Segment information

9 Months Ended

Jul. 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 seven (7) properties after giving effect to the sale of a property on June 12, 2017 (See Note 5).

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 nine and three-month periods ended July 31, 2017 and 2016. 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,
	2017			2016			2017			2016
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	17,764		$	16,952		$	5,694		$	5,534
Residential		19,627			16,875			6,745			5,780
Total real estate rental revenue		37,391			33,827			12,439			11,314
Real estate operating expenses:
Commercial		8,754			8,218			2,919			2,754
Residential		10,649			8,029			3,762			2,703
Total real estate operating expenses		19,403			16,247			6,681			5,457
Net operating income:
Commercial		9,010			8,734			2,775			2,780
Residential		8,978			8,846			2,983			3,077
Total net operating income	$	17,988		$	17,580		$	5,758		$	5,857
Recurring capital improvements - residential	$	(630	)	$	(659	)	$	(251	)	$	(170	)
Reconciliation to condensed consolidated net income attributable to common equity:
Segment NOI	$	17,988		$	17,580		$	5,758		$	5,857
Gain on sale of property		15,395			314			15,395			314
Loan prepayment costs relating to property sale		(1,139	)		—			(1,139	)		—
Lease termination fee		(620	)		—			—			—
Deferred rents - straight lining		552			251			241			276
Investment income		145			106			54			44
General and administrative expenses		(1,672	)		(1,401	)		(515	)		(506	)
Depreciation		(7,887	)		(5,263	)		(2,709	)		(1,791	)
Financing costs		(11,706	)		(8,153	)		(3,984	)		(2,737	)
Net income		11,056			3,434			13,101			1,457
Net (income) loss attributable to  noncontrolling interests in subsidiaries		2,062			(377	)		653			(211	)
Net income attributable to common equity	$	13,118		$	3,057		$	13,754		$	1,246