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

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

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

----

----

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

----

D

| Part      I: Financial      Information |                                                                                             |
|-----------------------------------------|--------------------------------------------------------------------------------------------------|
|                                    |                                                                                             |   | Page |
|                                    |                                                                                             |   |   |
| Item 1:                                 | Unaudited Condensed Consolidated Financial      Statements                                       |   |
|                                    |                                                                                             |   |   |
|                                    | a.)                                                                                              | Condensed Consolidated Balance Sheets as at January 31, 2010      and October 31, 2009; | 3 |
|                                    |                                                                                             |   |   |
|                                    | b.)                                                                                              | Condensed Consolidated Statements of Income for the Three      Months Ended January 31, 2010 and 2009; | 4 |
|                                    |                                                                                             |   |   |
|                                    | c.)                                                                                              | Condensed Consolidated Statement of Equity for the Period Ended      January 31, 2010; | 5 |
|                                    |                                                                                             |   |   |
|                                    | d.)                                                                                              | Condensed Consolidated Statements of Cash Flows for the Three      Months Ended January 31, 2010 and 2009; | 6 |
|                                    |                                                                                             |   |   |
|                                    | e.)                                                                                              | Notes to Condensed Consolidated Financial      Statements. | 7 |
|                                    |                                                                                             |   |   |
| Item 2:                                 | Management’s Discussion and Analysis of Financial Condition and      Results of Operations | 11 |
|                                    |                                                                                             |   |   |
| Item 3:                                 | Quantitative and Qualitative Disclosures About Market      Risk                                  | 21 |
|                                    |                                                                                             |   |   |
| Item 4:                                 | Controls and Procedures                                                                          | 21 |
|                                    |                                                                                             |   |   |
|                                    |                                                                                             |   |   |
| Part      II: Other      Information    |                                                                                             |
|                                    |                                                                                             |   |   |
| Item 1:                                 | Legal Proceedings                                                                                | 21 |
|                                    |                                                                                             |   |   |
| Item 1A:                                | Risk Factors                                                                                     | 21 |
|                                    |                                                                                             |   |   |
| Item 6:                                 | Exhibits                                                                                         | 21 |
|                                    |                                                                                             |   |
| Signatures                              |                                                                                             |   | 22 |
|                                    |                                                                                             |   |   |

----

Index

n

a

|                                                                               |   |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|        FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND      SUBSIDIARIES |
|        CONDENSED      CONSOLIDATED BALANCE SHEETS                             |
|                                                                               |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |
|                                                                               |   |   |   |   |   |   |   |   |   |

|                                                                                                |   | (Unaudited)                    |    |   |             |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|--------|------------------|--------|
|                                                                                                |   | January      31,               |    |   | October      31, |   |
|                                                                                                |   | 2010                           |    |   | 2009             |   |
|                                                                                                |   | (In      Thousands of Dollars) |    |
| ASSETS                                                                                              |   |                           |    |   |             |   |
|                                                                                                |   |                           |    |   |             |   |
| Real      estate, at cost, net of accumulated depreciation                                          |   | $                              | 213,719 |   |             | $      | 214,283 |   |
| Construction      in progress                                                                       |   |                           | 9,760   |   |             |   | 9,694 |   |
| Cash      and cash equivalents                                                                      |   |                           | 6,252   |   |             |   | 6,751 |   |
| Investments      in US Treasury Bills at amortized cost,                                            |   |                           |    |   |             |   |   |   |
|     which      approximates fair value                                          |   |                           | 4,549   |   |             |   | 4,549 |   |
| Tenants'      security accounts                                                                     |   |                           | 2,121   |   |             |   | 2,147 |   |
| Sundry      receivables                                                                             |   |                           | 4,552   |   |             |   | 4,440 |   |
| Secured      loans receivable                                                                       |   |                           | 3,326   |   |             |   | 3,326 |   |
| Prepaid      expenses and other assets                                                              |   |                           | 2,661   |   |             |   | 3,198 |   |
| Acquired      over market leases and in-place lease costs                                           |   |                           | 630     |   |             |   | 670 |   |
| Deferred      charges, net                                                                          |   |                           | 2,711   |   |             |   | 2,793 |   |
| Total      Assets                                                                                   |   | $                              | 250,281 |   |             | $      | 251,851 |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
| LIABILITIES &      EQUITY                                                                       |   |                           |    |   |             |   |   |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
| Liabilities:                                                                                        |   |                           |    |   |             |   |   |   |
| Mortgages      payable                                                                              |   | $                              | 201,596 |   |             | $      | 202,260 |   |
| Accounts      payable and accrued expenses                                                          |   |                           | 7,625   |   |             |   | 7,496 |   |
| Dividends      payable                                                                              |   |                           | 2,083   |   |             |   | 2,083 |   |
| Tenants'      security deposits                                                                     |   |                           | 2,762   |   |             |   | 2,847 |   |
| Acquired      below market value leases and deferred revenue                                        |   |                           | 3,077   |   |             |   | 3,049 |   |
| Total      liabilities                                                                              |   |                           | 217,143 |   |             |   | 217,735 |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
| Commitments      and contingencies                                                                  |   |                           |    |   |             |   |   |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
| Equity:                                                                                             |   |                           |    |   |             |   |   |   |
| Common      equity:                                                                                 |   |                           |    |   |             |   |   |   |
| Shares      of beneficial interest without par value:                                               |   |                           |    |   |             |   |   |   |
|        8,000,000      shares authorized; 6,993,152 shares issued |   |                           | 24,969  |   |             |   | 24,969 |   |
| Treasury      stock, at cost: 51,009 shares                                                         |   |                           | (1,135  | )      |             |   | (1,135 | ) |
| Dividends      in excess of net income                                                              |   |                           | (4,023  | )      |             |   | (3,112 | ) |
| Total      common equity                                                                            |   |                           | 19,811  |   |             |   | 20,722 |   |
| Noncontrolling      interests in subsidiaries                                                       |   |                           | 13,327  |   |             |   | 13,394 |   |
| Total      equity                                                                                   |   |                           | 33,138  |   |             |   | 34,116 |   |
| Total      Liabilities & Equity                                                                 |   | $                              | 250,281 |   |             | $      | 251,851 |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
|                                                                                                |   |                           |    |   |             |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.                                      |   |                           |    |   |             |   |   |   |

----

Index

| FIRST      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND  SUBSIDIARIES |
|-------------------------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME                        |
| THREE      MONTHS ENDED JANUARY 31, 2010 AND 2009                       |
| (Unaudited)                                                             |
|                                                                    |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |

|                                                                          |   | Three      Months Ended                                       |   |
|-------------------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                                          |   | January      31,                                              |   |
|                                                                          |   | 2010                                                          |   |   | 2009 |   |
|                                                                          |   | (In      Thousands of Dollars, Except Per Share Amounts) |   |
| Revenue:                                                                      |   |                                                          |   |   |   |   |
| Rental      income                                                            |   | $                                                             | 9,334  |   |   | $ | 9,192 |   |
| Reimbursements                                                                |   |                                                          | 1,434  |   |   |   | 1,405 |   |
| Sundry      income                                                            |   |                                                          | 81     |   |   |   | 152 |   |
| Totals                                                                        |   |                                                          | 10,849 |   |   |   | 10,749 |   |
|                                                                          |   |                                                          |   |   |   |   |   |   |
| Expenses:                                                                     |   |                                                          |   |   |   |   |   |   |
| Operating      expenses                                                       |   |                                                          | 2,924  |   |   |   | 2,700 |   |
| Management      fees                                                          |   |                                                          | 469    |   |   |   | 463 |   |
| Real      estate taxes                                                        |   |                                                          | 1,656  |   |   |   | 1,592 |   |
| Depreciation                                                                  |   |                                                          | 1,521  |   |   |   | 1,474 |   |
| Totals                                                                        |   |                                                          | 6,570  |   |   |   | 6,229 |   |
|                                                                          |   |                                                          |   |   |   |   |   |   |
| Operating      income                                                         |   |                                                          | 4,279  |   |   |   | 4,520 |   |
|                                                                          |   |                                                          |   |   |   |   |   |   |
| Investment      income                                                        |   |                                                          | 36     |   |   |   | 79 |   |
| Interest      expense including amortization                                  |   |                                                          |   |   |   |   |   |   |
|   of      deferred financing costs                                  |   |                                                          | (2,862 | ) |   |   | (2,715 | ) |
|     Net      income                                       |   |                                                          | 1,453  |   |   |   | 1,884 |   |
| Net      income attributable to noncontrolling interests in      subsidiaries |   |                                                          | (281   | ) |   |   | (363 | ) |
|     Net      income attributable to common equity         |   | $                                                             | 1,172  |   |   | $ | 1,521 |   |
|                                                                          |   |                                                          |   |   |   |   |   |   |
| Earnings      per share (attributable to common equity):                      |   |                                                          |   |   |   |   |   |   |
|     Basic                                                 |   | $                                                             | 0.17   |   |   | $ | 0.22 |   |
|     Diluted                                               |   | $                                                             | 0.17   |   |   | $ | 0.22 |   |
|                                                                          |   |                                                          |   |   |   |   |   |   |
| Weighted      average shares outstanding:                                     |   |                                                          |   |   |   |   |   |   |
| Basic                                                                         |   |                                                          | 6,942  |   |   |   | 6,946 |   |
| Diluted                                                                       |   |                                                          | 6,942  |   |   |   | 6,946 |   |
|                                                                          |   |                                                          |   |   |   |   |   |   |
|                                                                          |   |                                                          |   |   |   |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.                |   |                                                          |   |   |   |

----

Index

| FIRST      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND  SUBSIDIARIES |
|-------------------------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENT OF EQUITY                         |
| (Unaudited)                                                             |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                           |   | Common      Equity                |   |   |                        |   |   |                                  |   |
|----------------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------|--------|--------|---------------------------------------|--------|
|                                                           |   | Shares      of BeneficialInterest |   |   | Treasury      Shares atCost |   |   | Dividends      in Excess of NetIncome |   |   | TotalCommon      Equity |   |   | Noncontrolling      Interests |   |   | Total      Equity |   |
|                                                           |   | (In      Thousands of Dollars)    |   |
|                                                           |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |
| Balance      at October 31, 2009                               |   | $                                 | 24,969 |   |                        | $      | (1,135 | )                                     |   | $ | (3,112 | ) |   | $ | 20,722 |   |   | $ | 13,394 |   |   | $ | 34,116 |   |
|                                                           |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions      to noncontrolling interests                 |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   | (348 | ) |   |   | (348 | ) |
|                                                           |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                                |   |                              |   |   |                        |   |   |                                  |   |   | 1,172 |   |   |   | 1,172 |   |   |   | 281 |   |   |   | 1,453 |   |
|                                                           |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared                                        |   |                              |   |   |                        |   |   |                                  |   |   | (2,083 | ) |   |   | (2,083 | ) |   |   |   |   |   |   | (2,083 | ) |
|                                                           |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at January 31, 2010                               |   | $                                 | 24,969 |   |                        | $      | (1,135 | )                                     |   | $ | (4,023 | ) |   | $ | 19,811 |   |   | $ | 13,327 |   |   | $ | 33,138 |   |
|                                                           |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements. |   |                              |   |   |                        |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

Index

| FIRST      REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND  SUBSIDIARIES |
|-------------------------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                    |
| THREE      MONTHS ENDED JANUARY 31, 2010 AND 2009                       |
| (Unaudited)                                                             |
|                                                                    |   |   |   |   |   |   |   |

|                                                                                                                   |   | Three      Months Ended        |   |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                                   |   | January      31,               |   |
|                                                                                                                   |   | 2010                           |   |   | 2009 |   |
|                                                                                                                   |   | (In      Thousands of Dollars) |   |
| Operating      activities:                                                                                             |   |                           |   |   |   |   |
| Net      income                                                                                                        |   | $                              | 1,453  |   |   | $ | 1,884 |   |
| Adjustments      to reconcile net income to net cash provided by                                                       |   |                           |   |   |   |   |   |   |
| operating      activities:                                                                                             |   |                           |   |   |   |   |   |   |
|   Depreciation                                                                                               |   |                           | 1,521  |   |   |   | 1,474 |   |
|   Amortization                                                                                               |   |                           | 121    |   |   |   | 118 |   |
|   Net      amortization of acquired leases                                                                   |   |                           | 8      |   |   |   | 9 |   |
|   Deferred      revenue                                                                                      |   |                           | 47     |   |   |   | (29 | ) |
|  Changes      in operating assets and liabilities:                                                                |   |                           |   |   |   |   |   |   |
| Tenants'      security accounts                                                                                        |   |                           | 26     |   |   |   | 62 |   |
| Sundry      receivables, prepaid expenses and other assets                                                             |   |                           | 381    |   |   |   | 30 |   |
| Accounts      payable, accrued expenses and other liabilities                                                          |   |                           | 69     |   |   |   | (35 | ) |
| Tenants'      security deposits                                                                                        |   |                           | (85    | ) |   |   | (57 | ) |
| Net      cash provided by operating activities                                                                         |   |                           | 3,541  |   |   |   | 3,456 |   |
| Investing      activities:                                                                                             |   |                           |   |   |   |   |   |   |
| Capital      improvements - existing properties                                                                        |   |                           | (341   | ) |   |   | (815 | ) |
| Construction      and pre - development costs                                                                          |   |                           | (615   | ) |   |   | (547 | ) |
|                                                                                                                   |   |                           |   |   |   |   |   |   |
| Net      cash used in investing activities                                                                             |   |                           | (956   | ) |   |   | (1,362 | ) |
| Financing      activities:                                                                                             |   |                           |   |   |   |   |   |   |
| Repayment      of mortgages                                                                                            |   |                           | (704   | ) |   |   | (576 | ) |
| Proceeds      from mortgages and construction loans                                                                    |   |                           | 40     |   |   |   | 516 |   |
| Deferred      financing costs                                                                                          |   |                           | 11     |   |   |   | 6 |   |
| Dividends      paid                                                                                                    |   |                           | (2,083 | ) |   |   | (2,084 | ) |
| Distributions      to noncontrolling interests                                                                         |   |                           | (348   | ) |   |   | (120 | ) |
| Net      cash used in financing activities                                                                             |   |                           | (3,084 | ) |   |   | (2,258 | ) |
| Net      decrease in cash and cash equivalents                                                                         |   |                           | (499   | ) |   |   | (164 | ) |
| Cash      and cash equivalents, beginning of period                                                                    |   |                           | 6,751  |   |   |   | 8,192 |   |
| Cash      and cash equivalents, end of period                                                                          |   | $                              | 6,252  |   |   | $ | 8,028 |   |
|                                                                                                                   |   |                           |   |   |   |   |   |   |
| Supplemental      disclosure of cash flow data:                                                                        |   |                           |   |   |   |   |   |   |
| Interest      paid, including capitalized construction period interest                                                 |   |                           |   |   |   |   |   |   |
|      of      $40 and $55 in fiscal 2010 and 2009, respectively.                               |   | $                              | 2,720  |   |   | $ | 2,591 |   |
| Supplemental      schedule of non cash activities:                                                                     |   |                           |   |   |   |   |   |   |
| Investing      activities:                                                                                             |   |                           |   |   |   |   |   |   |
|     Accrued      capital expenditures, construction costs, pre-development costs and      interest |   | $                              | 59     |   |   | $ | 278 |   |
| Financing      activities:                                                                                             |   |                           |   |   |   |   |   |   |
|     Dividends      declared but not paid                                                           |   | $                              | 2,083  |   |   | $ | 2,084 |   |
|                                                                                                                   |   |                           |   |   |   |   |   |   |
| See      Notes to Condensed Consolidated Financial Statements.                                                         |   |                           |   |   |   |   |   |   |

----

Index

|   | · | The      objective of ASC 805 is to improve the relevance, representational      faithfulness, and comparability of the information that a reporting entity      provides in its financial reports about a business combination and its      effects. To accomplish that, this Statement establishes principles and      requirements for how the acquirer: |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a.) | Recognizes      and measures in its financial statements the identifiable assets acquired,      the liabilities assumed, and any non-controlling interest in the      acquiree; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.) | Recognizes      and measures the goodwill acquired in the business combination or a gain      from a bargain purchase; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | c.) | Determines      what information to disclose to enable users of the financial statements      to evaluate the nature and financial effects of the business      combination. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      objective of ASC 810 is to improve the relevance, comparability and      transparency of financial information provided to investors by: (i)      requiring entities to report non-controlling interests (minority      interests) as equity in the consolidated financial statements and separate      from the parent’s equity; (ii) requiring that the amount of net income      attributable to the parent and non-controlling interest be clearly      identified and presented on the face of the consolidated statement of      income; and (iii) expanding the disclosure requirements with respect to      the parent and its non-controlling interests. The Company adopted ASC 810      effective November 1, 2009, and as required, has retrospectively applied      the presentation and disclosure requirements to prior periods presented in      this 10-Q. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a.) | Prior      to the adoption of ASC 810, FREIT could not record a negative minority      interest in its consolidated financial statements if the minority members      had no obligation to restore their negative capital accounts. As a result,      FREIT was accounting for the minority members’ capital deficit of its      Westwood Hills subsidiary as a charge to income and a reduction to      undistributed earnings. As of November 1, 2009, the amount of the minority      members’ capital deficit that was booked as a reduction to FREIT’s      undistributed earnings was approximately $2.3  million. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.) | In      accordance with the provisions of ASC 810, FREIT is required to disclose      the pro forma impact on its consolidated net income and earnings per      share, had the requirements of ASC 810 not been applied for the current      quarter. As such, FREIT’s pro forma consolidated net income attributable      to common equity for the first quarter ended January 31, 2010 would have      been $1,243,000 ($0.18 per sharediluted). |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

Index

|                                                     |   | Three      Months Ended        |   |
|----------------------------------------------------------|--------|--------------------------------|--------|
|                                                     |   | January      31,               |   |
|                                                     |   | 2010                           |   |   | 2009 |   |
|                                                     |   | (In      Thousands of Dollars) |   |
| Real      estate rental revenue:                         |   |                           |   |   |   |   |
| Commercial                                               |   | $                              | 6,096  |   |   | $ | 5,816 |   |
| Residential                                              |   |                           | 4,708  |   |   |   | 4,891 |   |
| Totals                                                   |   |                           | 10,804 |   |   |   | 10,707 |   |
| Real      estate operating expenses:                     |   |                           |   |   |   |   |   |   |
| Commercial                                               |   |                           | 2,375  |   |   |   | 2,307 |   |
| Residential                                              |   |                           | 2,246  |   |   |   | 2,034 |   |
| Totals                                                   |   |                           | 4,621  |   |   |   | 4,341 |   |
| Net      operating income:                               |   |                           |   |   |   |   |   |   |
| Commercial                                               |   |                           | 3,721  |   |   |   | 3,509 |   |
| Residential                                              |   |                           | 2,462  |   |   |   | 2,857 |   |
| Totals                                                   |   | $                              | 6,183  |   |   | $ | 6,366 |   |
| Recurring      capital improvements-residential          |   | $                              | 85     |   |   | $ | 129 |   |
|                                                     |   |                           | .      |   |   |   |   |   |
| Reconciliation      to consolidated net income:          |   |                           |   |   |   |   |   |   |
| Segment      NOI                                         |   | $                              | 6,183  |   |   | $ | 6,366 |   |
| Deferred      rents - straight lining                    |   |                           | 53     |   |   |   | 51 |   |
| Amortization      of acquired leases                     |   |                           | (8     | ) |   |   | (9 | ) |
| Investment      income                                   |   |                           | 36     |   |   |   | 79 |   |
| General      and administrative expenses                 |   |                           | (428   | ) |   |   | (414 | ) |
| Depreciation                                             |   |                           | (1,521 | ) |   |   | (1,474 | ) |
| Financing      costs                                     |   |                           | (2,862 | ) |   |   | (2,715 | ) |
|     Net      income                  |   |                           | 1,453  |   |   |   | 1,884 |   |
| Net      income attributable to noncontrolling interests |   |                           | (281   | ) |   |   | (363 | ) |
| Net      income attributable to common equity            |   | $                              | 1,172  |   |   | $ | 1,521 |   |

----

Index

----

Index

g

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

----

Index

----

Index

|   | · | The      objective of ASC 805 is to improve the relevance, representational      faithfulness, and comparability of the information that a reporting entity      provides in its financial reports about a business combination and its      effects. To accomplish that, this Statement establishes principles and      requirements for how the acquirer: |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a.) | Recognizes      and measures in its financial statements the identifiable assets acquired,      the liabilities assumed, and any non-controlling interest in the      acquiree; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b.) | Recognizes      and measures the goodwill acquired in the business combination or a gain      from a bargain purchase; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | c.) | Determines      what information to disclose to enable users of the financial statements      to evaluate the nature and financial effects of the business      combination. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      objective of ASC 810 is to improve the relevance, comparability and      transparency of financial information provided to investors by: (i)      requiring entities to report non-controlling interests (minority      interests) as equity in the consolidated financial statements and separate      from the parent’s equity; (ii) requiring that the amount of net income      attributable to the parent and non-controlling interest be clearly      identified and presented on the face of the consolidated statement of      income; and (iii) expanding the disclosure requirements with respect to      the parent and its non-controlling interests. The Company adopted ASC 810      effective November 1, 2009, and as required, has retrospectively applied      the presentation and disclosure requirements to prior periods presented in      this 10-Q. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

| NET      INCOME COMPONENTS                                                                 |   |                        |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                       |   | Three      Months Ended     |   |
|                                                                                       |   | January      31,            |   |
|                                                                                       |   | 2010                        |   |   | 2009   |   |   | Change |   |
|                                                                                       |   | (thousands      of dollars) |   |
| Income      from real estate operations:                                                   |   |                        |   |   |   |   |   |   |   |
|     Commercial      properties                                         |   | $                           | 3,766  |   |   | $      | 3,551  |   |   | $ | 215 |   |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
|     Residential      properties                                        |   |                        | 2,462  |   |   |   | 2,857  |   |   |   | (395 | ) |
|       Total      income from real estate operations          |   |                        | 6,228  |   |   |   | 6,408  |   |   |   | (180 | ) |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
| Financing      costs:                                                                      |   |                        |   |   |   |   |   |   |   |   |   |   |
| Fixed      rate mortgages                                                                  |   |                        | (2,665 | )      |   |   | (2,582 | )      |   |   | (83 | ) |
| Floating      rate - Rotunda                                                               |   |                        | (197   | )      |   |   | (133   | )      |   |   | (64 | ) |
|   Total      financing costs                                                     |   |                        | (2,862 | )      |   |   | (2,715 | )      |   |   | (147 | ) |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
| Investment      income                                                                     |   |                        | 36     |   |   |   | 79     |   |   |   | (43 | ) |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
| General      & administrative expenses:                                                |   |                        |   |   |   |   |   |   |   |   |   |   |
|     Accounting      fees                                               |   |                        | (166   | )      |   |   | (100   | )      |   |   | (66 | ) |
|     Legal      & professional fees                                 |   |                        | (17    | )      |   |   | (50    | )      |   |   | 33 |   |
|     Trustee      fees                                                  |   |                        | (130   | )      |   |   | (124   | )      |   |   | (6 | ) |
|     Corporate      expenses                                            |   |                        | (115   | )      |   |   | (140   | )      |   |   | 25 |   |
|   Total      general & administrative expenses                               |   |                        | (428   | )      |   |   | (414   | )      |   |   | (14 | ) |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
| Depreciation:                                                                              |   |                        |   |   |   |   |   |   |   |   |   |   |
| Same properties      (1)                                                                   |   |                        | (1,469 | )      |   |   | (1,474 | )      |   |   | 5 |   |
| Damascus      center - Safeway portion of Phase II becoming operational in Sept      2009. |   |                        | (52    | )      |   |   | -      |   |   |   | (52 | ) |
|   Total      depreciation                                                        |   |                        | (1,521 | )      |   |   | (1,474 | )      |   |   | (47 | ) |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
|     Net      income                                                    |   | $                           | 1,453  |   |   | $      | 1,884  |   |   | $ | (431 | ) |
| Net      income attributable to noncontrolling interests in      subsidiaries              |   |                        | (281   | )      |   |   | (363   | )      |   |   | 82 |   |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
|     Net      Income attributable to common equity                      |   | $                           | 1,172  |   |   | $      | 1,521  |   |   | $ | (349 | ) |
|                                                                                       |   |                        |   |   |   |   |   |   |   |   |   |   |
| (1)      Properties operated since the beginning of Fiscal 2009.                           |   |                        |   |   |   |   |   |   |   |

----

Index

|                      |   | Commercial              |   | Residential         |   | Combined         |
|---------------------------|--------|-------------------------|--------|---------------------|--------|------------------|
|                      |   | Three      Months Ended |   |                |   |             |   |   |   | Three      Months Ended |   |   |   |   |   |   |   | Three      Months Ended |
|                      |   | January      31,        |   | Increase (Decrease) |   | January      31, |   | Increase (Decrease) |   | January      31, |
|                      |   | 2010                    |   | 2009                |   | $                |   | % |   | 2010 |   | 2009 |   | $ |   | % |   | 2010 |   | 2009 |
|                      |   | (in      thousands)     |   |                |   |             | (in      thousands) |   |   |   |   | (in      thousands) |
| Rental      income        |   | $                       | 4,638  |                |   | $                | 4,360 |   |   | $ | 278 |   |   |   | 6.4 | % |   | $ | 4,651 |   |   | $ | 4,790 |   |   | $ | (139 | ) |   |   | -2.9 | % |   | $ | 9,289 |   |   | $ | 9,150 |   |
| Reimbursements            |   |                    | 1,434  |                |   |             | 1,405 |   |   |   | 29 |   |   |   | 2.1 | % |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   |   | 1,434 |   |   |   | 1,405 |   |
| Other                     |   |                    | 24     |                |   |             | 51 |   |   |   | (27 | ) |   |   | -52.9 | % |   |   | 57 |   |   |   | 101 |   |   |   | (44 | ) |   |   | -43.6 | % |   |   | 81 |   |   |   | 152 |   |
| Total      revenue        |   |                    | 6,096  |                |   |             | 5,816 |   |   |   | 280 |   |   |   | 4.8 | % |   |   | 4,708 |   |   |   | 4,891 |   |   |   | (183 | ) |   |   | -3.7 | % |   |   | 10,804 |   |   |   | 10,707 |   |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses   |   |                    | 2,375  |                |   |             | 2,307 |   |   |   | 68 |   |   |   | 2.9 | % |   |   | 2,246 |   |   |   | 2,034 |   |   |   | 212 |   |   |   | 10.4 | % |   |   | 4,621 |   |   |   | 4,341 |   |
| Net      operating income |   | $                       | 3,721  |                |   | $                | 3,509 |   |   | $ | 212 |   |   |   | 6.0 | % |   | $ | 2,462 |   |   | $ | 2,857 |   |   | $ | (395 | ) |   |   | -13.8 | % |   |   | 6,183 |   |   |   | 6,366 |   |
| Average                   |   |                    |   |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Occupancy      %          |   |                    | 90.5   | %                   |   |             | 89.2 | % |   |   |   |   |   |   | 1.3 | % |   |   | 93.2 | % |   |   | 93.8 | % |   |   |   |   |   |   | -0.6 | % |   |   |   |   |   |   |   |   |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Reconciliation      to consolidated net income: |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Deferred      rents - straight lining |   |   |   |   |   |   | 53 |   |   |   | 51 |   |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Amortization      of acquired leases |   |   |   |   | (8 | ) |   |   | (9 | ) |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Investment      income |   |   |   |   |   | 36 |   |   |   | 79 |   |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | General      and administrative expenses |   |   |   |   | (428 | ) |   |   | (414 | ) |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Depreciation |   |   |   |   | (1,521 | ) |   |   | (1,474 | ) |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Financing      costs |   |   |   |   | (2,862 | ) |   |   | (2,715 | ) |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Net      income |   |   |   | 1,453 |   |   |   | 1,884 |   |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Net      income attributable to noncontrolling interests |   |   |   | (281 | ) |   |   | (363 | ) |
|                      |   |                    |   |                |   |             |   |   |   |   |   |   |   | Net      income attributable to common equity |   |   | $ | 1,172 |   |   | $ | 1,521 |   |

----

Index

----

Index

|                                                             |   | Three      Months Ended |   |
|------------------------------------------------------------------|--------|-------------------------|--------|
|                                                             |   | January      31,        |   |
|                                                             |   | 2010                    |   |   | 2009 |   |
|                                                             |   | ($      in thousands)   |   |
|  Fixed      rate mortgages:                                 |   |                    |   |   |   |   |
|     1st      Mortgages                       |   |                    |   |   |   |   |
|     Existing                                 |   | $                       | 2,134  |   |   | $ | 2,338 |   |
|     New      (1)                             |   |                    | 304    |   |   |   | - |   |
|     2nd      Mortgages                       |   |                    |   |   |   |   |   |   |
|     Existing                                 |   |                    | 85     |   |   |   | 126 |   |
| Variable      rate mortgages:                                    |   |                    |   |   |   |   |   |   |
|     Acquisition      loan-Rotunda            |   |                    | 197    |   |   |   | 175 |   |
|     Construction      loan-Damascus          |   |                    | 40     |   |   |   | 48 |   |
|  Other                                                      |   |                    | 89     |   |   |   | 72 |   |
|                                                             |   |                    | 2,849  |   |   |   | 2,759 |   |
|  Amortization      of Mortgage Costs                        |   |                    | 53     |   |   |   | 59 |   |
|  Total      Financing Costs                                 |   |                    | 2,902  |   |   |   | 2,818 |   |
|       Less      amount capitalized |   |                    | (40    | ) |   |   | (103 | ) |
|  Financing      costs expensed                              |   | $                       | 2,862  |   |   | $ | 2,715 |   |
|                                                             |   |                    |   |   |   |   |   |   |
| (1)      Mortgages not in place at beginning of Fiscal 2009.     |   |

----

Index

| Fiscal      Year                 | 2012   | 2013               | 2014   | 2016   | 2017   | 2018   | 2019   | 2022   |
|----------------------------------|--------|--------------------|--------|--------|--------|--------|--------|--------|
| ($      in millions)             |   |               |   |   |   |   |   |   |
| Mortgage      "Balloon" Payments | $9.9   | $27.5       * | $25.9  | $24.5  | $22.0  | $5.0   | $45.0  | $14.4  |

|                 |   | January      31, |   |   | October      31, |   |
|----------------------|--------|------------------|--------|--------|------------------|--------|
| ($      in Millions) |   | 2010             |   |   | 2009             |   |
| Fair      Value      |   | $                | 195.5  |   |             | $      | 198.1 |   |
|                 |   |             |   |   |             |   |   |   |
| Carrying      Value  |   | $                | 201.6  |   |             | $      | 202.3 |   |

----

Index

|                                           |                                      |   | Three      Months Ended |   |
|------------------------------------------------|-------------------------------------------|--------|-------------------------|--------|
|                                           |                                      |   | January      31,        |   |
|                                           |                                      |   | 2010                    |   |   | 2009 |   |
|                                           |                                      |   | ($      in thousands)   |   |
|                                           |                                      |   |                    |   |   |   |   |
| Net      income                                |                                      | $      | 1,453                   |   |   | $ | 1,884 |   |
| Depreciation                                   |                                      |   | 1,521                   |   |   |   | 1,474 |   |
| Amortization      of deferred mortgage costs   |                                      |   | 53                      |   |   |   | 59 |   |
| Deferred      rents (Straight lining)          |                                      |   | (53                     | )      |   |   | (51 | ) |
| Amortization      of acquired leases           |                                      |   | 8                       |   |   |   | 9 |   |
| Capital      Improvements - Apartments         |                                      |   | (85                     | )      |   |   | (129 | ) |
| Distributions      to noncontrolling interests |                                      |   | (348                    | )      |   |   | (120 | ) |
|                                           | FFO                                       |   | $                       | 2,549  |   |   | $ | 3,126 |   |
|                                           |                                      |   |                    |   |   |   |   |   |   |
|                                           |  Per      Share - Basic              |   | $                       | 0.37   |   |   | $ | 0.45 |   |
|                                           |  Per      Share - Diluted            |   | $                       | 0.37   |   |   | $ | 0.45 |   |
|                                           |                                      |   |                    |   |   |   |   |   |   |
|                                           | Weighted      Average Shares Outstanding: |   |                    |   |   |   |
|                                           |  Basic                               |   |                    | 6,942  |   |   |   | 6,946 |   |
|                                           |  Diluted                             |   |                    | 6,942  |   |   |   | 6,946 |   |

----

Index

----

Index

i

n

m

e

o

t

|   | Reference      is made to the Exhibit index below.                                                   |
|--------|------------------------------------------------------------------------------------------------------|
|   | Exhibit Index                                                                                        |
|   |                                                                                                 |   | Page |
|   | Exhibit      31.1 - Section 302 Certification of Chief ExecutiveOfficer                              |                          23 |
|   |                                                                                                 |   |
|   | Exhibit      31.2 - Section 302 Certification of Chief FinancialOfficer                              |                          24 |
|   |                                                                                                 |   |
|   | Exhibit      32.1 - Certification of Chief Executive Officer pursuant to 18 U.S.C.      Section 1350 |                  25 |
|   |                                                                                                 |   |
|   | Exhibit      32.2 - Certification of Chief Financial Officer pursuant to 18 U.S.C.      Section 1350 |           26 |

----

Index

I

|                      | FIRST      REAL ESTATE INVESTMENT                                             |   |
|---------------------------|-------------------------------------------------------------------------------|--------|
|                      | TRUST OF NEW JERSEY                                                           |   |
|                      | (Registrant)                                                                  |   |
|                      |                                                                          |   |
| Date:      March 12, 2010 |                                                                          |   |
|                      | /s/      Robert S. Hekemian                                                   |   |
|                      |                 (Signature) |   |
|                      | Robert      S. Hekemian                                                       |   |
|                      | Chairman      of the Board and Chief Executive Officer                        |
|                      |  (Principal      Executive Officer)                                      |   |
|                      |                                                                          |   |
|                      |                                                                          |   |
|                      | /s/      Donald W. Barney                                                     |   |
|                      |              (Signature)                   |   |
|                      | Donald      W. Barney                                                         |   |
|                      | President,      Treasurer and Chief Financial Officer                         |
|                      |  (Principal      Financial/Accounting Officer)                           |   |
|                      |                                                                          |   |