Exhibit 1
FIRST REAL ESTATE
INVESTMENT TRUST
of New Jersey
RESULTS OF OPERATIONS
SIX AND THREE MONTHS ENDED APRIL 30, 2002 AND 2001
HACKENSACK, NJ, June 6, 2002 - First Real Estate Investment Trust ("FREIT")
announced its operating results for the six and three months ended April 30,
2002. All per share amounts represent diluted earnings per share and periods
prior to October 18, 2001 have been adjusted to reflect the two-for-one share
dividend paid on that date. The results of operations for the six and three
month periods are not necessarily indicative of the results to be expected for
the full year.
Net Income for the three months ended April 30, 2002 increased 39% to $1,336,000
($.42 per share) on revenues of $4,942,000 from Net Income of $961,000 ($.31 per
share) on revenues of $4,793,000 for the three months ended April 30, 2001. FFO
for the current quarter increased 33.7% to $1,796,000 ($.56 per share) compared
to $1,343,000 ($.43 per share) for the comparable quarter last year.
For the six months ended April 30, 2002 Net Income increased 28.7% to $2,674,000
($.84 per share) on revenues of $9,888,000. This compares to Net Income of
$2,078,000 ($.67 per share) on revenues of $9,611,000 for last year's six month
period. FFO for the current six month period increased 24.5% to $3,570,000
($1.12 per share) from $2,868,000 ($.92 per share) last year.
RETAIL PROPERTIES: For the six months ended April 30, 2002, Earnings (Net income
before depreciation, deferred rents, and financing costs) increased 12% to $4.3
million on revenues of $6.0 million. This compares to Earnings of $3.8 million
on revenues of $5.7 million for the prior year. The increases in current years
earnings and revenues are attributable to higher average occupancy (97.3% vs.
94.8%), and to a lesser degree, scheduled rent increases.
RESIDENTIAL PROPERTIES: For the six months ended April 30, 2002, Earnings (Net
income before depreciation and financing costs) increased 9% to $1.9 million on
revenues of $3.4 million. This compares to Earnings of $1.7 million on revenues
of $3.3 million last year. The increases are attributable to higher average
occupancy (94.9% vs. 93.0%), higher monthly rents, and lower operating expenses
due to the mild winter. A contract has been entered into for the sale of FREIT's
132 unit Camden Property. The seller is currently in due-diligence review. The
sale, upon closing, will have no material financial affect on FREIT's future
operating results.
Net Income at our 40% owned affiliate, which owns a 210-unit garden apartment
complex in Westwood, NJ, increased 75% to $273,000 from $156,000 last year. As a
result our share of income from our affiliate increased to $109,000 this year
compared to $62,000 last year.
NET INVESTMENT INCOME / FINANCING COSTS: As a result of the lower interest rate
environment compared to last year, interest income has fallen to $123,000 this
year compared to $404,000 last year. Financing costs falling to $2,441,000 this
year, compared to $$2,774,000 last year, has offset this reduction.
DIVIDENDS: For the second quarter ended April 30, 2002, FREIT declared a $.30
per share dividend payable on June 18, 2002 to share holders of record on June
3, 2002. This raises dividends this year to $.60 per share.
(over)
FIRST REAL ESTATE INVESTMENT TRUST of New Jersey
Summary Consolidated Balance Sheet Data
(in thousands of dollars except Per Share amounts)
April 30, October 31,
2002 2001
---- ----
Real Estate Properties $ 76,121 $ 76,955
Cash & Cash Items 13,935 13,187
Marketable Securities 500
Mortgage Notes Payable 68,866 69,354
Shareholders' Equity 22,392 21,588
Summary Consolidated Statement of Income
Six Month Ended Three Months Ended
--------------- ------------------
April 30, April 30,
2002 2001 2002 2001
---- ---- ---- ----
Revenues:
Real Estate Operations $ 9,656 $ 9,145 $ 4,829 $ 4,575
Net Investment Income 123 404 55 186
Equity In Earnings Of Affiliate 109 62 58 32
-------- -------- -------- --------
Total Revenue 9,888 9,611 4,942 4,793
-------- -------- -------- --------
Expenses:
Real Estate Operations 2,240 2,300 1,120 1,188
Real Estate Taxes 1,211 1,158 606 579
Financing Costs 2,441 2,774 1,225 1,396
General & Administration 218 199 103 115
Depreciation 1,104 1,102 552 554
-------- -------- -------- --------
Total Expenses 7,214 7,533 3,606 3,832
-------- -------- -------- --------
Net Income $ 2,674 $ 2,078 $ 1,336 $ 961
======== ======== ======== ========
Net Income Per Share
Basic $ 0.86 $ 0.67 $ 0.43 $ 0.31
Diluted $ 0.84 $ 0.67 $ 0.42 $ 0.31
Funds From Operations :
Net Income $ 2,674 $ 2,078 $ 1,336 $ 961
Depreciation & Amortization 1,149 1,149 566 570
Deferred Rents (187) (202) (94) (95)
Capital Improvements - Apartments (150) (224) (60) (124)
Minority Interest 92 16 45 6
Other (8) 51 3 25
-------- -------- -------- --------
Total FFO $ 3,570 $ 2,868 $ 1,796 $ 1,343
======== ======== ======== ========
FFO Per Share
Basic $ 1.14 $ 0.92 $ 0.58 $ 0.43
Diluted $ 1.12 $ 0.92 $ 0.56 $ 0.43
Dividends Per Share $ 0.60 $ 0.60 $ 0.30 $ 0.30
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 Forms 10-K and 10-Q.
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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.
For additional information contact Shareholder Relations at (201) 488-6400.