-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PRPHXdK5yKyxbmX84v8nHvr1JWchzUh6QZ22v/DVtlAPiZEnKj3rEm8imvkyFAFl 1zqqYXVxLRGSDqa4i9Ou+w== 0000914317-02-001470.txt : 20021127 0000914317-02-001470.hdr.sgml : 20021127 20021127101258 ACCESSION NUMBER: 0000914317-02-001470 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20021127 ITEM INFORMATION: Other events FILED AS OF DATE: 20021127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY CENTRAL INDEX KEY: 0000036840 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 221697095 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25043 FILM NUMBER: 02842030 BUSINESS ADDRESS: STREET 1: 505 MAIN ST STREET 2: P O BOX 667 CITY: HACKENSACK STATE: NJ ZIP: 07602 BUSINESS PHONE: 2014886400 MAIL ADDRESS: STREET 1: P O BOX 667 STREET 2: 505 MAIN STREET CITY: HACKENSACK STATE: NJ ZIP: 07602 8-K 1 form8k-48018_1102.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: November 26, 2002 FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY ------------------------------------------------ (Exact name of registrant as specified in its charter) New Jersey 22-1697095 ---------- ---------- (State or other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 505 Main Street, P.O. Box 667, Hackensack, New Jersey 07602 - ----------------------------------------------------- ----- Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code 201-488-6400 -------------- Item 5. Other Events The Registrant has reported to its shareholders its operating results for the yer and quarter ended October 31, 2002. The Press Release is included as Exhibit I to this Form 8-K. Disclosure Concerning Forward-Looking Statements - ------------------------------------------------ Certain Statements in this Form 8-K may contain information that is, or anticipate certain events that are, forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Registrant cautions readers that forward-looking statements, including, without limitation, those relating to the Registrant's liquidity and capital resources, are subject to certain risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors, including without limitation, the Registrant's future financial performance; the availability of capital; general market conditions; national and local economic conditions; particularly long-term interest rates; the terms of federal, state and local governmental regulations that affect the Registrant; and the competitive environment in which the Registrant operates, including the availability of retail space and residential apartment units in the areas where the Registrant's properties are located. In addition, the Registrant's continued qualification as a real estate investment trust involves the application of highly technical and complex rules of the Internal Revenue Code. The forward-looking statements are made as of the date of this Form 8-K and the Registrant assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those projected in such forward-looking statements. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized. FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY By: s/s Robert S, Hekemian ----------------------- Robert S. Hekemian Chairman of the Board DATED: November 27, 2002 EX-99.1 3 exhibit1.txt RESULTS OF OPERATIONS YEAR AND THREE MONTHS ENDED OCTOBER 31, 2002 AND 2001 HACKENSACK, NJ, November 26, 2002 - First Real Estate Investment Trust ("FREIT") announced its operating results for the year and three months ended October 31, 2002. All per share amounts discussed represent diluted earnings per share. The results of operations for the year and three months are not necessarily indicative of future operating results. Net income from continuing operations for the three months ended October 31, 2002 increased by 8.1% to $1,271,000 ($.39 per share) on revenues of $4,755,000, from $1,177,000 ($.37 per share) on revenues of $4,548,000 for the three months ended October 31, 2001. During the quarter ended October 31, 2002 FREIT sold its residential property in Camden, NJ at a capital gain of $475,000. FREIT has classified the capital gain and the net earnings (loss) of the Camden property as discontinued operations for all periods presented. Net income, including discontinued operations was $1,703,000 ($.52 per share) for the three months ended October 31, 2002 vs. $1,177,000 ($.37 per share) for the three months ended October 31, 2001. For the year ended October 31, 2002 ("Current Year") net income from continuing operations increased 12.1% to $5,282,000 ($1.63 per share) on revenues of $19,145,000, from $4,701,000 ($1.50 per share) on revenues of 18,935,000 for the year ended October 31, 2001 ("Prior Year"). FFO for the Current Year increased 12.7% to $7,202,000 ($2.26 per share) from $6,389,000 ($2.04 per share) for the Prior Year. Earnings from discontinued operations of $399,000 raised net income for the Current Year to $5,681,000 ($1.75 per share). RETAIL PROPERTIES: For the Current Year, Earnings (Net income before depreciation, deferred rents, and financing costs) increased 5.6% to $8.4 million on revenues of $11.9 million. This compares to earnings of $7.9 million on revenues of $11.5 million for the Prior Year. Average occupancy for the Current Year and at October 31, 2002 was 96.2% and 93.0% respectively. Average occupancy for the Prior Year and at October 31, 2001 was 95.8% and 97.3% respectively. The drop in current occupancy is due, principally, to the termination, effective July 31, 2002, of the Stop & Shop lease at Westwood Plaza Shopping Center in Westwood, NJ. As previously reported (September 12, 2002), FREIT expects to lease the vacated space to a tenant at rental rates that will far exceed the below market rents under the terminated lease. ACQUISITION OF PREAKNESS SHOPPING CENTER: On November 1, 2002, Wayne PSC, LLC acquired, the 323,000 +/- SF Preakness Shopping Center in Wayne, NJ. FREIT has a 40% interest in Wayne PSC, LL, and is the Managing Member. The acquisition had no effect on Current Year's operations, however, it is expected that this acquisition will enhance shareholder value and cash flow in the coming years. RESIDENTIAL PROPERTIES: Earnings for the Current Year increased 7.1% to $3.9 million on revenues of $6.3 million compared to earnings of $3.6 million on revenues of $6.1 million for the Prior Year. Average occupancy for the Current Year and at October 31, 2002 was 96.8% and 94.3% respectively. Average occupancy for the Prior Year and at October 31, 2001 was 97.7% and 95.3% respectively. The less than 1% reduction in occupancy from the Prior Year was more than offset by the 4% increase in average tenant monthly rents during the Current Year - $1,046 vs. $1,006. WESTWOOD HILLS, LLC: Net Income was further enhanced by the increase in FREIT's equity in earnings of its 40% owned affiliate, Westwood Hills, LLC ("WH"), to $269,000 for the Current Year from $190,000 for the Prior Year. WH owns a 210-unit apartment property in Westwood, NJ. During the Current Year this property experienced revenue increases of 4.4% and operating expense reductions of .5% compared to the Prior Year. The holder of first mortgage on WH's property has agreed to increase the loan, via a second mortgage, which will run co-terminus with the first mortgage loan - approximately 11 years. The second mortgage loan amount will be approximately $3.4 million and will bear interest at a fixed rate of 6.18%. This additional financing is expected to close in about 60 days. FREIT will receive 40% of the net financing proceeds, further adding it its liquidity. INVESTMENT INCOME & FINANCING: Net Investment Income fell by $433,000 during the Current Year compared to the Prior Year. This reduction, due to lower available investment returns, was more than offset by the reduction in financing costs of $483,000 for the Current Year compared to the Prior Year. During November 2002, FREIT renegotiated the terms of the first mortgage note on FREIT's retail property in Patchogue, NY. The mortgage note, which has an outstanding principal balance of $6.9 million, is due on January 1, 2005, and carries a fixed interest rate of 7.375%. The due date has been extended three years (3) and the interest rate was reduced to 5.95% fixed. This interest rate reduction will result in lower interest charges and, in turn, higher income, and cash flow to shareholders. DIVIDENDS: The Board of Trustees has declared a fourth quarter dividend of $.67 per share payable on December 17, 2002 to shareholders of record on December 2, 2002. This dividend raises dividends from continuing operations for the year to $1.57 per share (excluding the special capital gain dividend of $.15 per share paid on September 6, 2002). This compares to Prior Year's dividends of $1.38. In addition, the Board of Trustees has increased the fixed dividend paid for the first three quarters of each year to $.35 per share from $.30 per share. 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 Forms 10-K and 10-Q. ###### 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. For additional information contact Shareholder Relations at (201) 488-6400. (summary financial statements over)
FIRST REAL ESTATE INVESTMENT TRUST of New Jersey Summary Consolidated Statement of Income (in thousands of dollars except per share amount) Year Ended Three Months Ended ------------------------ ------------------------ October 31, October 31, 2002 2001 2002 2001 Revenues: Real Estate Operations $ 18,626 $ 18,062 $ 4,616 $ 4,548 Net Investment Income 250 683 67 89 Equity In Earnings Of Affiliate 269 190 72 72 -------- -------- -------- -------- Total Revenue 19,145 18,935 4,755 4,709 -------- -------- -------- -------- Expenses: Operating Expenses & Management Fees 3,658 3,814 958 834 Real Estate Taxes 2,400 2,293 619 589 Financing Costs 4,873 5,356 1,212 1,282 General & Administration 642 539 104 248 Depreciation 2,153 2,137 544 543 Minority Interest 137 85 47 37 -------- -------- -------- -------- Total Expenses 13,863 14,224 3,484 3,533 -------- -------- -------- -------- Net Income Before Discontinued Operations 5,282 4,711 1,271 1,176 Discontinued Operations Gain On Sale 475 475 Operations (76) (10) (43) 1 -------- -------- -------- -------- Total Discontinued Operations 399 (10) 432 1 -------- -------- -------- -------- Net Income $ 5,681 $ 4,701 $ 1,703 $ 1,177 ======== ======== ======== ======== - ------------------------------------------------------------------------------------------------ Basic earnings per share: Earnings before discontinued operations $ 1.69 $ 1.51 $ 0.41 $ 0.38 Discontinued operations 0.13 -- 0.14 -- -------- -------- -------- -------- Total $ 1.82 $ 1.51 $ 0.55 $ 0.38 ======== ======== ======== ======== Diluted earnings per share: Earnings before discontinued operations $ 1.63 $ 1.50 $ 0.39 $ 0.37 Discontinued operations 0.12 -- 0.13 -- -------- -------- -------- -------- Total $ 1.75 $ 1.50 $ 0.52 $ 0.37 ======== ======== ======== ======== - ------------------------------------------------------------------------------------------------ Funds From Operations: Net Income $ 5,681 $ 4,701 $ 1,703 $ 1,177 Depreciation & Amortization 2,153 2,137 544 543 Discontinued operations (399) 10 (432) (1) Deferred Rents (326) (414) (60) (113) Project Abandoned 161 114 -- 114 Capital Improvements - Apartments (378) (429) (169) (104) Minority Interest 137 85 47 37 Other 173 185 58 10 -------- -------- -------- -------- Total FFO $ 7,202 $ 6,389 $ 1,691 $ 1,663 ======== ======== ======== ======== FFO Per Share - Basic $ 2.31 $ 2.05 $ 0.54 $ 0.53 - Diluted $ 2.26 $ 2.04 $ 0.52 $ 0.52 Dividends Per Share Regular $ 1.57 $ 1.38 $ 0.67 $ 0.48 Special Long Term Capital Gain $ 0.15 $ -- $ 0.15 $ -- -------- -------- -------- -------- Total Dividends $ 1.72 $ 1.38 $ 0.82 $ 0.48 -------- -------- -------- --------
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