Segment information

6 Months Ended

Apr. 30, 2012

Segment Information

Segment information

Note 4 - Segment information:

FREIT 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 contains ten (10) separate properties and the residential segment contains nine (9) properties. The accounting policies of the segments are the same as those described in Note 1 in FREIT’s Annual Report on Form 10-K for the fiscal year ended October 31, 2011.

The chief operating and decision-making group of FREIT's commercial segment, residential segment and corporate/other is comprised of FREIT’s Board of Trustees.

FREIT 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), lease amortization, 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.

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-common equity for the six and three-month periods ended April 30, 2012 and 2011. Asset information is not reported since FREIT does not use this measure to assess performance.

	Six Months Ended						Three Months Ended
	April 30,						April 30,
	2012			2011			2012			2011
	(In Thousands)						(In Thousands)
Real estate rental revenue:
Commercial	$	11,831		$	11,960		$	5,740		$	6,025
Residential		10,041			9,790			5,055			4,912
Totals		21,872			21,750			10,795			10,937
Real estate operating expenses:
Commercial		4,817			4,951			2,293			2,406
Residential		4,531			4,451			2,279			2,089
Totals		9,348			9,402			4,572			4,495
Net operating income:
Commercial		7,014			7,009			3,447			3,619
Residential		5,510			5,339			2,776			2,823
Totals	$	12,524		$	12,348		$	6,223		$	6,442
Recurring capital improvements-residential	$	317		$	139		$	115		$	55
Reconciliation to consolidated net income:
Segment NOI	$	12,524		$	12,348		$	6,223		$	6,442
Deferred rents - straight lining		10			89			16			35
Amortization of acquired leases		12			(12	)		3			(6	)
Investment income		55			52			31			23
Insurance recovery		—			207			—			—
General and administrative expenses		(864	)		(796	)		(495	)		(403	)
Depreciation		(3,063	)		(3,021	)		(1,531	)		(1,510	)
Income relating to early lease termination,
net of related deferred project cost write-off		1,460			—			1,460			—
Financing costs		(5,805	)		(5,814	)		(2,940	)		(2,888	)
Net income		4,329			3,053			2,767			1,693
Net income attributable to noncontrolling interests		(1,193	)		(714	)		(824	)		(373	)
Net income attributable to common equity	$	3,136		$	2,339		$	1,943		$	1,320