Segment information

9 Months Ended

Jul. 31, 2011

Segment information [Abstract]

Segment information

Note 4 - 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 contains ten (10) separate properties and the residential segment contains nine (9) properties. 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, 2010.

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), lease amortization, 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-common equity for the nine and three-month periods ended July 31, 2011 and 2010. 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,
	2011			2010			2011			2010
	(In Thousands of Dollars)						(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	17,893		$	18,617		$	5,934		$	6,012
Residential		14,725			14,299			4,935			4,789
Total Revenue		32,618			32,916			10,869			10,801
Real estate operating expenses:
Commercial		7,198			7,337			2,246			2,333
Residential		6,281			6,901			2,039			2,199
Total Expense		13,479			14,238			4,285			4,532
Net operating income:
Commercial		10,695			11,280			3,688			3,679
Residential		8,444			7,398			2,896			2,590
Total NOI	$	19,139		$	18,678		$	6,584		$	6,269
Recurring capital improvements-residential	$	367		$	254		$	228		$	134
Reconciliation to consolidated net income:
Segment NOI	$	19,139		$	18,678		$	6,584		$	6,269
Deferred rents - straight lining		162			162			72			53
Amortization of acquired leases		(18	)		(22	)		(6	)		(7	)
Investment income		77			95			25			29
General and administrative expenses		(1,189	)		(1,233	)		(393	)		(392	)
Depreciation		(4,560	)		(4,556	)		(1,538	)		(1,492	)
Financing costs		(8,724	)		(8,703	)		(2,910	)		(2,922	)
Net income		4,887			4,421			1,834			1,538
Net income attributable to noncontrolling interests		(1,043	)		(743	)		(329	)		(162	)
Net income attributable to common equity	$	3,844		$	3,678		$	1,505		$	1,376