Attached files
| file | filename |
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| 8-K - 8-K - FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY | form8k-128474_freit.htm |
Exhibit 99.1
HACKENSACK, NJ, March 12, 2013 – First Real Estate Investment Trust of New Jersey (“FREIT”) reported its operating results for the three-month period ended January 31, 2013. The results of operations as presented in this earnings release are unaudited, and are not necessarily indicative of future operating results.
| FINANCIAL HIGHLIGHTS | Three Months Ended January 31, | |
| 2013 | 2012 | |
| * Net Income Per Share-Basic: | $0.21 | $0.17 |
| * Dividends Per Share: | $0.30 | $0.30 |
| * FFO Per Share-Basic: | $0.33 | $0.39 |
| * FFO Payout: | 90.9% | 76.9% |
| * Average Residential Occupancy: | 92.7% | 95.1% |
| * Average Commercial Occupancy: | 81.4% | 85.9% |
RESULTS OF OPERATIONS
Table of Revenue & Net Income Components
The table below presents the revenue and net income components that impacted net income-common equity for the three months ended January 31, 2013 and 2012:
| Three Months Ended January 31, | ||||||||||||
| 2013 | 2012 | Change | ||||||||||
| (in thousands, except per share) | ||||||||||||
| Revenues: | ||||||||||||
| Commercial properties | $ | 5,800 | $ | 6,094 | $ | (294 | ) | |||||
| Residential properties | 4,659 | 4,683 | (24 | ) | ||||||||
| Total real estate revenues | 10,459 | 10,777 | (318 | ) | ||||||||
| Operating Expenses: | ||||||||||||
| Commercial properties | 2,226 | 2,525 | (299 | ) | ||||||||
| Residential properties | 2,334 | 2,101 | 233 | |||||||||
| General and administrative | 423 | 369 | 54 | |||||||||
| Depreciation | 1,513 | 1,522 | (9 | ) | ||||||||
| Investment income | (50 | ) | (24 | ) | (26 | ) | ||||||
| Financing costs | 3,019 | 2,815 | 204 | |||||||||
| Net income attributable to noncontrolling interests in subsidiaries | (229 | ) | (369 | ) | 140 | |||||||
| Income from operations | 765 | 1,100 | (335 | ) | ||||||||
| Income from discontinued operations | 706 | 93 | 613 | |||||||||
| Net income attributable to common equity | $ | 1,471 | $ | 1,193 | $ | 278 | ||||||
| Earnings per share - basic: | ||||||||||||
| Income from operations | $ | 0.11 | $ | 0.16 | $ | (0.05 | ) | |||||
| Discontinued operations | 0.10 | 0.01 | 0.09 | |||||||||
| Net income attributable to common equity | $ | 0.21 | $ | 0.17 | $ | 0.04 | ||||||
| Weighted average shares outstanding | 6,942 | 6,942 | ||||||||||
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First Quarter Results
Real Estate revenue for the three months ended January 31, 2013 (“Current Quarter”) decreased 3.0% to $10,459,000 compared to $10,777,000 for the three months ended January 31, 2012 (“Prior Year’s Quarter”). Income from continuing operations (net of income attributable to noncontrolling interests) for the Current Quarter was $765,000 ($0.11 per share basic), compared to $1,100,000 ($0.16 per share basic) for the Prior Year’s Quarter. Net income attributable to common equity (“net income-common equity”) for the Current Quarter was $1,471,000 ($0.21 per share basic), compared to $1,193,000 ($0.17 per share basic) for the Prior Year’s Quarter.
SEGMENT INFORMATION
The following table sets forth comparative net operating income ("NOI") data for FREIT’s real estate segments and reconciles the NOI to consolidated net income-common equity for the Current Quarter, as compared to the Prior Year’s Quarter:
| Commercial | Residential | Combined | ||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||
| January 31, | Increase (Decrease) | January 31, | Increase (Decrease) | January 31, | ||||||||||||||||||||||||||||||||||||
| 2013 | 2012 | $ | % | 2013 | 2012 | $ | % | 2013 | 2012 | |||||||||||||||||||||||||||||||
| (In thousands) | (In thousands) | (In thousands) | ||||||||||||||||||||||||||||||||||||||
| Rental income | $ | 4,430 | $ | 4,590 | $ | (160 | ) | -3.5% | $ | 4,592 | $ | 4,614 | $ | (22 | ) | -0.5% | $ | 9,022 | $ | 9,204 | ||||||||||||||||||||
| Reimbursements | 1,392 | 1,457 | (65 | ) | -4.5% | — | — | — | 1,392 | 1,457 | ||||||||||||||||||||||||||||||
| Other | 40 | 45 | (5 | ) | -11.1% | 67 | 69 | (2 | ) | -2.9% | 107 | 114 | ||||||||||||||||||||||||||||
| Total revenue | 5,862 | 6,092 | (230 | ) | -3.8% | 4,659 | 4,683 | (24 | ) | -0.5% | 10,521 | 10,775 | ||||||||||||||||||||||||||||
| Operating expenses | 2,226 | 2,525 | (299 | ) | -11.8% | 2,334 | 2,101 | 233 | 11.1% | 4,560 | 4,626 | |||||||||||||||||||||||||||||
| Net operating income | $ | 3,636 | $ | 3,567 | $ | 69 | 1.9% | $ | 2,325 | $ | 2,582 | $ | (257 | ) | -10.0% | 5,961 | 6,149 | |||||||||||||||||||||||
| Average | ||||||||||||||||||||||||||||||||||||||||
| Occupancy % | 81.4% | 85.9% | -4.5% | 92.7% | 95.1% | -2.4% | ||||||||||||||||||||||||||||||||||
| Reconciliation to consolidated net income: | |||||||||
| Deferred rents - straight lining | (56 | ) | (7 | ) | |||||
| Amortization of acquired leases | (6 | ) | 9 | ||||||
| Investment income | 50 | 24 | |||||||
| General and administrative expenses | (423 | ) | (369 | ) | |||||
| Depreciation | (1,513 | ) | (1,522 | ) | |||||
| Financing costs | (3,019 | ) | (2,815 | ) | |||||
| Income from continuing operations | 994 | 1,469 | |||||||
| Income from discontinued operations | 706 | 93 | |||||||
| Net income | 1,700 | 1,562 | |||||||
| Net income attributable to noncontrolling interests | (229 | ) | (369 | ) | |||||
| Net income attributable to common equity | $ | 1,471 | $ | 1,193 |
NOI is based on operating revenue and expenses directly associated with the operations of the real estate properties, but excludes deferred rents (straight lining), lease amortization, depreciation, financing costs and other items. FREIT assesses and measures segment operating results based on NOI. NOI is not a measure of operating results or cash flow as measured by generally accepted accounting principles, and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity.
DIVIDENDS
The 1st quarter dividend of $0.30 per share will be paid on March 15, 2013 to shareholders of record on March 1, 2013.
The statements in this report that relate to future earnings or performance are forward-looking. Actual results might differ materially and be adversely affected by such factors as longer than anticipated lease-up periods or the inability of tenants to pay increased rents. Additional information about these factors is contained in the Trust’s filings with the SEC including the Trust’s most recently filed report on Form 10-K and Form 10-Q to be filed covering this period.
First Real Estate Investment Trust of New Jersey is a publicly traded (over-the-counter – symbol FREVS) REIT organized in 1961. It has approximately $260 million (historical cost basis) of assets. Its portfolio of residential and commercial properties extends from Eastern L.I. to Maryland, with the largest concentration in Northern New Jersey.
For additional information contact Shareholder Relations at (201) 488-6400
Visit us on the web: www.freitnj.com
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