Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Apr. 30, 2020 | Jun. 09, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | |
Entity Central Index Key | 0000036840 | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Document Period End Date | Apr. 30, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --10-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,856,651 | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 000-25043 | |
Entity Incorporation, State or Country Code | NJ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 289,169 | $ 330,108 |
Construction in progress | 473 | 395 |
Cash and cash equivalents | 31,751 | 38,075 |
Investment in tenancy-in-common | 20,740 | |
Tenants' security accounts | 1,604 | 2,278 |
Receivables arising from straight-lining of rents | 4,495 | 4,374 |
Accounts receivable, net of allowance for doubtful accounts of $959 and $379 as of April 30, 2020 and October 31, 2019, respectively | 1,385 | 1,741 |
Secured loans receivable | 5,136 | 5,053 |
Prepaid expenses and other assets | 5,531 | 5,951 |
Deferred charges, net | 2,556 | 2,643 |
Total Assets | 362,840 | 390,618 |
Liabilities: | ||
Mortgages payable | 302,912 | 352,790 |
Less unamortized debt issuance costs | 1,849 | 2,886 |
Mortgages payable, net | 301,063 | 349,904 |
Due to affiliate | 5,831 | 5,705 |
Deferred trustee compensation payable | 2,633 | 7,610 |
Accounts payable and accrued expenses | 3,487 | 3,097 |
Dividends payable | 1,357 | |
Tenants' security deposits | 2,295 | 3,381 |
Deferred revenue | 828 | 1,390 |
Interest rate cap and swap contracts | 5,498 | 2,126 |
Total Liabilities | 321,635 | 374,570 |
Commitments and contingencies | ||
Common equity: | ||
Shares of beneficial interest without par value: 8,000,000 shares authorized; 6,993,152 shares issued plus 141,057 and 192,122 vested share units granted to Trustees at April 30, 2020 and October 31, 2019, respectively | 27,781 | 28,847 |
Treasury stock, at cost: 136,501 and 206,408 shares at April 30, 2020 and October 31, 2019, respectively | (2,863) | (4,330) |
Undistributed earnings (dividends in excess of net income) | 18,196 | (6,762) |
Accumulated other comprehensive loss | (4,443) | (2,040) |
Total Common Equity | 38,671 | 15,715 |
Noncontrolling interests in subsidiaries | 2,534 | 333 |
Total Equity | 41,205 | 16,048 |
Total Liabilities and Equity | $ 362,840 | $ 390,618 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 959 | $ 379 |
Shares of benefical interest, no par value | ||
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 | 141,057 | 192,122 |
Treasury stock at cost, shares | 136,501 | 206,408 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue: | ||||
Rental income | $ 12,094 | $ 13,325 | $ 25,457 | $ 26,486 |
Reimbursements | 1,506 | 1,337 | 3,422 | 2,995 |
Sundry income | 88 | 124 | 402 | 233 |
Total revenue | 13,688 | 14,786 | 29,281 | 29,714 |
Expenses: | ||||
Property operating expenses | 4,312 | 3,985 | 8,327 | 7,852 |
Special committee expenses | 1,137 | 586 | 4,519 | 586 |
Management fees | 508 | 648 | 1,223 | 1,285 |
Real estate taxes | 2,115 | 2,371 | 4,522 | 4,801 |
Depreciation | 2,530 | 2,783 | 5,462 | 5,607 |
Total expenses | 10,602 | 10,373 | 24,053 | 20,131 |
Operating income | 3,086 | 4,413 | 5,228 | 9,583 |
Investment income | 64 | 113 | 136 | 184 |
Unrealized loss on interest rate cap contract | (5) | (159) | ||
Gain on sale of property | 836 | 836 | ||
Gain on deconsolidation of subsidiary | 27,680 | 27,680 | ||
Loss on investment in tenancy-in-common | (18) | (18) | ||
Interest expense including amortization of deferred financing costs | (3,676) | (4,527) | (7,911) | (9,179) |
Net income | 27,136 | 830 | 25,115 | 1,265 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | 84 | (44) | (157) | (20) |
Net income attributable to common equity | $ 27,220 | $ 786 | $ 24,958 | $ 1,245 |
Earnings per share: | ||||
Basic | $ 3.89 | $ 0.11 | $ 3.57 | $ 0.18 |
Diluted | $ 3.88 | $ 0.11 | $ 3.56 | $ 0.18 |
Weighted average shares outstanding: | ||||
Basic | 6,989 | 6,932 | 6,984 | 6,923 |
Diluted | 7,026 | 6,932 | 7,003 | 6,923 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 27,136 | $ 830 | $ 25,115 | $ 1,265 |
Other comprehensive income (loss): | ||||
Unrealized loss on interest rate swap contracts before reclassifications | (3,086) | (720) | (3,506) | (2,996) |
Amount reclassified from accumulated other comprehensive loss to interest expense | 104 | (101) | 134 | (189) |
Net unrealized loss on interest rate swap contracts | (2,982) | (821) | (3,372) | (3,185) |
Comprehensive income (loss) | 24,154 | 9 | 21,743 | (1,920) |
Net (income) loss attributable to noncontrolling interests | 84 | (44) | (157) | (20) |
Other comprehensive loss: | ||||
Unrealized loss on interest rate swap contracts attributable to noncontrolling interests | 840 | 248 | 969 | 914 |
Comprehensive loss attributable to noncontrolling interests | 924 | 204 | 812 | 894 |
Comprehensive income (loss) attributable to common equity | $ 25,078 | $ 213 | $ 22,555 | $ (1,026) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) - USD ($) $ in Thousands | Shares of Beneficial Interest [Member] | Treasury Shares at Cost [Member] | Undistributed Earnings (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, 2018 | $ 28,288 | $ (4,941) | $ (4,376) | $ 2,517 | $ 21,488 | $ 2,856 | $ 24,344 | |
Stock based compensation expense | 34 | 34 | 34 | |||||
Vested share units granted to Trustees and consultant | 254 | 254 | 254 | |||||
Vested share units issued to consultant | [1] | (20) | 20 | |||||
Distributions to noncontrolling interests | (294) | (294) | ||||||
Net (loss) income | 459 | 459 | (24) | 435 | ||||
Dividends declared, including payable in share units (per share) | (1,040) | (1,040) | (1,040) | |||||
Net unrealized loss on interest rate swaps | (1,698) | (1,698) | (666) | (2,364) | ||||
Balance at Jan. 31, 2019 | 28,556 | (4,921) | (4,957) | 819 | 19,497 | 1,872 | 21,369 | |
Balance at Oct. 31, 2018 | 28,288 | (4,941) | (4,376) | 2,517 | 21,488 | 2,856 | 24,344 | |
Deconsolidation of subsidiary | ||||||||
Net (loss) income | 1,265 | |||||||
Balance at Apr. 30, 2019 | 28,331 | (4,367) | (5,038) | 246 | 19,172 | 1,276 | 20,448 | |
Balance at Jan. 31, 2019 | 28,556 | (4,921) | (4,957) | 819 | 19,497 | 1,872 | 21,369 | |
Stock based compensation expense | 35 | 35 | 35 | |||||
Vested share units granted to Trustees and consultant | 294 | 294 | 294 | |||||
Vested share units issued to consultant and retired Trustees | [1] | (554) | 554 | |||||
Distributions to noncontrolling interests | (392) | (392) | ||||||
Net (loss) income | 786 | 786 | 44 | 830 | ||||
Dividends declared, including payable in share units (per share) | (867) | (867) | (867) | |||||
Net unrealized loss on interest rate swaps | (573) | (573) | (248) | (821) | ||||
Balance at Apr. 30, 2019 | 28,331 | (4,367) | (5,038) | 246 | 19,172 | 1,276 | 20,448 | |
Balance at Oct. 31, 2019 | 28,847 | (4,330) | (6,762) | (2,040) | 15,715 | 333 | 16,048 | |
Stock based compensation expense | 12 | 12 | 12 | |||||
Vested share units granted to Trustees and consultant | 211 | 211 | 211 | |||||
Vested share units issued to consultant and retired Trustees | [1] | (1,401) | 1,401 | |||||
Distributions to noncontrolling interests | (583) | (583) | ||||||
Net (loss) income | (2,262) | (2,262) | 241 | (2,021) | ||||
Net unrealized loss on interest rate swaps | (261) | (261) | (129) | (390) | ||||
Balance at Jan. 31, 2020 | 27,669 | (2,929) | (9,024) | (2,301) | 13,415 | (138) | 13,277 | |
Balance at Oct. 31, 2019 | 28,847 | (4,330) | (6,762) | (2,040) | 15,715 | 333 | 16,048 | |
Deconsolidation of subsidiary | 3,596 | |||||||
Net (loss) income | 25,115 | |||||||
Balance at Apr. 30, 2020 | 27,781 | (2,863) | 18,196 | (4,443) | 38,671 | 2,534 | 41,205 | |
Balance at Jan. 31, 2020 | 27,669 | (2,929) | (9,024) | (2,301) | 13,415 | (138) | 13,277 | |
Stock based compensation expense | 12 | 12 | 12 | |||||
Vested share units granted to Trustees | 166 | 166 | 166 | |||||
Vested share units issued to retired Trustee | [1] | (66) | 66 | |||||
Deconsolidation of subsidiary | 3,596 | 3,596 | ||||||
Net (loss) income | 27,220 | 27,220 | (84) | 27,136 | ||||
Net unrealized loss on interest rate swaps | (2,142) | (2,142) | (840) | (2,982) | ||||
Balance at Apr. 30, 2020 | $ 27,781 | $ (2,863) | $ 18,196 | $ (4,443) | $ 38,671 | $ 2,534 | $ 41,205 | |
[1] | Represents the issuance of treasury shares to consultant and retired Trustees for share units earned. |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Jan. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock dividends payable | $ 20 | $ 26 |
Dividends declared, per share | $ 0.125 | $ 0.15 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Operating activities: | ||
Net income | $ 25,115 | $ 1,265 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 5,462 | 5,607 |
Amortization | 786 | 851 |
Unrealized loss on interest rate cap contract | 159 | |
Stock based compensation expense | 24 | 69 |
Trustee fees, consultant fee and related interest paid in stock units | 377 | 502 |
Gain on sale of property | (836) | |
Gain on deconsolidation of subsidiary | (27,680) | |
Loss on investment in tenancy-in-common | 18 | |
Deferred interest on mortgages | 154 | |
Deferred rents - straight line rent | (121) | (187) |
Bad debt expense | 700 | 68 |
Changes in operating assets and liabilities: | ||
Tenants' security accounts | (117) | 112 |
Accounts receivable, prepaid expenses and other assets | 173 | 1,421 |
Accounts payable, accrued expenses and deferred trustee compensation payable | (4,234) | (744) |
Deferred revenue | (515) | (203) |
Due to affiliate - accrued interest | 126 | 143 |
Net cash provided by operating activities | 268 | 8,227 |
Investing activities: | ||
Capital improvements - existing properties | (826) | (1,543) |
Deconsolidation of subsidiary cash and cash equivalents | (1,383) | |
Proceeds from sale of commercial property | 7,060 | |
Net cash (used in) provided by investing activities | (2,209) | 5,517 |
Financing activities: | ||
Repayment of mortgages | (2,032) | (7,378) |
Deferred financing costs | (56) | |
Dividends paid | (1,357) | (1,351) |
Distributions to noncontrolling interests | (583) | (686) |
Net cash used in financing activities | (3,972) | (9,471) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (5,913) | 4,273 |
Cash, cash equivalents and restricted cash, beginning of period | 42,488 | 26,394 |
Cash, cash equivalents and restricted cash, end of period | 36,575 | 30,667 |
Supplemental disclosure of cash flow data: | ||
Interest paid, net of amounts capitalized | 7,020 | 8,175 |
Operating activities: | ||
Commercial tenant security deposits applied to accounts receivable | 384 | |
Investing activities: | ||
Accrued capital expenditures, construction costs, pre-development costs and interest | 161 | 155 |
Financing activities: | ||
Dividends declared but not paid | 848 | |
Dividends paid in share units | 46 | |
Vested share units issued to consultant and retired trustee | 1,467 | 574 |
Deconsolidation of subsidiary: | ||
Real estate, at cost, net of accumulated depreciation | (36,225) | |
Accounts receivable, net of allowance for doubtful accounts | (55) | |
Prepaid expenses and other assets | (315) | |
Mortgage payable | 48,000 | |
Unamortized debt issuance costs | (489) | |
Accounts payable and accrued expenses | 353 | |
Tenants' security deposits | 585 | |
Deferred revenue | 47 | |
Deconsolidation of subsidiary cash and cash equivalents | (1,383) | |
Net carrying value of assets and liabilities deconsolidated | 10,518 | |
Recognition of retained investment in tenancy-in-common at fair value | 20,758 | |
Derecognition of noncontrolling interest in subsidiary | $ (3,596) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation of Cash Reported in Balance Sheet) - USD ($) $ in Thousands | Apr. 30, 2020 | Apr. 30, 2019 |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the balance sheet: | ||
Cash and cash equivalents | $ 31,751 | $ 25,291 |
Tenants' security accounts | 1,604 | 2,236 |
Mortgage escrows (included in prepaid expenses and other assets) | 3,220 | 3,140 |
Total cash, cash equivalents and restricted cash | $ 36,575 | $ 30,667 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | Note 1 - Basis of presentation: The accompanying interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to the rules of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnotes required by GAAP for complete financial statements have been omitted. It is the opinion of management that all adjustments considered necessary for a fair presentation have been included, and that all such adjustments are of a normal recurring nature. The consolidated results of operations for the six and three-month periods ended April 30, 2020 are not necessarily indicative of the results to be expected for the full year or any other period. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended October 31, 2019 of First Real Estate Investment Trust of New Jersey (“FREIT”, “us”, “we”, “our” or the “Company”). Certain prior period statement of income and cash flow line items have been reclassified to conform to the current year presentation. |
Recently issued accounting stan
Recently issued accounting standards | 6 Months Ended |
Apr. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently issued accounting standards | Note 2 - Recently issued accounting standards: In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-02, “ Leases (Topic 842) Leases (Topic 840) “Revenue From Contracts With Customers” Targeted Improvements Substantially all of FREIT’s revenues are within the scope of ASC 842. FREIT will continue to account for its leases as operating leases. Leases for FREIT’s apartment buildings and complexes are generally short-term in nature (one to two-years in duration), based on fixed payments and contain separate lease components within the contract for each revenue stream (i.e. base rent, garage rent, etc.). Given the nature of these leases, the adoption of ASU No. 2016-02 had no impact on the accounting for the Company’s leases within the residential segment. With respect to most of FREIT’s commercial properties, lease terms range from five years to twenty-five years with options, which if exercised would extend the terms of such leases. These lease agreements generally provide for reimbursement of real estate taxes, maintenance, insurance and certain other operating expenses of the properties (known as common area maintenance costs (“CAM”)). Some of FREIT’s leases in its commercial segment may contain lease and nonlease components. Generally, the primary lease component in most of FREIT’s commercial leases is base rent charged for the rental of space in an office complex/shopping center. Depending on the lease, the following nonlease components could be present: 1) fixed (or in substance fixed) payments related to real estate taxes and insurance; 2) variable payments that depend on an index or rate initially measured using the index or rate at the commencement date; and 3) fixed CAM reimbursements or CAM expense reimbursements based on the tenant’s proportionate share of the allocable operating expenses and CAM capital expenditures for the property. FREIT accrues fixed lease income on a straight-line basis over the terms of the leases. FREIT accrues reimbursements from tenants for recoverable portions of real estate taxes, insurance, and CAM as variable lease consideration in the period the applicable expenditures are incurred recognizing differences between estimated recoveries and the final billed amounts in the subsequent year. Some of FREIT’s retail tenants are also required to pay overage rents based on sales over a stated base amount during the lease year. FREIT recognizes this variable lease consideration only when each tenant’s sales exceed the applicable sales threshold. Given that this standard has minimal impact on real estate operating lessors, the adoption of this new accounting guidance did not have a significant impact on FREIT’s consolidated financial statements and footnote disclosures. As a result, there was no cumulative effect adjustment to opening equity. Additionally, based on this new accounting guidance, the Company will no longer be able to capitalize certain leasing costs, such as legal expenses, as it relates to activities before a lease is entered into. (See Note 15 to FREIT’s condensed consolidated financial statements for further details). In June 2016, the FASB issued ASU No. 2016-13 "Financial Instruments – Credit Losses (Topic 326)" “Codification Improvements to Topic 326, Financial Instruments—Credit Losses” Leases (Topic 842) 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")” This guidance requires that for cash flow and net investment hedges, all changes in the fair value of the hedging instrument (i.e. both the effective and ineffective portions) will be deferred in other comprehensive income and recognized in earnings at the same time that the hedged item affects earnings. For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this update. The amended presentation and disclosure guidance is required only prospectively. The adoption of ASU 2017-12 had no impact on the accounting for FREIT’s interest rate swap contracts, which were previously deemed effective cash flow hedges, on the following entities: Damascus Centre. LLC (“Damascus Centre”), Wayne PSC, LLC (“Wayne PSC”), FREIT Regency, LLC (“Regency”) and Station Place on Monmouth, LLC (“Station Place”). Accordingly, these interest rate swap contracts will continue to be accounted for by marking these contracts to market, taking into account present interest rates compared to the contracted fixed rate over the life of the contract and recording the unrealized gain or loss on the swaps in comprehensive income. The adoption of this accounting guidance has an impact on the accounting for Grande Rotunda, LLC’s (“Grande Rotunda”) interest rate cap, which was previously deemed an ineffective cash flow and for which previous to the adoption of this guidance, the change in the fair value was reported in the statements of income. Based on this new guidance, FREIT will record the change in the fair value of Grande Rotunda’s interest rate cap in other comprehensive income on a prospective basis. FREIT did not record an adjustment in Fiscal 2020 to the opening balance of retained earnings as the value of Grande Rotunda’s interest rate cap was $0 as of October 31, 2019. (See Note 4 to FREIT’s condensed consolidated financial statements for additional details). In October 2018, the FASB issued ASU 2018-16 “ Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes to ASC Topic 815, Derivatives and Hedging” In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) focused on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 global pandemic. Under existing GAAP, the Company would have to determine, on a lease by lease basis, if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows the Company, if certain criteria have been met, to bypass the lease by lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. As of April 30, 2020, we have not modified any of our leases attributed to the COVID-19 global pandemic and as a result, have not yet made a determination on whether to elect this option. Accordingly, the Lease Modification Q&A did not have an impact on our condensed consolidated financial statements. |
Earnings per share
Earnings per share | 6 Months Ended |
Apr. 30, 2020 | |
Earnings per share: | |
Earnings per share | Note 3 – Earnings per share: Basic earnings per share is calculated by dividing net income attributable to common equity (numerator) by the weighted average number of shares and vested share units (See Note 14 to FREIT’s condensed consolidated financial statements) outstanding during each period (denominator). The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional shares that would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options, were issued during the period using the Treasury Stock method. Under the Treasury Stock method, the assumption is that the proceeds received upon exercise of the options, including the unrecognized stock option compensation expense attributable to future services, are used to repurchase FREIT’s stock at the average market price during the period, thereby reducing the number of shares to be added in computing diluted earnings per share. For the six months ended April 30, 2020, the outstanding stock options increased the average dilutive shares outstanding by approximately 19,000 shares with a $0.01 impact on earnings per share. For the three months ended April 30, 2020, the outstanding stock options increased the average dilutive shares outstanding by approximately 37,000 shares with a $0.01 impact on earnings per share. For the six and three months ended April 30, 2019, the outstanding stock options were anti-dilutive with no impact on earnings per share. There were 38,000 anti-dilutive shares for the six and three months ended April 30, 2020. The number of anti-dilutive shares which have been excluded from the computation of diluted earnings per share was approximately 311,000 for both the six and three months ended April 30, 2019. Anti-dilutive shares consist of out-of-the money stock options under the Equity Incentive Plan. |
Interest rate cap and swap cont
Interest rate cap and swap contracts | 6 Months Ended |
Apr. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate cap and swap contracts | Note 4 - Interest rate cap and swap contracts: On February 7, 2018, Grande Rotunda, 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 April 30, 2020, the total amount outstanding on this loan was approximately $118.5 million. As part of this transaction, Grande Rotunda had 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 which matured on March 5, 2020. On February 28, 2020, Grande Rotunda purchased an interest rate cap on LIBOR, with an effective date of March 5, 2020, for the full amount that can be drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for one year. At April 30, 2020, the derivative financial instrument had a notional amount of $121.9 million and a maturity date of March 5, 2021. On December 7, 2017, Station Place (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 April 30, 2020, the total amount outstanding on this loan was approximately $12.3 million. In order to minimize interest rate volatility during the term of this loan, Station Place 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 April 30, 2020, the derivative financial instrument had a notional amount of $12.3 million and a maturity date of December 2027. On September 29, 2016, Wayne PSC, 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 April 30, 2020, the total amount outstanding on this loan was approximately $23.4 million. In order to minimize interest rate volatility during the term of the loan, Wayne PSC 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 April 30, 2020, the derivative financial instrument had a notional amount of approximately $23.4 million and a maturity date of October 2026. On December 26, 2012, Damascus Centre 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 April 30, 2020 was approximately $19.1 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 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 April 30, 2020, the derivative financial instrument had a notional amount of approximately $19.1 million and a maturity date of January 2023. On December 29, 2014, Regency 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 April 30, 2020, the total amount outstanding on this loan was approximately $15.4 million. In order to minimize interest rate volatility during the term of the loan, Regency 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 April 30, 2020, the derivative financial instrument had a notional amount of approximately $15.4 million and a maturity date of December 2024. In accordance with ASU 2017-12, which was adopted by FREIT in the first quarter of Fiscal 2020, FREIT is accounting for the Damascus Centre, Regency, Wayne PSC and Station Place interest rate swaps and the Grande Rotunda interest rate cap as cash flow hedges marking these contracts to market, taking into account present interest rates compared to the contracted fixed rate over the life of the contract and recording the unrealized gain or loss on the swaps in comprehensive income. For the six and three months ended April 30, 2020, FREIT recorded an unrealized loss of approximately $3,372,000 and $2,982,000, respectively, in comprehensive loss representing the change in the fair value of these cash flow hedges during such period. As of April 30, 2020, there was a liability of approximately $730,000 for the Damascus Centre swaps, $1,394,000 for the Wayne PSC swap, $1,523,000 for the Regency swap, $1,851,000 for the Station Place swap and $0 for the Grande Rotunda interest rate cap. In Fiscal 2019, FREIT was accounting for its interest rate swaps and cap contract in accordance with ASC 815. For the six and three months ended April 30, 2019, FREIT recorded an unrealized loss of approximately $3,185,000 and $821,000, respectively, in comprehensive loss representing the change in the fair value of these cash flow hedges during such period. For the six and three months ended April 30, 2019, FREIT recorded an unrealized loss in the condensed consolidated statements of income of approximately $159,000 and $5,000, respectively, for the Grande Rotunda interest rate cap representing the change in the fair value of this ineffective cash flow hedge during such period. As of October 31, 2019, FREIT recorded a liability of approximately $179,000 for the Damascus Centre swaps, $53,000 for the Wayne PSC swap, $860,000 for the Regency swap, $1,034,000 for the Station Place swap and $0 for the Grande Rotunda interest rate cap. The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). |
Property disposition
Property disposition | 6 Months Ended |
Apr. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property disposition | Note 5 – Property disposition: 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 this property did not represent a strategic shift that would have a major impact on FREIT’s operations or financial results, the property’s operations were not reflected as discontinued operations in the accompanying condensed consolidated financial statements. |
Termination of Purchase and Sal
Termination of Purchase and Sale Agreement | 6 Months Ended |
Apr. 30, 2020 | |
Business Combination, Consideration Transferred [Abstract] | |
Termination of Purchase and Sale Agreement | Note 6 – Termination of Purchase and Sale Agreement: On January 14, 2020, FREIT and certain of its affiliates (collectively, the “Sellers”), entered into a Purchase and Sale Agreement (as subsequently amended, the “Purchase and Sale Agreement”) with Sinatra Properties LLC (the “Purchaser”), which as subsequently amended, provided for the sale by the Sellers to the Purchaser of 100% of the Sellers’ ownership interests in six real properties held by the Sellers in exchange for the purchase price described therein, subject to the terms and conditions of the Purchase and Sale Agreement. On April 30, 2020, the Sellers delivered written notice to the Purchaser of the Sellers’ termination of the Purchase and Sale Agreement in accordance with its terms due to the occurrence of a “Purchaser Default” thereunder, based on the Purchaser’s failure to perform its obligations under the Purchase and Sale Agreement and close the transactions contemplated therein. Upon the execution of the Purchase and Sale Agreement, the Purchaser delivered into escrow a deposit in the amount of $15 million (the “Deposit”), in the form of an unconditional, irrevocable letter of credit in such amount (the “Letter of Credit”). The Purchase and Sale Agreement provides that the Sellers’ exclusive remedy, in the event of a “Purchaser Default” and the termination of the Purchase and Sale Agreement, is the forfeiture of the Deposit to the Sellers as liquidated damages. Accordingly, contemporaneously with the Sellers’ delivery of the termination notice to the Purchaser, the Sellers delivered written notice to the escrow agent requesting that the escrow agent release the Letter of Credit from escrow and deliver same to the Sellers. On May 6, 2020, the Purchaser filed a complaint (the “Complaint”) against the Sellers in the Superior Court of New Jersey, in which, among other things, the Purchaser alleges breach of contract and breach of the covenant of good faith and fair dealing against the Sellers in connection with the Sellers’ termination of the Purchase and Sale Agreement. The Purchaser seeks (a) a judgment of specific performance compelling the Sellers to convey the properties under the Purchase and Sale Agreement to the Purchaser; (b) declaratory judgment from the court that (i) the Purchase and Sale Agreement is not terminated, (ii) the Purchaser is not in default under the Purchase and Sale Agreement, and (iii) the Sellers are in default under the Purchase and Sale Agreement, subject to a right to cure; (c) an order for injunctive relief compelling the Sellers to perform the Purchase and Sale Agreement; (d) in the event that the court does not order specific performance, a judgment directing that the Purchaser’s $15 million deposit under the Purchase and Sale Agreement be returned to the Purchaser, and compensatory, consequential and incidental damages in an amount to be determined at trial; and (e) attorneys’ fees and costs. The Sellers believe that the allegations set forth in the Complaint are without merit and intend to vigorously defend the action and enforce the Sellers’ rights and remedies under the Purchase and Sale Agreement in connection with the “Purchaser Default” thereunder, including the Purchaser’s forfeiture of its $15 million deposit to the Sellers as liquidated damages as provided in the Purchase and Sale Agreement. As of the quarter ended April 30, 2020, the $15 million deposit has not been included in income in the accompanying condensed consolidated statements of income. During the six months ended April 30, 2020 and 2019, the Special Committee of the Board incurred on behalf of the Company approximately $4,519,000 and $586,000, respectively, of expenses related to its activities. During the three months ended April 30, 2020 and 2019, the Special Committee of the Board incurred on behalf of the Company approximately $1,137,000 and $586,000, respectively, of expenses related to its activities. |
Adoption of Plan of Liquidation
Adoption of Plan of Liquidation | 6 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of Plan of Liquidation | Note 7 – Adoption of Plan of Liquidation: On January 14, 2020, the Trust’s Board of Trustees adopted a Plan of Voluntary Liquidation with respect to the Trust (the “Plan of Liquidation”), which provided for the voluntary dissolution, termination and liquidation of the Trust by the sale, conveyance, transfer or delivery of all of the Trust’s remaining assets in accordance with the terms and conditions of the Plan of Liquidation and the Internal Revenue Code of 1986, as amended, and the Treasury regulations thereunder. The Plan of Liquidation provided that it would become effective upon (i) approval by a majority of the votes cast by Trust’s shareholders present in person or represented by proxy at a duly called meeting of the Trust’s shareholders at which a quorum is present and (ii) the consummation of the transactions contemplated by the Purchase and Sale Agreement. While the Plan of Liquidation received shareholder approval, as the Sellers terminated the Purchase and Sale Agreement by written notice delivered to the Purchaser on April 30, 2020, and the transactions contemplated thereby will not be consummated, the Plan of Liquidation will not become effective, and the Trust will not proceed with the sale, conveyance, transfer or delivery of all of the Trust’s remaining assets as contemplated by the Plan of Liquidation that was adopted by the Board on January 14, 2020. |
Management agreement, fees and
Management agreement, fees and transactions with related party | 6 Months Ended |
Apr. 30, 2020 | |
Related Party Transactions [Abstract] | |
Management agreement, fees and transactions with related party | Note 8 - Management agreement, fees and transactions with related party: Hekemian & Co., Inc. (“Hekemian”) currently manages all the properties owned by FREIT and its affiliates, except for the office building at The Rotunda located in Baltimore, Maryland, which is managed by an independent third party management company. The management agreement between FREIT and Hekemian dated as of November 1, 2001 (“Management Agreement”) expires on October 31, 2021, and is automatically renewed for successive periods of two years unless either party gives not less than six (6) months prior notice of non-renewal. 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. The First Amendment would become effective if, and only if, the Plan of Liquidation became effective. Since the Plan of Liquidation will not become effective due to the termination of the Purchase and Sale Agreement, the First Amendment will not become effective. (See Notes 6 and 7 to FREIT’s condensed consolidated financial statements for further details) The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Management fees, charged to operations, were approximately $1,198,000 and $1,255,000 for the six months ended April 30, 2020 and 2019, respectively, and $499,000 and $636,000 for the three months ended April 30, 2020 and 2019, 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 $704,000 and $311,000 for the six months ended April 30, 2020 and 2019, respectively, and $229,000 and $178,000 for the three months ended April 30, 2020 and 2019, respectively. 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 $56,000 and $48,000 for the six months ended April 30, 2020 and 2019, respectively, and $4,000 and $20,000 for the three months ended April 30, 2020 and 2019, respectively. 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 may be negotiated between Hekemian and FREIT with respect to such additional services. Such fees incurred during the six months ended April 30, 2020 and 2019 were approximately $0 and $131,250, respectively, and $0 and $131,250 for the three months ended April 30, 2020 and 2019, respectively. Fees incurred during Fiscal 2019 related to commissions to Hekemian for the sale of the Patchogue property. Robert S. Hekemian, Jr., Chief Executive Officer, President and a Trustee of the Trust, is the President and Chief Operating Officer of Hekemian. David B. Hekemian, a Trustee of the Trust, is the Principal/Broker – Salesperson and Director of Commercial Brokerage of Hekemian. Robert S. Hekemian, the former Chairman and Chief Executive Officer of the Trust, served as a consultant to the Trust and Chairman of the Board and Chief Executive Officer of Hekemian prior to his death in December 2019. Allan Tubin, Chief Financial Officer and Treasurer of the Trust, is the Chief Financial Officer of Hekemian. Trustee fee expense (including interest) incurred by FREIT for the six months ended April 30, 2020 and 2019 was approximately $21,000 and $114,000, respectively, for Robert S. Hekemian, $236,000 and $194,000, respectively, for Robert S. Hekemian, Jr., $15,000 and $7,000, respectively, for Allan Tubin and $31,000 and $28,000, respectively, for David Hekemian. Trustee fee expense (including interest) incurred by FREIT for the three months ended April 30, 2020 and 2019 was approximately $0 and $54,000, respectively, for Robert S. Hekemian, $117,000 and $99,000, respectively, for Robert S. Hekemian, Jr., $8,000 and $7,000, respectively, for Allan Tubin and $15,000 and $16,000, respectively, for David Hekemian (See Note 14 to FREIT’s condensed consolidated financial statements). Effective upon the late Robert S. Hekemian’s retirement as Chairman, Chief Executive Officer and as a Trustee on April 5, 2018, FREIT entered into a Consulting Agreement with Mr. Hekemian, pursuant to which Mr. Hekemian provided consulting services to the Trust through December 2019. The Consulting Agreement obliged Mr. Hekemian to provide advice and consultation with respect to matters pertaining to the Trust and its subsidiaries, affiliates, assets and business, for no fewer than 30 hours per month during the term of the agreement. FREIT 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 the six months ended April 30, 2020 and 2019, consulting fee expense for Robert S. Hekemian was approximately $8,000 and $30,000, respectively. For the three months ended April 30, 2020 and 2019, consulting fee expense for Robert S. Hekemian was approximately $0 and $15,000, respectively. Rotunda 100, LLC owns a 40% minority equity interest in Grande Rotunda, LLC and FREIT owns a 60% equity interest in Grande Rotunda, LLC. Damascus 100, LLC owns a 30% minority equity interest in Damascus Centre, LLC and FREIT owns a 70% equity interest in Damascus Centre, LLC. The equity owners of Rotunda 100, LLC and Damascus 100, LLC 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, LLC. These advances were in the form of secured loans that bear interest at rates that float at 225 basis points over the ninety (90) day LIBOR, as adjusted each November 1, February 1, May 1 and August 1. These loans are secured by the Hekemian employees’ interests in Rotunda 100 and are full recourse loans. The notes originally had maturity dates at the earlier of (a) ten (10) years after issue (Grande Rotunda, LLC – 6/19/2015), 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 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. The aggregate outstanding principal balance of the Rotunda 100 notes was $4,000,000 at both April 30, 2020, and October 31, 2019. The accrued but unpaid interest related to these notes as of April 30, 2020 and October 31, 2019 amounted to approximately $1,136,000 and $1,053,000, respectively, and is included in secured loans receivable on the accompanying condensed consolidated balance sheets. 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 held with Wells Fargo at that time was at its maximum level, with no additional funding available to draw. Accordingly, during Fiscal 2017 the equity owners in Grande Rotunda, 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 April 30, 2020 and October 31, 2019, Rotunda 100 has funded Grande Rotunda, LLC with approximately $5.8 million and $5.7 million (including interest), respectively, which is included in due to affiliate on the accompanying condensed consolidated balance sheets. |
Mortgage financings and line of
Mortgage financings and line of credit | 6 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Mortgage financings and line of credit | Note 9 – Mortgage financings and line of credit: 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 loan, secured by an apartment building located in Wayne, New Jersey, has a term of ten years and bears a fixed interest rate equal to 3.54%. Interest-only payments are required each month for the first five years of the term and thereafter, principal payments plus accrued interest will be required each month through maturity. 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. On April 3, 2019, WestFREIT, Corp. (owned 100% by FREIT) 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 secured by the Westridge Square Shopping Center, required monthly principal payments of $47,250 plus interest based on a floating interest rate equal to 240 basis points over the one-month LIBOR and had a maturity date of May 1, 2020. This loan was extended for another six months with a new maturity date of November 1, 2020 under the same terms and conditions of the existing agreement while the lender is working closely with the Company to further modify and extend this loan. 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 loan is secured by the Rotunda property, 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 had 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 which matured on March 5, 2020. On February 28, 2020, Grande Rotunda purchased an interest rate cap on LIBOR, with an effective date of March 5, 2020, for the full amount that can be drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for one year. As of April 30, 2020, approximately $118.5 million of this loan facility was drawn down and the interest rate was approximately 3.83%. 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 is $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%. As of April 30, 2020 and October 31, 2019, there was no amount outstanding and $13 million was available under the line of credit. As a result of the negative impact of the COVID-19 pandemic at our commercial properties, we have requested debt payment relief from certain of our lenders on the retail properties, and have been granted debt service relief in the form of deferral of principal and/or interest payments for up to six months to provide debt service relief during the COVID-19 pandemic, with the deferred payments of approximately $260,000 as of April 30, 2020 being due at maturity of the loan. |
Fair value of long-term debt
Fair value of long-term debt | 6 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | Note 10 – Fair value of long-term debt: The following table shows the estimated fair value and net carrying value of FREIT’s long-term debt at April 30, 2020 and October 31, 2019: ($ in Millions) April 30, 2020 October 31, 2019 Fair Value $309.6 $352.9 Carrying Value, Net $301.1 $349.9 Fair values are estimated based on market interest rates at April 30, 2020 and October 31, 2019 and on a discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value is based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). |
Segment information
Segment information | 6 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Note 11 - Segment information: FREIT has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires different operating strategies and management expertise. The commercial segment is comprised of eight (8) properties and the residential segment is comprised of seven (7) properties, excluding the Pierre Towers property which was converted into a tenancy-in-common and deconsolidated from FREIT’s operating results as of February 28, 2020 (See Note 16 to FREIT’s condensed consolidated financial statements for further details). The accounting policies of the segments are the same as those described in Note 1 in FREIT’s Annual Report on Form 10-K for the fiscal year ended October 31, 2019. 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 GAAP, and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income attributable to common equity for the six and three month periods ended April 30, 2020 and 2019. Asset information is not reported since FREIT does not use this measure to assess performance. Six Months Ended Three Months Ended April 30, April 30, 2020 2019 2020 2019 (In Thousands of Dollars) (In Thousands of Dollars) Real estate rental revenue: Commercial $ 13,548 $ 13,079 $ 6,534 $ 6,452 Residential 15,612 16,448 7,096 8,214 Total real estate rental revenue 29,160 29,527 13,630 14,666 Real estate operating expenses: Commercial 5,896 5,651 3,172 2,820 Residential 6,348 6,896 2,707 3,401 Total real estate operating expenses 12,244 12,547 5,879 6,221 Net operating income: Commercial 7,652 7,428 3,362 3,632 Residential 9,264 9,552 4,389 4,813 Total net operating income $ 16,916 $ 16,980 $ 7,751 $ 8,445 Recurring capital improvements - residential $ (226 ) $ (285 ) $ (130 ) $ (161 ) Reconciliation to condensed consolidated net income attributable to common equity: Segment NOI $ 16,916 $ 16,980 $ 7,751 $ 8,445 Deferred rents - straight lining 121 187 58 120 Investment income 136 184 64 113 Unrealized loss on interest rate cap contract — (159 ) — (5 ) General and administrative expenses (1,828 ) (1,391 ) (1,056 ) (783 ) Special committee expenses (4,519 ) (586 ) (1,137 ) (586 ) Gain on sale of property — 836 — 836 Gain on deconsolidation of subsidiary 27,680 — 27,680 — Loss on investment in tenancy-in-common (18 ) — (18 ) — Depreciation (5,462 ) (5,607 ) (2,530 ) (2,783 ) Financing costs (7,911 ) (9,179 ) (3,676 ) (4,527 ) Net income 25,115 1,265 27,136 830 Net (income) loss attributable to noncontrolling interests in subsidiaries (157 ) (20 ) 84 (44 ) Net income attributable to common equity $ 24,958 $ 1,245 $ 27,220 $ 786 |
Income taxes
Income taxes | 6 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 12 – Income taxes: FREIT has elected to be treated as a REIT for federal income tax purposes and as such intends to distribute 100% of its ordinary taxable income to its shareholders as dividends for the fiscal year ending October 31, 2020. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income was recorded in FREIT’s condensed consolidated financial statements. FREIT distributed 100% of its ordinary taxable income and 100% of its capital gain from the sale of the Patchogue, New York property 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 and such gain was recorded in FREIT’s condensed consolidated financial statements for the fiscal year ended October 31, 2019. As of April 30, 2020, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2017 remain open to examination by the major taxing jurisdictions to which FREIT is subject. |
Equity incentive plan
Equity incentive plan | 6 Months Ended |
Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity incentive plan | Note 13 – Equity incentive plan: On September 4, 2014, the Board approved the grant of an aggregate of 246,000 non-qualified share options under FREIT’s Equity Incentive Plan (“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. As of April 30, 2020, 442,060 shares are available for issuance under the Plan. The following table summarizes stock option activity for the six-month period ended April 30, 2020: No. of Options Weighted Average Outstanding Exercise Price Options outstanding beginning of period 310,740 $ 18.35 Options granted during period — — Options forfeited/cancelled during period — — Options outstanding end of period 310,740 $ 18.35 Options vested and expected to vest 308,310 Options exercisable at end of period 261,140 For the six-month periods ended April 30, 2020 and 2019, compensation expense related to stock options granted amounted to approximately $24,000 and $69,000, respectively. For the three-month periods ended April 30, 2020 and 2019, compensation expense related to stock options granted amounted to approximately $12,000 and $35,000, respectively. At April 30, 2020, there was approximately $94,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately 2.6 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at April 30, 2020 was approximately $125,000 and $26,000, respectively. |
Deferred fee plan
Deferred fee plan | 6 Months Ended |
Apr. 30, 2020 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred fee plan | Note 14 – Deferred fee plan: On September 4, 2014, the Board approved amendments, effective November 1, 2014, to the FREIT 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 six and three-month periods ended April 30, 2020 and 2019 were deferred under the Deferred Fee Plan except for fees payable to one Trustee, who elected to receive such fees in cash. As a result of the amendment to the Deferred Fee Plan described above, for the six-month periods ended April 30, 2020 and 2019, the aggregate amounts of deferred Trustee fees together with related interest and dividends were approximately $367,000 and $517,300, respectively, which have been paid through the issuance of 18,046 and 32,753 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 six-month periods ended April 30, 2020 and 2019, FREIT has charged as expense approximately $367,000 and $471,200, respectively, representing deferred Trustee fees and interest, and the balance of approximately $0 and $46,100, 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. 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 and were paid in a single lump sum in the amount of approximately $4.8 million. As of April 30, 2020 and October 31, 2019, approximately $1,542,000 and $4,422,000, respectively, of fees has been deferred together with accrued interest of approximately $1,091,000 and $3,188,000, respectively. |
Rental Income
Rental Income | 6 Months Ended |
Apr. 30, 2020 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Rental Income | Note 15 – Rental Income: Commercial tenants: As discussed in Note 2, fixed lease income under our operating leases generally includes fixed minimum lease consideration and fixed CAM reimbursements which are accrued on a straight-line basis over the terms of the leases. Variable lease income includes consideration based on sales, as well as reimbursements for real estate taxes, maintenance, insurance and certain other operating expenses of the properties. Minimum fixed lease consideration (in thousands of dollars) under non-cancelable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration, for the years ending October 31, as of April 30, 2020, is as follows: Year Ending October 31, Amount 2020* $ 19,936 2021 18,984 2022 15,727 2023 13,099 2024 10,948 Thereafter 46,774 Total $ 125,468 *Amount represents full fiscal year 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 the six and three-month periods ended April 30, 2020 and 2019 were not material. Residential tenants: Lease terms for residential tenants are usually one to two years. |
Investment in tenancy-in-common
Investment in tenancy-in-common | 6 Months Ended |
Apr. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in tenancy-in-common | Note 16 – Investment in tenancy-in-common: On February 28, 2020, FREIT reorganized its subsidiary S and A Commercial Associates Limited Partnership (“S&A”) from a joint venture partnership into a tenancy-in-common form of ownership (“TIC”). Prior to this reorganization, FREIT owned a 65% membership interest in S&A, which owned 100% of the Pierre Towers property located in Hackensack, NJ through its 100% interest in Pierre Towers, LLC. Accordingly, FREIT consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, liabilities, operations and cash flows with the interest not owned by FREIT reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT ultimately acquired a 65% undivided interest in the Pierre Towers property which was formerly owned by S&A. Based on the guidance of ASC 810, “ Consolidation As of April 30, 2020, FREIT’s investment in TIC was approximately $20.7 million with a loss on investment of approximately $18,000 recognized in the accompanying condensed consolidated statements of income for the six and three months ended April 30, 2020 and 2019. Hekemian currently manages the Pierre Towers property based on a management agreement between the owners of the TIC and Hekemian dated as of February 28, 2020, which expires on February 28, 2021, and is automatically renewed for successive periods of one year unless either party gives not less than sixty (60) days prior notice of non-renewal. The management agreement requires the payment of management fees equal to 5% of rents collected. Management fees, charged to operations, were approximately $62,000 for the period from February 28, 2020 through April 30, 2020. The following table summarizes the balance sheet of the Pierre Towers property as of April 30, 2020 accounted for by the equity method: April 30, 2020 (In Thousands of Dollars) Real estate, net $ 80,950 Cash and cash equivalents 1,032 Tenants' security accounts 577 Receivables and other assets 501 Total assets $ 83,060 Mortgages payable, net of unamortized debt issuance costs $ 50,089 Accounts payable and accrued expenses 391 Tenants' security deposits 580 Deferred revenue 93 Equity 31,907 Total liabilities & equity $ 83,060 FREIT's investment in TIC (65% interest) $ 20,740 The following table summarizes the income statement of the Pierre Towers property for the period from February 28, 2020 through April 30, 2020 accounted for by the equity method: For the period from February 28, 2020 through April 30, 2020 (In Thousands of Dollars) Revenues $ 1,242 Operating expenses 643 Net operating income 599 Depreciation 358 Interest expense including amortization of deferred financing costs 268 Net loss $ (27 ) FREIT's loss on investment in TIC (65% interest) $ (18 ) |
COVID-19 Pandemic
COVID-19 Pandemic | 6 Months Ended |
Apr. 30, 2020 | |
Covid-19 Pandemic | |
COVID-19 Pandemic | Note 17 – COVID-19 Pandemic: The international spread of COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. Many states in the U.S., including New Jersey, New York and Maryland, where our properties are located, have implemented stay-at-home orders for all "non-essential" business. Consequently, the global, U.S. and local economies have suffered significant disruption and there has been significant volatility in the financial markets. Many businesses have moved to a remote work environment, or have been forced to suspend operations completely. The COVID-19 pandemic and the actions taken by individuals, businesses and government authorities to reduce its spread have caused substantial lost business revenue, changes in consumer behavior and large reductions in liquidity and fair value of many assets. These and other adverse conditions that may unfold in the future are expected to continue until such time as government stay-at-home and shutdown orders are fully or partially lifted, and business operations and commercial activity can resume. The full or partial lifting of government stay-at-home and shutdown orders cannot be predicted with any certainty. Further, even after such orders are fully or partially lifted, the resumption of business operations and commercial activity will depend on several factors, including prevailing sentiments among workers and consumers regarding the safety of resuming public activity, and cannot be predicted with any certainty. Despite the COVID-19 pandemic and preventive measures taken to mitigate the spread, our residential properties continue to generate cash flow. At our commercial properties, with the exception of grocery stores and other "essential" businesses, many of our retail tenants are adversely affected by the mandated shutdowns. For the six and three months ended April 30, 2020, FREIT incurred an increase in expense for the reserve of uncollectible rents of approximately $0.6 million (with a consolidated impact of approximately $0.4 million). FREIT currently remains in active discussions and negotiations with these impacted retail tenants. As a result of the negative impact of the COVID-19 pandemic at our commercial properties, we have requested debt payment relief from certain of our lenders on the retail properties, and have been granted debt service relief in the form of deferral of principal and/or interest payments for up to six months to provide debt service relief during the COVID-19 pandemic, with the deferred payments of approximately $260,000 as of April 30, 2020 being due at maturity of the loan. Overall, we have experienced positive cash flow from operations through the end of the fiscal quarter ended April 30, 2020, but this could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of April 30, 2020 of approximately $31.8 million coupled with a $13 million available line of credit will provide us with sufficient liquidity for at least the next twelve months from the filing of this Form 10-Q. Additionally, in an effort to further preserve cash flow, effective May 1, 2020, our Board of Trustees reduced all fees, salaries and retainers payable to our executive officers and members of the Board of Trustees by up to 30% through the end of Fiscal 2020. The extent of the effects of COVID-19 on our business, results of operations, cash flows, value of our real estate assets and growth prospects is highly uncertain and will ultimately depend on future developments, none of which can be predicted with any certainty. See “ Item 1A. Risk Factors |
Fair value of long-term debt (T
Fair value of long-term debt (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Value and Carrying Value of Long-Term Debt | The following table shows the estimated fair value and net carrying value of FREIT’s long-term debt at April 30, 2020 and October 31, 2019: ($ in Millions) April 30, 2020 October 31, 2019 Fair Value $309.6 $352.9 Carrying Value, Net $301.1 $349.9 |
Segment information (Tables)
Segment information (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment and Related Information | Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income attributable to common equity for the six and three month periods ended April 30, 2020 and 2019. Asset information is not reported since FREIT does not use this measure to assess performance. Six Months Ended Three Months Ended April 30, April 30, 2020 2019 2020 2019 (In Thousands of Dollars) (In Thousands of Dollars) Real estate rental revenue: Commercial $ 13,548 $ 13,079 $ 6,534 $ 6,452 Residential 15,612 16,448 7,096 8,214 Total real estate rental revenue 29,160 29,527 13,630 14,666 Real estate operating expenses: Commercial 5,896 5,651 3,172 2,820 Residential 6,348 6,896 2,707 3,401 Total real estate operating expenses 12,244 12,547 5,879 6,221 Net operating income: Commercial 7,652 7,428 3,362 3,632 Residential 9,264 9,552 4,389 4,813 Total net operating income $ 16,916 $ 16,980 $ 7,751 $ 8,445 Recurring capital improvements - residential $ (226 ) $ (285 ) $ (130 ) $ (161 ) Reconciliation to condensed consolidated net income attributable to common equity: Segment NOI $ 16,916 $ 16,980 $ 7,751 $ 8,445 Deferred rents - straight lining 121 187 58 120 Investment income 136 184 64 113 Unrealized loss on interest rate cap contract — (159 ) — (5 ) General and administrative expenses (1,828 ) (1,391 ) (1,056 ) (783 ) Special committee expenses (4,519 ) (586 ) (1,137 ) (586 ) Gain on sale of property — 836 — 836 Gain on deconsolidation of subsidiary 27,680 — 27,680 — Loss on investment in tenancy-in-common (18 ) — (18 ) — Depreciation (5,462 ) (5,607 ) (2,530 ) (2,783 ) Financing costs (7,911 ) (9,179 ) (3,676 ) (4,527 ) Net income 25,115 1,265 27,136 830 Net (income) loss attributable to noncontrolling interests in subsidiaries (157 ) (20 ) 84 (44 ) Net income attributable to common equity $ 24,958 $ 1,245 $ 27,220 $ 786 |
Equity incentive plan (Tables)
Equity incentive plan (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the six-month period ended April 30, 2020: No. of Options Weighted Average Outstanding Exercise Price Options outstanding beginning of period 310,740 $ 18.35 Options granted during period — — Options forfeited/cancelled during period — — Options outstanding end of period 310,740 $ 18.35 Options vested and expected to vest 308,310 Options exercisable at end of period 261,140 |
Rental Income (Tables)
Rental Income (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Baltimore, MD [Member] | |
Schedule of Minimum Rental Income to be Received from Non-Cancelable Operating Leases | Minimum fixed lease consideration (in thousands of dollars) under non-cancelable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration, for the years ending October 31, as of April 30, 2020, is as follows: Year Ending October 31, Amount 2020* $ 19,936 2021 18,984 2022 15,727 2023 13,099 2024 10,948 Thereafter 46,774 Total $ 125,468 *Amount represents full fiscal year |
Investment in tenancy-in-comm_2
Investment in tenancy-in-common (Tables) | 6 Months Ended |
Apr. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Balance Sheet of Pierre Property | The following table summarizes the balance sheet of the Pierre Towers property as of April 30, 2020 accounted for by the equity method: April 30, 2020 (In Thousands of Dollars) Real estate, net $ 80,950 Cash and cash equivalents 1,032 Tenants' security accounts 577 Receivables and other assets 501 Total assets $ 83,060 Mortgages payable, net of unamortized debt issuance costs $ 50,089 Accounts payable and accrued expenses 391 Tenants' security deposits 580 Deferred revenue 93 Equity 31,907 Total liabilities & equity $ 83,060 FREIT's investment in TIC (65% interest) $ 20,740 |
Schedule of Income Statement of Pierre Property | The following table summarizes the income statement of the Pierre Towers property for the period from February 28, 2020 through April 30, 2020 accounted for by the equity method: For the period from February 28, 2020 through April 30, 2020 (In Thousands of Dollars) Revenues $ 1,242 Operating expenses 643 Net operating income 599 Depreciation 358 Interest expense including amortization of deferred financing costs 268 Net loss $ (27 ) FREIT's loss on investment in TIC (65% interest) $ (18 ) |
Recently issued accounting st_2
Recently issued accounting standards (Details) | Oct. 31, 2019USD ($) |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Interest rate cap | $ 0 |
Earnings per share (Details)
Earnings per share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Earnings per share: | ||||
Average dilutive shares outstanding | 37,000 | 19,000 | ||
Impact of Earnings per share | $ 0.01 | $ 0.01 | ||
Anti-dulutive shares excluded from the computation of diluted earnings per share | 38,000 | 311,000 | 38,000 | 311,000 |
Interest rate cap and swap co_2
Interest rate cap and swap contracts (Details) - USD ($) | Feb. 07, 2018 | Dec. 07, 2017 | Sep. 29, 2016 | Apr. 30, 2020 | Feb. 28, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | Apr. 22, 2016 | Dec. 26, 2012 |
Derivative [Line Items] | |||||||||||
Mortgages payable | $ 302,912,000 | $ 302,912,000 | $ 352,790,000 | ||||||||
Interest rate swap contract liability | 5,498,000 | 5,498,000 | 2,126,000 | ||||||||
Unrealized loss on derivatives | $ 5,000 | $ 159,000 | |||||||||
Net unrealized gain (loss) on interest rate swap contracts | (2,982,000) | (821,000) | (3,372,000) | (3,185,000) | |||||||
Damascus Centre Swap [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | 730,000 | 730,000 | |||||||||
Wayne PSC swap [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | 1,394,000 | 1,394,000 | |||||||||
Regency Swap [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | 1,523,000 | 1,523,000 | |||||||||
Station Place [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | 1,851,000 | 1,851,000 | |||||||||
Grande Rotunda LLC [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | 0 | 0 | |||||||||
Station Place [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Loan amount | $ 12,350,000 | 12,300,000 | 12,300,000 | ||||||||
Notional amount of interest rate swap | 12,300,000 | 12,300,000 | |||||||||
Fixed interest rate | 4.35% | ||||||||||
Interest rate swap contract liability | 1,034,000 | ||||||||||
Basis points, interest rate | 1.80% | ||||||||||
Maturity date of interest rate cap | Dec. 15, 2027 | ||||||||||
Grande Rotunda LLC [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate cap contract liability | 0 | ||||||||||
Unrealized loss on derivatives | $ 5,000 | $ 159,000 | |||||||||
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 Loan [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Loan amount | 118,500,000 | 118,500,000 | |||||||||
Notional amount of interest rate cap | $ 121,900,000 | $ 121,900,000 | $ 121,900,000 | ||||||||
Interest rate cap | 3.00% | 3.00% | 3.00% | ||||||||
Maturity date of interest rate cap | Mar. 5, 2021 | Mar. 5, 2020 | |||||||||
Wayne PSC, LLC Loan [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Refinanced loan amount | $ 24,200,000 | ||||||||||
Loan amount | $ 25,800,000 | $ 23,400,000 | $ 23,400,000 | ||||||||
Notional amount of interest rate swap | 23,400,000 | 23,400,000 | |||||||||
Fixed interest rate | 3.625% | ||||||||||
Basis points, interest rate | 2.20% | ||||||||||
Maturity date of interest rate cap | Oct. 1, 2026 | ||||||||||
People's United Bank [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Loan amount | 19,100,000 | 19,100,000 | |||||||||
Mortgages payable | $ 2,320,000 | ||||||||||
Notional amount of interest rate swap | $ 19,100,000 | $ 19,100,000 | |||||||||
People's United Bank [Member] | Tranche One [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Loan amount | $ 20,000,000 | ||||||||||
Fixed interest rate | 3.81% | 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] | |||||||||||
Loan amount | $ 2,320,000 | ||||||||||
Fixed interest rate | 3.53% | 3.53% | |||||||||
Regency Loan [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Refinanced loan amount | $ 16,200,000 | ||||||||||
Loan amount | $ 15,400,000 | 15,400,000 | |||||||||
Notional amount of interest rate swap | $ 15,400,000 | $ 15,400,000 | |||||||||
Fixed interest rate | 3.75% | 3.75% | |||||||||
Basis points, interest rate | 1.25% | ||||||||||
Maturity date of loan | Dec. 15, 2024 | ||||||||||
Damascus Centre [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | 179,000 | ||||||||||
Wayne PSC swap [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | 53,000 | ||||||||||
Regency Swap [Member] | |||||||||||
Derivative [Line Items] | |||||||||||
Interest rate swap contract liability | $ 860,000 |
Property disposition (Details)
Property disposition (Details) - USD ($) | Feb. 08, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 |
Real Estate Properties [Line Items] | |||||
Agreed sales price of property held for sale | $ 7,060,000 | ||||
Capital gain | $ 836,000 | $ 836,000 | |||
Special dividend paid | $ 676,000 | ||||
Pathmark supermarket in Patchogue [Member] | |||||
Real Estate Properties [Line Items] | |||||
Agreed sales price of property held for sale | $ 7,500,000 | ||||
Rental properties | 6,200,000 | ||||
Capital gain | 800,000 | ||||
Net cash 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 |
Termination of Purchase and S_2
Termination of Purchase and Sale Agreement (Details) - USD ($) | May 06, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Jan. 14, 2020 |
Expense incurred | $ 1,137,000 | $ 586,000 | $ 4,519,000 | $ 586,000 | ||
Subsequent Event [Member] | ||||||
Amount of liquidated damages | $ 15,000,000 | |||||
Purchase and Sale Agreement [Member] | Seven Apartment Properties [Member] | ||||||
Percentage of ownership interest | 100.00% |
Management agreement, fees an_2
Management agreement, fees and transactions with related party (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Asset management fees | $ 508,000 | $ 648,000 | $ 1,223,000 | $ 1,285,000 | |
Secured loans receivable | 5,136,000 | 5,136,000 | $ 5,053,000 | ||
Rotunda 100 members [Member] | |||||
Related Party Transaction [Line Items] | |||||
Secured loans receivable | 4,000,000 | 4,000,000 | 4,000,000 | ||
Unpaid accrued interest | $ 1,136,000 | $ 1,136,000 | 1,053,000 | ||
Grande Rotunda, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership by noncontrolling owners (percentage) | 40.00% | 40.00% | |||
Ownership by parent (percentage) | 60.00% | 60.00% | |||
Due to affiliate | $ 5,800,000 | $ 5,800,000 | $ 5,700,000 | ||
Damascus Centre, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership by noncontrolling owners (percentage) | 30.00% | 30.00% | |||
Ownership by parent (percentage) | 70.00% | 70.00% | |||
Managing Agent Hekemian & Co [Member] | |||||
Related Party Transaction [Line Items] | |||||
Asset management fees | $ 499,000 | 636,000 | $ 1,198,000 | 1,255,000 | |
Leasing commissions and reimbursement of operating expenses | 229,000 | 178,000 | 704,000 | 311,000 | |
Insurance commissions | 4,000 | 20,000 | 56,000 | 48,000 | |
Additional services | 0 | 131,250 | 0 | 131,250 | |
Robert S. Hekemian [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fees and related interest payable in stock units | 0 | 54,000 | 21,000 | 114,000 | |
Consulting fee per month | 5,000 | ||||
Consulting fee quarterly installments | 15,000 | ||||
Consulting services expense | 0 | 15,000 | 8,000 | 30,000 | |
Robert S. Hekemian, Jr. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fees and related interest payable in stock units | 117,000 | 99,000 | 236,000 | 194,000 | |
Allan Tubin [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fees and related interest payable in stock units | 8,000 | 7,000 | 15,000 | 7,000 | |
David Hekemian [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fees and related interest payable in stock units | $ 15,000 | $ 16,000 | $ 31,000 | $ 28,000 | |
Minimum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Asset management fees percentage rate | 4.00% | ||||
Maximum [Member] | |||||
Related Party Transaction [Line Items] | |||||
Asset management fees percentage rate | 5.00% |
Mortgage financings and line _2
Mortgage financings and line of credit (Details) - USD ($) | Apr. 03, 2019 | Feb. 07, 2018 | Aug. 26, 2019 | Oct. 27, 2017 | Feb. 28, 2020 | Apr. 30, 2020 | Oct. 31, 2019 |
Debt Instrument [Line Items] | |||||||
Deferred payments of loan | $ 260,000 | ||||||
M&T Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount | $ 22,500,000 | ||||||
Basis points, interest rate | 2.40% | ||||||
Maturity date of loan | May 1, 2020 | ||||||
Extended maturity date of loan | Nov. 1, 2020 | ||||||
Monthly payment of loan | $ 47,250 | ||||||
Wells Fargo Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount | $ 115,300,000 | ||||||
Aareal Capital Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount | $ 118,500,000 | ||||||
Basis points, interest rate | 2.85% | ||||||
Maturity date of loan | Feb. 6, 2021 | ||||||
Available to draw | $ 3,380,000 | ||||||
Grande Rotunda LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Loan amount | $ 118,500,000 | ||||||
Loan amount available | $ 121,900,000 | ||||||
Interest rate cap | 3.00% | 3.83% | |||||
Maturity date of interest rate cap | Mar. 5, 2020 | ||||||
Provident Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis points, interest rate | 2.75% | ||||||
Interest rate cap | 3.75% | ||||||
Maturity date of loan | Oct. 31, 2022 | ||||||
Term of the loan | 3 years | ||||||
Line of credit, maximum borrowing capacity | $ 13,000,000 | $ 13,000,000 | |||||
Berdan Court, LLC [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fixed rate mortgage loans | $ 17,000,000 | ||||||
Loan amount | $ 28,815,000 | ||||||
Interest rate cap | 3.54% | ||||||
Term of the loan | 10 years | ||||||
Net proceeds from refinancing of debt | $ 11,600,000 | ||||||
Percentage of acquisition | 100.00% | ||||||
Berdan Court, LLC [Member] | Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fixed interest rate | 3.54% | ||||||
Berdan Court, LLC [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Fixed interest rate | 6.09% | ||||||
WestFREIT, Corp [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of acquisition | 100.00% |
Fair value of long-term debt (D
Fair value of long-term debt (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Oct. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 309,600 | $ 352,900 |
Carrying value of long-term debt | $ 301,063 | $ 349,904 |
Segment information (Details)
Segment information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2020USD ($)Properties | Jan. 31, 2020USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Apr. 30, 2020USD ($)segmentsProperties | Apr. 30, 2019USD ($)segments | |
Reportable Segments | ||||||
Real estate rental revenue | $ 13,688 | $ 14,786 | $ 29,281 | $ 29,714 | ||
Real estate operating expenses | 10,602 | 10,373 | 24,053 | 20,131 | ||
Operating income | 3,086 | 4,413 | 5,228 | 9,583 | ||
Reconciliation to condensed consolidated net income attributable to common equity: | ||||||
Segment NOI | 7,751 | 8,445 | 16,916 | 16,980 | ||
Deferred rents - straight lining | 58 | 120 | 121 | 187 | ||
Investment income | 64 | 113 | 136 | 184 | ||
Unrealized loss on interest rate cap contract | (5) | (159) | ||||
General and administrative expenses | (1,056) | (783) | (1,828) | (1,391) | ||
Special committee expenses | (1,137) | (586) | (4,519) | (586) | ||
Gain on sale of property | 836 | 836 | ||||
Gain on deconsolidation of subsidiary | 27,680 | 27,680 | ||||
Loss on investment in tenancy-in-common | (18) | (18) | ||||
Depreciation | (2,530) | (2,783) | (5,462) | (5,607) | ||
Financing costs | (3,676) | (4,527) | (7,911) | (9,179) | ||
Net income | 27,136 | $ (2,021) | 830 | $ 435 | 25,115 | 1,265 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | 84 | (44) | (157) | (20) | ||
Net income attributable to common equity | $ 27,220 | 786 | $ 24,958 | $ 1,245 | ||
Number of reportable segments | segments | 2 | 2 | ||||
Commercial [Member] | ||||||
Reconciliation to condensed consolidated net income attributable to common equity: | ||||||
Number of properties | Properties | 8 | 8 | ||||
Residential [Member] | ||||||
Reportable Segments | ||||||
Recurring capital improvements | $ (130) | (161) | $ (226) | $ (285) | ||
Reconciliation to condensed consolidated net income attributable to common equity: | ||||||
Number of properties | Properties | 7 | 7 | ||||
Operating Segments [Member] | ||||||
Reportable Segments | ||||||
Real estate rental revenue | $ 13,630 | 14,666 | $ 29,160 | 29,527 | ||
Real estate operating expenses | 5,879 | 6,221 | 12,244 | 12,547 | ||
Operating income | 7,751 | 8,445 | 16,916 | 16,980 | ||
Operating Segments [Member] | Commercial [Member] | ||||||
Reportable Segments | ||||||
Real estate rental revenue | 6,534 | 6,452 | 13,548 | 13,079 | ||
Real estate operating expenses | 3,172 | 2,820 | 5,896 | 5,651 | ||
Operating income | 3,362 | 3,632 | 7,652 | 7,428 | ||
Operating Segments [Member] | Residential [Member] | ||||||
Reportable Segments | ||||||
Real estate rental revenue | 7,096 | 8,214 | 15,612 | 16,448 | ||
Real estate operating expenses | 2,707 | 3,401 | 6,348 | 6,896 | ||
Operating income | $ 4,389 | $ 4,813 | $ 9,264 | $ 9,552 |
Income taxes (Details)
Income taxes (Details) | 12 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Ordinary taxable income distributed as dividends (percentage) | 100.00% |
Equity incentive plan (Narrativ
Equity incentive plan (Narrative) (Details) - USD ($) | Mar. 04, 2019 | May 03, 2018 | Nov. 10, 2016 | Sep. 04, 2014 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 |
Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuance | 442,060 | 442,060 | ||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan term | 10 years | 10 years | 10 years | 10 years | ||||
Vesting term | 5 years | 5 years | 5 years | |||||
Options granted during period | 5,000 | 38,000 | 38,000 | 246,000 | ||||
Options granted during period, price per share | $ 15 | $ 15.50 | $ 21 | $ 18.45 | ||||
Compensation expense related to stock options | $ 12,000 | $ 35,000 | $ 24,000 | $ 69,000 | ||||
Unrecognized compensation cost | 94,000 | $ 94,000 | ||||||
Unrecognized compensation cost, recognition period | 2 years 7 months 6 days | |||||||
Aggregate intrinsic value of options expected to vest | 125,000 | $ 125,000 | ||||||
Aggregate intrinsic value of options exercisable | $ 26,000 | $ 26,000 |
Equity incentive plan (Schedule
Equity incentive plan (Schedule of Stock Option Activity) (Details) - Employee Stock Option [Member] - $ / shares | Mar. 04, 2019 | May 03, 2018 | Nov. 10, 2016 | Sep. 04, 2014 | Apr. 30, 2020 |
No. of Options Outstanding | |||||
Options outstanding beginning of period | 310,740 | ||||
Options granted during period | 5,000 | 38,000 | 38,000 | 246,000 | |
Options forfeited/cancelled during period | |||||
Options outstanding end of period | 310,740 | ||||
Options vested and expected to vest | 308,310 | ||||
Options exercisable at end of period | 261,140 | ||||
Weighted Average Exercise Price | |||||
Options outstanding beginning of period | $ 18.35 | ||||
Options granted during period | $ 15 | $ 15.50 | $ 21 | $ 18.45 | |
Options forfeited/cancelled during period | |||||
Options outstanding end of period | $ 18.35 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Oct. 31, 2019 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Dividends payable | $ 848,000 | $ 848,000 | $ 1,357,000 | ||
Robert S. Hekemian [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Trustee fee expense | 0 | 54,000 | 21,000 | 114,000 | |
Deferred Fee Plan [Member] | |||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||||
Trustee fee expense | 367,000 | 471,200 | |||
Deferred trustee fees | 367,000 | 517,300 | 367,000 | $ 517,300 | |
Deferred accrued interest | 1,091,000 | $ 1,091,000 | 3,188,000 | ||
Basis spread on any deferred fee (percentage) | 1.50% | ||||
Term of distribution to participants | 10 years | ||||
Shares issued | 18,046 | 32,753 | |||
Dividends payable | 0 | $ 46,100 | $ 0 | $ 46,100 | |
Cumulative fees | 1,542,000 | $ 4,422,000 | |||
Deferred Fee Plan [Member] | Robert S. Hekemian [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 | $ 4,800,000 |
Rental Income (Narrative) (Deta
Rental Income (Narrative) (Details) | 6 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease terms for residential tenants, periods | 2 years |
Rental Income (Schedule of Mini
Rental Income (Schedule of Minimum Rental Income) (Details) $ in Thousands | Apr. 30, 2020USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2020 | $ 19,936 | [1] |
2021 | 18,984 | |
2022 | 15,727 | |
2023 | 13,099 | |
2024 | 10,948 | |
Thereafter | 46,774 | |
Total | $ 125,468 | |
[1] | Amount represents full fiscal year |
Investment in tenancy-in-comm_3
Investment in tenancy-in-common (Narrative) (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2020 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Feb. 28, 2020 | Oct. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Gain on deconsolidation of subsidiary | $ 27,680 | $ 27,680 | |||||
Investment in tenancy-in-common | $ 20,740 | 20,740 | 20,740 | ||||
Loss on investment in tenancy-in-common | $ (18) | $ (18) | |||||
Percentage of management fees of rent collected | 5.00% | ||||||
Management fees | $ 62 | ||||||
S And A Commercial Associates Limited Partnership [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 65.00% | ||||||
Pierre Towers, LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 100.00% | ||||||
TIC Agreement [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Percentage of ownership interest | 65.00% |
Investment in tenancy-in-comm_4
Investment in tenancy-in-common (Schedule of balance sheet of Pierre Property) (Details) - USD ($) $ in Thousands | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||||
Real estate, net | $ 289,169 | $ 330,108 | ||||
Cash and cash equivalents | 31,751 | 38,075 | $ 25,291 | |||
Tenants' security accounts | 1,604 | 2,278 | ||||
Receivables and other assets | 1,385 | 1,741 | ||||
Total Assets | 362,840 | 390,618 | ||||
Mortgages payable, net of unamortized debt issuance costs | 301,063 | 349,904 | ||||
Accounts payable and accrued expenses | 3,487 | 3,097 | ||||
Tenants' security deposits | 2,295 | 3,381 | ||||
Deferred revenue | 828 | 1,390 | ||||
Equity | 41,205 | $ 13,277 | 16,048 | $ 20,448 | $ 21,369 | $ 24,344 |
Total Liabilities and Equity | 362,840 | 390,618 | ||||
FREIT's investment in TIC (65% interest) | 20,740 | |||||
Pierre Property [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Real estate, net | 80,950 | |||||
Cash and cash equivalents | 1,032 | |||||
Tenants' security accounts | 577 | |||||
Receivables and other assets | 501 | |||||
Total Assets | 83,060 | |||||
Mortgages payable, net of unamortized debt issuance costs | 50,089 | |||||
Accounts payable and accrued expenses | 391 | |||||
Tenants' security deposits | 580 | |||||
Deferred revenue | 93 | |||||
Equity | 31,907 | |||||
Total Liabilities and Equity | 83,060 | |||||
FREIT's investment in TIC (65% interest) | $ 20,740 |
Investment in tenancy-in-comm_5
Investment in tenancy-in-common (Schedule of Income Statement of Pierre Property) (Details) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 30, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Apr. 30, 2019 | Jan. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Revenues | $ 13,688 | $ 14,786 | $ 29,281 | $ 29,714 | |||
Operating expenses | 10,602 | 10,373 | 24,053 | 20,131 | |||
Net operating income | 3,086 | 4,413 | 5,228 | 9,583 | |||
Depreciation | 2,530 | 2,783 | 5,462 | 5,607 | |||
Interest expense including amortization of deferred financing costs | 3,676 | 4,527 | 7,911 | 9,179 | |||
Net loss | 27,136 | $ (2,021) | 830 | $ 435 | 25,115 | 1,265 | |
FREIT's loss on investment in TIC (65% interest) | $ (18) | $ (18) | |||||
Pierre Property [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Revenues | $ 1,242 | ||||||
Operating expenses | 643 | ||||||
Net operating income | 599 | ||||||
Depreciation | 358 | ||||||
Interest expense including amortization of deferred financing costs | 268 | ||||||
Net loss | (27) | ||||||
FREIT's loss on investment in TIC (65% interest) | $ (18) |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
May 30, 2020 | Apr. 30, 2020 | Apr. 30, 2020 | |
Deferred payments of loan | $ 260,000 | $ 260,000 | |
Cash balance | 31,800,000 | 31,800,000 | |
Available line of credit | 13,000,000 | 13,000,000 | |
Increase in expense for reserve of uncollectible rents | 600,000 | 600,000 | |
Increase in expense for reserve of uncollectible rents with consolidated impact | $ 400,000 | $ 400,000 | |
Subsequent Event [Member] | |||
Percentage reduction in fees, salaries and retainers payable | 30.00% |