Stock option plan

6 Months Ended

Apr. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock option plan

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 six-month period ended April 30, 2016:

	Six Months Ended April 30,
	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		(820	)	$	18.45
Options outstanding end of period		243,080		$	18.45
Options expected to vest over term of grant		238,620
Options exercisable at end of period		48,680

For the six-month periods ended April 30, 2016 and 2015, compensation expense related to stock options granted amounted to $47,000 and $47,000, respectively. For the three-month periods ended April 30, 2016 and 2015, compensation expense related to stock options granted amounted to $23,000 and $24,000, respectively. At April 30, 2016, there was approximately $314,000 of unrecognized compensation cost relating to outstanding non-vested stock options to be recognized over the remaining vesting period.

The aggregate intrinsic value of options expected to vest and options exercisable at April 30, 2016 was $608,481 and $124,134, respectively.