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Segment Information
 9 Months Ended
Jul. 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 four (4) properties, excluding the Franklin Crossing shopping center sold on July 8, 2026 (see Note 12 for further details). 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 nine and three months ended July 31, 2026 and 2025. 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,  
    2026     2025     2026     2025  
    (In Thousands of Dollars)     (In Thousands of Dollars)  
Real estate rental revenue:                                
Commercial   $ 5,884     $ 5,585     $ 1,842     $ 1,805  
Residential     16,797       16,269       5,691       5,466  
Total real estate rental revenue     22,681       21,854       7,533       7,271  
                                 
Real estate operating expenses:                                
Commercial     4,075       3,923       1,247       1,273  
Residential     7,082       6,880       2,399       2,329  
Total real estate operating expenses     11,157       10,803       3,646       3,602  
                                 
Net operating income:                                
Commercial     1,809       1,662       595       532  
Residential     9,715       9,389       3,292       3,137  
Total net operating income   $ 11,524     $ 11,051     $ 3,887     $ 3,669  
                                 
                                 
Recurring capital improvements - residential   $ (389 )   $ (357 )   $ (141 )   $ (154 )
                                 
                                 
Reconciliation to condensed consolidated net income attributable to common equity:                                
Segment NOI   $ 11,524     $ 11,051     $ 3,887     $ 3,669  
Deferred rents - straight lining     (6 )     (83 )     4       (27 )
Investment income     846       1,053       297       303  
General and administrative expenses     (3,141 )     (2,260 )     (1,376 )     (624 )
Loss on investment in tenancy-in-common     (106 )     (13 )     (37 )     (36 )
Net gain on sale of property     19,825       —       19,825       —  
Depreciation     (2,126 )     (2,195 )     (681 )     (738 )
Financing costs     (5,634 )     (5,532 )     (1,973 )     (1,808 )
Net income     21,182       2,021       19,946       739  
    Net loss attributable to noncontrolling interests in subsidiaries     538       366       215       140  
Net income attributable to common equity   $ 21,720     $ 2,387     $ 20,161     $ 879