Segment information

3 Months Ended

Jan. 31, 2017

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 eight (8) 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, 2016. 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 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, 2017 and 2016. Asset information is not reported since FREIT does not use this measure to assess performance. 

	Three Months Ended
	January 31,
	2017			2016
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	6,074		$	5,925
Residential		6,387			5,522
Total real estate rental revenue		12,461			11,447
Real estate operating expenses:
Commercial		2,885			2,799
Residential		3,184			2,701
Total real estate operating expenses		6,069			5,500
Net operating income:
Commercial		3,189			3,126
Residential		3,203			2,821
Total net operating income	$	6,392		$	5,947
Recurring capital improvements - residential	$	(553	)	$	(314	)
Reconciliation to condensed consolidated net income attributable to common equity:
Segment NOI	$	6,392		$	5,947
Deferred rents - straight lining		138			(23	)
Investment income		46			39
General and administrative expenses		(524	)		(471	)
Depreciation		(2,530	)		(1,720	)
Financing costs		(3,866	)		(2,729	)
Net income (loss)		(344	)		1,043
Net (income) loss attributable to  noncontrolling interests in subsidiaries		407			(41	)
Net income attributable to common equity	$	63		$	1,002