First Real Estate Investment Trust of New Jersey Reports Revenue Growth and Announces Voluntary Liquidation Plan

First Real Estate Investment Trust of New Jersey, Inc. (FREIT) reported its financial results for the six and three months ended April 30, 2026, showing a total revenue of $15.1 million, a 4.2% increase from $14.5 million in the same period last year. The revenue growth was primarily driven by a rise in rental income, which increased to $13.8 million from $13.3 million, alongside higher reimbursements and sundry income. However, net income attributable to common equity saw a slight increase to $1.6 million, or $0.21 per share, compared to $1.5 million, or $0.20 per share, in the prior year’s six-month period. For the three months ended April 30, 2026, net income attributable to common equity was $616,000, down from $894,000 in the previous year.

The company experienced a modest decline in average occupancy rates across its residential properties, dropping from 96.9% to 95.6% year-over-year. Despite this, residential revenue increased by $303,000 due to higher base rents. The commercial segment also contributed to revenue growth, with a $262,000 increase attributed to higher reimbursable revenue and additional rent from tenants. Operating expenses rose to $10.7 million from $10.3 million, largely due to increased costs associated with snow removal and utilities, which were impacted by a harsher winter.

FREIT has made strategic moves, including entering into a Purchase and Sale Agreement to sell the Franklin Crossing shopping center for $27 million and the Westwood Plaza shopping center for $28.8 million. These transactions are expected to close in the third quarter of 2026. Additionally, the company’s Board of Directors approved a Plan of Voluntary Liquidation on May 12, 2026, which will be submitted for stockholder approval in the fall. This plan allows FREIT to liquidate its assets and distribute proceeds to shareholders, marking a significant shift in the company's operational strategy.

As of April 30, 2026, FREIT's total assets were approximately $148.6 million, a slight decrease from $149.9 million at the end of the previous fiscal year. The company reported total liabilities of $123.6 million, down from $124.2 million, with mortgages payable slightly reduced to $120.3 million. Cash and cash equivalents decreased to $14.2 million from $17.9 million, reflecting cash used in investing and financing activities. The company anticipates that cash provided by operating activities will be sufficient to cover its mandatory debt service payments and other obligations for at least the next year.

Looking ahead, FREIT's management remains cautious about the economic environment, particularly regarding interest rates and inflation, which could impact both residential and commercial segments. The company plans to continue evaluating its dividend policy, having declared a dividend of approximately $748,000 for the second quarter of Fiscal 2026, payable in June. The outlook remains uncertain as the company navigates the implications of its voluntary liquidation plan and ongoing market conditions.