First Real Estate Investment Trust of New Jersey Reports 3.2% Revenue Growth and Increased Net Income

First Real Estate Investment Trust of New Jersey, Inc. (FREIT) reported its financial results for the three months ended January 31, 2026, revealing a total revenue of $7.5 million, a 3.2% increase from $7.3 million in the same period last year. The growth in revenue was primarily driven by the residential segment, which saw an increase in rental income due to higher base rents, despite a slight decline in average occupancy from 96.8% to 95.5%. Net income attributable to common equity rose to $943,000, or $0.13 per share, compared to $614,000, or $0.08 per share, in the prior year.

In terms of expenses, total costs decreased to $5.1 million from $5.3 million year-over-year, reflecting a reduction in operating expenses and general administrative costs. Notably, general and administrative expenses fell by 15.6% to $713,000, largely due to a decrease in legal and professional fees. The company also reported a slight decline in investment income, which amounted to $284,000, down from $400,000 in the previous year, attributed to a decrease in the average balance of cash and cash equivalents.

FREIT's balance sheet as of January 31, 2026, showed total assets of $149 million, a slight decrease from $149.9 million at the end of October 2025. The company’s total liabilities also decreased to $123.6 million from $124.2 million, with mortgages payable remaining relatively stable at $120.4 million. The equity attributable to common stock increased to $34.2 million, up from $34 million, reflecting retained earnings growth.

Operationally, FREIT continues to manage a portfolio of residential and commercial properties primarily located in northern New Jersey and New York. The company is actively working to attract quality tenants to its commercial properties, particularly at the Westwood Plaza and Preakness shopping centers, which have experienced elevated vacancy rates. The management is exploring redevelopment options to revitalize these spaces. The company’s revolving line of credit was renewed for a three-year term, providing $13 million for working capital needs.

Looking ahead, FREIT anticipates that cash provided by operating activities and cash reserves will be sufficient to cover mandatory debt service payments and other operational needs for at least the next year. The company remains cautious about the potential impact of elevated interest rates on its commercial tenants and overall market conditions. The Board of Directors declared a dividend of approximately $747,000 for the first quarter of Fiscal 2026, reflecting the company's commitment to maintaining its REIT status while navigating the current economic landscape.