First Real Estate Investment Trust of New Jersey Reports $1.5 Million Net Income for Six Months Ending April 30, 2025

First Real Estate Investment Trust of New Jersey, Inc. (FREIT) reported its financial results for the six months ending April 30, 2025, revealing a net income attributable to common equity of $1.5 million, or $0.20 per share, compared to a modest $21,000, or $0.00 per share, in the same period last year. Total revenue for the current six-month period increased by 1.8% to $14.5 million, driven primarily by a $535,000 rise in rental income from the residential segment, which benefited from higher base rents and improved occupancy rates. However, the commercial segment experienced a decline in revenue, primarily due to reduced income from the Westwood Plaza and Preakness shopping centers.

In terms of operational metrics, the average occupancy rate for residential properties rose to 96.9% from 95.9% year-over-year, while the commercial properties saw a decrease in average occupancy from 50.4% to 48.2%. The overall revenue for the three months ending April 30, 2025, slightly decreased by 0.2% to $7.3 million compared to the previous year, reflecting challenges in the commercial sector. The company’s total assets decreased to $156.2 million from $162.3 million as of October 31, 2024, largely due to a reduction in cash and cash equivalents.

FREIT has made strategic moves to enhance its financial position, including refinancing existing loans at higher interest rates. The company’s total mortgage debt stood at $127.9 million, with a weighted average interest rate of 5.49%. Notably, FREIT's revolving line of credit was renewed for a three-year term, providing $13 million for working capital needs. The company declared a dividend of approximately $598,000, or $0.08 per share, to be paid on June 13, 2025, reflecting its commitment to returning value to shareholders.

Looking ahead, FREIT anticipates that cash generated from operations will be sufficient to cover its debt service obligations, real estate taxes, and capital improvements for at least the next year. However, the company acknowledges potential risks from elevated interest rates and market conditions that could impact its commercial properties. Management is actively exploring strategies to attract quality tenants and improve occupancy rates in its commercial segment, which remains a focus for future growth.