| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |   |
|---|--------------------------------------------------------------------------------------------------------------------------------------|--------|

| o      | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | For                the transition period from __________________ to                ____________________                               |   |

| FIRST                REAL ESTATE INVESTMENT TRUST OF NEW JERSEY               |
|-------------------------------------------------------------------------------|
| (Exact                name of registrant as specified in its charter)         |
|                                                                          |
| New                Jersey                                                     |  | 22-1697095 |
| (State                or other jurisdiction of incorporation or organization) |  | (I.R.S.                Employer Identification No.) |
|                                                                               |  |  |
| 505                Main Street, Hackensack, New Jersey                        |  | 07601 |
| (Address                of principal executive offices)                       |  | (Zip                Code) |

| 201-488-6400                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------|
| (Registrant's                  telephone number, including area code)                                                |
|                                                                                                                 |
|                                                                                                                 |
| (Former                  name, former address and former fiscal year, if changed since last                  report) |

| Large                Accelerated Filer o | Accelerated                Filer x | Non-Accelerated                Filer o | Smaller                Reporting Company o |
|------------------------------------------|------------------------------------|----------------------------------------|--------------------------------------------|

----

D

| Part                I:  Financial Information |                    |
|---------------------------------------------------------|-------------------------|
|                                                    |                    |   |   | Page |
|                                                    |                    |   |   |   |
|                                                    | Item                1:  | Unaudited                Condensed Consolidated Financial                Statements |   |
|                                                    |                    |   |   |   |
|                                                    |                    | a.) | Consolidated                Balance Sheets as at January 31, 2008 and October                31, 2007; | 3 |
|                                                    |                    |   |   |   |
|                                                    |                    | b.) | Consolidated                Statements of Income, Comprehensive Income and                Undistributed Earnings for the Three Months Ended January 31, 2008                and                2007; | 4 |
|                                                    |                    |   |   |   |
|                                                    |                    | c.) | Consolidated                Statements of Cash Flows for the Three Months                Ended January 31, 2008 and 2007; | 5 |
|                                                    |                    |   |   |   |
|                                                    |                    | d.) | Notes                to Condensed Consolidated Financial                Statements. | 6 |
|                                                    |                    |   |   |   |
|                                                    | Item                2:  | Management’s                Discussion and Analysis of Financial Condition and                Results of Operations | 9 |
|                                                    |                    |   |   |   |
|                                                    | Item                3:  | Quantitative                and Qualitative Disclosures About Market                Risk | 19 |
|                                                    |                    |   |   |   |
|                                                    | Item                4:  | Controls                and Procedures | 19 |
|                                                    |                    |   |   |   |
|                                                    |                    |   |   |   |
| Part                II: Other Information               |                    |
|                                                    |                    |   |   |   |
|                                                    | Item                1A: | Risk                Factors | 19 |
|                                                    |                    |   |   |   |
|                                                    | Item                6:  | Exhibits | 22 |
|                                                    |                    |   |   |
|                                                    | Signatures              | 23 |

----

Index

n

n

| FIRST                  REAL ESTATE                  INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED                  BALANCE                  SHEETS                                                                                                      |
| (Unaudited)                                                                                                                                                        |
|                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                               |   | January                  31, |   |   | October                  31, |   |
|                                                                                                                                                               |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                               |   | (In                  Thousands of                  Dollars) |   |
| ASSETS                                                                                                                                                             |   |   |   |   |   |   |
| Real                  estate, at cost, net of                  accumulated depreciation                                                                            |   | $ | 205,105 |   |   | $ | 204,732 |   |
| Construction                  in                  progress                                                                                                         |   |   | 7,502 |   |   |   | 7,331 |   |
| Cash                  and cash                  equivalents                                                                                                        |   |   | 9,808 |   |   |   | 12,740 |   |
| Tenants'                  security                  accounts                                                                                                       |   |   | 2,367 |   |   |   | 2,369 |   |
| Sundry                  receivables                                                                                                                                |   |   | 4,596 |   |   |   | 4,833 |   |
| Secured                  loans                  receivable                                                                                                         |   |   | 3,326 |   |   |   | 3,326 |   |
| Prepaid                  expenses and other                  assets                                                                                                |   |   | 2,660 |   |   |   | 2,852 |   |
| Acquired                  over market leases and                  in-place lease costs                                                                             |   |   | 1,044 |   |   |   | 1,104 |   |
| Deferred                  charges,                  net                                                                                                            |   |   | 3,376 |   |   |   | 3,454 |   |
| Interest                  rate swap                  contract                                                                                                      |   |   | - |   |   |   | 14 |   |
| Totals                                                                                                                                                             |   | $ | 239,784 |   |   | $ | 242,755 |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                                                                                                              |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Mortgages                  payable                                                                                                                                 |   | $ | 188,814 |   |   | $ | 189,389 |   |
|                               Accounts payable and accrued expenses                                    |   |   | 4,233 |   |   |   | 5,193 |   |
| Dividends                  payable                                                                                                                                 |   |   | 2,034 |   |   |   | 2,704 |   |
|                          Tenants' security deposits                                                                             |   |   | 3,060 |   |   |   | 3,124 |   |
|                               Acquired below market value leases and deferred                  revenue |   |   | 3,792 |   |   |   | 3,911 |   |
| Total                  liabilities                                                                                                                                 |   |   | 201,933 |   |   |   | 204,321 |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Minority                  interest                                                                                                                                 |   |   | 13,227 |   |   |   | 13,304 |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Commitments                  and                  contingencies                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Shareholders'                  equity:                                                                                                                             |   |   |   |   |   |   |   |   |
| Shares                  of beneficial interest                  without par value:                                                                                 |   |   |   |   |   |   |   |   |
| 8,000,000                  shares                  authorized;                                                                                                     |   |   |   |   |   |   |   |   |
|      6,779,152                  and 6,760,652 shares issued and outstanding                                                               |   |   | 23,364 |   |   |   | 23,225 |   |
|  Undistributed                  earnings                                                                                                                      |   |   | 1,260 |   |   |   | 1,891 |   |
| Accumulated                  other comprehensive                  income                                                                                           |   |   | - |   |   |   | 14 |   |
| Total                  shareholders'                  equity                                                          |   |   | 24,624 |   |   |   | 25,130 |   |
| Totals                                                                                                                                                             |   | $ | 239,784 |   |   | $ | 242,755 |   |

|                                                                                        |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                        |   |   |   |   |   |   |   |   |
| See                  Notes to Condensed                  Consolidated Financial Statements. |   |   |   |   |   |   |   |   |

----

Index

| FIRST                  REAL ESTATE                  INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES       |
|-----------------------------------------------------------------------------------------------------------|
| CONSOLIDATED                  STATEMENTS OF INCOME,                  COMPREHENSIVE INCOME                 |
| AND                  UNDISTRIBUTED                  EARNINGS                                              |
| THREE                  MONTHS ENDED JANUARY 31,                  2008 AND 2007                            |
| (Unaudited)                                                                                               |
|                                                                                                      |   |   |   |   |   |   |
|                                                                                                      |   |   |   |   |   |   |
|                                                                                                      |   | Three                  Months                  Ended |   |
|                                                                                                      |   | January                  31, |   |
|                                                                                                      |   | 2008 |   |   | 2007* |   |
|                                                                                                      |   | (In                  Thousands of                  Dollars, Except Per Share Amounts) |   |
| Revenue:                                                                                                  |   |   |   |   |   |   |   |
| Rental                  income                                                                            |   | $ | 8,980 |   |   | $ | 8,719 |   |
| Reimbursements                                                                                            |   |   | 1,385 |   |   |   | 1,284 |   |
| Sundry                  income                                                                            |   |   | 92 |   |   |   | 103 |   |
| Totals                                                                                                    |   |   | 10,457 |   |   |   | 10,106 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Expenses:                                                                                                 |   |   |   |   |   |   |   |   |
| Operating                  expenses                                                                       |   |   | 2,925 |   |   |   | 2,894 |   |
| Management                  fees                                                                          |   |   | 456 |   |   |   | 435 |   |
| Real                  estate                  taxes                                                       |   |   | 1,446 |   |   |   | 1,426 |   |
| Depreciation                                                                                              |   |   | 1,338 |   |   |   | 1,303 |   |
| Totals                                                                                                    |   |   | 6,165 |   |   |   | 6,058 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Operating                  income                                                                         |   |   | 4,292 |   |   |   | 4,048 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Investment                  income                                                                        |   |   | 159 |   |   |   | 87 |   |
| Interest                  expense including                  amortization                                 |   |   |   |   |   |   |   |   |
|   of                  deferred financing                  costs                                 |   |   | (2,933 | ) |   |   | (3,043 | ) |
| Minority                  interest                                                                        |   |   | (115 | ) |   |   | (138 | ) |
| Distribution                  to certain minority                  interests                              |   |   | - |   |   |   | (150 | ) |
| Income                  from continuing                  operations                                       |   |   | 1,403 |   |   |   | 804 |   |
| Discontinued                  operations:                                                                 |   |   |   |   |   |   |   |   |
|    Earnings                  from                  discontinued operations                 |   |   | - |   |   |   | 42 |   |
| Income                  from discontinued                  operations                                     |   |   | - |   |   |   | 42 |   |
| Net                  income                                                                               |   | $ | 1,403 |   |   | $ | 846 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Basic                  earnings per                  share:                                               |   |   |   |   |   |   |   |   |
| Continuing                  operations                                                                    |   | $ | 0.21 |   |   | $ | 0.12 |   |
| Discontinued                  operations                                                                  |   | $ | - |   |   | $ | 0.01 |   |
| Net                  income                                                                               |   | $ | 0.21 |   |   | $ | 0.13 |   |
| Diluted                  earnings per                  share:                                             |   |   |   |   |   |   |   |   |
| Continuing                  operations                                                                    |   | $ | 0.20 |   |   | $ | 0.11 |   |
| Discontinued                  operations                                                                  |   | $ | - |   |   | $ | 0.01 |   |
| Net                  income                                                                               |   | $ | 0.20 |   |   | $ | 0.12 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| Weighted                  average shares                  outstanding:                                    |   |   |   |   |   |   |   |   |
| Basic                                                                                                     |   |   | 6,763 |   |   |   | 6,751 |   |
| Diluted                                                                                                   |   |   | 6,906 |   |   |   | 6,919 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| COMPREHENSIVE                  INCOME                                                                     |   |   |   |   |   |   |   |   |
| Net                  income                                                                               |   | $ | 1,403 |   |   | $ | 846 |   |
| Other                  comprehensive income                  (loss):                                      |   |   |   |   |   |   |   |   |
| Unrealized                  (loss) on                  interest                                           |   |   |   |   |   |   |   |   |
|    rate                  swap                  contract                                    |   |   | - |   |   |   | (7 | ) |
| Comprehensive                  income                                                                     |   | $ | 1,403 |   |   | $ | 839 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| UNDISTRIBUTED                  EARNINGS                                                                   |   |   |   |   |   |   |   |   |
| Balance,                  beginning of                  period                                            |   | $ | 1,891 |   |   | $ | 1,735 |   |
| Net                  income                                                                               |   |   | 1,403 |   |   |   | 846 |   |
| Less                  dividends                  declared                                                 |   |   | (2,034 | ) |   |   | (2,025 | ) |
| Balance,                  end of                  period                                                  |   | $ | 1,260 |   |   | $ | 556 |   |
| Dividends                  declared per                  share                                            |   | $ | 0.30 |   |   | $ | 0.30 |   |
|                                                                                                      |   |   |   |   |   |   |   |   |
| * Restated                  to reflect                  reclassification of discontinued operations. |   |   |   |   |   |

|                                                                                        |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| See                  Notes to Condensed                  Consolidated Financial Statements. |   |   |   |   |   |

----

Index

| FIRST                  REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND                  SUBSIDIARIES          |   |
|--------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                  STATEMENTS OF CASH FLOWS                                                       |   |
| THREE                  MONTHS ENDED JANUARY 31, 2008 AND 2007                                                |   |
| (Unaudited)                                                                                                  |   |
|                                                                                                         |   |   |   |   |   |   |
|                                                                                                         |   | Three                  Months Ended |   |
|                                                                                                         |   | January                  31, |   |
|                                                                                                         |   | 2008 |   |   | 2007 |   |
|                                                                                                         |   | (In                  Thousands of Dollars) |   |
| Operating                  activities:                                                                       |   |   |   |   |   |   |
| Net                  income                                                                                  |   | $ | 1,403 |   |   | $ | 846 |   |
| Adjustments                  to reconcile net income to net cash provided by                                 |   |   |   |   |   |   |   |   |
| operating                  activities (including discontinued operations):                                   |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                 |   |   | 1,338 |   |   |   | 1,306 |   |
| Amortization                                                                                                 |   |   | 176 |   |   |   | 139 |   |
| Net                  amortization of acquired leases                                                         |   |   | (24 | ) |   |   | (75 | ) |
| Deferred                  revenue                                                                            |   |   | (59 | ) |   |   | (69 | ) |
| Minority                  interest                                                                           |   |   | 115 |   |   |   | 288 |   |
| Changes                  in operating assets and liabilities:                                                |   |   |   |   |   |   |   |   |
| Tenants'                  security accounts                                                                  |   |   | 2 |   |   |   | (45 | ) |
|   Sundry                  receivables, prepaid expenses and other assets                           |   |   | 475 |   |   |   | 223 |   |
|                    Accounts payable, accrued expenses and other liabilities                             |   |   | 819 |   |   |   | (81 | ) |
| Tenants'                  security deposits                                                                  |   |   | (64 | ) |   |   | 25 |   |
| Net                  cash provided by operating activities                                                   |   |   | 4,181 |   |   |   | 2,557 |   |
| Investing                  activities:                                                                       |   |   |   |   |   |   |   |   |
| Capital                  improvements - existing properties                                                  |   |   | (331 | ) |   |   | (934 | ) |
| Construction                  and pre development costs                                                      |   |   | (3,315 | ) |   |   | (3,067 | ) |
|                                                                                                         |   |   |    |   |   |   |    |   |
| Net                  cash used in investing activities                                                       |   |   | (3,646 | ) |   |   | (4,001 | ) |
| Financing                  activities:                                                                       |   |   |   |   |   |   |   |   |
| Repayment                  of mortgages                                                                      |   |   | (575 | ) |   |   | (2,100 | ) |
| Proceeds                  from mortgages                                                                     |   |   | - |   |   |   | 6,331 |   |
| Proceeds                  from exercise of stock options                                                     |   |   | 139 |   |   |   | - |   |
| Dividends                  paid                                                                              |   |   | (2,704 | ) |   |   | (3,375 | ) |
| Distribution                  to minority interest                                                           |   |   | (327 | ) |   |   | (300 | ) |
| Net                  cash (used in) provided by financing activities                                         |   |   | (3,467 | ) |   |   | 556 |   |
| Net                  decrease in cash and cash equivalents                                                   |   |   | (2,932 | ) |   |   | (888 | ) |
| Cash                  and cash equivalents, beginning of period                                              |   |   | 12,740 |   |   |   | 9,616 |   |
| Cash                  and cash equivalents, end of period                                                    |   | $ | 9,808 |   |   | $ | 8,728 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Supplemental                  disclosure of cash flow data:                                                  |   |   |   |   |   |   |   |   |
| Interest                  paid, including capitalized construction period interest                           |   |   |   |   |   |   |   |   |
| of                  $86 in fiscal 2008.                                                                      |   | $ | 2,890 |   |   | $ | 2,978 |   |
| Income                  taxes paid                                                                           |   | $ | - |   |   | $ | 6 |   |
| Supplemental                  schedule of non cash financing activities:                                     |   |   |   |   |   |   |   |   |
| Accrued                  capital expenditures, construction costs and pre-development                  costs |   | $ | 131 |   |   | $ | 325 |   |
| Dividends                  declared but not paid                                                             |   | $ | 2,034 |   |   | $ | 2,025 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| See                  Notes to Condensed Consolidated Financial Statements.                                   |   |   |   |   |   |   |   |   |

----

Index

T

|                                                                                    |   | Three                  Months                  Ended |      |
|-----------------------------------------------------------------------------------------|--------|------------------------------------------------------|-----------|
|                                                                                    |   | January                  31,                         |      |
|                                                                                    |   | 2008                                                 |      |   | 2007 |   |
| Basic                  weighted average shares                  outstanding             |   |                                                 | 6,762,663 |   |   |   | 6,750,652 |   |
|                                                                                    |   |                                                 |      |   |   |   |   |   |
| Shares                  arising from assumed                  exercise of stock options |   |                                                 | 142,982   |   |   |   | 168,205 |   |
| Dilutive                  weighted average shares                  outstanding          |   |                                                 | 6,905,645 |   |   |   | 6,918,857 |   |

----

Index

|                                                                                                                                   |   | Three                  Months                  Ended        |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------|--------|
|                                                                                                                                   |   | January                  31,                                |   |
|                                                                                                                                   |   | 2008                                                        |   |   |  2007* |   |
|                                                                                                                                   |   | (In                  Thousands of                  Dollars) |   |
| Real                  estate rental                  revenue:                                                                          |   |                                                        |   |   |   |   |   |
| Commercial                                                                                                                             |   | $                                                           | 5,624  |   |   | $ | 5,463 |   |
| Residential                                                                                                                            |   |                                                        | 4,762  |   |   |   | 4,513 |   |
| Totals                                                                                                                                 |   |                                                        | 10,386 |   |   |   | 9,976 |   |
| Real                  estate operating                  expenses:                                                                      |   |                                                        |   |   |   |   |   |   |
| Commercial                                                                                                                             |   |                                                        | 2,291  |   |   |   | 2,165 |   |
| Residential                                                                                                                            |   |                                                        | 2,146  |   |   |   | 2,201 |   |
| Totals                                                                                                                                 |   |                                                        | 4,437  |   |   |   | 4,366 |   |
| Net                  operating                  income:                                                                                |   |                                                        |   |   |   |   |   |   |
| Commercial                                                                                                                             |   |                                                        | 3,333  |   |   |   | 3,298 |   |
| Residential                                                                                                                            |   |                                                        | 2,616  |   |   |   | 2,312 |   |
| Totals                                                                                                                                 |   | $                                                           | 5,949  |   |   | $ | 5,610 |   |
| Recurring                  capital                  improvements-residential                                                           |   | $                                                           | 146    |   |   | $ | 174 |   |
|                                                                                                                                   |   |                                                        |   |   |   |   |   |   |
| Reconciliation                  to consolidated net                  income:                                                           |   |                                                        |   |   |   |   |   |   |
| Segment                  NOI                                                                                                           |   | $                                                           | 5,949  |   |   | $ | 5,610 |   |
| Deferred                  rents - straight                  lining                                                                     |   |                                                        | 47     |   |   |   | 55 |   |
| Amortization                  of acquired                  leases                                                                      |   |                                                        | 24     |   |   |   | 75 |   |
| Net                  investment                  income                                                                                |   |                                                        | 159    |   |   |   | 87 |   |
| Minority                  interest in earnings of                  subsidiaries                                                        |   |                                                        | (115   | ) |   |   | (138 | ) |
| Distribution                  to certain minority                  interests                                                           |   |                                                        | -      |   |   |   | (150 | ) |
| General                  and administrative                  expenses                                                                  |   |                                                        | (390   | ) |   |   | (389 | ) |
| Depreciation                                                                                                                           |   |                                                        | (1,338 | ) |   |   | (1,303 | ) |
| Financing                  costs                                                                                                       |   |                                                        | (2,933 | ) |   |   | (3,043 | ) |
| Income                  from continuing                  operations                                                                    |   |                                                        | 1,403  |   |   |   | 804 |   |
| Income                  from discontinued                  operations                                                                  |   |                                                        | -      |   |   |   | 42 |   |
| Net                  income                                                                                                            |   | $                                                           | 1,403  |   |   | $ | 846 |   |
|                                                                                                                                   |   |                                                        |   |   |   |   |   |   |
|  *  Restated                  to                  reflect reclassification of discontinued                  operations. |   |                                                        |   |   |   |   |   |   |

----

Index

----

Index

s

| Cautionary                Statement Identifying Important Factors That Could Cause FREIT’s Actual                Results to Differ From ThoseProjected                in Forward Looking Statements. Readers                of this discussion are advised that the discussion should be read                in                conjunction with the unaudited condensed consolidated financial statements                of FREIT (including related notes thereto) appearing elsewhere in                this                Form 10-Q, and the consolidated financial statements included in                FREIT’s                most recently filed Form 10-K. Certain statements in this discussion                may                constitute “forward-looking statements” within the meaning of the Private                Securities Litigation Reform Act of 1995. Forward-looking statements                reflect FREIT’s current expectations regarding future results of                operations, economic performance, financial condition and achievements                of                FREIT, and do not relate strictly to historical or current facts.                FREIT                has tried, wherever possible, to identify these forward-looking statements                by using words such as “believe,”  “expect,” “anticipate,”                “intend,” “plan,” “estimate,” or words of similar meaning. Although                FREIT believes that the expectations reflected in such forward-looking                statements are based on reasonable assumptions, such statements are                subject to risks and uncertainties, which may cause the actual results                to                differ materially from those projected. Such factors include, but                are not                limited to the following: general economic and business conditions,                which                will, among other things, affect demand for rental space, the availability                of prospective tenants, lease rents, the financial condition of tenants                and the default rate on leases, operating and administrative expenses                and                the availability of financing; adverse changes in FREIT’s real estate                markets, including, among other things, competition with other real                estate                owners, competition confronted by tenants at FREIT’s commercial                properties, governmental actions and initiatives; environmental/safety                requirements; and risks of real estate development and acquisitions.                The                risks with respect to the development of real estate include: increased                construction costs, inability to obtain construction financing, or                unfavorable terms of financing that may be available, unforeseen                construction delays and the failure to complete construction within                budget. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

| NET                  INCOME                  COMPONENTS                                                   |   |                                                     |   |   |        |   |   |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|-------------|--------|--------|--------|--------|
|                                                                                                      |   | Three                  Months                  Ended     |   |
|                                                                                                      |   | January                  31,                             |   |
|                                                                                                      |   | 2008                                                     |   |   |  2007* |   |   | Change |   |
|                                                                                                      |   | (thousands                  of                  dollars) |   |
| Commercial                  Properties                                                                    |   |                                                     |   |   |        |   |   |   |   |   |
| Same                  Properties                  (1)                                                     |   | $                                                        | 3,350  |   |        | $      | 3,317  |   |   | $ | 33 |   |
| Damascus                  Center - undergoing                  renovation                                 |   |                                                     | 54     |   |        |   | 111    |   |   |   | (57 | ) |
| Total                  Commercial                  Properties                                             |   |                                                     | 3,404  |   |        |   | 3,428  |   |   |   | (24 | ) |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Residential                  Properties                                                                   |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Same                  Properties                  (1)                                                     |   |                                                     | 2,616  |   |        |   | 2,312  |   |   |   | 304 |   |
| Total                  Residential                  Properties                                            |   |                                                     | 2,616  |   |        |   | 2,312  |   |   |   | 304 |   |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Total                  income from real estate                  operations                                |   |                                                     | 6,020  |   |        |   | 5,740  |   |   |   | 280 |   |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Financing                  costs:                                                                         |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Fixed                  rate                  mortgages                                                    |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Same                  Properties                  (1)                                                     |   |                                                     | (2,561 | )      |        |   | (2,624 | )      |   |   | 63 |   |
| Floating                  Rate -                  Rotunda                                                 |   |                                                     | (372   | )      |        |   | (419   | )      |   |   | 47 |   |
| Total                  financing                  costs                                                   |   |                                                     | (2,933 | )      |        |   | (3,043 | )      |   |   | 110 |   |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Investment                  income                                                                        |   |                                                     | 159    |   |        |   | 87     |   |   |   | 72 |   |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Corporate                  expenses                                                                       |   |                                                     | (211   | )      |        |   | (160   | )      |   |   | (51 | ) |
| Accounting                                                                                                |   |                                                     | (179   | )      |        |   | (229   | )      |   |   | 50 |   |
| Minority                  interest in earnings of                  subsidiaries                           |   |                                                     | (115   | )      |        |   | (138   | )      |   |   | 23 |   |
| Distribution                  to Westwood Hills                  minority interests                       |   |                                                     | -      |   |        |   | (150   | )      |   |   | 150 |   |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Depreciation:                                                                                             |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Same                  Properties                  (1)                                                     |   |                                                     | (1,338 | )      |        |   | (1,303 | )      |   |   | (35 | ) |
| Total                  depreciation                                                                       |   |                                                     | (1,338 | )      |        |   | (1,303 | )      |   |   | (35 | ) |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Income                  from continuing                  operations                                       |   |                                                     | 1,403  |   |        |   | 804    |   |   |   | 599 |   |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Income                  from discontinued                  operations                                     |   |                                                     | -      |   |        |   | 42     |   |   |   | (42 | ) |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| Net                  Income                                                                               |   | $                                                        | 1,403  |   |        | $      | 846    |   |   | $ | 557 |   |
|                                                                                                      |   |                                                     |   |   |        |   |   |   |   |   |   |   |
| (1)                  Properties operated since the                  beginning of fiscal 2007.             |   |                                                     |   |   |        |   |   |   |   |
| * Restated                  to reflect                  reclassification of discontinued operations. |   |                                                     |   |   |        |   |   |   |   |

----

Index

|                                                   |   |                                                 |   |                                 |        |                         |     |                                 |                            |                                                 |   |   |   |   |   |   |   |                                                 |                            |   |    |   |   |   |   |   |   |   |   |   |
|--------------------------------------------------------|--------|------------------------------------------------------|--------|--------------------------------------|-------------|------------------------------|----------|--------------------------------------|---------------------------------|------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------------------------------------------------------|---------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Three                  Months Ended January 31:        |   |                                                 |   |                                 |        |                         |     |                                 |                            |                                                 |   |   |   |   |   |   |   |                                                 |                            |   |    |   |   |   |   |   |   |   |
|                                                   |   |                                                 |   |                                 |        |                         |     |                                 |                            |                                                 |   |   |   |   |   |   |   |                                                 |                            |   |    |   |   |   |   |   |   |   |   |   |
|                                                   |   | Commercial                                           |   |                                 | Residential |                         | Combined |
|                                                   |   | Three                  Months                  Ended |   |                                 |        |                         |     |                                 |                            | Three                  Months                  Ended |   |   |   |   |   |   |   | Three                  Months                  Ended |
|                                                   |   | January                  31,                         |   | Increase                  (Decrease) |        | January                  31, |     | Increase                  (Decrease) |                            | January                  31,                         |
|                                                   |   | 2008                                                 |   |                                 | 2007        |                         |     |  $                              |                            |                                                 |   | %      |   |   | 2008   |   |   |  2007*                                          |                            |   |  $ |   |   |   | %      |   |   | 2008   |   |   |   | 2007* |   |
|                                                   |   | (in                  thousands)                      |   |                                 |        |                         |     |                                 | (in                  thousands) |                                                 |   |   |   |   |   |   |   |                                                 | (in                  thousands) |   |
| Rental                  income                         |   | $                                                    | 4,194  |                                 |        | $                            | 4,137    |                                 |                            | $                                                    | 57     |   |   |   | 1.4    | %      |   | $                                                    | 4,715                           |   |    | $      | 4,452  |   |   | $      | 263    |   |   |   | 5.9 | % |   | $ | 8,909 |   |   | $ | 8,589 |   |
| Reimbursements                                         |   |                                                 | 1,385  |                                 |        |                         | 1,284    |                                 |                            |                                                 | 101    |   |   |   | 7.9    | %      |   |                                                 |                            |   |    |   |   |   |   |   | -      |   |   |   |   |   |   |   | 1,385 |   |   |   | 1,284 |   |
| Other                                                  |   |                                                 | 45     |                                 |        |                         | 42       |                                 |                            |                                                 | 3      |   |   |   | 7.1    | %      |   |                                                 | 47                              |   |    |   | 61     |   |   |   | (14    | )      |   |   | -23.0 | % |   |   | 92 |   |   |   | 103 |    |
| Total                  revenue                         |   |                                                 | 5,624  |                                 |        |                         | 5,463    |                                 |                            |                                                 | 161    |   |   |   | 2.9    | %      |   |                                                 | 4,762                           |   |    |   | 4,513  |   |   |   | 249    |   |   |   | 5.5 | % |   |   | 10,386 |   |   |   | 9,976 |   |
|                                                   |   |                                                 |   |                                 |        |                         |     |                                 |                            |                                                 |   |   |   |   |   |   |   |                                                 |                            |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses                    |   | 2,291                                                |   |                                 |        | 2,165                        |     |                                 |                            | 126                                                  |   |   |   | 5.8    | %      |   |   | 2,146                                                |                            |   |    | 2,201  |   |   |   | (55    | )      |   |   | -2.5   | % |   |   | 4,437 |   |   |   | 4,366 |    |
| Net                  operating                  income | $      | 3,333                                                |   |                                 | $           | 3,298                        |     |                                 | $                               | 35                                                   |   |   |   | 1.1    | %      |   | $      | 2,616                                                |                            |   | $       | 2,312  |   |   | $      | 304    |   |   |   | 13.1   | % |   |   | 5,949 |   |   |   | 5,610 |    |
| Average                                                |   |                                                 |   |                                 |        |                         |     |                                 |                            |                                                 |   |   |   |   |   |   |   |                                                 |                            |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy                  %                           |   |                                                 | 89.5   | %                                    |        |                         | 89.5     | %                                    |                            |                                                 |   |   |   |   | 0.0    | %      |   |                                                 | 95.7                            | %      |    |   | 93.8   | %      |   |   |   |   |   |   | 1.9 | % |   |   |   |   |   |   |   |   |

|   | Reconciliation                  to consolidated net                  income:           |   |   |   |   |   |   |
|--------|----------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|   | Deferred                  rents - straight                  lining                     |   |   | 47     |   |   |   | 55 |   |
|   | Amortization                  of acquired                  leases                      |   |   | 24     |   |   |   | 75 |   |
|   | Net                  investment                  income                                |   |   | 159    |   |   |   | 87 |   |
|   | General                  and administrative                  expenses                  |   |   | (390   | )      |   |   | (389 | ) |
|   | Depreciation                                                                           |   |   | (1,338 | )      |   |   | (1,303 | ) |
|   | Financing                  costs                                                       |   |   | (2,933 | )      |   |   | (3,043 | ) |
|   | Distributions                  to certain minority                  interests          |   |   | -      |   |   |   | (150 | ) |
|   | Minority                  interest                                                     |   |   | (115   | )      |   |   | (138 | ) |
|   |       Income                  from continuing operations |   |   | 1,403  |   |   |   | 804 |   |
|   | Income                  from discontinued                  operations                  |   |   | -      |   |   |   | 42 |   |
|   |  Net                  income                                                      |   | $      | 1,403  |   |   | $      | 846 |   |

|                                             |                                 |                                 |                                                   |   |   |          |                                                |   |   |  Annual                  Rent of Expiring                  Leases |
|--------------------------------------------------|--------------------------------------|--------------------------------------|--------------------------------------------------------|--------|--------|---------------|-----------------------------------------------------|--------|--------|------------------------------------------------------------------------|
| Year                  Ending                     |  Number                of       |  Expiring                Leases |  Percent                of                        |   |   |          |                                                |   |   |
| October                  31,                     |  Expiring                Leases |  Sq.                Ft.         |  Commercial                Sq.                Ft. |   | Total  |          |  Per                  Sq.                  Ft. |
|                                             |                                 |                                 |                                                   |   |   |          |                                                |   |   |                                                                   |   |   |   |   |   |
| Month                  to                  month |                                 |                                 | 24                                                     |   |   |          | 59,092                                              |   |   |                                                                   | 5.4 | % |   | $ | 1,082,497 |   |   | $ | 18.32 |   |
| 2008                                             |                                 |                                 | 20                                                     |   |   |          | 67,554                                              |   |   |                                                                   | 6.2 | % |   | $ | 1,339,565 |   |   | $ | 19.83 |   |
| 2009                                             |                                 |                                 | 15                                                     |   |   |          | 44,143                                              |   |   |                                                                   | 4.1 | % |   | $ | 801,213 |   |   | $ | 18.15 |   |
| 2010                                             |                                 |                                 | 19                                                     |   |   |          | 89,719                                              |   |   |                                                                   | 8.3 | % |   | $ | 1,283,854 |   |   | $ | 14.31 |   |
| 2011                                             |                                 |                                 | 15                                                     |   |   |          | 57,081                                              |   |   |                                                                   | 5.2 | % |   | $ | 1,342,052 |   |   | $ | 23.51 |   |
| 2012                                             |                                 |                                 | 10                                                     |   |   |  191,758 |                                                |   |   | 17.6                                                                   | % |   | $ | 1,384,803 |   |   | $ | 7.22 |   |
| 2013                                             |                                 |                                 | 4                                                      |   |   |          | 33,346                                              |   |   |                                                                   | 3.1 | % |   | $ | 641,326 |   |   | $ | 19.23 |   |
| 2014                                             |                                 |                                 | 4                                                      |   |   |          | 20,121                                              |   |   |                                                                   | 1.9 | % |   | $ | 318,276 |   |   | $ | 15.82 |   |
| 2015                                             |                                 |                                 | 7                                                      |   |   |          | 76,104                                              |   |   |                                                                   | 7.0 | % |   | $ | 862,806 |   |   | $ | 11.34 |   |
| 2016                                             |                                 |                                 | 3                                                      |   |   |          | 20,576                                              |   |   |                                                                   | 1.9 | % |   | $ | 172,432 |   |   | $ | 8.38 |   |
| 2017                                             |                                 |                                 | 1                                                      |   |   |          | 2,786                                               |   |   |                                                                   | 0.3 | % |   | $ | 65,471 |   |   | $ | 23.50 |   |

----

Index

| Residential                      Apartment Properties: |                                    | Commercial                      Properties:                                                                                    |
|--------------------------------------------------------|-----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|
| Property                      & Location           |  No.                      of Units | Average                      Quarterly                      Occupancy                      Rate @                      1/31/08 | Average                      Monthly                      Rent                      per                      Unit @ 1/31/08 | Average                      Monthly                      Rent per                      Unit @ 1/31/07 |   | Property                      & Location | Leaseable                      Space                      - Approximate                      Sq.                      Ft. | Average                      Quarterly                      Occupancy                      Rate @                      1/31/08 | Average                      Annualized                      Rent per                      Sq. Ft. @ 1/31/08 | Average                      Annualized                      Rent per                      Sq. Ft. @ 1/31/07 |
|                                                   |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |
| Palisades                      Manor                   | 12                                      | 100.0%                                                                                                                         | $1,072 | $1,046 |   | Franklin                      Crossing | 87,041 | 93.8% | $22.95 | $21.73 |
| Palisades                      Park, NJ                |                                    |                                                                                                                           |   |   |   | Franklin                      Lakes, NJ |   |   |   |   |
|                                                   |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |
| Grandview                      Apts.                   | 20                                      | 100.0%                                                                                                                         | $1,133 | $1,073 |   | Westwood                      Plaza | 173,854 | 100.0% | $12.66 | $12.81 |
| Hasbrouck                      Heights, NJ             |                                    |                                                                                                                           |   |   |   | Westwood,                      NJ |   |   |   |   |
|                                                   |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |
| Heights                      Manor                     | 79                                      | 92.7%                                                                                                                          | $1,125 | $1,070 |   | Westridge                      Square | 256,620 | 88.4% | $12.60 | $12.05 |
| Spring                      Lake Heights, NJ           |                                    |                                                                                                                           |   |   |   | Frederick,                      MD |   |   |   |   |
|                                                   |                               |                                                                                                                           |   |   |   |   |   |   |   |   |
| Hammel                      Gardens                    | 80                                      | 99.1%                                                                                                                          | $1,176 | $1,161 |   | Pathmark                      Super Store | 63,962 | 100.0% | $19.99 | $18.49 |
| Maywood,                      NJ                       |                                    |                                                                                                                           |   |   |   | Patchogue,                      NY |   |   |   |   |
|                                                   |                               |                                                                                                                           |   |   |   |   |   |   |   |   |
| Steuben                      Arms                      | 100                                     | 99.0%                                                                                                                          | $1,234 | $1,200 |   | Glen                      Rock, NJ | 4,800 | 100.0% | $20.48 | $20.48 |
| River                      Edge, NJ                    |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                   |                               |                                                                                                                           |   |   |   |   |   |   |   |   |
| Berdan                      Court                      | 176                                     | 97.9%                                                                                                                          | $1,380 | $1,329 |   | Preakness                      Center | 322,136 | 97.4% | $12.63 | $12.16 |
| Wayne,                      NJ                         |                                    |                                                                                                                           |   |   |   | Wayne,                      NJ |   |   |   |   |
|                                                   |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |
| Pierre                      Towers                     | 269                                     | 93.9%                                                                                                                          | $1,765 | $1,700 |   | Damascus                      Center | 139,878 | 52.3% | $6.98 | $9.04 |
| Hackensack,                      NJ                    |                                    |                                                                                                                           |   |   |   | Damascus,                      MD |   |   |   |   |
|                                                   |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |
| Westwood                      Hills                    | 210                                     | 95.0%                                                                                                                          | $1,389 | $1,370 |   | The                      Rotunda | 216,645 | 89.4% | $20.44 | $20.09 |
| Westwood                      Hills, NJ                |                                    |                                                                                                                           |   |   |   | Baltimore,                      MD |   |   |   |   |
|                                                   |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |
| Boulders                                               | 129                                     | 93.8%                                                                                                                          | $1,350 | $1,290 |   |   |   |   |   |   |
| Rockaway,                      NJ                      |                                    |                                                                                                                           |   |   |   |   |   |   |   |   |

|                               |   |   | Three                  Months Ended January                  31, |   |
|------------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                               |   |   | 2008                                                             |   |   | 2007 |   |
|                               |   |   | Commercial                                                       |   |   |   |   |   | Same |   |   | Commercial |   |   |   |   |   | Same |   |
|                   $(000) |   |   | Properties                                                       |   |   | Damascus |   |   | Properties |   |   | Properties |   |   | Damascus |   |   | Properties |   |
| Revenues                           |   |   | $                                                                | 5,624  |   |   | $ | 152 |   |   | $ | 5,472 |   |   | $ | 5,463 |   |   | $ | 199 |   |   | $ | 5,264 |   |
|                               |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                           |   |   |                                                             | 2,291  |   |   |   | 98 |   |   |   | 2,193 |   |   |   | 2,165 |   |   |   | 88 |   |   |   | 2,077 |   |
|                               |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOI                                |   |   | $                                                                | 3,333  |   |   | $ | 54 |   |   | $ | 3,279 |   |   | $ | 3,298 |   |   | $ | 111 |   |   | $ | 3,187 |   |

----

Index

----

Index

|                                                                         |   | Three                  Months                  Ended |   |
|------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|
|                                                                         |   | January                  31,                         |   |
|                                                                         |   | 2008                                                 |   |   | 2007 |   |
|                                                                         |   | ($                  in                  thousands)   |   |
|  Fixed                  rate                  mortgages:                |   |                                                 |   |   |   |   |
|     1st                  Mortgages                       |   |                                                 |   |   |   |   |
|     Existing                                             |   | $                                                    | 2,369  |   |   | $ | 2,393 |   |
|     2nd                  Mortgages                       |   |                                                 |   |   |   |   |   |   |
|     Existing                                             |   |                                                 | 130    |   |   |   | 133 |   |
| Variable                  rate                  mortgages:                   |   |                                                 |   |   |   |   |   |   |
|     Acquisition                  loan-Rotunda            |   |                                                 | 392    |   |   |   | 405 |   |
|  Other                                                                  |   |                                                 | 55     |   |   |   | 47 |   |
|                                                                         |   |                                                 | 2,946  |   |   |   | 2,978 |   |
|  Amortization                  of Mortgage                  Costs       |   |                                                 | 73     |   |   |   | 65 |   |
|  Total                  Financing                  Costs                |   |                                                 | 3,019  |   |   |   | 3,043 |   |
|       Less                  amount capitalized |   |                                                 | (86    | ) |   |   | - |   |
|  Financing                  costs                  expensed             |   | $                                                    | 2,933  |   |   | $ | 3,043 |   |
|                                                                         |   |                                                 |   |   |   |   |   |   |

----

Index

| Fiscal                  Year                                  | 2008   | 2010   | 2013   | 2014   | 2016   | 2017   | 2019   | 2022   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| ($                  in                  millions)             |   |   |   |   |   |   |   |   |
| Mortgage                  "Balloon"                  Payments | $28.4  | $12.2  | $8.0   | $25.9  | $24.5  | $22.0  | $28.1  | $14.4  |

|                                              |   | January                  31, |   | October                  31, |
|---------------------------------------------------|--------|------------------------------|--------|------------------------------|
| ($                  in                  Millions) |   | 2008                         |   | 2007                         |
| Fair                  Value                       |   | $196.3                       |   | $188.7                       |
|                                              |   |                         |   |                         |
| Carrying                  Value                   |   | $188.8                       |   | $189.4                       |

----

Index

| Funds                  From Operations ("FFO")                                                            |                                                                   |   |                                                 |   |   |        |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|-------------|
|                                                                                                      |                                                                   |   | Three                  Months                  Ended |   |
|                                                                                                      |                                                                   |   | January                  31,                         |   |
|                                                                                                      |                                                                   |   | 2008                                                 |   |   |  2007* |   |
|                                                                                                      |                                                                   |   | ($                  in                  thousands)   |   |
|                                                                                                      |                                                                   |   |                                                 |   |   |        |   |   |
| Net                  income                                                                               |                                                                   | $      | 1,403                                                |   |   | $           | 846 |   |
| Depreciation                                                                                              |                                                                   |   | 1,338                                                |   |   |        | 1,303 |   |
| Amortization                  of deferred mortgage                  costs                                 |                                                                   |   | 73                                                   |   |   |        | 65 |   |
| Deferred                  rents (Straight                  lining)                                        |                                                                   |   | (47                                                  | )      |   |        | (55 | ) |
| Amortization                  of acquired                  leases                                         |                                                                   |   | (24                                                  | )      |   |        | (75 | ) |
| Capital                  Improvements -                  Apartments                                       |                                                                   |   | (146                                                 | )      |   |        | (174 | ) |
| Discontinued                  operations                                                                  |                                                                   |   | -                                                    |   |   |        | (42 | ) |
| Minority                  interests:                                                                      |                                                                   |   |                                                 |   |   |        |   |   |
| Equity                  in earnings of                  affiliates                                        |                                                                   |   | 115                                                  |   |   |        | 288 |   |
| Distributions                  to minority                  interests                                     |                                                                   |   | (327                                                 | )      |   |        | (300 | ) |
|                                                                                                      |                                                                   |   |                                                 |   |   |        |   |   |   |
|                                                                                                      | FFO                                                                    |   | $                                                    | 2,385  |   |        | $ | 1,856 |   |
|                                                                                                      |                                                                   |   |                                                 |   |   |        |   |   |   |
|                                                                                                      |  Per                  Share -                  Basic              |   | $                                                    | 0.35   |   |        | $ | 0.27 |   |
|                                                                                                      |  Per                  Share -                  Diluted            |   | $                                                    | 0.35   |   |        | $ | 0.27 |   |
|                                                                                                      |                                                                   |   |                                                 |   |   |        |   |   |   |
|                                                                                                      | Weighted                  Average Shares                  Outstanding: |   |
|                                                                                                      |  Basic                                                            |   |                                                 | 6,763  |   |        |   | 6,751 |   |
|                                                                                                      |  Diluted                                                          |   |                                                 | 6,906  |   |        |   | 6,919 |   |
|                                                                                                      |                                                                   |   |                                                 |   |   |        |   |   |   |
| * Restated                  to reflect                  reclassification of discontinued operations. |                                                                   |

----

Index

----

Index

n

d 

e

k

|   | § | the                national and regional economic climate; |
|--------|--------|------------------------------------------------------------|

|   | § | occupancy                rates at the properties; |
|--------|--------|---------------------------------------------------|

|   | § | tenant                turnover rates; |
|--------|--------|---------------------------------------|

|   | § | rental                rates; |
|--------|--------|------------------------------|

|   | § | operating                expenses; |
|--------|--------|------------------------------------|

|   | § | tenant                improvement and leasing costs; |
|--------|--------|------------------------------------------------------|

|   | § | cost                of and availability of capital; |
|--------|--------|-----------------------------------------------------|

|   | § | new                acquisitions and development projects; and |
|--------|--------|---------------------------------------------------------------|

|   | § | changes                in governmental regulations, real estate tax rates and similar matters. |
|--------|--------|------------------------------------------------------------------------------------------------|

----

Index

|   | · | financing                may not be available in the amounts we seek, or may not be on favorable                terms; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | long-term                financing may not be available upon completion of the construction;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | failure                to complete construction on schedule or within budget may increase                debt                service costs and construction costs. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

6

|                                                                                                                     | Page   |
|--------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                     |   |
| Exhibit                31.1 - Section 302 Certification of Chief                Executive Officer                        | 24     |
|                                                                                                                     |   |
| Exhibit                31.2 - Section 302 Certification of Chief                Financial Officer                        | 25     |
|                                                                                                                     |   |
| Exhibit                32.1 - Certification of Chief Executive                Officer pursuant to 18 U.S.C. Section 1350 | 26     |
|                                                                                                                     |   |
| Exhibit                32.2 - Certification of Chief Financial                Officer pursuant to 18 U.S.C. Section 1350 | 27     |

----

Index

G

|                                  | FIRST                  REAL ESTATE INVESTMENT                      |
|---------------------------------------|--------------------------------------------------------------------|
|                                  | TRUST                  OF NEW                  JERSEY              |   |
|                                  | (Registrant)                                                       |   |
|                                  |                                                               |   |
| Date:                  March 11, 2008 |                                                               |   |
|                                  | /s/                  Robert S. Hekemian                            |   |
|                                  | (Signature)                                                        |   |
|                                  | Robert                  S. Hekemian                                |   |
|                                  | Chairman                  of the Board and Chief Executive Officer |
|                                  | (Principal                  Executive Officer)                     |   |
|                                  |                                                               |   |
|                                  |                                                               |   |
|                                  | /s/                  Donald W. Barney                              |   |
|                                  | (Signature)                                                        |   |
|                                  | Donald                  W. Barney                                  |   |
|                                  | President,                  Treasurer and Chief Financial Officer  |
|                                  | (Principal                  Financial/Accounting Officer)          |