FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY (FREVS)·Q1 2025 Earnings Summary

Executive Summary

• Q1 FY2025 revenue increased 3.9% YoY to $7.269M, with GAAP EPS at $0.08 versus $(0.07) a year ago and AFFO/share at $0.16 versus $0.04; growth was driven by higher residential rents and occupancy, and materially lower G&A versus last year .
• Sequentially, revenue was essentially flat versus Q4 FY2024 ($7.257M) while EPS declined to $0.08 from $0.15, as G&A rose sequentially and commercial NOI softened from Q4 levels .
• Residential fundamentals remained solid (average occupancy 96.8%), while commercial occupancy stayed weak (48.2%), reflecting ongoing headwinds at certain retail assets .
• Balance sheet actions: the Middletown, NY multifamily mortgage was extended three years at a fixed 6.05% (matures Dec 15, 2027); Westwood Plaza’s loan received a 90-day extension to May 1, 2025, with management expecting a further extension (no assurance) .
• No Wall Street consensus from S&P Global was available at time of analysis; beat/miss versus estimates cannot be assessed (S&P Global consensus unavailable).

What Went Well and What Went Wrong

• What Went Well

  • Residential momentum: revenue +$316k YoY and NOI up to ~$2.994M on higher base rents and occupancy (96.8% vs 95.3% YoY) .
  • Cost discipline versus last year: G&A fell by ~$963k YoY primarily due to prior-year advisory and legal spend, supporting the swing to positive EPS .
  • Balance sheet progress: Middletown, NY mortgage extended three years at 6.05% fixed, smoothing the maturity ladder . “Management expects [Westwood Plaza’s] loan to be further extended, however … there can be no assurance” (emphasis added) .
  • CEO tone (prior quarter): “This settlement now allows FREIT to move forward toward its goals unimpeded… very pleased about the continuing increasing cash flow being generated by our residential properties.” .

• What Went Wrong

  • Commercial softness: commercial revenue decreased YoY and commercial NOI fell to ~$567k from ~$654k YoY; average commercial occupancy remained low at 48.2% .
  • Sequential earnings dip: GAAP EPS decreased to $0.08 from $0.15 in Q4, as G&A rose q/q to $845k from $667k and commercial NOI declined versus Q4 .
  • Refinancing risk: Westwood Plaza’s loan received only a 90-day extension to May 1, 2025 as of Q1; management “expects” further extension but provided no assurance .

Financial Results

Quarterly trend (USD, $000s except per-share; columns oldest → newest)

YoY snapshot (USD, $000s except per-share; Q1 FY2025 vs Q1 FY2024)

Segment breakdown

KPIs

Guidance Changes

Note: No quantitative guidance (revenue, margins, OpEx, etc.) was provided in the Q1 2025 release; Board reiterated quarterly evaluation of dividends .

Earnings Call Themes & Trends

Management Commentary

• “Management expects [the Westwood Plaza] loan to be further extended, however, until such time as a definitive agreement … is entered into, there can be no assurance this loan will be extended.”
• “This settlement now allows FREIT to move forward toward its goals unimpeded… [and we are] very pleased about the continuing increasing cash flow being generated by our residential properties.” — Robert Hekemian, Jr., CEO (Q4 FY2024 release)

Q&A Highlights

• The company did not publish an earnings call transcript for Q1 FY2025 in its SEC materials; the Q1 2025 Form 8‑K includes only the press release as Exhibit 99.1 . As such, Q&A highlights and any intra-quarter guidance clarifications are not available from primary sources.

Estimates Context

• Wall Street consensus (S&P Global) for Q1 FY2025 EPS and revenue was unavailable at the time of analysis due to data access limitations; therefore, we cannot assess beat/miss versus estimates (S&P Global consensus unavailable).
• Given the absence of consensus, near-term estimate revisions will likely focus on: (i) residential NOI durability, (ii) trajectory of commercial occupancy/NOI, and (iii) resolution of the Westwood Plaza refinancing beyond the short extension disclosed in Q1 .

Key Takeaways for Investors

• Residential portfolio is doing the heavy lifting: higher base rents and ~97% occupancy supported AFFO/share improvement YoY to $0.16, while GAAP EPS swung to $0.08 from $(0.07) .
• Commercial remains the pressure point: occupancy at 48.2% and NOI down to ~$567k suggest continued drag from prior anchor vacancy at Westwood Plaza .
• Sequential normalization: revenue was flat q/q, but EPS eased from $0.15 to $0.08 as G&A rose sequentially and commercial NOI moderated .
• Balance sheet watch item: Westwood Plaza refinancing risk persists; only a 90‑day extension was in place as of Q1 with no assurance of further extension, which could be a near-term catalyst upon resolution (positive if extended on reasonable terms, negative if delayed) .
• Dividend cadence normalized post-FY2024 special: $0.08 declared for Q1 versus $0.70 in Q4 (which included a $0.58 special) .
• Modeling implications: emphasize residential NOI resilience and lower YoY G&A, but haircut commercial assumptions until occupancy stabilizes; absent consensus, frame scenarios around commercial recovery pace and refinancing outcomes .
• Monitoring list for next quarter: Westwood Plaza loan extension terms, commercial leasing progress/occupancy, and any incremental cost actions to sustain margin normalization .

References:

• Q1 FY2025 8-K (Ex. 99.1 press release, operating details, segment NOI, financing updates)
• Q4 FY2024 8-K (Ex. 99.1 press release, FY context, CEO quote, segment data)
• Q3 FY2024 8-K (Ex. 99.1 press release, segment trends, litigation settlement timing)