Frevs is a New Jersey-based real estate investment trust leveraging property acquisition and management to generate dividend income and capital growth for shareholders.
Investors may view FREVS as a value play given its positive operating profit of $15.2M and healthy retained earnings structure despite a deficit, offering potential for margin expansion through operational efficiencies. The strong liquidity position with $17.9M in cash equivalents provides a defensive moat against market volatility and enables opportunistic buybacks or acquisitions when valuations dip. Consistent gross profit margins of nearly 100% indicate low direct cost structures typical of asset-heavy REITs that rely on leverage to amplify returns.
The significant income tax expense of $12.0M relative to net profit raises concerns about effective tax rates and potential erosion of distributable earnings in the current fiscal year. High interest expense of $7.3M combined with substantial other non-operating losses of -$8.5M suggests vulnerability to rising borrowing costs that could compress profitability further. The decline in revenue from $31.3M in 2022 to recent levels, coupled with volatile net income swinging between $69.2M and negative figures, indicates instability in core earnings quality.
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY, INC. (FREVS) operates as a real estate investment trust focused on acquiring, developing, and managing income-generating properties primarily within New Jersey and surrounding markets. The company generates revenue through rental income, property management fees, and capital appreciation strategies aimed at delivering consistent cash flow to shareholders. Key financial metrics highlight a 2025 net profit of $3.1M against total assets of $149.9M, reflecting its balance sheet position in the regional REIT sector.
Management successfully navigated a challenging revenue environment, maintaining revenue near $29.3M in 2025 after declines in prior years, while reporting positive net income of $3.1M. The company utilized significant cash flow from investing activities of $11.5M and proceeds from marketable securities of $60.1M to bolster liquidity, resulting in an ending cash balance of $21.5M. However, substantial cash outflows from financing activities totaling $15.5M alongside other financing cash flows of -$22.7M suggest ongoing debt repayment or refinancing obligations.
The regional real estate investment trust industry serves as a vehicle for institutional and retail investors seeking exposure to specific geographic property markets without direct management overhead. Success in this sector depends heavily on local economic growth, population migration trends, and the ability to maintain occupancy rates amidst interest rate sensitivity. Industry participants face ongoing pressure from commercial vacancy rates and the need to adapt properties for changing tenant preferences.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $31.3M | $28.3M | $28.7M | $29.3M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $31.3M | $28.3M | $28.7M | $29.3M |
| Operating Expenses | — | — | $13.6M | $14.2M |
| Operating Income | — | — | $15.1M | $15.2M |
| G&A | — | — | $4.4M | $2.9M |
| Stock-Based Comp | $1.2M | $11.0K | $1.0K | — |
| Depreciation | $4.0M | $2.9M | $3.0M | $3.0M |
| Other OpEx | — | — | $9.2M | $11.3M |
| Non-Operating Income | $0 | $0 | $0 | $0 |
| Interest Expense | $8.1M | $7.7M | $7.3M | $7.3M |
| Interest Income | $358.0K | $1.0M | $1.6M | $1.4M |
| Pre-Tax Income | — | — | $15.1M | $15.2M |
| Income Tax | — | — | $42.9M | $12.0M |
| Continuing Ops | $22.9M | $-46.9M | $-27.9M | $3.1M |
| Discontinued Ops | $46.3M | $46.3M | $44.8M | $0 |
| Net Income | $69.2M | $-575.0K | $16.9M | $3.1M |
| Minority Interest | $23.3M | $-1.3M | $1.1M | $-363.0K |
| Net to Common | $46.0M | $760.0K | $15.9M | $3.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Cash & Equivalents | $49.6M | $13.2M | $14.9M | $17.9M |
| Accounts Receivable | — | — | $498.0K | $201.0K |
| Total Assets | $178.6M | $159.1M | $162.3M | $149.9M |
| Total Liabilities | $153.9M | $140.6M | $136.1M | $124.2M |
| Shareholders' Equity | $24.7M | $18.5M | $26.2M | $25.7M |
| Paid-In Capital | $30.6M | $32.1M | $32.3M | $32.4M |
| Retained Earnings | $-6.2M | $-9.0M | $541.0K | $1.4M |
| AOCI | $1.4M | $1.3M | $494.0K | $211.0K |
| Total L&E | $178.6M | $159.1M | $162.3M | $149.9M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $69.2M | $-575.0K | $16.9M | $3.1M |
| Non-Cash Adjustments | $-58.2M | $2.9M | $3.5M | $2.9M |
| Working Capital Changes | $-3.8M | $334.0K | $-289.0K | $156.0K |
| Cash from Operations | $7.3M | $2.7M | $20.2M | $6.2M |
| Cash from Investing | $249.7M | $-25.3M | $-6.1M | $11.5M |
| Dividends Paid | $53.5M | $13.7M | $1.5M | $7.2M |
| Cash from Financing | $-237.6M | $-17.5M | $-13.2M | $-15.5M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $19.5M | $-40.1M | $867.0K | $2.3M |
| Beginning Cash | $39.0M | $58.5M | $18.4M | $19.2M |
| Ending Cash | $58.5M | $18.4M | $19.2M | $21.5M |
Multifamily residential housing complexes providing long-term rental units; Commercial office and retail properties leased to tenants for steady operating cash flow; Property development and land acquisition projects aimed at expansion; Asset management services offering oversight and leasing support for external property portfolios.
High sensitivity to interest rate fluctuations impacting refinancing costs on $124.2M in total liabilities; Potential vacancy risks and rent concessions in a competitive regional multifamily market; Regulatory changes affecting real estate tax structures or zoning laws in New Jersey could erode margins; Concentration risk due to asset location dependence on the New Jersey economy.
Deep local market expertise in New Jersey's real estate landscape allows for superior tenant retention and strategic acquisitions; Strong balance sheet with $21.5M in ending cash provides flexibility for opportunistic investments during market downturns; Consistent dividend distribution history supported by positive operating cash flow of $6.2M.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.