**HACKENSACK,      NJ,**

**RESULTS      OF OPERATIONS**

|                                                                                                       |   | Six                  Months Ended                                                                                |   |   |     |   |   | Three                  Months Ended          |       |   |     |   |
|------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|----------------------------------------------|------------|--------|----------|--------|
|                                                                                                       |   | April                  30,                                                                                       |   |   | Increase |   |   | April                  30,    |       |   | Increase |   |
|                                                                                                       |   | 2007                                                                                                                            |   |   |     | 2006*  |   |                                         | (decrease) |   |     | 2007   |   |   |   | 2006* |   |   | (decrease) |   |
|                                                                                                       |   | (in                  thousands, except per share)              |   |
| Commercial                  revenues:                                                                      |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |
| Same                  properties (1)                                                                       |   | $                                                                                                                               | 11,000 |   |     | $      | 10,873 |                                         |       | $      | 127      |   |   | $ | 5,406 |   |   | $ | 5,273 |   |   | $ | 133 |   |
| New                  properties                                                                            |   |                                                                                                                            | -      |   |     |   | -      |                                         |       |   | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                       |   |                                                                                                                            | 11,000 |   |     |   | 10,873 |                                         |       |   | 127      |   |   |   | 5,406 |   |   |   | 5,273 |   |   |   | 133 |   |
| Residential                  revenues:                                                                     |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Same                  properties (1)                                                                       |   |                                                                                                                            | 8,194  |   |     |   | 7,896  |                                         |       |   | 298      |   |   |   | 4,070 |   |   |   | 3,962 |   |   |   | 108 |   |
| New                  properties                                                                            |   |                                                                                                                            | 1,068  |   |     |   | -      |                                         |       |   | 1,068    |   |   |   | 572 |   |   |   | - |   |   |   | 572 |   |
|                                                                                                       |   |                                                                                                                            | 9,262  |   |     |   | 7,896  |                                         |       |   | 1,366    |   |   |   | 4,642 |   |   |   | 3,962 |   |   |   | 680 |   |
|       Total                  Real Estate Revenues                            |   |                                                                                                                            | 20,262 |   |     |   | 18,769 |                                         |       |   | 1,493    |   |   |   | 10,048 |   |   |   | 9,235 |   |   |   | 813 |   |
|                                                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Real                  estate operations                                                        |   |                                                                                                                            | 8,556  |   |     |   | 8,012  |                                         |       |   | 544      |   |   |   | 4,128 |   |   |   | 3,905 |   |   |   | 223 |   |
|   General                  and administrative                                                    |   |                                                                                                                            | 803    |   |     |   | 526    |                                         |       |   | 277      |   |   |   | 413 |   |   |   | 281 |   |   |   | 132 |   |
|   Depreciation                                                                                   |   |                                                                                                                            | 2,655  |   |     |   | 2,267  |                                         |       |   | 388      |   |   |   | 1,349 |   |   |   | 1,137 |   |   |   | 212 |   |
|       Total                  operating expenses                              |   |                                                                                                                            | 12,014 |   |     |   | 10,805 |                                         |       |   | 1,209    |   |   |   | 5,890 |   |   |   | 5,323 |   |   |   | 567 |   |
|                                                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Operating                  Income                                      |   |                                                                                                                            | 8,248  |   |     |   | 7,964  |                                         |       |   | 284      |   |   |   | 4,158 |   |   |   | 3,912 |   |   |   | 246 |   |
|                                                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                  income                                                                         |   |                                                                                                                            | 225    |   |     |   | 113    |                                         |       |   | 112      |   |   |   | 138 |   |   |   | 65 |   |   |   | 73 |   |
|                                                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Financing                  costs                                                               |   |                                                                                                                            | (6,088 | )      |     |   | (5,507 | )                                            |       |   | (581     | )      |   |   | (3,045 | ) |   |   | (2,772 | ) |   |   | (273 | ) |
|   Minority                  interest in earnings of subsidiaries                                 |   |                                                                                                                            | (258   | )      |     |   | (157   | )                                            |       |   | (101     | )      |   |   | (120 | ) |   |   | (80 | ) |   |   | (40 | ) |
|   Distribution                  to certain minority interests                                    |   |                                                                                                                            | (150   | )      |     |   | (90    | )                                            |       |   | (60      | )      |   |   | - |   |   |   | (90 | ) |   |   | 90 |   |
| Net                  Income                                                                                |   | $                                                                                                                               | 1,977  |   |     | $      | 2,323  |                                         |       | $      | (346     | )      |   | $ | 1,131 |   |   | $ | 1,035 |   |   | $ | 96 |   |
|                                                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  per share:                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                                                          |   | $                                                                                                                               | 0.29   |   |     | $      | 0.36   |                                         |       | $      | (0.07    | )      |   | $ | 0.17 |   |   | $ | 0.16 |   |   | $ | 0.01 |   |
|   Diluted                                                                                        |   | $                                                                                                                               | 0.29   |   |     | $      | 0.34   |                                         |       | $      | (0.05    | )      |   | $ | 0.16 |   |   | $ | 0.15 |   |   | $ | 0.01 |   |
| Weighted                  average shares outstanding:                                                      |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Basic                                                                                          |   |                                                                                                                            | 6,751  |   |     |   | 6,522  |                                         |       |   |     |   |   |   | 6,751 |   |   |   | 6,542 |   |   |   |   |   |
|   Diluted                                                                                        |   |                                                                                                                            | 6,916  |   |     |   | 6,753  |                                         |       |   |     |   |   |   | 6,915 |   |   |   | 6,889 |   |   |   |   |   |
|                                                                                                       |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1)                  Properties operated since the beginning of fiscal 2006.      |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |
|  *  Restated                                                                                |   |                                                                                                                            |   |   |     |   |   |                                         |       |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**SEGMENT      INFORMATION**

| **Six                  Months Ended April 30:** |   |                                                                |        |   |                                 |                                                                  |        |                                         |                                                                |   |                                 |   |   |                                   |        |                                                    |                              |         |        |    |   |         |        |   |   |   |      |   |        |         |
|-------------------------------------------------|--------|---------------------------------------------------------------------|-------------|--------|--------------------------------------|-----------------------------------------------------------------------|-------------|----------------------------------------------|---------------------------------------------------------------------|--------|--------------------------------------|--------|--------|----------------------------------------|-------------|---------------------------------------------------------|-----------------------------------|--------------|-------------|---------|--------|--------------|-------------|--------|--------|--------|-----------|--------|-------------|--------------|
|                                            |   | **Commercial**              |        |   |                                 | **Residential**          |        |                                         | **Combined**                                         |   |
|                                            |   | Six                  Months Ended                                   |        |   |                                 |                                                                  |        |                                         |                                                                |   | Six                  Months Ended    |   |   |                    |        |                                                    | Six                  Months Ended |         |
|                                            |   | April                  30,                           |        |   | Increase                  (Decrease) |                                                                  |        | April                  30,    |                                                                |   | Increase                  (Decrease) |   |   | April                  30,   |        |
|                                            |   | 2007                                                                |        |   | 2006                                 |                                                                  |        |  $                                      |                                                                |   | %                                    |   |   | 2007                                   |        |                                                    | 2006                              |         |        |  $ |   |         | %           |   |   | 2007   |      |   |  2006* |         |
|                                            |   | (in                  thousands)       |        |   |                                 |                                                                  |        |                                         | (in                  thousands)       |   |                                 |   |   |                                   |        | (in                  thousands)     |                              |
| Rental                  income                  |   | $                                                                   | 8,262       |   |                                 | $                                                                     | 8,058       |                                         |                                                                | $      | 204                                  |   |   | * *                               | *2.5%*      |                                                    |                              | $            | 9,178       |    |   | $            | 7,811       |   |   | $      | 1,367     |   |        | * *     | *17.5%* |   |   | $ | 17,440 |   |   |  $ | 15,869 |   |
| Reimbursements                                  |   |                                                                | 2,373       |   |                                 |                                                                  | 2,421       |                                         |                                                                |   | (48                                  | )      |   | * *                               | *-2.0%*     |                                                    |                              |         |        |    |   |         |        |   |   |   | -         |   |        |         |   |   |   |   | 2,373 |   |   |   | 2,421 |   |
| Other                                           |   |                                                                | 100         |   |                                 |                                                                  | 21          |                                         |                                                                |   | 79                                   |   |   | * *                               | *376.2%*    |                                                    |                              |         | 84          |    |   |         | 85          |   |   |   | (1        | )      |        | * *     | *-1.2%* |   |   |   | 184 |   |   |   | 106 |   |
| Total                  Revenue                  |   |                                                                | 10,735      |   |                                 |                                                                  | 10,500      |                                         |                                                                |   | 235                                  |   |   | * *                               | *2.2%*      |                                                    |                              |         | 9,262       |    |   |         | 7,896       |   |   |   | 1,366     |   |        | * *     | *17.3%* |   |   |   | 19,997 |   |   |   | 18,396 |   |
|                                            |   |                                                                |        |   |                                 |                                                                  |        |                                         |                                                                |   |                                 |   |   |                                   |        |                                                    |                              |         |        |    |   |         |        |   |   |   |      |   |        |         |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses             |   |                                                                | 4,303       |   |                                 |                                                                  | 4,096       |                                         |                                                                |   | 207                                  |   |   | * *                               | *5.1%*      |                                                    |                              |         | 4,253       |    |   |         | 3,916       |   |   |   | 337       |   |        | * *     | *8.6%* |   |   |   | 8,556 |   |   |   | 8,012 |   |
| **Net                  operating income**       |   | **$**                                                               | **6,432**   |   |                                 | **$**                                                                 | **6,404**   |                                         |                                                                | **$**  | **28**                               |   |   | *** ***                           | ***0.4%***  |                                                    |                              | **$**        | **5,009**   |    |   | **$**        | **3,980**   |   |   | **$**  | **1,029** |   |        | *** *** | ***25.9%*** |   |   | ** ** | **11,441** |   |   | ** ** | **10,384** |   |
| Average                                         |   |                                                                |        |   |                                 |                                                                  |        |                                         |                                                                |   |                                 |   |   |                                   |        |                                                    |                              |         |        |    |   |         |        |   |   |   |      |   |        |         |   |   |   |   |   |   |   |   |   |   |
| Occupancy                  %                    |   | *** ***                                                        | ***89.7%*** |   |                                 | *** ***                                                          | ***90.6%*** |                                         |                                                                |   |                                 |   |   | *** ***                           | ***-0.9%*** |                                                    |                              | *** *** | ***94.3%*** |    |   | *** *** | ***95.0%*** |   |   |   |      |   |        | *** *** | ***-0.7%*** |   |   |   |   |   |   |   |   |   |
|                                            |   |                                                                |        |   |                                 |                                                                  |        |                                         |                                                                |   |                                 |   |   |                                   |        |                                                    |                              |         |        |    |   |         |        |   |   |   |      |   |        |         |   |   |   |   |   |   |   |   |   |   |

|                                                | Reconciliation                  to consolidated net income:  |   |   |   |   |   |   |
|-----------------------------------------------------|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                | Deferred                  rents - straight lining            |   |   | 114    |   |   |   | 171 |   |
|                                                | Amortization                  of acquired leases             |   |   | 151    |   |   |   | 202 |   |
|                                                | Net                  investment income                       |   |   | 225    |   |   |   | 113 |   |
|                                                | General                  and administrative expenses         |   |   | (803   | )      |   |   | (526 | ) |
|                                                | Depreciation                                                 |   |   |   | (2,655 | )      |   |   | (2,267 | ) |
|                                                | Financing                  costs                             |   |   |   | (6,088 | )      |   |   | (5,507 | ) |
|                                                | Distributions                  to certain minority interests |   |   | (150   | )      |   |   | (90 | ) |
|                                                | Minority                  interest                           |   |   |   | (258   | )      |   |   | (157 | ) |
|                                                |  **Net                  income**                        |   |   | $      | 1,977  |   |   | $ | 2,323 |   |
|     *                  Restated |                                                         |   |   |   |   |   |   |   |   |   |
|                                                |                                                         |   |   |   |   |   |   |   |   |   |

|                                              |   |                                                                 |        |   |                                                                  |         |        |                                         |                                                                |   |                                                   |   |   |                                         |        |                                                    |   |         |        |    |   |         |        |   |   |   |    |   |        |         |
|---------------------------------------------------|--------|----------------------------------------------------------------------|-------------|--------|-----------------------------------------------------------------------|--------------|-------------|----------------------------------------------|---------------------------------------------------------------------|--------|--------------------------------------------------------|--------|--------|----------------------------------------------|-------------|---------------------------------------------------------|--------|--------------|-------------|---------|--------|--------------|-------------|--------|--------|--------|---------|--------|-------------|--------------|
| **Three                  Months Ended April 30:** |   |                                                                 |        |   |                                                                  |         |        |                                         |                                                                |   |                                                   |   |   |                                         |        |                                                    |   |         |        |    |   |         |        |   |   |   |    |   |        |         |
|                                              |   | **Commercial**          |        |   | **Residential**          |         |        | **Combined**                  |                                                                |
|                                              |   | Three                  Months Ended                                  |        |   |                                                   |         |        | Three                  Months Ended          |                                                                |   |                                    |   |   | Three                  Months Ended          |        |
|                                              |   | April                  30,                            |        |   | Increase                  (Decrease)                                  |         |        | April                  30,    |                                                                |   | Increase                  (Decrease)    |   |   | April                  30,    |        |
|                                              |   | 2007                                                                 |        |   | 2006                                                                  |         |        | $                                            |                                                                |   | %                                                      |   |   | 2007                                         |        |                                                    | 2006   |         |        |  $ |   |         | %           |   |   | 2007   |    |   |  2006* |         |
|                                              |   | (in                  thousands)        |        |   |                                                                  |         |        |                                         | (in                  thousands)       |   |                                                   |   |   |                                         |        | (in                  thousands)     |   |
| Rental                  income                    |   | $                                                                    | 4,126       |   |                                                                  | $            | 4,039       |                                         |                                                                | $      | 87                                                     |   |   | * *                                     | *2.2%*      |                                                    |   | $            | 4,621       |    |   | $            | 3,921       |   |   | $      | 700     |   |        | * *     | *17.9%* |   |   | $ | 8,747 |   |   | $ | 7,960 |   |
| Reimbursements                                    |   |                                                                 | 1,089       |   |                                                                  |         | 1,079       |                                         |                                                                |   | 10                                                     |   |   | * *                                     | *0.9%*      |                                                    |   |         |        |    |   |         |        |   |   |   | -       |   |        |         |   |   |   |   | 1,089 |   |   |   | 1,079 |   |
| Other                                             |   |                                                                 | 57          |   |                                                                  |         | 7           |                                         |                                                                |   | 50                                                     |   |   | * *                                     | *714.3%*    |                                                    |   |         | 21          |    |   |         | 41          |   |   |   | (20     | )      |        | * *     | *-48.8%* |   |   |   | 78 |   |   |   | 48 |   |
| Total                  Revenue                    |   |                                                                 | 5,272       |   |                                                                  |         | 5,125       |                                         |                                                                |   | 147                                                    |   |   | * *                                     | *2.9%*      |                                                    |   |         | 4,642       |    |   |         | 3,962       |   |   |   | 680     |   |        | * *     | *17.2%* |   |   |   | 9,914 |   |   |   | 9,087 |   |
|                                              |   |                                                                 |        |   |                                                                  |         |        |                                         |                                                                |   |                                                   |   |   |                                         |        |                                                    |   |         |        |    |   |         |        |   |   |   |    |   |        |         |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses               |   |                                                                 | 2,138       |   |                                                                  |         | 2,021       |                                         |                                                                |   | 117                                                    |   |   | * *                                     | *5.8%*      |                                                    |   |         | 1,990       |    |   |         | 1,884       |   |   |   | 106     |   |        | * *     | *5.6%* |   |   |   | 4,128 |   |   |   | 3,905 |   |
| **Net                  operating income**         |   | **$**                                                                | **3,134**   |   |                                                                  | **$**        | **3,104**   |                                         |                                                                | **$**  | **30**                                                 |   |   | *** ***                                 | ***1.0%***  |                                                    |   | **$**        | **2,652**   |    |   | **$**        | **2,078**   |   |   | **$**  | **574** |   |        | *** *** | ***27.6%*** |   |   | ** ** | **5,786** |   |   | ** ** | **5,182** |   |
| Average                                           |   |                                                                 |        |   |                                                                  |         |        |                                         |                                                                |   |                                                   |   |   |                                         |        |                                                    |   |         |        |    |   |         |        |   |   |   |    |   |        |         |   |   |   |   |   |   |   |   |   |   |
| Occupancy                  %                      |   | *** ***                                                         | ***89.9%*** |   |                                                                  | *** *** | ***90.3%*** |                                         |                                                                |   |                                                   |   |   | *** ***                                 | ***-0.4%*** |                                                    |   | *** *** | ***94.7%*** |    |   | *** *** | ***95.1%*** |   |   |   |    |   |        | *** *** | ***-0.4%*** |   |   |   |   |   |   |   |   |   |
|                                              |   |                                                                 |        |   |                                                                  |         |        |                                         |                                                                |   |                                                   |   |   |                                         |        |                                                    |   |         |        |    |   |         |        |   |   |   |    |   |        |         |   |   |   |   |   |   |   |   |   |   |

|                                                | Reconciliation                  to consolidated net income:  |   |   |   |   |   |   |
|-----------------------------------------------------|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                | Deferred                  rents - straight lining            |   |   | 59     |   |   |   | 85 |   |
|                                                | Amortization                  of acquired leases             |   |   | 75     |   |   |   | 63 |   |
|                                                | Net                  investment income                       |   |   | 138    |   |   |   | 65 |   |
|                                                | General                  and administrative expenses         |   |   | (413   | )      |   |   | (281 | ) |
|                                                | Depreciation                                                 |   |   |   | (1,349 | )      |   |   | (1,137 | ) |
|                                                | Financing                  costs                             |   |   |   | (3,045 | )      |   |   | (2,772 | ) |
|                                                | Distributions                  to certain minority interests |   |   | -      |   |   |   | (90 | ) |
|                                                | Minority                  interest                           |   |   |   | (120   | )      |   |   | (80 | ) |
|                                                |  **Net                  income**                        |   |   | $      | 1,131  |   |   | $ | 1,035 |   |
|     *                  Restated |                                                         |   |   |   |   |   |   |   |   |   |

----

**COMMERCIAL      SEGMENT**

**RESIDENTIAL      SEGMENT**

|     |   |   | Six                  Months Ended April 30,       |                                                                                          |
|----------|--------|--------|---------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|     |   |   | 2007                                              |                                                                                          |   | 2006 |   |
|     |   |   | Residential                                                                     |                                                                                          |   | The |   |   | Same |   |   | Same |   |
| ($000)   |   |   | Properties                                                                      |                                                                                          |   | Boulders |   |   | Properties |   |   | Properties |   |
| Revenues |   |   | $                                                                               | 9,262                                                                                         |   |   | $ | 1,068 |   |   | $ | 8,194 |   |   | $ | 7,896 |   |
| Expenses |   |   |                                                                            | 4,253                                                                                         |   |   |   | 468 |   |   |   | 3,785 |   |   |   | 3,916 |   |
| NOI      |   |   | $                                                                               | 5,009                                                                                         |   |   | $ | 600 |   |   | $ | 4,409 |   |   | $ | 3,980 |   |
|     |   |   |                                                                            |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     |   |   |                                                                            |                         |   |
|     |   |   |                                                                            | Three                  Months Ended April 30,         |   |
|     |   |   |                                                                            | 2007                                                  |   |   | 2006 |   |
|     |   |   |                                                                            | Residential                                                                                   |   |   | The |   |   | Same |   |   | Same |   |
| ($000)   |   |   | Properties                                                                      |                                                                                          |   | Boulders |   |   | Properties |   |   | Properties |   |
| Revenues |   |   | $                                                                               | 4,642                                                                                         |   |   | $ | 572 |   |   | $ | 4,070 |   |   | $ | 3,962 |   |
| Expenses |   |   |                                                                            | 1,990                                                                                         |   |   |   | 258 |   |   |   | 1,732 |   |   |   | 1,884 |   |
| NOI      |   |   | $                                                                               | 2,652                                                                                         |   |   | $ | 314 |   |   | $ | 2,338 |   |   | $ | 2,078 |   |
|     |   |   |                                                                            |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

**FINANCING      COSTS**

**DEPRECIATION**

**FUNDS      FROM OPERATIONS (“FFO”):**

| **Funds                  From Operations ("FFO")**       |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |
|----------------------------------------------------------|--------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|--------|--------|--------|-------------|
|                                                     |                                                         |   | Six                  Months Ended                                                    |   |   | Three                  Months Ended    |   |
|                                                     |                                                         |   | April                  30,                                                           |   |   | April                  30,             |   |
|                                                     |                                                         |   | 2007                                                                                                |   |   | 2006*                                                 |        |   | 2007   |   |   |  2006* |   |
|                                                     |                                                         |   | ($                  in thousands)            |   |
|                                                     |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |   |   |   |
| Net                  income                              |                                                         |   | $                                                                                                   | 1,977  |   |                                                  | $      | 2,323  |   |   | $      | 1,131       |   |   | $ | 1,035 |   |
| Depreciation                                             |                                                         |   |                                                                                                | 2,655  |   |                                                  |   | 2,267  |   |   |   | 1,349       |   |   |   | 1,137 |   |
| Amortization                  of deferred mortgage costs |                                                         |   | 132                                                                                                 |   |   |                                                  | 129    |   |   |   | 67     |        |   |   | 64 |   |
| Deferred                  rents (Straight lining)        |                                                         |   | (114                                                                                                | )      |   |                                                  | (171   | )      |   |   | (59    | )           |   |   | (85 | ) |
| Amortization                  of acquired leases         |                                                         |   | (151                                                                                                | )      |   |                                                  | (202   | )      |   |   | (75    | )           |   |   | (63 | ) |
| Capital                  Improvements - Apartments       |                                                         |   | (239                                                                                                | )      |   |                                                  | (458   | )      |   |   | (65    | )           |   |   | (119 | ) |
| Minority                  interests:                     |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |   |   |   |   |   |
| Equity                  in earnings of affiliates        |                                                         |   | 408                                                                                                 |   |   |                                                  | 247    |   |   |   | 120    |        |   |   | 170 |   |
| Distributions                  to minority interests     |                                                         |   | (387                                                                                                | )      |   |                                                  | (360   | )      |   |   | (87    | )           |   |   | (360 | ) |
|                                                     |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |   |   |   |   |   |
|                                                     | **FFO**                                                      |   | $                                                                                                   | 4,281  |   |                                                  | $      | 3,775  |   |   | $      | 2,381       |   |   | $ | 1,779 |   |
|                                                     |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |   |   |   |   |   |
|                                                     | *** Per                  Share - Basic***               |   | *$*                                                                                                 | *0.63* |   |                                                  | *$*    | *0.58* |   |   | *$*    | *0.35*      |   |   | *$* | *0.27* |   |
|                                                     | *** Per                  Share - Diluted***             |   | *$*                                                                                                 | *0.62* |   |                                                  | *$*    | *0.56* |   |   | *$*    | *0.34*      |   |   | *$* | *0.26* |   |
|                                                     |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |   |   |   |   |   |
|                                                     | **Weighted                  Average Shares****Outstanding:** |   |                                                                                                |   |   |                                                  |
|                                                     | * Basic*                                                |   |                                                                                                | 6,751  |   |                                                  |   | 6,522  |   |   |   | 6,751       |   |   |   | 6,542 |   |
|                                                     | * Diluted*                                              |   |                                                                                                | 6,916  |   |                                                  |   | 6,753  |   |   |   | 6,915       |   |   |   | 6,889 |   |
|                                                     |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |   |   |   |   |   |
|  *  Restated                              |                                                         |   |                                                                                                |   |   |                                                  |   |   |   |   |   |        |   |   |   |   |   |

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**DIVIDENDS**

***The      statements in this report that relate to future earnings or performance are      forward-looking. Actual results might differ materially and be adversely      affected by such factors as longer than anticipated lease-up periods or the      inability of tenants to pay increased rents. Additional information about these      factors is contained in the Trust’s filings with the SEC including the Trust’s      most recent filed report on Form 10-K and Form 10-Q.***

***First      Real Estate Investment Trust**is a publicly traded (over-the-counter –symbol FREVS) REIT organized in 1961. It has approximately $238 million      (historical cost basis) of assets. Its portfolio of residential and commercial      properties extends from Eastern L.I. to Maryland, with the largest concentration      in Northern New Jersey.*

**For      additional information contact Shareholder Relations at (201)      488-6400**