Segment information

9 Months Ended

Jul. 31, 2021

Segment Reporting [Abstract]

Segment information

Note 11 – Segment information:

FREIT Maryland has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires different operating strategies and management expertise. The commercial segment is comprised of eight (8) properties and the residential segment is comprised of seven (7) properties, excluding the Pierre Towers property which was converted into a TIC and deconsolidated from FREIT Maryland’s operating results as of February 28, 2020 (See Note 5 to FREIT Maryland’s condensed consolidated financial statements for further details).

The accounting policies of the segments are the same as those described in Note 1 in FREIT Maryland’s Annual Report on Form 10-K for the fiscal year ended October 31, 2020. The chief operating and decision-making group responsible for oversight and strategic decisions of FREIT Maryland's commercial segment, residential segment and corporate/other is comprised of FREIT Maryland’s Board.

FREIT Maryland, through its chief operating and decision making group, assesses and measures segment operating results based on net operating income ("NOI"). NOI, a standard used by real estate professionals, 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. NOI is not a measure of operating results or cash flows from operating activities as measured by GAAP, and is 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.

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Real estate rental revenue, operating expenses, NOI and recurring capital improvements for the reportable segments are summarized below and reconciled to condensed consolidated net income (loss) attributable to common equity for the nine and three month periods ended July 31, 2021 and 2020. Asset information is not reported since FREIT Maryland does not use this measure to assess performance.

	Nine Months Ended				Three Months Ended
	July 31,				July 31,
	2021		2020		2021		2020
	(In Thousands of Dollars)				(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	18,299	$	19,638	$	5,885	$	6,090
Residential		20,026		22,005		6,669		6,393
Total real estate rental revenue		38,325		41,643		12,554		12,483
Real estate operating expenses:
Commercial		8,346		8,810		2,535		2,914
Residential		8,232		8,997		2,842		2,649
Total real estate operating expenses		16,578		17,807		5,377		5,563
Net operating income:
Commercial		9,953		10,828		3,350		3,176
Residential		11,794		13,008		3,827		3,744
Total net operating income	$	21,747	$	23,836	$	7,177	$	6,920

Recurring capital improvements - residential $ (438 ) $ (353 ) $ (258 ) $ (127 )

Reconciliation to condensed consolidated net income (loss) attributable to common equity:
Segment NOI	$	21,747		$	23,836		$	7,177		$	6,920
Deferred rents - straight lining		(225	)		(213	)		(12	)		(334	)
Investment income		88			174			29			38
General and administrative expenses		(4,143	)		(3,061	)		(1,413	)		(1,233	)
Third party transaction costs		-			(4,606	)		-			(87	)
Gain on deconsolidation of subsidiary		-			27,680			-			-
Loss on investment in tenancy-in-common		(245	)		(96	)		(100	)		(78	)
Depreciation		(6,948	)		(7,887	)		(2,315	)		(2,425	)
Financing costs		(9,242	)		(11,032	)		(3,050	)		(3,121	)
Net income (loss)		1,032			24,795			316			(320	)
Net (income) loss attributable to noncontrolling interests in subsidiaries		(256	)		(18	)		(107	)		139
Net income (loss) attributable to common equity	$	776		$	24,777		$	209		$	(181	)