FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY Files 2023 Annual Report

TL;DR

<b>FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY filed its 2023 10-K report detailing its fiscal year-end operations.</b>

AI Summary

FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY (FREVS) filed a Annual Report (10-K) with the SEC on January 29, 2024. Filed 10-K for the fiscal year ended October 31, 2023. Registrant is FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. Incorporated in Maryland, with principal executive offices in Hackensack, New Jersey. Common stock par value $0.01 per share, trading symbol FREVS on OTC Pink Market. Filed all required reports for the preceding 12 months and has been subject to filing requirements for the past 90 days.

Why It Matters

For investors and stakeholders tracking FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial performance and operational status for the fiscal year ending October 31, 2023. The filing confirms compliance with SEC reporting requirements, indicating ongoing operational and financial transparency.

Risk Assessment

Risk Level: low — FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY shows low risk based on this filing. The filing is a standard 10-K report, indicating routine disclosure rather than significant new events or risks.

Analyst Insight

Review the full 10-K filing for detailed financial statements, risk factors, and management discussion to understand the company's performance and outlook.

Key Numbers

• 2023-10-31 — Fiscal Year End (Report period)
• 2024-01-29 — Filing Date (Date of submission)
• 001-41771 — SEC File Number (Commission file number)
• 22-1697095 — IRS Number (Employer Identification No.)

Key Players & Entities

• FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. (company) — Registrant name
• October 31, 2023 (date) — Fiscal year end
• 2024-01-29 (date) — Filing date
• FREVS (company) — Trading symbol for common stock
• OTC Pink Market (company) — Exchange where common stock is traded
• Maryland (jurisdiction) — State of incorporation
• Hackensack, New Jersey (location) — Principal executive offices

Forward-Looking Statements

• FREVS will continue to be classified as a non-well-known seasoned issuer in its next annual filing. (FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC.) — high confidence, target: October 31, 2024

FAQ

Industry Context

The company operates as a Real Estate Investment Trust (REIT), a sector focused on owning, operating, or financing income-producing real estate.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, specifically Section 13 or 15(d), indicating standard reporting requirements for public companies.

What Investors Should Do

1. Analyze the full 10-K for detailed financial statements and operational segments.
2. Review management's discussion and analysis (MD&A) for insights into performance drivers and future outlook.
3. Examine the risk factors section for potential challenges and uncertainties.

Key Dates

• 2023-10-31: Fiscal Year End — End of reporting period for the 10-K.
• 2024-01-29: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year ended October 31, 2023, following the company's registration and trading on the OTC Pink Market.

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share FREVS OTC Pink Market Prefer
• $16,864,361 — en outstanding balance of approximately $16,864,361. Under the terms and conditions of this
• $157,347 — principal and interest of approximately $157,347. Additionally, FREIT funded an interest
• $1,888,166 — ne (1) year, amounting to approximately $1,888,166. This Escrow is held at Valley National
• $25,000,000 — an agreement, to extend the term of its $25,000,000 loan on its residential property locate
• $25,500,000 — Life Insurance Company in the amount of $25,500,000. This loan is based on a fixed interest
• $153,706 — y payments of principal and interest of $153,706 and has a term of three years with a ma
• $535,000 — l debt service savings of approximately $535,000. (See Note 5 to FREIT's consolidated fi
• $7.5 million — an agreement, to extend the term of its $7.5 million loan on its property located in Rockawa
• $558,000 — l debt service savings of approximately $558,000. (See Note 5 to FREIT's consolidated fi
• $13 million — New Jersey. The total line of credit is $13 million and the interest rate on the amount out
• $9 million — w Jersey in the amount of approximately $9 million came due. FREIT is in the process of re
• $95.00 — red Stock") at a cash exercise price of $95.00 per Unit (the "Exercise Price"), subjec
• $138.2 m — aggregate outstanding mortgage debt was $138.2 million, which bears a weighted average i

Filing Documents

• frevsob-20231031.htm (10-K) — 2099KB
• ex21.htm (EX-21) — 7KB
• ex23-1.htm (EX-23.1) — 3KB
• ex31-1.htm (EX-31.1) — 7KB
• ex31-2.htm (EX-31.2) — 8KB
• ex32-1.htm (EX-32.1) — 5KB
• ex32-2.htm (EX-32.2) — 5KB
• 0001174947-24-000132.txt (&nbsp;) — 9832KB
• frevsob-20231031.xsd (EX-101.SCH) — 108KB
• frevsob-20231031_cal.xml (EX-101.CAL) — 54KB
• frevsob-20231031_def.xml (EX-101.DEF) — 422KB
• frevsob-20231031_lab.xml (EX-101.LAB) — 839KB
• frevsob-20231031_pre.xml (EX-101.PRE) — 435KB
• frevsob-20231031_htm.xml (XML) — 1314KB

Business

Business 4 Item 1A

Risk Factors

Risk Factors 12 Item 1B Unresolved Staff Comments 14 Item 2

Properties

Properties 15 Item 3

Legal Proceedings

Legal Proceedings 19 Item 4 Mine Safety Disclosures 21 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 43 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 43 Item 9A

Controls and Procedures

Controls and Procedures 44 Item 9B Other Information 45 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 45 PART III Item 10 Directors, Executive Officers and Corporate Governance 46 Item 11

Executive Compensation

Executive Compensation 49 Item 12

Security Ownership of Certain Beneficial Owners and Management

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 62 Item 13 Certain Relationships and Related Party Transactions; Director Independence 63 Item 14 Principal Accountant Fees and Services 67 PART IV Item 15 Exhibits, Financial Statement Schedules 68 3

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain information included in this Annual Report contains or may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The registrant cautions readers that forward-looking statements, including, without limitation, those relating to the registrant's investment policies and objectives; the financial performance of the registrant; the ability of the registrant to borrow and service its debt; the economic and competitive conditions which affect the registrant's business; the ability of the registrant to obtain the necessary governmental approvals for the development, expansion or renovation of its properties, the impact of environmental conditions affecting the registrant's properties, and the registrant's liquidity and capital resources, are subject to certain risks and uncertainties. Actual results or outcomes may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors, including, without limitation, the registrant's future financial performance; the availability of capital; general market conditions; national and local economic conditions, particularly long-term interest rates; federal, state and local governmental regulations that affect the registrant; and the competitive environment in which the registrant operates, including, the availability of retail space and residential apartment units in the areas where the registrant's properties are located. In addition, the registrant's continued qualification as a real estate investment trust involves the application of highly technical and complex rules of the Internal Revenue Code of 1986, as amended (the "Internal Revenue Code"). The forward-looking statements are made as of the date of this Annual Report and the registrant assumes no obligation to

BUSINESS

BUSINESS (a) General Business First Real Estate Investment Trust of New Jersey was organized on November 1, 1961 as a New Jersey Business Trust. On July 1, 2021, First Real Estate Investment Trust of New Jersey completed the change of its form of organization from a New Jersey real estate investment trust ("REIT") to a Maryland corporation (the "Reincorporation") which was approved by its stockholders at the annual meeting of stockholders held on May 6, 2021. The Reincorporation changed the law applicable to First Real Estate Investment Trust of New Jersey's affairs from New Jersey law to Maryland law and was accomplished by the merger of First Real Estate Investment Trust of New Jersey with and into its wholly owned subsidiary, First Real Estate Investment Trust of New Jersey, Inc. ("FREIT", "Trust", "us", "we", "our" or the "Company"), a Maryland corporation. As a result of the Reincorporation, the separate existence of First Real Estate Investment Trust of New Jersey has ceased and FREIT has succeeded to all the business, properties, assets and liabilities of First Real Estate Investment Trust of New Jersey. Holders of shares of beneficial interest in First Real Estate Investment Trust of New Jersey have received one newly issued share of common stock of FREIT for each share of First Real Estate Investment Trust of New Jersey that they own, without any action of stockholders required and all treasury stock held by First Real Estate Investment Trust of New Jersey was retired. FREIT is organized and will continue to operate in such a manner as to qualify for taxation as a REIT under the Internal Revenue Code of 1986, as amended, and its stock is traded on the over-the counter market under the trading symbol FREVS. FREIT acquires, develops, constructs and holds real estate properties for long-term investment and not for resale. FREIT's long-range investment policy is to review and evaluate potential real estate investment opportunities for acquisition that it

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View this 10-K filing on SEC EDGAR