Dividends and earnings per share

12 Months Ended

Oct. 31, 2015

Dividends and earnings per share [Abstract]

Dividends and earnings per share

Note 13- Dividends and earnings per share:

FREIT declared dividends of $8,130,000 ($1.20 per share), $8,276,000 ($1.20 per share) and $10,830,000 ($1.56 per share) to shareholders of record during Fiscal 2015, 2014 and 2013, respectively.

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 12) 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 Fiscal 2013, no options or other potentially diluted shares were outstanding. For Fiscal 2015 and 2014, the outstanding stock options were anti-dilutive with no impact on diluted earnings per share.