EX-99 3 ex1-43747_3702.txt Exhibit FIRST REAL ESTATE INVESTMENT TRUST of New Jersey RESULTS OF OPERATIONS FIRST QUARTER ENDED JANUARY 31, 2002 HACKENSACK, NJ, March 4, 2002 - First Real Estate Investment Trust ("FREIT") announced operating results for the first quarter ended January 31, 2002. All per share amounts represent diluted earnings per share and prior periods have been adjusted to reflect the two-for-one share split paid October 18, 2001. Net income for the first quarter ended January 31, 2001 ("Current Quarter") increased 19.8% to $1,338,000 ($.42 per share) on revenues of $4,969,000. This compares to Net Income of $1,117,000 ($.36 per share) on revenues of $4,818,000 for the quarter ended January 31, 2001 ("Prior Year's Quarter"). FFO for the Current Quarter increased 14.3% to $.56 per share from $.49 per share for the Prior Year's Quarter. The operating results for the Current Quarter are not necessarily indicative of the results to be expected for the full year. Both our Retail properties and our Residential properties registered increases in revenues and earnings. Earnings at our Retail properties benefited from higher occupancy, increased base rents, and increased, one time, expense pass-through. At our Residential properties, the Current Quarter experienced slightly higher occupancy, 94.3%, than during the Prior Year's Quarter of 93.3%. However, the recession has affected the apartment mix of the vacancies. The Current Quarter has experienced a larger number of higher rent apartments being vacant than during the Prior Year's Quarter. This results in a larger dollar loss attributable to vacancies. Net Income at our 40% owned affiliate, Westwood Hills L.L.C., which owns a 210 unit garden apartment community, increased to $127,000 for the Current Quarter from $76,000 for the Prior Year's Quarter. During the Current Quarter the property benefited from continuing high occupancy, 97%, higher rents and lower operating expenses than experienced during Prior Year's Quarter. As a result our share of the affiliates earnings increased to $51,000 from $30,000 last year. As a result of lower interest rates available for investing our cash and cash equivalents, net investment income decreased to $68,000 during the Current Quarter from $218,000 for the Prior Year's Quarter. However, we benefited from lower interest rates charged on our floating rate mortgage. Financing costs during the Current Quarter were reduced to $1,216,000 from $1,378,000 for the Prior Year's Quarter. A first quarter dividend of $.30 per share has been declared and will be payable on March 15, 2002 to shareholders of record on March 1, 2002. OoOoOoO ------- 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. For additional information contact Shareholder Relations at (201) 488-6400 -------------------------------------------------------------------------- FIRST REAL ESTATE INVESTMENT TRUST of New Jersey Summary Consolidated Balance Sheet Data (in thousand of dollars except Per Share amounts) January 31, 2002 2002 ------- ------- Real Estate Properties $76,547 $77,663 Cash & Cash Items 13,392 2,259 Marketable Securities -- 9,506 Morgage notes Payable 69,093 70,005 Shareholder's Equity 21,990 21,380 Summary Consolidated Statement of Income Quater Ended ------------ January 31, ----------- 2002 2000 ------- ------- Revenue: Real Estate Operations $ 4,827 $ 4,570 Net Investment Income 68 218 Equity In Earnings Of Affiliate 51 30 ------- ------- Total Revenue 4,946 4,818 ------- ------- Expense: Real Estate Operations 1,068 1,097 Real Estate Taxes 605 579 Financing Costs 1,216 1,378 General & Administrative 120 89 Depreciation 552 548 Minority Interest 47 10 ------- ------- Total Expenses 3,608 3701 ------- ------- Net Income $ 1,338 $ 1,117 ======= ======= Net Income Per Share: Basic $ 0.43 $ 0.36 Diluted $ 0.42 $ 0.36 Funds From Operations Net Income $ 1,338 $ 1,117 Depreciation & Amortization 552 548 Deferred Rents (93) (107) Capital Improvements - Apartments (90) (100) Other 68 68 ------- ------- Total FFO $ 1,775 $ 1,526 ======= ======= FFO Per Share: Basic $ 0.57 $ 0.49 Diluted $ 0.56 $ 0.49 Dividends Per Share $ 0.30 $ 0.30 ======= ======= FREIT is a publicly traded (over-the-counter - symbol FREVS) REIT organized in 1961. It has approximately $96 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