Segment information

9 Months Ended

Jul. 31, 2014

Segment Reporting [Abstract]

Segment information

Note 12 - 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 seven (7) 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 nine and three-month periods ended July 31, 2014 and 2013. Asset information is not reported since FREIT does not use this measure to assess performance.

	Nine Months Ended						Three Months Ended
	July 31,						July 31,
	2014			2013			2014			2013
	(In Thousands)						(In Thousands)
Real estate rental revenue:
Commercial	$	16,830		$	17,011		$	5,318		$	5,793
Residential		14,946			13,811			5,157			4,612
Total real estate revenue		31,776			30,822			10,475			10,405
Real estate operating expenses:
Commercial		7,070			6,843			2,103			2,356
Residential		7,017			6,629			2,370			2,168
Total real estate operating expenses		14,087			13,472			4,473			4,524
Net operating income:
Commercial		9,760			10,168			3,215			3,437
Residential		7,929			7,182			2,787			2,444
Total net operating income	$	17,689		$	17,350		$	6,002		$	5,881
Recurring capital improvements-residential	$	(351	)	$	(542	)	$	(210	)	$	(341	)
Reconciliation to consolidated net income:
Segment NOI	$	17,689		$	17,350		$	6,002		$	5,881
Deferred rents - straight lining		(123	)		(126	)		(37	)		(15	)
Amortization of acquired leases		(16	)		(18	)		(5	)		(6	)
Investment income		133			150			50			50
General and administrative expenses		(1,222	)		(1,274	)		(419	)		(405	)
Acquisition costs - Regency		(648	)		—			(648	)		—
Depreciation		(4,654	)		(4,533	)		(1,614	)		(1,511	)
Financing costs		(8,434	)		(9,032	)		(2,613	)		(2,949	)
Income from continuing operations		2,725			2,517			716			1,045
Income from discontinued operations		7			811			—			48
Gain on sale of discontinued operation		8,734			1,377			—			—
Net income		11,466			4,705			716			1,093
Net income attributable to noncontrolling
interests		(453	)		(454	)		(162	)		(182	)
Net income attributable to common equity	$	11,013		$	4,251		$	554		$	911