Property held for sale and discontinued operations	9 Months Ended
Jul. 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 operating results of Heights Manor for the nine and three-month periods ended July 31, 2012 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 income from discontinued operations for the nine-month period ended July 31, 2013. On April 26, 2013, FREIT sold its Palisades Manor Apartments in Palisades Park, New Jersey and recognized a capital gain of $1.4 million from the sale. It is FREIT’s intent to structure this sale in a manner that would qualify as a like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code, which would result in a deferral for income tax purposes of the $1.4 million gain of the Palisades Manor sale. However, there is a possibility that the acquisition of the property identified in the 1031 exchange may not take place. Therefore, if the 1031 exchange does not occur, then management will decide whether to pay out the gain of $1.4 million as a capital gain dividend to FREIT shareholders, or retain the proceeds within the operation and pay the related income taxes in 2013. FREIT management will make this decision prior to the fiscal 2013 year-end close on October 31, 2013. In connection therewith, the proceeds of $1.4 million have been placed in escrow and are included in other assets in the accompanying balance sheet at July 31, 2013.The gain on the sale, as well as the earnings of the Palisades Manor operation are classified as discontinued operations in the accompanying income statements for all periods presented . On August 13, 2013, FREIT sold its Grandview Apartments in Hasbrouck Heights, New Jersey for $2.5 million. It is FREIT’s intent to structure this sale in a manner that would qualify as a like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code, which would result in a deferral for income tax purposes of the $2.3 million gain on the Grandview sale. As the property was under contract for sale as of July 31, 2013, the assets and liabilities of the Grandview Apartments have been classified 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 Grandview operation have been classified as discontinued operations in the accompanying income statements for all periods presented. Revenue attributable to discontinued operations for the nine and three-month periods ended July 31, 2013 was $306,000 and $77,000, respectively, and $1,113,000 and $376,000 for the nine and three-month periods ended July 31, 2012, respectively.

Property held for sale and discontinued operations

9 Months Ended

Jul. 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 operating results of Heights Manor for the nine and three-month periods ended July 31, 2012 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 income from discontinued operations for the nine-month period ended July 31, 2013.

On April 26, 2013, FREIT sold its Palisades Manor Apartments in Palisades Park, New Jersey and recognized a capital gain of $1.4 million from the sale. It is FREIT’s intent to structure this sale in a manner that would qualify as a like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code, which would result in a deferral for income tax purposes of the $1.4 million gain of the Palisades Manor sale. However, there is a possibility that the acquisition of the property identified in the 1031 exchange may not take place. Therefore, if the 1031 exchange does not occur, then management will decide whether to pay out the gain of $1.4 million as a capital gain dividend to FREIT shareholders, or retain the proceeds within the operation and pay the related income taxes in 2013. FREIT management will make this decision prior to the fiscal 2013 year-end close on October 31, 2013. In connection therewith, the proceeds of $1.4 million have been placed in escrow and are included in other assets in the accompanying balance sheet at July 31, 2013.The gain on the sale, as well as the earnings of the Palisades Manor operation are classified as discontinued operations in the accompanying income statements for all periods presented .

On August 13, 2013, FREIT sold its Grandview Apartments in Hasbrouck Heights, New Jersey for $2.5 million. It is FREIT’s intent to structure this sale in a manner that would qualify as a like-kind exchange of real estate pursuant to Section 1031 of the Internal Revenue Code, which would result in a deferral for income tax purposes of the $2.3 million gain on the Grandview sale. As the property was under contract for sale as of July 31, 2013, the assets and liabilities of the Grandview Apartments have been classified 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 Grandview operation have been classified as discontinued operations in the accompanying income statements for all periods presented.

Revenue attributable to discontinued operations for the nine and three-month periods ended July 31, 2013 was $306,000 and $77,000, respectively, and $1,113,000 and $376,000 for the nine and three-month periods ended July 31, 2012, respectively.