Executive Summary

Q2 2025 delivered GAAP EPS of $0.12 and AFFO/share of $0.23, with Net Income up 67.7% YoY to $0.894M on lower G&A; total real estate revenues were $7.258M, down 0.2% YoY due to commercial softness offset by residential strength .
Residential fundamentals remained robust: occupancy rose to 97.1% (vs. 96.5% YoY), base rent increases drove segment revenue higher; commercial occupancy slipped to 48.2% (vs. 50.7% YoY) with rent reductions tied to TJ Maxx’s co‑tenancy clause after Kmart’s lease termination .
Capital structure actions are a near-term cash flow catalyst: FREIT paid down $5.7M on the Westwood Plaza loan, extended maturity to May 1, 2026 at 8.5% fixed, reduced escrow by ~$705k, and expects ~$705k annual debt service savings .
Dividend maintained at $0.08 for Q2; Board will continue to evaluate quarterly (same as Q1 2025) .
No earnings call transcript was filed for Q2 2025; Street consensus (S&P Global) coverage for EPS and revenue appears unavailable, limiting estimate comparison visibility .

What Went Well and What Went Wrong

Residential segment resilience: segment revenue rose ~$220k YoY, driven by broad base rent increases and higher occupancy to 97.1% .
Expense control: G&A fell ~$224k YoY in Q2, a key driver of the $361k YoY increase in net income attributable to common equity .
Balance sheet/financing execution: $5.7M principal paydown and one-year extension on Westwood Plaza loan at a fixed 8.5% rate yields ~$705k annual debt service savings and a ~$705k escrow refund, improving liquidity .

Commercial segment drag: revenue fell ~$237k YoY, affected by TJ Maxx invoking a one-year co‑tenancy rent reduction after Kmart’s lease termination and lower average occupancy (48.2% vs. 50.7% YoY) .
Portfolio mix sensitivity: overall revenues were essentially flat (-0.2% YoY), reflecting commercial headwinds outweighing residential strength .
Continued exposure to legacy tenant changes: prior Kmart vacancy at Westwood Plaza continued to weigh on commercial, consistent with pressures noted across recent quarters .

Metric	Q4 2024	Q1 2025	Q2 2025
Total Real Estate Revenues ($USD)	$7,257,000	$7,269,000	$7,258,000
Net Income attributable to common equity ($USD)	$1,040,000	$614,000	$894,000
GAAP EPS (Basic & Diluted) ($)	$0.15	$0.08	$0.12
Net Income Margin (%)	14.3% (calc)	8.5% (calc)	12.3% (calc)

Notes: Net Income Margin is calculated from cited revenue and net income values.

Segment Revenue ($USD)	Q4 2024	Q1 2025	Q2 2025
Commercial	$1,944,000	$1,906,000	$1,818,000
Residential	$5,313,000	$5,363,000	$5,440,000
Total	$7,257,000	$7,269,000	$7,258,000

Segment NOI ($USD)	Q4 2024	Q1 2025	Q2 2025
Commercial	$842,000	$567,000	$563,000
Residential	$3,067,000	$2,994,000	$3,258,000

KPI	Q4 2024	Q1 2025	Q2 2025
Residential Occupancy (%)	95.9%	96.8%	97.1%
Commercial Occupancy (%)	51.0%	48.2%	48.2%
AFFO per share ($)	$0.05	$0.16	$0.23
FFO per share ($)	$0.14	$0.17	$0.24
Dividend per share ($)	$0.70 (incl. $0.58 special)	$0.08	$0.08

Metric	Period	Previous Guidance	Current Guidance	Change
Dividend per share	Q2 2025	$0.08 (Q1 2025 actual dividend)	$0.08	Maintained
Revenue	Q2 2025	None provided	None provided	Maintained (no guidance)
Margins	Q2 2025	None provided	None provided	Maintained (no guidance)
OpEx / G&A	Q2 2025	None provided	None provided	Maintained (no guidance)
OI&E / Financing	Q2 2025	N/A	Financing update: Westwood Plaza loan extended to May 1, 2026; 8.5% fixed; ~$705k annual debt service savings	New financing terms (not formal guidance)
Tax rate	Q2 2025	None provided	None provided	Maintained (no guidance)
Segment-specific	Q2 2025	None provided	None provided	Maintained (no guidance)

No Q2 2025 earnings call transcript was filed; themes are derived from press releases and 8‑K disclosures.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Commercial tenant dynamics	Kmart vacated Westwood Plaza in Oct 2023; commercial revenue down YoY; occupancy 51.0%	TJ Maxx invoked one-year co‑tenancy rent reduction in Mar 2024; commercial occupancy 48.2%	Continued commercial pressure
Residential fundamentals	Occupancy stable at 95.9%; base rent increases; strong NOI	Occupancy increased to 97.1%; segment revenue +$220k YoY	Improving/stable residential
Financing/capital structure	Provident Bank extension on Middletown, NY apartment mortgage to Dec 15, 2027 at 6.05%	Westwood Plaza loan paydown $5.7M, one-year extension to May 1, 2026 at 8.5%; ~$705k annual savings	Proactive refinancing and deleveraging
Dividend policy	Q4 included $0.58 special; total FY24 dividends $0.85	Regular quarterly dividend maintained at $0.08	Normalized quarterly dividend
Litigation/resolution	FY24 benefited from litigation settlement, net of fees (~$15.7M)	No new items in Q2	Settled; no new impact

“The change in Net Income was primarily driven by a decrease in general and administrative expenses (“G&A”) of approximately $224,000…” (Q2 press release) .
Financing update detail: “paid down this loan by approximately $5.7 million… maturity date… extended for one year to May 1, 2026… fixed interest rate of 8.5%… annual debt service savings of approximately $705,000… Escrow reduced… refund… ~$705,000” .
Dividend policy: “The Board of Directors… declared a second quarter dividend of $0.08 per share… will continue to evaluate the dividend on a quarterly basis.” .
Prior context (Q4 2024): CEO emphasized the favorable litigation settlement enabling FREIT to move forward; noted increasing cash flow from residential properties .

No earnings call transcript was filed for Q2 2025; no Q&A content available .

S&P Global consensus coverage appears unavailable for Q2 2025 EPS and revenue; we did not find Street estimates to compare against. Values retrieved from S&P Global.*
Actual revenue for Q2 2025: $7.258M (company-reported) . EPS for Q2 2025: $0.12 (company-reported) .
Implication: Absent formal consensus, buyside should benchmark intrinsic trends (residential strength, commercial headwinds, G&A reductions) rather than “beat/miss” dynamics this quarter.

Metric	Q2 2025 Consensus	Q2 2025 Actual
Revenue ($USD)	N/A*	$7,258,000
GAAP EPS ($)	N/A*	$0.12

Note: Values marked with * retrieved from S&P Global (consensus unavailable).

Residential portfolio is the core earnings driver; occupancy and rent growth lifted segment revenue and NOI, supporting AFFO/share expansion QoQ and YoY .
Commercial exposure remains a headwind (co‑tenancy rent concessions, lower occupancy), tempering total revenue growth; watch the ramp at Westwood Plaza and tenant mix to gauge recovery .
Debt paydown and loan extension should boost annual cash flow by ~$705k and improve flexibility; this supports dividend sustainability and potential future capital actions .
Expense discipline is material: G&A reductions meaningfully improved YoY profitability; continued control could further support AFFO conversion .
With limited sell-side coverage and no call transcript, price discovery may hinge on reported KPIs, financing progress, and observable leasing outcomes rather than consensus beats/misses .
Near-term trading: stock may respond to evidence of commercial stabilization and any incremental leasing wins; medium-term thesis centers on steady residential cash flows, selective deleveraging, and normalized quarterly dividends .