Exhibit
      1





**HACKENSACK,
      NJ** ,
      March
      15, 2007 - First Real Estate Investment Trust (“FREIT”) announced its operating
      results for the three months ended January 31, 2007.








**RESULTS
      OF OPERATIONS:**




Three
      Months Ended January 31, 2007 and 2006:




Three
                  Months EndedJanuary
                  31,
              
              Increase2007
              
              2006
              
              (decrease)(in
                  thousands, except per share)Commercial
                  revenues:Same
                  properties (1)
              
              $
              5,593
              
              $
              5,600
              
              $
              (7
              )New
                  properties
              
              
              -
              
              
              -
              
              
              -5,593
              
              
              5,600
              
              
              (7
              )Residential
                  revenues:Same
                  properties (1)
              
              
              4,124
              
              
              3,934
              
              
              190New
                  properties
              
              
              497
              
              
              -
              
              
              4974,621
              
              
              3,934
              
              
              687Total
                  Real Estate Revenues
              
              
              10,214
              
              
              9,534
              
              
              680Operating
                  expenses:Real
                  estate operations
              
              
              4,429
              
              
              4,108
              
              
              321General
                  and administrative
              
              
              389
              
              
              244
              
              
              145Depreciation
              
              
              1,306
              
              
              1,130
              
              
              176Total
                  operating expenses
              
              
              6,124
              
              
              5,482
              
              
              642Operating
                  Income
              
              
              4,090
              
              
              4,052
              
              
              38Investment
                  income
              
              
              87
              
              
              48
              
              
              39Financing
                  costs
              
              
              (3,043
              )
              
              (2,735
              )
              
              (308
              )Minority
                  interest in earnings of subsidiaries
              
              
              (138
              )
              
              (77
              )
              
              (61
              )Distribution
                  to certain minority interests
              
              
              (150
              )
              
              -
              
              
              (150
              )Net
                  Income
              
              $
              846
              
              $
              1,288
              
              $
              (442
              )Earnings
                  per share:Basic
              
              $
              0.13
              
              $
              0.20
              
              
              ($0.07
              )Diluted
              
              $
              0.12
              
              $
              0.19
              
              
              ($0.07
              )Weighted
                  average shares outstanding:Basic
              
              
              6,751
              
              
              6,511Diluted
              
              
              6,919
              
              
              6,685(1)
                  Properties operated since the beginning of fiscal 2006.




Real
      estate revenues for the three months ended January 31, 2007 (“Current Quarter”)
      increased 7.1% to $10,214,000 compared to $9,534,000 for the three months ended
      January 31, 2006 (“Prior Year’s Quarter”). The increase in revenues was
      principally attributable to FREIT’s Residential operations, primarily at The
      Boulders, which accounted for $497,000 of the increase.


Net
      income for the Current Quarter was $846,000 ($.12 diluted) compared to
      $1,288,000 ($.19 diluted) for the Prior Year’s Quarter. The following table
      details the major charges that impacted net income during the Current Quarter
      (as discussed further below):


Distribution
                  to certain minority interests
              $
                  150,000Auditing
                  fees incurred in connection with our change of auditors.
              170,000Reduced
                  earnings at our Damascus property as a result of the planned
                  redevelopment.
              90,000Higher
                  interest charges on our floating rate acquisition loan for The
                  Rotunda.
              75,000TotalCharges
              $
                  485,000


1


The
      consolidated results of operations for the three months ended January 31, 2007
      are not necessarily indicative of the results to be expected for the full
      year.








SEGMENT
      INFORMATION




The
      following table sets forth comparative net operating income (“NOI”) data for
      FREIT’s real estate segments and reconciles the combined NOI to consolidated net
      income:




**Commercial**
              
              **Residential**
              
              **Combined**Three
                  Months Ended
              
              
              
              
              
              Three
                  Months Ended
              
              
              
              
              
              Three
                  Months EndedJanuary
                  31,
              
              Increase
                  (Decrease)
              
              January
                  31,
              
              Increase
                  (Decrease)
              
              January
                  31,2007
              
              2006
              
              $
              
              %
              
              2007
              
              2006
              
              $
              
              $
              
              2007
              
              2006(in
                  thousands)
              
              
              
              (in
                  thousands)
              
              
              
              (in
                  thousands)Rental
                  income
              
              $
              4,039
              
              $
              3,981
              
              $
              58
              
              
              *1.5*%**
              
              $
              4,557
              
              $
              3,889
              
              $
              668
              
              
              *17.2%*
              
              $
              8,596
              
              $
              7,870Percentage
                  rent
              
              
              98
              
              
              39
              
              
              59
              
              
              *151.3%*
              
              
              
              
              
              
              
              
              -
              
              
              
              
              
              98
              
              
              39Reimbursements
              
              
              1,284
              
              
              1,341
              
              
              (57
              )
              
              *-4.3%*
              
              
              
              
              
              
              
              
              -
              
              
              
              
              
              1,284
              
              
              1,341Other
              
              
              42
              
              
              15
              
              
              27
              
              
              *180.0%*
              
              
              64
              
              
              45
              
              
              19
              
              
              *42.2%*
              
              
              106
              
              
              60Total
                  Revenue
              
              
              5,463
              
              
              5,376
              
              
              87
              
              
              *1.6%*
              
              
              4,621
              
              
              3,934
              
              
              687
              
              
              *17.5%*
              
              
              10,084
              
              
              9,310Operating
                  expenses
              
              
              2,165
              
              
              2,076
              
              
              89
              
              
              *4.3%*
              
              
              2,264
              
              
              2,032
              
              
              232
              
              
              *11.4%*
              
              
              4,429
              
              
              4,108**Net
                  operating income**
              
              **$**
              **3,298**
              
              **$**
              **3,300**
              
              **$**
              **(2**
              **)**
              
              ***-0.1%***
              
              **$**
              **2,357**
              
              **$**
              **1,902**
              
              **$**
              **455**
              
              
              ***23.9%***
              
              
              **5,655**
              
              
              **5,202**AverageOccupancy
                  %
              
              
              ***89.5%***
              
              
              ***90.8%***
              
              
              
              
              
              ***-1.3%***
              
              
              ***93.8%***
              
              
              ***94.9%***
              
              
              
              
              
              ***-1.1%***




Reconciliation
                  to consolidated net income:Deferred
                  rents - straight lining
              
              
              55
              
              
              85Amortization
                  of acquired leases
              
              
              75
              
              
              139Net
                  investment income
              
              
              87
              
              
              48General
                  and administrative expenses
              
              
              (389
              )
              
              (244
              )Depreciation
              
              
              (1,306
              )
              
              (1,130
              )Financing
                  costs
              
              
              (3,043
              )
              
              (2,735
              )Distributions
                  to minority interest
              
              
              (150
              )
              
              -Minority
                  interest
              
              
              (138
              )
              
              (77
              )**Net
                  income**
              
              $
              846
              
              $
              1,288
   NOI
        is
        based on operating revenue and expenses directly associated with the operations
        of the real estate properties, but excludes deferred rents (straight lining),
        lease amortization, depreciation, and financing costs. FREIT assesses and
        measures segment operating results based on NOI. NOI is not a measure of
        operating results or cash flow as measured by generally accepted accounting
        principles, and is not necessarily indicative of cash available to fund cash
        needs and should not be considered an alternative to cash flows as a measure
        of
        liquidity.




**COMMERCIAL
      SEGMENT**




FREIT’s
      commercial properties consist of nine (9) properties totaling approximately
      1,100,000 sq. ft. of retail space and 138,000 sq. ft. of office space. Seven
      are
      multi-tenanted retail and/or office centers, and one is a single tenanted super
      market. In addition, FREIT has leased land and receives rental income from
      a
      tenant who has built and operates a bank branch on land FREIT owns in Rockaway,
      NJ .




Revenue
      from our Commercial segment was $5,463,000 for the Current Quarter, up slightly
      from the $5,376,000 reported for the Prior Year’s Quarter. NOI for the Current
      Quarter was at $3,298,000, about level with the Prior Year’s Quarter. As
      anticipated, revenues and NOI were negatively affected by the temporary decline
      in both revenue and NOI at our to be redeveloped Damascus Center property of
      $98,000 and $90,000 respectively. (see discussion below).




Development
      Activities:




The
      Rotunda, Baltimore, MD: Acquired in July 2005, this 11.5 acre property currently
      contains approximately 138,000 sq. ft. of office space and 78,000 sq. ft. of
      retail space. We are in the planning phase of a redevelopment of this property,
      which entails the construction of residential apartment units, additional retail
      space, and renovation of the existing building. Final development plans are
      subject to approval by local governmental authorities.


2


Damascus
      Center, Damascus, MD: FREIT is planning a redevelopment of the Damascus Center.
      Building permits for Phase I are issued. It is anticipated that Phase I
      construction will begin in 2007. Because of this redevelopment, current leases
      for certain tenants are being allowed to expire and are not being renewed.
      This
      has caused occupancy to decline, on a temporary basis, during the construction
      phase.





**RESIDENTIAL
      SEGMENT**




With
      the
      completion of The Boulders, Rockaway, NJ, a 129-unit apartment community, FREIT
      now operates ten (10) multi-family apartment communities totaling 1,115
      apartment units. As indicated in the table above, revenue from our Residential
      segment for the Current Quarter increased 17.5% to $4,621,000 and NOI also
      increased 23.9% to $2,357,000. Fiscal 2007 will be the first full year of
      operation for The Boulders (See discussion below.) The contribution made by
      The
      Boulders to the Current Quarter’s residential revenue and NOI, as compared to
      the Prior Year’s Quarter residential revenue and NOI is reflected in the
      following chart:





Residential
                  Segment ($000)2007
              
              2006Residential
              
              
              
              Same
              
              SameProperties
              
              Boulders
              
              Properties
              
              PropertiesRevenues
              
              $
              4,621
              
              $
              497
              
              $
              4,124
              
              $
              3,934Expenses
              
              $
              2,264
              
              
              211
              
              
              2,053
              
              
              2,032NOI
              
              $
              2,357
              
              $
              286
              
              $
              2,071
              
              $
              1,902





Average
      occupancy rates for the Current Quarter, exclusive of The Boulders property,
      which was not completed until late fiscal 2006, increased to 96.3% compared
      to
      94.9% for the Prior Year’s Quarter. The occupancy level at The Boulders was 80%
      at the end of January 2007, and averaged 75% during the Current
      Quarter.




Our
      residential revenue is principally composed of monthly apartment rental income.
      Total rental income is a factor of occupancy and monthly apartment rents.
      Average monthly residential rents at the end of the Current Quarter and the
      Prior Year’s Quarter were $1,436 and $1,353, respectively.




Capital
      expenditures: Since all of our apartment communities, with the exception of
      The
      Boulders, were constructed more than 25 years ago, we tend to spend more in
      any
      given year on maintenance and capital improvements than may be spent on newer
      properties. A major renovation program is in progress at the Pierre with the
      intention of modernizing apartments and some of the buildings’ mechanical
      systems. This renovation is expected to cost approximately $4 million and span
      several years. These costs will be financed from operating cash flow and cash
      reserves. Through January 31, 2007, we expended $2.4 million in capital
      improvements at The Pierre, including approximately $600,000 during the Current
      Quarter.





The
      Boulders, Rockaway Township, NJ


Construction
      started on this 129-unit garden apartment community in July 2005 and was
      completed during August 2006. Development costs have been financed from
      construction financing and from funds available from our cash and cash
      equivalents. Certificates of Occupancy for all of the buildings have been
      received, and tenants started taking occupancy during June 2006. As of January
      31, 2007 occupancy was in excess of 80%. The Boulders is expected to add to
      future earnings, cash flow and shareholder value.

















3





**FINANCING
      COSTS**





Three
                Months EndedJanuary
                31,2007
            
            2006($
                in thousands)**1st
                Mortgages**Existing
                - fixed rate
            
            $
            2,140
            
            $
            2,171Existing
                - floating rate
            
            
            405
            
            
            330New
                (1) - Boulders
            
            
            92
            
            
            -Construction
                Loan (1) - Boulders
            
            
            161
            
            
            21**2nd
                Mortgages**Existing
            
            
            133
            
            
            136Other
            
            
            47
            
            
            332,978
            
            
            2,691Amortization
                of Mortgage Costs
            
            
            65
            
            
            65Total
                Financing Costs
            
            
            3,043
            
            
            2,756Less
                amount capitalized
            
            
            -
            
            
            (21
            )Financing
                costs expensed
            
            $
            3,043
            
            $
            2,735(1)
                Mortgages not in place at beginning of fiscal 2006.


Financing
      Costs, before capitalized amounts, for the Current Quarter increased $287,000
      (10.4%) to $3,043,000 from $2,756,000 for the Prior Year’s Quarter.




Increased
      financing levels at the Boulders (construction and permanent loans) resulted
      in
      increased financing costs of $253,000. Our acquisition loan for The Rotunda
      property of $22.5 million bears a floating interest rate. Higher interest rates
      over the course of the last year resulted in a $75,000 increase in interest
      costs to $405,000 for the Current Quarter, compared to $330,000 for the Prior
      Year’s Quarter.





**CERTAIN
      MINORITY DISTRIBUTIONS**




Westwood
      Hills, LLC (“WH”), our 40% owned subsidiary has a capital deficit. This deficit
      resulted primarily from distributions to WH’s members, of proceeds from mortgage
      financings, which were in excess of the carrying basis of WH’s assets. The
      higher mortgage amounts provided by lenders reflected the increased value of
      WH’s property.




During
      the Current Quarter, WH made a $250,000 distribution to its members. FREIT
      received $100,000 and the members owning 60% (“Minority”) received $150,000.
      Since WH has a capital deficit and its members are under no obligation to
      restore their negative capital accounts, under US GAAP FREIT must charge its
      income statement for $150,000, the amount of the distribution received by the
      Minority. This charge has no economic effect or cost to FREIT.





**GENERAL
      AND ADMINISTRATIVE EXPENSES (“G & A”)**




During
      the Current Quarter, G & A increased $145,000 (59.4%) to $389,000 from
      $244,000 for the Prior Year’s Quarter. The increase was primarily attributable
      to $170,000 increase in auditing fees that were incurred as a result of changing
      audit firms during the later part of fiscal 2006.





**LIQUIDITY
      AND CAPITAL RESOURCES**




Our
      financial condition remains strong. Net Cash Provided By Operating Activities
      was $2.6 million for the Current Quarter compared to $2.1 million for the Prior
      Year's Quarter. We expect that cash provided by operating activities will be
      adequate to cover mandatory debt service payments, recurring capital **** improvements
      and dividends necessary to retain qualification as a REIT (90% of taxable
      income).


4








Credit
      Line:




FREIT
      has
      an $18 million line of credit provided by The Provident Bank. The line of credit
      is for three years but can be cancelled by the bank, at its will, at each
      anniversary date. Draws against the credit line can be used for general
      corporate purposes, for property acquisitions, construction activities, and
      letters of credit. Draws against the credit line are secured by mortgages on
      FREIT’s Franklin Crossing Shopping Center, Franklin Lakes, NJ, retail space in
      Glen Rock, NJ, Lakewood Apartments, Lakewood, NJ, Palisades Manor Apartments,
      Palisades Park, NJ, and Grandview Apartments, Hasbrouck Heights, NJ. . Interest
      rates on draws will be set at the time of each draw for 30, 60, or 90-day
      periods, based on our choice of the prime rate or at 175 basis points over
      the
      30, 60, or 90-day LIBOR rates at the time of the draws.




In
      connection with its construction activities in Rockaway, NJ, FREIT had drawn
      down $1.5 million and further utilized the credit line for the issuance of
      a $2
      million Letter of Credit (“LoC”). As of January 31, 2007 cash draws against the
      line have been repaid and there is currently no indebtedness outstanding under
      the credit line. The $2 million LoC will be returned and retired shortly.
      Currently $16 million is available under the line of credit to
      draw.




As
      described in the segment analysis above, construction of The Boulders in
      Rockaway Township, NJ has been completed. Construction costs were funded from
      draws against a construction loan. Upon completion of construction, the
      construction loan of approximately $14 million was converted to a permanent
      loan
      with additional funding to bring the permanent loan balance up to $20.7 million.
      We also are planning a redevelopment of the Damascus Shopping Center, in
      Damascus, MD, and an expansion and redevelopment of The Rotunda in Baltimore,
      MD. The total capital required for these projects is estimated at $19 million,
      and $125 million, respectively. We expect to finance these costs, in part,
      from
      construction and mortgage financing and, in part, from funds available in our
      institutional money market investments. We expect these redevelopment projects
      to add to revenues, income, cash flow, and shareholder value.








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





Many
      consider FFO as the standard measurement of a REIT’s performance. We compute FFO
      as follows:





**Funds
                From Operations ("FFO")**
            
            Quarter
                EndedJanuary
                31,2007
            
            2006($
                in thousands)Net
                income
            
            $
            846
            
            $
            1,288Depreciation
            
            
            1,306
            
            
            1,130Amortization
                of deferred mortgage costs
            
            
            65
            
            
            65Deferred
                rents (Straight lining)
            
            
            (55
            )
            
            (86
            )Amortization
                of acquired leases
            
            
            (75
            )
            
            (139
            )Capital
                Improvements - Apartments recurring
            
            
            (174
            )
            
            (84
            )Minority
                interests:Equity
                in earnings of affiliates
            
            
            288
            
            
            77Distributions
                to minority interests
            
            
            (300
            )
            
            -**FFO**
            
            **$**
            **1,901**
            
            **$**
            **2,251*****Per
                Share - Basic***
            
            *$*
            *0.28*
            
            *$*
            *0.35****Per
                Share - Diluted***
            
            *$*
            *0.27*
            
            *$*
            *0.34***Weighted
                Average Shares outstanding:***Basic*
            
            
            6,751
            
            
            6,511*Diluted*
            
            
            6,919
            
            
            6,685





5


FFO
      does
      not represent cash generated from operating activities in accordance with
      accounting principles generally accepted in the United States of America, and
      therefore should not be considered a substitute for net income as a measure
      of
      results of operations or for cash flow from operations as a measure of
      liquidity. Additionally, the application and calculation of FFO by certain
      other
      REITs may vary materially from that of FREIT’s, and therefore FREIT’s FFO and
      the FFO of other


REITs
      may
      not be directly comparable.











**DIVIDENDS**


The
      first
      quarter dividend of $.30 per share was declared and payable on March 15, 2007
      to
      shareholders of record on March 1, 2007.











**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 $234 million (historical cost basis) of assets. Its portfolio
      of
      residential and retail 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**








6