Property held for sale and discontinued operations	3 Months Ended
Jan. 31, 2013
Property Held For Sale And Discontinued Operations
Property held for sale and discontinued operations	Note 6 – Property held for sale & discontinued operations: On August 29, 2012, FREIT sold its Heights Manor Apartments in Spring Lake Heights, NJ. The current quarter and prior year’s quarter operating results of Heights Manor have been classified as “Income from discontinued operations” in FREIT’s income statement. In connection with the Heights Manor sale, FREIT recognized a capital gain of approximately $9.5 million of which it distributed approximately $5 million to its shareholders during the fiscal year ended October 31, 2012. As FREIT did not intend to distribute to its shareholders the remaining $4.5 million of capital gain, FREIT provided approximately $1.5 million federal and $400,000 state income taxes on such undistributed gain, which was charged to discontinued operations. In the quarter ended January 31, 2013, FREIT elected, under Section 858 of the Internal Revenue Code, to treat the $1.4 million dividend paid during such period as a distribution of the prior year’s capital gain and, accordingly, reversed $720,000 of the income tax liability, which has been credited to discontinued operations for the current quarter ended January 31, 2013. In January 2013, FREIT entered into a contract for the sale of the Palisades Manor Apartments in Palisades Park, New Jersey for $1.6 million. The sale is expected to close in March 2013. As the property was under contract for sale as of January 31, 2013, the assets and liabilities of the Palisades Manor Apartments have been reclassified to assets related to property held for sale and liabilities related to property held for sale on FREIT’s condensed consolidated balance sheet as of such date. In addition, the operating results of the Palisades Manor apartments have been classified as discontinued operations in the income statements for the three month periods ended January 31, 2013 and 2012. FREIT expects to recognize a gain of approximately $1.5 million in connection with the ultimate sale of this property.

Property held for sale and discontinued operations

3 Months Ended

Jan. 31, 2013

Property Held For Sale And Discontinued Operations

Property held for sale and discontinued operations

Note 6 – Property held for sale & discontinued operations:

On August 29, 2012, FREIT sold its Heights Manor Apartments in Spring Lake Heights, NJ. The current quarter and prior year’s quarter operating results of Heights Manor have been classified as “Income from discontinued operations” in FREIT’s income statement.

In connection with the Heights Manor sale, FREIT recognized a capital gain of approximately $9.5 million of which it distributed approximately $5 million to its shareholders during the fiscal year ended October 31, 2012. As FREIT did not intend to distribute to its shareholders the remaining $4.5 million of capital gain, FREIT provided approximately $1.5 million federal and $400,000 state income taxes on such undistributed gain, which was charged to discontinued operations. In the quarter ended January 31, 2013, FREIT elected, under Section 858 of the Internal Revenue Code, to treat the $1.4 million dividend paid during such period as a distribution of the prior year’s capital gain and, accordingly, reversed $720,000 of the income tax liability, which has been credited to discontinued operations for the current quarter ended January 31, 2013.

In January 2013, FREIT entered into a contract for the sale of the Palisades Manor Apartments in Palisades Park, New Jersey for $1.6 million. The sale is expected to close in March 2013. As the property was under contract for sale as of January 31, 2013, the assets and liabilities of the Palisades Manor Apartments have been reclassified to assets related to property held for sale and liabilities related to property held for sale on FREIT’s condensed consolidated balance sheet as of such date. In addition, the operating results of the Palisades Manor apartments have been classified as discontinued operations in the income statements for the three month periods ended January 31, 2013 and 2012. FREIT expects to recognize a gain of approximately $1.5 million in connection with the ultimate sale of this property.