SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934



For Quarterly Period Ended July 31, 1999             Commission File No. 2-27018


                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                               (I.R.S. Employer
Incorporation or Organization)                               Identification No.)


505 Main Street, P.O. Box 667, Hackensack, New Jersey               07602
------------------------------------------------------         -----------------
     (Address of principal executive offices)                     (Zip Code)


Registrant's telephone number, including area code   201-488-6400
                                                     ------------

_______________________________________________________________________________
Former  name,  former  address and former  fiscal  year,  if changed  since last
report.

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed  by  Section  13 or 15 (d) of the  Securities  Exchange  Act of 1934
during the preceding 12 months (or for such shorter  period that the  registrant
was  required  to file such  reports),  and (2) has been  subject to such filing
requirements for the past 90 days.

                                 Yes  XX   No
                                    ------   ------
Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

        There were 1,559,788 shares of beneficial interest outstanding at
                              September 14, 1999.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                                      INDEX


Part I:  Financial Information

         Item 1:  Financial Statements

                  a.)  Balance Sheets as at July 31, 1999 and October 31, 1998;

                  b.)  Statements of Income and Undistributed Earnings For the
                       Nine Months and three Months Ended July 31, 1999
                       and 1998;

                  c.)  Statements of Cash Flows for the Nine  Months Ended
                       July 31, 1999 and 1998;

                  d.)  Notes to Financial Statements.

         Item 2: Management's Discussion and Analysis of  Financial Condition
                           and Results of Operations.

Item 3: Quantitative and Qualitative Disclosures of Market Risk.

Part II:  Other Information

         Item 1. Legal Proceedings

         Item 4. Submission of  Matters to a Vote of Security Holders.

         Item 5. Other Events.

         Item 6. Exhibits and Reports on Form 8-K
<PAGE>
<TABLE>
<CAPTION>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                                 BALANCE SHEETS
                       JULY 31, 1999 AND OCTOBER 31, 1998

                                                                           July        October
                                                                         31, 1998     31, 1998
                                                                         --------     --------
                                                                        (Unaudited)  (See Note 1)
                                                                       (In Thousands of Dollars)
ASSETS
------
<S>                                                                       <C>         <C>
Real estate, at cost, net of accumulated depreciation ...............     $63,512     $64,432
Equipment, at cost, net of accumulated depreciation of
    $321,000 and $657,000 ...........................................         189         190
Investment in affiliate .............................................                   1,918
Cash and cash equivalents ...........................................      15,792         793
Tenants' security accounts ..........................................         755         752
Note receivable - affiliate .........................................                     100
Sundry receivables ..................................................       1,185         728
Prepaid expenses and other assets ...................................         847       1,172
Deferred charges, net ...............................................       1,373       1,190
                                                                          -------     -------

           Totals ...................................................     $83,653     $71,275
                                                                          =======     =======

LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------

Liabilities:
    Mortgages payable ...............................................     $60,262     $47,853
    Accounts payable and accrued expenses ...........................         311         401
    Cash distributions in excess of investment in affiliate .........         296
    Dividends payable ...............................................         624       1,435
    Tenants' security deposits ......................................         967         969
    Deferred revenue ................................................         114         255
                                                                          -------     -------
           Total liabilities ........................................      62,574      50,913
                                                                          -------     -------

Commitments and contingencies

Shareholders' equity:
    Shares of beneficial interest without par value; 1,790,000 shares
        authorized; 1,559,788 shares issued and outstanding .........      19,314      19,314
    Undistributed earnings ..........................................       1,765       1,048
                                                                          -------     -------
           Total shareholders' equity ...............................      21,079      20,362
                                                                          -------     -------

           Totals ...................................................     $83,653     $71,275
                                                                          =======     =======
</TABLE>

See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                 STATEMENTS OF INCOME AND UNDISTRIBUTED EARNINGS
               NINE AND THREE MONTHS ENDED JULY 31, 1999 AND 1998
                                   (Unaudited)



                                                    Nine Months                   Three Months
                                                   Ended July 31,                Ended July 31,
                                              -----------------------       -----------------------
                                                1999           1998           1999           1998
                                              --------       --------       --------       --------
                                                            (In Thousands of Dollars,
                                                            Except Per Share Amounts)
<S>                                           <C>            <C>            <C>            <C>
INCOME
------

Revenue:
    Rental income ......................      $  9,778       $  9,233       $  3,345       $  3,207
    Reimbursements .....................         1,277          1,202            400            378
    Equity in income (loss) of affiliate           (93)           149             43             71
    Interest income ....................           490            184
    Sundry income ......................           162            149             67             47
                                              --------       --------       --------       --------
        Totals .........................        11,614         10,733          4,039          3,703
                                              --------       --------       --------       --------

Expenses:
    Operating expenses .................         2,446          2,251            786            760
    Management fees ....................           460            428            154            155
    Real estate taxes ..................         1,367          1,325            468            437
    Interest ...........................         3,466          2,813          1,157            948
    Depreciation .......................         1,277          1,220            432            428
                                              --------       --------       --------       --------
        Totals .........................         9,016          8,037          2,997          2,728
                                              --------       --------       --------       --------

Income before state income taxes .......         2,598          2,696          1,042            975

Provision for state income taxes .......             9              8              4              2
                                              --------       --------       --------       --------

Net income $  2,589 ....................      $  2,688       $  1,038       $    973
                                              ========       ========       ========       ========

Earnings per share .....................      $   1.66       $   1.72       $    .67       $    .62
                                              ========       ========       ========       ========

UNDISTRIBUTED EARNINGS
----------------------

Balance, beginning of period ...........      $  1,048       $    670       $  1,351       $  1,137
Net income .............................         2,589          2,688          1,038            973
Less dividends .........................        (1,872)        (1,872)          (624)          (624)
                                              --------       --------       --------       --------

Balance, end of period .................      $  1,765       $  1,486       $  1,765       $  1,486
                                              ========       ========       ========       ========

Dividends per share ....................      $   1.20       $   1.20       $    .40       $    .40
                                              ========       ========       ========       ========
</TABLE>

See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                            STATEMENTS OF CASH FLOWS
                    NINE MONTHS ENDED JULY 31, 1999 AND 1998
                                   (Unaudited)


                                                                          1999           1998
                                                                        --------       --------
                                                                             (In Thousands
                                                                              of Dollars)
<S>                                                                     <C>            <C>
Operating activities:
    Net income ...................................................      $  2,589       $  2,688
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation and amortization ............................         1,391          1,313
        Deferred revenue .........................................          (141)           120
        Equity in (income) loss of affiliate .....................            93           (149)
        Changes in operating assets and liabilities:
           Tenants' security accounts ............................            (3)           (62)
           Sundry receivables, prepaid expenses and other assets .          (132)          (175)
           Deferred charges ......................................          (112)
           Accounts payable and accrued expenses .................           (90)            32
           Tenants' security deposits ............................            (2)            86
                                                                        --------       --------
               Net cash provided by operating activities .........         3,593          3,853
                                                                        --------       --------
Investing activities:
    Capital expenditures .........................................          (356)        (5,195)
    Distributions from affiliate .................................         2,121            200
    Repayment of loan by affiliate ...............................           100
                                                                        --------       --------
               Net cash provided by (used in) investing activities         1,865         (4,995)
                                                                        --------       --------
Financing activities:
    Dividends paid ...............................................        (2,683)        (2,574)
    Repayments of note payable - bank ............................                      (11,429)
    Net proceeds from mortgage refinancing .......................         3,671          5,443
    Proceeds from mortgage borrowings ............................         9,275         11,100
    Repayment of mortgages .......................................          (537)          (452)
    Deferred mortgage costs ......................................          (185)          (525)
                                                                        --------       --------
               Net cash provided by financing activities .........         9,541          1,563
                                                                        --------       --------

Net increase in cash and cash equivalents ........................        14,999            421

Cash and cash equivalents, beginning of period ...................           793            228
                                                                        --------       --------

Cash and cash equivalents, end of period .........................      $ 15,792       $    649
                                                                        ========       ========

Supplemental disclosure of cash flow data:
    Interest paid, net of capitalized interest of $67,000 in 1998       $  3,399       $  2,764
                                                                        ========       ========

</TABLE>

Supplemental schedule of noncash investing and financing  activities:  Dividends
    declared but not paid amounted to $624,000 at July 31, 1999 and 1998.

    During  the nine  months  ended  July 31,  1998,  the  Trust  completed  its
    acquisition of a 64,000 square foot retail  property in Patchogue,  New York
    for  approximately  $11,000,000,  in part, with the proceeds of a $7,500,000
    mortgage.


See Notes to Financial Statements.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and significant accounting policies:
                Organization:
                    First  Real  Estate  Investment  Trust  of New  Jersey  (the
                    "Trust")  was  organized on November 1, 1961 as a New Jersey
                    Business Trust.  The Trust is engaged in owning  residential
                    and  retail  income  producing  properties  located  in  New
                    Jersey, Maryland and New York.

                    The  Trust  has  elected  to  be  taxed  as  a  Real  Estate
                    Investment Trust under the provisions of Sections 856-860 of
                    the Internal  Revenue  Code,  as amended.  Accordingly,  the
                    Trust does not pay  Federal  income  tax on income  whenever
                    income  distributed to shareholders is equal to at least 95%
                    of real estate investment trust taxable income. Further, the
                    Trust   pays  no  Federal   income  tax  on  capital   gains
                    distributed to shareholders.

                    The Trust is subject to Federal income tax on  undistributed
                    taxable  income  and  capital  gains.  The Trust may make an
                    annual  election  under Section 858 of the Internal  Revenue
                    Code to apply  part of the  regular  dividends  paid in each
                    respective   subsequent  year  as  a  distribution  for  the
                    immediately preceding year.

                Basis of presentation:
                    The  financial  information  included  herein as at July 31,
                    1999 and for the nine and three  months  ended July 31, 1999
                    and 1998 is  unaudited  and,  in the  opinion  of the Trust,
                    reflects  all   adjustments   (which   include  only  normal
                    recurring accruals) necessary for a fair presentation of the
                    financial  position  as of  that  date  and the  results  of
                    operations for those periods. The information in the balance
                    sheet as of October 31,  1998 was  derived  from the Trust's
                    audited annual report for 1998.

                Use of estimates:
                    The  preparation of financial  statements in conformity with
                    generally accepted accounting principles requires management
                    to make  estimates  and  assump-tions  that  affect  certain
                    reported  amounts  and  disclosures.   Accordingly,   actual
                    results could differ from those estimates.

                Investment in affiliate:
                    The  Trust's 40%  investment  in  Westwood  Hills,  LLC (the
                    "Affiliate") is accounted for using the equity method.

                Cash and cash equivalents:
                    The Trust maintains its cash in bank deposit accounts which,
                    at times,  may exceed  Federally  insured limits.  The Trust
                    considers all highly liquid debt instruments  purchased with
                    a maturity of three months or less to be cash equivalents.

                Depreciation:
                    Real   estate  and   equipment   are   depreciated   on  the
                    straight-line   method  by  annual   charges  to  operations
                    calculated  to absorb  costs of assets over their  estimated
                    useful lives.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS


Note 1 - Organization and significant accounting policies (concluded):

                Revenue recognition:
                    Income from leases is  recognized on a  straight-line  basis
                    regardless of when payment is due. Lease agreements  between
                    the  Trust  and  retail   tenants   generally   provide  for
                    additional  rentals  based on such factors as  percentage of
                    tenants' sales in excess of specified volumes,  increases in
                    real estate  taxes,  Consumer  Price Indices and common area
                    maintenance charges.  These additional rentals are generally
                    included in income when  reported to the Trust,  when billed
                    to tenants or ratably over the appropriate period.

                Deferred charges:
                    Deferred  charges  consist  of  mortgage  costs and  leasing
                    commissions.  Deferred  mortgage  costs are amortized on the
                    straight-line  method by annual  charges to operations  over
                    the terms of the  mortgages.  Amortization  of such costs is
                    included in interest  expense and  approximated  $67,000 and
                    $49,000  for the nine  months  ended July 31, 1999 and 1998,
                    respectively,  and approximately $23,000 and $19,000 for the
                    three  months  ended July 31,  1999 and 1998,  respectively.
                    Deferred   leasing   commissions   are   amortized   on  the
                    straight-line  method  over  the  terms  of  the  applicable
                    leases.

                Advertising:
                    The Trust expenses the cost of advertising and promotions as
                    incurred.  Advertising costs charged to operations  amounted
                    to  approximately  $47,000  and  $40,000 for the nine months
                    ended   July  31,   1999   and   1998,   respectively,   and
                    approximately $15,000 and $17,000 for the three months ended
                    July 31, 1999 and 1998, respectively.

                Earnings per share:
                    The Trust has  presented  "basic"  earnings per share in the
                    accompanying  statements  of income in  accordance  with the
                    provisions  of Statement of Financial  Accounting  Standards
                    No. 128,  Earnings  per Share  ("SFAS  128").  SFAS 128 also
                    requires the presentation of "diluted" earnings per share if
                    the amount  differs  from basic  earnings  per share.  Basic
                    earnings per share is  calculated  by dividing net income by
                    the weighted  average  number of common  shares  outstanding
                    during each period.  The calculation of diluted earnings per
                    share is similar to that of basic earnings per share, except
                    that the  denominator  is increased to include the number of
                    additional common shares that would have been outstanding if
                    all  potentially  dilutive  common  shares,  such  as  those
                    issuable  upon the exercise of stock  options and  warrants,
                    were issued during the period. For the nine and three months
                    ended July 31,  1999,  diluted  earnings  per share have not
                    been  presented  because  prices  of all of the  outstanding
                    stock options approximated the average fair market value and
                    there were no  additional  shares  derived  from the assumed
                    exercise  of  stock  options  and  the  application  of  the
                    treasury  stock method.  For the nine and three months ended
                    July 31, 1998, the Trust had no potentially  dilutive common
                    shares.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 2 - Investment in affiliate:
                The Trust is a 40% member of the Affiliate,  a limited liability
                company that is managed by Hekemian & Co., Inc. ("Hekemian"),  a
                company which manages all of the Trust's properties and in which
                one of the  trustees of the Trust is the  chairman of the board.
                Certain other  members of the  Affiliate are either  trustees of
                the  Trust  or their  families  or  officers  of  Hekemian.  The
                Affiliate  owns  a  residential  apartment  complex  located  in
                Westwood, New Jersey.

                Summarized financial information of the Affiliate as of July 31,
                1999 and  October  31,  1998 and for the nine and  three  months
                ended July 31, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
                                                            July          October
                                                          31, 1999       31, 1998
                                                          --------       --------
                                                               (In Thousands
                                                                of Dollars)
<S>                                                       <C>            <C>
Balance sheet data:
     Assets:
         Real estate and equipment, net ............      $ 14,244       $ 14,416
         Other .....................................           666            976
                                                          --------       --------

               Total assets ........................      $ 14,910       $ 15,392
                                                          ========       ========

     Liabilities and equity:
         Liabilities:
           Mortgage payable ........................      $ 15,404       $ 10,025
           Other ...................................           348            576
                                                          --------       --------
               Totals ..............................        15,752         10,601
                                                          --------       --------

         Members' equity (deficiency):
           Trust ...................................          (296)         1,918
           Others ..................................          (546)         2,873
                                                          --------       --------
               Totals ..............................          (842)         4,791
                                                          --------       --------

               Total liabilities and members' equity      $ 14,910       $ 15,392
                                                          ========       ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
                                           Nine Months Ended         Three Months Ended
                                                July 31,                   July 31,
                                         ---------------------      --------------------
                                           1999         1998          1999         1998
                                         -------       -------      -------      -------
                                                    (In Thousands of Dollars)
<S>                                      <C>           <C>          <C>          <C>
Income statement data:
     Rental revenue ...............      $ 2,037       $ 1,953      $   703      $   660
     Rental expenses ..............        1,828         1,581          595          483
                                         -------       -------      -------      -------
     Income from rental operations           209           372          108          177
     Prepayment penalty on mortgage
         refinancing ..............         (442)

     Net income (loss) ............      $  (233)      $   372      $   108      $   177
                                         =======       =======      =======      =======
</TABLE>

                At October 31, 1998,  the Trust had a $100,000  note  receivable
                from the Affiliate  that was repaid during the nine months ended
                July 31,  1999 with  interest  at 7%.  Interest  income  was not
                material.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 3 - Real estate:
                Real estate consists of the following:
<TABLE>
<CAPTION>
                                          Range
                                      of Estimated           July         October
                                      Useful Lives         31, 1999       31, 1998
                                      ------------         --------       --------
                                                               (In Thousands
                                                                 of Dollars)
<S>                                   <C>                  <C>            <C>
Land                                                       $22,773        $22,773
Unimproved land                                              2,327          2,305
Apartment buildings                    7-40 years           10,688         11,013
Retail buildings                      15-50 years           40,721         39,931
Construction in progress                                     1,426          2,053
                                                           -------        -------
                                                            77,935         78,075
Less accumulated depreciation                               14,423         13,643
                                                           -------        -------

       Totals                                              $63,512        $64,432
                                                           =======        =======

</TABLE>
<PAGE>
Note 4 - Mortgages payable:
                Mortgages payable consist of the following:
<TABLE>
<CAPTION>
                                                                           July           October
                                                                          31, 1999       31, 1998
                                                                          --------       --------
                                                                              (In thousands
                                                                                of Dollars)
<S>                                                                       <C>            <C>
Northern Life Insurance Cos. - Frederick, MD (A)                          $18,678        $18,876
National Realty Funding L.C. - Westwood, NJ (B)                            10,447         10,526
Summit Bank - Spring Lake, NJ (C)                                                             29
Larson Financial Resources, Inc. - Spring Lake, NJ (C)                      3,674
Summit Bank - Patchogue, NY (D)                                             7,325          7,410
Larson Financial Resources, Inc. - Wayne, NJ (E)                           10,928         11,012
Larson Financial Resources, Inc. - River Edge, NJ (F)                       5,337
Larson Financial Resources, Inc. - Maywood, NJ (G)                          3,873
                                                                          -------        -------

       Totals                                                             $60,262        $47,853
                                                                          =======        =======
</TABLE>

                    (A)    The  mortgage is payable in monthly  installments  of
                           $152,153  including  interest at 8.31%  through  June
                           2007 at which  time the  outstanding  balance is due.
                           The  mortgage  is  secured  by a retail  building  in
                           Frederick,  Maryland  having  a  net  book  value  of
                           approximately $24,004,000.

                    (B)    The  mortgage is payable in monthly  installments  of
                           $73,248 including  interest at 7.38% through February
                           2013 at which  time the  outstanding  balance is due.
                           The  mortgage  is  secured  by a retail  building  in
                           Westwood,  New  Jersey  having  a net  book  value of
                           approximately $11,346,000.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 4 - Mortgages payable (concluded):

                    (C)    On  November   19,   1998,   the  Trust   repaid  the
                           outstanding  mortgage on the Spring Lake,  New Jersey
                           apartment  building  utilizing  proceeds  from  a new
                           mortgage  in  the  amount  of  $3,700,000.   The  new
                           mortgage  is  payable  in  monthly   installments  of
                           $29,863 including  interest at 6.70% through December
                           2013 at which  time the  outstanding  balance is due.
                           The mortgage is secured by an  apartment  building in
                           Spring  Lake,  New Jersey  having a net book value of
                           approximately $526,000.

                    (D)    Payable in monthly  installments of $54,816 including
                           interest at 7.375% through January 2005 at which time
                           the  outstanding  balance  is due.  The  mortgage  is
                           secured by a retail  building in Patchogue,  New York
                           having a net book value of approximately $10,541,000.

                    (E)    Payable in monthly  installments of $76,023 including
                           interest at 7.29% through July 2010 at which time the
                           outstanding  balance is due.  The mortgage is secured
                           by an apartment  building in Wayne, New Jersey having
                           a net book value of approximately $1,614,000.

                    (F)    Payable in monthly  installments of $43,711 including
                           interest at 6.75% through December 2013 at which time
                           the  outstanding  balance  is due.  The  mortgage  is
                           secured by an apartment  building in River Edge,  New
                           Jersey  having  a net  book  value  of  approximately
                           $1,322,000.

                    (G)    Payable in monthly  installments of $33,676 including
                           interest at 6.75% through December 2013 at which time
                           the  outstanding  balance  is due.  The  mortgage  is
                           secured by an  apartment  building  in  Maywood,  New
                           Jersey  having  a net  book  value  of  approximately
                           $930,000.

                Principal  amounts (in thousands of dollars) due under the above
                obligations  in each of the five  years  subsequent  to July 31,
                1999 are as follows:

                    Year Ending
                       July 31,                      Amount
                    -----------                     -------
                       2000                         $  777
                       2001                            838
                       2002                            904
                       2003                            976
                       2004                          1,052

                Based on borrowing rates currently  available to the Trust,  the
                fair value of the mortgage debt is approximately  $63,000,000 at
                July 31, 1999.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 5 - Line of credit agreement:
                The Trust has a revolving  line of credit  agreement with Summit
                Bank which  expires on  December  31,  1999.  Maximum  allowable
                borrowings  under the agreement were  $8,000,000 and $12,310,000
                at July 31, 1999 and October 31, 1998, respectively. The line of
                credit bears interest at the bank's floating base rate plus .25%
                or the LIBOR rate plus 175 basis points.  Outstanding borrowings
                are secured by apartment  buildings in  Hasbrouck  Heights,  New
                Jersey,  Lakewood, New Jersey, and Palisades Park, New Jersey as
                well as a retail building in Franklin Lakes,  New Jersey.  There
                were no outstanding  borrowings  under the agreement at July 31,
                1999 and October 31, 1998. One of the directors of the bank is a
                trustee of the Trust.


Note 6 - Commitments and contingencies:
                Leases:
                   Retail tenants:
                      The Trust  leases  retail space having a net book value of
                      approximately  $56,000,000 at July 31, 1999 to tenants for
                      periods  of up to  twenty-five  years.  Most of the leases
                      contain  clauses for  reimbursement  of real estate taxes,
                      maintenance,   insurance  and  certain   other   operating
                      expenses  of the  properties.  Minimum  rental  income (in
                      thousands  of dollars) to be received  from  noncancelable
                      operating  leases in years subsequent to July 31, 1999 are
                      as follows:

                          Year Ending
                            July 31,                         Amount
                          -----------                        ------

                             2000                          $  6,325
                             2001                             6,194
                             2002                             5,878
                             2003                             5,626
                             2004                             4,988
                             Thereafter                      47,298
                                                           --------

                                 Total                      $76,309
                                                            =======

                      The above amounts  assume that all leases which expire are
                      not renewed and, accordingly,  neither minimal rentals nor
                      rentals from replacement tenants are included.

                      Minimum future rentals do not include  contingent  rentals
                      which may be received under certain leases on the basis of
                      percentage of reported  tenants' sales volume or increases
                      in Consumer Price Indices.  Contingent rentals included in
                      income  for each of the nine and three  months  ended July
                      31, 1999 and 1998 were not material.

                      In June 1999, the major lessee of the Frederick, MD retail
                      building filed for protection under Chapter 11 of the U.S.
                      Bankruptcy  Code. In as much as the major lessee had never
                      occupied  the  premises,  but had sublet the  location  to
                      another  entity  who is seeking  assignment  of the lease,
                      management does not believe that the Trust will suffer any
                      material loss from the bankruptcy petition.

                   Residential tenants:
                      Lease terms for  residential  tenants are usually one year
                      or less.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS


Note            6 - Commitments  and  contingencies  (concluded):  Environmental
                concerns:
                    In  accordance  with  applicable   regulations,   the  Trust
                    reported  to the  New  Jersey  Department  of  Environmental
                    Protection  that  a  discharge  of  hazardous  material  was
                    recently discovered at the newly renovated Franklin Crossing
                    Retail Building (the "Building").

                    At present,  the discharge  material  appears to be isolated
                    and management  believes there will be no significant effect
                    on the operations of the Building.

                    In   connection   therewith,   the  Trust  is   required  to
                    investigate  and monitor such  discharge,  the cost of which
                    will not be material.

Note 7 - Management agreement and related party transactions:
                The  properties  owned by the Trust  are  currently  managed  by
                Hekemian.  The  management  agreement  requires  fees equal to a
                percentage  of rents  collected.  Such fees  were  approximately
                $460,000  and  $428,000  for the nine months ended July 31, 1999
                and 1998, respectively,  and approximately $154,000 and $155,000
                for the three months ended July 31, 1999 and 1998, respectively.
                In addition,  Hekemian charged the Trust fees and commissions in
                connection  with  the  acquisition  of the  retail  building  in
                Patchogue,  New York and various mortgage  refinancing and lease
                acquisition   fees.  Such  fees  and  commissions   amounted  to
                approximately  $127,000  and  $707,000 for the nine months ended
                July 31, 1999 and 1998,  respectively,  and approximately $6,000
                and $12,000 for the three  months  ended July 31, 1999 and 1998,
                respectively.

Note 8 - Equity incentive plan:
                On  September  10,  1998,  the Board of  Trustees  approved  the
                Trust's Equity  Incentive Plan (the "Plan"),  which was ratified
                by the  Trust's  stockholders  on April 7,  1999,  whereby up to
                230,000 of the  Trust's  shares of  beneficial  interest  may be
                granted  to  key  personnel  in  the  form  of  stock   options,
                restricted  share  awards  and  other  share-based   awards.  In
                connection therewith, the Board of Trustees approved an increase
                of 230,000 shares in the Trust's number of authorized  shares of
                beneficial  interest.  Key  personnel  eligible for these awards
                include  trustees,  executive  officers  and  other  persons  or
                entities including, without limitation,  employees,  consultants
                and  employees  of  consultants,  who are in a position  to make
                significant contributions to the success of the Trust. Under the
                Plan,  the exercise price of all options will be the fair market
                value of the shares on the date of grant.  The  consideration to
                be paid for restricted share and other share-based  awards shall
                be determined  by the Board of Trustees,  with the amount not to
                exceed the fair market value of the shares on the date of grant.
                The maximum term of any award  granted may not exceed ten years.
                The actual terms of each award will be  determined  by the Board
                of Trustees.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS


Note 8 - Equity incentive plan (concluded):
                In accordance with the provisions of Accounting Principles Board
                Opinion No. 25,  Accounting for Stock Issued to Employees  ("APB
                25"), the Trust will recognize compensation costs as a result of
                the issuance of restricted  share and other  share-based  awards
                based on the excess, if any, of the fair value of the underlying
                stock  at the  date of  grant  or  award  (or at an  appropriate
                subsequent  measurement date) over the amount the recipient must
                pay to  acquire  the  stock.  Therefore,  the Trust  will not be
                required to  recognize  compensation  expense as a result of any
                grants of stock options,  restricted share and other share-based
                awards at an  exercise  price that is  equivalent  to or greater
                than fair value. The Trust will also make proforma  disclosures,
                as required by Statement of Financial  Accounting  Standards No.
                123,  Accounting for Stock-Based  Compensation  ("SFAS 123"), of
                net income or loss as if a fair value based method of accounting
                for stock  options  had been  applied  instead  if such  amounts
                differ materially from the historical amounts.

                In the opinion of management, if compensation cost for the stock
                options  granted in 1999 had been  determined  based on the fair
                value of the options at the grant date under the  provisions  of
                SFAS 123  using  the  Black-Scholes  option  pricing  model  and
                assuming a risk-free  interest  rate of 5.25%,  expected  option
                lives  of ten  years,  expected  volatility  of 1% and  expected
                dividends of 7.13%,  the  Company's pro forma net income and pro
                forma basic net income per share  arising from such  computation
                would  not  have  differed  materially  from  the  corresponding
                historical amounts.

Note 9 - Basic earnings per share:
                Basic earnings per share,  based on the weighted  average number
                of shares  outstanding  during each  period,  are  comprised  of
                ordinary income.

                                              * * *
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
        AND RESULTS OF OPERATIONS

Overview

The Registrant is an equity REIT which owns a portfolio of residential apartment
and retail  properties,  and vacant  land.  The  Registrant's  revenues  consist
primarily  of fixed  rental  income and  additional  rent in the form of expense
reimbursements  derived  from  its  income  producing  retail  properties.   The
Registrant  also receives income from its 40% owned  affiliate,  Westwood Hills,
LLC, which owns a residential  apartment  property.  The Registrant's policy has
been to acquire real property for long-term investment.

The following  discussion  should be read in conjunction  with the  Registrant's
financial  statements  and related notes  included  elsewhere in this Form 10-Q.
Certain  statements in this  "Management's  Discussion and Analysis of Financial
Condition and Results of Operations" may constitute  forward-looking  statements
within the meaning of Section 27A of the  Securities  Act and Section 21E of the
Exchange Act. Although the Registrant  believes that the expectations  reflected
in such  forward-looking  statements are based on reasonable  assumptions,  such
statements are subject to risks and  uncertainties,  including  those  discussed
elsewhere  in this  Form  10-Q,  that  could  cause  actual  results  to  differ
materially from those projected.

Results of Operations

Nine months ended July 31, 1999 vs. 1998

Revenues

For the nine  months  ended  July 31,  1999,  total  revenue  increased  8.2% to
$11,614,000  from  $10,733,000  for the nine  months  ended July 31,  1998.  The
revenue  increase  results,  in  part,  from a  $632,000  increase  in  revenues
generated at the Registrant's  operating properties,  and a $490,000 increase in
interest  income  from  investing  the  Registrant's  cash  equivalents.   These
increases  were offset by the  negative  swing of  $242,000 in the  Registrant's
share  of  operations  at its 40%  owned  affiliate.  The  revenue  increase  at
operating  properties  is  principally  the result of the  Pathmark  Super Store
(Patchogue,  NY) being  included in operations  for the full 1999 nine months as
opposed to only seven and  one-half  months  during the prior year's nine months
(acquired in December  1997),  and increased  revenues at the Franklin  Crossing
Shopping Center  (Franklin  Lakes,  NJ) as a result of leasing  activities.  The
increase  in  interest  income is due to the  investing  of  mortgage  financing
proceeds. (See "Liquidity and Capital Resources" below). The loss resulting from
the  Registrant's  40%  equity  interest  in its  affiliate  is due to  one-time
financing costs incurred by the affiliate in connection with mortgage  financing
- see below.


Expenses

For the nine months  ended July 31,  1999,  total  expenses  increased  12.2% to
$9,025,000 from $8,045,000 for the comparable  prior year nine months.  Expenses
at operating  properties  increased  4.1%,  with  virtually  all of the increase
coming from  increased  operating  expenses and  depreciation  at Patchogue  and
Franklin Crossing (see "Revenues" above). Financing costs registered the highest
increase,  rising to $3,466,000  for the current fiscal year's nine month period
from $2,813,000  (including a one time $130,000  refinancing charge) during last
year's  nine month  period.  This is  attributable  to higher  debt  levels (See
"Liquidity  and  Capital  Resources"  below).  Administrative  costs  during the
current nine months increased 53%, principally  resulting from one-time costs in
connection with the Registrant becoming a 34 Act reporting company.

Net Income and Funds from Operations

For the nine months ended July 31, 1999, the  Registrant's  net income decreased
$99,000 (3.7%) to $2,589,000  from  $2,688,000 for last year's nine months ended
July 31, 1998.  Earnings per share  decreased to $1.66 per share for the current
year's  nine  months  from  $1.72 per share  last year.  Earnings  at  operating
properties  increased  7.7%  over last  year.  Higher  rents at the  residential
properties along with the higher earnings  contribution  from Franklin  Crossing
Shopping  Center and the Pathmark  Super Store  accounted  for this  increase in
earnings. The decrease in net income is principally  attributable,  as discussed
above,  to the  Registrant's  40% share of the losses at its affiliate  totaling
$96,000  during the nine  months  ended July 31,  1999,  compared to a profit of
$149,000  for the  comparable  prior  year's  nine  months.  The  losses  at the
affiliate were due to one-time mortgage refinancing costs, of which $177,000 was
accounted for as the Registrant's  share.  Funds from Operations  ("FFO") during
the nine  months  ended July 31, 1999  decreased  .4% to  $3,910,000  ($2.51 per
share)  from  $3,924,000  ($2.52 per share) for the  comparable  prior year nine
months.

The Registrant  believes that in fiscal 1999 the continued  economic strength in
the  employment  markets in which its  properties  are located  should allow the
Registrant to realize its current  occupancy rates for its apartment  properties
with a sound support base for its retail properties. The Registrant expects that
it will be successful in continuing to lease-up the Franklin  Crossing  Shopping
Center which will generate increased earnings and FFO over the balance of fiscal
1999. FFO is a standard measurement of a REIT's performance. It is an indication
of a REIT's financial  results and its ability to pay dividends.  FFO is defined
by the  Registrant  as net income,  excluding  (i) deferred  rents and gains and
losses  from  property  sales  and (ii) real  estate  related  depreciation  and
amortization. FFO does not represent cash generated from operating activities in
accordance with generally accepted accounting principles ("GAAP"), and therefore
should not be considered a substitute  for net income as a measure of results of
operations or for cash flow from operations as a measure of liquidity.

Results of Operations

Three months ended July 31, 1999 vs. 1998

Revenues

For the three  months  ended July 31,  1999,  total  revenue  increased  9.0% to
$4,039,000 from $3,703,000 for the three months ended July 31, 1998. The revenue
increase  results,   in  part,  from  $180,000  of  increased  revenues  at  the
Registrant's  operating  properties,  and $184,000 of increased  interest income
from investing the Registrant's cash equivalents. These increases were offset by
the decrease in the  Registrant's  share of income at the Registrant's 40% owned
affiliate  to $43,000 from $71,000  last year  reflecting  the higher  financing
costs of the affiliate (see "Liquidity and Capital Resources").

Expenses

For the three months  ended July 31,  1999,  total  expenses  increased  9.9% to
$3,001,000  from  $2,730,000  for the  comparable  prior  year's  three  months.
Expenses at operating  properties  increased 3.0%.  Financing costs increased to
$1,157,000  from $949,000 last year.  This is attributable to higher debt levels
(See "Liquidity and Capital Resources").

Net Income and Funds from Operations

For the three months ended July 31, 1999,the  Registrant's  net income increased
$66,000  (6.8%) to  $1,038,000  from $972,000 for last year's three months ended
July 31, 1998.  Earnings  per share  increased to $.67 per share for the current
year's  three  months  from $.62 per share  last  year.  Earnings  at  operating
properties  increased  6.6%  over last  year.  Higher  rents at the  residential
properties along with the higher earnings  contribution  from Franklin  Crossing
and Patchogue  accounted for this  increase in earnings.  Funds from  Operations
("FFO") during the three months ended July 31, 1999 increased 5.8% to $1,430,000
($.92 per share) from $1,351,000  ($.87 per share) for the comparable prior year
three months reflecting increased earnings.

The Results of Operations for both the Nine and Three Months Ended July 31, 1999
have not been adjusted for a major lessee of the MD retail  building  filing for
protection under Chapter 11 of the U.S. Bankruptcy Code. In as much as the major
lessee had never  occupied the premises,  but had sublet the location to another
entity who is seeking assignment to the lease, the Registrant's  management does
not believe the  Registrant  will suffer any material  loss from the  bankruptcy
petition.

Liquidity and Capital Resources

At July 31, 1999, the Registrant's cash and cash equivalents totaled $15,792,000
as compared  to  $649,000  at July 31,  1998.  In fiscal  1997,  the  Registrant
recognized  the declining  cost trend of fixed rate,  long-term  financing,  and
developed  a plan to replace  its  reliance  on its  short-term,  variable  rate
financing  with  long-term,  fixed  rate  financing.  During  fiscal  1998,  the
Registrant  mortgaged a  previously  debt free  property  for  $11,100,000,  and
refinanced an existing  $5,157,000  mortgage for  $10,600,000.  The net proceeds
from these financings of  approximately  $16,065,000 were used to repay the then
outstanding  balance  under the Summit  Bank line of credit,  fund  construction
costs  at  Franklin  Crossing,  and  pay  the  cash  portion  of  the  Patchogue
acquisition. In the first nine months of fiscal 1999, the Registrant closed on a
series of mortgage  financings  that yielded net cash proceeds of $12,706,000 to
the Registrant.  In addition,  the Registrant's  40% owned  affiliate,  Westwood
Hills,  also  completed a mortgage  financing in the first nine months of fiscal
1999 which yielded approximately $4,900,000 in net cash proceeds.  Approximately
$2 million of these  proceeds were  distributed  to the Registrant in accordance
with its equity ownership.  As a result of the various mortgage financings,  and
reflecting the reduced  collateral  available,  the Registrant's  line of credit
from  Summit Bank was reduced  from $20  million at October 31,  1997,  to $12.3
million at  October  31,  1998,  and to $8 million at  November  30,  1998.  The
Registrant may use this line of credit to finance the acquisition or development
of additional  properties and for general business  purposes.  At July 31, 1999,
there were no outstanding borrowings under the line of credit. At July 31, 1999,
the Registrant's  aggregate  outstanding  mortgage debt was approximately  $60.3
million as compared to  approximately  $48.0 million at July 31, 1998. Cash flow
from  operations  has  been  sufficient  to meet  all  operational  needs of the
Registrant.  The Registrant  anticipates that the cash flow from operations will
be more than sufficient to meet the Registrant's increased mortgage obligations.
However,  to the extent  the  proceeds  from the  various  financings  cannot be
redeployed to earn more than the stated interest costs, there will be a negative
impact on earnings and cash flow available to pay dividends.

REIT Distributions to Shareholders

Since its inception in 1961,  the Registrant has elected to be treated as a REIT
for Federal  income tax purposes.  In order to qualify as a REIT, the Registrant
must satisfy a number of highly technical and complex  operational  requirements
including that it must  distribute to its  shareholders at least 95% of its REIT
taxable income. The Registrant  anticipates making distributions to shareholders
from operating cash flows,  which are expected to increase from future growth in
rental  revenues.  Although  cash  used to make  distributions  reduces  amounts
available for capital investment, the Registrant generally intends to distribute
not less than 95% of REIT taxable income in order to satisfy the applicable REIT
requirement as set forth in the Internal  Revenue Code.  Cash dividends are paid
to shareholders on a quarterly basis.  Cash dividends  declared through the nine
months ended July 31, 1999 & 1998 are as follows:

--------------------------------------------------------------------------------
                                       FISCAL 1999              FISCAL 1998
--------------------------------------------------------------------------------
     First Quarter                        $.40                      $.40
--------------------------------------------------------------------------------
     Second Quarter                       $.40                      $.40
--------------------------------------------------------------------------------
     Third Quarter                        $.40                      $.40
--------------------------------------------------------------------------------
         Year To Date                    $1.20                     $1.20
--------------------------------------------------------------------------------


Inflation

The Registrant  anticipates that the U.S.  Mid-Atlantic  States will continue to
experience moderate growth with limited inflation.  Any sustained inflation may,
however,  negatively  impact  the  Registrant  in at least  two  areas:  (i) the
interest costs of any new mortgage  financing or the use of the Summit Bank line
of credit may be higher  than rates  currently  in effect;  and (ii) higher real
estate  operating  costs,  especially  in those  areas  where such costs are not
chargeable to commercial tenants.

Item 3. Quantitative and Qualitative Disclosures about Market Risk
------------------------------------------------------------------

As a  result  of  the  Registrant  having  replaced  short-term,  variable  rate
financing with long-term  fixed rate financing  during fiscal 1998 and the first
nine months of fiscal 1999, the Registrant  believes that its exposure to market
risk  relating to interest  rate risk is not  material.  The  Registrant's  only
variable  rate  financing is the Summit Bank line of credit under which there is
no outstanding balance. The Registrant believes that its business operations are
not exposed to market risk relating to foreign currency exchange risk, commodity
price risk or equity price risk.

Part II: Other Information

         Item 1. Legal Proceedings
                     None.

         Item 4. Submission of Matters to a Vote of Security Holders.
                     None.

         Item 5. Other Events
                 Share   Registration  -  On  May  28,1999  Registrant  filed  A
                 Registration  Statement on Form S-8 registering  230,000 Shares
                 of Beneficial Interest reserved for issuance under Registrant's
                 equity incentive plan. No shares have been Sold or issued.

         Item 6. Exhibits and Reports of Form 8-K
                 No reports on Form 8-K have been filed  during the nine  months
                 ended July 31, 1999.
<PAGE>
                                   SIGNATURES

  Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.



                          FIRST REAL ESTATE INVESTMENT
                          TRUST OF NEW JERSEY
                          ----------------------------
                                (Registrant)




Date September 14, 1999                      /s/ William R. DeLorenzo, Jr.
     ------------------                      -----------------------------
                                                       (Signature)*
                                             William R. DeLorenzo, Jr.
                                             Executive Secretary and Treasurer





*Print name and title of the signing officer under his signature.