First Real Estate Investment Trust of New Jersey Reports Significant Financial Improvements for Nine Months Ended July 31, 2024

First Real Estate Investment Trust of New Jersey (FREIT) reported significant financial improvements for the nine months ended July 31, 2024, compared to the same period in 2023. The company achieved a net income of $16,068,000, a substantial recovery from a net loss of $1,086,000 in the prior year. Net income attributable to common equity also rose dramatically to $14,812,000, up from $104,000, resulting in basic earnings per share of $1.99, compared to $0.01 in the previous year.

Total revenue for the nine months increased slightly to $21,421,000 from $21,191,000, driven primarily by a $920,000 increase in residential revenue, despite a decline in average occupancy. However, the commercial segment saw a decrease of approximately $690,000, largely due to the vacancy left by Kmart at Westwood Plaza. Total expenses rose to $16,369,000 from $15,867,000, with general and administrative expenses increasing by $391,000, attributed to higher corporate and legal costs.

FREIT's net cash provided by operating activities surged to $19,982,000 from $1,878,000, reflecting improved operational efficiency. The company also reported a net cash inflow from investing activities of $6,576,000, a significant turnaround from a cash outflow of $22,120,000 in the previous year.

The company benefited from a litigation settlement that contributed approximately $2.6 million to net income, following a gross settlement income of $4.5 million. Additionally, FREIT's share of the net gain from the sale of Maryland properties amounted to approximately $44.9 million, which included proceeds from escrow and write-offs.

As of July 31, 2024, FREIT's total assets increased to $165,037,000 from $159,115,000, and total common equity rose to $37,626,000 from $24,516,000. Cash and cash equivalents also saw a significant increase, reaching $29,429,000 compared to $13,217,000 at the end of the previous fiscal period.

In terms of strategic developments, FREIT extended several loan agreements, including a mortgage for an apartment building in River Edge, NJ, and a loan for the Westwood Plaza shopping center, reflecting proactive financial management amid changing market conditions. The company also declared a dividend of approximately $373,000 for the third quarter of Fiscal 2024, payable on September 13, 2024.

Overall, FREIT's performance in the current fiscal period demonstrates a strong recovery and strategic positioning in the real estate market, despite challenges in the commercial sector.