Exhibit 1.
RESULTS OF OPERATIONS, ACQUISITION, CASH DIVIDEND, STOCK DIVIDEND
HACKENSACK, NJ, March 12, 2004 - First Real Estate Investment Trust ("FREIT")
announced its operating results for the three months ended January 31, 2004. All
per share amounts discussed represent diluted earnings per share. The results of
operations for the three months are not necessarily indicative of future
operation results.
OPERATING RESULTS
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Revenue for the three months ended January 31, 2004 ("Current Quarter")
increased $618,000 (12.8%) to $5,450,000 from $4,832,000 for the three months
ended January 31, 2003 ("Prior Year's Quarter"). Net income increased $233,000
(18.3%) to $1,503,000 ($ .46 per share) for the Current Quarter, compared to
$1,270,000 ($ .39 per share) for the Prior Year's Quarter. The Current Quarter's
revenue and net income increases are principally from real estate operations,
which include a non-recurring amount of $308,000 representing a lease
termination payment made to FREIT by a former tenant.
The following table summarizes revenues, expenses, and net income components.
Three Months Ended
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January 31,
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2004 2003
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($000, except Increase
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per share amounts) (Decrease)
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Revenue
Retail properties $ 3,698 $ 3,086 $ 612
Residential properties 1,647 1,614 33
All other 105 132 (27)
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Total Revenue 5,450 4,832 618
Expenses:
Real estate operations 1,777 1,695 82
Finanicng costs 1,324 1,194 130
Depreciation 609 532 77
Other 237 141 96
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Total expenses 3,947 3,562 385
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Net income $ 1,503 $ 1,270 $ 233
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Net Income Components
Retail Properties $ 2,634 $ 2,108 $ 526
Residenital properties 934 895 39
Investment income 45 53 (8)
Equity in income of affiliates 60 81 (21)
Corporate expenses (182) (92) (90)
Depreciation (609) (532) (77)
Financing Costs (1,324) (1,194) (130)
Minority interest (55) (49) (6)
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Net Income $ 1,503 $ 1,270 $ 233
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Earnings per share:
Basic $ 0.48 $ 0.41 $ 0.07
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Diluted $ 0.46 $ 0.39 $ 0.07
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ACQUISITION
FREIT, through an affiliate, has entered into a contract to purchase an
apartment community in Northern New Jersey. FREIT is currently conducting
inspections as part of its due diligence review. If the findings of the due
diligence review are satisfactory to FREIT, the acquisition is expected to close
on or about March 31, 2004. The acquisition price will be approximately $45
million that will be financed in part by a mortgage and in part by cash.
DIVIDENDS
A) The first quarter cash dividend, which has been increased to
$.40 per share from $.35, is payable on March 16, 2004 to share
holders of record on March 1, 2004.
B) On March 4, 2004, FREIT's Board of Trustees declared a stock split in
the form of a stock dividend. Each shareholder will receive one
additional share for each share owned. The stock dividend will be
distributed on March 31, 2004 to shareholders of record on March 17,
2004. The shares are expected to begin trading on a split-adjusted
basis in the over-the-counter market on April 1, 2004.
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 $105 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.
505 Main Street, Hackensack, NJ, 07601