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Segment Information
 6 Months Ended
Apr. 30, 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 six and three months ended April 30, 2026 and 2025. 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,  
    2026     2025     2026     2025  
    (In Thousands of Dollars)     (In Thousands of Dollars)  
Real estate rental revenue:                                
Commercial   $ 4,042     $ 3,780     $ 2,084     $ 1,846  
Residential     11,106       10,803       5,551       5,440  
Total real estate rental revenue     15,148       14,583       7,635       7,286  
                                 
Real estate operating expenses:                                
Commercial     2,828       2,650       1,479       1,283  
Residential     4,683       4,551       2,342       2,182  
Total real estate operating expenses     7,511       7,201       3,821       3,465  
                                 
Net operating income:                                
Commercial     1,214       1,130       605       563  
Residential     6,423       6,252       3,209       3,258  
Total net operating income   $ 7,637     $ 7,382     $ 3,814     $ 3,821  
                                 
                                 
 Recurring capital improvements - residential   $ (248 )   $ (203 )   $ (186 )   $ (126 )
                                 
                                 
Reconciliation to condensed consolidated net income attributable to common equity:                                
Segment NOI   $ 7,637     $ 7,382     $ 3,814     $ 3,821  
Deferred rents - straight lining     (10 )     (56 )     (1 )     (28 )
Investment income     549       750       265       350  
General and administrative expenses     (1,765 )     (1,636 )     (1,052 )     (791 )
(Loss) income on investment in tenancy-in-common     (69 )     23       (68 )     14  
Depreciation     (1,445 )     (1,457 )     (724 )     (734 )
Financing costs     (3,661 )     (3,724 )     (1,800 )     (1,851 )
Net income     1,236       1,282       434       781  
Net loss attributable to noncontrolling interests in subsidiaries     323       226       182       113  
Net income attributable to common equity   $ 1,559     $ 1,508     $ 616     $ 894