Segment information

9 Months Ended

Jul. 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 nine and three-month periods ended July 31, 2015 and 2014. 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,
		2015			2014			2015			2014
	(In Thousands)						(In Thousands)
Real estate rental revenue:
Commercial	$	17,439		$	16,830		$	5,751		$	5,318
Residential		16,456			14,946			5,463			5,157
Total real estate revenue		33,895			31,776			11,214			10,475
Real estate operating expenses:
Commercial		7,997			7,070			2,582			2,103
Residential		7,952			7,017			2,525			2,370
Total real estate operating expenses		15,949			14,087			5,107			4,473
Net operating income:
Commercial		9,442			9,760			3,169			3,215
Residential		8,504			7,929			2,938			2,787
Total net operating income	$	17,946		$	17,689		$	6,107		$	6,002
Recurring capital improvements-residential	$	(275	)	$	(351	)	$	(21	)	$	(210	)
Reconciliation to consolidated net income:
Segment NOI	$	17,946		$	17,689		$	6,107		$	6,002
Deferred rents - straight lining		(219	)		(123	)		(71	)		(37	)
Amortization of acquired leases		(1	)		(16	)		—			(5	)
Investment income		113			133			37			50
General and administrative expenses		(1,653	)		(1,222	)		(509	)		(419	)
Acquisition costs - Regency		—			(648	)		—			(648	)
Depreciation		(4,985	)		(4,654	)		(1,690	)		(1,614	)
Financing costs		(8,370	)		(8,434	)		(2,817	)		(2,613	)
Income from continuing operations		2,831			2,725			1,057			716
Income from discontinued operations		—			7			—			—
Gain on sale of discontinued operation		—			8,734			—			—
Net income		2,831			11,466			1,057			716
Net income attributable to noncontrolling
interests		(283	)		(453	)		(89	)		(162	)
Net income attributable to common equity	$	2,548		$	11,013		$	968		$	554