Segment Information

12 Months Ended

Oct. 31, 2024

Segment Information [Abstract]

Segment information

Note 13 - Segment information:

ASC 280-10, "Disclosures about Segments of an Enterprise and Related Information", establishes standards for reporting financial information about operating segments in interim and annual financial reports and provides for a "management approach" in identifying the reportable segments. 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 sold in Fiscal 2022 (see Note 2), during the fiscal years ended October 31, 2024, 2023 and 2022. The residential segment is comprised of six (6) properties, excluding the Icon at the Rotunda Property sold in Fiscal 2022 (see Note 2), during the fiscal years ended October 31, 2024, 2023 and 2022.

The accounting policies of the segments are the same as those described in Note 1. 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 U.S. 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 consolidated net income attributable to common equity for each of the years in the three-year period ended October 31, 2024. Asset information is not reported since FREIT does not use this measure to assess performance.

	Years Ended October 31,
	2024			2023			2022
	(In Thousands of Dollars)
Real estate rental revenue:
Commercial	$	7,895		$	8,789		$	10,626
Residential		20,901			19,655			20,627
Total real estate rental revenue		28,796			28,444			31,253
Real estate operating expenses:
Commercial		4,826			5,080			6,427
Residential		8,919			8,674			8,854
Total real estate operating expenses		13,745			13,754			15,281
Net operating income:
Commercial		3,069			3,709			4,199
Residential		11,982			10,981			11,773
Total net operating income	$	15,051		$	14,690		$	15,972
Recurring capital improvements - residential	$	(1,154	)	$	(532	)	$	(1,034	)
Reconciliation to consolidated net income attributable to common equity:
Segment NOI	$	15,051		$	14,690		$	15,972
Deferred rents - straight lining		(118	)		(100	)		18
Investment income		1,560			1,013			358
Net (loss) gain on sale of Maryland properties		(356	)		(1,003	)		68,771
Litigation settlement, net of fees		15,673			—			—
Net realized gain on Wayne PSC interest rate swap termination		—			—			1,415
Loss on investment in tenancy-in-common		(170	)		(271	)		(228	)
General and administrative expenses		(4,419	)		(4,243	)		(5,003	)
Depreciation		(2,981	)		(2,944	)		(3,995	)
Financing costs		(7,307	)		(7,717	)		(8,064	)
Net income (loss)		16,933			(575	)		69,244
Net (income)  loss attributable to  noncontrolling interests in subsidiaries		(1,081	)		1,335			(23,252	)
Net income attributable to common equity	$	15,852		$	760		$	45,992