Segment information

3 Months Ended

Jan. 31, 2019

Segment Reporting [Abstract]

Segment information

Note 9 - 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 eight (8) properties, excluding the land and building formerly occupied as a Pathmark supermarket in Patchogue, New York, which was sold on February 8, 2019 (see Note 13 to FREIT’s condensed consolidated financial statements). 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, 2018. 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 three month periods ended January 31, 2019 and 2018. Asset information is not reported since FREIT does not use this measure to assess performance.

	Three Months Ended
	January 31,
	2019			2018
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	6,627		$	6,303
Residential		8,234			7,793
Total real estate rental revenue		14,861			14,096
Real estate operating expenses:
Commercial		2,831			3,037
Residential		3,495			3,716
Total real estate operating expenses		6,326			6,753
Net operating income:
Commercial		3,796			3,266
Residential		4,739			4,077
Total net operating income	$	8,535		$	7,343
Recurring capital improvements - residential	$	(124	)	$	(111	)
Reconciliation to condensed consolidated net income (loss) attributable to common equity:
Segment NOI	$	8,535		$	7,343
Deferred rents - straight lining		67			98
Investment income		71			55
Unrealized loss on interest rate cap contract		(154	)		—
General and administrative expenses		(608	)		(553	)
Depreciation		(2,824	)		(2,711	)
Financing costs		(4,652	)		(5,152	)
Net income (loss)		435			(920	)
Net loss attributable to noncontrolling interests in subsidiaries		24			563
Net income (loss) attributable to common equity	$	459		$	(357	)