Segment information

3 Months Ended

Jan. 31, 2015

Segment information [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 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, 2014.

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 three-month period ended January 31, 2015 and 2014. Asset information is not reported since FREIT does not use this measure to assess performance.

	Three Months Ended
	January 31,
	2015			2014
	(In Thousands)
Real estate rental revenue:
Commercial	$	5,744		$	5,707
Residential		5,612			4,916
Total real estate revenue		11,356			10,623
Real estate operating expenses:
Commercial		2,432			2,324
Residential		2,654			2,274
Total real estate operating expenses		5,086			4,598
Net operating income:
Commercial		3,312			3,383
Residential		2,958			2,642
Total net operating income	$	6,270		$	6,025
Recurring capital improvements-residential	$	(86	)	$	(104	)
Reconciliation to consolidated net income:
Segment NOI	$	6,270		$	6,025
Deferred rents - straight lining		(75	)		(46	)
Amortization of acquired leases		(1	)		(5	)
Investment income		40			42
General and administrative expenses		(492	)		(402	)
Depreciation		(1,647	)		(1,520	)
Financing costs		(2,782	)		(2,976	)
Income from continuing operations		1,313			1,118
Income from discontinued operations		-			7
Gain on sale of discontinued operation		-			8,693
Net income		1,313			9,818
Net income attributable to noncontrolling
interests		(265	)		(193	)
Net income attributable to common equity	$	1,048		$	9,625