XML 34 R21.htm IDEA: XBRL DOCUMENT v3.3.1.900
Deferred fee plan
12 Months Ended
Oct. 31, 2015
Deferred fee plan [Abstract]  
Deferred fee plan

Note 12- Deferred fee plan:

During fiscal 2001, the Board adopted a deferred fee plan for its officers and trustees, which was amended and restated in fiscal 2009 to make the deferred fee plan compliant with Section 409A of the Internal Revenue Code and the regulations promulgated thereunder (the "Deferred Fee Plan"). Pursuant to the Deferred Fee Plan, any officer or trustee may elect to defer receipt of any fees that would be due them. These fees include annual retainer and meeting attendance fees as determined by the full Board of Trustees. FREIT has agreed to pay any participant (the "Participant") in the Deferred Fee Plan interest on any deferred fee at 9% per annum, compounded quarterly. Any such deferred fee is to be paid to the Participants at the later of: (i) the retirement age specified in the deferral election; (ii) actual retirement; or (iii) upon cessation of a Participant's duties as an officer or trustee.

On September 4, 2014, the Board approved amendments, effective November 1, 2014, to the FREIT Deferred Fee Plan for its Executive Officers and Trustees, one of which provides for the issuance of share units payable in FREIT shares in respect of (i) deferred amounts of all Trustee fees on a prospective basis; (ii) interest on Trustee fees deferred prior to November 1, 2014 (payable at a floating rate, adjusted quarterly, based on the average 10-year Treasury Bond interest rate plus 150 basis points); and (iii) dividends payable in respect of share units allocated to participants in the Deferred Fee Plan as a result of deferrals described above. The number of share units will be determined by the closing price of FREIT shares on the date as set forth in the Deferred Fee Plan. As a result of the plan amendment described above, all Trustee fees together with related interest and dividends described above for the fiscal year ended October 31, 2015, which amounted to approximately $781,200, have been paid through the issuance of 39,350 vested FREIT share units based on the closing price of FREIT shares on the dates as set forth in the Deferred Fee Plan.

For the fiscal year ended October 31, 2015, FREIT has charged approximately $752,200 of this amount, representing Trustee fees and interest, to expense and the balance of $29,000, representing dividends payable in respect of share units allocated to Plan participants, has been charged to equity. Trustee fee expense (including interest) for the fiscal years ended October 31, 2014 and 2013 was $1,204,000 and $1,101,000, respectively.

The Deferred Fee Plan, as amended, provides that cumulative fees together with accrued interest deferred as of November 1, 2014 will be paid in a lump sum or in annual installments over a period not to exceed 10 years, at the election of the Participant. As of October 31, 2015 and 2014, approximately $5,224,000 and $5,163,000, respectively, of fees have been deferred together with accrued interest of approximately $3,854,000 for each fiscal year ended.