|  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) |

----

----

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

----

E

| Part I:  | Financial Information |                                                                                        |                                                                                                    |
|----------|-----------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|     |                  |                                                                                        |                                                                                                    | Page |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Item 1:               | Unaudited Condensed Consolidated Financial Statements                                       |                                                                                                    |
|     |                  |                                                                                        |                                                                                                    |   |
|     |                  | a.)                                                                                         | Condensed Consolidated Balance Sheets as at July 31, 2010 and October 31, 2009;                         | 3 |
|     |                  |                                                                                        |                                                                                                    |   |
|     |                  | b.)                                                                                         | Condensed Consolidated Statements of Income for the Nine and Three Months Ended July 31, 2010 and 2009; | 4 |
|     |                  |                                                                                        |                                                                                                    |   |
|     |                  | c.)                                                                                         | Condensed Consolidated Statement of Equity for the Period Ended July 31, 2010;                          | 5 |
|     |                  |                                                                                        |                                                                                                    |   |
|     |                  | d.)                                                                                         | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended July 31, 2010 and 2009;       | 6 |
|     |                  |                                                                                        |                                                                                                    |   |
|     |                  | e.)                                                                                         | Notes to Condensed Consolidated Financial Statements.                                                   | 7 |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Item 2:               | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11                                                                                                      |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Item 3:               | Quantitative and Qualitative Disclosures About Market Risk                                  | 21                                                                                                      |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Item 4:               | Controls and Procedures                                                                     | 21                                                                                                      |
|     |                  |                                                                                        |                                                                                                    |   |
|     |                  |                                                                                        |                                                                                                    |   |
| Part II: | Other Information     |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Item 1:               | Legal Proceedings                                                                           | 21                                                                                                      |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Item 1A:              | Risk Factors                                                                                | 21                                                                                                      |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Item 6:               | Exhibits                                                                                    | 21                                                                                                      |
|     |                  |                                                                                        |                                                                                                    |   |
|     | Signatures            |                                                                                        | 22                                                                                                      |

----

Index

r

t

| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES                                          |   |
|------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                                                                      |   |
|                                                                                                       |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |
|                                                                                                       |   | (Unaudited) |   |   |   |   |
|                                                                                                       |   | July 31, |   |   | October 31, |   |
|                                                                                                       |   | 2010 |   |   | 2009 |   |
|                                                                                                       |   | (In Thousands of Dollars) |   |
| ASSETS                                                                                                     |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |
| Real estate, at cost, net of accumulated depreciation                                                      |   | $ | 211,516 |   |   | $ | 214,283 |   |
| Construction in progress & pre-development costs                                                       |   |   | 9,752 |   |   |   | 9,694 |   |
| Cash and cash equivalents                                                                                  |   |   | 4,684 |   |   |   | 6,751 |   |
| Investments in US Treasury Bills at amortized cost,                                                        |   |   |   |   |   |   |   |   |
|     which approximates fair value                                                      |   |   | - |   |   |   | 4,549 |   |
| Tenants' security accounts                                                                                 |   |   | 2,038 |   |   |   | 2,147 |   |
| Sundry receivables                                                                                         |   |   | 5,250 |   |   |   | 4,440 |   |
| Secured loans receivable                                                                                   |   |   | 3,326 |   |   |   | 3,326 |   |
| Prepaid expenses and other assets                                                                          |   |   | 3,752 |   |   |   | 3,198 |   |
| Acquired over market leases and in-place lease costs                                                       |   |   | 558 |   |   |   | 670 |   |
| Deferred charges, net                                                                                      |   |   | 2,755 |   |   |   | 2,793 |   |
| Total Assets                                                                                               |   | $ | 243,631 |   |   | $ | 251,851 |   |
|                                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |   |   |
| LIABILITIES & EQUITY                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                               |   |   |   |   |   |   |   |   |
| Mortgages payable                                                                                          |   | $ | 197,199 |   |   | $ | 202,260 |   |
| Accounts payable and accrued expenses                                                                      |   |   | 7,795 |   |   |   | 7,496 |   |
| Dividends payable                                                                                          |   |   | 2,083 |   |   |   | 2,083 |   |
| Tenants' security deposits                                                                                 |   |   | 2,697 |   |   |   | 2,847 |   |
| Acquired below market value leases and deferred revenue                                                    |   |   | 2,591 |   |   |   | 3,049 |   |
| Total liabilities                                                                                          |   |   | 212,365 |   |   |   | 217,735 |   |
|                                                                                                       |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |   |   |
| Equity:                                                                                                    |   |   |   |   |   |   |   |   |
|         Common equity:                                                  |   |   |   |   |   |   |   |   |
|     Shares of beneficial interest without par value:                                   |   |   |   |   |   |   |   |   |
|          8,000,000 shares authorized; 6,993,152 shares issued |   |   | 24,969 |   |   |   | 24,969 |   |
|     Treasury stock, at cost: 51,009 shares                                             |   |   | (1,135 | ) |   |   | (1,135 | ) |
|     Dividends in excess of net income                                                  |   |   | (5,683 | ) |   |   | (3,112 | ) |
| Total common equity                                                                                        |   |   | 18,151 |   |   |   | 20,722 |   |
| Noncontrolling interests in subsidiaries                                                                   |   |   | 13,115 |   |   |   | 13,394 |   |
| Total equity                                                                                               |   |   | 31,266 |   |   |   | 34,116 |   |
| Total Liabilities & Equity                                                                             |   | $ | 243,631 |   |   | $ | 251,851 |   |
|                                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                       |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.                                                  |   |   |   |   |   |   |   |   |

----

Index

| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES   |
|---------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME                         |
| NINE AND THREE MONTHS ENDED JULY 31, 2010 AND 2009                  |
| (Unaudited)                                                         |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   | Nine Months Ended |   |   | Three Months Ended |   |
|                                                                |   | July 31, |   |   | July 31, |   |
|                                                                |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                                                |   | (In Thousands of Dollars, Except Per Share Amounts) |   |
| Revenue:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Rental income                                                       |   | $ | 28,306 |   |   | $ | 27,441 |   |   | $ | 9,184 |   |   | $ | 9,050 |   |
| Reimbursements                                                      |   |   | 4,458 |   |   |   | 3,969 |   |   |   | 1,568 |   |   |   | 1,327 |   |
| Sundry income                                                       |   |   | 292 |   |   |   | 393 |   |   |   | 95 |   |   |   | 107 |   |
| Totals                                                              |   |   | 33,056 |   |   |   | 31,803 |   |   |   | 10,847 |   |   |   | 10,484 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                  |   |   | 9,042 |   |   |   | 8,380 |   |   |   | 2,783 |   |   |   | 2,631 |   |
| Management fees                                                     |   |   | 1,448 |   |   |   | 1,403 |   |   |   | 475 |   |   |   | 469 |   |
| Real estate taxes                                                   |   |   | 4,981 |   |   |   | 4,739 |   |   |   | 1,666 |   |   |   | 1,555 |   |
| Depreciation                                                        |   |   | 4,556 |   |   |   | 4,407 |   |   |   | 1,492 |   |   |   | 1,470 |   |
| Totals                                                              |   |   | 20,027 |   |   |   | 18,929 |   |   |   | 6,416 |   |   |   | 6,125 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                    |   |   | 13,029 |   |   |   | 12,874 |   |   |   | 4,431 |   |   |   | 4,359 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                   |   |   | 95 |   |   |   | 170 |   |   |   | 29 |   |   |   | 40 |   |
| Interest expense including amortization                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   of deferred financing costs                             |   |   | (8,703 | ) |   |   | (8,051 | ) |   |   | (2,922 | ) |   |   | (2,670 | ) |
|     Net income                                  |   |   | 4,421 |   |   |   | 4,993 |   |   |   | 1,538 |   |   |   | 1,729 |   |
| Net income attributable to noncontrolling interests in subsidiaries |   |   | (743 | ) |   |   | (813 | ) |   |   | (162 | ) |   |   | (155 | ) |
|     Net income attributable to common equity    |   | $ | 3,678 |   |   | $ | 4,180 |   |   | $ | 1,376 |   |   | $ | 1,574 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share (attributable to common equity):                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                       |   | $ | 0.53 |   |   | $ | 0.60 |   |   | $ | 0.20 |   |   | $ | 0.23 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                                 |   |   | 6,942 |   |   |   | 6,944 |   |   |   | 6,942 |   |   |   | 6,942 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.           |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |
|-------------------------------------------------------------------|--------|-------------------------------|--------|--------|-------------------------|--------|--------|-----------------------------------|--------|--------|--------------------------|--------|--------|--------------------------|--------|--------|--------------|--------|
| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES |   |
| CONDENSED CONSOLIDATED STATEMENT OF EQUITY                        |   |
| (Unaudited)                                                       |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |
|                                                              |   | Common Equity                 |   |   |                    |   |   |                              |   |
|                                                              |   | Shares of Beneficial Interest |   |   | Treasury Shares at Cost |   |   | Dividends in Excess of Net Income |   |   | Total Common Equity |   |   | Noncontrolling Interests |   |   | Total Equity |   |
|                                                              |   | (In Thousands of Dollars)     |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |
| Balance at October 31, 2009                                       |   | $                             | 24,969 |   |                    | $      | (1,135 | )                                 |   | $      | (3,112                   | )      |   | $                        | 20,722 |   |         | $      | 13,394 |   |   | $ | 34,116 |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |   |   |   |   |   |   |
|   Distributions to noncontrolling interests                  |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   | (1,022 | ) |   |   | (1,022 | ) |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |   |   |   |   |   |   |
| Net income                                                        |   |                          |   |   |                    |   |   |                              |   |   | 3,678                    |   |   |                     | 3,678  |   |         |   | 743 |   |   |   | 4,421 |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |   |   |   |   |   |   |
|   Dividends declared ($0.90 per share)                       |   |                          |   |   |                    |   |   |                              |   |   | (6,249                   | )      |   |                     | (6,249 | )      |         |   | - |   |   |   | (6,249 | ) |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |   |   |   |   |   |   |
| Balance at July 31, 2010                                          |   | $                             | 24,969 |   |                    | $      | (1,135 | )                                 |   | $      | (5,683                   | )      |   | $                        | 18,151 |   |         | $      | 13,115 |   |   | $ | 31,266 |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |   |   |   |   |   |   |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.         |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |
|                                                              |   |                          |   |   |                    |   |   |                              |   |   |                     |   |   |                     |   |   |         |   |   |   |   |   |   |   |

----

Index

| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES                                            |   |
|--------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                              |   |
| NINE MONTHS ENDED JULY 31, 2010 AND 2009                                                                     |   |
| (Unaudited)                                                                                                  |   |
|                                                                                                         |   |   |   |   |   |   |
|                                                                                                         |   | Nine Months Ended |   |
|                                                                                                         |   | July 31, |   |
|                                                                                                         |   | 2010 |   |   | 2009 |   |
|                                                                                                         |   | (In Thousands of Dollars) |   |
| Operating activities:                                                                                        |   |   |   |   |   |   |
| Net income                                                                                                   |   | $ | 4,421 |   |   | $ | 4,993 |   |
| Adjustments to reconcile net income to net cash provided by                                                  |   |   |   |   |   |   |   |   |
| operating activities:                                                                                        |   |   |   |   |   |   |   |   |
|   Depreciation                                                                                     |   |   | 4,556 |   |   |   | 4,407 |   |
|   Amortization                                                                                     |   |   | 376 |   |   |   | 349 |   |
|   Net amortization of acquired leases                                                              |   |   | 22 |   |   |   | 27 |   |
|   Deferred revenue                                                                                 |   |   | (406 | ) |   |   | (435 | ) |
|   Changes in operating assets and liabilities:                                                     |   |   |   |   |   |   |   |   |
| Tenants' security accounts                                                                                   |   |   | 109 |   |   |   | 80 |   |
| Sundry receivables, prepaid expenses and other assets                                                        |   |   | (1,491 | ) |   |   | (992 | ) |
| Accounts payable, accrued expenses and other liabilities                                                     |   |   | 1,557 |   |   |   | 456 |   |
| Tenants' security deposits                                                                                   |   |   | (150 | ) |   |   | (91 | ) |
| Net cash provided by operating activities                                                                    |   |   | 8,994 |   |   |   | 8,794 |   |
| Investing activities:                                                                                        |   |   |   |   |   |   |   |   |
| Capital improvements - existing properties                                                                   |   |   | (1,140 | ) |   |   | (1,665 | ) |
| Construction and pre-development costs                                                                       |   |   | (1,820 | ) |   |   | (5,780 | ) |
| Decrease in investment in US Treasury Bills                                                                  |   |   | 4,549 |   |   |   | - |   |
| Net cash provided by (used in) investing activities                                                          |   |   | 1,589 |   |   |   | (7,445 | ) |
| Financing activities:                                                                                        |   |   |   |   |   |   |   |   |
| Repayment of mortgages                                                                                       |   |   | (5,182 | ) |   |   | (1,869 | ) |
| Proceeds from mortgages and construction loans                                                               |   |   | - |   |   |   | 4,630 |   |
| Deferred financing costs                                                                                     |   |   | (197 | ) |   |   | (36 | ) |
| Repurchase of Company stock-Treasury shares                                                                  |   |   | - |   |   |   | (60 | ) |
| Dividends paid                                                                                               |   |   | (6,249 | ) |   |   | (6,249 | ) |
| Distributions to noncontrolling interests                                                                    |   |   | (1,022 | ) |   |   | (820 | ) |
| Net cash used in financing activities                                                                        |   |   | (12,650 | ) |   |   | (4,404 | ) |
| Net decrease in cash and cash equivalents                                                                    |   |   | (2,067 | ) |   |   | (3,055 | ) |
| Cash and cash equivalents, beginning of period                                                               |   |   | 6,751 |   |   |   | 8,192 |   |
| Cash and cash equivalents, end of period                                                                     |   | $ | 4,684 |   |   | $ | 5,137 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow data:                                                                   |   |   |   |   |   |   |   |   |
| Interest paid, including capitalized construction period interest                                            |   |   |   |   |   |   |   |   |
|      of $121 in fiscal 2009.                                                        |   | $ | 8,136 |   |   | $ | 7,772 |   |
| Income taxes paid                                                                                            |   | $ | - |   |   | $ | 5 |   |
| Supplemental schedule of non cash activities:                                                                |   |   |   |   |   |   |   |   |
| Investing activities:                                                                                        |   |   |   |   |   |   |   |   |
|     Accrued capital expenditures, construction costs, pre-development costs and interest |   | $ | 35 |   |   | $ | 4,589 |   |
| Financing activities:                                                                                        |   |   |   |   |   |   |   |   |
|     Dividends declared but not paid                                                      |   | $ | 2,083 |   |   | $ | 2,083 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.                                                    |   |   |   |   |   |   |   |   |

----

Index

N

|   | · | The objective of ASC 805 is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a business combination and its effects. To accomplish that, this Statement establishes principles and requirements for how the acquirer: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a.) | Recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.) | Recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | c.) | Determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The objective of ASC 810 is to improve the relevance, comparability and transparency of financial information provided to investors by: (i) requiring entities to report non-controlling interests (minority interests) as equity in the consolidated financial statements and separate from the parent’s equity; (ii) requiring that the amount of net income attributable to the parent and non-controlling interest be clearly identified and presented on the face of the consolidated statement of income; and (iii) expanding the disclosure requirements with respect to the parent and its non-controlling interests. FREIT adopted ASC 810 effective November 1, 2009, and as required, has retrospectively applied the presentation and disclosure requirements to prior periods presented in this Form 10Q. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   | a.) | Prior to the adoption of ASC 810, FREIT could not record a negative minority interest in its consolidated financial statements if the minority members had no obligation to restore their negative capital accounts. As a result, FREIT was accounting for the minority members’ capital deficit of its Westwood Hills subsidiary as a charge to income and a reduction to undistributed earnings. As of November 1, 2009, the amount of the minority members’ capital deficit that was booked as a reduction to FREIT’s undistributed earnings was approximately $2.3 million. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.) | In accordance with the provisions of ASC 810, FREIT is required to disclose the pro forma impact on its consolidated net income and earnings per share, had the requirements of ASC 810 not been applied for the current quarter. As such, FREIT’s pro forma consolidated net income attributable to common equity for the nine and three-month periods ended July 31, 2010 would have been $3,903,000 ($0.56 per share basic) and $1,478,000 ($0.21 per share basic), respectively. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                 |               | Shares Repurchased |       |
|----------------------|--------------------|--------------------|------------|
| Date Plan Authorized | Amounts Authorized | #                  | Cost       | Date Plan Expired |
|                 |               |               |       |   |
| April 9, 2008        | $2,000,000         | 50,920             | $1,133,545 | March 31, 2009 |
|                 |               |               |       |   |
| April 14, 2009       | $1,000,000         | 89                 | $1,481     | June 30, 2009 |
|                 | Total              | 51,009             | $1,135,026 |   |

----

Index

| Note 5 - Segment information: |
|-------------------------------|

| FREIT has determined that it has two reportable segments: commercial properties and residential properties. These reportable segments offer different types of space, have different types of tenants, and are managed separately because each requires different operating strategies and management expertise. The commercial segment contains ten (10) separate properties and the residential segment contains nine (9) properties. The accounting policies of the segments are the same as those described in Note 1 in FREIT’s Annual Report on Form 10-K for the fiscal year ended October 31, 2009. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                |   | Nine Months Ended |   |   | Three Months Ended |   |
|-----------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|
|                                                |   | July 31,          |   |   | July 31,           |   |
|                                                |   | 2010              |   |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                                                |   | ($ in thousands)  |   |   | ($ in thousands)   |   |
| Real estate rental revenue:                         |   |              |   |   |               |   |   |   |   |   |   |   |
| Commercial                                          |   | $                 | 18,617 |   |               | $      | 17,230 |   |   | $ | 6,012 |   |   | $ | 5,739 |   |
| Residential                                         |   |              | 14,299 |   |               |   | 14,437 |   |   |   | 4,789 |   |   |   | 4,695 |   |
| Totals                                              |   |              | 32,916 |   |               |   | 31,667 |   |   |   | 10,801 |   |   |   | 10,434 |   |
| Real estate operating expenses:                     |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                          |   |              | 7,337  |   |               |   | 6,815 |   |   |   | 2,333 |   |   |   | 2,094 |   |
| Residential                                         |   |              | 6,901  |   |               |   | 6,378 |   |   |   | 2,199 |   |   |   | 2,112 |   |
| Totals                                              |   |              | 14,238 |   |               |   | 13,193 |   |   |   | 4,532 |   |   |   | 4,206 |   |
| Net operating income:                               |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                          |   |              | 11,280 |   |               |   | 10,415 |   |   |   | 3,679 |   |   |   | 3,645 |   |
| Residential                                         |   |              | 7,398  |   |               |   | 8,059 |   |   |   | 2,590 |   |   |   | 2,583 |   |
| Totals                                              |   | $                 | 18,678 |   |               | $      | 18,474 |   |   | $ | 6,269 |   |   | $ | 6,228 |   |
|                                                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Recurring capital improvements-residential          |   | $                 | 254    |   |               | $      | 143 |   |   | $ | 134 |   |   | $ | 36 |   |
|                                                |   |              |   |   |               |   |   |   |   |   | . |   |   |   |   |   |
| Reconciliation to consolidated net income:          |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Segment NOI                                         |   | $                 | 18,678 |   |               | $      | 18,474 |   |   | $ | 6,269 |   |   | $ | 6,228 |   |
| Deferred rents - straight lining                    |   |              | 162    |   |               |   | 163 |   |   |   | 53 |   |   |   | 59 |   |
| Amortization of acquired leases                     |   |              | (22    | )      |               |   | (27 | ) |   |   | (7 | ) |   |   | (9 | ) |
| Investment income                                   |   |              | 95     |   |               |   | 170 |   |   |   | 29 |   |   |   | 40 |   |
| General and administrative expenses                 |   |              | (1,233 | )      |               |   | (1,329 | ) |   |   | (392 | ) |   |   | (449 | ) |
| Depreciation                                        |   |              | (4,556 | )      |               |   | (4,407 | ) |   |   | (1,492 | ) |   |   | (1,470 | ) |
| Financing costs                                     |   |              | (8,703 | )      |               |   | (8,051 | ) |   |   | (2,922 | ) |   |   | (2,670 | ) |
|     Net income                  |   |              | 4,421  |   |               |   | 4,993 |   |   |   | 1,538 |   |   |   | 1,729 |   |
| Net income attributable to noncontrolling interests |   |              | (743   | )      |               |   | (813 | ) |   |   | (162 | ) |   |   | (155 | ) |
| Net income attributable to common equity            |   | $                 | 3,678  |   |               | $      | 4,180 |   |   | $ | 1,376 |   |   | $ | 1,574 |   |

----

Index

|            |   | July 31, |   |   | October 31, |   |
|-----------------|--------|----------|--------|--------|-------------|--------|
| ($ in Millions) |   | 2010     |   |   | 2009        |   |
| Fair Value      |   | $        | 194.2  |   |        | $      | 198.1 |   |
|            |   |     |   |   |        |   |   |   |
| Carrying Value  |   | $        | 197.2  |   |        | $      | 202.3 |   |

----

Index

| 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, 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

|   | · | The objective of ASC 805 is to improve the relevance, representational faithfulness, and comparability of the information that a reporting entity provides in its financial reports about a business combination and its effects. To accomplish that, this Statement establishes principles and requirements for how the acquirer: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a.) | Recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.) | Recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | c.) | Determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The objective of ASC 810 is to improve the relevance, comparability and transparency of financial information provided to investors by: (i) requiring entities to report non-controlling interests (minority interests) as equity in the consolidated financial statements and separate from the parent’s equity; (ii) requiring that the amount of net income attributable to the parent and non-controlling interest be clearly identified and presented on the face of the consolidated statement of income; and (iii) expanding the disclosure requirements with respect to the parent and its non-controlling interests. The Company adopted ASC 810 effective November 1, 2009, and as required, has retrospectively applied the presentation and disclosure requirements to prior periods presented in this 10-Q. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| NET INCOME COMPONENTS                                                            |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                             |   | Nine Months Ended      |   |   | Three Months Ended     |   |
|                                                                             |   | July 31,               |   |   | July 31,               |   |
|                                                                             |   | 2010                   |   |   | 2009                   |   |   | Change |   |   | 2010   |   |   | 2009   |   |   | Change |   |
|                                                                             |   | (thousands of dollars) |   |   | (thousands of dollars) |   |
| Income from real estate operations:                                              |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commercial properties                                    |   | $                      | 11,420 |   |                   | $      | 10,551 |   |   | $      | 869    |   |   | $      | 3,725  |   |   | $      | 3,695 |   |   | $ | 30 |   |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential properties                                   |   |                   | 7,398  |   |                   |   | 8,059  |   |   |   | (661   | )      |   |   | 2,590  |   |   |   | 2,583 |   |   |   | 7 |   |
|       Total income from real estate operations     |   |                   | 18,818 |   |                   |   | 18,610 |   |   |   | 208    |   |   |   | 6,315  |   |   |   | 6,278 |   |   |   | 37 |   |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing costs:                                                                 |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate mortgages                                                             |   |                   | (8,104 | )      |                   |   | (7,734 | )      |   |   | (370   | )      |   |   | (2,713 | )      |   |   | (2,579 | ) |   |   | (134 | ) |
| Floating rate - Rotunda                                                          |   |                   | (599   | )      |                   |   | (317   | )      |   |   | (282   | )      |   |   | (209   | )      |   |   | (91 | ) |   |   | (118 | ) |
|   Total financing costs                                                |   |                   | (8,703 | )      |                   |   | (8,051 | )      |   |   | (652   | )      |   |   | (2,922 | )      |   |   | (2,670 | ) |   |   | (252 | ) |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                                |   |                   | 95     |   |                   |   | 170    |   |   |   | (75    | )      |   |   | 29     |   |   |   | 40 |   |   |   | (11 | ) |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General & administrative expenses:                                           |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Accounting fees                                          |   |                   | (449   | )      |                   |   | (404   | )      |   |   | (45    | )      |   |   | (109   | )      |   |   | (147 | ) |   |   | 38 |   |
|     Legal & professional fees                            |   |                   | (78    | )      |                   |   | (98    | )      |   |   | 20     |   |   |   | (34    | )      |   |   | (16 | ) |   |   | (18 | ) |
|     Trustee fees                                             |   |                   | (402   | )      |                   |   | (390   | )      |   |   | (12    | )      |   |   | (145   | )      |   |   | (126 | ) |   |   | (19 | ) |
|     Corporate expenses                                       |   |                   | (304   | )      |                   |   | (437   | )      |   |   | 133    |   |   |   | (104   | )      |   |   | (160 | ) |   |   | 56 |   |
|   Total general & administrative expenses                               |   |                   | (1,233 | )      |                   |   | (1,329 | )      |   |   | 96     |   |   |   | (392   | )      |   |   | (449 | ) |   |   | 57 |   |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation:                                                                    |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Same properties (1)                                                              |   |                   | (4,388 | )      |                   |   | (4,407 | )      |   |   | 19     |   |   |   | (1,436 | )      |   |   | (1,470 | ) |   |   | 34 |   |
| Damascus center - Safeway portion of Phase II becoming operational in Sept 2009. |   |                   | (168   | )      |                   |   | -      |   |   |   | (168   | )      |   |   | (56    | )      |   |   | - |   |   |   | (56 | ) |
|   Total depreciation                                                   |   |                   | (4,556 | )      |                   |   | (4,407 | )      |   |   | (149   | )      |   |   | (1,492 | )      |   |   | (1,470 | ) |   |   | (22 | ) |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net income                                               |   | $                      | 4,421  |   |                   | $      | 4,993  |   |   | $      | (572   | )      |   | $      | 1,538  |   |   | $      | 1,729 |   |   | $ | (191 | ) |
| Net income attributable to noncontrolling interests in subsidiaries              |   |                   | (743   | )      |                   |   | (813   | )      |   |   | 70     |   |   |   | (162   | )      |   |   | (155 | ) |   |   | (7 | ) |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income attributable to common equity                                         |   | $                      | 3,678  |   |                   | $      | 4,180  |   |   | $      | (502   | )      |   | $      | 1,376  |   |   | $      | 1,574 |   |   | $ | (198 | ) |
|                                                                             |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Properties operated since the beginning of Fiscal 2009.                      |   |                   |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                 |   |              |   |                |   |     |   |                |   |              |   |   |   |                                                |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |
|----------------------|--------|-------------------|--------|---------------------|--------|----------|--------|---------------------|--------|-------------------|--------|--------|--------|-----------------------------------------------------|--------|--------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                 |   | Commercial        |   | Residential         |   | Combined |
|                 |   | Nine Months Ended |   |                |   |     |   |                |   | Nine Months Ended |   |   |   |                                                |   |   |   | Nine Months Ended |
|                 |   | July 31,          |   | Increase (Decrease) |   | July 31, |   | Increase (Decrease) |   | July 31,          |
|                 |   | 2010              |   |                | 2009   |     |   | $                   |   |              | %      |   | 2010   |                                                |   | 2009   |   |              | $      |   |   | %      |   | 2010   |   |   | 2009   |   |
|                 |   | (in thousands)    |   |                |   |     |   | (in thousands)      |   |              |   |   |   | (in thousands)                                      |
| Rental income        |   | $                 | 14,041 |                |   | $        | 13,108 |                |   | $                 | 933    |   |   |                                                | 7.1    | %      |   | $                 | 14,125 |   |   | $      | 14,197 |   |   | $      | (72    | )      |   |   | -0.5 | % |   | $ | 28,166 |   |   | $ | 27,305 |   |
| Reimbursements       |   |              | 4,458  |                |   |     | 3,969  |                |   |              | 489    |   |   |                                                | 12.3   | %      |   |              | -      |   |   |   | -      |   |   |   | -      |   |   |   |   |   |   |   | 4,458 |   |   |   | 3,969 |   |
| Other                |   |              | 118    |                |   |     | 153    |                |   |              | (35    | )      |   |                                                | -22.9  | %      |   |              | 174    |   |   |   | 240    |   |   |   | (66    | )      |   |   | -27.5 | % |   |   | 292 |   |   |   | 393 |   |
| Total revenue        |   |              | 18,617 |                |   |     | 17,230 |                |   |              | 1,387  |   |   |                                                | 8.0    | %      |   |              | 14,299 |   |   |   | 14,437 |   |   |   | (138   | )      |   |   | -1.0 | % |   |   | 32,916 |   |   |   | 31,667 |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   |                                                |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses   |   |              | 7,337  |                |   |     | 6,815  |                |   |              | 522    |   |   |                                                | 7.7    | %      |   |              | 6,901  |   |   |   | 6,378  |   |   |   | 523    |   |   |   | 8.2 | % |   |   | 14,238 |   |   |   | 13,193 |   |
| Net operating income |   | $                 | 11,280 |                |   | $        | 10,415 |                |   | $                 | 865    |   |   |                                                | 8.3    | %      |   | $                 | 7,398  |   |   | $      | 8,059  |   |   | $      | (661   | )      |   |   | -8.2 | % |   |   | 18,678 |   |   |   | 18,474 |   |
| Average              |   |              |   |                |   |     |   |                |   |              |   |   |   |                                                |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy %          |   |              | 89.9   | %                   |   |     | 89.2   | %                   |   |              |   |   |   |                                                | 0.7    | %      |   |              | 94.0   | %      |   |   | 93.0   | %      |   |   |   |   |   |   | 1.0 | % |   |   |   |   |   |   |   |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   |                                                |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Reconciliation to consolidated net income:          |   |   |   |              |   |   |   |   |   |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Deferred rents - straight lining                    |   |   |   |              | 162    |   |   |   | 163    |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Amortization of acquired leases                     |   |   |   |              | (22    | )      |   |   | (27    | )      |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Investment income                                   |   |   |   | 95                |   |   |   | 170    |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | General and administrative expenses                 |   |   |   | (1,233            | )      |   |   | (1,329 | )      |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Depreciation                                        |   |   |   | (4,556            | )      |   |   | (4,407 | )      |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Financing costs                                     |   |   |   | (8,703            | )      |   |   | (8,051 | )      |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Net income                                          |   |   |   |              |   | 4,421  |   |   |   | 4,993  |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Net income attributable to noncontrolling interests |   |   | (743   | )                 |   |   | (813   | )      |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   | Net income attributable to common equity            |   |   | $      | 3,678             |   |   | $      | 4,180  |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   |                                                |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                 |   |              |   |                |   |     |   |                |   |              |   |   |   |                                                |   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                 |   | Commercial         |   | Residential         |   | Combined |
|----------------------|--------|--------------------|--------|---------------------|--------|----------|
|                 |   | Three Months Ended |   |                |   |     |   |   |   | Three Months Ended |   |   |   |   |   |   |   | Three Months Ended |
|                 |   | July 31,           |   | Increase (Decrease) |   | July 31, |   | Increase (Decrease) |   | July 31, |
|                 |   | 2010               |   |                | 2009   |     |   | $ |   |   | % |   |   | 2010 |   |   | 2009 |   |   | $ |   |   | % |   |   | 2010 |   |   | 2009 |   |
|                 |   | (in thousands)     |   |                |   |     | (in thousands) |   |   |   |   | (in thousands) |   |
| Rental income        |   | $                  | 4,408  |                |   | $        | 4,363 |   |   | $ | 45 |   |   |   | 1.0 | % |   | $ | 4,731 |   |   | $ | 4,637 |   |   | $ | 94 |   |   |   | 2.0 | % |   | $ | 9,139 |   |   | $ | 9,000 |   |
| Reimbursements       |   |               | 1,568  |                |   |     | 1,327 |   |   |   | 241 |   |   |   | 18.2 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 1,568 |   |   |   | 1,327 |   |
| Other                |   |               | 36     |                |   |     | 49 |   |   |   | (13 | ) |   |   | -26.5 | % |   |   | 58 |   |   |   | 58 |   |   |   | - |   |   |   | 0.0 | % |   |   | 94 |   |   |   | 107 |   |
| Total revenue        |   |               | 6,012  |                |   |     | 5,739 |   |   |   | 273 |   |   |   | 4.8 | % |   |   | 4,789 |   |   |   | 4,695 |   |   |   | 94 |   |   |   | 2.0 | % |   |   | 10,801 |   |   |   | 10,434 |   |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses   |   |               | 2,333  |                |   |     | 2,094 |   |   |   | 239 |   |   |   | 11.4 | % |   |   | 2,199 |   |   |   | 2,112 |   |   |   | 87 |   |   |   | 4.1 | % |   |   | 4,532 |   |   |   | 4,206 |   |
| Net operating income |   | $                  | 3,679  |                |   | $        | 3,645 |   |   | $ | 34 |   |   |   | 0.9 | % |   | $ | 2,590 |   |   | $ | 2,583 |   |   | $ | 7 |   |   |   | 0.3 | % |   |   | 6,269 |   |   |   | 6,228 |   |
| Average              |   |               |   |                |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy %          |   |               | 89.3   | %                   |   |     | 89.8 | % |   |   |   |   |   |   | -0.5 | % |   |   | 94.4 | % |   |   | 91.8 | % |   |   |   |   |   |   | 2.6 | % |   |   |   |   |   |   |   |   |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Reconciliation to consolidated net income: |   |   |   |   |   |   |   |   |   |   |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Deferred rents - straight lining |   |   |   | 53 |   |   |   | 59 |   |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Amortization of acquired leases |   |   |   |   |   | (7 | ) |   |   | (9 | ) |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Investment income |   |   |   |   |   | 29 |   |   |   | 40 |   |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | General and administrative expenses |   |   |   |   | (392 | ) |   |   | (449 | ) |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Depreciation |   |   |   |   |   | (1,492 | ) |   |   | (1,470 | ) |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Financing costs |   |   |   |   |   | (2,922 | ) |   |   | (2,670 | ) |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Net income |   |   |   |   |   |   |   | 1,538 |   |   |   | 1,729 |   |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Net income attributable to noncontrolling interests |   |   |   | (162 | ) |   |   | (155 | ) |
|                 |   |               |   |                |   |     |   |   |   |   |   |   |   | Net income attributable to common equity |   |   |   | $ | 1,376 |   |   | $ | 1,574 |   |

----

Index

----

Index

|                                                        |   |              |   |   |               |   |   |   |   |   |   |   |
|-------------------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                        |   | Nine Months Ended |   |   | Three Months Ended |   |
|                                                        |   | July 31,          |   |   | July 31,           |   |
|                                                        |   | 2010              |   |   | 2009               |   |   | 2010   |   |   | 2009   |   |
|                                                        |   | ($ in thousands)  |   |   | ($ in thousands)   |   |
|  Fixed rate mortgages:                                 |   |              |   |   |               |   |   |   |   |   |   |   |
|     1st Mortgages                       |   |              |   |   |               |   |   |   |   |   |   |   |
|     Existing                            |   | $                 | 6,365  |   |               | $      | 6,980  |   |   | $      | 2,115  |   |   | $ | 2,321 |   |
|     New (1)                             |   |              | 919    |   |               |   | -      |   |   |   | 312    |   |   |   | - |   |
|     2nd Mortgages                       |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|     Existing                            |   |              | 253    |   |               |   | 376    |   |   |   | 84     |   |   |   | 124 |   |
| Variable rate mortgages:                                    |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|     Acquisition loan-Rotunda            |   |              | 599    |   |               |   | 416    |   |   |   | 209    |   |   |   | 122 |   |
|     Construction loan-Damascus          |   |              | 121    |   |               |   | 106    |   |   |   | 42     |   |   |   | 33 |   |
|  Other                                                 |   |              | 279    |   |               |   | 226    |   |   |   | 99     |   |   |   | 81 |   |
|                                                        |   |              | 8,536  |   |               |   | 8,104  |   |   |   | 2,861  |   |   |   | 2,681 |   |
|  Amortization of Mortgage Costs                        |   |              | 167    |   |               |   | 174    |   |   |   | 61     |   |   |   | 56 |   |
|  Total Financing Costs                                 |   |              | 8,703  |   |               |   | 8,278  |   |   |   | 2,922  |   |   |   | 2,737 |   |
|       Less amount capitalized |   |              | -      |   |               |   | (227   | )      |   |   | -      |   |   |   | (67 | ) |
|  Financing costs expensed                              |   | $                 | 8,703  |   |               | $      | 8,051  |   |   | $      | 2,922  |   |   | $ | 2,670 |   |
|                                                        |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| (1) Mortgages not in place at beginning of Fiscal 2009.     |   |              |   |   |               |   |   |   |   |

----

Index

----

Index

| Fiscal Year                 | 2012   | 2013   | 2014   | 2016   | 2017   | 2018   | 2019   | 2022   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| ($ in millions)             |   |   |   |   |   |   |   |   |
| Mortgage "Balloon" Payments | $10.0  | $27.1  | $25.9  | $24.5  | $22.0  | $5.0   | $45.2  | $14.4  |

|            |   | July 31, |   |   | October 31, |   |
|-----------------|--------|----------|--------|--------|-------------|--------|
| ($ in Millions) |   | 2010     |   |   | 2009        |   |
| Fair Value      |   | $        | 194.2  |   |        | $      | 198.1 |   |
|            |   |     |   |   |        |   |   |   |
| Carrying Value  |   | $        | 197.2  |   |        | $      | 202.3 |   |

----

Index

|                                      |   |   | Nine Months Ended |   |   | Three Months Ended |   |
|-------------------------------------------|--------|--------|-------------------|--------|--------|--------------------|--------|
|                                      |   |   | July 31,          |   |   | July 31,           |   |
|                                      |   |   | 2010              |   |   | 2009               |   |   | 2010 |   |   | 2009 |   |
|                                      |   |   | ($ in thousands)  |   |   | ($ in thousands)   |   |
|                                      |   |   |              |   |   |               |   |   |   |   |   |   |   |
| Net income                                |   |   | $                 | 4,421  |   |               | $      | 4,993 |   |   | $ | 1,538 |   |   | $ | 1,729 |   |
| Depreciation                              |   |   |              | 4,556  |   |               |   | 4,407 |   |   |   | 1,492 |   |   |   | 1,470 |   |
| Amortization of deferred mortgage costs   |   |   | 167               |   |   |               | 174    |   |   |   | 61 |   |   |   | 57 |   |
| Deferred rents (Straight lining)          |   |   |              | (162   | )      |               |   | (163 | ) |   |   | (53 | ) |   |   | (59 | ) |
| Amortization of acquired leases           |   |   |              | 22     |   |               |   | 27 |   |   |   | 7 |   |   |   | 9 |   |
| Capital Improvements - Apartments         |   |   | (254              | )      |   |               | (143   | ) |   |   | (134 | ) |   |   | (36 | ) |
| Distributions to noncontrolling interests |   |   | (1,022            | )      |   |               | (820   | ) |   |   | (330 | ) |   |   | (257 | ) |
|   FFO                                |   | $      | 7,728             |   |   | $                  | 8,475  |   |   | $ | 2,581 |   |   | $ | 2,913 |   |
|                                      |   |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|    Per Share - Basic            |   | $      | 1.11              |   |   | $                  | 1.22   |   |   | $ | 0.37 |   |   | $ | 0.42 |   |
|                                      |   |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|  Weighted Average Shares Outstanding |   |   | 6,942             |   |   |               | 6,944  |   |   |   | 6,942 |   |   |   | 6,942 |   |

----

Index

Q

C

t

g

s

b

----

Index

U

|                    | FIRST REAL ESTATE INVESTMENT                                                                                                                     |
|-------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |           TRUST OF NEW JERSEY                                                                  |
|                    |                       (Registrant) |
|                    |                                                                                                                                             |
| Date: September 9, 2010 |                                                                                                                                             |
|                    | /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)                                                                                                         |