F
irst Real Estate Investment Trust of New Jersey, Inc. (FREIT) has released its Form 10-Q report for the second quarter of 2025, showcasing significant improvements in profitability and strategic business developments. Key financial highlights include:

    Total Revenue: $14.527 million, a 1.8% increase from the prior year's six months, driven by higher residential segment revenue.

    Net Income: $1.282 million, compared to a net loss of $267,000 in the prior year's six months, due to increased revenue and reduced general and administrative expenses.

    The commercial segment experienced a decline in total revenue, primarily due to tenant lease adjustments and decreased occupancy rates at two shopping centers. In contrast, the residential segment saw an increase in total revenue driven by higher base rents and improved occupancy rates.

    Occupancy trends indicate a stronger demand in the residential market compared to the commercial sector. Leasing activity was moderate, with eight comparable leases executed covering 106,188 square feet, and a slight increase in weighted average lease rate.

    Management anticipates sufficient cash flow to cover debt service payments and capital improvements for at least one year. However, higher interest rates on recent loan modifications may impact future financing costs and operational cash flow. The company is focused on refinancing or extending existing debt obligations as they become due.