Liquidation plan at FREIT (OTC: FREVS) targets $24.44–$30.03 per share
Rhea-AI Filing Summary
First Real Estate Investment Trust of New Jersey, Inc. reported modest growth in real estate revenue while advancing a full liquidation strategy. For the quarter ended April 30, 2026, total real estate revenue rose 5.2% to about $7.6 million, but GAAP earnings per share declined to $0.08 from $0.12 as operating and other expenses increased.
For the six months, revenue grew 4.2% to about $15.1 million and net income attributable to common equity was approximately $1.6 million, or $0.21 per share, up from $0.20. FFO and AFFO per share fell to $0.19 and $0.16 from $0.24 and $0.23. The Board unanimously approved a Plan of Voluntary Liquidation, with expected stockholder approval sought in Fall 2026 and estimated net distributions of $24.44–$30.03 per share versus a $15.25 closing price on May 13, 2026. FREIT agreed to sell Franklin Crossing for $27.0 million (expected to close in Q3 2026) and Westwood Plaza for $28.8 million (expected to close in early 2027), declared a $0.10 quarterly dividend, extended key property loans to August 1, 2026, and replaced a $13 million facility with an undrawn $20 million line of credit maturing October 31, 2029.
Positive
- Board-approved Plan of Voluntary Liquidation with sizable estimated payouts: the Trust projects total distributions between $24.44 and $30.03 per share, compared with a closing stock price of $15.25 on May 13, 2026, implying a substantial value realization if executed as outlined.
- Material asset sale agreements signed: FREIT entered agreements to sell Franklin Crossing for $27.0 million and Westwood Plaza for $28.8 million, with expected closings in Q3 2026 and early 2027 that should help fund liquidating distributions.
- Stronger balance sheet flexibility via larger credit facility: a prior $13 million line of credit was replaced with an undrawn $20 million facility maturing October 31, 2029, providing additional liquidity support during the liquidation process.
Negative
- None.
Insights
FREIT pairs modest revenue growth with a value‑focused liquidation plan and asset sales.
FREIT is transitioning from an operating REIT to an orderly wind‑down. Real estate revenue increased to about $7.6M for the quarter and $15.1M for six months, but higher operating and administrative costs reduced quarterly net income to $0.6M.
The key development is the Board’s unanimous approval of a Plan of Voluntary Liquidation. The Trust estimates total distributions of $24.44–$30.03 per share, compared with a $15.25 closing price on May 13, 2026. Planned sales of Franklin Crossing ($27.0M) and Westwood Plaza ($28.8M) are important funding sources.
Financing arrangements support stability during the wind‑down. FREIT extended Westwood Plaza and Preakness loans to August 1, 2026 and replaced a $13M credit line with an undrawn $20M facility maturing October 31, 2029. Future filings around the Fall 2026 stockholder vote and subsequent asset sales will shape realized distributions under the Plan.
8-K Event Classification
Key Figures
Key Terms
Plan of Voluntary Liquidation financial
Adjusted Funds From Operations financial
Funds From Operations financial
tenancy-in-common financial
line of credit financial
noncontrolling interests financial
Earnings Snapshot
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FAQ
How did FREIT (FREVS) perform in its fiscal second quarter 2026?
What are FREIT’s six-month 2026 revenue and earnings compared with 2025?
What liquidation plan did FREIT (FREVS) announce and what are the estimated distributions?
Which property sales is FREIT relying on to support its liquidation strategy?
How did FREIT’s FFO and AFFO change in fiscal second quarter 2026?
What recent financing actions has FREIT (FREVS) taken to support operations and liquidation?
What dividend did FREIT declare for the second quarter of fiscal 2026?
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Securities registered pursuant to Section 12(b) of the Act:
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| (1) | Registered pursuant to Section 12 (b) of the Act pursuant to a form 8-A filed by the registrant on August 3, 2023. Until the Distribution Date (as defined in the registrant’s Stockholder Rights Agreement dated July 31, 2023 and amended as of May 12, 2026) the Preferred Stock Purchase Rights will be transferred with and only with the shares of the registrant’s Common Stock to which the Preferred Stock Purchase Rights are attached. |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
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Item 2.02 Results of Operations and Financial Condition
OPERATING RESULTS
The registrant has released its operating results for the fiscal quarter ended April 30, 2026. The Press Release is included as Exhibit 99.1 to this Form 8-K.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Registrant’s press release dated June 12, 2026
The statements in this report, which relate to future earnings or performance, are forward-looking. Actual results may differ materially and be adversely affected by such factors as market and economic conditions, longer than anticipated lease-up periods or the inability of certain tenants to pay rents. Additional information about these factors is contained in the Company’s filings with the SEC including the Company’s most recently filed reports on Form 10-K and Form 10-Q.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. | ||
| (Registrant) | ||
| By: | /s/ Robert S. Hekemian, Jr. | |
| Robert S. Hekemian, Jr. | ||
| President and Chief Executive Officer | ||
Date: June 12, 2026
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EXHIBIT INDEX
| Exhibit | |
| Number | Description |
| 99.1 | Press Release – Operating results for the fiscal quarter and six months ended April 30, 2026. |
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FREIT Announces Second Quarter Fiscal Year 2026 Results
Sales of Franklin Crossing for $27 Million and Westwood Plaza for $28.8 Million Expected to Close during the Third Quarter of 2026 and in Early 2027, respectively
FREIT to Seek Stockholder Approval to Adopt Previously Announced Plan of Voluntary Liquidation in the Fall of 2026; Estimate of Distributions to Stockholders in Range of $24.44 to $30.03 Per Share
HACKENSACK, NJ, June 12, 2026 – First Real Estate Investment Trust of New Jersey, Inc. (“FREIT” or the “Company”) announced its operating results for the fiscal quarter ended April 30, 2026.
| FINANCIAL HIGHLIGHTS & OPERATING STATISTICS | |||||
| For the Fiscal Quarter Ended | For the Six Months Ended | ||||
| April 30, | April 30, | ||||
| 2026 | 2025 | 2026 | 2025 | ||
| GAAP Earnings Per Share - Basic and Diluted | $0.08 | $0.12 | $0.21 | $0.20 | |
| AFFO Per Share - Basic and Diluted | $0.16 | $0.23 | $0.37 | $0.39 | |
| Dividends Per Share | $0.10 | $0.08 | $0.20 | $0.16 | |
| Total Average Residential Occupancy | 95.7% | 97.1% | 95.6% | 96.9% | |
| Total Average Commercial Occupancy | 47.6% | 48.2% | 47.5% | 48.2% | |
Second Quarter Financial Results
Total real estate revenue increased 5.2% to approximately $7.6 million for the fiscal quarter ended April 30, 2026, compared to approximately $7.3 million for the prior-year period. The increase was driven by a $111,000 increase in residential revenue from higher base rents, despite a decline in average occupancy from 97.1% to 95.7%, and a $238,000 increase in commercial revenue.
Net income attributable to common equity (“Net Income”) was approximately $0.6 million, or $0.08 per share (basic and diluted), for the fiscal quarter ended April 30, 2026, compared to approximately $0.9 million, or $0.12 per share, for the prior-year period. The decrease was primarily driven by higher operating and other expenses and lower investment income, partially offset by higher revenue.
(Refer to “Table of Revenue & Net Income Components”)
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Six Months Financial Results
Total real estate revenue increased 4.2% to approximately $15.1 million for the six months ended April 30, 2026, compared to approximately $14.5 million for the prior-year period. The increase was driven by a $303,000 increase in residential revenue from higher base rents, despite a modest decline in average occupancy from 96.9% to 95.6%, and a $262,000 increase in commercial revenue.
Net income was approximately $1.6 million, or $0.21 per share (basic and diluted), for the six months ended April 30, 2026, compared to approximately $1.5 million, or $0.20 per share, in the prior-year period. The increase was driven by higher revenue, partially offset by higher operating expenses and lower investment income.
(Refer to “Table of Revenue & Net Income Components”)
Table of Revenue & Net Income Components
| For the Fiscal Quarter Ended April 30, | For the Six Months Ended April 30, | |||||||||||||||||||||||
| 2026 | 2025 | Change | 2026 | 2025 | Change | |||||||||||||||||||
| (In Thousands Except Per Share Amounts) | (In Thousands Except Per Share Amounts) | |||||||||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Commercial properties | $ | 2,083 | $ | 1,818 | $ | 265 | $ | 4,032 | $ | 3,724 | $ | 308 | ||||||||||||
| Residential properties | 5,551 | 5,440 | 111 | 11,106 | 10,803 | 303 | ||||||||||||||||||
| Total real estate revenues | 7,634 | 7,258 | 376 | 15,138 | 14,527 | 611 | ||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||
| Real estate operating expenses | 3,821 | 3,465 | 356 | 7,511 | 7,201 | 310 | ||||||||||||||||||
| General and administrative expenses | 1,052 | 791 | 261 | 1,765 | 1,636 | 129 | ||||||||||||||||||
| Depreciation | 724 | 734 | (10 | ) | 1,445 | 1,457 | (12 | ) | ||||||||||||||||
| Total operating expenses | 5,597 | 4,990 | 607 | 10,721 | 10,294 | 427 | ||||||||||||||||||
| Financing costs | (1,800 | ) | (1,851 | ) | 51 | (3,661 | ) | (3,724 | ) | 63 | ||||||||||||||
| Investment income | 265 | 350 | (85 | ) | 549 | 750 | (201 | ) | ||||||||||||||||
| (Loss) income on investment in tenancy-in-common | (68 | ) | 14 | (82 | ) | (69 | ) | 23 | (92 | ) | ||||||||||||||
| Net income | 434 | 781 | (347 | ) | 1,236 | 1,282 | (46 | ) | ||||||||||||||||
| Net loss attributable to noncontrolling interests in subsidiaries | 182 | 113 | 69 | 323 | 226 | 97 | ||||||||||||||||||
| Net income attributable to common equity | $ | 616 | $ | 894 | $ | (278 | ) | $ | 1,559 | $ | 1,508 | $ | 51 | |||||||||||
| Earnings per share: | ||||||||||||||||||||||||
| Basic and diluted | $ | 0.08 | $ | 0.12 | $ | (0.04 | ) | $ | 0.21 | $ | 0.20 | $ | 0.01 | |||||||||||
| Weighted average shares outstanding: | ||||||||||||||||||||||||
| Basic and diluted | 7,477 | 7,469 | 7,474 | 7,466 | ||||||||||||||||||||
Segment Property Net Operating Income (“NOI”)
NOI for the residential properties decreased to approximately $3,209,000 and increased to $6,423,000 for the fiscal quarter and six months ended April 30, 2026, respectively, from approximately $3,258,000 and $6,252,000 for the prior year’s comparable periods, respectively. NOI for the commercial properties increased to approximately $605,000 and $1,214,000 for the fiscal quarter and six months ended April 30, 2026, respectively, from approximately $563,000 and $1,130,000 for the prior year’s comparable periods, respectively.
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Purchase and Sale Agreements
On April 8, 2026, FREIT entered into an agreement with an affiliate of Regency Centers Corporation to sell its 100% interest in the Franklin Crossing shopping center for $27.0 million. Closing is expected in the third quarter of 2026.
On May 26, 2026, FREIT entered into a purchase and sale agreement with an affiliate of Regency Centers Corporation to sell its 100% interest in Westwood Plaza shopping center for $28.8 million. The purchaser is in the initial due diligence period and this transaction is expected to close in early 2027.
Adoption of Plan of Voluntary Liquidation
On May 12, 2026, FREIT’s Board unanimously approved a Plan of Voluntary Liquidation (the “Plan”), which provides for the Company’s complete liquidation and dissolution under applicable tax and Maryland law. The Company expects to seek stockholder approval for the Plan at a special meeting anticipated in the Fall of 2026. Upon effectiveness, the Company may dispose of all remaining assets without further stockholder approval and may transfer such assets to a liquidating trust, with stockholders receiving cash and/or beneficial interests, as determined by the Board. The Trust has estimated that the net proceeds that will be distributed to the Trust's stockholders over time in connection with the Plan, taking into account estimated transaction expenses and payment of liabilities, will be in the range of $24.44 per share to $30.03 per share, representing a significant premium to the closing stock price of $15.25 on May 13, 2026, the day prior to announcing the Plan. Jones Lang LaSalle Securities, LLC, an affiliate of Jones Lang LaSalle Americas, Inc., is acting as financial advisor to the Trust in connection with the Plan.
Dividend
The Board of Directors declared a second quarter dividend of $0.10 per share on the common stock to holders of record at the close of business on May 29, 2026. The payment date for the dividend is June 12, 2026. The Board of Directors will continue to evaluate the dividend on a quarterly basis.
Financing Update
The loan on the Westwood Plaza shopping center, located in Westwood, New Jersey with a balance of approximately $9.6 million, was extended by the current lender of this loan, Valley National Bank, for an additional 90 days from an initial maturity date of May 1, 2026 to a new maturity date of August 1, 2026 under the same terms and conditions of the existing loan agreement.
On May 26, 2026, FREIT’s $13 million line of credit has been replaced with a $20 million line of credit provided by Provident Bank secured by a mortgage on FREIT’s Boulders property in Rockaway, New Jersey. Draws against this credit line can be used for working capital needs and standby letters of credit. The line of credit will expire on October 31, 2029 and the interest rate on any amount outstanding will be based on a floating interest rate of prime minus 25 basis points with a floor of 6.75%. To date, the line of credit remains undrawn, providing full availability of $20 million.
We continue to work constructively with ConnectOne Bank on an extension and modification of the $25 million loan secured by the Preakness shopping center in Wayne, New Jersey. Importantly, the lender has agreed to extend the loan’s maturity date to August 1, 2026, on the same terms and conditions as the existing loan, providing additional time to complete the process and supporting continued stability as the parties finalize the terms of the proposed extension and modification.
Funds From Operations
Funds From Operations (“FFO”) is a non-GAAP measure defined by the National Association of Real Estate Investment Trusts (“NAREIT”). FREIT does not include distributions from equity/debt/capital gain sources in its computation of FFO. Although many consider FFO the standard measurement of a REIT’s performance, FREIT supplements the NAREIT computation to include other adjustments to GAAP net income, which are not considered by management to be the primary drivers of its decision-making process. These adjustments are straight-line rents and recurring capital improvements on FREIT’s residential apartments.
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The modified FFO computation is referred to as Adjusted Funds From Operations (“AFFO”). FREIT believes that AFFO is a superior measure of its operating performance. FREIT computes FFO and AFFO as follows:
| For the Fiscal Quarter Ended April 30, | For the Six Months Ended April 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| (In Thousands Except Per Share Amounts) | (In Thousands Except Per Share Amounts) | |||||||||||||||
| Funds From Operations ("FFO") (a) | ||||||||||||||||
| $ | 434 | $ | 781 | $ | 1,236 | $ | 1,282 | |||||||||
| Depreciation of consolidated properties | 724 | 734 | 1,445 | 1,457 | ||||||||||||
| Amortization of deferred leasing costs | 24 | 19 | 44 | 45 | ||||||||||||
| Distributions to non-controlling interests | (180 | )(b) | (120 | )(c) | (540 | )(b) | (480 | )(c) | ||||||||
| Adjustment to loss on investment in tenancy-in-common for depreciation | 393 | 367 | 785 | 732 | ||||||||||||
| FFO | $ | 1,395 | $ | 1,781 | $ | 2,970 | $ | 3,036 | ||||||||
| Per Share - Basic and Diluted | $ | 0.19 | $ | 0.24 | $ | 0.40 | $ | 0.41 | ||||||||
| (a) As prescribed by NAREIT. | ||||||||||||||||
| (b) FFO excludes the additional distribution of proceeds to non-controlling interests in the amount of approximately $15,000 for both the fiscal quarter and six months ended April 30, 2026 related to the sale of the Rotunda property located in Maryland in a prior year. | ||||||||||||||||
| (c) FFO excludes the additional distribution of proceeds to non-controlling interests in the amount of approximately $80,000 and $163,000 for the fiscal quarter and six months ended April 30, 2025, respectively, related to the sale of the Rotunda and Damascus properties located in Maryland in a prior year. | ||||||||||||||||
| Adjusted Funds From Operations ("AFFO") | ||||||||||||||||
| $ | 1,395 | $ | 1,781 | $ | 2,970 | $ | 3,036 | |||||||||
| Deferred rents (Straight lining) | 1 | 28 | 10 | 56 | ||||||||||||
| Capital Improvements - Apartments | (186 | ) | (126 | ) | (248 | ) | (203 | ) | ||||||||
| AFFO | $ | 1,210 | $ | 1,683 | $ | 2,732 | $ | 2,889 | ||||||||
| Per Share - Basic and Diluted | $ | 0.16 | $ | 0.23 | $ | 0.37 | $ | 0.39 | ||||||||
| Weighted Average Shares Outstanding: | ||||||||||||||||
| Basic and Diluted | 7,477 | 7,469 | 7,474 | 7,466 | ||||||||||||
FFO and AFFO do not represent cash generated from operating activities in accordance with accounting principles generally accepted in the United States of America and therefore should not be considered a substitute for net income as a measure of results of operations or for cash flow from operations as a measure of liquidity. Additionally, the application and calculation of FFO and AFFO by other REITs may vary materially from that of FREIT, and therefore FREIT’s FFO and AFFO may not be directly comparable to those of other REITs.
____________________________________________________________________________________________________________
The statements in this report, which relate to future earnings or performance, are forward-looking. Actual results may differ materially and be adversely affected by such factors as market and economic conditions, longer than anticipated lease-up periods or the inability of certain tenants to pay rents. Additional information about these factors is contained in the Company’s filings with the SEC including the Company’s most recently filed reports on Form 10-K and Form 10-Q.
First Real Estate Investment Trust of New Jersey, Inc. is a publicly traded (over-the-counter – symbol FREVS) REIT organized in 1961. Its portfolio of residential and commercial properties is located in New Jersey and New York, with the largest concentration in northern New Jersey.
For additional information, contact Investor Relations at (201) 488-6400.
Visit us on the web: www.freitnj.com
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