SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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

For Quarter Ended January 31, 2001                  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
                               ----           ---


<PAGE>


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

                                      INDEX
                                      -----


Part I:  Financial Information

         Item 1:  Unaudited Condensed Consolidated Financial Statements

                  a.)  Balance  Sheets as at January  31, 2001 and October 31,
                       2000;

                  b.)  Statements  of  Income,   Comprehensive   Income,   and
                       Undistributed  Earnings  For  the  Three  Months  Ended
                       January 31, 2001 and 2000;

                  c.)  Statements  of Cash  Flows for the Three  Months  Ended
                       January 31, 2001 and 2000;

                  d.)  Notes to Consolidated 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 6.  Exhibits and Reports on Form 8-K

<PAGE>

Item 1: Financial Statements

         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY

                      CONDENSED CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                            January 31,        October 31,
                                                                                               2001               2000
                                                                                          ---------------   ----------------
                                                                                            (Unaudited)       (See Note 1)
                                                                                              (In Thousands of Dollars)

                         ASSETS

<S>                                                                                              <C>                <C>
Real estate and equipment, at cost, net of accumulated depreciation                              $77,663            $78,038
Investments in marketable securities                                                               9,506              9,451
Cash & cash equivalents                                                                            2,259              2,925
Due from related party                                                                             1,087              1,066
Tenants' security accounts                                                                           776                766
Sundry receivables                                                                                 2,028              1,794
Prepaid expenses and other assets                                                                  1,241              1,361
Deferred charges, net                                                                              1,346              1,380
                                                                                          ---------------   ----------------
                                              Totals                                             $95,906            $96,781
                                                                                          ===============   ================

                LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
      Mortgages payable                                                                          $70,005            $70,214
      Accounts payable and accrued expenses                                                          836                854
      Cash distributions in excess of earnings and investment in affiliate                           386                352
      Dividends payable                                                                              936              1,794
      Tenants' security deposits                                                                   1,075              1,073
      Deferred revenue                                                                               231                303
                                                                                          ---------------   ----------------
                                        Total liabilities                                         73,469             74,590
                                                                                          ---------------   ----------------

Minority interest                                                                                  1,057              1,047
                                                                                          ---------------   ----------------

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                                                                       2,060              1,879
      Accumulated other comprehensive income (loss)                                                    6                (49)
                                                                                          ---------------   ----------------
                                    Total shareholders' equity                                    21,380             21,144
                                                                                          ---------------   ----------------
                                              Totals                                             $95,906            $96,781
                                                                                          ===============   ================
</TABLE>

See Notes to financial Statements

<PAGE>

         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY

       CONDENSED CONSOLIDATED STATEMENTS OF INCOME, COMPREHENSIVE INCOME
                           AND UNDISTRIBUTED EARNINGS
                  THREE MONTHS ENDED JANUARY 31, 2001 AND 2000
                                   UNAUDITED

<TABLE>
<CAPTION>
                                                                           2001                 2000
                                                                           ----                 ----
                                                                           (In Thousands of Dollars
                                                                           Except Per Share Amounts)
                                                                           -------------------------
                                INCOME
                                ------
Revenue:
<S>                                                                         <C>                <C>
      Rental income                                                         $    3,869         $    3,334
      Reimbursements                                                               656                476
      Equity in income of affiliate                                                 30                 24
      Investment income                                                            218                254
      Sundry income                                                                 45                 50
                                                                      -----------------   ----------------
                                            Totals                               4,818              4,138
                                                                      -----------------   ----------------

Expenses:
      Operating expenses                                                         1,006                934
      Management fees                                                              175                153
      Real estate taxes                                                            579                511
      Financing costs                                                            1,378              1,150
      Depreciation                                                                 548                432
      Minority interest                                                             10                  0
                                                                      -----------------   ----------------
                                            Totals                               3,696              3,180
                                                                      -----------------   ----------------

Income before state income taxes                                                 1,122                958
Provision for state income taxes                                                     5                  3
                                                                      -----------------   ----------------

Net income                                                                  $    1,117         $      955
                                                                      =================   ================
Basic earnings per share                                                    $     0.72         $     0.61
                                                                      =================   ================
Basic weighted average shares outstanding                                        1,560              1,560
                                                                      =================   ================

                       COMPREHENSIVE INCOME
                       --------------------

Net income                                                                  $    1,117         $      955
Other comprehensive income (loss)-unrealized gain (loss) on
      marketable securities                                                         55               (139)
                                                                      -----------------   ----------------
Comprehensive income                                                        $    1,172         $      816
                                                                      =================   ================

                      UNDISTRIBUTED EARNINGS
                      ----------------------

Balance, beginning of period                                                $    1,879         $    1,253
Net income                                                                       1,117                955
Less dividends                                                                    (936)              (780)
                                                                      -----------------   ----------------
Balance, end of period                                                      $    2,060         $    1,428
                                                                      =================   ================

Dividends per share                                                         $     0.60         $     0.50
                                                                      =================   ================
</TABLE>


See Notes to Financial Statements


<PAGE>


          FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                  THREE MONTHS ENDED JANUARY 31, 2001 AND 2000
                                   UNAUDITED

<TABLE>
<CAPTION>
                                                                                            2001                 2000
                                                                                            ----                 ----
                                                                                            (In Thousands of Dollars)

Operating activities:
<S>                                                                                            <C>                   <C>
      Net income                                                                               $ 1,117             $   955
      Adjustments to reconcile net income to net cash provided by
      operating activities:
          Depreciation and amortization                                                            601                 473
          Equity in income of affiliate                                                            (30)                (24)
          Deferred revenue                                                                         (72)                 15
          Minority interest                                                                         10
          Changes in operating assets and liabilities:
              Tenants' security accounts                                                           (10)                 17
              Sundry receivables, prepaid expenses and other assets                               (154)               (395)
              Accounts payable and accrued expenses                                                (18)               (177)
              Tenants' security deposits                                                             2                 (31)
                                                                                      -----------------   -----------------
                          Net cash provided by operating activities                              1,446                 833
                                                                                      -----------------   -----------------

Investing activities:
      Capital expenditures                                                                        (173)               (184)
      Distributions from affiliate                                                                  64                  72
      Acquisition deposit                                                                            0                (200)
                                                                                      -----------------   -----------------
                            Net cash used in investing activities                                 (109)               (312)
                                                                                      -----------------   -----------------

Financing activities:
      Dividends paid                                                                            (1,794)             (1,638)
      Repayment of mortgages                                                                      (209)               (194)
                                                                                      -----------------   -----------------
                            Net cash used in financing activities                               (2,003)             (1,832)
                                                                                      -----------------   -----------------

Net decrease in cash and cash equivalents                                                         (666)             (1,311)
Cash and cash equivalents, beginning of period                                                   2,925               2,083
                                                                                      -----------------   -----------------
Cash and cash equivalents, end of period                                                       $ 2,259             $   772
                                                                                      =================   =================

Supplemental disclosure of cash flow data:
      Interest paid                                                                            $ 1,347             $ 1,127
                                                                                      =================   =================
      Income taxes paid                                                                        $     5             $     3
                                                                                      =================   =================

Supplemental disclosure of noncash financing activities:
      Dividends declared but not paid                                                          $   936             $   780
                                                                                      =================   =================
</TABLE>

See Notes to Financial Statements

<PAGE>

         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Organization and significant accounting policies:

               First Real Estate  Investment  Trust of New Jersey (the  "Trust")
               was organized  November 1, 1961 as a New Jersey  Business  Trust.
               The Trust is engaged in owning  residential and commercial income
               producing  properties  located primarily 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.

          Basis of presentation:

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

               The consolidated results of operations for the three months ended
               January 31, 2001 are not necessarily indicative of the results to
               be  expected  for  the  full  year.   The   unaudited   condensed
               consolidated  financial  statements should be read in conjunction
               with the  consolidated  financial  statements  and related  notes
               included in the Trust's  Annual  Report on Form 10-K for the year
               ended October 31, 2000.

          Earnings per share:

               The  Trust  has  presented  "basic"  earnings  per  share  in the
               accompanying  condensed  consolidated  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

<PAGE>

               those  issuable  upon the exercise of stock options and warrants,
               were issued during the period. For the three months ended January
               31,  2001 and 2000,  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.

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

          Principles of consolidation:

               The  condensed  consolidated  financial  statements  include  the
               accounts of the Trust and,  subsequent of March 29, 2000, its 75%
               owned   subsidiary   S  and  A  Commercial   Associates   Limited
               Partnership  ("S and A"). The  condensed  consolidated  financial
               statements  include  100%  of  S  and  A's  assets,  liabilities,
               operations  and cash flows with the 25% interest not owned by the
               Trust   reflected  as  "minority   interest."   All   significant
               intercompany  accounts and  transactions  have been eliminated in
               consolidation (see Note 2).

Note 2 - Investment in affiliates:

               The Trust is a 40% member of Westwood  Hills,  LLC  ("WHLLC"),  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 WHLLC are either
               trustees of the Trust or their  families or officers of Hekemian.
               WHLLC owns a residential  apartment  complex located in Westwood,
               New Jersey.

               Summarized unaudited financial information of WHLLC as of January
               31, 2001 and October 31,  2000,  and for the three  months  ended
               January 31, 2001 and 2000 is as follows:


<TABLE>
<CAPTION>
                                                                    January      October
                                                                      31,          31,
                                                                     2001         2000
                                                                  ----------   ----------
                                                                 (In Thousands of Dollars)
Balance sheet data:
<S>                                                                  <C>          <C>
    Assets:
       Real estate and equipment, net                                $13,881      $13,942
       Other                                                             684          756
                                                                  ----------   ----------

             Total assets                                            $14,565      $14,698
                                                                  ==========   ==========

    Liabilities and members' deficiency:
       Liabilities:
          Mortgage payable                                           $15,139      $15,185
          Other                                                          394          398
                                                                  ----------   ----------
             Totals                                                   15,533       15,583
                                                                  ----------   ----------

       Members' deficiency:
          Trust                                                         (386)        (352)
          Others                                                        (582)        (533)
                                                                  ----------   ----------
             Totals                                                     (968)        (885)
                                                                  ----------   ----------

             Total liabilities and members' deficiency               $14,565      $14,698
                                                                  ==========   ==========
</TABLE>

<PAGE>

                                                      Three Month ended
                                                         January 31,
                                                     2001            2000
                                                    ------          ------
                                                   (In Thousands of Dollars)
                    Income statement data:
                        Rental revenue               $ 738          $ 696
                        Rental expenses                662            636
                                                     -----          -----
                        Net income                   $  76          $  60
                                                     =====          =====


               On March 29,  2000,  the Trust  acquired  100% of S and A,  whose
               primary  asset  is  a  neighborhood  shopping  center  in  Olney,
               Maryland.  The  shopping  center  contains  approximately  98,800
               square feet of gross leaseable area situated on  approximately 13
               acres of land.  Approximately 11 acres of the land are subject to
               a ground lease  expiring in 2078, and  approximately  2 acres are
               owned in Fee simple.

               The purchase  price of S and A was  approximately  $15,648,000 of
               which $4,728,000 was paid in cash and $10,920,000 was financed by
               the proceeds of a mortgage.  The Trust has agreed in principle to
               sell a 25% interest in S and A, as of March 29, 2000,  to a group
               consisting principally of employees of Hekemian on the same basis
               and cost to the Trust.  The Trust advanced this group  $1,016,000
               towards  the  purchase  price  of S and A.  The  advance  accrues
               interest at 8.44% and amounted to  approximately  $21,000  during
               the three months ended  January 31, 2001. As of January 31, 2001,
               the group owes an aggregate amount of $1,087,000.  The receivable
               and  accrued  interest  are  expected  to be paid within the next
               quarter.

               The following  unaudited pro forma  information  (in thousands of
               dollars,   except  per  share   amounts)  shows  the  results  of
               operations  for the three months ended January 31, 2000 as though
               S and A had been acquired at the beginning of fiscal 2000:


                  Revenue                             $4,587
                  Expenses                             3,647
                                                      ------
                  Income before minority interest        940
                  Minority interest                       (9)
                                                      ------
                  Net income                          $  931
                                                      ======

                  Earnings per share                  $  .60
                                                      ======

               The  unaudited  pro  forma  results   include   adjustments   for
               depreciation  based on the  purchase  price,  increased  interest
               expense  and  reduced  net  investment  income  related to assets
               utilized to make the  acquisition,  and  obligations  incurred to
               complete the transaction.

               The unaudited pro forma results of operations set forth above are
               not  necessarily  indicative  of  the  results  that  would  have
               occurred had the acquisition been made at the beginning of fiscal
               2000 or of future  results of operations of the Trust's  combined
               properties.

<PAGE>

Note 3 - Commitments and contingencies:

          Leases:
               Retail tenants:

                    The Trust  leases  retail  space  having a net book value of
                    approximately $70,074,000 at January 31, 2001 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 January 31, 2001 are as follows:

                         Year Ending
                          January 31,                  Amount
                         ------------                ---------

                                 2002                $  7,832
                                 2003                   7,657
                                 2004                   7,027
                                 2005                   6,294
                                 2006                   5,945
                             Thereafter                45,433
                                                     --------

                                 Total               $ 80,188
                                                     ========

                    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 the three months ended  January 31, 2001 and 2000
                    were not material.

               Residential tenants:

                    Lease terms for residential  tenants are usually one year or
                    less.

          Environmental concerns:

               In accordance with applicable regulations,  the Trust reported to
               the New Jersey Department of Environmental  Protection  ("NJDEP")
               that a historical  discharge of hazardous material was discovered
               in 1997 at the  renovated  Franklin  Lakes  shopping  center (the
               "Center").

               In November  1999,  the Trust received a no further action letter
               from the NJDEP concerning the historical discharge at the Center.
               However,  the  Trust is  required  to  continue  monitoring  such
               discharge, the cost of which will not be material.

<PAGE>

Note 4 - 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  shareholders 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 Board of Trustees  will  determine the
               actual terms of each award.

               Upon  ratification of the Plan on April 7,1999,  the Trust issued
               188,500  stock  options  which it had  previously  granted to key
               personnel on September 10, 1998. The fair value of the options on
               the date of grant was $30 per share.  The  options,  all of which
               are  outstanding  at January 31, 2001,  are  exercisable  through
               September 2008.

               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 pro forma  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.

Note 5 - Deferred fee plan:

               During the three  months  ended  January 31,  2001,  the Board of
               Trustees  adopted  a  deferred  fee  plan  (the  "Plan")  for its
               Officers and its Trustees.  Pursuant to the Plan,  any Officer or
               Trustee may elect to defer receipt of any fees which would be due
               them.  The Trust has  agreed to pay any  participant  in the Plan
               ("Participant"), interest on any deferred fee at the rate of nine
               percent (9%) per annum,  compounded quarterly.  Any such deferred
               fee is to be  paid  to  Participants  at the  later  of:  (i) the
               retirement  age specified in the deferral  election;  (ii) actual
               retirement;  or (iii) upon cessation of a Participants  duties as
               an Officer or Trustee.  The Plan  provides that any such deferral
               fee will be paid in a lump sum or in annual  installments  over a
               period  not  to  exceed  10  years,   at  the   election  of  the
               Participant.  As of January 31, 2001,  approximately  $25,000 has
               been deferred.

                                      * * *

<PAGE>

Item 2: MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

Overview

The Registrant is an equity REIT that 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 LLC ("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 and
its Annual  Report on Form 10-K for the year ended  October  31,  2000.  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:
Quarters ended January 31, 2001 and 2000
Revenues

For the quarter  ended  January 31, 2001  ("Current  Quarter"),  total  revenues
increased  $680,000 (16.4%) to $4,818,000  compared to the quarter ended January
31, 2000 ("Prior Quarter"). The revenue increase results from the following:

         Increased revenues from real estate operations       $  710,000
         Increase in Equity of Earnings of Affiliate               6,000
         Decrease in Investment Income                           (36,000)
                                                              -----------
               Net Increase                                   $  680,000
                                                              ===========

Real Estate Operations:  Revenues from real estate operations increased $710,000
-----------------------
(18.4%),  to $4,570,000 for the Current  Quarter  compared to $3,860,000 for the
Prior Quarter.  The principal  increase,  $553,000,  came from Olney Town Center
("Olney"),  which was acquired on March 29, 2000, and not included in operations
for the Prior Quarter.  Additionally,  significant  increases were recorded from
operations at the Franklin  Crossing  shopping center and from the  Registrant's
residential properties.

Investment  Income:  Investment  income  during the Current  Quarter was derived
-------------------
principally from three major sources:


1.  Government agency bonds ........    $9,506,000   Fixed Interest
2.  Institutional Money Market......    $1,975,000   Variable Interest
3.  Related Party...................    $1,016,000   Fixed Interest

The decline in Investment  Income of $36,000 results  primarily from the sale of
approximately $5 million of Government  Agency Bonds, the proceeds of which were
used to acquire the Olney Town Center during March 2000.  This interest  decline
was partially offset by interest earned on the amount due from related party.

<PAGE>

Earnings From 40% Owned Affiliate:  Earnings at the Trust's affiliate which owns
----------------------------------
a 210 unit garden apartment  community in Westwood,  NJ, increased 26.7% for the
Current Quarter over the Prior Quarter.  This increase  resulted in the increase
in the Trust's Equity in income of affiliate.

On a historical cost basis,  the Trust's  investment in its affiliate  (Westwood
Hills,  LLC) is carried on the Trust's  balance  sheet as a liability  (negative
basis)  of  $386,000.  This  represents  the  cumulative  amounts  of cash  flow
distributions and mortgage  re-financings  proceeds  distributed to the Trust in
excess of the Trust's investment

Expenses:

Total expenses  before state income taxes  increased 16.2% to $3,696,000 for the
Current Quarter compared to $3,180,000 for the Prior Quarter. Substantially, all
of the increase is attributable to expenses at Olney,  which was not included in
the Prior Quarter - See Table below (in thousands of dollars):


<TABLE>

EXPENSE COMPARISON                         Quarter Ended
                                             1/31/01
                                 ---------------------------------     Quarter
                                                           Without      Ended
                                  Consolidated   Olney      Olney      1/31/00    Change
                                  ------------   -----      -----      -------    ------
<S>                                 <C>          <C>        <C>         <C>       <C>
Operating Expenses                  $ 1,006      $ 109      $ 897      $  934      $(37)
Management Fees                         175         13        162         153         9
Real Estate Taxes                       579         50        529         511        18
Financing Costs                       1,378        243      1,135       1,150       (15)
Depreciation                            548         94        454         432        22
Minority interest                        10         10          -                     -
                                  ------------   -----     ------      -------    ------
                                   $  3,696      $ 519     $3,177      $3,180      $ (3)
                                  ============   =====     ======      =======    ======
</TABLE>


While Utility and Snow Removal cost increases did materialize,  they were offset
by  reductions  in other  operating  expenses,  including a 29% reduction in the
Trust's General Administrative expenses.

Net Income:

For the Current Quarter Net Income  increased  $162,000 (17%) to $1,117,000 from
$955,000  for the Prior  Quarter.  The  changes  that  affected  Net  Income are
summarized in the following table (in thousands):


Real estate Operations                $ 387
Income from Affiliate                     6
Investment income                       (36)
Financing costs                        (228)
General Administrative                   33
                                      ------
                                      $ 162
                                      ======


Real Estate  Operations:  Earnings from real estate operations (before financing
------------------------
costs)  increased  $387,000  (19.9%)  during the Current  Quarter over the Prior
Quarter.   This  increase  resulted  from  increased  earnings  at  the  Trust's
residential  properties due to rent increases out pacing  expenses.  Earnings at
the Trust's retail properties  increased primarily from the inclusion during the
Current  Quarter  of  Olney's   operations  (see  above),   and  from  increased
profitability  at the  Trust's  Franklin  Crossing  shopping  center in Franklin
Lakes, NJ.

<PAGE>

Grand Union  Bankruptcy:  As previously  reported,  the Registrant has two Grand
Union  supermarkets,  one at Franklin Crossing  (Franklin Lakes, NJ), and one at
Westwood Plaza (Westwood, NJ). The leases for these supermarkets are about to be
acquired from Grand Union by C&S Wholesaler Inc. ("C&S"). C&S will then sell the
leases  to The Stop & Shop  Supermarket  Company  ("Stop &  Shop").  Stop & Shop
operates 274 superstores and  supermarkets  in Connecticut,  Massachusetts,  New
Jersey, New York, and Rhode Island.  Stop & Shop has notified the Trust that the
Franklin  Crossing  supermarket  will be converted  to, and operated as a Stop &
Shop.  As of this date,  the Trust has  received  no  notification  as to Stop &
Shop's  intentions  with the lease at the Westwood  Plaza Shopping  Center.  How
these  transactions  will affect the short-term  operations of the centers where
these supermarkets are located cannot be measured at this time.

Income from Affiliate:  See Revenues above.
----------------------

Investment Income:  See Revenues above.
------------------

Financing Costs:  This increase is principally  attributable to the debt service
----------------
incurred to acquire Olney. See Expense Comparison Table above.

General Administrative:  Reduced Trustee's fee, professional fees, and corporate
-----------------------
overhead resulted in the Current Quarter's reductions.

Funds From Operations ("FFO")
FFO is considered by many as a standard measurement of a REIT's performance. The
Registrant computes FFO as follows (in thousands of dollars):


                                                   Quarter Ended
                                         ---------------------------------
                                              1/31/01           1/31/00
                                         ---------------    --------------
Net Income                                      $ 1,117            $ 955
Depreciation - Real Estate                          548              432
Amortization of Deferred Mortgage Costs              32               23
Deferred Rents                                     (107)             (93)
Capital Improvements - Apartments                  (100)             (60)
Other                                                36               22
                                         ---------------    -------------
             Funds From Operations              $ 1,526          $ 1,279
                                         ===============    =============


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.  Additionally,  the
application  and  calculation of FFO by certain other REITs may vary  materially
from that of the Registrant,  and therefore the  Registrant's FFO and the FFO of
other REITs may not be directly comparable.

Liquidity and Capital Resources

At January 31, 2001, the  Registrant's  cash,  cash  equivalents  and marketable
securities  totaled  $11,765,000  compared to  $12,376,000  at October 31, 2000.
These funds and the funds  generated from  operations are available for property
acquisitions.

At January 31, 2001, the Registrant's  aggregate  outstanding  mortgage debt was
approximately  $70 million.  Approximately  $59.1 million bears a fixed weighted
average interest cost of 7.59%, and an average life of 8.87 years. Approximately
$10.9  million of mortgage debt bears an interest rate equal to 175 basis points
over LIBOR and resets every 90 days.  The Registrant  anticipates  that the cash
flow from  operations  will be more  than  sufficient  to meet the  Registrant's
operational needs and mortgage  obligations.  As a result of the long-term fixed
rate  financing,  the  Registrant  believes  that its  exposure  to market  risk
relating to interest rate risk is not material.


<PAGE>


The Registrant has invested approximately $9.5 million in  short-to-intermediate
fixed rate  Government  Agency  Bonds.  These  bonds  yield a  weighted  average
interest of 6.489% and have a weighted maturity of 26.7 months. Since the market
value of these bonds are interest rate sensitive,  a sale of all or a portion of
these bonds prior to maturity in a high interest rate environment, may result in
a loss to the Registrant (See Investment Income above).

The Registrant  makes capital  improvements to its properties when it deems such
improvements  to be  necessary or  appropriate.  The  short-term  impact of such
capital  outlays  will be to depress the  Registrant's  current  cash flow.  The
Registrant is now experiencing the benefits of these  expenditures by preserving
the physical integrity of its properties and securing  increased rentals.  Other
than the apartment  rehabilitation  program  described above, the Registrant has
made  no  commitments  and  has  no  understandings  for  any  material  capital
expenditure during fiscal 2001 other than in the ordinary course of business.

Dividends

For the quarter ended January 31, 2001,  the  Registrant has declared a dividend
of $.60 per share  payable on March 16, 2001 to share holders of record on March
2, 2001.  This compares to a $.50 per share  dividend paid for the quarter ended
January 31, 2000.

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 the Registrant's  LIBOR based mortgage and on any new mortgage
financing;  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

See  "Liquidity and Capital Resources" above.


<PAGE>


Part II: Other Information

    Item 6. Exhibits and Reports of Form 8-K

          A)   On December 15, 2001, the Registrant  filed a Report on Form 8-K,
               which is incorporated herein by reference.  The Form 8-K reported
               the  Registrant's  results or operations for the twelve and three
               months ended October 31, 2000 and included a copy of Registrant's
               press release.

          B)   Exhibit 10. Deferred  Fee Plan (for Officers and/or Trustees) and
               Amendment No. I to the Plan.


<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: March 7, 2001


                                             /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.