Segment information

6 Months Ended

Apr. 30, 2019

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 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 6 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 attributable to common equity for the six and three-month periods ended April 30, 2019 and 2018. 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,
	2019			2018			2019			2018
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	13,079		$	12,566		$	6,452		$	6,263
Residential		16,448			15,780			8,214			7,987
Total real estate rental revenue		29,527			28,346			14,666			14,250
Real estate operating expenses:
Commercial		5,651			6,001			2,820			2,964
Residential		6,896			5,867			3,401			2,151
Total real estate operating expenses		12,547			11,868			6,221			5,115
Net operating income:
Commercial		7,428			6,565			3,632			3,299
Residential		9,552			9,913			4,813			5,836
Total net operating income	$	16,980		$	16,478		$	8,445		$	9,135
Recurring capital improvements - residential	$	(285	)	$	(238	)	$	(161	)	$	(127	)
Reconciliation to condensed consolidated net income attributable to common equity:
Segment NOI	$	16,980		$	16,478		$	8,445		$	9,135
Gain on sale of property		836			-			836			-
Deferred rents - straight lining		187			173			120			75
Investment income		184			112			113			57
Unrealized (loss) gain on interest rate cap contract		(159	)		19			(5	)		19
General and administrative expenses		(1,977	)		(1,192	)		(1,369	)		(639	)
Depreciation		(5,607	)		(5,512	)		(2,783	)		(2,801	)
Financing costs		(9,179	)		(9,571	)		(4,527	)		(4,419	)
Net income		1,265			507			830			1,427
Net (income) loss attributable to noncontrolling interests in subsidiaries		(20	)		251			(44	)		(312	)
Net income attributable to common equity	$	1,245		$	758		$	786		$	1,115