FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY : Other Events (form 8-K) - Marketscreener.com

Item 8.01 Other Events.
On August 30, 2022 First Real Estate Investment Trust of New Jersey, Inc. (“FREIT”) paid a $7.50 per share special, extraordinary, non-recurring distribution to its stockholders representing most of the after tax net proceeds derived from the sale of its Maryland properties (the “Extraordinary Distribution” or “Distribution”).
While the tax treatment of the Extraordinary Distribution cannot be determined with certainty until the completion of FREIT’s fiscal year end at October 31, 2022; and ultimately, until the escrows established in the purchase agreement for the Maryland properties are finally liquidated, the estimate set forth in the table below (the “Tax Estimate”) is provided to assist stockholders with their financial and tax planning. The Tax Estimate represents the estimated portion of the Extraordinary Distribution that relates to the taxable portion of the Distribution (§1250 Gain – Recapture and Capital Gain) and the return of capital portion of the Distribution. The Tax Estimate is subject to change and there can be no assurance that the actual taxable portion of the Distribution and the return of capital portion of the Distribution will be equal to the amounts included in the Tax Estimate.
Forward-Looking and Cautionary Statements
This current report on Form 8-K may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements can be identified by the use of words such as “expect,” “plan,” “will,” “estimate,” “project,” “intend,” “believe,” “guidance,” “approximately,” “anticipate,” “may,” “should,” “seek” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate to historical matters. You can also identify forward-looking statements by discussions of strategy, plans or intentions of management. These forward-looking statements are subject to known and unknown risks and uncertainties that you should not rely on as predictions of future events. Forward-looking statements depend on assumptions, data and/or methods which may be incorrect or imprecise and we may not be able to realize them. The following risks and uncertainties, among others, could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: industry and economic conditions; FREIT’s ability to satisfy the conditions to closing and complete the proposed transaction; FREIT’s dependence upon its external manager to conduct its business and achieve its investment objectives; unknown liabilities acquired in connection with acquired properties or interests in real estate-related entities; general risks affecting the real estate industry and local real estate markets (including, without limitation, the market value of FREIT’s properties, potential illiquidity of FREIT’s remaining real estate investments, condemnations, and potential damage from natural disasters); the financial performance of FREIT’s tenants; the impact of any financial, accounting, legal or regulatory issues or litigation that may affect the Trust and its major tenants; volatility and uncertainty in the financial markets, including potential fluctuations in the consumer price index; risks associated with FREIT’s failure to maintain status as a REIT under the Internal Revenue Code of 1986, as amended; and other additional risks discussed in FREIT’s annual report on Form 10-K for the fiscal year ended October 31, 2021. FREIT expressly disclaims any responsibility to update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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