Segment information

12 Months Ended

Oct. 31, 2015

Segment information [Abstract]

Segment information

Note 14- 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, 2015, 2014 and 2013. The residential segment is comprised of seven (7) properties during the fiscal years ended October 31, 2015 and 2014 and six (6) properties during the fiscal year ended October 31, 2013, exclusive of the residential properties sold in Fiscal 2013 which has 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, 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), 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, 2015. Asset information is not reported since FREIT does not use this measure to assess performance.

	Years Ended October 31,
	2015			2014			2013
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	23,037		$	22,424		$	22,876
Residential		21,966			20,419			18,497
Total real estate revenue		45,003			42,843			41,373
Real estate operating expenses:
Commercial		10,436			9,663			9,235
Residential		10,626			9,757			8,892
Total real estate operating expenses		21,062			19,420			18,127
Net operating income:
Commercial		12,601			12,761			13,641
Residential		11,340			10,662			9,605
Total net operating income	$	23,941		$	23,423		$	23,246
Recurring capital improvements-
residential	$	(424	)	$	(549	)	$	(681	)
Reconciliation to consolidated net income attributable to common equity:
Segment NOI	$	23,941		$	23,423		$	23,246
Deferred rents - straight lining		(219	)		(93	)		(12	)
Amortization of acquired leases		(1	)		(21	)		(24	)
Investment income		150			184			191
General and administrative expenses		(2,029	)		(1,396	)		(1,623	)
Straight line rent adjustment - bankrupt tenant		(1,046	)		-			-
G-Mart lease termination expenses		-			(371	)		-
Acquisition costs-Regency		-			(648	)		-
Depreciation		(6,883	)		(6,346	)		(6,233	)
Financing costs		(11,001	)		(11,309	)		(11,945	)
Income from continuing operations		2,912			3,423			3,600
Income from discontinued operations		-			7			797
Gain on sale of discontinued operation		-			8,734			3,545
Net income		2,912			12,164			7,942
Net income attributable to noncontrolling interests		(281	)		(507	)		(493	)
Net income attributable to common equity	$	2,631		$	11,657		$	7,449