SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 10-Q


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



For Quarterly Period Ended April 30, 1999            Commission File No. 2-27018


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


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


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


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

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

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

                                 Yes  XX   No
                                    ------   ------

Indicate the number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of the latest practicable date.

                 There were 1.559,788 shares of beneficial interest  outstanding
at June 14, 1999.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
                ------------------------------------------------

                                      INDEX
                                      -----


Part I:  Financial Information

         Item 1:  Financial Statements

                  a.)      Balance  Sheets  as at April 30, 1999 and October 31,
                           1998;

                  b.)      Statements  of  Income and Undistributed Earnings For
                           the Six  Months and three Months Ended April 30, 1999
                           and 1998;

                  c.)      Statements of Cash Flows for the Six  Months Ended
                           April 30, 1999 and 1998;

                  d.)      Notes to Financial Statements.

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

Item 3: Quantitative and Qualitative Disclosures of Market Risk.

Part II:  Other Information

         Item 1. Legal Proceedings

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

         Item 5. Other Events.

         Item 6. Exhibits and Reports on Form 8-K
<PAGE>

Item 1. Financial Statements
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                                 BALANCE SHEETS
                       APRIL 30, 1999 AND OCTOBER 31, 1998

<TABLE>
<CAPTION>
                                                                                                    April        October
                          ASSETS                                                                  30, 1999       31, 1998
                                                                                                 (Unaudited)   (See Note 1)
                                                                                                 (In Thousands of Dollars)

<S>                                                                                              <C>               <C>
Real estate, at cost, net of accumulated depreciation                                            $63,839           $64,432
Equipment, at cost, net of accumulated depreciation of
    $309,000 and $657,000                                                                            179               190
Investment in affiliate                                                                                              1,918
Cash and cash equivalents                                                                         15,536               793
Tenants' security accounts                                                                           803               752
Note receivable - affiliate                                                                                            100
Sundry receivables                                                                                   877               728
Prepaid expenses and other assets                                                                  1,057             1,172
Deferred charges, net                                                                              1,408             1,190
                                                                                               ---------         ---------

           Totals                                                                                $83,699           $71,275
                                                                                                 =======           =======


                      LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
    Mortgages payable                                                                            $60,448           $47,853
    Accounts payable and accrued expenses                                                            378               401
    Cash distributions in excess of investment in affiliate                                          339
    Dividends payable                                                                                624             1,435
    Tenants' security deposits                                                                     1,010               969
    Deferred revenue                                                                                 235               255
                                                                                              ----------        ----------
           Total liabilities                                                                      63,034            50,913
                                                                                                --------          --------

Commitments and contingencies

Shareholders' equity:
    Shares of beneficial interest without par value; 1,790,000 shares
        authorized; 1,559,788 shares issued and outstanding                                       19,314            19,314
    Undistributed earnings                                                                         1,351             1,048
                                                                                               ---------         ---------
           Total shareholders' equity                                                             20,665            20,362
                                                                                                --------          --------

           Totals                                                                                $83,699           $71,275
                                                                                                 =======           =======
</TABLE>
See Notes to Financial Statements.

<PAGE>

                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                 STATEMENTS OF INCOME AND UNDISTRIBUTED EARNINGS
               SIX AND THREE MONTHS ENDED APRIL 30, 1999 AND 1998
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                            Six Months                   Three Months
                                                                          Ended April 30,                Ended April 30,
                                                                     -------------------------      -------------------------
                                 INCOME                                1999             1998          1999            1998
                                 ------                              ---------        --------      ---------       ---------
                                                                                     (In Thousands of Dollars,
                                                                                     Except Per Share Amounts)
<S>                                                                     <C>             <C>            <C>             <C>
Revenue:
    Rental income                                                       $6,433          $6,026         $3,219          $3,108
    Reimbursements                                                         877             824            482             441
    Equity in income (loss) of affiliate                                  (136)             78              6              42
    Interest income                                                        306                            162
    Sundry income                                                           95             102             51              65
                                                                     ---------        --------      ---------       ---------
        Totals                                                           7,575           7,030          3,920           3,656
                                                                       -------         -------        -------         -------

Expenses:
    Operating expenses                                                   1,660           1,485            866             773
    Management fees                                                        306             273            153             145
    Real estate taxes                                                      899             889            454             447
    Interest                                                             2,309           1,869          1,160             952
    Depreciation                                                           845             792            424             417
                                                                      --------        --------       --------        --------
        Totals                                                           6,019           5,308          3,057           2,734
                                                                       -------         -------        -------         -------

Income before state income taxes                                         1,556           1,722            863             922

Provision for state income taxes                                             5               7              2               3
                                                                    ----------      ----------     ----------      ----------

Net income                                                              $1,551          $1,715        $   861        $   919
                                                                        ======          ======        =======        =======

Basic earnings per share                                              $    .99         $  1.10      $     .55       $    .59
                                                                      ========         =======      =========       ========

Basic weighted average shares outstanding                            1,559,788       1,559,788      1,559,788       1,559,788
                                                                     =========       =========      =========       =========

               UNDISTRIBUTED EARNINGS

Balance, beginning of period                                            $1,048         $   670         $1,114         $   842
Net income                                                               1,551           1,715            861             919
Less dividends                                                          (1,248)         (1,248)          (624)           (624)
                                                                       -------         -------       --------        --------

Balance, end of period                                                  $1,351          $1,137         $1,351          $1,137
                                                                        ======          ======         ======          ======

Dividends per share                                                   $    .80        $    .80        $   .40         $   .40
                                                                      ========        ========       ========         =======
</TABLE>
See Notes to Financial Statements.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                            STATEMENTS OF CASH FLOWS
                    SIX MONTHS ENDED APRIL 30, 1999 AND 1998
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                                  1999             1998
                                                                                               -----------      ----------
                                                                                                       (In Thousands
                                                                                                         of Dollars)
<S>                                                                                                <C>             <C>
Operating activities:
    Net income                                                                                     $ 1,551         $ 1,715
    Adjustments to reconcile net income to net cash
        provided by operating activities:
        Depreciation and amortization                                                                  918             852
        Deferred revenue                                                                               (20)           (168)
        Equity in (income) loss of affiliate                                                           136             (78)
        Changes in operating assets and liabilities:
           Tenants' security accounts                                                                  (51)            (38)
           Sundry receivables, prepaid expenses and other assets                                       (34)            282
           Deferred charges                                                                           (106)
           Accounts payable and accrued expenses                                                       (23)             37
           Tenants' security deposits                                                                   41              41
                                                                                               -----------      ----------
               Net cash provided by operating activities                                             2,412           2,643
                                                                                               -----------      ----------
Investing activities:
    Capital expenditures                                                                              (240)         (5,026)
    Distributions from affiliate                                                                     2,120             120
    Repayment of loan by affiliate                                                                     100
                                                                                               -----------      ----------
               Net cash provided by (used in) investing activities                                   1,980          (4,906)
                                                                                               -----------      ----------
Financing activities:
    Dividends paid                                                                                  (2,059)         (1,950)
    Repayments of note payable - bank                                                                              (11,429)
    Net proceeds from mortgage refinancing                                                           3,671           5,443
    Proceeds from mortgage borrowings                                                                9,275          11,100
    Deferred mortgage costs                                                                           (185)           (525)
    Repayment of mortgages                                                                            (351)           (286)
                                                                                               -----------      ----------
               Net cash provided by financing activities                                            10,351           2,353
                                                                                               -----------      ----------

Net increase in cash and cash equivalents                                                           14,743              90
Cash and cash equivalents, beginning of period                                                         793             228
                                                                                               -----------      ----------

Cash and cash equivalents, end of period                                                           $15,536        $    318
                                                                                               ===========      ==========
Supplemental disclosure of cash flow data:
    Interest paid                                                                                 $  2,309         $ 1,837
                                                                                               ===========      ==========
</TABLE>
Supplemental schedule of noncash investing and financing  activities:  Dividends
    declared but not paid amounted to $624,000 at April 30, 1999 and 1998.

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

                          NOTES TO FINANCIAL STATEMENTS

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

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

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

                Basis of presentation:
                    The financial  information  included  herein as at April 30,
                    1999 and for the six and three  months  ended April 30, 1999
                    and 1998 is  unaudited  and,  in the  opinion  of the Trust,
                    reflects  all   adjustments   (which   include  only  normal
                    recurring accruals) necessary for a fair presentation of the
                    financial  position  as of  that  date  and the  results  of
                    operations for those periods. The information in the balance
                    sheet as of October 31,  1998 was  derived  from the Trust's
                    audited annual report for 1998.

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

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

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

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

                          NOTES TO FINANCIAL STATEMENTS

Note 1 - Organization and significant accounting policies
                (concluded): Revenue recognition:
                    Income from leases is  recognized on a  straight-line  basis
                    regardless of when payment is due. Lease agreements  between
                    the  Trust  and  retail   tenants   generally   provide  for
                    additional  rentals  based on such factors as  percentage of
                    tenants' sales in excess of specified volumes,  increases in
                    real estate  taxes,  Consumer  Price Indices and common area
                    maintenance charges.  These additional rentals are generally
                    included in income when  reported to the Trust,  when billed
                    to tenants or ratably over the appropriate period.

                Deferred charges:
                    Deferred  charges  consist  of  mortgage  costs and  leasing
                    commissions.  Deferred  mortgage  costs are amortized on the
                    straight-line  method by annual  charges to operations  over
                    the terms of the  mortgages.  Amortization  of such costs is
                    included in interest  expense and  approximated  $44,000 and
                    $30,000  for the six months  ended  April 30, 1999 and 1998,
                    respectively,  and approximately $23,000 and $19,000 for the
                    three  months  ended April 30, 1999 and 1998,  respectively.
                    Deferred   leasing   commissions   are   amortized   on  the
                    straight-line  method  over  the  terms  of  the  applicable
                    leases.

                Advertising:
                    The Trust expenses the cost of advertising and promotions as
                    incurred.  Advertising costs charged to operations  amounted
                    to  approximately  $32,000  and  $23,000  for the six months
                    ended   April   30,   1999  and  1998,   respectively,   and
                    approximately  $23,000 and $9,000 for the three months ended
                    April 30, 1999 and 1998, respectively.

                Earnings per share:
                    The Trust has  presented  "basic"  earnings per share in the
                    accompanying  statements  of income in  accordance  with the
                    provisions  of Statement of Financial  Accounting  Standards
                    No. 128,  Earnings  per Share  ("SFAS  128").  SFAS 128 also
                    requires the presentation of "diluted" earnings per share if
                    the amount  differs  from basic  earnings  per share.  Basic
                    earnings per share is  calculated  by dividing net income by
                    the weighted  average  number of common  shares  outstanding
                    during each period.  The calculation of diluted earnings per
                    share is similar to that of basic earnings per share, except
                    that the  denominator  is increased to include the number of
                    additional common shares that would have been outstanding if
                    all  potentially  dilutive  common  shares,  such  as  those
                    issuable  upon the exercise of stock  options and  warrants,
                    were issued during the period.  For the six and three months
                    ended April 30,  1999,  diluted  earnings per share have not
                    been  presented  because  prices  of all of the  outstanding
                    stock options approximated the average fair market value and
                    there were no  additional  shares  derived  from the assumed
                    exercise  of  stock  options  and  the  application  of  the
                    treasury  stock  method.  For the six and three months ended
                    April 30, 1998, the Trust had no potentially dilutive common
                    shares.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

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

                Summarized  financial  information  of the Affiliate as of April
                30, 1999 and  October 31, 1998 and for the six and three  months
                ended April 30, 1999 and 1998 is as follows:
<TABLE>
<CAPTION>
                                                                                                April        October
                                                                                               30, 1999      31, 1998
                                                                                              ----------     ---------
                                                                                              (In Thousands of Dollars)

<S>                                                                                              <C>           <C>
                    Balance sheet data:
                         Assets:
                             Real estate and equipment, net                                      $14,304       $14,416
                             Other                                                                   685           976
                                                                                              ----------     ---------

                                   Total assets                                                  $14,989       $15,392
                                                                                                 =======       =======

                         Liabilities and equity:
                             Liabilities:
                               Mortgage payable                                                  $15,445       $10,025
                               Other                                                                 393           576
                                                                                              ----------    ----------
                                   Totals                                                         15,838        10,601
                                                                                                --------      --------

                             Members' equity (deficiency):
                               Trust                                                                (339)        1,918
                               Others                                                               (510)        2,873
                                                                                              ----------     ---------
                                   Totals                                                           (849)        4,791
                                                                                              ----------     ---------

                                   Total liabilities and members' equity                         $14,989       $15,392
                                                                                                 =======       =======
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                                                                Six Months            Three Months
                                                                                  Ended                   Ended
                                                                                 April 30,               April 30,
                                                                              1999       1998         1999       1998
                                                                             ------     ------       ------    ------
                                                                                   (In   Thousands   of Dollars)
<S>                                                                          <C>        <C>            <C>       <C>
                    Income statement data:
                         Rental revenue                                      $1,334     $1,293         $675      $648
                         Rental expenses                                      1,233      1,098          662       542
                                                                             ------     ------       ------    ------
                         Income from rental operations                          101        195           13       106
                         Prepayment penalty on mortgage
                             refinancing                                       (442)

                         Net income (loss)                                   $ (341)   $   195        $  13      $106
                                                                             ======    =======        =====      ====
</TABLE>
                At October 31, 1998,  the Trust had a $100,000  note  receivable
                from the  Affiliate  that was repaid during the six months ended
                April 30,  1999 with  interest  at 7%.  Interest  income was not
                material.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 3 - Real estate:
                Real estate consists of the following:
<TABLE>
<CAPTION>
                                                                           Range
                                                                        of Estimated          April         October
                                                                        Useful Lives         30, 1999       31, 1998
                                                                        ------------         --------       --------
                                                                                                  (In Thousands
                                                                                                   of Dollars)
<S>                                                                                           <C>            <C>
                    Land                                                                      $22,773        $22,773
                    Unimproved land                                                             2,315          2,305
                    Apartment buildings                                  7-40 years            10,623         11,013
                    Retail buildings                                    15-50 years            40,435         39,931
                    Construction in progress                                                    1,695          2,053
                                                                                            ---------      ---------
                                                                                               77,841         78,075
                    Less accumulated depreciation                                              14,002         13,643
                                                                                             --------       --------

                           Totals                                                             $63,839        $64,432
                                                                                              =======        =======
</TABLE>
Note 4 - Mortgages payable:
                Mortgages payable consist of the following:
<TABLE>
<CAPTION>
                                                                                             April         October
                                                                                            30, 1999       31, 1998
                                                                                            --------       --------
                                                                                                  (In Thousands
                                                                                                    of Dollars)
<S>                                                                                           <C>            <C>
                    Northern Life Insurance Cos. - Frederick, MD (A)                          $18,746        $18,876
                    National Realty Funding L.C. - Westwood, NJ (B)                            10,474         10,526
                    Summit Bank - Spring Lake, NJ (C)                                                             29
                    Larson Financial Resources, Inc. - Spring Lake, NJ (C)                      3,684
                    Summit Bank - Patchogue, NY (D)                                             7,354          7,410
                    Larson Financial Resources, Inc. - Wayne, NJ (E)                           10,956         11,012
                    Larson Financial Resources, Inc. - River Edge, NJ (F)                       5,352
                    Larson Financial Resources, Inc. - Maywood, NJ (G)                          3,882
                                                                                             --------       --------
                           Totals                                                             $60,448        $47,853
                                                                                              =======        =======
</TABLE>
                    (A)    The  mortgage is payable in monthly  installments  of
                           $152,153  including  interest at 8.31%  through  June
                           2007 at which  time the  outstanding  balance is due.
                           The  mortgage  is  secured  by a retail  building  in
                           Frederick,  Maryland  having  a  net  book  value  of
                           approximately $24,234,000.

                    (B)    The  mortgage is payable in monthly  installments  of
                           $73,248 including  interest at 7.38% through February
                           2013 at which  time the  outstanding  balance is due.
                           The  mortgage  is  secured  by a retail  building  in
                           Westwood,  New  Jersey  having  a net  book  value of
                           approximately $11,395,000.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 4 - Mortgages payable (concluded):

                    (C)  On November 19, 1998, the Trust repaid the  outstanding
                         mortgage  on the  Spring  Lake,  New  Jersey  apartment
                         building  utilizing proceeds from a new mortgage in the
                         amount of  $3,700,000.  The new  mortgage is payable in
                         monthly  installments of $29,863 including  interest at
                         6.70%   through   December   2013  at  which  time  the
                         outstanding  balance is due. The mortgage is secured by
                         an apartment building in Spring Lake, New Jersey having
                         a net book value of approximately $537,000.

                    (D)  Payable in monthly  installments  of $54,816  including
                         interest at 7.375%  through  January 2005 at which time
                         the outstanding balance is due. The mortgage is secured
                         by a retail  building in  Patchogue,  New York having a
                         net book value of approximately $10,588,000.

                    (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 $1,598,000.

                    (F)  Payable in monthly  installments  of $43,711  including
                         interest at 6.75%  through  December 2013 at which time
                         the outstanding balance is due. The mortgage is secured
                         by an  apartment  building  in River  Edge,  New Jersey
                         having a net book value of approximately $1,334,000.

                    (G)  Payable in monthly  installments  of $33,676  including
                         interest at 6.75%  through  December 2013 at which time
                         the outstanding balance is due. The mortgage is secured
                         by an apartment building in Maywood,  New Jersey having
                         a net book value of approximately $938,000.

                Principal  amounts (in thousands of dollars) due under the above
                obligations  in each of the five years  subsequent  to April 30,
                1999 are as follows:

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

                       2000                               $  768
                       2001                                  828
                       2002                                  893
                       2003                                  963
                       2004                                1,040

                Based on borrowing rates currently  available to the Trust,  the
                fair value of the mortgage debt is approximately  $63,000,000 at
                April 30, 1999.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 5 - Line of credit agreement:
                The Trust has a revolving  line of credit  agreement with Summit
                Bank which expires on May 31, 1999. Maximum allowable borrowings
                under the agreement were $8,000,000 and $12,310,000 at April 30,
                1999 and  October  31,  1998,  respectively.  The line of credit
                bears interest at the bank's floating base rate plus .25% or the
                LIBOR rate plus 175 basis  points.  Outstanding  borrowings  are
                secured by apartment buildings in Hasbrouck Heights, New Jersey,
                Lakewood,  New Jersey, and Palisades Park, New Jersey as well as
                a retail building in Franklin Lakes,  New Jersey.  There were no
                outstanding borrowings under the agreement at April 30, 1999 and
                October 31, 1998.  One of the directors of the bank is a trustee
                of the Trust.


Note 6 - Commitments and contingencies:
                Leases:
                   Retail tenants:
                      The Trust  leases  retail space having a net book value of
                      approximately $56,300,000 at April 30, 1999 to tenants for
                      periods  of up to  twenty-five  years.  Most of the leases
                      contain  clauses for  reimbursement  of real estate taxes,
                      maintenance,   insurance  and  certain   other   operating
                      expenses  of the  properties.  Minimum  rental  income (in
                      thousands  of dollars) to be received  from  noncancelable
                      operating leases in years subsequent to April 30, 1999 are
                      as follows:

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

                             2000                           $  6,373
                             2001                              6,211
                             2002                              5,926
                             2003                              5,678
                             2004                              5,068
                             Thereafter                       48,498
                                                            --------

                                 Total                      $ 77,754
                                                            ========

                      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, 1999 and 1998 were not material.

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

                          NOTES TO FINANCIAL STATEMENTS

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

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

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

Note 7 - Management agreement and related party transactions:
                The  properties  owned by the Trust  are  currently  managed  by
                Hekemian.  The  management  agreement  requires  fees equal to a
                percentage  of rents  collected.  Such fees  were  approximately
                $306,000  and  $273,000  for the six months ended April 30, 1999
                and 1998, respectively,  and approximately $153,000 and $145,000
                for  the  three   months   ended   April  30,   1999  and  1998,
                respectively.  In addition,  Hekemian charged the Trust fees and
                commissions  in connection  with the  acquisition  of the retail
                building in Patchogue, New York and various mortgage refinancing
                and lease acquisition  fees. Such fees and commissions  amounted
                to approximately  $121,000 and $695,000 for the six months ended
                April 30, 1999 and 1998, respectively, and approximately $55,000
                and $11,000 for the three  months ended April 30, 1999 and 1998,
                respectively.

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

Note 9 - Equity incentive plan:
                On  September  10,  1998,  the Board of  Trustees  approved  the
                Trust's Equity  Incentive Plan (the "Plan"),  which was ratified
                by the  Trust's  stockholders  on April 7,  1999,  whereby up to
                230,000 of the  Trust's  shares of  beneficial  interest  may be
                granted  to  key  personnel  in  the  form  of  stock   options,
                restricted  share  awards  and  other  share-based   awards.  In
                connection therewith, the Board of Trustees approved an increase
                of 230,000 shares in the Trust's number of authorized  shares of
                beneficial  interest.  Key  personnel  eligible for these awards
                include  trustees,  executive  officers  and  other  persons  or
                entities including, without limitation,  employees,  consultants
                and  employees  of  consultants,  who are in a position  to make
                significant contributions to the success of the Trust. Under the
                Plan,  the exercise price of all options will be the fair market
                value of the shares on the date of grant.  The  consideration to
                be paid for restricted share and other share-based  awards shall
                be determined  by the Board of Trustees,  with the amount not to
                exceed the fair market value of the shares on the date of grant.
                The maximum term of any award  granted may not exceed ten years.
                The actual terms of each award will be  determined  by the Board
                of Trustees.
<PAGE>
                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                          NOTES TO FINANCIAL STATEMENTS

Note 9 - Equity incentive plan (concluded):
                In accordance with the provisions of Accounting Principles Board
                Opinion No. 25,  Accounting for Stock Issued to Employees  ("APB
                25"), the Trust will recognize compensation costs as a result of
                the issuance of restricted  share and other  share-based  awards
                based on the excess, if any, of the fair value of the underlying
                stock  at the  date of  grant  or  award  (or at an  appropriate
                subsequent  measurement date) over the amount the recipient must
                pay to  acquire  the  stock.  Therefore,  the Trust  will not be
                required to  recognize  compensation  expense as a result of any
                grants of stock options,  restricted share and other share-based
                awards at an  exercise  price that is  equivalent  to or greater
                than fair value. The Trust will also make proforma  disclosures,
                as required by Statement of Financial  Accounting  Standards No.
                123,  Accounting for Stock-Based  Compensation  ("SFAS 123"), of
                net income or loss as if a fair value based method of accounting
                for stock  options  had been  applied  instead  if such  amounts
                differ materially from the historical amounts.

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

                                      * * *
<PAGE>
Item 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
       AND RESULTS OF OPERATIONS
Overview
The Registrant is an equity REIT which owns a portfolio of residential apartment
and retail  properties.  The Registrant's  revenues  consist  primarily of fixed
rental income and additional rent in the form of expense  reimbursements derived
from its income producing retail properties. The Registrant also receives income
from its 40% owned affiliate, Westwood Hills, which owns a residential apartment
property.  The  Registrant's  policy  has  been to  acquire  real  property  for
long-term investment.

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

Results of Operations
Six months ended April 30, 1999 vs. 1998
Revenues
For the six  months  ended  April 30,  1999,  total  revenue  increased  7.8% to
$7,575,000  from $7,030,000 for the six months ended April 30, 1998. The revenue
increase results, in part, from a $454,000 increase in revenues generated at the
Registrant's  operating  properties,  and a $306,000 increase in interest income
from investing the Registrant's cash equivalents. These increases were offset by
the negative  swing of $214,000 in the  Registrant's  share of operations at its
40% owned affiliate. The revenue increase at operating properties is principally
the result of the  Patchogue,  LI property  being included in operations for the
full 1999 six  months as  opposed  to only four and one half  months  during the
prior year's six months (acquired in December 1997),  and increased  revenues at
the Franklin Crossing property as a result of leasing  activities.  The increase
in interest income is due to the investing of mortgage financing proceeds.  (See
"Liquidity  and  Capital   Resources"   below).  The  loss  resulting  from  the
Registrant's  40% equity interest in its affiliate is due to one-time  financing
costs  incurred by the  affiliate in connection  with  mortgage  financing - see
below.

Expenses
For the six months  ended April 30,  1999,  total  expenses  increased  13.4% to
$6,019,000 from $5,308,000 for the comparable prior year six months. Expenses at
operating  properties  increased 4.7%, with virtually all of the increase coming
from increased  operating  expenses and  depreciation  at Patchogue and Franklin
Crossing  (see  "Revenues"  above).   Financing  costs  registered  the  highest
increase,  rising to $2,309,000  for the current  fiscal year's six month period
from $1,869,000  (including a one time $130,000  refinancing charge) during last
year's  six month  period.  This is  attributable  to higher  debt  levels  (See
"Liquidity  and  Capital  Resources"  below).  Administrative  costs  during the
current six months increased 79%,  principally  resulting from one-time costs in
connection with the Registrant  becoming a 34 Act reporting company.
<PAGE>
Net Income and Funds from  Operations
For the six months ended April 30, 1999, the  Registrant's  net income decreased
$164,000  (9.6%) to $1,551,000  from $1,715,000 for last year's first six months
ended April 30,  1998.  Earnings  per share  decreased to $.99 per share for the
current year's six months from $1.10 per share last year.  Earnings at operating
properties  increased 8.2% over last year.  Higher rents and occupancy  rates at
the  residential  properties  along with the higher earnings  contribution  from
Franklin  Crossing and Patchogue  accounting for this increase in earnings.  The
decrease in net income is principally  attributable,  as discussed above, to the
Registrant's 40% share of the losses at its affiliate  totaling  $136,000 during
the six months  ended  April 30,  1999,  compared to a profit of $78,000 for the
comparable prior year's six months.  The losses at the affiliate were due to one
time  mortgage  refinancing  costs,  of which  $177,000 was accounted for as the
Registrant's  share.  Funds from Operations  ("FFO") during the six months ended
April 30, 1999  decreased 3.6% to $2,480,000  ($1.50 per share) from  $2,573,000
($1.65 per share) for the comparable prior year six months.

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

Liquidity and Capital Resources
At  April  30,  1999,  the  Registrant's  cash  and  cash  equivalents   totaled
$15,536,000  as  compared to $793,000 at April 30,  1998.  In fiscal  1997,  the
Registrant  recognized  the  declining  cost  trend  of  fixed  rate,  long-term
financing,  and  developed  a plan to replace its  reliance  on its  short-term,
variable rate  financing with  long-term,  fixed rate  financing.  During fiscal
1998, the Registrant  mortgaged a previously debt free property for $11,100,000,
and refinanced an existing $5,157,000 mortgage for $10,600,000. The net proceeds
from these financings of  approximately  $16,065,000 were used to repay the then
outstanding  balance  under the Summit  Bank line of credit,  fund  construction
costs  at  Franklin  Crossing,  and  pay  the  cash  portion  of  the  Patchogue
acquisition.  In the first six months of fiscal 1999, the Registrant closed on a
series of mortgage  financings  that yielded net cash proceeds of $12,706,000 to
the Registrant.  In addition,  the Registrant's  40% owned  affiliate,  Westwood
Hills,  also  completed a mortgage  financing  in the first six months of fiscal
1999 which yielded approximately $4,900,000 in net cash proceeds.  Approximately
$2 million of these  proceeds were  distributed  to the Registrant in accordance
with its equity ownership.
<PAGE>
As a result of the  various  mortgage  financings,  and  reflecting  the reduced
collateral  available,  the  Registrant's  line of credit  from  Summit Bank was
reduced  from $20 million at October 31, 1997,  to $12.3  million at October 31,
1998,  and to $8 million at November 30, 1998.  The Registrant may use this line
of credit to finance the acquisition or development of additional properties and
for general  business  purposes.  At April 30, 1999,  there were no  outstanding
borrowings  under  the line of  credit.  At April  30,  1999,  the  Registrant's
aggregate  outstanding mortgage debt was approximately $60.4 million as compared
to approximately  $48.2 million at April 30, 1998. Cash flow from operations has
been sufficient to meet all operational needs of the Registrant.  The Registrant
anticipates  that the cash flow from  operations will be more than sufficient to
meet the Registrant's increased mortgage obligations. However, to the extent the
proceeds from the various  financings cannot be redeployed to earn more than the
stated interest costs, there will be a negative impact on earnings and cash flow
available to pay dividends.

Results of Operations
Three months ended April 30, 1999 vs. 1998
Revenues
For the three months  ended April 30,  1999,  total  revenue  increased  7.2% to
$3,920,000  from  $3,656,000  for the three  months  ended April 30,  1998.  The
revenue increase  results,  in part, from $139,000 of increased  revenues at the
Registrant's  operating  properties,  and $162,000 of increased  interest income
from investing the Registrant's cash equivalents. These increases were offset by
the decrease in the  Registrant's  share of income at the Registrant's 40% owned
affiliate to $6,000 from $42,000 last year reflecting the higher financing costs
of the affiliate (see "Liquidity and Capital Resources").

Expenses
For the three months ended April 30, 1999,  total  expenses  increased  11.8% to
$3,057,000  from  $2,734,000  for the  comparable  prior  year's  three  months.
Expenses at operating  properties  increased 4.9%.  Financing costs increased to
$1,160,000  from $952,000 last year.  This is attributable to higher debt levels
(See "Liquidity and Capital Resources").

Net Income and Funds from Operations
For the three months ended April 30, 1999,the  Registrant's net income decreased
$58,000  (6.3%) to $861,000  from  $919,000  for last year's  three months ended
April 30, 1998.  Earnings per share  decreased to $.55 per share for the current
year's  three  months  from $.59 per share  last  year.  Earnings  at  operating
properties  increased 2.8% over last year.  Higher rents and occupancy  rates at
the  residential  properties  along with the higher earnings  contribution  from
Franklin  Crossing and Patchogue  accounting for this increase in earnings.  The
decrease in net income is principally attributable, as discussed above, to lower
earnings from the  Registrant's  40% share of the income at its  affiliate,  and
increased financing costs not completely off-set by interest income earned.
 Funds from  Operations  ("FFO")  during the three  months  ended April 30, 1999
decreased 5.2% to $1,226,000  ($.79 per share) from $1,292,000  ($.83 per share)
for the comparable prior year three months reflecting lower earnings.
<PAGE>
REIT Distributions to Shareholders
Since its inception in 1961,  the Registrant has elected to be treated as a REIT
for Federal  income tax purposes.  In order to qualify as a REIT, the Registrant
must satisfy a number of highly technical and complex  operational  requirements
including that it must  distribute to its  shareholders at least 95% of its REIT
taxable income. The Registrant  anticipates making distributions to shareholders
from operating cash flows,  which are expected to increase from future growth in
rental  revenues.  Although  cash  used to make  distributions  reduces  amounts
available for capital investment, the Registrant generally intends to distribute
not less than 95% of REIT taxable income in order to satisfy the applicable REIT
requirement as set forth in the Internal  Revenue Code.  Cash dividends are paid
to  shareholders on quarterly  basis.  Cash dividends  declared  through the six
months ended April 30, 1999 & 1998 are as follows:
<TABLE>
<CAPTION>
-------------------------- ------------------------- ------------------------
                                    FISCAL 1999              FISCAL 1998
-------------------------- ------------------------- ------------------------
<S>                                    <C>                       <C>
  First Six months                     $.40                      $.40
-------------------------- ------------------------- ------------------------
  Second Six months                    $.40                      $.40
-------------------------- ------------------------- ------------------------
      Year To Date                     $.80                      $.80
-------------------------- ------------------------- ------------------------
</TABLE>
Inflation
The Registrant  anticipates that the U.S.  Mid-Atlantic  States will continue to
experience moderate growth with limited inflation.  Any sustained inflation may,
however,  negatively  impact  the  Registrant  in at least  two  areas:  (i) the
interest costs of any new mortgage  financing or the use of the Summit Bank line
of credit may be higher  than rates  currently  in effect;  and (ii) higher real
estate  operating  costs,  especially  in those  areas  where such costs are not
chargeable to commercial tenants.

Item 3. Quantitative and Qualitative Disclosures about Market Risk
As a  result  of  the  Registrant  having  replaced  short-term,  variable  rate
financing with long-term  fixed rate financing  during fiscal 1998 and the first
six months of fiscal 1999, the  Registrant  believes that its exposure to market
risk  relating to interest  rate risk is not  material.  The  Registrant's  only
variable  rate  financing is the Summit Bank line of credit under which there is
no outstanding balance. The Registrant believes that its business operations are
not exposed to market risk relating to foreign currency exchange risk, commodity
price risk or equity price risk.
<PAGE>
Part II: Other Information

         Item 1. Legal Proceedings
                  None.

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

                    The  following  maters were  submitted to a vote of security
                    holders at the  Registrant's  Annual Meeting of Shareholders
                    held on April 7, 1999. Election of Trustees

                    The Shareholders re-elected Messrs. Robert S. Hekemian, John
                    B.  Voskian and Charles J. Dodge to serve as Trustees for an
                    additional three (3) term. The balloting for election was as
                    follows:
<TABLE>
<CAPTION>
                    -------------------------------- ------------------ --------------- ----------------
                                NOMINEE                     FOR            AGAINST             WITHHELD
                    -------------------------------- ------------------ --------------- ----------------
<S>                                                          <C>                     <C>          <C>
                    Robert S. Hekemian                       1,366,665               0            3,547
                    -------------------------------- ------------------ --------------- ----------------
                    John B. Voskian                          1,364,790               0            5,422
                    -------------------------------- ------------------ --------------- ----------------
                    Charles J. Dodge                         1,366,655               0            3,547
                    -------------------------------- ------------------ --------------- ----------------
</TABLE>
                    Equity  Incentive Plan The  Shareholders  adopted the Equity
                    Incentive Plan. The balloting for adoption was as follows:

<TABLE>
<CAPTION>
                    ------------------ -----------------------------
                    VOTE                           NUMBER OF SHARES
                    ------------------ -----------------------------
<S>                                                       <C>
                    For                                   1,242,883
                    ------------------ -----------------------------
                    Against                                  79,889
                    ------------------ -----------------------------
                    Abstained                                14,161
                    ------------------ -----------------------------
                    Withheld                                 33,279
                    ------------------ -----------------------------
</TABLE>


         Item 5. Other Events
                  MANAGEMENT AGREEMENT.
                  Hekemian & Co., Inc. (`Hekemian"),  pursuant to the terms of a
                  Management   Agreement,   manages  all  of  the   Registrant's
                  properties.  It was reported in the Registrant's Form 10-K for
                  the year ended  October 31, 1998,  that a dispute  between the
                  shareholders  of Hekemian had developed  that will lead to the
                  dissolution  of Hekemian.  That dispute has been resolved and,
                  as such, dissolution of Hekemian will not be required.

         Item 6. Exhibits and Reports of Form 8-K
                  No reports  on Form 8-K have been filed  during the six months
                  ended April 30, 1999.
<PAGE>

                                   SIGNATURES

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



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




Date June 14, 1999



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

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