Segment information

9 Months Ended

Jul. 31, 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 nine and three-month periods ended July 31, 2022 and 2021. 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,
	2022		2021		2022		2021
	(In Thousands of Dollars)				(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	8,445	$	18,299	$	2,179	$	5,885
Residential		15,803		20,026		4,744		6,669
Total real estate rental revenue		24,248		38,325		6,923		12,554
Real estate operating expenses:
Commercial		5,146		8,346		1,227		2,535
Residential		6,788		8,232		2,101		2,842
Total real estate operating expenses		11,934		16,578		3,328		5,377
Net operating income:
Commercial		3,299		9,953		952		3,350
Residential		9,015		11,794		2,643		3,827
Total net operating income	$	12,314	$	21,747	$	3,595	$	7,177

Recurring capital improvements - residential $ (401 ) $ (438 ) $ (195 ) $ (258 )