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Segment Information
 3 Months Ended
Jan. 31, 2026
Segment Information [Abstract]  
Segment information

Note 8 - 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 and the residential segment is comprised of six (6) 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, 2025. 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.

 

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 three months ended January 31, 2026 and 2025. Asset information is not reported since FREIT does not use this measure to assess performance.

 

   Three Months Ended 
   January 31, 
   2026   2025 
   (In Thousands of Dollars) 
Real estate rental revenue:          
Commercial $1,958  $1,934 
Residential  5,555   5,363 
Total real estate rental revenue  7,513   7,297 
           
Real estate operating expenses:          
Commercial  1,349   1,367 
Residential  2,341   2,369 
Total real estate operating expenses  3,690   3,736 
           
Net operating income:          
Commercial  609   567 
Residential  3,214   2,994 
Total net operating income $3,823  $3,561 
           
           
Recurring capital improvements - residential $(62) $(77)
           
           
Reconciliation to condensed consolidated net income attributable to common equity:          
Segment NOI $3,823  $3,561 
Deferred rents - straight lining  (9)  (28)
Investment income  284   400 
General and administrative expenses  (713)  (845)
(Loss) income on investment in tenancy-in-common  (1)  9 
Depreciation  (721)  (723)
Financing costs  (1,861)  (1,873)
Net income  802   501 
Net loss attributable to noncontrolling interests in subsidiaries  141   113 
Net income attributable to common equity $943  $614