Segment information

6 Months Ended

Apr. 30, 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 seven (7) properties, excluding the Pierre Towers property which was converted into a tenancy-in-common and deconsolidated from FREIT’s operating results as of February 28, 2020 (See Note 16 to FREIT’s condensed consolidated financial statements for further details).

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 income attributable to common equity for the six and three month periods ended April 30, 2020 and 2019. 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,
	2020			2019			2020			2019
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	13,548		$	13,079		$	6,534		$	6,452
Residential		15,612			16,448			7,096			8,214
Total real estate rental revenue		29,160			29,527			13,630			14,666
Real estate operating expenses:
Commercial		5,896			5,651			3,172			2,820
Residential		6,348			6,896			2,707			3,401
Total real estate operating expenses		12,244			12,547			5,879			6,221
Net operating income:
Commercial		7,652			7,428			3,362			3,632
Residential		9,264			9,552			4,389			4,813
Total net operating income	$	16,916		$	16,980		$	7,751		$	8,445
Recurring capital improvements - residential	$	(226	)	$	(285	)	$	(130	)	$	(161	)
Reconciliation to condensed consolidated net income attributable to common equity:
Segment NOI	$	16,916		$	16,980		$	7,751		$	8,445
Deferred rents - straight lining		121			187			58			120
Investment income		136			184			64			113
Unrealized loss on interest rate cap contract		—			(159	)		—			(5	)
General and administrative expenses		(1,828	)		(1,391	)		(1,056	)		(783	)
Special committee expenses		(4,519	)		(586	)		(1,137	)		(586	)
Gain on sale of property		—			836			—			836
Gain on deconsolidation of subsidiary		27,680			—			27,680			—
Loss on investment in tenancy-in-common		(18	)		—			(18	)		—
Depreciation		(5,462	)		(5,607	)		(2,530	)		(2,783	)
Financing costs		(7,911	)		(9,179	)		(3,676	)		(4,527	)
Net income		25,115			1,265			27,136			830
Net (income) loss attributable to noncontrolling interests in subsidiaries		(157	)		(20	)		84			(44	)
Net income attributable to common equity	$	24,958		$	1,245		$	27,220		$	786