SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q
(Mark One)

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

For the Quarterly period ended January 31, 2003

                                       or

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

For the transition period from  ___________________ to ___________________.

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. |X| Yes |_| No

Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). |_| Yes  |X| No

<PAGE>



                FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

                                      INDEX

Part I: Financial Information

      Item 1: Unaudited Condensed Consolidated Financial Statements

            a.)   Condensed Consolidated Balance Sheets as at January 31, 2003
                  and October 31, 2002;

            b.)   Condensed Consolidated  Statements  of  Income,  Comprehensive
                  Income and  Undistributed Earnings for the Three Months Ended
                  January 31, 2003 and 2002;

            c.)   Condensed Consolidated Statements of Cash Flows for the Three
                  Months Ended January 31, 2003 and 2002;

            d.)   Notes to Condensed 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.

      Item 4: Controls and Procedures

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
                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                     January 31,           October 31,
                                                                       2003                    2002
                                                                      -------                -------
                                                                    (Unaudited)            (See Note 1)
                                                                    -----------            ------------
                                                                        (In Thousands of Dollars)
<S>                                                                   <C>                    <C>
                                  ASSETS
Real estate, at cost, net of accumulated
depreciation                                                          $74,287                $74,687
Investment in affiliates                                                2,003                  3,283
Cash and cash equivalents                                              12,606                 11,930
Tenants' security accounts                                                821                    788
Sundry receivables                                                      2,566                  2,555
Prepaid expenses and other assets                                       1,280                  1,306
Deferred charges, net                                                   1,172                  1,166
                                                                       -------               -------
                        Totals                                        $94,735                $95,715
                                                                      =======                =======

              LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgages payable                                                     $68,176                $68,393
Accounts payable and accrued expenses                                     853                    778
Dividends payable                                                       1,092                  2,090
Tenants' security deposits                                              1,155                  1,122
Deferred revenue                                                          282                    332
Interst rate swap contract                                                236                     --
                                                                      -------                -------
                        Total liabilities                              71,794                72,715
                                                                      -------                -------

Minority interest                                                       1,096                  1,097
                                                                      -------                -------

Commitments and contingencies

Shareholders' equity:
Shares of beneficial interest without par value:
 4,000,000 shares authorized:
 3,119,576 shares issued and outstanding                               19,314                 19,314
Accumulated other comprehensive loss                                     (236)                    --
Undistributed earnings                                                  2,767                  2,589
                                                                      -------                -------
                         Total shareholders' equity                    21,845                 21,903
                                                                      -------                -------

                                   Totals                             $94,735                $95,715
                                                                      =======                =======
</TABLE>

See Notes to Consolidated Financial Statements

<PAGE>


         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF INCOME, COMPREHENSIVE INCOME AND UNDISTRIBUTED
              EARNINGS THREE MONTHS ENDED JANUARY 31, 2003 AND 2002

<TABLE>
<CAPTION>
                                                                  2003           2002
                                                                 -------       -------
                                                                (In Thousands of Dollars,
                                                                Except Per Share Amounts)
<S>                                                              <C>           <C>
                                     INCOME
Revenue:
     Rental income                                               $ 3,978       $ 3,884
     Reimbursements                                                  664           745
     Equity in income of affiliates                                   81            51
     Net Investment Income                                            53            68
     Sundry income                                                    56            47
                                                                 -------       -------
                              Totals                               4,832         4,795
                                                                 -------       -------
Expenses:
     Operating expenses                                              957           821
     Management fees                                                 201           200
     Real estate taxes                                               621           591
     Financing costs                                               1,194         1,216
     Depreciation                                                    532           535
     Minority interest                                                49            47
                                                                 -------       -------
                              Totals                               3,554         3,410
                                                                 -------       -------
Income from continuing operations before state income taxes        1,278         1,385
Provision for state income taxes                                       8             5
                                                                 -------       -------
Income from continuing operations                                  1,270         1,380
Discontinued operations                                               --           (42)
                                                                 -------       -------
         Net income                                              $ 1,270       $ 1,338
                                                                 =======       =======

--------------------------------------------------------------------------------------
Basic earnings (loss) per share:
     Continuing operations                                       $  0.41       $  0.44
     Discontinued operations                                          --         (0.01)
                                                                 -------       -------
         Net income                                              $  0.41       $  0.43
                                                                 =======       =======
--------------------------------------------------------------------------------------
Diluted earnings (loss) per share:
     Continuing operations                                       $  0.39       $  0.43
     Discontinued operations                                          --         (0.01)
                                                                 -------       -------
         Net income                                              $  0.39       $  0.42
                                                                 =======       =======
--------------------------------------------------------------------------------------
Basic weighted average shares outstanding                          3,120         3,120
Diluted weighted average shares outstanding                        3,275         3,188
--------------------------------------------------------------------------------------

                              COMPREHENSIVE INCOME
Net Income                                                       $ 1,270       $ 1,338
Other comprehensive income(loss):
(loss) on interest rate
  swap contract                                                     (236)           --
                                                                 -------       -------
Other comprehensive income(loss)                                    (236)           --
                                                                 -------       -------
Comprehensive income                                             $ 1,034       $1,3389
                                                                 =======       ========
                             UNDISTRIBUTED EARNINGS
Balance, beginning of period                                     $ 2,589       $ 2,274
Net income                                                         1,270         1,338
Less dividends                                                    (1,092)         (936)
                                                                 -------       -------
Balance, end of period                                           $ 2,767       $ 2,676
                                                                 =======       =======
Dividends per share                                              $  0.35       $  0.30
                                                                 =======       =======
</TABLE>

See Notes to Consolidated Financial Statements

<PAGE>



         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                  THREE MONTHS ENDED JANUARY 31, 2003 AND 2002

<TABLE>
<CAPTION>
                                                                     2003           2002
                                                                     ----           ----
                                                                  (In thousands of Dollars)
<S>                                                                <C>            <C>
Operating activities:
 Net Income                                                        $  1,270       $  1,338
 Adjustments to reconcile net income to net cash provided by
 operating activities:
  Depreciation and amortization                                         608            604
  Equity in income of affiliates                                         (81)           (51)
  Deferred revenue                                                      (50)           (51)
  Minority interest                                                      49             47
  Changes in operating assets and liabilities:
   Tenants' security accounts                                           (33)            66
   Sundry receivables, prepaid expenses and other assets                (67)             9
   Accounts payable and accrued expenses                                 76           (174)
   Tenants' security deposits                                            33            (66)
                                                                   --------       --------
                    Net cash provided by operating activities         1,805          1,722
                                                                   --------       --------
Investing activities:
 Capital expenditures                                                  (132)          (144)
 Distributions from affiliate                                         1,360             --
 Marketable security redeemed                                                          500
                                                                   --------       --------
                      Net cash provided by investing activities       1,228            356
                                                                   --------       --------
Financing activities:
 Repayment of mortgages                                                (217)          (261)
 Dividends Paid                                                      (2,090)        (1,497)
 Distribution to Minority Interest                                      (50)          (115)
                                                                   --------       --------
                      Net cash used in financing activities          (2,357)        (1,873)
                                                                   --------       --------
Net increase in cash and cash equivalents                               676            205
Cash and cash equivalents, beginning of period                       11,930         13,187
                                                                   --------       --------
Cash and cash equivalents, end of period                           $ 12,606       $ 13,392
                                                                   ========       ========

Supplemental disclosure of cash flow data:
 Interest paid                                                     $  1,118       $  1,185
                                                                   ========       ========
 Income taxes paid                                                 $      8       $      5
                                                                   ========       ========
 Dividends declared but not paid                                   $  1,092       $    936
                                                                   ========       ========
</TABLE>

See Notes to Consolidated Financial Statements.

<PAGE>



         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - 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, 2003 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 FREIT's Annual Report on Form 10-K for the
      year ended October 31, 2002.

      Certain accounts in the 2002 financial statements have been reclassified
      to conform to the current presentation.

     Interest rate awap contract:

     FREIT utilizes derivative financial instruments to reduce interest rate
     risk. FREIT does not hold or issue derivative financial instruments for
     trading purposes. Effective November 1, 2002, FREIT adopted Statement of
     Financial Accounting Standards No. 133, "Accounting for Derivative
     Instruments and Hedging Activities" ("SFAS 133"), which establishes
     accounting and reporting standards for derivative instruments and hedging
     activities. As required by SFAS 133, FREIT recognizes all derivatives as
     either assets or liabilities in the consolidated balance sheet and measures
     those instruments at fair value. Changes in the fair value of those
     instruments will be reported in earnings or other comprehensive income
     depending on the use of the derivative and whether it qualifies for hedge
     accounting. The accounting for gains and losses associated with changes in
     the fair value of the derivative and the effect on the consolidated
     financial statements will depend on its hedge designation and whether the
     hedge is highly effective in achieving offsetting changes in the fair value
     of cash flows on the assets or liabilty hedged.

Note 2 - Investment in Affiliates:

      Certain investments, where FREIT's ownership interest is 50% or less, but
      can exercise significant influence, are accounted for by the equity
      method. Under the equity method, the investment, originally recorded at
      cost, is adjusted to recognize FREIT's share of the net earnings or losses
      of the affiliates as they occur. These investments include:

                                                                  Ownership
                                                                  Interest
                                                                  --------

      Westwood Hills, LLC                                            40%
      (owns a 210 unit apartment community
      in Westwood, NJ)

      Wayne PSC, LLC                                                 40%
      (effective November 1, 2002 acquired
      the 323,000 +/- sq. ft. Preakness Shopping Center
      in Wayne, NJ)

      Summarized combined balance sheet as at January 31, 2003 and October 31,
      2002, and income statement information for the three months ended January
      31, 2003 and 2002 of the above affiliates that are accounted for using the
      equity method are as follows:

<PAGE>

<TABLE>
<CAPTION>
            (thousands)                          January 31,    October 31,
            Balance Sheet Data                      2003           2002
                                                    ----           ----
<S>                                               <C>              <C>
            Assets
               Real estate                        $ 47,009         13,673
               Other assets                          3,358          9,779
                                                  --------       --------
                  Total assets                    $ 50,367       $ 23,452
                                                  ========       ========

            Liabilities and members'
             equity (deficiency):
               Mortgages payable                  $ 44,510       $ 14,794
               Other liabilities                       850            455
                                                  --------       --------
                  Totals                            45,360         15,249
                                                  --------       --------
            Members' Capital:
            Westwood Hills -deficiency              (4,112)          (797)
            Wayne PSC Capital                        9,119          9,000
                                                  --------       --------
               Totals                                5,007          8,203
                                                  --------       --------
            Total liabilities and capital         $ 50,367       $ 23,452
                                                  ========       ========

            FREIT - Investment in affiliates      $  2,003       $  3,283
                                                  ========       ========

<CAPTION>
                                                     Three Months ended
            Income Data                                   January 31,
                                                  -----------------------
                                                    2003           2002
                                                    ----           ----
<S>                                               <C>            <C>
            Rental Revenues                       $  1,873       $    784
            Expenses                                 1,670            657
                                                  --------       --------
                  Net income                      $    203       $    127
                                                  ========       ========

            FREIT - Equity in income              $     81       $     51
                                                  ========       ========
</TABLE>

      On November 1, 2002 our newly formed 40% owned affiliate, Wayne PSC, LLC,
      completed the acquisition of the 323,000 sq. ft. Preakness Shopping Center
      in Wayne, NJ. Total acquisition costs of $35.5 million (including a $1.3
      million capital improvement reserve) were financed in part by a $26.5
      million first mortgage loan, and by $9 million of equity contributions
      provided pro rata by the members of Wayne PSC, LLC, with FREIT's
      contribution being $3.6 million.

     During January 2003,  Westwood Hill placed a second  mortgage in the amount
     of $3.4 million on it's garden apartment property.  The net proceeds of the
     second  mortgage was  distributed  to its members,  of which FREIT received
     approximately $1.4 million.

Note 3 - Earnings per share:

      The Trust has presented "basic" and "diluted" 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"). Basic earnings per share is calculated by dividing net
      income by the weighted average number of shares outstanding during each

<PAGE>



      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 shares that would have been outstanding
      if all potentially dilutive shares, such as those issuable upon the
      exercise of stock options and warrants, were issued during the period.

      In computing diluted earnings per share for each of the three month
      periods ended January 31, 2003 and 2002, the assumed exercise of all of
      the Trust's outstanding stock options, adjusted for application of the
      treasury stock method, would have increased the weighted average number of
      shares outstanding as shown in the table below:

                                                    2003            2002
                                                 ---------       ---------

      Basic weighted average shares
          outstanding                            3,119,576       3,119,576
      Shares arising from assumed
          exercise of stock options                155,429          68,301
                                                 ---------       ---------

      Dilutive weighted average shares
          outstanding                            3,275,005       3,187,877
                                                 =========       =========

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

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 460,000 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.

      Upon ratification of the Plan on April 7,1999, the Trust issued 377,000
      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
      $15 per share. The options, all of which are outstanding at January 31,
      2003, are exercisable through September 2008.

      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, the Trust'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- Segment information:

      SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
      Information", established standards for reporting financial information
      about operating segments in interim and annual financial reports and
      provides for a "management approach" in identifying the reportable
      segments.

<PAGE>



     FREIT has determined that it has two reportable segments: retail properties
     and residential properties. These reportable segments offer different
     products, have different types of customers, and are managed separately
     because each requires different operating strategies and management
     expertise. The retail segment contains six separate properties and the
     residential segment contains eight properties. The accounting policies of
     the segments are the same as those described in Note 1 in FREIT's Annual
     Report on Form 10-K.

      The chief operating decision-making group of FREIT's retail segment,
      residential segment and corporate/other is comprised of the Board of
      Trustees.

      FREIT assesses and measures segment operating results based on net
      operating income ("NOI"). NOI is based on operating revenue and expenses
      directly associated with the operations of the real estate properties, but
      excludes deferred rents (straight lining), depreciation, and financing
      costs. NOI is not a measure of operating results or cash flows from
      operating activities as measured by accounting principles generally
      accepted in the United States of America, and is not necessarily
      indicative of cash available to fund cash needs and should not be
      considered an alternative to cash flows as a measure of liquidity.

      Real estate rental revenue, operating expenses, NOI and recurring capital
      improvements for the reportable segments are summarized below and
      reconciled to consolidated net income for the three months ended January
      31, 2003 and 2002. Asset information is not reported since the Trust does
      not use this measure to assess performance.

                                                    Three Months ended
                                                         January 31,
                                                      2003         2002
                                                      ----         ----
                                                 (in thousands of dollars)
      Real estate revenue:
       Retail                                       $ 3,031       $ 3,033
       Residential                                    1,612         1,542
                                                    -------       -------
        Total                                         4,643         4,575
                                                    -------       -------
      Real estate operating expenses:
       Retail                                           971           862
       Residential                                      717           632
                                                    -------       -------
        Total                                         1,688         1,494
                                                    -------       -------
      Net operating income:
       Retail                                         2,060         2,171
       Residential                                      895           910
                                                    -------       -------
        Total                                       $ 2,955       $ 3,081
                                                    =======       =======

      Recurring capital improvements:
         Residential                                $   104       $    79
                                                    =======       =======

      Reconciliation to consolidated
        net income:
      Segment NOI                                   $ 2,955       $ 3,081
      Discontinued operations                            --           (42)
      Deferred rents - straight lining                   48            93
      Net investment income                              53            68
      Equity in income of affiliates                     81            51
      General and administrative expenses               (92)         (115)
      Depreciation                                     (532)         (535)
      Financing costs                                (1,194)       (1,216)
      Minority interest                                 (49)          (47)
                                                    -------       -------
        Net income                                  $ 1,270       $ 1,338
                                                    =======       =======


Note 6-Interest Rate Swap Contract:

     During November 2002, FREIT renegotiated the fixed interest rate on a first
     mortgage secured by its Patchogue, NY property. To reduce the impact of
     interest rate fluctuations, FREIT entered into an interest rate swap. In
     accordance with SFAS 133, FREIT recorded a liability for the net present
     value of the increase in interest cost over the remaining terms of the debt
     of $236,000. Such amount is included in comprehensive income.
<PAGE>


Note 7- Discontinued operations:

      On August 9, 2002, FREIT sold the Sheridan Apartments in Camden, NJ for
      cash of $1,050,000 and recognized a gain of approximately $475,000. FREIT
      has owned and operated the property since 1964.

      Summarized operating results included in discontinued operations in the
      accompanying consolidated statements of income for the quarter ended
      January 31, 2002 is as follows (in thousands):

                             Revenue                  $ 160
                             Expenses                  (202)
                                                      -----
                             Net Loss                 $ (42)
                                                      =====

                                      * * *

<PAGE>



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

--------------------------------------------------------------------------------
  Cautionary Statement Identifying Important Factors That Could Cause FREIT's
  Actual Results to Differ From Those Projected in Forward Looking Statements.

Readers of this discussion are advised that the discussion should be read in
conjunction with the unaudited condensed consolidated financial statements of
FREIT (including related notes thereto) appearing elsewhere in this Form 10-Q,
and the consolidated financial statements included in FREIT's most recently
filed Form 10-K. Certain statements in this discussion may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements reflect FREIT's
current expectations regarding future results of operations, economic
performance, financial condition and achievements of FREIT, and do not relate
strictly to historical or current facts. FREIT has tried, wherever possible, to
identify these forward-looking statements by using words such as "believe,"
"expect," "anticipate," "intend, " "plan," " estimate," or words of similar
meaning.

Although FREIT believes that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, such statements are subject to
risks and uncertainties, which may cause the actual results to differ materially
from those projected. Such factors include, but are not limited to, the
following: general economic and business conditions, which will, among other
things, affect demand for rental space, the availability of prospective tenants,
lease rents and the availability of financing; adverse changes in FREIT's real
estate markets, including, among other things, competition with other real
estate owners, risks of real estate development and acquisitions; governmental
actions and initiatives; and environmental/safety requirements.
--------------------------------------------------------------------------------

Overview

FREIT is an equity real estate investment trust ("REIT") that owns a portfolio
of residential apartment and retail properties. Our revenues consist primarily
of fixed rental income and additional rent in the form of expense reimbursements
derived from our income producing retail properties. We also receive income from
our 40% owned affiliate, Westwood Hills, LLC ("Westwood Hills") that owns a
residential apartment property. Starting in fiscal 2003, we also receive income
from our 40% owned affiliate Wayne PSC, L.L.C. ("WaynePCS") that owns the
Preakness shopping center. Our policy has been to acquire real property for
long-term investment.

SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

The Securities and Exchange Commission ("SEC") recently issued disclosure
guidance for "Critical Accounting Policies." The SEC defines Critical Accounting
Policies as those that require the application of Management's most difficult,
subjective, or complex judgments, often because of the need to make estimates
about the effect of matters that are inherently uncertain and may change in
subsequent periods.

Our discussion and analysis of our financial condition and results of operations
are based upon our consolidated financial statements, the preparation of which
takes into account estimates based on judgments and assumptions that affect
certain amounts and disclosures. Accordingly, actual results could differ from
these estimates. The accounting policies and estimates used and outlined in Note
1 to our Consolidated Financial Statements included in our annual report on Form
10-K, have been applied consistently as at January 31, 2003 and October 31,
2002, and for the three months ended January 31, 2003 and 2002. We believe that
the following accounting policies or estimates require the application of
Management's most difficult, subjective, or complex judgments:

<PAGE>



Revenue Recognition: Base rents, additional rents based on tenants' sales volume
and reimbursement of the tenants' share of certain operating expenses are
generally recognized when due from tenants. The straight-line basis is used to
recognize base rents under leases if they provide for varying rents over the
lease terms. Straight-line rents represent unbilled rents receivable to the
extent straight-line rents exceed current rents billed in accordance with lease
agreements. Before FREIT can recognize revenue, it is required to assess, among
other things, its collectibility. If we incorrectly determine the collectibility
of revenue, our net income and assets could be overstated.

Valuation of Long-Lived Assets: We periodically assess the carrying value of
long-lived assets whenever we determine that events or changes in circumstances
indicate that their carrying amount may not be recoverable. When FREIT
determines that the carrying value of long-lived assets may be impaired, the
measurement of any impairment is based on a projected discounted cash flows
method determined by FREIT's management. While we believe that our discounted
cash flow methods are reasonable, different assumptions regarding such cash
flows may significantly affect the measurement of impairment.

In October 2001, the Financial Accounting Standards Board (the "FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets." SFAS No. 144 requires the
reporting of discontinued operations to include components of an entity that
have either been disposed of or are classified as held for sale. FREIT has
adopted SFAS No. 144. On August 9, 2002 FREIT sold its Camden, NJ property.
FREIT has reclassified the net income (loss) from the operation of the property
as Discontinued Operations for all periods presented. The adoption of SFAS No.
144 did not have an impact on net income, but only impacted the presentation of
this property within the consolidated statements of income.

We feel that net income from continuing operations (which excludes the
operations of the Camden property) is the most significant element of net
income. Accordingly, all references and comparisons refer to income from
continuing operations unless otherwise stated. All references to per share
amounts are on a diluted basis (unless otherwise indicated)and refer to earnings
per share from continuing operations.

Results of Operations:
Quarters Ended January 31, 2003 and 2002

Revenue for the quarter increased slightly to $4,832,000 from $4,795,000 for the
prior year's quarter. Income from continuing operations dipped to $1,270,000
this quarter from $1,380,000 for the prior year's quarter. The charts below
detail the changes in revenue and expense components and the components of
income from continuing operations.

                                                          Quarter Ended
                                                --------------------------------
                                                    January 31,
                                                -----------------      Increase
                                                  2003       2002     (Decrease)
                                                  ----       ----     ----------
      Revenue                                               ($000)
       Real estate operations                   $ 4,698    $ 4,676      $   22
       Equity in income of affiliates                81         51          30
       Net investment income                         53         68         (15)
                                                ------------------------------
        Total revenue                             4,832      4,795          37
                                                ------------------------------
      Expenses
       Real estate operations                     2,276      2,084         192
       Financing costs                            1,194      1,216         (22)
       General and administrative expenses           92        115         (23)
                                                ------------------------------
        Total expenses                            3,562      3,415         147
                                                ------------------------------
      Income from continuing operations         $ 1,270    $ 1,380      $ (110)
                                                ==============================

<PAGE>



                                                         Quarter Ended
                                                --------------------------------
                                                    January 31,
                                                ------------------    Increase
                                                  2003        2002    (Decrease)
                                                  ----        ----    ----------
                                                             ($000)
      Net income components:

        Real estate operations                  $ 2,422     $ 2,592       $(170)
        Equity in income of affiliates               81          51          30
        Net investment income                        53          68         (15)
        Financing costs                          (1,194)     (1,216)         22
        General and administrative expenses         (92)       (115)         23
                                                -------------------------------
      Income from continuing operations         $ 1,270     $ 1,380       $(110)
                                                ===============================

The consolidated results of operations for the three months ended January 31,
2003 are not necessarily indicative of the results to be expected for the full
year.

RETAIL SEGMENT

NOI as used in this discussion reflects operating revenue and expenses directly
associated with the operations of the real estate properties, but excludes
straight lining of rents, depreciation and financing costs (See Note 6 to the
condensed consolidated financial statements).

FREIT's retail properties consist of six (6) properties totaling approximately
686,000 sq. ft. Four are multi-tenanted shopping centers and two are single
tenanted stores. Their operations are summarized in thousands below.

      Retail Segment
                                        Quarter ended
                                          January 31,        Increase (Decrease)
                                      ----------------       -------------------
                                       2003       2002          $          %
                                       ----       ----          -          -
      Revenues
      Minimum & percentage Rents      $2,328     $2,259       $  69        3.1%
      Reimbursements                     691        766         (75)      -9.8%
      Other                               12          8           4       50.0%
                                      ------     ------       -----      -----
      Total revenue                    3,031      3,033          (2)      -0.1%
                                      ------     ------       -----      -----

      Operating expenses                 971        862         109       12.6%
                                      ------     ------       -----      -----
      Net operating income            $2,060     $2,171       $(111)      -5.1%
                                      ======     ======       =====      =====

      Average occupancy %               93.0%      97.4%                 -4.40%
                                      ------     ------                  -----

Minimum and percentage rents at FREIT's retail properties increased 3.1% during
the quarter ended January 31, 2003 ("Current Quarter") compared to the quarter
ended January 31, 2002 ("Prior Quarter"). The increase in rents resulted from
increased base rents, and rents from tenant's that were not in occupancy for the
full quarter last year. These increases, however, were not large enough to cover
reimbursement losses due to higher vacancy or overcome the one time expense
recovery booked during the Prior Quarter.

<PAGE>



The increases in operating expenses are principally weather related, with higher
snow removal costs and utility costs accounting for 88% of the increase.

In February 2003, without any notice, a major tenant in one of our shopping
centers closed their store and ceased paying rent and additional rent, and is in
default of both monetary and non-monetary provisions of their lease. Annual rent
and other charges from this tenant approximate $400,000 per year. FREIT intends
to vigorously enforce the provisions of the lease. As of the date of this report
it is too early to determine the effect to FREIT of this tenant's default.

RESIDENTIAL SEGMENT

FREIT operates seven (7) multi-family apartment communities totaling 507
apartment units. The NOI of our residential properties is summarized in
thousands below

      Residential Segment

                                  Quarter Ended
                                    January 31,            Increase (Decrease)
                                -------------------     ------------------------
                                 2003         2002         $            %
                                 ----         ----         -            -
      Revenues
      Rents                     $1,596       $1,525       $ 71         4.7%
      Other                         16           17         (1)       -5.9%
                                ------       ------       ----        ----
      Total revenue              1,612        1,542         70         4.5%
                                ------       ------       ----        ----

      Operating expenses           717          632         85        13.4%
                                ------       ------       ----        ----
      Net operating income      $  895       $  910       $(15)       -1.6%
                                ======       ======       ====        ====

      Average occupancy %         96.0%        96.0%                   0.0%
                                ------       ------                   ----

Residential revenue for the current quarter increased 4.5% to $1,612,000 from
$1,542,000 last year. Higher monthly rents were the principal reason for the
increase. Revenue is principally composed of monthly apartment rental income.
Total apartment rental income is a factor of occupancy and monthly apartment
rents. For instance, at rental rates and occupancy levels at January 31, 2003, a
1% increase or decrease in average occupancy will cause an annual $66,700
increase or reduction in revenues, while a 1% increase or decrease in rental
rates will cause an annual $63,400 increase or decrease in annual revenues.

Average occupancy for the Current Quarter was unchanged at 96% from the Prior
Quarter.

During the Current Quarter operating expenses increased 13.4% over the Prior
Quarter. As a percentage of revenue, operating expenses were 44.4% of revenue
compared to 41% last year. Increases in snow removal and utility costs, because
of the current severe winter being experienced, were the principal reasons for
the expense increase. Higher than average snow removal and utility costs are
expected to prevail into the second fiscal quarter.

<PAGE>



EQUITY IN INCOME OF AFFILIATES

Prior to October 31, 2002 FREIT shared in the earnings of its 40% owned
affiliate, Westwood Hills which owns a 210 unit apartment community in Westwood,
NJ. Effective November 1, 2002, FREIT will also share in the earnings of its 40%
owned affiliate, Wayne PSC, which purchased the 323,000 sq. ft. Preakness
Shopping Center in Wayne, NJ, on November 1, 2002.

Net income at Westwood Hills during the Current Quarter fell to $83,000 from
$127,000 for the Prior Quarter. This resulted in FREIT's share of the affiliates
income to fall to $33,000 for the Current Quarter from $51,000 for the Prior
Quarter. While revenue at Westwood Hills increased 2.7%, the increase was not
sufficient to cover the 13.3% increase in operating expenses - principally snow
removal and utility costs - and the 8.6% increase in financing costs that
resulted from placing a $3.4 million second mortgage on Westwood Hills garden
apartment property. FREIT received 40% of the net mortgage proceeds. The effect
of this financing will be to add approximately $212,000 of financing costs to
Westwood Hills operations in fiscal 2003.

On November 1, 2002, Wayne PSC closed on the acquisition of the Preakness
shopping Center. For the Current Quarter, the Net income from the Center's
operations was $119,000. FREIT's share of this income was $48,000 (40%). FREIT's
share of income from this affiliate is expected to grow, as Stop and Shop, one
of the major anchors opened its super market on February 13, 2003.

FINANCING COSTS

Financing Costs for the Current Quarter decreased 1.8% to $1,194,000 from
$1,216,000 for the Prior Quarter. The decrease is principally attributable to
reduced interest costs resulting from lower mortgage balances from normal loan
amortization and because of FREIT's $10.9 million floating rate mortgage (Olney)
benefiting from the lower interest rate environment this year compared to last
year.

GENERAL ADMINISTRATIVE EXPENSES

Our G & A expenses decreased approximately 20% during the Current Quarter to
$92,000 from $115,000 from the Prior Quarter. Reductions in professional fees
and Trustee's fees were the principal factors.

LIQUIDITY AND CAPITAL RESOURCES

Our financial condition remains strong. Net Cash Provided By Operating
Activities increased 4.8% to $1.8 million for the Current Quarter from $1.7
million for the Prior Quarter. We expect that cash provided by operating
activities will be adequate to cover mandatory debt service payments, recurring
capital improvements and dividends necessary to retain qualification as a REIT
(90% of taxable income).

As at January 31, 2003, we had cash and cash equivalents totaling $12.6 million
compared to $11.9 million at October 31, 2002. During January 2003 FREIT
received approximately $1.4 million as a distribution from Westwood Hills as its
share of Westwood Hills second mortgage financing proceeds. These funds are
available for construction, property acquisitions, and general needs.

As previously reported, we are planning the construction of 129 apartment rental
units in Rockaway, NJ. The total capital required for this project is estimated
at $13.8 million. We expect to finance these costs, in part, from construction
and mortgage financing and, in part, from funds available in our institutional
money market investment.

<PAGE>



At January 31, 2003 FREIT's aggregate outstanding mortgage debt was $68.2
million. Approximately $57.3 million bears a fixed weighted average interest
rate of 7.512%, and an average life of approximately 9 years. Approximately
$10.9 million of mortgage debt bears an interest rate equal to 175 basis points
over LIBOR and resets at our option every 30, 60 or 90 days. This mortgage note
is due at the end of March 2003. Our lender has indicated a desire to extend the
loan for an additional three years and will be due and payable at the end of
March 2006. The fixed rate mortgages are subject to amortization schedules that
are longer than the term of the mortgages. As such, balloon payments for all
mortgage debt will be required as follows:

                         Fiscal Year        $ Millions
                         -----------        ----------
                         2007                $  15.7
                         2008                $  16.8
                         2010                $   9.2
                         2013                $   8.0
                         2014                $   9.4

The following table shows the estimated fair value and carrying value of our
long-term debt at January 31, 2003 and October 31, 2002:

                                      January 31,      October 31,
                 (In Millions)           2003             2002
                 -------------           ----             ----

                 Fair Value             $72.6            $73.5
                 Carrying Value         $68.2            $68.4

Fair values are estimated based on market interest rates at January 31, 2003 and
October 31, 2002 and on discounted cash flow analysis. Changes in assumptions or
estimation methods may significantly affect these fair value estimates.

FREIT expects to re-finance the individual mortgages with new mortgages when
their terms expire. To this extent we have exposure to interest rate risk on our
fixed rate debt obligations. If interest rates, at the time any individual
mortgage note is due, are higher than the current fixed interest rate, higher
debt service may be required, and/or re-financing proceeds may be less than the
amount of mortgage debt being retired. For example, a one percent interest rate
increase would reduce the Fair Value of our debt by $3.1 million, and a one
percent decrease would increase the Fair Value by $3.3 million.

Additionally, we have exposure on our floating rate debt. A one percent change
in rates, up or down, will decrease or increase income and cash flow by
approximately $109,000.

We believe that the values of our properties will be adequate to command
re-financing proceeds equal to, or higher than the mortgage debt to be
re-financed. We continually review our debt levels to determine if additional
debt can prudentially be utilized for property acquisition additions to our real
estate portfolio that will increase income and cash flow to shareholders.

FREIT also has the ability to draw, if needed, against its $14 million, two-year
revolving line of credit. To date, no draws have been made against this credit
line.

<PAGE>



INFLATION

Inflation can impact the financial performance of FREIT in various ways. Our
retail tenant leases normally provide that the tenants bear all or a portion of
most operating expenses, which can reduce the impact of inflationary increases
on FREIT. Apartment leases are normally for a one-year term, which may allow us
to seek increased rents as leases renew or when new tenants are obtained.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

See "Liquidity and Capital Resources" above.

Item 4: Controls and Procedures

Within the ninety (90) days prior to the filing date of this quarterly report on
Form 10-Q, we carried out an evaluation of the effectiveness of the design and
operation of FREIT's disclosure controls and procedures. This evaluation was
carried out under the supervision and with participation of FREIT's management,
including FREIT's Chairman and Chief Executive Officer and Chief Financial
Officer, who concluded that FREIT's disclosure controls and procedures are
effective. There have been no significant changes in FREIT's internal controls
or in other factors, which could significantly affect internal controls
subsequent to the date we carried out our evaluation.

Disclosure controls and procedures are controls and other procedures that are
designed to ensure that information required to be disclosed in FREIT's reports
filed or submitted under the Exchange Act is recorded, processed, summarized,
and reported, within the time periods specified in the SEC's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in
FREIT's reports filed under the Exchange Act is accumulated and communicated to
management, including FREIT's Chief Executive Officer and Chief Financial
Officer as appropriate, to allow timely decisions regarding required disclosure.

<PAGE>



Part II Other Information

Item 6. Exhibits and Reports on Form 8-K

      During the first quarter ended January 31,m 2003, the following reports on
      Form 8-K were filed with the SEC:

      (a)   On November 1, 2002, FREIT filed a report on Form 8-K announcing
            that its affiliate Wayne PSC, LLC completed the acquisition of the
            Preakness Shopping Center in Wayne, NJ. A copy of the press release
            was attached.

      (b)   On November 27, 2002, FREIT filed a report on Form 8-K announcing
            its operating results for the year and quarter ended October 31,
            2002. A copy of the press release was attached.

                                  Exhibit Index

      Exhibit 99.1 Certification of Chief Executive Officer

      Exhibit 99.2 Certification of Chief Financial Officer

                                   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 19, 2003


                                /s/ Robert S. Hekemian
                                ------------------------------------------------
                                            (Signature)
                                Robert S. Hekemian.
                                Chairman of the Board and
                                Chief Executive Officer


                                /s/ Donald W. Barney
                                ------------------------------------------------
                                    (Signature)
                                Donald W. Barney
                                President, Treasurer and Chief Financial Officer
                                (Principal Financial/Accounting Officer)

<PAGE>



                                  CERTIFICATION

      I, Robert S. Hekemian, Chairman of the Board and Chief Executive Officer
of First Real Estate Investment Trust of New Jersey certify that:

      1. I have reviewed this quarterly report on Form 10-Q of First Real Estate
Investment Trust of New Jersey;

      2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

      3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

      4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

            a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

            b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

            c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

      5. The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the
equivalent functions):

            a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

            b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

      6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date: March 19, 2003            /s/ Robert S. Hekemian
                               -------------------------------------------------
                               Robert S. Hekemian
                               Chairman of the Board and Chief Executive Officer

<PAGE>



                                  CERTIFICATION

      I, Donald W. Barney, President, Treasurer and Chief Financial Officer of
First Real Estate Investment Trust of New Jersey certify that:

      1. I have reviewed this quarterly report on Form 10-Q of First Real Estate
Investment Trust of New Jersey;

      2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
quarterly report;

      3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

      4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

            a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;

            b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and

            c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;

      5. The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of the registrant's board of directors (or persons performing the
equivalent functions):

            a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

            b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and

      6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date: March 19, 2003                              /s/ Donald W. Barney
                                                  ------------------------
                                                  Donald W. Barney
                                                  President, Treasurer and
                                                   Chief Financial Officer

<PAGE>