Stock option plan

9 Months Ended

Jul. 31, 2015

Note 14 – Stock option plan:

On September 4, 2014, the Board approved the grant of a total of 246,000 non-qualified share options under FREIT's Equity Incentive Plan to certain FREIT Executive Officers, the members of the Board and certain employees of Hekemian & Co., Inc. 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.

The following table summarizes stock option activity for the nine-month period ended July 31, 2015:

	Nine Months Ended July 31,
	2015
	No. of Options			Exercise
	Outstanding			Price
Options outstanding beginning of period		246,000		$	18.45
Options granted during period		—			—
Options forfeited/cancelled during period		(2,100	)		18.45
Options outstanding end of period		243,900		$	18.45
Options expected to vest		238,620
Options exercisable at end of period		—

For the nine and three-month periods ended July 31, 2015, compensation expense related to stock options granted amounted to $71,000 and $24,000, respectively. At July 31, 2015, there was approximately $384,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over a vesting period of approximately five years.

The aggregate intrinsic value of options outstanding at July 31, 2015 was $439,020.