Stock option plan

3 Months Ended

Jan. 31, 2016

Note 13 – 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., FREIT's managing agent. The options have an exercise price of $18.45 per share, will vest in equal annual installments over a 5 year period 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 three-month period ended January 31, 2016:

	Three Months Ended January 31,
	2016
	No. of Options			Exercise
		Outstanding			Price
Options outstanding beginning of period		243,900		$	18.45
Options granted during period		—			—
Options forfeited/cancelled during period		(500	)	$	18.45
Options outstanding end of period		243,400		$	18.45
Options expected to vest		238,620
Options exercisable at end of period		48,680

For the three-month periods ended January 31, 2016 and 2015, compensation expense related to stock options granted amounted to $24,000 and $23,000, respectively. At January 31, 2016, there was approximately $337,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining vesting period.

There was no aggregate intrinsic value of options expected to vest and options exercisable at January 31, 2016 as the exercise price was higher than the market value of the shares of beneficial interest.