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First Real Estate Investment Trust of New Jersey Reports Decrease in Real Estate Revenue for the Six Months Ended April 30, 2023
First Real Estate Investment Trust of New Jersey (FREIT) has released its quarterly report for the six months ended April 30, 2023. The report highlights a decrease in real estate revenue for this period compared to the same period in the previous year. Let’s take a closer look at the facts and figures presented in the report.
Real Estate Revenue for the Six Months Ended April 30, 2023
According to the report, real estate revenue for the current six months decreased by 19.5% to $13,895,000, compared to $17,264,000 for the same period in the previous year. The decrease in revenue can primarily be attributed to the sale of the Maryland Properties in the previous year, which resulted in a decrease of approximately $3.7 million. However, there was an increase in revenue from the residential segment of approximately $0.2 million, driven by an increase in base rents across most properties. Additionally, there was an increase in revenue from the commercial segment of approximately $0.1 million.
Real Estate Revenue for the Current Quarter
In terms of the current quarter, real estate revenue increased by 4.6% to $6,916,000 compared to $6,615,000 for the same quarter in the previous year. This increase can be attributed to an increase in revenue from the residential segment of approximately $0.2 million, driven by an increase in base rents across all properties. There was also an increase in revenue from the commercial segment of approximately $0.1 million.
Net Income for the Six Months Ended April 30, 2023
Despite the decrease in real estate revenue, FREIT reported net income of $516,000 for the current six months, equivalent to $0.07 per share on a basic and diluted basis. For the current quarter, net income was $97,000, equivalent to $0.01 per share on a basic and diluted basis.
It’s important to note that the report also provides information on options exercised and outstanding, stock option compensation expense, and deferred fee plan payments, among other details. However, the focus of this article is on the changes in real estate revenue and net income.
Future Outlook
Looking ahead, FREIT acknowledges that uncertainties in the economic and financial environment could impact its residential and commercial properties. Factors such as inflation, rising interest rates, and the recovery of brick and mortar retail will influence the performance of these properties in the coming year.
Conclusion
In conclusion, First Real Estate Investment Trust of New Jersey has reported a decrease in real estate revenue for the six months ended April 30, 2023. The decrease can be attributed to the sale of certain properties, while there was an increase in revenue from the residential and commercial segments. Despite the decrease in revenue, FREIT reported net income for the period. The company acknowledges potential challenges in the economic and financial environment that could impact its properties moving forward.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!