Financial Analysis

"Note 7 - Commitments and contingencies: Leases Commercial tenants: FREIT leases commercial space having a net book value of approximately $33.7 million at October 31, 2025 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, 2025, is as follows: Year Ending October 31, Amount 2026 $ 5,189 2027 4,178 2028 3,116 2029 2,875 2030 2,693 Thereafter 2,795 Total $ 20,846 The above amounts assume that all leases that 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 based on the percentage of reported tenants' sales …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 5 Mortgages payable and line of credit: October 31, 2025 October 31, 2024 Principal (Including Deferred Interest) Unamortized Debt Issuance Costs Principal (Including Deferred Interest) Unamortized Debt Issuance Costs (In Thousands of Dollars) (In Thousands of Dollars) Westwood, NJ (A) $ 9,808 $ 31 $ 15,995 $ 9 Wayne, NJ (B) 28,190 185 28,728 234 River Edge, NJ (C) 8,715 33 8,811 55 Red Bank, NJ (D) 11,030 33 11,281 48 Wayne, NJ (E) 25,000 10 25,000 118 Middletown, NY (F) 13,754 64 13,920 5 Westwood, NJ (G) 24,803 120 25,136 263 Total fixed rate 121,300 476 128,871 732 Line of credit - Provident Bank (H) 40 67 Total variable rate 40 67 Total $ 121,300 $ 516 $ 128,871 $ 799 (A) On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8 million, with a new mortgage loan held by Valley National Bank in the amount of $22,750,000, which was payable in monthly installments of $129,702 including interest at 4.75% through February 1, 2023 at which time the outstanding balance was due. Effective February 1, 2023, FREIT entered into a loan extension and modification agreement with Valley National Bank on this loan with a then outstanding balance of $16,864,361. Under the terms and conditions of this loan extension and modification, the maturity date of the loan was extended for a term of one (1) year from February 1, 2023 to February 1, 2024 with the option of FREIT to extend for one additional year from the extended maturity date, subject to certai …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"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 nu …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Note 6 Fair value measurements: Financial assets that are measured at fair value on our consolidated balance sheets consist of (i) investments in U.S. Treasury securities (classified as available for sale) and (ii) interest rate swap contracts. In accordance with ASC Topic 320 , Investments Debt Securities , FREIT is accounting for the investments in U.S. Treasury securities classified as available for sale in the amount of approximately $18,174,000 and $29,259,000 as of October 31, 2025 and 2024, respectively, at fair value. Since these available for sale securities are being issued at a discount, the discount is being accreted over the term of the U.S. Treasury securities and recognized as investment income on the consolidated statements of income and reflected as accreted interest in the consolidated statements of cash flows. For the fiscal years ended October 31, 2025, 2024, and 2023 this amounted to approximately $800,000, $801,000, and $353,000, respectively. Any changes in the value of these securities are recorded as an unrealized gain or loss in other comprehensive income (loss). Upon sale, the realized gain or loss related to these investments is recognized in investment income in the consolidated statements of income. For the fiscal years ended October 31, 2025 and 2024, FREIT recorded an unrealized gain of approximately $13,000 and loss of approximately $12,000, respectively, in the consolidated statement of comprehensive income representing the change in the fai …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 9 - Income taxes: FREIT has elected to be treated as a REIT for federal income tax purposes and as such intends to distribute at least 90% of its ordinary taxable income (to maintain its status as a REIT) to its stockholders as dividends for the fiscal year ended October 31, 2025. For the fiscal year ended October 31, 2024, FREIT has distributed 100% of its ordinary taxable income and 100% of its capital gain to its stockholders as dividends. For the fiscal year ended October 31, 2023, there was no taxable income and FREIT distributed 100% of its capital gain to its stockholders as dividends. Accordingly, no provision for federal or state income taxes was recorded in FREITs consolidated financial statements for the fiscal years ended October 31, 2025, 2024 and 2023. As of October 31, 2025, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2022 remain open to examination by the major taxing jurisdictions. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"Recently issued accounting standards: In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) to improve reportable segment disclosure requirements, primarily through enhanced disclosure about significant segment expenses. The Company adopted this standard in Fiscal 2025 with no significant impact on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to disclose additional information with respect to the effective tax rate reconciliation and to disclose the disaggregation by jurisdiction of income tax expense and income taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. We are currently evaluating the impact of ASU 2023-09 on our consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03), and in January 2025, the FASB issued ASU 2025-01, Income Statement Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (""ASU 2025-01""). ASU 2024-03 requires additional disclosure of the nature of expenses includ …

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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, 2027 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. 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 (Termination Fee) in the event of a termination by FREIT without cause and a termination fee of 2.5 times the Termination Fee if the Management Agreement terminates following a merger or acquisition of FREIT. The Management Agreement requires the payment of management fees equal to 4 …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 13 - Segment information: ASC 280-10, "" Disclosures about Segments of an Enterprise and Related Information "", establishes standards for reporting financial information about operating segments in interim and annual financial reports and provides for a ""management approach"" in identifying the reportable segments. FREIT has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants and are managed separately because each requires different operating strategies and management expertise. The commercial segment is comprised of five (5) properties and the residential segment is comprised of six (6) properties during the fiscal years ended October 31, 2025, 2024 and 2023. 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 FREITs 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 it …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"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 Jerseys 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 N …

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Note 15 Stockholder Rights Plan: On July 28, 2023, FREITs Board adopted a stockholder rights plan, as set forth in the Stockholder Rights Agreement, dated July 31, 2023, between the Company and Computershare Trust Company, N.A., as Rights Agent (the Rights Agreement). Pursuant to the terms of the Rights Agreement, the Board declared a dividend distribution of one Preferred Stock Purchase Right (a Right) for each outstanding share of common stock, par value $0.01 per share, of the Company (the Common Stock) to stockholders of record as of the close of business on August 11, 2023 (the Record Date). In addition, one Right will automatically attach to each share of Common Stock issued between the Record Date and the Distribution Date (as hereinafter defined). Each Right entitles the registered holder thereof to purchase from the Company a unit consisting of one ten-thousandth of a share (a Unit) of Series A Junior Participating Cumulative Preferred Stock, par value $0.01 per share, of the Company (the Preferred Stock) at a cash exercise price of $95.00 per Unit (the Exercise Price), subject to adjustment, under certain conditions specified in the Rights Agreement. Initially, the Rights are not exercisable and are attached to and trade with all shares of Common Stock outstanding as of, and issued subsequent to, the Record Date. The Rights will separate from the Common Stock and will become exercisable upon the earlier of (i) the close of business on the tenth calendar day followin …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Note 7 Mortgages payable and line of credit: The following table is a summary of mortgages payable as of April 30, 2026 and October 31, 2025: Interest Rate at Mortgages Payable as of Mortgages Secured By: Maturity April 30, 2026 April 30, 2026 October 31, 2025 (In Thousands of Dollars) Steuben Arms - River Edge, NJ 5/31/2027 6.75% $ 8,662 $ 8,715 Berdan Court - Wayne, NJ 9/1/2029 3.54% 27,909 28,190 Westwood Hills - Westwood, NJ 9/1/2026 6.05% 24,629 24,803 Regency Club - Middletown, NY (A) 12/15/2027 6.05% 13,666 13,754 Station Place - Red Bank, NJ 12/15/2027 4.35% 10,900 11,030 Westwood Plaza - Westwood, NJ (B) 8/1/2026 8.50% 9,576 9,808 Preakness S/C - Wayne, NJ (C) 8/1/2026 5.00% 25,000 25,000 Total fixed rate mortgages payable 120,342 121,300 Total unamortized debt issuance costs (402 ) (516 ) Total mortgages payable, net $ 119,940 $ 120,784 (A) On December 15, 2024, the mortgage secured by an apartment building located in Middletown, New York and the corresponding interest rate swap contract on its underlying loan came due with no settlement of the swap contract due at maturity. Effective December 15, 2024, FREIT Regency, LLC entered into a loan extension and modification agreement with the lender of this loan, Provident Bank, with a then outstanding loan balance of approximately $13.9 million. Under the terms and conditions of this loan extension and modification, the maturity date of this loan is extended for three years to December 15, 2027, the interest rate on the …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 10 Equity Incentive Plan: On February 20, 2025, in accordance with FREITs Equity Incentive Plan (the Plan), the Compensation Committee of FREITs Board recommended to the Board and the Board approved that for services rendered and to be rendered in Fiscal 2025, in lieu of cash compensation in the amount of $20,000, each director was awarded shares of Common Stock, $0.01 par value, (the Shares) in FREIT. Based on the closing price of FREITs Shares on February 21, 2025 of $16.76 per Share, the Board approved an award of 1,193 Shares of FREIT to each director serving on FREITs Board. As such, 1,193 Shares were issued to each director on February 20, 2025 and upon issuance were deemed fully paid and non-assessable. On March 12, 2026, in accordance with the Plan, the Compensation Committee of FREITs Board recommended to the Board and the Board approved that for services rendered and to be rendered in Fiscal 2026, in lieu of cash compensation in the amount of $20,000, each director was awarded shares of Common Stock, $0.01 par value, (the Shares) in FREIT. Based on the closing price of FREITs Shares on March 12, 2026 of $12.62 per Share, the Board approved an award of 1,584 Shares of FREIT to each director serving on FREITs Board. As such, 1,584 Shares were issued to each director on March 12, 2026 and upon issuance were deemed fully paid and non-assessable. As of April 30, 2026, 408,621 shares are available for issuance under the Plan. …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

"Note 4 Fair Value Measurements: Financial assets that are measured at fair value on our condensed consolidated balance sheets consist of (i) investments in U.S. Treasury securities (classified as available for sale) and (ii) an interest rate swap contract. In accordance with ASC Topic 320, Investments Debt Securities , FREIT is accounting for the investments in U.S. Treasury securities classified as available for sale in the amount of approximately $21,317,000 and $18,174,000, as of April 30, 2026 and October 31, 2025, respectively, at fair value. Since these available for sale securities are being issued at a discount, the discount is being accreted over the term of the U.S. Treasury securities and recognized as investment income on the condensed consolidated statements of income and reflected as accreted interest in the condensed consolidated statements of cash flows. For the six months ended April 30, 2026 and 2025, this amounted to approximately $266,000 and $487,000, respectively. Any changes in the value of these securities are recorded as an unrealized gain or loss in other comprehensive income. Upon sale, the realized gain or loss related to these investments is recognized in investment income in the condensed consolidated statements of income. For the six and three months ended April 30, 2026, FREIT recorded an unrealized loss of approximately $8,000 and $8,000, respectively, in the condensed consolidated statements of comprehensive income representing the change in …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 9 Income taxes: FREIT has elected to be treated as a REIT for federal income tax purposes and as such intends to distribute at least 90% of its ordinary taxable income (to maintain its status as a REIT) to its stockholders as dividends for the fiscal year ending October 31, 2026. For the fiscal year ended October 31, 2025, FREIT has distributed 100% of its ordinary taxable income to its stockholders as dividends. Accordingly, no provision for federal or state income taxes was recorded in FREITs condensed consolidated financial statements for the six and three months ended April 30, 2026 and 2025. As of April 30, 2026, FREIT had no material uncertain income tax positions. The tax years subsequent to and including the fiscal year ended October 31, 2022 remain open to examination by the major taxing jurisdictions. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Note 6 - Management agreement, fees and transactions with related party: Hekemian & Co. currently manages all of the properties owned by FREIT and its affiliates. The management agreement between FREIT and Hekemian & Co. dated as of November 1, 2001 (Management Agreement) will expire on October 31, 2027 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. See Note 13 for additional details on the Third Amendment to the Management Agreement entered into on May 13, 2026). The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Such fees charged to operations were approximately $662,000 and $678,000 for the six months ended April 30, 2026 and 2025, respectively, and $317,000 and $310,000 for three months ended April 30, 2026 and 2025, 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 $236,000 and $202,000 for the six months ended April 30, 2026 and 2025, respectively, and $106,000 and $109,000 for the three months ended April 30, 2026 and 2025, respectively. FREIT also uses the resources of the Hekemian & Co. insurance department to secure various insurance coverages for …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

"Note 8 - Segment information: ASC 280-10, "" Disclosures about Segments of an Enterprise and Related Information "", establishes standards for reporting financial information about operating segments in interim and annual financial reports and provides for a ""management approach"" in identifying the reportable segments. FREIT has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires different operating strategies and management expertise. The commercial segment is comprised of five (5) properties and the residential segment is comprised of six (6) properties. The accounting policies of the segments are the same as those described in Note 1 in FREITs Annual Report on Form 10-K for the fiscal year ended October 31, 2025. 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 FREITs 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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 13 Subsequent Events: Approval of Plan of Voluntary Liquidation On May 12, 2026, FREITs Board unanimously determined advisable and approved a Plan of Voluntary Liquidation (the Plan of Voluntary Liquidation). The Plan of Voluntary Liquidation provides for the Companys complete liquidation and dissolution in accordance with Section 331, Section 336 and Section 346(a) of the Internal Revenue Code of 1986, as amended, and the Maryland General Corporation Law. Effectiveness of the Plan of Voluntary Liquidation is subject to approval by the affirmative vote of the holders of Common Stock entitled to cast a majority of all the votes entitled to be cast on the matter. FREIT currently anticipates that the Plan of Voluntary Liquidation will be submitted for stockholder approval at a special meeting of the stockholders, expected to occur in the Fall of 2026. Upon the effectiveness of the Plan of Voluntary Liquidation and pursuant thereto, the Company is authorized to sell, convey, transfer and deliver or otherwise dispose of, or cause its subsidiaries to sell, convey, transfer and deliver or otherwise dispose of, all of their remaining assets, without further approval of the stockholders. The Plan of Voluntary Liquidation further provides that upon a determination of the Board, the Company may transfer and assign any remaining assets of the Company and its subsidiaries to a liquidating trust (a Liquidating Trust), subject to the terms of the Plan of Voluntary Liquidation, and the …

SubsequentEventsTextBlock · excerpt; the full note is in the filing