Segment information

9 Months Ended

Jul. 31, 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 attributable to common equity for the nine and three-month periods ended July 31, 2018 and 2017. 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,
	2018			2017			2018			2017
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	18,990		$	17,764		$	6,424		$	5,694
Residential		23,805			19,627			8,025			6,745
Total real estate rental revenue		42,795			37,391			14,449			12,439
Real estate operating expenses:
Commercial		8,857			8,754			2,888			2,919
Residential		9,487			10,649			3,620			3,762
Total real estate operating expenses		18,344			19,403			6,508			6,681
Net operating income:
Commercial		10,133			9,010			3,536			2,775
Residential		14,318			8,978			4,405			2,983
Total net operating income	$	24,451		$	17,988		$	7,941		$	5,758
Recurring capital improvements - residential	$	(575	)	$	(630	)	$	(337	)	$	(251	)
Reconciliation to condensed consolidated net income attributable to common equity:
Segment NOI	$	24,451		$	17,988		$	7,941		$	5,758
Gain on sale  of property		—			15,395			—			15,395
Loan prepayment costs relating to property sale		—			(1,139	)		—			(1,139	)
Deferred rents - straight lining		355			552			182			241
Lease termination fee		—			(620	)		—			—
Investment income		201			145			89			54
Unrealized gain on interest rate cap contract		40			—			21			—
General and administrative expenses		(1,748	)		(1,672	)		(556	)		(515	)
Depreciation		(8,573	)		(7,887	)		(3,029	)		(2,709	)
Financing costs		(14,108	)		(11,706	)		(4,537	)		(3,984	)
Net income		618			11,056			111			13,101
Net loss attributable to noncontrolling interests in subsidiaries		432			2,062			181			653
Net income attributable to common equity	$	1,050		$	13,118		$	292		$	13,754