Investment in Tenancy-In-Common

3 Months Ended

Jan. 31, 2026

Investment in Tenancy-in-Common [Abstract]

Investment in Tenancy-In-common

Note 5 – Investment in tenancy-in-common:

On February 28, 2020, FREIT reorganized S and A Commercial Associates Limited Partnership (“S&A”) from a partnership into a tenancy-in-common form of ownership (“TIC”). Prior to this reorganization, FREIT owned a 65% partnership interest in S&A, which owned 100% of the Pierre Towers property located in Hackensack, New Jersey through its 100% interest in Pierre Towers, LLC. Pursuant to the TIC agreement, FREIT has a 65% undivided interest in the Pierre Towers property. FREIT does not have a controlling interest as the TIC is under joint control. Based on the guidance of ASC 810, “Consolidation”, FREIT’s investment in the TIC is accounted for under the equity method of accounting.

FREIT’s investment in the TIC was approximately $16.9 million at both January 31, 2026 and October 31, 2025. For the three months ended January 31, 2026 and 2025, FREIT recognized a loss on investment in TIC of approximately $1,000 and income of approximately $9,000, respectively, in the accompanying condensed consolidated statements of income.

Hekemian & Co., Inc. (“Hekemian & Co.”) manages the Pierre Towers property pursuant to a management agreement between the owners of the TIC and Hekemian & Co. dated as of February 28, 2020, which renews for successive one (1) year terms unless either party gives written notice of termination to the other party at least sixty (60) days prior to the end of the then-current term. The management agreement expires on February 28, 2027.

The management agreement requires the payment of management fees equal to 5% of rents collected. Management fees, charged to operations, were approximately $107,000 and $122,000 for the three months ended January 31, 2026 and 2025, respectively. The Pierre Towers property also uses the resources of the Hekemian & Co. insurance department to secure various insurance coverages for its property. Hekemian & Co. is paid a commission for these services. There were no such commissions charged to operations for the three months ended January 31, 2026 and 2025.

The following table summarizes the balance sheets of the Pierre Towers property as of January 31, 2026 and October 31, 2025, accounted for by the equity method:

		January 31,				October 31,
		2026				2025
		(In Thousands of Dollars)

Real estate, net		$	71,654			$	71,928
Cash and cash equivalents			464				335
Tenants' security accounts			593				563
Receivables and other assets			486				575
Total assets		$	73,197			$	73,401

Mortgages payable, net of unamortized debt issuance costs		$	45,870			$	46,173
Accounts payable and accrued expenses			581				480
Tenants' security deposits			590				562
Deferred revenue			124				152
Equity			26,032				26,034
Total liabilities & equity		$	73,197			$	73,401

FREIT's investment in TIC (65% interest)		$	16,921			$	16,922

The following table summarizes the statements of operations of the Pierre Towers property for the three months ended January 31, 2026 and 2025, accounted for by the equity method:

		Three Months Ended January 31,
		2026				2025
		(In Thousands of Dollars)

Revenue		$	2,217			$	2,177
Operating expenses			1,248				1,237
Depreciation			603				562
Operating income			366				378

Interest income			6				19
Interest expense including amortization of deferred financing costs			(374	)			(383	)

Net (loss) income		$	(2	)		$	14

FREIT's share of (loss) income on investment in TIC (65% interest)		$	(1	)		$	9