Fair value of long-term debt

6 Months Ended

Apr. 30, 2013

Fair Value Of Long-Term Debt

Fair value of long-term debt

Note 10 – Fair value of long-term debt:

The following table shows the estimated fair value and carrying value of FREIT’s long-term debt at April 30, 2013 and October 31, 2012:

	April 30,	October 31,
($ In Millions)	2013	2012
Fair Value	$230.5	$213.2
Carrying Value	$218.3	$200.4

Fair values are estimated based on market interest rates at April 30, 2013 and October 31, 2012 and on discounted cash flow analysis. Changes in assumptions or estimation methods may significantly affect these fair value estimates. The fair value, which is based on observable inputs, has been characterized as level 2 in the fair value hierarchy as provided by authoritative guidance.