First Real Estate Investment Trust of New Jersey (FREVS) released its financial results for the fiscal quarter e nded July 31, 2023. The company reported a net loss of $846,000 for the quarter, reflecting an improvement compared to the same period in the previous year when it reported a net income of $1,814,000. Total revenue for the quarter was $7.3 million, a slight increase from the previous year's $6.9 million.
In the fiscal quarter ended July 31, 2023, FREVS reported a net loss of $846,000. This represents a significant change from the same period in 2022 when the company reported a net income of $1,814,000. The decrease in net income can be attributed to various factors, including changes in property values and expenses related to the company's operations.
Revenue
Total revenue for the fiscal quarter ended July 31, 2023, amounted to $7.3 million. This is a modest increase compared to the revenue of $6.9 million reported for the same period in 2022. The revenue is categorized into two main segments:
Commercial Properties
- Revenue for commercial properties in Q3 2023 was $2.26 million, showing an increase of $45,000 from the previous year's Q3 revenue of $2.215 million.
Residential Properties
- Residential property revenue for Q3 2023 reached $5.036 million, up by $292,000 from Q3 2022's revenue of $4.744 million.
Operating Expenses
FREVS incurred operating expenses amounting to $5.786 million in the fiscal quarter ended July 31, 2023. This reflects an increase from the previous year's Q3 operating expenses of $4.962 million. The rise in operating expenses is primarily due to higher real estate operating expenses, general and administrative expenses, and depreciation.
Financing Costs
The company reported financing costs of $(2.031) million for Q3 2023, compared to $(1.774) million in Q3 2022. The increase in financing costs is attributed to changes in interest rates and the company's debt structure.
Investment Income
FREVS generated investment income of $275,000 in the third quarter of 2023, a significant increase from the $119,000 reported in the same period last year. This increase may be attributed to changes in the company's investment portfolio and income-generating assets.
Net (Loss) Gain on Investments
The company reported a net (loss) gain on investments, including tenancy-in-common and property sales, during the quarter. This included a net (loss) gain on the sale of Maryland properties, which amounted to $(557,000), and a net realized gain on the Wayne PSC interest rate swap contract termination of $1,415,000.
Earnings per Share
The (loss) earnings per share (EPS) for FREVS in Q3 2023 were as follows:
- Basic EPS: $(0.06)
- Diluted EPS: $(0.06)
These figures indicate a decrease in EPS compared to the same period in 2022. The decline in EPS can be attributed to the net loss reported in the current quarter.
First Real Estate Investment Trust of New Jersey (FREVS) faced a challenging quarter, reporting a net loss of $846,000. While residential property revenues showed growth, the company incurred higher operating expenses and reported losses on certain investments. The impact of these financial results on the company's long-term strategy and outlook will be closely monitored by investors and stakeholders.