Segment information

3 Months Ended

Jan. 31, 2021

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 TIC and deconsolidated from FREIT’s operating results as of February 28, 2020 (See Note 5 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, 2020. 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 three month periods ended January 31, 2021 and 2020. Asset information is not reported since FREIT does not use this measure to assess performance.

	Three Months Ended
	January 31,
	2021		2020
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	6,351	$	7,014
Residential		6,609		8,516
Total real estate rental revenue		12,960		15,530
Real estate operating expenses:
Commercial		2,627		2,724
Residential		2,664		3,641
Total real estate operating expenses		5,291		6,365
Net operating income:
Commercial		3,724		4,290
Residential		3,945		4,875
Total net operating income	$	7,669	$	9,165

Recurring capital improvements - residential $ (82 ) $ (96 )

Reconciliation to condensed consolidated net income (loss) attributable to common equity:
Segment NOI	$	7,669		$	9,165
Deferred rents - straight lining		(206	)		63
Investment income		30			72
General and administrative expenses		(1,260	)		(772	)
Special committee third party advisory, legal and other expenses		-			(3,382	)
Loss on investment in tenancy-in-common		(27	)		-
Depreciation		(2,295	)		(2,932	)
Financing costs		(3,132	)		(4,235	)
Net income (loss)		779			(2,021	)
Net income attributable to noncontrolling interests in subsidiaries		(221	)		(241	)
Net income (loss) attributable to common equity	$	558		$	(2,262	)