FREIT (First Real Estate Investment Trust of New Jersey)

Organization and form

• FREIT is a Maryland corporation that completed a reincorporation from a New Jersey REIT on July 1, 2021. The reincorporation was effected by merging FREIT, Inc. with and into its wholly owned New Jersey non-REIT subsidiary; all assets and liabilities transferred to FREIT and shareholders received one newly issued FREIT share for each FREITNJ share held.
• FREIT’s stock trades on the over-the-counter market under the symbol FREVS.
• FREIT elects to be taxed as a real estate investment trust under the Internal Revenue Code and operates to qualify as a REIT.

Business model

• FREIT acquires, develops, constructs and holds real estate properties for long-term investment rather than for resale.
• Investments may be held directly, through joint ventures, or in tenancy-in-common structures, including arrangements with affiliates such as Hekemian & Co., Inc., FREIT’s managing agent.
• The company’s general policy is to hold properties for long-term income and capital appreciation, while retaining the flexibility to sell assets to raise capital or reallocate to higher-return opportunities.
• FREIT is highly leveraged and funds acquisitions and developments primarily with debt financing. Interest rate and refinancing risk are principal financial considerations.

Corporate and management structure

• Managing agent: Hekemian & Co., Inc. manages all FREIT properties and provides related services. FREIT may engage other agents for properties acquired after 2002.
• The management agreement with Hekemian & Co. was renewed for a two-year term through October 31, 2027. The agreement includes a termination fee if terminated without cause, and a higher termination fee if termination follows a merger or acquisition.
• Subsidiaries (direct or indirect) include:
  • Westwood Hills, LLC (FREIT owns 40%)
  • Wayne PSC, LLC (FREIT owns 40%)
  • FREIT Regency, LLC (100%)
  • Station Place on Monmouth, LLC (100%)
  • Berdan Court, LLC (100%)
  • Grande Rotunda, LLC (60%) — related to a property sold in December 2021

Portfolio snapshot (as of October 31, 2025)

• Real estate holdings:
  • Residential: six multi-family properties totaling 792 apartment units
  • Investment in TIC: 65% undivided TIC interest in the Pierre Towers property
  • Commercial: five properties totaling about 589,000 square feet of leasable space
  • Land: three parcels totaling approximately 7.37 acres
• Representative residential properties and unit counts:
  • Berdan Court, Wayne, NJ — 176 units
  • Regency Club, Middletown, NY — 132 units
  • Steuben Arms, River Edge, NJ — 100 units
  • Westwood Hills, Westwood, NJ — 210 units (FREIT owns a 40% interest via Westwood Hills, LLC)
  • Boulders, Rockaway, NJ — 129 units
  • Station Place on Monmouth, Red Bank, NJ — 45 units
• Selected commercial properties and details:
  • Glen Rock, NJ — 4,672 sq ft (no anchor tenant)
  • Franklin Crossing, Franklin Lakes, NJ — 87,659 sq ft (anchor: Stop & Shop)
  • Westwood Plaza, Westwood, NJ — 174,275 sq ft (anchor: TJ Maxx)
  • Preakness Center, Wayne, NJ — 322,142 sq ft (anchors: Stop & Shop; CVS; satellite tenants)
  • Rockaway, NJ — 1-acre land parcel leased as a land lease
• Occupancy:
  • Residential properties reported high occupancy: Berdan Court 95.9%, Regency Club 97.5%, Steuben Arms 97.3%, Westwood Hills 96.3%, Boulders 96.6%, Station Place 97.2%
  • Overall residential occupancy averaged 96.5% over the last three completed fiscal years
  • Commercial occupancy varied; Westwood Plaza experienced lower occupancy in some periods due to vacancy at portions of the center
• Leasable space and tenant concentration:
  • Commercial properties total approximately 589,000 sq ft of leasable space
  • Anchor/major tenants include Stop & Shop, TJ Maxx and CVS
  • Five anchor/major tenants account for about 63.9% of leased commercial space and roughly 49.3% of fixed commercial rents
• Revenue concentration (fiscal 2025):
  • Two properties accounted for more than 15% of consolidated revenue:
    • Westwood Hills: approximately 20.2%
    • Berdan Court: approximately 15.9%

Debt and financing

• Outstanding mortgage debt (as of October 31, 2025): approximately $121.3 million (non-recourse, fixed-rate; weighted average interest 5.34%; average life about 1.6 years).
• Many mortgages have amortization schedules longer than their terms, creating balloon payments; FREIT expects to refinance or extend loans as they come due.
• Credit facility: revolving line of credit of $13 million (all or part available as of October 31, 2025).
• Financial covenants: several loan agreements include covenants that could restrict acquisitions or require adjustments if not met.

Operational and market attributes

• Primary markets: New Jersey and New York.
• Property mix: residential apartment communities and commercial centers with a mix of anchor and satellite tenants.
• Management focus: asset management to create long-term value, selective divestitures as part of strategic allocation, and active consideration of credible acquisition proposals.
• Environmental and regulatory: properties are subject to environmental laws, rent control regulations for most residential properties, and local zoning requirements.

Employees

• As of October 31, 2025: 19 full-time employees and 3 part-time employees working solely at FREIT’s properties (total 22).

Cybersecurity and governance

• FREIT relies on Hekemian & Co.’s IT systems for operations and financial reporting.
• The company maintains cybersecurity risk management practices and carries cybersecurity insurance.
• The Board oversees cybersecurity strategy through the Audit Committee.

Additional notes

• FREIT’s investments are intended to complement existing holdings, increase income and distributions, and enhance overall portfolio value.
• The company does not hold any patents or trademarks.
• FREIT is subject to the tax and regulatory framework applicable to REITs, with potential consequences if it fails to qualify.

Summary

FREIT is a diversified REIT focused on long-term ownership of residential apartment properties and commercial centers in New Jersey and New York. The company operates through subsidiaries, is managed by Hekemian & Co., finances growth primarily with debt, and emphasizes income stability through rents and value appreciation through active asset management and selective dispositions. The portfolio includes six residential properties (792 units, plus a 65% TIC interest in Pierre Towers), five commercial centers totaling roughly 589,000 square feet of leasable space, and several land parcels, with two properties representing the largest shares of recent revenue.