Segment information

9 Months Ended

Jul. 31, 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 nine and three-month periods ended July 31, 2019 and 2018. 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,
	2019			2018			2019			2018
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	19,865		$	18,990		$	6,786		$	6,424
Residential		24,791			23,805			8,343			8,025
Total real estate rental revenue		44,656			42,795			15,129			14,449
Real estate operating expenses:
Commercial		8,664			8,857			3,013			2,888
Residential		10,512			9,487			3,616			3,620
Total real estate operating expenses		19,176			18,344			6,629			6,508
Net operating income:
Commercial		11,201			10,133			3,773			3,536
Residential		14,279			14,318			4,727			4,405
Total net operating income	$	25,480		$	24,451		$	8,500		$	7,941
Recurring capital improvements - residential	$	(489	)	$	(575	)	$	(204	)	$	(337	)
Reconciliation to condensed consolidated net income attributable to common equity:
Segment NOI	$	25,480		$	24,451		$	8,500		$	7,941
Gain on sale of property		836			—			—			—
Deferred rents - straight lining		313			355			126			182
Investment income		276			201			92			89
Unrealized (loss) gain on interest rate cap contract		(160	)		40			(1	)		21
General and administrative expenses		(3,127	)		(1,748	)		(1,150	)		(556	)
Depreciation		(8,413	)		(8,573	)		(2,806	)		(3,029	)
Financing costs		(13,675	)		(14,108	)		(4,496	)		(4,537	)
Net income		1,530			618			265			111
Net (income) loss attributable to noncontrolling interests in subsidiaries		(86	)		432			(66	)		181
Net income attributable to common equity	$	1,444		$	1,050		$	199		$	292