Segment information

12 Months Ended

Oct. 31, 2014

Segment information [Abstract]

Segment information

Note 15- Segment information:

ASC 280-10, "Disclosures about Segments of an Enterprise and Related Information", established standards for reporting financial information about operating segments in interim and annual financial reports and provides for a "management approach" in identifying the reportable segments.

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 is comprised of ten (10) properties during the fiscal years ended October 31, 2014, 2013 and 2012. The residential segment is comprised of seven (7) properties during the fiscal year ended October 31, 2014, inclusive of the property acquired in fiscal 2014, and six (6) properties during the fiscal years ended October 31, 2013 and 2012, exclusive of the residential properties sold in Fiscal 2013 and Fiscal 2012 which have been classified as discontinued operations.

The accounting policies of the segments are the same as those described in Note 1.

The chief operating decision-making group of FREIT's commercial segment, residential segment and corporate/other is comprised of the Board.

FREIT assesses and measures segment operating results based on net operating income ("NOI"). NOI is based on operating revenue and expenses directly associated with the operations of the real estate properties, but excludes: deferred rents (straight lining), depreciation, financing costs, amortization of acquired lease values and other items. NOI is not a measure of operating results or cash flows from operating activities as measured by accounting principles generally accepted in the United States of America, 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 consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2014. Asset information is not reported since FREIT does not use this measure to assess performance.

	Years Ended October 31,
	2014			2013			2012
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	22,424		$	22,876		$	23,383
Residential		20,419			18,497			18,680
Totals		42,843			41,373			42,063
Real estate operating expenses:
Commercial		9,663			9,235			9,526
Residential		9,757			8,892			8,442
Totals		19,420			18,127			17,968
Net operating income:
Commercial		12,761			13,641			13,857
Residential		10,662			9,605			10,238
Totals	$	23,423		$	23,246		$	24,095
Recurring capital improvements-
residential	$	(549	)	$	(681	)	$	(697	)
Reconciliation to consolidated net
income-common equity:
Segment NOI	$	23,423		$	23,246		$	24,095
Deferred rents - straight lining		(93	)		(12	)		17
Amortization of acquired above and below
market value leases		(21	)		(24	)		(2	)
Net investment income		184			191			173
General and administrative expenses		(1,396	)		(1,623	)		(1,624	)
G-Mart lease termination expenses		(371	)		—			—
Acquisition costs-Regency		(648	)		—			—
Depreciation		(6,346	)		(6,233	)		(6,171	)
Deferred project cost write-off, net of
income relating to early lease termination		—			—			(776	)
Financing costs		(11,309	)		(11,945	)		(11,704	)
Income from continuing operations		3,423			3,600			4,008
Income from discontinued operation		7			797			460
Gain on sale of discontinued operation		8,734			3,545			7,528	(a)
Net income		12,164			7,942			11,996
Net income attributable to
noncontrolling interests in subsidiaries		(507	)		(493	)		(645	)
Net income attributable to common equity	$	11,657		$	7,449		$	11,351

(a) Represents gain of $9,493 net of federal and state tax of $1,965.