SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 10-Q



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



For Quarter Ended April 30, 1998                     Commission File No. 2-27018


                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
             (exact name of registrant as specified in its charter)


         New Jersey                                               22-1697095
-------------------------------                              -------------------
(State or other Jurisdiction of                              (I.R.S. Employer
Incorporation or Organization)                               Identification No.)


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


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


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


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

                            Yes [ X ]     No [   ]
<PAGE>



                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                                      INDEX


Part I:  Financial Information

         Item 1:  Financial Statements

                  a.)    Balance Sheets for April 30, 1998 and October 31, 1997;

                  b.)    Statements of Income and Undistributed Earnings For Six
                         and Three Months Ended April 30, 1998 and 1997;

                  c.)    Statements of Cash Flows for Six Months Ended
                         April 30, 1998 and 1997;

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

Part II: Other Information

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

         Item 5. Other Information

         Item 6. Exhibits and Reports on Form 8-K


<PAGE>
Disclosure Concerning Forward-Looking Statements

         Certain statements in the "Management's  Discussion and Analysis of the
Results of Operation and Financial  Condition",  and certain of the Notes to the
Registrant's Financial Statements,  in particular Note 6, contain or may contain
information  that is  forward-looking  within the  meaning of Section 27A of the
Securities Act of 1933, as amended (the  "Securities  Act"),  and Section 21E of
the  Securities  Exchange Act of 1934,  as amended  (the  "Exchange  Act").  The
Registrant cautions readers that forward-looking statements,  including, without
limitation,  those relating to the Registant's  liquidity and capital resources,
are  subject to  certain  risks and  uncertainties.  Actual  results  may differ
materially  from those described in the  forward-looking  statements and will be
affected by a variety of risk and factors,  including  without  limitation,  the
Registrant's future financial performance;  the availability of capital; general
market  conditions;   national  and  local  economic  conditions,   particularly
long-term  interest rates;  the terms of federal,  state and local  governmental
regulations that affect the Registrant; and the competitive environment in which
the Registrant operates,  including, the availability of commercial office space
and  residential  units in the  areas  where  the  Registrant's  properties  are
located. In addition, the Registrant's continued  qualification as a real estate
investment  trust  involves  the  application  of highly  technical  and complex
programs of the Internal Revenue Code. The  forward-looking  statements are made
as of the date of this Form 10-Q and the  Registrant  assumes no  obligation  to
update the  forward-looking  statements or to update the reasons  actual results
could differ from those projeced in such forward-looking statements.

 
<PAGE>
<TABLE>
<CAPTION>
                         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                                          BALANCE SHEETS
                               APRIL 30, 1998 AND OCTOBER 31, 1997




                                                                            April     October
                      ASSETS                                              30, 1998    31, 1997
                                                                          -------     -------
                                                                         (Unaudited)(See Note 1)
                                                                              (In Thousands
                                                                               of Dollars)

<S>                                                                       <C>         <C>    
Real estate, at cost, net of accumulated depreciation ...............     $65,092     $53,737
Equipment, at cost, net of accumulated depreciation of $677,000
    and $657,000 ....................................................         185         184
Investment in affiliate .............................................       1,863       1,905
Cash and cash equivalents ...........................................         318         228
Tenants' security accounts ..........................................         757         719
Sundry receivables ..................................................         710         280
Prepaid expenses and other assets ...................................         758       1,470
Deferred charges, net ...............................................       1,175         710
                                                                          -------     -------

           Totals ...................................................     $70,858     $59,233
                                                                          =======     =======

                     LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
    Mortgages payable ...............................................     $48,186     $24,429
    Note payable - bank .............................................                  11,429
    Accounts payable and accrued expenses ...........................         446         409
    Construction liabilities ........................................         118         496
    Dividends payable ...............................................         624       1,326
    Tenants' security deposits ......................................         946         905
    Deferred revenue ................................................          87         255
                                                                          -------     -------
           Total liabilities ........................................      50,407      39,249
                                                                          -------     -------
Commitments and contingencies

Shareholders' equity:
    Shares of beneficial interest without par value; 1,560,000 shares
        authorized;1,559,788 shares issued and outstanding ..........      19,314      19,314
    Undistributed earnings ..........................................       1,137         670
                                                                          -------     -------
           Total shareholders' equity ...............................      20,451      19,984
                                                                          -------     -------

           Totals ...................................................     $70,858     $59,233
                                                                          =======     =======
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>

                     FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                     STATEMENTS OF INCOME AND UNDISTRIBUTED EARNINGS
                    SIX AND THREE MONTHS ENDED APRIL 30, 1998 AND 1997
                                       (Unaudited)

                                               Six  Months              Three Months
                                             Ended April 30,           Ended April 30,
                 INCOME                     1998        1997          1998         1997
                                          -------      -------      -------      -------
                                                   (In Thousands of Dollars,
                                                    Except Per Share Amounts)
<S>                                       <C>          <C>          <C>          <C>    
Revenue:
    Rental income ...................     $ 6,026      $ 4,911      $ 3,108      $ 2,425
    Reimbursements ..................         824          685          441          357
    Equity in income of affiliate ...          78           77           42           46
    Sundry income ...................         102           83           65           42
                                          -------      -------      -------      -------
        Totals ......................       7,030        5,756        3,656        2,870
                                          -------      -------      -------      -------
Expenses:
    Operating expenses ..............       1,518        1,321          794          676
    Management fees .................         273          248          145          127
    Real estate taxes ...............         889          839          447          409
    Interest ........................       1,836        1,313          931          653
    Depreciation ....................         792          646          417          329
                                          -------      -------      -------      -------
        Totals ......................       5,308        4,367        2,734        2,194
                                          -------      -------      -------      -------

Income before state income taxes ....       1,722        1,389          922          676

Provision for state income taxes ....           7            6            3            3
                                          -------      -------      -------      -------

Net income...........................      $1,715      $ 1,383      $   919      $   673
                                          =======      =======      =======      =======

Earnings per share ..................     $  1.10      $   .89      $   .59      $   .43
                                          =======      =======      =======      =======

               UNDISTRIBUTED EARNINGS

Balance, beginning of period ........     $   670      $   670      $   842      $   670
Net income ..........................       1,715        1,383          919          673
Less dividends ......................      (1,248)      (1,092)        (624)        (546)
                                          -------      -------      -------      -------

Balance, end of period ..............     $ 1,137      $   961      $ 1,137      $   797
                                          =======      =======      =======      =======

Dividends per share .................     $   .80      $   .70      $   .40      $   .35
                                          =======      =======      =======      =======
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
                            FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
                                        STATEMENTS OF CASH FLOWS
                                SIX MONTHS ENDED APRIL 30, 1998 AND 1997
                                               (Unaudited)
                                                                                   1998           1997   
                                                                                 --------      -------- 
                                                                                     (In Thousands          
                                                                                      of Dollars)           
<S>                                                                              <C>           <C>          
Operating activities:                                                                                       
    Net income .....................................................             $  1,715      $  1,383     
    Adjustments to reconcile net income to net cash provided by                                             
        operating activities:                                                                               
        Depreciation and amortization ..............................                  852           665     
        Deferred revenue ...........................................                 (168)         (230)    
        Equity in income of affiliate ..............................                  (78)          (77)    
        Changes in operating assets and liabilities:                                                        
           Tenants' security accounts ..............................                  (38)           (9)    
           Sundry receivables, prepaid expenses and other assets ...                  282           515     
           Accounts payable and accrued expenses ...................                   37            82     
           Tenants' security deposits ..............................                   41            17     
                                                                                 --------      --------     
               Net cash provided by operating activities ...........                2,643         2,346     
                                                                                 --------      --------     
Investing activities:                                                                                       
    Capital expenditures ...........................................               (5,026)         (946)    
    Distributions from affiliate ...................................                  120            80     
                                                                                 --------      --------     
               Net cash used in investing activities ...............               (4,906)         (866)    
                                                                                 --------      --------     
Financing activities:                                                                                       
    Dividends paid .................................................               (1,950)       (1,575)    
    Proceeds (repayments) of note payable - bank ...................              (11,429)          675     
    Net proceeds from mortgage refinancing .........................                5,443                   
    Proceeds from mortgage borrowings ..............................               11,100                   
    Deferred mortgage costs ........................................                 (525)         (202)    
    Repayment of mortgages .........................................                 (286)         (274)    
                                                                                 --------      --------     
               Net cash provided by (used in) financing activities .                2,353        (1,376)    
                                                                                 --------      --------     
                                                                                                            
Net increase in cash and cash equivalents ..........................                   90           104     
Cash and cash equivalents, beginning of period .....................                  228           189     
                                                                                 --------      -------- 
Cash and cash equivalents, end of period ...........................             $    318      $    293     
                                                                                 ========      ========     
Supplemental disclosure of cash flow data:                                                                  
    Interest paid ..................................................             $  1,837      $  1,091     
                                                                                 ========      ======== 
Supplemental schedule of noncash investing and financing activities:
    Dividends  declared but not paid  amounted to $624,000 and $546,000 at April
    30, 1998 and 1997.

    During  the six  months  ended  April  30,  1998,  the Trust  completed  its
    acquisition of a 64,000 square foot  commercial  property in Patchogue,  New
    York  for  approximately  $11,000,000,  in  part,  with  the  proceeds  of a
    $7,500,000 mortgage.
</TABLE>
See Notes to Financial Statements.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS


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

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

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

                Basis of presentation:
                    The financial  information  included  herein as at April 30,
                    1998 and for the six and three  months  ended April 30, 1998
                    and 1997 is  unaudited  and,  in the  opinion  of the Trust,
                    reflects  all   adjustments   (which   include  only  normal
                    recurring accruals) necessary for a fair presentation of the
                    financial  position  as of  that  date  and the  results  of
                    operations for those periods. The information in the balance
                    sheet as of October 31,  1997 was  derived  from the Trust's
                    audited annual report for 1997.

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

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

                Cash and cash equivalents:
                    The Trust maintains its cash in bank deposit accounts which,
                    at times,  may exceed  Federally  insured limits.  The Trust
                    considers all highly liquid debt instruments  purchased with
                    a maturity of three  months or less to be cash  equivalents.
                    At October 31, 1997, the Trust had no cash equivalents.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS


Note 1 - Organization and significant accounting policies (concluded):
                Depreciation:
                    Real   estate  and   equipment   are   depreciated   on  the
                    straight-line   method  by  annual   charges  to  operations
                    calculated  to absorb  costs of assets over their  estimated
                    useful lives.

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

                Deferred charges:
                    Deferred  charges  consist  of  mortgage  costs and  leasing
                    commissions.  Deferred  mortgage  costs are amortized on the
                    straight-line  method by annual  charges to operations  over
                    the terms of the mortgages. Deferred leasing commissions are
                    amortized on the straight-line  method over the terms of the
                    applicable leases.

                Advertising:
                    The Trust expenses the cost of advertising and promotions as
                    incurred.  Advertising costs charged to operations  amounted
                    to  approximately  $23,000  and  $13,000  for the six months
                    ended   April   30,   1998  and  1997,   respectively,   and
                    approximately  $9,000 and $8,000 for the three  months ended
                    April 30, 1998 and 1997, respectively.

                Earnings per share:
                    Earnings  per  share  are  computed  based  on the  weighted
                    average number of shares  outstanding.  The weighted average
                    number of shares  outstanding  was 1,559,788 for each of the
                    six and three month periods ended April 30, 1998 and 1997.

                Reclassifications:
                    Certain  amounts in the 1997 financial  statements have been
                    reclassified to conform with the current presentation.


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

                          NOTES TO FINANCIAL STATEMENTS


Note 2 - Investment in affiliate (concluded):
                Summarized  financial  information  of the Affiliate as of April
                30, 1998 and  October 31, 1997 and for the six and three  months
                ended April 30, 1998 and 1997 is as follows:
<TABLE>
<CAPTION>
                                                            April        October
                                                          30, 1998      31, 1997
                                                           -------       -------
                                                             (In Thousands
                                                               of Dollars)
<S>                                                        <C>           <C>    
Balance sheet data:
     Assets:
         Real estate and equipment, net ............       $14,563       $14,696
         Other .....................................           584           551
                                                           -------       -------

             Total assets ..........................       $15,147       $15,247
                                                           =======       =======

     Liabilities and equity:
         Liabilities:
           Mortgage payable ........................       $10,110       $10,192
           Other ...................................           382           295
                                                           -------       -------
               Totals ..............................        10,492        10,487
                                                           -------       -------

         Members' equity:
           Trust ...................................         1,863         1,905
           Others ..................................         2,792         2,855
                                                           -------       -------
               Totals ..............................         4,655         4,760
                                                           -------       -------

               Total liabilities and equity ........       $15,147       $15,247
                                                           =======       =======
<CAPTION>
                                        Six Months Ended       Three Months Ended          
                                            April 30,               April 30,
                                        1998        1997        1998        1997
                                      ------      ------      ------      ------
                                             (In Thousands of Dollars)
<S>                                   <C>         <C>         <C>         <C>   
Income statement data:
     Rental revenue ............      $1,293      $1,246      $  648      $  625
     Rental expenses ...........       1,098       1,055         542         514
                                      ------      ------      ------      ------

     Net income ................      $  195      $  191      $  106      $  111
                                      ======      ======      ======      ======
</TABLE>
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 3 - Real estate:
                Real estate consists of the following:
<TABLE>
<CAPTION>
                                                              Range
                                                            of Estimated        April          October
                                                            Useful Lives       30, 1998       31, 1997
                                                            ------------       --------       --------
                                                                                    (In (Thousands
                                                                                     of Dollars)
<S>                                                         <C>                  <C>            <C>
                    Land                                                         $22,768        $20,244
                    Unimproved land                                                2,308          2,310
                    Apartment buildings                      7-40 years           10,892         10,711
                    Commercial buildings and shopping
                       centers                              15-50 years           39,400         30,328
                    Construction in progress                                       2,478          2,126
                                                                               ---------      ---------
                                                                                  77,846         65,719
                    Less accumulated depreciation                                 12,754         11,982
                                                                                --------       --------

                           Totals                                                $65,092        $53,737
                                                                                 =======        =======
</TABLE>
Note 4 - Mortgages payable:
                Mortgages payable consist of the following:
<TABLE>
<CAPTION>
                                                       April      October
                                                     30, 1998    31, 1997
                                                     --------    --------
                                                         (In Thousands
                                                          of Dollars)
<S>                                                   <C>         <C>    
       Northern Life Insurance Cos. (A) .........     $19,002     $19,123
       Travelers Insurance (B) ..................                   5,181
       National Realty Funding L.C. (B) .........      10,576
       Summit Bank (C) ..........................          78         125
       Summit Bank (D) ..........................       7,465
       Federal Home Loan Mortgage Corporation (E)      11,065
                                                      -------     -------

              Totals ............................     $48,186     $24,429
                                                      =======     =======
</TABLE>
       (A)  The  mortgage  is  payable  in  monthly   installments  of  $152,153
            including  interest  at 8.31%  through  June 2007 at which  time the
            outstanding  balance is due.  The  mortgage is secured by a shopping
            center  in   Frederick,   Maryland   having  a  net  book  value  of
            approximately $24,819,000.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 4 - Mortgages payable (concluded):
                    (B)    On  January 9, 1998,  the Trust  repaid the  existing
                           mortgage on the Westwood,  New Jersey shopping center
                           utilizing  proceeds from a new mortgage in the amount
                           of $10,600,000  with National Realty Funding L.C. The
                           new  mortgage is payable in monthly  installments  of
                           $73,248 including  interest at 7.38% through February
                           2013 at which  time the  outstanding  balance is due.
                           The  mortgage  is  secured  by a  shopping  center in
                           Westwood,  New  Jersey  having  a net  book  value of
                           approximately $11,626,000.

                    (C)    Payable in monthly  installments of $8,555  including
                           interest at 7.625%  through March 1999.  The mortgage
                           is secured by an  apartment  building in Spring Lake,
                           New Jersey  having a net book value of  approximately
                           $578,000.  One of the  directors  of  the  bank  is a
                           trustee of the Trust.

                    (D)    Payable in monthly  installments of $54,816 including
                           interest at 7.375% through January 2005 at which time
                           the  outstanding  balance  is due.  The  mortgage  is
                           secured by a commercial  building in  Patchogue,  New
                           York  having  a  net  book  value  of   approximately
                           $10,873,000.

                    (E)    Payable in monthly  installments of $76,023 including
                           interest at 7.29% through July 2010 at which time the
                           outstanding  balance is due.  The mortgage is secured
                           by an apartment  building in Wayne, New Jersey having
                           a net book value of approximately $1,621,000.

                Principal  amounts (in thousands of dollars) due under the above
                obligations  in each of the five years  subsequent  to April 30,
                1998 are as follows:

                      Year Ending
                       April 30,                Amount
                       ---------                ------

                         1999                     $559
                         2000                      512
                         2001                      554
                         2002                      599
                         2003                      648

                Based on borrowing rates currently  available to the Trust,  the
                carrying amount of mortgages payable  approximates fair value at
                April 30, 1998.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 5 - Note payable - bank:
                At October 31, 1997, note payable - bank consisted of borrowings
                under a  revolving  line of credit  agreement  with  Summit Bank
                which expired on April 30, 1998, at which time the agreement was
                renegotiated  and extended to May 31, 1999.  Maximum  borrowings
                under the agreement were  $12,310,000  and  $20,000,000 at April
                30, 1998 and October 31, 1997, respectively.  The line of credit
                bears interest at the bank's floating base rate plus .25% or the
                LIBOR rate plus 175 basis  points.  Outstanding  borrowings  are
                secured  by all  of the  Trust's  properties  except  commercial
                property located in Frederick,  Maryland,  Westwood,  New Jersey
                and  Patchogue,  New York,  apartment  buildings  in Wayne,  New
                Jersey,  River Edge, New Jersey and Maywood,  New Jersey and any
                vacant  land  owned  by the  Trust.  There  were no  outstanding
                borrowings under the agreement at April 30, 1998.

Note 6 - Commitments and contingencies:
                Leases:
                    Commercial tenants:
                         The Trust  leases  commercial  space  having a net book
                         value of approximately $57,292,000 at April 30, 1998 to
                         tenants for periods of up to twenty years.  Most of the
                         leases contain clauses for reimbursement of real estate
                         taxes,   maintenance,   insurance   and  certain  other
                         operating  expenses of the  properties.  Minimum rental
                         income (in  thousands  of dollars) to be received  from
                         noncancelable  operating  leases in years subsequent to
                         April 30, 1998 are as follows:

                          Year Ending
                            April 30,                      Amount
                            ---------                      ------

                             1999                         $ 5,968
                             2000                           5,611
                             2001                           5,343
                             2002                           5,042
                             2003                           4,752
                             Thereafter                    51,599
                                                          -------
                                 Total                    $78,315
                                                          =======

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

                         Minimum  future  rentals  do  not  include   contingent
                         rentals which may be received  under certain  leases on
                         the basis of  percentage  of  reported  tenants'  sales
                         volume  or   increases  in  Consumer   Price   Indices.
                         Contingent  rentals  included in income for each of the
                         six and three months ended April 30, 1998 and 1997 were
                         not material.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS


Note 6 - Commitments and contingencies (concluded):
                Residential tenants:
                         Lease  terms for  residential  tenants  are usually one
                         year or less.
 
                Standby letters of credit:
                    At April 30, 1998, the Trust was obligated under irrevocable
                    standby  letters  of credit  of  approximately  $100,000  in
                    connection  with certain  required land  improvements at the
                    Franklin Lakes shopping center.

                Environmental concerns:
                    In  accordance  with  applicable   regulations,   the  Trust
                    reported  to the  New  Jersey  Department  of  Environmental
                    Protection  that  a  discharge  of  hazardous  material  was
                    recently discovered at the newly renovated Franklin Crossing
                    Shopping Center (the "Center").

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

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

Note 7 - Management agreement and related party transactions:
                The  properties  owned by the Trust  are  currently  managed  by
                Hekemian.  The  management  agreement  requires  fees equal to a
                percentage  of rents  collected.  Such fees  were  approximately
                $273,000  and  $248,000  for the six months ended April 30, 1998
                and 1997, respectively,  and approximately $145,000 and $127,000
                for  the  three   months   ended   April  30,   1998  and  1997,
                respectively.

Note 8 - Earnings per share:
                Earnings  per share,  based on the  weighted  average  number of
                shares outstanding during each period, are comprised of ordinary
                income.




                                      * * *
<PAGE>
Part 1.

ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF  THE RESULTS OF OPERATIONS
              AND FINANCIAL CONDITION

         The  following  discussion  should  be read  in  conjunction  with  the
attached financial  statements and notes thereto,  and the Registrant's  Audited
Financial Statements and notes thereto for Fiscal Year Ended October 31, 1997.

Liquidity and Capital Resources

          Line of Credit

         In order to pursue individual  permanent financing on three properties,
the Registrant  elected to remove these properties from Summit Bank's collateral
package securing the $20 million Line of Credit. (On December 15, 1997, an $11.1
million  mortgage was placed on Berdan Court  Apartments,  one of the properties
removed from the collateral  package.) As a result, the Credit Line was extended
to May 1, 1999 with draws  against  the Credit  Line  limited to $12.3  million.
There is no principal balance, as of June 15, 1998, outstanding under the Credit
Line.

         The  reduction  of the Credit  Line will not  negatively  impact on the
Registrant's  operations  given the Registrant's  ability to finance  additional
properties in its portfolio of assets.

         Liquidity

         Cash from  operations  has enabled the  Registrant  to meet all current
obligations;  Registrant expects that cash from operations will allow it to meet
all future requirements as they become due.

         Results of Operations

         The  Registrant's  net income for the second  quarter  ended  April 30,
1998,  increased  36.6% to  $920,000  ($.59 per share) from  $673,000  ($.43 per
share) for the comparable prior year quarter.

         Net income for the six months ended April 30, 1998,  increased 24.0% to
$1,715,000 ($1.10 per share) from $1,383,000 ($.89 per share) for the six months
ended April 30, 1997.

         Earnings from operating  properties  (before  interest costs) increased
$895,000 over the prior year.  While  earnings at comparable  properties in both
years increased as a result of higher base rents and lower operating  costs, the
principle  increase  in  earnings  came  from the  Registrant's  new  commercial
properties in Patchogue, New York, and Franklin Lakes, New Jersey.
<PAGE>
         Funds from  operations,  consisting of net income,  excluding  deferred
rents and  gains and  losses  from  property  sales,  plus real  estate  related
depreciation and amortization,  ("FFO") was $1,288,000 for the second quarter of
fiscal 1998 as compared to $1,035,000  for the same period in 1997.  FFO for the
six months 1998 was  $2,567,000 as compared to $2,100,000 for the same period in
1997.

Part II.

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

         On May  27,  1998  at the  Annual  Meeting  of  the  Shareholders,  the
Shareholders re-elected Donald W. Barney, Ronald A. Artinian and Alan L. Aufzien
as Trustees for  additional  three year terms.  A total of 1,316,848  votes were
cast in favor of each Trustee;  there were  1,559,788  shares of the  Registrant
eligible to vote. There were no negative votes.
 
Item 5.  Other Information

         The Board of Trustees  declared a $.40, second quarter dividend payable
on June 22, 1998,  to  shareholders  of record on June 8, 1998.  This will raise
dividends  paid thus far this fiscal year to $.80 per share compared to $.70 per
share paid during the same period in 1997.

Item 6.  Exhibits and Reports on Form 8-K

         No Form 8-K was filed  during  the Second  Quarter of fiscal  year 1998
which ended April 30, 1998.
<PAGE>


                                   SIGNATURES










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



                                           FIRST REAL ESTATE INVESTMENT
                                           TRUST OF NEW JERSEY         
                                                    (Registrant)




Date June 18, 1998



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





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






                SALES OF UNREGISTERED SECURITIES (DEBT OR EQUITY)

                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY















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