FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-K)

Cautionary Statement Identifying Important Factors That Could Cause FREIT
Maryland's Actual Results to Differ From Those Projected in Forward Looking
Statements.
Readers of this discussion are advised that the discussion should be read in
conjunction with the consolidated financial statements of FREIT Maryland
(including related notes thereto) appearing elsewhere in this Form 10-K. Certain
statements in this discussion may constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect FREIT Maryland's current expectations and are
based on estimates, projections, beliefs, data, methods and assumptions of
management of FREIT Maryland at the time of such statements regarding future
results of operations, economic performance, financial condition and
achievements of FREIT Maryland, and do not relate strictly to historical or
current facts. These forward-looking statements are identified through the use
of words such as "believe," "expect," "anticipate," "intend," "plan,"
"estimate," or words of similar meaning. Forward-looking statements involve
risks and uncertainties in predicting future results and conditions.
Although FREIT Maryland believes that the expectations reflected in such
forward-looking statements are based on reasonable assumptions, such statements
are subject to risks and uncertainties, which may cause the actual results to
differ materially from those projected. Such factors include, but are not
limited to the following: general economic and business conditions, including
the purchase of retail products over the Internet, which will, among other
things, affect demand for rental space, the availability of prospective tenants,
lease rents, the financial condition of tenants and the default rate on leases,
operating and administrative expenses and the availability of financing; adverse
changes in FREIT Maryland's real estate markets, including, among other things,
competition with other real estate owners, competition confronted by tenants at
FREIT Maryland's commercial properties, governmental actions and initiatives;
environmental/safety requirements; risks of real estate development and
acquisitions; and on-going negative effects of the COVID-19 pandemic on our
properties and tenants, and generally on our real estate assets and the real
estate markets in which we operate, and the global, U.S. and local economies
(see Special Note below). The risks with respect to the development of real
estate include: increased construction costs, inability to obtain construction
financing, or unfavorable terms of financing that may be available, unforeseen
construction delays and the failure to complete construction within budget.
Special Note Regarding the COVID-19 Pandemic:
On March 11, 2020, the World Health Organization declared the outbreak of the
novel coronavirus, known as COVID-19 ("COVID-19"), a pandemic. The full extent
of the effects of the COVID-19 pandemic, including the full extent of its
effects on the global, U.S., and local economies, and on FREIT Maryland and our
business, operating results, financial condition, properties, and tenants,
cannot yet be known. Any future developments in this regard will be highly
uncertain and cannot be predicted with any certainty, including the scope and
duration of the pandemic, actions taken by governmental authorities and other
third parties in response to the pandemic and the effects thereof, and the other
factors discussed above and throughout this report. The uncertain future
development of the COVID-19 pandemic could materially and adversely further
affect FREIT Maryland and our business, operating results, financial condition,
liquidity, and our properties and tenants.




OVERVIEW

FREIT Maryland is an equity real estate investment trust ("REIT") that is self-administered and externally managed. FREIT Maryland owns a portfolio of residential apartment and commercial properties. FREIT Maryland's revenues consist primarily of rental income and other related revenues from its residential and commercial properties and additional rents derived from operating commercial properties. FREIT Maryland's properties are primarily located in northern New Jersey, Maryland and New York.

COVID-19 Pandemic: The international spread of COVID-19 was declared a global
pandemic by the World Health Organization on March 11, 2020. The extent to which
this pandemic could continue to affect our financial condition, liquidity, and
results of operations is difficult to predict and depends on evolving factors,
including: duration, scope, government actions, and other social responses.
Beginning in March 2020 and throughout most of 2020, many states in the U.S.,
including New Jersey, New York and Maryland, where our properties are located,
implemented stay-at-home and shut down orders for all "non-essential" business
and activity in an aggressive effort to mitigate the spread of COVID-19. These
orders have continued to evolve resulting in the lifting of these restrictions
over the past year. Vaccinations for the COVID-19 virus have been widely
distributed among the general U.S. population which has resulted in loosened
restrictions previously mandated on our tenants identified as nonessential.
However, the potential emergence of vaccine-resistant variants of COVID-19 could
trigger restrictions to be put back in place. Such restrictions may include
mandatory business shut-downs, reduced business operations and social distancing
requirements.

As the impact of the pandemic evolves, it continues to cause uncertainty and
volatility in the financial markets. Many U.S. industries and businesses were
negatively affected and millions of people filed for unemployment resulting in
the U.S. unemployment rate rising to 14.7% in April 2020, which was the highest
recorded rate since the Great Depression. Since April 2020, the U.S unemployment
rate has declined to 4.6% as of October 2021, as many businesses continue to
reopen and rehire employees following many of the COVID-19 mandated shut down
orders being lifted. However, the jobless rate remains above

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the pre-pandemic levels of about 3.5%. The COVID-19 pandemic and the actions
taken by individuals, businesses and government authorities to reduce its spread
have caused substantial lost business revenue, changes in consumer behavior and
large reductions in liquidity and fair value of many assets.

Despite the COVID-19 pandemic and preventive measures taken to mitigate the
spread, our residential properties continued to generate cash flow. The average
annual occupancy rate for the residential properties (including the Pierre TIC)
has increased from approximately 93.7% for the fiscal year ended October 31,
2020 to approximately 96.1% for the fiscal year ended October 31, 2021. The
tenants at these properties, for the most part, continue to pay their rent.

At our commercial properties, with the exception of grocery stores and other
"essential" businesses, many of our retail tenants have been adversely affected
by the previously mandated shut downs and the continued lingering impact to
consumer sentiment and preferences for safety amid the reemergence of other
COVID-19 variants. While the overall average cash realization of monthly
billings as compared to monthly cash collections for the commercial properties
for the year ended October 31, 2021 has resumed to pre-pandemic levels, the
average annual occupancy rate has declined from approximately 79.7% for the
fiscal year ended October 31, 2020 to approximately 76.3% for the fiscal year
ended October 31, 2021. During the first quarter of Fiscal 2021, Pet Valu, Inc.,
a pet store tenant, vacated several stores located in shopping centers owned by
FREIT Maryland affiliates (Wayne PSC, Damascus Centre and Grande Rotunda) and
terminated the related leases early paying an aggregate lease termination fee in
the amount of approximately $260,000 (with a consolidated impact to FREIT
Maryland of approximately $140,000). The properties owned by Grande Rotunda and
Damascus Centre were sold on December 30, 2021 and January 10, 2022,
respectively. See Note 17 to FREIT Maryland's consolidated financial statements
for additional details. The Company is closely monitoring changes in the
collectability assessment of its tenant receivables as a result of certain
tenants suffering adverse financial consequences related to the COVID-19
pandemic. For the fiscal years ended October 31, 2021 and 2020, rental revenue
deemed uncollectible of approximately $1.3 million and $1.4 million (with a
consolidated impact to FREIT Maryland of approximately $0.8 million and $0.9
million), respectively, was classified as a reduction in rental revenue based on
our assessment of the probability of collecting substantially all of the
remaining rents for certain tenants. During the period beginning March 2020
through October 31, 2021, FREIT Maryland has applied, net of amounts
subsequently paid back by tenants, an aggregate of approximately $397,000 of
security deposits from its commercial tenants to outstanding receivables due. On
a case by case basis, FREIT has offered some commercial tenants deferrals of
rent over a specified time period totaling approximately $132,000 and $206,000
(with a consolidated impact to FREIT Maryland of approximately $81,000 and
$192,000) and rent abatements totaling approximately $239,000 and $238,000 (with
a consolidated impact to FREIT Maryland of approximately $158,000 and $156,000)
for the fiscal years ended October 31, 2021 and 2020, respectively. FREIT
Maryland currently remains in active discussions and negotiations with these
impacted retail tenants.

Cobb Theatre, an anchor tenant movie theatre at the Rotunda retail property
filed for bankruptcy and rejected its lease at the Rotunda property as of June
30, 2020. As a result of the rejection of this lease, uncollected rents in the
amount of approximately $0.3 million and a straight-line rent receivable of
approximately $0.4 million were reversed against revenue, and unamortized
leasing commissions in the amount of approximately $0.2 million were written off
and fully expensed in Fiscal 2020 resulting in a net impact to net income of
approximately $0.9 million (with a consolidated impact to FREIT Maryland of
approximately $0.5 million) for the year ended October 31, 2020. Tenant
improvements related to the Cobb Theatre with a net book value of approximately
$7.3 million (with a consolidated impact to FREIT Maryland of approximately $4.4
million) as of October 31, 2020 were deemed to be impaired, written off and
charged to operations in the consolidated statement of income for the fiscal
year ended October 31, 2020. On December 30, 2021, the property owned by Grande
Rotunda was sold. (See Notes 16 and 17 to FREIT Maryland's consolidated
financial statements for additional details.)

As a result of the negative impact of the COVID-19 pandemic at our commercial
properties, in Fiscal 2020 we were granted debt payment relief from certain of
our lenders on such properties in the form of deferral of principal and/or
interest payments for a three-month period, resulting in total deferred payments
of approximately $1,013,000, which will become due at the maturity of the loans.
As of October 31, 2021 and 2020, approximately $162,000 of this amount has been
repaid, there will be no further deferrals of principal and/or interest payments
on these loans and the balance due has been included in mortgages payable on the
consolidated balance sheets as of October 31, 2021 and 2020. (See Note 5 to
FREIT Maryland's consolidated financial statements for additional details).

For the fiscal year ended October 31, 2021, we have experienced a positive cash
flow from operations with cash provided by operations of approximately $12.2
million. This could change based on the duration of the pandemic, which is
uncertain. We believe that our cash balance as of October 31, 2021 of
approximately $35.9 million coupled with a $13 million available line of credit
(available through October 31, 2023, see Note 5) and the additional $7.5 million
in funds available to draw on the Boulders loan (See Note 17 for additional
details) will provide us with sufficient liquidity for at least the next twelve
months from the filing of this Form 10-K.

The extent of the effects of COVID-19 on our business, results of operations,
cash flows, value of our real estate assets and growth prospects is highly
uncertain and will ultimately depend on future developments, none of which can
be predicted with any certainty. (See "Item 1A. Risk Factors" for additional
details.) FREIT Maryland will continue to actively monitor the effects of the
pandemic, including governmental directives in the jurisdictions in which we
operate and the recommendations of public

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health authorities, and will, as needed, take further measures to adapt our business in the best interests of our stockholders and personnel. (See Note 16 to FREIT Maryland's consolidated financial statements for further details.)

Residential Properties: While our residential properties continue to generate
positive cash flow, the impact COVID-19 may have on these properties over the
next year is uncertain and will depend on the duration of the pandemic and the
recovery of the economy.

Commercial Properties: There continues to be uncertainty in the retail
environment that could have an adverse impact on FREIT Maryland's retail
tenants, which could have an adverse impact on FREIT Maryland. As the impact of
the pandemic evolves, the impact COVID-19 may have on the operating and
financial performance of our commercial properties is currently uncertain and
will depend on certain developments, including, among others, the impact of
COVID-19 on our tenants and the magnitude and duration of the pandemic,
including its impact on store closing and social distancing rules which may
impact a tenant's ability to generate sales at sufficient levels to cover
operating costs, including rent and the continued rollout of the vaccinations to
the population.

On May 4, 2021, Burlington Coat Factory Warehouse ("Burlington") amended its
lease at the Westridge Square Shopping Center (owned by WestFREIT) extending the
term of the lease for a period of one (1) year and ninety (90) days commencing
on December 1, 2021 and expiring on February 28, 2023 ("Fourth Extension
Period"). The fixed rent during this Fourth Extension Period was reduced from
$59,120 per month to $35,830 per month. Additionally, Burlington has the right
to terminate the lease at any time prior to the last day of the Fourth Extension
Period by providing at least twelve (12) months prior written notice of such
termination (the "Termination Notice"). In the event that Burlington delivers
the Termination Notice, the term of the lease shall automatically end on the
last day of the twelfth (12th) full calendar month immediately following receipt
of the Termination Notice. On January 7, 2022 the property owned by WestFREIT
was sold. (See Note 17 to FREIT Maryland's consolidated financial statements for
additional details.)

Reincorporation: On July 1, 2021, First Real Estate Investment Trust of New
Jersey ("FREIT") completed the change of its form of organization from a New
Jersey real estate investment trust to a Maryland corporation (the
"Reincorporation") which was approved by its shareholders at the annual meeting
of shareholders held on May 6, 2021. The Reincorporation changes the law
applicable to FREIT's affairs from New Jersey law to Maryland law and was
accomplished by the merger of FREIT with and into its wholly owned subsidiary,
First Real Estate Investment Trust of New Jersey, Inc. ("FREIT Maryland",
"Trust", "us", "we", "our" or the "Company"), a Maryland corporation. As a
result of the Reincorporation, the separate existence of FREIT has ceased and
FREIT Maryland has succeeded to all the business, properties, assets and
liabilities of FREIT. Holders of shares of beneficial interest in FREIT have
received one newly issued share of common stock of FREIT Maryland for each share
of FREIT that they own, without any action of stockholders required and all
treasury stock held by FREIT was retired.

FREIT Maryland is organized and will continue to operate in such a manner as to
qualify for taxation as a REIT under the Internal Revenue Code of 1986, as
amended, and its stock is traded on the over-the counter market under the
trading symbol FREVS. (See Note 1 to FREIT Maryland's consolidated financial
statements for further details.)

Debt Financing Availability: Financing has been available to FREIT Maryland and
its affiliates. The lis pendens filed in connection with the legal proceeding
between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC
may adversely affect FREIT Maryland's ability to refinance certain of its
residential properties. In accordance with certain loan agreements, FREIT
Maryland may be required to meet or maintain certain financial covenants
throughout the term of the loan. As a result of COVID-19 pandemic rent losses
and the planning for a potential redevelopment of its shopping center, as of
October 31, 2021, Wayne PSC was not, and currently is not, in compliance with a
look back debt service coverage ratio loan covenant contained in the mortgage
loan agreement held by People's United Bank in the amount of approximately $22.6
million as of October 31, 2021. Although the Company continues to make its
required debt service payments in accordance with the loan agreement, it is
unable to comply with this covenant. As such, the bank could exercise its
remedies under the loan agreement including, among other things, requiring a
partial or full repayment of the loan. The Company is currently working with the
lender to remediate this covenant default. As of the date of the filing of this
Form 10K report, the bank has not declared this loan to be in default. Until
such time as a definitive agreement is entered into, there can be no assurance
the loan covenant will be amended and the bank will not declare this loan to be
in default.

Operating Cash Flow: FREIT Maryland expects that cash provided by operating
activities and cash reserves will be adequate to cover mandatory debt service
payments (including payments of interest, but excluding balloon payments, which
are expected to be refinanced and/or extended), real estate taxes, recurring
capital improvements at its properties and other needs to maintain its status as
a REIT for at least a period of one year from the date of filing of this Form
10K report.



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SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

Pursuant to the SEC disclosure guidance for "Critical Accounting Policies," the
SEC defines Critical Accounting Policies as those that require the application
of management's most difficult, subjective, or complex judgments, often because
of the need to make estimates about the effect of matters that are inherently
uncertain and may change in subsequent periods.

Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, the preparation of which
takes into account estimates based on judgments and assumptions that affect
certain amounts and disclosures. Accordingly, actual results could differ from
these estimates. The accounting policies and estimates used, which are outlined
in Note 1 to our Consolidated Financial Statements which is presented elsewhere
in this Form 10-K, have been applied consistently as of October 31, 2021 and
2020, and for the years ended October 31, 2021, 2020 and 2019. We believe that
the following accounting policies or estimates require the application of
management's most difficult, subjective, or complex judgments:

Revenue Recognition: Base rents, additional rents based on tenants' sales volume
and reimbursement of the tenants' share of certain operating expenses are
generally recognized when due from tenants. The straight-line basis is used to
recognize base rents under leases if they provide for varying rents over the
lease terms. Straight-line rents represent unbilled rents receivable to the
extent straight-line rents exceed current rents billed in accordance with lease
agreements. Before FREIT Maryland can recognize revenue, it is required to
assess, among other things, its collectability.

Valuation of Long-Lived Assets: FREIT Maryland assesses the carrying value of
long-lived assets periodically, or whenever events or changes in circumstances
indicate that the carrying amounts of certain assets may not be recoverable.
When FREIT Maryland determines that the carrying value of long-lived assets may
be impaired, the measurement of any impairment is based on a projected
discounted cash flow method determined by FREIT Maryland's management. While we
believe that our discounted cash flow methods are reasonable, different
assumptions regarding such cash flows may significantly affect the measurement
of impairment.

Real Estate Development Costs: It is FREIT Maryland's policy to capitalize
pre-development costs, which generally include legal and professional fees and
other directly related third-party costs. Real estate taxes and interest costs
incurred during the development and construction phases are also capitalized.
FREIT Maryland ceases capitalization of these costs when the project or portion
thereof becomes operational, or when construction has been postponed. In the
event of postponement, capitalization of these costs will recommence once
construction on the project resumes.

See Note 1 to FREIT Maryland's consolidated financial statements for recently
issued accounting standards.



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Results of Operations:

Fiscal Years Ended October 31, 2021 and 2020

Summary revenues and net income for the fiscal years ended October 31, 2021 ("Fiscal 2021") and October 31, 2020 ("Fiscal 2020") are as follows:

                                                                Years Ended October 31,
                                                       2021                2020              Change
                                                        (in thousands, except per share amounts)
Real estate revenues:
 Commercial properties                             $      23,317       $      24,089       $     (772 )
 Residential properties                                   26,974              28,638           (1,664 )
   Total real estate revenues                             50,291              52,727           (2,436 )

Operating expenses:

 Real estate operating expenses                           22,294              22,922             (628 )
 Third party transaction costs                                 -               4,606           (4,606 )
 General and administrative expenses                       5,195               3,821            1,374
 Depreciation                                              9,300              10,341           (1,041 )
 Tenant improvement write-off due to COVID-19                  -           

   7,277           (7,277 )
   Total operating expenses                               36,789              48,967          (12,178 )

Operating income                                          13,502               3,760            9,742

Investment income                                            116                 204              (88 )

Gain on deconsolidation of subsidiary                          -              27,680          (27,680 )
Loss on investment in tenancy-in-common                     (295 )         

    (202 )            (93 )
Financing costs                                          (12,276 )           (14,122 )          1,846
   Net income                                              1,047              17,320          (16,273 )

Net (income) loss attributable to noncontrolling

  interests in subsidiaries                                 (120 )             3,233           (3,353 )
Net income attributable to common equity           $         927       $   

20,553 $ (19,626 )

Earnings per share - basic and diluted:            $        0.13       $   

2.94 $ (2.81 )

Weighted average shares outstanding:

 Basic                                                     7,019               6,992
 Diluted                                                   7,022               6,994

Real estate revenue for Fiscal 2021 decreased 4.6% to $50,291,000 compared to
$52,727,000 for Fiscal 2020. The decline in revenue was primarily attributable
to the following: (a) a decline in revenue of approximately $2.7 million
resulting from the deconsolidation of the operating results of the Pierre Towers
property from FREIT Maryland's operating results due to the conversion to a
tenancy-in-common form of ownership ("TIC") as of February 28, 2020; (b) a
decrease in reimbursement revenue of approximately $0.4 million primarily
attributed to the settle-ups of Common Area Maintenance with commercial tenants
in the fiscal quarter ended October 31, 2021; (c) a decline in revenue from the
commercial segment of approximately $0.4 million, (net of lease termination
payments received from PetValu in the amount of approximately $0.3 million and a
settlement payment in the amount of approximately $0.2 million received from
Cobb Theatre at the Rotunda retail property), primarily driven by a decline in
the average occupancy rate to 76.3% in Fiscal 2021 from 79.7% in Fiscal 2020;
(d) an insurance reimbursement received at the Icon property in Fiscal 2020 in
the amount of approximately $0.2 million; offset by (e) an increase in revenue
from the residential segment of approximately $1.2 million primarily driven by
an increase in the average occupancy rate to 96.5% in Fiscal 2021 from 94.0% in
Fiscal 2020 and an increase in base rents across most properties.

Net income attributable to common equity ("net income-common equity") for Fiscal
2021 was $927,000 ($0.13 per share basic and diluted), compared to $20,533,000
($2.94 per share basic and diluted) for Fiscal 2020.



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The schedule below provides a non-GAAP detailed analysis of the major changes that impacted net income-common equity for Fiscal 2021 and Fiscal 2020:

NON-GAAP NET INCOME COMPONENTS

                                                          Years Ended October 31,
                                                     2021          2020         Change
                                                              (In Thousands)

Income from real estate operations:

  Commercial properties                            $  12,094     $  12,755     $    (661 )
  Residential properties                              15,903        17,050        (1,147 )
   Total income from real estate operations           27,997        29,805        (1,808 )

Financing costs:
Fixed rate mortgages                                  (5,783 )      (7,401 )       1,618
Floating rate mortgages                               (5,159 )      (5,303 )         144
Other - Corporate interest                              (225 )        (329 )         104
Mortgage cost amortization                            (1,109 )      (1,089 )         (20 )
 Total financing costs                               (12,276 )     (14,122 )       1,846

Investment income                                        116           204           (88 )

General & administrative expenses:

  Accounting fees                                       (426 )        (558

) 132

  Legal and professional fees                         (2,477 )      (1,074

) (1,403 )

  Directors and consultant fees                         (950 )      (1,205

)         255
  Stock option expense                                   (42 )         (46 )           4
  Corporate expenses                                  (1,300 )        (938 )        (362 )

 Total general & administrative expenses              (5,195 )      (3,821

)      (1,374 )

Third party transaction costs                              -        (4,606 )       4,606
Depreciation                                          (9,300 )     (10,341 )       1,041

Loss on investment in tenancy-in-common                 (295 )        (202

) (93 )

  Adjusted net income (loss)                           1,047        (3,083

) 4,130

Tenant improvement write-off due to COVID-19               -        (7,277 )       7,277
Gain on deconsolidation of subsidiary                      -        27,680 

(27,680 )

  Net income                                           1,047        17,320  

(16,273 )

Net (income) loss attributable to noncontrolling

   interests in subsidiaries                            (120 )       3,233        (3,353 )
Net income attributable to common equity           $     927     $  20,553

   $ (19,626 )




Adjusted net income (loss) for Fiscal 2021 was net income of $1,047,000 ($0.15
per share basic and diluted) compared to net loss of $3,083,000 (($0.44) per
share basic and diluted) for Fiscal 2020. Adjusted net income (loss) is a
non-GAAP measure, which management believes is a useful and meaningful gauge to
investors of our operating performance, since it excludes the impact of unusual
and infrequent items specifically: a gain on deconsolidation of the Pierre
Towers property in Fiscal 2020; and a tenant improvement write-off due to
COVID-19 in Fiscal 2020.

The increase in adjusted net income for Fiscal 2021 was primarily driven by the
following: (a) third party transaction costs incurred in Fiscal 2020 of
approximately $4.6 million; (b) a decrease in net financing costs of
approximately $1.2 million (with a consolidated impact to FREIT Maryland of
approximately $0.9 million), (excluding the impact of the deconsolidation of the
operating results of the Pierre Towers from FREIT Maryland's operating results
of approximately $0.6 million in interest expense), primarily driven by a
decline in interest rates on variable mortgage loans; (c) a decline in
depreciation expense of approximately $0.6 million (with a consolidated impact
to FREIT Maryland of approximately $0.3 million), (excluding the impact of the
deconsolidation of the operating results of the Pierre Towers from FREIT
Maryland's operating results of approximately $0.5 million in depreciation
expense), primarily driven by the tenant improvements written off in Fiscal
2020; (d) a decline in expense for the reserve of uncollectible rents for
commercial tenants of approximately $0.4 million (with a consolidated impact to
FREIT Maryland of approximately $0.3 million); (e) an increase in revenue,
excluding the impact of the conversion of the Pierre Towers property to a TIC,
in the amount of approximately $0.2 million (with a consolidated impact to FREIT
Maryland of approximately $0.3 million) as explained above; (f) a decrease in
leasing costs in the amount of approximately $0.2 million (with a consolidated
impact to FREIT Maryland of approximately $0.1 million) resulting from the
write-off of unamortized lease commissions in Fiscal 2020 due to the Cobb
Theatres' rejection of its lease; offset by (g) an increase in general &
administrative expenses of approximately $1.4 million primarily driven by an
increase in legal costs in Fiscal 2021 attributed to the legal proceeding
between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC
and reincorporation expenses incurred in Fiscal 2021 to reincorporate in the
state of Maryland; (h) an increase in snow removal costs due to a harsher winter
in Fiscal 2021 of approximately $0.5 million (with a consolidated impact to
FREIT Maryland of approximately $0.4 million); (i) an increase in repairs and
maintenance expense of approximately $0.5 million (with a consolidated impact to
FREIT Maryland of approximately $0.3 million), (excluding the impact of the

deconsolidation of the

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operating results of the Pierre Towers from FREIT Maryland's operating results
of approximately $0.2 million in repairs and maintenance expense); and (j) a
decrease in adjusted net income with an impact of approximately $0.3 million
attributed to the Pierre Towers deconsolidation from FREIT Maryland's operating
results in Fiscal 2020 (with a consolidated impact to FREIT Maryland of
approximately $0.2 million). (Refer to the segment disclosure below for a more
detailed discussion of the financial performance of FREIT Maryland's commercial
and residential segments.)



SEGMENT INFORMATION

The following table sets forth comparative net operating income ("NOI") data for
FREIT Maryland's real estate segments and reconciles the NOI to consolidated net
income-common equity for Fiscal 2021, as compared to Fiscal 2020 (See below for
definition of NOI):




                                           Commercial                                            Residential                               Combined
                            Years Ended                                            Years Ended                                            Years Ended
                            October 31,            Increase (Decrease)             October 31,            Increase (Decrease)             October 31,
                         2021         2020           $              %           2021         2020            $             %           2021         2020
                                 (In Thousands)                                          (In Thousands)                                 (In Thousands)

Rental income $ 17,875 $ 18,769 $ (894 ) -4.8%

$ 26,515     $ 27,812     $    (1,297 )      -4.7%     $ 44,390     $ 46,581
Reimbursements            5,311        5,690          (379 )        -6.7%          157          150               7         4.7%        5,468        5,840
Other                       361           27           334        1237.0%          302          676            (374 )     -55.3%          663          703
Total revenue            23,547       24,486          (939 )        -3.8%  

26,974 28,638 (1,664 ) -5.8% 50,521 53,124

Operating expenses       11,223       11,334          (111 )        -1.0%       11,071       11,588            (517 )      -4.5%       22,294      

22,922

Net operating income $ 12,324 $ 13,152 $ (828 ) -6.3%

$ 15,903 $ 17,050 $ (1,147 ) -6.7% 28,227 30,202

Average Occupancy %       76.3%        79.7%                        -3.4%  

     96.5% *      94.0% *                       2.5%





  Reconciliation to consolidated net income-common equity:
  Deferred rents - straight lining                                                  (230 )        (397 )
  Investment income                                                                  116           204
  Third party transaction costs                                                        -        (4,606 )
  Gain on deconsolidation of subsidiary                                                -        27,680
  Loss on investment in tenancy-in-common                                           (295 )        (202 )
  General and administrative expenses                                             (5,195 )      (3,821 )
  Depreciation                                                                    (9,300 )     (10,341 )
  Tenant improvement write-off due to COVID-19                                         -        (7,277 )
  Financing costs                                                                (12,276 )     (14,122 )
        Net income                                                                 1,047        17,320

Net (income) loss attributable to noncontrolling interests in subsidiaries (120 ) 3,233

        Net income attributable to common equity                               $     927     $  20,553




*Average occupancy rate excludes the Pierre Towers property from all periods
presented as the property was deconsolidated and converted to a TIC effective
February 28, 2020.

NOI is based on operating revenue and expenses directly associated with the
operations of the real estate properties, but excludes deferred rents (straight
lining), depreciation, financing costs and other items. FREIT Maryland assesses
and measures segment operating results based on NOI.

Same Property NOI: FREIT Maryland considers same property net operating income
("Same Property NOI") to be a useful supplemental non-GAAP measure of its
operating performance. FREIT Maryland defines same property within both the
commercial and residential segments to be those properties that FREIT Maryland
has owned and operated for both the current and prior periods presented,
excluding those properties that FREIT Maryland acquired, sold or redeveloped
during those periods. Any newly acquired property that has been in operation for
less than a year, any property that is undergoing a major redevelopment but may
still be in operation at less than full capacity, and/or any property that has
been sold or deconsolidated is not considered same property.

NOI and Same Property NOI are non-GAAP financial measures and are not measures
of operating results or cash flow as measured by GAAP, and are not necessarily
indicative of cash available to fund cash needs and should not be considered an
alternative to cash flows as a measure of liquidity.

COMMERCIAL SEGMENT

The commercial segment contains eight (8) separate properties. Seven of these
properties are multi-tenanted retail or office centers, and one is single
tenanted on land located in Rockaway, New Jersey owned by FREIT Maryland from
which it receives monthly rental income from a tenant who has built and operates
a bank branch on the land.

As indicated in the table above under the caption Segment Information, total
revenue and NOI from FREIT Maryland's commercial segment for Fiscal 2021
decreased by 3.8% and 6.3%, respectively, as compared to Fiscal 2020. The
decline in revenue for Fiscal 2021 was primarily attributed to the following:
(a) a decrease in reimbursement revenue of approximately $0.4 million primarily
attributed to the settle-ups of Common Area Maintenance with commercial tenants
in the fiscal quarter ended October 31, 2021; and (b) a decline in revenue in
the amount of approximately $0.6 million (net of lease termination

                                      28

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payments received from PetValu in the amount of approximately $0.3 million and a
settlement payment in the amount of approximately $0.2 million received from
Cobb Theatre at the Rotunda retail property) primarily attributable to a decline
in the average occupancy rate to 76.3% in Fiscal 2021 from 79.7% in Fiscal 2020.
The decline in NOI for Fiscal 2021 was primarily attributable to the following:
(a) a decline in revenue of approximately $0.9 million as described above; (b)
an increase in snow removal costs due to a harsher winter in Fiscal 2021 of
approximately $0.3 million; (c) an increase in repairs and maintenance expense
of approximately $0.2 million; offset by (d) a decline in expense for the
reserve of uncollectible rents of approximately $0.4 million; and (e) a decrease
in leasing costs in the amount of approximately $0.2 million resulting from the
write-off of unamortized lease commissions in Fiscal 2020 due to the Cobb
Theatres' rejection of its lease.

Same Property Operating Results: FREIT Maryland's commercial segment currently
contains eight (8) same properties. (See definition of same property under
Segment Information above.) Since all of FREIT Maryland's commercial properties
are considered same properties in Fiscal 2021 and Fiscal 2020, refer to the
preceding paragraph for discussion of changes in same property results.

Leasing: The following tables reflect leasing activity at FREIT Maryland's
commercial properties for comparable leases (leases executed for spaces in which
there was a tenant at some point during the previous twelve-month period) and
non-comparable leases for Fiscal 2021.



                                                                                                                             Tenant
                                                                 Weighted            Weighted                             Improvement             Lease
                                                                  Average          Average Prior                           Allowance           Commissions
                           Number of         Lease Area         Lease Rate          Lease Rate         % Increase        (per Sq. Ft.)        (per Sq. Ft.)
       RETAIL:               Leases           (Sq. Ft.)        (per Sq.

Ft.)       (per Sq. Ft.)       (Decrease)             (a)                  (a)

Comparable leases (b)                23           148,190     $         13.83     $         16.64            -16.9%     $              -     $           0.21

Non-comparable leases                 7            12,514     $         32.79                N/A               N/A      $           1.27     $           1.63

Total leasing activity               30           160,704





                                                                                                                              Tenant
                                                                 Weighted            Weighted                              Improvement              Lease
                                                                  Average          Average Prior                            Allowance            Commissions
                           Number of         Lease Area         Lease Rate          Lease Rate         % Increase         (per Sq. Ft.)         (per Sq. Ft.)
       OFFICE:               Leases           (Sq. Ft.)        (per Sq. Ft.)       (per Sq. Ft.)       (Decrease)              (a)                   (a)

Comparable leases (b)                13            30,605     $         33.01     $         32.07              2.9%     $                -     $           0.34

Non-comparable leases                 2             4,053     $         23.72                N/A               N/A      $                -     $           1.34

Total leasing activity               15            34,658

(a) These leasing costs are presented as annualized costs per square foot and are allocated uniformly over the lease term.

(b) This includes new tenant leases and/or modifications/extensions/renewals of
existing tenant leases.





During the first quarter of Fiscal 2021, Pet Valu, Inc., a pet store tenant,
vacated several stores located in shopping centers owned by FREIT Maryland
affiliates (Wayne PSC, Damascus Centre and Grande Rotunda) and terminated the
related leases early paying an aggregate lease termination fee in the amount of
approximately $260,000 (with a consolidated impact to FREIT Maryland of
approximately $140,000).

On May 4, 2021, Burlington amended its lease at the Westridge Square Shopping
Center (owned by WestFREIT) extending the term of the lease for a period of one
(1) year and ninety (90) days commencing on December 1, 2021 and expiring on
February 28, 2023 ("Fourth Extension Period"). The fixed rent during this Fourth
Extension Period was reduced from $59,120 per month to $35,830 per month.
Additionally, Burlington has the right to terminate the lease at any time prior
to the last day of the Fourth Extension Period by providing at least twelve (12)
months prior written notice of such termination (the "Termination Notice"). In
the event that Burlington delivers the Termination Notice, the term of the lease
shall automatically end on the last day of the twelfth (12th) full calendar
month immediately following receipt of the Termination Notice. On January 7,
2022 the property owned by WestFREIT was sold. (See Note 17 to FREIT Maryland's
consolidated financial statements for additional details.)

On April 26, 2020, CB Theatre Experience, LLC filed for protection under Chapter
11 of the bankruptcy code as disclosed in the bankruptcy filings. The CB Theatre
Experience, LLC (known as "Cobb Theatre") at the Rotunda retail property in
Baltimore, Maryland has been closed since April 2020 due to the mandated shut
down related to the COVID-19 pandemic and on July 14, 2020 rejected its lease at
this property as of June 30, 2020. During the first quarter ended January 31,
2021, FREIT Maryland received a settlement payment from Cobb Theatre in the
amount of approximately $0.2 million (with a consolidated impact to FREIT
Maryland of approximately $0.1 million).

The properties owned by Grande Rotunda, WestFREIT and Damascus Centre were sold
on December 30, 2021, January 7, 2022 and January 10, 2022, respectively. See
Note 17 to FREIT Maryland's consolidated financial statements for additional
details.

                                      29

  Table of Contents

RESIDENTIAL SEGMENT

FREIT Maryland currently operates seven (7) multi-family apartment buildings or
complexes totaling 1,171 apartment units. On February 28, 2020, FREIT Maryland
reorganized its subsidiary S and A Commercial Associates Limited Partnership
("S&A") from a partnership into a TIC. Prior to this reorganization, FREIT
Maryland owned a 65% membership interest in S&A, which owned 100% of the Pierre
Towers property located in Hackensack, New Jersey through its 100% interest in
Pierre Towers, LLC. Accordingly, FREIT Maryland consolidated the financial
statements of S&A and its subsidiary to include 100% of the subsidiary's assets,
liabilities, operations and cash flows with the interest not owned by FREIT
Maryland reflected as "noncontrolling interests in subsidiary" and all
significant intercompany accounts and transactions were eliminated in
consolidation.

Pursuant to the TIC agreement, FREIT Maryland ultimately acquired a 65%
undivided interest in the Pierre Towers property which was formerly owned by
S&A. Based on the guidance of Accounting Standards Codification 810,
"Consolidation", FREIT Maryland's investment in the TIC is accounted for under
the equity method of accounting. While FREIT Maryland's effective ownership
percentage interest in the Pierre Towers property remains unchanged after the
reorganization to a TIC, FREIT Maryland no longer has a controlling interest as
the TIC is now under joint control. (See Note 3 to FREIT Maryland's consolidated
financial statements for further details.)

As indicated in the table above under the caption Segment Information, total
revenue and NOI from FREIT Maryland's residential segment for Fiscal 2021
decreased by 5.8% and 6.7%, respectively, as compared to Fiscal 2020. The
decline in revenue for Fiscal 2021 was primarily attributable to the following:
(a) a deconsolidation of the operating results of the Pierre Towers property
from FREIT Maryland's operating results due to the conversion to a TIC as of
February 28, 2020 resulting in a decline in revenue of approximately $2.7
million; (b) an insurance reimbursement received at the Icon property in Fiscal
2020 in the amount of approximately $0.2 million; offset by (c) an increase in
revenue of approximately $1.2 million driven by an increase in the average
occupancy rate by approximately 2.5% over Fiscal 2020 and an increase in base
rent across most properties. The decline in NOI for Fiscal 2021 was primarily
attributable to the following: (a) a deconsolidation of the operating results of
the Pierre Towers property from FREIT Maryland's operating results due to the
conversion to a TIC as of February 28, 2020 resulting in a decline in NOI of
approximately $1.3 million; (b) an increase in repairs and maintenance expense
of approximately $0.3 million; (c) an increase in operating expenses of
approximately $0.3 million primarily driven by an increase in snow removal costs
due to a harsher winter in Fiscal 2021 and an increase in janitorial costs; (d)
an increase in advertising expense of approximately $0.1 million; and (e) an
increase in expense for the reserve of uncollectible rents of approximately $0.1
million; offset by (f) an increase in revenue of approximately $1 million as
explained above (excluding the impact of the Pierre Towers deconsolidation).

Same Property Operating Results: FREIT Maryland's residential segment currently
contains seven (7) same properties. (See definition of same property under
Segment Information above.) The Pierre Towers property was excluded from same
property results for both fiscal years because this property was deconsolidated
and converted to a TIC as of February 28, 2020. Same property revenue and NOI
increased by 3.8% and 1.1%, respectively, from Fiscal 2020. The changes resulted
from the factors discussed in the immediately preceding paragraph.

FREIT Maryland's residential revenue is principally composed of monthly
apartment rental income. Total rental income is a factor of occupancy and
monthly apartment rents. Monthly average residential rents at the end of Fiscal
2021 and Fiscal 2020 were $1,998 and $1,953, respectively. A 1% decline in
annual average occupancy, or a 1% decline in average rents from current levels,
results in an annual revenue decline of approximately $281,000 and $276,000,
respectively.

Capital expenditures: Since all of FREIT Maryland's apartment communities, with
the exception of the Boulders, Regency, Icon and Station Place properties, were
constructed more than 25 years ago, FREIT Maryland tends to spend more in any
given year on maintenance and capital improvements than may be spent on newer
properties. As a result of the COVID-19 global pandemic, only capital
improvements deemed essential are being made at this time. Funds for these
capital projects will be available from cash flow from the property's operations
and cash reserves.



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FINANCING COSTS



                                                                         Years Ended October 31,
                                                                    2021                         2020
                                                                        (In Thousands of Dollars)
Fixed rate mortgages (a):
  1st Mortgages
  Existing                                                     $        5,783               $         7,401
  New                                                                       -                             -
Variable rate mortgages:
  1st Mortgages
  Existing                                                              5,159                         5,211
  New                                                                       -                            92
Other                                                                     225                           329
Total financing costs, gross                                           11,167                        13,033
   Amortization of mortgage costs                                       1,109                         1,089
Total financing costs, net                                     $       12,276               $        14,122

(a) Includes the effect of interest rate swap contracts which effectively convert the floating interest rate to a fixed interest rate over the term of the loan.

Total net financing costs for Fiscal 2021 decreased by approximately $1,846,000
or 13.1%, compared to Fiscal 2020 which is attributable to the following: (a) a
decline in interest on the variable mortgage loans for the Rotunda and WestFREIT
properties of approximately $1,105,000 resulting from lower interest rates (See
Note 17 to FREIT Maryland's consolidated financial statements for further
details); and (b) the deconsolidation of the Pierre Towers property from FREIT
Maryland's operating results due to the conversion to a TIC as of February 28,
2020 resulting in a decrease in net financing costs of approximately $645,000.
(See Note 3 to FREIT Maryland's consolidated financial statements for further
details on the deconsolidation of the Pierre Towers property.)

INVESTMENT INCOME

Investment income for Fiscal 2021 was $116,000 as compared to $204,000 for
Fiscal 2020. Investment income is principally derived from interest earned from
cash on deposit in institutional money market funds and interest earned from
secured loans receivable (loans made to Hekemian & Co. employees, including
Robert S. Hekemian, Jr., the Chief Executive Officer, President and a Director
of FREIT Maryland, David B. Hekemian, a Director of FREIT Maryland, Allan Tubin,
the Chief Financial Officer and Treasurer of FREIT Maryland and certain other
members of the immediate family of the late Robert S. Hekemian, FREIT Maryland's
former Chairman, Chief Executive Officer and consultant of FREIT Maryland) for
their equity investments (through Rotunda 100, LLC) in Grande Rotunda, LLC, a
limited liability company in which FREIT Maryland owns a 60% equity interest.
(See Note 8 to FREIT Maryland's consolidated financial statements for additional
details.)

GENERAL AND ADMINISTRATIVE EXPENSES ("G&A")

G&A expense for Fiscal 2021 was $5,195,000 as compared to $3,821,000 for Fiscal
2020. The primary components of G&A are accounting/auditing fees, legal and
professional fees, directors' and consultant fees and corporate expenses. The
increase in G&A costs for Fiscal 2021 was primarily driven by the following: (a)
an increase in legal costs of approximately $1,403,000 primarily resulting from
the legal proceeding between FREIT Maryland and certain of its affiliates and
Sinatra Properties, LLC; (b) an increase in corporate expenses of approximately
$362,000 primarily attributed to reincorporation expenses incurred in Fiscal
2021 of approximately $493,000 to reincorporate in the state of Maryland offset
by costs incurred in Fiscal 2020 for the formation and transfer of the Pierre
subsidiary to a TIC of approximately $293,000; offset by (c) a decline in
directors' and consultant fees of approximately $255,000.

THIRD PARTY TRANSACTION COSTS

The Special Committee of the Board ("Special Committee") incurred on behalf of
the Company third party transaction costs for advisory, legal and other expenses
primarily related to the Purchase and Sale Agreement and the Plan of Liquidation
(See Notes 14 and 15 for additional details) in the amount of approximately $0
for Fiscal 2021 as compared to approximately $4,606,000 for Fiscal 2020. On
April 30, 2020, the Sellers delivered written notice to the Purchaser of the
Sellers' termination of the Purchase and Sale Agreement (See Note 14 for
details) and on May 7, 2020, the Board approved the elimination of the Special
Committee. No further transaction costs were incurred thereafter.

DEPRECIATION

Depreciation expense from operations for Fiscal 2021 was $9,300,000 as compared
to $10,341,000 for Fiscal 2020. The decline in depreciation expense in Fiscal
2021 was primarily attributable to the following: (a) a decline in the amount of
approximately $460,000 resulting from the deconsolidation of the operating
results of the Pierre Towers property from FREIT Maryland's operating results as
of February 28, 2020 (See Note 3 to FREIT Maryland's consolidated financial
statements for further details); and (b) the remainder of the decline is
primarily related to tenant improvements written off in Fiscal 2020.

                                      31

  Table of Contents

Results of Operations:

Fiscal Years Ended October 31, 2020 and 2019

Summary revenues and net income for Fiscal 2020 and October 31, 2019 ("Fiscal
2019") are as follows:



                                                                Years Ended October 31,
                                                       2020                2019             Change
                                                       (in thousands, except per share amounts)
Real estate revenues:
 Commercial properties                             $      24,089       $      27,122       $  (3,033 )
 Residential properties                                   28,638              33,155          (4,517 )
   Total real estate revenues                             52,727              60,277          (7,550 )

Operating expenses:

 Real estate operating expenses                           22,922           

26,062 (3,140 )

 Third party transaction costs                             4,606               1,416           3,190
 General and administrative expenses                       3,821               2,633           1,188
 Depreciation                                             10,341              11,339            (998 )
 Tenant improvement write-off due to COVID-19              7,277                   -           7,277
   Total operating expenses                               48,967              41,450           7,517

Operating income                                           3,760           

18,827 (15,067 )

Investment income                                            204                 360            (156 )
Unrealized loss on interest rate cap contract                  -                (160 )           160
Gain on sale of property                                       -                 836            (836 )
Gain on deconsolidation of subsidiary                     27,680                   -          27,680
Loss on investment in tenancy-in-common                     (202 )         

       -            (202 )
Financing costs                                          (14,122 )           (18,070 )         3,948
   Net income                                             17,320               1,793          15,527

Net loss (income) attributable to noncontrolling

  interests in subsidiaries                                3,233                  (6 )         3,239
Net income attributable to common equity           $      20,553       $   

1,787 $ 18,766

Earnings per share - basic and diluted:            $        2.94       $   

0.26 $ 2.68

Weighted average shares outstanding:

 Basic                                                     6,992               6,940
 Diluted                                                   6,994               6,940

Real estate revenue for Fiscal 2020 decreased 12.5% to $52,727,000 compared to
$60,277,000 for Fiscal 2019. The decline in revenue was primarily attributable
to the following: (a) a decline in revenue of approximately $5 million resulting
from the deconsolidation of the operating results of the Pierre Towers property
from FREIT Maryland's operating results due to the conversion to a TIC as of
February 28, 2020; (b) a reduction in total revenue in the amount of
approximately $1.1 million, which includes the write-off of straight-line rent
in the amount of approximately $0.4 million, as compared to Fiscal 2019 due to
the rejection of the lease for the Cobb Theatre at the Rotunda retail property
as of June 30, 2020 resulting from the Cobb Theatre bankruptcy filing; (c) a
reduction in total revenue in the amount of approximately $1.4 million as
compared to Fiscal 2019 due to rental revenue being deemed uncollectible and
classified as a reduction in rental revenue primarily attributed to commercial
tenants suffering adverse financial consequences as a result of the COVID-19
pandemic; (d) a decline in total revenue of approximately $0.4 million driven by
a decline in the annual average occupancy rate for the commercial properties
from 81.5% in Fiscal 2019 to 79.7% in Fiscal 2020; (e) a decrease in revenue of
approximately $0.2 million attributed to commercial rent abatements resulting
from the COVID-19 pandemic; offset by (f) an increase in the residential segment
of approximately $0.5 million driven by insurance reimbursements received in
Fiscal 2020 related to a fire at each of the Pierre Towers and Icon properties
and an increase in base rent at most of these properties.

Net income attributable to common equity ("net income-common equity") for Fiscal
2020 was $20,553,000 ($2.94 per share basic and diluted), compared to $1,787,000
($0.26 per share basic and diluted) for Fiscal 2019 primarily as a result of the
non-cash gain on the deconsolidation of a subsidiary (See Note 3 to FREIT
Maryland's consolidated financial statements for additional details).



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The schedule below provides a non-GAAP detailed analysis of the major changes
that impacted revenue and net income-common equity for Fiscal 2020 and Fiscal
2019:

NON-GAAP NET INCOME COMPONENTS

                                                         Years Ended October 31,
                                                     2020          2019         Change
                                                              (In Thousands)

Income from real estate operations:

  Commercial properties                            $  12,755     $  15,427     $ (2,672 )
  Residential properties                              17,050        18,788       (1,738 )
     Total income from real estate operations         29,805        34,215       (4,410 )

Financing costs:
Fixed rate mortgages                                  (7,401 )      (8,953 )      1,552
Floating rate mortgages                               (5,303 )      (7,384 )      2,081
Other - Corporate interest                              (329 )        (594 )        265
Mortgage cost amortization                            (1,089 )      (1,139 )         50
 Total financing costs                               (14,122 )     (18,070 )      3,948

Investment income                                        204           360         (156 )

Unrealized loss on interest rate cap contract              -          (160

) 160

General & administrative expenses:

  Accounting fees                                       (558 )        (654

) 96

  Legal and professional fees                         (1,074 )        (135

) (939 )

  Directors and consultant fees                       (1,205 )      (1,164

)        (41 )
  Stock option expense                                   (46 )        (124 )         78
  Corporate expenses                                    (938 )        (556 )       (382 )

 Total general & administrative expenses              (3,821 )      (2,633

)     (1,188 )

Third party transaction costs                         (4,606 )      (1,416 )     (3,190 )
Depreciation                                         (10,341 )     (11,339 )        998

Loss on investment in tenancy-in-common                 (202 )           - 

(202 )

  Adjusted net (loss) income                          (3,083 )         957  

(4,040 )

Tenant improvement write-off due to COVID-19          (7,277 )           -       (7,277 )
Gain on sale of property                                   -           836         (836 )
Gain on deconsolidation of subsidiary                 27,680             - 

27,680

  Net income                                          17,320         1,793  

15,527

Net loss (income) attributable to noncontrolling

   interests in subsidiaries                           3,233            (6 )      3,239
Net income attributable to common equity           $  20,553     $   1,787

   $ 18,766




Adjusted net loss for Fiscal 2020 was $3,083,000 (($0.44) per share basic and
diluted) compared to net income of $957,000 ($0.14 per share basic and diluted)
for Fiscal 2019. Adjusted net loss/income is a non-GAAP measure, which
management believes is a useful and meaningful gauge to investors of our
operating performance, since it excludes the impact of unusual and infrequent
items specifically: a gain on deconsolidation of the Pierre Towers property in
Fiscal 2020; a tenant improvement write-off due to COVID-19 in Fiscal 2020; and
a gain related to the sale of the property in Patchogue, New York in Fiscal
2019.

The adjusted net loss for Fiscal 2020 was primarily driven by the following: (a)
an increase in third party transaction costs incurred in Fiscal 2020 of
approximately $3.2 million; (b) a reduction in total revenue, excluding the
impact of the conversion of the Pierre property to a TIC, in the amount of
approximately $2.8 million (with a consolidated impact to FREIT Maryland of
approximately $1.5 million) as explained above; (c) an increase in G&A expenses
of approximately $1.2 million primarily driven by an increase in legal costs of
approximately $1 million attributed to the legal proceeding between FREIT
Maryland and certain of its affiliates and Sinatra Properties, LLC and an
increase of approximately $0.3 million in lender and legal fees related to the
conversion of the Pierre Towers partnership to a TIC in Fiscal 2020; (d) an
increase in expense for the reserve of uncollectible rents of approximately $0.4
million (with a consolidated impact to FREIT Maryland of approximately $0.3
million) primarily resulting from the COVID-19 pandemic impact on certain
commercial non-essential tenants due to mandated shut downs and imposed
restrictions; (e) an increase in leasing costs due to the Cobb Theatres'
rejection of its lease in the amount of approximately $0.2 million; offset by
(f) a decrease in financing costs of approximately $2.7 million (with a
consolidated impact to FREIT Maryland of approximately $1.8 million), (excluding
the impact of the deconsolidation of the operating results of the Pierre Towers
from FREIT Maryland's operating results of approximately $1.3 million in
interest expense), primarily attributed to the decline in interest rates on
variable mortgage loans; and (g) a decline in repairs and maintenance expense of
approximately $1.1 million (with a consolidated impact to FREIT Maryland of
approximately $0.8 million) due to the deferral of non-essential

                                      33

Table of Contents

maintenance projects across all properties in Fiscal 2020 in an effort to keep
such costs lower while the Company has experienced a loss of revenues at the
commercial properties and to adjust to the difficulty in hiring contractors due
to imposed COVID-19 restrictions and mandates. See Note 3 to FREIT Maryland's
consolidated financial statements for further details on the deconsolidation of
the Pierre Towers property to a TIC. (Refer to the segment disclosure below for
a more detailed discussion of the financial performance of FREIT Maryland's
commercial and residential segments.)

SEGMENT INFORMATION

The following table sets forth comparative net operating income ("NOI") data for
FREIT Maryland's real estate segments and reconciles the NOI to consolidated net
income-common equity for Fiscal 2020, as compared to Fiscal 2019 (See below for
definition of NOI):



                                               Commercial                                             Residential                                Combined
                                Years Ended                                            Years Ended                                              Years Ended
                                October 31,            Increase (Decrease)             October 31,              Increase (Decrease)             October 31,
                             2020         2019           $              %           2020          2019             $             %           2020         2019
                                      (In Thousands)                                          (In Thousands)                                  (In

Thousands)
Rental income              $ 18,769     $ 20,324     $   (1,555 )       -7.7%     $ 27,812      $ 32,592      $    (4,780 )     -14.7%     $ 46,581     $ 52,916
Reimbursements                5,690        6,295           (605 )       -9.6%          150           134               16        11.9%        5,840        6,429
Other                            27           73            (46 )      -63.0%          676           449              227        50.6%          703          522
Total revenue                24,486       26,692         (2,206 )       -8.3%       28,638        33,175           (4,537 )     -13.7%       53,124       59,867

Operating expenses           11,334       11,694           (360 )       -3.1%       11,588        14,368           (2,780 )     -19.3%       22,922       26,062

Net operating income $ 13,152 $ 14,998 $ (1,846 ) -12.3% $ 17,050 $ 18,807 $ (1,757 ) -9.3% 30,202 33,805 Gain on sale of property $ - $ 836 $ (836 ) -100.0% $ - $ - $ - 0.0%

            -          836

Average Occupancy %           79.7%        81.5% *                      -1.8%        94.0% **      95.6% **                      -1.6%





  Reconciliation to consolidated net income-common equity:
  Deferred rents - straight lining                                                  (397 )         410
  Investment income                                                                  204           360
  Unrealized loss on interest rate cap contract                                        -          (160 )
  Third party transaction costs                                                   (4,606 )      (1,416 )
  Gain on deconsolidation of subsidiary                                           27,680             -
  Loss on investment in tenancy-in-common                                           (202 )           -
  General and administrative expenses                                             (3,821 )      (2,633 )
  Depreciation                                                                   (10,341 )     (11,339 )
  Tenant improvement write-off due to COVID-19                                    (7,277 )           -
  Financing costs                                                                (14,122 )     (18,070 )
        Net income                                                                17,320         1,793

Net loss (income) attributable to noncontrolling interests in subsidiaries 3,233

            (6 )
        Net income attributable to common equity                               $  20,553     $   1,787

*Average occupancy rate excludes the Patchogue, New York property as the property was sold in February 2019.

**Average occupancy rate excludes the Pierre Towers property from all periods
presented as the property was deconsolidated and converted to a TIC effective
February 28, 2020.

NOI is based on operating revenue and expenses directly associated with the
operations of the real estate properties, but excludes deferred rents (straight
lining), depreciation, financing costs and other items. FREIT Maryland assesses
and measures segment operating results based on NOI.

Same Property NOI: FREIT Maryland considers same property net operating income
("Same Property NOI") to be a useful supplemental non-GAAP measure of its
operating performance. FREIT Maryland defines same property within both the
commercial and residential segments to be those properties that FREIT Maryland
has owned and operated for both the current and prior periods presented,
excluding those properties that FREIT Maryland acquired or redeveloped during
those periods. Any newly acquired property that has been in operation for less
than a year, any property that is undergoing a major redevelopment but may still
be in operation at less than full capacity, and/or any property that has been
sold or deconsolidated is not considered same property.

NOI and Same Property NOI are non-GAAP financial measures and are not measures
of operating results or cash flow as measured by GAAP, and are not necessarily
indicative of cash available to fund cash needs and should not be considered an
alternative to cash flows as a measure of liquidity.

COMMERCIAL SEGMENT

The commercial segment contains eight (8) separate properties. Seven of these
properties are multi-tenanted retail or office centers, and one is single
tenanted on land located in Rockaway, New Jersey owned by FREIT Maryland from
which it receives monthly rental income from a tenant who has built and operates
a bank branch on the land. On February 8, 2019, FREIT Maryland sold a commercial
building, formerly occupied as a Pathmark supermarket in Patchogue, New York for
a sales price of $7.5 million. The sale of this property, which had a carrying
value of approximately $6.2 million, resulted in a gain of

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approximately $0.8 million net of sales fees and commissions. Net cash proceeds
of approximately $2 million were realized after paying off the related mortgage
on this property in the amount of approximately $5.2 million. The sale of this
property eliminated an operating loss of approximately $0.8 million ($0.12 per
share) incurred, annually, since Pathmark vacated the building in December 2015
(see Note 2 to FREIT Maryland's consolidated financial statements for further
details).

As indicated in the table above under the caption Segment Information, total
revenue and NOI from FREIT Maryland's commercial segment for Fiscal 2020
decreased by 8.3% and 12.3%, respectively, as compared to Fiscal 2019. The
decline in revenue for Fiscal 2020 was primarily attributable to the following:
(a) a reduction in revenue as compared to Fiscal 2019 resulting from Cobb
Theatre's rejection of its lease due to the Cobb Theatre bankruptcy filing as of
June 30, 2020 at the Rotunda retail property in the amount of approximately $0.7
million (excluding the straight-line rent receivable write-off of approximately
$0.4 million); (b) a reduction in total revenue in the amount of approximately
$1.2 million (excluding the straight-line rent receivable write-off of
approximately $0.2 million) as compared to Fiscal 2019 due to rental revenue
being deemed uncollectible and classified as a reduction in rental revenue
primarily attributed to commercial tenants suffering adverse financial
consequences as a result of the COVID-19 pandemic; (c) a decrease in revenue of
approximately $0.2 million attributed to commercial rent abatements resulting
from the COVID-19 pandemic; and (d) the remainder of the decline of
approximately $0.1 million attributed to the 1.8% decrease in the average annual
occupancy rate in Fiscal 2020 as compared to Fiscal 2019. The decline in NOI for
Fiscal 2020 was primarily attributable to the following: (a) a decrease in
revenue of approximately $2.2 million as explained above; (b) an increase in
expense for the reserve of uncollectible rents of approximately $0.3 million
primarily resulting from the COVID-19 pandemic impact; (c) a write-off of
unamortized leasing costs related to Cobb Theatres' rejection of its lease in
the amount of approximately $0.2 million; offset by (d) a decline in repairs and
maintenance expense of approximately $0.7 million due to the deferral of
non-essential maintenance projects across all properties in Fiscal 2020 in an
effort to keep such costs lower while the Company has experienced a loss of
revenues at the commercial properties and to adjust to the difficulty in hiring
contractors due to imposed COVID-19 restrictions and mandates.

Same Property Operating Results: FREIT Maryland's commercial segment currently
contains eight (8) same properties. (See definition of same property under
Segment Information above.) The Patchogue property was excluded from same
property results for Fiscal 2020 and 2019 because this property was sold in
February 2019. Same property revenue and NOI for Fiscal 2020 decreased by 8.3%
and 12.9%, respectively, as compared to Fiscal 2019. The changes resulted from
the factors discussed in the immediately preceding paragraph.

Leasing: The following tables reflect leasing activity at FREIT Maryland's
commercial properties for comparable leases (leases executed for spaces in which
there was a tenant at some point during the previous twelve-month period) and
non-comparable leases for Fiscal 2020.



                                                                                                                      Tenant
                                                            Weighted            Weighted                            Improvement            Lease
                                                             Average          Average Prior                          Allowance          Commissions
                         Number of       Lease Area        Lease Rate          Lease Rate         % Increase       (per Sq. Ft.)       (per Sq. Ft.)
       RETAIL:             Leases        (Sq. Ft.)        (per Sq. Ft.)       (per Sq. Ft.)       (Decrease)            (a)                 (a)

Comparable leases (b)            10           20,619     $         27.75     $         32.07           -13.5%     $             -     $          0.36

Non-comparable leases             1            1,730     $         14.63                N/A              N/A      $             -     $          0.80

Total leasing activity           11           22,349





                                                                                                                       Tenant
                                                             Weighted            Weighted                            Improvement            Lease
                                                              Average          Average Prior                          Allowance          Commissions
                          Number of       Lease Area        Lease Rate          Lease Rate         % Increase      (per Sq. Ft.)        (per Sq. Ft.)
       OFFICE:             Leases         (Sq. Ft.)        (per Sq. Ft.)       (per Sq. Ft.)       (Decrease)            (a)                 (a)

Comparable leases (b)              1              444     $         35.87     $         32.08            11.8%     $             -     $           0.68

Non-comparable leases              -                -     $             -                N/A              N/A      $             -     $              -

Total leasing activity             1              444

(a) These leasing costs are presented as annualized costs per square foot and are allocated uniformly over the lease term.

(b) This includes new tenant leases and/or modifications/extensions/renewals of
existing tenant leases.



RESIDENTIAL SEGMENT

FREIT Maryland currently operates seven (7) multi-family apartment buildings or
complexes totaling 1,171 apartment units. On February 28, 2020, FREIT Maryland
reorganized its subsidiary S and A Commercial Associates Limited Partnership
("S&A") from a partnership into a TIC. Prior to this reorganization, FREIT
Maryland owned a 65% partnership interest in S&A, which owned 100% of the Pierre
Towers property located in Hackensack, New Jersey through its 100% interest in
Pierre Towers, LLC. Accordingly, FREIT Maryland consolidated the financial
statements of S&A and its subsidiary to include 100% of the subsidiary's assets,
liabilities, operations and cash flows with the interest not owned by FREIT

Maryland reflected as

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"noncontrolling interests in subsidiary" and all significant intercompany accounts and transactions were eliminated in consolidation.

Pursuant to the TIC agreement, FREIT Maryland ultimately acquired a 65%
undivided interest in the Pierre Towers property which was formerly owned by
S&A. Based on the guidance of Accounting Standards Codification 810,
"Consolidation", FREIT Maryland's investment in the TIC is accounted for under
the equity method of accounting. While FREIT Maryland's effective ownership
percentage interest in the Pierre Towers property remains unchanged after the
reorganization to a TIC, FREIT Maryland no longer has a controlling interest as
the TIC is now under joint control. Since FREIT Maryland retained a
noncontrolling financial interest in the TIC, and the deconsolidation (as of
February 28, 2020) of the subsidiary is not the result of a nonreciprocal
transfer to owners, a gain on deconsolidation in the amount of approximately
$27.7 million was recognized in the accompanying consolidated statement of
income for the year ended October 31, 2020. This gain was measured at the date
of deconsolidation as the difference between the fair value of the investment in
the TIC at the date the entity was deconsolidated and the carrying amount of the
former subsidiary's assets and liabilities. (See Note 3 to FREIT Maryland's
consolidated financial statements for further details.)

As indicated in the table above under the caption Segment Information, total
revenue and NOI from FREIT Maryland's residential segment for Fiscal 2020
decreased by 13.7% and 9.3%, respectively, as compared to Fiscal 2019. The
decline in revenue for Fiscal 2020 was primarily attributable to the following:
(a) a decline in revenue of approximately $5 million resulting from the
deconsolidation of the operating results of the Pierre Towers property from
FREIT Maryland's operating results due to the conversion to a TIC as of February
28, 2020; offset by (b) insurance reimbursements received in Fiscal 2020 of
approximately $0.3 million; and (c) a slight increase in base rents at most
properties of approximately $0.2 million as compared to Fiscal 2019. The decline
in NOI for Fiscal 2020 is primarily attributed the deconsolidation of the
operating results of the Pierre Towers property from FREIT Maryland's operating
results resulting in a decrease of approximately $2.2 million in NOI as compared
to Fiscal 2019 offset by a decline in repairs and maintenance expense of
approximately $0.4 million due to the deferral of non-essential maintenance
projects across all properties in Fiscal 2020 in an effort to keep such costs
lower while the Company has experienced a loss of revenues at the commercial
properties and to adjust to the difficulty in hiring contractors due to imposed
COVID-19 restrictions and mandates. Average occupancy for all residential
properties for Fiscal 2020 decreased by approximately 1.6% over Fiscal 2019. The
decline in the average occupancy rate is primarily driven by the decline in the
average occupancy rate at the Icon to an average occupancy rate of 91.5% for
Fiscal 2020 as compared to 95.1% for Fiscal 2019. This decline in occupancy rate
is primarily attributed to tenants attending the Johns Hopkins University, which
is in close proximity to the Icon and represents approximately 30% of our
tenants at this property. In response to the COVID-19 pandemic, Johns Hopkins
University only offered online classes for the fall semester which resulted in a
loss of these tenants at our property.

Same Property Operating Results: FREIT Maryland's residential segment currently
contains seven (7) same properties. (See definition of same property under
Segment Information above.) The Pierre Towers property was excluded from same
property results for both fiscal years since this property was deconsolidated
and converted to a TIC as of February 28, 2020. Same property revenue and NOI
increased by 0.9% and 1.7%, respectively, from Fiscal 2019. The changes resulted
from the factors discussed in the immediately preceding paragraph.

FREIT Maryland's residential revenue is principally composed of monthly
apartment rental income. Total rental income is a factor of occupancy and
monthly apartment rents. Monthly average residential rents at the end of Fiscal
2020 and Fiscal 2019 were $1,953 and $1,914, respectively. For comparability
purposes, the average residential rent for Fiscal 2019 has been restated to
include the impact of Station Place and exclude the impact of the Pierre Towers
due to the deconsolidation and conversion to a TIC in Fiscal 2020. A 1% decline
in annual average occupancy, or a 1% decline in average rents from current
levels, results in an annual revenue decline of approximately $274,000 and
$258,000, respectively.

Capital expenditures: Since all of FREIT Maryland's apartment communities, with
the exception of the Boulders, Regency, Icon and Station Place properties, were
constructed more than 25 years ago, FREIT Maryland tends to spend more in any
given year on maintenance and capital improvements than may be spent on newer
properties. As a result of the COVID-19 global pandemic, only capital
improvements deemed essential are being made at this time. Funds for these
capital projects will be available from cash flow from the property's operations
and cash reserves.



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FINANCING COSTS



                                                                            Years Ended October 31,
                                                                      2020                            2019
                                                                           (In Thousands of Dollars)
Fixed rate mortgages (a):
  1st Mortgages
  Existing                                                     $             7,401               $         8,763
  New                                                                            -                           190
Variable rate mortgages:
  1st Mortgages
  Existing                                                                   5,211                         7,384
  New                                                                           92                             -
Other                                                                          329                           594
Total financing costs, gross                                                13,033                        16,931
   Amortization of mortgage costs                                            1,089                         1,139
Total financing costs, net                                     $            14,122               $        18,070

(a) Includes the effect of interest rate swap contracts which effectively convert the floating interest rate to a fixed interest rate over the term of the loan.

Total net financing costs for Fiscal 2020 decreased by approximately $3,948,000
or 21.8%, compared to Fiscal 2019 which is attributable to the following: (a) a
decline in interest on variable mortgage loans of approximately $2,081,000
resulting from lower interest rates; (b) the deconsolidation of the Pierre
Towers property from FREIT Maryland's operating results due to the conversion to
a TIC as of February 28, 2020 resulting in a decrease in net financing costs of
approximately $1,289,000; (c) a decline in other interest expense of
approximately $265,000 primarily resulting from the $5 million payment of
deferred Trustee fees to two retired Trustees earlier in Fiscal 2020 and a
decline in the ten (10)-year Treasury Bond interest rate as compared to Fiscal
2019; and (d) the remainder of the decrease of approximately $313,000 resulted
from the decline in interest on fixed interest rate mortgages due to another
year of loan amortization. (See Note 3 to FREIT Maryland's consolidated
financial statements for further details on the deconsolidation of the Pierre
Towers property.)



INVESTMENT INCOME

Investment income for Fiscal 2020 was $204,000 as compared to $360,000 for
Fiscal 2019. Investment income is principally derived from interest earned from
cash on deposit in institutional money market funds and interest earned from
secured loans receivable (loans made to Hekemian & Co. employees, including
Robert S. Hekemian, Jr., the Chief Executive Officer, President and a Director
of FREIT Maryland, David B. Hekemian, a Director of FREIT Maryland, Allan Tubin,
the Chief Financial Officer and Treasurer of FREIT Maryland and certain other
members of the immediate family of the late Robert S. Hekemian, FREIT Maryland's
former Chairman, Chief Executive Officer and consultant of FREIT Maryland) for
their equity investments (through Rotunda 100, LLC) in Grande Rotunda, LLC, a
limited liability company in which FREIT Maryland owns a 60% equity interest.
(See Note 8 to FREIT Maryland's consolidated financial statements for additional
details.)

GENERAL AND ADMINISTRATIVE EXPENSES

G&A expense for Fiscal 2020 was $3,821,000 as compared to $2,633,000 for Fiscal
2019. The primary components of G&A are accounting/auditing fees, legal and
professional fees, Trustees' and consultant fees and corporate expenses. The
increase in G&A costs for Fiscal 2020 was primarily driven by an increase in
legal costs of approximately $960,000 resulting from the legal proceeding
between FREIT Maryland and certain of its affiliates and Sinatra Properties, LLC
and an increase of approximately $300,000 in lender and legal fees related to
the conversion of the Pierre Towers partnership to a TIC in Fiscal 2020. (See
Note 3 to FREIT Maryland's consolidated financial statements for additional
details.)

THIRD PARTY TRANSACTION COSTS

The Special Committee incurred on behalf of the Company third party transaction
costs for advisory, legal and other expenses primarily related to the Purchase
and Sale Agreement and the Plan of Liquidation (See Notes 14 and 15 for
additional details) in the amount of approximately $4,606,000 for Fiscal 2020 as
compared to approximately $1,416,000 for Fiscal 2020. On April 30, 2020, the
Sellers delivered written notice to the Purchaser of the Sellers' termination of
the Purchase and Sale Agreement (See Note 14 for details) and on May 7, 2020,
the Board approved the elimination of the Special Committee. No further
transaction costs were incurred thereafter.

DEPRECIATION

Depreciation expense from operations for Fiscal 2020 was $10,341,000 as compared
to $11,339,000 for Fiscal 2019. The decline in depreciation expense for Fiscal
2020 was primarily attributable to the deconsolidation of the operating results
of the Pierre

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Towers property from FREIT Maryland's operating results as of February 28, 2020.
(See Note 3 to FREIT Maryland's consolidated financial statements for further
details.)

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities was $12.2 million for Fiscal 2021 as
compared to net cash provided by operating activities of $3.9 million for Fiscal
2020. FREIT Maryland expects that cash provided by operating activities,
including cash received from property sales subsequent to October 31, 2021 (see
Note 17 to FREIT Maryland's consolidated financial statements) and cash reserves
will be adequate to cover mandatory debt service payments (including payments of
interest, but excluding balloon payments which are expected to be refinanced
and/or extended), real estate taxes, recurring capital improvements at its
properties and other needs to maintain its status as a REIT for at least a
period of one year from the date of filing of this Form 10-K.

As at October 31, 2021, FREIT Maryland had cash, cash equivalents and restricted
cash totaling $39 million, compared to $39.5 million at October 31, 2020. The
decrease in cash in Fiscal 2021 is primarily attributable to $10.9 million in
net cash used in financing activities, $1.8 million in net cash used in
investing activities including capital expenditures offset by $12.2 million in
net cash provided by operating activities.

On February 8, 2019, FREIT Maryland sold a commercial building, formerly
occupied as a Pathmark supermarket in Patchogue, New York for a sales price of
$7.5 million. The sale of this property, which had a carrying value of
approximately $6.2 million, resulted in a gain of approximately $0.8 million net
of sales fees and commissions. Net cash proceeds of approximately $2 million
were realized after paying off the related mortgage on this property in the
amount of approximately $5.2 million. In connection with and in anticipation of
the closing of the sale of the Patchogue property, FREIT Maryland declared a
one-time special dividend of $0.10 per share in the first quarter of Fiscal
2019. The sale of this property eliminated an operating loss of approximately
$0.8 million ($0.12 per share) incurred, annually, since Pathmark vacated the
building in December 2015. (See Note 2 to FREIT Maryland's consolidated
financial statements.)

In Fiscal 2017, Grande Rotunda, LLC ("Grande Rotunda") incurred substantial
expenditures at the Rotunda property related to retail tenant improvements,
leasing costs and operating expenditures which, in the aggregate, exceeded
revenues as the property was still in the rent up phase and the construction
loan previously held with Wells Fargo was at its maximum level resulting in no
additional funding available to draw. Accordingly, during Fiscal 2017 the equity
owners in Grande Rotunda (FREIT Maryland with a 60% ownership and Rotunda 100,
LLC (Rotunda 100) with a 40% ownership) contributed their respective pro-rata
share of any cash needs through loans to Grande Rotunda. In Fiscal 2021, Grande
Rotunda repaid $7 million to the equity owners in Grande Rotunda based on their
respective pro-rata share resulting in a loan repayment to Rotunda 100 of
approximately $2.8 million. As of October 31, 2021 and 2020, Rotunda 100 has
funded Grande Rotunda with approximately $3.3 million and $5.9 million
(including accrued interest), respectively, which is included in "Due to
affiliate" on the accompanying consolidated balance sheets.

Credit Line: FREIT Maryland's revolving line of credit provided by Provident
Bank was renewed for a three-year term ending on October 31, 2023. Draws against
the credit line can be used for working capital needs and standby letters of
credit. Draws against the credit line are secured by mortgages on FREIT
Maryland's Franklin Crossing Shopping Center in Franklin Lakes, New Jersey and
retail space in Glen Rock, New Jersey. The total line of credit is $13 million
and the interest rate on the amount outstanding is based on a floating interest
rate of prime minus 25 basis points with a floor of 3.75%. As of October 31,
2021 and 2020, there was no amount outstanding and $13 million was available
under the line of credit. (See Note 5 to FREIT Maryland's consolidated financial
statements for additional details.)

Dividend: After careful consideration of FREIT Maryland's Fiscal 2021 results
and projected operating results and cash needs, the FREIT Maryland Board of
Directors ("Board") declared a fourth quarter dividend of $0.10 per share which
was paid on December 15, 2021 to stockholders of record on December 1, 2021. The
Board will continue to evaluate the dividend on a quarterly basis.



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As of October 31, 2021, FREIT Maryland's aggregate outstanding mortgage debt was
$301.3 million, which bears a weighted average interest rate of 3.56% and an
average life of approximately 2.44 years. FREIT Maryland's fixed rate mortgages
are subject to amortization schedules that are longer than the terms of the
mortgages. As such, balloon payments (unpaid principal amounts at mortgage due
date) for all mortgage debt will be required as follows:


Fiscal Year                           2022      2023     2024    2025    2026    2027    2028    2029
($ in millions)
Mortgage "Balloon" Payments        $199.5 (A) $34.8 (B)  $9.0    $13.9   $0.0    $0.0    $10.5  $26.0

                              (A)  Includes the following:
                                   (1) A loan on the Rotunda property

located in Baltimore, Maryland

                                   in the amount of approximately $116.5 million which would have
                                   matured on February 6, 2022. On December 30, 2021, the property
                                   owned by Grande Rotunda was sold and a portion of the proceeds was
                                   used to pay off the $116.5 million then outstanding balance of this
                                   loan. (See Note 17 to FREIT Maryland's consolidated financial
                                   statements for additional details.)

                                   (2) A loan on the Westridge Square Shopping Center located in
                                   Frederick, Maryland in the amount of approximately $21.1 million
                                   which has a maturity date of January 31, 2021. On January 7, 2022,
                                   the property owned by WestFREIT was sold and a portion of the
                                   proceeds was used to pay off the then outstanding balance of this
                                   loan. (See Note 17 to FREIT Maryland's consolidated financial
                                   statements for additional details.)

                                   (3) A loan on the Boulders property, which is a residential
                                   property located in Rockaway, New Jersey in the amount of
                                   approximately $14.5 million which had a maturity date of February
                                   1, 2022. The loan was refinanced on

December 30, 2021 in the amount

                                   of $7.5 million with additional funding available of up to another
                                   $7.5 million and has a maturity date of January 1, 2024. (See Note
                                   5 to FREIT Maryland's consolidated financial statements for
                                   additional details.)

                                   (4) A loan on the Preakness Shopping Center located in Wayne, New
                                   Jersey in the amount of approximately $22.6 million. Although the
                                   Company continues to make its required debt service payments in
                                   accordance with the loan agreement, it is unable to comply with
                                   this covenant. As such, the bank could exercise its remedies under
                                   the loan agreement including, among other things, requiring a
                                   partial or full repayment of the loan.  (See Note 5 to FREIT
                                   Maryland's consolidated financial statements for additional
                                   details.)

                              (B)  Includes a loan on the Damascus property located in Damascus,
                                   Maryland in the amount of approximately $18.2 million. On January
                                   10, 2022, the property owned by Damascus was sold and a portion of
                                   the proceeds was used to pay off the then outstanding balance of
                                   this loan. (See Note 17 to FREIT

Maryland's consolidated financial

                                   statements for additional details.)

The following table shows the estimated fair value and carrying value of FREIT Maryland's long-term debt, net at October 31, 2021 and 2020:

($ in Millions)      October 31, 2021   October 31, 2020

Fair Value                $301.6             $311.4

Carrying Value, Net       $299.9             $305.4


Fair values are estimated based on market interest rates at the end of each
fiscal year and on a discounted cash flow analysis. Changes in assumptions or
estimation methods may significantly affect these fair value estimates. The fair
value is based on observable inputs (level 2 in the fair value hierarchy as
provided by authoritative guidance).

FREIT Maryland expects to refinance the individual mortgages with new mortgages
or exercise extension options when their terms expire. To this extent FREIT
Maryland has exposure to interest rate risk. If interest rates, at the time any
individual mortgage note is due, are higher than the current fixed interest
rate, higher debt service may be required, and/or refinancing proceeds may be
less than the amount of mortgage debt being retired. For example, at October 31,
2021, a 1% interest rate increase would reduce the fair value of FREIT
Maryland's debt by $4.4 million, and a 1% decrease would increase the fair value
by $4.6 million.

FREIT Maryland continually reviews its debt levels to determine if additional
debt can prudently be utilized for property acquisitions for its real estate
portfolio that will increase income and cash flow to stockholders.

On February 7, 2018, Grande Rotunda refinanced its construction loan with a new
loan held by Aareal Capital Corporation in the amount of approximately $118.5
million with additional funding which was available through February 6, 2021 for
retail tenant improvements and leasing costs in the amount of $3,380,000. This
loan bears a floating interest rate at 285 basis points over the one-month LIBOR
rate and had a maturity date of February 6, 2021 with two one-year options

of
Grande Rotunda to

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extend the maturity of this loan, subject to certain requirements as provided
for in the loan agreement. Grande Rotunda had purchased an interest rate cap on
LIBOR for the full amount that could have been drawn on this loan of $121.9
million, capping the one-month LIBOR rate at 3% for the first two years of this
loan which matured on March 5, 2020. On February 28, 2020, Grande Rotunda had
purchased an interest rate cap on LIBOR, with an effective date of March 5,
2020, for the full amount that could have been drawn on this loan of $121.9
million, capping the one-month LIBOR rate at 3% for one year, maturing on March
5, 2021. Effective February 6, 2021, Grande Rotunda exercised the first
extension option on this loan with a balance in the amount of approximately
$118.5 million, extending the loan one year with a new maturity date of February
6, 2022. Principal payments in the amount of $500,000 were required upon
exercise of the first loan extension option and per calendar quarter thereafter.
Additionally, Grande Rotunda purchased an interest rate cap on LIBOR, with an
effective date of March 5, 2021, for the loan amount of approximately $118.5
million, capping the one-month LIBOR rate at 3% for one year expiring on
February 6, 2022. At October 31, 2021, the total amount outstanding on this loan
was approximately $116.5 million and the interest rate was approximately 2.93%.
(See Notes 5 and 6 to FREIT Maryland's consolidated financial statements for
further details). On December 30, 2021, the property owned by Grande Rotunda was
sold and a portion of the proceeds was used to pay off the $116.5 million then
outstanding balance of this loan. (See Note 17 to FREIT Maryland's consolidated
financial statements for additional details.)

On September 30, 2020, Westwood Hills, LLC ("Westwood Hills"), a consolidated
subsidiary, refinanced its $19.2 million loan (which would have matured on
November 1, 2020) with a new loan held by ConnectOne Bank in the amount of
$25,000,000, with additional funding available in the amount of $250,000 for
legal fees potentially incurred by the lender related to the lis pendens on this
property. (See Note 14 to FREIT Maryland's consolidated financial statements for
additional details in regards to the lis pendens.) This loan, secured by an
apartment building in Westwood, New Jersey, is interest-only based on a floating
rate at 400 basis points over the one-month LIBOR rate with a floor of 4.15% and
has a maturity date of October 1, 2022 with the option of Westwood Hills to
extend for two (2) additional six (6)-month periods from the maturity date,
subject to certain provisions of the loan agreement. This refinancing resulted
in: (i) a change in the annual interest rate from a fixed rate of 4.62% to a
variable rate with a floor of 4.15% and (ii) net refinancing proceeds of
approximately $5.6 million that were distributed to the partners in Westwood
Hills with FREIT Maryland receiving approximately $2.2 million based on its 40%
membership interest in Westwood Hills. As of October 31, 2021, $25,000,000 of
this loan was drawn and outstanding and the interest rate was based on the floor
of 4.15%. (See Note 5 to FREIT Maryland's consolidated financial statements for
additional details.)

On August 26, 2019, Berdan Court, LLC ("Berdan Court"), (owned 100% by FREIT
Maryland), refinanced its $17 million loan (which matured on September 1, 2019)
with the lender in the amount of $28,815,000. This loan, secured by an apartment
building located in Wayne, New Jersey, has a term of ten years and bears a fixed
interest rate equal to 3.54%. Interest-only payments are required each month for
the first five years of the term and thereafter, principal payments plus accrued
interest will be required each month through maturity. This refinancing resulted
in: (i) a reduction in the annual interest rate from a fixed rate of 6.09% to a
fixed rate of 3.54% and (ii) net refinancing proceeds of approximately $11.6
million which can be used for capital expenditures and general corporate
purposes. (See Note 5 to FREIT Maryland's consolidated financial statements for
additional details.)

On April 3, 2019, WestFREIT, Corp. exercised its option to extend its loan
secured by the Westridge Square shopping center in Frederick, Maryland, held by
M&T Bank, with a then outstanding balance of approximately $22.5 million, for
twelve months. Effective beginning on June 1, 2019, the extension of this loan
required monthly principal payments of $47,250 plus interest based on a floating
interest rate equal to 240 basis points over the one-month LIBOR and had a
maturity date of May 1, 2020. This loan was extended to November 1, 2020 and
further extended to January 31, 2021 under the same terms and conditions of the
existing agreement. WestFREIT, Corp. entered into a loan extension and
modification agreement with M&T Bank, effective beginning on February 1, 2021,
which requires monthly principal payments of $49,250 plus interest based on a
floating interest rate equal to 255 basis points over the one-month LIBOR and
has a maturity date of January 31, 2022, with the option of WestFREIT, Corp. to
extend for an additional one-year period through January 31, 2023, subject to
certain requirements as provided for in the loan agreement including the
lease-up of certain space. As of October 31, 2021, approximately $21.2 million
of this loan was outstanding and the interest rate was approximately 2.68%. (See
Note 5 to FREIT Maryland's consolidated financial statements for additional
details.) On January 7, 2022, the property owned by WestFREIT was sold and a
portion of the proceeds was used to pay off the then outstanding balance of this
loan. (See Note 17 to FREIT Maryland's consolidated financial statements for
additional details.)

Interest rate swap contracts: To reduce interest rate volatility, FREIT Maryland
uses a "pay fixed, receive floating" interest rate swap to convert floating
interest rates to fixed interest rates over the term of a certain loan. FREIT
Maryland enters into these swap contracts with a counterparty that is usually a
high-quality commercial bank. In essence, FREIT Maryland agrees to pay its
counterparties a fixed rate of interest on a dollar amount of notional principal
(which generally corresponds to FREIT Maryland's mortgage debt) over a term
equal to the term of the mortgage notes. FREIT Maryland's counterparties, in
return, agree to pay FREIT Maryland a short-term rate of interest - generally
LIBOR - on that same notional amount over the same term as the mortgage notes.

FREIT Maryland has variable interest rate loans secured by its Damascus Centre,
LLC ("Damascus Centre"), Wayne PSC, LLC ("Wayne PSC"), FREIT Regency, LLC
("Regency") and Station Place on Monmouth, LLC ("Station Place") properties. To
reduce interest rate fluctuations, FREIT Maryland entered into interest rate
swap contracts for each of these loans. These interest

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rate swap contracts effectively converted variable interest rate payments to
fixed interest rate payments. The contracts were based on a notional amount of
approximately $22,320,000 ($18,320,000 at October 31, 2021) for the Damascus
Centre swaps, a notional amount of approximately $16,200,000 ($14,921,000 at
October 31, 2021) for the Regency swap, a notional amount of approximately
$25,800,000 ($22,333,000 at October 31, 2021) for the Wayne PSC swap and a
notional amount of approximately $12,350,000 ($11,971,000 at October 31, 2021)
for the Station Place swap.

Interest rate cap contract: To limit exposure on interest rate volatility, FREIT
Maryland uses an interest rate cap contract to cap a floating interest rate at a
set pre-determined rate. FREIT Maryland enters into cap contracts with a
counterparty that is usually a high-quality commercial bank. In essence, so long
as the floating interest rate is below the cap rate, FREIT Maryland agrees to
pay its counterparties a variable rate of interest on a dollar amount of
notional principal (which generally corresponds to FREIT Maryland's mortgage
debt). Once the floating interest rate rises above the cap rate, FREIT
Maryland's counterparties, in return, agree to pay FREIT Maryland a short-term
rate of interest above the cap on that same notional amount.

FREIT Maryland has a variable interest rate loan secured by its Rotunda
property. As part of the refinancing of Grande Rotunda's construction loan with
a new loan from Aareal Capital Corporation, Grande Rotunda had purchased an
interest rate cap on LIBOR for the full amount that could have been drawn on
this loan of $121.9 million, capping the one-month LIBOR rate at 3% for the
first two years of this loan which matured on March 5, 2020. On February 28,
2020, Grande Rotunda had purchased an interest rate cap on LIBOR, with an
effective date of March 5, 2020, for the full amount that could have been drawn
on this loan of $121.9 million, capping the one-month LIBOR rate at 3% for one
year, maturing on March 5, 2021. Effective February 6, 2021, Grande Rotunda
exercised the first extension option on this loan with a balance in the amount
of approximately $118.5 million, extending the loan one year with a new maturity
date of February 6, 2022. Additionally, Grande Rotunda purchased an interest
rate cap on LIBOR, with an effective date of March 5, 2021, for the loan amount
of approximately $118.5 million, capping the one-month LIBOR rate at 3% for one
year expiring on February 6, 2022. The cap contract was based on a notional
amount of approximately $118,520,000 ($118,520,000 at October 31, 2021). On
December 30, 2021, the property owned by Grande Rotunda was sold and a portion
of the proceeds was used to pay off the $116.5 million then outstanding balance
of this loan. (See Note 17 to FREIT Maryland's consolidated financial statements
for additional details.)

In accordance with ASU 2017-12, "Targeted Improvements to Accounting for Hedging
Activities to Accounting Standards Codification Topic 815, Derivatives and
Hedging ("ASC 815")"which was adopted by FREIT Maryland in the first quarter of
Fiscal 2020 (see Note 1 to FREIT Maryland's consolidated financial statements
for further details), FREIT Maryland marks-to-market its interest rate swap and
cap contracts. As the floating interest rate varies from time-to-time over the
term of the contract, the value of the contract will change upward or downward.
If the floating rate is higher than the fixed rate, the value of the contract
goes up and there is a gain and an asset. If the floating rate is less than the
fixed rate, there is a loss and a liability. The interest rate swaps and cap are
accounted for as cash flow hedges with the corresponding gains or losses on
these contracts not affecting FREIT Maryland's consolidated statement of income;
changes in the fair value of these cash flow hedges will be reported in other
comprehensive income and appear in the equity section of the consolidated
balance sheet. This gain or loss represents the economic consequence of
liquidating fixed rate swaps or the cap contract and replacing them with
like-duration funding at current market rates, something we would likely never
do. Periodic cash settlements of these contracts will be accounted for as an
adjustment to interest expense. In Fiscal 2019, prior to the adoption of ASU
2017-12, the Grande Rotunda interest rate cap which matured on March 5, 2020
was, for accounting purposes, deemed to be an ineffective cash flow hedge with a
corresponding gain or loss being recorded in FREIT Maryland's consolidated
statement of income.

FREIT Maryland has the following derivative-related risks with its swap and cap
contracts ("contract"): 1) early termination risk, and 2) counterparty credit
risk.

Early Termination Risk: If FREIT Maryland wants to terminate its contract before
maturity, it would be bought out or terminated at market value; i.e., the
difference in the present value of the anticipated net cash flows from each of
the contract's parties. If current variable interest rates are significantly
below FREIT Maryland's fixed interest rate payments, this could be costly.
Conversely, if interest rates rise above FREIT Maryland's fixed interest
payments and FREIT Maryland elected early termination, FREIT Maryland would
realize a gain on termination. At October 31, 2021, the swap contracts for
Damascus Centre, Regency, Station Place and Wayne PSC were in the
counterparties' favor. If FREIT Maryland had terminated these contracts at that
date it would have realized losses of approximately $0 for the Grande Rotunda
cap, $278,000 for the Damascus Centre swaps, $750,000 for the Regency swap,
$932,000 for the Station Place swap and $348,000 for the Wayne PSC swap, all of
which have been included as a liability in FREIT Maryland's consolidated balance
sheet as at October 31, 2021. The change in the fair value for the contract
(gain or loss) during such period has been included in comprehensive income and
for the year ended October 31, 2021, FREIT Maryland recorded an unrealized gain
of approximately $2,616,000 in the consolidated statement of comprehensive
income. For the year ended October 31 2020, FREIT Maryland recorded an
unrealized loss of $2,798,000 in the consolidated statement of comprehensive
income representing the change in fair value of the swaps during such period.

Counterparty Credit Risk: Each party to a contract bears the risk that its
counterparty will default on its obligation to make a periodic payment. FREIT
Maryland reduces this risk by entering into a contract only with major financial
institutions that are experienced market makers in the derivatives market.

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FREIT Maryland's total contractual obligations under its line of credit and mortgage loans in place as of October 31, 2021 are as follows:

CONTRACTUAL OBLIGATIONS-PRINCIPAL
(in thousands of dollars)
                                        Within          2 - 3          4 - 5       After 5
                           Total       One Year         Years          Years        Years
Long-Term Debt
Annual Amortization      $   7,550     $   2,133       $  1,753       $  1,659     $  2,005
Balloon Payments           293,726       199,547 (A)     43,824 (B)     13,892       36,463
Total Long-Term Debt *   $ 301,276     $ 201,680       $ 45,577       $ 15,551     $ 38,468

* Includes deferred interest in the amount of approximately $358,000. See Note

5 to FREIT Maryland's consolidated financials for additional details.

       Includes the
  (A)  following:
       (1) A loan on the Rotunda property located in Baltimore, Maryland in the

amount of approximately $116.5 million which would have matured on February

6, 2022. On December 30, 2021, the property owned by Grande Rotunda was sold

       and a portion of the proceeds was used to pay off the $116.5 million then
       outstanding balance of this loan. (See Note 17 to FREIT Maryland's
       consolidated financial statements for additional details.)

(2) A loan on the Westridge Square Shopping Center located in Frederick,

Maryland in the amount of approximately $21.1 million which has a maturity

date of January 31, 2021. On January 7, 2022, the property owned by

WestFREIT was sold and a portion of the proceeds was used to pay off the

then outstanding balance of this loan. (See Note 17 to FREIT Maryland's

consolidated financial statements for additional details.)

(3) A loan on the Preakness Shopping Center located in Wayne, New Jersey in

the amount of approximately $22.6 million. Although the Company continues to

make its required debt service payments in accordance with the loan

agreement, it is unable to comply with this covenant. As such, the bank

could exercise its remedies under the loan agreement including, among other

things, requiring a partial or full repayment of the loan. (See Note 5 to

FREIT Maryland's consolidated financial statements for additional details.)

(4)A loan on the Boulders property, which is a residential property located

in Rockaway, New Jersey in the amount of approximately $14.5 million which

had a maturity date of February 1, 2022. The loan was refinanced on December

30, 2021 in the amount of $7.5 million with additional funding available of

up to another $7.5 million and has a maturity date of January 1, 2024. (See

Note 5 to FREIT Maryland's consolidated financial statements for additional

details.)

(B) Includes a loan on the Damascus property located in Damascus, Maryland in

the amount of approximately $18.2 million. On January 10, 2022, the property

owned by Damascus was sold and a portion of the proceeds was used to pay off

the then outstanding balance of this loan. (See Note 17 to FREIT Maryland's

       consolidated financial statements for additional details.)




FREIT Maryland's annual estimated cash requirements related to interest on its
line of credit and mortgage loans in place as of October 31, 2021 are as
follows:



INTEREST OBLIGATIONS
(in thousands of dollars)
                                                    Within           2 - 3          4 - 5        After 5
                                      Total        One Year          Years          Years         Years

Interest on Fixed Rate Debt* $ 18,216 $ 4,170 (A) $ 6,481 $ 4,164 $ 3,401 Interest on Variable Rate Debt ** 1,649 1,649 (B) -

              -              -
Total Interest Obligations          $  19,865     $    5,819       $   6,481      $   4,164     $    3,401



    *  Includes interest on the loan for Preakness Shopping Center located in

Wayne, New Jersey in the amount of approximately $22.6 million through

       the maturity date of October 1, 2026 which has been included in the
       column "within one year" on the Contractual Obligations - Principal table
       above.

       Interest based on rates as of
   **  October 31, 2021

(A) Includes interest on the loan on the Damascus property through the date of

sale of January 10, 2022. The proceeds from the sale were used to pay off

the then outstanding loan balance. (See Note 17 to FREIT Maryland's

consolidated financial statements for additional details.)

(B) Includes interest on the loan on the Rotunda and WestFREIT property through

the date of sale of December 30, 2021 and January 7, 2022, respectively. The

proceeds from each of these sales were used to pay off the then outstanding

loan balance. (See Note 17 to FREIT Maryland's consolidated financial

       statements for additional details.)


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ADJUSTED FUNDS FROM OPERATIONS

Funds From Operations ("FFO") is a non-GAAP measure defined by the National
Association of Real Estate Investment Trusts ("NAREIT"). FREIT Maryland does not
include sources or distributions from equity/debt sources in its computation of
FFO. Although many consider FFO as the standard measurement of a REIT's
performance, FREIT Maryland modified the NAREIT computation of FFO to include
other adjustments to GAAP net income that are not considered by management to be
the primary drivers of its decision making process. These adjustments to GAAP
net income are straight-line rents and recurring capital improvements on FREIT
Maryland's residential apartments. The modified FFO computation is referred to
as Adjusted Funds From Operations ("AFFO"). FREIT Maryland believes that AFFO is
a superior measure of its operating performance. FREIT Maryland computes FFO and
AFFO as follows:



                                                                        Years Ended October 31,
                                                            2021                    2020                 2019
                                                                    (In Thousands, Except Per Share)
Funds From Operations ("FFO") (a)
Net income                                             $        1,047            $    17,320          $     1,793
Depreciation of consolidated properties                         9,300                 10,341               11,339
Tenant improvement write-off due to COVID-19                        -                  7,277                    -
Amortization of deferred leasing costs                            544                    730                  611
Distributions to non-controlling interests                     (1,350 )                 (583 )(b)            (686 )
Adjustment to loss in investment in
tenancy-in-common for depreciation                              1,408                    933                    -
Gain on sale of property                                            -                      -                 (836 )
Gain on deconsolidation of subsidiary                               -      

         (27,680 )                  -

                                               FFO     $       10,949            $     8,338          $    12,221

                     Per Share - Basic and Diluted     $         1.56            $      1.19          $      1.76

(a) As prescribed by NAREIT.
(b) FFO excludes the distribution of proceeds to non-controlling interests in the amount of approximately $3.3
million related to the refinancing of the loan for the Westwood Hills property. See Note 5 to the consolidated
financial statements for further details.

Adjusted Funds From Operations ("AFFO")
FFO                                                    $       10,949            $     8,338          $    12,221
Deferred rents (Straight lining)                                  230                    397                 (410 )
Capital Improvements - Apartments                                (625 )    

            (347 )               (685 )
                                              AFFO     $       10,554            $     8,388          $    11,126

                     Per Share - Basic and Diluted     $         1.50            $      1.20          $      1.60

              Weighted Average Shares Outstanding:
                                             Basic              7,019                  6,992                6,940
                                           Diluted              7,022                  6,994                6,940




FFO and AFFO do not represent cash generated from operating activities in
accordance with GAAP, and therefore should not be considered a substitute for
net income as a measure of results of operations or for cash flow from
operations as a measure of liquidity. Additionally, the application and
calculation of FFO and AFFO by certain other REITs may vary materially from that
of FREIT Maryland, and therefore FREIT Maryland's FFO and AFFO may not be
directly comparable to those of other REITs.

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DISTRIBUTIONS TO STOCKHOLDERS

Since its inception in 1961, FREIT Maryland has elected to be treated as a REIT
for federal income tax purposes. In order to qualify as a REIT, FREIT Maryland
must satisfy a number of highly technical and complex operational requirements
of the Internal Revenue Code, including a requirement that FREIT Maryland must
distribute to its stockholders at least 90% of its REIT taxable income. Although
cash used to make distributions reduces amounts available for capital
investment, FREIT Maryland generally intends to distribute not less than the
minimum of REIT taxable income necessary to satisfy the applicable REIT
requirement as set forth in the Internal Revenue Code. With respect to the Jobs
and Growth Tax Relief Reconciliation Act of 2003, the reduction of the tax rate
on dividends does not apply to FREIT Maryland dividends other than capital gains
dividends, which are subject to capital gains rates. FREIT Maryland's policy is
to pass on at least 90% of its ordinary taxable income to stockholders. FREIT
Maryland's taxable income is untaxed at FREIT Maryland level to the extent
distributed to stockholders. FREIT Maryland's dividends of ordinary taxable
income will be taxed as ordinary income to its stockholders and FREIT Maryland's
capital gains dividends will be taxed as capital gains to its stockholders.
FREIT Maryland's Board evaluates the dividend to be declared/paid (if any) on a
quarterly basis.

The following tables list the quarterly dividends declared for the three most
recent fiscal years and the dividends as a percentage of taxable income for
those periods.



                       Fiscal Years Ended October 31,
                    2021           2020            2019
First Quarter    $      0.05       $   -       $      0.150
Second Quarter   $      0.05       $   -       $      0.125
Third Quarter    $      0.05       $   -       $      0.125
Fourth Quarter   $      0.10       $   -       $      0.200
Total For Year   $      0.25       $   -       $      0.600




                                                 (in thousands of dollars)                              Dividends
   Fiscal        Per          Total             Ordinary            Capital Gain        Taxable         as a % of
    Year        Share       Dividends       Income-Tax Basis      Income-Tax Basis       Income       Taxable Income
    2021        $ 0.25     $     1,755     $            1,774 *   $               -     $  1,774 *              98.9%
    2020        $    -     $         -     $                -     $               -     $      -                 0.0%
    2019        $ 0.60     $     4,173     $            4,073     $             100     $  3,877               107.6%
   *Estimated


INFLATION

Inflation can impact the financial performance of FREIT Maryland in various
ways. FREIT Maryland's commercial tenant leases normally provide that the
tenants bear all or a portion of most operating expenses, which can reduce the
impact of inflationary increases on FREIT Maryland. Apartment leases are
generally for a one-year term, which may allow FREIT Maryland to seek increased
rents as leases renew or when new tenants are obtained, subject to prevailing
market conditions.

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