Segment information

6 Months Ended

Apr. 30, 2022

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 five (5) properties, excluding the Rotunda Property, the Westridge Square Property and the Damascus Property which were sold on December 30, 2021, January 7, 2022 and January 10, 2022, respectively. The residential segment is comprised of six (6) properties, excluding the Icon at the Rotunda Property which was sold on December 30, 2021. (See Note 7 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, 2021. The chief operating and decision-making group responsible for oversight and strategic decisions of FREIT's commercial segment, residential segment and corporate/other is comprised of FREIT’s Board.

FREIT, through its chief operating and decision making group, 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, 2022 and 2021. 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,
	2022		2021		2022		2021
	(In Thousands of Dollars)				(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	6,266	$	12,414	$	1,945	$	6,063
Residential		11,059		13,357		4,721		6,748
Total real estate rental revenue		17,325		25,771		6,666		12,811
Real estate operating expenses:
Commercial		3,919		5,811		1,234		3,184
Residential		4,687		5,390		2,046		2,726
Total real estate operating expenses		8,606		11,201		3,280		5,910
Net operating income:
Commercial		2,347		6,603		711		2,879
Residential		6,372		7,967		2,675		4,022
Total net operating income	$	8,719	$	14,570	$	3,386	$	6,901

Recurring capital improvements - residential $ (206 ) $ (180 ) $ (158 ) $ (98 )

Reconciliation to condensed consolidated net income (loss) attributable to common equity:
Segment NOI	$	8,719		$	14,570		$	3,386		$	6,901
Deferred rents - straight lining		(61	)		(213	)		(51	)		(7	)
Investment income		64			59			38			29
General and administrative expenses		(2,196	)		(2,730	)		(869	)		(1,470	)
Loss on investment in tenancy-in-common		(156	)		(145	)		(32	)		(118	)
Depreciation		(2,534	)		(4,633	)		(714	)		(2,338	)
Net gain (loss) on sale of Maryland properties		68,771			-			(1,232	)		-
Financing costs		(4,455	)		(6,192	)		(1,527	)		(3,060	)
Net income (loss)		68,152			716			(1,001	)		(63	)
Net (income) loss attributable to noncontrolling interests in subsidiaries		(22,727	)		(149	)		649			72
Net income (loss) attributable to common equity	$	45,425		$	567		$	(352	)	$	9