Exhibit
FIRST REAL ESTATE
INVESTMENT TRUST
of New Jersey
RESULTS OF OPERATIONS
FIRST QUARTER ENDED JANUARY 31, 2002
HACKENSACK, NJ, March 4, 2002 - First Real Estate Investment Trust ("FREIT")
announced operating results for the first quarter ended January 31, 2002. All
per share amounts represent diluted earnings per share and prior periods have
been adjusted to reflect the two-for-one share split paid October 18, 2001.
Net income for the first quarter ended January 31, 2001 ("Current Quarter")
increased 19.8% to $1,338,000 ($.42 per share) on revenues of $4,969,000. This
compares to Net Income of $1,117,000 ($.36 per share) on revenues of $4,818,000
for the quarter ended January 31, 2001 ("Prior Year's Quarter"). FFO for the
Current Quarter increased 14.3% to $.56 per share from $.49 per share for the
Prior Year's Quarter. The operating results for the Current Quarter are not
necessarily indicative of the results to be expected for the full year.
Both our Retail properties and our Residential properties registered increases
in revenues and earnings. Earnings at our Retail properties benefited from
higher occupancy, increased base rents, and increased, one time, expense
pass-through.
At our Residential properties, the Current Quarter experienced slightly higher
occupancy, 94.3%, than during the Prior Year's Quarter of 93.3%. However, the
recession has affected the apartment mix of the vacancies. The Current Quarter
has experienced a larger number of higher rent apartments being vacant than
during the Prior Year's Quarter. This results in a larger dollar loss
attributable to vacancies.
Net Income at our 40% owned affiliate, Westwood Hills L.L.C., which owns a 210
unit garden apartment community, increased to $127,000 for the Current Quarter
from $76,000 for the Prior Year's Quarter. During the Current Quarter the
property benefited from continuing high occupancy, 97%, higher rents and lower
operating expenses than experienced during Prior Year's Quarter. As a result our
share of the affiliates earnings increased to $51,000 from $30,000 last year.
As a result of lower interest rates available for investing our cash and cash
equivalents, net investment income decreased to $68,000 during the Current
Quarter from $218,000 for the Prior Year's Quarter. However, we benefited from
lower interest rates charged on our floating rate mortgage. Financing costs
during the Current Quarter were reduced to $1,216,000 from $1,378,000 for the
Prior Year's Quarter.
A first quarter dividend of $.30 per share has been declared and will be payable
on March 15, 2002 to shareholders of record on March 1, 2002.
OoOoOoO
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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.
For additional information contact Shareholder Relations at (201) 488-6400
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FIRST REAL ESTATE INVESTMENT TRUST
of New Jersey
Summary Consolidated Balance Sheet Data
(in thousand of dollars except Per Share amounts)
January 31,
2002 2002
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Real Estate Properties $76,547 $77,663
Cash & Cash Items 13,392 2,259
Marketable Securities -- 9,506
Morgage notes Payable 69,093 70,005
Shareholder's Equity 21,990 21,380
Summary Consolidated
Statement of Income
Quater Ended
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January 31,
-----------
2002 2000
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Revenue:
Real Estate Operations $ 4,827 $ 4,570
Net Investment Income 68 218
Equity In Earnings Of Affiliate 51 30
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Total Revenue 4,946 4,818
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Expense:
Real Estate Operations 1,068 1,097
Real Estate Taxes 605 579
Financing Costs 1,216 1,378
General & Administrative 120 89
Depreciation 552 548
Minority Interest 47 10
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Total Expenses 3,608 3701
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Net Income $ 1,338 $ 1,117
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Net Income Per Share:
Basic $ 0.43 $ 0.36
Diluted $ 0.42 $ 0.36
Funds From Operations
Net Income $ 1,338 $ 1,117
Depreciation & Amortization 552 548
Deferred Rents (93) (107)
Capital Improvements - Apartments (90) (100)
Other 68 68
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Total FFO $ 1,775 $ 1,526
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FFO Per Share:
Basic $ 0.57 $ 0.49
Diluted $ 0.56 $ 0.49
Dividends Per Share $ 0.30 $ 0.30
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FREIT is a publicly traded (over-the-counter - symbol FREVS) REIT organized in
1961. It has approximately $96 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