Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2022 | Jan. 27, 2023 | Apr. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | ||
Trading Symbol | FREVS | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --10-31 | ||
Entity Common Stock, Shares Outstanding | 7,435,753 | ||
Entity Public Float | $ 102 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000036840 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Oct. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-25043 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 22-1697095 | ||
Entity Address, Address Line One | 505 Main Street | ||
Entity Address, Address Line Two | Suite 400 | ||
Entity Address, City or Town | Hackensack | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07601 | ||
Local Phone Number | 488-6400 | ||
City Area Code | 201 | ||
Title of 12(b) Security | Common stock, par value $0.01 per share | ||
Entity Interactive Data Current | Yes | ||
Auditor Firm ID | 274 | ||
Auditor Name | EisnerAmper LLP | ||
Auditor Location | New York, New York |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
ASSETS | ||
Real estate, at cost, net of accumulated depreciation | $ 95,875 | $ 270,634 |
Construction in progress | 688 | 665 |
Cash and cash equivalents | 49,578 | 35,891 |
Investment in tenancy-in-common | 18,798 | 19,383 |
Tenants' security accounts | 1,038 | 1,340 |
Receivables arising from straight-lining of rents | 790 | 3,747 |
Accounts receivable, net of allowance for doubtful accounts of $1,126 and $966 as of October 31, 2022 and 2021, respectively | 802 | 1,622 |
Secured loans receivable (related party) | 5,292 | |
Funds held in post-closing escrow | 6,251 | |
Prepaid expenses and other assets | 3,176 | 5,493 |
Deferred charges, net | 244 | 2,038 |
Interest rate swap contracts | 1,409 | |
Total Assets | 178,649 | 346,105 |
Liabilities: | ||
Mortgages payable, including deferred interest of $222 and $358 as of October 31, 2022 and 2021, respectively | 139,217 | 301,276 |
Less unamortized debt issuance costs | 1,145 | 1,400 |
Mortgages payable, net | 138,072 | 299,876 |
Due to affiliate | 3,252 | |
Deferred director compensation payable | 2,317 | 2,475 |
Accounts payable and accrued expenses | 1,306 | 2,375 |
Dividends payable | 10,573 | 686 |
Tenants' security deposits | 1,285 | 2,039 |
Deferred revenue | 357 | 1,143 |
Interest rate cap and swap contracts | 2,308 | |
Total Liabilities | 153,910 | 314,154 |
Commitments and contingencies (Note 7) | ||
Common Equity: | ||
Preferred stock with par value of $0.01 per share: 5,000,000 and 0 shares authorized and issued, respectively, at October 31, 2022 and 2021 | ||
Common stock with par value of $0.01 per share: 20,000,000 shares authorized at October 31, 2022 and 2021; 7,048,344 and 6,860,048 shares issued plus 272,882 and 175,923 vested share units granted to Directors at October 31, 2022 and 2021, respectively | 73 | 71 |
Additional paid-in-capital | 30,635 | 25,556 |
(Accumulated deficit) Retained earnings | (6,208) | 12,963 |
Accumulated other comprehensive income (loss) | 1,409 | (2,017) |
Total Common Equity | 25,909 | 36,573 |
Noncontrolling interests in subsidiaries | (1,170) | (4,622) |
Total Equity | 24,739 | 31,951 |
Total Liabilities and Equity | $ 178,649 | $ 346,105 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts (in Dollars) | $ 1,126 | $ 966 |
Deferred interest (in Dollars) | $ 222 | $ 358 |
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 0 |
Preferred stock, shares issued | 5,000,000 | 0 |
Common stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,048,344 | 6,860,048 |
Common vested share units to Directors | 272,882 | 175,923 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Revenue: | |||
Rental income | $ 28,453 | $ 44,160 | $ 46,184 |
Reimbursements | 2,383 | 5,468 | 5,840 |
Sundry income | 435 | 663 | 703 |
Total revenue | 31,271 | 50,291 | 52,727 |
Expenses: | |||
Operating expenses | 12,631 | 17,249 | 15,805 |
Third party transaction costs (See Note 14) | 4,606 | ||
Management fees | 1,451 | 2,178 | 2,251 |
Real estate taxes | 6,202 | 8,062 | 8,687 |
Depreciation | 3,995 | 9,300 | 10,341 |
Tenant improvement write-off due to COVID-19 | 7,277 | ||
Total expenses | 24,279 | 36,789 | 48,967 |
Investment income | 358 | 116 | 204 |
Net gain on sale of Maryland properties | 68,771 | ||
Net realized gain on Wayne PSC interest rate swap termination | 1,415 | ||
Gain on deconsolidation of subsidiary | 27,680 | ||
Loss on investment in tenancy-in-common | (228) | (295) | (202) |
Interest expense including amortization of deferred financing costs | (8,064) | (12,276) | (14,122) |
Net income | 69,244 | 1,047 | 17,320 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (23,252) | (120) | 3,233 |
Net income attributable to common equity | $ 45,992 | $ 927 | $ 20,553 |
Earnings per share: | |||
Basic (in Dollars per share) | $ 6.52 | $ 0.13 | $ 2.94 |
Diluted (in Dollars per share) | $ 6.45 | $ 0.13 | $ 2.94 |
Weighted average shares outstanding: | |||
Basic (in Shares) | 7,055 | 7,019 | 6,992 |
Diluted (in Shares) | 7,132 | 7,022 | 6,994 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 69,244 | $ 1,047 | $ 17,320 |
Other comprehensive income: | |||
Unrealized gain (loss) on interest rate cap and swap contracts before reclassifications | 4,306 | 1,360 | (3,553) |
Amount reclassified from accumulated other comprehensive income to realized gain on termination of interest rate swap | (1,415) | ||
Amount reclassified from accumulated other comprehensive income to interest expense | 826 | 1,256 | 755 |
Net unrealized gain (loss) on interest rate cap and swap contracts | 3,717 | 2,616 | (2,798) |
Comprehensive income | 72,961 | 3,663 | 14,522 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (23,252) | (120) | 3,233 |
Other comprehensive (income) loss : | |||
Unrealized (gain) loss on interest rate cap and swap contracts attributable to noncontrolling interests in subsidiaries | (291) | (647) | 852 |
Comprehensive (income) loss attributable to noncontrolling interests in subsidiaries | (23,543) | (767) | 4,085 |
Comprehensive income attributable to common equity | $ 49,418 | $ 2,896 | $ 18,607 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Beneficial Interest | Treasury Shares at Cost | Common Stock | Additional Paid-In -Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Total Common Equity | Noncontrolling Interests in Subsidiaries | |
Balance at Oct. 31, 2019 | $ 16,048 | $ 28,847 | $ (4,330) | $ (6,762) | $ (2,040) | $ 15,715 | $ 333 | |||
Balance (in Shares) at Oct. 31, 2019 | 7,185 | 206 | ||||||||
Stock based compensation expense | 46 | $ 46 | 46 | |||||||
Vested share units granted to Directors, including dividends declared payable in share units | 534 | $ 534 | 534 | |||||||
Vested share units granted to Directors, including dividends declared payable in share units (in Shares) | 29 | |||||||||
Vested share units issued to consultant and retired Directors | [1] | $ (1,467) | $ 1,467 | |||||||
Vested share units issued to consultant and retired Directors (in Shares) | [1] | (69) | (69) | |||||||
Deconsolidation of subsidiary | 3,596 | 3,596 | ||||||||
Distributions to noncontrolling interests in subsidiaries | (3,883) | (3,883) | ||||||||
Net income (loss) | 17,320 | 20,553 | 20,553 | (3,233) | ||||||
Net unrealized gain on interest rate cap and swap contracts | (2,798) | (1,946) | (1,946) | (852) | ||||||
Balance at Oct. 31, 2020 | 30,863 | $ 27,960 | $ (2,863) | 13,791 | (3,986) | 34,902 | (4,039) | |||
Balance (in Shares) at Oct. 31, 2020 | 7,145 | 137 | ||||||||
Stock based compensation expense | 42 | $ 31 | 11 | 42 | ||||||
Vested share units granted to Directors, including dividends declared payable in share units | 488 | $ 231 | $ 1 | 256 | 488 | |||||
Vested share units granted to Directors, including dividends declared payable in share units (in Shares) | 14 | 14 | ||||||||
Vested share units issued to consultant and retired Directors | [1] | $ (72) | $ 72 | |||||||
Vested share units issued to consultant and retired Directors (in Shares) | [1] | (4) | (4) | |||||||
Distributions to noncontrolling interests in subsidiaries | (1,350) | (1,350) | ||||||||
Net income (loss) | 1,047 | 927 | 927 | 120 | ||||||
Dividends declared, including payable in share units | (1,755) | (1,755) | (1,755) | |||||||
Reincorporation of FREIT with and into FREIT Maryland (See Note 1) | $ (28,150) | $ 2,791 | $ 70 | 25,289 | ||||||
Reincorporation of FREIT with and into FREIT Maryland (See Note 1) (in Shares) | (7,155) | (133) | 7,022 | |||||||
Net unrealized gain on interest rate cap and swap contracts | 2,616 | 1,969 | 1,969 | 647 | ||||||
Balance at Oct. 31, 2021 | 31,951 | $ 71 | 25,556 | 12,963 | (2,017) | 36,573 | (4,622) | |||
Balance (in Shares) at Oct. 31, 2021 | 7,036 | |||||||||
Stock based compensation expense | 1,192 | 1,192 | 1,192 | |||||||
Vested share units granted to Directors, including dividends declared payable in share units | 1,861 | $ 1 | 1,860 | 1,861 | ||||||
Vested share units granted to Directors, including dividends declared payable in share units (in Shares) | 100 | |||||||||
Stock options exercised | 2,028 | $ 1 | 2,027 | 2,028 | ||||||
Stock options exercised (in Shares) | 185 | |||||||||
Distributions to noncontrolling interests in subsidiaries | (20,091) | (20,091) | ||||||||
Net income (loss) | 69,244 | 45,992 | 45,992 | 23,252 | ||||||
Dividends declared, including payable in share units | (65,163) | (65,163) | (65,163) | |||||||
Net unrealized gain on interest rate cap and swap contracts | 3,717 | 3,426 | 3,426 | 291 | ||||||
Balance at Oct. 31, 2022 | $ 24,739 | $ 73 | $ 30,635 | $ (6,208) | $ 1,409 | $ 25,909 | $ (1,170) | |||
Balance (in Shares) at Oct. 31, 2022 | 7,321 | |||||||||
[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 (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Stock dividends payable | $ 1,741 | $ 42 |
Dividends declared, per share | $ 9.2 | $ 0.25 |
Directors | ||
Stock dividends payable | $ 1,741 | $ 42 |
Dividends declared, per share | $ 9.2 | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Operating activities: | |||
Net income | $ 69,244 | $ 1,047 | $ 17,320 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net gain on sale of Maryland properties | (68,771) | ||
Depreciation | 3,995 | 9,300 | 10,341 |
Tenant improvement write-off due to COVID-19 | 7,277 | ||
Amortization | 1,104 | 1,653 | 1,819 |
Stock based compensation expense | 1,192 | 42 | 46 |
Director fees, consultant fee and related interest paid in stock units | 120 | 446 | 534 |
Gain on deconsolidation of subsidiary | (27,680) | ||
Loss on investment in tenancy-in-common | 228 | 295 | 202 |
Deferred rents - straight line rent | (18) | 230 | 397 |
Deferred real estate tax appeal fees | 35 | ||
Bad debt expense | 361 | 361 | 619 |
Changes in operating assets and liabilities: | |||
Tenants' security accounts | (754) | (75) | (285) |
Accounts receivable, prepaid expenses and other assets | 2,571 | (363) | (1,527) |
Accounts receivable, prepaid expenses and other assets director compensation payable | (1,159) | (7) | (5,452) |
Deferred revenue | (786) | 100 | (300) |
Due to affiliate - accrued interest | (47) | (808) | 216 |
Deferred interest on mortgages | (2) | 360 | |
Net cash provided by operating activities | 7,315 | 12,219 | 3,887 |
Investing activities: | |||
Proceeds from sale of Maryland properties, net | 245,763 | ||
Proceeds from payment of secured loans receivable inclusive of accrued interest | 5,316 | ||
Capital improvements - existing properties | (1,570) | (1,936) | (2,048) |
Deferred leasing costs | (173) | (279) | (250) |
Distribution from investment in tenancy-in-common | 357 | 423 | 455 |
Deconsolidation of subsidiary cash and cash equivalents | (1,383) | ||
Net cash provided by (used in) investing activities | 249,693 | (1,792) | (3,226) |
Financing activities: | |||
Repayment of mortgages | (194,559) | (5,962) | (22,910) |
Proceeds from mortgage loan refinancings | 32,500 | 25,000 | |
Proceeds from exercise of stock options | 2,028 | ||
Deferred financing costs | (691) | (699) | (482) |
Due to affiliate - loan proceeds | 300 | ||
Due to affiliate - loan repayment | (3,505) | (1,861) | |
Dividends paid | (53,535) | (1,027) | (1,357) |
Distributions to noncontrolling interests in subsidiaries | (20,091) | (1,350) | (3,883) |
Net cash used in financing activities | (237,553) | (10,899) | (3,632) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 19,455 | (472) | (2,971) |
Cash, cash equivalents and restricted cash, beginning of year | 39,045 | 39,517 | 42,488 |
Cash, cash equivalents and restricted cash, end of year | 58,500 | 39,045 | 39,517 |
Supplemental disclosure of cash flow data: | |||
Interest paid | 7,134 | 10,965 | 12,365 |
Supplemental schedule of non cash activities: | |||
Commercial tenant security deposits applied to accounts receivable | 10 | 387 | |
Investing activities: | |||
Accrued capital expenditures, construction costs and pre-development costs | 33 | 125 | 179 |
Financing activities: | |||
Retirement of treasury stock | 2,791 | ||
Dividends declared but not paid | 10,573 | 686 | |
Dividends paid in share units | 1,741 | 42 | |
Vested share units issued to consultant and retired director | 72 | 1,467 | |
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) | ||
The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets: | |||
Cash and cash equivalents | 49,578 | 35,891 | 36,860 |
Tenants' security accounts | 1,038 | 1,340 | 1,408 |
Funds held in post-closing escrow | 6,251 | ||
Mortgage escrows (included in prepaid expenses and other assets) | 1,633 | 1,814 | 1,249 |
Total cash, cash equivalents and restricted cash | $ 58,500 | $ 39,045 | $ 39,517 |
Organization and significant ac
Organization and significant accounting policies | 12 Months Ended |
Oct. 31, 2022 | |
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 was organized on November 1, 1961 as a New Jersey Business Trust. On July 1, 2021, First Real Estate Investment Trust of New Jersey 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 changed the law applicable to First Real Estate Investment Trust of New Jersey’s affairs from New Jersey law to Maryland law and was accomplished by the merger of First Real Estate Investment Trust of New Jersey with and into its wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. (“FREIT”, “Trust”, “us”, “we”, “our” or the “Company”), a Maryland corporation. As a result of the Reincorporation, the separate existence of First Real Estate Investment Trust of New Jersey has ceased and FREIT has succeeded to all the business, properties, assets and liabilities of First Real Estate Investment Trust of New Jersey. Holders of shares of beneficial interest in First Real Estate Investment Trust of New Jersey have received one newly issued share of common stock of FREIT for each share of First Real Estate Investment Trust of New Jersey that they own, without any action of stockholders required and all treasury stock held by First Real Estate Investment Trust of New Jersey was retired. FREIT is engaged in owning residential and commercial income producing properties located in New Jersey and New York. FREIT has elected to be taxed as a Real Estate Investment Trust under the provisions of Sections 856-860 of the Internal Revenue Code, as amended. Accordingly, FREIT does not pay federal income tax on income whenever income distributed to stockholders is equal to at least 90% of real estate investment trust taxable income. Further, FREIT pays no federal income tax on capital gains distributed to stockholders. FREIT is subject to federal income tax on undistributed taxable income and capital gains. FREIT may make an annual election under Section 858 of the Internal Revenue Code to apply part of the regular dividends paid in each respective subsequent year as a distribution for the immediately preceding year. Recently issued accounting standards: In 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 and the following subsidiaries in which FREIT has a controlling financial interest, including two LLCs in which FREIT is the managing member with a 40% ownership interest: Subsidiary Owning Entity % Ownership Year Acquired/Organized Westwood Hills, LLC FREIT 40% 1994 Wayne PSC, LLC FREIT 40% 2002 Damascus Centre, LLC FREIT 70% 2003 Grande Rotunda, LLC FREIT 60% 2005 WestFREIT, Corp FREIT 100% 2007 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 The consolidated financial statements include 100% of each subsidiary’s assets, liabilities, operations and cash flows, with the interests not owned by FREIT reflected as "noncontrolling interests in subsidiaries”. All significant intercompany accounts and transactions have been eliminated in consolidation. Investment in tenancy-in-common: On February 28, 2020, FREIT reorganized its subsidiary S and A Commercial Associates Limited Partnership (“S&A”) from a partnership into a tenancy-in-common form of ownership (“TIC”). Prior to this reorganization, FREIT owned a 65% 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 consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, liabilities, operations and cash flows with the interest not owned by FREIT reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT ultimately acquired a 65% undivided interest in the Pierre Towers property, which was formerly owned by S&A. Based on the guidance of Accounting Standards Codification (“ASC”) 810, “Consolidation” Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Cash and cash equivalents: Financial instruments that potentially subject FREIT to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits. Real estate development costs: It is FREIT’s policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT ceases capitalization of these costs when the project or portion thereof becomes operational, or when construction has been postponed. In the event of a postponement, capitalization of these costs will recommence once construction on the project resumes. Depreciation: Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. Impairment of long-lived assets: Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. There were no impairments of long-lived assets for the fiscal years ended October 31, 2022 and 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 of approximately $7.3 million (with a consolidated impact to FREIT of approximately $4.4 million) related to Cobb Theatre were deemed impaired and written off. (See Note 16) 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 (which approximates the effective interest method) by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $971,000, $1,109,000 and $1,089,000 in Fiscal 2022, 2021 and 2020, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. Revenue recognition: Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT and commercial tenants generally provide for additional rentals and reimbursements 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 when earned, or ratably over the appropriate period. Interest rate cap and swap contracts: FREIT utilizes derivative financial instruments to reduce interest rate risk. FREIT does not hold or issue derivative financial instruments for trading purposes. FREIT recognizes all derivatives as either assets or liabilities in the consolidated balance sheets and measures those instruments at fair value. Changes in fair value of those instruments, which qualify as cash flow hedges, are reported in other comprehensive income. (See Note 6) Advertising: FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $234,000, $421,000 and $297,000 in Fiscal 2022, 2021 and 2020, respectively. Stock-based compensation: FREIT has a stock-based compensation plan that was approved by FREIT’s Board of Directors (the “Board”), and ratified by FREIT’s stockholders. Stock based awards are accounted for based on their grant-date fair value. (See Note 10) |
Maryla property dispositions
Maryla property dispositions | 12 Months Ended |
Oct. 31, 2022 | |
Maryla property dispositions [Abstract] | |
Maryla property dispositions | Note 2 – Maryland property dispositions: On November 22, 2021, certain affiliates (the “Maryland Sellers”) of FREIT entered into a Purchase and Sale Agreement (the “Maryland Purchase and Sale Agreement”) with MCB Acquisition Company, LLC (the “Maryland Purchaser”), a third party, pursuant to which the Maryland Sellers agreed to sell three properties to the Maryland 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 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 “Maryland 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 of $2,723,000 was to account for improvements and repairs to the Maryland Properties and miscellaneous items identified by the Maryland Purchaser in the course of its due diligence inspection. Additionally, the Maryland Purchaser was obligated under the Maryland Purchase and Sale Agreement to deposit a total of $15,526,731 in escrow with respect to certain leases at the Maryland Properties, which have not been executed or where the rent commencement date has not occurred or economic obligations of the Maryland Sellers under certain leases remain unpaid. Although there can be no assurance, a portion of the $15,526,731 escrow deposit (the “Maryland Purchaser Escrow Payment”) may be paid to the Maryland Sellers depending upon the outcome of construction and leasing activities at the Maryland Properties. The Maryland Purchaser Escrow Payment Agreement provides for among other things, monthly disbursements from escrow to the Maryland Purchaser related to the aforementioned tenant lease agreements until the earlier of (i) the rent commencement date of the respective tenant lease agreements or (ii) 5-years from the date of the agreement. Release and amounts of escrowed funds to FREIT, generally, is contingent on the success and timing of future leasing activities at the Maryland Properties. On December 30, 2021, the sale of the Rotunda Property, which had a net book value of approximately $136.1 million, was consummated by Grande Rotunda and the Maryland Purchaser for a purchase price of $191,080,598. Grande Rotunda received net proceeds from the sale of approximately $36.5 million (inclusive of approximately $0.7 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), after payment of related mortgage debt in the amount of $116.5 million, payment of loans (including interest) to each of the equity owners in Grande Rotunda (FREIT with a 60% interest and Rotunda 100, LLC (“Rotunda 100”) with a 40% interest) in the amount of approximately $31 million, with FREIT receiving approximately $27.7 million, and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. (“Hekemian & Co., Inc.”) of approximately $4.8 million (see Note 8). In addition, the Maryland Purchaser deposited a total of $14,026,401 of the Maryland Purchaser Escrow Payment in escrow with respect to certain leases at the Rotunda Property, which have not been executed or where the rent commencement date has not occurred or economic obligations of Grande Rotunda under certain leases remain unpaid. As of October 31, 2022, approximately $710,000 of these funds has been released from escrow to Grande Rotunda. The escrow and related gain on sale were reduced by approximately $1.2 million due to a change in estimate in the second quarter of Fiscal 2022 related to a change in the timing of anticipated rent commencement dates for certain tenants, which will reduce the escrowed funds available to be released to Grande Rotunda. Approximately $6.3 million of remaining funds are held in a post-closing escrow for rents anticipated to be fully released in Fiscal 2023 and are included in “Funds held in post-closing escrow” on the accompanying consolidated balance sheet as of October 31, 2022. The net proceeds from the sale were distributed to the equity owners in Grande Rotunda with FREIT receiving approximately $21.4 million based on its 60% interest in Grande Rotunda. The sale of the Rotunda Property resulted in a net gain of approximately $50 million (as adjusted) which includes approximately $7 million of proceeds released and anticipated to be released from funds held in escrow, a write-off of the straight-line rent receivable of approximately $1.8 million and a write-off of unamortized lease commissions of approximately $1.1 million. As of October 31, 2022, secured loans including accrued interest made by certain members in Rotunda 100 of approximately $5.3 million were repaid to FREIT. On January 7, 2022, the sale of the Westridge Square Property, which had a net book value of approximately $11.5 million, was consummated by WestFREIT and the Maryland Purchaser for a purchase price of $20,984,604. WestFREIT received net proceeds from the sale of approximately $0.1 million (inclusive of approximately $0.8 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), after payment of related mortgage debt in the amount of approximately $21.1 million and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. of approximately $0.5 million (see Note 8). In addition, the Maryland Purchaser deposited a total of $1,015,396 of the Maryland Purchaser Escrow Payment in escrow with respect to certain leases at the Westridge Square Property, which had not been executed or where the rent commencement date had not occurred or economic obligations of WestFREIT under certain leases remained unpaid. As of October 31, 2022, approximately $821,000 of these funds have been released from escrow with no remaining funds held in post-closing escrow for rents anticipated to be released. The sale of the Westridge Square Property resulted in a net gain of approximately $8.7 million, which includes approximately $0.8 million of proceeds released from funds held in escrow, a write-off of the straight-line rent receivable of approximately $0.5 million and a write-off of unamortized lease commissions of approximately $0.3 million. On January 10, 2022, the sale of the Damascus Property, which had a net book value of approximately $24.6 million, was consummated by Damascus Centre and the Maryland Purchaser for a purchase price of $36,685,067. Damascus Centre received net proceeds from the sale of approximately $17.3 million (inclusive of approximately $0.4 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), after payment of related mortgage debt in the amount of approximately $18.2 million and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on this loan and certain transactional expenses and transfer taxes including a brokerage fee due to Hekemian & Co. of approximately $0.9 million (see Note 8). In addition, the Maryland Purchaser deposited a total of $484,934 of the Maryland Purchaser Escrow Payment in escrow with respect to certain leases at the Damascus Property, which had not been executed or where the rent commencement date had not occurred or economic obligations of Damascus Centre under certain leases remained unpaid. As of October 31, 2022, approximately $415,000 of these funds have been released from escrow with no remaining funds held in post-closing escrow for rents anticipated to be released. The net proceeds from the sale were distributed to the partners in Damascus Centre with FREIT receiving approximately $11.8 million based on its 70% interest in Damascus Centre. The sale of the Damascus Property resulted in a net gain of approximately $10.1 million, which includes approximately $0.4 million of proceeds released from funds held in escrow, a write-off of the straight-line rent receivable of approximately $0.6 million and a write-off of unamortized lease commissions of approximately $0.3 million. In summary, the sale of the Maryland Properties having a total net book value of $172.2 million was consummated by the Maryland Sellers and the Maryland Purchaser for a purchase price of $248,750,269, after giving effect to the $15,526,731 Maryland Purchaser Escrow Payment. This sale resulted in net proceeds of approximately $53.9 million (inclusive of approximately $1.9 million in funds released from the Maryland Purchaser Escrow Payment during the second quarter of Fiscal 2022), after payment of related mortgage debt in the amount of $155.8 million and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on the Damascus Property loan, payment of loans (including interest) to each of the equity owners in Grande Rotunda in the amount of approximately $31 million and certain transactional expenses and transfer taxes including brokerage fees due to Hekemian & Co. of approximately $6.2 million. As of October 31, 2022, approximately $1,946,000 of the Maryland Purchaser Escrow Payment has been released from escrow to the Maryland Sellers. The escrow and related gain on sale were reduced by approximately $1.2 million due to a change in the second quarter of Fiscal 2022 related to a change in the timing of anticipated rent commencement dates for certain tenants, which will reduce the escrowed funds available to be released to Grande Rotunda. Approximately $6.3 million of remaining funds are held in a post-closing escrow for rents anticipated to be fully released in Fiscal 2023 and are included in “Funds held in post-closing escrow” on the accompanying consolidated balance sheet as of October 31, 2022. The sale of the Maryland Properties resulted in a net gain of approximately $68.8 million (as adjusted) (with a consolidated impact to FREIT of approximately $45.6 million) which includes approximately $8.2 million of proceeds released and anticipated to be released from funds held in escrow, a write-off of the straight-line rent receivable of approximately $2.9 million and a write-off of unamortized lease commissions of approximately $1.7 million. On August 4, 2022, FREIT’s Board declared a special, extraordinary, non-recurring cash distribution of approximately $51.5 million, or $7.50 per share, which was paid on August 30, 2022, to stockholders of record on August 16, 2022 (with an ex-dividend date of August 31, 2022). This distribution represented most of the net proceeds of FREIT’s sale of its portfolio of Maryland Properties. As the disposal of the Maryland Properties did not represent a strategic shift that would have a major impact on FREIT’s operations or financial results, the properties’ operations were not reflected as discontinued operations in the accompanying consolidated financial statements. |
Investment in tenancy-in-common
Investment in tenancy-in-common | 12 Months Ended |
Oct. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in tenancy-in-common | Note 3 – Investment in tenancy-in-common: On February 28, 2020, FREIT reorganized S&A from a partnership into a TIC. Prior to this reorganization, FREIT 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 consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, liabilities, operations and cash flows with the interest not owned by FREIT reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT ultimately acquired a 65% undivided interest in the Pierre Towers property, which was formerly owned by S&A. Based on the guidance of ASC 810, “ Consolidation FREIT’s investment in the TIC was approximately $18.8 million, $19.4 million and $20.1 million at October 31, 2022, 2021 and 2020, respectively, with a loss on investment of approximately $228,000, 295,000 and $202,000, respectively, in the accompanying consolidated statements of income for the fiscal years ended October 31, 2022, 2021 and 2020, respectively. Hekemian & Co. manages the Pierre Towers property pursuant to a management agreement between the owners of the TIC and Hekemian & Co. dated as of February 28, 2020, which was for an initial term of one (1) year and which renews for successive one (1) year terms unless either party gives written notice of termination to the other party at least sixty (60) days prior to the end of the then-current term. The management agreement will renew for a successive one (1) year term 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 $402,000 and $375,000 for the fiscal years ended October 31, 2022 and 2021, respectively, and $241,000 for the period from February 28, 2020 through October 31, 2020. Hekemian & Co. management fees outstanding at October 31, 2022 and 2021 were approximately $35,100 and $32,500, 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, charged to operations, were approximately $40,000 and $51,000 for the fiscal years ended October 31, 2022 and 2021, respectively, and $26,000 for the period from February 28, 2020 through October 31, 2020. The following table summarizes the balance sheets of the Pierre Towers property as of October 31, 2022 and 2021, accounted for by the equity method: October 31, October 31, 2022 2021 (In Thousands of Dollars) Real estate, net $ 76,042 $ 78,023 Cash and cash equivalents 2,051 1,338 Tenants' security accounts 454 484 Receivables and other assets 583 510 Total assets $ 79,130 $ 80,355 Mortgages payable, net of unamortized debt issuance costs $ 49,425 $ 49,691 Accounts payable and accrued expenses 178 261 Tenants' security deposits 462 484 Deferred revenue 145 99 Equity 28,920 29,820 Total liabilities & equity $ 79,130 $ 80,355 FREIT's investment in TIC (65% interest) $ 18,798 $ 19,383 The following table summarizes the statements of operations of the Pierre Towers property for the fiscal years ended October 31, 2022 and 2021 and for the period from February 28, 2020 through October 31, 2020, accounted for by the equity method: For the period from Year Ended Year Ended February 28, 2020 October 31, 2022 October 31, 2021 through October 31, 2020 (In Thousands of Dollars) Revenues $ 8,028 $ 7,627 $ 4,981 Operating expenses 4,594 4,311 2,786 Depreciation 2,183 2,166 1,435 Operating income 1,251 1,150 760 Interest expense including amortization of deferred financing costs 1,601 1,604 1,070 Net loss $ (350 ) $ (454 ) $ (310 ) FREIT's loss on investment in TIC (65% interest) $ (228 ) $ (295 ) $ (202 ) |
Real estate
Real estate | 12 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Real estate | Note 4 - Real estate: Real estate consists of the following: Range of Estimated October 31, Useful Lives 2022 2021 (In Thousands of Dollars) Land $ 40,813 $ 75,688 Unimproved land 405 405 Apartment buildings 7-40 years 69,403 156,408 Commercial buildings/shopping centers 5-40 years 42,740 151,598 Equipment/furniture 5-15 years 2,174 2,156 Total real estate, gross 155,535 386,255 Less: accumulated depreciation 59,660 115,621 Total real estate, net $ 95,875 $ 270,634 |
Mortgages payable and credit li
Mortgages payable and credit line | 12 Months Ended |
Oct. 31, 2022 | |
Mortgages payable and credit line [Abstract] | |
Mortgages payable and credit line | Note 5 – Mortgages payable and credit line: October 31, 2022 October 31, 2021 Principal (Including Unamortized Principal (Including Unamortized (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 7,500 $ 172 $ 14,453 $ 50 Westwood, NJ (B) 17,274 8 18,001 39 Wayne, NJ (C) 28,815 330 28,815 379 River Edge, NJ (D) 9,291 19 9,545 36 Red Bank, NJ (E) 11,750 78 11,971 93 Wayne, NJ (F) 25,000 431 22,588 172 Damascus, MD (G) — — 18,274 101 Middletown, NY (H) 14,587 71 14,921 104 Total fixed rate 114,217 1,109 138,568 974 Westwood, NJ (I) 25,000 — 25,000 220 Frederick, MD (J) — — 21,188 30 Baltimore, MD (K) — — 116,520 105 Line of credit - Provident Bank (L) — 36 — 71 Total variable rate 25,000 36 162,708 426 Total $ 139,217 $ 1,145 $ 301,276 $ 1,400 (A) On December 30, 2021, FREIT refinanced its $14.4 million loan (which would have matured on February 1, 2022) with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn upon in the amount of $7,500,000 for corporate needs. This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT 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 a result of the reduction in the principal amount, 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. The mortgage is secured by a residential building in Rockaway, New Jersey having a net book value of approximately $14,228,000 as of October 31, 2022. (B) On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8.0 million, with a new mortgage loan held by Valley National Bank in the amount of $22,750,000, which is payable in monthly installments of $129,702 including interest at 4.75% through February 1, 2023 at which time the outstanding balance is due. The mortgage is secured by a retail building in Westwood, New Jersey having a net book value of approximately $7,062,000 as of October 31, 2022. The Company is in the process of extending this loan with the current lender, Valley National Bank, for one (1) year. Under the terms and conditions of this loan modification, the loan will be payable based on the existing monthly installments of $129,702 including a fixed interest rate based on the Wall Street Journal Prime at the time of the closing on this extension (currently approximately 7.00%). Additionally, FREIT will be required to prepay the annualized principal and interest payments for one (1) year, which will be held in an account at Valley National Bank and will be used to make monthly payments on the loan. Management expects this loan to be modified/extended, however, until such time as a definitive agreement providing for a modification/extension of this loan is entered into, there can be no assurance this loan will be modified/extended. As a result of the negative impact of the COVID-19 pandemic at this property, FREIT 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 sheets as of October 31, 2022 and 2021 and are due at the maturity of this loan. (C) On August 26, 2019, Berdan Court, LLC (“Berdan Court”), refinanced its $17 million loan (which matured on September 1, 2019) with a new lender in the amount of $28,815,000. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 6.09% to a fixed rate of 3.54% and (ii) net refinancing proceeds of approximately $11.6 million, which can be used for capital expenditures and general corporate purposes. The loan is interest-only for the first five years of the term with monthly installments of approximately $85,004 each month through September 1, 2024. Thereafter, monthly installments of principal plus interest totaling approximately $130,036 will be required each month until September 1, 2029 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Wayne, New Jersey having a net book value of approximately $1,593,000 as of October 31, 2022. (D) On November 19, 2013, FREIT refinanced mortgage loans scheduled to mature on December 1, 2013 with a new mortgage loan in the amount of $11,200,000 payable in monthly installments of $57,456 including interest at 4.54% through December 1, 2023 at which time the outstanding balance is due. The mortgage is secured by an apartment building in River Edge, New Jersey having a net book value of approximately $877,000 as of October 31, 2022. (E) On December 7, 2017, Station Place on Monmouth, LLC (“Station Place”) closed on a mortgage loan in the amount of $12,350,000 held by Provident Bank to purchase the Station Place property in Red Bank, New Jersey. Interest-only payments were required each month for the first two years of the term and thereafter, principal payments plus accrued interest were required each month through maturity. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. In order to minimize interest rate volatility during the term of the loan, Station Place entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment building in Red Bank, New Jersey having a net book value of approximately $18,245,000 as of October 31, 2022. (F) On July 22, 2022, Wayne PSC, LLC (“Wayne PSC”) refinanced its $22.1 million loan (inclusive of deferred interest of approximately $136,000), which would have matured on October 1, 2026, on its Preakness Shopping center located in Wayne, New Jersey with a new loan held by ConnectOne Bank in the amount of $25,000,000. This loan is interest-only based on a fixed interest rate of 5% and has a term of three years with a maturity date of August 1, 2025. Additionally, an interest reserve escrow was established at closing representing twelve months of interest of $1,250,000, which can be used to pay monthly interest on this loan with a requirement to replenish the escrow account back to $1,250,000 when the balance in the escrow account is reduced to three months of interest. This refinancing resulted in (i) annual debt service savings of approximately $340,000 due to interest-only payments; (ii) an increase in the interest rate from a fixed interest rate of 3.625% to a fixed interest rate of 5%; and (iii) net refinancing proceeds of approximately $1.1 million which can be used for capital expenditures and general corporate purposes. As part of the refinancing, Wayne PSC terminated the interest rate swap contract on the underlying loan resulting in a realized gain on the swap breakage of approximately $1.4 million, which was recorded as a realized gain on the accompanying consolidated statement of income for year ended October 31, 2022. (See Note 6 for additional details) The mortgage is secured by a shopping center in Wayne, New Jersey having a net book value of approximately $22,642,000 as of October 31, 2022 including approximately $0.7 million classified as construction in progress. As of October 31, 2022 the interest reserve escrow account has a balance of $931,000. (G) On December 26, 2012, Damascus Centre, LLC (“Damascus Centre”) refinanced its construction loan with long-term financing provided by People’s United Bank and the first tranche of the new loan was taken down in the amount of $20 million and on April 22, 2016 the second tranche of this loan was taken down in the amount of $2,320,000. The loan had a maturity date of January 3, 2023 and bore 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 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.) 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 2 for additional details.) (H) On December 29, 2014, FREIT Regency, LLC (“Regency”) closed on a $16.2 million mortgage loan with Provident Bank. The loan bears a floating interest rate equal to 125 basis points over the one-month BBA LIBOR and will mature on December 15, 2024. Interest-only payments had been required each month through December 15, 2017 and thereafter, principal payments of $27,807 (plus accrued interest) are required each month through maturity. In order to minimize interest rate volatility during the term of the loan, Regency entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 3.75% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment complex in Middletown, New York having a net book value of $17,652,000 as of October 31, 2022. (I) On September 30, 2020, Westwood Hills, LLC (“Westwood Hills”) refinanced its $19.2 million loan (which would have matured on November 1, 2020) with a new loan held by ConnectOne Bank in the amount of $25,000,000, with additional funding available in the amount of $250,000 for legal fees potentially incurred by the lender related to the lis pendens on this property. (See Note 14 for additional details in regards to the lis pendens.) This loan, is interest-only based on a floating rate at 400 basis points over the one-month LIBOR rate with a floor of 4.15% and had a maturity date of October 1, 2022 with the option of Westwood Hills to extend for two (2) additional six (6)-month periods from the maturity date, subject to certain provisions of the loan agreement. This refinancing resulted in: (i) a change in the annual interest rate from a fixed rate of 4.62% to a variable rate with a floor of 4.15% and (ii) net refinancing proceeds of approximately $5.6 million that were distributed to the partners in Westwood Hills with FREIT receiving approximately $2.2 million based on its 40% membership interest in Westwood Hills. On August 19, 2022, Westwood Hills, LLC exercised its right, pursuant to the loan agreement, to extend the term of its $25 million loan on its property located in Westwood, New Jersey, for an additional six (6) months from an initial maturity date of October 1, 2022 to a new maturity date of April 1, 2023. This loan was extended on the same terms and conditions as stated in the loan agreement and has one remaining six (6) month extension. As of October 31, 2022, $25,000,000 of this loan was drawn and outstanding and the interest rate was 7.13%. The mortgage is secured by an apartment building in Westwood, New Jersey having a net book value of approximately $7,864,000 as of October 31, 2022. (J) On April 28, 2017, WestFREIT, Corp. refinanced its $22 million mortgage loan held by Wells Fargo Bank, with a new mortgage loan from Manufacturer’s and Traders Trust Company (“M&T Bank”) in the amount of $23.5 million. The new loan had a floating interest rate equal to 275 basis points over the one-month LIBOR and had a maturity date of April 28, 2019 with the option to extend for 12 months. This refinancing resulted in: (i) a reduction in the annual interest rate from a fixed rate of 5.55% to a variable rate and (ii) net refinancing proceeds of approximately $1.1 million which have been used for general corporate purposes. The loan was payable in monthly installments of interest (as defined above) plus principal of $43,250 through May 2018 and principal of $45,250 from June 2018 through May 2019 at which time the outstanding balance became due. On April 3, 2019, WestFREIT, Corp. exercised its option to extend 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 required 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 had 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. On January 7, 2022, the property owned by WestFREIT was sold and a portion of the proceeds was used to pay off the approximately $21.1 million then outstanding balance of this loan. (See Note 2 for additional details.) (K) On February 7, 2018, Grande Rotunda, LLC (“Grande Rotunda”) refinanced its $115.3 million construction loan held by Wells Fargo with a new loan held by Aareal Capital Corporation in the amount of approximately $118.5 million. This loan bore a floating interest rate at 285 basis points over the one-month LIBOR rate and had a maturity date of February 6, 2021, with two one-year options to extend the maturity of this loan, subject to certain requirements as provided for in the loan agreement. Grande Rotunda had purchased an interest rate cap on LIBOR for the full amount that could have been drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for the first two years of this loan which matured on March 5, 2020. On February 28, 2020, Grande Rotunda purchased an interest rate cap on LIBOR, with an effective date of March 5, 2020, for the full amount that could have been drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for one year, which matured on March 5, 2021. 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. 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 2 for additional details.) (L) FREIT’s revolving line of credit provided by Provident Bank was renewed for a three-year term ending on October 31, 2023. Draws against the credit line can be used for working capital needs and standby letters of credit. Draws against the credit line are secured by mortgages on FREIT’s Franklin Crossing Shopping Center in Franklin Lakes, New Jersey and retail space in Glen Rock, New Jersey. The total line of credit is $13 million and the interest rate on the amount outstanding is based on a floating interest rate of prime minus 25 basis points with a floor of 3.75%. As of October 31, 2022 and 2021, there was no amount outstanding and $13 million was available under the line of credit. Certain of the Company’s mortgage loans and the line of credit contain financial covenants. The Company was in compliance with all of its financial covenants as of October 31, 2022. Fair value of long-term debt: The following table shows the estimated fair value and carrying value of FREIT’s long-term debt, net at October 31, 2022 and 2021: ($ in Millions) October 31, 2022 October 31, 2021 Fair Value $132.2 $301.6 Carrying Value, Net $138.1 $299.9 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, 2022 are as follows: Year Ending October 31, Amount 2023 $ 43,035 2024 $ 17,163 2025 $ 39,734 2026 $ 817 2027 $ 849 |
Interest rate cap and swap cont
Interest rate cap and swap contracts | 12 Months Ended |
Oct. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Interest rate cap and swap contracts | Note 6 - Interest rate cap and swap contracts: In accordance with “ Accounting Standards Codification Topic 815, Derivatives and Hedging ("ASC 815") 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. On December 30, 2021, the Rotunda property owned by Grande Rotunda was sold, a portion of the proceeds from the sale was used to pay off the $116.5 million then outstanding balance of the underlying loan and the corresponding interest rate cap on this loan matured with no settlement due at maturity. On January 10, 2022, the property owned by Damascus Centre was sold and a portion of the proceeds from the sale was used to pay off the $18.2 million then outstanding balance of the underlying loan and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on this loan which was included as interest expense on the accompanying consolidated statement of income for the year ended October 31, 2022. (See Note 2 for further details on the sales of these properties.) On June 17, 2022, Wayne PSC terminated its interest rate swap contract on its underlying loan held with People’s United Bank, which had a maturity date of October 2026, for a settlement amount of approximately $1.4 million. People’s United Bank held the proceeds from this settlement in escrow until the underlying loan was paid off in July 2022 and has been included as a realized gain on interest rate swap termination on the accompanying consolidated statement of income for the year ended October 31, 2022. (See Note 5 for further details.) For the year ended October 31, 2022, FREIT recorded an unrealized gain of approximately $3,717,000 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, 2022, there was an asset of approximately $611,000 for the Regency swap and $798,000 for the Station Place swap. For the year ended October 31, 2021, FREIT 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 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. 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, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 7 - Commitments and contingencies: Leases Commercial tenants: FREIT leases commercial space having a net book value of approximately $36.1 million at October 31, 2022 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 and rents from tenants for which collectability is deemed to be constrained, subsequent to October 31, 2022, is as follows: Year Ending October 31, Amount 2023 $ 5,620 2024 4,823 2025 4,134 2026 3,365 2027 2,206 Thereafter 4,118 Total $ 24,266 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, 2022 were not material. Residential tenants: Lease terms for residential tenants are usually one to two years. Environmental concerns The Westwood Plaza Shopping Center property is in a Flood Hazard Zone. FREIT maintains flood insurance in the amount of $500,000 for the subject property, which is the maximum available under the Flood Program for the property. Any reconstruction of that portion of the property situated in the flood hazard zone is subject to regulations promulgated by the New Jersey Department of Environmental Protection ("NJDEP"), which could require extraordinary construction methods. FREIT acquired the Westwood Plaza property in 1988, and the property has not experienced any flooding that gave rise to any claims under FREIT’s flood insurance in this time period. |
Management agreement, fees and
Management agreement, fees and transactions with related party | 12 Months Ended |
Oct. 31, 2022 | |
Management agreement, fees and transactions with related party [Abstract] | |
Management agreement, fees and transactions with related party | Note 8 - Management agreement, fees and transactions with related party: On April 10, 2002, FREIT and Hekemian & Co. executed a management agreement dated as of November 1, 2001 (“Management Agreement”) whereby Hekemian & Co. would continue as the managing agent for FREIT. The Management Agreement expires on October 31, 2023 and is automatically renewed for successive periods of two years unless either party gives not less than six (6) months prior notice of non-renewal. Hekemian & Co. currently manages all of the properties owned by FREIT and its affiliates, except for the office building at the Rotunda Property, which was sold on December 30, 2021 and was formerly managed by an independent third party management company. However, FREIT may retain other managing agents to manage properties acquired after April 10, 2002 and to perform various other duties such as sales, acquisitions, and development with respect to any or all properties. Hekemian & Co. does not serve as the exclusive property acquisition advisor to FREIT and is not required to offer potential acquisition properties exclusively to FREIT before acquiring those properties for its own account. The Management Agreement includes a detailed schedule of fees for those services, which Hekemian & 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 $1,429,000, $2,127,000, and $2,201,000 in Fiscal 2022, 2021 and 2020, 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. Such commissions and reimbursements amounted to approximately $701,000, $548,000 and $982,000 in Fiscal 2022, 2021 and 2020, respectively. Total Hekemian & Co. management fees outstanding at October 31, 2022 and 2021 were approximately $105,000 and $185,000, respectively, and included in accounts payable on the accompanying consolidated balance sheets. FREIT 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, charged to operations, were approximately $164,000, $209,000 and $190,000 in Fiscal 2022, 2021 and 2020, respectively. FREIT 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 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 bore interest at rates that floated at 225 basis points over the ninety (90) day LIBOR, as adjusted each November 1, February 1, May 1 and August 1. These loans were secured by the Hekemian & Co. employees’ interests in Rotunda 100 and were full recourse loans. Interest only payments were required to be made when billed. No principal payments were required during the term of the notes, except that the borrowers were required to pay to FREIT all refinancing proceeds and other cash flow they received from their interest in Grande Rotunda. These payments were 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, ninety (90) days after the borrower terminated employment with Hekemian & Co., at which time all outstanding unpaid principal and interest was 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 may advance to such employees from $2 million to $4 million. On June 4, 2015, the Board approved an extension of the maturity date of the secured loans to occur the earlier of (a) June 19, 2018 or (b) five days after the closing of a permanent mortgage loan secured by the Rotunda property. On December 7, 2017, the Board approved a further extension of the maturity dates of these loans to the date or dates upon which distributions of cash were 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 and accrued but unpaid interest of the Rotunda 100 notes was approximately $4,000,000 and $1,292,000, respectively, at October 31, 2021 and was included in secured loans receivable on the accompanying consolidated balance sheet. As of October 31, 2022, approximately $5.3 million of the secured loans receivable (including accrued interest) were repaid to FREIT with no outstanding balance remaining of principal or interest related to the Rotunda 100 notes. 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, Rotunda 100 had funded Grande Rotunda with approximately $3.3 million (including interest) which was included in “Due to affiliate” on the accompanying consolidated balance sheet. On December 30, 2021, the Rotunda Property, owned by Grande Rotunda, was sold and the net sales proceeds were distributed to the equity owners in Grande Rotunda. (See Note 2 for further details.) Grande Rotunda repaid approximately $31 million to the equity owners in Grande Rotunda resulting in a loan repayment to Rotunda 100 of approximately $3.3 million. As of October 31, 2022, all loans were repaid in full to each of the equity owners in Grande Rotunda. From time to time, FREIT 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. Separate fee arrangements are negotiated between Hekemian & Co. and FREIT with respect to such additional services. Such fees incurred during Fiscal 2022, 2021 and 2020 were approximately $6,388,000, $236,500 and $125,000, respectively. Fees incurred during Fiscal 2022 related to commissions to Hekemian & Co. for the following: $4,777,000 for the sale of the Rotunda Property; $917,000 for the sale of the Damascus Property; $525,000 for the sale of the Westridge Square Property; $94,000 for the refinancing of the loan on the Preakness Shopping Center; and $75,000 for the refinancing of the loan on the Boulders property. 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’s line of credit. Fees incurred during Fiscal 2020 related to commissions to Hekemian & Co. for the refinancing of the Westwood Hills loan. The commissions related to the sale of the Rotunda Property, the Damascus Property and the Westridge Square Property were charged against the gain on sale of the Maryland Properties (see Note 2) in the accompanying consolidated statement of income for the year ended October 31, 2022. The commissions for the refinancing of loans were deferred mortgage costs included in the unamortized debt issuance costs in the accompanying consolidated balance sheet as of October 31, 2022, 2021 and 2020. Robert S. Hekemian, Jr., Chief Executive Officer, President and a Director of FREIT, is the Chief Executive Officer of Hekemian & Co. David B. Hekemian, a Director of FREIT, is the President of Hekemian & Co. Allan Tubin, Chief Financial Officer and Treasurer of FREIT, is the Chief Financial Officer of Hekemian & Co. Robert S. Hekemian, the former Chairman and Chief Executive Officer of FREIT, served as a consultant to FREIT and Chairman of the Board and Chief Executive Officer of Hekemian & Co. prior to his death in December 2019. Director fee expense and/or executive compensation (including interest and dividends) incurred by FREIT for Fiscal 2022, 2021 and 2020 was approximately $0, $0 and $21,000, respectively, for Robert S. Hekemian, $831,000, $469,000 and $508,000 (including a $100,000 adjustment in Fiscal 2020 related to the final approved Fiscal 2019 compensation), respectively, for Robert S. Hekemian, Jr., $40,000, $30,000 and $26,000, respectively, for Allan Tubin and $150,000, $57,000 and $50,000, respectively, for David Hekemian. (See Note 11 to FREIT’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 of FREIT on April 5, 2018, FREIT entered into a consulting agreement with Mr. Hekemian, pursuant to which Mr. Hekemian provided consulting services to FREIT through December 2019. The consulting agreement obliged Mr. Hekemian to provide advice and consultation with respect to matters pertaining to FREIT and its subsidiaries, affiliates, assets and business for no fewer than 30 hours per month during the term of the agreement. FREIT paid Mr. Hekemian a consulting fee of $5,000 per month during the term of the consulting agreement, which was payable in the form of shares on a quarterly basis (i.e. in quarterly installments of $15,000). The number of shares to be issued for each quarterly installment of the consulting fee was determined by dividing the dollar amount of the consulting fee by the closing price of one share on the OTC Pink Open Market as of the close of trading on the last trading day of the calendar quarter with respect to which such consulting fee was payable. For Fiscal 2022, 2021 and 2020, consulting fee expense for Robert S. Hekemian was approximately $0, $0 and $8,000, respectively. FREIT owns a 40% equity interest in Wayne PSC and H-TPKE, LLC (“H-TPKE”) owns a 60% equity interest in Wayne PSC. An aggregate of approximately 73% of the membership interests in H-TPKE is controlled by: Robert S. Hekemian, Jr., the Chief Executive Officer, President and a Director of FREIT and a shareholder and officer of Hekemian & Co.; David B. Hekemian, a Director of FREIT and a shareholder and officer of Hekemian & Co.; the late Robert S. Hekemian, the former Chairman and Chief Executive Officer and consultant to FREIT and a former shareholder and former officer of Hekemian & Co.; members of the families of Robert S. Hekemian, Jr., David B. Hekemian and the late Robert S. Hekemian; and other employees of Hekemian & Co. On March 10, 2022, the equity owners in Wayne PSC, H-TPKE and FREIT, each entered into a grid promissory note for funding Wayne PSC up to $600,000 and $400,000, respectively, based on each owner’s respective pro-rata share of Wayne PSC. During May 2022, Wayne PSC required funding by each of the owners totaling $500,000, with each owner contributing its respective pro-rata share of Wayne PSC. As such, H-TPKE funded $300,000 and FREIT funded $200,000. Wayne PSC repaid these loans in full (including accrued interest) to each of the equity owners from the net proceeds received from the refinancing of the loan on the Preakness Shopping Center in July 2022 (See Note 2). |
Income taxes
Income taxes | 12 Months Ended |
Oct. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Note 9 - Income taxes: FREIT has elected to be treated as a REIT for federal income tax purposes and has distributed 143.8% of its ordinary taxable income and 100% of its capital gains from the sale of the Maryland Properties to its stockholders as dividends for the fiscal year ended October 31, 2022. FREIT distributed 92.4% 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 and such gains was recorded in FREIT’s consolidated financial statements for the fiscal years ended October 31, 2022, 2021 and 2020. As of October 31, 2022, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2019 remain open to examination by the major taxing jurisdictions. |
Equity incentive plan
Equity incentive plan | 12 Months Ended |
Oct. 31, 2022 | |
Equity Incentive Plan [Abstract] | |
Equity incentive plan | Note 10 - Equity Incentive Plan: On September 10, 1998, the Board approved FREIT's Equity Incentive Plan (the "Plan") which was ratified by FREIT's stockholders on April 7, 1999, whereby up to 920,000 of FREIT'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'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. 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 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 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 extended the term of the Plan from September 10, 2018 to September 10, 2028. As of October 31, 2022, 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 as discussed in Note 1. The following table summarizes stock option activity for Fiscal 2022, 2021 and 2020: Year Ended October 31, Year Ended October 31, Year Ended October 31, 2022 2021 2020 No. of Options Weighted Average No. of Options Weighted Average No. of Options Weighted Average Outstanding Exercise Price Outstanding Exercise Price Outstanding Exercise Price Options outstanding at beginning of year 310,740 $ 18.35 310,740 $ 18.35 310,740 $ 18.35 Options granted during year — — — — — — Options forfeited/cancelled during year — — — — — — Options exercised during year (184,600 ) (10.99 ) — — — — Options outstanding at end of year 126,140 $ 10.64 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 124,850 309,450 308,310 Options exercisable at end of year 116,540 292,540 276,340 On August 4, 2022, in connection with the Board’s approval of the special, extraordinary, non-recurring cash distribution (“Extraordinary Distribution”), the Compensation Committee of the Board recommended and the Board approved that (i) the option exercise price of options outstanding under the Plan be adjusted, by reason of the Extraordinary Distribution, in accordance with the terms of the Plan; and (ii) the exercise price of options outstanding under the Plan should be reduced by an amount equal to the excess, if any, of (x) the average of the closing price of FREIT’s shares, as reported by Yahoo Finance, for each business day during the period of five (5) business days prior to the ex-dividend date relating to the Extraordinary Distribution (August 31, 2022), over (y) the average of the closing price of FREIT’s shares, as reported by Yahoo Finance, for each business day during the period of five (5) business days following the ex-dividend date relating to the Extraordinary Distribution. (See Note 2 for additional details on the sale of the Maryland Properties.) On September 9, 2022, the Board approved a reduction of $7.50 per share in exercise price for the 310,740 options then outstanding under the Plan. As a result of this modification of the exercise price for stock options outstanding under the Plan, the Company revalued its stock options in accordance with ASC 718 and recorded an incremental stock compensation expense of approximately $1,174,000 in the fourth quarter of Fiscal 2022. For Fiscal 2022, 2021 and 2020, compensation expense related to stock options vested amounted to approximately $1,192,000, $42,000 and $46,000, respectively. At October 31, 2022, there was approximately $11,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining weighted average vesting period of approximately 0.7 years. The aggregate intrinsic value of options vested and expected to vest and options exercisable at October 31, 2022 was approximately $729,000 and $657,000, respectively. In Fiscal 2022, 184,600 options were exercised for an aggregate amount of approximately $2 million. |
Deferred fee plan
Deferred fee plan | 12 Months Ended |
Oct. 31, 2022 | |
Deferred fee plan [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 Deferred Fee Plan for its executive officers and directors, one of which provided for the issuance of share units payable in FREIT 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 shares on the date as set forth in the Deferred Fee Plan. For the years ended October 31, 2022 and 2021, the aggregate amounts of deferred director fees together with related interest and dividends were approximately $1,861,000 and $488,000, respectively, which have been paid through the issuance of 100,655 and 27,176, vested FREIT share units, respectively, based on the closing price of FREIT shares on the dates as set forth in the Deferred Fee Plan. For the years ended October 31, 2022, 2021 and 2020, FREIT has charged as expense approximately $120,000, $446,000 and $526,000, respectively, representing deferred director fees and interest, and the balance of approximately $1,741,000, $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 would be paid in a lump sum or in annual installments over a period not to exceed 10 years, at the election of the participant. As of October 31, 2022 and 2021, approximately $1,366,000 and $1,454,000, respectively, of fees has been deferred together with accrued interest of approximately $951,000 and $1,021,000, 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 stock) (collectively “the Deferred Fee Plan Termination Payment”), 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. On November 3, 2022, the Board determined that the Deferred Fee Plan Termination Payment shall be made to the participants in the Deferred Fee Plan on January 20, 2023. |
Dividends and earnings per shar
Dividends and earnings per share | 12 Months Ended |
Oct. 31, 2022 | |
Earnings Per Share [Abstract] | |
Dividends and earnings per share | Note 12 - Dividends and earnings per share: FREIT declared dividends of approximately $65,163,000 ($9.20 per share), $1,755,000 ($0.25 per share) and $0, respectively, to stockholders of record during Fiscal 2022, 2021 and 2020. 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 is increased to include the number of additional shares that would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options, were issued during the period using the Treasury Stock method. Under the Treasury Stock method, the assumption is that the proceeds received upon exercise of the options, including the unrecognized stock option compensation expense attributable to future services, are used to repurchase FREIT’s stock at the average market price during the period, thereby increasing the number of shares to be added in computing diluted earnings per share. For Fiscal 2022, the outstanding stock options increased the average dilutive shares outstanding by approximately 77,000 shares with an impact of approximately $0.07 on 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. There were no anti-dilutive shares for the year ended October 31, 2022. There were approximately 268,000 and 268,000, respectively, anti-dilutive shares for the years ended October 31, 2021 and 2020. Anti-dilutive shares consist of out-of-the money stock options under the Equity Incentive Plan (see Note 10). |
Segment information
Segment information | 12 Months Ended |
Oct. 31, 2022 | |
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 five (5) properties, excluding the Rotunda Property, the Westridge Square Property and the Damascus Property sold in Fiscal 2022 (see Note 2), during the fiscal year ended October 31, 2022. The commercial segment is comprised of eight (8) properties during the fiscal years ended October 31, 2021 and 2020. The residential segment is comprised of six (6) properties, excluding the Icon at the Rotunda Property sold in Fiscal 2022 (see Note 2), during the fiscal year ended October 31, 2022. The residential segment is comprised of seven (7) properties, excluding the Pierre Towers property which was converted into a TIC and deconsolidated from FREIT’s operating results as of February 28, 2020 (see Note 3), during the fiscal years ended October 31, 2021 and 2020. 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's commercial segment, residential segment and corporate/other is comprised of FREIT’s Board. FREIT, 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, 2022. Asset information is not reported since FREIT does not use this measure to assess performance. Years Ended October 31, 2022 2021 2020 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 10,626 $ 23,547 $ 24,486 Residential 20,627 26,974 28,638 Total real estate rental revenue 31,253 50,521 53,124 Real estate operating expenses: Commercial 6,427 11,223 11,334 Residential 8,854 11,071 11,588 Total real estate operating expenses 15,281 22,294 22,922 Net operating income: Commercial 4,199 12,324 13,152 Residential 11,773 15,903 17,050 Total net operating income $ 15,972 $ 28,227 $ 30,202 Recurring capital improvements - residential $ (1,034 ) $ (625 ) $ (347 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 15,972 $ 28,227 $ 30,202 Deferred rents - straight lining 18 (230 ) (397 ) Investment income 358 116 204 Third party transaction costs — — (4,606 ) Net gain on sale of Maryland properties 68,771 — — Net realized gain on Wayne PSC interest rate swap termination 1,415 — — Gain on deconsolidation of subsidiary — — 27,680 Loss on investment in tenancy-in-common (228 ) (295 ) (202 ) General and administrative expenses (5,003 ) (5,195 ) (3,821 ) Depreciation (3,995 ) (9,300 ) (10,341 ) Tenant improvement write-off due to COVID-19 — — (7,277 ) Financing costs (8,064 ) (12,276 ) (14,122 ) Net income 69,244 1,047 17,320 Net (income) loss attributable to noncontrolling interests in subsidiaries (23,252 ) (120 ) 3,233 Net income attributable to common equity $ 45,992 $ 927 $ 20,553 |
Termination of Purchase and Sal
Termination of Purchase and Sale Agreement | 12 Months Ended |
Oct. 31, 2022 | |
Termination of Purchase and Sale Agreement Disclosure [Abstract] | |
Termination of Purchase and Sale Agreement | Note 14 - Termination of Purchase and Sale Agreement: On January 14, 2020, FREIT and certain of its affiliates (collectively, the “Sellers”), entered into a Purchase and Sale Agreement (as subsequently amended, the “Purchase and Sale Agreement”) with Sinatra Properties LLC (the “Purchaser”), which provided for the sale by the Sellers to the Purchaser of 100% of the Sellers’ ownership interests in six real properties held by the Sellers in exchange for the purchase price described therein, subject to the terms and conditions of the Purchase and Sale Agreement. On April 30, 2020, the Sellers delivered written notice to the Purchaser of the Sellers’ termination of the Purchase and Sale Agreement in accordance with its terms due to the occurrence of a “Purchaser Default” thereunder, based on the Purchaser’s failure to perform its obligations under the Purchase and Sale Agreement and close the transactions contemplated therein. Upon the execution of the Purchase and Sale Agreement, the Purchaser delivered into escrow a deposit in the amount of $15 million (the “Deposit”), in the form of an unconditional, irrevocable letter of credit in such amount (the “Letter of Credit”). The Purchase and Sale Agreement provides that the Sellers’ exclusive remedy, in the event of a “Purchaser Default” and the termination of the Purchase and Sale Agreement, is the forfeiture of the Deposit to the Sellers as liquidated damages. Accordingly, contemporaneously with the Sellers’ delivery of the termination notice to the Purchaser, the Sellers delivered written notice to the escrow agent requesting that the escrow agent release the Letter of Credit from escrow and deliver same to the Sellers. On May 6, 2020, the Purchaser filed a complaint (the “Complaint”) against the Sellers in the Superior Court of New Jersey, in which, among other things, the Purchaser alleges breach of contract and breach of the covenant of good faith and fair dealing against the Sellers in connection with the Sellers’ termination of the Purchase and Sale Agreement. The Purchaser seeks (a) a judgment of specific performance compelling the Sellers to convey the properties under the Purchase and Sale Agreement to the Purchaser; (b) declaratory judgment from the court that (i) the Purchase and Sale Agreement is not terminated, (ii) the Purchaser is not in default under the Purchase and Sale Agreement, and (iii) the Sellers are in default under the Purchase and Sale Agreement, subject to a right to cure; (c) an order for injunctive relief compelling the Sellers to perform the Purchase and Sale Agreement; (d) in the event that the court does not order specific performance, a judgment directing that the Purchaser’s $15 million deposit under the Purchase and Sale Agreement be returned to the Purchaser, and compensatory, consequential and incidental damages in an amount to be determined at trial; and (e) attorneys’ fees and costs. The Purchaser has filed lis pendens with respect to each of the six properties that were subject to the Purchase and Sale Agreement. The lis pendens provides notice to the public of the Complaint. Pending the resolution of this litigation, the filing of the lis pendens will adversely affect the future sale or financing of those properties. On June 17, 2020, the Sellers filed their answer, separate defenses, and counterclaims (the “Answer”) in response to the Complaint, in which, among other things, the Sellers (a) deny the Purchaser’s claim that the Sellers’ termination of the Purchase and Sale Agreement was wrongful, and assert that there was no contractual basis in the Purchase and Sale Agreement to relieve the Purchaser from its obligation to perform thereunder, or to defer or postpone the Purchaser’s obligation to perform, (b) assert certain defenses to the allegations set forth in the Complaint without admitting any liability, and (c) request relief from the Court in the form of (i) judgment in the Sellers’ favor dismissing all of the Purchaser’s claims against them with prejudice and denying all of the Purchaser’s requests for relief, (ii) reasonable attorneys’ fees and costs, and (iii) such other and further relief as the Court deems just. 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. Each of the Sellers and the Purchaser filed motions for summary judgment (“Summary Judgment Motions”) with the Court in which the litigation is pending seeking, among other things, the dismissal of the other parties’ claims. On February 4, 2022, the Court entered an Order (the “February 4 Order”) with respect to the Summary Judgment Motions which provides as follows: (1) The Court finds that the Plaintiff’s have breached the subject contract and the Court dismisses all claims for relief filed by the Plaintiffs in this suit. The Court dismissed the Complaint and dismisses the Lis Pendens. (2) The Court finds that the liquidated damage provision of the contract is not enforceable and the Court Orders that the $15 million held in escrow be returned to the Plaintiff. (3) The Court dismisses the Counterclaims and Third Party Complaint. All pleadings are dismissed. On May 31, 2022, Sinatra filed a Motion for Reconsideration with the Court, requesting that the Court reconsider its February 4, 2022 Order and, among other things, (a) grant Sinatra’s motion for summary judgment, and (b) reverse the Court’s findings that (1) Sinatra breached the Purchase and Sale Agreement, (2) the Sellers did not breach the Purchase and Sale Agreement and (3) the Court’s dismissal of the Complaint and Lis Pendens. On July 8, 2022, the Court denied Sinatra’s Motion for Reconsideration. Following the February 4 Order, the Sellers and the Purchaser each filed a motion for an award of attorney’s fees and costs pursuant to the applicable provisions of the Purchase and Sale Agreement. On December 8, 2022 the Court entered an Order awarding Sellers $3,420,422.88 in attorneys’ fees and denying the Plaintiff’s request for attorneys’ fees (the “December 8 Order”). Upon entering the December 8 Order, the Court had adjudicated all unresolved issues in the action. On December 8, 2022, the Sellers filed a Notice of Appeal, appealing from that portion of the February 4 Order which declined to enforce the liquidated damages provision in the Purchase and Sale Agreement. On December 22, 2022, the Purchaser filed a Notice of Cross Appeal appealing from all determinations by the Court adverse to the Purchaser, including (i) that portion of the February 4 Order holding that the Purchaser breached the contract; (ii) the denial of the Purchaser’s motion for reconsideration of the February 4 Order; and (iii) the December 8 Order awarding the Sellers $3,420,422.88 in attorneys’ fees and denying the Purchaser’s request for attorneys’ fees. The Sellers continue to believe that the allegations set forth in the Complaint filed by Sinatra and in the Answer to Counterclaims and Third-Party Complaint and Affirmative Defenses filed by Sinatra and Kushner Realty Acquisition LLC, are without merit. As of October 31, 2022, the $15 million deposit has not been included in income in the accompanying consolidated statement of income. During the years ended October 31, 2022, 2021 and 2020, 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, $0 and $4,606,000, 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 and certain of its affiliates and Sinatra Properties, LLC have been incurred in the amount of approximately $1,170,000, $2,282,000 and $957,000 for the years ended October 31, 2022, 2021 and 2020, respectively, and are included in operating expenses on the consolidated statements of income. |
Termination of Plan of Liquidat
Termination of Plan of Liquidation | 12 Months Ended |
Oct. 31, 2022 | |
Termination Of Plan Of Liquidation Disclosure 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, 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, 2022 | |
Covid-19 Pandemic [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. 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 were 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. The Company continues to monitor changes in the collectability assessment of its tenant receivables resulting from the lingering effects that the COVID-19 pandemic and preventive measures taken to mitigate the spread had on some of its commercial tenants. For the fiscal years ended October 31, 2022, 2021 and 2020, rental revenue deemed uncollectible of approximately $0.6 million, $1.3 million and $1.4 million (with a consolidated impact to FREIT of approximately $0.3 million, $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 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. During the year ended October 31, 2022, there were no security deposits from its commercial tenants applied 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 $0, $132,000 and $206,000 (with a consolidated impact to FREIT of approximately $0, $81,000 and $192,000) and rent abatements totaling approximately $9,000, $239,000 and $238,000 (with a consolidated impact to FREIT of approximately $9,000, $158,000 and $156,000) for the fiscal years ended October 31, 2022, 2021 and 2020, respectively. Cobb Theatre, an anchor tenant movie theatre at the Rotunda 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 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 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 Rotunda property owned by Grande Rotunda was sold. (See Note 2 for additional details.) As a result of the negative impact of the COVID-19 pandemic at our commercial properties, in Fiscal 2020 we were granted debt payment relief from certain of our lenders on such properties in the form of deferral of principal and/or interest payments for a three-month period, resulting in total deferred payments of approximately $1,013,000, which will become due at the maturity of the loans. As of October 31, 2022 and 2021, approximately $623,000 and $162,000, respectively, 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, 2022 and 2021. (See Note 5) |
Selected quarterly financial da
Selected quarterly financial data (unaudited) | 12 Months Ended |
Oct. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected quarterly financial data (unaudited) | Note 17- Selected quarterly financial data (unaudited): The following summary represents the results of operations for each quarter for the years ended October 31, 2022 and 2021 (in thousands, except per share amounts): 2022: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 10,649 $ 6,615 $ 6,959 $ 7,048 $ 31,271 Expenses, net (58,504 )(a) 7,616 (b) 5,145 (c) 7,770 (d) (37,973 ) Net income (loss) 69,153 (1,001 ) 1,814 (722 ) 69,244 Net (income) loss attributable to noncontrolling interests in subsidiaries (23,376 )(a) 649 (b) (693 )(c) 168 (d) (23,252 ) Net income (loss) attributable to common equity $ 45,777 $ (352 ) $ 1,121 $ (554 ) $ 45,992 Earnings (Loss) per share - basic $ 6.51 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.52 Earnings (Loss) per share - diluted $ 6.45 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.45 Dividends declared per share $ 0.10 $ 0.10 $ — $ 9.00 $ 9.20 2021: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 12,754 $ 12,804 $ 12,542 $ 12,191 (e) $ 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 (a) Includes $70 million gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $46.3 million ($6.58 per share basic and $6.52 per share diluted). (b) Includes $1.2 million reduction in gain on sale of the Maryland Properties with a consolidated impact to FREIT of approximately $0.7 million ($0.10 per share basic and diluted). (c) Includes $1.4 million realized gain on Wayne PSC interest rate swap termination with a consolidated impact to FREIT of approximately $0.6 million ($0.08 per share basic and diluted). (d) Includes stock compensation expense of approximately $1.2 million for the incremental compensation cost attributed to the revaluation of the stock options modified on September 9, 2022 ($0.17 per share basic and diluted). (e) 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 XI - REAL ESTATE AND A
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Oct. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION | 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 $ 9,291 $ 364 $ 1,773 $ — $ 1,774 $ 364 $ 3,547 $ 3,911 $ 3,034 1966 1975 7-40 years Berdan Court, Wayne, NJ 28,815 250 2,206 — 5,230 250 7,436 7,686 6,093 1964 1965 7-40 years Westwood Hills, Westwood, NJ 25,000 3,849 11,546 — 3,014 3,849 14,560 18,409 10,545 1965-70 1994 7-39 years Boulders - Rockaway, NJ 7,500 1,632 — 3,386 16,222 5,018 16,222 21,240 7,063 2005-2006 1963/1964 7-40 years Regency Club - Middletown, NY 14,587 2,833 17,792 — 1,218 2,833 19,010 21,843 4,191 2003 2014 7-40 years Station Place - Red Bank, NJ 11,750 8,793 10,757 — 20 8,793 10,777 19,570 1,325 2015 2017 7-40 years Commercial Properties: Franklin Crossing, Franklin Lakes, NJ — 29 — 3,382 7,504 3,411 7,504 10,915 4,742 1963/75/97 1966 5-39.5 years Glen Rock, NJ — 12 36 — 164 12 200 212 167 1940 1962 5-25 years Westwood Plaza, Westwood, NJ 17,274 6,889 6,416 — 2,438 6,889 8,854 15,743 8,681 1981 1988 5-31.5 years Preakness S/C, Wayne, NJ 25,000 9,280 24,217 — 2,678 9,280 26,895 36,175 13,819 1955/89/00 2002 5-39.5 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 $ 139,217 $ 34,606 $ 74,743 $ 6,612 $ 40,262 $ — $ 41,218 $ 115,005 $ 156,223 $ 59,660 (1) Total cost for each property is the same for federal income tax purposes, with the exception of the Regency Club and Station Place whose cost for federal income tax purposes is approximately $13.8 million and $4.2 million, respectively. 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: 2022 2021 2020 Real estate: Balance, Beginning of year $ 386,920 $ 385,853 $ 448,866 Additions - Buildings and improvements 1,474 1,883 2,055 Disposals - Buildings and improvements (232 ) (816 ) (585 ) Tenant improvement write-off due to COVID-19 — — (8,910 ) Sale of property (231,939 ) — — Deconsolidation of subsidiary — — (55,573 ) Balance, end of year $ 156,223 $ 386,920 $ 385,853 Accumulated depreciation: Balance, Beginning of year $ 115,621 $ 107,137 $ 118,363 Additions - Charged to operating expenses 3,995 9,300 10,341 Tenant improvement write-off due to COVID-19 - Charged to operating expenses — — (1,637 ) Disposals - Buildings and improvements (232 ) (816 ) (583 ) Sale of property (59,724 ) — — Deconsolidation of subsidiary — — (19,347 ) Balance, end of year $ 59,660 $ 115,621 $ 107,137 |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Oct. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization | Organization: First Real Estate Investment Trust of New Jersey was organized on November 1, 1961 as a New Jersey Business Trust. On July 1, 2021, First Real Estate Investment Trust of New Jersey 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 changed the law applicable to First Real Estate Investment Trust of New Jersey’s affairs from New Jersey law to Maryland law and was accomplished by the merger of First Real Estate Investment Trust of New Jersey with and into its wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. (“FREIT”, “Trust”, “us”, “we”, “our” or the “Company”), a Maryland corporation. As a result of the Reincorporation, the separate existence of First Real Estate Investment Trust of New Jersey has ceased and FREIT has succeeded to all the business, properties, assets and liabilities of First Real Estate Investment Trust of New Jersey. Holders of shares of beneficial interest in First Real Estate Investment Trust of New Jersey have received one newly issued share of common stock of FREIT for each share of First Real Estate Investment Trust of New Jersey that they own, without any action of stockholders required and all treasury stock held by First Real Estate Investment Trust of New Jersey was retired. FREIT is engaged in owning residential and commercial income producing properties located in New Jersey and New York. FREIT has elected to be taxed as a Real Estate Investment Trust under the provisions of Sections 856-860 of the Internal Revenue Code, as amended. Accordingly, FREIT does not pay federal income tax on income whenever income distributed to stockholders is equal to at least 90% of real estate investment trust taxable income. Further, FREIT pays no federal income tax on capital gains distributed to stockholders. FREIT is subject to federal income tax on undistributed taxable income and capital gains. FREIT may make an annual election under Section 858 of the Internal Revenue Code to apply part of the regular dividends paid in each respective subsequent year as a distribution for the immediately preceding year. |
Recently issued accounting standards | Recently issued accounting standards: In 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 and the following subsidiaries in which FREIT has a controlling financial interest, including two LLCs in which FREIT is the managing member with a 40% ownership interest: Subsidiary Owning Entity % Ownership Year Acquired/Organized Westwood Hills, LLC FREIT 40% 1994 Wayne PSC, LLC FREIT 40% 2002 Damascus Centre, LLC FREIT 70% 2003 Grande Rotunda, LLC FREIT 60% 2005 WestFREIT, Corp FREIT 100% 2007 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 The consolidated financial statements include 100% of each subsidiary’s assets, liabilities, operations and cash flows, with the interests not owned by FREIT reflected as "noncontrolling interests in subsidiaries”. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Investment in tenancy-in-common | Investment in tenancy-in-common: On February 28, 2020, FREIT reorganized its subsidiary S and A Commercial Associates Limited Partnership (“S&A”) from a partnership into a tenancy-in-common form of ownership (“TIC”). Prior to this reorganization, FREIT owned a 65% 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 consolidated the financial statements of S&A and its subsidiary to include 100% of the subsidiary’s assets, liabilities, operations and cash flows with the interest not owned by FREIT reflected as “noncontrolling interests in subsidiary” and all significant intercompany accounts and transactions were eliminated in consolidation. Pursuant to the TIC agreement, FREIT ultimately acquired a 65% undivided interest in the Pierre Towers property, which was formerly owned by S&A. Based on the guidance of Accounting Standards Codification (“ASC”) 810, “Consolidation” |
Use of estimates | Use of estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents: Financial instruments that potentially subject FREIT to concentrations of credit risk consist primarily of cash and cash equivalents. FREIT considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. FREIT maintains its cash and cash equivalents in bank and other accounts, the balances of which, at times, may exceed federally insured limits. |
Real estate development costs | Real estate development costs: It is FREIT’s policy to capitalize pre-development costs, which generally include legal and other professional fees and other directly related third-party costs. Real estate taxes and interest costs incurred during the development and construction phases are also capitalized. FREIT ceases capitalization of these costs when the project or portion thereof becomes operational, or when construction has been postponed. In the event of a postponement, capitalization of these costs will recommence once construction on the project resumes. |
Depreciation | Depreciation: Real estate and equipment are depreciated on the straight-line method by annual charges to operations calculated to absorb costs of assets over their estimated useful lives. |
Impairment of long-lived assets | Impairment of long-lived assets: Impairment losses on long-lived assets, such as real estate and equipment, are recognized when events or changes in circumstances indicate that the undiscounted cash flows estimated to be generated by such assets are less than their carrying value and, accordingly, all or a portion of such carrying value may not be recoverable. Impairment losses are then measured by comparing the fair value of assets to their carrying amounts. There were no impairments of long-lived assets for the fiscal years ended October 31, 2022 and 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 of approximately $7.3 million (with a consolidated impact to FREIT of approximately $4.4 million) related to Cobb Theatre were deemed impaired and written off. (See Note 16) |
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 (which approximates the effective interest method) by annual charges to income over the terms of the mortgages. Amortization of such costs is included in interest expense and approximated $971,000, $1,109,000 and $1,089,000 in Fiscal 2022, 2021 and 2020, respectively. Unamortized debt issuance costs are a direct deduction from mortgages payable on the consolidated balance sheets. |
Revenue recognition | Revenue recognition: Income from leases is recognized on a straight-line basis regardless of when payment is due. Lease agreements between FREIT and commercial tenants generally provide for additional rentals and reimbursements 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 when earned, or ratably over the appropriate period. |
Interest rate cap and swap contracts | Interest rate cap and swap contracts: |
Advertising | Advertising: FREIT expenses the cost of advertising and promotions as incurred. Advertising costs charged to operations amounted to approximately $234,000, $421,000 and $297,000 in Fiscal 2022, 2021 and 2020, respectively. |
Stock-based compensation | Stock-based compensation: |
Organization and significant _2
Organization and significant accounting policies (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of subsidiaries in which FREIT has a controlling financial interest | Subsidiary Owning Entity % Ownership Year Acquired/Organized Westwood Hills, LLC FREIT 40% 1994 Wayne PSC, LLC FREIT 40% 2002 Damascus Centre, LLC FREIT 70% 2003 Grande Rotunda, LLC FREIT 60% 2005 WestFREIT, Corp FREIT 100% 2007 FREIT Regency, LLC FREIT 100% 2014 Station Place on Monmouth, LLC FREIT 100% 2017 Berdan Court, LLC FREIT 100% 2019 |
Investment in tenancy-in-comm_2
Investment in tenancy-in-common (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Balance Sheet of Pierre Property | October 31, October 31, 2022 2021 (In Thousands of Dollars) Real estate, net $ 76,042 $ 78,023 Cash and cash equivalents 2,051 1,338 Tenants' security accounts 454 484 Receivables and other assets 583 510 Total assets $ 79,130 $ 80,355 Mortgages payable, net of unamortized debt issuance costs $ 49,425 $ 49,691 Accounts payable and accrued expenses 178 261 Tenants' security deposits 462 484 Deferred revenue 145 99 Equity 28,920 29,820 Total liabilities & equity $ 79,130 $ 80,355 FREIT's investment in TIC (65% interest) $ 18,798 $ 19,383 |
Schedule of Income Statement of Pierre Property | For the period from Year Ended Year Ended February 28, 2020 October 31, 2022 October 31, 2021 through October 31, 2020 (In Thousands of Dollars) Revenues $ 8,028 $ 7,627 $ 4,981 Operating expenses 4,594 4,311 2,786 Depreciation 2,183 2,166 1,435 Operating income 1,251 1,150 760 Interest expense including amortization of deferred financing costs 1,601 1,604 1,070 Net loss $ (350 ) $ (454 ) $ (310 ) FREIT's loss on investment in TIC (65% interest) $ (228 ) $ (295 ) $ (202 ) |
Real estate (Tables)
Real estate (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of real estate and equipment | Range of Estimated October 31, Useful Lives 2022 2021 (In Thousands of Dollars) Land $ 40,813 $ 75,688 Unimproved land 405 405 Apartment buildings 7-40 years 69,403 156,408 Commercial buildings/shopping centers 5-40 years 42,740 151,598 Equipment/furniture 5-15 years 2,174 2,156 Total real estate, gross 155,535 386,255 Less: accumulated depreciation 59,660 115,621 Total real estate, net $ 95,875 $ 270,634 |
Mortgages payable and credit _2
Mortgages payable and credit line (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Mortgages payable and credit line [Abstract] | |
Schedule of Debt | October 31, 2022 October 31, 2021 Principal (Including Unamortized Principal (Including Unamortized (In Thousands of Dollars) (In Thousands of Dollars) Rockaway, NJ (A) $ 7,500 $ 172 $ 14,453 $ 50 Westwood, NJ (B) 17,274 8 18,001 39 Wayne, NJ (C) 28,815 330 28,815 379 River Edge, NJ (D) 9,291 19 9,545 36 Red Bank, NJ (E) 11,750 78 11,971 93 Wayne, NJ (F) 25,000 431 22,588 172 Damascus, MD (G) — — 18,274 101 Middletown, NY (H) 14,587 71 14,921 104 Total fixed rate 114,217 1,109 138,568 974 Westwood, NJ (I) 25,000 — 25,000 220 Frederick, MD (J) — — 21,188 30 Baltimore, MD (K) — — 116,520 105 Line of credit - Provident Bank (L) — 36 — 71 Total variable rate 25,000 36 162,708 426 Total $ 139,217 $ 1,145 $ 301,276 $ 1,400 |
Schedule of estimated fair value and carrying value of long-term debt | ($ in Millions) October 31, 2022 October 31, 2021 Fair Value $132.2 $301.6 Carrying Value, Net $138.1 $299.9 |
Schedule of principal amounts of long-term debt | Year Ending October 31, Amount 2023 $ 43,035 2024 $ 17,163 2025 $ 39,734 2026 $ 817 2027 $ 849 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum fixed lease consideration under non-cancellable | Year Ending October 31, Amount 2023 $ 5,620 2024 4,823 2025 4,134 2026 3,365 2027 2,206 Thereafter 4,118 Total $ 24,266 |
Equity incentive plan (Tables)
Equity incentive plan (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Equity Incentive Plan [Abstract] | |
Schedule of Stock Option Activity | Year Ended October 31, Year Ended October 31, Year Ended October 31, 2022 2021 2020 No. of Options Weighted Average No. of Options Weighted Average No. of Options Weighted Average Outstanding Exercise Price Outstanding Exercise Price Outstanding Exercise Price Options outstanding at beginning of year 310,740 $ 18.35 310,740 $ 18.35 310,740 $ 18.35 Options granted during year — — — — — — Options forfeited/cancelled during year — — — — — — Options exercised during year (184,600 ) (10.99 ) — — — — Options outstanding at end of year 126,140 $ 10.64 310,740 $ 18.35 310,740 $ 18.35 Options vested and expected to vest 124,850 309,450 308,310 Options exercisable at end of year 116,540 292,540 276,340 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Years Ended October 31, 2022 2021 2020 (In Thousands of Dollars) Real estate rental revenue: Commercial $ 10,626 $ 23,547 $ 24,486 Residential 20,627 26,974 28,638 Total real estate rental revenue 31,253 50,521 53,124 Real estate operating expenses: Commercial 6,427 11,223 11,334 Residential 8,854 11,071 11,588 Total real estate operating expenses 15,281 22,294 22,922 Net operating income: Commercial 4,199 12,324 13,152 Residential 11,773 15,903 17,050 Total net operating income $ 15,972 $ 28,227 $ 30,202 Recurring capital improvements - residential $ (1,034 ) $ (625 ) $ (347 ) Reconciliation to consolidated net income attributable to common equity: Segment NOI $ 15,972 $ 28,227 $ 30,202 Deferred rents - straight lining 18 (230 ) (397 ) Investment income 358 116 204 Third party transaction costs — — (4,606 ) Net gain on sale of Maryland properties 68,771 — — Net realized gain on Wayne PSC interest rate swap termination 1,415 — — Gain on deconsolidation of subsidiary — — 27,680 Loss on investment in tenancy-in-common (228 ) (295 ) (202 ) General and administrative expenses (5,003 ) (5,195 ) (3,821 ) Depreciation (3,995 ) (9,300 ) (10,341 ) Tenant improvement write-off due to COVID-19 — — (7,277 ) Financing costs (8,064 ) (12,276 ) (14,122 ) Net income 69,244 1,047 17,320 Net (income) loss attributable to noncontrolling interests in subsidiaries (23,252 ) (120 ) 3,233 Net income attributable to common equity $ 45,992 $ 927 $ 20,553 |
Selected quarterly financial _2
Selected quarterly financial data (unaudited) (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operation | 2022: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 10,649 $ 6,615 $ 6,959 $ 7,048 $ 31,271 Expenses, net (58,504 )(a) 7,616 (b) 5,145 (c) 7,770 (d) (37,973 ) Net income (loss) 69,153 (1,001 ) 1,814 (722 ) 69,244 Net (income) loss attributable to noncontrolling interests in subsidiaries (23,376 )(a) 649 (b) (693 )(c) 168 (d) (23,252 ) Net income (loss) attributable to common equity $ 45,777 $ (352 ) $ 1,121 $ (554 ) $ 45,992 Earnings (Loss) per share - basic $ 6.51 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.52 Earnings (Loss) per share - diluted $ 6.45 (a) $ (0.05 )(b) $ 0.16 (c) $ (0.08 )(d) $ 6.45 Dividends declared per share $ 0.10 $ 0.10 $ — $ 9.00 $ 9.20 2021: Quarter Ended Year Ended January 31, April 30, July 31, October 31, October 31, Revenue $ 12,754 $ 12,804 $ 12,542 $ 12,191 (e) $ 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 |
SCHEDULE XI - REAL ESTATE AND_2
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION (Tables) | 12 Months Ended |
Oct. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule of real estate and accumulated depreciation | 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 $ 9,291 $ 364 $ 1,773 $ — $ 1,774 $ 364 $ 3,547 $ 3,911 $ 3,034 1966 1975 7-40 years Berdan Court, Wayne, NJ 28,815 250 2,206 — 5,230 250 7,436 7,686 6,093 1964 1965 7-40 years Westwood Hills, Westwood, NJ 25,000 3,849 11,546 — 3,014 3,849 14,560 18,409 10,545 1965-70 1994 7-39 years Boulders - Rockaway, NJ 7,500 1,632 — 3,386 16,222 5,018 16,222 21,240 7,063 2005-2006 1963/1964 7-40 years Regency Club - Middletown, NY 14,587 2,833 17,792 — 1,218 2,833 19,010 21,843 4,191 2003 2014 7-40 years Station Place - Red Bank, NJ 11,750 8,793 10,757 — 20 8,793 10,777 19,570 1,325 2015 2017 7-40 years Commercial Properties: Franklin Crossing, Franklin Lakes, NJ — 29 — 3,382 7,504 3,411 7,504 10,915 4,742 1963/75/97 1966 5-39.5 years Glen Rock, NJ — 12 36 — 164 12 200 212 167 1940 1962 5-25 years Westwood Plaza, Westwood, NJ 17,274 6,889 6,416 — 2,438 6,889 8,854 15,743 8,681 1981 1988 5-31.5 years Preakness S/C, Wayne, NJ 25,000 9,280 24,217 — 2,678 9,280 26,895 36,175 13,819 1955/89/00 2002 5-39.5 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 $ 139,217 $ 34,606 $ 74,743 $ 6,612 $ 40,262 $ — $ 41,218 $ 115,005 $ 156,223 $ 59,660 |
Schedule of reconciliation of real estate and accumulated depreciation | Reconciliation of Real Estate and Accumulated Depreciation: 2022 2021 2020 Real estate: Balance, Beginning of year $ 386,920 $ 385,853 $ 448,866 Additions - Buildings and improvements 1,474 1,883 2,055 Disposals - Buildings and improvements (232 ) (816 ) (585 ) Tenant improvement write-off due to COVID-19 — — (8,910 ) Sale of property (231,939 ) — — Deconsolidation of subsidiary — — (55,573 ) Balance, end of year $ 156,223 $ 386,920 $ 385,853 Accumulated depreciation: Balance, Beginning of year $ 115,621 $ 107,137 $ 118,363 Additions - Charged to operating expenses 3,995 9,300 10,341 Tenant improvement write-off due to COVID-19 - Charged to operating expenses — — (1,637 ) Disposals - Buildings and improvements (232 ) (816 ) (583 ) Sale of property (59,724 ) — — Deconsolidation of subsidiary — — (19,347 ) Balance, end of year $ 59,660 $ 115,621 $ 107,137 |
Organization and significant _3
Organization and significant accounting policies (Details) - USD ($) | 12 Months Ended | |||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Feb. 28, 2020 | |
Organization and significant accounting policies (Details) [Line Items] | ||||
Investment trust, percentage | 90% | |||
Noncontrolling interests in subsidiaries, percentage | 100% | |||
Tenant improvements | $ 7,300,000 | |||
Consolidated impact to net income (loss) | 4,400,000 | |||
Amortization costs, interest expense | 971,000 | $ 1,109,000 | $ 1,089,000 | |
Advertising costs | $ 234,000 | $ 421,000 | $ 297,000 | |
S And A Commercial Associates Limited Partnership [Member] | ||||
Organization and significant accounting policies (Details) [Line Items] | ||||
Noncontrolling interests in subsidiaries, percentage | 100% | |||
Percentage of ownership interest | 65% | |||
Pierre Towers, LLC [Member] | ||||
Organization and significant accounting policies (Details) [Line Items] | ||||
Percentage of ownership interest | 100% | |||
TIC Agreement [Member] | ||||
Organization and significant accounting policies (Details) [Line Items] | ||||
Percentage of ownership interest | 65% | |||
FREIT [Member] | ||||
Organization and significant accounting policies (Details) [Line Items] | ||||
Ownership interest, percentage | 40% |
Organization and significant _4
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest | 12 Months Ended |
Oct. 31, 2022 | |
Westwood Hills, LLC [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 40% |
Year Acquired/Organized | 1994 |
Wayne PSC, LLC [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 40% |
Year Acquired/Organized | 2002 |
Damascus Centre, LLC [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 70% |
Year Acquired/Organized | 2003 |
Grande Rotunda, LLC [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 60% |
Year Acquired/Organized | 2005 |
WestFREIT, Corp [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2007 |
FREIT Regency, LLC [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2014 |
Station Place on Monmouth, LLC [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2017 |
Berdan Court, LLC [Member] | |
Organization and significant accounting policies (Details) - Schedule of subsidiaries in which FREIT has a controlling financial interest [Line Items] | |
OwningEntity | FREIT |
% Ownership | 100% |
Year Acquired/Organized | 2019 |
Maryla property dispositions (D
Maryla property dispositions (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||
Aug. 04, 2022 | Feb. 04, 2022 | Jan. 10, 2022 | Jan. 07, 2022 | Dec. 07, 2017 | Aug. 30, 2022 | Jul. 22, 2022 | Dec. 30, 2021 | Nov. 22, 2021 | Sep. 30, 2020 | Aug. 26, 2019 | Apr. 28, 2017 | Oct. 31, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Dec. 31, 2021 | |
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Owner property percentage | 100% | |||||||||||||||
Interest percentage | 60% | |||||||||||||||
Mortgage escrows | $ 15,526,731 | $ 931,000 | $ 931,000 | |||||||||||||
Tenant lease agreements term | 2 years | 3 years | 1 year | 5 years | ||||||||||||
Debt Instrument, Collateral Amount | 22,642,000 | 22,642,000 | ||||||||||||||
Net proceeds from refinancing of debt | $ 1,100,000 | $ 1,173,000 | $ 5,600,000 | $ 11,600,000 | $ 1,100,000 | |||||||||||
Repayments of mortgage debt | 623,000,000 | $ 162,000,000 | ||||||||||||||
Transfer taxes | $ 900,000 | $ 500,000 | 6,200,000 | |||||||||||||
Purchaser deposited total | 484,934 | 1,015,396 | $ 14,026,401 | |||||||||||||
Released funds | 710,000 | |||||||||||||||
Related gain on sale | 1,200,000 | |||||||||||||||
Remaining funds | 6,300,000 | 6,300,000 | ||||||||||||||
Net proceeds | $ 11,800,000 | 100,000 | 53,900,000 | |||||||||||||
Based interest percentage | 70% | 60% | ||||||||||||||
Sale of net gain | $ 10,100,000 | 8,700,000 | $ 50,000,000 | 1,200,000 | ||||||||||||
Proceeds released | 400,000 | 800,000 | 7,000,000 | 8,200,000 | ||||||||||||
Straight-line rent receivable | 600,000 | 500,000 | 1,800,000 | 2,900,000 | ||||||||||||
Unamortized lease commissions | 300,000 | 300,000 | 1,100,000 | 1,700,000 | ||||||||||||
Accrued interest | 5,300,000 | 5,300,000 | ||||||||||||||
Net book value | 11,500,000 | 172,200,000 | ||||||||||||||
Purchase price | 36,685,067 | 20,984,604 | 248,750,269 | |||||||||||||
Mortgage debt amount | 18,200,000 | $ 21,100,000 | 155,800,000 | 155,800,000 | ||||||||||||
Breakage fees | 213,000 | 213,000 | ||||||||||||||
Purchaser Escrow | $ 15,000,000 | 15,526,731 | ||||||||||||||
Interest amount | 31,000,000 | |||||||||||||||
Consolidated amount | 45,600,000 | |||||||||||||||
Non recurring cash distribution | $ 51,500,000 | |||||||||||||||
Price per share (in Dollars per share) | $ 7.5 | |||||||||||||||
Grande Rotunda, LLC [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Principal amount on notes paid off | 31,000,000 | 7,000,000 | 7,000,000 | $ 31,000,000 | ||||||||||||
Maryland Purchaser Escrow Payment [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Mortgage escrows | $ 15,526,731 | |||||||||||||||
Debt Instrument fund payment | $ 700,000 | |||||||||||||||
Rotunda Hundred [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Membership interest percentage | 40% | |||||||||||||||
Rotunda Hundred [Member] | FREIT Maryland [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Membership interest percentage | 60% | |||||||||||||||
Rotunda Property [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Certain transactional expenses | $ 27,700,000 | |||||||||||||||
Transfer taxes | 4,800,000 | |||||||||||||||
Net proceeds | 21,400,000 | |||||||||||||||
Westridge Square Property [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Released funds | 800,000 | |||||||||||||||
Remaining funds | 821,000 | 821,000 | ||||||||||||||
Damascus Property [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Released funds | 400,000 | |||||||||||||||
Remaining funds | 415,000 | 415,000 | ||||||||||||||
Net proceeds | 17,300,000 | |||||||||||||||
Net book value | $ 24,600,000 | |||||||||||||||
Maryland Properties [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Released funds | 1,900,000 | |||||||||||||||
Remaining funds | $ 6,300,000 | 6,300,000 | ||||||||||||||
Sale of net gain | 68,800,000 | |||||||||||||||
Purchaser Escrow | $ 1,946,000 | |||||||||||||||
Purchase and Sale Agreement [Member] | Damascus Centre [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Percentage of ownership interest | 70% | |||||||||||||||
Purchase and Sale Agreement of Rotunda Property [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Purchase price | 191,080,598 | $ 2,723,000 | ||||||||||||||
Mortgage escrows | 15,526,731 | |||||||||||||||
Sales price | $ 2,723,000 | |||||||||||||||
Tenant lease agreements term | 5 years | |||||||||||||||
Debt Instrument, Collateral Amount | 136,100,000 | |||||||||||||||
Repayments of mortgage debt | 116,500,000 | |||||||||||||||
Purchase and Sale Agreement of Rotunda Property [Member] | Maximum [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Purchase price | $ 267,000,000 | |||||||||||||||
Purchase and Sale Agreement of Rotunda Property [Member] | Minimum [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Purchase price | $ 248,750,269 | |||||||||||||||
Grande Rotunda [Member] | ||||||||||||||||
Maryla property dispositions (Details) [Line Items] | ||||||||||||||||
Net proceeds from refinancing of debt | $ 36,500,000 |
Investment in tenancy-in-comm_3
Investment in tenancy-in-common (Details) - USD ($) | 8 Months Ended | 12 Months Ended | |||
Feb. 28, 2020 | Oct. 31, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Investment in tenancy-in-common (Details) [Line Items] | |||||
Gain on deconsolidation of subsidiary | $ 27,700,000 | ||||
Investment in tenancy-in-common | 18,798,000 | $ 19,383,000 | |||
Percentage of management fees of rent collected | 5% | ||||
Management fees | $ 241,000 | 402,000 | 375,000 | ||
Commission paid | 40,000 | 51,000 | |||
Insurance commissions | 26,000 | 164,000 | 209,000 | $ 190,000 | |
F R E I Ts Investment [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Investment in tenancy-in-common | $ 20,100,000 | 20,100,000 | |||
Loss on investment | 228,000 | 295,000 | $ 202,000 | ||
S And A Commercial Associates Limited Partnership [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Percentage of ownership interest | 65% | ||||
Pierre Towers [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Percentage of ownership interest | 100% | ||||
Pierre Towers, LLC [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Percentage of ownership interest | 100% | ||||
F R E I Ts Investment [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Percentage of ownership interest | 100% | ||||
TIC Agreement [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Percentage of ownership interest | 65% | ||||
Hekemian & Co. [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Management fees | 35,100 | 32,500 | |||
F R E I Ts Investment [Member] | |||||
Investment in tenancy-in-common (Details) [Line Items] | |||||
Investment in tenancy-in-common | $ 18,800,000 | $ 19,400,000 |
Investment in tenancy-in-comm_4
Investment in tenancy-in-common (Details) - Schedule of Balance Sheet of Pierre Property - Pierre Towers property [Member] - USD ($) $ in Thousands | Oct. 31, 2022 | Oct. 31, 2021 |
Investment in tenancy-in-common (Details) - Schedule of Balance Sheet of Pierre Property [Line Items] | ||
Real estate, net | $ 76,042 | $ 78,023 |
Cash and cash equivalents | 2,051 | 1,338 |
Tenants' security accounts | 454 | 484 |
Receivables and other assets | 583 | 510 |
Total assets | 79,130 | 80,355 |
Mortgages payable, net of unamortized debt issuance costs | 49,425 | 49,691 |
Accounts payable and accrued expenses | 178 | 261 |
Tenants' security deposits | 462 | 484 |
Deferred revenue | 145 | 99 |
Equity | 28,920 | 29,820 |
Total liabilities & equity | 79,130 | 80,355 |
FREIT's investment in TIC (65% interest) | $ 18,798 | $ 19,383 |
Investment in tenancy-in-comm_5
Investment in tenancy-in-common (Details) - Schedule of Income Statement of Pierre Property - Pierre Towers property [Member] - USD ($) $ in Thousands | 8 Months Ended | 12 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | |
Investment in tenancy-in-common (Details) - Schedule of Income Statement of Pierre Property [Line Items] | |||
Revenues | $ 4,981 | $ 8,028 | $ 7,627 |
Operating expenses | 2,786 | 4,594 | 4,311 |
Depreciation | 1,435 | 2,183 | 2,166 |
Operating income | 760 | 1,251 | 1,150 |
Interest expense including amortization of deferred financing costs | 1,070 | 1,601 | 1,604 |
Net loss | (310) | (350) | (454) |
FREIT's loss on investment in TIC (65% interest) | $ (202) | $ (228) | $ (295) |
Real estate (Details) - Schedul
Real estate (Details) - Schedule of real estate and equipment - USD ($) $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 40,813 | $ 75,688 |
Unimproved land | 405 | 405 |
Total real estate, gross | 155,535 | 386,255 |
Less: accumulated depreciation | 59,660 | 115,621 |
Total real estate, net | 95,875 | 270,634 |
Apartment Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 69,403 | 156,408 |
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 | $ 42,740 | 151,598 |
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 | |
Equipment/Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total real estate, gross | $ 2,174 | $ 2,156 |
Equipment/Furniture [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Equipment/Furniture [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years |
Mortgages payable and credit _3
Mortgages payable and credit line (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 13 Months Ended | ||||||||||||||||||||||
Jan. 10, 2022 | Jan. 07, 2022 | Feb. 06, 2021 | Feb. 01, 2021 | Apr. 03, 2019 | Feb. 07, 2018 | Dec. 07, 2017 | Jan. 14, 2013 | Aug. 19, 2022 | Jul. 22, 2022 | Dec. 30, 2021 | Sep. 30, 2020 | Aug. 26, 2019 | Apr. 28, 2017 | Dec. 29, 2014 | Nov. 19, 2013 | Dec. 26, 2012 | Jun. 30, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | May 30, 2019 | May 30, 2018 | Nov. 22, 2021 | Mar. 05, 2021 | Feb. 28, 2020 | Apr. 22, 2016 | |
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Refinanced loan amount | $ 115,300,000 | $ 8,000,000 | $ 22,100,000 | $ 14,400,000 | $ 19,200,000 | $ 17,000,000 | $ 22,000,000 | $ 20,000,000 | ||||||||||||||||||
Loan amount | $ 118,500,000 | $ 22,500,000 | $ 118,500,000 | $ 12,350,000 | $ 22,750,000 | $ 25,000,000 | 7,500,000 | 25,000,000 | $ 28,815,000 | $ 23,500,000 | $ 11,200,000 | $ 118,500,000 | $ 121,900,000 | $ 2,320,000 | ||||||||||||
Additional funding | $ 7,500,000 | $ 250,000 | ||||||||||||||||||||||||
Maturity date of loan | Feb. 06, 2021 | Dec. 15, 2027 | Aug. 01, 2025 | Jan. 01, 2024 | Oct. 01, 2022 | Apr. 28, 2019 | Dec. 01, 2013 | Jan. 03, 2023 | Oct. 31, 2023 | |||||||||||||||||
Term of the loan | 2 years | 3 years | 1 year | 5 years | ||||||||||||||||||||||
Net proceeds from refinancing of debt | $ 1,100,000 | $ 1,173,000 | $ 5,600,000 | $ 11,600,000 | $ 1,100,000 | |||||||||||||||||||||
Fixed interest rate | 4.35% | 4.75% | 3.54% | 5.55% | 3.75% | 4.54% | ||||||||||||||||||||
Net book value | $ 22,642,000 | |||||||||||||||||||||||||
Monthly princial payments | $ 49,250 | $ 47,250 | $ 129,702 | 1,250,000 | $ 85,004 | $ 57,456 | $ 390,000 | |||||||||||||||||||
Deferred Interest | $ 222,000 | |||||||||||||||||||||||||
Fixed interest rate | 6.09% | |||||||||||||||||||||||||
Future periodic payment including principal | $ 130,036 | |||||||||||||||||||||||||
Deferred interest | $ 136,000 | |||||||||||||||||||||||||
Fixed interest rate tranche one | 5% | 3.81% | ||||||||||||||||||||||||
Legal fees | $ 1,250,000 | |||||||||||||||||||||||||
Annual debt service savings | $ 340,000 | |||||||||||||||||||||||||
Total deferred payments | 1,400,000 | |||||||||||||||||||||||||
construction progress amount | 700,000 | |||||||||||||||||||||||||
Escrow account balance | 931,000 | $ 15,526,731 | ||||||||||||||||||||||||
Fixed interest rate tranche two | 3.53% | |||||||||||||||||||||||||
Outstanding balance | $ 18,200,000 | $ 21,100,000 | $ 116,500,000 | |||||||||||||||||||||||
Principal payment amount | $ 27,807 | $ 45,250 | $ 43,250 | |||||||||||||||||||||||
Net book value | 17,652,000 | |||||||||||||||||||||||||
LIBOR rate | 3% | 4.15% | 3% | 3% | ||||||||||||||||||||||
Drawn loan amount | $ 121,900,000 | |||||||||||||||||||||||||
Principal payments | $ 500,000 | |||||||||||||||||||||||||
Line of Credit, available | $ 13,000,000 | |||||||||||||||||||||||||
Basis points, interest rate | 3.75% | |||||||||||||||||||||||||
Line of credit | $ 13,000,000 | $ 13,000,000 | ||||||||||||||||||||||||
Red Bank Nj Refinanced Mortgage [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Net book value | 18,245,000 | |||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Fixed interest rate | 5% | 5.37% | ||||||||||||||||||||||||
Fixed interest rate | 4.62% | |||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Fixed interest rate | 3.625% | 2.85% | ||||||||||||||||||||||||
Fixed interest rate | 4.15% | |||||||||||||||||||||||||
Line of Credit [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Refinanced loan amount | $ 16,200,000 | |||||||||||||||||||||||||
Westwood Hills Property [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Net proceeds from refinancing of debt | $ 2,200,000 | |||||||||||||||||||||||||
Percentage of membership interest | 40% | |||||||||||||||||||||||||
Loan agreement description | On August 19, 2022, Westwood Hills, LLC exercised its right, pursuant to the loan agreement, to extend the term of its $25 million loan on its property located in Westwood, New Jersey, for an additional six (6) months from an initial maturity date of October 1, 2022 to a new maturity date of April 1, 2023. This loan was extended on the same terms and conditions as stated in the loan agreement and has one remaining six (6) month extension. As of October 31, 2022, $25,000,000 of this loan was drawn and outstanding and the interest rate was 7.13%. The mortgage is secured by an apartment building in Westwood, New Jersey having a net book value of approximately $7,864,000 as of October 31, 2022. | |||||||||||||||||||||||||
Rockaway, New Jersey [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Net book value | 14,228,000 | |||||||||||||||||||||||||
Westwood, New Jersey [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Net book value | 7,062,000 | |||||||||||||||||||||||||
Wayne, New Jersey [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Net book value | 1,593,000 | |||||||||||||||||||||||||
River Edge, New Jersey [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Net book value | $ 877,000 | |||||||||||||||||||||||||
Middletown, NY Mortgage [Member] | Line of Credit [Member] | ||||||||||||||||||||||||||
Mortgages payable and credit line (Details) [Line Items] | ||||||||||||||||||||||||||
Maturity date of loan | Dec. 15, 2024 |
Mortgages payable and credit _4
Mortgages payable and credit line (Details) - Schedule of Debt - USD ($) | Oct. 31, 2022 | Oct. 31, 2021 | |
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | $ 139,217 | $ 301,276,000 | |
Unamortized debt issuance costs | 1,145,000 | 1,400,000 | |
Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 114,217 | 138,568,000 | |
Unamortized debt issuance costs | 1,109,000 | 974,000 | |
Notes Payable, Other Payables [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 25,000 | 162,708,000 | |
Unamortized debt issuance costs | 36,000 | 426,000 | |
Line of Credit [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | |||
Unamortized debt issuance costs | 36,000 | 71,000 | |
Rockaway, NJ Mortgage [Member] | Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [1] | 7,500 | 14,453,000 |
Unamortized debt issuance costs | [1] | 172,000 | 50,000 |
Westwood, NJ #2 [Member] | Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [2] | 17,274 | 18,001,000 |
Unamortized debt issuance costs | [2] | 8,000 | 39,000 |
Wayne, NJ Mortgage [Member] | Mortgages [Member] | Berdan Court, LLC [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 28,815 | 28,815,000 | |
Unamortized debt issuance costs | 330,000 | 379,000 | |
River Edge, NJ First Mortgage [Member] | Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 9,291 | 9,545,000 | |
Unamortized debt issuance costs | 19,000 | 36,000 | |
Red Bank, NJ Mortgage [Member] | Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [3] | 11,750 | 11,971,000 |
Unamortized debt issuance costs | [3] | 78,000 | 93,000 |
Wayne, PSC LLC [Member] | Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 25,000 | 22,588,000 | |
Unamortized debt issuance costs | 431,000 | 172,000 | |
Damascus, MD [Member] | Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 18,274,000 | ||
Unamortized debt issuance costs | 101,000 | ||
Middletown, NY Mortgage [Member] | Mortgages [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 14,587 | 14,921,000 | |
Unamortized debt issuance costs | 71,000 | 104,000 | |
Westwood, NJ [Member] | Notes Payable, Other Payables [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 25,000 | 25,000,000 | |
Unamortized debt issuance costs | 220,000 | ||
Frederick, MD [Member] | Notes Payable, Other Payables [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | 21,188,000 | ||
Unamortized debt issuance costs | 30,000 | ||
Baltimore, MD [Member] | Notes Payable, Other Payables [Member] | |||
Mortgages payable and credit line (Details) - Schedule of Debt [Line Items] | |||
Fixed rate mortgage loans | [4] | 116,520,000 | |
Unamortized debt issuance costs | [4] | $ 105,000 | |
[1]On December 30, 2021, FREIT refinanced its $14.4 million loan (which would have matured on February 1, 2022) with a new loan held by ConnectOne Bank in the amount of $7,500,000, with additional funding available to be drawn upon in the amount of $7,500,000 for corporate needs. This loan is interest-only and has a maturity date of January 1, 2024 with the option of FREIT 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 a result of the reduction in the principal amount, 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. The mortgage is secured by a residential building in Rockaway, New Jersey having a net book value of approximately $14,228,000 as of October 31, 2022.[2]On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8.0 million, with a new mortgage loan held by Valley National Bank in the amount of $22,750,000, which is payable in monthly installments of $129,702 including interest at 4.75% through February 1, 2023 at which time the outstanding balance is due. The mortgage is secured by a retail building in Westwood, New Jersey having a net book value of approximately $7,062,000 as of October 31, 2022. The Company is in the process of extending this loan with the current lender, Valley National Bank, for one (1) year. Under the terms and conditions of this loan modification, the loan will be payable based on the existing monthly installments of $129,702 including a fixed interest rate based on the Wall Street Journal Prime at the time of the closing on this extension (currently approximately 7.00%). Additionally, FREIT will be required to prepay the annualized principal and interest payments for one (1) year, which will be held in an account at Valley National Bank and will be used to make monthly payments on the loan. Management expects this loan to be modified/extended, however, until such time as a definitive agreement providing for a modification/extension of this loan is entered into, there can be no assurance this loan will be modified/extended. As a result of the negative impact of the COVID-19 pandemic at this property, FREIT 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 sheets as of October 31, 2022 and 2021 and are due at the maturity of this loan.[3]On December 7, 2017, Station Place on Monmouth, LLC (“Station Place”) closed on a mortgage loan in the amount of $12,350,000 held by Provident Bank to purchase the Station Place property in Red Bank, New Jersey. Interest-only payments were required each month for the first two years of the term and thereafter, principal payments plus accrued interest were required each month through maturity. The loan bears a floating interest rate equal to 180 basis points over the one-month BBA LIBOR with a maturity date of December 15, 2027. In order to minimize interest rate volatility during the term of the loan, Station Place entered into an interest rate swap agreement that, in effect, converted the floating interest rate to a fixed interest rate of 4.35% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment building in Red Bank, New Jersey having a net book value of approximately $18,245,000 as of October 31, 2022.[4]On February 7, 2018, Grande Rotunda, LLC (“Grande Rotunda”) refinanced its $115.3 million construction loan held by Wells Fargo with a new loan held by Aareal Capital Corporation in the amount of approximately $118.5 million. This loan bore a floating interest rate at 285 basis points over the one-month LIBOR rate and had a maturity date of February 6, 2021, with two one-year options to extend the maturity of this loan, subject to certain requirements as provided for in the loan agreement. Grande Rotunda had purchased an interest rate cap on LIBOR for the full amount that could have been drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for the first two years of this loan which matured on March 5, 2020. On February 28, 2020, Grande Rotunda purchased an interest rate cap on LIBOR, with an effective date of March 5, 2020, for the full amount that could have been drawn on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for one year, which matured on March 5, 2021. 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. On December 30, 2021, the property owned by Grande Rotunda was sold and a portion of the proceeds was used to pay off the $116.5 million then outstanding balance of this loan. (See Note 2 for additional details.) |
Mortgages payable and credit _5
Mortgages payable and credit line (Details) - Schedule of estimated fair value and carrying value of long-term debt - USD ($) $ in Millions | Oct. 31, 2022 | Oct. 31, 2021 |
Schedule of Fair Value of Long-Term Debt [Abstract] | ||
Fair Value | $ 132.2 | $ 301.6 |
Carrying Value, Net | $ 138.1 | $ 299.9 |
Mortgages payable and credit _6
Mortgages payable and credit line (Details) - Schedule of principal amounts of long-term debt | Oct. 31, 2022 USD ($) |
Schedule of Principal Amounts Due [Abstract] | |
2023 | $ 43,035 |
2024 | 17,163 |
2025 | 39,734 |
2026 | 817 |
2027 | $ 849 |
Interest rate cap and swap co_2
Interest rate cap and swap contracts (Details) - USD ($) | 12 Months Ended | |||
Dec. 30, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Interest rate cap and swap contracts (Details) [Line Items] | ||||
Underlying loan, description | On December 30, 2021, the Rotunda property owned by Grande Rotunda was sold, a portion of the proceeds from the sale was used to pay off the $116.5 million then outstanding balance of the underlying loan and the corresponding interest rate cap on this loan matured with no settlement due at maturity. On January 10, 2022, the property owned by Damascus Centre was sold and a portion of the proceeds from the sale was used to pay off the $18.2 million then outstanding balance of the underlying loan and the corresponding swap breakage fees of approximately $213,000 related to the early termination of the interest rate swap contracts on this loan which was included as interest expense on the accompanying consolidated statement of income for the year ended October 31, 2022. (See Note 2 for further details on the sales of these properties.) On June 17, 2022, Wayne PSC terminated its interest rate swap contract on its underlying loan held with People’s United Bank, which had a maturity date of October 2026, for a settlement amount of approximately $1.4 million. | |||
Unrealized gain (loss) amount | $ 3,717,000 | $ 2,616,000 | $ 2,798,000 | |
Regency Swap [Member] | ||||
Interest rate cap and swap contracts (Details) [Line Items] | ||||
Interest rate swap contract liabilities | 611,000 | 750,000 | ||
Station Place Swap [Member] | ||||
Interest rate cap and swap contracts (Details) [Line Items] | ||||
Interest rate swap contract liabilities | $ 798,000 | 932,000 | ||
Damascus Centre Swaps [Member] | ||||
Interest rate cap and swap contracts (Details) [Line Items] | ||||
Interest rate swap contract liabilities | 278,000 | |||
Wayne PSC Swap [Member] | ||||
Interest rate cap and swap contracts (Details) [Line Items] | ||||
Interest rate swap contract liabilities | 348,000 | |||
Grande Rotunda [Member] | ||||
Interest rate cap and swap contracts (Details) [Line Items] | ||||
Interest rate swap contract liabilities | $ 0 |
Commitments and contingencies_2
Commitments and contingencies (Details) | 12 Months Ended |
Oct. 31, 2022 USD ($) | |
Commitments and contingencies (Details) [Line Items] | |
Commercial space leases, net book value | $ 36,100,000 |
Lease terms for residential tenants, periods | 2 years |
Westwood Plaza Shopping Center [Member] | |
Commitments and contingencies (Details) [Line Items] | |
Flood insurance, amount per incident | $ 500,000 |
Commitments and contingencies_3
Commitments and contingencies (Details) - Schedule of minimum fixed lease consideration under non-cancellable $ in Thousands | Oct. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 5,620 |
2024 | 4,823 |
2025 | 4,134 |
2026 | 3,365 |
2027 | 2,206 |
Thereafter | 4,118 |
Total | $ 24,266 |
Management agreement, fees an_2
Management agreement, fees and transactions with related party (Details) - USD ($) | 1 Months Ended | 8 Months Ended | 12 Months Ended | ||||||
Mar. 10, 2022 | May 08, 2008 | Dec. 31, 2021 | Jun. 19, 2015 | Oct. 31, 2020 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Dec. 30, 2021 | |
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Fees charged to operation | $ 1,429,000 | ||||||||
Commissions, charged to operations | $ 26,000 | $ 164,000 | $ 209,000 | $ 190,000 | |||||
Equity contributions percentage | 50% | ||||||||
Maturity dates | 10 years | ||||||||
Secured loans receivable | $ 5,300,000 | ||||||||
Due to affiliate | 3,252,000 | ||||||||
Trustee fee expense | $ 0 | 0 | 21,000 | ||||||
Pro-rata share based funding amount | $ 300,000 | ||||||||
Minimum [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Management fees equal percentage | 4% | ||||||||
Maximum [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Management fees equal percentage | 5% | ||||||||
Grande Rotunda, LLC [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Ownership by parent | 60% | ||||||||
Ownership by noncontrolling owners | 40% | ||||||||
Aggregate outstanding principal balance | 4,000,000 | ||||||||
Accrued but unpaid interest | 1,292,000 | ||||||||
Principal amount on notes paid off | $ 31,000,000 | $ 7,000,000 | $ 31,000,000 | ||||||
Repayment to affiliate | $ 3,300,000 | 2,800,000 | |||||||
Due to affiliate | 3,300,000 | ||||||||
Loan commission | 150,000 | ||||||||
Rotunda Property [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Loan commission | 4,777,000 | ||||||||
Damascus Property [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Loan commission | 917,000 | ||||||||
Westridge Square Property [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Loan commission | 525,000 | ||||||||
Preakness Shopping Center [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Loan commission | 94,000 | ||||||||
Boulders Property [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Loan commission | $ 75,000 | ||||||||
WestFREIT, Corp [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Loan commission | 54,000 | ||||||||
Robert S. Hekemian [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Trustee fee expense | 469,000 | ||||||||
Wayne PSC [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Pro-rata share based funding amount | 500,000 | ||||||||
Wayne PSC [Member] | Ownership [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Equity interest | 40% | ||||||||
H-TPKE, LLC (“H-TPKE”) [Member] | Ownership [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Equity interest | 60% | ||||||||
H-TPKE, LLC [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Percentage of aggregate membership interests | 73% | ||||||||
Promissory note | $ 600,000 | ||||||||
FREIT [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Ownership by parent | 40% | ||||||||
Promissory note | $ 400,000 | ||||||||
Pro-rata share based funding amount | $ 200,000 | ||||||||
Director [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Fees charged to operation | 2,127,000 | 2,201,000 | |||||||
Commissions and reimbursements | 701,000 | 548,000 | 982,000 | ||||||
Accounts Payable | 105,000 | 185,000 | |||||||
Director [Member] | Minimum [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Increase aggregate amount | $ 2,000,000 | ||||||||
Director [Member] | Maximum [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Increase aggregate amount | $ 4,000,000 | ||||||||
Affiliated Entity 1 [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Consulting services expense | 6,388,000 | 236,500 | 125,000 | ||||||
Robert S. Hekemian [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Consulting services expense | 0 | 0 | 8,000 | ||||||
Trustee fee expense | 831,000 | 508,000 | |||||||
Consulting services expense | 5,000 | ||||||||
Consulting fee quarterly installments | 15,000 | ||||||||
Robert S. Hekemian, Jr. [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Trustee fee expense | 100,000 | ||||||||
Allan Tubin [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Trustee fee expense | 40,000 | 30,000 | 26,000 | ||||||
David Hekemian [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Trustee fee expense | $ 150,000 | 57,000 | $ 50,000 | ||||||
Letter of Credit [Member] | |||||||||
Management agreement, fees and transactions with related party (Details) [Line Items] | |||||||||
Sales commissions | $ 32,500 |
Income taxes (Details)
Income taxes (Details) | 12 Months Ended | |
Oct. 31, 2022 | Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax | 143.80% | |
Capital gain from the sale | 100% | |
Ordinary taxable income | 92.40% |
Equity incentive plan (Details)
Equity incentive plan (Details) - USD ($) | 12 Months Ended | |||||||
Sep. 09, 2022 | Apr. 05, 2018 | Apr. 04, 2007 | Sep. 10, 1998 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Oct. 31, 2019 | |
Equity incentive plan (Details) [Line Items] | ||||||||
Exercise price (in Dollars per share) | $ 7.5 | |||||||
Outstanding options (in Shares) | 310,740 | |||||||
Stock compensation expense | $ 1,174,000 | |||||||
Aggregate intrinsic value of options expected to vest | 184,600 | |||||||
Aggregate intrinsic value of options exercisable | $ 2,000,000 | |||||||
Equity Incentive Plan [Member] | ||||||||
Equity incentive plan (Details) [Line Items] | ||||||||
Shares authorized to be issued under plan (in Shares) | 920,000 | |||||||
Increase in number of shares authorized (in Shares) | 300,000 | 300,000 | 920,000 | |||||
Shares available for issuance (in Shares) | 442,060 | |||||||
Employee Stock Option [Member] | ||||||||
Equity incentive plan (Details) [Line Items] | ||||||||
Outstanding options (in Shares) | 126,140 | 310,740 | 310,740 | 310,740 | ||||
Compensation expense related to stock options | $ 1,192,000 | $ 42,000 | $ 46,000 | |||||
Unrecognized compensation cost | $ 11,000 | |||||||
Unrecognized compensation cost, recognition period | 8 months 12 days | |||||||
Aggregate intrinsic value of options expected to vest | $ 729,000 | |||||||
Aggregate intrinsic value of options exercisable | $ 657,000 |
Equity incentive plan (Detail_2
Equity incentive plan (Details) - Schedule of stock option activity - Share-Based Payment Arrangement, Option [Member] - $ / shares | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Equity incentive plan (Details) - Schedule of stock option activity [Line Items] | |||
No. of Options Outstanding,Options outstanding at beginning of year | 310,740 | 310,740 | 310,740 |
Weighted Average Exercise price beginning of year (in Dollars per share) | $ 18.35 | $ 18.35 | $ 18.35 |
No. of Options Outstanding, Options granted during year | |||
Weighted Average Exercise price options granted during year (in Dollars per share) | |||
No. of Options Outstanding, Options forfeited/cancelled during year | |||
Weighted Average Exercise price forfeited/cancelled during year (in Dollars per share) | |||
No. of Options Outstanding, Options exercised during year | (184,600) | ||
Weighted Average Options exercised during year (in Dollars per share) | $ (10.99) | ||
No. of Options Outstanding, Options outstanding at end of year | 126,140 | 310,740 | 310,740 |
Weighted Average Exercise price at end of year (in Dollars per share) | $ 10.64 | $ 18.35 | $ 18.35 |
No. of Options Outstandin,Options vested and expected to vest | 124,850 | 309,450 | 308,310 |
No. of Options Outstanding, Options exercisable at end of year | 116,540 | 292,540 | 276,340 |
Deferred fee plan (Details)
Deferred fee plan (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Sep. 01, 2014 | Nov. 11, 2014 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Deferred fee plan (Details) [Line Items] | |||||
Average period | 10 years | ||||
Trustee fee expense | $ 0 | $ 0 | $ 21,000 | ||
Annual installments over a period | 10 years | ||||
Deferred Fee Plan [Member] | |||||
Deferred fee plan (Details) [Line Items] | |||||
Percentage of deferred fee plan accrued interest | 9% | ||||
Basis spread on any deferred fee | 150% | ||||
Trustee fee expense | $ 488,000 | $ 1,861,000 | |||
Shares issued (in Shares) | 27,176 | 100,655 | |||
Deferred trustee fees | $ 120,000,000 | $ 446,000 | 526,000 | ||
Dividends payable | 1,741,000 | 42,000 | $ 0 | ||
Cumulative fees | 1,454,000 | 1,366,000 | |||
Deferred accrued interest | $ 1,021,000 | $ 951,000 |
Dividends and earnings per sh_2
Dividends and earnings per share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Oct. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Dividends and earnings per share (Details) [Line Items] | ||||||||||
Dividends declared (amount) (in Dollars) | $ 65,163,000 | $ 1,755,000 | ||||||||
Dividends declared per share (in Dollars per share) | $ 9 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.05 | $ 0.05 | $ 0.05 | $ 9.2 | $ 0.25 | |
Average dilutive shares outstanding | 77,000 | 3,000 | 1,500 | |||||||
Earnings per share (in Dollars per share) | $ 0.07 | |||||||||
Anti-dilutive shares | 268,000 | 268,000 | ||||||||
FREIT Maryland [Member] | ||||||||||
Dividends and earnings per share (Details) [Line Items] | ||||||||||
Dividends declared (amount) (in Dollars) | $ 65,163,000 | $ 1,755,000 | $ 0 | |||||||
Dividends declared per share (in Dollars per share) | $ 9.2 | $ 0.25 |
Segment information (Details) -
Segment information (Details) - Schedule of segment information - Operating Segments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Real estate rental revenue: | |||
Real estate rental revenue | $ 31,253 | $ 50,521 | $ 53,124 |
Real estate operating expenses: | |||
Real estate operating expenses | 15,281 | 22,294 | 22,922 |
Net operating income: | |||
Net operating income | 15,972 | 28,227 | 30,202 |
Recurring capital improvements - residential | (1,034) | (625) | (347) |
Reconciliation to consolidated net income attributable to common equity: | |||
Segment NOI | 15,972 | 28,227 | 30,202 |
Deferred rents - straight lining | 18 | (230) | (397) |
Investment income | 358 | 116 | 204 |
Third party transaction costs | (4,606) | ||
Net gain on sale of Maryland properties | 68,771 | ||
Net realized gain on Wayne PSC interest rate swap termination | 1,415 | ||
Gain on deconsolidation of subsidiary | 27,680 | ||
Loss on investment in tenancy-in-common | (228) | (295) | (202) |
General and administrative expenses | (5,003) | (5,195) | (3,821) |
Depreciation | (3,995) | (9,300) | (10,341) |
Tenant improvement write-off due to COVID-19 | (7,277) | ||
Financing costs | (8,064) | (12,276) | (14,122) |
Net income | 69,244 | 1,047 | 17,320 |
Net (income) loss attributable to noncontrolling interests in subsidiaries | (23,252) | (120) | 3,233 |
Net income attributable to common equity | 45,992 | 927 | 20,553 |
Commercial [Member] | |||
Real estate rental revenue: | |||
Real estate rental revenue | 10,626 | 23,547 | 24,486 |
Real estate operating expenses: | |||
Real estate operating expenses | 6,427 | 11,223 | 11,334 |
Net operating income: | |||
Net operating income | 4,199 | 12,324 | 13,152 |
Residential [Member] | |||
Real estate rental revenue: | |||
Real estate rental revenue | 20,627 | 26,974 | 28,638 |
Real estate operating expenses: | |||
Real estate operating expenses | 8,854 | 11,071 | 11,588 |
Net operating income: | |||
Net operating income | $ 11,773 | $ 15,903 | $ 17,050 |
Termination of Purchase and S_2
Termination of Purchase and Sale Agreement (Details) - USD ($) | 12 Months Ended | |||||||
Dec. 08, 2022 | Feb. 04, 2022 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | Nov. 22, 2021 | May 06, 2020 | Jan. 14, 2020 | |
Termination of Purchase and Sale Agreement (Details) [Line Items] | ||||||||
Purchaser deposit | $ 931,000 | $ 15,526,731 | ||||||
Sale agreement | 15,000,000 | |||||||
Liquidated damages | 15,000,000 | |||||||
Escrow agent | 15,000,000 | |||||||
Escrow returned | $ 15,000,000 | 15,526,731 | ||||||
Awarding sellers | $ 3,420,422,880 | |||||||
Order awarding | $ 3,420,422,880 | |||||||
Legal and other expenses | 0 | $ 0 | $ 4,606,000,000 | |||||
Legal costs | 1,170,000,000 | $ 2,282,000,000 | $ 957,000,000 | |||||
Purchase and Sale Agreement [Member] | ||||||||
Termination of Purchase and Sale Agreement (Details) [Line Items] | ||||||||
Purchaser deposit | $ 15,000,000 | |||||||
Kushner Realty Acquisition LLC [Member] | ||||||||
Termination of Purchase and Sale Agreement (Details) [Line Items] | ||||||||
Purchaser deposit | $ 15,000,000 | |||||||
Purchase and Sale Agreement [Member] | Six Apartment Properties [Member] | ||||||||
Termination of Purchase and Sale Agreement (Details) [Line Items] | ||||||||
Ownership interests | 100% | |||||||
Purchaser deposit | $ 15,000,000 |
Covid-19 Pandemic (Details)
Covid-19 Pandemic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Covid-19 Pandemic (Details) [Line Items] | |||
Rental revenue deemed uncollectible | $ 600 | $ 1,300 | $ 1,400 |
Commercial tenants deferrals | 0 | 132,000 | 206,000 |
Rent abatements | 9,000 | 239,000 | 238,000 |
Uncollected rents | 300 | ||
Straight line rent | 400 | ||
Unamortized leasing commissions | 200 | ||
Net income | 900 | ||
Total deferred payments | 1,013,000 | ||
Amount repaid | 623,000 | 162,000 | |
Commercial Properties [Member] | |||
Covid-19 Pandemic (Details) [Line Items] | |||
Security deposit as commercial outstanding receivables due | 397,000 | ||
FREIT [Member] | |||
Covid-19 Pandemic (Details) [Line Items] | |||
Rental revenue deemed uncollectible | 300 | 800 | 900 |
Commercial tenants deferrals | 0 | 81,000 | 192,000 |
Rent abatements | 9,000 | $ 158,000 | 156,000 |
Net book valu | $ 7,300 | ||
FREIT Maryland [Member] | |||
Covid-19 Pandemic (Details) [Line Items] | |||
Net income | 500 | ||
Impaired written off | $ 4,400 |
Selected quarterly financial _3
Selected quarterly financial data (unaudited) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 09, 2022 | Oct. 31, 2022 | [1] | Jul. 31, 2022 | Apr. 30, 2022 | [2] | Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Jan. 31, 2021 | Jul. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Selected quarterly financial data (unaudited) (Details) [Line Items] | ||||||||||||||
Gain from sales | $ 70,000,000 | $ 1,200,000 | ||||||||||||
Income (loss) from discontinued operations | $ 46,300,000 | |||||||||||||
Earnings per share basic | $ 0.17 | $ (0.08) | $ 0.16 | $ (0.05) | $ 6.51 | $ 0.02 | $ 0.03 | $ 0.08 | $ 6.52 | $ 0.13 | $ 2.94 | |||
Earnings per share diluted | $ 0.17 | $ (0.08) | $ 0.16 | $ (0.05) | $ 6.45 | $ 6.45 | 0.13 | $ 2.94 | ||||||
Increase in expenses of compensation cost | $ 1,200,000 | |||||||||||||
Settle-ups of Common Area Maintenance with commercial tenants | $ 300,000 | $ 700,000 | $ 400,000 | |||||||||||
Maryland Properties [Member] | ||||||||||||||
Selected quarterly financial data (unaudited) (Details) [Line Items] | ||||||||||||||
Earnings per share basic | $ 6.58 | 700,000 | ||||||||||||
Earnings per share diluted | $ 6.52 | $ 0.1 | ||||||||||||
Wayne PSC [Member] | ||||||||||||||
Selected quarterly financial data (unaudited) (Details) [Line Items] | ||||||||||||||
Gain from sales | $ 1,400 | |||||||||||||
Earnings per share basic | $ 0.6 | |||||||||||||
Earnings per share diluted | $ 0.08 | |||||||||||||
[1]Includes stock compensation expense of approximately $1.2 million for the incremental compensation cost attributed to the revaluation of the stock options modified on September 9, 2022 ($0.17 per share basic and diluted).[2]Includes $1.2 million reduction in gain on sale of the Maryland properties with a consolidated impact to FREIT of approximately $0.7 million ($0.10 per share basic and diluted). |
Selected quarterly financial _4
Selected quarterly financial data (unaudited) (Details) - Schedule of quarterly results of operation - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||
Sep. 09, 2022 | Oct. 31, 2022 | Jul. 31, 2022 | Apr. 30, 2022 | Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Apr. 30, 2021 | Jan. 31, 2021 | Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |||||
Schedule Of Quarterly Results Of Operation Abstract | ||||||||||||||||
Revenue | $ 7,048 | $ 6,959 | $ 6,615 | $ 10,649 | $ 12,191 | $ 12,542 | $ 12,804 | $ 12,754 | $ 31,271 | $ 50,291 | $ 52,727 | |||||
Expenses, net | 7,770 | 5,145 | 7,616 | (58,504) | [1] | 12,176 | 12,226 | 12,867 | 11,975 | (37,973) | 49,244 | |||||
Net income (loss) | (722) | 1,814 | (1,001) | 69,153 | 15 | 316 | (63) | 779 | 69,244 | 1,047 | 17,320 | |||||
Net (income) loss attributable to noncontrolling interests in subsidiaries | 168 | (693) | [2] | 649 | (23,376) | [1] | 136 | (107) | 72 | (221) | (23,252) | (120) | 3,233 | |||
Net income (loss) attributable to common equity | $ (554) | $ 1,121 | $ (352) | $ 45,777 | $ 151 | $ 209 | $ 9 | $ 558 | $ 45,992 | $ 927 | $ 20,553 | |||||
Earnings (Loss) per share - basic (in Dollars per share) | $ 0.17 | $ (0.08) | [3] | $ 0.16 | $ (0.05) | [4] | $ 6.51 | $ 0.02 | $ 0.03 | $ 0.08 | $ 6.52 | $ 0.13 | $ 2.94 | |||
Earnings (Loss) per share - diluted (in Dollars per share) | $ 0.17 | (0.08) | [3] | $ 0.16 | (0.05) | [4] | 6.45 | 6.45 | 0.13 | $ 2.94 | ||||||
Dividends declared per share (in Dollars per share) | $ 9 | $ 0.1 | $ 0.1 | $ 0.1 | $ 0.05 | $ 0.05 | $ 0.05 | $ 9.2 | $ 0.25 | |||||||
[1]Includes $70 million gain on sale of the Maryland properties with a consolidated impact to FREIT of approximately $46.3 million ($6.58 per share basic and $6.52 per share diluted).[2]Includes $1.4 million realized gain on Wayne PSC interest rate swap termination with a consolidated impact to FREIT of approximately $0.6 million ($0.08 per share basic and diluted).[3]Includes stock compensation expense of approximately $1.2 million for the incremental compensation cost attributed to the revaluation of the stock options modified on September 9, 2022 ($0.17 per share basic and diluted).[4]Includes $1.2 million reduction in gain on sale of the Maryland properties with a consolidated impact to FREIT of approximately $0.7 million ($0.10 per share basic and diluted). |
SCHEDULE XI - REAL ESTATE AND_3
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) $ in Millions | Oct. 31, 2022 USD ($) |
Regency Club [Member] | |
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) [Line Items] | |
Federal income tax | $ 13.8 |
Station Place [Member] | |
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) [Line Items] | |
Federal income tax | $ 4.2 |
SCHEDULE XI - REAL ESTATE AND_4
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - Schedule of real estate and accumulated depreciation $ in Thousands | 12 Months Ended | |
Oct. 31, 2022 USD ($) | ||
Residential Properties: | ||
Accumulated Depreciation | $ 59,660 | |
Encum-brances | 139,217 | |
Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 3,034 | |
Date of Construction | 1966 | |
Date Acquired | 1975 | |
Encum-brances | $ 9,291 | |
Steuben Arms, River Edge, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Steuben Arms, River Edge, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 6,093 | |
Date of Construction | 1964 | |
Date Acquired | 1965 | |
Encum-brances | $ 28,815 | |
Berdan Court, Wayne, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Berdan Court, Wayne, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 10,545 | |
Date Acquired | 1994 | |
Encum-brances | $ 25,000 | |
Westwood Hills, Westwood, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date of Construction | 1965 | |
Life on Which Depreciation is Computed | 7 | |
Westwood Hills, Westwood, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date of Construction | 70 | |
Life on Which Depreciation is Computed | 39 | |
Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 7,063 | |
Encum-brances | $ 7,500 | |
Boulders - Rockaway, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date of Construction | 2005 | |
Date Acquired | 1963 | |
Life on Which Depreciation is Computed | 7 | |
Boulders - Rockaway, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date of Construction | 2006 | |
Date Acquired | 1964 | |
Life on Which Depreciation is Computed | 40 | |
Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 4,191 | |
Date of Construction | 2003 | |
Date Acquired | 2014 | |
Encum-brances | $ 14,587 | |
Regency Club - Middletown, NY [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Regency Club - Middletown, NY [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 1,325 | |
Date of Construction | 2015 | |
Date Acquired | 2017 | |
Encum-brances | $ 11,750 | |
Station Place - Red Bank, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 7 | |
Station Place - Red Bank, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 40 | |
Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 4,742 | |
Date of Construction | 1963/75/97 | |
Date Acquired | 1966 | |
Encum-brances | ||
Franklin Crossing, Franklin Lakes, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Franklin Crossing, Franklin Lakes, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 39.5 | |
Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 167 | |
Date of Construction | 1940 | |
Date Acquired | 1962 | |
Encum-brances | ||
Glen Rock, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Glen Rock, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 25 | |
Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 8,681 | |
Date of Construction | 1981 | |
Date Acquired | 1988 | |
Encum-brances | $ 17,274 | |
Westridge Square S/C, Frederick, MD [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Westridge Square S/C, Frederick, MD [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 31.5 | |
Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | $ 13,819 | |
Date of Construction | 1955/89/00 | |
Date Acquired | 2002 | |
Encum-brances | $ 25,000 | |
Preakness S/C, Wayne, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 5 | |
Preakness S/C, Wayne, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Life on Which Depreciation is Computed | 39.5 | |
Land Leased [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Encum-brances | ||
Land Leased [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date Acquired | 1963 | |
Land Leased [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date Acquired | 1964 | |
Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Encum-brances | ||
Franklin Lakes, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date Acquired | 1966 | |
Franklin Lakes, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date Acquired | 93 | |
Wayne, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Date Acquired | 2002 | |
Encum-brances | ||
Rockaway, NJ [Member] | ||
Residential Properties: | ||
Accumulated Depreciation | ||
Encum-brances | ||
Rockaway, NJ [Member] | Minimum [Member] | ||
Residential Properties: | ||
Date Acquired | 1963 | |
Rockaway, NJ [Member] | Maximum [Member] | ||
Residential Properties: | ||
Date Acquired | 1964 | |
Column C [Member] | ||
Residential Properties: | ||
Land | $ 34,606 | |
Buildings and Improvements | 74,743 | |
Column C [Member] | Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Land | 364 | |
Buildings and Improvements | 1,773 | |
Column C [Member] | Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 250 | |
Buildings and Improvements | 2,206 | |
Column C [Member] | Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Land | 3,849 | |
Buildings and Improvements | 11,546 | |
Column C [Member] | Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 1,632 | |
Buildings and Improvements | ||
Column C [Member] | Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Land | 2,833 | |
Buildings and Improvements | 17,792 | |
Column C [Member] | Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Land | 8,793 | |
Buildings and Improvements | 10,757 | |
Column C [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 29 | |
Buildings and Improvements | ||
Column C [Member] | Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Land | 12 | |
Buildings and Improvements | 36 | |
Column C [Member] | Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Land | 6,889 | |
Buildings and Improvements | 6,416 | |
Column C [Member] | Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 9,280 | |
Buildings and Improvements | 24,217 | |
Column C [Member] | Land Leased [Member] | ||
Residential Properties: | ||
Land | 114 | |
Column C [Member] | Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 224 | |
Buildings and Improvements | ||
Column C [Member] | Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 286 | |
Buildings and Improvements | ||
Column C [Member] | Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 51 | |
Buildings and Improvements | ||
Column D [Member] | ||
Residential Properties: | ||
Land | 6,612 | |
Improve-ments | 40,262 | |
Carrying Costs | ||
Column D [Member] | Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 1,774 | |
Column D [Member] | Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 5,230 | |
Column D [Member] | Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 3,014 | |
Column D [Member] | Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 3,386 | |
Improve-ments | 16,222 | |
Column D [Member] | Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 1,218 | |
Column D [Member] | Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 20 | |
Column D [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 3,382 | |
Improve-ments | 7,504 | |
Column D [Member] | Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 164 | |
Column D [Member] | Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 2,438 | |
Column D [Member] | Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | 2,678 | |
Column D [Member] | Land Leased [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | ||
Column D [Member] | Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | (156) | |
Improve-ments | ||
Carrying Costs | ||
Column D [Member] | Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | ||
Carrying Costs | ||
Column D [Member] | Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | ||
Improve-ments | ||
Column E [Member] | ||
Residential Properties: | ||
Land | 41,218 | |
Buildings and Improvements | 115,005 | |
Total | 156,223 | [1] |
Column E [Member] | Steuben Arms, River Edge, NJ [Member] | ||
Residential Properties: | ||
Land | 364 | |
Buildings and Improvements | 3,547 | |
Total | 3,911 | [1] |
Column E [Member] | Berdan Court, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 250 | |
Buildings and Improvements | 7,436 | |
Total | 7,686 | [1] |
Column E [Member] | Westwood Hills, Westwood, NJ [Member] | ||
Residential Properties: | ||
Land | 3,849 | |
Buildings and Improvements | 14,560 | |
Total | 18,409 | [1] |
Column E [Member] | Boulders - Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 5,018 | |
Buildings and Improvements | 16,222 | |
Total | 21,240 | [1] |
Column E [Member] | Regency Club - Middletown, NY [Member] | ||
Residential Properties: | ||
Land | 2,833 | |
Buildings and Improvements | 19,010 | |
Total | 21,843 | [1] |
Column E [Member] | Station Place - Red Bank, NJ [Member] | ||
Residential Properties: | ||
Land | 8,793 | |
Buildings and Improvements | 10,777 | |
Total | 19,570 | [1] |
Column E [Member] | Franklin Crossing, Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 3,411 | |
Buildings and Improvements | 7,504 | |
Total | 10,915 | [1] |
Column E [Member] | Glen Rock, NJ [Member] | ||
Residential Properties: | ||
Land | 12 | |
Buildings and Improvements | 200 | |
Total | 212 | [1] |
Column E [Member] | Westridge Square S/C, Frederick, MD [Member] | ||
Residential Properties: | ||
Land | 6,889 | |
Buildings and Improvements | 8,854 | |
Total | 15,743 | [1] |
Column E [Member] | Preakness S/C, Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 9,280 | |
Buildings and Improvements | 26,895 | |
Total | 36,175 | [1] |
Column E [Member] | Land Leased [Member] | ||
Residential Properties: | ||
Land | 114 | |
Buildings and Improvements | ||
Total | 114 | [1] |
Column E [Member] | Franklin Lakes, NJ [Member] | ||
Residential Properties: | ||
Land | 68 | |
Buildings and Improvements | ||
Total | 68 | [1] |
Column E [Member] | Wayne, NJ [Member] | ||
Residential Properties: | ||
Land | 286 | |
Buildings and Improvements | ||
Total | 286 | [1] |
Column E [Member] | Rockaway, NJ [Member] | ||
Residential Properties: | ||
Land | 51 | |
Buildings and Improvements | ||
Total | $ 51 | [1] |
[1]Total cost for each property is the same for federal income tax purposes, with the exception of the Regency Club and Station Place whose cost for federal income tax purposes is approximately $13.8 million and $4.2 million, respectively. |
SCHEDULE XI - REAL ESTATE AND_5
SCHEDULE XI - REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - Schedule of reconciliation of real estate and accumulated depreciation - USD ($) $ in Thousands | 12 Months Ended | ||
Oct. 31, 2022 | Oct. 31, 2021 | Oct. 31, 2020 | |
Real Estate [Member] | |||
Real estate: | |||
Balance, Beginning of year | $ 386,920 | $ 385,853 | $ 448,866 |
Additions - Buildings and improvements | 1,474 | 1,883 | 2,055 |
Disposals - Buildings and improvements | (232) | (816) | (585) |
Tenant improvement write-off due to COVID-19 | (8,910) | ||
Sale of property | (231,939) | ||
Deconsolidation of subsidiary | (55,573) | ||
Balance, end of year | 156,223 | 386,920 | 385,853 |
Accumulated Depreciation [Member] | |||
Real estate: | |||
Balance, Beginning of year | 115,621 | 107,137 | 118,363 |
Additions - Charged to operating expenses | 3,995 | 9,300 | 10,341 |
Tenant improvement write-off due to COVID-19 - Charged to operating expenses | (1,637) | ||
Disposals - Buildings and improvements | (232) | (816) | (583) |
Sale of property | (59,724) | ||
Deconsolidation of subsidiary | (19,347) | ||
Balance, end of year | $ 59,660 | $ 115,621 | $ 107,137 |