Filing Flows › Companies › First Real Estate Investment Trust of New Jersey › Analysis traps
First Real Estate Investment Trust of New Jersey (FREVS): analysis traps
Where its figures could mislead a reader, and what to check before taking them at face value · Data: Q3 FY26, to Jul 31, 2026, filed Sep 11, 2026; rules v1.1
First Real Estate Investment Trust of New Jersey (FREVS): 2 rules of 10 triggered on the filings to Jul 31, 2026: low net debt = no refinancing risk; A REIT's low net income = the dividend is unsafe; 3 with insufficient data; 4 not applicable. Each is a question to verify, with the normal explanation that would produce the same figures.
Check these first
Low net debt = no refinancing risk Triggered · severity high · confidence medium
$61M of debt comes due within a year against $16M of cash and investments and $5M of free cash flow over the last twelve months: $40M short, to be refinanced or raised. Net debt of $98M says nothing about when the debt falls due.
Innocent reading: A committed, undrawn credit facility covers the gap (not visible in the balance sheet).
A REIT's low net income = the dividend is unsafe Triggered · severity medium · confidence medium
Dividends of $7M exceeded operating cash flow of $6M in FY25 (115%): the low net income ($3M) is not the reason to worry, the cash is.
Innocent reading: Capital returned after a disposal, as a one-off.
Every rule
A01 FCF growth = the business improved Not applicable
a financial company: free cash flow after capex is not the measure of its business
A07 Stock compensation added back = no economic cost Insufficient data
fewer than two fiscal years of stock compensation and share counts on file
B02 Receivables growing = future cash is certain Not applicable
a financial company: receivables and DSO are not its working capital
B08 Adjusted profit = economic profit Insufficient data
no reconciliation table read from the releases yet and fewer than three quarters with both an adjusted and a GAAP EPS
C02 Low net debt = no refinancing risk Triggered severity high · confidence medium
$61M of debt comes due within a year against $16M of cash and investments and $5M of free cash flow over the last twelve months: $40M short, to be refinanced or raised. Net debt of $98M says nothing about when the debt falls due.
The figures and how they are read
| Cash and investments | $16M |
| Debt | $114M |
| Net debt | $98M |
| Due within a year | $61M |
| Read from | the debt maturity table |
| Free cash flow, twelve months | $5M |
| Cash plus free cash flow | $21M |
| Coverage of what is due | 0.3 |
| Due in the second year | $10M |
| Balance sheet date | 2026-07-31 |
due within a year from the maturity table (else the current portion of debt), against cash and investments plus free cash flow over the last twelve months (zero if negative); no credit lines assumed
Source: FY25 (debt maturities, cash and investments)
What would explain it innocently
- A committed, undrawn credit facility covers the gap (not visible in the balance sheet)
- The notes are routinely rolled over in the commercial-paper or bond market at an investment-grade rating
- Cash held abroad or in subsidiaries can be moved to where the debt is
- A sale of a business or asset already agreed brings the cash
What to look for in the filing
- Undrawn committed facilities and their covenants
- The cost and rating of the refinancing
- Restricted cash and the operating minimum
What would show the trap does not apply
- The 10-K lists an undrawn credit facility that covers the debt due, or the maturity is refinanced before it falls due
- Cash plus FCF of the next quarter exceeds the debt due within a year
Look again: next filing.
D03 EPS growth = profit growth Not triggered confidence high
EPS rose 2184% and net income rose 2194% in Q3 FY26; the share count rose 0.1%: EPS growth follows profit growth.
The figures and how they are read
| Quarter | Q3 FY26 |
| Quarter before | Q3 FY25 |
| EPS, year before | $0.12 |
| EPS | $2.69 |
| Net income, year before | $879K |
| Net income | $20M |
| Diluted shares, year before | 7.5M shares |
| Diluted shares | 7.5M shares |
| EPS growth | 21.84 |
| Net income growth | 21.94 |
| Diluted shares: change | +0.1% |
| eps from profit | $2.58 |
| eps from share count | $0.00 |
EPS and net income against the same quarter a year earlier; the EPS bridge attributes the change to profit first, then to the share count (the order is fixed and disclosed)
Source: Q3 FY26 (net income, diluted shares, EPS) · Q3 FY25 (the same quarter a year earlier)
E02 Low P/E at a cyclical peak = undervalued Not applicable
a financial company: J06 reads its cycle instead
E07 A precise DCF value = the true value Insufficient data
no DCF in the valuation research for this company
J06 A bank's low P/E and high profit = safe Not applicable
not a bank
J08 A REIT's low net income = the dividend is unsafe Triggered severity medium · confidence medium
Dividends of $7M exceeded operating cash flow of $6M in FY25 (115%): the low net income ($3M) is not the reason to worry, the cash is.
The figures and how they are read
| Fiscal year | FY25 |
| Net income | $3M |
| operating cash flow | $6M |
| dividends paid | $7M |
| capex | $759K |
| payout of net income | 2.28 |
| payout of ocf | 1.15 |
| payout of ocf after capex | 1.31 |
a REIT's net income is after depreciation of buildings that usually hold their value, so FFO / AFFO is the payout measure; here operating cash flow and operating cash flow after capex stand in for it (capex includes acquisitions of property where the filing lumps them)
Source: FY25 (net income, operating cash flow, dividends and capex, fiscal year)
What would explain it innocently
- Capital returned after a disposal, as a one-off
- Timing of rent collections at year end
What to look for in the filing
- FFO and AFFO as the REIT reports them
- The maintenance capex the REIT discloses
- Debt maturities and undrawn facilities
What would show the trap does not apply
- FFO or AFFO per share covers the dividend after recurring capex, and operating cash flow catches up with the dividend in the next year
- The gap to operating cash flow is a disclosed one-off (a lease settlement, a timing difference) that reverses
Look again: next filing.
What the statuses mean
Triggered: the filings show the pattern; read the normal explanations and the missing evidence before concluding anything. To review: one quarter or a weak signal; a reader's judgement, not a pattern. Not triggered: the pattern is absent on these figures. Insufficient data: the filings read so far do not hold what the rule needs; this is not a clean bill. Not applicable: the rule is not meant for this kind of company (a bank's working capital, a loss-making quarter's EPS growth). Out of date: the latest filing is more than fifteen months old.
Severity is what the pattern could mean for cash, value or solvency; confidence is how reliable the inputs and the reading are. The two are kept apart.
Record a view
A reader's judgement, grounds, what would change it and the next review; kept in the browser (needs JavaScript).
Every rule and the companies it triggers on → First Real Estate Investment Trust of New Jersey: cash flow →
Each rule reads the company's own filings by a fixed formula and says what would explain the same figures innocently. A triggered rule is a question to verify, not a finding of manipulation, and not a view on the stock. Missing data is shown as missing, never as clear. Not investment advice.