COVID-19 Pandemic	6 Months Ended
Apr. 30, 2022
Covid 19Pandemic Abstract
COVID-19 Pandemic	Note 16 – COVID-19 Pandemic: The international spread of COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. Beginning in March 2020 and throughout most of 2020, many states in the U.S., including New Jersey, New York and Maryland, where our properties were located, implemented stay-at-home and shut down orders for all "non-essential" business and activity in an aggressive effort to mitigate the spread of COVID-19. Over the past year, vaccinations for the COVID-19 virus were widely distributed among the general U.S. population which resulted in loosened restrictions previously mandated on our tenants identified as nonessential. However, the potential emergence of vaccine-resistant variants of COVID-19 could trigger restrictions to be put back in place. Such restrictions may include mandatory business shut-downs, reduced business operations and social distancing requirements. As the impact of the pandemic evolves, it continues to cause uncertainty and volatility in the financial markets. The COVID-19 pandemic and the actions taken by individuals, businesses and government authorities to reduce its spread have caused substantial lost business revenue, changes in consumer behavior and large reductions in liquidity and fair value of many assets. Despite the COVID-19 pandemic and preventive measures taken to mitigate the spread, our residential properties have continued to generate cash flow. At our commercial properties, with the exception of grocery stores and other "essential" businesses, many of our retail tenants were adversely affected by the previously mandated shut downs and the continued lingering impact to consumer sentiment and preferences for safety amid the reemergence of other COVID-19 variants. The Company continues to closely monitor changes in the collectability assessment of its tenant receivables. For the six and three months ended April 30, 2022, rental revenue deemed uncollectible of approximately $0.4 million and $0.3 million (with a consolidated impact to FREIT of approximately $0.2 million and $0.2 million), respectively, was classified as a reduction in rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. For the six and three months ended April 30, 2021, rental revenue deemed uncollectible of approximately $0.9 million and $0.3 million (with a consolidated impact to FREIT of approximately $0.6 million and $0.2 million), respectively, was classified as a reduction in rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. During the period beginning March 2020 through October 31, 2021, FREIT has applied, net of amounts subsequently paid back by tenants, an aggregate of approximately $397,000 of security deposits from its commercial tenants to outstanding receivables due. For the six and three months ended April 30, 2022, there were no security deposits from its commercial tenants applied to outstanding receivables due. On a case by case basis, FREIT has offered rent abatements totaling approximately $9,000 and $0 (with a consolidated impact to FREIT of approximately $9,000 and $0) for the six and three months ended April 30, 2022, respectively, and $101,000 and $51,000 (with a consolidated impact to FREIT of approximately $71,000 and $40,000) for the six and three months ended April 30, 2021, respectively. There were no significant deferrals of rent over a specified time period offered to its commercial tenants for the six and three months ended April 30, 2022 and 2021. FREIT currently remains in active discussions and negotiations with these impacted retail tenants. For the six months ended April 30, 2022, we have experienced a positive cash flow from operations with cash provided by operations of approximately $2.9 million. This could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of April 30, 2022 of approximately $95.7 million coupled with a $13 million available line of credit (available through October 31, 2023, see Note 9) and the additional $7.5 million in funds available to be drawn upon on the Boulders loan (See Note 9 for additional details). This cash and available cash will provide us with sufficient liquidity for at least the next twelve months from the filing of this quarterly report on Form 10-Q including, partial or full payment of the Wayne PSC loan should we be unable to resolve the Wayne PSC covenant non-compliance and the bank exercises its remedies under the loan agreement, and after giving consideration to the dividends we may need to distribute over this period to maintain our status as a REIT. The extent of the effects of COVID-19 on our business, results of operations, cash flows, value of our real estate assets and growth prospects is highly uncertain and will ultimately depend on future developments, none of which can be predicted with any certainty.

COVID-19 Pandemic

6 Months Ended

Apr. 30, 2022

Note 16 – COVID-19 Pandemic:

The international spread of COVID-19 was declared a global pandemic by the World Health Organization on March 11, 2020. Beginning in March 2020 and throughout most of 2020, many states in the U.S., including New Jersey, New York and Maryland, where our properties were located, implemented stay-at-home and shut down orders for all "non-essential" business and activity in an aggressive effort to mitigate the spread of COVID-19. Over the past year, vaccinations for the COVID-19 virus were widely distributed among the general U.S. population which resulted in loosened restrictions previously mandated on our tenants identified as nonessential. However, the potential emergence of vaccine-resistant variants of COVID-19 could trigger restrictions to be put back in place. Such restrictions may include mandatory business shut-downs, reduced business operations and social distancing requirements. As the impact of the pandemic evolves, it continues to cause uncertainty and volatility in the financial markets. The COVID-19 pandemic and the actions taken by individuals, businesses and government authorities to reduce its spread have caused substantial lost business revenue, changes in consumer behavior and large reductions in liquidity and fair value of many assets.

Despite the COVID-19 pandemic and preventive measures taken to mitigate the spread, our residential properties have continued to generate cash flow. At our commercial properties, with the exception of grocery stores and other "essential" businesses, many of our retail tenants were adversely affected by the previously mandated shut downs and the continued lingering impact to consumer sentiment and preferences for safety amid the reemergence of other COVID-19 variants. The Company continues to closely monitor changes in the collectability assessment of its tenant receivables. For the six and three months ended April 30, 2022, rental revenue deemed uncollectible of approximately $0.4 million and $0.3 million (with a consolidated impact to FREIT of approximately $0.2 million and $0.2 million), respectively, was classified as a reduction in rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. For the six and three months ended April 30, 2021, rental revenue deemed uncollectible of approximately $0.9 million and $0.3 million (with a consolidated impact to FREIT of approximately $0.6 million and $0.2 million), respectively, was classified as a reduction in rental revenue based on our assessment of the probability of collecting substantially all of the remaining rents for certain tenants. During the period beginning March 2020 through October 31, 2021, FREIT has applied, net of amounts subsequently paid back by tenants, an aggregate of approximately $397,000 of security deposits from its commercial tenants to outstanding receivables due. For the six and three months ended April 30, 2022, there were no security deposits from its commercial tenants applied to outstanding receivables due. On a case by case basis, FREIT has offered rent abatements totaling approximately $9,000 and $0 (with a consolidated impact to FREIT of approximately $9,000 and $0) for the six and three months ended April 30, 2022, respectively, and $101,000 and $51,000 (with a consolidated impact to FREIT of approximately $71,000 and $40,000) for the six and three months ended April 30, 2021, respectively. There were no significant deferrals of rent over a specified time period offered to its commercial tenants for the six and three months ended April 30, 2022 and 2021. FREIT currently remains in active discussions and negotiations with these impacted retail tenants.

For the six months ended April 30, 2022, we have experienced a positive cash flow from operations with cash provided by operations of approximately $2.9 million. This could change based on the duration of the pandemic, which is uncertain. We believe that our cash balance as of April 30, 2022 of approximately $95.7 million coupled with a $13 million available line of credit (available through October 31, 2023, see Note 9) and the additional $7.5 million in funds available to be drawn upon on the Boulders loan (See Note 9 for additional details). This cash and available cash will provide us with sufficient liquidity for at least the next twelve months from the filing of this quarterly report on Form 10-Q including, partial or full payment of the Wayne PSC loan should we be unable to resolve the Wayne PSC covenant non-compliance and the bank exercises its remedies under the loan agreement, and after giving consideration to the dividends we may need to distribute over this period to maintain our status as a REIT.

The extent of the effects of COVID-19 on our business, results of operations, cash flows, value of our real estate assets and growth prospects is highly uncertain and will ultimately depend on future developments, none of which can be predicted with any certainty.