Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 31, 2021 | Mar. 17, 2021 | |
Document and Entity Information [Abstract] | ||
Entity Central Index Key | 0000036840 | |
Current Fiscal Year End Date | --10-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jan. 31, 2021 | |
Entity File Number | 000-25043 | |
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-1697095 | |
Entity Address, Address Line One | 505 Main Street | |
Entity Address, City or Town | Hackensack | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07601 | |
City Area Code | 201 | |
Local Phone Number | 488-6400 | |
Title of 12(b) Security | Shares of beneficial interest, without par value | |
Trading Symbol | FREVS | |
Name of Exchange on which Security is Registered | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,860,048 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 276,096 | $ 278,150 |
Construction in progress | 630 | 566 |
Cash and cash equivalents | 39,788 | 36,860 |
Investment in tenancy-in-common | 20,074 | 20,101 |
Tenants' security accounts | 1,451 | 1,408 |
Receivables arising from straight-lining of rents | 3,771 | 3,977 |
Accounts receivable, net of allowance for doubtful accounts of $896 and $804 as of January 31, 2021 and October 31, 2020, respectively | 1,714 | 1,811 |
Secured loans receivable | 5,219 | 5,194 |
Prepaid expenses and other assets | 4,950 | 4,985 |
Deferred charges, net | 2,162 | 2,163 |
Total Assets | 355,855 | 355,215 |
Liabilities: | ||
Mortgages payable, including deferred interest of $358 and $360 as of January 31, 2021 and October 31, 2020, respectively | 306,269 | 307,240 |
Less unamortized debt issuance costs | 1,589 | 1,810 |
Mortgages payable, net | 304,680 | 305,430 |
Due to affiliate | 5,965 | 5,921 |
Deferred trustee compensation payable | 2,633 | 2,633 |
Accounts payable and accrued expenses | 2,901 | 2,277 |
Dividends payable | 342 | |
Tenants' security deposits | 2,060 | 2,124 |
Deferred revenue | 928 | 1,043 |
Interest rate cap and swap contracts | 4,426 | 4,924 |
Total Liabilities | 323,935 | 324,352 |
Commitments and contingencies | ||
Common equity: | ||
Shares of beneficial interest without par value: 8,000,000 shares authorized; 6,993,152 shares issued plus 159,063 and 152,144 vested share units granted to Trustees at January 31, 2021 and October 31, 2020, respectively | 28,090 | 27,960 |
Treasury stock, at cost: 136,501 shares at January 31, 2021 and October 31, 2020, respectively | (2,863) | (2,863) |
Undistributed earnings | 13,999 | 13,791 |
Accumulated other comprehensive loss | (3,599) | (3,986) |
Total Common Equity | 35,627 | 34,902 |
Noncontrolling interests in subsidiaries | (3,707) | (4,039) |
Total Equity | 31,920 | 30,863 |
Total Liabilities and Equity | $ 355,855 | $ 355,215 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 896 | $ 804 |
Deferred interest | $ 358 | $ 360 |
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 | 159,063 | 152,144 |
Treasury stock at cost, shares | 136,501 | 136,501 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Revenue: | ||
Rental income | $ 10,850 | $ 13,363 |
Reimbursements | 1,544 | 1,916 |
Sundry income | 360 | 314 |
Total revenue | 12,754 | 15,593 |
Expenses: | ||
Operating expenses | 4,108 | 4,015 |
Special committee third party advisory, legal and other expenses | 3,382 | |
Management fees | 526 | 715 |
Real estate taxes | 1,917 | 2,407 |
Depreciation | 2,295 | 2,932 |
Total expenses | 8,846 | 13,451 |
Operating income | 3,908 | 2,142 |
Investment income | 30 | 72 |
Loss on investment in tenancy-in-common | (27) | |
Interest expense including amortization of deferred financing costs | (3,132) | (4,235) |
Net income (loss) | 779 | (2,021) |
Net income attributable to noncontrolling interests in subsidiaries | (221) | (241) |
Net income (loss) attributable to common equity | $ 558 | $ (2,262) |
Earnings (Loss) per share: | ||
Basic and diluted | $ 0.08 | $ (0.32) |
Weighted average shares outstanding: | ||
Basic and diluted | 7,009 | 6,979 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 779 | $ (2,021) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on interest rate cap and swap contracts before reclassifications | 189 | (420) |
Amount reclassified from accumulated other comprehensive income (loss) to interest expense | 309 | 30 |
Net unrealized gain (loss) on interest rate cap and swap contracts | 498 | (390) |
Comprehensive income (loss) | 1,277 | (2,411) |
Net income attributable to noncontrolling interests in subsidiaries | (221) | (241) |
Other comprehensive income: | ||
Unrealized (gain) loss on interest rate cap and swap contracts attributable to noncontrolling interests in subsidiaries | (111) | 129 |
Comprehensive income attributable to noncontrolling interests in subsidiaries | (332) | (112) |
Comprehensive income (loss) attributable to common equity | $ 945 | $ (2,523) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - USD ($) $ in Thousands | Shares of Beneficial Interest [Member] | Treasury Shares at Cost [Member] | Undistributed Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Total Common Equity [Member] | Noncontrolling Interests [Member] | Total |
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 Trustee | (1,401) | 1,401 | |||||
Distributions to noncontrolling interests in subsidiaries | (583) | (583) | |||||
Net (loss) income | (2,262) | (2,262) | 241 | (2,021) | |||
Net unrealized gain (loss) on interest rate cap and swap contracts | (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, 2020 | 27,960 | (2,863) | 13,791 | (3,986) | 34,902 | (4,039) | 30,863 |
Stock based compensation expense | 12 | 12 | 12 | ||||
Vested share units granted to Trustees | 118 | 118 | 118 | ||||
Net (loss) income | 558 | 558 | 221 | 779 | |||
Dividends declared, including payable in share units (per share) | (350) | (350) | (350) | ||||
Net unrealized gain (loss) on interest rate cap and swap contracts | 387 | 387 | 111 | 498 | |||
Balance at Jan. 31, 2021 | $ 28,090 | $ (2,863) | $ 13,999 | $ (3,599) | $ 35,627 | $ (3,707) | $ 31,920 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENT OF EQUITY (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Jan. 31, 2020USD ($)$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Stock dividends payable | $ | $ 8 |
Dividends declared, per share | $ / shares | $ 0.05 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Operating activities: | ||
Net income (loss) | $ 779 | $ (2,021) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 2,295 | 2,932 |
Amortization | 404 | 392 |
Stock based compensation expense | 12 | 12 |
Trustee fees, consultant fee and related interest paid in stock units | 110 | 211 |
Loss on investment in tenancy-in-common | 27 | |
Deferred rents - straight line rent | 206 | (63) |
Bad debt expense | 171 | 133 |
Changes in operating assets and liabilities: | ||
Tenants' security accounts | (46) | (106) |
Accounts receivable, prepaid expenses and other assets | 483 | 903 |
Accounts payable, accrued expenses and deferred trustee compensation payable | 728 | (4,510) |
Deferred revenue | (115) | (186) |
Due to affiliate - accrued interest | 44 | 66 |
Deferred interest on mortgages | (2) | |
Net cash provided by (used in) operating activities | 5,096 | (2,237) |
Investing activities: | ||
Capital improvements - existing properties | (409) | (345) |
Net cash used in investing activities | (409) | (345) |
Financing activities: | ||
Repayment of mortgages | (969) | (1,038) |
Deferred financing costs | (73) | |
Dividends paid | (1,357) | |
Distributions to noncontrolling interests in subsidiaries | (583) | |
Net cash used in financing activities | (1,042) | (2,978) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,645 | (5,560) |
Cash, cash equivalents and restricted cash, beginning of period | 39,517 | 42,488 |
Cash, cash equivalents and restricted cash, end of period | 43,162 | 36,928 |
Supplemental disclosure of cash flow data: | ||
Interest paid | 2,472 | 3,843 |
Operating activities: | ||
Commercial tenant security deposits applied to accounts receivable | 18 | |
Investing activities: | ||
Accrued capital expenditures, construction costs, pre-development costs and interest | 75 | 273 |
Financing activities: | ||
Dividends declared but not paid | 342 | |
Dividends paid in share units | 8 | |
Vested share units issued to consultant and retired trustee | $ 1,401 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation of Cash Reported in Balance Sheet) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets: | ||||
Cash and cash equivalents | $ 39,788 | $ 36,860 | $ 31,904 | |
Tenants' security accounts | 1,451 | 2,148 | ||
Mortgage escrows (included in prepaid expenses and other assets) | 1,923 | 2,876 | ||
Total cash, cash equivalents and restricted cash | $ 43,162 | $ 39,517 | $ 36,928 | $ 42,488 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Jan. 31, 2021 | |
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 three-month period ended January 31, 2021 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, 2020 of First Real Estate Investment Trust of New Jersey (“FREIT”, “Trust”, “us”, “we”, “our” or the “Company”). |
Recently issued accounting stan
Recently issued accounting standards | 3 Months Ended |
Jan. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recently issued accounting standards | Note 2 – Recently issued accounting standards: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13 "Financial Instruments – Credit Losses (Topic 326)" “Codification Improvements to Topic 326, Financial Instruments—Credit Losses” “Leases (Topic 842)” |
Earnings (Loss) per share
Earnings (Loss) per share | 3 Months Ended |
Jan. 31, 2021 | |
Earnings (Loss) per share: | |
Earnings (Loss) per share | Note 3 – Earnings (Loss) per share: Basic earnings (loss) 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 increasing the number of shares to be added in computing diluted earnings per share. For the three months ended January 31, 2021 and 2020, the outstanding stock options were anti-dilutive with no impact on earnings (loss) per share. There were approximately 311,000 and 311,000, respectively, anti-dilutive shares for the three months ended January 31, 2021 and 2020. 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 | 3 Months Ended |
Jan. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate cap and swap contracts | Note 4 – Interest rate cap and swap contracts: In accordance with “Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815")” The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). |
Investment in tenancy-in-common
Investment in tenancy-in-common | 3 Months Ended |
Jan. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in tenancy-in-common | Note 5 – Investment in tenancy-in-common: On February 28, 2020, FREIT reorganized its subsidiary S and A Commercial Associates Limited Partnership (“S&A”) from a 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 Accounting Standards Codification 810, “ Consolidation FREIT’s investment in the TIC was approximately $20.1 million at both January 31, 2021 and October 31, 2020. For the three months ended January 31, 2021, FREIT recognized a loss on investment in TIC of approximately $27,000 in the accompanying condensed consolidated statement of operations. Hekemian & Co., Inc. (“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, 2022, 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 $93,000 for the three months ended January 31, 2021. The Pierre Towers property also uses the resources of the Hekemian insurance department to secure various insurance coverages for its property. Hekemian is paid a commission for these services. Such commissions were charged to operations and amounted to approximately $10,000 for the three months ended January 31, 2021. The following table summarizes the balance sheets of the Pierre Towers property as of January 31, 2021 and October 31, 2020 accounted for by the equity method: January 31, October 31, 2021 2020 (In Thousands of Dollars) Real estate, net $ 79,536 $ 80,041 Cash and cash equivalents 1,155 754 Tenants' security accounts 529 523 Receivables and other assets 430 468 Total assets $ 81,650 $ 81,786 Mortgages payable, net of unamortized debt issuance costs $ 49,890 $ 49,956 Accounts payable and accrued expenses 297 314 Tenants' security deposits 521 535 Deferred revenue 59 56 Equity 30,883 30,925 Total liabilities & equity $ 81,650 $ 81,786 FREIT's investment in TIC (65% interest) $ 20,074 $ 20,101 Index Page 11 The following table summarizes the statement of operations of the Pierre Towers property for the three months ended January 31, 2021, accounted for by the equity method: Three Months Ended January 31, 2021 (In Thousands of Dollars) Revenues $ 1,891 Operating expenses 991 Net operating income 900 Depreciation 540 Interest expense including amortization of deferred financing costs 401 Net loss $ (41) FREIT's loss on investment in TIC (65% interest) $ (27) |
Termination of Purchase and Sal
Termination of Purchase and Sale Agreement | 3 Months Ended |
Jan. 31, 2021 | |
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 Purchaser has filed lis pendens with respect to each of the six properties that were subject to the Purchase and Sale Agreement. The lis pendens provides notice to the public of the Complaint. Pending the resolution of this litigation, the filing of the lis pendens will adversely affect the future sale or financing of those properties. On June 17, 2020, the Sellers filed their answer, separate defenses, and counterclaims (the “Answer”) in response to the Complaint, in which, among other things, the Sellers (a) deny the Purchaser’s claim that the Sellers’ termination of the Purchase and Sale Agreement was wrongful, and assert that there was no contractual basis in the Purchase and Sale Agreement to relieve the Purchaser from its obligation to perform thereunder, or to defer or postpone the Purchaser’s obligation to perform, (b) assert certain defenses to the allegations set forth in the Complaint without admitting any liability, and (c) request relief from the Court in the form of (i) judgment in the Sellers’ favor dismissing all of the Purchaser’s claims against them with prejudice and denying all of the Purchaser’s requests for relief, (ii) reasonable attorneys’ fees and costs, and (iii) such other and further relief as the Court deems just. Index Page 12 In addition, the Answer asserts counterclaims by the Sellers against the Purchaser for breach of contract due to the Purchaser’s failure to close the Purchase and Sale Agreement in accordance with its terms, and the Sellers seek a declaratory judgment from the Court that the Sellers properly terminated the Purchase and Sale Agreement in accordance with its terms due to the Purchaser’s default and an order from the Court that the Purchaser authorize the escrow agent to release the $15 million deposit under the Purchase and Sale Agreement to the Sellers. In connection with these counterclaims, the Answer seeks the following relief from the Court: (a) liquidated damages in the amount of $15 million, as provided in the Purchase and Sale Agreement; (b) in the alternative to the liquidated damages provided for in the Purchase and Sale Agreement, money damages in an amount to be determined at trial; (c) interest, attorneys’ fees and costs associated with the defense of the Purchaser’s claims and the prosecution of the Sellers’ counterclaims against the Purchaser, as provided for in the Purchase and Sale Agreement; (d) judgment declaring that the Sellers properly terminated the Purchase and Sale Agreement due to the Purchaser’s default thereunder; (e) judgment declaring that the Purchaser must authorize the escrow agent to release the $15 million deposit to the Sellers; and (f) such other relief as the Court deems just and equitable. 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 January 31, 2021, the $15 million deposit has not been included in income in the accompanying condensed consolidated statement of income. During the three months ended January 31, 2021 and 2020, the Special Committee of the Board (which was formed in connection with the Purchase and Sale Agreement and the Plan of Liquidation discussed in Note 7) incurred on behalf of the Company $0 and $3,382,000, respectively, of third party advisory, legal and other expenses related to its activities. On May 7, 2020 the Board approved the elimination of the Special Committee as a committee of the Board and no further fees were incurred. Legal costs attributed to the legal proceedings between FREIT and certain of its affiliates and Sinatra Properties, LLC have been incurred in the amount of approximately $481,000 for the three months ended January 31, 2021. |
Termination of Plan of Liquidat
Termination of Plan of Liquidation | 3 Months Ended |
Jan. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Termination of Plan of Liquidation | Note 7 – Termination 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, the Plan of Liquidation did not become effective 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 were not consummated. Accordingly, the Trust did 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 | 3 Months Ended |
Jan. 31, 2021 | |
Related Party Transactions [Abstract] | |
Management agreement, fees and transactions with related party | Note 8 – Management agreement, fees and transactions with related party: 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. The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Such fees, charged to operations, were approximately $513,000 and $699,000 for the three months ended January 31, 2021 and 2020, 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 $129,000 and $475,000 for the three months ended January 31, 2021 and 2020, 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 $69,000 and $51,000 for the three months ended January 31, 2021 and 2020, respectively. From time to time, FREIT engages Hekemian, or certain affiliates of Hekemian, to provide additional services, such as consulting services related to development, property sales and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian and FREIT with respect to such additional services. There were no such fees incurred for the three months ended January 31, 2021 and 2020. Index Page 13 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 and/or executive compensation (including interest and dividends) incurred by FREIT for the three months ended January 31, 2021 and 2020 was approximately $0 and $21,000, respectively, for Robert S. Hekemian, $116,000 and $119,000, respectively, for Robert S. Hekemian, Jr., $8,000 and $8,000, respectively, for Allan Tubin and $14,000 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 three months ended January 31, 2021 and 2020, consulting fee expense for Robert S. Hekemian was approximately $0 and $8,000, respectively. The equity owners of Rotunda 100, LLC (“Rotunda 100”), which owns a 40% minority equity interest in Grande Rotunda, 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. 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. On December 7, 2017, the Board approved a further extension of the previously amended maturity dates of these loans to the date or dates upon which distributions of cash are made by Grande Rotunda to its members as a result of a refinancing or sale of Grande Rotunda or the Rotunda property. The aggregate outstanding principal balance of the Rotunda 100 notes was $4,000,000 at both January 31, 2021 and October 31, 2020. The accrued but unpaid interest related to these notes as of January 31, 2021 and October 31, 2020 amounted to approximately $1,219,000 and $1,194,000, respectively, and is included in secured loans receivable on the accompanying condensed consolidated balance sheets. In Fiscal 2017, Grande Rotunda 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 (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 January 31, 2021 and October 31, 2020, Rotunda 100 has funded Grande Rotunda with approximately $6 million and $5.9 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 | 3 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Mortgage financings and line of credit | Note 9 – Mortgage financings and line of credit: On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”), a consolidated subsidiary, refinanced its $19.2 million loan (which would have matured on November 1, 2020) with a new loan held by ConnectOne Bank in the amount of $25,000,000, with additional funding available in the amount of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property. (See Note 6 to FREIT’s condensed consolidated financial statements for additional details in regards to the lis pendens.) This loan, secured by an apartment building in Westwood, New Jersey, is interest-only based on a floating rate at 400 basis points over the one-month LIBOR rate with a floor of 4.15% and has a maturity date of October 1, 2022 with the option of Westwood Hills to extend for two (2) additional six (6)-month periods from the maturity date, subject to certain provisions of the loan agreement. This refinancing resulted in: (i) a change in the annual interest rate from a fixed rate of 4.62% to a variable rate with a floor of 4.15% and (ii) net refinancing proceeds of approximately $5.6 million that were distributed to the partners in Westwood Hills with FREIT receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. As of January 31, 2021, approximately $25,000,000 of this loan was drawn and outstanding and the interest rate was based on the floor of 4.15%. On April 3, 2019, WestFREIT Corp. (owned 100% by FREIT) exercised its option to extend its loan secured by the Westridge Square shopping center in Frederick, Maryland, 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 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 Index Page 14 of May 1, 2020. This loan was extended to November 1, 2020 and further extended to January 31, 2021 under the same terms and conditions of the existing agreement. As of January 31, 2021, approximately $21.6 million of this loan was outstanding and the interest rate was approximately 2.59%. WestFREIT Corp. entered into a loan extension and modification agreement with M&T Bank, effective beginning on February 1, 2021, which requires monthly principal payments of $49,250 plus interest based on a floating interest rate equal to 255 basis points over the one-month LIBOR and has a maturity date of January 31, 2022, with the option to extend for an additional one-year period through January 31, 2023, subject to certain requirements as provided for in the loan agreement including the lease-up of certain space. On February 7, 2018, Grande Rotunda refinanced its construction loan with a new loan held by Aareal Capital Corporation in the amount of approximately $118.5 million with additional funding which was available through February 6, 2021 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 had a maturity date of February 6, 2021 with two one-year options to extend the maturity of this loan, subject to certain requirements as provided for in the loan agreement. Grande Rotunda had purchased an interest rate cap on LIBOR for the full amount that could have been 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 had purchased an interest rate cap on LIBOR, with an effective date of March 5, 2020, for the full amount that could have been drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for one year, which matured on March 5, 2021. At January 31, 2021, the total amount outstanding on this loan was approximately $118.5 million and the interest rate was approximately 2.99%. Effective February 6, 2021, Grande Rotunda exercised the first extension option on this loan with a balance in the amount of approximately $118.5 million, extending the loan one year with a new maturity date of February 6, 2022, which may be extended further for an additional one-year term at Grande Rotunda’s option. Principal payments in the amount of $500,000 per quarter are required in this first extension period and principal payments in the amount of $750,000 per quarter are required in the second extension period, if exercised. Additionally, Grande Rotunda purchased an interest rate cap on LIBOR, with an effective date of March 5, 2021, for the loan amount of approximately $118.5 million, capping the one-month LIBOR rate at 3% for one year expiring on February 6, 2022. FREIT’s revolving line of credit provided by the Provident Bank was renewed for a three-year term ending on October 31, 2023. 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 is based on a floating interest rate of prime minus 25 basis points with a floor of 3.75%. As of January 31, 2021 and October 31, 2020, there was no amount outstanding and $13 million was available under the line of credit. The lis pendens filed in connection with the legal proceeding between FREIT and certain of its affiliates and Sinatra Properties, LLC may adversely affect FREIT’s ability to refinance certain of its residential properties. (See Note 6 to FREIT’s condensed consolidated financial statements for additional details.) As a result of the negative impact of the COVID-19 pandemic at our commercial properties, in Fiscal 2020 we were granted debt payment relief from certain of our lenders on such properties in the form of deferral of principal and/or interest payments for a three-month period, resulting in total deferred payments of approximately $1,013,000 which will become due at the maturity of the loans. As of January 31, 2021 and October 31, 2020, approximately $162,000 of this amount has been repaid. There will be no further deferrals of principal and/or interest payments on these loans and the balance due has been included in mortgages payable on the condensed consolidated balance sheets as of January 31, 2021 and October 31, 2020. |
Fair value of long-term debt
Fair value of long-term debt | 3 Months Ended |
Jan. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | Note 10 – Fair value of long-term debt: The following table shows the estimated fair value and net carrying value of FREIT’s long-term debt at January 31, 2021 and October 31, 2020: ($ in Millions) January 31, 2021 October 31, 2020 Fair Value $308.8 $311.4 Carrying Value, Net $304.7 $305.4 Fair values are estimated based on market interest rates at January 31, 2021 and October 31, 2020 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 | 3 Months Ended |
Jan. 31, 2021 | |
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 TIC and deconsolidated from FREIT’s operating results as of February 28, 2020 (See Note 5 to FREIT’s condensed consolidated financial statements for further details). Index Page 15 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, 2020. 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 (loss) attributable to common equity for the three month periods ended January 31, 2021 and 2020. Asset information is not reported since FREIT does not use this measure to assess performance. Three Months Ended January 31, 2021 2020 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 6,351 $ 7,014 Residential 6,609 8,516 Total real estate rental revenue 12,960 15,530 Real estate operating expenses: Commercial 2,627 2,724 Residential 2,664 3,641 Total real estate operating expenses 5,291 6,365 Net operating income: Commercial 3,724 4,290 Residential 3,945 4,875 Total net operating income $ 7,669 $ 9,165 Recurring capital improvements - residential $ (82 ) $ (96 ) Reconciliation to condensed consolidated net income (loss) attributable to common equity: Segment NOI $ 7,669 $ 9,165 Deferred rents - straight lining (206 ) 63 Investment income 30 72 General and administrative expenses (1,260 ) (772 ) Special committee third party advisory, legal and other expenses - (3,382 ) Loss on investment in tenancy-in-common (27 ) - Depreciation (2,295 ) (2,932 ) Financing costs (3,132 ) (4,235 ) Net income (loss) 779 (2,021 ) Net income attributable to noncontrolling interests in subsidiaries (221 ) (241 ) Net income (loss) attributable to common equity $ 558 $ (2,262 ) |
Income taxes
Income taxes | 3 Months Ended |
Jan. 31, 2021 | |
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, 2021. Accordingly, no provision for federal or state income taxes related to such ordinary taxable income was recorded in FREIT’s condensed consolidated financial statements. There was no ordinary taxable income for the fiscal year ending October 31, 2020 and no dividends were made/declared for Fiscal 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. As of January 31, 2021, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2018 remain open to examination by the major taxing jurisdictions. |
Equity incentive plan
Equity incentive plan | 3 Months Ended |
Jan. 31, 2021 | |
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. Index Page 16 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 January 31, 2021, 442,060 shares are available for issuance under the Plan. The following table summarizes stock option activity for the three-month periods ended January 31, 2021 and 2020: Three Months Ended January 31, 2021 Three Months Ended January 31, 2020 No. of Options Exercise No. of Options Exercise Outstanding Price Outstanding Price Options outstanding at beginning of period 310,740 $ 18.35 310,740 $ 18.35 Options granted during period - - - - Options forfeited/cancelled during period - - - - Options outstanding at end of period 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 308,310 308,310 Options exercisable at end of period 276,340 260,140 For the three-month periods ended January 31, 2021 and 2020, compensation expense related to stock options granted amounted to approximately $12,000 and $12,000, respectively. At January 31, 2021, there was approximately $60,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately 2 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at January 31, 2021 was approximately $111,000 and $43,000, respectively. |
Deferred fee plan
Deferred fee plan | 3 Months Ended |
Jan. 31, 2021 | |
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 three-month periods ended January 31, 2021 and 2020 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 three-month periods ended January 31, 2021 and 2020, the aggregate amounts of deferred Trustee fees together with related interest and dividends were approximately $118,100 and $203,000, respectively, which have been paid through the issuance of 6,919 and 9,230 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 three-month periods ended January 31, 2021 and 2020, FREIT has charged as expense approximately $110,200 and $203,000, respectively, representing deferred Trustee fees and interest, and the balance of approximately $7,900 and $0, respectively, representing dividends payable in respect of share units allocated to Plan participants, has been charged to equity. The Deferred Fee Plan, as amended, provides that cumulative fees together with accrued interest deferred as of November 1, 2014 will be paid in a lump sum or in annual installments over a period not to exceed 10 years, at the election of the Participant. As of January 31, 2021 and October 31, 2020, approximately $1,542,000 and $1,542,000, respectively, of fees has been deferred together with accrued interest of approximately $1,091,000 and $1,091,000, respectively. |
Rental Income
Rental Income | 3 Months Ended |
Jan. 31, 2021 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Rental Income | Note 15 – Rental Income: Commercial tenants: Fixed lease income under our commercial operating leases generally includes fixed minimum lease consideration which is 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 and rents from tenants for which collectability is deemed to be constrained, for the years ending October 31, as of January 31, 2021, is as follows: Year Ending October 31, Amount 2021* $ 17,096 2022 14,380 2023 11,817 2024 9,652 2025 8,249 Thereafter 25,486 Total $ 86,680 *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 three-month periods ended January 31, 2021 and 2020 were not material. Residential tenants: Lease terms for residential tenants are usually one |
COVID-19 Pandemic
COVID-19 Pandemic | 3 Months Ended |
Jan. 31, 2021 | |
Covid 19Pandemic Abstract | |
COVID-19 Pandemic | Note 16 – COVID-19 Pandemic: The international spread of COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. The extent to which this pandemic could continue to affect our financial condition, liquidity, and results of operations is difficult to predict and depends on evolving factors, including: duration, scope, government actions, and other social responses. Beginning in March 2020, many states in the U.S., including New Jersey, New York and Maryland, where our properties are located, implemented stay-at-home and shutdown orders for all "non-essential" business and activity in an aggressive effort to mitigate the spread of COVID-19. These orders continue to evolve resulting in a full or partial lifting of these restrictions at various points. While the United States has experienced a second wave of this pandemic over the past several months, the distribution of vaccinations has begun. As the impact of the pandemic has been evolving, it continues to cause uncertainty and volatility in the financial markets. 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 shutdown orders are fully lifted, and business operations and commercial activity can fully resume. The lifting of all government shutdown orders cannot be predicted with any certainty. Further, even after such orders are fully 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 have been and continue to be adversely affected by the mandated shutdowns or continued imposed restrictions as many of these tenants have not been able to open or resume operations at full capacity. The average annual occupancy rate for the commercial properties has declined from 81.5% for the three months ended January 31, 2020 to approximately 77.1% for the three months ended January 31, 2021. During the first quarter of Fiscal 2021, Pet Valu, Inc., a pet store tenant, vacated several stores located in shopping centers owned by FREIT affiliates (Wayne PSC, Damascus Centre and Grande Rotunda) and terminated the related leases early paying an aggregate lease termination fee in the amount of approximately $260,000 (with a consolidated impact to FREIT of approximately $140,000). Until the space is re-leased at each of these properties, FREIT’s operating results will be adversely impacted from the loss of base rent and additional rent of approximately $0.4 million (with a consolidated impact to FREIT of approximately $0.2 million) on an annualized basis. The overall average cash realization for the commercial properties excluding the office space at the Rotunda property, based on monthly billings as compared to monthly cash collections from April 2020 through January 2021, was approximately 82%. The Company is closely monitoring changes in the collectability assessment of its tenant receivables as a result of certain tenants suffering adverse financial consequences related to the COVID-19 pandemic. For the three months ended January 31, 2021, rental revenue deemed uncollectible of approximately $0.6 million (with a consolidated impact to FREIT of approximately $0.4 million) was classified as a reduction in rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. As of January 31, 2021, FREIT has applied an aggregate of approximately $405,000 of security deposits from its commercial tenants to outstanding receivables due. For the three months ended January 31, 2021, on a case by case basis, FREIT has offered some commercial tenants rent abatements over a specified time period totaling approximately $50,000 (with a consolidated impact to FREIT of approximately $31,000). FREIT has not offered any new deferrals of rent over a specified time period during the three months ended January 31, 2021. FREIT currently remains in active discussions and negotiations with these impacted retail tenants. Index Page 18 As a result of the negative impact of the COVID-19 pandemic at our commercial properties, in Fiscal 2020 we were granted debt payment relief from certain of our lenders on such properties in the form of deferral of principal and/or interest payments for a three-month period, resulting in total deferred payments of approximately $1,013,000, which will become due at the maturity of the loans. As of January 31, 2021 and October 31, 2020, approximately $162,000 of this amount has been repaid, there will be no further deferrals of principal and/or interest payments on these loans and the balance due has been included in mortgages payable on the consolidated balance sheets as of January 31, 2021 and October 31, 2020. (See Note 9 to FREIT’s condensed consolidated financial statements for additional details). Through the end of the fiscal quarter ended January 31, 2021, we have experienced a positive cash flow from operations with cash provided by operations of approximately $5.1 million. This could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of January 31, 2021 of approximately $39.8 million coupled with a $13 million available line of credit (available through October 31, 2023, see Note 9) will provide us with sufficient liquidity for at least the next twelve months from the filing of this Form 10-Q. 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Jan. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 – Subsequent Event: FREIT’s Board of Trustees has unanimously approved a proposal to change FREIT’s form of organization from a New Jersey real estate investment trust to a Maryland corporation (the “Reincorporation”). The effect of the Reincorporation will be to change the law applicable to our affairs from New Jersey law to Maryland law. If approved by shareholders at the Annual Meeting of Shareholders on May 6, 2021, the Reincorporation will be accomplished by the merger of FREIT with and into its newly formed, wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. (“FREIT Maryland”). On the effective date of the Reincorporation, the separate existence of FREIT will cease and FREIT Maryland, will succeed to all the business, properties, assets and liabilities of FREIT. Holders of shares of beneficial interest in FREIT will receive one newly issued share of common stock of FREIT Maryland for each share of FREIT that they own, without any action of shareholders required. We believe that after the Reincorporation, we will continue to be organized and will continue to operate in such a manner as to qualify for taxation as a REIT under the Internal Revenue Code of 1986, as amended. |
Investment in tenancy-in-comm_2
Investment in tenancy-in-common (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Balance Sheet of Pierre Property | The following table summarizes the balance sheets of the Pierre Towers property as of January 31, 2021 and October 31, 2020 accounted for by the equity method: January 31, October 31, 2021 2020 (In Thousands of Dollars) Real estate, net $ 79,536 $ 80,041 Cash and cash equivalents 1,155 754 Tenants' security accounts 529 523 Receivables and other assets 430 468 Total assets $ 81,650 $ 81,786 Mortgages payable, net of unamortized debt issuance costs $ 49,890 $ 49,956 Accounts payable and accrued expenses 297 314 Tenants' security deposits 521 535 Deferred revenue 59 56 Equity 30,883 30,925 Total liabilities & equity $ 81,650 $ 81,786 FREIT's investment in TIC (65% interest) $ 20,074 $ 20,101 |
Schedule of Income Statement of Pierre Property | The following table summarizes the statement of operations of the Pierre Towers property for the three months ended January 31, 2021, accounted for by the equity method: Three Months Ended January 31, 2021 (In Thousands of Dollars) Revenues $ 1,891 Operating expenses 991 Net operating income 900 Depreciation 540 Interest expense including amortization of deferred financing costs 401 Net loss $ (41) FREIT's loss on investment in TIC (65% interest) $ (27) |
Fair value of long-term debt (T
Fair value of long-term debt (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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 January 31, 2021 and October 31, 2020: ($ in Millions) January 31, 2021 October 31, 2020 Fair Value $308.8 $311.4 Carrying Value, Net $304.7 $305.4 |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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 (loss) attributable to common equity for the three month periods ended January 31, 2021 and 2020. Asset information is not reported since FREIT does not use this measure to assess performance. Three Months Ended January 31, 2021 2020 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 6,351 $ 7,014 Residential 6,609 8,516 Total real estate rental revenue 12,960 15,530 Real estate operating expenses: Commercial 2,627 2,724 Residential 2,664 3,641 Total real estate operating expenses 5,291 6,365 Net operating income: Commercial 3,724 4,290 Residential 3,945 4,875 Total net operating income $ 7,669 $ 9,165 Recurring capital improvements - residential $ (82 ) $ (96 ) Reconciliation to condensed consolidated net income (loss) attributable to common equity: Segment NOI $ 7,669 $ 9,165 Deferred rents - straight lining (206 ) 63 Investment income 30 72 General and administrative expenses (1,260 ) (772 ) Special committee third party advisory, legal and other expenses - (3,382 ) Loss on investment in tenancy-in-common (27 ) - Depreciation (2,295 ) (2,932 ) Financing costs (3,132 ) (4,235 ) Net income (loss) 779 (2,021 ) Net income attributable to noncontrolling interests in subsidiaries (221 ) (241 ) Net income (loss) attributable to common equity $ 558 $ (2,262 ) |
Equity incentive plan (Tables)
Equity incentive plan (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for the three-month periods ended January 31, 2021 and 2020: Three Months Ended January 31, 2021 Three Months Ended January 31, 2020 No. of Options Exercise No. of Options Exercise Outstanding Price Outstanding Price Options outstanding at beginning of period 310,740 $ 18.35 310,740 $ 18.35 Options granted during period - - - - Options forfeited/cancelled during period - - - - Options outstanding at end of period 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 308,310 308,310 Options exercisable at end of period 276,340 260,140 |
Rental Income (Tables)
Rental Income (Tables) | 3 Months Ended |
Jan. 31, 2021 | |
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 and rents from tenants for which collectability is deemed to be constrained, for the years ending October 31, as of January 31, 2021, is as follows: Year Ending October 31, Amount 2021* $ 17,096 2022 14,380 2023 11,817 2024 9,652 2025 8,249 Thereafter 25,486 Total $ 86,680 *Amount represents full fiscal year |
Earnings (Loss) per share (Deta
Earnings (Loss) per share (Details) - shares | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Earnings (Loss) per share: | ||
Anti-dulutive shares excluded from the computation of diluted earnings per share | 311,000 | 311,000 |
Interest rate cap and swap co_2
Interest rate cap and swap contracts (Details) - USD ($) | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Derivative [Line Items] | |||
Interest rate swap contract liability | $ 4,426,000 | $ 4,924,000 | |
Net unrealized gain (loss) on interest rate swap contracts | 498,000 | $ (390,000) | |
Damascus Centre Swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liability | 551,000 | 610,000 | |
Wayne PSC swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liability | 1,105,000 | 1,260,000 | |
Regency Swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liability | 1,280,000 | 1,385,000 | |
Station Place [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liability | 1,490,000 | 1,669,000 | |
Grande Rotunda LLC [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liability | $ 0 | $ 0 |
Investment in tenancy-in-comm_3
Investment in tenancy-in-common (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | Feb. 28, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Investment in tenancy-in-common | $ 20,074,000 | $ 20,101,000 | ||
Loss on investment in tenancy-in-common | 27,000 | |||
Management fees | 93,000 | |||
Insurance commissions | $ 10,000 | |||
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 | Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||
Real estate, net | $ 276,096 | $ 278,150 | ||
Cash and cash equivalents | 39,788 | 36,860 | $ 31,904 | |
Tenants' security accounts | 1,451 | 1,408 | ||
Receivables and other assets | 1,714 | 1,811 | ||
Total Assets | 355,855 | 355,215 | ||
Mortgages payable, net of unamortized debt issuance costs | 304,680 | 305,430 | ||
Accounts payable and accrued expenses | 2,901 | 2,277 | ||
Tenants' security deposits | 2,060 | 2,124 | ||
Deferred revenue | 928 | 1,043 | ||
Equity | 31,920 | 30,863 | $ 13,277 | $ 16,048 |
Total Liabilities and Equity | 355,855 | 355,215 | ||
FREIT's investment in TIC (65% interest) | 20,074 | 20,101 | ||
Pierre Property [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Real estate, net | 79,536 | 80,041 | ||
Cash and cash equivalents | 1,155 | 754 | ||
Tenants' security accounts | 529 | 523 | ||
Receivables and other assets | 430 | 468 | ||
Total Assets | 81,650 | 81,786 | ||
Mortgages payable, net of unamortized debt issuance costs | 49,890 | 49,956 | ||
Accounts payable and accrued expenses | 297 | 314 | ||
Tenants' security deposits | 521 | 535 | ||
Deferred revenue | 59 | 56 | ||
Equity | 30,883 | 30,925 | ||
Total Liabilities and Equity | 81,650 | 81,786 | ||
FREIT's investment in TIC (65% interest) | $ 20,074 | $ 20,101 |
Investment in tenancy-in-comm_5
Investment in tenancy-in-common (Schedule of Income Statement of Pierre Property) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenues | $ 12,754 | $ 15,593 |
Operating expenses | 8,846 | 13,451 |
Net operating income | 3,908 | 2,142 |
Depreciation | 2,295 | 2,932 |
Interest expense including amortization of deferred financing costs | 3,132 | 4,235 |
Net loss | 779 | (2,021) |
FREIT's loss on investment in TIC (65% interest) | (27) | |
Pierre Property [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenues | 1,891 | |
Operating expenses | 991 | |
Net operating income | 900 | |
Depreciation | 540 | |
Interest expense including amortization of deferred financing costs | 401 | |
Net loss | (41) | |
FREIT's loss on investment in TIC (65% interest) | $ (27) |
Termination of Purchase and S_2
Termination of Purchase and Sale Agreement (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 17, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Jan. 14, 2020 | |
Escrow deposit amount | $ 1,923,000 | $ 2,876,000 | ||
Amount of liquidated damages | $ 15,000,000 | |||
Expense incurred | 0 | $ 3,382,000 | ||
Legal costs | $ 481,000 | |||
Purchase and Sale Agreement [Member] | Six Apartment Properties [Member] | ||||
Percentage of ownership interest | 100.00% | |||
Purchase and Sale Agreement [Member] | Six Apartment Properties [Member] | Letter of Credit [Member] | ||||
Escrow deposit amount | $ 15,000,000 |
Management agreement, fees an_2
Management agreement, fees and transactions with related party (Details) - USD ($) | 3 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Asset management fees | $ 526,000 | $ 715,000 | |
Insurance commissions | 10,000 | ||
Secured loans receivable | 5,219,000 | $ 5,194,000 | |
Rotunda 100 members [Member] | |||
Related Party Transaction [Line Items] | |||
Secured loans receivable | 4,000,000 | 4,000,000 | |
Unpaid accrued interest | $ 1,219,000 | 1,194,000 | |
Grande Rotunda, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Ownership by noncontrolling owners (percentage) | 40.00% | ||
Ownership by parent (percentage) | 60.00% | ||
Due to affiliate | $ 6,000,000 | $ 5,900,000 | |
Managing Agent Hekemian & Co [Member] | |||
Related Party Transaction [Line Items] | |||
Asset management fees | 513,000 | 699,000 | |
Leasing commissions and reimbursement of operating expenses | 129,000 | 475,000 | |
Insurance commissions | 69,000 | 51,000 | |
Robert S. Hekemian [Member] | |||
Related Party Transaction [Line Items] | |||
Trustee fees and related interest payable in stock units | 0 | 21,000 | |
Consulting fee per month | 5,000 | ||
Consulting fee quarterly installments | 15,000 | ||
Consulting services expense | 0 | 8,000 | |
Robert S. Hekemian, Jr. [Member] | |||
Related Party Transaction [Line Items] | |||
Trustee fees and related interest payable in stock units | 116,000 | 119,000 | |
Allan Tubin [Member] | |||
Related Party Transaction [Line Items] | |||
Trustee fees and related interest payable in stock units | 8,000 | 8,000 | |
David Hekemian [Member] | |||
Related Party Transaction [Line Items] | |||
Trustee fees and related interest payable in stock units | $ 14,000 | $ 16,000 | |
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 ($) | Mar. 05, 2021 | Sep. 30, 2020 | Apr. 03, 2019 | Feb. 07, 2018 | Feb. 07, 2018 | Feb. 28, 2020 | Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2020 |
Debt Instrument [Line Items] | |||||||||
Deferred loan payments | $ 1,013,000 | ||||||||
Repayments Of Loan | 162,000 | $ 162,000 | |||||||
Legal fees | 481,000 | ||||||||
Westwood Hills Property [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed rate mortgage loans | $ 19,200,000 | ||||||||
Loan amount, new | $ 25,000,000 | ||||||||
Basis points, interest rate | 400.00% | ||||||||
Interest rate | 4.15% | ||||||||
Membership interest percentage | 40.00% | ||||||||
Maturity date of loan | Oct. 1, 2022 | ||||||||
Available to draw | $ 25,000,000 | ||||||||
Legal fees | 250,000 | ||||||||
Westwood Hills Property [Member] | Minimum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed rate mortgage loans | $ 2,200,000 | ||||||||
Fixed interest rate on old loan | 4.15% | ||||||||
Westwood Hills Property [Member] | Maximum [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed rate mortgage loans | $ 5,600,000 | ||||||||
Fixed interest rate on old loan | 4.62% | ||||||||
M&T Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan amount | $ 22,500,000 | $ 21,600,000 | |||||||
Basis points, interest rate | 240.00% | 255.00% | |||||||
Interest rate cap | 2.59% | ||||||||
Maturity date of loan | May 1, 2020 | ||||||||
Extended maturity date of loan | Nov. 1, 2020 | Jan. 31, 2023 | |||||||
Maturity date of interest rate cap | Jan. 31, 2022 | ||||||||
Monthly payment of loan | $ 47,250 | $ 49,250 | |||||||
Wells Fargo Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fixed rate mortgage loans | $ 500,000 | $ 500,000 | |||||||
Loan amount | 118,500,000 | 118,500,000 | |||||||
Principal payments per quater | 750,000 | ||||||||
Aareal Capital Corporation [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan amount | $ 118,500,000 | $ 118,500,000 | $ 118,500,000 | ||||||
Basis points, interest rate | 285.00% | ||||||||
Interest rate cap | 3.00% | 3.00% | 2.99% | ||||||
Maturity date of loan | Feb. 6, 2021 | ||||||||
Available to draw | $ 3,380,000 | ||||||||
Monthly payment of loan | $ 121,900,000 | ||||||||
Aareal Capital Corporation [Member] | Subsequent Event [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan amount | $ 118,500,000 | ||||||||
Interest rate cap | 3.00% | ||||||||
Maturity date of loan | Feb. 6, 2022 | ||||||||
Grande Rotunda LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan amount available | $ 121,900,000 | ||||||||
Interest rate cap | 3.00% | ||||||||
Maturity date of interest rate cap | Mar. 5, 2020 | ||||||||
Provident Bank [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Loan amount | $ 13,000,000 | ||||||||
Basis points, interest rate | 25.00% | ||||||||
Interest rate cap | 3.75% | ||||||||
Line of credit, maximum borrowing capacity | $ 13,000,000 |
Fair value of long-term debt (D
Fair value of long-term debt (Details) - USD ($) $ in Thousands | Jan. 31, 2021 | Oct. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 308,800 | $ 311,400 |
Carrying value of long-term debt | $ 304,680 | $ 305,430 |
Segment information (Details)
Segment information (Details) $ in Thousands | 3 Months Ended | |
Jan. 31, 2021USD ($)segmentsProperties | Jan. 31, 2020USD ($) | |
Reportable Segments | ||
Real estate rental revenue | $ 12,754 | $ 15,593 |
Real estate operating expenses | 8,846 | 13,451 |
Operating income | 3,908 | 2,142 |
Reconciliation to condensed consolidated net income (loss) attributable to common equity: | ||
Segment NOI | 7,669 | 9,165 |
Deferred rents - straight lining | (206) | 63 |
Investment income | 30 | 72 |
General and administrative expenses | (1,260) | (772) |
Special committee third party advisory, legal and other expenses | (3,382) | |
Loss on investment in tenancy-in-common | (27) | |
Depreciation | (2,295) | (2,932) |
Financing costs | (3,132) | (4,235) |
Net income (loss) | 779 | (2,021) |
Net income attributable to noncontrolling interests in subsidiaries | (221) | (241) |
Net income (loss) attributable to common equity | $ 558 | (2,262) |
Number of reportable segments | segments | 2 | |
Commercial [Member] | ||
Reconciliation to condensed consolidated net income (loss) attributable to common equity: | ||
Number of properties | Properties | 8 | |
Residential [Member] | ||
Reportable Segments | ||
Recurring capital improvements | $ (82) | (96) |
Reconciliation to condensed consolidated net income (loss) attributable to common equity: | ||
Number of properties | Properties | 7 | |
Operating Segments [Member] | ||
Reportable Segments | ||
Real estate rental revenue | $ 12,960 | 15,530 |
Real estate operating expenses | 5,291 | 6,365 |
Operating income | 7,669 | 9,165 |
Operating Segments [Member] | Commercial [Member] | ||
Reportable Segments | ||
Real estate rental revenue | 6,351 | 7,014 |
Real estate operating expenses | 2,627 | 2,724 |
Operating income | 3,724 | 4,290 |
Operating Segments [Member] | Residential [Member] | ||
Reportable Segments | ||
Real estate rental revenue | 6,609 | 8,516 |
Real estate operating expenses | 2,664 | 3,641 |
Operating income | $ 3,945 | $ 4,875 |
Income taxes (Details)
Income taxes (Details) | 12 Months Ended |
Oct. 31, 2021 | |
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 | Jan. 31, 2021 | Jan. 31, 2020 |
Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for issuance | 442,060 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Plan term | 10 years | 10 years | 10 years | 10 years | ||
Vesting term | 5 years | 5 years | 5 years | |||
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 | $ 12,000 | ||||
Unrecognized compensation cost | $ 60,000 | |||||
Unrecognized compensation cost, recognition period | 2 years | |||||
Aggregate intrinsic value of options expected to vest | $ 111,000 | |||||
Aggregate intrinsic value of options exercisable | $ 43,000 |
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 | Jan. 31, 2021 | Jan. 31, 2020 |
No. of Options Outstanding | ||||||
Options outstanding at beginning of period | 310,740 | 310,740 | ||||
Options granted during period | 5,000 | 38,000 | 38,000 | 246,000 | ||
Options forfeited/cancelled during period | ||||||
Options outstanding at end of period | 310,740 | 310,740 | ||||
Options vested and expected to vest | 308,310 | 308,310 | ||||
Options exercisable at end of period | 276,340 | 260,140 | ||||
Weighted Average Exercise Price | ||||||
Options outstanding beginning of period | $ 18.35 | $ 18.35 | ||||
Options granted during period | $ 15 | $ 15.50 | $ 21 | $ 18.45 | ||
Options forfeited/cancelled during period | ||||||
Options outstanding end of period | $ 18.35 | $ 18.35 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Dividends payable | $ 342,000 | ||
Deferred Fee Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Trustee fee expense | 118,100 | 203,000 | |
Deferred trustee fees | 110,200 | $ 203,000 | |
Deferred accrued interest | $ 1,091,000 | 1,091,000 | |
Basis spread on any deferred fee (percentage) | 1.50% | ||
Term of distribution to participants | 10 years | ||
Shares issued | 6,919 | 9,230 | |
Dividends payable | $ 7,900 | $ 0 | |
Cumulative fees | $ 1,542,000 | $ 1,542,000 |
Rental Income (Narrative) (Deta
Rental Income (Narrative) (Details) | 3 Months Ended |
Jan. 31, 2021 | |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease terms for residential tenants, periods | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease terms for residential tenants, periods | 2 years |
Rental Income (Schedule of Mini
Rental Income (Schedule of Minimum Rental Income) (Details) $ in Thousands | Jan. 31, 2021USD ($) | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
2021 | $ 17,096 | [1] |
2022 | 14,380 | |
2023 | 11,817 | |
2024 | 9,652 | |
2025 | 8,249 | |
Thereafter | 25,486 | |
Total | $ 86,680 | |
[1] | Amount represents full fiscal year |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | |
Aggregate lease termination fee | $ 260,000 | ||
Loss of base rent and additional rent | $ 400,000 | ||
Percentage of monthly cash collections | 82.00% | ||
Rental revenue deemed uncollectible | $ 600,000 | ||
Security deposit as accounts receivables | 1,451,000 | $ 2,148,000 | |
Rent abatements | 50,000 | ||
Deferred payments of loan | 1,013,000 | ||
Repayments of Loan | 162,000 | $ 162,000 | |
Positive cash flow from operations | 5,096,000 | $ (2,237,000) | |
Cash balance | 39,800,000 | ||
Available line of credit | 13,000,000 | ||
FREIT [Member] | |||
Aggregate lease termination fee | 140,000 | ||
Loss of base rent and additional rent | 200,000 | ||
Rental revenue deemed uncollectible | 400,000 | ||
Rent abatements | $ 31,000 | ||
Commercial Properties [Member] | |||
Average annual occupancy rate | 77.10% | 81.50% | |
Security deposit as accounts receivables | $ 405,000 |