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First Real Estate Investment Trust of New Jersey (OTCPK:FREVS) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
First Real Estate Investment Trust of New Jersey ROE % Related Terms
First Real Estate Investment Trust of New Jersey ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First Real Estate Investment Trust of New Jersey ROE % Chart
First Real Estate Investment Trust of New Jersey Annual Data
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Real Estate Investment Trust of New Jersey ROE % vs REITs Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
ROE % is displayed in the 30-year financial page.
First Real Estate Investment Trust of New Jersey (FREVS) has a ROE % of 7.20% as of Apr. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Real Estate Investment Trust of New Jersey and its competitors. This is 78% below median its historical median of 32.60. Over the past decade, First Real Estate Investment Trust of New Jersey's ROE % has ranged from 2.59 to 147.22. According to the industry distribution chart, First Real Estate Investment Trust of New Jersey ranks #228 out of 920 companies in the REITs industry, placing it in the top 24.8%.
Is First Real Estate Investment Trust of New Jersey's ROE % too high?
First Real Estate Investment Trust of New Jersey's current ROE % of 7.20% is 78% below median its 10-year median of 32.60. Over the past 10 years, this metric has ranged from a low of 2.59 to a high of 147.22. The REITs industry median ROE % is 6.16. First Real Estate Investment Trust of New Jersey's value of 7.20% is 17% above this industry median. Based on the distribution chart, First Real Estate Investment Trust of New Jersey ranks #228 out of 920 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, First Real Estate Investment Trust of New Jersey has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Real Estate Investment Trust of New Jersey's ROE % compare to ELME and MRTI?
According to the REITs industry distribution chart, First Real Estate Investment Trust of New Jersey ranks #228 out of 920 companies for ROE %. This places First Real Estate Investment Trust of New Jersey in the top 25% of its industry — outperforming the majority of peers. The industry median ROE % is 6.16. First Real Estate Investment Trust of New Jersey's value of 7.20% is 17% above this benchmark. Historically, First Real Estate Investment Trust of New Jersey's own ROE % has ranged from 2.59 to 147.22 over the past decade. While the company's 10-year median is 32.60 vs. the industry median of 6.16, First Real Estate Investment Trust of New Jersey has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a REITs company?
The median ROE % among REITs companies is 6.16, based on 920 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Real Estate Investment Trust of New Jersey's current ROE % of 7.20% is 17% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Real Estate Investment Trust of New Jersey and its competitors. For the REITs industry, the median ROE % is 6.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Real Estate Investment Trust of New Jersey's current ROE % is 7.20%, which is 78% below median its own 10-year median of 32.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Real Estate Investment Trust of New Jersey stock overvalued right now?
Based on GuruFocus' analysis, First Real Estate Investment Trust of New Jersey (FREVS) is currently considered Modestly Overvalued. The stock's GF Value™ is $17.10, compared to a current price of $21.35 — trading 24.9% above its estimated fair value. The current ROE % is 7.20%, which is 78% below median its 10-year median of 32.60 and 17% above the REITs industry median of 6.16. First Real Estate Investment Trust of New Jersey's overall GF Score™ is 65/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For First Real Estate Investment Trust of New Jersey (FREVS), the current ROE % is 7.20% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Real Estate Investment Trust of New Jersey (FREVS) Overvalued in 2026?
Based on GuruFocus' analysis, First Real Estate Investment Trust of New Jersey stock appears to be overvalued.
The current stock price of $21.35 is trading 24.9% above its estimated GF Value™ of $17.10.
GuruFocus considers First Real Estate Investment Trust of New Jersey to be Modestly Overvalued.
Key valuation signals for FREVS:
ROE %: 7.20% (78% below median its 10-year median of 32.60)
GF Value™: $17.10 vs. price of $21.35 (24.9% above fair value)
Industry Position: 17% above the REITs median (#228 of 920)
No single metric tells the full story. See the FREVS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Real Estate Investment Trust of New Jersey Inc operates in the real estate sector of the United States. It implies the investment in real estate properties and passing on a regular income and benefit of capital appreciation to its shareholders. The company operates in two reportable segments; commercial properties and residential properties. Its revenues consist of fixed rental income from its residential and commercial properties and additional rent in the form of expense reimbursements acquired from its income-producing commercial properties. The majority of revenue is derived from the Residential properties segment.
65GF Score
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