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

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

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

----

----

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

----

D

| Part I:  | Financial Information |                                                                                        |
|----------|-----------------------|---------------------------------------------------------------------------------------------|
|     |                  |                                                                                        |   | Page |
|     |                  |                                                                                        |   |   |
|     | Item 1:               | Unaudited Condensed Consolidated Financial Statements                                       |   |
|     |                  |                                                                                        |   |   |
|     |                  | a.)                                                                                         | Condensed Consolidated Balance Sheets as at July 31, 2009 and October 31, 2008; | 3 |
|     |                  |                                                                                        |   |   |
|     |                  | b.)                                                                                         | Condensed Consolidated Statements of Income  for the Nine and Three Months Ended July 31, 2009 and 2008; | 4 |
|     |                  |                                                                                        |   |   |
|     |                  | c.)                                                                                         | Condensed Consolidated Statement of Shareholders’ Equity as at July 31, 2009 | 5 |
|     |                  |                                                                                        |   |   |
|     |                  | d.)                                                                                         | Condensed Consolidated Statements of Cash Flows for the Nine Months Ended July 31, 2009 and 2008; | 6 |
|     |                  |                                                                                        |   |   |
|     |                  | e.)                                                                                         | Notes to Condensed Consolidated Financial Statements. |   |
|     |                  |                                                                                        |   | 7 |
|     |                  |                                                                                        |   |   |
|     | 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     |                                                                                        |
|     |                  |                                                                                        |   |   |
|     | Item 1:               | Legal Proceedings                                                                      |  19 |
|     |                  |                                                                                        |   |   |
|     | Item 1A:              | Risk Factors                                                                                | 19 |
|     |                  |                                                                                        |   |   |
|     | Item 2:               | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 19 |
|     |                  |                                                                                        |   |   |
|     | Item 6:               | Exhibits                                                                                    | 20 |
|     |                  |                                                                                        |
|     | Signatures            | 21                                                                                          |

----

Index

P

I

| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES |
|-------------------------------------------------------------------|
| CONDENSED CONSOLIDATED BALANCE SHEETS                             |   |
|                                                              |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |
|                                                              |   |   | (Unaudited) |   |   | (Audited) |   |
|                                                              |   |   | July 31, |   |   | October 31, |   |
|                                                              |   |   | 2009 |   |   | 2008 |   |
|                                                              |   |   | (In Thousands of Dollars) |   |
| ASSETS                                                            |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |
| Real estate, at cost, net of accumulated depreciation             |   | $ | 206,736 |   |   | $ | 208,955 |   |
| Construction in progress                                          |   |   | 17,823 |   |   |   | 8,058 |   |
| Cash and cash equivalents                                         |   |   | 5,137 |   |   |   | 8,192 |   |
| Tenants' security accounts                                        |   |   | 2,297 |   |   |   | 2,377 |   |
| Sundry receivables                                                |   |   | 4,292 |   |   |   | 4,371 |   |
| Secured loans receivable                                          |   |   | 3,326 |   |   |   | 3,326 |   |
| Prepaid expenses and other assets                                 |   |   | 3,802 |   |   |   | 2,952 |   |
| Acquired over market leases and in-place lease costs              |   |   | 718 |   |   |   | 865 |   |
| Deferred charges, net                                             |   |   | 2,587 |   |   |   | 2,660 |   |
|                                                              | Totals |   | $ | 246,718 |   |   | $ | 241,756 |   |
|                                                              |   |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY                              |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                      |   |   |   |   |   |   |   |   |
|                                                              | Mortgages payable |   | $ | 195,219 |   |   | $ | 192,352 |   |
|                                                              | Accounts payable and accrued expenses |   |   | 8,841 |   |   |   | 4,014 |   |
|                                                              | Dividends payable |   |   | 2,083 |   |   |   | 2,084 |   |
|                                                              | Tenants' security deposits |   |   | 2,970 |   |   |   | 3,061 |   |
|                                                              | Acquired below market value leases and deferred revenue |   |   | 2,981 |   |   |   | 3,485 |   |
|                                                              | Total liabilities |   |   | 212,094 |   |   |   | 204,996 |   |
|                                                              |   |   |   |   |   |   |   |   |   |
| Minority interest                                                 |   |   | 13,192 |   |   |   | 13,199 |   |
|                                                              |   |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                     |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |   |
| Shareholders' equity:                                             |   |   |   |   |   |   |   |   |
|                                                              | Shares of beneficial interest without par value: |   |   |   |   |   |   |   |   |
|                                                              | 8,000,000 shares authorized; |   |   |   |   |   |   |   |   |
|                                                              |      6,993,152 shares issued and outstanding |   |   | 24,969 |   |   |   | 24,969 |   |
|                                                              | Treasury stock, at cost: 51,009 and 46,720 shares |   |   | (1,135 | ) |   |   | (1,075 | ) |
|                                                              | Dividends in excess of net income |   |   | (2,402 | ) |   |   | (333 | ) |
|                                                              | Total shareholders' equity               |   |   | 21,432 |   |   |   | 23,561 |   |
|                                                              | Totals |   | $ | 246,718 |   |   | $ | 241,756 |   |
|                                                              |   |   |   |   |   |   |   |   |   |
|                                                              |   |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.         |   |   |   |   |   |   |   |   |

----

Index

| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES |
|-------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME                       |
| NINE AND THREE MONTHS ENDED JULY 31, 2009 AND 2008                |
| (Unaudited)                                                       |

|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|-----------------------------------------------|--------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |
|                                                      |   | Nine Months Ended                             |   |   | Three Months Ended |   |
|                                                      |   | July 31,                                      |   |   | July 31,           |   |
|                                                      |   | 2009                                          |   |   | 2008               |   |   | 2009   |   |   | 2008   |   |
|                                                      |   | (In Thousands, Except Per Share Amounts) |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |
| Revenue:                                                  |   |                                          |   |   |               |   |   |   |   |   |   |   |
| Rental income                                             |   | $                                             | 27,441 |   |               | $      | 27,193 |   |   | $      | 9,050  |   |   | $ | 9,129 |   |
| Reimbursements                                            |   |                                          | 3,969  |   |               |   | 3,932  |   |   |   | 1,327  |   |   |   | 1,475 |   |
| Sundry income                                             |   |                                          | 393    |   |               |   | 310    |   |   |   | 107    |   |   |   | 124 |   |
| Totals                                                    |   |                                          | 31,803 |   |               |   | 31,435 |   |   |   | 10,484 |   |   |   | 10,728 |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                 |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                        |   |                                          | 8,380  |   |               |   | 8,069  |   |   |   | 2,631  |   |   |   | 2,385 |   |
| Management fees                                           |   |                                          | 1,403  |   |               |   | 1,396  |   |   |   | 469    |   |   |   | 479 |   |
| Real estate taxes                                         |   |                                          | 4,739  |   |               |   | 4,300  |   |   |   | 1,555  |   |   |   | 1,409 |   |
| Depreciation                                              |   |                                          | 4,407  |   |               |   | 4,086  |   |   |   | 1,470  |   |   |   | 1,411 |   |
| Totals                                                    |   |                                          | 18,929 |   |               |   | 17,851 |   |   |   | 6,125  |   |   |   | 5,684 |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                          |   |                                          | 12,874 |   |               |   | 13,584 |   |   |   | 4,359  |   |   |   | 5,044 |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                         |   |                                          | 170    |   |               |   | 437    |   |   |   | 40     |   |   |   | 124 |   |
| Interest expense including amortization                   |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|   of deferred financing costs                   |   |                                          | (8,051 | )      |               |   | (8,694 | )      |   |   | (2,670 | )      |   |   | (2,876 | ) |
| Minority interest                                         |   |                                          | (813   | )      |               |   | (768   | )      |   |   | (155   | )      |   |   | (373 | ) |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                |   | $                                             | 4,180  |   |               | $      | 4,559  |   |   | $      | 1,574  |   |   | $ | 1,919 |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                       |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   | $                                             | 0.60   |   |               | $      | 0.67   |   |   | $      | 0.23   |   |   | $ | 0.28 |   |
| Diluted                                                   |   | $                                             | 0.60   |   |               | $      | 0.66   |   |   | $      | 0.23   |   |   | $ | 0.28 |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding:                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                     |   |                                          | 6,944  |   |               |   | 6,802  |   |   |   | 6,942  |   |   |   | 6,844 |   |
| Diluted                                                   |   |                                          | 6,944  |   |               |   | 6,897  |   |   |   | 6,942  |   |   |   | 6,941 |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |                                          |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements. |   |                                          |   |   |               |   |   |   |   |   |   |   |   |

----

Index

| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES |
|-------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY          |

|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |
|-------------------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------|--------|--------|---------------------------------|--------|--------|--------------------------|--------|
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |
|                                                              |   | Shares ofBeneficialInterest |   |   | TreasuryShares atCost |   |   | Dividends inExcess of NetIncome |   |   | TotalShareholders'Equity |   |
|                                                              |   | (In Thousands of Dollars)   |   |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |
| Balance at October 31, 2008                                       |   | $                           | 24,969 |   |                  | $      | (1,075 | )                               |   | $      | (333                     | )      |   | $ | 23,561 |   |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |   |   |   |   |
| Treasury shares                                                   |   |                        |   |   |                  |   | (60    | )                               |   |   |                     |   |   |   | (60 | ) |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |   |   |   |   |
|           Net income |   |                        |   |   |                  |   |   |                            |   |   | 4,180                    |   |   |   | 4,180 |   |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |   |   |   |   |
| Dividends declared                                                |   |                        |   |   |                  |   |   |                            |   |   | (6,249                   | )      |   |   | (6,249 | ) |
|                                                              |   |                        |   |   |                  |   |   |                            |   |   |                     |   |   |   |   |   |
| Balance at July 31, 2009 (Unaudited)                              |   | $                           | 24,969 |   |                  | $      | (1,135 | )                               |   | $      | (2,402                   | )      |   | $ | 21,432 |   |

|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements. |   |   |   |   |   |   |   |   |   |

----

Index

| FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARIES |
|-------------------------------------------------------------------|
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                   |
| NINE MONTHS ENDED JULY 31, 2009 AND 2008                          |
| (Unaudited)                                                       |

|                                                                                                  |   |                      |   |   |   |   |
|-------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|--------|--------|--------|
|                                                                                                  |   | Nine Months Ended         |   |
|                                                                                                  |   | July 31,                  |   |
|                                                                                                  |   | 2009                      |   |   | 2008   |   |
|                                                                                                  |   | (In Thousands of Dollars) |   |
| Operating activities:                                                                                 |   |                      |   |   |   |   |
| Net income                                                                                            |   | $                         | 4,180  |   |   | $      | 4,559 |   |
| Adjustments to reconcile net income to net cash provided by                                           |   |                      |   |   |   |   |   |   |
| operating activities:                                                                                 |   |                      |   |   |   |   |   |   |
|   Depreciation                                                                              |   |                      | 4,407  |   |   |   | 4,086 |   |
|   Amortization                                                                              |   |                      | 349    |   |   |   | 516 |   |
|   Net amortization of acquired leases                                                       |   |                      | 27     |   |   |   | (72 | ) |
|   Deferred revenue                                                                          |   |                      | (435   | )      |   |   | (215 | ) |
|   Minority interest                                                                         |   |                      | 813    |   |   |   | 768 |   |
|  Changes in operating assets and liabilities:                                                    |   |                      |   |   |   |   |   |   |
|    Tenants' security accounts                                                          |   |                      | 80     |   |   |   | 54 |   |
|         Sundry receivables, prepaid expenses and other assets |   |                      | (992   | )      |   |   | 40 |   |
|         Accounts payable, accrued expenses and other liabilities   |   |                      | 456    |   |   |   | 663 |   |
|    Tenants' security deposits                                                          |   |                      | (91    | )      |   |   | (13 | ) |
| Net cash provided by operating activities                                                             |   |                      | 8,794  |   |   |   | 10,386 |   |
| Investing activities:                                                                                 |   |                      |   |   |   |   |   |   |
| Capital improvements - existing properties                                                            |   |                      | (1,665 | )      |   |   | (2,562 | ) |
| Construction and pre development costs                                                                |   |                      | (5,780 | )      |   |   | (7,736 | ) |
|                                                                                                  |   |                      |   |   |   |   |   |   |
| Net cash used in investing activities                                                                 |   |                      | (7,445 | )      |   |   | (10,298 | ) |
| Financing activities:                                                                                 |   |                      |   |   |   |   |   |   |
| Repayment of mortgages                                                                                |   |                      | (1,869 | )      |   |   | (7,552 | ) |
| Proceeds from mortgages and construction loans                                                        |   |                      | 4,630  |   |   |   | 11,031 |   |
| Deferred financing costs                                                                              |   |                      | (36    | )      |   |   | (282 | ) |
| Proceeds from exercise of stock options                                                               |   |                      | -      |   |   |   | 679 |   |
| Repurchase of Company stock-Treasury shares                                                           |   |                      | (60    | )      |   |   | (120 | ) |
| Dividends paid                                                                                        |   |                      | (6,249 | )      |   |   | (6,793 | ) |
| Distributions to minority interest                                                                    |   |                      | (820   | )      |   |   | (707 | ) |
| Net cash used in financing activities                                                                 |   |                      | (4,404 | )      |   |   | (3,744 | ) |
| Net decrease in cash and cash equivalents                                                             |   |                      | (3,055 | )      |   |   | (3,656 | ) |
| Cash and cash equivalents, beginning of period                                                        |   |                      | 8,192  |   |   |   | 12,740 |   |
| Cash and cash equivalents, end of period                                                              |   | $                         | 5,137  |   |   | $      | 9,084 |   |
|                                                                                                  |   |                      |   |   |   |   |   |   |
| Supplemental disclosure of cash flow data:                                                            |   |                      |   |   |   |   |   |   |
| Interest paid, including capitalized construction period interest                                     |   |                      |   |   |   |   |   |   |
|      of $121 and $183 in fiscal 2009 and 2008, respectively.                 |   | $                         | 7,772  |   |   | $      | 8,478 |   |
| Income taxes paid                                                                                     |   | $                         | 5      |   |   | $      | 44 |   |
| Supplemental schedule of non cash financing activities:                                               |   |                      |   |   |   |   |   |   |
| Accrued capital expenditures, construction costs, pre-development costs and interest                  |   | $                         | 4,589  |   |   | $      | 854 |   |
| Dividends declared but not paid                                                                       |   | $                         | 2,083  |   |   | $      | 2,054 |   |
|                                                                                                  |   |                      |   |   |   |   |   |   |
| See Notes to Condensed Consolidated Financial Statements.                                             |   |                      |   |   |   |   |   |   |

----

Index

T

----

Index

|                                                  |   | Nine Months Ended |      |   | Three Months Ended |   |
|-------------------------------------------------------|--------|-------------------|-----------|--------|--------------------|--------|
|                                                  |   | July 31,          |      |   | July 31,           |   |
|                                                  |   | 2009              |      |   | 2008               |   |   | 2009 |   |   | 2008 |   |
| Basic weighted average shares outstanding             |   |              | 6,943,963 |   |               |   | 6,802,083 |   |   |   | 6,942,164 |   |   |   | 6,844,304 |   |
|                                                  |   |              |      |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Shares arising from assumed exercise of stock options |   |              | -         |   |               |   | 94,772 |   |   |   | - |   |   |   | 96,777 |   |
| Dilutive weighted average shares outstanding          |   |              | 6,943,963 |   |               |   | 6,896,855 |   |   |   | 6,942,164 |   |   |   | 6,941,081 |   |

|                                           |   | Nine Months Ended |   |   | Three Months Ended |   |
|------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|
|                                           |   | July 31,          |   |   | July 31,           |   |
|                                           |   | 2009              |   |   | 2008               |   |   | 2009 |   |   | 2008 |   |
|                                           |   | ($ in thousands)  |   |
| Real estate rental revenue:                    |   |              |   |   |               |   |   |   |   |   |   |   |
| Commercial                                     |   | $                 | 17,230 |   |               | $      | 16,888 |   |   | $ | 5,739 |   |   | $ | 5,848 |   |
| Residential                                    |   |              | 14,437 |   |               |   | 14,335 |   |   |   | 4,695 |   |   |   | 4,808 |   |
| Totals                                         |   |              | 31,667 |   |               |   | 31,223 |   |   |   | 10,434 |   |   |   | 10,656 |   |
| Real estate operating expenses:                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                     |   |              | 6,815  |   |               |   | 6,440 |   |   |   | 2,094 |   |   |   | 2,027 |   |
| Residential                                    |   |              | 6,378  |   |               |   | 6,180 |   |   |   | 2,112 |   |   |   | 1,911 |   |
| Totals                                         |   |              | 13,193 |   |               |   | 12,620 |   |   |   | 4,206 |   |   |   | 3,938 |   |
| Net operating income:                          |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                     |   |              | 10,415 |   |               |   | 10,448 |   |   |   | 3,645 |   |   |   | 3,821 |   |
| Residential                                    |   |              | 8,059  |   |               |   | 8,155 |   |   |   | 2,583 |   |   |   | 2,897 |   |
| Totals                                         |   | $                 | 18,474 |   |               | $      | 18,603 |   |   | $ | 6,228 |   |   | $ | 6,718 |   |
| Recurring capital improvements-residential     |   | $                 | 143    |   |               | $      | 346 |   |   | $ | 36 |   |   | $ | 88 |   |
|                                           |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Reconciliation to consolidated net income:     |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Segment NOI                                    |   | $                 | 18,474 |   |               | $      | 18,603 |   |   | $ | 6,228 |   |   | $ | 6,718 |   |
| Deferred rents - straight lining               |   |              | 163    |   |               |   | 140 |   |   |   | 59 |   |   |   | 48 |   |
| Amortization of acquired leases                |   |              | (27    | )      |               |   | 72 |   |   |   | (9 | ) |   |   | 24 |   |
| Investment income                              |   |              | 170    |   |               |   | 437 |   |   |   | 40 |   |   |   | 124 |   |
| Minority interest in earnings of subsidiaries  |   |              | (813   | )      |               |   | (768 | ) |   |   | (155 | ) |   |   | (373 | ) |
| General and administrative expenses            |   |              | (1,329 | )      |               |   | (1,145 | ) |   |   | (449 | ) |   |   | (335 | ) |
| Depreciation                                   |   |              | (4,407 | )      |               |   | (4,086 | ) |   |   | (1,470 | ) |   |   | (1,411 | ) |
| Financing costs                                |   |              | (8,051 | )      |               |   | (8,694 | ) |   |   | (2,670 | ) |   |   | (2,876 | ) |
|       Net income |   | $                 | 4,180  |   |               | $      | 4,559 |   |   | $ | 1,574 |   |   | $ | 1,919 |   |

----

Index

----

Index

M

|  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 economicand business conditions, which will, among other things, affect demand for rental space, the availability of prospective tenants, lease rents, the financial condition of tenants and the default rate on leases, operating and administrative expenses and the availability of financing; adverse changes in FREIT’s real estate markets, including, among other things, competition with other real estate owners, competition confronted by tenants at FREIT’s commercial properties; governmental actions and initiatives;environmental/safety requirements; and risks of real estate development and acquisitions. The risks with respect to the development of real estate include: increased construction costs, inability to obtain construction financing, or unfavorable terms of financing that may be available, unforeseen construction delays and the failure to complete construction within budget.  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

| NET INCOME COMPONENTS                                                        |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                         |   | Nine Months Ended |   |   | Three Months Ended |   |
|                                                                         |   | July 31,          |   |   | July 31,           |   |
|                                                                         |   | 2009              |   |   | 2008               |   |   | Change |   |   | 2009   |   |   | 2008   |   |   | Change |   |
|                                                                         |   | ($ in thousands)  |   |   | ($ in thousands)   |   |
| Income from real estate operations:                                          |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Commercial properties                                |   | $                 | 10,551 |   |               | $      | 10,660 |   |   | $      | (109   | )      |   | $      | 3,695  |   |   | $      | 3,893 |   |   | $ | (198 | ) |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential properties                               |   |              | 8,059  |   |               |   | 8,155  |   |   |   | (96    | )      |   |   | 2,583  |   |   |   | 2,897 |   |   |   | (314 | ) |
|       Total income from real estate operations |   |              | 18,610 |   |               |   | 18,815 |   |   |   | (205   | )      |   |   | 6,278  |   |   |   | 6,790 |   |   |   | (512 | ) |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing costs:                                                             |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed rate mortgages                                                         |   |              | (7,734 | )      |               |   | (7,794 | )      |   |   | 60     |   |   |   | (2,579 | )      |   |   | (2,615 | ) |   |   | 36 |   |
| Floating rate - Rotunda                                                      |   |              | (317   | )      |               |   | (900   | )      |   |   | 583    |   |   |   | (91    | )      |   |   | (261 | ) |   |   | 170 |   |
|   Total financing costs                                            |   |              | (8,051 | )      |               |   | (8,694 | )      |   |   | 643    |   |   |   | (2,670 | )      |   |   | (2,876 | ) |   |   | 206 |   |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                            |   |              | 170    |   |               |   | 437    |   |   |   | (267   | )      |   |   | 40     |   |   |   | 124 |   |   |   | (84 | ) |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General & administrative expenses:                                       |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Accounting fees                                      |   |              | (404   | )      |               |   | (419   | )      |   |   | 15     |   |   |   | (147   | )      |   |   | (107 | ) |   |   | (40 | ) |
|     Legal & professional fees                        |   |              | (98    | )      |               |   | (57    | )      |   |   | (41    | )      |   |   | (16    | )      |   |   | (25 | ) |   |   | 9 |   |
|     Trustee fees                                         |   |              | (390   | )      |               |   | (369   | )      |   |   | (21    | )      |   |   | (126   | )      |   |   | (118 | ) |   |   | (8 | ) |
|     Corporate expenses                                   |   |              | (437   | )      |               |   | (300   | )      |   |   | (137   | )      |   |   | (160   | )      |   |   | (85 | ) |   |   | (75 | ) |
|   Total general & administrative expenses                      |   |              | (1,329 | )      |               |   | (1,145 | )      |   |   | (184   | )      |   |   | (449   | )      |   |   | (335 | ) |   |   | (114 | ) |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Minority interest in earnings of subsidiaries                                |   |              | (813   | )      |               |   | (768   | )      |   |   | (45    | )      |   |   | (155   | )      |   |   | (373 | ) |   |   | 218 |   |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation:                                                                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Same properties (1)                                                          |   |              | (4,054 | )      |               |   | (3,949 | )      |   |   | (105   | )      |   |   | (1,346 | )      |   |   | (1,365 | ) |   |   | 19 |   |
| Damascus center-phase I becoming operational in June 2008                    |   |              | (353   | )      |               |   | (137   | )      |   |   | (216   | )      |   |   | (124   | )      |   |   | (46 | ) |   |   | (78 | ) |
|   Total depreciation                                               |   |              | (4,407 | )      |               |   | (4,086 | )      |   |   | (321   | )      |   |   | (1,470 | )      |   |   | (1,411 | ) |   |   | (59 | ) |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net Income                                                            |   | $                 | 4,180  |   |               | $      | 4,559  |   |   | $      | (379   | )      |   | $      | 1,574  |   |   | $      | 1,919 |   |   | $ | (345 | ) |
|                                                                         |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Properties operated since the beginning of fiscal 2008.                  |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

|                 |   |              |   |        |                |     |     |    |             |                |              |     |   |                                       |   |             |       |       |   |              |   |   |   |   |   |       |   |   |       |   |
|----------------------|--------|-------------------|--------|-------------|---------------------|----------|----------|---------|------------------|---------------------|-------------------|----------|--------|--------------------------------------------|--------|------------------|------------|------------|--------|-------------------|--------|--------|--------|--------|--------|------------|--------|--------|------------|--------|
|                 |   | Commercial        |   | Residential |                | Combined |     |
|                 |   | Nine Months Ended |   |        |                |     |     |    |             |                | Nine Months Ended |     |   |                                       |   |             |       |       |   | Nine Months Ended |   |
|                 |   | July 31,          |   |        | Increase (Decrease) |     | July 31, |    |             | Increase (Decrease) |              | July 31, |   |
|                 |   | 2009              |   |        | 2008                |     |     | $  |             |                |              | %        |   |  2009                                 |   |             |  2008 |       |   | $            |   |   |   | %      |   |  2009 |   |   |  2008 |   |
|                 |   | ($ in thousands)  |   |        |                |     |     |    | ($ in thousands) |                |              |     |   |                                       |   | ($ in thousands) |       |
| Rental income        |   | $                 | 13,108 |        |                | $        | 12,806   |    |             | $                   | 302               |     |   |                                       | 2.4    | %                |       | $          | 14,197 |              |   | $      | 14,175 |   |   | $          | 22     |   |       |   | 0.2 | % |   | $ | 27,305 |   |   | $ | 26,981 |   |
| Reimbursements       |   |              | 3,969  |        |                |     | 3,932    |    |             |                | 37                |     |   |                                       | 0.9    | %                |       |       | -      |              |   |   | -      |   |   |       | -      |   |       |   |   |   |   |   | 3,969 |   |   |   | 3,932 |   |
| Other                |   |              | 153    |        |                |     | 150      |    |             |                | 3                 |     |   |                                       | 2.0    | %                |       |       | 240    |              |   |   | 160    |   |   |       | 80     |   |       |   | 50.0 | % |   |   | 393 |   |   |   | 310 |   |
| Total revenue        |   |              | 17,230 |        |                |     | 16,888   |    |             |                | 342               |     |   |                                       | 2.0    | %                |       |       | 14,437 |              |   |   | 14,335 |   |   |       | 102    |   |       |   | 0.7 | % |   |   | 31,667 |   |   |   | 31,223 |   |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   |                                       |   |             |       |       |   |              |   |   |   |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses   |   |              | 6,815  |        |                |     | 6,440    |    |             |                | 375               |     |   |                                       | 5.8    | %                |       |       | 6,378  |              |   |   | 6,180  |   |   |       | 198    |   |       |   | 3.2 | % |   |   | 13,193 |   |   |   | 12,620 |   |
| Net operating income |   | $                 | 10,415 |        |                | $        | 10,448   |    |             | $                   | (33               | )        |   |                                       | -0.3   | %                |       | $          | 8,059  |              |   | $      | 8,155  |   |   | $          | (96    | )      |       |   | -1.2 | % |   |   | 18,474 |   |   |   | 18,603 |   |
| Average              |   |              |   |        |                |     |     |    |             |                |              |     |   |                                       |   |             |       |       |   |              |   |   |   |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy %          |   |              | 89.2   | %           |                |     | 89.9     | %       |             |                |              |     |   |                                       | -0.7   | %                |       |       | 93.0   | %                 |   |   | 94.9   | %      |   |       |   |   |       |   | -1.9 | % |   |   |   |   |   |   |   |   |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   |                                       |   |             |       |       |   |              |   |   |   |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | Reconciliation to consolidated net income: |   |             |       |       |   |              |   |   |   |   |   |       |   |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | Deferred rents - straight lining           |   |             |       |       |   |              |   |   |   |   | 163    |       |   |   | 140        |   |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | Amortization of acquired leases            |   |             |       |       |   |              |   |   |   |   | (27    | )          |   |   | 72         |   |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | Investment income                          |   |             |       |       |   |              |   |   |   | 170    |   |       |   | 437    |       |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | General and administrative expenses        |   |             |       |       |   |              |   | (1,329 | )      |   |   | (1,145     | )      |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | Depreciation                               |   |             |       |       |   |              |   |   |   | (4,407 | )      |       |   | (4,086 | )          |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | Financing costs                            |   |             |       |       |   |              |   |   |   |   | (8,051 | )          |   |   | (8,694     | )      |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   | Minority interest                          |   |             |       |       |   |              |   |   |   | (813   | )      |       |   | (768   | )          |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   |                                       |   |             |       | Net income |   |              |   |   |   |   |   |       |   |   | $          | 4,180  |   |   | $ | 4,559 |   |
|                 |   |              |   |        |                |     |     |    |             |                |              |     |   |                                       |   |             |       |       |   |              |   |   |   |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |   |

|                 |   |               |   |   |                |   |     |     |             |                |               |     |   |                                       |   |             |       |       |   |               |   |   |   |   |   |       |   |   |       |   |
|----------------------|--------|--------------------|--------|--------|---------------------|--------|----------|----------|------------------|---------------------|--------------------|----------|--------|--------------------------------------------|--------|------------------|------------|------------|--------|--------------------|--------|--------|--------|--------|--------|------------|--------|--------|------------|--------|
|                 |   | Commercial         |   |   | Residential         |   |     | Combined |             |
|                 |   | Three Months Ended |   |   |                |   |     |     |             |                | Three Months Ended |     |   |                                       |   |             |       |       |   | Three Months Ended |   |
|                 |   | July 31,           |   |   | Increase (Decrease) |   | July 31, |     |             | Increase (Decrease) |               | July 31, |   |
|                 |   | 2009               |   |   | 2008                |   |     |  $  |             |                |               | %        |   |  2009                                 |   |             |  2008 |       |   |  $            |   |   |   | %      |   |  2009 |   |   |  2008 |   |
|                 |   | ($ in thousands)   |   |   |                |   |     |     | ($ in thousands) |                |               |     |   |                                       |   | ($ in thousands) |       |
| Rental income        |   | $                  | 4,363  |   |                | $      | 4,320    |     |             | $                   | 43                 |     |   |                                       | 1.0    | %                |       | $          | 4,637  |               |   | $      | 4,737  |   |   | $          | (100   | )      |       |   | -2.1 | % |   | $ | 9,000 |   |   | $ | 9,057 |   |
| Reimbursements       |   |               | 1,327  |   |                |   | 1,475    |     |             |                | (148               | )        |   |                                       | -10.0  | %                |       |       | -      |               |   |   | -      |   |   |       | -      |   |       |   |   |   |   |   | 1,327 |   |   |   | 1,475 |   |
| Other                |   |               | 49     |   |                |   | 53       |     |             |                | (4                 | )        |   |                                       | -7.5   | %                |       |       | 58     |               |   |   | 71     |   |   |       | (13    | )      |       |   | -18.3 | % |   |   | 107 |   |   |   | 124 |   |
| Total revenue        |   |               | 5,739  |   |                |   | 5,848    |     |             |                | (109               | )        |   |                                       | -1.9   | %                |       |       | 4,695  |               |   |   | 4,808  |   |   |       | (113   | )      |       |   | -2.4 | % |   |   | 10,434 |   |   |   | 10,656 |   |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   |                                       |   |             |       |       |   |               |   |   |   |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses   |   |               | 2,094  |   |                |   | 2,027    |     |             |                | 67                 |     |   |                                       | 3.3    | %                |       |       | 2,112  |               |   |   | 1,911  |   |   |       | 201    |   |       |   | 10.5 | % |   |   | 4,206 |   |   |   | 3,938 |   |
| Net operating income |   | $                  | 3,645  |   |                | $      | 3,821    |     |             | $                   | (176               | )        |   |                                       | -4.6   | %                |       | $          | 2,583  |               |   | $      | 2,897  |   |   | $          | (314   | )      |       |   | -10.8 | % |   |   | 6,228 |   |   |   | 6,718 |   |
| Average              |   |               |   |   |                |   |     |     |             |                |               |     |   |                                       |   |             |       |       |   |               |   |   |   |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy %          |   |               | 89.8   | %      |                |   | 89.8     | %        |             |                |               |     |   |                                       | 0.0    | %                |       |       | 91.8   | %                  |   |   | 94.2   | %      |   |       |   |   |       |   | -2.4 | % |   |   |   |   |   |   |   |   |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   |                                       |   |             |       |       |   |               |   |   |   |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | Reconciliation to consolidated net income: |   |             |       |       |   |               |   |   |   |   |   |       |   |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | Deferred rents - straight lining           |   |             |       |       |   |               |   | 59     |   |   |   | 48         |   |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | Amortization of acquired leases            |   |             |       |       |   |               |   | (9     | )      |   |   | 24         |   |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | Investment income                          |   |             |       |       |   |               |   | 40     |   |   |   | 124        |   |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | General and administrative expenses        |   |             |       |       |   |               |   | (449   | )      |   |   | (335       | )      |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | Depreciation                               |   |             |       |       |   |               |   | (1,470 | )      |   |   | (1,411     | )      |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | Financing costs                            |   |             |       |       |   |               |   | (2,670 | )      |   |   | (2,876     | )      |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   | Minority interest                          |   |             |       |       |   |               |   | (155   | )      |   |   | (373       | )      |
|                 |   |               |   |   |                |   |     |     |             |                |               |     |   |                                       |   |             |       | Net income |   |               |   |   |   |   |   |       |   |   | $          | 1,574  |   |   | $ | 1,919 |   |

----

Index

----

Index

|                                               |   | Nine Months Ended |   |   | Three Months Ended |   |
|----------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|
|                                               |   | July 31,          |   |   | July 31,           |   |
|                                               |   | 2009              |   |   | 2008               |   |   | 2009 |   |   | 2008 |   |
|                                               |   | ($ in thousands)  |   |   | ($ in thousands)   |   |
|  Fixed rate mortgages:                        |   |              |   |   |               |   |   |   |   |   |   |   |
|     1st Mortgages              |   |              |   |   |               |   |   |   |   |   |   |   |
|     Existing                   |   | $                 | 6,708  |   |               | $      | 6,965 |   |   | $ | 2,231 |   |   | $ | 2,271 |   |
|     New                        |   |              | 272    |   |               |   | 153 |   |   |   | 90 |   |   |   | 83 |   |
|     2nd Mortgages              |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|     Existing                   |   |              | 376    |   |               |   | 387 |   |   |   | 124 |   |   |   | 129 |   |
| Variable rate mortgages:                           |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|     Acquisition loan-Rotunda   |   |              | 416    |   |               |   | 972 |   |   |   | 122 |   |   |   | 294 |   |
|     Construction loan-Damascus |   |              | 106    |   |               |   | 62 |   |   |   | 33 |   |   |   | 43 |   |
|  Other                                        |   |              | 226    |   |               |   | 178 |   |   |   | 81 |   |   |   | 63 |   |
|                                               |   |              | 8,104  |   |               |   | 8,717 |   |   |   | 2,681 |   |   |   | 2,883 |   |
|  Amortization of Mortgage Costs               |   |              | 174    |   |               |   | 222 |   |   |   | 56 |   |   |   | 81 |   |
|  Total Financing Costs                        |   |              | 8,278  |   |               |   | 8,939 |   |   |   | 2,737 |   |   |   | 2,964 |   |
|      Less amount capitalized   |   |              | (227   | )      |               |   | (245 | ) |   |   | (67 | ) |   |   | (88 | ) |
|  Financing costs expensed                     |   | $                 | 8,051  |   |               | $      | 8,694 |   |   | $ | 2,670 |   |   | $ | 2,876 |   |

----

Index

----

Index

| Fiscal Year                                                | 2009   | 2010 * | 2012   | 2013   | 2014   | 2016   | 2017   | 2018   | 2019   | 2022   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| ($ in millions)                                            |   |   |   |   |   |   |   |   |   |   |
| Mortgage "Balloon" Payments                                | $22.5  | $12.2  | $9.8   | $8.0   | $25.9  | $24.5  | $22.0  | $5.0   | $28.1  | $14.4  |
| * See discussion below regarding Berdan Court refinancing. |

|            |   | July 31, |   |   | October 31, |   |
|-----------------|--------|----------|--------|--------|-------------|--------|
| ($ in Millions) |   | 2009     |   |   | 2008        |   |
| Fair Value      |   | $        | 189.6  |   |        | $      | 196.2 |   |
|            |   |     |   |   |        |   |   |   |
| Carrying Value  |   | $        | 195.2  |   |        | $      | 192.4 |   |

----

Index

|                                    |                                |   | Nine Months Ended |   |   | Three Months Ended |   |
|-----------------------------------------|-------------------------------------|--------|-------------------|--------|--------|--------------------|--------|
|                                    |                                |   | July 31,          |   |   | July 31,           |   |
|                                    |                                |   | 2009              |   |   | 2008               |   |   | 2009 |   |   | 2008 |   |
|                                    |                                |   | ($ in thousands)  |   |   | ($ in thousands)   |   |
|                                    |                                |   |              |   |   |               |   |   |   |   |   |   |   |
| Net income                              |                                | $      | 4,180             |   |   | $                  | 4,559  |   |   | $ | 1,574 |   |   | $ | 1,919 |   |
| Depreciation                            |                                |   | 4,407             |   |   |               | 4,086  |   |   |   | 1,470 |   |   |   | 1,411 |   |
| Amortization of deferred mortgage costs |                                |   | 174               |   |   |               | 222    |   |   |   | 57 |   |   |   | 81 |   |
| Deferred rents (Straight lining)        |                                |   | (163              | )      |   |               | (140   | ) |   |   | (59 | ) |   |   | (48 | ) |
| Amortization of acquired leases         |                                |   | 27                |   |   |               | (72    | ) |   |   | 9 |   |   |   | (24 | ) |
| Capital Improvements - Apartments       |                                |   | (143              | )      |   |               | (346   | ) |   |   | (36 | ) |   |   | (88 | ) |
| Minority interests:                     |                                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |
| Equity in earnings of affiliates        |                                |   | 813               |   |   |               | 768    |   |   |   | 155 |   |   |   | 373 |   |
| Distributions to minority interests     |                                |   | (820              | )      |   |               | (707   | ) |   |   | (257 | ) |   |   | (112 | ) |
|                                    |                                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                    | FFO                                 |   | $                 | 8,475  |   |               | $      | 8,370 |   |   | $ | 2,913 |   |   | $ | 3,512 |   |
|                                    |                                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                    |  Per Share - Basic             |   | $                 | 1.22   |   |               | $      | 1.23 |   |   | $ | 0.42 |   |   | $ | 0.51 |   |
|                                    |  Per Share - Diluted           |   | $                 | 1.22   |   |               | $      | 1.21 |   |   | $ | 0.42 |   |   | $ | 0.51 |   |
|                                    |                                |   |              |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
|                                    | Weighted Average SharesOutstanding: |   |              |   |   |               |
|                                    |  Basic                         |   |              | 6,944  |   |               |   | 6,802 |   |   |   | 6,942 |   |   |   | 6,844 |   |
|                                    |  Diluted                       |   |              | 6,944  |   |               |   | 6,897 |   |   |   | 6,942 |   |   |   | 6,941 |   |

----

Index

u

n

O

R

e

| Issuer Purchases of Equity Securities (1)(2)(3)(4)(5) |
|-------------------------------------------------------|
|                                                  |   |   |   |   |
| Period                                                | Total Number ofShares Purchased | Average PricePaid Per Share | Total Number of SharesPurchased as Part ofPublicly AnnouncedProgram | Approximate DollarValue of Shares that MayYet Be Purchased Underthe Program |
| May 1, 2009 through May 31, 2009                      | 73 | $16.40 | 73 | $998,783 |
| June 1, 2009 through June 30, 2009                    | 16 | $16.00 | 16 | $998,519 |
| July 1, 2009 through July 31, 2009                    | - | - | - | $0 |
| Total                                                 | 89 | $16.33 | 89 | $0 |

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

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

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

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

| (5) | The share repurchase program expired on June 30, 2009. Through June 30, 2009, FREIT repurchased 51,009 shares under both repurchase plans at a cost of $1,135,026, which is reflected in the Shareholders’ Equity section of FREIT’s balance sheet. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

x

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

----

Index

A

|                    |                                                                                                                                        |   |
|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                    | FIRST REAL ESTATE INVESTMENT                                                                                                                |
|                    |           TRUST OF NEW JERSEY                                                             |
|                    |                       (Registrant) |   |
|                    |                                                                                                                                        |   |
| Date: September 9, 2009 |                                                                                                                                        |   |
|                    | /s/ Robert S. Hekemian                                                                                                                      |   |
|                    |         (Signature)                                                                                 |   |
|                    | Robert S. Hekemian                                                                                                                          |   |
|                    | Chairman of the Board and Chief Executive Officer                                                                                           |
|                    | (Principal Executive Officer)                                                                                                               |
|                    |                                                                                                                                        |   |
|                    |                                                                                                                                        |   |
|                    | /s/ Donald W. Barney                                                                                                                        |   |
|                    |         (Signature)                                                                                 |   |
|                    | Donald W. Barney                                                                                                                            |
|                    | President, Treasurer and Chief Financial Officer                                                                                            |
|                    | (Principal Financial/Accounting Officer)                                                                                                    |
|                    |                                                                                                                                        |   |