Segment information

9 Months Ended

Jul. 31, 2016

Segment Reporting [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 nine (9) properties after giving effect to the sale of a property on June 17, 2016 (See Note 5), 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 nine and three-month periods ended July 31, 2016 and 2015. 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,
	2016			2015			2016			2015
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	16,952		$	17,439		$	5,534		$	5,751
Residential		16,875			16,456			5,780			5,463
Total real estate revenue		33,827			33,895			11,314			11,214
Real estate operating expenses:
Commercial		8,218			7,997			2,754			2,582
Residential		8,029			7,952			2,703			2,525
Total real estate operating expenses		16,247			15,949			5,457			5,107
Net operating income:
Commercial		8,734			9,442			2,780			3,169
Residential		8,846			8,504			3,077			2,938
Total net operating income	$	17,580		$	17,946		$	5,857		$	6,107
Recurring capital improvements-
residential	$	(659	)	$	(275	)	$	(170	)	$	(21	)
Reconciliation to consolidated net income attributable to common equity:
Segment NOI	$	17,580		$	17,946		$	5,857		$	6,107
Gain on sale of commercial property		314			—			314			—
Deferred rents - straight lining		251			(219	)		276			(71	)
Amortization of acquired leases		—			(1	)		—			—
Investment income		106			113			44			37
General and administrative expenses		(1,401	)		(1,653	)		(506	)		(509	)
Depreciation		(5,263	)		(4,985	)		(1,791	)		(1,690	)
Financing costs		(8,153	)		(8,370	)		(2,737	)		(2,817	)
Net income		3,434			2,831			1,457			1,057
Net income attributable to  noncontrolling interests		(377	)		(283	)		(211	)		(89	)
Net income attributable to common equity	$	3,057		$	2,548		$	1,246		$	968