**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

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

**For      the Quarterly Period Ended January 31, 2007**

|  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  |
|------------------------------------------|------------------------------------|----------------------------------------------|

----

**FIRST      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY**

**INDEX**

| **Part                  I: Financial Information** |                                                                                            |
|----------------------------------------------------|-------------------------------------------------------------------------------------------------|
|                                               |                                                                                            |   |   | Page |
|                                               |                                                                                            |   |   |   |
|                                               | Item                  1: Unaudited Condensed Consolidated Financial                  Statements |   |
|                                               |                                                                                            |   |   |   |
|                                               |                                                                                            | a.) | Consolidated                  Balance Sheets as at January 31, 2007 and October                  31, 2006; | 3 |
|                                               |                                                                                            |   |   |   |
|                                               |                                                                                            | b.) | Consolidated                  Statements of Income, Comprehensive Income and                  Undistributed Earnings for the Three Months Ended January 31, 2007                  and                  2006; | 4 |
|                                               |                                                                                            |   |   |   |
|                                               |                                                                                            | c.) | Consolidated                  Statements of Cash Flows for the Three Months                  Ended January 31, 2007 and 2006; | 5 |
|                                               |                                                                                            |   |   |   |
|                                               |                                                                                            | d.) | Notes                  to Condensed Consolidated Financial                  Statements. | 6 |
|                                               |                                                                                            |   |   |   |
|                                               | Item                  2:                                                                        | Management’s                  Discussion and Analysis of Financial Condition and                  Results of Operations | 8 |
|                                               |                                                                                            |   |   |   |
|                                               | Item                  3:                                                                        | Quantitative                  and Qualitative Disclosures About Market                  Risk | 17 |
|                                               |                                                                                            |   |   |   |
|                                               | Item                  4:                                                                        | Controls                  and Procedures | 17 |
|                                               |                                                                                            |   |   |   |
| **Part                  II: Other Information**    |                                                                                            |
|                                               |                                                                                            |   |   |   |
|                                               | Item                  6: Exhibits                                                               | 18 |

----

*Index*

**Part      I: Financial Information**

**Item      1: Unaudited Condensed Consolidated Financial      Statements**

|                                                                                                    |   |                                       |    |                         |   |
|---------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|------------------------------|--------|
| **FIRST                  REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND                  SUBSIDIARIES** |
| CONSOLIDATED                  BALANCE SHEETS                                                            |
|                                                                                                    |   |                                       |    |                         |   |
|                                                                                                    |   |                                       |    |                         |   |
|                                                                                                    |   |                                       |    |                         |   |
|                                                                                                    |   | January                  31,               |    | October                  31, |   |
|                                                                                                    |   | 2007                                       |    | 2006                         |   |
|                                                                                                    |   | (In                  Thousands of Dollars) |    |
| ASSETS                                                                                                  |   |                                       |    |                         |   |
| Real                  estate, at cost, net of accumulated depreciation                                  |   | $                                          | 205,166 |                         | $      | 204,313 |   |
| Construction                  in progress                                                               |   |                                       | 2,738   |                         |   | 2,995 |   |
| Cash                  and cash equivalents                                                              |   |                                       | 8,728   |                         |   | 9,616 |   |
| Tenants'                  security accounts                                                             |   |                                       | 2,206   |                         |   | 2,161 |   |
| Sundry                  receivables                                                                     |   |                                       | 3,498   |                         |   | 3,320 |   |
| Secured                  loans receivable                                                               |   |                                       | 3,109   |                         |   | 3,109 |   |
| Prepaid                  expenses and other assets                                                      |   |                                       | 3,988   |                         |   | 4,201 |   |
| Acquired                  over market leases and in-place lease costs                                   |   |                                       | 1,322   |                         |   | 1,395 |   |
| Deferred                  charges, net                                                                  |   |                                       | 3,276   |                         |   | 3,589 |   |
| Interest                  rate swap contract                                                            |   |                                       | 80      |                         |   | 87 |   |
| Totals                                                                                                  |   | $                                          | 234,111 |                         | $      | 234,786 |   |
|                                                                                                    |   |                                       |    |                         |   |   |   |
|                                                                                                    |   |                                       |    |                         |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                                                   |   |                                       |    |                         |   |   |   |
| Liabilities:                                                                                            |   |                                       |    |                         |   |   |   |
| Mortgages                  payable                                                                      |   | $                                          | 184,910 |                         | $      | 180,679 |   |
| Accounts                  payable and accrued expenses                                                  |   |                                       | 3,896   |                         |   | 6,097 |   |
| Dividends                  payable                                                                      |   |                                       | 2,025   |                         |   | 3,375 |   |
| Tenants'                  security deposits                                                             |   |                                       | 2,848   |                         |   | 2,823 |   |
| Acquired                  below market value leases and deferred revenue                                |   |                                       | 3,763   |                         |   | 3,945 |   |
| Total                  liabilities                                                                      |   |                                       | 197,442 |                         |   | 196,919 |   |
|                                                                                                    |   |                                       |    |                         |   |   |   |
| Minority                  interest                                                                      |   |                                       | 12,883  |                         |   | 12,895 |   |
|                                                                                                    |   |                                       |    |                         |   |   |   |
| Commitments                  and contingencies                                                          |   |                                       |    |                         |   |   |   |
|                                                                                                    |   |                                       |    |                         |   |   |   |
| Shareholders'                  equity:                                                                  |   |                                       |    |                         |   |   |   |
| Shares                  of beneficial interest without par value:                                       |   |                                       |    |                         |   |   |   |
| 8,000,000                  shares authorized;                                                           |   |                                       |    |                         |   |   |   |
| 6,750,652                  shares issued                                                                |   |                                       |    |                         |   |   |   |
| and                  outstanding                                                                        |   |                                       | 23,150  |                         |   | 23,150 |   |
| Undistributed                  earnings                                                                 |   |                                       | 556     |                         |   | 1,735 |   |
| Accumulated                  other comprehensive income                                                 |   |                                       | 80      |                         |   | 87 |   |
| Total                  shareholders' equity                                                             |   |                                       | 23,786  |                         |   | 24,972 |   |
| Totals                                                                                                  |   | $                                          | 234,111 |                         | $      | 234,786 |   |
|                                                                                                    |   |                                       |    |                         |   |   |   |
|                                                                                                    |   |                                       |    |                         |   |   |   |
| 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, 2007 AND 2006                                             |
|                                                                                                        |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |
|                                                                                                        |   | 2007 |   | 2006 |   |
|                                                                                                        |   | (In                    Thousands of Dollars, |   |
|                                                                                                        |   | Except                    Per Share Amounts) |   |
| Revenue:                                                                                                    |   |   |   |   |   |   |   |
| Rental                    income                                                                            |   | $ | 8,824 |   | $ | 8,134 |   |
| Reimbursements                                                                                              |   |   | 1,284 |   |   | 1,341 |   |
| Sundry                    income                                                                            |   |   | 106 |   |   | 59 |   |
| Totals                                                                                                      |   |   | 10,214 |   |   | 9,534 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Expenses:                                                                                                   |   |   |   |   |   |   |   |
| Operating                    expenses                                                                       |   |   | 2,938 |   |   | 2,567 |   |
| Management                    fees                                                                          |   |   | 440 |   |   | 416 |   |
| Real                    estate taxes                                                                        |   |   | 1,440 |   |   | 1,369 |   |
| Depreciation                                                                                                |   |   | 1,306 |   |   | 1,130 |   |
| Totals                                                                                                      |   |   | 6,124 |   |   | 5,482 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Operating                    income                                                                         |   |   | 4,090 |   |   | 4,052 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Investment                    income                                                                        |   |   | 87 |   |   | 48 |   |
| Interest                    expense including amortization                                                  |   |   |   |   |   |   |   |
| of                    deferred financing costs                                                              |   |   | (3,043 | ) |   | (2,735 | ) |
| Minority                    interest                                                                        |   |   | (138 | ) |   | (77 | ) |
| Distribution                    to certain minority interests                                               |   |   | (150 | ) |   | - |   |
| Net                    income                                                                               |   | $ | 846 |   | $ | 1,288 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Earnings                    per share:                                                                      |   |   |   |   |   |   |   |
| Basic                                                                                                       |   | $ | 0.13 |   | $ | 0.20 |   |
| Diluted                                                                                                     |   |   | 0.12 |   |   | 0.19 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| Weighted                    average shares outstanding:                                                     |   |   |   |   |   |   |   |
| Basic                                                                                                       |   |   | 6,751 |   |   | 6,511 |   |
| Diluted                                                                                                     |   |   | 6,919 |   |   | 6,685 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| COMPREHENSIVE                    INCOME                                                                     |   |   |   |   |   |   |   |
| Net                    income                                                                               |   | $ | 846 |   | $ | 1,288 |   |
| Other                    comprehensive income:                                                              |   |   |   |   |   |   |   |
| Unrealized                    gain on interest                                                              |   |   |   |   |   |   |   |
| rate                    swap contract                                                                       |   |   | (7 | ) |   | 5 |   |
| Comprehensive                    income                                                                     |   | $ | 839 |   | $ | 1,293 |   |
|                                                                                                        |   |   |   |   |   |   |   |
| UNDISTRIBUTED                    EARNINGS                                                                   |   |   |   |   |   |   |   |
| Balance,                    beginning of period                                                             |   | $ | 1,735 |   | $ | 4,890 |   |
| Net                    income                                                                               |   |   | 846 |   |   | 1,288 |   |
| Less                    dividends declared                                                                  |   |   | (2,025 | ) |   | (1,663 | ) |
| Balance,                    end of period                                                                   |   | $ | 556 |   | $ | 4,515 |   |
| Dividends                    per share                                                                      |   | $ | 0.30 |   | $ | 0.25 |   |
|                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |
|                                                                                                        |   |   |   |   |   |   |   |
| 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, 2007 AND 2006                                                |
|                                                                                                               |   |   |   |   |   |
|                                                                                                               |   | 2007 |   | 2006 |   |
|                                                                                                               |   | (In                  Thousands of Dollars) |   |
| Operating                  activities:                                                                             |   |   |   |   |   |   |   |
| Net                  income                                                                                   |   | $ | 846 |   | $ | 1,288 |   |
| Adjustments                  to reconcile net income to net cash provided by                                  |   |   |   |   |   |   |   |
| operating                  activities:                                                                        |   |   |   |   |   |   |   |
|  Depreciation                                                                                                 |   |   | 1,306 |   |   | 1,130 |   |
|  Amortization                                                                                                 |   |   | 139 |   |   | 116 |   |
|  Net                  amortization of acquired leases                                                         |   |   | (75 | ) |   | - |   |
|  Deferred                  revenue                                                                            |   |   | (69 | ) |   | (109 | ) |
|  Minority                  interest                                                                           |   |   | 288 |   |   | 77 |   |
|  Changes                  in operating assets and liabilities:                                                |   |   |   |   |   |   |   |
| Tenants'                  security accounts                                                                        |   |   | (45 | ) |   | (22 | ) |
| Sundry                  receivables, prepaid expenses and other assets                                             |   |   | 223 |   |   | 32 |   |
| Accounts                  payable, accrued expenses and other liabilities                                          |   |   | (81 | ) |   | (404 | ) |
| Tenants'                  security deposits                                                                        |   |   | 25 |   |   | 36 |   |
| Net                  cash provided by operating activities                                                         |   |   | 2,557 |   |   | 2,144 |   |
| Investing                  activities:                                                                             |   |   |   |   |   |   |   |
| Capital                  improvements - existing properties                                                   |   |   | (934 | ) |   | (637 | ) |
| Construction                  and pre development costs                                                       |   |   | (3,067 | ) |   | (3,789 | ) |
|                                                                                                               |   |   |   |   |   |   |   |
| Net                  cash used in investing activities                                                             |   |   | (4,001 | ) |   | (4,426 | ) |
| Financing                  activities:                                                                             |   |   |   |   |   |   |   |
| Repayment                  of mortgages                                                                       |   |   | (2,100 | ) |   | (430 | ) |
| Proceeds                  from mortgages                                                                      |   |   | 6,331 |   |   | 6,426 |   |
| Proceeds                  from exercise of stock options                                                      |   |   | - |   |   | 450 |   |
| Dividends                  paid                                                                               |   |   | (3,375 | ) |   | (2,944 | ) |
| Distribution                  to minority interest                                                            |   |   | (300 | ) |   | - |   |
| Net                  cash provided by financing activities                                                         |   |   | 556 |   |   | 3,502 |   |
| Net                  increase (decrease) in cash and cash equivalents                                              |   |   | (888 | ) |   | 1,220 |   |
| Cash                  and cash equivalents, beginning of period                                                    |   |   | 9,616 |   |   | 5,672 |   |
| Cash                  and cash equivalents, end of period                                                          |   | $ | 8,728 |   | $ | 6,892 |   |
|                                                                                                               |   |   |   |   |   |   |   |
| Supplemental                  disclosure of cash flow data:                                                        |   |   |   |   |   |   |   |
| Interest                  paid, including capitalized construction period                  interest           |   |   |   |   |   |   |   |
| of                  $21 in fiscal 2006.                                                                       |   | $ | 2,978 |   | $ | 2,691 |   |
| Income                  taxes paid                                                                            |   | $ | 6 |   | $ | 3 |   |
| Supplemental                  schedule of non cash financing activities:                                           |   |   |   |   |   |   |   |
| Accrued                  capital expenditures, construction costs and pre-development                  costs  |   | $ | 325 |   | $ | - |   |
| Dividends                  declared but not paid                                                              |   | $ | 2,025 |   | $ | 1,635 |   |
|                                                                                                               |   |   |   |   |   |   |   |
| See                  Notes to Condensed Consolidated Financial Statements.                                         |   |   |   |   |   |   |   |

----

*Index*

**FIRST      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND      SUBSIDIARIES**

|                                                                   |   | Three                  Months Ended |      |
|------------------------------------------------------------------------|--------|-------------------------------------|-----------|
|                                                                   |   | January                  31,        |      |
|                                                                   |   | 2007                                |      | 2006 |   |
| Basic                  weighted average shares outstanding             |   |                                | 6,750,652 |   |   | 6,511,152 |   |
|                                                                   |   |                                |      |   |   |   |   |
| Shares                  arising from assumed exercise of stock options |   |                                | 168,205   |   |   | 173,556 |   |
| Dilutive                  weighted average shares outstanding          |   |                                | 6,918,857 |   |   | 6,684,708 |   |

----

*Index*

|                                                             |   | Three                  Months Ended        |   |
|------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                             |   | January                  31,               |   |
|                                                             |   | 2007                                       |   | 2006 |   |
|                                                             |   | (In                  Thousands of Dollars) |   |
| Real                  estate rental revenue:                     |   |                                       |   |   |   |   |   |
| Commercial                                                       |   | $                                          | 5,463  |   | $ | 5,376 |   |
| Residential                                                      |   |                                       | 4,621  |   |   | 3,934 |   |
| Totals                                                           |   |                                       | 10,084 |   |   | 9,310 |   |
|                                                             |   |                                       |   |   |   |   |   |
| Real                  estate operating expenses:                 |   |                                       |   |   |   |   |   |
| Commercial                                                       |   |                                       | 2,165  |   |   | 2,076 |   |
| Residential                                                      |   |                                       | 2,264  |   |   | 2,032 |   |
| Totals                                                           |   |                                       | 4,429  |   |   | 4,108 |   |
|                                                             |   |                                       |   |   |   |   |   |
| Net                  operating income:                           |   |                                       |   |   |   |   |   |
| Commercial                                                       |   |                                       | 3,298  |   |   | 3,300 |   |
| Residential                                                      |   |                                       | 2,357  |   |   | 1,902 |   |
| Totals                                                           |   | $                                          | 5,655  |   | $ | 5,202 |   |
|                                                             |   |                                       |   |   |   |   |   |
| Recurring                  capital improvements-residential      |   | $                                          | 174    |   | $ | 339 |   |
|                                                             |   |                                       |   |   |   |   |   |
| Reconciliation                  to consolidated net income:      |   |                                       |   |   |   |   |   |
| Segment                  NOI                                     |   | $                                          | 5,655  |   | $ | 5,202 |   |
| Deferred                  rents - straight lining                |   |                                       | 55     |   |   | 85 |   |
| Amortization                  of acquired leases                 |   |                                       | 75     |   |   | 139 |   |
| Net                  investment income                           |   |                                       | 87     |   |   | 48 |   |
| Minority                  interest in earnings of subsidiaries   |   |                                       | (138   | ) |   | (77 | ) |
| Distribution                  to certain minority interests |   |                                       | (150   | ) |   | - |   |
| General                  and administrative expenses             |   |                                       | (389   | ) |   | (244 | ) |
| Depreciation                                                     |   |                                       | (1,306 | ) |   | (1,130 | ) |
| Financing                  costs                                 |   |                                       | (3,043 | ) |   | (2,735 | ) |
| Net                  income                                      |   | $                                          | 846    |   | $ | 1,288 |   |
|                                                             |   |                                       |   |   |   |   |   |

----

*Index*

**Item      2: Management’s Discussion and Analysis of Financial Condition and      Results of Operations**

| Cautionary                  Statement Identifying Important Factors That Could Cause FREIT’s Actual                  Results to Differ From                  Those Projected 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 and the availability of financing;                  adverse changes in FREIT’s real estate markets, including, among other                  things, competition with other real estate owners, risks of real                  estate                  development and acquisitions; governmental actions and initiatives;                  and                  environmental/safety                  requirements. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

|   | · | tenant                turn-over rates; |
|--------|--------|----------------------------------------|

|   | · | rental                rates; |
|--------|--------|------------------------------|

|   | · | operating                expenses; |
|--------|--------|------------------------------------|

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

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

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

|   | · | governmental                regulations. |
|--------|--------|------------------------------------------|

----

*Index*

*All      references to per share amounts are on a diluted basis unless otherwise      indicated.*

----

*Index*

**Results      of Operations:**

|                                                                         |   | Three                  Months Ended               |   |     |   |
|------------------------------------------------------------------------------|--------|---------------------------------------------------|--------|----------|--------|
|                                                                         |   | January                  31,                      |   | Increase |   |
|                                                                         |   | 2007                                              |   | 2006     |   | (decrease) |   |
|                                                                         |   | (in                  thousands, except per share) |   |
| Commercial                  revenues:                                        |   |                                              |   |     |   |   |   |   |   |   |
| Same                  properties (1)                                         |   | $                                                 | 5,593  |     | $      | 5,600 |   | $ | (7 | ) |
| New                  properties                                              |   |                                              | -      |     |   | - |   |   | - |   |
|                                                                         |   |                                              | 5,593  |     |   | 5,600 |   |   | (7 | ) |
| Residential                  revenues:                                       |   |                                              |   |     |   |   |   |   |   |   |
| Same                  properties (1)                                         |   |                                              | 4,124  |     |   | 3,934 |   |   | 190 |   |
| New                  properties                                              |   |                                              | 497    |     |   | - |   |   | 497 |   |
|                                                                         |   |                                              | 4,621  |     |   | 3,934 |   |   | 687 |   |
| Total                  Real Estate Revenues                                  |   |                                              | 10,214 |     |   | 9,534 |   |   | 680 |   |
|                                                                         |   |                                              |   |     |   |   |   |   |   |   |
| Operating                  expenses:                                         |   |                                              |   |     |   |   |   |   |   |   |
| Real                  estate operations                                      |   |                                              | 4,429  |     |   | 4,108 |   |   | 321 |   |
| General                  and administrative                                  |   |                                              | 389    |     |   | 244 |   |   | 145 |   |
| Depreciation                                                                 |   |                                              | 1,306  |     |   | 1,130 |   |   | 176 |   |
| Total                  operating expenses                                    |   |                                              | 6,124  |     |   | 5,482 |   |   | 642 |   |
|                                                                         |   |                                              |   |     |   |   |   |   |   |   |
| Operating                  Income                                            |   |                                              | 4,090  |     |   | 4,052 |   |   | 38 |   |
|                                                                         |   |                                              |   |     |   |   |   |   |   |   |
| Investment                  income                                           |   |                                              | 87     |     |   | 48 |   |   | 39 |   |
|                                                                         |   |                                              |   |     |   |   |   |   |   |   |
| Financing                  costs                                             |   |                                              | (3,043 | )        |   | (2,735 | ) |   | (308 | ) |
| Minority                  interest in earnings of subsidiaries               |   |                                              | (138   | )        |   | (77 | ) |   | (61 | ) |
| Distribution                  to certain minority interests                  |   |                                              | (150   | )        |   | - |   |   | (150 | ) |
| Net                  Income                                                  |   | $                                                 | 846    |     | $      | 1,288 |   | $ | (442 | ) |
|                                                                         |   |                                              |   |     |   |   |   |   |   |   |
| Earnings                  per share:                                         |   |                                              |   |     |   |   |   |   |   |   |
| Basic                                                                        |   | $                                                 | 0.13   |     | $      | 0.20 |   |   | ($0.07 | ) |
| Diluted                                                                      |   | $                                                 | 0.12   |     | $      | 0.19 |   |   | ($0.07 | ) |
| Weighted                  average shares outstanding:                        |   |                                              |   |     |   |   |   |   |   |   |
| Basic                                                                        |   |                                              | 6,751  |     |   | 6,511 |   |   |   |   |
| Diluted                                                                      |   |                                              | 6,919  |     |   | 6,685 |   |   |   |   |
|                                                                         |   |                                              |   |     |   |   |   |   |   |   |
| (1)                  Properties operated since the beginning of fiscal 2006. |   |                                              |   |     |   |   |   |   |   |   |

| Distribution                  to certain minority interests. (1)                                                      |   | $      | 150,000      |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|
|                                                                                                                  |   |   |         |   |
| Auditing                  fees incurred in connection with our change of auditors.                                    |   |   | 170,000      |   |
|                                                                                                                  |   |   |         |   |
| Reduced                  earnings at our Damascus property as a result of the planned                  redevelopment. |   |   | 90,000       |   |
|                                                                                                                  |   |   |         |   |
| Higher                  interest charges on our floating rate acquisition loan for The                  Rotunda.      |   |   | 75,000       |   |
|                                                                                                                  |   |   |    |   |
| Total                  Charges                                                                                        |   | $      | 485,000      |   |

|  |  (1) |  See                Note 2 in FREIT’s Annual Report on Form 10-K for the year ended October                31, 2006 for a discussion as to distributions to minority                interests.  |
|--|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

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

| Reconciliation                  to consolidated net income: |   |   |   |   |   |   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Deferred                  rents - straight lining           |   |   | 55     |   |   | 85     |   |
| Amortization                  of acquired leases            |   |   | 75     |   |   | 139    |   |
| Net                  investment income                      |   |   | 87     |   |   | 48     |   |
| General                  and administrative expenses        |   |   | (389   | )      |   | (244   | )      |
| Depreciation                                                |   |   | (1,306 | )      |   | (1,130 | )      |
| Financing                  costs                            |   |   | (3,043 | )      |   | (2,735 | )      |
| Distributions                  to minority interest         |   |   | (150   | )      |   | -      |   |
| Minority                  interest                          |   |   | (138   | )      |   | (77    | )      |
| **Net                  income**                             |   | $      | 846    |   | $      | 1,288  |   |

----

*Index*

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

----

*Index*

|                                                            |   | Three                Months Ended |   |
|-----------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                            |   | January                31,        |   |
|                                                            |   | 2007                              |   | 2006 |   |
|                                                            |   | ($                in thousands)   |   |
| **1st                Mortgages**                                |   |                              |   |   |   |   |   |
| Existing                                                        |   | $                                 | 2,545  |   | $ | 2,501 |   |
| New                (1) - Boulders                               |   |                              | 92     |   |   | - |   |
| Construction                Loan (1) - Boulders                 |   |                              | 161    |   |   | 21 |   |
| **2nd                Mortgages**                                |   |                              |   |   |   |   |   |
| Existing                                                        |   |                              | 133    |   |   | 136 |   |
| Other                                                           |   |                              | 47     |   |   | 33 |   |
|                                                            |   |                              | 2,978  |   |   | 2,691 |   |
| Amortization                of Mortgage Costs                   |   |                              | 65     |   |   | 65 |   |
| Total                Financing Costs                            |   |                              | 3,043  |   |   | 2,756 |   |
| Less                amount capitalized                          |   |                              | -      |   |   | (21 | ) |
| Financing                costs expensed                         |   | $                                 | 3,043  |   | $ | 2,735 |   |
|                                                            |   |                              |   |   |   |   |   |
|  (1)                Mortgages not in place at beginning of |   |                              |   |
| fiscal                2006.                                     |   |                              |   |   |   |   |   |

----

*Index*

| Fiscal                Year |   | $                Millions |
|----------------------------|--------|---------------------------|
| 2007                       |   | $                         | 15.7 |   |
| 2008                       |   | $                         | 28.4 |   |
| 2010                       |   | $                         | 12.3 |   |
| 2013                       |   | $                         | 8.0 |   |
| 2014                       |   | $                         | 26.1 |   |
| 2016                       |   | $                         | 24.7 |   |
| 2019                       |   | $                         | 28.3 |   |
| 2022                       |   | $                         | 14.4 |   |

|                           |   | January                31,   |   | October                31,   |   |
|--------------------------------|--------|------------------------------|--------|------------------------------|--------|
| *(In                Millions)* |   | 2007                         |   | 2006                         |   |
| Fair                Value      |   | $                 186.8 |   | $                 184.4 |   |
| Carrying                Value  |   | $                 184.9 |   | $                 180.7 |   |

----

*Index*

----

*Index*

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

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

----

*Index*

**Item      3: Quantitative and Qualitative Disclosures About Market      Risk**

**Item      4: Controls and Procedures**

----

*Index*

**Part      II: Other Information**

**Item      6: Exhibits**

|   |                                                                                                                         | Page   |
|--------|------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                                                                                                         |   |
|   | Exhibit                  31.1 - Section 302 Certification of Chief                  Executive Officer                        | 20     |
|   |                                                                                                                         |   |
|   | Exhibit                  31.2 - Section 302 Certification of Chief                  Financial Officer                        | 21     |
|   |                                                                                                                         |   |
|   | Exhibit                  32.1 - Certification of Chief Executive Officer                  pursuant to 18 U.S.C. Section 1350 | 22     |
|   |                                                                                                                         |   |
|   | Exhibit                  32.2 - Certification of Chief Financial Officer                  pursuant to 18 U.S.C. Section 1350 | 23     |
|   |                                                                                                                         |   |

----

*Index*

**SIGNATURES**

|                                  | **FIRST                  REAL ESTATE INVESTMENT**                 |
|---------------------------------------|-------------------------------------------------------------------|
|                                  | **TRUST                  OF NEW JERSEY**                          |   |
|                                  | (Registrant)                                                      |   |
|                                  |                                                              |   |
| Date:                  March 12, 2007 |                                                              |   |
|                                  | /s/                  Robert S. Hekemian                           |   |
|                                  | (Signature)                                                       |   |
|                                  | Robert                  S. Hekemian                               |   |
|                                  | Chairman                  of the Board and Chief Executive        |
|                                  | Officer                                                           |   |
|                                  |                                                              |   |
|                                  |                                                              |   |
|                                  | /s/                  Donald W. Barney                             |   |
|                                  | (Signature)                                                       |   |
|                                  | Donald                  W. Barney                                 |   |
|                                  | President,                  Treasurer and Chief Financial Officer |
|                                  | (Principal                  Financial/Accounting Officer)         |
|                                  |                                                              |   |