SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: December 15, 2000
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
(Exact name of registrant as specified in its charter)
New Jersey 22-1697095
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(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
505 Main Street, P.O. Box 667, Hackensack, New Jersey 07602
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 201-488-6400
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Item 5. Other Events
The Registrant has reported its fourth quarter and year ended October 31,
2000 operating results. The Press Release is included as Exhibit 1 to this
Form 8-K.
Disclosure Concerning Forward-Looking Statements
Certain Statements in this Form 8-K may contain information that is, or
anticipate certain events that are, forward-looking within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Registrant cautions readers
that forward-looking statements, including, without limitation, those relating
to the Registrant's liquidity and capital resources, are subject to certain
risks and uncertainties. Actual results may differ materially from those
described in the forward-looking statements and will be affected by a variety of
risks and factors, including without limitation, the Registrant's future
financial performance; the availability of capital; general market conditions;
national and local economic conditions; particularly long-term interest rates;
the terms of federal, state and local governmental regulations that affect the
Registrant; and the competitive environment in which the Registrant operates,
including the availability of retail space and residential apartment units in
the areas where the Registrant's properties are located. In addition, the
Registrant's continued qualification as a real estate investment trust involves
the application of highly technical and complex rules of the Internal Revenue
Code. The forward-looking statements are made as of the date of this Form 8-K
and the Registrant assumes no obligation to update the forward-looking
statements or to update the reasons actual results could differ from those
projected in such forward-looking statements.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY
By: Robert S. Hekemian
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Robert S. Hekemian
Chairman of the Board
DATED: December 15, 2000
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RESULTS OF OPERATIONS
FOURTH QUARTER & TWELVE MONTHS ENDED OCTOBER 31, 2000
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HIGHLIGHTS FOR THE YEAR
Net Income increased 28% to $3.05 per share
Dividends increased 18% to $2.65 per share
FFO increased 21% to $3.99 per share
Revenues increased 15% to $18,156,000
Acquisition of the 99,000 sq. ft. Olney Town Center in Olney, MD.
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HACKENSACK, NJ, December 15, 2000 - First Real Estate Investment Trust announced
its operating results for the fourth quarter and for the twelve months ended
October 31, 2000.
OPERATIONS: Net Income for the quarter ended October 31, 2000 increased 19.1% to
$1,341,000 ($.86 per share) on revenues of $4,846,000. This compares to Net
Income of $1,126,000 ($.72 per share) on revenues of $4,113,000 for the
comparable prior fiscal year's quarter. FFO for the current year's quarter was
$1,736,000 ($1.11 per share) compared to $1,426,000 ($.91 per share) for the
prior year's quarter.
Net Income for the twelve months ended October 31, 2000 increased 28.1% to
$4,759,000 ($3.05 per share) on revenues of $18,156,000. This compares to Net
Income of $3,716,000 ($2.38 per share) on revenues of $15,728,000 for the prior
twelve months. FFO for the twelve months ended October 31, 2000 increased to
$6,217,000 ($3.99 per share) from $5,135,000 ($3.29 per share) for the prior
year.
Current fiscal year's results include the operations of the 99,000 sq. ft. Olney
Town Center ("Olney"), in Olney, MD, which was acquired on March 29, 2000.
Same property Net Operating Income ("NOI") for the year ended October 31, 2000
increased 5.9% over the prior year. The increase was primarily attributable to
higher rents and increased occupancy at the Trust's retail properties.
Average occupancy at the Trust's apartment communities (including its affiliate,
Westwood Hills) was 96.2% for the year ended October 31, 2000 compared to 96.9%
for the prior year. This modest decline in occupancy was more than offset by the
almost 3% increase in monthly average rents which increased to $884 from $859.
Revenues from retail properties increased 21.5% and average occupancy increased
to 94.8% during the fiscal year ended October 31, 2000 from 93.2% for the prior
year. The revenue increase came principally from the addition of Olney,
increased occupancy (87.6%) and lease-up (91.5%) at Franklin Crossing Shipping
Center, in Franklin Lakes, NJ, and a onetime $150,000 lease termination fee at
the Westridge Square Shopping Center in Frederick, MD.
Operating expenses increased 2.1% after excluding expenses attributable to Olney
in the current fiscal year.
GOING FORWARD: The Trust feels its operating properties are well positioned in
their markets and should continue making positive contributions to earnings and
FFO. However, as we approach the New Year, the following factors may negatively
impact the Trust's operating results:
o Increased fuel and snow removal costs. The effect of increased utility
rates and prospects for a severe winter may increase expenses above the
levels experienced the past several years.
o Olney Town Center expansion. The Trust is planning an expansion of its
Olney center during fiscal 2001- 2002 that will ultimately add to
revenues, net income, and value to the Trust's portfolio when
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completed. If the expansion plans are approved by the required
governmental agencies, and leasing completed, a number of existing
tenants will be moved to new locations. The relocation of these tenants
will cause a temporary, though significant, loss of rental income and
expense reimbursements to the Trust during the expansion period.
GRAND UNION: In October 2000, Grand Union declared Chapter 11 bankruptcy. The
Trust has two Grand Union supermarkets aggregating approximately 70,200 sq. ft.
At a bankruptcy auction on November 16, 2000, a major grocery wholesaler emerged
as the successful bidder for these leases, and is expected to assign the leases
to one of its customers, which is an established supermarket operator in the
Northeast.
DIVIDENDS: As previously reported, the Trust's fourth quarter dividend of $1.15
per share is payable on December 15, 2000 to shareholders of record on December
1, 2000. This raised year-to-date dividends to $2.65 per share compared to $2.25
per share for the same period last year. It is the Trust's policy to pay fixed
quarterly dividends for the first three quarters of each fiscal year, and a
final fourth quarter dividend based on the fiscal year's operating results. For
the fiscal year beginning November 1, 2000, the Trust plans to increase its
fixed quarterly dividend to $.60 per share from $.50 per share. The fourth
quarter dividend will be adjusted to reflect its total operating results for the
year ending October 31, 2001.
<TABLE>
<CAPTION>
Summary Consolidated Balance Sheet Data
(in thousand of dollars except Per Share amounts)
October 31,
2000 1999
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<S> <C> <C>
Real Estate Properties $ 78,038 $ 63,441
Cash & Cash Items 2,925 2,083
Marketable Securities 9,451 14,453
Mortgage Notes Payable 70,214 60,071
Shareholder's Equity 21,144 20,520
</TABLE>
<TABLE>
<CAPTION>
Summary Consolidated Statement of Income
Twelve Months Ended Three Months Ended
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October 31, October 31,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Revenues:
Real Estate Operations $ 17,149 $15,039 $ 4,566 $ 3,820
Net Investment Income 834 742 214 252
Equity In Earnings Of Affiliate 173 (53) 66 41
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Total Revenue 18,156 15,728 4,846 4,113
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Expenses:
Real Estate Operations 5,880 5,244 1,482 1,321
Financing Costs 5,164 4,620 1,385 1,154
General & Administrative 365 432 92 73
Depreciation 1,988 1,716 546 439
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Total Expenses 13,397 12,012 3,505 2,987
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Net Income $ 4,759 $ 3,716 $ 1,341 $ 1,126
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Net Income Per Share $ 3.05 $ 2.38 $ 0.86 $ 0.72
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FFO Per Share $ 3.99 $ 3.29 $ 1.11 $ 0.91
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Dividends Per Share $ 2.65 $ 2.25 $ 1.15 $ 1.05
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</TABLE>
The statements in this report that relate to future earnings or performance are
forward-looking and as such may involve known and unknown risk, uncertainties
and other factors. Actual results might differ materially and be adversely
affected by such factors as longer than anticipated lease-up periods or the
inability of tenants to pay increased rents. Additional information about these
factors is contained in the Trust's filings with the SEC including the Trust's
most recent filed reports on Form 10-K, Form 10-Q, and Form 8-K.
For additional information contact Shareholder Relations at (201) 488-6400
