Segment information

9 Months Ended

Jul. 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 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).

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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 (loss) attributable to common equity for the nine and three month periods ended July 31, 2020 and 2019. 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,
	2020		2019		2020		2019
	(In Thousands of Dollars)				(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	19,638	$	19,865	$	6,090	$	6,786
Residential		22,005		24,791		6,393		8,343
Total real estate rental revenue		41,643		44,656		12,483		15,129
Real estate operating expenses:
Commercial		8,810		8,664		2,914		3,013
Residential		8,997		10,512		2,649		3,616
Total real estate operating expenses		17,807		19,176		5,563		6,629
Net operating income:
Commercial		10,828		11,201		3,176		3,773
Residential		13,008		14,279		3,744		4,727
Total net operating income	$	23,836	$	25,480	$	6,920	$	8,500

Recurring capital improvements - residential $ (353 ) $ (489 ) $ (127 ) $ (204 )

Reconciliation to condensed consolidated net income (loss) attributable to common equity:
Segment NOI	$	23,836		$	25,480		$	6,920		$	8,500
Deferred rents - straight lining		(213	)		313			(334	)		126
Investment income		174			276			38			92
Unrealized loss on interest rate cap contract		-			(160	)		-			(1	)
General and administrative expenses		(3,061	)		(2,109	)		(1,233	)		(718	)
Special committee advisory, legal and other expenses		(4,606	)		(1,018	)		(87	)		(432	)
Gain on sale of property		-			836			-			-
Gain on deconsolidation of subsidiary		27,680			-			-			-
Loss on investment in tenancy-in-common		(96	)		-			(78	)		-
Depreciation		(7,887	)		(8,413	)		(2,425	)		(2,806	)
Financing costs		(11,032	)		(13,675	)		(3,121	)		(4,496	)
Net income (loss)		24,795			1,530			(320	)		265
Net (income) loss attributable to noncontrolling interests in subsidiaries		(18	)		(86	)		139			(66	)
Net income (loss) attributable to common equity	$	24,777		$	1,444		$	(181	)	$	199