Exhibit I
RESULTS OF OPERATIONS
THIRD QUARTER & NINE MONTHS ENDED JULY 31, 2001
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HACKENSACK, NJ, September 5, 2001 - First Real Estate Investment Trust ("FREIT")
announced its operating results for the third quarter and nine months ended
July 31, 2001.
Net Income for the third quarter increased 2.6% to $1,446,000 ($.92 per diluted
share) on revenues of $5,036,000. This compares to Net Income of $1,409,000
($.90 per share) on revenues of $4,892,000 for last years third quarter.
Funds Form Operations ("FFO") for the current year's quarter increased 3.9%
to $1,859,000 ($1.18 per share) compared to $1,790,000 ($1.15 per share)
last year.
Net Income for the nine months ended July 31, 2001 increased 3.1% to $3,524,000
($2.25 per diluted share) on revenues of $14,647,000, compared to Net
Income of $3,418,000 ($2.19 per share) on revenues of $13,311,000 last
year. FFO for the current nine-month period increased 6.3% to $4,745,000
($3.03 per diluted share) from $4,464,000 ($2.86 per share) last year.
RESIDENTIAL PROPERTIES: Earnings (Net Income before debt service) at FREIT's
Residential properties increased 7.1% to $2.3 million on revenues of $5.0
million during the nine months ended 7/31/01. This compares to Earnings of
$2.1 million on revenues of $4.7 million for the nine months ended 7/31/00.
Average occupancy during the current nine months period was 93.9% compared
to 93.1% for the prior year's period. The increase in Net Income resulted
from higher monthly apartment rents experienced during the current
nine-month period compared to last year.
Net Income at FREIT's 40% owned affiliate, which owns a 210 unit garden
apartment community in Westwood, NJ, increased 10.9% to $296,000 for the
current nine month period, up from $267,000 last year.
RETAIL PROPERTIES: Earnings (Net Income before debt service) at the Retail
properties increased 6.1% to $4.9 million on revenues of $9.0 million
during the nine months ended 7/31/01 compared Earnings of $4.6 million on
revenues of $7.9 million for last year's comparable period. All of the
increase is attributable to the inclusion of the operations of Olney Town
Center ("Olney") for the full nine months this year compared to only four
months last year.
EXPENSES: Increases in expenses at the properties resulted from the following:
higher utility and snow removal costs due to a more severe winter this
fiscal year compared to last year, and the inclusion of Olney.
DIVIDENDS: FREIT declared a third quarter dividend of $.60 per share payable on
September 18, 2001 to shareholders of record on September 4, 2001. This
raises total dividends for the 2001 fiscal year to $1.80 per share compared
to last year's dividends per share of $1.50 for the nine months ended
7/31/00.
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The statements in this report that relate to future earnings or
performance are forward-looking. Actual results might differ
materially and be adversely affected by such factors as longer
than anticipated lease-up periods or the inability of tenants
to pay increased rents. Additional information about these
factors is contained in the Trust's filings with the SEC including
the Trust's most recent filed report on Form 10-K and Form 10-Q.
FIRST REAL ESTATE INVESTMENT TRUST
Of New Jersey
Summary Consolidated Balance Sheet Data
(in thousand of dollars)
July 31,
2001 2000
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Real Estate Properties, Net Of Depreciation $ 77,247 $ 78,353
Cash & Cash Items 8,712 2,360
Marketable Securities 4,518 9,380
Equity In Affiliate (378) (359)
Mortgage Notes Payable 69,575 70,418
Minority Interest 1,273 1,034
Shareholder's Equity 21,927 21,526
Shares Outstanding 1,560 1,560
Summary Consolidated Statement of Income
(in thousands of dollars, except Per Share amounts)
Nine Months Ended Three Months Ended
July 31, July 31,
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2001 2000 2001 2000
Revenues:
Rental Income $ 11,737 $ 10,703 $ 3,962 $ 3,873
Reimbursements 1,936 1,555 650 561
Net Investment Income 593 620 189 204
Equity In Earnings Of Affiliate 118 107 56 35
Other 263 326 179 219
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Total Revenue 14,647 13,311 5,036 4,892
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Expenses:
Operating Expenses & Management Fees 3,315 2,779 1,031 896
Real Estate Taxes 1,745 1,603 587 565
Financing Costs 4,074 3,779 1,300 1,400
General & Administrative 289 273 90 69
Depreciation 1,653 1,442 551 542
Minority Interest 47 17 31 11
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Total Expenses 11,123 9,893 3,590 3,483
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Net Income 3,524 3,418 1,446 1,409
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Net Income Per Share
Basic Earnings Per Share $ 2.26 $ 2.19 $ 0.93 $ 0.90
Diluted Earnings Per Share $ 2.25 (a) $ 0.92 (a)
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Funds From Operations:
Net Income $ 3,524 $ 3,418 $ 1,446 $ 1,409
Depreciation & Amortization 1,747 1,522 579 574
Deferred Rents (301) (319) (99) (123)
Capital Improvements - Apartments (348) (230) (124) (115)
Other 123 90 57 45
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Funds From Operations 4,745 4,481 1,859 1,790
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Funds From Operations Per Share
Basic FFO Per Share $ 3.04 $ 2.87 $ 1.19 $ 1.15
Diluted FFO Per Share $ 3.03 (a) $ 1.18 (a)
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(a) No dilution.
First Real Estate Investment Trust is a publicly traded
(over-the-counter -- symbol FREVS) REIT organized in 1961. It has
approximately $97 million (historical cost basis) of assets.
Its portfolio of residential and retail properties extends from
Eastern L.I. to Maryland, with the largest concentration in Northern New Jersey
For additional information contact Shareholder Relations at (201) 488-6400