Management agreement, fees and transactions with related party	9 Months Ended
Jul. 31, 2013
Management Agreement Fees And Transactions With Related Party
Management agreement, fees and transactions with related party	Note 7 - Management agreement, fees and transactions with related party: Hekemian & Co., Inc. (“Hekemian”) currently manages all the properties owned by FREIT and its affiliates, 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 $1,294,000 and $1,318,000 for the nine-month periods ended July 31, 2013 and 2012, respectively, and $403,000 and $428,000, for the three-month periods ended July 31, 2013 and 2012, 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 $270,000 and $328,000 for the nine-months ended July 31, 2013 and 2012, respectively, and $73,000 and $94,000 for the three-months ended July 31, 2013 and 2012, respectively. The management agreement expires on October 31, 2015, 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 $103,000 and $111,000 for the nine-months ended July 31, 2013 and 2012, respectively, and $68,000 and $72,000 for the three-months ended July 31, 2013 and 2012, respectively. From time to time, FREIT engages Hekemian to provide certain additional services, such as consulting services related to development, property sales and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian and FREIT with respect to such additional services. In connection with the development activities at the Rotunda, which is owned and operated by Grande Rotunda, LLC, a definitive agreement for the development services to be provided by Hekemian Development Resources LLC (“Resources”), a wholly owned subsidiary of Hekemian, has been approved and executed. Such fees incurred to Hekemian and Resources during the nine-months ended July 31, 2013 and 2012 were $1,711,000 and $236,000, respectively of which $311,000 and $236,000 were paid during the nine-months ended July 31, 2013 and 2012, respectively. Included within the $1.7 million in fees incurred for the current nine-month period are development fees totaling $1.4 million incurred and payable to Resources, relating to the Rotunda development project. Fees paid in the current nine-month period relate to services performed with regard to the Westwood Plaza shopping center and Damascus shopping center mortgage loan refinancings amounting to $239,000 (see Note 9), and $72,000 relating to the commission paid to Hekemian for the sale of the Palisades Manor property. Fees paid in the prior year’s nine-month period relate to services performed relative 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 nine-months ended July 31, 2013 and 2012 was approximately $436,000 and $406,000, respectively, for Mr. Robert S. Hekemian, and $32,000 and $33,000, respectively, for Mr. Robert S. Hekemian, Jr.

Management agreement, fees and transactions with related party

9 Months Ended

Jul. 31, 2013

Management Agreement Fees And Transactions With Related Party

Management agreement, fees and transactions with related party

Note 7 - Management agreement, fees and transactions with related party:

Hekemian & Co., Inc. (“Hekemian”) currently manages all the properties owned by FREIT and its affiliates, 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 $1,294,000 and $1,318,000 for the nine-month periods ended July 31, 2013 and 2012, respectively, and $403,000 and $428,000, for the three-month periods ended July 31, 2013 and 2012, 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 $270,000 and $328,000 for the nine-months ended July 31, 2013 and 2012, respectively, and $73,000 and $94,000 for the three-months ended July 31, 2013 and 2012, respectively. The management agreement expires on October 31, 2015, 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 $103,000 and $111,000 for the nine-months ended July 31, 2013 and 2012, respectively, and $68,000 and $72,000 for the three-months ended July 31, 2013 and 2012, respectively.

From time to time, FREIT engages Hekemian to provide certain additional services, such as consulting services related to development, property sales and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian and FREIT with respect to such additional services. In connection with the development activities at the Rotunda, which is owned and operated by Grande Rotunda, LLC, a definitive agreement for the development services to be provided by Hekemian Development Resources LLC (“Resources”), a wholly owned subsidiary of Hekemian, has been approved and executed. Such fees incurred to Hekemian and Resources during the nine-months ended July 31, 2013 and 2012 were $1,711,000 and $236,000, respectively of which $311,000 and $236,000 were paid during the nine-months ended July 31, 2013 and 2012, respectively. Included within the $1.7 million in fees incurred for the current nine-month period are development fees totaling $1.4 million incurred and payable to Resources, relating to the Rotunda development project. Fees paid in the current nine-month period relate to services performed with regard to the Westwood Plaza shopping center and Damascus shopping center mortgage loan refinancings amounting to $239,000 (see Note 9), and $72,000 relating to the commission paid to Hekemian for the sale of the Palisades Manor property. Fees paid in the prior year’s nine-month period relate to services performed relative 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 nine-months ended July 31, 2013 and 2012 was approximately $436,000 and $406,000, respectively, for Mr. Robert S. Hekemian, and $32,000 and $33,000, respectively, for Mr. Robert S. Hekemian, Jr.