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

• Market Cap: $115.51M
• Dividend Yield: 6.56%
• Average Volume (3M): 1.18K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 0.09
• Revenue Growth: 1.59%
• EPS Growth: -77.87%
• Country: US
• Employees: 19
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.12
• Shares Outstanding: 7,471,344
• 10 Day Avg. Volume: 469
• 30 Day Avg. Volume: 1,179
• PEG Ratio: <0.01
• Price to Book (P/B): 3.91
• Price to Sales (P/S): 4.55
• P/FCF Ratio: 6.90
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 6.48
• Enterprise Value/Gross Profit: 7.91
• Enterprise Value/Ebitda: 14.08
• 1Y Price Target: $17.00
• Price Target Upside: 7.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: $17.00 ▲(7.66% Upside)

The overall stock score is driven by strong financial performance and positive technical indicators, despite high leverage and a potentially overvalued P/E ratio. The attractive dividend yield provides a cushion for investors seeking income.

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 the acquisition and management of real estate properties. The company earns income from rental payments on residential and commercial properties that it owns and manages. Additionally, FREVS engages in property flipping, where it purchases undervalued properties, renovates them, and sells them at a profit. The firm may also charge management fees to investors for overseeing their real estate assets. Significant partnerships with local contractors and real estate agents facilitate efficient project execution and market access, contributing to its overall earnings.

First Real Estate Investment of New Jersey Financial Statement Overview

Summary

First Real Estate Investment of New Jersey exhibits strong profitability and cash flow management, with efficient operations and robust cash generation capabilities. However, high leverage levels pose a risk if not managed carefully.

Income Statement

The company has shown a modest revenue growth from $28.34 million to $28.68 million in the most recent year, with a gross profit margin of approximately 79.1%. However, the net profit margin is concerning at around 55.3% due to the fluctuations in net income in prior years. The EBIT and EBITDA margins are strong at 41.4%, indicating efficient operating performance.

Balance Sheet

The debt-to-equity ratio is high at 3.84, indicating significant leverage, which poses a risk. However, the company maintains a solid equity ratio of 20.6%, reflecting a stable capital structure. Return on Equity stands impressively high at 47.5%, driven by substantial net income.

Cash Flow

The company has demonstrated a robust free cash flow growth rate of 1,260.4%, with a strong operating cash flow to net income ratio of 1.27. This suggests effective cash conversion from income, although the free cash flow to net income ratio of 1.19 highlights potential volatility in cash generation relative to profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	29.03M	28.68M	28.34M	31.27M	50.29M	52.73M
Gross Profit	23.77M	22.69M	11.65M	25.07M	42.23M	44.04M
EBITDA	13.36M	11.40M	10.35M	10.89M	22.80M	23.00M
Net Income	3.43M	15.85M	760.00K	45.99M	-9.95M	6.63M
Balance Sheet
Total Assets	150.23M	162.26M	159.12M	178.65M	346.11M	355.21M
Cash, Cash Equivalents and Short-Term Investments	35.08M	44.17M	14.55M	49.58M	35.89M	36.86M
Total Debt	0.00	128.07M	137.06M	138.07M	299.88M	305.43M
Total Liabilities	124.68M	136.08M	140.64M	153.91M	314.15M	324.35M
Stockholders Equity	33.74M	33.36M	24.52M	25.91M	36.57M	34.90M
Cash Flow
Free Cash Flow	3.56M	18.92M	1.39M	5.75M	10.28M	1.59M
Operating Cash Flow	4.11M	20.16M	2.68M	7.32M	12.22M	3.64M
Investing Cash Flow	-3.39M	-6.11M	-25.31M	249.69M	-1.79M	-2.98M
Financing Cash Flow	-16.15M	-13.19M	-17.51M	-237.55M	-10.90M	-3.63M

First Real Estate Investment of New Jersey Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FREVS, the sentiment is Positive. The current price of 15.79 is above the 20-day moving average (MA) of 14.45, above the 50-day MA of 14.65, and below the 200-day MA of 15.94, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 61.36 is Neutral, neither overbought nor oversold. The STOCH value of 74.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
FREVS	63 Neutral	$115.51M	33.68	9.60%	6.56%	1.59%	-77.87%
MDV	59 Neutral	150.14M	-36.16	-0.97%	7.87%	-2.40%	42.84%
MDRR	50 Neutral	30.49M	-7.64	-16.94%	1.89%	-6.82%	7.33%
GIPR	46 Neutral	6.31M	-0.61	-144.06%	―	0.70%	26.52%
SQFT	43 Neutral	9.58M	-0.57	-54.84%	―	1.35%	-129.09%
MKZR	42 Neutral	9.02M	-0.31	0.00%	65.06%	43.87%	-4681.28%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

First Real Estate Investment of New Jersey Corporate Events

First Real Estate Elects New Directors at Annual Meeting

On July 17, 2025, First Real Estate Investment Trust of New Jersey, Inc. held its annual meeting of stockholders, where Ronald J. Artinian and Justin F. Meng were elected as directors for three-year terms. Additionally, the stockholders ratified the appointment of EisnerAmper LLP as the Trust’s independent registered public accountants for the fiscal year ending October 31, 2025, indicating continued confidence in the company’s financial oversight.

FREIT Declares Third Quarter Dividend Announcement

On July 17, 2025, the Board of Directors of FREIT declared a third quarter dividend of $0.10 per share, payable on September 12, 2025, to shareholders of record as of August 29, 2025. The announcement reflects the company’s ongoing evaluation of dividends, with no assurance of future declarations, and highlights the inherent risks and uncertainties in the real estate market that could impact FREIT’s operations and stakeholder interests.