Subsequent events

9 Months Ended

Jul. 31, 2014

Subsequent Events [Abstract]

Subsequent events

Note 14 – Subsequent events:

On September 4, 2014, FREIT’s Board of Trustees (“Board”) approved the following:

1. The grant of a total of 246,000 non-qualified share options under the FREIT Equity Incentive Plan to certain FREIT Executive Officers, the members of FREIT’s Board of Trustees (“Trustees”) and certain employees of Hekemian & Co., Inc., FREIT’s managing agent. The options have an exercise price of $18.45 per share, will vest over a 5 year period at 20% per year, and will expire 10 years from the date of grant, which will be September 3, 2024.

2. Amendments to the FREIT Deferred Fee Plan, effective November 1, 2014, as follows:

(a) On a prospective basis, a change in the interest rate payable on deferred fees payable to FREIT Trustees from 9% per annum, compounded quarterly, to a floating rate, adjusted quarterly, equal to the average interest rate on ten year treasury bonds plus 150 basis points;

(b) On a prospective basis, allowing for the continued deferral of fees payable to FREIT Trustees, but not for the deferral of salaries payable to Executive Officers of FREIT;

(c) To provide for the issuance of share units payable in FREIT shares in respect of (i) deferred amounts of fees on a prospective basis; (ii) interest on fees deferred prior to November 1, 2014; and (iii) dividends payable in respect of share units allocated to participants in the Deferred Fee Plan as a result of the deferrals described in subparagraphs (c)(i) and (c)(ii) above. The number of share units will be determined by the closing price of FREIT shares on the date of the deferral. The number of share units will be converted into an equivalent number of FREIT shares upon distribution to the participant on a future date designated by the participant.

3. The salaries and fees payable to certain Executive Officers and Trustees of FREIT will be increased, effective November 1, 2014, as follows:

(a) The salary payable to the Chairman and Chief Executive Officer shall increase from $205,000 to $300,000 per year;

(b) The salary payable to the President, Treasurer and Chief Financial Officer shall increase from $50,000 to $75,000 per year;

(c) The annual retainer fee for each Trustee shall increase from $15,000 to $35,000 per year;

(d) The per meeting attendance fee payable to Trustees and the Executive Secretary of FREIT shall increase from $800 to $1,500 per meeting, applicable to Board meetings and meetings of committees of the Board; (the per meeting attendance fees for the Chairman of the Board, the Chairman of the Audit Committee, and the Chairman of the Compensation Committee shall increase to $1,800 per meeting);

(e) The telephonic meeting fee payable to Trustees and the Executive Secretary shall increase from $400 to $1,000 per meeting, applicable to Board meetings and meetings of committees of the Board;

(f) The site inspection fee payable to Trustees and the Executive Secretary shall increase from $800 to $1,000 per site inspection;

(g) The Chairman of the Compensation Committee shall be paid a retainer of $7,500 per year. The annual retainer for the Chairman of the Audit Committee shall remain at $10,000 per year.

4. FREIT’s Board authorized the repurchase of 100,572 FREIT shares currently held by the pension plan of Hekemian & Co., Inc., FREIT’s managing agent, for an aggregate cash purchase price of $1,855,553 or $18.45 per share, which was the closing price of FREIT shares on September 3, 2014. The pension plan is being terminated. The repurchase was undertaken in connection with the termination of the pension plan. Mr. Robert S. Hekemian, Chairman and Chief Executive Officer of FREIT, and Mr. Robert S. Hekemian, Jr., a Trustee of FREIT, and members of their family are participants in the pension plan.