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

• Market Cap: $104.68M
• Dividend Yield: 2.42%
• Average Volume (3M): 727.00
• Price to Earnings (P/E): 24.8
• Beta (1Y): 0.17
• Revenue Growth: 1.59%
• EPS Growth: -77.87%
• Country: US
• Employees: 19
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.13
• Shares Outstanding: 7,482,432
• 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: 16.90
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 6.99
• Enterprise Value/Gross Profit: 34.08
• Enterprise Value/Ebitda: 16.60
• 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: 52 Neutral
• Price Target: $13.50 ▼(-9.40% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by mixed financial performance: good current margins and cash flow are offset by a highly leveraged balance sheet and historically uneven results. Technical signals are mildly weak (negative MACD and trading below longer-term averages), valuation looks somewhat expensive on P/E despite a modest dividend yield, and the recent dividend communication adds uncertainty around payout consistency.

Positive Factors

Cash generation

Trailing-twelve-month operating and free cash flow roughly match net income, showing the company converts reported earnings into real cash. Durable cash conversion supports debt service, maintenance capex and opportunistic investments, improving financial resilience over months ahead.

Margin profile

A healthy operating margin (~34%) and positive net margin (~12%) indicate efficient property operations and expense control in the current operating model. Sustainable margins help absorb cyclical rent or occupancy swings and underpin cash flow generation over the medium term.

Improved equity and ROE

Equity restoration versus prior years and a roughly 10% trailing ROE signal the firm is rebuilding capital and earning respectable returns on that base. Stronger equity cushions downside risk and improves access to capital markets for refinancing or growth over coming quarters.

Negative Factors

High leverage

A debt-to-equity ratio near 3.5x leaves the REIT highly exposed to interest-rate moves and refinancing risk. Elevated leverage restricts flexibility for acquisitions or capital returns and raises default sensitivity if cash flows weaken, a material structural constraint for months ahead.

Earnings volatility

Significant year-to-year swings and reliance on non-recurring items reduce predictability of core earnings. This volatility hampers forecasting, raises the risk of future cash-flow shortfalls, and complicates capital allocation and dividend planning over the medium term.

Dividend uncertainty

Management's explicit quarter-by-quarter dividend policy creates structural unpredictability for income investors and signals discretionary payouts tied to cash variability. That uncertainty can limit the REIT's appeal to dividend-focused holders and complicate long-term yield expectations.

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

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First Real Estate Investment of New Jersey Financial Statement Overview

Summary

Solid TTM profitability and cash conversion (operating and free cash flow roughly in line with net income) are positives, but the balance sheet is a major constraint with high leverage (debt-to-equity ~3.5x) and results have been uneven across years, reducing confidence in stability.

Income Statement

TTM (Trailing-Twelve-Months) revenue jumped sharply (+80%), while profitability is solid with a healthy operating profile (EBIT margin ~34% and net margin ~12%). However, earnings quality and comparability are uneven across years: net income swung from a loss (2021) to an unusually high profit level (2022) and then normalized lower (2023–TTM), suggesting results are influenced by non-recurring items and are less stable than the current margin snapshot implies.

Balance Sheet

Leverage remains the key constraint: debt-to-equity is elevated (roughly 3.5x in the latest periods and higher historically), which increases refinancing and rate sensitivity for a REIT. Equity has improved versus 2023, and returns on equity are positive again in TTM (~10%), but the overall capital structure is still debt-heavy, limiting balance-sheet flexibility.

Cash Flow

Cash generation is generally supportive: TTM (Trailing-Twelve-Months) operating cash flow (~$6.1M) and free cash flow (~$6.2M) cover net income at roughly parity, indicating earnings are translating into cash. Still, free cash flow has been volatile year-to-year (very strong in 2024, weaker in 2025, re-accelerating in TTM), which reduces confidence in consistency through cycles.

Breakdown	Jan 2026	Oct 2024	Oct 2023	Oct 2022	Oct 2021
Income Statement
Total Revenue	29.32M	28.68M	28.34M	31.27M	50.29M
Gross Profit	9.14M	22.69M	11.65M	25.07M	42.23M
EBITDA	12.18M	11.40M	10.35M	10.89M	22.80M
Net Income	3.51M	15.85M	760.00K	45.99M	-9.95M
Balance Sheet
Total Assets	149.87M	162.26M	159.12M	178.65M	346.11M
Cash, Cash Equivalents and Short-Term Investments	36.10M	44.17M	14.55M	49.58M	35.89M
Total Debt	120.78M	128.07M	137.06M	138.07M	299.88M
Total Liabilities	124.17M	136.08M	140.64M	153.91M	314.15M
Stockholders Equity	34.04M	33.36M	24.52M	25.91M	36.57M
Cash Flow
Free Cash Flow	5.94M	18.92M	1.39M	5.75M	10.28M
Operating Cash Flow	6.25M	20.16M	2.68M	7.32M	12.22M
Investing Cash Flow	11.54M	-6.11M	-25.31M	249.69M	-1.79M
Financing Cash Flow	-15.49M	-13.19M	-17.51M	-237.55M	-10.90M

First Real Estate Investment of New Jersey Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 14.9 is above the 20-day moving average (MA) of 13.18, above the 50-day MA of 13.59, and above the 200-day MA of 13.93, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.96 is Neutral, neither overbought nor oversold. The STOCH value of 66.42 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
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MDV	63 Neutral	$145.60M	35.61	0.82%	8.15%	-0.59%	-160.22%
FREVS	52 Neutral	$104.68M	24.80	10.42%	2.42%	1.59%	-77.87%
MDRR	48 Neutral	$28.44M	-6.48	-18.66%	2.06%	-0.05%	-150.66%
MKZR	43 Neutral	$7.79M	-0.37	-38.08%	86.42%	26.56%	-20.97%
GIPR	40 Underperform	$1.85M	-0.44	-1149.68%	―	-4.77%	23.08%
SQFT	40 Underperform	$3.45M	-1.26	-27.98%	―	-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.