Segment information

3 Months Ended

Jan. 31, 2020

Segment Reporting [Abstract]

Segment information

Note 11 - 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 and 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, 2019. 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.

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 (loss) income attributable to common equity for the three month periods ended January 31, 2020 and 2019. Asset information is not reported since FREIT does not use this measure to assess performance.

	Three Months Ended
	January 31,
	2020			2019
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	7,014		$	6,627
Residential		8,516			8,234
Total real estate rental revenue		15,530			14,861
Real estate operating expenses:
Commercial		2,724			2,831
Residential		3,641			3,495
Total real estate operating expenses		6,365			6,326
Net operating income:
Commercial		4,290			3,796
Residential		4,875			4,739
Total net operating income	$	9,165		$	8,535
Recurring capital improvements - residential	$	(96	)	$	(124	)
Reconciliation to condensed consolidated net (loss) income attributable to common equity:
Segment NOI	$	9,165		$	8,535
Deferred rents - straight lining		63			67
Investment income		72			71
Unrealized loss on interest rate cap contract		—			(154	)
General and administrative expenses		(772	)		(608	)
Special committee expenses		(3,382	)		—
Depreciation		(2,932	)		(2,824	)
Financing costs		(4,235	)		(4,652	)
Net (loss) income		(2,021	)		435
Net (income) loss attributable to noncontrolling interests in subsidiaries		(241	)		24
Net (loss) income attributable to common equity	$	(2,262	)	$	459