Segment information

3 Months Ended

Jan. 31, 2016

Segment information [Abstract]

Segment information

Note 10 - 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 is comprised of ten (10) properties and the residential segment is comprised of 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, 2015.

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), 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 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.

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 attributable to common equity for the three-month periods ended January 31, 2016 and 2015. Asset information is not reported since FREIT does not use this measure to assess performance.

	Three Months Ended
	January 31,
		2016			2015
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	5,925		$	5,744
Residential		5,522			5,612
Total real estate revenue		11,447			11,356
Real estate operating expenses:
Commercial		2,799			2,432
Residential		2,701			2,654
Total real estate operating expenses		5,500			5,086
Net operating income:
Commercial		3,126			3,312
Residential		2,821			2,958
Total net operating income	$	5,947		$	6,270
Recurring capital improvements-
residential	$	(314	)	$	(86	)
Reconciliation to consolidated net income attributable to common equity:
Segment NOI	$	5,947		$	6,270
Deferred rents - straight lining		(23	)		(75	)
Amortization of acquired leases		—			(1	)
Investment income		39			40
General and administrative expenses		(471	)		(492	)
Depreciation		(1,720	)		(1,647	)
Financing costs		(2,729	)		(2,782	)
Net income		1,043			1,313
Net income attributable to noncontrolling interests		(41	)		(265	)
Net income attributable to common equity	$	1,002		$	1,048