 | ||||
Accumulated Depreciation | |||||||
Real estate: | |||||||
Balance, end of year | [1] | 51 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | |||||||
Vacant Land [Member] | Franklin Lakes, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | |||||||
Initial Cost to Company | |||||||
Land | 224 | ||||||
Buildings and Improvements | |||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | (156) | ||||||
Improvements | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 68 | ||||||
Buildings and Improvements | |||||||
Total | [1] | 68 | 68 | ||||
Accumulated Depreciation | |||||||
Real estate: | |||||||
Balance, end of year | [1] | 68 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | |||||||
Vacant Land [Member] | Wayne, NJ [Member] | |||||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||||
Encumbrances | |||||||
Initial Cost to Company | |||||||
Land | 286 | ||||||
Buildings and Improvements | |||||||
Costs Capitalized Subsequent to Acquisition | |||||||
Land | |||||||
Improvements | |||||||
Gross Amount at Which Carried at Close of Period | |||||||
Land | 286 | ||||||
Buildings and Improvements | |||||||
Total | [1] | 286 | 286 | ||||
Accumulated Depreciation | |||||||
Real estate: | |||||||
Balance, end of year | [1] | 286 | |||||
Accumulated depreciation: | |||||||
Balance, end of year | |||||||
[1] | Total cost for each property is the same for federal income tax purposes, with the exception of Pierre Towers, the Regency Club, Station Place and the Rotunda properties (Icon and The Rotunda) whose cost for federal income tax purposes is approximately $43.1 million, $13.3 million, $4.2 million and $169.9 million, respectively. |