Exhibit 1
RESULTS OF OPERATIONS
THIRD QUARTER & NINE MONTHS ENDED JULY 31, 2000
HACKENSACK, NJ, August 23, 2000 - First Real Estate Investment Trust announced
its operating results for the third quarter and for the nine months ended July
31, 2000.
Net Income for the quarter ended July 31, 2000 increased 37.5% to $1,409,000
($.90 per share) on revenues of $4,892,000. This compares to Net Income of
$1,038,000 ($.67 per share) on revenues of $4,039,000 for the comparable prior
fiscal year's quarter. FFO for the current year's quarter was $1,774,000 ($1.14
per share) compared to $1,335,000 ($.86 per share) for the prior year's quarter.
Net Income for the nine months ended July 31, 2000 increased 32.0% to $3,418,000
($2.19 per share) on revenues of $13,311,000. This compares to Net Income of
$2,589,000 ($1.66 per share) on revenues of $11,614,000 for the nine months of
last year. FFO increased to $4,464,000 ($2.86 per share) from $3,709,000 ($2.38
per share) for the prior year's nine-month period.
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.
Occupancy of the Trust's apartment communities (including its affiliate,
Westwood Hills) was 94.3% at July 31, 2000 compared to 95.4% at July 31, 1999.
However, revenues from apartment communities for the nine-month period increased
2.9% as average monthly rents increased to $884 this year from $869 last year.
Revenues from Retail properties increased 18.9% during the current fiscal year,
and occupancy increased to 94.8% at July 31, 2000 from 92.9% at July 31, 1999.
The significant revenue increase came principally from the addition of Olney,
and increased occupancy (87.6%) and lease-up (91.8%) at Franklin Crossing
Shipping Center, in Franklin Lakes, NJ, and a one-time $150,000 lease
termination fee from a tenant.
Overall operating expenses increased 2.0% after allowing for the expenses
attributable to the inclusion of Olney in the current fiscal year.
For the quarter ended July 31, 2000, the Trust declared a dividend of $.50 per
share payable on September 19, 2000 to shareholders of record on September 5,
2000. This raises year to date dividends to $1.50 compared to $1.20 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.
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The statements in this report that relate to future earnings or performance are
forward-looking. 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 report on Form 10-K and Form 10-Q.
(Over)
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST
Of New Jersey
<TABLE>
<CAPTION>
Summary Consolidated Balance Sheet Data
(in thousand of dollars except Per Share amounts)
July 31,
2000 1999
---- ----
<S> <C> <C>
Real Estate Properties, Net Of Depreciation $ 77,649 $ 63,275
Construction In Progress 704 1,426
Cash & Cash Items 2,360 15,792
Marketable Securities 9,380
Equity In Affiliate (359) (296)
Mortgage Notes Payable 70,418 60,262
Minority Interest 1,034
Shareholder's Equity 21,526 21,079
Shares Outstanding 1,560 1,560
</TABLE>
<TABLE>
<CAPTION>
Consolidated Statement of Income
Nine Months Ended Three Months Ended
------------------------------------------------------------
July 31, July 31,
2000 1999 2000 1999
Revenues:
<S> <C> <C> <C> <C>
Rental Income $ 10,703 $ 9,778 $ 3,873 $ 3,345
Reimbursements 1,555 1,277 561 400
Net Investment Income 620 490 204 184
Equity In Earnings Of Affiliate 107 (93) 35 43
Other 326 162 219 67
------------ ----------- ------------- -----------
Total Revenue 13,311 11,614 4,892 4,039
------------ ----------- ------------- -----------
Expenses:
Operating Expenses & Management Fees 2,779 2,556 896 851
Real Estate Taxes 1,603 1,367 565 468
Financing Costs 3,779 3,466 1,400 1,157
General & Administrative 273 359 69 93
Depreciation 1,442 1,277 542 432
Minority Interest 17 11
------------ ----------- ------------- -----------
Total Expenses 9,893 9,025 3,483 3,001
------------ ----------- ------------- -----------
------------ ----------- ------------- -----------
Net Income $ 3,418 $ 2,589 $ 1,409 $ 1,038
============ =========== ============= ===========
------------ ----------- ------------- -----------
Net Income Per Share $ 2.19 $ 1.66 $ 0.90 $ 0.67
============ =========== ============= ===========
Funds From Operations:
Net Income $ 3,418 $ 2,589 $ 1,409 $ 1,038
Depreciation & Amortization 1,522 1,344 574 455
Deferred Rents (319) (305) (123) (98)
Capital Improvements - Apartments (230) (170) (115) (86)
Other 73 251 29 26
------------ ----------- ------------- -----------
Funds From Operations $ 4,464 $ 3,709 $ 1,774 $ 1,335
============ =========== ============= ===========
------------ ----------- ------------- -----------
Funds From Operations Per Share $ 2.86 $ 2.38 $ 1.14 $ 0.86
============ =========== ============= ===========
</TABLE>
First Real Estate Investment Trust is a publicly traded (over-the-counter -
symbol FREVS) REIT organized in 1961. It has approximately $96 million
(historical cost basis) of assets. Its portfolio of residential and retail
properties extends from Eastern L.I. to Maryland, with the largest concentration
in Northern New Jersey
For additional information contact Shareholder Relations at (201) 488-6400
