Dividends and earnings per share

12 Months Ended

Oct. 31, 2014

Dividends and earnings per share [Abstract]

Dividends and earnings per share

Note 14- Dividends and earnings per share:

FREIT declared dividends of $8,276,000 ($1.20 per share), $10,830,000 ($1.56 per share) and $7,637,000 ($1.10 per share) to shareholders of record during Fiscal 2014, 2013 and 2012, respectively.

Basic earnings per share is calculated by dividing net income attributable to common equity by the weighted average number of shares outstanding during each period. The calculation of diluted earnings per share is similar to that of basic earnings per share, except that the denominator is increased to include the number of additional shares which would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options had been issued during the period, after utilizing the exercise proceeds to repurchase outstanding shares at the average market price during the period under the Treasury Stock method.

For the fiscal years ended October 31, 2013 and 2012, no options or other potentially diluted shares were outstanding. On September 4, 2014, a total of 246,000 non-qualified stock options were granted and outstanding at October 31, 2014. (See Note 12.)

For fiscal 2014, outstanding stock options were anti-dilutive, since the exercise price was higher than the average market price for FREIT shares during the period the options were outstanding.