Note 5 – Mortgages, notes payable and credit line:

	October 31, 2015				October 31, 2014
	Principal		Unamortized Debt Issuance Costs		Principal			Unamortized Debt Issuance Costs
	(In Thousands of Dollars)				(In Thousands of Dollars)
Frederick, MD (A)	$	22,000	$	62	$	22,000	$	102
Rockaway, NJ (B)		17,596		167		18,030		196
Westwood, NJ (C)		21,355		229		21,884		264
Patchogue, NY (D)		5,243		56		5,376		93
Wayne, NJ (E)		18,378		95		18,686		121
River Edge, NJ (F)		10,852		139		11,037		156
Maywood, NJ (G)		8,234		113		8,374		127
Westwood, NJ (H)		21,545		169		21,974		202
Wayne, NJ (I)		25,038		22		25,978		54
Hackensack, NJ (J)		30,567		70		31,198		89
Damascus, MD (K)		18,938		486		19,326		551
Middletown, NY (L)		16,200		301		-		-
Total fixed rate mortgage loans		215,946		1,909		203,863		1,955
Baltimore, MD (M)		91,953		1,220		42,689		1,807
Line of credit - Provident Bank (N)		-		-		5,000		-
Total	$	307,899	$	3,129	$	251,552	$	3,762

(A)

Payable in monthly installments of interest only computed over the actual number of days in the elapsed monthly interest period at the rate of 5.55% through May 2017 at which time the outstanding balance is due. The mortgage is secured by a retail building in Frederick, MD having a net book value of approximately $16,371,000 as of October 31, 2015.

(B)

Payable in monthly installments of $115,850 including interest at 5.37% through February 2022 at which time the outstanding balance is due. The mortgage is secured by a residential building in Rockaway, NJ having a net book value of approximately $16,754,000 as of October 31, 2015.

(C)

On January 14, 2013, FREIT refinanced its Westwood Plaza mortgage loan in the amount of $8.0 million, with a new mortgage loan in the amount of $22,750,000, which is payable in monthly installments of $129,702 including interest at 4.75% through January 2023 at which time the outstanding balance is due. The new mortgage is secured by a retail building in Westwood, NJ having a net book value of approximately $8,074,000 as of October 31, 2015.

(D)

The loan, modified effective January 31, 2013, is payable in monthly installments of $31,046 including interest at 4.5%, through March 2018 at which time the outstanding balance is due. Under the terms of the mortgage loan agreement, FREIT can request, during the term of the loan, additional funding that will bring the outstanding principal balance up to 75% of loan-to-value (percentage of mortgage loan to total appraised value of property securing the loan). Effective January 1, 2016, the monthly debt service payment has been reduced to interest only. This arrangement will remain in effect until the earlier of the property being re-leased, sold, the full repayment of the mortgage note, or March 1, 2018. See Note 16. The mortgage is secured by a retail building in Patchogue, New York having a net book value of approximately $6,928,000 as of October 31, 2015.

(E)

Payable in monthly installments of $121,100 including interest at 6.09%, through September 1, 2019 at which time the outstanding balance is due. The mortgage is secured by an apartment building in Wayne, NJ having a net book value of approximately $1,740,000 as of October 31, 2015.

(F)

On November 19, 2013, FREIT refinanced these mortgage loans, which were scheduled to mature on December 1, 2013. The amount of the new loan is $11,200,000 at a fixed interest rate of 4.54%, with a scheduled maturity of December 1, 2023. The mortgages are secured by an apartment building in River Edge, NJ having a net book value of approximately $897,000 as of October 31, 2015.

(G)

On November 19, 2013, FREIT refinanced mortgage loans scheduled to mature on December 1, 2013 with a new mortgage loan in the amount of $8,500,000 payable in monthly installments of $43,605 including interest at 4.54% through December 1, 2023 at which time the outstanding balance is due. The mortgage is secured by an apartment building in Maywood, New Jersey having a net book value of approximately $718,000 as of October 31, 2015.

(H)

Payable in monthly installments of $120,752 including interest of 4.62%, through November 1, 2020, at which time the outstanding balance is due. The mortgage is secured by an apartment building in Westwood, NJ having a net book value of approximately $10,094,000 as of October 31, 2015.

(I)

Payable in monthly installments of $206,960 including interest of 6.04% until June 2016 at which time the unpaid balance is due. The mortgage is secured by a shopping center in Wayne, NJ having a net book value of approximately $26,317,000 as of October 31, 2015.

(J)

Payable in monthly installments of $191,197 including interest of 5.38% until May 2019 at which time the unpaid balance is due. The mortgage is secured by an apartment building in Hackensack, NJ having a net book value of approximately $41,201,000 as of October 31, 2015.

(K)

On December 26, 2012, Damascus Centre, LLC refinanced its $15 million construction loan with long-term financing provided by People's United Bank. The amount of the new loan is $25 million, of which approximately $20 million has been drawn as of October 31, 2015. The balance, up to an additional $5 million, will be available as a one-time draw over a 36 month period ending December 26, 2015, and the amount available will depend on future leasing at the shopping center. The new loan will mature on January 3, 2023. The loan bears a floating interest rate equal to 210 basis points over the BBA LIBOR. In order to minimize interest rate volatility during the term of the loan, Damascus Centre, LLC entered into an interest rate swap agreement that in effect, converted the floating interest rate to a fixed interest rate of 3.81% over the term of the loan (see Note 6 for additional information relating to the interest rate swap). The shopping center securing the loan has a net book value of approximately $28,851,000 as of October 31, 2015.

(L)

On December 29, 2014, FREIT Regency, LLC closed on a $16.2 million mortgage loan with Provident Bank. The new loan bears a floating interest rate equal to 125 basis points over the one-month BBA LIBOR and the loan will mature on December 15, 2024. Interest-only payments are required each month through December 15, 2017. Thereafter, principal payments of $27,807 (plus accrued interest) are required each month through maturity. In order to minimize interest rate volatility during the term of the loan, FREIT Regency, LLC entered into an interest rate swap agreement that in effect, converted the floating interest rate to a fixed interest rate of 3.75% over the term of the loan. (See Note 6 for additional information relating to the interest rate swap.) The mortgage is secured by an apartment complex in Middletown, NY having a new book value of $20,421,000 as of October 31, 2015.

(M)

On February 1, 2010, a principal payment of $3 million was made reducing the $22.5 million mortgage loan entered into by the Grande for the acquisition of the Rotunda, to $19.5 million and the due date was extended until February 1, 2013. As part of the terms of the loan extension agreement, the loan was further collateralized by a first mortgage lien and the assignment of the ground lease on FREIT's Rochelle Park, NJ land parcel. Under the restructured terms, the interest rate is now 350 basis points above the BBA LIBOR with a floor of 4%, and monthly principal payments of $10,000 are required. An additional principal payment of $110,000 was required on February 1, 2012 in order to reduce the loan to achieve the stipulated debt service coverage ratio. Under the agreement with the equity owners of Grande Rotunda, LLC, FREIT would be responsible for 60% of any cash required by Grande Rotunda, LLC, and 40% would be the responsibility of the minority interest. The due date of the loan was further extended to May 1, 2013 from February 1, 2013. While the bank agreed to an additional extension of ninety-days (90) from May 1, 2013, FREIT elected to purchase the Rotunda loan from the bank and have all the bank's rights assigned to FREIT. The purchase of this loan by FREIT was completed on May 28, 2013. FREIT subsequently sold this loan to Wells Fargo Bank, the lender providing the construction financing for the expansion of the Rotunda project. On December 9, 2013, FREIT's 60% owned affiliate, Grande Rotunda, LLC, closed with Wells Fargo Bank on a construction loan of up to $120 million to be used to reconfigure and expand its Rotunda property in Baltimore, MD. The construction loan is for a term of four (4) years, with one 12-month extension, at a rate of 225 basis points over the monthly LIBOR. Interest on the loan is accrued and applied to principal. Such interest will be due and payable at maturity. The loan is secured by the Rotunda property in Baltimore, MD, which has a net book value of approximately $130,943,000 as of October 31, 2015, including $99.7 million classified as construction in progress. As of October 31, 2015, $92 million was drawn down, of which $19 million was used to pay off the loan from FREIT, and $73 million was used towards the construction at the Rotunda.

(N)

Credit Line: FREIT has a line of credit provided by the Provident Bank in the amount of $12.8 million. The line of credit is for a two year term ending on November 1, 2016, but can be cancelled by the bank, at its will, within 60 days before or after each anniversary date. The credit line will automatically be extended at the termination date of the current term and each subsequent term for an additional period of 24 months, provided there is no default and the credit line has not been cancelled. Draws against the credit line can be used for general corporate purposes, for property acquisitions, construction activities, and letters of credit. Draws against the credit line are secured by mortgages on FREIT's Franklin Crossing Shopping Center in Franklin Lakes, NJ, and retail space in Glen Rock, NJ. Interest rates on draws will be set at the time of each draw for 30, 60, or 90-day periods, based on our choice of the prime rate or at 175 basis points over the 30, 60, or 90- day LIBOR rates at the time of the draws. The interest rate on the line of credit has a floor of 3.5%. The Palisades Manor and the Grandview Apartment properties had been part of the collateral for the line of credit prior to FREIT's sales of these properties in April 2013 and August 2013, respectively. Provident Bank released these properties as collateral for the credit line in connection with these dispositions, and as a result, the credit line was reduced from $18 million to approximately $13 million as of July 2013. The $5 million that was outstanding as of October 31, 2014, was repaid to the bank in January 2015 from the proceeds of a $16.2 million mortgage loan from the Provident Bank. As of October 31, 2015, approximately $12.8 million was available under the line of credit and no amount was outstanding.

Certain of the Company's mortgage loans and the Credit Line contain financial covenants. The Company was in compliance with all of its financial covenants as of October 31, 2015.

Fair Value of Long-Term Debt:

The following table shows the estimated fair value and carrying value of FREIT's long-term debt at October 31, 2015 and 2014:

	October 31,		October 31,
(in Millions)	2015		2014

Fair Value	$	313.5	$	256.0

Carrying Value	$	307.9	$	251.6

Fair values are estimated based on market interest rates at the end of each fiscal year and on discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value is based on observable inputs (level 2 in the fair value hierarchy as provided by authoritative guidance).

Principal amounts (in thousands of dollars) due under the above obligations in each of the five years subsequent to October 31, 2015 are as follows:

Year Ending October 31,	Amount
2016	$	28,365
2017	$	25,507
2018	$	8,795
2019	$	140,613	(a)
2020	$	22,062

(a)

Includes $92 million relating to the Rotunda construction loan, due December 2018. (See Note 5(M).)