Management agreement, fees and transactions with related party	9 Months Ended
Jul. 31, 2014
Related Party Transactions [Abstract]
Management agreement, fees and transactions with related party	Note 9 - 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 $1,377,000 and $1,294,000 for the nine-month periods ended July 31, 2014 and 2013, respectively, and $470,000 and $403,000 for the three-month periods ended July 31, 2014 and 2013, 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 items amounted to approximately $603,000 and $270,000 for the nine-months ended July 31, 2014 and 2013, respectively, and $69,000 and $74,000 for the three-months ended July 31, 2014 and 2013, respectively. Fees for the current nine and three-month periods include $395,850 in leasing commissions paid to Hekemian relative to the Safeway lease in the Damascus shopping center. 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 $121,000 and $103,000 for the nine-months ended July 31, 2014 and 2013, respectively, and $87,000 and $68,000 for the three-month periods ended July 31, 2014 and 2013, 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, 2014 and 2013 were $979,000 and $1,711,000, respectively, and $550,000 and $0 for the three-month periods ended July 31, 2014 and 2013, respectively. Fees incurred in the current nine-month period include: (a) $330,000 in commissions paid to Hekemian relative to the sale of the South Brunswick property, (b) $550,000 in commissions paid to Hekemian relative to the Regency acquisition, and (c) $98,500 in fees related to services performed relative to the Steuben Arms and Hammel Gardens mortgage loan refinancings. Included in the $1.7 million in fees incurred for the prior year’s nine-month period are development fees totaling $1.4 million incurred and payable to Resources, relating to the Rotunda development project, and $239,000 in fees related to services performed relative to the Westwood Plaza and Damascus shopping center mortgage loan refinancings. With regard to the funding of the Rotunda redevelopment project, Wells Fargo Bank, the construction lender, required that Grande Rotunda, LLC (“Grande”) contribute not less than $14,460,000 towards the construction before any construction loan proceeds can be disbursed. To secure these funds Grande has made a capital call on its members – FREIT and Rotunda 100, LLC (“Rotunda 100”). FREIT’s share (60%) amounts to approximately $8.7 million, and the Rotunda 100 members’ share (40%) amounts to approximately $5.8 million. FREIT, pursuant to previous agreements, has made secured loans to the Rotunda 100 members of approximately $2.1 million towards their share of the $5.8 million capital call. These loans bear an interest rate of 225 basis points over the 90 day LIBOR, and have a maturity date of June 19, 2015. These loans are included in the line item Secured Loans Receivable on FREIT’s condensed consolidated balance sheet at July 31, 2014. As of July 31, 2014, FREIT has made its required capital call contribution of $8.7 million towards the Rotunda construction financing, and Rotunda 100 has made approximately $2.1 million of its required capital call contribution. The balance of Rotunda 100’s capital call of approximately $3.7 million was made in August 2014, and is included in Accounts Receivable; with a corresponding offset to Noncontrolling Interests in Subsidiaries on FREIT’s consolidated balance sheet as of July 31, 2014. To cover the balance until paid by Rotunda 100, FREIT advanced $3.7 million to Grande. Rotunda 100 repaid the $3.7 million advance from FREIT in August 2014. Both FREIT and the Rotunda 100 members are treating their required capital call contributions as additional investments in Grande. Rotunda 100 is principally owned by employees of Hekemian, including certain members of the immediate family of Robert S. Hekemian and Robert S. Hekemian, Jr. 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, 2014 and 2013 was approximately $476,000 and $436,000, respectively, for Mr. Robert S. Hekemian, and $34,000 and $32,000, respectively, for Mr. Robert S. Hekemian, Jr.

Management agreement, fees and transactions with related party

9 Months Ended

Jul. 31, 2014

Management agreement, fees and transactions with related party

Note 9 - 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 $1,377,000 and $1,294,000 for the nine-month periods ended July 31, 2014 and 2013, respectively, and $470,000 and $403,000 for the three-month periods ended July 31, 2014 and 2013, 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 items amounted to approximately $603,000 and $270,000 for the nine-months ended July 31, 2014 and 2013, respectively, and $69,000 and $74,000 for the three-months ended July 31, 2014 and 2013, respectively. Fees for the current nine and three-month periods include $395,850 in leasing commissions paid to Hekemian relative to the Safeway lease in the Damascus shopping center. 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 $121,000 and $103,000 for the nine-months ended July 31, 2014 and 2013, respectively, and $87,000 and $68,000 for the three-month periods ended July 31, 2014 and 2013, 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, 2014 and 2013 were $979,000 and $1,711,000, respectively, and $550,000 and $0 for the three-month periods ended July 31, 2014 and 2013, respectively. Fees incurred in the current nine-month period include: (a) $330,000 in commissions paid to Hekemian relative to the sale of the South Brunswick property, (b) $550,000 in commissions paid to Hekemian relative to the Regency acquisition, and (c) $98,500 in fees related to services performed relative to the Steuben Arms and Hammel Gardens mortgage loan refinancings. Included in the $1.7 million in fees incurred for the prior year’s nine-month period are development fees totaling $1.4 million incurred and payable to Resources, relating to the Rotunda development project, and $239,000 in fees related to services performed relative to the Westwood Plaza and Damascus shopping center mortgage loan refinancings.

With regard to the funding of the Rotunda redevelopment project, Wells Fargo Bank, the construction lender, required that Grande Rotunda, LLC (“Grande”) contribute not less than $14,460,000 towards the construction before any construction loan proceeds can be disbursed. To secure these funds Grande has made a capital call on its members – FREIT and Rotunda 100, LLC (“Rotunda 100”). FREIT’s share (60%) amounts to approximately $8.7 million, and the Rotunda 100 members’ share (40%) amounts to approximately $5.8 million. FREIT, pursuant to previous agreements, has made secured loans to the Rotunda 100 members of approximately $2.1 million towards their share of the $5.8 million capital call. These loans bear an interest rate of 225 basis points over the 90 day LIBOR, and have a maturity date of June 19, 2015. These loans are included in the line item Secured Loans Receivable on FREIT’s condensed consolidated balance sheet at July 31, 2014.

As of July 31, 2014, FREIT has made its required capital call contribution of $8.7 million towards the Rotunda construction financing, and Rotunda 100 has made approximately $2.1 million of its required capital call contribution. The balance of Rotunda 100’s capital call of approximately $3.7 million was made in August 2014, and is included in Accounts Receivable; with a corresponding offset to Noncontrolling Interests in Subsidiaries on FREIT’s consolidated balance sheet as of July 31, 2014. To cover the balance until paid by Rotunda 100, FREIT advanced $3.7 million to Grande. Rotunda 100 repaid the $3.7 million advance from FREIT in August 2014. Both FREIT and the Rotunda 100 members are treating their required capital call contributions as additional investments in Grande. Rotunda 100 is principally owned by employees of Hekemian, including certain members of the immediate family of Robert S. Hekemian and Robert S. Hekemian, Jr.

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, 2014 and 2013 was approximately $476,000 and $436,000, respectively, for Mr. Robert S. Hekemian, and $34,000 and $32,000, respectively, for Mr. Robert S. Hekemian, Jr.