UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C. 20549








FORM
10-Q





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




For
the Quarterly Period Ended April 30, 2009


or




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




Commission
File No. 000-25043




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


201-488-6400


(Registrant's
telephone number, including area code)









(Former
name, former address and former fiscal year, if changed since last
report)




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 x No o





Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate website, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such
files).     Yes o No o





Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
definitions of “large accelerated filer”, “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act. (Check one):




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




Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes Non-Accelerated Filero No x





As of
June 9, 2009, the number of shares of beneficial interest outstanding was
6,942,159.
















FIRST REAL ESTATE INVESTMENT
TRUST OF NEW JERSEY











INDEX








Part I:
                Financial InformationPageItem 1:
                Unaudited Condensed Consolidated Financial
      Statementsa.)
                Condensed Consolidated Balance Sheets as at April 30, 2009 and
      October 31, 2008;
                3b.)
                Condensed Consolidated Statements of Income for the Six and
      Three Months Ended April 30, 2009 and 2008;
                4c.)
                Condensed Consolidated Statement of Shareholders’ Equity as
      at April 30, 2009
                5d.)
                Condensed Consolidated Statements of Cash Flows for the Six
      Months Ended April 30, 2009 and 2008;
                6e.)
                Notes to Condensed Consolidated Financial
      Statements.
                7Item 2:
                Management’s Discussion and Analysis of Financial Condition and
      Results of Operations
                10Item 3:
                Quantitative and Qualitative Disclosures About Market
      Risk
                19Item 4:
                Controls and Procedures
                19Part II:
                Other InformationItem 1A:
                Risk Factors
                19Item 2:
                Unregistered Sales of Equity Securities and Use of
      Proceeds
                19Item 4:
                Submission of Matters to a Vote of Security
      Holders
                20Item 6:
                Exhibits
                20Signatures
                
                21





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Part I:  Financial Information





Item 1:  Unaudited Condensed Consolidated Financial
Statements




FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND
      SUBSIDIARIESCONDENSED
      CONSOLIDATED BALANCE SHEETS(Unaudited)
                                                            
                                                            
                                                            (Audited)April
      30,
                                                            
                                                            
                                                            October
      31,2009
                                                            
                                                            
                                                            2008(In
      Thousands of Dollars)ASSETSReal
      estate, at cost, net of accumulated depreciation
                                                            
                                                            $
                                                            207,575
                                                            
                                                            
                                                            $
                                                            208,955Construction
      in progress
                                                            
                                                            
                                                            11,567
                                                            
                                                            
                                                            
                                                            8,058Cash
      and cash equivalents
                                                            
                                                            
                                                            7,461
                                                            
                                                            
                                                            
                                                            8,192Tenants'
      security accounts
                                                            
                                                            
                                                            2,266
                                                            
                                                            
                                                            
                                                            2,377Sundry
      receivables
                                                            
                                                            
                                                            4,349
                                                            
                                                            
                                                            
                                                            4,371Secured
      loans receivable
                                                            
                                                            
                                                            3,326
                                                            
                                                            
                                                            
                                                            3,326Prepaid
      expenses and other assets
                                                            
                                                            
                                                            2,523
                                                            
                                                            
                                                            
                                                            2,952Acquired
      over market leases and in-place lease costs
                                                            
                                                            
                                                            766
                                                            
                                                            
                                                            
                                                            865Deferred
      charges, net
                                                            
                                                            
                                                            2,608
                                                            
                                                            
                                                            
                                                            2,660Totals
                                                            
                                                            $
                                                            242,441
                                                            
                                                            
                                                            $
                                                            241,756LIABILITIES AND
      SHAREHOLDERS' EQUITYLiabilities:Mortgages
      payable
                                                            
                                                            $
                                                            192,893
                                                            
                                                            
                                                            $
                                                            192,352Accounts
      payable and accrued expenses
                                                            
                                                            
                                                            6,033
                                                            
                                                            
                                                            
                                                            4,014Dividends
      payable
                                                            
                                                            
                                                            2,083
                                                            
                                                            
                                                            
                                                            2,084Tenants'
      security deposits
                                                            
                                                            
                                                            2,994
                                                            
                                                            
                                                            
                                                            3,061Acquired
      below market value leases and deferred revenue
                                                            
                                                            
                                                            3,202
                                                            
                                                            
                                                            
                                                            3,485Total
      liabilities
                                                            
                                                            
                                                            207,205
                                                            
                                                            
                                                            
                                                            204,996Minority
      interest
                                                            
                                                            
                                                            13,294
                                                            
                                                            
                                                            
                                                            13,199Commitments
      and contingenciesShareholders'
      equity:Shares
      of beneficial interest without par value:8,000,000
      shares authorized;6,993,152
      and 6,993,152 shares issued and outstanding
                                                            
                                                            
                                                            24,969
                                                            
                                                            
                                                            
                                                            24,969Treasury
      stock, at cost: 50,920 and 46,720 shares
                                                            
                                                            
                                                            (1,134
                                                            )
                                                            
                                                            
                                                            (1,075
                                                            )Dividends
      in excess of net income
                                                            
                                                            
                                                            (1,893
                                                            )
                                                            
                                                            
                                                            (333
                                                            )Total
      shareholders' equity
                                                            
                                                            
                                                            21,942
                                                            
                                                            
                                                            
                                                            23,561Totals
                                                            
                                                            $
                                                            242,441
                                                            
                                                            
                                                            $
                                                            241,756See
      Notes to Condensed Consolidated Financial Statements.


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FIRST
      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND
      SUBSIDIARIESCONDENSED
      CONSOLIDATED STATEMENTS OF INCOMESIX
      AND THREE MONTHS ENDED APRIL 30, 2009 AND 2008(Unaudited)Six
      Months Ended
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    Three
      Months EndedApril
      30,
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    April
      30,2009
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2008
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2009
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2008(In
      Thousands, Except Per Share Amounts)Revenue:Rental
      income
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    18,391
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    18,064
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    9,200
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    9,084Reimbursements
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2,641
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2,456
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    1,236
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    1,071Sundry
      income
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    287
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    186
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    134
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    94Totals
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    21,319
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    20,706
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    10,570
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    10,249Expenses:Operating
      expenses
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    5,749
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    5,685
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    3,049
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2,760Management
      fees
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    934
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    916
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    471
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    460Real
      estate taxes
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    3,184
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2,891
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    1,592
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    1,445Depreciation
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2,937
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    2,674
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    1,463
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    1,336Totals
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    12,804
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    12,166
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,575
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,001Operating
      income
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    8,515
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    8,540
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    3,995
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    4,248Investment
      income
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    130
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    313
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    51
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    154Interest
      expense including amortizationof
      deferred financing costs
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (5,381
                                                                                                                                    )
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (5,818
                                                                                                                                    )
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (2,666
                                                                                                                                    )
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (2,885
                                                                                                                                    )Minority
      interest
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (658
                                                                                                                                    )
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (395
                                                                                                                                    )
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (295
                                                                                                                                    )
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    (280
                                                                                                                                    )Net
      income
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    2,606
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    2,640
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    1,085
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    1,237Earnings
      per share:Basic
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.38
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.39
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.16
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.18Diluted
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.38
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.38
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.16
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    $
                                                                                                                                    0.18Weighted
      average shares outstanding:Basic
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,945
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,781
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,942
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,799Diluted
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,945
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,894
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,942
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    
                                                                                                                                    6,911See
      Notes to Condensed Consolidated Financial Statements.





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FIRST
      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND
SUBSIDIARIESCONDENSED
      CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITYShares
      of
                                                                                          Beneficial
                                                                                          Interest
                                                                                        
                                                                                        
                                                                                        Treasury
                                                                                          Shares
      at
                                                                                          Cost
                                                                                        
                                                                                        
                                                                                        Dividends
      in
                                                                                          Excess
      of Net
                                                                                          Income
                                                                                        
                                                                                        
                                                                                        Total
                                                                                          Shareholders'
                                                                                          Equity(In
      Thousands of Dollars)Balance
      at October 31, 2008
                                                                                        
                                                                                        $
                                                                                        24,969
                                                                                        
                                                                                        
                                                                                        $
                                                                                        (1,075
                                                                                        )
                                                                                        
                                                                                        $
                                                                                        (333
                                                                                        )
                                                                                        
                                                                                        $
                                                                                        23,561Treasury
      shares
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        (59
                                                                                        )
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        (59
                                                                                        )Net
      income
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        2,606
                                                                                        
                                                                                        
                                                                                        
                                                                                        2,606Dividends
      declared
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        
                                                                                        (4,166
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (4,166
                                                                                        )Balance
      at April 30, 2009 (Unaudited)
                                                                                        
                                                                                        $
                                                                                        24,969
                                                                                        
                                                                                        
                                                                                        $
                                                                                        (1,134
                                                                                        )
                                                                                        
                                                                                        $
                                                                                        (1,893
                                                                                        )
                                                                                        
                                                                                        $
                                                                                        21,942See
      Notes to Condensed Consolidated Financial Statements.








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FIRST
      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND
      SUBSIDIARIESCONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWSSIX
      MONTHS ENDED APRIL 30, 2009 AND 2008(Unaudited)Six
      Months EndedApril
      30,2009
                                                                                        
                                                                                        
                                                                                        2008(In
      Thousands of Dollars)Operating
      activities:Net
      income
                                                                                        
                                                                                        $
                                                                                        2,606
                                                                                        
                                                                                        
                                                                                        $
                                                                                        2,640Adjustments
      to reconcile net income to net cash provided byoperating
      activities:Depreciation
                                                                                        
                                                                                        
                                                                                        2,937
                                                                                        
                                                                                        
                                                                                        
                                                                                        2,674Amortization
                                                                                        
                                                                                        
                                                                                        232
                                                                                        
                                                                                        
                                                                                        
                                                                                        381Net
      amortization of acquired leases
                                                                                        
                                                                                        
                                                                                        18
                                                                                        
                                                                                        
                                                                                        
                                                                                        (48
                                                                                        )Deferred
      revenue
                                                                                        
                                                                                        
                                                                                        (237
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (520
                                                                                        )Minority
      interest
                                                                                        
                                                                                        
                                                                                        658
                                                                                        
                                                                                        
                                                                                        
                                                                                        395Changes
      in operating assets and liabilities:Tenants'
      security accounts
                                                                                        
                                                                                        
                                                                                        111
                                                                                        
                                                                                        
                                                                                        
                                                                                        (41
                                                                                        )Sundry
      receivables, prepaid expenses and other assets
                                                                                        
                                                                                        
                                                                                        276
                                                                                        
                                                                                        
                                                                                        
                                                                                        931Accounts
      payable, accrued expenses and other liabilities
                                                                                        
                                                                                        
                                                                                        615
                                                                                        
                                                                                        
                                                                                        
                                                                                        1,051Tenants'
      security deposits
                                                                                        
                                                                                        
                                                                                        (67
                                                                                        )
                                                                                        
                                                                                        
                                                                                        9Net
      cash provided by operating activities
                                                                                        
                                                                                        
                                                                                        7,149
                                                                                        
                                                                                        
                                                                                        
                                                                                        7,472Investing
      activities:Capital
      improvements - existing properties
                                                                                        
                                                                                        
                                                                                        (1,048
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (2,058
                                                                                        )Construction
      and pre development costs
                                                                                        
                                                                                        
                                                                                        (2,519
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (4,605
                                                                                        )Net
      cash used in investing activities
                                                                                        
                                                                                        
                                                                                        (3,567
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (6,663
                                                                                        )Financing
      activities:Repayment
      of mortgages
                                                                                        
                                                                                        
                                                                                        (1,160
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (6,995
                                                                                        )Proceeds
      from mortgages and construction loans
                                                                                        
                                                                                        
                                                                                        1,628
                                                                                        
                                                                                        
                                                                                        
                                                                                        10,219Deferred
      financing costs
                                                                                        
                                                                                        
                                                                                        7
                                                                                        
                                                                                        
                                                                                        
                                                                                        (283
                                                                                        )Proceeds
      from exercise of stock options
                                                                                        
                                                                                        
                                                                                        -
                                                                                        
                                                                                        
                                                                                        
                                                                                        454Repurchase
      of Company stock-Treasury shares
                                                                                        
                                                                                        
                                                                                        (59
                                                                                        )
                                                                                        
                                                                                        
                                                                                        -Dividends
      paid
                                                                                        
                                                                                        
                                                                                        (4,166
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (4,738
                                                                                        )Distribution
      to minority interest
                                                                                        
                                                                                        
                                                                                        (563
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (595
                                                                                        )Net
      cash used in financing activities
                                                                                        
                                                                                        
                                                                                        (4,313
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (1,938
                                                                                        )Net
      decrease in cash and cash equivalents
                                                                                        
                                                                                        
                                                                                        (731
                                                                                        )
                                                                                        
                                                                                        
                                                                                        (1,129
                                                                                        )Cash
      and cash equivalents, beginning of period
                                                                                        
                                                                                        
                                                                                        8,192
                                                                                        
                                                                                        
                                                                                        
                                                                                        12,740Cash
      and cash equivalents, end of period
                                                                                        
                                                                                        $
                                                                                        7,461
                                                                                        
                                                                                        
                                                                                        $
                                                                                        11,611Supplemental
      disclosure of cash flow data:Interest
      paid, including capitalized construction period interestof
      $87 and $157 in fiscal 2009 and 2008, respectively.
                                                                                        
                                                                                        $
                                                                                        5,205
                                                                                        
                                                                                        
                                                                                        $
                                                                                        5,720Income
      taxes paid
                                                                                        
                                                                                        $
                                                                                        -
                                                                                        
                                                                                        
                                                                                        $
                                                                                        10Supplemental
      schedule of non cash financing activities:Accrued
      capital expenditures, construction costs, pre-development costs and
      interest
                                                                                        
                                                                                        $
                                                                                        1,477
                                                                                        
                                                                                        
                                                                                        $
                                                                                        774Dividends
      declared but not paid
                                                                                        
                                                                                        $
                                                                                        2,083
                                                                                        
                                                                                        
                                                                                        $
                                                                                        2,046See
      Notes to Condensed Consolidated Financial Statements.





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FIRST
REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND
SUBSIDIARIES


NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


(Unaudited)











Note 1 -
Basis of presentation:




The
accompanying condensed consolidated financial statements have been prepared
without audit, in accordance with accounting principles generally accepted in
the United States of America (“GAAP”) for interim financial statements and
pursuant to the rules of the Securities and Exchange Commission (“SEC”).
Accordingly, certain information and footnotes required by GAAP for complete
financial statements have been omitted. It is the opinion of management that all
adjustments considered necessary for a fair presentation have been included, and
that all such adjustments are of a normal recurring nature.




The
consolidated results of operations for the six and three months ended April 30,
2009 are not necessarily indicative of the results to be expected for the full
year. The unaudited condensed consolidated financial statements should be read
in conjunction with the consolidated financial statements and related notes
included in the Annual Report on Form 10-K for the year ended October 31, 2008
of First Real Estate Investment Trust of New Jersey (“FREIT”).





Note 2 -
Earnings per share:




Basic
earnings per share is calculated by dividing net income by the weighted average
number of shares outstanding during each period (denominator). 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
shares that would have been outstanding if all potentially dilutive shares, such
as those issuable upon the exercise of stock options and warrants, were issued
during the period.




In
computing diluted earnings per share for the six and three month periods ended
April 30, 2009 and 2008, the assumed exercise of all of FREIT’s outstanding
stock options, adjusted for application of the treasury stock method, would have
increased the weighted average number of shares outstanding as shown in the
table below.




Six
      Months Ended
                                    
                                    
                                    Three
      Months EndedApril
      30,
                                    
                                    
                                    April
      30,2009
                                    
                                    
                                    2008
                                    
                                    
                                    2009
                                    
                                    
                                    2008Basic
      weighted average shares outstanding
                                    
                                    
                                    6,944,915
                                    
                                    
                                    
                                    6,780,740
                                    
                                    
                                    
                                    6,942,232
                                    
                                    
                                    
                                    6,799,219Shares
      arising from assumed exercise of stock options
                                    
                                    
                                    -
                                    
                                    
                                    
                                    113,470
                                    
                                    
                                    
                                    -
                                    
                                    
                                    
                                    111,944Dilutive
      weighted average shares outstanding
                                    
                                    
                                    6,944,915
                                    
                                    
                                    
                                    6,894,210
                                    
                                    
                                    
                                    6,942,232
                                    
                                    
                                    
                                    6,911,163





Basic and
diluted earnings per share, based on the weighted average number of shares
outstanding during each period, are comprised of ordinary income for the six and
three month periods ended April 30, 2009 and the prior year’s comparable
period.





Note 3 -
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
year ended October 31, 2008.




The chief
operating and decision-making group of FREIT's commercial segment, residential
segment and corporate/other is comprised of FREIT’s Board of
Trustees.




FREIT
assesses and measures segment operating results based on net operating income
("NOI"). NOI, a standard used by real estate professionals, is based on
operating revenue and expenses directly associated with the operations of the
real estate properties, but excludes deferred rents (straight lining), lease
amortization, depreciation, financing costs and other non-operating activity.
NOI is not a measure of operating results or cash flows from operating
activities as measured by GAAP, and is not necessarily indicative of cash
available to fund cash needs and should not be considered an alternative to cash
flows as a measure of liquidity.








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Real
estate rental revenue, operating expenses, NOI and recurring capital
improvements for the reportable segments are summarized below and reconciled to
consolidated net income for the six and three months ended April 30, 2009 and
2008. Asset information is not reported since FREIT does not use this measure to
assess performance.





Six
      Months Ended
                                                      
                                                      
                                                      Three
      Months EndedApril
      30,
                                                      
                                                      
                                                      April
      30,2009
                                                      
                                                      
                                                      2008
                                                      
                                                      
                                                      2009
                                                      
                                                      
                                                      2008($
      in thousands)Real
      estate rental revenue:Commercial
                                                      
                                                      $
                                                      11,491
                                                      
                                                      
                                                      $
                                                      11,039
                                                      
                                                      
                                                      $
                                                      5,675
                                                      
                                                      
                                                      $
                                                      5,415Residential
                                                      
                                                      
                                                      9,742
                                                      
                                                      
                                                      
                                                      9,527
                                                      
                                                      
                                                      
                                                      4,851
                                                      
                                                      
                                                      
                                                      4,765Totals
                                                      
                                                      
                                                      21,233
                                                      
                                                      
                                                      
                                                      20,566
                                                      
                                                      
                                                      
                                                      10,526
                                                      
                                                      
                                                      
                                                      10,180Real
      estate operating expenses:Commercial
                                                      
                                                      
                                                      4,721
                                                      
                                                      
                                                      
                                                      4,412
                                                      
                                                      
                                                      
                                                      2,414
                                                      
                                                      
                                                      
                                                      2,121Residential
                                                      
                                                      
                                                      4,266
                                                      
                                                      
                                                      
                                                      4,270
                                                      
                                                      
                                                      
                                                      2,232
                                                      
                                                      
                                                      
                                                      2,124Totals
                                                      
                                                      
                                                      8,987
                                                      
                                                      
                                                      
                                                      8,682
                                                      
                                                      
                                                      
                                                      4,646
                                                      
                                                      
                                                      
                                                      4,245Net
      operating income:Commercial
                                                      
                                                      
                                                      6,770
                                                      
                                                      
                                                      
                                                      6,627
                                                      
                                                      
                                                      
                                                      3,261
                                                      
                                                      
                                                      
                                                      3,294Residential
                                                      
                                                      
                                                      5,476
                                                      
                                                      
                                                      
                                                      5,257
                                                      
                                                      
                                                      
                                                      2,619
                                                      
                                                      
                                                      
                                                      2,641Totals
                                                      
                                                      $
                                                      12,246
                                                      
                                                      
                                                      $
                                                      11,884
                                                      
                                                      
                                                      $
                                                      5,880
                                                      
                                                      
                                                      $
                                                      5,935Recurring
      capital improvements-residential
                                                      
                                                      $
                                                      106
                                                      
                                                      
                                                      $
                                                      258
                                                      
                                                      
                                                      $
                                                      27
                                                      
                                                      
                                                      $
                                                      118Reconciliation
      to consolidated net income:Segment
      NOI
                                                      
                                                      $
                                                      12,246
                                                      
                                                      
                                                      $
                                                      11,884
                                                      
                                                      
                                                      $
                                                      5,880
                                                      
                                                      
                                                      $
                                                      5,935Deferred
      rents - straight lining
                                                      
                                                      
                                                      104
                                                      
                                                      
                                                      
                                                      92
                                                      
                                                      
                                                      
                                                      53
                                                      
                                                      
                                                      
                                                      45Amortization
      of acquired leases
                                                      
                                                      
                                                      (18
                                                      )
                                                      
                                                      
                                                      48
                                                      
                                                      
                                                      
                                                      (9
                                                      )
                                                      
                                                      
                                                      24Net
      investment income
                                                      
                                                      
                                                      130
                                                      
                                                      
                                                      
                                                      313
                                                      
                                                      
                                                      
                                                      51
                                                      
                                                      
                                                      
                                                      154Minority
      interest in earnings of subsidiaries
                                                      
                                                      
                                                      (658
                                                      )
                                                      
                                                      
                                                      (395
                                                      )
                                                      
                                                      
                                                      (295
                                                      )
                                                      
                                                      
                                                      (280
                                                      )General
      and administrative expenses
                                                      
                                                      
                                                      (880
                                                      )
                                                      
                                                      
                                                      (810
                                                      )
                                                      
                                                      
                                                      (466
                                                      )
                                                      
                                                      
                                                      (420
                                                      )Depreciation
                                                      
                                                      
                                                      (2,937
                                                      )
                                                      
                                                      
                                                      (2,674
                                                      )
                                                      
                                                      
                                                      (1,463
                                                      )
                                                      
                                                      
                                                      (1,336
                                                      )Financing
      costs
                                                      
                                                      
                                                      (5,381
                                                      )
                                                      
                                                      
                                                      (5,818
                                                      )
                                                      
                                                      
                                                      (2,666
                                                      )
                                                      
                                                      
                                                      (2,885
                                                      )Net
      income
                                                      
                                                      $
                                                      2,606
                                                      
                                                      
                                                      $
                                                      2,640
                                                      
                                                      
                                                      $
                                                      1,085
                                                      
                                                      
                                                      $
                                                      1,237





Note 4 -
Share repurchase program:




On April
9, 2008, FREIT’s Board of Trustees authorized up to $2 million for the
repurchase of FREIT shares. The share repurchase plan provided for the
repurchase of FREIT shares on or before March 31, 2009. Share repurchases under
this program were made from time to time in the open market or through privately
negotiated transactions. As of March 31, 2009, FREIT repurchased 50,920 shares
of common stock at a cost of $1,133,545.




On March
31, 2009, FREIT announced the adoption of a new share repurchase plan to replace
the repurchase plan that expired on March 31, 2009. The Plan will comply with
Rules 10b5-1 and 10b-18 of the Securities Exchange Act of 1934 and provides for
the repurchase of up to $1,000,000 in value of FREIT’s shares for the period
beginning April 14, 2009 through June 30, 2009, subject to certain price
limitations and other conditions established under the Plan. Share repurchases
may be made, from time to time, through privately negotiated transactions or in
the open market. The Plan may be terminated at any time and without prior
notice. Rule 10b5-1 permits the implementation of a written plan for
repurchasing shares of company stock through a repurchasing agent at times when
the issuer is not in possession of material, nonpublic information and allows
issuers adopting such plans to repurchase shares on a regular basis, regardless
of any subsequent material, nonpublic information it receives. UBS Financial
Services, Inc. was engaged as FREIT’s repurchasing agent, pursuant to the terms
and conditions set forth in the share repurchase plan.




As of
April 30, 2009, FREIT repurchased a total of 50,920 shares of common stock at a
cost of $1,133,545, which is reflected in the Shareholders’ Equity section of
FREIT’s condensed consolidated balance sheets.




Subsequent
event: On May 19, 2009, FREIT repurchased an additional 73 shares at a cost of
$1,217 under the new share repurchase plan with UBS.





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Note 5 -
Management agreement, fees and transactions with related party:




Hekemian
& Co., Inc. (“Hekemian”) currently manages all the properties owned by
FREIT, except for The Rotunda, which is managed by an independent third party
management company. The management agreement with Hekemian, effective November
1, 2001, requires the payment of management fees equal to a percentage of rents
collected. Such fees were approximately $862,000, $435,000 and $848,000,
$428,000 for the six and three months ended April 30, 2009 and 2008,
respectively, and have been included in the accompanying condensed consolidated
financial statements. In addition, the management agreement provides for the
payment to Hekemian of leasing commissions, as well as the reimbursement of
operating expenses incurred on behalf of FREIT. Such fees amounted to
approximately $233,000, $86,000 and $255,000, $171,000 for the six and three
months ended April 30, 2009 and 2008, respectively. The management agreement
expires on October 31, 2009, and is automatically renewed for periods of two
years unless either party gives notice of non-renewal.




From time
to time, FREIT engages Hekemian to provide certain additional services, such as
consulting services related to development and financing activities of FREIT.
Separate fee arrangements are negotiated between Hekemian and FREIT with respect
to such additional services. Such fees paid to Hekemian for the six months ended
April 30, 2009 and 2008 were $0 and $30,000, respectively.




Hekemian
is owned by Robert S. Hekemian, Robert S. Hekemian, Jr. and members of their
family. Mr. Robert S. Hekemian, Chairman of the Board, Chief Executive Officer
and a Trustee of FREIT, is the Chairman of the Board and Chief Executive Officer
of Hekemian. Mr. Robert S. Hekemian, Jr, a Trustee of FREIT, is the President of
Hekemian.


























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








Cautionary
      Statement Identifying Important Factors That Could Cause FREIT’s Actual
      Results to Differ From Those
                  Projected
      in Forward Looking Statements.Readers
      of this discussion are advised that the discussion should be read in
      conjunction with the unaudited condensed consolidated financial statements
      of FREIT (including related notes thereto) appearing elsewhere in this
      Form 10-Q, and the consolidated financial statements included in FREIT’s
      most recently filed Form 10-K. Certain statements in this discussion may
      constitute “forward-looking statements” within the meaning of the Private
      Securities Litigation Reform Act of 1995. Forward-looking statements
      reflect FREIT’s current expectations regarding future results of
      operations, economic performance, financial condition and achievements of
      FREIT, and do not relate strictly to historical or current facts. FREIT
      has tried, wherever possible, to identify these forward-looking statements
      by using words such as “believe,” “expect,” “anticipate,” “intend,”
      “plan,” “estimate,” or words of similar meaning.Although
      FREIT believes that the expectations reflected in such forward-looking
      statements are based on reasonable assumptions, such statements are
      subject to risks and uncertainties, which may cause the actual results to
      differ materially from those projected. Such factors include, but are not
      limited to the following: general economic and business conditions, which
      will, among other things, affect demand for rental space, the availability
      of prospective tenants, lease rents, 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.





OVERVIEW




FREIT is
an equity real estate investment trust ("REIT") that owns a portfolio of
residential apartment and commercial properties. Our revenues consist primarily
of fixed rental income from our residential and commercial properties and
additional rent in the form of expense reimbursements derived from our income
producing commercial properties. Our properties are primarily located in
northern New Jersey and Maryland. We acquire existing properties for investment.
We also acquire properties, which we feel have redevelopment potential, and make
changes and capital improvements to these properties. We develop and construct
properties on our vacant land. Our policy is to acquire and develop real
property for long-term investment.




The
global economic and financial crisis:The recession and the bank
liquidity and credit market crisis continue to plague the U.S. and the regional
economies in which we operate. Continued concerns about energy costs, inflation,
the cost and availability of credit, and increasing unemployment have resulted
in an unprecedented lack of confidence by consumers and businesses. It is
expected that this poor economic climate will continue, at least through the
balance of 2009.




This
economic and financial crisis has affected, and will continue to affect FREIT in
a number of ways:




Residential
Properties: While the occupancy at our residential properties remains
high, the effects of the economic recession are being felt. As a result of
higher than normal unemployment in our areas of operations, we are experiencing
rent reductions, a higher number of move-outs and higher than usual incidences
of delinquencies of rental payments, causing us to prudently increase our
allowance for doubtful accounts. We expect these trends to continue through
fiscal 2009 and result in residential revenues that are flat or slightly lower
than during fiscal 2008.




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Commercial
Properties: The current economic recession has reduced consumer spending,
resulting in declining sales and lower profitability to some of our commercial
tenants.  As a result, some tenants have closed their business; some
have been put on relaxed payment plans, or are seeking outright rent relief. As
such, delinquencies have increased, causing us to prudently increase our
allowance for doubtful accounts. To date our tenant fall-out has been minor,
however, we may experience additional fall-out of some smaller tenants, and if
the recession is prolonged, some larger tenants.  We expect re-leasing
of vacated space to take longer and, generally at lower rents that reflect
current economic conditions. We expect our revenues at our commercial properties
to be flat or slightly lower during fiscal 2009 than during fiscal
2008.




Development
Projects and Capital Expenditures:  We have significantly
reduced our capital expenditures during fiscal 2009 compared to prior years, by
concentrating only on those capital expenditures that are absolutely necessary.
We continue to pursue the completion of the development and construction
activities started at our Damascus Shopping Center in Damascus, MD. Because of
reduced demand from residential rental tenants and buyers, curtailed business
expansion, and the current state of the credit markets, no date has been
determined for the commencement of construction at our Rotunda and South
Brunswick projects.




Debt
Financing Availability: The dislocations in the credit markets have
caused significant price volatility and liquidity disruptions. High pricing
spreads and very conservative debt service ratio requirements have made certain
financing unattractive and, in certain instances, unavailable. Additionally,
construction financing for large, mixed use projects is virtually unavailable,
or too costly. As a result of this difficult financing environment and reduced
end user demand (see above), FREIT has not determined a date for the
commencement of construction at its Rotunda Project.




The $22.5
million mortgage loan entered into by Grande Rotunda, LLC for the acquisition of
the Rotunda property is scheduled to come due on July 19, 2009. FREIT is in the
process of negotiating the extension of the loan’s maturity date.




Operating
Cash Flow and Dividend Distributions: FREIT’s cash position remains
strong. We expect that cash provided by operating activities will be adequate to
cover mandatory debt service payments, necessary capital improvements and
dividends necessary to retain qualification as a REIT. Additionally, FREIT has
embarked on a program to reduce operating expenses across the board to increase
cash flow. It is FREIT’s intention to maintain its quarterly dividend at $.30
per share until the economic climate indicates a change is appropriate, but not
less than the level required to maintain its REIT status for Federal income tax
purposes.





SIGNIFICANT
ACCOUNTING POLICIES AND ESTIMATES




Pursuant
to the Securities and Exchange Commission ("SEC") disclosure guidance for
"Critical Accounting Policies," the SEC defines Critical Accounting Policies as
those that require the application of management's most difficult, subjective,
or complex judgments, often because of the need to make estimates about the
effect of matters that are inherently uncertain and may change in subsequent
periods.




Our
discussion and analysis of our financial condition and results of operations are
based upon our consolidated financial statements, the preparation of which takes
into account estimates based on judgments and assumptions that affect certain
amounts and disclosures. Accordingly, actual results could differ from these
estimates. The accounting policies and estimates used, which are outlined in
Note 1 to our Consolidated Financial Statements included in our Annual Report on
Form 10-K for the year ended October 31, 2008, have been applied consistently as
at April 30, 2009 and October 31, 2008, and for the six and three months ended
April 30, 2009 and 2008. We believe that the following accounting policies or
estimates require the application of management's most difficult, subjective, or
complex judgments:




Revenue
Recognition: Base rents, additional rents based on tenants' sales volume and
reimbursement of the tenants' share of certain operating expenses are generally
recognized when due from tenants. The straight-line basis is used to recognize
base rents under leases if they provide for varying rents over the lease terms.
Straight-line rents represent unbilled rents receivable to the extent
straight-line rents exceed current rents billed in accordance with lease
agreements. Before FREIT can recognize revenue, it is required to assess, among
other things, its collectibility. If we incorrectly determine the collectibility
of revenue, our net income and assets could be overstated.




Valuation
of Long-Lived Assets: We periodically assess the carrying value of long-lived
assets whenever we determine that events or changes in circumstances indicate
that their carrying amount may not be recoverable. When FREIT determines that
the carrying value of long-lived assets may be impaired, the measurement of any
impairment is based on a projected discounted cash flow method determined by
FREIT's management. While we believe that our discounted cash flow methods are
reasonable, different assumptions regarding such cash flows may significantly
affect the measurement of impairment.








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RESULTS
OF OPERATIONS





Real
Estate revenue for the six months ended April 30, 2009 (“Current Six Months”)
increased 3.0% to $21,319,000 compared to $20,706,000 for the six months ended
April 30, 2008 (“Prior Six Months”). Real Estate revenue for the three months
ended April 30, 2009 (“Current Quarter”) increased 3.1% to $10,570,000 compared
to $10,249,000 for the three months ended April 30, 2008 (“Prior Year’s
Quarter”).  The increase in real estate revenues was primarily
attributable to higher base rental income at FREIT’s residential and commercial
operations, coupled with slightly higher occupancy levels at some of our
commercial properties (exclusive of the Damascus operation), in addition to
lower operating expenses at some of our residential properties. However, this
increase was slightly offset by a decrease in occupancy levels at our
residential operations.




Net
income for the Current Six Months was $2,606,000 ($0.38 diluted) compared to
$2,640,000 ($0.38 diluted) for the Prior Six Months. Net income for the Current
Quarter was $1,085,000 ($0.16 diluted) compared to $1,237,000 ($0.18 diluted)
for the Prior Year’s Quarter. Refer to the schedule below for a detailed
analysis of the major changes that impacted revenue and net income for the six
and three months ended April 30, 2009 and 2008:




NET
      INCOME COMPONENTSSix
      Months Ended
                                                                                                        
                                                                                                        
                                                                                                        Three
      Months EndedApril
      30,
                                                                                                        
                                                                                                        
                                                                                                        April
      30,2009
                                                                                                        
                                                                                                        
                                                                                                        2008
                                                                                                        
                                                                                                        
                                                                                                        Change
                                                                                                        
                                                                                                        
                                                                                                        2009
                                                                                                        
                                                                                                        
                                                                                                        2008
                                                                                                        
                                                                                                        
                                                                                                        Change($
      in thousands)
                                                                                                        
                                                                                                        
                                                                                                        ($
      in thousands)Income
      from real estate operations:Commercial
      properties
                                                                                                        
                                                                                                        $
                                                                                                        6,856
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        6,767
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        89
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        3,305
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        3,363
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        (58
                                                                                                        )Residential
      properties
                                                                                                        
                                                                                                        
                                                                                                        5,476
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        5,257
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        219
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        2,619
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        2,641
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (22
                                                                                                        )Total
      income from real estate operations
                                                                                                        
                                                                                                        
                                                                                                        12,332
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        12,024
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        308
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        5,924
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        6,004
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (80
                                                                                                        )Financing
      costs:Fixed
      rate mortgages
                                                                                                        
                                                                                                        
                                                                                                        (5,155
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (5,179
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        24
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (2,573
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (2,618
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        45Floating
      rate - Rotunda
                                                                                                        
                                                                                                        
                                                                                                        (226
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (639
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        413
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (93
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (267
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        174Total
      financing costs
                                                                                                        
                                                                                                        
                                                                                                        (5,381
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (5,818
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        437
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (2,666
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (2,885
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        219Investment
      income
                                                                                                        
                                                                                                        
                                                                                                        130
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        313
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (183
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        51
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        154
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (103
                                                                                                        )General
      & administrative expenses:Accounting
      fees
                                                                                                        
                                                                                                        
                                                                                                        (257
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (313
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        56
                                                                                                        
                                                                                                        
                                                                                                        
                                                                                                        (157
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (134
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (23
                                                                                                        )Legal
      & professional fees
                                                                                                        
                                                                                                        
                                                                                                        (82
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (32
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (50
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (32
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (32
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        -Trustee
      fees
                                                                                                        
                                                                                                        
                                                                                                        (264
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (251
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (13
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (140
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (138
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (2
                                                                                                        )Corporate
      expenses
                                                                                                        
                                                                                                        
                                                                                                        (277
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (214
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (63
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (137
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (116
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (21
                                                                                                        )Total
      general & administrative expenses
                                                                                                        
                                                                                                        
                                                                                                        (880
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (810
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (70
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (466
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (420
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (46
                                                                                                        )Minority
      interest in earnings of subsidiaries
                                                                                                        
                                                                                                        
                                                                                                        (658
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (395
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (263
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (295
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (280
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (15
                                                                                                        )Depreciation:Same properties(1)
                                                                                                        
                                                                                                        
                                                                                                        (2,708
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (2,583
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (125
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (1,347
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (1,291
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (56
                                                                                                        )Damascus
      center-phase I becoming operational in June 2008
                                                                                                        
                                                                                                        
                                                                                                        (229
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (91
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (138
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (116
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (45
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (71
                                                                                                        )Total
      depreciation
                                                                                                        
                                                                                                        
                                                                                                        (2,937
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (2,674
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (263
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (1,463
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (1,336
                                                                                                        )
                                                                                                        
                                                                                                        
                                                                                                        (127
                                                                                                        )Net Income
                                                                                                        
                                                                                                        $
                                                                                                        2,606
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        2,640
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        (34
                                                                                                        )
                                                                                                        
                                                                                                        $
                                                                                                        1,085
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        1,237
                                                                                                        
                                                                                                        
                                                                                                        $
                                                                                                        (152
                                                                                                        )(1)
      Properties operated since the beginning of fiscal 2008.




The
consolidated results of operations for the Current Six Months and Current
Quarter are not necessarily indicative of the results to be expected for the
full year.


Page
12
 Back to Index


SEGMENT
INFORMATION




The
following table sets forth comparative net operating income ("NOI") data for
FREIT’s real estate segments and reconciles the NOI to consolidated net income
for the Current Six Months and Current Quarter, as compared to the prior year’s
comparable periods:




Commercial
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Residential
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      CombinedSix
      Months Ended
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Six
      Months Ended
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Six
      Months EndedApril
      30,
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Increase
      (Decrease)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      April
      30,
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Increase
      (Decrease)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      April
      30,2009
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2008
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2009
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2008
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2009
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2008($
      in thousands)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      ($
      in thousands)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      ($
      in thousands)Rental
      income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      8,746
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      8,486
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      260
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      3.1
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      9,559
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      9,438
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      121
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      1.3
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      18,305
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      17,924Reimbursements
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,641
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,456
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      185
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      7.5
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,641
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,456Other
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      104
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      97
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      7
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      7.2
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      183
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      89
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      94
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      105.6
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      287
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      186Total
      revenue
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      11,491
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      11,039
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      452
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4.1
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      9,742
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      9,527
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      215
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2.3
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      21,233
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      20,566Operating
      expenses
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,721
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,412
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      309
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      7.0
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,266
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,270
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (4
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -0.1
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      8,987
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      8,682Net
      operating income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      6,770
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      6,627
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      143
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2.2
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      5,476
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      5,257
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      219
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4.2
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      12,246
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      11,884AverageOccupancy
      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      89.7
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      90.0
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -0.3
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      93.3
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      95.2
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -1.9
                                                                                                                                                                                                                                                                                                                                                                                      %Reconciliation
      to consolidated net income:Deferred
      rents - straight lining
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      104
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      92Amortization
      of acquired leases
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (18
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      48Net
      investment income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      130
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      313General
      and administrative expenses
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (880
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (810
                                                                                                                                                                                                                                                                                                                                                                                      )Depreciation
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (2,937
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (2,674
                                                                                                                                                                                                                                                                                                                                                                                      )Financing
      costs
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (5,381
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (5,818
                                                                                                                                                                                                                                                                                                                                                                                      )Minority
      interest
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (658
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (395
                                                                                                                                                                                                                                                                                                                                                                                      )Net
      income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      2,606
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      2,640Commercial
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Residential
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      CombinedThree
      Months Ended
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Three
      Months Ended
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Three
      Months EndedApril
      30,
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Increase
      (Decrease)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      April
      30,
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      Increase
      (Decrease)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      April
      30,2009
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2008
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2009
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2008
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2009
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2008($
      in thousands)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      ($
      in thousands)
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      ($
      in thousands)Rental
      income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      4,387
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      4,292
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      95
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2.2
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      4,769
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      4,723
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      46
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      1.0
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      9,156
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      9,015Reimbursements
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      1,236
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      1,071
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      165
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      15.4
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      1,236
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      1,071Other
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      52
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      52
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      0.0
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      82
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      42
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      40
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      95.2
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      134
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      94Total
      revenue
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      5,675
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      5,415
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      260
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4.8
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,851
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,765
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      86
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      1.8
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      10,526
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      10,180Operating
      expenses
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,414
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,121
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      293
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      13.8
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,232
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      2,124
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      108
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      5.1
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,646
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      4,245Net
      operating income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      3,261
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      3,294
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      (33
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -1.0
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      2,619
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      2,641
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      (22
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -0.8
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      5,880
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      5,935AverageOccupancy
      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      90.4
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      90.7
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -0.3
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      92.6
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      94.7
                                                                                                                                                                                                                                                                                                                                                                                      %
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      -2.1
                                                                                                                                                                                                                                                                                                                                                                                      %Reconciliation
      to consolidated net income:Deferred
      rents - straight lining
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      53
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      45Amortization
      of acquired leases
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (9
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      24Net
      investment income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      51
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      154General
      and administrative expenses
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (466
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (420
                                                                                                                                                                                                                                                                                                                                                                                      )Depreciation
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (1,463
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (1,336
                                                                                                                                                                                                                                                                                                                                                                                      )Financing
      costs
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (2,666
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (2,885
                                                                                                                                                                                                                                                                                                                                                                                      )Minority
      interest
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (295
                                                                                                                                                                                                                                                                                                                                                                                      )
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      (280
                                                                                                                                                                                                                                                                                                                                                                                      )Net
      income
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      1,085
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                      $
                                                                                                                                                                                                                                                                                                                                                                                      1,237




NOI is
based on operating revenue and expenses directly associated with the operations
of the real estate properties, but excludes deferred rents (straight lining),
lease amortization, depreciation, financing costs and other non-operating
activity. FREIT assesses and measures segment operating results based on NOI.
NOI is not a measure of operating results or cash flow as measured by generally
accepted accounting principles, and is not necessarily indicative of cash
available to fund cash needs and should not be considered an alternative to cash
flows as a measure of liquidity.




Both our
commercial and residential business segments remain profitable. Still, the
modest revenue growth, especially during the Current Quarter, failed to outpace
the increase in operating expenses, causing combined NOI to be slightly under
the Prior Year’s Quarter. The current recession has also impacted FREIT as
described below.








Page
13
 Back to Index


COMMERCIAL
SEGMENT





FREIT’s
commercial properties consist of ten (10) properties totaling approximately
1,127,000 sq. ft. of retail space and 138,000 sq. ft. of office
space.  Seven (7) are multi-tenanted retail or office centers, and one
is a single tenanted store. In addition, FREIT has two parcels of leased land,
from which it receives rental income. One is from a tenant who has built and
operates a bank branch on land FREIT owns in Rockaway, NJ. The other is from a
tenant who intends to build and operate a bank branch on land FREIT owns in
Rochelle Park, NJ.




As
indicated in the table above under the caption Segment Information, total
revenue and NOI from FREIT’s commercial segment for the Current Six months
increased by 4.1% and 2.2% over the comparable prior year’s period. For the
Current Quarter, total revenue also increased by 4.8% over the Prior Year’s
Quarter, however NOI for the Current Quarter decreased by 1.0% over the Prior
Year’s Quarter. The primary reasons for the increase in total revenue and NOI
for the Current Six month period were higher base rental income and higher
occupancy levels at many of our commercial properties (exclusive of the Damascus
operation). The ongoing renovation at our Damascus Shopping Center property
located in Damascus, MD (the “Damascus Center”), caused a temporary decline in
occupancy levels. The average occupancy rate for the Damascus Center decreased
to 45.5% for the Current Six Months, as compared to 52.3% for the Prior Six
Months. On a positive note, the average occupancy rate for the Damascus Center
for the Current Quarter showed signs of improvement with tenants occupying new
space due to the completion of the Phase I construction. (See discussion below).
Average occupancy rates for FREIT’s commercial segment (exclusive of the
Damascus Center) for the Current Six Months was at 95.2%, compared to 94.7% for
the prior year’s period.




The
current economic recession has reduced consumer spending, resulting in declining
sales and lower profitability to some of our commercial tenants.  As a
result, some tenants have closed their business, some have been put on relaxed
payment plans, and some are seeking outright rent relief. Delinquencies have
increased, causing us to prudently increase our allowance for doubtful accounts.
Bad debt expense for the Current Six Months increased by $70,000 to $104,000, as
compared to $34,000 for last year’s comparable period. For the Current Quarter,
bad debt expense was $97,000, compared to $12,000 for the Prior Year’s
Quarter. To date our tenant fall-out has been minor as average occupancy
has declined only 0.3%, however, we may experience additional fall-out of some
smaller tenants, and if the recession is prolonged, some larger
tenants.  We expect re-leasing of vacated space to take longer and,
generally at lower rents that reflect current economic conditions. We expect our
revenues at our commercial properties to be flat or slightly lower during fiscal
2009 than during fiscal 2008.





DEVELOPMENT
ACTIVITIES




A
modernization and expansion is underway at our Damascus Center in Damascus, MD
(owned by our 70% owned affiliate, Damascus Centre, LLC). Total construction
costs are expected to approximate $21.9 million. The building plans incorporate
an expansion of retail space from its current configuration of approximately
140,000 sq. ft. to approximately 150,000 sq. ft., which will be anchored by a
modern 58,000 sq. ft. Safeway supermarket. Construction on Phase I began in June
2007, and was completed in June 2008. Phase I construction costs were
approximately $6.2 million, of which $1.1 million related to tenant
improvements. Phase II, which comprises a new 58,000 sq. ft. Safeway
supermarket, was started in December 2008 and is expected to be completed this
summer. Construction costs for Phase II are expected to approximate $7.3 million
(a substantial portion of these costs are under contract), of which
approximately $3.1 million has been incurred as of April 30, 2009. Total
construction costs will be funded from a $27.3 million construction loan entered
into on February 12, 2008. The construction loan is secured by the shopping
center owned by Damascus Centre, LLC.   This loan will be drawn
upon as needed to fund already expended and future construction costs at the
Damascus Shopping Center. As of April 30, 2009, $6.8 million of this loan was
drawn down to cover construction costs. (See “Liquidity and Capital Resources”
for additional information regarding this loan.) Because of this expansion,
leases for certain tenants have been allowed to expire and not renewed. This has
caused occupancy to decline, on a temporary basis, during the construction
phase.




Development
plans and studies for the expansion and renovation of our Rotunda property in
Baltimore, MD (owned by our 60% owned affiliate Grande Rotunda, LLC) were
completed during Fiscal 2008. The Rotunda property, on an 11.5-acre site,
currently consists of an office building containing 138,000 sq. ft. of office
space and 78,000 sq. ft. of retail space on the lower floor of the main
building. The building plans incorporate an expansion of approximately 180,500
sq. ft. of retail space, approximately 302 residential rental apartments, 56
condominium units and 120 hotel rooms, and structured parking. Development costs
for this project are expected to approximate  $200 million. City
Planning Board approval has been received. As of April 30, 2009, we have
expended approximately $5.3 million for planning and feasibility studies. Due to
the current economic and credit crisis, the start date for the construction has
not yet been determined.








Page
14
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RESIDENTIAL
SEGMENT





FREIT
operates nine (9) multi-family apartment communities totaling 1,075 apartment
units. As indicated in the table above, total revenue from our residential
segment for the Current Six Months increased 2.3% to $9,742,000 and NOI for the
same period is also up 4.2% to $5,476,000. For the Current Quarter, total
revenue increased 1.8% to $4,851,000, however, NOI decreased slightly by 0.8% to
$2,619,000. The primary reason for the increase in total revenue for the Current
Six Months was higher base rental income at the Westwood Hills and The Pierre
Towers properties. In addition to the higher base rental income at Westwood
Hills, the increase in NOI for the Current Six month period was also
attributable to lower operating expenses at both the Westwood Hills and The
Boulders properties. This increase was realized in spite of a decrease in
occupancy levels at our residential properties.




While
average occupancy at our residential properties for the Current Six Months is at
93.3%, the effects of the economic recession are being felt. Year-to-date,
occupancy has fallen 1.9% compared to the Prior Six Months, and declined 2.1%
during the Current Quarter compared to the Prior Year’s Quarter. These declines
are attributable to the higher than normal unemployment in our areas of
operation. Additionally, we are experiencing rent reductions, a higher number of
move-outs, and higher than usual incidences of delinquencies of rental payments.
As with our commercial segment, we have prudently increased our allowance for
doubtful accounts. Bad debt expense for the Current Six Months increased by
$34,000 to $84,000, as compared to $50,000 for last year’s comparable period.
For the Current Quarter, bad debt expense was $70,000, compared to $39,000 for
the Prior Year’s Quarter. We expect these trends to continue through fiscal 2009
and result in residential revenues that are flat or slightly lower than during
fiscal 2008.




Our
residential revenue is principally composed of monthly apartment rental income.
Total rental income is a function of occupancy and monthly apartment rents.
Monthly average residential rents at the end of the Current Six Months and the
Prior Six Month period were $1,557 and $1,547, respectively. A 1% decline in
annual average occupancy, or a 1% decline in average rents from current levels,
results in an annual revenue decline of approximately $201,000 and $183,000,
respectively.




Capital
expenditures: Since all of our apartment communities, with the exception of The
Boulders, were constructed more than 25 years ago, we tend to spend more in any
given year on maintenance and capital improvements than may be spent on newer
properties. A major renovation program is ongoing at The Pierre Towers apartment
complex (“The Pierre”). We are in the process of modernizing, where required,
all apartments and some of the buildings’ mechanical services. This renovation
is expected to cost approximately $3 - $4 million, and apartments are being
renovated as they become temporarily vacant, over the next year. These costs
will be financed from operating cash flow and cash reserves. Through April 30,
2009, we expended approximately $3.6 million in capital improvements at The
Pierre, including approximately $667,000 during the Current Six Month
period.




FINANCING
COSTS




Six
      Months Ended
                                  
                                  
                                  Three
      Months EndedApril
      30,
                                  
                                  
                                  April
      30,2009
                                  
                                  
                                  2008
                                  
                                  
                                  2009
                                  
                                  
                                  2008($
      in thousands)
                                  
                                  
                                  ($
      in thousands)Fixed
      rate mortgages:1st
      MortgagesExisting
                                  
                                  $
                                  4,477
                                  
                                  
                                  $
                                  4,355
                                  
                                  
                                  $
                                  2,230
                                  
                                  
                                  $
                                  1,986New
                                  
                                  
                                  182
                                  
                                  
                                  
                                  70
                                  
                                  
                                  
                                  91
                                  
                                  
                                  
                                  702nd
      MortgagesExisting
                                  
                                  
                                  252
                                  
                                  
                                  
                                  597
                                  
                                  
                                  
                                  126
                                  
                                  
                                  
                                  467Variable
      rate mortgages:Acquisition
      loan-Rotunda
                                  
                                  
                                  294
                                  
                                  
                                  
                                  678
                                  
                                  
                                  
                                  119
                                  
                                  
                                  
                                  286Construction
      loan-Damascus
                                  
                                  
                                  73
                                  
                                  
                                  
                                  19
                                  
                                  
                                  
                                  25
                                  
                                  
                                  
                                  19Other
                                  
                                  
                                  145
                                  
                                  
                                  
                                  115
                                  
                                  
                                  
                                  73
                                  
                                  
                                  
                                  605,423
                                  
                                  
                                  
                                  5,834
                                  
                                  
                                  
                                  2,664
                                  
                                  
                                  
                                  2,888Amortization
      of Mortgage Costs
                                  
                                  
                                  118
                                  
                                  
                                  
                                  141
                                  
                                  
                                  
                                  59
                                  
                                  
                                  
                                  68Total
      Financing Costs
                                  
                                  
                                  5,541
                                  
                                  
                                  
                                  5,975
                                  
                                  
                                  
                                  2,723
                                  
                                  
                                  
                                  2,956Less
      amount capitalized
                                  
                                  
                                  (160
                                  )
                                  
                                  
                                  (157
                                  )
                                  
                                  
                                  (57
                                  )
                                  
                                  
                                  (71
                                  )Financing
      costs expensed
                                  
                                  $
                                  5,381
                                  
                                  
                                  $
                                  5,818
                                  
                                  
                                  $
                                  2,666
                                  
                                  
                                  $
                                  2,885




Total
financing costs before capitalized amounts for the Current Six Months and
Current Quarter decreased 7.3% and 7.9%, over the prior year’s comparable
periods. This decrease was primarily attributable to our $22.5 million
acquisition loan for The Rotunda property, which bears a floating interest rate.
Lower interest rates over the course of the Current Six Month period decreased
the level of interest expense for the Rotunda by approximately $384,000 and
$167,000, to $294,000 and $119,000 for the Current Six Months and Current
Quarter, respectively.








Page
15
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INVESTMENT
INCOME




Investment
income for the Current Six Months and Current Quarter decreased 58% and 67% to
$130,000 and $51,000, respectively, over the comparable prior year’s periods.
Investment income is principally derived from interest earned from cash on
deposit in institutional money market funds and interest earned from secured
loans receivable (loans made to Hekemian employees, including certain members of
the immediate family of Robert S. Hekemian, FREIT CEO and Chairman of the Board
and Robert S. Hekemian, Jr., a trustee of FREIT, for their equity investment in
Grande Rotunda, LLC, a limited liability company, in which FREIT owns a 60%
equity interest and Damascus Centre, LLC, a limited liability company, in which
FREIT owns a 70% equity interest). The decrease in investment income was
primarily attributable to lower interest income on the Company’s investments in
cash and cash equivalents, and lower interest income relative to secured loans
made to Hekemian employees in connection with the sale of equity interests in
the Rotunda and the Damascus Center, due in part to lower interest
rates.




To
protect our cash deposits due to the current banking crisis, we have
repositioned our bank deposits to fall within the insured limits of the FDIC and
the U.S. Treasury Guarantee Program. This necessitated transferring significant
balances from interest bearing deposit accounts to non-interest bearing deposit
accounts, which will result in reduced earnings from interest income for the
foreseeable future.





GENERAL
AND ADMINISTRATIVE EXPENSES (“G & A”)




During
the Current Six Months and Current Quarter, G & A was $880,000 and $466,000,
respectively, as compared to $810,000 and $420,000 for the prior year’s periods.
The increases for the Current Six Month and Current Quarter periods were
primarily attributable to increased legal & professional fees, Trustees’
fees and other Corporate expenses including bank fees and costs incurred in the
development of FREIT’s website.





DEPRECIATION




Depreciation
expense for the Current Six Months and Current Quarter was $2,937,000 and
$1,463,000, respectively, as compared to $2,674,000 and $1,336,000 for the prior
year’s periods.The
increase for the six and three-month periods was primarily attributable to
current renovation and construction projects becoming operational at the
Damascus Shopping Center, The Rotunda, the Westridge Square Shopping Center, and
the Pierre Towers apartments, respectively.





LIQUIDITY
AND CAPITAL RESOURCES




Our
financial condition remains strong. Net cash provided by operating activities
was $7.1 million for the Current Six Months compared to $7.5 million for the
Prior Six Months. We expect that cash provided by operating activities will be
adequate to cover mandatory debt service payments, recurring capital
improvements and dividends necessary to retain qualification as a REIT (90% of
taxable income).




As at
April 30, 2009, we had cash and marketable securities totaling $7.5 million
compared to $8.2 million at October 31, 2008.




Credit
Line: FREIT has an $18 million line of credit provided by the Provident Bank.
The line of credit is for a two year term ending in January 2010, but can be
cancelled by the bank, at its will, at each anniversary date. Draws against the
credit line can be used for general corporate purposes, for property
acquisitions, construction activities, and letters of credit. Draws against the
credit line are secured by mortgages on FREIT’s Franklin Crossing Shopping
Center, Franklin Lakes, NJ, retail space in Glen Rock, NJ, Palisades Manor
Apartments, Palisades Park, NJ, and Grandview Apartments, Hasbrouck Heights, NJ.
Interest rates on draws will be set at the time of each draw for 30, 60, or
90-day periods, based on our choice of the prime rate or at 175 basis points
over the 30, 60, or 90-day LIBOR rates at the time of the draws. The interest
rate on the line of credit has a floor of 4%.




In
connection with its construction activities in Rockaway, NJ, FREIT utilized the
credit line for the issuance of a $384,000 Letter of Credit, which expired on
April 3, 2009. As of April 30, 2009, approximately $18 million was available
under the line of credit.







Page
16
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We are in
the midst of a major redevelopment project at the Damascus Shopping Center, in
Damascus, MD. The total capital required for this project is estimated at $21.9
million. Total construction costs will be funded by a $27.3 million construction
loan entered into on February 12, 2008. The construction loan is secured by the
shopping center owned by Damascus Centre, LLC. This loan will be drawn upon as
needed to fund already expended and future construction costs at the Damascus
Shopping Center.  This loan has a term of forty-eight (48) months,
with one twelve (12) month extension option. FREIT guarantees 30% of the
outstanding principal amount of the loan plus other costs. If the borrower
defaults, Damascus 100, LLC (which owns a 30% equity interest in Damascus
Centre, LLC) has indemnified FREIT for up to 30% of any losses under its
guaranty. Draws against this loan bear interest at the BBA LIBOR daily floating
rate plus 135 basis points. As of April 30, 2009, Damascus drew down $6.8
million of this loan to cover construction costs. We expect this development
project to add to revenues, income, cash flow, and shareholder
value.




We are
planning a major expansion at The Rotunda in Baltimore, MD that will require
capital estimated at $200 million. We expect financing for the Rotunda expansion
will be, for the most part, from mortgage financing, which has not yet been
obtained. Planning and feasibility studies for this project have been
substantially completed. As of April 30, 2009, approximately $5.3 million was
expended during this phase. However, due to the current economic crisis and
liquidity and credit crunch, no date for the commencement of construction has
been determined.




At April
30, 2009, FREIT’s aggregate outstanding mortgage debt was $192.9 million and
bears a weighted average interest rate of 5.22%, and an average life of
approximately 5.12 years. These fixed rate mortgages are subject to amortization
schedules that are longer than the term of the mortgages. As such, balloon
payments (unpaid principal amounts at mortgage due date) for all mortgage debt
will be required as follows:




Fiscal
      Year
                            2009
                            2010
                            2012
                            2013
                            2014
                            2016
                            2017
                            2018
                            2019
                            2022($
      in millions)Mortgage
      "Balloon" Payments
                            $22.5
                            $12.2
                            $6.8
                            $8.0
                            $25.9
                            $24.5
                            $22.0
                            $5.0
                            $28.1
                            $14.4




The
following table shows the estimated fair value and carrying value of our
long-term debt at April 30, 2009 and October 31, 2008:




April
      30,
                    
                    
                    October
      31,($
      in Millions)
                    
                    2009
                    
                    
                    2008Fair
      Value
                    
                    $
                    187.0
                    
                    
                    $
                    196.2Carrying
      Value
                    
                    $
                    192.9
                    
                    
                    $
                    192.4





Fair
values are estimated based on market interest rates at April 30, 2009 and
October 31, 2008 and on discounted cash flow analysis. Changes in assumptions or
estimation methods may significantly affect these fair value
estimates.





FREIT
expects to refinance the individual mortgages with new mortgages when their
terms expire. To this extent we have exposure to interest rate risk. If interest
rates, at the time any individual mortgage note is due, are higher than the
current fixed interest rate, higher debt service may be required, and/or
refinancing proceeds may be less than the amount of mortgage debt being retired.
For example, at April 30, 2009 a 1% interest rate increase would reduce the fair
value of our debt by $8.3 million, and a 1% decrease would increase the fair
value by $9.0 million.




FREIT
also has interest rate exposure on its floating rate loans. Currently, FREIT has
$29.3 million in floating rate loans outstanding, of which $22.5 million relates
to the acquisition loan for The Rotunda and $6.8 million relates to the
construction loan for the Damascus redevelopment project. A 1% rate fluctuation
would impact FREIT’s annual interest cost by approximately
$293,000.




We
believe that the values of our properties will be adequate to command
refinancing proceeds equal to or higher than the mortgage debt to be refinanced.
We continually review our debt levels to determine if additional debt can
prudently be utilized for property acquisition additions to our real estate
portfolio that will increase income and cash flow to our
shareholders.











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FUNDS
FROM OPERATIONS (“FFO”):




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




Funds From Operations
      ("FFO")Six
      Months Ended
                                                        
                                                        
                                                        Three
      Months EndedApril
      30,
                                                        
                                                        
                                                        April
      30,2009
                                                        
                                                        
                                                        2008
                                                        
                                                        
                                                        2009
                                                        
                                                        
                                                        2008($
      in thousands)
                                                        
                                                        
                                                        ($
      in thousands)Net
      income
                                                        
                                                        $
                                                        2,606
                                                        
                                                        
                                                        $
                                                        2,640
                                                        
                                                        
                                                        $
                                                        1,085
                                                        
                                                        
                                                        $
                                                        1,237Depreciation
                                                        
                                                        
                                                        2,937
                                                        
                                                        
                                                        
                                                        2,674
                                                        
                                                        
                                                        
                                                        1,463
                                                        
                                                        
                                                        
                                                        1,336Amortization
      of deferred mortgage costs
                                                        
                                                        
                                                        118
                                                        
                                                        
                                                        
                                                        141
                                                        
                                                        
                                                        
                                                        59
                                                        
                                                        
                                                        
                                                        68Deferred
      rents (Straight lining)
                                                        
                                                        
                                                        (104
                                                        )
                                                        
                                                        
                                                        (92
                                                        )
                                                        
                                                        
                                                        (53
                                                        )
                                                        
                                                        
                                                        (45
                                                        )Amortization
      of acquired leases
                                                        
                                                        
                                                        18
                                                        
                                                        
                                                        
                                                        (48
                                                        )
                                                        
                                                        
                                                        9
                                                        
                                                        
                                                        
                                                        (24
                                                        )Capital
      Improvements - Apartments
                                                        
                                                        
                                                        (106
                                                        )
                                                        
                                                        
                                                        (258
                                                        )
                                                        
                                                        
                                                        (27
                                                        )
                                                        
                                                        
                                                        (118
                                                        )Minority
      interests:Equity
      in earnings of affiliates
                                                        
                                                        
                                                        658
                                                        
                                                        
                                                        
                                                        395
                                                        
                                                        
                                                        
                                                        295
                                                        
                                                        
                                                        
                                                        280Distributions
      to minority interests
                                                        
                                                        
                                                        (563
                                                        )
                                                        
                                                        
                                                        (595
                                                        )
                                                        
                                                        
                                                        (443
                                                        )
                                                        
                                                        
                                                        (268
                                                        )FFO
                                                        
                                                        $
                                                        5,564
                                                        
                                                        
                                                        $
                                                        4,857
                                                        
                                                        
                                                        $
                                                        2,388
                                                        
                                                        
                                                        $
                                                        2,466Per
      Share - Basic
                                                        
                                                        $
                                                        0.80
                                                        
                                                        
                                                        $
                                                        0.72
                                                        
                                                        
                                                        $
                                                        0.34
                                                        
                                                        
                                                        $
                                                        0.36Per
      Share - Diluted
                                                        
                                                        $
                                                        0.80
                                                        
                                                        
                                                        $
                                                        0.70
                                                        
                                                        
                                                        $
                                                        0.34
                                                        
                                                        
                                                        $
                                                        0.36Weighted
      Average Shares Outstanding:Basic
                                                        
                                                        
                                                        6,945
                                                        
                                                        
                                                        
                                                        6,781
                                                        
                                                        
                                                        
                                                        6,942
                                                        
                                                        
                                                        
                                                        6,799Diluted
                                                        
                                                        
                                                        6,945
                                                        
                                                        
                                                        
                                                        6,894
                                                        
                                                        
                                                        
                                                        6,942
                                                        
                                                        
                                                        
                                                        6,911




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





INFLATION


Inflation
can impact the financial performance of FREIT in various ways. Our commercial
tenant leases normally provide that the tenants bear all or a portion of most
operating expenses, which can reduce the impact of inflationary increases on
FREIT. Apartment leases are normally for a one-year term, which may allow us to
seek increased rents as leases renew or when new tenants are obtained, subject
to prevailing market conditions.











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Item
3: Quantitative and Qualitative Disclosures About Market
Risk




See
“Residential Segment” and “Liquidity and Capital Resources” under Item 2 above
for a detailed discussion of FREIT’s quantitative and qualitative market risk
disclosures.





Item
4: Controls and Procedures




At the
end of the period covered by this report, we carried out an evaluation of the
effectiveness of the design and operation of FREIT’s disclosure controls and
procedures. This evaluation was carried out under the supervision and with
participation of FREIT’s management, including FREIT’s Chairman and Chief
Executive Officer and Chief Financial Officer, who concluded that FREIT’s
disclosure controls and procedures are effective. There has been no change in
FREIT’s internal control over financial reporting during the first six months of
fiscal 2009 that has materially affected, or is reasonably likely to materially
affect, FREIT’s internal control over financial reporting.




Disclosure
controls and procedures are controls and other procedures that are designed to
ensure that information required to be disclosed in FREIT’s reports filed or
submitted under the Exchange Act is recorded, processed, summarized, and
reported, within the time periods specified in the SEC’s rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in
FREIT’s reports filed under the Exchange Act is accumulated and communicated to
management, including FREIT’s Chief Executive Officer and Chief Financial
Officer as appropriate, to allow timely decisions regarding required
disclosure.





Part
II:  Other Information





Item
1A:  Risk Factors




There
were no material changes in any risk factors previously disclosed in the
Company’s Annual Report on Form 10-K for the year ended October 31, 2008, that
was filed with the Securities and Exchange Commission on January 14,
2009.





Item
2:  Unregistered Sales of Equity Securities and Use of
Proceeds




Information
regarding FREIT’s share repurchase program for the three months ended April 30,
2009 is as follows:




Issuer
      Purchases of Equity Securities (1)(2)(3)(4)(5)Period
                                            Total
      Number of Shares Purchased
                                            Average
      Price Paid Per Share
                                            Total
      Number of Shares Purchased as Part of Publicly Announced
      Program
                                            Approximate
      Dollar Value of Shares that May Yet Be Purchased Under the
      ProgramFebruary
      1, 2009 through February 28, 2009
                                            4,200
                                            $14.00
                                            4,200
                                            $866,455March
      1, 2009 through March 31, 2009
                                            -
                                            -
                                            -
                                            $866,455April
      1, 2009 through April 30, 2009
                                            -
                                            -
                                            -
                                            $1,000,000Total
                                            4,200
                                            $14.00
                                            4,200
                                            $1,000,000




(1)
            On
      April 9, 2008, FREIT’s Board of Trustees authorized up to $2 million for
      the repurchase of FREIT’s shares of beneficial interest. The share
      repurchase plan provided for the repurchase of FREIT shares on or before
      March 31, 2009.


(2)
            Share
      repurchases under this program were made from time to time in the open
      market or in privately negotiated
transactions.


(3)
            As
      of March 31, 2009, FREIT repurchased 50,920 shares at a cost of
      $1,133,545.


(4)
            On
      March 31, 2009, FREIT announced the adoption of a new share repurchase
      plan to replace the repurchase plan that expired on March 31, 2009. The
      Plan will comply with Rules 10b5-1 and 10b-18 of the Securities Exchange
      Act of 1934 and provides for the repurchase of up to $1,000,000 in value
      of FREIT’s shares for the period beginning April 14, 2009 through June 30,
      2009, subject to certain price limitation and other conditions established
      under the Plan.  Share repurchases may be made, from time to
      time, through privately negotiated transactions or in the open
      market.  The Plan may be terminated at any time and without
      prior notice. Rule 10b5-1 permits the implementation of a written plan for
      repurchasing shares of company stock through a repurchasing agent at times
      when the issuer is not in possession of material, nonpublic information
      and allows issuers adopting such plans to repurchase shares on a regular
      basis, regardless of any subsequent material, nonpublic information it
      receives. UBS Financial Services, Inc. was engaged as FREIT’s repurchasing
      agent, pursuant to the terms and conditions set forth in the share
      repurchase plan.


(5)
            As of April 30, 2009, FREIT
      repurchased 50,920 shares at a cost of $1,133,545, which is reflected in the
      Shareholders’ Equity section of FREIT’s balance
    sheet.




Subsequent
event: In May 2009, FREIT repurchased 73 shares at a cost of $16.40 per share
under the new share repurchase plan.




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





The
following matters were submitted to a vote of security holders at FREIT’s Annual
Meeting of Shareholders held on April 7, 2009:




Shareholders
re-elected Mr. Donald W. Barney and Mr. Herbert C. Klein, Esq. to serve as
Trustees for a three (3) year term. The balloting for the elections was as
follows:





Donald
      W. Barney
                    Herbert
      C. Klein, EsqVotes
      For
                    6,016,794
                    6,014,179Votes
      Withheld
                    20,266
                    22,881




The other
members of the Board of Trustees are as follows:




Name
                    Term
      ExpiresRobert
      S. Hekemian
                    April
      2011Ronald
      J. Artinian
                    April
      2010Alan
      L. Aufzien
                    April
      2010Robert
      S. Hekemian, Jr.
                    April
      2011David
      F. McBride
                    April
      2011


Item
6: Exhibits





Reference
is made to the Exhibit index below.








Exhibit
      IndexPageExhibit
      31.1 - Section 302 Certification of Chief Executive
Officer
              22Exhibit
      31.2 - Section 302 Certification of Chief Financial
Officer
              23Exhibit
      32.1 - Certification of Chief Executive Officer pursuant to 18 U.S.C.
      Section 1350
              24Exhibit
      32.2 - Certification of Chief Financial Officer pursuant to 18 U.S.C.
      Section 1350
              25





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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 INVESTMENTTRUST OF NEW
      JERSEY(Registrant)Date:
      June 9, 2009/s/
      Robert S. Hekemian(Signature)Robert
      S. HekemianChairman
      of the Board and Chief Executive Officer(Principal
      Executive Officer)/s/
      Donald W. Barney(Signature)Donald
      W. BarneyPresident,
      Treasurer and Chief Financial Officer(Principal
      Financial/Accounting Officer)
 Page 21