Earnings per share

6 Months Ended

Apr. 30, 2015

Earnings per share [Abstract]

Earnings per share

Note 3 - Earnings per share:

Basic earnings per share is calculated by dividing net income attributable to common equity (numerator) by the weighted average number of shares and vested share units (see Note 15) outstanding during each period (denominator). 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 that would have been outstanding if all potentially dilutive shares, such as those issuable upon the exercise of stock options, were issued during the period using the Treasury Stock method. Under the Treasury Stock method, the assumption is that the proceeds received upon exercise of the options, including the unrecognized stock option compensation expense attributed to future services, are used to repurchase FREIT's stock at the average market price during the period, thereby reducing the number of shares to be added in computing diluted earnings per share. For the six months ended April 30, 2015, the outstanding stock options were anti-dilutive, and for the three months ended April 30, 2015, the outstanding stock options increased the average dilutive shares outstanding by approximately 14,000 shares, with no impact on earnings per share. For the six and three months ended April 30, 2014, no vested options or other potentially dilutive securities were outstanding.