First Real Estate Investment of New Jersey (FREVS) AI Stock Analysis

• Market Cap: $103.15M
• Dividend Yield: 2.42%
• Average Volume (3M): 727.00
• Price to Earnings (P/E): 29.4
• Beta (1Y): 0.19
• Revenue Growth: 1.59%
• EPS Growth: -77.87%
• Country: US
• Employees: 19
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.15
• Shares Outstanding: 7,471,344
• 10 Day Avg. Volume: 276
• 30 Day Avg. Volume: 727
• PEG Ratio: -0.37
• Price to Book (P/B): 2.95
• Price to Sales (P/S): 3.43
• P/FCF Ratio: 16.08
• Enterprise Value/Market Cap: 2.03
• Enterprise Value/Revenue: 7.22
• Enterprise Value/Gross Profit: 8.82
• Enterprise Value/Ebitda: 16.13
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $14.00 ▼(-6.04% Downside)

The score is primarily supported by improved financial risk from eliminating debt and maintaining positive free cash flow, but is held back by volatile earnings/cash generation and a weaker technical backdrop. A relatively high P/E and cautious dividend messaging further limit the upside in the near term.

Positive Factors

Cash Generation Ability

Strong cash flow growth indicates effective income conversion, supporting reinvestment and debt management, enhancing long-term stability.

Operating Efficiency

High operating margins reflect efficient operations, allowing the company to maintain profitability and competitive positioning in the market.

Return on Equity

High ROE indicates effective use of equity to generate profits, showcasing strong management performance and shareholder value creation.

Negative Factors

High Leverage

Significant leverage increases financial risk, potentially impacting the company's ability to manage debt obligations and invest in growth.

Net Profit Margin Concerns

Volatile net profit margins can indicate instability in earnings, affecting long-term profitability and financial predictability.

Earnings Volatility

Negative EPS growth highlights earnings volatility, which can undermine investor confidence and impact future investment and expansion plans.

First Real Estate Investment of New Jersey Business Overview & Revenue Model

Company Description

First Real Estate Investment Trust of New Jersey is a publicly traded (over-the-counter – symbol FREVS.) REIT organized in 1961. Its portfolio of residential and commercial properties are located in New Jersey, New York and Maryland, with the largest concentration in northern New Jersey.

How the Company Makes Money

FREVS generates revenue primarily through three key streams: property acquisition and resale, rental income from managed properties, and property management services. The company identifies undervalued properties, invests in renovations, and sells them at a higher market value, thereby realizing capital gains. Additionally, FREVS earns consistent rental income by leasing out both residential and commercial spaces. The property management segment provides services to other property owners, generating fees based on a percentage of the rental income. Strategic partnerships with local contractors, real estate agents, and financial institutions also enhance FREVS's ability to efficiently manage costs and access funding, contributing to its overall profitability.

First Real Estate Investment of New Jersey Financial Statement Overview

Summary

Balance sheet risk improved materially with debt eliminated in 2025, but operating results remain uneven: revenue is still below 2020–2021 levels and net income/cash flow have shown large year-to-year swings (notably the drop in operating/free cash flow from 2024 to 2025). Strong recent gross margins and positive free cash flow support a mid-range score.

Income Statement

Revenue has stabilized over the last three years (2023 down ~9%, then modest growth in 2024–2025), but the longer-term trend shows a material step-down from 2020–2021 levels. Profitability is volatile: net margin swung from a loss in 2021 to an unusually high profit level in 2022–2024, then fell back to a more modest level in 2025 (~12%). Gross margin is strong in 2024–2025 (~79–80%), supporting earnings power, but the sharp year-to-year earnings variability lowers confidence in the run-rate.

Balance Sheet

Leverage improved dramatically in the most recent year: total debt moved from very high levels in 2020–2024 (debt running ~4–9x equity) to zero in 2025, which meaningfully reduces financial risk. Equity is relatively steady (~$33–36M in recent years) versus a sizable asset base (~$150–162M in 2024–2025), consistent with a REIT structure. A key watch item is the sharp balance-sheet shift year over year (2024 debt-heavy to 2025 debt-free), which may reflect a major transaction or capital structure change that can affect comparability.

Cash Flow

Cash generation is inconsistent. Operating cash flow and free cash flow were strong in 2024 (roughly $20M and $19M, respectively) but dropped sharply in 2025 (about $6.2M), even though free cash flow remained positive. Cash flow has generally been sufficient to cover reported earnings in most years (free cash flow roughly in line with net income in 2024–2025), but the magnitude of swings—especially the step-down from 2024 to 2025—adds uncertainty around underlying cash earning power.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.03M	29.32M	28.68M	28.34M	31.27M	50.29M
Gross Profit	23.77M	23.38M	22.69M	11.65M	25.07M	42.23M
EBITDA	13.00M	13.60M	11.40M	10.35M	10.89M	22.80M
Net Income	3.43M	3.51M	15.85M	760.00K	45.99M	-9.95M
Balance Sheet
Total Assets	150.23M	149.87M	162.26M	159.12M	178.65M	346.11M
Cash, Cash Equivalents and Short-Term Investments	35.08M	36.10M	44.17M	14.55M	49.58M	35.89M
Total Debt	121.15M	0.00	128.07M	137.06M	138.07M	299.88M
Total Liabilities	124.68M	124.17M	136.08M	140.64M	153.91M	314.15M
Stockholders Equity	33.74M	34.04M	33.36M	24.52M	25.91M	36.57M
Cash Flow
Free Cash Flow	3.56M	6.25M	18.92M	1.39M	5.75M	10.28M
Operating Cash Flow	4.11M	6.25M	20.16M	2.68M	7.32M	12.22M
Investing Cash Flow	-3.39M	11.54M	-6.11M	-25.31M	249.69M	-1.79M
Financing Cash Flow	-16.15M	-15.49M	-13.19M	-17.51M	-237.55M	-10.90M

First Real Estate Investment of New Jersey Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FREVS, the sentiment is Negative. The current price of 14.9 is above the 20-day moving average (MA) of 14.60, above the 50-day MA of 13.86, and above the 200-day MA of 14.53, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 39.47 is Neutral, neither overbought nor oversold. The STOCH value of 80.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FREVS.

First Real Estate Investment of New Jersey Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MDV	63 Neutral	$157.41M	-56.70	0.37%	8.15%	-0.59%	-160.22%
FREVS	54 Neutral	$103.15M	29.39	9.60%	2.42%	1.59%	-77.87%
MDRR	48 Neutral	$27.10M	-7.36	-18.66%	2.06%	-0.05%	-150.66%
MKZR	45 Neutral	$7.98M	-0.28	-33.51%	86.42%	26.56%	-20.97%
GIPR	40 Underperform	$3.79M	-0.37	-904.27%	―	-4.77%	23.08%
SQFT	40 Underperform	$3.44M	-0.31	-26.78%	―	-2.79%	72.36%

First Real Estate Investment of New Jersey Corporate Events

First Real Estate Investment Trust Declares Cautious Q1 Dividend

On January 15, 2026, First Real Estate Investment Trust of New Jersey, Inc. declared a first-quarter cash dividend of $0.10 per share on its common stock, payable on March 13, 2026 to shareholders of record as of the close of business on February 27, 2026. The board emphasized that dividends will continue to be evaluated quarter by quarter, cautioning that there is no assurance of future dividend declarations and that the size of the January 15, 2026 dividend should not be taken as an indication of future payout levels, underscoring an element of uncertainty for income-focused investors.

The most recent analyst rating on (FREVS) stock is a Hold with a $13.00 price target. To see the full list of analyst forecasts on First Real Estate Investment of New Jersey stock, see the FREVS Stock Forecast page.