Segment information

6 Months Ended

Apr. 30, 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).

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.

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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, 2021 and 2020. 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,
	2021		2020		2021		2020
	(In Thousands of Dollars)				(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	12,414	$	13,548	$	6,063	$	6,534
Residential		13,357		15,612		6,748		7,096
Total real estate rental revenue		25,771		29,160		12,811		13,630
Real estate operating expenses:
Commercial		5,811		5,896		3,184		3,172
Residential		5,390		6,348		2,726		2,707
Total real estate operating expenses		11,201		12,244		5,910		5,879
Net operating income:
Commercial		6,603		7,652		2,879		3,362
Residential		7,967		9,264		4,022		4,389
Total net operating income	$	14,570	$	16,916	$	6,901	$	7,751

Recurring capital improvements - residential $ (180 ) $ (226 ) $ (98 ) $ (130 )

Reconciliation to condensed consolidated net income attributable to common equity:
Segment NOI	$	14,570		$	16,916		$	6,901		$	7,751
Deferred rents - straight lining		(213	)		121			(7	)		58
Investment income		59			136			29			64
General and administrative expenses		(2,730	)		(1,828	)		(1,470	)		(1,056	)
Third party transaction costs		-			(4,519	)		-			(1,137	)
Gain on deconsolidation of subsidiary		-			27,680			-			27,680
Loss on investment in tenancy-in-common		(145	)		(18	)		(118	)		(18	)
Depreciation		(4,633	)		(5,462	)		(2,338	)		(2,530	)
Financing costs		(6,192	)		(7,911	)		(3,060	)		(3,676	)
Net income (loss)		716			25,115			(63	)		27,136
Net (income) loss attributable to noncontrolling interests in subsidiaries		(149	)		(157	)		72			84
Net income attributable to common equity	$	567		$	24,958		$	9		$	27,220