FREIT Announces Fourth Quarter Fiscal 2023 Results

HACKENSACK, N.J., Jan. 29, 2024

FINANCIAL HIGHLIGHTS & OPERATING STATISTICS
	For the Fiscal Quarter Ended			For the Twelve Months Ended
	October 31,			October 31, ARIVA.DE Börsen-Geflüster Kurse First Rl-Est Invt Tr Nj Sbi 17,02 $ +0,12%
	2023	2022		2023	2022
GAAP Earnings (Loss) Per Share - Basic	$0.09	($0.08)		$0.10	$6.52
GAAP Earnings (Loss) Per Share - Diluted	$0.09	($0.08)		$0.10	$6.45
AFFO Per Share - Basic and Diluted	$0.17	($0.04)		$0.57	$0.40
Dividends Per Share	$0.05	$9.00		$0.45	$9.20
Total Average Residential Occupancy *	95.9 %	97.6 %		96.8 %	98.2 %
Total Average Commercial Occupancy *	61.3 %	65.9 %		64.4 %	66.8 %
* Average occupancy rate excludes the Rotunda Property, the Damascus Property and the Westridge Square Property (collectively the "Maryland Properties") from all periods presented as the properties were sold in the twelve months ended October 31, 2022.

"We delivered a solid quarter of operational and financial performance despite continuing legal expenses and other costs associated with adverse actions from an external entity," said Robert Hekemian, Jr., Chief Executive Officer of FREIT. Mr. Hekemian also stated that "While operating in a highly inflationary market, our residential properties have continued to maintain a positive cash flow with same property net operating income increasing modestly from $10,665,000 to $10,975,000 for the twelve months ended October 31, 2023 and 2022, respectively. As our mortgages come due, we continue to refinance with short term loans and have paid down certain loans, reducing leverage when prudent.  The Board is committed to protecting and delivering value for all FREIT stockholders".

Results for the Quarter

Real estate revenue increased 1.5% to approximately $7,153,000 for the fiscal quarter ended October 31, 2023 as compared to approximately $7,048,000 for the prior year's comparable period. The change in revenue was primarily attributable to an increase from the residential segment of approximately $170,000 driven by an increase in base rents across all properties while the average occupancy rate decreased to 95.9% from 97.6% in the prior year's comparable period offset by a decline in the commercial segment of approximately $70,000 primarily driven by the decline in the average occupancy rate to 61.3% from 65.9% in the prior year's comparable period.

Net income (loss) attributable to common equity ("Net Income (Loss)") was Net Income of approximately $656,000 or $0.09 per share basic and diluted for the fiscal quarter ended October 31, 2023 as compared to Net Loss of approximately ($554,000) or ($0.08) per share basic and diluted for the prior year's comparable period. The change in Net Income was primarily driven by a stock compensation expense adjustment of approximately $1,174,000 incurred in the prior year's comparable period related to the stock option modification and an increase in investment income of approximately $156,000 attributed to higher interest rates in the quarter ended October 31, 2023.  

(Refer to "Table of Revenue & Net Income (Loss) Components")

Results for the Twelve Months

Real estate revenue decreased 9.4% to approximately $28,344,000 for the twelve months ended October 31, 2023 as compared to approximately $31,271,000 for the prior year's comparable period. The decline in revenue was primarily attributable to the following: (a) a decrease of approximately $3,613,000 attributed to the sale of the Maryland Properties in Fiscal 2022; (b) a decrease of approximately $350,000 resulting from the decline in the average annual occupancy rate for the residential segment from 98.2% in Fiscal 2022 to 96.8% in Fiscal 2023; offset by (c) an increase of approximately $1 million primarily driven by an increase in base rents at the residential properties.

Net Income was approximately $760,000 or $0.10 per share basic and diluted for the twelve months ended October 31, 2023 as compared to approximately $45,992,000 or $6.52 per share basic and $6.45 per share diluted for the prior year's comparable period. The change in Net Income was almost entirely driven by the prior year's comparable period income attributable to the Maryland Properties sold, the $1,415,000 gain on the Wayne PSC interest rate swap termination and a $1,174,000 stock compensation expense adjustment related to the stock option modification in the prior year's comparable period. Also affecting the change in net income were increases in interest costs and investment income reflecting the higher interest rate environment, higher administrative costs and the costs incurred to adopt the Stockholders Rights Plan.  

(Refer to "Table of Revenue & Net Income (Loss) Components")

Table of Revenue & Net Income (Loss)  Components
		For the Fiscal Quarter Ended October 31,						For the Twelve Months Ended October 31,
		2023		2022		Change		2023		2022		Change
		(In Thousands Except Per Share Amounts)						(In Thousands Except Per Share Amounts)
Revenue:
Commercial properties		$        2,167		$        2,224		$           (57)		$        8,689		$       10,644		$       (1,955)
Residential properties		4,986		4,824		162		19,655		20,627		(972)
Total real estate revenues		7,153		7,048		105		28,344		31,271		(2,927)
Operating expenses:
Real estate operating expenses		3,446		3,347		99		13,754		15,281		(1,527)
General and administrative expenses		882		1,896		(1,014)		4,243		5,003 Werbung Mehr Nachrichten zur First Rl-Est Invt Tr Nj Sbi Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 18.05.24 - Small- & Micro Cap ... Technologieführerschaft als Wettbewerbsvorteil – Tesla, De.mem, Nvidia 18.05.24 - Boersia.de Johnson & Johnson Aktie: Insiderverkäufe und Firmenkauf 18.05.24 - wallstreetONLINE ... Outperformance: Mit 4 Aktienfonds wie Warren Buffett die Benchmark schlagen