Management agreement, fees and transactions with related party	6 Months Ended
Apr. 30, 2012
Management Agreement Fees And Transactions With Related Party
Management agreement, fees and transactions with related party	Note 6 - Management agreement, fees and transactions with related party: Hekemian & Co., Inc. (“Hekemian”) currently manages all the properties owned by FREIT, except for The Rotunda, a mixed-use office and retail facility located in Baltimore, Maryland, which is managed by an independent third party management company. The management agreement with Hekemian, effective November 1, 2001, requires the payment of management fees equal to a percentage of rents collected. Such fees were approximately $927,000 and $895,000 for the six-months ended April 30, 2012 and 2011, respectively. For the three-month period ended April 30, 2012 and 2011, such fees were approximately $462,000 and $439,000, respectively. In addition, the management agreement provides for the payment to Hekemian of leasing commissions, as well as the reimbursement of operating expenses incurred on behalf of FREIT. Such fees amounted to approximately $234,000 and $156,000 for the six-months ended April 30, 2012 and 2011, respectively, and $123,000 and $88,000 for the three-months ended April 30, 2012 and 2011, respectively. The management agreement expires on October 31, 2013, and is automatically renewed for periods of two years unless either party gives notice of non-renewal. FREIT also uses the resources of the Hekemian insurance department to secure various insurance coverages for its properties and subsidiaries. Hekemian is paid a commission for these services. Such commissions amounted to approximately $39,000 and $66,000 for the six-months ended April 30, 2012 and 2011, respectively, and $2,000 and $37,000 for the three-months ended April 30, 2012 and 2011, respectively. From time to time, FREIT engages Hekemian to provide certain additional services, such as consulting services related to development and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian and FREIT with respect to such additional services. Such fees paid to Hekemian during the six-months ended April 30, 2012 and 2011 were $236,000 and $0, respectively. Fees paid in the current six month period relate to services performed with regard to the Damascus development project. Mr. Robert S. Hekemian, Chairman of the Board, Chief Executive Officer and a Trustee of FREIT, is the Chairman of the Board and Chief Executive Officer of Hekemian. Mr. Robert S. Hekemian, Jr, a Trustee of FREIT, is the President of Hekemian. Trustee fee expense (including interest) incurred by FREIT for the six-months ended April 30, 2012 and April 30, 2011 was approximately $267,000 and $241,000, respectively, for Mr. Robert S. Hekemian, and $21,000 and $18,000, respectively, for Mr. Robert S. Hekemian, Jr.

Management agreement, fees and transactions with related party

6 Months Ended

Apr. 30, 2012

Management Agreement Fees And Transactions With Related Party

Management agreement, fees and transactions with related party

Note 6 - Management agreement, fees and transactions with related party:

Hekemian & Co., Inc. (“Hekemian”) currently manages all the properties owned by FREIT, except for The Rotunda, a mixed-use office and retail facility located in Baltimore, Maryland, which is managed by an independent third party management company. The management agreement with Hekemian, effective November 1, 2001, requires the payment of management fees equal to a percentage of rents collected. Such fees were approximately $927,000 and $895,000 for the six-months ended April 30, 2012 and 2011, respectively. For the three-month period ended April 30, 2012 and 2011, such fees were approximately $462,000 and $439,000, respectively. In addition, the management agreement provides for the payment to Hekemian of leasing commissions, as well as the reimbursement of operating expenses incurred on behalf of FREIT. Such fees amounted to approximately $234,000 and $156,000 for the six-months ended April 30, 2012 and 2011, respectively, and $123,000 and $88,000 for the three-months ended April 30, 2012 and 2011, respectively. The management agreement expires on October 31, 2013, and is automatically renewed for periods of two years unless either party gives notice of non-renewal.

FREIT also uses the resources of the Hekemian insurance department to secure various insurance coverages for its properties and subsidiaries. Hekemian is paid a commission for these services. Such commissions amounted to approximately $39,000 and $66,000 for the six-months ended April 30, 2012 and 2011, respectively, and $2,000 and $37,000 for the three-months ended April 30, 2012 and 2011, respectively.

From time to time, FREIT engages Hekemian to provide certain additional services, such as consulting services related to development and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian and FREIT with respect to such additional services. Such fees paid to Hekemian during the six-months ended April 30, 2012 and 2011 were $236,000 and $0, respectively. Fees paid in the current six month period relate to services performed with regard to the Damascus development project.

Mr. Robert S. Hekemian, Chairman of the Board, Chief Executive Officer and a Trustee of FREIT, is the Chairman of the Board and Chief Executive Officer of Hekemian. Mr. Robert S. Hekemian, Jr, a Trustee of FREIT, is the President of Hekemian. Trustee fee expense (including interest) incurred by FREIT for the six-months ended April 30, 2012 and April 30, 2011 was approximately $267,000 and $241,000, respectively, for Mr. Robert S. Hekemian, and $21,000 and $18,000, respectively, for Mr. Robert S. Hekemian, Jr.