Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2021 | Jan. 28, 2022 | Apr. 30, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0000036840 | ||
Current Fiscal Year End Date | --10-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Oct. 31, 2021 | ||
Entity File Number | 000-25043 | ||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. | ||
Entity Incorporation State Country Name | MD | ||
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 | Common stock, par value $0.01 per share | ||
Trading Symbol | FREVS | ||
Name of Exchange on which Security is Registered | NONE | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Auditor Attestation Flag | false | ||
Entitys Reporting Status Current | 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 Public Float | $ 105 | ||
Entity Common Stock, Shares Outstanding | 6,860,048 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 270,634 | $ 278,150 |
Construction in progress | 665 | 566 |
Cash and cash equivalents | 35,891 | 36,860 |
Investment in tenancy-in-common | 19,383 | 20,101 |
Tenants' security accounts | 1,340 | 1,408 |
Receivables arising from straight-lining of rents | 3,747 | 3,977 |
Accounts receivable, net of allowance for doubtful accounts of $966 and $804 as of October 31, 2021 and 2020, respectively | 1,622 | 1,811 |
Secured loans receivable (related party) | 5,292 | 5,194 |
Prepaid expenses and other assets | 5,493 | 4,985 |
Deferred charges, net | 2,038 | 2,163 |
Total Assets | 346,105 | 355,215 |
Liabilities: | ||
Mortgages payable, including deferred interest of $358 and $360 as of October 31, 2021 and 2020, respectively | 301,276 | 307,240 |
Less unamortized debt issuance costs | 1,400 | 1,810 |
Mortgages payable, net | 299,876 | 305,430 |
Due to affiliate | 3,252 | 5,921 |
Deferred director compensation payable | 2,475 | 2,633 |
Accounts payable and accrued expenses | 2,375 | 2,277 |
Dividends payable | 686 | |
Tenants' security deposits | 2,039 | 2,124 |
Deferred revenue | 1,143 | 1,043 |
Interest rate cap and swap contracts | 2,308 | 4,924 |
Total Liabilities | 314,154 | 324,352 |
Commitments and contingencies (Note 7) | ||
Common equity: | ||
Shares of beneficial interest without par value: 0 shares authorized and issued at October 31, 2021; 8,000,000 shares authorized and 6,993,152 shares issued plus 152,144 vested share units granted to Directors at October 31, 2020 | 27,960 | |
Treasury stock, at cost: 0 and 136,501 shares at October 31, 2021 and 2020, respectively | (2,863) | |
Preferred stock with par value of $0.01 per share: 5,000,000 and 0 shares authorized and issued, respectively, at October 31, 2021; 0 shares authorized and issued, respectively, at October 31, 2020 | ||
Common stock with par value of $0.01 per share: 20,000,000 and 0 shares authorized at October 31, 2021 and 2020, respectively; 6,860,048 and 0 shares issued plus 175,923 and 0 vested share units granted to Directors at October 31, 2021 and 2020, respectively | 71 | |
Additional Paid-In-Capital | 25,556 | |
Retained earnings | 12,963 | 13,791 |
Accumulated other comprehensive loss | (2,017) | (3,986) |
Total Common Equity | 36,573 | 34,902 |
Noncontrolling interests in subsidiaries | (4,622) | (4,039) |
Total Equity | 31,951 | 30,863 |
Total Liabilities and Equity | $ 346,105 | $ 355,215 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 966 | $ 804 |
Deferred interest | $ 358 | $ 360 |
Shares of benefical interest, authorized | 0 | 8,000,000 |
Shares of benefical interest, issued | 0 | 6,993,152 |
Beneficial vested share units granted to Directors | 152,144 | |
Treasury stock at cost, shares | 0 | 136,501 |
Preferred stock, par value per share | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value per share | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 0 |
Common stock, shares issued | 6,860,048 | 0 |
Common vested share units to Directors | 175,923 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Revenue: | |||
Rental income | $ 44,160 | $ 46,184 | $ 53,326 |
Reimbursements | 5,468 | 5,840 | 6,429 |
Sundry income | 663 | 703 | 522 |
Total revenue | 50,291 | 52,727 | 60,277 |
Expenses: | |||
Operating expenses | 17,249 | 15,805 | 16,501 |
Third party transaction costs (See Note 14) | 4,606 | 1,416 | |
Management fees | 2,178 | 2,251 | 2,603 |
Real estate taxes | 8,062 | 8,687 | 9,591 |
Depreciation | 9,300 | 10,341 | 11,339 |
Tenant improvement write-off due to COVID-19 | 7,277 | ||
Total expenses | 36,789 | 48,967 | 41,450 |
Operating income | 13,502 | 3,760 | 18,827 |
Investment income | 116 | 204 | 360 |
Unrealized loss on interest rate cap contract | (160) | ||
Gain on sale of property | 836 | ||
Gain on deconsolidation of subsidiary | 27,680 | ||
Loss on investment in tenancy-in-common | (295) | (202) | |
Interest expense including amortization of deferred financing costs | (12,276) | (14,122) | (18,070) |
Net income | 1,047 | 17,320 | 1,793 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (120) | 3,233 | (6) |
Net income attributable to common equity | $ 927 | $ 20,553 | $ 1,787 |
Earnings per share - basic and diluted | $ 0.13 | $ 2.94 | $ 0.26 |
Weighted average shares outstanding: | |||
Basic | 7,019 | 6,992 | 6,940 |
Diluted | 7,022 | 6,994 | 6,940 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,047 | $ 17,320 | $ 1,793 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on interest rate cap and swap contracts before reclassifications | 1,360 | (3,553) | (6,081) |
Amount reclassified from accumulated other comprehensive loss to interest expense | 1,256 | 755 | (319) |
Net unrealized gain (loss) on interest rate cap and swap contracts | 2,616 | (2,798) | (6,400) |
Comprehensive income (loss) | 3,663 | 14,522 | (4,607) |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (120) | 3,233 | (6) |
Other comprehensive (income) loss: | |||
Unrealized (gain) loss on interest rate cap and swap contracts attributable to noncontrolling interests in subsidiaries | (647) | 852 | 1,843 |
Comprehensive (income) loss attributable to noncontrolling interests in subsidiaries | (767) | 4,085 | 1,837 |
Comprehensive income (loss) attributable to common equity | $ 2,896 | $ 18,607 | $ (2,770) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Shares of Beneficial Interest [Member] | Treasury Stock at Cost [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [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 | |||||
Balance, shares at Oct. 31, 2018 | 7,150 | 235 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock based compensation expense | $ 124 | 124 | 124 | |||||||||
Vested share units granted to Directors and consultant, including in dividends declared payable in share units (per share) | $ 1,046 | 1,046 | 1,046 | |||||||||
Vested share units granted to Directors and consultant, including in dividends declared payable in share units (per share), shares | 64 | |||||||||||
Vested share units issued to consultant and retired Directors | $ (611) | [1] | $ 611 | [1] | (611) | |||||||
Vested share units issued to consultant and retired Directorsr, shares | [1] | (29) | (29) | |||||||||
Deconsolidation of subsidiary | ||||||||||||
Distributions to noncontrolling interests | (686) | (686) | ||||||||||
Net income (loss) | 1,787 | 1,787 | 6 | 1,793 | ||||||||
Dividends declared, including payable in share units (per share) | (4,173) | (4,173) | (4,173) | |||||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | (4,557) | (4,557) | (1,843) | (6,400) | ||||||||
Balance at Oct. 31, 2019 | $ 28,847 | $ (4,330) | (6,762) | (2,040) | 15,715 | 333 | 16,048 | |||||
Balance, shares at Oct. 31, 2019 | 7,185 | 206 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock based compensation expense | $ 46 | 46 | 46 | |||||||||
Vested share units granted to Directors and consultant | $ 534 | 534 | 534 | |||||||||
Vested share units granted to Directors and consultant, shares | 29 | |||||||||||
Vested share units issued to consultant and retired Directors | $ (1,467) | [1] | $ 1,467 | [1] | (1,467) | |||||||
Vested share units issued to consultant and retired Directorsr, shares | [1] | (69) | (69) | |||||||||
Deconsolidation of subsidiary | 3,596 | 3,596 | ||||||||||
Distributions to noncontrolling interests in subsidiaries | (3,883) | (3,883) | ||||||||||
Net income (loss) | 20,553 | 20,553 | (3,233) | 17,320 | ||||||||
Dividends declared, including payable in share units (per share) | 0 | |||||||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | (1,946) | (1,946) | (852) | (2,798) | ||||||||
Balance at Oct. 31, 2020 | $ 27,960 | $ (2,863) | 13,791 | (3,986) | 34,902 | (4,039) | 30,863 | |||||
Balance, shares at Oct. 31, 2020 | 7,145 | 137 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Stock based compensation expense | $ 31 | 11 | 42 | 42 | ||||||||
Vested share units granted to Directors, including in dividends declared payable in share units (per share) | $ 231 | $ 1 | 256 | 488 | 488 | |||||||
Vested share units granted to Directors, including in dividends declared payable in share units (per share), shares | 14 | 14 | ||||||||||
Vested share units issued to consultant and retired Directors | $ (72) | [1] | $ 72 | [1] | (72) | |||||||
Vested share units issued to consultant and retired Directorsr, shares | [1] | (4) | (4) | |||||||||
Deconsolidation of subsidiary | ||||||||||||
Distributions to noncontrolling interests in subsidiaries | (1,350) | (1,350) | ||||||||||
Net income (loss) | 927 | 927 | 120 | 1,047 | ||||||||
Dividends declared, including payable in share units (per share) | (1,755) | (1,755) | (1,755) | |||||||||
Reincorporation of FREIT with and into FREIT Maryland | $ (28,150) | $ 2,791 | $ 70 | 25,289 | ||||||||
Reincorporation of FREIT with and into FREIT Maryland, shares | (7,155) | (133) | 7,022 | |||||||||
Net unrealized gain (loss) on interest rate cap and swap contracts | 1,969 | 1,969 | 647 | 2,616 | ||||||||
Balance at Oct. 31, 2021 | $ 71 | $ 25,556 | $ 12,963 | $ (2,017) | $ 36,573 | $ (4,622) | $ 31,951 | |||||
Balance, shares at Oct. 31, 2021 | 7,036 | |||||||||||
[1] | Represents the issuance of treasury shares to consultant and retired Director(s) for share units earned. |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2019 | |
Dividends declared, per share | $ 0.25 | $ 0.60 |
Stock dividends payable | $ 42 | $ 106 |
Directors [Member] | ||
Dividends declared, per share | $ 0.25 | $ 0.60 |
Stock dividends payable | $ 42 | $ 106 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Operating activities: | |||
Net income | $ 1,047 | $ 17,320 | $ 1,793 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 9,300 | 10,341 | 11,339 |
Tenant improvement write-off due to COVID-19 | 7,277 | ||
Amortization | 1,653 | 1,819 | 1,750 |
Unrealized loss on interest rate cap contract | 160 | ||
Stock based compensation expense | 42 | 46 | 124 |
Director fees, consultant fee and related interest paid in stock units | 446 | 534 | 940 |
Gain on sale of property | (836) | ||
Gain on deconsolidation of subsidiary | (27,680) | ||
Loss on investment in tenancy-in-common | 295 | 202 | |
Deferred rents - straight line rent | 230 | 397 | (410) |
Bad debt expense | 361 | 619 | 263 |
Changes in operating assets and liabilities: | |||
Tenants' security accounts | (75) | (285) | 149 |
Accounts receivable, prepaid expenses and other assets | (363) | (1,527) | (968) |
Accounts payable, accrued expenses and deferred director compensation payable | (7) | (5,452) | 64 |
Deferred revenue | 100 | (300) | 21 |
Due to affiliate - accrued interest | (808) | 216 | 288 |
Deferred interest on mortgages | (2) | 360 | |
Net cash provided by operating activities | 12,219 | 3,887 | 14,677 |
Investing activities: | |||
Proceeds from sale of commercial property, net | 7,060 | ||
Capital improvements - existing properties | (1,936) | (2,048) | (3,087) |
Deferred leasing costs | (279) | (250) | (569) |
Distribution from investment in tenancy-in-common | 423 | 455 | |
Deconsolidation of subsidiary cash and cash equivalents | (1,383) | ||
Net cash (used in) provided by investing activities | (1,792) | (3,226) | 3,404 |
Financing activities: | |||
Repayment of mortgages | (5,962) | (22,910) | (26,529) |
Proceeds from mortgage loan refinancings | 25,000 | 28,815 | |
Deferred financing costs | (699) | (482) | (539) |
Due to affiliate - loan repayment | (1,861) | ||
Dividends paid | (1,027) | (1,357) | (3,048) |
Distributions to noncontrolling interests in subsidiaries | (1,350) | (3,883) | (686) |
Net cash used in financing activities | (10,899) | (3,632) | (1,987) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (472) | (2,971) | 16,094 |
Cash, cash equivalents and restricted cash, beginning of year | 39,517 | 42,488 | 26,394 |
Cash, cash equivalents and restricted cash, end of year | 39,045 | 39,517 | 42,488 |
Supplemental disclosure of cash flow data: | |||
Interest paid | 10,965 | 12,365 | 16,337 |
Operating activities: | |||
Commercial tenant security deposits applied to accounts receivable | 10 | 387 | |
Investing activities: | |||
Accrued capital expenditures, construction costs and pre-development costs | 125 | 179 | 157 |
Financing activities: | |||
Retirement of treasury stock | 2,791 | ||
Dividends declared but not paid | 686 | 1,357 | |
Dividends paid in share units | 42 | 106 | |
Vested share units issued to consultant and retired director | 72 | 1,467 | 611 |
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 STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Reconciliation of Cash Reported in Balance Sheet) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets: | ||||
Cash and cash equivalents | $ 35,891 | $ 36,860 | $ 38,075 | |
Tenants' security accounts | 1,340 | 1,408 | 2,278 | |
Mortgage escrows (included in prepaid expenses and other assets) | 1,814 | 1,249 | 2,135 | |
Total cash, cash equivalents and restricted cash | $ 39,045 | $ 39,517 | $ 42,488 | $ 26,394 |
Organization and significant ac
Organization and significant accounting policies | 12 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and significant accounting policies | Note 1 -   Organization and significant accounting policies: Organization: First Real Estate Investment Trust of New Jersey (“FREIT”) was organized on November 1, 1961 as a New Jersey Business Trust. On July 1, 2021, FREIT completed the change of its form of organization from a New Jersey real estate investment trust to a Maryland corporation (the “Reincorporation”) which was approved by its stockholders at the annual meeting of stockholders held on May 6, 2021. The Reincorporation changes the law applicable to FREIT’s affairs from New Jersey law to Maryland law and was accomplished by the merger of FREIT with and into its wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. (“FREIT Maryland”, “Trust”, “us”, “we”, “our” or the “Company”), a Maryland corporation. As a result of the Reincorporation, the separate existence of FREIT has ceased and FREIT Maryland has succeeded to all the business, properties, assets and liabilities of FREIT. Holders of shares of beneficial interest in FREIT have received one newly issued share of common stock of FREIT Maryland for each share of FREIT that they own, without any action of stockholders required and all treasury stock held by FREIT was retired. FREIT Maryland is engaged in owning residential and commercial income producing properties located primarily in New Jersey, Maryland and New York. FREIT Maryland has elected to be taxed as a Real Estate Investment Trust under the provisions of Sections 856-860 of the Internal Revenue Code, as amended. Accordingly, FREIT Maryland does not pay federal income tax on income whenever income distributed to stockholders is equal to at least 90% of real estate investment trust taxable income. Further, FREIT Maryland pays no federal income tax on capital gains distributed to stockholders. FREIT Maryland is subject to federal income tax on undistributed taxable income and capital gains. FREIT Maryland may make an annual election under Section 858 of the Internal Revenue Code to apply part of the regular dividends paid in each respective subsequent year as a distribution for the immediately preceding year. Recently issued accounting standards: In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04 “ Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (ASC 848): Scope Principles of consolidation: The consolidated financial statements include the accounts of FREIT Maryland and the following subsidiaries in which FREIT Maryland has a controlling financial interest, including two LLCs in which FREIT Maryland is the managing member with a 40% ownership interest: Subsidiary Owning Entity % Ownership Year Acquired/ Organized Westwood Hills, LLC FREIT Maryland 40% 1994 Wayne PSC, LLC FREIT Maryland 40% 2002 Damascus Centre, LLC FREIT Maryland 70% 2003 Grande Rotunda, LLC FREIT Maryland 60% 2005 WestFREIT, Corp FREIT Maryland 100% 2007 FREIT Regency, LLC FREIT Maryland 100% 2014 Station Place on Monmouth, LLC FREIT Maryland 100% 2017 Berdan Court, LLC FREIT Maryland 100% 2019 The consolidated financial statements include 100% of each subsidiary’s assets, liabilities, operations and cash flows, with the interests not owned by FREIT Maryland reflected as "noncontrolling interests in subsidiaries”. All significant intercompany accounts and transactions have been eliminated in consolidation. Investment in tenancy-in-common: On February 28, 2020, FREIT Maryland 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 Maryland owned a 65% partnership interest in S&A, which owned 100% of the Pierre Towers property located in Hackensack, New Jersey through its 100% interest in Pierre Towers, LLC. Accordingly, FREIT Maryland consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, 76 Table of Contents liabilities, operations and cash flows with the interest not owned by FREIT Maryland reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT Maryland 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 (“ASC”) 810, “Consolidation” Reclassification: Certain prior year cash flow line items have been reclassified to conform to the current year presentation. Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and cash equivalents: Financial instruments that potentially subject FREIT Maryland to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT Maryland considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT Maryland maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits. Real estate development costs: It is FREIT Maryland’s policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT Maryland ceases capitalization of these costs when the project or portion thereof becomes operational, or when construction has been postponed. In the event of a postponement, capitalization of these costs will recommence once construction on the project resumes. Depreciation: Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. Impairment of long-lived assets: Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. There were no impairments of long-lived assets for the fiscal year ended October 31, 2021. In Fiscal 2020, Cobb Theatre, an anchor tenant movie theatre at the Rotunda retail property filed for bankruptcy and rejected its lease at the Rotunda property as of June 30, 2020. In the fourth quarter of Fiscal 2020, management determined that it would be unable to re-let the space on similar terms and as such tenant improvements in the amount of approximately $7.3 million (with a consolidated impact to FREIT Maryland of approximately $4.4 million) related to Cobb Theatre were deemed impaired and written off. (See Note 16) For the fiscal year ended October 31, 2019 there were no impairments of long-lived assets. Deferred charges: Deferred charges consist primarily of leasing commissions which are amortized on the straight-line method over the terms of the applicable leases. Debt issuance costs: Debt issuance costs are amortized on the straight-line method by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $1,109,000, $1,089,000 and $1,139,000 in Fiscal 2021, 2020 and 2019, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. Revenue recognition: Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT Maryland and commercial tenants generally provide for additional rentals and reimbursements for their proportionate share of real estate taxes, insurance, common area maintenance charges and may include percentage of tenants' sales in excess of specified volumes. Percentage rents are generally included in income when reported to FREIT Maryland when earned, or ratably over the appropriate period. Interest rate cap and swap contracts: FREIT Maryland utilizes derivative financial instruments to reduce interest rate risk. FREIT Maryland does not hold or issue derivative financial instruments for trading purposes. FREIT Maryland recognizes all derivatives as either 77 Table of Contents assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as cash flow hedges, are reported in other comprehensive income. (See Note 6) Advertising: FREIT Maryland expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $421,000, $297,000 and $281,000 in Fiscal 2021, 2020 and 2019, respectively. Stock-based compensation: FREIT Maryland has a stock-based compensation plan that was approved by FREIT Maryland’s Board of Directors (the “Board”), and ratified by FREIT Maryland’s stockholders. Stock based awards are accounted for based on their grant-date fair value (see Note 10). |
Property dispositions
Property dispositions | 12 Months Ended |
Oct. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Property dispositions | Note 2 -   Property disposition: On February 8, 2019, FREIT Maryland 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 Maryland 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 eliminated 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 Maryland’s operations or financial results, the property’s operations were not reflected as discontinued operations in the accompanying consolidated financial statements. |
Investment in tenancy-in-common
Investment in tenancy-in-common | 12 Months Ended |
Oct. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in tenancy-in-common | Note 3 -   Investment in tenancy-in-common: On February 28, 2020, FREIT Maryland reorganized S&A from a partnership into a TIC. Prior to this reorganization, FREIT Maryland owned a 65% partnership interest in S&A, which owned 100% of the Pierre Towers property located in Hackensack, New Jersey through its 100% interest in Pierre Towers, LLC. Accordingly, FREIT Maryland 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 Maryland reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT Maryland 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” FREIT Maryland’s investment in the TIC was approximately $19.4 million and $20.1 million at October 31, 2021 and 2020, respectively, with a loss on investment of approximately $295,000 and $202,000, respectively, in the accompanying consolidated statements of income for the fiscal years ended October 31, 2021 and 2020, respectively. Hekemian & Co., Inc. (“Hekemian & Co.”) manages the Pierre Towers property based on a management agreement between the owners of the TIC and Hekemian & Co. dated as of February 28, 2020 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 term of the management agreement was renewed for a one-year term which will expire on February 28, 2023. The management agreement requires the payment of management fees equal to 5% of rents collected. Management fees, charged to operations, were approximately $375,000 for the fiscal year ended October 31, 2021 and $241,000 for the period from February 28, 2020 through October 31, 2020. Hekemian & Co. management fees outstanding at October 31, 2021 and 2020 were approximately $32,500 and $32,000, respectively. The Pierre Towers property also uses the resources of the Hekemian & Co. insurance department to secure various insurance coverages for its property. Hekemian & Co. is paid a commission for these services. Such commissions were charged to operations and amounted to approximately $51,000 for the fiscal year ended October 31, 2021 and $26,000 for the period from February 28, 2020 through October 31, 2020. 78 Table of Contents The following table summarizes the balance sheets of the Pierre Towers property as of October 31, 2021 and 2020 accounted for by the equity method: October 31, October 31, 2021 2020 (In Thousands of Dollars) Real estate, net $ 78,023 $ 80,041 Cash and cash equivalents 1,338 754 Tenants' security accounts 484 523 Receivables and other assets 510 468 Total assets $ 80,355 $ 81,786 Mortgages payable, net of unamortized debt issuance costs $ 49,691 $ 49,956 Accounts payable and accrued expenses 261 314 Tenants' security deposits 484 535 Deferred revenue 99 56 Equity 29,820 30,925 Total liabilities & equity $ 80,355 $ 81,786 FREIT Maryland's investment in TIC (65% interest) $ 19,383 $ 20,101 The following table summarizes the statements of operations of the Pierre Towers property for the fiscal year ended October 31, 2021 and for the period from February 28, 2020 through October 31, 2020, accounted for by the equity method: Year Ended October 31, 2021 For the period from February 28, 2020 through October 31, 2020 (In Thousands of Dollars) Revenues $ 7,627 $ 4,981 Operating expenses 4,311 2,786 Depreciation 2,166 1,435 Operating income 1,150 760 Interest expense including amortization of deferred financing costs 1,604 1,070 Net loss $ (454 ) $ (310 ) FREIT Maryland's loss on investment in TIC (65% interest) $ (295 ) $ (202 ) |
Real estate
Real estate | 12 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Real estate | Note 4 -   Real estate: Real estate consists of the following: Range of Estimated October 31, Useful Lives 2021 2020 (In Thousands of Dollars) Land $ 75,688 $ 75,688 Unimproved land 405 405 Apartment buildings 7-40 years 156,408 155,923 Commercial buildings/shopping centers 5-40 years 151,598 151,293 Equipment/Furniture 5-15 years 2,156 1,978 Total real estate, gross 386,255 385,287 Less: accumulated depreciation 115,621 107,137 Total real estate, net $ 270,634 $ 278,150 |
Mortgages payable and credit li
Mortgages payable and credit line | 12 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Mortgages payable and credit line | Note 5 -   Mortgages payable and credit line: October 31, 2021 October 31, 2020 Principal (Including Deferred Interest) Unamortized Debt Issuance Costs Principal (Including Deferred Interest) Unamortized Debt Issuance Costs (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 14,453 $ 50 $ 15,050 $ 23 Westwood, NJ (B) 18,001 39 18,695 71 Wayne, NJ (C) 28,815 379 28,815 427 River Edge, NJ (D) 9,545 36 9,789 53 Red Bank, NJ (E) 11,971 93 12,181 108 Wayne, NJ (F) 22,588 172 23,336 205 Damascus, MD (G) 18,274 101 18,824 166 Middletown, NY (H) 14,921 104 15,255 137 Total fixed rate 138,568 974 141,945 1,190 Westwood, NJ (I) 25,000 220 25,000 460 Frederick, MD (J) 21,188 30 21,775 - Baltimore, MD (K) 116,520 105 118,520 160 Line of credit - Provident Bank (L) - 71 - - Total variable rate 162,708 426 165,295 620 Total $ 301,276 $ 1,400 $ 307,240 $ 1,810 (A) Payable in monthly installments of $ (B) On January 14, 2013, FREIT Maryland refinanced its Westwood Plaza mortgage loan in the amount of $ As a result of the negative impact of the COVID-19 pandemic at this property, FREIT Maryland was granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended June 30, 2020, resulting in total deferred payments of approximately $390,000, of which approximately $222,000 related to deferred interest. These deferred payments are included in the mortgages payable on the consolidated balance sheet as of October 31, 2021 and 2020 and are due at the maturity of this loan. (C) On August 26, 2019, Berdan Court, LLC (“Berdan Court”), refinanced its $ The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,490,000 as of October 31, 2021. (D) On November 19, 2013, FREIT Maryland refinanced mortgage loans scheduled to mature on December 1, 2013 with a new (E) On December 7, 2017, Station Place on Monmouth, LLC (“Station Place”) closed on a mortgage loan in the amount of 80 Table of Contents a net book value of approximately $18,514,000 as of October 31, 2021. (F) On September 29, 2016, Wayne PSC, LLC (“Wayne PSC”) refinanced its $ As a result of the negative impact of the COVID-19 pandemic at this property, we were granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended November 1, 2020, resulting in total deferred payments of approximately $319,000, of which approximately $138,000 related to deferred interest. These deferred payments are included in the mortgages payable on the consolidated balance sheets as of October 31, 2021 and 2020 and are due at the maturity of this loan. As a result of COVID-19 pandemic rent losses and the planning for a potential redevelopment of its shopping center, as of October 31, 2021, Wayne PSC was not, and currently is not, in compliance with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank in the amount of approximately $22.6 million as of October 31, 2021. Although the Company continues to make its required debt service payments in accordance with the loan agreement, it is unable to comply with this covenant. As such, the bank could exercise its remedies under the loan agreement including, among other things, requiring a partial or full repayment of the loan. The Company is currently working with the lender to remediate this covenant default. As of the date of the filing of this Form 10K report, the bank has not declared this loan to be in default. Until such time as a definitive agreement is entered into, there can be no assurance the loan covenant will be amended and the bank will not declare this loan to be in default. (G) On December 26, 2012, Damascus Centre, LLC (“Damascus Centre”) refinanced its construction loan with long-term financing The loan has a maturity date of January 3, 2023 and bears a floating interest rate equal to 210 points over the one-month BBA LIBOR. In order to minimize interest rate volatility during the term of this loan, Damascus Centre, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate on each tranche of this loan, resulting in a fixed rate of 3.81% over the term of the first tranche of this loan and a fixed rate of 3.53% over the term of the second tranche of this loan. (See Note 6 for additional information relating to the interest rate swaps.) The shopping center securing the loan has a net book value of approximately $24,700,000 as of October 31, 2021. On January 10, 2022, the property owned by Damascus Centre was sold and a portion of the proceeds was used to pay off the approximately $18.2 million then outstanding balance of this loan. (See Note 17 for additional details.) (H) On December 29, 2014, FREIT Regency, LLC (“Regency”) closed on a $ (I) On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”) refinanced its $ 81 Table of Contents $5.6 million that were distributed to the partners in Westwood Hills with FREIT Maryland receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. As of October 31, 2021, $25,000,000 of this loan was drawn and outstanding and the interest rate was based on the floor of 4.15%. The mortgage is secured by an apartment building in Westwood, New Jersey having a net book value of approximately $8,207,000 as of October 31, 2021. (J) On April 28, 2017, WestFREIT, Corp. refinanced its $ On April 3, 2019, WestFREIT, Corp. exercised its option to extend this loan, 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 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 previous agreement. 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 of WestFREIT, Corp. 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. As of October 31, 2021, approximately $21.2 million of this loan was outstanding and the interest rate was approximately 2.68%. The mortgage is secured by a retail building in Frederick, Maryland having a net book value of approximately $11,626,000 as of October 31, 2021. As a result of the negative impact of the COVID-19 pandemic at this property, FREIT Maryland was granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended June 30, 2020, resulting in total deferred payments of approximately $303,800, of which approximately $162,100 related to deferred interest was repaid as of October 31, 2020. The remaining deferred balance due of approximately $141,700 is included in the mortgages payable on the consolidated balance sheets as of October 31, 2021 and 2020 and is due at the maturity of this loan. On January 7, 2022, the property owned by WestFREIT was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Note 17 for additional details.) (K) On February 7, 2018, Grande Rotunda, LLC (“Grande Rotunda”) refinanced its $ 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. Principal payments in the amount of $500,000 were required upon exercise of the first loan extension option and per calendar quarter thereafter. 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. As of October 31, 2021, the total amount outstanding on this loan was approximately $116.5 million and the interest rate was approximately 2.93%. The loan is secured by the Rotunda property, which has a net book value of approximately $136,623,000 as of October 31, 2021. On December 30, 2021, the property owned by Grande Rotunda was sold and a portion of the proceeds was used to pay off the $116.5 million then outstanding balance of this loan. (See Note 17 for additional details.) 82 Table of Contents (L) FREIT Maryland’s revolving line of credit provided by Provident Bank was renewed for a three-year term ending on Certain of the Company’s mortgage loans and the line of credit contain financial covenants. Except as was noted in Note 5F above, the Company was in compliance with all of its financial covenants as of October 31, 2021. The lis pendens filed in connection with the legal proceeding between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC may adversely affect FREIT Maryland’s ability to refinance certain of its residential properties. (See Note 14 for additional details.) Fair value of long-term debt: The following table shows the estimated fair value and carrying value of FREIT Maryland’s long-term debt, net at October 31, 2021 and 2020: October 31, October 31, ($ in Millions) 2021 2020 Fair Value $301.6 $311.4 Carrying Value, Net $299.9 $305.4 Fair values are estimated based on market interest rates at the end of each fiscal year and on a discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value is based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2021 are as follows: Year Ending October 31, Amount 2022 $ 201,680 (a)(b)(c)(d) 2023 $ 35,914 (e) 2024 $ 9,663 2025 $ 14,734 2026 $ 817 (a) Includes a loan on Rotunda property located in Baltimore, Maryland in the amount of approximately $116.5 million which would have matured on February 6, 2022. (See Note 5(K)) On December 30, 2021, the property owned by Grande Rotunda was sold and a portion of the proceeds was used to pay off the $116.5 million then outstanding balance of this loan. (See Note 17) (b) Includes a loan on Westridge Square Shopping Center located in Frederick, Maryland in the amount of approximately $ 21.1 million which has a maturity date of January 31, 2021. (See Note 5(J)) On January 7, 2022, the property owned by WestFREIT was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Note 17 for additional details.) (c) Includes a loan on Boulders, which is a residential property located in Rockaway, New Jersey in the amount of approximately $14.5 million which had a maturity date of February 1, 2022. The loan was refinanced on December 30, 2021 in the amount of $7.5 million with additional funding available of up to another $7.5 million and has a maturity date of January 1, 2024. (See Note 17) (d) Includes a loan on the Preakness Shopping Center located in Wayne, New Jersey in the amount of approximately $ 22.6 million. As a result of COVID-19 pandemic rent losses and the planning for a potential redevelopment of its shopping center, as of October 31, 2021, Wayne PSC was not, and currently is not, in compliance with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank in the amount of approximately $22.6 million as of October 31, 2021. Although the Company continues to make its required debt service payments in accordance with the loan agreement, it is unable to comply with this covenant. As such, the bank could exercise its remedies under the loan agreement including, among other things, requiring a partial or full repayment of the loan. The Company is currently working with the lender to remediate this covenant default. As of the date of the filing of this Form 10K report, the bank has not declared this loan to be in default. Until such time as a definitive agreement is entered into, there can be no assurance the loan covenant will be amended and the bank will not declare this loan to be in default. (See Note 5(F)) 83 Table of Contents (e) Includes a loan on the Damascus property located in Damascus, Maryland in the amount of approximately $ 18.2 million. On January 10, 2022, the property owned by Damascus was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Notes 5(G) and 17) |
Interest rate cap and swap cont
Interest rate cap and swap contracts | 12 Months Ended |
Oct. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate swap contracts | Note 6 -   Interest rate cap and swap contracts: In accordance with “Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815")”, FREIT Maryland 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 and cap in comprehensive income. For the year ended October 31, 2021, FREIT Maryland recorded an unrealized gain of approximately $2,616,000 in the consolidated statement of comprehensive income representing the change in the fair value of these cash flow hedges during such period. As of October 31, 2021, there was a liability of approximately $278,000 for the Damascus Centre swaps, $348,000 for the Wayne PSC swap, $750,000 for the Regency swap, $932,000 for the Station Place swap and $0 for the Grande Rotunda interest rate cap. For the year ended October 31, 2020, FREIT Maryland recorded an unrealized loss of approximately $2,798,000 in the consolidated statement of comprehensive income representing the change in the fair value of these cash flow hedges during such period. As of October 31, 2020, there was a liability of approximately $610,000 for the Damascus Centre swaps, $1,260,000 for the Wayne PSC swap, $1,385,000 for the Regency swap, $1,669,000 for the Station Place swap and $0 for the Grande Rotunda interest rate cap. In Fiscal 2019, FREIT Maryland was accounting for its interest rate swaps and cap contract in accordance with ASC 815. For the year ended October 31, 2019, FREIT Maryland recorded an unrealized loss of approximately $6,400,000 in the consolidated statement of comprehensive loss representing the change in the fair value of these cash flow hedges during such period. For the year ended October 31, 2019, FREIT Maryland recorded an unrealized loss in the consolidated statement of income of approximately $160,000 for the Grande Rotunda interest rate cap representing the change in the fair value of this ineffective cash flow hedge during such period. The fair values are based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance). |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 7 -   Commitments and contingencies: Leases Commercial tenants: FREIT Maryland leases commercial space having a net book value of approximately $127.8 million at October 31, 2021 to tenants for periods of up to twenty-five years. Most of the leases contain clauses for reimbursement of real estate taxes, maintenance, insurance and certain other operating expenses of the properties. 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-cancellable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration, rents from tenants for which collectability is deemed to be constrained and rents from the Rotunda property, WestFREIT property and Damascus property sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively, subsequent to October 31, 2021, is as follows: Year Ending October 31, Amount 2022 $ 5,719 2023 5,083 2024 3,970 2025 3,298 2026 2,550 Thereafter 3,313 Total $ 23,933 The above amounts assume that all leases which expire are not renewed and, accordingly, neither month-to-month nor rentals from replacement tenants are included. Minimum future rentals do not include contingent rentals, which may be received under certain leases on the basis of percentage of reported tenants' sales volume. Rental income that is contingent on future events is not included in income until the contingency is resolved. Contingent rentals included in income for each of the years in the three-year period ended October 31, 2021 were not material. 84 Table of Contents Residential tenants: Lease terms for residential tenants are usually one to two years. Environmental concerns The Westwood Plaza Shopping Center property is in a Flood Hazard Zone. FREIT Maryland maintains flood insurance in the amount of $500,000 for the subject property, which is the maximum available under the Flood Program for the property. Any reconstruction of that portion of the property situated in the flood hazard zone is subject to regulations promulgated by the New Jersey Department of Environmental Protection ("NJDEP"), which could require extraordinary construction methods. FREIT Maryland acquired the Westwood Plaza property in 1988, and the property has not experienced any flooding that gave rise to any claims under FREIT Maryland’s flood insurance in this time period. |
Management agreement, fees and
Management agreement, fees and transactions with related party | 12 Months Ended |
Oct. 31, 2021 | |
Related Party Transactions [Abstract] | |
Management agreement, fees and transactions with related party | Note 8 -   Management agreement, fees and transactions with related party: On April 10, 2002, FREIT Maryland and Hekemian & Co. executed a management agreement dated as of November 1, 2001 (“Management Agreement”) whereby Hekemian & Co. would continue as the managing agent for FREIT Maryland. The term of the Management Agreement was renewed for a two-year term which will expire on October 31, 2023. The Management Agreement is automatically renewed for successive periods of two years unless either party gives not less than six (6) months prior notice of non-renewal. Hekemian & Co. currently manages all of the properties owned by FREIT Maryland and its affiliates, except for the office building at The Rotunda located in Baltimore, Maryland, which is managed by an independent third party management company. However, FREIT Maryland may retain other managing agents to manage properties acquired after April 10, 2002 and to perform various other duties such as sales, acquisitions, and development with respect to any or all properties. Hekemian & Co. does not serve as the exclusive property acquisition advisor to FREIT Maryland and is not required to offer potential acquisition properties exclusively to FREIT Maryland before acquiring those properties for its own account. The Management Agreement includes a detailed schedule of fees for those services, which Hekemian & Co. may be called upon to perform. The Management Agreement provides for a termination fee in the event of a termination or non-renewal of the Management Agreement under certain circumstances. The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Such fees, charged to operations, were approximately $2,127,000, $2,201,000, and $2,549,000 in Fiscal 2021, 2020 and 2019, respectively. In addition, the Management Agreement provides for the payment to Hekemian & Co. of leasing commissions, as well as the reimbursement of certain operating expenses, such as payroll and insurance costs, incurred on behalf of FREIT Maryland. Such commissions and reimbursements amounted to approximately $548,000, $982,000 and $762,000 in Fiscal 2021, 2020 and 2019, respectively. Total Hekemian & Co. management fees outstanding at October 31, 2021 and 2020 were approximately $185,000 and $182,000, respectively, and included in accounts payable on the accompanying consolidated balance sheets. FREIT Maryland also uses the resources of the Hekemian & Co. insurance department to secure various insurance coverages for its properties and subsidiaries. Hekemian & Co. is paid a commission for these services. Such commissions were charged to operations and amounted to approximately $209,000, $190,000 and $196,000 in Fiscal 2021, 2020 and 2019, respectively. Grande Rotunda owns and operates the Rotunda property. FREIT Maryland owns a 60% equity interest in Grande Rotunda and Rotunda 100, LLC (“Rotunda 100”) owns a 40% equity interest in Grande Rotunda. The equity owners of Rotunda 100 are principally employees of Hekemian & Co. To incentivize the employees of Hekemian & Co, FREIT Maryland advanced, only to employees of Hekemian & Co., up to 50% of the amount of the equity contributions that the Hekemian & Co. 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 & Co. employees’ interests in Rotunda 100 and are full recourse loans. Interest only payments are required to be made when billed. No principal payments are required during the term of the notes, except that the borrowers are required to pay to FREIT Maryland all refinancing proceeds and other cash flow they receive from their interest in Grande Rotunda. These payments shall be applied first to accrued and unpaid interest and then any outstanding principal. The notes originally had maturity dates at the earlier of (a) ten (10) years after issue, which was June 19, 2015, or, (b) at the election of FREIT Maryland, ninety (90) days after the borrower terminates employment with Hekemian & Co., at which time all outstanding unpaid principal and interest is due. On May 8, 2008, the Board approved amendments to the existing loan agreements with the Hekemian & Co. employees, relative to their interests in Rotunda 100, to increase the aggregate amount that FREIT Maryland may advance to such employees from $2 million to $4 million. On June 4, 2015, the Board approved an extension of the maturity date of the secured loans to occur the earlier of (a) June 19, 2018 or (b) five days after the closing of a permanent mortgage loan secured by the Rotunda property. On December 7, 2017, the Board approved a further extension of the maturity dates of these loans to the date or dates upon which distributions of 85 Table of Contents 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 October 31, 2021 and 2020. The accrued but unpaid interest related to these notes as of October 31, 2021 and 2020 amounted to approximately $1,292,000 and $1,194,000, respectively, and is included in secured loans receivable on the accompanying 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 contributed their respective pro-rata share of any cash needs through loans to Grande Rotunda. In Fiscal 2021, Grande Rotunda repaid $7 million to the equity owners in Grande Rotunda based on their respective pro-rata share resulting in a loan repayment to Rotunda 100 of approximately $2.8 million. As of October 31, 2021 and 2020, Rotunda 100 has funded Grande Rotunda with approximately $3.3 million and $5.9 million (including accrued interest), respectively, which is included in due to affiliate on the accompanying consolidated balance sheets. From time to time, FREIT Maryland engages Hekemian & Co., or certain affiliates of Hekemian & Co., to provide additional services, such as consulting services related to development, property sales and financing activities of FREIT Maryland. Separate fee arrangements are negotiated between Hekemian & Co. and FREIT Maryland with respect to such additional services. Such fees incurred during Fiscal 2021, 2020 and 2019 were $236,500, $125,000 and $275,000, respectively. Fees incurred during Fiscal 2021 related to commissions to Hekemian & Co. for the following: $150,000 for the extension of the Grande Rotunda loan; $54,000 for the extension and modification of the WestFREIT, Corp. loan; $32,500 for the renewal of FREIT Maryland’s line of credit. Fees incurred during Fiscal 2020 related to commissions to Hekemian & Co. for the refinancing of the Westwood Hills loan. Fees incurred during Fiscal 2019 related to commissions to Hekemian & Co. for the following: $131,250 for the sale of the Patchogue property; $144,075 for the refinancing of the Berdan Court loan. Robert S. Hekemian, Jr., Chief Executive Officer, President and a Director of FREIT Maryland, is the President and Chief Operating Officer of Hekemian & Co. David B. Hekemian, a Director of FREIT Maryland, is the Principal/Broker – Salesperson and Director of Commercial Brokerage of Hekemian & Co. Robert S. Hekemian, the former Chairman and Chief Executive Officer of FREIT Maryland, served as a consultant to FREIT Maryland and Chairman of the Board and Chief Executive Officer of Hekemian & Co. prior to his death in December 2019. Allan Tubin, Chief Financial Officer and Treasurer of FREIT Maryland, is the Chief Financial Officer of Hekemian & Co. Director fee expense and/or executive compensation (including interest and dividends) incurred by FREIT Maryland for Fiscal 2021, 2020 and 2019 was approximately $0, $21,000 and $214,000, respectively, for Robert S. Hekemian, $469,000, $508,000 (including a $100,000 adjustment in Fiscal 2020 related to the final approved Fiscal 2019 compensation), and $381,000, respectively, for Robert S. Hekemian, Jr., $30,000, $26,000 and $22,000, respectively, for Allan Tubin and $57,000, $50,000 and $56,000, respectively, for David Hekemian. (See Note 11 to FREIT Maryland’s consolidated financial statements). Such costs are included within operating expenses on the accompanying consolidated statements of income. Effective upon the late Robert S. Hekemian’s retirement as Chairman, Chief Executive Officer and as a Director on April 5, 2018, FREIT Maryland entered into a consulting agreement with Mr. Hekemian, pursuant to which Mr. Hekemian provided consulting services to FREIT Maryland through December 2019. The consulting agreement obliged Mr. Hekemian to provide advice and consultation with respect to matters pertaining to FREIT Maryland and its subsidiaries, affiliates, assets and business for no fewer than 30 hours per month during the term of the agreement. FREIT Maryland paid Mr. Hekemian a consulting fee of $5,000 per month during the term of the consulting agreement, which was payable in the form of shares on a quarterly basis (i.e. in quarterly installments of $15,000). The number of shares to be issued for each quarterly installment of the consulting fee was determined by dividing the dollar amount of the consulting fee by the closing price of one share on the OTC Pink Open Market as of the close of trading on the last trading day of the calendar quarter with respect to which such consulting fee was payable. For Fiscal 2021, 2020 and 2019, consulting fee expense for Robert S. Hekemian was approximately $0, $8,000 and $60,000, respectively. |
Income taxes
Income taxes | 12 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 9 -   Income taxes: FREIT Maryland has elected to be treated as a REIT for federal income tax purposes and has distributed 99% of its ordinary taxable income to its stockholders as dividends for the fiscal year ended October 31, 2021. There was no ordinary taxable income for the fiscal year ended 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 Maryland’s consolidated financial statements for the fiscal years ended October 31, 2021 and 2020. 86 Table of Contents FREIT Maryland distributed 100% of its ordinary taxable income and 100% of its capital gain from the sale of the Patchogue, New York property to its stockholders 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 Maryland’s consolidated financial statements for the fiscal year ended October 31, 2019. As of October 31, 2021, FREIT Maryland 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 | 12 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity incentive plan | Note 10 -  Equity Incentive Plan: On September 10, 1998, the Board approved FREIT Maryland's Equity Incentive Plan (the "Plan") which was ratified by FREIT Maryland's stockholders on April 7, 1999, whereby up to 920,000 of FREIT Maryland's shares (adjusted for stock splits) may be granted to key personnel in the form of stock options, restricted share awards and other share-based awards. In connection therewith, the Board approved an increase of 920,000 shares in FREIT Maryland's number of authorized shares. Key personnel eligible for these awards include directors, executive officers and other persons or entities including, without limitation, employees, consultants and employees of consultants, who are in a position to make significant contributions to the success of FREIT Maryland. Under the Plan, the exercise price of all options will be the fair market value of the shares on the date of grant. The consideration to be paid for restricted share and other share-based awards shall be determined by the Board, with the amount not to exceed the fair market value of the shares on the date of grant. The maximum term of any award granted may not exceed ten years. The Board will determine the actual terms of each award. On April 4, 2007, FREIT Maryland stockholders approved amendments to the Plan as follows: (a) reserving an additional 300,000 shares for issuance under the Plan; and (b) extending the term of the Plan until September 10, 2018. On April 5, 2018, FREIT Maryland stockholders approved amendments to the Plan to (a) increase the number of shares reserved for issuance thereunder by an additional 300,000 shares and (b) further extend the term of the Plan from September 10, 2018 to September 10, 2028. As of October 31, 2021, 442,060 shares are available for issuance under the Plan. There was no impact to the Plan or options previously granted as a result of the Reincorporation of FREIT with and into FREIT Maryland as discussed in Note 1. On March 4, 2019, the Board approved the grant of an aggregate of 5,000 non-qualified share options under the Plan to the Chairman of the Board. The options have an exercise price of $15.00 per share, will vest in equal annual installments over a 5-year period and will expire 10 years from the date of grant, which will be March 3, 2029. The following table summarizes stock option activity for Fiscal 2021, 2020 and 2019: Year Ended October 31, Year Ended October 31, Year Ended October 31, 2021 2020 2019 No. of Options Exercise No. of Options Exercise No. of Options Exercise Outstanding Price Outstanding Price Outstanding Price Options outstanding at beginning of year 310,740 $ 18.35 310,740 $ 18.35 305,780 $ 18.40 Options granted during year - - - - 5,000 15.00 Options forfeited/cancelled during year - - - - (40 ) 18.45 Options outstanding at end of year 310,740 $ 18.35 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 309,450 308,310 308,310 Options exercisable at end of year 292,540 276,340 260,140 The estimated fair value of options granted during Fiscal 2019 was $2.43 per option. Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: • Expected volatility – 27.69% • Risk-free interest rate – 2.72% • Imputed option life – 6.3 years • Expected dividend yield – 3.82% The expected volatility over the options’ expected life was based on the historical volatility of the weekly closing price of the Company’s stock over a five (5) year period. The risk-free interest rate was based on the annual yield on the grant date of a zero-coupon U.S. Treasury Bond, the maturity of which equals the option’s expected life. The imputed option life was based on the simplified expected term calculation permitted by the SEC, which defines the expected life as the average of the contractual term of the options and the weighted-average vesting period for all option tranches. The expected dividend yield was based on the Company’s historical dividend yield, exclusive of capital gain dividends. The fair value is based on unobservable inputs (level 3 in the fair value hierarchy as provided by authoritative guidance). 87 Table of Contents For Fiscal 2021, 2020 and 2019, compensation expense related to stock options granted amounted to approximately $42,000, $46,000 and $124,000, respectively. At October 31, 2021, there was approximately $30,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately 1.6 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at October 31, 2021 was approximately $410,000 and $341,000, respectively. |
Deferred fee plan
Deferred fee plan | 12 Months Ended |
Oct. 31, 2021 | |
Deferred Compensation Arrangements [Abstract] | |
Deferred fee plan | Note 11 -  Deferred fee plan: During Fiscal 2001, the Board adopted a deferred fee plan for its officers and directors, which was amended and restated in Fiscal 2009 to make the deferred fee plan compliant with Section 409A of the Internal Revenue Code and the regulations promulgated thereunder (the "Deferred Fee Plan"). Pursuant to the Deferred Fee Plan, any officer or director might elect to defer receipt of any fees that would be due to them. These fees included annual retainer and meeting attendance fees as determined by the Board. Prior to the amendments to the Deferred Fee Plan that went into effect November 1, 2014 (described in the following paragraph), amounts deferred under the Deferred Fee Plan accrued interest at a rate of 9% per annum, compounded quarterly. Any such deferred fee was to be paid to the participants at the later of: (i) the retirement age specified in the deferral election; (ii) actual retirement; or (iii) upon cessation of a participant's duties as an officer or director. On September 4, 2014, the Board approved amendments, effective November 1, 2014, to the FREIT Maryland Deferred Fee Plan for its executive officers and directors, one of which provided for the issuance of share units payable in FREIT Maryland shares in respect of (i) deferred amounts of all director fees on a prospective basis; (ii) interest on director 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 was determined by the closing price of FREIT Maryland shares on the date as set forth in the Deferred Fee Plan. All fees payable to directors for the years ended October 31, 2021, 2020 and 2019 were deferred under the Deferred Fee Plan except for fees payable to one director, who elected to receive such fees in cash. As a result of the amendment to the Deferred Fee Plan described above, for the years ended October 31, 2021 and 2020, the aggregate amounts of deferred director fees together with related interest and dividends were approximately $488,000 and $526,000, respectively, which have been paid through the issuance of 27,176 and 29,134, vested FREIT Maryland share units, respectively, based on the closing price of FREIT Maryland shares on the dates as set forth in the Deferred Fee Plan. For the years ended October 31, 2021 and 2020, FREIT Maryland has charged as expense approximately $446,000 and $526,000, respectively, representing deferred director fees and interest, and the balance of approximately $42,000 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, provided that cumulative fees together with accrued interest deferred as of November 1, 2014 was 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 FREIT Maryland under the consulting agreement between Mr. Hekemian and FREIT Maryland 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 in Fiscal 2020. As of October 31, 2021 and 2020, approximately $1,454,000 and $1,542,000, respectively, of fees has been deferred together with accrued interest of approximately $1,021,000 and $1,091,000, respectively. On November 4, 2021 (the “Adoption Date”), the Board approved the termination of the Deferred Fee Plan resulting in the termination of the deferral of fees on December 31, 2021 with any subsequent fees earned by a participant being paid in cash. Consistent with the termination of the Deferred Fee Plan, payment related to each participant’s cash account (in the form of a cash lump sum payment) and share unit account (in the form of the issuance of common shares) must be made to each participant no earlier than twelve (12) months and one day after, and no later than twenty-four (24) months, after the Adoption Date. Any interest earned on the participant’s cash account along with dividends (if any) earned on share units, will continue to accrue in share units on each participant’s account until final payment is made. |
Dividends and earnings per shar
Dividends and earnings per share | 12 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Dividends and earnings per share | Note 12 -  Dividends and earnings per share: FREIT Maryland declared dividends of approximately $1,755,000 ($0.25 per share), $0 and $4,173,000 ($0.60 per share), respectively, to stockholders of record during Fiscal 2021, 2020 and 2019. Basic earnings per share is calculated by dividing net income attributable to common equity (numerator) by the weighted average number of shares and vested share units (See Note 11) 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 88 Table of Contents 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 Maryland’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 Fiscal 2021 and 2020, the outstanding stock options increased the average dilutive shares outstanding by approximately 3,000 and 1,500 shares, respectively, with no impact on earnings per share. For Fiscal 2019, the outstanding stock options were anti-dilutive with no impact on diluted earnings per share. There were approximately 268,000, 268,000 and 306,000, respectively, anti-dilutive shares for the years ended October 31, 2021, 2020 and 2019. Anti-dilutive shares consist of out-of-the money stock options under the Plan. |
Segment information
Segment information | 12 Months Ended |
Oct. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment information | Note 13 -  Segment information: ASC 280-10, " Disclosures about Segments of an Enterprise and Related Information The commercial segment is comprised of eight (8) properties, excluding the land and building formerly occupied as a Pathmark supermarket in Patchogue, New York, which was sold on February 8, 2019 (see Note 2), during the fiscal years ended October 31, 2021, 2020 and 2019. 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 Maryland’s operating results as of February 28, 2020 (see Note 3), during the fiscal years ended October 31, 2021 and 2020. The residential segment was comprised of eight (8) properties during the fiscal year ended October 31, 2019. The accounting policies of the segments are the same as those described in Note 1. The chief operating and decision-making group responsible for oversight and strategic decisions of FREIT Maryland's commercial segment, residential segment and corporate/other is comprised of FREIT Maryland’s Board. FREIT Maryland through its chief operating and decision making group, 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 consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2021. Asset information is not reported since FREIT Maryland does not use this measure to assess performance. 89 Table of Contents Years Ended October 31, 2021 2020 2019 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 23,547 $ 24,486 $ 26,692 Residential 26,974 28,638 33,175 Total real estate rental revenue 50,521 53,124 59,867 Real estate operating expenses: Commercial 11,223 11,334 11,694 Residential 11,071 11,588 14,368 Total real estate operating expenses 22,294 22,922 26,062 Net operating income: Commercial 12,324 13,152 14,998 Residential 15,903 17,050 18,807 Total net operating income $ 28,227 $ 30,202 $ 33,805 Recurring capital improvements - residential $ (625 ) $ (347 ) $ (685 ) Reconciliation to consolidated net income attributable to common equity:   Segment NOI $ 28,227 $ 30,202 $ 33,805 Deferred rents - straight lining (230 ) (397 ) 410 Investment income 116 204 360 Unrealized loss on interest rate cap contract - - (160 ) Third party transaction costs - (4,606 ) (1,416 ) Gain on sale of property - - 836 Gain on deconsolidation of subsidiary - 27,680 - Loss on investment in tenancy-in-common (295 ) (202 ) - General and administrative expenses (5,195 ) (3,821 ) (2,633 ) Depreciation (9,300 ) (10,341 ) (11,339 ) Tenant improvement write-off due to COVID-19 - (7,277 ) - Financing costs (12,276 ) (14,122 ) (18,070 ) Net income 1,047 17,320 1,793 Net (income) loss attributable to noncontrolling interests in subsidiaries   (120 ) 3,233 (6 ) Net income attributable to common equity $ 927 $ 20,553 $ 1,787 |
Termination of Purchase and Sal
Termination of Purchase and Sale Agreement | 12 Months Ended |
Oct. 31, 2021 | |
Business Combination, Consideration Transferred [Abstract] | |
Termination of Purchase and Sale Agreement | Note 14 -  Termination of Purchase and Sale Agreement: On January 14, 2020, FREIT Maryland 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 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 90 Table of Contents 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. 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. On April 28, 2021, the Sellers amended the Answer to include (1) counterclaims against the Purchaser for breach of contract due to the Purchaser’s breach of confidentiality and non-disclosure obligations contained in the Purchase and Sale Agreement, and (2) third-party claims against Purchaser’s affiliate Kushner Realty Acquisition LLC for breach of its confidentiality and non-disclosure obligations contained in the non-disclosure agreement entered into by the parties in connection with the negotiation of the transactions contemplated by the Purchase and Sale Agreement, based on the conduct of the Purchaser and its affiliates after the Sellers terminated the Purchase and Sale Agreement. In connection with these counterclaims and third-party claims, 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; (f) an order enjoining the Purchaser and its affiliates from engaging in further breaches of the Purchase and Sale Agreement and non-disclosure agreement, and compelling the Purchaser and its affiliates to return the Sellers’ confidential information and materials and to use best efforts to ensure the return of the Sellers’ confidential information and materials from third parties to whom the Purchaser and/or its affiliates provided such materials; and (g) such other relief as the Court deems just and equitable. In the Answer filed by the Purchaser on September 15, 2020 and the Answer and Affirmative Defenses filed by the Purchaser and Kushner Realty Acquisition LLC on June 7, 2021, the Purchaser and Kushner Realty Acquisition LLC have generally denied the claims, counterclaims and allegations contained in the Sellers’ original and amended Answer, and asserted affirmative defenses to the Sellers’ claims and counterclaims. The Sellers believe that the allegations set forth in the Complaint and Answer filed by the Purchaser and in the Answer and Affirmative Defenses filed by the Purchaser and Kushner Realty Acquisition LLC 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 year ended October 31, 2021, the $15 million deposit has not been included in income in the accompanying consolidated statement of income. During the years ended October 31, 2021, 2020 and 2019, the Special Committee of the Board (“Special Committee”) incurred on behalf of the Company third party transaction costs for advisory, legal and other expenses primarily related to the Purchase and Sale Agreement and the Plan of Liquidation discussed in Note 15 in the amount of approximately $0, $4,606,000 and $1,416,000, respectively. On April 30, 2020, the Sellers delivered written notice to the Purchaser of the Sellers’ termination of the Purchase and Sale Agreement and on May 7, 2020 the Board approved the elimination of the Special Committee. No further transaction costs were incurred thereafter. Legal costs attributed to the legal proceeding between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC have been incurred in the amount of approximately $2,282,000 and $957,000 for the years ended October 31, 2021 and 2020, respectively. |
Termination of Plan of Liquidat
Termination of Plan of Liquidation | 12 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Termination of Plan of Liquidation | Note 15 - Termination of Plan of Liquidation: On January 14, 2020, the Trust’s Board 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, 91 Table of Contents 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 stockholders present in person or represented by proxy at a duly called meeting of the Trust’s stockholders 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 stockholder 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. |
COVID-19 Pandemic
COVID-19 Pandemic | 12 Months Ended |
Oct. 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 and throughout most of 2020, many states in the U.S., including New Jersey, New York and Maryland, where our properties are located, implemented stay-at-home and shut down orders for all "non-essential" business and activity in an aggressive effort to mitigate the spread of COVID-19. These orders have continued to evolve resulting in the lifting of these restrictions over the past year. Vaccinations for the COVID-19 virus have been widely distributed among the general U.S. population which has resulted in loosened restrictions previously mandated on our tenants identified as nonessential. However, the potential emergence of vaccine-resistant variants of COVID-19 could trigger restrictions to be put back in place. Such restrictions may include mandatory business shut-downs, reduced business operations and social distancing requirements. As the impact of the pandemic evolves, 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. Despite the COVID-19 pandemic and preventive measures taken to mitigate the spread, our residential properties have continued 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 adversely affected by the previously mandated shut downs and the continued lingering impact to consumer sentiment and preferences for safety amid the reemergence of other COVID-19 variants. During the first quarter of Fiscal 2021, Pet Valu, Inc., a pet store tenant, vacated several stores located in shopping centers owned by FREIT Maryland 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 Maryland of approximately $140,000). The properties owned by Grande Rotunda and Damascus Centre were sold on December 30, 2021 and January 10, 2022, respectively. See Note 17 to FREIT Maryland’s consolidated financial statements for additional details. 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 fiscal years ended October 31, 2021 and 2020, rental revenue deemed uncollectible of approximately $1.3 million and $1.4 million (with a consolidated impact to FREIT Maryland of approximately $0.8 million and $0.9 million), respectively, 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. During the period beginning March 2020 through October 31, 2021, FREIT Maryland has applied, net of amounts subsequently paid back by tenants, an aggregate of approximately $397,000 of security deposits from its commercial tenants to outstanding receivables due. On a case by case basis, FREIT has offered some commercial tenants deferrals of rent over a specified time period totaling approximately $132,000 and $206,000 (with a consolidated impact to FREIT Maryland of approximately $81,000 and $192,000) and rent abatements totaling approximately $239,000 and $238,000 (with a consolidated impact to FREIT Maryland of approximately $158,000 and $156,000) for the fiscal years ended October 31, 2021 and 2020, respectively. FREIT Maryland currently remains in active discussions and negotiations with these impacted retail tenants. Cobb Theatre, an anchor tenant movie theatre at the Rotunda retail property filed for bankruptcy and rejected its lease at the Rotunda property as of June 30, 2020. As a result of the rejection of this lease, uncollected rents in the amount of approximately $0.3 million and a straight-line rent receivable of approximately $0.4 million were reversed against revenue, and unamortized leasing commissions in the amount of approximately $0.2 million were written off and fully expensed in Fiscal 2020 resulting in a net impact to net income of approximately $0.9 million (with a consolidated impact to FREIT Maryland of approximately $0.5 million) for the year ended October 31, 2020. Tenant improvements related to the Cobb Theatre with a net book value of approximately $7.3 million (with a consolidated impact to FREIT Maryland of approximately $4.4 million) as of October 31, 2020 were deemed to be impaired, written off and charged to operations in the consolidated statement of income for the fiscal year ended October 31, 2020. On December 30, 2021, the property owned by Grande Rotunda was sold. (See Note 17 for additional details.) 92 Table of Contents 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 October 31, 2021 and 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 October 31, 2021 and 2020. (See Note 5 to FREIT Maryland’s consolidated financial statements for additional details). For the fiscal year ended October 31, 2021, we have experienced a positive cash flow from operations with cash provided by operations of approximately $12.2 million. This could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of October 31, 2021 of approximately $35.9 million coupled with a $13 million available line of credit (available through October 31, 2023, see Note 5) and the additional $7.5 million in funds available to draw on the Boulders loan (See Note 17 for additional details) will provide us with sufficient liquidity for at least the next twelve months from the filing of this Form 10-K. 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 | 12 Months Ended |
Oct. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 - Subsequent events: Boulders Refinancing On December 30, 2021, FREIT Maryland refinanced its $14.4 million loan (which would have matured on February 1, 2022) on its Boulders property located in Rockaway, New Jersey with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn in the amount of $7,500,000 for corporate needs inclusive of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property resulting from the legal proceedings between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC (See Note 14). This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT Maryland to extend for one year from the maturity date, subject to certain provisions of the loan agreement. This refinancing will provide annual debt service savings of approximately $1,173,000 as result of the reduction in the principal amount and a reduction in the annual interest rate from a fixed rate of 5.37% to a fixed rate of 2.85% and interest-only payments being required under this new loan. Purchase and Sale Agreement On November 22, 2021, certain affiliates (the “Sellers”) of FREIT Maryland entered into a Purchase and Sale Agreement (the “Maryland Purchase and Sale Agreement”) with MCB Acquisition Company, LLC (the “Purchaser”), a third party, pursuant to which the Sellers agreed to sell three properties to the Purchaser. The properties consisted of retail and office space and a residential apartment community owned by Grande Rotunda, LLC (the “Rotunda Property”), a shopping center owned by Damascus Centre, LLC (the “Damascus Property”), and a shopping center owned by WestFREIT Corp. (the “Westridge Square Property”). FREIT Maryland owns 100% of its subsidiary, WestFREIT Corp. (“WestFREIT”), a 60% interest in Grande Rotunda, LLC (“Grande Rotunda”), the joint venture that owned the Rotunda Property, and a 70% interest in Damascus Centre, LLC (“Damascus Centre”), the joint venture that owned the Damascus Property. The original purchase price for the Rotunda Property, the Damascus Property and the Westridge Square Property (collectively the “Properties”) under the Maryland Purchase and Sale Agreement was reduced by $2,723,000 from $267,000,000 to $248,750,269, after giving effect to the $15,526,731 escrow deposit described below. This reduction in the sales price was to account for improvements and repairs to the Properties and miscellaneous items identified by the Purchaser in the course of its due diligence inspection. Additionally, the Purchaser was obligated under the Purchase and Sale Agreement to deposit a total of $15,526,731 in escrow with respect to certain leases at the Properties where the rent commencement date has not occurred or economic obligations of the Sellers under certain leases remain unpaid. Although there can be no assurance, a portion of the $15,526,731 escrow deposit (the “Purchaser Escrow Payment”) may be paid to the Sellers depending upon the outcome of construction and leasing activities at the Properties. On December 30, 2021, the sale of the Rotunda Property was consummated by Grande Rotunda and the Purchaser for a purchase price of $191,080,598. Grande Rotunda received net proceeds from the sale of approximately $68.7 million, after payment of related mortgage debt in the amount of $116.5 million and certain transactional expenses and transfer taxes, and not including loans (including interest) from each of the partners in Grande Rotunda (FREIT Maryland and Rotunda 100, LLC), totaling approximately $30.9 million which will be repaid with proceeds from the sale. In addition, the Purchaser deposited a total of $14,026,401 of the Purchaser Escrow Payment in escrow with respect to certain leases at the Rotunda Property where the rent commencement date has not occurred or economic obligations of Grande Rotunda under certain leases remain unpaid. The sale of the Rotunda Property resulted in a net gain of approximately 93 Table of Contents $52 million which includes approximately $8.2 million of proceeds anticipated to be released from the $14,026,401 held in escrow. On January 7, 2022, the sale of the Westridge Square Property was consummated by WestFREIT and the Purchaser for a purchase price of $20,984,604. WestFREIT paid net cash outlays from the sale of approximately $0.7 million, after payment of related mortgage debt in the amount of approximately $21.1 million and certain transactional expenses and transfer taxes. In addition, the Purchaser deposited a total of $1,015,396 of the Purchaser Escrow Payment in escrow with respect to certain leases at the Westridge Square Property where the rent commencement date has not occurred or economic obligations of WestFREIT under certain leases remain unpaid. The sale of the Westridge Square Property resulted in a net gain of approximately $8.7 million which includes approximately $0.7 million of proceeds anticipated to be released from the $1,015,396 held in escrow. On January 10, 2022, the sale of the Damascus Property was consummated by Damascus Centre and the Purchaser for a purchase price of $36,685,067. Damascus Centre received net proceeds from the sale of approximately $16.9 million, after payment of related mortgage debt in the amount of approximately $18.2 million and certain transactional expenses and transfer taxes. In addition, the Purchaser deposited a total of $484,934 of the Purchaser Escrow Payment in escrow with respect to certain leases at the Damascus Property where the rent commencement date has not occurred or economic obligations of Damascus Centre under certain leases remain unpaid. The sale of the Damascus Property resulted in a net gain of approximately $10.1 million which includes approximately $0.4 million of proceeds anticipated to be released from the $484,934 held in escrow. |
Selected quarterly financial da
Selected quarterly financial data (unaudited) | 12 Months Ended |
Oct. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected quarterly financial data (unaudited) | Note 18 -  Selected quarterly financial data (unaudited): The following summary represents the results of operations for each quarter for the years ended October 31, 2021 and 2020 (in thousands, except per share amounts): 2021: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 12,754 $ 12,804 $ 12,542 $ 12,191 (d) $ 50,291 Expenses, net 11,975 12,867 12,226 12,176 49,244 Net income (loss) 779 (63 ) 316 15 1,047 Net (income) loss attributable to noncontrolling interests in subsidiaries (221 ) 72 (107 ) 136 (120 ) Net income attributable to common equity   $ 558 $ 9 $ 209 $ 151 $ 927 Earnings per share - basic and diluted $ 0.08 $ - $ 0.03 $ 0.02 $ 0.13 Dividends declared per share $ 0.05 $ 0.05 $ 0.05 $ 0.10 $ 0.25 2020: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 15,593 $ 13,688 $ 12,149 (b) $ 11,297 $ 52,727 Expenses, net 17,614 (13,448 )(a) 12,469 (b) 18,772 (c) 35,407 Net (loss) income (2,021 ) 27,136 (320 ) (7,475 ) 17,320 Net (income) loss attributable to noncontrolling interests in subsidiaries (241 ) 84 139 3,251 3,233 Net (loss) income attributable to common equity   $ (2,262 ) $ 27,220 $ (181 ) $ (4,224 ) $ 20,553 (Loss) Earnings per share - basic and diluted $ (0.32 ) $ 3.88 (a) $ (0.02 )(b) $ (0.60 )(c) $ 2.94 Dividends declared per share $ - $ - $ - $ - $ - (a) Includes $ 27.7 million gain on deconsolidation of subsidiary related to the Pierre Towers property which was deconsolidated from FREIT's operating results due to the conversion to a tenancy-in-common form of ownership on February 28, 2020. ($ 3.96 per share) (b) Includes impact of the rejection of the lease for Cobb Theatre at the Rotunda retail property as of June 30, 2020 resulting in the reversal against revenue of uncollected rents in the amount of approximately $ 0.3 million and a straight-line rent receivable of approximately $ 0.4 million and the write-off of unamortized leasing commissions in the amount of approximately $ 0.2 million resulting in a net impact of approximately $ 0.9 million (with a consolidated impact to FREIT of approximately $ 0.5 million). ($ 0.07 per share) (c) Includes write-off of Cobb Theatre's tenant improvements of approximately $ 7.3 million (with a consolidated impact to FREIT of approximately $ 4.4 million) at the Rotunda retail property due to COVID-19. ($ 0.62 per share) (d) Includes settle-ups of Common Area Maintenance with commercial tenants of approximately $ 0.7 million for the fiscal quarter ended October 31, 2021, of which approximately $ 0.4 million related to Fiscal 2020 and approximately $ 0.3 million related to prior quarters in Fiscal 2021. |
SCHEDULE III - REAL ESTATE AND
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Oct. 31, 2021 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. AND SUBSIDIARIES SCHEDULE III – REAL ESTATE AND ACCUMULATED DEPRECIATION OCTOBER 31, 2021 (In Thousands of Dollars) Column A Column B Column C Column D Column E Column F Column G Column H Column I Initial Cost Costs Capitalized Gross Amount at Which to Company Subsequent to Acquisition Carried at Close of Period Life on Buildings Buildings Which Encum- and Improve- Carrying and Accumulated Date of Date Depreciation Description brances Land Improvements Land ments Costs Land Improvements Total (1) Depreciation Construction Acquired is Computed Residential Properties: Steuben Arms, River Edge, NJ $ 9,545 $ 364 $ 1,773 $ - $ 1,531 $ 364 $ 3,304 $ 3,668 $ 2,989 1966 1975 7-40 years Berdan Court, Wayne, NJ 28,815 250 2,206 - 4,991 250 7,197 7,447 5,957 1964 1965 7-40 years Westwood Hills, Westwood, NJ 25,000 3,849 11,546 - 2,919 3,849 14,465 18,314 10,107 1965-70 1994 7-39 years Boulders - Rockaway, NJ 14,453 1,632 - 3,386 16,091 5,018 16,091 21,109 6,628 2005-2006 1963/1964 7-40 years Regency Club - Middletown, NY 14,921 2,833 17,792 - 973 2,833 18,765 21,598 3,663 2003 2014 7-40 years Icon - Baltimore, MD (2) 64,086 5,871 - - 87,884 5,871 87,884 93,755 11,563 2016 2005 7-40 years Station Place - Red Bank, NJ 11,971 8,793 10,757 - 19 8,793 10,776 19,569 1,055 2015 2017 7-40 years Commercial Properties: Damascus Shopping Center, Damascus, MD (2) 18,274 2,950 6,987 6,296 17,232 9,246 24,219 33,465 8,765 1960's 2003 5-39.5 years Franklin Crossing, Franklin Lakes, NJ - 29 - 3,382 7,438 3,411 7,438 10,849 4,545 1963/75/97 1966 5-39.5 years Glen Rock, NJ - 12 36 - 164 12 200 212 164 1940 1962 5-25 years Westridge Square S/C, Frederick, MD (2) 21,188 9,135 19,159 (1) 4,796 9,134 23,955 33,089 21,463 1986 1992 5-31.5 years Westwood Plaza, Westwood, NJ 18,001 6,889 6,416 - 2,389 6,889 8,805 15,694 8,643 1981 1988 5-31.5 years Preakness S/C, Wayne, NJ 22,588 9,280 24,217 - 2,799 9,280 27,016 36,296 13,174 1955/89/00 2002 5-39.5 years The Rotunda, Baltimore, MD (2) 52,434 10,392 14,634 232 46,078 10,624 60,712 71,336 16,905 1920/2016 2005 5-40 years Land Leased: Rockaway, NJ - 114 - - - 114 - 114 - 1963/1964 Vacant Land: ` Franklin Lakes, NJ - 224 - (156) - 68 - 68 - 1966/93 Wayne, NJ - 286 - - - 286 - 286 - 2002 Rockaway, NJ - 51 - - - 51 - 51 - 1963/1964 $ 310,276 $ 62,954 $ 115,523 $ 13,139 $ 195,304 $ - $ 76,093 $ 310,827 $ 386,920 $ 115,621 (1) Total cost for each property is the same for federal income tax purposes, with the exception of the Regency Club, Station Place and the Rotunda properties (Icon and The Rotunda) whose cost for federal income tax purposes is approximately $13.5 million, $4.2 million and $163.2 million, respectively. (2) The properties owned by Grande Rotunda, WestFREIT and Damascus Centre were sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively. See Note 17 to FREIT Maryland’s consolidated financial statements for additional details. 95 Table of Contents FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. AND SUBSIDIARIES SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (In Thousands of Dollars) Reconciliation of Real Estate and Accumulated Depreciation: 2021 2020 2019 Real estate: Balance, Beginning of year $ 385,853 $ 448,866 $ 456,658 Additions - Buildings and improvements 1,883 2,055 3,386 Disposals - Buildings and improvements (816 ) (585 ) (240 ) Tenant improvement write-off due to COVID-19 - (8,910 ) - Sale of property - - (10,938 ) Deconsolidation of subsidiary - (55,573 ) - Balance, end of year $ 386,920 $ 385,853 $ 448,866 Accumulated depreciation: Balance, beginning of year $ 107,137 $ 118,363 $ 111,967 Additions - Charged to operating expenses 9,300 10,341 11,339 Tenant improvement write-off due to COVID-19 - Charged to operating expenses - (1,637 ) - Disposals - Buildings and improvements (816 ) (583 ) (217 ) Sale of property - - (4,726 ) Deconsolidation of subsidiary - (19,347 ) - Balance, end of year $ 115,621 $ 107,137 $ 118,363 |
Organization and significant _2
Organization and significant accounting policies (Policies) | 12 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization: | Organization: First Real Estate Investment Trust of New Jersey (“FREIT”) was organized on November 1, 1961 as a New Jersey Business Trust. On July 1, 2021, FREIT completed the change of its form of organization from a New Jersey real estate investment trust to a Maryland corporation (the “Reincorporation”) which was approved by its stockholders at the annual meeting of stockholders held on May 6, 2021. The Reincorporation changes the law applicable to FREIT’s affairs from New Jersey law to Maryland law and was accomplished by the merger of FREIT with and into its wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. (“FREIT Maryland”, “Trust”, “us”, “we”, “our” or the “Company”), a Maryland corporation. As a result of the Reincorporation, the separate existence of FREIT has ceased and FREIT Maryland has succeeded to all the business, properties, assets and liabilities of FREIT. Holders of shares of beneficial interest in FREIT have received one newly issued share of common stock of FREIT Maryland for each share of FREIT that they own, without any action of stockholders required and all treasury stock held by FREIT was retired. FREIT Maryland is engaged in owning residential and commercial income producing properties located primarily in New Jersey, Maryland and New York. FREIT Maryland has elected to be taxed as a Real Estate Investment Trust under the provisions of Sections 856-860 of the Internal Revenue Code, as amended. Accordingly, FREIT Maryland does not pay federal income tax on income whenever income distributed to stockholders is equal to at least 90% of real estate investment trust taxable income. Further, FREIT Maryland pays no federal income tax on capital gains distributed to stockholders. FREIT Maryland is subject to federal income tax on undistributed taxable income and capital gains. FREIT Maryland may make an annual election under Section 858 of the Internal Revenue Code to apply part of the regular dividends paid in each respective subsequent year as a distribution for the immediately preceding year. |
Recently issued accounting standards: | Recently issued accounting standards: In March 2020 and January 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04 “ Reference Rate Reform (ASC 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (ASC 848): Scope |
Principles of consolidation: | Principles of consolidation: The consolidated financial statements include the accounts of FREIT Maryland and the following subsidiaries in which FREIT Maryland has a controlling financial interest, including two LLCs in which FREIT Maryland is the managing member with a 40% ownership interest: Subsidiary Owning Entity % Ownership Year Acquired/ Organized Westwood Hills, LLC FREIT Maryland 40% 1994 Wayne PSC, LLC FREIT Maryland 40% 2002 Damascus Centre, LLC FREIT Maryland 70% 2003 Grande Rotunda, LLC FREIT Maryland 60% 2005 WestFREIT, Corp FREIT Maryland 100% 2007 FREIT Regency, LLC FREIT Maryland 100% 2014 Station Place on Monmouth, LLC FREIT Maryland 100% 2017 Berdan Court, LLC FREIT Maryland 100% 2019 The consolidated financial statements include 100% of each subsidiary’s assets, liabilities, operations and cash flows, with the interests not owned by FREIT Maryland reflected as "noncontrolling interests in subsidiaries”. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Investment in tenancy-in-common: | Investment in tenancy-in-common: On February 28, 2020, FREIT Maryland 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 Maryland owned a 65% partnership interest in S&A, which owned 100% of the Pierre Towers property located in Hackensack, New Jersey through its 100% interest in Pierre Towers, LLC. Accordingly, FREIT Maryland consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, 76 Table of Contents liabilities, operations and cash flows with the interest not owned by FREIT Maryland reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT Maryland 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 (“ASC”) 810, “Consolidation” |
Reclassification: | Reclassification: Certain prior year cash flow line items have been reclassified to conform to the current year presentation. |
Use of estimates: | Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Cash and cash equivalents: | Cash and cash equivalents: Financial instruments that potentially subject FREIT Maryland to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT Maryland considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT Maryland maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits. |
Real estate development costs: | Real estate development costs: It is FREIT Maryland’s policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT Maryland ceases capitalization of these costs when the project or portion thereof becomes operational, or when construction has been postponed. In the event of a postponement, capitalization of these costs will recommence once construction on the project resumes. |
Depreciation: | Depreciation: Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. |
Impairment of long-lived assets: | Impairment of long-lived assets: Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. There were no impairments of long-lived assets for the fiscal year ended October 31, 2021. In Fiscal 2020, Cobb Theatre, an anchor tenant movie theatre at the Rotunda retail property filed for bankruptcy and rejected its lease at the Rotunda property as of June 30, 2020. In the fourth quarter of Fiscal 2020, management determined that it would be unable to re-let the space on similar terms and as such tenant improvements in the amount of approximately $7.3 million (with a consolidated impact to FREIT Maryland of approximately $4.4 million) related to Cobb Theatre were deemed impaired and written off. (See Note 16) For the fiscal year ended October 31, 2019 there were no impairments of long-lived assets. |
Deferred charges: | Deferred charges: Deferred charges consist primarily of leasing commissions which are amortized on the straight-line method over the terms of the applicable leases. |
Debt issuance costs: | Debt issuance costs: Debt issuance costs are amortized on the straight-line method by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $1,109,000, $1,089,000 and $1,139,000 in Fiscal 2021, 2020 and 2019, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. |
Revenue recognition: | Revenue recognition: Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT Maryland and commercial tenants generally provide for additional rentals and reimbursements for their proportionate share of real estate taxes, insurance, common area maintenance charges and may include percentage of tenants' sales in excess of specified volumes. Percentage rents are generally included in income when reported to FREIT Maryland when earned, or ratably over the appropriate period. |
Interest rate cap and swap contracts: | Interest rate cap and swap contracts: FREIT Maryland utilizes derivative financial instruments to reduce interest rate risk. FREIT Maryland does not hold or issue derivative financial instruments for trading purposes. FREIT Maryland recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as cash flow hedges, are reported in other comprehensive income. (See Note 6) |
Advertising: | Advertising: FREIT Maryland expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $421,000, $297,000 and $281,000 in Fiscal 2021, 2020 and 2019, respectively. |
Stock-based compensation: | Stock-based compensation: FREIT Maryland has a stock-based compensation plan that was approved by FREIT Maryland’s Board of Directors (the “Board”), and ratified by FREIT Maryland’s stockholders. Stock based awards are accounted for based on their grant-date fair value (see Note 10). |
Organization and significant _3
Organization and significant accounting policies (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiaries in which FREIT has a controlling financial interest | The consolidated financial statements include the accounts of FREIT Maryland and the following subsidiaries in which FREIT Maryland has a controlling financial interest, including two LLCs in which FREIT Maryland is the managing member with a 40% ownership interest: Subsidiary Owning Entity % Ownership Year Acquired/ Organized Westwood Hills, LLC FREIT Maryland 40% 1994 Wayne PSC, LLC FREIT Maryland 40% 2002 Damascus Centre, LLC FREIT Maryland 70% 2003 Grande Rotunda, LLC FREIT Maryland 60% 2005 WestFREIT, Corp FREIT Maryland 100% 2007 FREIT Regency, LLC FREIT Maryland 100% 2014 Station Place on Monmouth, LLC FREIT Maryland 100% 2017 Berdan Court, LLC FREIT Maryland 100% 2019 |
Investment in tenancy-in-comm_2
Investment in tenancy-in-common (Tables) | 12 Months Ended |
Oct. 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 October 31, 2021 and 2020 accounted for by the equity method: October 31, October 31, 2021 2020 (In Thousands of Dollars) Real estate, net $ 78,023 $ 80,041 Cash and cash equivalents 1,338 754 Tenants' security accounts 484 523 Receivables and other assets 510 468 Total assets $ 80,355 $ 81,786 Mortgages payable, net of unamortized debt issuance costs $ 49,691 $ 49,956 Accounts payable and accrued expenses 261 314 Tenants' security deposits 484 535 Deferred revenue 99 56 Equity 29,820 30,925 Total liabilities & equity $ 80,355 $ 81,786 FREIT Maryland's investment in TIC (65% interest) $ 19,383 $ 20,101 |
Schedule of Income Statement of Pierre Property | The following table summarizes the statements of operations of the Pierre Towers property for the fiscal year ended October 31, 2021 and for the period from February 28, 2020 through October 31, 2020, accounted for by the equity method: Year Ended October 31, 2021 For the period from February 28, 2020 through October 31, 2020 (In Thousands of Dollars) Revenues $ 7,627 $ 4,981 Operating expenses 4,311 2,786 Depreciation 2,166 1,435 Operating income 1,150 760 Interest expense including amortization of deferred financing costs 1,604 1,070 Net loss $ (454 ) $ (310 ) FREIT Maryland's loss on investment in TIC (65% interest) $ (295 ) $ (202 ) |
Real estate (Tables)
Real estate (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of real estate and equipment | Real estate consists of the following: Range of Estimated October 31, Useful Lives 2021 2020 (In Thousands of Dollars) Land $ 75,688 $ 75,688 Unimproved land 405 405 Apartment buildings 7-40 years 156,408 155,923 Commercial buildings/shopping centers 5-40 years 151,598 151,293 Equipment/Furniture 5-15 years 2,156 1,978 Total real estate, gross 386,255 385,287 Less: accumulated depreciation 115,621 107,137 Total real estate, net $ 270,634 $ 278,150 |
Mortgages payable and credit _2
Mortgages payable and credit line (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of debt | October 31, 2021 October 31, 2020 Principal (Including Deferred Interest) Unamortized Debt Issuance Costs Principal (Including Deferred Interest) Unamortized Debt Issuance Costs (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 14,453 $ 50 $ 15,050 $ 23 Westwood, NJ (B) 18,001 39 18,695 71 Wayne, NJ (C) 28,815 379 28,815 427 River Edge, NJ (D) 9,545 36 9,789 53 Red Bank, NJ (E) 11,971 93 12,181 108 Wayne, NJ (F) 22,588 172 23,336 205 Damascus, MD (G) 18,274 101 18,824 166 Middletown, NY (H) 14,921 104 15,255 137 Total fixed rate 138,568 974 141,945 1,190 Westwood, NJ (I) 25,000 220 25,000 460 Frederick, MD (J) 21,188 30 21,775 - Baltimore, MD (K) 116,520 105 118,520 160 Line of credit - Provident Bank (L) - 71 - - Total variable rate 162,708 426 165,295 620 Total $ 301,276 $ 1,400 $ 307,240 $ 1,810 (A) Payable in monthly installments of $ (B) On January 14, 2013, FREIT Maryland refinanced its Westwood Plaza mortgage loan in the amount of $ As a result of the negative impact of the COVID-19 pandemic at this property, FREIT Maryland was granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended June 30, 2020, resulting in total deferred payments of approximately $390,000, of which approximately $222,000 related to deferred interest. These deferred payments are included in the mortgages payable on the consolidated balance sheet as of October 31, 2021 and 2020 and are due at the maturity of this loan. (C) On August 26, 2019, Berdan Court, LLC (“Berdan Court”), refinanced its $ The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,490,000 as of October 31, 2021. (D) On November 19, 2013, FREIT Maryland refinanced mortgage loans scheduled to mature on December 1, 2013 with a new (E) On December 7, 2017, Station Place on Monmouth, LLC (“Station Place”) closed on a mortgage loan in the amount of 80 Table of Contents a net book value of approximately $18,514,000 as of October 31, 2021. (F) On September 29, 2016, Wayne PSC, LLC (“Wayne PSC”) refinanced its $ As a result of the negative impact of the COVID-19 pandemic at this property, we were granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended November 1, 2020, resulting in total deferred payments of approximately $319,000, of which approximately $138,000 related to deferred interest. These deferred payments are included in the mortgages payable on the consolidated balance sheets as of October 31, 2021 and 2020 and are due at the maturity of this loan. As a result of COVID-19 pandemic rent losses and the planning for a potential redevelopment of its shopping center, as of October 31, 2021, Wayne PSC was not, and currently is not, in compliance with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank in the amount of approximately $22.6 million as of October 31, 2021. Although the Company continues to make its required debt service payments in accordance with the loan agreement, it is unable to comply with this covenant. As such, the bank could exercise its remedies under the loan agreement including, among other things, requiring a partial or full repayment of the loan. The Company is currently working with the lender to remediate this covenant default. As of the date of the filing of this Form 10K report, the bank has not declared this loan to be in default. Until such time as a definitive agreement is entered into, there can be no assurance the loan covenant will be amended and the bank will not declare this loan to be in default. (G) On December 26, 2012, Damascus Centre, LLC (“Damascus Centre”) refinanced its construction loan with long-term financing The loan has a maturity date of January 3, 2023 and bears a floating interest rate equal to 210 points over the one-month BBA LIBOR. In order to minimize interest rate volatility during the term of this loan, Damascus Centre, LLC entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate on each tranche of this loan, resulting in a fixed rate of 3.81% over the term of the first tranche of this loan and a fixed rate of 3.53% over the term of the second tranche of this loan. (See Note 6 for additional information relating to the interest rate swaps.) The shopping center securing the loan has a net book value of approximately $24,700,000 as of October 31, 2021. On January 10, 2022, the property owned by Damascus Centre was sold and a portion of the proceeds was used to pay off the approximately $18.2 million then outstanding balance of this loan. (See Note 17 for additional details.) (H) On December 29, 2014, FREIT Regency, LLC (“Regency”) closed on a $ (I) On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”) refinanced its $ 81 Table of Contents $5.6 million that were distributed to the partners in Westwood Hills with FREIT Maryland receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. As of October 31, 2021, $25,000,000 of this loan was drawn and outstanding and the interest rate was based on the floor of 4.15%. The mortgage is secured by an apartment building in Westwood, New Jersey having a net book value of approximately $8,207,000 as of October 31, 2021. (J) On April 28, 2017, WestFREIT, Corp. refinanced its $ On April 3, 2019, WestFREIT, Corp. exercised its option to extend this loan, 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 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 previous agreement. 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 of WestFREIT, Corp. 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. As of October 31, 2021, approximately $21.2 million of this loan was outstanding and the interest rate was approximately 2.68%. The mortgage is secured by a retail building in Frederick, Maryland having a net book value of approximately $11,626,000 as of October 31, 2021. As a result of the negative impact of the COVID-19 pandemic at this property, FREIT Maryland was granted debt payment relief from the lender in the form of deferral of principal and interest payments for a three-month period which ended June 30, 2020, resulting in total deferred payments of approximately $303,800, of which approximately $162,100 related to deferred interest was repaid as of October 31, 2020. The remaining deferred balance due of approximately $141,700 is included in the mortgages payable on the consolidated balance sheets as of October 31, 2021 and 2020 and is due at the maturity of this loan. On January 7, 2022, the property owned by WestFREIT was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Note 17 for additional details.) (K) On February 7, 2018, Grande Rotunda, LLC (“Grande Rotunda”) refinanced its $ 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. Principal payments in the amount of $500,000 were required upon exercise of the first loan extension option and per calendar quarter thereafter. 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. As of October 31, 2021, the total amount outstanding on this loan was approximately $116.5 million and the interest rate was approximately 2.93%. The loan is secured by the Rotunda property, which has a net book value of approximately $136,623,000 as of October 31, 2021. On December 30, 2021, the property owned by Grande Rotunda was sold and a portion of the proceeds was used to pay off the $116.5 million then outstanding balance of this loan. (See Note 17 for additional details.) 82 Table of Contents (L) FREIT Maryland’s revolving line of credit provided by Provident Bank was renewed for a three-year term ending on |
Schedule of estimated fair value and carrying value of long-term debt | The following table shows the estimated fair value and carrying value of FREIT Maryland’s long-term debt, net at October 31, 2021 and 2020: October 31, October 31, ($ in Millions) 2021 2020 Fair Value $301.6 $311.4 Carrying Value, Net $299.9 $305.4 |
Schedule of principal amounts of long-term debt | Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2021 are as follows: Year Ending October 31, Amount 2022 $ 201,680 (a)(b)(c)(d) 2023 $ 35,914 (e) 2024 $ 9,663 2025 $ 14,734 2026 $ 817 (a) Includes a loan on Rotunda property located in Baltimore, Maryland in the amount of approximately $116.5 million which would have matured on February 6, 2022. (See Note 5(K)) On December 30, 2021, the property owned by Grande Rotunda was sold and a portion of the proceeds was used to pay off the $116.5 million then outstanding balance of this loan. (See Note 17) (b) Includes a loan on Westridge Square Shopping Center located in Frederick, Maryland in the amount of approximately $ 21.1 million which has a maturity date of January 31, 2021. (See Note 5(J)) On January 7, 2022, the property owned by WestFREIT was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Note 17 for additional details.) (c) Includes a loan on Boulders, which is a residential property located in Rockaway, New Jersey in the amount of approximately $14.5 million which had a maturity date of February 1, 2022. The loan was refinanced on December 30, 2021 in the amount of $7.5 million with additional funding available of up to another $7.5 million and has a maturity date of January 1, 2024. (See Note 17) (d) Includes a loan on the Preakness Shopping Center located in Wayne, New Jersey in the amount of approximately $ 22.6 million. As a result of COVID-19 pandemic rent losses and the planning for a potential redevelopment of its shopping center, as of October 31, 2021, Wayne PSC was not, and currently is not, in compliance with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank in the amount of approximately $22.6 million as of October 31, 2021. Although the Company continues to make its required debt service payments in accordance with the loan agreement, it is unable to comply with this covenant. As such, the bank could exercise its remedies under the loan agreement including, among other things, requiring a partial or full repayment of the loan. The Company is currently working with the lender to remediate this covenant default. As of the date of the filing of this Form 10K report, the bank has not declared this loan to be in default. Until such time as a definitive agreement is entered into, there can be no assurance the loan covenant will be amended and the bank will not declare this loan to be in default. (See Note 5(F)) 83 Table of Contents (e) Includes a loan on the Damascus property located in Damascus, Maryland in the amount of approximately $ 18.2 million. On January 10, 2022, the property owned by Damascus was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Notes 5(G) and 17) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum rental income to be received from non-cancelable operating leases | Minimum fixed lease consideration (in thousands of dollars) under non-cancellable tenant operating leases for each of the next five years and thereafter, excluding variable lease consideration, rents from tenants for which collectability is deemed to be constrained and rents from the Rotunda property, WestFREIT property and Damascus property sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively, subsequent to October 31, 2021, is as follows: Year Ending October 31, Amount 2022 $ 5,719 2023 5,083 2024 3,970 2025 3,298 2026 2,550 Thereafter 3,313 Total $ 23,933 |
Equity incentive plan (Tables)
Equity incentive plan (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity for Fiscal 2021, 2020 and 2019: Year Ended October 31, Year Ended October 31, Year Ended October 31, 2021 2020 2019 No. of Options Exercise No. of Options Exercise No. of Options Exercise Outstanding Price Outstanding Price Outstanding Price Options outstanding at beginning of year 310,740 $ 18.35 310,740 $ 18.35 305,780 $ 18.40 Options granted during year - - - - 5,000 15.00 Options forfeited/cancelled during year - - - - (40 ) 18.45 Options outstanding at end of year 310,740 $ 18.35 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 309,450 308,310 308,310 Options exercisable at end of year 292,540 276,340 260,140 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Oct. 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 consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2021. Asset information is not reported since FREIT Maryland does not use this measure to assess performance. 89 Table of Contents Years Ended October 31, 2021 2020 2019 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 23,547 $ 24,486 $ 26,692 Residential 26,974 28,638 33,175 Total real estate rental revenue 50,521 53,124 59,867 Real estate operating expenses: Commercial 11,223 11,334 11,694 Residential 11,071 11,588 14,368 Total real estate operating expenses 22,294 22,922 26,062 Net operating income: Commercial 12,324 13,152 14,998 Residential 15,903 17,050 18,807 Total net operating income $ 28,227 $ 30,202 $ 33,805 Recurring capital improvements - residential $ (625 ) $ (347 ) $ (685 ) Reconciliation to consolidated net income attributable to common equity:   Segment NOI $ 28,227 $ 30,202 $ 33,805 Deferred rents - straight lining (230 ) (397 ) 410 Investment income 116 204 360 Unrealized loss on interest rate cap contract - - (160 ) Third party transaction costs - (4,606 ) (1,416 ) Gain on sale of property - - 836 Gain on deconsolidation of subsidiary - 27,680 - Loss on investment in tenancy-in-common (295 ) (202 ) - General and administrative expenses (5,195 ) (3,821 ) (2,633 ) Depreciation (9,300 ) (10,341 ) (11,339 ) Tenant improvement write-off due to COVID-19 - (7,277 ) - Financing costs (12,276 ) (14,122 ) (18,070 ) Net income 1,047 17,320 1,793 Net (income) loss attributable to noncontrolling interests in subsidiaries   (120 ) 3,233 (6 ) Net income attributable to common equity $ 927 $ 20,553 $ 1,787 |
Selected quarterly financial _2
Selected quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operation | The following summary represents the results of operations for each quarter for the years ended October 31, 2021 and 2020 (in thousands, except per share amounts): 2021: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 12,754 $ 12,804 $ 12,542 $ 12,191 (d) $ 50,291 Expenses, net 11,975 12,867 12,226 12,176 49,244 Net income (loss) 779 (63 ) 316 15 1,047 Net (income) loss attributable to noncontrolling interests in subsidiaries (221 ) 72 (107 ) 136 (120 ) Net income attributable to common equity   $ 558 $ 9 $ 209 $ 151 $ 927 Earnings per share - basic and diluted $ 0.08 $ - $ 0.03 $ 0.02 $ 0.13 Dividends declared per share $ 0.05 $ 0.05 $ 0.05 $ 0.10 $ 0.25 2020: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 15,593 $ 13,688 $ 12,149 (b) $ 11,297 $ 52,727 Expenses, net 17,614 (13,448 )(a) 12,469 (b) 18,772 (c) 35,407 Net (loss) income (2,021 ) 27,136 (320 ) (7,475 ) 17,320 Net (income) loss attributable to noncontrolling interests in subsidiaries (241 ) 84 139 3,251 3,233 Net (loss) income attributable to common equity   $ (2,262 ) $ 27,220 $ (181 ) $ (4,224 ) $ 20,553 (Loss) Earnings per share - basic and diluted $ (0.32 ) $ 3.88 (a) $ (0.02 )(b) $ (0.60 )(c) $ 2.94 Dividends declared per share $ - $ - $ - $ - $ - (a) Includes $ 27.7 million gain on deconsolidation of subsidiary related to the Pierre Towers property which was deconsolidated from FREIT's operating results due to the conversion to a tenancy-in-common form of ownership on February 28, 2020. ($ 3.96 per share) (b) Includes impact of the rejection of the lease for Cobb Theatre at the Rotunda retail property as of June 30, 2020 resulting in the reversal against revenue of uncollected rents in the amount of approximately $ 0.3 million and a straight-line rent receivable of approximately $ 0.4 million and the write-off of unamortized leasing commissions in the amount of approximately $ 0.2 million resulting in a net impact of approximately $ 0.9 million (with a consolidated impact to FREIT of approximately $ 0.5 million). ($ 0.07 per share) (c) Includes write-off of Cobb Theatre's tenant improvements of approximately $ 7.3 million (with a consolidated impact to FREIT of approximately $ 4.4 million) at the Rotunda retail property due to COVID-19. ($ 0.62 per share) (d) Includes settle-ups of Common Area Maintenance with commercial tenants of approximately $ 0.7 million for the fiscal quarter ended October 31, 2021, of which approximately $ 0.4 million related to Fiscal 2020 and approximately $ 0.3 million related to prior quarters in Fiscal 2021. |
Organization and significant _4
Organization and significant accounting policies (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Feb. 28, 2020 | |
Advertising costs | $ 421,000 | $ 297,000 | $ 281,000 | |
Amortization of mortgage costs and leasing commissions | 1,109,000 | $ 1,089,000 | $ 1,139,000 | |
Consolidated impact to net income (loss) | $ 4,400,000 | |||
S And A Commercial Associates Limited Partnership [Member] | ||||
Percentage of ownership interest | 65.00% | |||
Pierre Towers, LLC [Member] | ||||
Percentage of ownership interest | 100.00% | |||
TIC Agreement [Member] | ||||
Percentage of ownership interest | 65.00% |
Organization and significant _5
Organization and significant accounting policies (Schedule of Subsidiaries) (Details) | 12 Months Ended |
Oct. 31, 2021 | |
Westwood Hills, LLC [Member] | |
% Ownership | 40.00% |
Year Acquired/Organized | 1994 |
Wayne PSC, LLC [Member] | |
% Ownership | 40.00% |
Year Acquired/Organized | 2002 |
Damascus Centre, LLC [Member] | |
% Ownership | 70.00% |
Year Acquired/Organized | 2003 |
Grande Rotunda, LLC [Member] | |
% Ownership | 60.00% |
Year Acquired/Organized | 2005 |
WestFREIT Corp [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2007 |
FREIT Regency, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2014 |
Station Place on Monmouth, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2017 |
Berdan Court, LLC [Member] | |
% Ownership | 100.00% |
Year Acquired/Organized | 2019 |
Property dispositions (Details)
Property dispositions (Details) - USD ($) | Feb. 08, 2019 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 |
Real Estate Properties [Line Items] | ||||
Agreed sales price of property held for sale | $ 7,060,000 | |||
Gain on sale of property held for sale | $ 836,000 | |||
Special dividend paid | $ 676,000 | |||
Pathmark Super Center, Patchogue, NY [Member] | ||||
Real Estate Properties [Line Items] | ||||
Rental properties | $ 6,200,000 | |||
Agreed sales price of property held for sale | 7,500,000 | |||
Gain on sale of property held for sale | 800,000 | |||
Net proceeds from sale of property | 2,000,000 | |||
Mortgage payoff | $ 5,200,000 | |||
Dividend per share | $ 0.10 | |||
Sale of property operating loss | $ 800,000 | |||
Price per share operating loss eliminated from sale of property | $ 0.12 |
Investment in tenancy-in-comm_3
Investment in tenancy-in-common (Narrative) (Details) - USD ($) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||
Feb. 28, 2020 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Gain on deconsolidation of subsidiary | $ 27,680,000 | ||||
Investment in tenancy-in-common | $ 20,101,000 | 19,383,000 | 20,101,000 | ||
Loss on investment in tenancy-in-common | 295,000 | 202,000 | |||
Percentage of management fees of rent collected | 5.00% | ||||
Management fees | 241,000 | 375,000 | |||
Insurance commissions | $ 26,000 | 51,000 | |||
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% | ||||
Hekemian & Co. [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Management fees | $ 32,500 | $ 32,000 |
Investment in tenancy-in-comm_4
Investment in tenancy-in-common (Schedule of balance sheet of Pierre Property) (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 |
Schedule of Equity Method Investments [Line Items] | ||||
Real estate, net | $ 270,634 | $ 278,150 | ||
Cash and cash equivalents | 35,891 | 36,860 | $ 38,075 | |
Tenants' security accounts | 1,340 | 1,408 | ||
Receivables and other assets | 1,622 | 1,811 | ||
Total Assets | 346,105 | 355,215 | ||
Mortgages payable, net of unamortized debt issuance costs | 299,876 | 305,430 | ||
Accounts payable and accrued expenses | 2,375 | 2,277 | ||
Tenants' security deposits | 2,039 | 2,124 | ||
Deferred revenue | 1,143 | 1,043 | ||
Equity | 31,951 | 30,863 | $ 16,048 | $ 24,344 |
Total Liabilities and Equity | 346,105 | 355,215 | ||
FREIT's investment in TIC (65% interest) | 19,383 | 20,101 | ||
Pierre Property [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Real estate, net | 78,023 | 80,041 | ||
Cash and cash equivalents | 1,338 | 754 | ||
Tenants' security accounts | 484 | 523 | ||
Receivables and other assets | 510 | 468 | ||
Total Assets | 80,355 | 81,786 | ||
Mortgages payable, net of unamortized debt issuance costs | 49,691 | 49,956 | ||
Accounts payable and accrued expenses | 261 | 314 | ||
Tenants' security deposits | 484 | 535 | ||
Deferred revenue | 99 | 56 | ||
Equity | 29,820 | 30,925 | ||
Total Liabilities and Equity | 80,355 | 81,786 | ||
FREIT's investment in TIC (65% interest) | $ 19,383 | $ 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 | 8 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Revenue | $ 12,191 | [1] | $ 12,542 | $ 12,804 | $ 12,754 | $ 11,297 | $ 12,149 | [2] | $ 13,688 | $ 15,593 | $ 50,291 | $ 52,727 | $ 60,277 | |
Operating expenses | 36,789 | 48,967 | 41,450 | |||||||||||
Depreciation | 9,300 | 10,341 | 11,339 | |||||||||||
Operating income | 13,502 | 3,760 | 18,827 | |||||||||||
Interest expense including amortization of deferred financing costs | 12,276 | 14,122 | 18,070 | |||||||||||
Net income (loss) | $ 15 | $ 316 | $ (63) | $ 779 | $ (7,475) | $ (320) | $ 27,136 | $ (2,021) | 1,047 | 17,320 | 1,793 | |||
FREIT's loss on investment in TIC (65% interest) | (295) | $ (202) | ||||||||||||
Pierre Property [Member] | ||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||
Revenue | $ 4,981 | 7,627 | ||||||||||||
Operating expenses | 2,786 | 4,311 | ||||||||||||
Depreciation | 1,435 | 2,166 | ||||||||||||
Operating income | 760 | 1,150 | ||||||||||||
Interest expense including amortization of deferred financing costs | 1,070 | 1,604 | ||||||||||||
Net income (loss) | (310) | (454) | ||||||||||||
FREIT's loss on investment in TIC (65% interest) | $ (202) | $ (295) | ||||||||||||
[1] | Includes settle-ups of Common Area Maintenance with commercial tenants of approximately $ 0.7 million for the fiscal quarter ended October 31, 2021, of which approximately $ 0.4 million related to Fiscal 2020 and approximately $ 0.3 million related to prior quarters in Fiscal 2021. | |||||||||||||
[2] | Includes impact of the rejection of the lease for Cobb Theatre at the Rotunda retail property as of June 30, 2020 resulting in the reversal against revenue of uncollected rents in the amount of approximately $ 0.3 million and a straight-line rent receivable of approximately $ 0.4 million and the write-off of unamortized leasing commissions in the amount of approximately $ 0.2 million resulting in a net impact of approximately $ 0.9 million (with a consolidated impact to FREIT of approximately $ 0.5 million). ($ 0.07 per share) |
Real estate (Details)
Real estate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 75,688 | $ 75,688 |
Unimproved land | 405 | 405 |
Equipment/Furniture | 2,156 | 1,978 |
Total real estate, gross | 386,255 | 385,287 |
Less accumulated depreciation | 115,621 | 107,137 |
Total real estate, net | $ 270,634 | 278,150 |
Minimum [Member] | Equipment/Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Maximum [Member] | Equipment/Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Apartment Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 156,408 | 155,923 |
Apartment Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 7 years | |
Apartment Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Commercial Buildings/Shopping Centers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 151,598 | $ 151,293 |
Commercial Buildings/Shopping Centers [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Commercial Buildings/Shopping Centers [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years |
Mortgages payable and credit _3
Mortgages payable and credit line (Narrative) (Details) - USD ($) | Jan. 10, 2022 | Feb. 06, 2021 | Aug. 26, 2019 | Apr. 03, 2019 | Feb. 07, 2018 | Dec. 07, 2017 | Jan. 14, 2013 | Dec. 30, 2021 | Feb. 28, 2021 | Sep. 30, 2020 | Jun. 30, 2019 | May 31, 2018 | Apr. 28, 2017 | Sep. 29, 2016 | Apr. 22, 2016 | Nov. 05, 2020 | Jun. 30, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2018 | Dec. 26, 2012 |
Debt Instrument [Line Items] | |||||||||||||||||||||
Legal fees | $ 2,282,000 | $ 957,000 | |||||||||||||||||||
Line of Credit [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis points, interest rate | 3.75% | ||||||||||||||||||||
Maturity date of loan | Oct. 31, 2023 | ||||||||||||||||||||
Line of Credit, available | $ 13,000,000 | ||||||||||||||||||||
Station Place on Monmouth, LLC [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis points, interest rate | 1.80% | ||||||||||||||||||||
Fixed interest rate current loan | 4.35% | ||||||||||||||||||||
Loan amount | $ 12,350,000 | ||||||||||||||||||||
Maturity date of loan | Dec. 15, 2027 | ||||||||||||||||||||
Term of the loan | 2 years | ||||||||||||||||||||
WestFREIT Corp [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Refinanced loan amount | $ 22,000,000 | ||||||||||||||||||||
Basis points, interest rate | 2.75% | ||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 45,250 | $ 43,250 | |||||||||||||||||||
Loan amount | $ 23,500,000 | ||||||||||||||||||||
Maturity date of loan | Apr. 28, 2019 | ||||||||||||||||||||
Net proceeds from refinancing of debt | $ 1,100,000 | ||||||||||||||||||||
Description of loan amendment terms | This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 5.55% to a variable rate | ||||||||||||||||||||
Wells Fargo Bank [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Amount repaid | $ 115,300,000 | ||||||||||||||||||||
Aareal Capital Corporation [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Variable interest rate | 2.93% | ||||||||||||||||||||
Interest rate cap | 3.00% | ||||||||||||||||||||
Loan amount | $ 118,500,000 | $ 116,500,000 | |||||||||||||||||||
Amount repaid | $ 500,000 | ||||||||||||||||||||
Maturity date of loan | Feb. 6, 2022 | ||||||||||||||||||||
Mortgages [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed rate mortgage loans | 138,568,000 | 141,945,000 | |||||||||||||||||||
Debt Instrument, Periodic Payment | $ 319,000 | $ 390,000 | |||||||||||||||||||
Loan amount | 22,600,000 | ||||||||||||||||||||
Deferred Interest | $ 138,000 | $ 222,000 | |||||||||||||||||||
Mortgages [Member] | Rockaway, NJ Mortgage [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Refinanced loan amount | $ 7,500,000 | ||||||||||||||||||||
Fixed rate mortgage loans | $ 14,453,000 | 15,050,000 | |||||||||||||||||||
Fixed interest rate current loan | 5.37% | ||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 115,850 | ||||||||||||||||||||
Debt Instrument, collateral amount | 14,532,000 | ||||||||||||||||||||
Mortgages [Member] | Westwood, NJ#1 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Refinanced loan amount | $ 8,000,000 | ||||||||||||||||||||
Mortgages [Member] | Westwood, NJ #2 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed rate mortgage loans | $ 18,001,000 | 18,695,000 | |||||||||||||||||||
Fixed interest rate current loan | 4.75% | ||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 129,702 | ||||||||||||||||||||
Debt Instrument, collateral amount | 7,051,000 | ||||||||||||||||||||
Loan amount | 22,750,000 | ||||||||||||||||||||
Mortgages [Member] | Wayne, NJ Mortgage [Member] | Berdan Court, LLC [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Refinanced loan amount | $ 17,000,000 | ||||||||||||||||||||
Fixed interest rate on old loan | 6.09% | ||||||||||||||||||||
Fixed rate mortgage loans | 28,815,000 | 28,815,000 | |||||||||||||||||||
Fixed interest rate current loan | 3.54% | ||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 85,004 | ||||||||||||||||||||
Debt Instrument, collateral amount | $ 1,490,000 | ||||||||||||||||||||
Loan amount | $ 28,815,000 | ||||||||||||||||||||
Maturity date of loan | Sep. 1, 2029 | ||||||||||||||||||||
Term of the loan | 5 years | ||||||||||||||||||||
Net proceeds from refinancing of debt | $ 11,600,000 | ||||||||||||||||||||
Future periodic payment including principal | $ 130,036 | ||||||||||||||||||||
Mortgages [Member] | River Edge, NJ Refinanced Mortgage [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed interest rate current loan | 4.54% | ||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 57,456 | ||||||||||||||||||||
Debt Instrument, collateral amount | 679,000 | ||||||||||||||||||||
Loan amount | 11,200,000 | ||||||||||||||||||||
Mortgages [Member] | Red Bank, NJ Refinanced Mortgage [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, collateral amount | 18,514,000 | ||||||||||||||||||||
Mortgages [Member] | Wayne, PSC LLC [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Refinanced loan amount | $ 24,200,000 | $ 25,800,000 | |||||||||||||||||||
Basis points, interest rate | 2.20% | ||||||||||||||||||||
Fixed interest rate on old loan | 6.04% | ||||||||||||||||||||
Fixed rate mortgage loans | $ 22,588,000 | 23,336,000 | |||||||||||||||||||
Fixed interest rate current loan | 3.625% | ||||||||||||||||||||
Membership interest percentage | 40.00% | ||||||||||||||||||||
Debt Instrument, collateral amount | $ 23,408,000 | ||||||||||||||||||||
Debt Instrument, collateral amount classified as construction in progress | 400,000 | ||||||||||||||||||||
Loan amount | $ 25,800,000 | ||||||||||||||||||||
Description of variable interest rate | a reduction in interest rate from 6.04% to 3.625% | ||||||||||||||||||||
Maturity date of loan | Oct. 1, 2026 | ||||||||||||||||||||
Net proceeds from refinancing of debt | $ 1,000,000 | ||||||||||||||||||||
Mortgages [Member] | S And A Commercial Associates Limited Partnership [Member] | Subsequent Event [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Net proceeds from refinancing of debt | $ 18,200,000 | ||||||||||||||||||||
Mortgages [Member] | Damascus, MD [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed interest rate tranche one | 3.81% | ||||||||||||||||||||
Fixed interest rate tranche two | 3.53% | ||||||||||||||||||||
Mortgages [Member] | Damascus, MD [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed rate mortgage loans | $ 18,274,000 | 18,824,000 | |||||||||||||||||||
Maturity date of loan | Jan. 3, 2023 | ||||||||||||||||||||
Net proceeds from refinancing of debt | $ 20,000,000 | ||||||||||||||||||||
Monthly principal payment amount | $ 2,320,000 | ||||||||||||||||||||
Line of Credit, available | 470,000 | ||||||||||||||||||||
Escrow released | $ 1,850,000 | $ 1,850,000 | |||||||||||||||||||
Mortgages [Member] | Damascus, MD [Member] | Subsequent Event [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 18,200,000 | ||||||||||||||||||||
Mortgages [Member] | Middletown, NY Mortgage [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed rate mortgage loans | $ 14,921,000 | 15,255,000 | |||||||||||||||||||
Mortgages [Member] | Frederick, MD [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument, collateral amount | 11,626,000 | ||||||||||||||||||||
Mortgages [Member] | Westwood Hills Property [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Refinanced loan amount | $ 25,000,000 | ||||||||||||||||||||
Basis points, interest rate | 4.00% | ||||||||||||||||||||
Fixed rate mortgage loans | $ 19,200,000 | ||||||||||||||||||||
Loan amount | 8,207,000 | ||||||||||||||||||||
Maturity date of loan | Oct. 1, 2022 | ||||||||||||||||||||
Legal fees | $ 250,000 | ||||||||||||||||||||
Mortgages [Member] | Westwood Hills Property [Member] | Maximum [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed interest rate on old loan | 4.62% | ||||||||||||||||||||
Mortgages [Member] | Westwood Hills Property [Member] | Minimum [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Fixed interest rate on old loan | 4.15% | ||||||||||||||||||||
Mortgages [Member] | COVID 19 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Deferred Interest | 162,100 | ||||||||||||||||||||
Deferred payments | $ 303,800 | ||||||||||||||||||||
Remaining deferred Amount | $ 141,700 | ||||||||||||||||||||
Provident Bank [Member] | Middletown, NY Mortgage [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis points, interest rate | 1.25% | ||||||||||||||||||||
Fixed interest rate current loan | 3.75% | ||||||||||||||||||||
Debt Instrument, collateral amount | $ 17,935,000 | ||||||||||||||||||||
Loan amount | $ 16,200,000 | ||||||||||||||||||||
Maturity date of loan | Dec. 15, 2024 | ||||||||||||||||||||
Monthly principal payment amount | $ 27,807 | ||||||||||||||||||||
WestFREIT Corp [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis points, interest rate | 2.40% | 2.55% | |||||||||||||||||||
Fixed interest rate current loan | 2.68% | ||||||||||||||||||||
Debt Instrument, Periodic Payment | $ 47,250 | $ 49,250 | |||||||||||||||||||
Loan amount | $ 22,500,000 | $ 21,100,000 | |||||||||||||||||||
Maturity date of loan | May 1, 2020 | Jan. 31, 2022 | |||||||||||||||||||
Rotunda [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis points, interest rate | 2.85% | ||||||||||||||||||||
Debt Instrument, collateral amount | $ 136,623,000 | ||||||||||||||||||||
Loan amount | $ 118,500,000 | ||||||||||||||||||||
Maturity date of loan | Feb. 6, 2021 | ||||||||||||||||||||
Rotunda [Member] | Subsequent Event [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Loan amount | $ 116,500,000 | ||||||||||||||||||||
Grande Rotunda LLC Construction Loan [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest rate cap | 3.00% | ||||||||||||||||||||
Loan amount | $ 121,900,000 | ||||||||||||||||||||
Line of Credit, available | $ 3,380,000 |
Mortgages payable and credit _4
Mortgages payable and credit line (Schedule of Debt) (Details) - USD ($) $ in Thousands | Oct. 31, 2021 | Oct. 31, 2020 |
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ 1,400 | $ 1,810 |
Total mortgages, notes payable and credit line | 301,276 | 307,240 |
Mortgages [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 138,568 | 141,945 |
Unamortized debt issuance costs | 974 | 1,190 |
Mortgages [Member] | Rockaway, NJ Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 14,453 | 15,050 |
Unamortized debt issuance costs | 50 | 23 |
Mortgages [Member] | Westwood, NJ #2 [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 18,001 | 18,695 |
Unamortized debt issuance costs | 39 | 71 |
Mortgages [Member] | Wayne, NJ Mortgage [Member] | Berdan Court, LLC [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 28,815 | 28,815 |
Unamortized debt issuance costs | 379 | 427 |
Mortgages [Member] | River Edge, NJ First Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 9,545 | 9,789 |
Unamortized debt issuance costs | 36 | 53 |
Mortgages [Member] | Red Bank, NJ Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 11,971 | 12,181 |
Unamortized debt issuance costs | 93 | 108 |
Mortgages [Member] | Wayne, PSC LLC [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 22,588 | 23,336 |
Unamortized debt issuance costs | 172 | 205 |
Mortgages [Member] | Damascus, MD [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 18,274 | 18,824 |
Unamortized debt issuance costs | 101 | 166 |
Mortgages [Member] | Middletown, NY Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Fixed rate mortgage loans | 14,921 | 15,255 |
Unamortized debt issuance costs | 104 | 137 |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 426 | 620 |
Variable rate mortgage loans and credit line | 162,708 | 165,295 |
Notes Payable, Other Payables [Member] | Westwood, NJ [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 220 | 460 |
Variable rate mortgage loan | 25,000 | 25,000 |
Notes Payable, Other Payables [Member] | Frederick, MD [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 30 | |
Variable rate mortgage loan | 21,188 | 21,775 |
Notes Payable, Other Payables [Member] | Baltimore, MD [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 105 | 160 |
Variable rate mortgage loan | 116,520 | 118,520 |
Provident Bank [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | 71 | |
Line of credit |
Mortgages payable and credit _5
Mortgages payable and credit line (Schedule of Fair Value of Long-Term Debt) (Details) - USD ($) $ in Millions | Oct. 31, 2021 | Oct. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 301.6 | $ 311.4 |
Carrying value of long-term debt | $ 299.9 | $ 305.4 |
Mortgages payable and credit _6
Mortgages payable and credit line (Schedule of Principal Amounts Due) (Details) $ in Thousands | Oct. 31, 2021USD ($) | |
Debt Disclosure [Abstract] | ||
2022 | $ 201,680 | [1],[2],[3],[4] |
2023 | 35,914 | [5] |
2024 | 9,663 | |
2025 | 14,734 | |
2026 | $ 817 | |
[1] | Includes a loan on Boulders, which is a residential property located in Rockaway, New Jersey in the amount of approximately $14.5 million which had a maturity date of February 1, 2022. The loan was refinanced on December 30, 2021 in the amount of $7.5 million with additional funding available of up to another $7.5 million and has a maturity date of January 1, 2024. (See Note 17) | |
[2] | Includes a loan on Rotunda property located in Baltimore, Maryland in the amount of approximately $116.5 million which would have matured on February 6, 2022. (See Note 5(K)) On December 30, 2021, the property owned by Grande Rotunda was sold and a portion of the proceeds was used to pay off the $116.5 million then outstanding balance of this loan. (See Note 17) | |
[3] | Includes a loan on Westridge Square Shopping Center located in Frederick, Maryland in the amount of approximately $ 21.1 million which has a maturity date of January 31, 2021. (See Note 5(J)) On January 7, 2022, the property owned by WestFREIT was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Note 17 for additional details.) | |
[4] | Includes a loan on the Preakness Shopping Center located in Wayne, New Jersey in the amount of approximately $ 22.6 million. As a result of COVID-19 pandemic rent losses and the planning for a potential redevelopment of its shopping center, as of October 31, 2021, Wayne PSC was not, and currently is not, in compliance with a look back debt service coverage ratio loan covenant contained in the mortgage loan agreement held by People’s United Bank in the amount of approximately $22.6 million as of October 31, 2021. Although the Company continues to make its required debt service payments in accordance with the loan agreement, it is unable to comply with this covenant. As such, the bank could exercise its remedies under the loan agreement including, among other things, requiring a partial or full repayment of the loan. The Company is currently working with the lender to remediate this covenant default. As of the date of the filing of this Form 10K report, the bank has not declared this loan to be in default. Until such time as a definitive agreement is entered into, there can be no assurance the loan covenant will be amended and the bank will not declare this loan to be in default. (See Note 5(F)) | |
[5] | Includes a loan on the Damascus property located in Damascus, Maryland in the amount of approximately $ 18.2 million. On January 10, 2022, the property owned by Damascus was sold and a portion of the proceeds was used to pay off the then outstanding balance of this loan. (See Notes 5(G) and 17) |
Interest rate cap and swap co_2
Interest rate cap and swap contracts (Details) - USD ($) | 12 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Derivative [Line Items] | |||
Unrealized gain (loss) on derivatives | $ (160,000) | ||
Net unrealized (loss) gain on interest rate swap contracts | 2,616,000 | (2,798,000) | $ (6,400,000) |
Interest rate swap contract liabilities | 2,308,000 | 4,924,000 | |
Damascus Centre Swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liabilities | 278,000 | 610,000 | |
Wayne PSC swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liabilities | 348,000 | 1,260,000 | |
Regency Swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liabilities | 750,000 | 1,385,000 | |
Station Place swap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liabilities | 932,000 | 1,669,000 | |
Grande Rotunda interest rate cap [Member] | |||
Derivative [Line Items] | |||
Interest rate swap contract liabilities | $ 0 | $ 0 |
Commitments and contingencies_2
Commitments and contingencies (Narrative) (Details) | 12 Months Ended |
Oct. 31, 2021USD ($) | |
Commercial space leases, net book value | $ 127,800,000 |
Lease terms for residential tenants, periods | 2 years |
Westwood Plaza Shopping Center [Member] | |
Flood insurance, amount per incident | $ 500,000 |
Commitments and contingencies_3
Commitments and contingencies (Schedule of Minimum Rental Income) (Details) $ in Thousands | Oct. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 5,719 |
2023 | 5,083 |
2024 | 3,970 |
2025 | 3,298 |
2026 | 2,550 |
Thereafter | 3,313 |
Total | $ 23,933 |
Management agreement, fees an_2
Management agreement, fees and transactions with related party (Details) - USD ($) | May 08, 2008 | Oct. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 |
Related Party Transaction [Line Items] | |||||
Asset management fees | $ 2,178,000 | $ 2,251,000 | $ 2,603,000 | ||
Insurance commissions | $ 26,000 | 51,000 | |||
Due to affiliate | 5,921,000 | 3,252,000 | 5,921,000 | ||
Secured loans receivable | 5,194,000 | 5,292,000 | 5,194,000 | ||
Commissions related to loan financing | 144,075 | ||||
Letter of Credit [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sales commissions | 32,500 | ||||
Grande Rotunda, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Aggregate outstanding principal balance | 4,000,000 | 4,000,000 | 4,000,000 | ||
Accrued but unpaid interest | 1,194,000 | $ 1,292,000 | 1,194,000 | ||
Ownership by parent (percentage) | 60.00% | ||||
Ownership by noncontrolling owners (percentage) | 40.00% | ||||
Due to affiliate | 5,900,000 | $ 3,300,000 | 5,900,000 | ||
Principal amount on notes paid off | 7,000,000 | ||||
Repayment to affiliate | 2,800,000 | ||||
Loan commission | $ 150,000 | ||||
WestFREIT Corp [Member] | |||||
Related Party Transaction [Line Items] | |||||
Ownership by parent (percentage) | 100.00% | ||||
Loan commission | $ 54,000 | ||||
Managing Agent Hekemian & Co [Member] | |||||
Related Party Transaction [Line Items] | |||||
Asset management fees | 2,127,000 | 2,201,000 | 2,549,000 | ||
Leasing commissions and reimbursement of operating expenses | 548,000 | 982,000 | 762,000 | ||
Insurance commissions | 209,000 | 190,000 | 196,000 | ||
Maximum advances to employees | $ 2,000,000 | 4,000,000 | |||
Accounts Payable | $ 182,000 | 185,000 | 182,000 | ||
Affiliated Entity 1 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Consulting services expense | 236,500 | 125,000 | 275,000 | ||
Berdan Court, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Sale/Acquisition commissions | 131,250 | ||||
Robert S. Hekemian [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fee expense | 0 | 21,000 | 214,000 | ||
Consulting services expense | 0 | 8,000 | 60,000 | ||
Consulting fee per month | 5,000 | ||||
Consulting fee quarterly installments | 15,000 | ||||
Robert S. Hekemian, Jr. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fee expense | 469,000 | 508,000 | 381,000 | ||
Allan Tubin [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fee expense | 30,000 | 26,000 | 22,000 | ||
David Hekemian [Member] | |||||
Related Party Transaction [Line Items] | |||||
Trustee fee expense | $ 57,000 | $ 50,000 | $ 56,000 |
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% |
Capital gain from sale of property as dividends (percentage) | 100.00% |
Equity incentive plan (Details)
Equity incentive plan (Details) - USD ($) | Mar. 04, 2019 | Apr. 05, 2018 | Apr. 04, 2007 | Sep. 10, 1998 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 |
Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized to be issued under plan | 920,000 | ||||||
Increase in number of shares authorized | 300,000 | 300,000 | 920,000 | ||||
Shares available for issuance | 442,060 | ||||||
Employee Stock Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Plan term | 10 years | ||||||
Vesting term | 5 years | ||||||
No. of Options Outstanding | |||||||
Options outstanding beginning of year | 310,740 | 310,740 | 305,780 | ||||
Options granted during year | 5,000 | 5,000 | |||||
Options forfeited/cancelled during year | (40) | ||||||
Options outstanding end of year | 310,740 | 310,740 | 310,740 | ||||
Options vested and expected to vest | 309,450 | 308,310 | 308,310 | ||||
Options exercisable at end of year | 292,540 | 276,340 | 260,140 | ||||
Exercise Price | |||||||
Options outstanding beginning of year | $ 18.35 | $ 18.35 | $ 18.40 | ||||
Options granted during year | $ 15 | 15 | |||||
Options forfeited/cancelled during year | 18.45 | ||||||
Options outstanding end of year | $ 18.35 | $ 18.35 | 18.35 | ||||
Estimated fair value of options granted | $ 2.43 | ||||||
Such value was estimated on the grant date using a binomial lattice option pricing model using the following assumptions: | |||||||
Expected volatility | 27.69% | ||||||
Risk-free interest rate | 2.72% | ||||||
Imputed option life | 6 years 3 months 18 days | ||||||
Expected dividend yield | 3.82% | ||||||
Compensation expense related to stock options | $ 42,000 | $ 46,000 | $ 124,000 | ||||
Unrecognized compensation cost | $ 30,000 | ||||||
Unrecognized compensation cost, recognition period | 1 year 7 months 6 days | ||||||
Aggregate intrinsic value of options expected to vest | $ 410,000 | ||||||
Aggregate intrinsic value of options exercisable | $ 341,000 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Dec. 31, 2019 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Dividends payable | $ 686,000 | $ 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 | 21,000 | $ 214,000 | |
Deferred Fee Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||
Trustee fee expense | 488,000 | 526,000 | ||
Deferred trustee fees | 446,000 | 526,000 | ||
Deferred accrued interest | $ 1,021,000 | $ 1,091,000 | ||
Basis spread on any deferred fee (percentage) | 150.00% | |||
Shares issued | 27,176 | 29,134 | ||
Dividends payable | $ 42,000 | $ 0 | ||
Cumulative fees | $ 1,454,000 | $ 1,542,000 | ||
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 |
Dividends and earnings per sh_2
Dividends and earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Dividends declared (amount) | $ 1,755 | $ 0 | $ 4,173 | ||||||||
Dividends declared per share | $ 0.10 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.25 | $ 0.60 | |||||
Anti-dulutive shares excluded from the computation of diluted earnings per share | 268,000 | 268,000 | 306,000 | ||||||||
Average dilutive shares outstanding | 3,000 | 1,500 |
Segment information (Details)
Segment information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Oct. 31, 2021USD ($)properties | Jul. 31, 2021USD ($) | Apr. 30, 2021USD ($) | Jan. 31, 2021USD ($) | Oct. 31, 2020USD ($)properties | Jul. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2020USD ($) | Oct. 31, 2021USD ($)segmentsproperties | Oct. 31, 2020USD ($)properties | Oct. 31, 2019USD ($)properties | |||
Reportable Segments | |||||||||||||
Real estate rental revenue | $ 12,191 | [1] | $ 12,542 | $ 12,804 | $ 12,754 | $ 11,297 | $ 12,149 | [2] | $ 13,688 | $ 15,593 | $ 50,291 | $ 52,727 | $ 60,277 |
Real estate operating expenses | 36,789 | 48,967 | 41,450 | ||||||||||
Operating income | 13,502 | 3,760 | 18,827 | ||||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||||
Deferred rents - straight lining | (230) | (397) | 410 | ||||||||||
Investment income | 116 | 204 | 360 | ||||||||||
Unrealized (loss) gain on interest rate cap contract | (160) | ||||||||||||
Special Committee third party advisory, legal and other expenses | (4,606) | (1,416) | |||||||||||
Gain on sale of property | 836 | ||||||||||||
Gain on deconsolidation of subsidiary | 27,680 | ||||||||||||
Loss on investment in tenancy-in-common | (295) | (202) | |||||||||||
General and administrative expenses | (5,195) | (3,821) | (2,633) | ||||||||||
Depreciation | (9,300) | (10,341) | (11,339) | ||||||||||
Tenant improvement write-off due to COVID-19 | (7,277) | ||||||||||||
Financing costs | (12,276) | (14,122) | (18,070) | ||||||||||
Net income | 15 | 316 | (63) | 779 | (7,475) | (320) | 27,136 | (2,021) | 1,047 | 17,320 | 1,793 | ||
Net (income) loss attributable to noncontrolling interests in subsidiaries | 136 | (107) | 72 | (221) | 3,251 | 139 | 84 | (241) | (120) | 3,233 | (6) | ||
Net income attributable to common equity | $ 151 | $ 209 | $ 9 | $ 558 | $ (4,224) | $ (181) | $ 27,220 | $ (2,262) | $ 927 | 20,553 | 1,787 | ||
Number of reportable segments | segments | 2 | ||||||||||||
Operating Segments [Member] | |||||||||||||
Reportable Segments | |||||||||||||
Real estate rental revenue | $ 50,521 | 53,124 | 59,867 | ||||||||||
Real estate operating expenses | 22,294 | 22,922 | 26,062 | ||||||||||
Operating income | 28,227 | 30,202 | 33,805 | ||||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||||
Segment NOI | $ 28,227 | $ 30,202 | $ 33,805 | ||||||||||
Commercial [Member] | |||||||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||||
Number of properties | properties | 8 | 8 | 8 | 8 | 8 | ||||||||
Commercial [Member] | Operating Segments [Member] | |||||||||||||
Reportable Segments | |||||||||||||
Real estate rental revenue | $ 23,547 | $ 24,486 | $ 26,692 | ||||||||||
Real estate operating expenses | 11,223 | 11,334 | 11,694 | ||||||||||
Operating income | 12,324 | 13,152 | 14,998 | ||||||||||
Residential [Member] | |||||||||||||
Reportable Segments | |||||||||||||
Recurring capital improvements - residential | $ (625) | $ (347) | $ (685) | ||||||||||
Reconciliation to consolidated net income attributable to common equity: | |||||||||||||
Number of properties | properties | 7 | 7 | 7 | 7 | 8 | ||||||||
Residential [Member] | Operating Segments [Member] | |||||||||||||
Reportable Segments | |||||||||||||
Real estate rental revenue | $ 26,974 | $ 28,638 | $ 33,175 | ||||||||||
Real estate operating expenses | 11,071 | 11,588 | 14,368 | ||||||||||
Operating income | $ 15,903 | $ 17,050 | $ 18,807 | ||||||||||
[1] | Includes settle-ups of Common Area Maintenance with commercial tenants of approximately $ 0.7 million for the fiscal quarter ended October 31, 2021, of which approximately $ 0.4 million related to Fiscal 2020 and approximately $ 0.3 million related to prior quarters in Fiscal 2021. | ||||||||||||
[2] | Includes impact of the rejection of the lease for Cobb Theatre at the Rotunda retail property as of June 30, 2020 resulting in the reversal against revenue of uncollected rents in the amount of approximately $ 0.3 million and a straight-line rent receivable of approximately $ 0.4 million and the write-off of unamortized leasing commissions in the amount of approximately $ 0.2 million resulting in a net impact of approximately $ 0.9 million (with a consolidated impact to FREIT of approximately $ 0.5 million). ($ 0.07 per share) |
Termination of Purchase and S_2
Termination of Purchase and Sale Agreement (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jun. 17, 2020 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Jan. 14, 2020 | |
Escrow deposit amount | $ 1,814,000 | $ 1,249,000 | $ 2,135,000 | ||
Amount of liquidated damages | $ 15,000,000 | ||||
Expense incurred | 0 | 4,606,000 | $ 1,416,000 | ||
Legal costs | $ 2,282,000 | $ 957,000 | |||
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 |
COVID-19 Pandemic (Details)
COVID-19 Pandemic (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Dec. 30, 2021 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | Jun. 30, 2020 | |
Security deposit as accounts receivables | $ 1,340,000 | $ 1,408,000 | $ 2,278,000 | ||
Uncollected rents | $ 300,000 | ||||
Rental revenue deemed uncollectible | 1,300,000 | ||||
Deferrals of rent | 1,400,000 | ||||
Commercial tenants deferrals of rent | 132,000 | 206,000 | |||
Increase in expense for reserve of uncollectible rents with consolidated impact | 200,000 | ||||
Rent abatements | 239,000 | 238,000 | |||
Tenant improvements related to Cobb Theatre with net book value | 7,300,000 | ||||
Unamortized leasing commissions fully expensed in a net impact of net income | 900,000 | ||||
Straight-line rent receivable | 400,000 | $ 400,000 | |||
Aggregate lease termination fee | 260,000 | ||||
Deferred payments of loan | 1,013,000 | ||||
Cash balance | 35,900,000 | ||||
Available line of credit | 13,000,000 | ||||
Available to draw | 279,000 | 250,000 | $ 569,000 | ||
Repayments Of Loan | 162,000 | 162,000 | |||
Subsequent Event [Member] | FREIT Maryland [Member] | |||||
Available to draw | $ 7,500,000 | ||||
Commercial Properties [Member] | |||||
Security deposit as accounts receivables | 397,000 | ||||
FREIT [Member] | |||||
Rental revenue deemed uncollectible | 800,000 | 900,000 | |||
Commercial tenants deferrals of rent | 81,000 | 192,000 | |||
Rent abatements | 158,000 | 156,000 | |||
Tenant improvements related to Cobb Theatre with net book value | 4,400,000 | ||||
Unamortized leasing commissions fully expensed in a net impact of net income | $ 500,000 | ||||
Aggregate lease termination fee | $ 140,000 |
Subsequent events (Details)
Subsequent events (Details) - USD ($) | Jan. 10, 2022 | Jan. 07, 2022 | Dec. 30, 2021 | Nov. 22, 2021 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 |
Subsequent Event [Line Items] | |||||||
Available to draw | $ 279,000 | $ 250,000 | $ 569,000 | ||||
Legal fees | 2,282,000 | 957,000 | |||||
Escrow deposit amount | 1,814,000 | 1,249,000 | 2,135,000 | ||||
Repayments of mortgage debt | 162,000 | 162,000 | |||||
Expense incurred | $ 0 | $ 4,606,000 | $ 1,416,000 | ||||
Subsequent Event [Member] | Purchase and Sale Agreement [Member] | FREIT Maryland owned 100% of its subsidiary [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of ownership interest | 100.00% | ||||||
Subsequent Event [Member] | Purchase and Sale Agreement [Member] | Grande Rotunda [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of ownership interest | 60.00% | ||||||
Subsequent Event [Member] | Purchase and Sale Agreement [Member] | Damascus Centre [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Percentage of ownership interest | 70.00% | ||||||
Subsequent Event [Member] | Purchase and Sale Agreement of Rotunda Property [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Purchase price | $ 191,080,598 | $ 2,723,000 | |||||
Escrow deposit amount | 14,026,401 | 15,526,731 | |||||
Proceeds from sale | 68,700,000 | ||||||
Repayments of mortgage debt | 116,500,000 | ||||||
Expense incurred | 30,900,000 | ||||||
Gain from sale | 52,000,000 | ||||||
Proceeds from anticipated to be released from held in escrow | 8,200,000 | ||||||
Subsequent Event [Member] | Purchase and Sale Agreement of Westridge Square Property [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Purchase price | $ 20,984,604 | ||||||
Escrow deposit amount | 1,015,396 | ||||||
Repayments of mortgage debt | 21,100,000 | ||||||
Gain from sale | 8,700,000 | ||||||
Proceeds from anticipated to be released from held in escrow | 700,000 | ||||||
Paid net cash outlays from sale | $ 700,000 | ||||||
Subsequent Event [Member] | Purchase and Sale Agreement of Damascus Property [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Purchase price | $ 36,685,067 | ||||||
Escrow deposit amount | 484,934 | ||||||
Proceeds from sale | 16,900,000 | ||||||
Repayments of mortgage debt | 18,200,000 | ||||||
Gain from sale | 10,100,000 | ||||||
Proceeds from anticipated to be released from held in escrow | $ 400,000 | ||||||
Subsequent Event [Member] | Minimum [Member] | Purchase and Sale Agreement of Rotunda Property [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Purchase price | 248,750,269 | ||||||
Subsequent Event [Member] | Maximum [Member] | Purchase and Sale Agreement of Rotunda Property [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Purchase price | $ 267,000,000 | ||||||
Subsequent Event [Member] | FREIT Maryland [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Fixed rate mortgage loans | 14,400,000 | ||||||
Loan amount, new | $ 7,500,000 | ||||||
Maturity date of loan | Feb. 1, 2022 | ||||||
Available to draw | $ 7,500,000 | ||||||
Legal fees | 250,000 | ||||||
Annual debt service savings | $ 1,173,000 | ||||||
Subsequent Event [Member] | FREIT Maryland [Member] | Minimum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Fixed interest rate on old loan | 2.85% | ||||||
Subsequent Event [Member] | FREIT Maryland [Member] | Maximum [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Fixed interest rate on old loan | 5.37% |
Selected quarterly financial _3
Selected quarterly financial data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Jun. 30, 2020 | Feb. 28, 2020 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jan. 31, 2020 | Jul. 31, 2021 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |||||
Revenue | $ 12,191 | [1] | $ 12,542 | $ 12,804 | $ 12,754 | $ 11,297 | $ 12,149 | [2] | $ 13,688 | $ 15,593 | $ 50,291 | $ 52,727 | $ 60,277 | |||||
Expenses, net | 12,176 | 12,226 | 12,867 | 11,975 | 18,772 | [3] | 12,469 | [2] | (13,448) | [4] | 17,614 | 49,244 | 35,407 | |||||
Net income (loss) | 15 | 316 | (63) | 779 | (7,475) | (320) | 27,136 | (2,021) | 1,047 | 17,320 | 1,793 | |||||||
Net (income) loss attributable to noncontrolling interests in subsidiaries | 136 | (107) | 72 | (221) | 3,251 | 139 | 84 | (241) | (120) | 3,233 | (6) | |||||||
Net income (loss) income attributable to common equity | $ 151 | $ 209 | $ 9 | $ 558 | $ (4,224) | $ (181) | $ 27,220 | $ (2,262) | $ 927 | $ 20,553 | $ 1,787 | |||||||
(Loss) Earnings per share - basic and diluted | $ 0.02 | $ 0.03 | $ 0.08 | $ (0.60) | [3] | $ (0.02) | [2] | $ 3.88 | [4] | $ (0.32) | $ 0.13 | $ 2.94 | $ 0.26 | |||||
Dividends declared per share | $ 0.10 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.25 | $ 0.60 | ||||||||||||
Gain on sale of property per share | $ 3.96 | $ 0.62 | ||||||||||||||||
Gain from sales | $ 27,700 | |||||||||||||||||
Settle-ups of Common Area Maintenance with commercial tenants | $ 700 | $ 300 | $ 400 | |||||||||||||||
Straight-line rent receivable | $ 400 | $ 400 | 400 | |||||||||||||||
Increase in expense for reserve of uncollectible rents | 300 | |||||||||||||||||
Increase in expense for reserve of uncollectible rents with consolidated impact | 200 | |||||||||||||||||
Unamortized leasing commissions fully expensed in a net impact of net income | 900 | |||||||||||||||||
Tenant improvements related to Cobb Theatre with net book value | 7,300 | |||||||||||||||||
FREIT [Member] | ||||||||||||||||||
Unamortized leasing commissions fully expensed in a net impact of net income | 500 | |||||||||||||||||
Tenant improvements related to Cobb Theatre with net book value | $ 4,400 | |||||||||||||||||
Cobb theater Rotunda retail property [Mmeber] | ||||||||||||||||||
Gain on sale of property per share | $ 0.07 | |||||||||||||||||
[1] | Includes settle-ups of Common Area Maintenance with commercial tenants of approximately $ 0.7 million for the fiscal quarter ended October 31, 2021, of which approximately $ 0.4 million related to Fiscal 2020 and approximately $ 0.3 million related to prior quarters in Fiscal 2021. | |||||||||||||||||
[2] | Includes impact of the rejection of the lease for Cobb Theatre at the Rotunda retail property as of June 30, 2020 resulting in the reversal against revenue of uncollected rents in the amount of approximately $ 0.3 million and a straight-line rent receivable of approximately $ 0.4 million and the write-off of unamortized leasing commissions in the amount of approximately $ 0.2 million resulting in a net impact of approximately $ 0.9 million (with a consolidated impact to FREIT of approximately $ 0.5 million). ($ 0.07 per share) | |||||||||||||||||
[3] | Includes write-off of Cobb Theatre's tenant improvements of approximately $ 7.3 million (with a consolidated impact to FREIT of approximately $ 4.4 million) at the Rotunda retail property due to COVID-19. ($ 0.62 per share) | |||||||||||||||||
[4] | Includes $ 27.7 million gain on deconsolidation of subsidiary related to the Pierre Towers property which was deconsolidated from FREIT's operating results due to the conversion to a tenancy-in-common form of ownership on February 28, 2020. ($ 3.96 per share) |
SCHEDULE III - REAL ESTATE AN_2
SCHEDULE III - REAL ESTATE AND ACCUMULATED DEPRECIATION (Schedule of Properties) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 310,276 | ||||
Initial Cost to Company | |||||
Land | 62,954 | ||||
Buildings and Improvements | 115,523 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 13,139 | ||||
Improvements | 195,304 | ||||
Carrying Costs | |||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 76,093 | ||||
Buildings and Improvements | 310,827 | ||||
Total | 386,920 | [1] | $ 385,853 | $ 448,866 | |
Accumulated Depreciation | 115,621 | 107,137 | 118,363 | ||
Real estate: | |||||
Balance, beginning of year | 385,853 | 448,866 | 456,658 | ||
Additions - Buildings and improvements | 1,883 | 2,055 | 3,386 | ||
Disposal: Buildings and improvements | (816) | (585) | (240) | ||
Tenant improvement write-off due to COVID-19 | (8,910) | ||||
Sale of property | (10,938) | ||||
Deconsolidation of subsidiary | (55,573) | ||||
Balance, end of year | 386,920 | [1] | 385,853 | 448,866 | |
Accumulated depreciation: | |||||
Balance, beginning of year | 107,137 | 118,363 | 111,967 | ||
Additions - Charged to operating expenses | 9,300 | 10,341 | 11,339 | ||
Tenant improvement write-off due to COVID-19 - Charged to operating expenses | (1,637) | ||||
Disposal - Buildings and improvements | (816) | (583) | (217) | ||
Sale of property | (4,726) | ||||
Deconsolidation of subsidiary | (19,347) | ||||
Balance, end of year | 115,621 | $ 107,137 | $ 118,363 | ||
Residential Properties [Member] | Steuben Arms, River Edge, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | 9,545 | ||||
Initial Cost to Company | |||||
Land | 364 | ||||
Buildings and Improvements | 1,773 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 1,531 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 364 | ||||
Buildings and Improvements | 3,304 | ||||
Total | [1] | 3,668 | |||
Accumulated Depreciation | 2,989 | ||||
Real estate: | |||||
Balance, end of year | [1] | 3,668 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 2,989 | ||||
Residential Properties [Member] | Steuben Arms, River Edge, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 7 years | ||||
Residential Properties [Member] | Steuben Arms, River Edge, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 40 years | ||||
Residential Properties [Member] | Berdan Court, Wayne, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 28,815 | ||||
Initial Cost to Company | |||||
Land | 250 | ||||
Buildings and Improvements | 2,206 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 4,991 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 250 | ||||
Buildings and Improvements | 7,197 | ||||
Total | [1] | 7,447 | |||
Accumulated Depreciation | 5,957 | ||||
Real estate: | |||||
Balance, end of year | [1] | 7,447 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 5,957 | ||||
Residential Properties [Member] | Berdan Court, Wayne, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 7 years | ||||
Residential Properties [Member] | Berdan Court, Wayne, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 40 years | ||||
Residential Properties [Member] | Westwood Hills, Westwood, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 25,000 | ||||
Initial Cost to Company | |||||
Land | 3,849 | ||||
Buildings and Improvements | 11,546 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 2,919 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 3,849 | ||||
Buildings and Improvements | 14,465 | ||||
Total | [1] | 18,314 | |||
Accumulated Depreciation | 10,107 | ||||
Real estate: | |||||
Balance, end of year | [1] | 18,314 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 10,107 | ||||
Residential Properties [Member] | Westwood Hills, Westwood, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 7 years | ||||
Residential Properties [Member] | Westwood Hills, Westwood, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 39 years | ||||
Residential Properties [Member] | Boulders - Rockaway, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 14,453 | ||||
Initial Cost to Company | |||||
Land | 1,632 | ||||
Buildings and Improvements | |||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 3,386 | ||||
Improvements | 16,091 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 5,018 | ||||
Buildings and Improvements | 16,091 | ||||
Total | [1] | 21,109 | |||
Accumulated Depreciation | 6,628 | ||||
Real estate: | |||||
Balance, end of year | [1] | 21,109 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 6,628 | ||||
Residential Properties [Member] | Boulders - Rockaway, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 7 years | ||||
Residential Properties [Member] | Boulders - Rockaway, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 40 years | ||||
Residential Properties [Member] | Regency Club - Middletown, NY [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 14,921 | ||||
Initial Cost to Company | |||||
Land | 2,833 | ||||
Buildings and Improvements | 17,792 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 973 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 2,833 | ||||
Buildings and Improvements | 18,765 | ||||
Total | [1] | 21,598 | |||
Accumulated Depreciation | 3,663 | ||||
Cost for Federal income tax purposes | 13,500 | ||||
Real estate: | |||||
Balance, end of year | [1] | 21,598 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 3,663 | ||||
Residential Properties [Member] | Regency Club - Middletown, NY [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 7 years | ||||
Residential Properties [Member] | Regency Club - Middletown, NY [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 40 years | ||||
Residential Properties [Member] | Icon - Baltimore, MD [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | [2] | $ 64,086 | |||
Initial Cost to Company | |||||
Land | [2] | 5,871 | |||
Buildings and Improvements | [2] | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | [2] | ||||
Improvements | [2] | 87,884 | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | [2] | 5,871 | |||
Buildings and Improvements | [2] | 87,884 | |||
Total | [1] | 93,755 | |||
Accumulated Depreciation | [2] | 11,563 | |||
Real estate: | |||||
Balance, end of year | [1] | 93,755 | |||
Accumulated depreciation: | |||||
Balance, end of year | [2] | $ 11,563 | |||
Residential Properties [Member] | Icon - Baltimore, MD [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 7 years | ||||
Residential Properties [Member] | Icon - Baltimore, MD [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 40 years | ||||
Residential Properties [Member] | Station Place, Red Bank [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 11,971 | ||||
Initial Cost to Company | |||||
Land | 8,793 | ||||
Buildings and Improvements | 10,757 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 19 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 8,793 | ||||
Buildings and Improvements | 10,776 | ||||
Total | [1] | 19,569 | |||
Accumulated Depreciation | 1,055 | ||||
Cost for Federal income tax purposes | 4,200 | ||||
Real estate: | |||||
Balance, end of year | [1] | 19,569 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 1,055 | ||||
Residential Properties [Member] | Station Place, Red Bank [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 7 years | ||||
Residential Properties [Member] | Station Place, Red Bank [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 40 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Damascus Shopping Center, Damascus, MD [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | [2] | $ 18,274 | |||
Initial Cost to Company | |||||
Land | [2] | 2,950 | |||
Buildings and Improvements | [2] | 6,987 | |||
Costs Capitalized Subsequent to Acquisition | |||||
Land | [2] | 6,296 | |||
Improvements | [2] | 17,232 | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | [2] | 9,246 | |||
Buildings and Improvements | [2] | 24,219 | |||
Total | [1],[2] | 33,465 | |||
Accumulated Depreciation | [2] | 8,765 | |||
Real estate: | |||||
Balance, end of year | [1],[2] | 33,465 | |||
Accumulated depreciation: | |||||
Balance, end of year | [2] | $ 8,765 | |||
Westwood Plaza and Damascus Shopping Center [Member] | Damascus Shopping Center, Damascus, MD [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 5 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Damascus Shopping Center, Damascus, MD [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 39 years 6 months | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | |||||
Initial Cost to Company | |||||
Land | 29 | ||||
Buildings and Improvements | |||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | 3,382 | ||||
Improvements | 7,438 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 3,411 | ||||
Buildings and Improvements | 7,438 | ||||
Total | [1] | 10,849 | |||
Accumulated Depreciation | 4,545 | ||||
Real estate: | |||||
Balance, end of year | [1] | 10,849 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 4,545 | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 5 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 39 years 6 months | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Glen Rock, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | |||||
Initial Cost to Company | |||||
Land | 12 | ||||
Buildings and Improvements | 36 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 164 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 12 | ||||
Buildings and Improvements | 200 | ||||
Total | [1] | 212 | |||
Accumulated Depreciation | 164 | ||||
Real estate: | |||||
Balance, end of year | [1] | 212 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 164 | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Glen Rock, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 5 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Glen Rock, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 25 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Westridge Square S/C, Frederick, MD [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | [2] | $ 21,188 | |||
Initial Cost to Company | |||||
Land | [2] | 9,135 | |||
Buildings and Improvements | [2] | 19,159 | |||
Costs Capitalized Subsequent to Acquisition | |||||
Land | [2] | (1) | |||
Improvements | [2] | 4,796 | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | [2] | 9,134 | |||
Buildings and Improvements | [2] | 23,955 | |||
Total | [1],[2] | 33,089 | |||
Accumulated Depreciation | [2] | 21,463 | |||
Real estate: | |||||
Balance, end of year | [1],[2] | 33,089 | |||
Accumulated depreciation: | |||||
Balance, end of year | [2] | $ 21,463 | |||
Westwood Plaza and Damascus Shopping Center [Member] | Westridge Square S/C, Frederick, MD [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 5 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Westridge Square S/C, Frederick, MD [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 31 years 6 months | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Westwood Plaza, Westwood, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 18,001 | ||||
Initial Cost to Company | |||||
Land | 6,889 | ||||
Buildings and Improvements | 6,416 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 2,389 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 6,889 | ||||
Buildings and Improvements | 8,805 | ||||
Total | [1] | 15,694 | |||
Accumulated Depreciation | 8,643 | ||||
Real estate: | |||||
Balance, end of year | [1] | 15,694 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 8,643 | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Westwood Plaza, Westwood, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 5 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Westwood Plaza, Westwood, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 31 years 6 months | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Preakness S/C, Wayne, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | $ 22,588 | ||||
Initial Cost to Company | |||||
Land | 9,280 | ||||
Buildings and Improvements | 24,217 | ||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | 2,799 | ||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 9,280 | ||||
Buildings and Improvements | 27,016 | ||||
Total | [1] | 36,296 | |||
Accumulated Depreciation | 13,174 | ||||
Real estate: | |||||
Balance, end of year | [1] | 36,296 | |||
Accumulated depreciation: | |||||
Balance, end of year | $ 13,174 | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Preakness S/C, Wayne, NJ [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 5 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | Preakness S/C, Wayne, NJ [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 39 years 6 months | ||||
Westwood Plaza and Damascus Shopping Center [Member] | The Rotunda, Baltimore, MD [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | [2] | $ 52,434 | |||
Initial Cost to Company | |||||
Land | [2] | 10,392 | |||
Buildings and Improvements | [2] | 14,634 | |||
Costs Capitalized Subsequent to Acquisition | |||||
Land | [2] | 232 | |||
Improvements | [2] | 46,078 | |||
Gross Amount at Which Carried at Close of Period | |||||
Land | [2] | 10,624 | |||
Buildings and Improvements | [2] | 60,712 | |||
Total | [1],[2] | 71,336 | |||
Accumulated Depreciation | [2] | 16,905 | |||
Cost for Federal income tax purposes | 163,200 | ||||
Real estate: | |||||
Balance, end of year | [1],[2] | 71,336 | |||
Accumulated depreciation: | |||||
Balance, end of year | [2] | $ 16,905 | |||
Westwood Plaza and Damascus Shopping Center [Member] | The Rotunda, Baltimore, MD [Member] | Minimum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 5 years | ||||
Westwood Plaza and Damascus Shopping Center [Member] | The Rotunda, Baltimore, MD [Member] | Maximum [Member] | |||||
Gross Amount at Which Carried at Close of Period | |||||
Life on Which Depreciation is Computed | 40 years | ||||
Land Leased [Member] | Rockaway, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | |||||
Initial Cost to Company | |||||
Land | 114 | ||||
Buildings and Improvements | |||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | |||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 114 | ||||
Buildings and Improvements | |||||
Total | [1] | 114 | |||
Accumulated Depreciation | |||||
Real estate: | |||||
Balance, end of year | [1] | 114 | |||
Accumulated depreciation: | |||||
Balance, end of year | |||||
Vacant Land [Member] | Rockaway, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | |||||
Initial Cost to Company | |||||
Land | 51 | ||||
Buildings and Improvements | |||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | |||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 51 | ||||
Buildings and Improvements | |||||
Total | [1] | 51 | |||
Accumulated Depreciation | |||||
Real estate: | |||||
Balance, end of year | [1] | 51 | |||
Accumulated depreciation: | |||||
Balance, end of year | |||||
Vacant Land [Member] | Franklin Lakes, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | |||||
Initial Cost to Company | |||||
Land | 224 | ||||
Buildings and Improvements | |||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | (156) | ||||
Improvements | |||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 68 | ||||
Buildings and Improvements | |||||
Total | [1] | 68 | |||
Accumulated Depreciation | |||||
Real estate: | |||||
Balance, end of year | [1] | 68 | |||
Accumulated depreciation: | |||||
Balance, end of year | |||||
Vacant Land [Member] | Wayne, NJ [Member] | |||||
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation [Line Items] | |||||
Encumbrances | |||||
Initial Cost to Company | |||||
Land | 286 | ||||
Buildings and Improvements | |||||
Costs Capitalized Subsequent to Acquisition | |||||
Land | |||||
Improvements | |||||
Gross Amount at Which Carried at Close of Period | |||||
Land | 286 | ||||
Buildings and Improvements | |||||
Total | [1] | 286 | |||
Accumulated Depreciation | |||||
Real estate: | |||||
Balance, end of year | [1] | 286 | |||
Accumulated depreciation: | |||||
Balance, end of year | |||||
[1] | Total cost for each property is the same for federal income tax purposes, with the exception of the Regency Club, Station Place and the Rotunda properties (Icon and The Rotunda) whose cost for federal income tax purposes is approximately $13.5 million, $4.2 million and $163.2 million, respectively. | ||||
[2] | The properties owned by Grande Rotunda, WestFREIT and Damascus Centre were sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively. See Note 17 to FREIT Maryland’s consolidated financial statements for additional details. |