**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**(Mark      One)**

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

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

| New                Jersey                 | 22-1697095                         |
|------------------------------------------------|------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer    |
| incorporation                or organization)  | Identification                No.) |

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

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

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

**INDEX**

| Part                  I: Financial Information |                     | Page                                                                                                                     |
|------------------------------------------------|--------------------------|--------------------------------------------------------------------------------------------------------------------------|
|                                           |                     |                                                                                                                     |   |   |
|                                           | Item                  1: | Unaudited                  Condensed Consolidated Financial Statements                                                   |   |   |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     | a.)                                                                                                                      | Condensed                  Consolidated Balance Sheets as at January 31, 2006                  and October 31, 2005; |   | 3 |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     | b.)                                                                                                                      | Condensed                  Consolidated Statements of Income, Comprehensive                  Income and Undistributed Earnings for the Three Months Ended January                  31,                  2006 and 2005; |   | 4 |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     | c.)                                                                                                                      | Condensed                  Consolidated Statements of Cash Flows for the                  Three Months Ended January 31, 2006 and 2005; |   | 5 |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     | d.)                                                                                                                      | Notes                  to Condensed Consolidated Financial Statements. |   | 6 |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           | Item                  2: | Management's                  Discussion and Analysis of Financial Condition                  and Results of Operations. |   | 10 |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           | Item                  3: | Quantitative                  and Qualitative Disclosures About Market                  Risk.                            |   | 19 |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           | Item                  4: | Controls                  and Procedures.                                                                                |   | 19 |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     |                                                                                                                     |   |   |   |
| Part                  II: Other Information    |                     | 20                                                                                                                       |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           |                     |                                                                                                                     |   |   |   |
|                                           | Item                  6: | Exhibits                                                                                                                 |   |   |

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| **FIRST                  REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND                  SUBSIDIARIES**                                                                                                             |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED                  BALANCE SHEETS                                                                                                                                                                        |   |
|                                                                                                                                                                                                                |   |   |   |   |   |
|                                                                                                                                                                                                                |   | January                  31, |   | October                  31, |   |
|                                                                                                                                                                                                                |   | 2006 |   | 2005 |   |
|                                                                                                                                                                                                                |   | (In                  Thousands of Dollars) |   |
| ASSETS                                                                                                                                                                                                              |   |
| Real                  estate, at cost, net of accumulated depreciation                                                                                                                                              |   | $ | 189,611 |   | $ | 188,416 |   |
| Construction                  in progress                                                                                                                                                                           |   |   | 8,559 |   |   | 4,770 |   |
| Cash                  and cash equivalents                                                                                                                                                                          |   |   | 6,892 |   |   | 5,672 |   |
| Tenants'                  security accounts                                                                                                                                                                         |   |   | 1,930 |   |   | 1,908 |   |
| Sundry                  receivables                                                                                                                                                                                 |   |   | 4,481 |   |   | 4,460 |   |
| Secured                  loans receivable                                                                                                                                                                           |   |   | 1,658 |   |   | 1,658 |   |
| Prepaid                  expenses and other assets                                                                                                                                                                  |   |   | 4,239 |   |   | 4,198 |   |
| Deferred                  charges, net                                                                                                                                                                              |   |   | 4,500 |   |   | 3,820 |   |
| Interest                  rate swap contract                                                                                                                                                                        |   |   | 101 |   |   | 96 |   |
| Totals                                                                                                                                                                                                              |   | $ | 221,971 |   | $ | 214,998 |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                                                                                                                                                               |
| Liabilities:                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Mortgages                  payable                                                                                                                                                                                  |   | $ | 170,870 |   | $ | 166,874 |   |
| Notes                  payable                                                                                                                                                                                      |   |   | 2,000 |   |   |   |   |
| Accounts                  payable and accrued expenses                                                                                                                                                              |   |   | 6,122 |   |   | 6,288 |   |
| Dividends                  payable                                                                                                                                                                                  |   |   | 1,635 |   |   | 2,916 |   |
| Tenants'                  security deposits                                                                                                                                                                         |   |   | 2,523 |   |   | 2,487 |   |
| Below                  market value leases and deferred revenue                                                                                                                                                     |   |   | 2,505 |   |   | 274 |   |
|                            Total liabilities                                                                                                                           |   |   | 185,655 |   |   | 178,839 |   |
|                                                                                                                                                                                                                |   |   |  |   |   |   |   |
| Minority                  interest                                                                                                                                                                                  |   |   | 7,662 |   |   | 7,585 |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Commitments                  and contingencies                                                                                                                                                                      |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Shareholders'                  equity:                                                                                                                                                                              |   |   |   |   |   |   |   |
| Shares                  of beneficial interest without par value:                                                                                                                                                   |   |   |   |   |   |   |   |
| 8,000,000                  shares authorized;                                                                                                                                                                       |   |   |   |   |   |   |   |
| 6,541,152                  and 6,481,152 shares issued                                                                                                                                                              |   |   |   |   |   |   |   |
| and                  outstanding                                                                                                                                                                                    |   |   | 21,579 |   |   | 21,129 |   |
| Undistributed                  earnings                                                                                                                                                                             |   |   | 6,974 |   |   | 7,349 |   |
| Accumulated                  other comprehensive income                                                                                                                                                             |   |   | 101 |   |   | 96 |   |
|                             Total                  shareholders' equity |   |   | 28,654 |   |   | 28,574 |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| Totals                                                                                                                                                                                                              |   | $ | 221,971 |   | $ | 214,998 |   |
|                                                                                                                                                                                                                |   |   |   |   |   |   |   |
| See                  Notes to Consolidated Financial Statements.                                                                                                                                                    |   |   |   |   |   |   |   |

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| FIRST                  REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND                  SUBSIDIARIES              |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                             |
| CONSOLIDATED                  STATEMENTS OF INCOME, COMPREHENSIVE INCOME AND                                     |
| UNDISTRIBUTED                  EARNINGS                                                                          |
| THREE                  MONTHS ENDED JANUARY 31, 2006 AND 2005                                                    |
|                                                                                                             |   |   |   |   |   |
|                                                                                                             |   | 2006 |   | 2005 |   |
|                                                                                                             |   | (In                  Thousands Of Dollars, |   |
|                                                                                                             |   | Except                  Per Share Amounts) |   |
| Revenue:                                                                                                         |   |   |   |   |   |   |   |
|     Rental                  income                                                           |   | $ | 8,134 |   | $ | 7,098 |   |
|     Reimbursements                                                                           |   |   | 1,341 |   |   | 1,190 |   |
|     Sundry                  income                                                           |   |   | 59 |   |   | 40 |   |
|         Totals                                                           |   |   | 9,534 |   |   | 8,328 |   |
|                                                                                                             |   |   |   |   |   |   |   |
| Expenses:                                                                                                        |   |   |   |   |   |   |   |
|     Operating                  expenses                                                      |   |   | 2,567 |   |   | 1,464 |   |
|     Management                  fees                                                         |   |   | 416 |   |   | 350 |   |
|     Real                  estate taxes                                                       |   |   | 1,369 |   |   | 1,116 |   |
|     Depreciation                                                                             |   |   | 1,130 |   |   | 1,075 |   |
|     Minority                  interest                                                       |   |   | 77 |   |   | 310 |   |
|         Totals                                                           |   |   | 5,559 |   |   | 4,315 |   |
|                                                                                                             |   |   |   |   |   |   |   |
| Operating                  income                                                                                |   |   | 3,975 |   |   | 4,013 |   |
|                                                                                                             |   |   |   |   |   |   |   |
| Investment                  income                                                                               |   |   | 48 |   |   | 65 |   |
| Interest                  expense including amortization                                                         |   |   |   |   |   |   |   |
|                    of deferred financing costs                                                              |   |   | (2,735 | ) |   | (2,518 | ) |
|             Net                  income              |   | $ | 1,288 |   | $ | 1,560 |   |
|                                                                                                             |   |   |   |   |   |   |   |
| Earnings                  per share:                                                                             |   |   |   |   |   |   |   |
|     Basic                                                                                    |   | $ | 0.20 |   | $ | 0.24 |   |
|     Diluted                                                                                  |   |   | 0.19 |   |   | 0.24 |   |
|                                                                                                             |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding:                                                            |   |   |   |   |   |   |   |
|     Basic                                                                                    |   |   | 6,511 |   |   | 6,423 |   |
|     Diluted                                                                                  |   |   | 6,685 |   |   | 6,629 |   |
|                                                                                                             |   |   |   |   |   |   |   |
|                               COMPREHENSIVE INCOME   |   |   |   |   |   |   |   |
| Net                  income                                                                                      |   | $ | 1,288 |   | $ | 1,560 |   |
| Other                  comprehensive income:                                                                     |   |   |   |   |   |   |   |
|     Unrealized                  gain                  on interest                            |   |   |   |   |   |   |   |
|                        rate swap contract                                               |   |   | 5 |   |   | 109 |   |
| Comprehensive                  income                                                                            |   | $ | 1,293 |   | $ | 1,669 |   |
|                                                                                                             |   |   |   |   |   |   |   |
|                               UNDISTRIBUTED EARNINGS |   |   |   |   |   |   |   |
| Balance,                  beginning of period                                                                    |   | $ | 7,349 |   | $ | 10,633 |   |
| Net                  income                                                                                      |   |   | 1,288 |   |   | 1,560 |   |
| Less                  dividends                                                                                  |   |   | (1,663 | ) |   | (1,606 | ) |
| Balance,                  end of period                                                                          |   | $ | 6,974 |   | $ | 10,587 |   |
| Dividends                  per share                                                                             |   | $ | 0.25 |   | $ | 0.25 |   |
|                                                                                                             |   |   |   |   |   |   |   |
| See                  Notes to Consolidated Financial Statements.                                                 |   |   |   |   |   |   |   |

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| **FIRST                    REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND                    SUBSIDIARIES**                                                                      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|  CONSOLIDATED                    STATEMENTS OF CASH FLOWS                                                                                                                   |   |
|  THREE                    MONTHS ENDED JANUARY 31, 2006 AND 2005                                                                                                            |   |
|                                                                                                                                                                             |   | 2006 |   | 2005 |   |
|                                                                                                                                                                             |   | (In                    Thousands of Dollars) |   |
| Operating                    activities:                                                                                                                                         |   |   |   |   |   |   |   |
|     Net                    income                                                                                                                       |   | $ | 1,288 |   | $ | 1,560 |   |
|     Adjustments                    to                    reconcile net income to net cash provided by                                                   |   |   |   |   |   |   |   |
|     operating                    activities:                                                                                                            |   |   |   |   |   |   |   |
|         Depreciation                                                                                                                     |   |   | 1,130 |   |   | 1,075 |   |
|         Amortization                                                                                                                     |   |   | 116 |   |   | 89 |   |
|       Deferred                    revenue                                                                                                          |   |   | (109 | ) |   | (178 | ) |
|         Minority                    interest                                                                                             |   |   | 77 |   |   | 310 |   |
|         Changes                    in operating assets and liabilities:                                                                  |   |   |   |   |   |   |   |
|             Tenants'                    security accounts                                                            |   |   | (22 | ) |   | (41 | ) |
|             Sundry                    receivables, prepaid expenses and other assets                                 |   |   | 32 |   |   | (392 | ) |
|             Accounts                    payable and other liabilities                                                |   |   | (404 | ) |   | (143 | ) |
|             Tenants'                    security deposits                                                            |   |   | 36 |   |   | 52 |   |
|                 Net                    cash provided by operating activities                     |   |   | 2,144 |   |   | 2,332 |   |
| Investing                    activities:                                                                                                                                         |   |   |   |   |   |   |   |
|     Capital                    improvements - existing properties                                                                                       |   |   | (637 | ) |   | (790 | ) |
|     Construction                    -                    new properties                                                                                 |   |   | (3,789 | ) |   |   |   |
|                                                                                                                                                                             |   |   |   |   |   |   |   |
|                     Net                    cash used in investing activities |   |   | (4,426 | ) |   | (790 | ) |
| Financing                    activities:                                                                                                                                         |   |   |   |   |   |   |   |
|     Repayment                    of                    mortgages                                                                                        |   |   | (430 | ) |   | (2,683 | ) |
|     Construction                    and other loan proceeds                                                                                             |   |   | 6,426 |   |   |   |   |
|     Proceeds                    from                    exercise of stock options                                                                       |   |   | 450 |   |   |   |   |
|     Dividends                    paid                                                                                                                   |   |   | (2,944 | ) |   | (3,212 | ) |
|     Distribution                    to                    minority interest                                                                             |   |   | - |   |   | (237 | ) |
|                 Net                    cash provided by (used) in financing activities           |   |   | 3,502 |   |   | (6,132 | ) |
| Net                    increase (decrease) in cash and cash equivalents                                                                                                          |   |   | 1,220 |   |   | (4,590 | ) |
| Cash                    and cash equivalents, beginning of period                                                                                                                |   |   | 5,672 |   |   | 18,843 |   |
| Cash                    and cash equivalents, end of period                                                                                                                      |   | $ | 6,892 |   | $ | 14,253 |   |
|                                                                                                                                                                             |   |   |   |   |   |   |   |
| Supplemental                    disclosure of cash flow data:                                                                                                                    |   |   |   |   |   |   |   |
|     Interest                    paid                                                                                                                    |   | $ | 2,756 |   | $ | 2,518 |   |
|     Income                    taxes paid                                                                                                                |   | $ | 3 |   | $ | 8 |   |
| Supplemental                    schedule of non cash                                                                                                                             |   |   |   |   |   |   |   |
|                      financing activities:                                                                                                                                  |   |   |   |   |   |   |   |
|     Dividends                    declared but not paid                                                                                                  |   | $ | 1,635 |   | $ | 1,606 |   |
|                                                                                                                                                                             |   |   |   |   |   |   |   |
| See                    Notes to Consolidated Financial Statements.                                                                                                               |   |   |   |   |   |   |   |

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NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

|                                                                            |   | Three                Months Ended |      |
|---------------------------------------------------------------------------------|--------|-----------------------------------|-----------|
|                                                                            |   | January                31,        |      |
|                                                                            |   | 2006                              |      | 2005 |   |
| Basic                weighted average                                           |   |                              |      |   |   |
|     shares                outstanding                       |   |                              | 6,511,152 |   |   | 6,423,152 |   |
|                                                                            |   |                              |      |   |   |   |   |
| Shares                arising from assumed                                      |   |                              |      |   |   |   |   |
|     exercise                of                stock options |   |                              | 173,556   |   |   | 206,155 |   |
|                                                                            |   |                              |      |   |   |   |   |
| Dilutive                weighted average shares                                 |   |                              |      |   |   |   |   |
|     outstanding                                             |   |                              | 6,684,708 |   |   | 6,629,307 |   |

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|                                                                               |   | Three                Months Ended        |   |
|------------------------------------------------------------------------------------|--------|------------------------------------------|--------|
|                                                                               |   | January                31,               |   |
|                                                                               |   | 2006                                     |   | 2005 |   |
|                                                                               |   | (In                Thousands of Dollars) |   |
| Real                estate rental revenue:                                         |   |                                     |   |   |   |   |   |
| Commercial                                                                         |   | $                                        | 5,376  |   | $ | 4,410 |   |
| Residential                                                                        |   |                                     | 3,934  |   |   | 3,843 |   |
| Totals                                                                             |   |                                     | 9,310  |   |   | 8,253 |   |
|                                                                               |   |                                     |   |   |   |   |   |
| Real                estate operating expenses:                                     |   |                                     |   |   |   |   |   |
| Commercial                                                                         |   |                                     | 2,076  |   |   | 1,288 |   |
| Residential                                                                        |   |                                     | 2,032  |   |   | 1,415 |   |
| Totals                                                                             |   |                                     | 4,108  |   |   | 2,703 |   |
|                                                                               |   |                                     |   |   |   |   |   |
| Net                operating income:                                               |   |                                     |   |   |   |   |   |
| Commercial                                                                         |   |                                     | 3,300  |   |   | 3,122 |   |
| Residential                                                                        |   |                                     | 1,902  |   |   | 2,428 |   |
| Totals                                                                             |   | $                                        | 5,202  |   | $ | 5,550 |   |
|                                                                               |   |                                     |   |   |   |   |   |
| Recurring                capital improvements-residential                          |   | $                                        | 339    |   | $ | 256 |   |
|                                                                               |   |                                     |   |   |   |   |   |
| Reconciliation                to consolidated net income:                          |   |                                     |   |   |   |   |   |
| Segment                NOI reported above                                          |   | $                                        | 5,202  |   | $ | 5,550 |   |
| Deferred                rents - straight lining                                    |   |                                     | 86     |   |   | 75 |   |
| Amortization                of acquired above and below                            |   |                                     |   |   |   |   |   |
|         market                value leases |   |                                     | 139    |   |   |   |   |
| Net                investment income                                               |   |                                     | 48     |   |   | 65 |   |
| Minority                interest in earnings of                                    |   |                                     |   |   |   |   |   |
|         subsidiaries                       |   |                                     | (77    | ) |   | (310 | ) |
| General                and administrative expenses                                 |   |                                     | (245   | ) |   | (227 | ) |
| Depreciation                                                                       |   |                                     | (1,130 | ) |   | (1,075 | ) |
| Financing                costs                                                     |   |                                     | (2,735 | ) |   | (2,518 | ) |
| Net                income                                                          |   | $                                        | 1,288  |   | $ | 1,560 |   |

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|                               |   | Three                Months Ended   |   |
|------------------------------------|--------|-------------------------------------|--------|
|                               |   | January                31, 2005     |   |
|                               |   | *(thousands,                except* |   |
|                               |   | *per                share amounts)* |   |
|                               |   |                                |   |
| Revenues                           |   | $                                   | 9,284  |   |
| Expenses                           |   |                                | 7,794  |   |
| Net                income          |   | $                                   | 1,490  |   |
|                               |   |                                |   |   |
| Earnings                Per Share: |   |                                |   |   |
| Basic                              |   | $                                   | 0.23   |   |
| Diluted                            |   | $                                   | 0.22   |   |
|                               |   |                                |   |   |
| Basic                Shares        |   |                                | 6,423  |   |
| Diluted                Shares      |   |                                | 6,629  |   |

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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 and the availability of financing;                  adverse changes in FREIT’s real estate markets, including, among other                  things, competition with other real estate owners, risks of real                  estate                  development and acquisitions; governmental actions and initiatives;                  and                  environmental/safety requirements. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

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

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

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

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|                                                                                      |   | Three                Months Ended        |   |     |   |
|-------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|----------|--------|
|                                                                                      |   | January                31,               |   | Increase |   |
|                                                                                      |   | 2006                                     |   | 2005     |   | (decrease) |   |
|                                                                                      |   | (in                thousands of dollars) |   |
| Commercial                revenues:                                                       |   |                                     |   |     |   |   |   |   |   |   |
| Same                properties (1)                                                        |   | $                                        | 4,576  |     | $      | 4,485 |   | $ | 91 |   |
| New                properties                                                             |   |                                     | 1,024  |     |   |   |   |   | 1,024 |   |
| Total                Commercial                                                           |   |                                     | 5,600  |     |   | 4,485 |   |   | 1,115 |   |
| Residential                revenues:                                                      |   |                                     |   |     |   |   |   |   |   |   |
| Same                properties (1)                                                        |   |                                     | 3,934  |     |   | 3,843 |   |   | 91 |   |
| Total                Residential                                                          |   |                                     | 3,934  |     |   | 3,843 |   |   | 91 |   |
|                                                                                      |   |                                     |   |     |   |   |   |   |   |   |
| Total                real estate revenues                                                 |   |                                     | 9,534  |     |   | 8,328 |   |   | 1,206 |   |
|                                                                                      |   |                                     |   |     |   |   |   |   |   |   |
| Investment                income                                                          |   |                                     |   |     |   |   |   |   |   |   |
| and                other                                                                  |   |                                     | 48     |     |   | 65 |   |   | (17 | ) |
|                                                                                      |   |                                     |   |     |   |   |   |   |   |   |
| Total                Revenues                                                             |   | $                                        | 9,582  |     | $      | 8,393 |   | $ | 1,189 |   |
|                                                                                      |   |                                     |   |     |   |   |   |   |   |   |
| (1)                Properties operated since the beginning of fiscal                2005. |

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|                                                     |         |         | **Commercial**                     |        | **Residential**                     |         | **Combined**                       |       |
|----------------------------------------------------------|--------------|--------------|-----------------------------------------|-------------|------------------------------------------|--------------|-----------------------------------------|------------|
|                                                     |         |         | Three                Months Ended  |        |                                     |         | Three                Months Ended  |       |   |   | Three                Months Ended  |   |
|                                                     |         |         | January                31,         |        | Increase                (Decrease)  |         | January                31,         |       | Increase                (Decrease)  |   | January                31,  |   |
|                                                     |         |         | 2006                               |        |  2005                          |         | $                                  |       | %  |   | 2006  |   | 2005  |   | $  |   | %  |   | 2006  |   | 2005  |   |
|                                                     |         |         | (in                thousands)           |        |                                     |         | (in                thousands)           |       |   |   | (in                thousands)  |   |
| Rental              income                               |         |         | $                                       | 3,981       |                                     | $            | 3,174                                   |       | $ | 807 |   |   | *25.4%* |   | $ | 3,889 |   | $ | 3,808 |   | $ | 81 |   |   | *2.1%* |   | $ | 7,870 |   | $ | 6,982 |   |
| Percentage              rent                             |         |         |                                    | 39          |                                     |         | 40                                      |       |   | (1 | ) |   | *-2.5%* |   |   |   |   |   |   |   |   | - |   |   |   |   |   | 39 |   |   | 40 |   |
| Reimbursements                                           |         |         |                                    | 1,341       |                                     |         | 1,191                                   |       |   | 150 |   |   | *12.6%* |   |   |   |   |   |   |   |   | - |   |   |   |   |   | 1341 |   |   | 1,191 |   |
| Other                                                    |         |         |                                    | 15          |                                     |         | 5                                       |       |   | 10 |   |   | *200.0%* |   |   | 45 |   |   | 35 |   |   | 10 |   |   | *28.6%* |   |   | 60 |   |   | 40 |   |
|      Total              Revenue |         |         |                                    | 5,376       |                                     |         | 4,410                                   |       |   | 966 |   |   | *21.9%* |   |   | 3,934 |   |   | 3,843 |   |   | 91 |   |   | *2.4%* |   |   | 9,310 |   |   | 8,253 |   |
|                                                     |         |         |
| Operating              expenses                          |         |         |                                    | 2,076       |                                     |         | 1,288                                   |       |   | 788 |   |   | *61.2%* |   |   | 2,032 |   |   | 1,415 |   |   | 617 |   |   | *43.6%* |   |   | 4,108 |   |   | 2,703 |   |
|                                                     |         |         |
| **Net              operating income**                    | ** **   | ** **   | **$**                                   | **3,300**   | ** **                               | **$**        | **3,122**                               | ** ** | **$** | **178** |   | ** ** | ***5.7%*** | ** ** | **$** | **1,902** | ** ** | **$** | **2,428** | ** ** | **$** | **(526** | **) ** | ** ** | ***-21.7%*** |   | ** ** | **5,202** | ** ** | ** ** | **5,550** | ** ** |
|                                                          |              |              |                                         |             |                                          |              |                                         |            |  |  |  |  |
| Average                                                  |         |         |
| Occupancy              %                                 | *** *** | *** *** | *** ***                            | ***90.8%*** |                                     | *** *** | ***92.6%***                             |       | *** *** |   | *** *** | *** *** | ***-1.8%*** | *** *** | *** *** | ***94.9%*** |   | *** *** | ***94.3%*** |   | *** *** |   | *** *** | *** *** | ***0.6%*** | *** *** | *** *** |   | *** *** | *** *** |   | *** *** |
|                                                          |              |              |                                         |             |                                          |              |                                         |            |  |  |  |  |  |  |  |  |

|        |                                                                                                                                                            |       |       |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|
|        | Reconciliation              to consolidated net income:                                                                                                         |       |       |   |   |   |   |   |   |
|        |       Deferred              rents              - straight lining                                                                  |       |       |   | 86 |   |   | 75 |   |
|   |      Amortization              of above and below market                                                                               |       |       |   |   |   |   |   |   |
|        |           acquired              lease                                                                         |       |       |   | 139 |   |   |   |   |
|        |       Net              investment              income                                                                             |       |       |   | 48 |   |   | 65 |   |
|        |       General              and              administrative expenses                                                               |       |       |   | (245 | ) |   |  (227 | )  |
|        |       Depreciation                                                                                                                |       |       |   | (1,130 | ) |   | (1,075 | ) |
|        |       Financing              costs                                                                                                |       |       |   | (2,735 | ) |   | (2,518 | ) |
|        |       Minority              interest                                                                                              |       |       |   | (77 | ) |   | (310 | ) |
|        | **                      Net              income** | ** ** | ** ** | $ | 1,288 |   | $ | 1,560 |   |

|     |   | **Commercial                  Segment ($000)** |   |
|----------|--------|------------------------------------------------|--------|
|     |   | Commercial                                     |   |   |   | Same |   |
|     |   | Combined                                       |   | Rotunda |   | Properties |   |
|     |   |                                           |   |   |   |   |   |
| Revenues |   | $                                              | 5,376  |   | $ | 867 |   | $ | 4,509 |   |
|     |   |                                           |   |   |   |   |   |   |   |   |
| Expenses |   |                                           | 2,076  |   |   | 606 |   |   | 1,470 |   |
|     |   |                                           |   |   |   |   |   |   |   |   |
| NOI      |   | $                                              | 3,300  |   | $ | 261 |   | $ | 3,039 |   |

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|                                                                                            |   | Three                  Months Ended |   |
|-------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                                            |   | January                  31,        |   |
|                                                                                            |   | 2006                                |   | 2005 |   |
|                                                                                            |   | ($000)                              |   |
|                                                                                            |   |                                |   |   |   |
| **1st                  Mortgages**                                                              |   |                                |   |   |   |   |   |
| Existing                                                                                        |   | $                                   | 2,172  |   | $ | 2,200 |   |
| Prepaid                                                                                         |   |                                |   |   |   | 46 |   |
| New                  (1)                                                                        |   |                                | 329    |   |   |   |   |
| Construction                  Loan (1)                                                          |   |                                | 21     |   |   |   |   |
| **2nd                  Mortgages**                                                              |   |                                |   |   |   |   |   |
| Existing                                                                                        |   |                                | 136    |   |   | 139 |   |
| Other                                                                                           |   |                                | 33     |   |   | 21 |   |
|                                                                                            |   |                                | 2,691  |   |   | 2,406 |   |
| Amortization                  of                                                                |   |                                |   |   |   |   |   |
| Mortgage                  Costs                                                                 |   |                                | 65     |   |   | 45 |   |
| Prepayment                  Fee                                                                 |   |                                |   |   |   | 67 |   |
|                                                                                            |   |                                |   |   |   |   |   |
| Total                  Financing Costs                                                          |   |                                | 2,756  |   |   | 2,518 |   |
|                           Less amount capitalized       |   |                                | (21    | ) |   |    |   |
| Financing                  costs expensed                                                       |   | $                                   | 2,735  |   | $ | 2,518 |   |
|                                                                                            |   |                                |   |   |   |   |   |
| (1)                  Mortgages not in place at beginning of  fiscal                  2005. |

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

|                           |  January                31, | October                31, |   |
|--------------------------------|----------------------------------|----------------------------|--------|
| *(In                Millions)* |                             | 2006                       |   | 2005 |   |
|                           |                             |                       |   |   |   |
| Fair                Value      |                             | $                          | 174.1  |   | $ | 171.9 |   |
| Carrying                Value  |                             | $                          | 170.9  |   | $ | 166.9 |   |

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| **Funds                From Operations ("FFO")**           |   | Quarter                Ended |      |
|------------------------------------------------------------|--------|------------------------------|-----------|
|                                                       |   | January                31,   |      |
|                                                       |   | ($000)                       |      |
|                                                       |   | 2006                         |      | 2005 |   |
| Net                income                                  |   | $                            | 1,288     |   | $ | 1,560 |   |
| Depreciation                                               |   |                         | 1,130     |   |   | 1,075 |   |
| Amortization                of deferred mortgage costs     |   |                         | 65        |   |   | 45 |   |
| Mortgage                prepayment penalty                 |   |                         |      |   |   | 67 |   |
| Deferred                rents (Straight lining)            |   |                         | (86       | ) |   | (75 | ) |
| Amortization                of acquired above and below    |   |                         |      |   |   |   |   |
|                  market value leases                  |   |                         | (139      | ) |   |   |   |
| Capital                Improvements - Apartments recurring |   |                         | (84       | ) |   | (209 | ) |
| Minority                interests:                         |   |                         |      |   |   |   |   |
| Equity                in earnings of affiliates            |   |                         | 77        |   |   | 310 |   |
| Distributions                to minority interests         |   |                         | -         |   |   | (237 | ) |
| **FFO**                                                    |   | **$**                        | **2,251** |   | **$** | **2,536** |   |
|                                                       |   |                         |      |   |   |   |   |
| ***Per                Share - Basic***                     |   | *$*                          | *0.35*    |   | *$* | *0.39* |   |
| ***Per                Share - Diluted***                   |   | *$*                          | *0.34*    |   | *$* | *0.38* |   |
|                                                       |   |                         |      |   |   |   |   |
| **Weighted                Average Shares outstanding:**    |   |                         |      |   |   |   |   |
| *Basic*                                                    |   |                         | 6,511     |   |   | 6,423 |   |
| *Diluted*                                                  |   |                         | 6,685     |   |   | 6,629 |   |

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Item      3:      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Item      4

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Item      6

Exhibit      31.1 Section 302 Certification of Chief Executive      Officer

Exhibit      31.2 Section 302 Certification of Chief Financial      Officer

Exhibit      32.1 Certification of Chief Executive Officer pursuant      to 18 U.S.C. Section 1350

Exhibit      32.2 Certification of Chief Financial Officer pursuant      to 18 U.S.C. Section 1350

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**SIGNATURES**

|                                  | **FIRST                  REAL ESTATE INVESTMENT**                                                                                          |
|---------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                  | **                          TRUST OF NEW JERSEY**                                                  |
|                                  |                                     (Registrant) |
|                                  |                                                                                                                                       |
| Date:                  March 13, 2006 |                                                                                                                                       |
|                                  | /s/                  Robert S. Hekemian                                                                                                    |
|              |                            (Signature)                                                        |
|                                  | Robert                  S. Hekemian                                                                                                        |
|                                  | Chairman                  of the Board and Chief Executive                                                                                 |
|                                  | Officer                                                                                                                                    |
|                                  |                                                                                                                                       |
|                                  |                                                                                                                                       |
|                                  | /s/                  Donald W. Barney                                                                                                      |
|              |                         (Signature)                                                                          |
|                                  | Donald                  W. Barney                                                                                                          |
|                                  | President,                  Treasurer and Chief Financial Officer                                                                          |
|                                  | (Principal                  Financial/Accounting Officer)                                                                                  |