Segment information

6 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

Segment information

Note 11 - 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 six (6) 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, 2013.

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 (“Board”).

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.

Continuing 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, 2014 and 2013. 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,
	2014			2013			2014			2013
	(In Thousands)						(In Thousands)
Real estate rental revenue:
Commercial	$	11,512		$	11,220		$	5,804		$	5,355
Residential		9,790			9,199			4,874			4,611
Total real estate revenue		21,302			20,419			10,678			9,966
Real estate operating expenses:
Commercial		4,966			4,487			2,643			2,258
Residential		4,648			4,461			2,375			2,173
Total real estate operating expenses		9,614			8,948			5,018			4,431
Net operating income:
Commercial		6,546			6,733			3,161			3,097
Residential		5,142			4,738			2,499			2,438
Total net operating income	$	11,688		$	11,471		$	5,660		$	5,535
Recurring capital improvements-residential	$	(141	)	$	(201	)	$	(37	)	$	(144	)
Reconciliation to consolidated net income:
Segment NOI	$	11,688		$	11,471		$	5,660		$	5,535
Deferred rents - straight lining		(87	)		(112	)		(41	)		(54	)
Amortization of acquired leases		(11	)		(12	)		(5	)		(6	)
Investment income		83			100			41			50
General and administrative expenses		(803	)		(869	)		(401	)		(446	)
Depreciation		(3,040	)		(3,022	)		(1,520	)		(1,512	)
Financing costs		(5,821	)		(6,083	)		(2,844	)		(3,064	)
Income from continuing operations		2,009			1,473			890			503
Income from discontinued operations		7			762			—			32
Gain on sale of discontinued operation		8,734			1,377			41			1,377
Net income		10,750			3,612			931			1,912
Net income attributable to noncontrolling
interests		(291	)		(272	)		(98	)		(43	)
Net income attributable to common equity	$	10,459		$	3,340		$	833		$	1,869