Management Agreement, Fees and Transactions with Related Party |
6 Months Ended |
|---|---|
Apr. 30, 2026 | |
| Management Agreement, Fees and Transactions with Related Party [Abstract] | |
| Management agreement, fees and transactions with related party | Note 6 - Management agreement, fees and transactions with related party:
Hekemian & Co. currently manages all of the properties owned by FREIT and its affiliates. The management agreement between FREIT and Hekemian & Co. dated as of November 1, 2001 (“Management Agreement”) will expire on October 31, 2027 and is automatically renewed for successive periods of two years unless either party gives not less than six (6) months prior notice of non-renewal. See Note 13 for additional details on the Third Amendment to the Management Agreement entered into on May 13, 2026).
The Management Agreement requires the payment of management fees equal to 4% to 5% of rents collected. Such fees charged to operations were approximately $662,000 and $678,000 for the six months ended April 30, 2026 and 2025, respectively, and $317,000 and $310,000 for three months ended April 30, 2026 and 2025, respectively. In addition, the Management Agreement provides for the payment to Hekemian & Co. of leasing commissions, as well as the reimbursement of certain operating expenses, such as payroll and insurance costs, incurred on behalf of FREIT. Such commissions and reimbursements amounted to approximately $236,000 and $202,000 for the six months ended April 30, 2026 and 2025, respectively, and $106,000 and $109,000 for the three months ended April 30, 2026 and 2025, respectively. FREIT also uses the resources of the Hekemian & Co. insurance department to secure various insurance coverages for its properties and subsidiaries. Hekemian & Co. is paid a commission for these services. Such commissions charged to operations were approximately $37,000 and $13,000 for the six months ended April 30, 2026 and 2025, respectively, and $3,000 and $4,000 for the three months ended April 30, 2026 and 2025, respectively.
From time to time, FREIT engages Hekemian & Co., or certain affiliates of Hekemian & Co., to provide additional services, such as consulting services related to development, property sales and financing activities of FREIT. Separate fee arrangements are negotiated between Hekemian & Co. and FREIT with respect to such additional services. Such fees incurred were approximately $0 and $35,000 for the six months ended April 30, 2026 and 2025, respectively. There were such fees incurred for the three months ended April 30, 2026 and 2025, respectively. Fees incurred during the six months ended April 30, 2025 related to a commission to Hekemian & Co. for the modification and extension of the loan on the Regency which was included in the unamortized debt issuance costs in the accompanying condensed consolidated balance sheets as of April 30, 2026 and October 31, 2025.
Robert S. Hekemian, Jr., Chief Executive Officer, President and a Director of FREIT, is the Chief Executive Officer of Hekemian & Co. David B. Hekemian, a Director of FREIT, is the President of Hekemian & Co. Allan Tubin, Chief Financial Officer and Treasurer of FREIT, is the Chief Financial Officer of Hekemian & Co. Director fee expense and/or executive compensation (including stock awards – See Note 10 for additional details) incurred by FREIT for the six months ended April 30, 2026 and 2025 was approximately $350,000 and $350,000, respectively, for Robert S. Hekemian, Jr., $22,000 and $22,000, respectively, for Allan Tubin and $50,000 and $50,000, respectively, for David B. Hekemian. Director fee expense and/or executive compensation (including stock awards) incurred by FREIT for the three months ended April 30, 2026 and 2025 was approximately $185,000 and $185,000, respectively, for Robert S. Hekemian, Jr., $11,000 and $11,000, respectively, for Allan Tubin and $35,000 and $35,000, respectively, for David B. Hekemian. Such costs are included within operating expenses on the accompanying condensed consolidated statements of income. |