Stock option plan

9 Months Ended

Jul. 31, 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, 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 nine-month period ended July 31, 2016:

	Nine Months Ended July 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		(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 nine-month periods ended July 31, 2016 and 2015, compensation expense related to stock options granted amounted to $71,000 and $71,000, respectively. For the three-month periods ended July 31, 2016 and 2015, compensation expense related to stock options granted amounted to $24,000 and $24,000, respectively. At July 31, 2016, there was approximately $290,000 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 July 31, 2016 was approximately $597,000 and $122,000, respectively.