First Real Estate Investment Trust of New Jersey Reports Results for its Fiscal Year Ended October 31, 2011

December 17, 2011



First Real Estate Investment Trust of New Jersey (OCTQB: FREVS.OB) reported revenues for its fiscal year ended October 31, 2011 came in essentially flat at $44.057 million compared to $44.053 million during fiscal 2010.  The trust saw revenues from its commercial properties decline 2.4%, however this was offset by a 3.1% increase in revenue from its residential properties.  Revenue for the fourth quarter ended October 31, 2011 was up 2.71% to $11.3 million compared to $11 million in the fourth quarter of fiscal 2010.  For the fourth quarter, the trust saw revenue increases from both commercial and residential properties.

Net income for fiscal 2011 was up 21.9% to $5.4 million or $0.77 per share versus $4.4 million or $0.64 per share in fiscal 2010.  For the fourth quarter, net income increased 109.3% to $1.02 million or $0.22 per share compared to $733 thousand or $0.11 per share during the fourth quarter of fiscal 2010.  Both the fiscal year and the fourth quarter of 2011 benefited from the absence of a $2.1 million prepayment penalty for the early extinguishment of debt recorded in 2010.  According to the company, the impact of the prepayment penalty on net income attributable to common equity for fiscal 2010 was $840 thousand or $0.12 per share.

Funds from operations (FFO) for fiscal 2011 increased 25.6% to $11.15 million or $1.61 FFO per share compared to $8.87 million or $1.28 FFO per share in fiscal 2010.  For the fourth quarter, FFO increased 184% to $3.14 million or $0.45 FFO per share versus $1.1 million or $0.16 FFO per share in fiscal 2010.

As of October 31, 2011, the trust lost a major tenant and has not been able to find a replacement tenant as of the date of this release.  If the trust is unable to find a tenant for the entire fiscal year of 2012, the impact on earnings per share will be approximately $0.10 per share.  The trust noted that construction related to the expansion and renovation of the Damascus Center was completed in November 2011 and is currently in the negotiation process with potential tenants.  The trust also continues to pursue the sale of three apartment complexes located in New Jersey in order to reallocate the proceeds to other areas of the operation.

First Real Estate Investment Trust of New Jersey acquires, develops, constructs and holds real estate properties for long-term investment.

Source: First Real Estate Investment Trust of New Jersey


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