Investment in Tenancy-In-Common

9 Months Ended

Jul. 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 TIC was approximately $17,025,000 and $16,922,000 as of July 31, 2026 and October 31, 2025, respectively. For the nine and three months ended July 31, 2026, FREIT recognized a loss on investment in TIC of approximately $106,000 and $37,000, respectively, in the accompanying condensed consolidated statements of income. For the nine and three months ended July 31, 2025, FREIT recognized a loss on investment in TIC of approximately $13,000 and $36,000, 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 $326,000 and $130,000 for the nine and three months ended July 31, 2026, respectively, and $324,000 and $108,000 for the nine and three months ended July 31, 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. Such commissions were charged to operations and amounted to approximately $22,000 for both the nine and three months ended July 31, 2026 and $62,000 for both the nine and three months ended July 31, 2025.

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

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

Real estate, net		$	71,023			$	71,928
Cash and cash equivalents			576				335
Tenants' security accounts			623				563
Receivables and other assets			643				575
Total assets		$	72,865			$	73,401

Mortgages payable, net of unamortized debt issuance costs		$	45,258			$	46,173
Accounts payable and accrued expenses			710				480
Reimbursement due to FREIT			209				—
Tenants' security deposits			638				562
Deferred revenue			180				152
Equity			25,870				26,034
Total liabilities & equity		$	72,865			$	73,401

FREIT's investment in TIC (65% interest)		$	16,816			$	16,922
Reimbursement due to FREIT			209				—
FREIT's net investment in TIC		$	17,025			$	16,922

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

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

Revenue		$	6,793			$	6,537			$	2,323			$	2,168
Operating expenses			4,044				3,770				1,410				1,292
Depreciation			1,815				1,691				607				565
Operating income			934				1,076				306				311

Interest income			20				48				7				12
Interest expense including amortizationof deferred financing costs			(1,117	)			(1,144	)			(370	)			(379	)

Net loss		$	(163	)		$	(20	)		$	(57	)		$	(56	)

FREIT's share of loss on investment in TIC (65% interest)		$	(106	)		$	(13	)		$	(37	)		$	(36	)