EX-99 3 exhibit99_9-7.txt Exhibit I RESULTS OF OPERATIONS THIRD QUARTER & NINE MONTHS ENDED JULY 31, 2001 -------------------------------------------------------------------------------- HACKENSACK, NJ, September 5, 2001 - First Real Estate Investment Trust ("FREIT") announced its operating results for the third quarter and nine months ended July 31, 2001. Net Income for the third quarter increased 2.6% to $1,446,000 ($.92 per diluted share) on revenues of $5,036,000. This compares to Net Income of $1,409,000 ($.90 per share) on revenues of $4,892,000 for last years third quarter. Funds Form Operations ("FFO") for the current year's quarter increased 3.9% to $1,859,000 ($1.18 per share) compared to $1,790,000 ($1.15 per share) last year. Net Income for the nine months ended July 31, 2001 increased 3.1% to $3,524,000 ($2.25 per diluted share) on revenues of $14,647,000, compared to Net Income of $3,418,000 ($2.19 per share) on revenues of $13,311,000 last year. FFO for the current nine-month period increased 6.3% to $4,745,000 ($3.03 per diluted share) from $4,464,000 ($2.86 per share) last year. RESIDENTIAL PROPERTIES: Earnings (Net Income before debt service) at FREIT's Residential properties increased 7.1% to $2.3 million on revenues of $5.0 million during the nine months ended 7/31/01. This compares to Earnings of $2.1 million on revenues of $4.7 million for the nine months ended 7/31/00. Average occupancy during the current nine months period was 93.9% compared to 93.1% for the prior year's period. The increase in Net Income resulted from higher monthly apartment rents experienced during the current nine-month period compared to last year. Net Income at FREIT's 40% owned affiliate, which owns a 210 unit garden apartment community in Westwood, NJ, increased 10.9% to $296,000 for the current nine month period, up from $267,000 last year. RETAIL PROPERTIES: Earnings (Net Income before debt service) at the Retail properties increased 6.1% to $4.9 million on revenues of $9.0 million during the nine months ended 7/31/01 compared Earnings of $4.6 million on revenues of $7.9 million for last year's comparable period. All of the increase is attributable to the inclusion of the operations of Olney Town Center ("Olney") for the full nine months this year compared to only four months last year. EXPENSES: Increases in expenses at the properties resulted from the following: higher utility and snow removal costs due to a more severe winter this fiscal year compared to last year, and the inclusion of Olney. DIVIDENDS: FREIT declared a third quarter dividend of $.60 per share payable on September 18, 2001 to shareholders of record on September 4, 2001. This raises total dividends for the 2001 fiscal year to $1.80 per share compared to last year's dividends per share of $1.50 for the nine months ended 7/31/00. ~~~~~~~~~~ The statements in this report that relate to future earnings or performance are forward-looking. Actual results might differ materially and be adversely affected by such factors as longer than anticipated lease-up periods or the inability of tenants to pay increased rents. Additional information about these factors is contained in the Trust's filings with the SEC including the Trust's most recent filed report on Form 10-K and Form 10-Q. FIRST REAL ESTATE INVESTMENT TRUST Of New Jersey
Summary Consolidated Balance Sheet Data (in thousand of dollars) July 31, 2001 2000 ---- ---- Real Estate Properties, Net Of Depreciation $ 77,247 $ 78,353 Cash & Cash Items 8,712 2,360 Marketable Securities 4,518 9,380 Equity In Affiliate (378) (359) Mortgage Notes Payable 69,575 70,418 Minority Interest 1,273 1,034 Shareholder's Equity 21,927 21,526 Shares Outstanding 1,560 1,560
Summary Consolidated Statement of Income (in thousands of dollars, except Per Share amounts) Nine Months Ended Three Months Ended July 31, July 31, ---------------------------- --------------------------- 2001 2000 2001 2000 Revenues: Rental Income $ 11,737 $ 10,703 $ 3,962 $ 3,873 Reimbursements 1,936 1,555 650 561 Net Investment Income 593 620 189 204 Equity In Earnings Of Affiliate 118 107 56 35 Other 263 326 179 219 ------------------------------------------------------------------------------------------------------------------------------ Total Revenue 14,647 13,311 5,036 4,892 ------------------------------------------------------------------------------------------------------------------------------ Expenses: Operating Expenses & Management Fees 3,315 2,779 1,031 896 Real Estate Taxes 1,745 1,603 587 565 Financing Costs 4,074 3,779 1,300 1,400 General & Administrative 289 273 90 69 Depreciation 1,653 1,442 551 542 Minority Interest 47 17 31 11 ------------------------------------------------------------------------------------------------------------------------------ Total Expenses 11,123 9,893 3,590 3,483 ------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------ Net Income 3,524 3,418 1,446 1,409 ------------------------------------------------------------------------------------------------------------------------------ Net Income Per Share Basic Earnings Per Share $ 2.26 $ 2.19 $ 0.93 $ 0.90 Diluted Earnings Per Share $ 2.25 (a) $ 0.92 (a) ------------------------------------------------------------------------------------------------------------------------------ Funds From Operations: Net Income $ 3,524 $ 3,418 $ 1,446 $ 1,409 Depreciation & Amortization 1,747 1,522 579 574 Deferred Rents (301) (319) (99) (123) Capital Improvements - Apartments (348) (230) (124) (115) Other 123 90 57 45 ------------------------------------------------------------------------------------------------------------------------------ Funds From Operations 4,745 4,481 1,859 1,790 ------------------------------------------------------------------------------------------------------------------------------ Funds From Operations Per Share Basic FFO Per Share $ 3.04 $ 2.87 $ 1.19 $ 1.15 Diluted FFO Per Share $ 3.03 (a) $ 1.18 (a) ==============================================================================================================================
(a) No dilution. First Real Estate Investment Trust is a publicly traded (over-the-counter -- symbol FREVS) REIT organized in 1961. It has approximately $97 million (historical cost basis) of assets. Its portfolio of residential and retail properties extends from Eastern L.I. to Maryland, with the largest concentration in Northern New Jersey For additional information contact Shareholder Relations at (201) 488-6400