Segment information

6 Months Ended

Apr. 30, 2018

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 and the residential segment is comprised of eight (8) properties inclusive of the property acquired in Fiscal 2018 (Station Place).

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, 2017. 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 (loss) attributable to common equity for the six and three-month periods ended April 30, 2018 and 2017. Asset information is not reported since FREIT does not use this measure to assess performance.

	Six Months Ended						Three Months Ended
	April 30,						April 30,
	2018			2017			2018			2017
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	12,566		$	12,070		$	6,263		$	5,996
Residential		15,780			12,882			7,987			6,495
Total real estate rental revenue		28,346			24,952			14,250			12,491
Real estate operating expenses:
Commercial		6,001			5,835			2,964			2,950
Residential		5,867			6,887			2,151			3,703
Total real estate operating expenses		11,868			12,722			5,115			6,653
Net operating income:
Commercial		6,565			6,235			3,299			3,046
Residential		9,913			5,995			5,836			2,792
Total net operating income	$	16,478		$	12,230		$	9,135		$	5,838
Recurring capital improvements - residential	$	(238	)	$	(379	)	$	(127	)	$	(179	)
Reconciliation to condensed consolidated net income (loss) attributable to common equity:
Segment NOI	$	16,478		$	12,230		$	9,135		$	5,838
Deferred rents - straight lining		173			311			75			173
Lease termination fee		—			(620	)		—			(620	)
Investment income		112			91			57			45
Unrealized gain on interest rate cap contract		19			—			19			—
General and administrative expenses		(1,192	)		(1,157	)		(639	)		(633	)
Depreciation		(5,512	)		(5,178	)		(2,801	)		(2,648	)
Financing costs		(9,571	)		(7,722	)		(4,419	)		(3,856	)
Net income (loss)		507			(2,045	)		1,427			(1,701	)
Net (income) loss attributable to noncontrolling interests in subsidiaries		251			1,409			(312	)		1,002
Net income (loss) attributable to common equity	$	758		$	(636	)	$	1,115		$	(699	)