SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

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


For Quarterly Period Ended July 31, 2000             Commission File No. 2-27018


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


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


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


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

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

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

                             Yes  X      No

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

There were 1,559,788 shares  of beneficial interest outstanding at September 13,
2000.

<PAGE>

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

                                      INDEX
                                      -----

Part I: Financial Information

  Item 1:  Consolidated Financial Statements

      a.) Balance Sheets as at July 31, 2000 (unaudited) and October 31, 1999;

      b.) Statements of Income, Comprehensive Income and Undistributed Earnings
          For the Nine and Three Months Ended July 31, 2000 and 1999
          (unaudited);

      c.) Statements of Cash Flows for the Nine Months Ended
          July 31, 2000 and 1999 (unaudited);

      d.) Notes to Financial Statements (unaudited).

      e.) Report of Independent Public Accountants.

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

Item 3: Quantitative and Qualitative Disclosures of Market Risk.

Part II: Other Information

         Item 1. Legal Proceedings

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

         Item 5. Other Events.

         Item 6. Exhibits and Reports on Form 8-K

<PAGE>

Item 1: Financial Statements

         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY
                         CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                        July 31,          October 31,
                                                                                          2000                1999
                                                                                          ----                ----
                                                                                       (Unaudited)        (See Note 1)
                                                                                           (In Thousands of Dollars)
                                   ASSETS
                                   ------
<S>                                                                                       <C>                 <C>
Real estate and equipment, at cost, net of accumulated
      depreciation                                                                        $ 78,353            $ 63,441
Investments in marketable securities                                                         9,380              14,453
Cash and cash equivalents                                                                    2,360               2,083
Note receivable - related party                                                              1,044
Tenants' security accounts                                                                     755                 771
Sundry receivables                                                                           2,019               1,326
Prepaid expenses and other assets                                                            1,142               1,004
Deferred charges, net                                                                        1,424               1,350
                                                                                   ----------------   -----------------
                                   Totals                                                 $ 96,477            $ 84,428
                                                                                   ================   =================

                    LIABILITIES AND SHAREHOLDERS' EQUITY
                    ------------------------------------

Liabilities:
      Mortgages payable                                                                   $ 70,418            $ 60,071
      Accounts payable and accrued expenses                                                    823                 503
      Cash distributions in excess of earnings and investment in affiliate                     359                 294
      Dividends payable                                                                        780               1,638
      Tenants' security deposits                                                             1,078               1,000
      Deferred revenue                                                                         459                 402
                                                                                   ----------------   -----------------
                                   Total liabilities                                        73,917              63,908
                                                                                   ----------------   -----------------

Minority interest                                                                            1,034
                                                                                   ----------------
Commitments and contingencies

Shareholders' equity:
      Shares of beneficial interest without par value; 1,790,000
        shares authorized; 1,559,788 shares issued and outstanding                          19,314              19,314
      Undistributed earnings                                                                 2,332               1,253
      Accumulated other comprehensive income (loss)                                           (120)                (47)
                                                                                   ----------------   -----------------
                                   Total shareholders' equity                               21,526              20,520
                                                                                   ----------------   -----------------

                                   Totals                                                 $ 96,477            $ 84,428
                                                                                   ================   =================
</TABLE>

See Notes to Consolidated Financial Statements

<PAGE>

        FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY

<TABLE>
<CAPTION>

CONSOLIDATED STATEMENTS OF INCOME, COMPREHENSIVE INCOME AND UNDISTRIBUTED EARNINGS
               NINE AND THREE MONTHS ENDED JULY 31, 2000 AND 1999
                                   (Unaudited)

                                                                       Nine Months                             Three Months
                                                                      Ended July 31,                          Ended July 31,
                                                            ----------------------------------      --------------------------------
                                                                2000                1999                    2000              1999
                                                                ----                ----                    ----              ----
                                                                                        (In Thousands of Dollars,
                                                                                        Except Per Share Amounts)
                                   INCOME
                                   ------
<S>                                                               <C>                  <C>                    <C>            <C>
Revenue:
      Rental income                                               $ 10,703          $  9,778             $  3,873          $ 3,345
      Reimbursements                                                 1,555             1,277                  561              400
      Equity in income (loss) of affiliate                             107               (93)                  35               43
      Net Investment Income                                            620               490                  204              184
      Sundry income                                                    326               162                  219               67
                                                            ---------------   ---------------       --------------    -------------
                                   Totals                           13,311            11,614                4,892            4,039
                                                            ---------------   ---------------       --------------    -------------

Expenses:
      Operating expenses                                             2,530             2,446                  769              786
      Management fees                                                  512               460                  193              154
      Real estate taxes                                              1,603             1,367                  565              468
      Financing costs                                                3,779             3,466                1,400            1,157
      Depreciation                                                   1,442             1,277                  542              432
      Minority interest                                                 17                                     11
                                                            ---------------   ---------------       --------------    -------------
                                   Totals                            9,883             9,016                3,480            2,997
                                                            ---------------   ---------------       --------------    -------------

Income before state income taxes                                     3,428             2,598                1,412            1,042
Provision for state income taxes                                        10                 9                    3                4
                                                            ---------------   ---------------       --------------    -------------
Net income                                                        $  3,418          $  2,589             $  1,409          $ 1,038
                                                            ===============   ===============       ==============    =============
Basic earnings per share                                          $   2.19          $   1.66             $   0.90          $  0.67
                                                            ===============   ===============       ==============    =============

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

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

Net income                                                        $  3,418          $  2,589             $  1,409          $ 1,038
Other comprehensive income (loss)-
      unrealized gain (loss) on marketable securities                  (73)                                    49
                                                            ---------------   ---------------       --------------    -------------
Comprehensive income                                              $  3,345          $  2,589             $  1,458          $ 1,038
                                                            ===============   ===============       ==============    =============
                            UNDISTRIBUTED EARNINGS
                            ----------------------

Balance, beginning of period                                      $  1,253          $  1,048             $  1,703          $ 1,351
Net income                                                           3,418             2,589                1,409            1,038
Less dividends                                                      (2,339)           (1,872)                (780)            (624)
                                                            ---------------   ---------------       --------------    -------------
Balance, end of period                                            $  2,332          $  1,765             $  2,332          $ 1,765
                                                            ===============   ===============       ==============    =============

Dividends per share                                               $   1.50          $   1.20             $   0.50          $  0.40
                                                            ===============   ===============       ==============    =============
</TABLE>

See Notes to Consolidated Financial Statements

<PAGE>


         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                    NINE MONTHS ENDED JULY 31, 2000 AND 1999
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                            2000                1999
                                                                                            ----                ----
                                                                                            (In Thousands of Dollars)

Operating activities:
<S>                                                                                        <C>                 <C>
      Net income                                                                           $ 3,418            $  2,589
      Adjustments to reconcile net income to net cash provided by
      operating activities:
          Depreciation and amortization                                                      1,581               1,391
          Equity in (income) loss of affiliate                                                (107)                 93
          Deferred revenue                                                                      57                (141)
          Minority interest                                                                     17
          Changes in operating assets and liabilities:
              Tenants' security accounts                                                        16                  (3)
              Sundry receivables, prepaid expenses and other assets                           (858)               (132)
              Deferred charges                                                                (151)               (112)
              Accounts payable and accrued expenses                                            320                 (90)
              Tenants' security deposits                                                        78                  (2)
                                                                                   ----------------   -----------------
              Net cash provided by operating activities                                      4,371               3,593
                                                                                   ----------------   -----------------
Investing activities:
      Capital expenditures                                                                    (706)               (356)
      Distributions from affiliate                                                             172               2,121
      Repayment from affiliate                                                                   -                 100
      Sale of marketable securities                                                          5,000
      Acquisition of partnership interest                                                   (4,728)
                                                                                   ----------------   -----------------
              Net cash provided by (used in) investing activities                             (262)              1,865
                                                                                   ----------------   -----------------
Financing activities:
      Dividends paid                                                                        (3,197)             (2,683)
      Net proceeds from mortgage refinancing                                                     -               3,671
      Proceeds from mortgage borrowings                                                          -               9,275
      Repayment of mortgages                                                                  (573)               (537)
      Deferred mortgage costs                                                                  (62)               (185)
                                                                                   ----------------   -----------------
              Net cash provided by (used in) financing activities                           (3,832)              9,541
                                                                                   ----------------   -----------------

Net increase in cash and cash equivalents                                                      277              14,999
Cash and cash equivalents, beginning of period                                               2,083                 793
                                                                                   ----------------   -----------------
Cash and cash equivalents, end of period                                                   $ 2,360            $ 15,792
                                                                                   ================   =================
Supplemental disclosure of cash flow data:
      Interest paid                                                                        $ 3,699            $  3,399
                                                                                   ================   =================
      Income taxes paid                                                                    $    10            $      9
                                                                                   ================   =================
</TABLE>

Supplemental disclosure of noncash investing and financing activities:

     During  the nine  months  ended  July 31,  2000,  the  Trust  completed  an
     acquisition  of a 98,800  square  foot  retail  property  in Olney,  MD for
     approximately  $15,648,000,  in part,  with the  proceeds of a  $10,920,000
     mortgage.

     During  the nine  months  ended  July 31,  2000 and  1999,  the  Trust  had
     dividends declared but not paid of $780,000 and $624,000, respectively.

See Notes to Consolidated Financial Statements

<PAGE>

         FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

Note 1 - Organization and significant accounting policies:

Organization:

First Real Estate  Investment  Trust of New Jersey (the  "Trust") was  organized
November 1, 1961 as a New Jersey Business Trust.  The Trust is engaged in owning
residential and commercial income producing  properties located primarily in New
Jersey,  Maryland  and New York.  The Trust  has  elected  to be taxed as a Real
Estate Investment Trust under the provisions of Sections 856-860 of the Internal
Revenue Code, as amended. Accordingly, the Trust does not pay Federal income tax
on income whenever  income  distributed to shareholders is equal to at least 95%
of real estate  investment  trust  taxable  income.  Further,  the Trust pays no
Federal income tax on capital gains distributed to shareholders.

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

Basis of presentation:

The financial  information  included herein as at July 31, 2000 and for the nine
and three months  ended July 31, 2000 and 1999 is unaudited  and, in the opinion
of the Trust,  reflects all  adjustments  (which  include only normal  recurring
accruals) necessary for a fair presentation of the financial position as of that
date and the results of operations  for those  periods.  The  information in the
balance sheet as of October 31, 1999 was derived from the Trust's audited annual
report for 1999.  The results of the Trust's  operations  for the nine and three
months  ended July 31,  2000 are not  necessarily  indicative  of the results of
operations for the full year ending October 31, 2000.

Principles of consolidation:

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

Investment in affiliate:

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

Use of estimates:

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

Investments in marketable securities:

Investments in marketable debt securities classified as "available for sale" are
recorded  at fair  value  and  unrealized  gains  and  losses  are  reported  as
accumulated other comprehensive income (loss) within shareholders' equity.

<PAGE>

Cash and cash equivalents:

Financial instruments,  which potentially subject the Trust to concentrations of
credit risk, consist primarily of cash and cash equivalents. The Trust considers
all highly liquid investments purchased with maturity of three months or less to
be cash  equivalents.  The Trust maintains its cash and cash equivalents in bank
and other  accounts,  the  balances  of which,  at times,  may exceed  Federally
insured  limits.  At July 31,  2000,  such  cash and  cash  equivalent  balances
exceeded  Federally  insured  limits by  approximately  $2,260,000.  Exposure to
credit  risk is  reduced by  placing  such  deposits  with high  credit  quality
financial institutions.

Depreciation:

Real estate and equipment are depreciated on the straight-line  method by annual
charges to operations  calculated to absorb costs of assets over their estimated
useful lives.

Deferred charges:

Deferred  charges  consist of mortgage costs and leasing  commissions.  Deferred
mortgage  costs are amortized on the  straight-line  method by annual charges to
operations  over  the  terms of the  mortgages.  Amortization  of such  costs is
included in financing  costs and  approximated  $80,000 and $67,000 for the nine
months ended July 31, 2000 and 1999, respectively, and approximately $32,000 and
$23,000  for the  three  months  ended  July 31,  2000 and  1999,  respectively.
Deferred leasing commissions are amortized on the straight-line  method over the
terms of the applicable leases.

Revenue recognition:

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

Advertising:

The  Trust  expenses  the  cost  of  advertising  and  promotions  as  incurred.
Advertising  costs charged to operations  amounted to approximately  $48,000 and
$47,000 for the nine  months  ended July 31,  2000 and 1999,  respectively,  and
approximately  $16,000 and $15,000 for the three  months ended July 31, 2000 and
1999, respectively.

Earnings per share:

The Trust presented "basic" earnings per share in the accompanying  consolidated
statements of income in accordance with the provisions of Statement of Financial
Accounting  Standards No. 128,  Earnings Per Share ("SFAS  128").  SFAS 128 also
requires the presentation of "diluted"  earnings per share if the amount differs
from basic  earnings  per  share.  Basic  earnings  per share is  calculated  by
dividing net income by the weighted average number of common shares  outstanding
during each period.  The calculation of diluted earnings per share is similar to
that of basic  earnings per share,  except that the  denominator is increased to
include the number of additional  common shares that would have been outstanding
if all  potentially  dilutive  common  shares,  such as those  issuable upon the
exercise of stock options and warrants,  were issued during the period.  For the
nine and three months ended July 31, 2000,  diluted  earnings per share have not
been  presented   because  prices  of  all  of  the  outstanding  stock  options
approximated  the average fair market value and there were no additional  shares
derived from the assumed  exercise of stock options and the  application  of the
treasury  stock method.  For the nine and three months ended July 31, 1999,  the
Trust had no potentially dilutive common shares.

<PAGE>

Note 2 - Investment in affiliates:

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

Summarized  financial  information  of WHLLC as of July 31, 2000 and October 31,
1999  and for the nine  and  three  months  ended  July 31,  2000 and 1999 is as
follows:
<TABLE>
<CAPTION>
                                                 July 31,       October 31,
                                                   2000            1999
                                                   ----            ----
                                                 (In thousands of dollars)
<S>                                              <C>             <C>
Balance sheet data:
Assets:
Real estate and equipment, net                   $ 14,017        $ 14,190
Other                                                 675             812
                                             -------------    ------------
Total assets                                     $ 14,692        $ 15,002
                                             =============    ============

Liabilities and equity:
Liabilities:
Mortgage payable                                 $ 15,230        $ 15,362
Other                                                 361             378
                                             -------------    ------------
             Total liabilities                     15,591          15,740
                                             -------------    ------------

Members' deficiency:
Trust                                                (359)           (294)
Others                                               (540)           (444)
                                             -------------    ------------
Total members' deficiency                            (899)           (738)
                                             -------------    ------------

Total liabilities and members' deficiency        $ 14,692        $ 15,002
                                             =============    ============
</TABLE>

<TABLE>
<CAPTION>
                                                          Nine Months Ended                      Three Months Ended
                                                               July 31,                                July 31,
                                               -------------------------------------   -------------------------------------
                                                      2000                1999                2000                1999
                                                      ----                ----                ----                ----
                                                                         (In thousands of dollars)
Income statement data:
<S>                                                     <C>                 <C>                    <C>                <C>
Rental revenue                                          $ 2,129             $ 2,037                $ 721              $ 703
Expenses                                                  1,861               1,828                  633                595
                                               -----------------    ----------------   ------------------   ----------------
Income from rental operations                               268                 209                   88                108
Prepayment penalty on mortgage refinancing                                     (442)
                                               -----------------    ----------------   ------------------   ----------------
             Net income (loss)                          $   268             $  (233)               $  88              $ 108
                                               =================    ================   ==================   ================
</TABLE>

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

<PAGE>

The purchase price of S and A was approximately  $15,648,000 of which $4,728,000
was paid in cash and $10,920,000 was financed by the proceeds of a mortgage. The
Trust agreed to sell a 25% interest in S and A, as of March 29, 2000, to a group
consisting  principally  of  employees of Hekemian on the same basis and cost to
the Trust.  The unpaid  purchase price of the 25% interest  accrues  interest at
what the Trust's  borrowing rate would be under its expired line of credit.  The
receivable and accrued interest is expected to be paid within the next quarter.

The  accompanying  financial  statements  reflect the operations of the shopping
center since its acquisition.

The following unaudited pro forma information (in thousands of dollars, except
per share amounts) shows the results of operations for the nine and three months
ended  July  31,  2000  and 1999 as  though  S and A had  been  acquired  at the
beginning
of fiscal 1999:

<TABLE>
<CAPTION>
                                      Nine Months Ended          Three Months Ended
                                          July 31,                     July 31,
                                  ------------------------   ------------------------
                                     2000          1999          2000          1999
                                     ----          ----          ----          ----
                                                (In thousands of dollars)

<S>                                <C>           <C>            <C>          <C>
Revenue                            $ 14,069      $ 13,087       $ 4,893      $ 4,499
Expenses                             10,704        10,484         3,484        3,482
                                  ----------    ----------   -----------   ----------
Income before minority interest       3,365         2,603         1,409        1,017
Minority interest                        23            28            11            4
                                  ----------    ----------   -----------   ----------

             Net income            $  3,342      $  2,575       $ 1,398      $ 1,013
                                  ==========    ==========   ===========   ==========

             Earnings per share    $   2.14      $   1.65       $  0.90      $  0.65
                                  ==========    ==========   ===========   ==========
</TABLE>

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

The  unaudited  pro  forma  results  of  operations  set  forth  above  are  not
necessarily  indicative  of  the  results  that  would  have  occurred  had  the
acquisition  been made at the beginning of the fiscal 1999 or of future  results
of operations of the Trust's combined properties.

Note 3 - Investments in marketable securities:

At July 31, 2000, the Trust's  investment in marketable debt securities,  all of
which were  classified  as available for sale,  consisted of  government  agency
bonds. The maturities for all securities held at July 31, 2000 are as follows:

                          Amortized              Fair
                            Cost                Value
                      -----------------    ---------------
                            (in thousands of dollars)

One to five years        $   9,000             $  8,918
Five to ten years              500                  462
                      -----------------    ---------------
Totals                   $   9,500             $  9,380
                      =================    ===============

<PAGE>

Note 4 - Real estate and equipment:
  Real estate and equipment consists of the following:

<TABLE>
<CAPTION>
                                    Range of
                                    Estimated           July 31,    October 31,
                                   Useful Lives          2000          1999
                                   ------------          ----          ----
                                                     (In thousands of dollars)

<S>                                <C>                <C>            <C>
Land                                                  $ 23,831       $ 22,773
Unimproved land                                          2,366          2,354
Apartment buildings                 7-40 years          10,948         10,764
Commercial buildings and
   shopping centers                15-50 years          56,500         40,723
Construction in progress                                   703          1,426
Equipment                           3-15 years             569            522
                                                    -----------    -----------
                                                        94,917         78,562
Less accumulated depreciation                           16,564         15,121
                                                    -----------    -----------
                       Totals                         $ 78,353       $ 63,441
                                                    ===========    ===========
</TABLE>

Note 5 - Mortgages payable:
  Mortgages payable consist of the following:

<TABLE>
<CAPTION>
                                                            July 31,      October 31,
                                                              2000           1999
                                                              ----           ----
                                                           (In thousands of dollars)

<S>                                                        <C>            <C>
Nothern Life Insurance Cos. - Frederick, MD (A)            $ 18,394       $ 18,609
National Realty Funding L.C. - Westwood, NJ (B)              10,335         10,420
Larson Financial Resources, Inc. - Spring Lake, NJ (C)        3,632          3,664
Summit Bank - Patchogue, NY (D)                               7,223          7,295
Larson Financial Resources, Inc. - Wayne, NJ (E)             10,808         10,898
Larson Financial Resources, Inc. - River Edge, NJ (F)         5,277          5,323
Larson Financial Resources, Inc. - Maywood, NJ (G)            3,829          3,862
Summit Bank - Olney, MD (H)                                  10,920
                                                        ------------   ------------
             Totals                                        $ 70,418       $ 60,071
                                                        ============   ============
</TABLE>

(A)  Payable in monthly  installments  of $152,153  including  interest at 8.31%
     through  June  2007 at  which  time the  outstanding  balance  is due.  The
     mortgage is secured by a retail  building in Frederick,  Maryland  having a
     net book value of approximately $23,470,000.

(B)  Payable in monthly  installments  of $73,248  including  interest  at 7.38%
     through  February  2013 at which time the  outstanding  balance is due. The
     mortgage is secured by a retail  building in Westwood,  New Jersey having a
     net book value of approximately $11,203,000.

(C)  Payable in monthly  installments  of $23,875  including  interest  at 6.70%
     through  December  2013 at which time the  outstanding  balance is due. The
     mortgage is secured by an  apartment  building in Spring  Lake,  New Jersey
     having a net book value of approximately $497,000.

<PAGE>

(D)  Payable in monthly  installments  of $54,816  including  interest at 7.375%
     through  January  2005 at which time the  outstanding  balance is due.  The
     mortgage is secured by a retail  building in  Patchogue,  New York having a
     net book value of  approximately  $10,369,000.  One of the directors of the
     bank is a Trustee of the Trust.

(E)  Payable in monthly  installments  of $76,023  including  interest  at 7.29%
     through  July  2010 at  which  time the  outstanding  balance  is due.  The
     mortgage is secured by an apartment  building in Wayne, New Jersey having a
     net book value of approximately $1,654,000.

(F)  Payable in monthly  installments  of $34,862  including  interest  at 6.75%
     through  December  2013 at which time the  outstanding  balance is due. The
     mortgage is secured by an  apartment  building  in River  Edge,  New Jersey
     having a net book value of approximately $1,255,000.

(G)  Payable in monthly  installments  of $25,295  including  interest  at 6.75%
     through  December  2013 at which time the  outstanding  balance is due. The
     mortgage is secured by an apartment building in Maywood,  New Jersey having
     a net book value of approximately $912,000.

(H)  Interest only is payable  monthly at 175 basis points over the 90 day LIBOR
     rate,  and resets every 90 days.  The current rate is 8.03%.  The mortgage,
     which is due on March 28, 2002,  is secured by a shopping  center in Olney,
     MD having a net book value of approximately $15,608,000.

Principal  amounts (in thousands of dollars) due under the above  obligations in
each of the five years subsequent to July 31, 2000 are as follows:

                     Year Ending
                       July 31,      Amount
                       --------     --------
                       2001         $    794
                       2002           11,777
                       2003              925
                       2004              998
                       2005            7,533

Based on borrowing rates currently available to the Trust, the fair value of the
mortgage debt approximates carrying value at July 31, 2000.

Note 6 - Line of credit agreement:

The Trust had an  $8,000,000  revolving  line of credit that expired  during May
2000.  The line of credit bore  interest at the bank's  floating  base rate plus
 .25% or the LIBOR rate plus 175 basis points. The Trust is currently negotiating
to replace the credit agreement.

Note 7 - Commitments and contingencies:

Leases:

Retail tenants:

The  Trust  leases  retail  space  having  a net  book  value  of  approximately
$70,764,000 at July 31, 2000 to tenants for periods of up to twenty-five  years.
Most of the leases  contain  clauses for  reimbursement  of real  estate  taxes,
maintenance,  insurance and certain other operating  expenses of the properties.
Minimum   rental   income  (in   thousands  of  dollars)  to  be  received  from
non-cancelable  operating  leases in years  subsequent  to July 31,  2000 are as
follows:

<PAGE>


     Year Ending
      July 31,                  Amount
     -----------              ---------
         2001                 $  8,018
         2002                    7,744
         2003                    7,467
         2004                    6,692
         2005                    6,065
   Thereafter                   48,377
                              ---------
                  Total       $ 84,363
                              =========

The above  amounts  assume that all leases  which  expire are not  renewed  and,
accordingly,  neither minimal rentals nor rentals from  replacement  tenants are
included. Minimum future rentals do not include contingent rentals, which may be
received  under certain  leases on the basis of percentage of reported  tenants'
sales volume or increases in Consumer Price Indices. Contingent rentals included
in income for the nine and three months  ended July 31, 2000,  and 1999 were not
material.

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

Environmental Concerns:

In accordance with applicable regulations,  the Trust reported to the New Jersey
Department of Environmental  Protection ("NJDEP") that a historical discharge of
hazardous  material  was  discovered  in 1997 at the  renovated  Franklin  Lakes
shopping  center (the  "Center").  In  November  1999,  the Trust  received a no
further action letter from the NJDEP concerning the historical  discharge at the
Center.  However,  the Trust is required to continue  monitoring such discharge,
the cost of which will not be material.

Ground Lease:

The Trust's shopping center in Olney, MD is on  approximately  thirteen acres of
land.  Two acres are owned by the Trust in Fee  Simple,  and the  balance of the
land,  eleven acres,  is subject to a ground lease expiring in 2078.  Under the
terms of the ground lease the Trust is obligated to pay a fixed annual rental of
$79,956  plus   two   and  one  half  percent  (2 1/2%) of   annual  net  rental
collections.  The Trust is also  obligated  for the payment of real estate taxes
and insurance.

Note 8 - Management agreement and related party transactions:

Hekemian  manages the properties  owned by the Trust.  The management  agreement
requires  fees  equal  to a  percentage  of  rents  collected.  Such  fees  were
approximately  $512,000 and $460,000 for the nine months ended July 31, 2000 and
1999;  and  approximately  $193,000 and $154,000 for the three months ended July
31, 2000 and 1999,  respectively.  In addition,  Hekemian charged the Trust fees
and  commissions  in  connection  with the  acquisition  of the retail center in
Olney, MD and various mortgage refinancing and lease acquisition fees. Such fees
and  commissions  amounted to  approximately  $527,000 and $707,000 for the nine
months  ended July 31, 2000 and 1999;  and $28,000  and  $586,000  for the three
months ended July 31, 2000 and 1999, respectively.

Note 9 - Basic earnings per share:

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

<PAGE>

Note 10- Equity incentive plan:

On  September  10,  1998,  the Board of Trustees  approved  the  Trust's  Equity
Incentive  Plan (the "Plan") which was ratified by the Trust's  shareholders  on
April 7,  1999,  whereby  up to  230,000  of the  Trust's  shares of  beneficial
interest  may be  granted  to  key  personnel  in the  form  of  stock  options,
restricted share awards and other share-based  awards. In connection  therewith,
the Board of Trustees  approved  an  increase  of 230,000  shares in the Trust's
number of authorized shares of beneficial  interest.  Key personnel eligible for
these awards include trustees,  executive officers and other persons or entities
including,   without  limitation,   employees,   consultants  and  employees  of
consultants,  who are in a position  to make  significant  contributions  to the
success of the Trust.  Under the Plan, the exercise price of all options will be
the fair market value of the shares on the date of grant.

The consideration to be paid for restricted share and other  share-based  awards
shall be determined by the Board of Trustees,  with the amount not to exceed the
fair market  value of the shares on the date of grant.  The maximum  term of any
award granted may not exceed ten years. The Board of Trustees will determine the
actual terms of each award.  Upon ratification of the Plan on April 7, 1999, the
Trust  issued  188,500  stock  options  which it had  previously  granted to key
personnel  on September  10, 1998.  The fair value of the options on the date of
grant was $30 per share.  The options,  all of which are  outstanding at October
31, 1999, are exercisable through September 2008.

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

In the opinion of management, if compensation cost for the stock options granted
in 1999 had been determined  based on the fair value of the options at the grant
date under the  provisions of SFAS 123 using the  Black-Scholes  option  pricing
model and assuming a risk-free interest rate of 5.25%,  expected option lives of
ten years,  expected  volatility  of 1% and  expected  dividends  of 7.13%,  the
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.


                                      * * *

<PAGE>

                    REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
                    ----------------------------------------

To the Trustees and Shareholders
First Real Estate Investment Trust of
   New Jersey

We have  reviewed  the  accompanying  consolidated  balance  sheet of FIRST REAL
ESTATE  INVESTMENT  TRUST OF NEW JERSEY AND  SUBSIDIARY as of July 31, 2000, and
the  related  consolidated  statements  of  income,   comprehensive  income  and
undistributed earnings for the nine and three months ended July 31, 2000 and the
consolidated  statement  of cash flows for the nine months  ended July 31, 2000.
These  consolidated  financial  statements are the responsibility of the Trust's
management.

We conducted our review in accordance with standards established by the American
Institute  of  Certified  Public  Accountants.  A review  of  interim  financial
information consists principally of applying analytical  procedures to financial
data and making  inquiries of persons  responsible  for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with  generally  accepted  auditing  standards,  the  objective  of which is the
expression of an opinion  regarding the financial  statements  taken as a whole.
Accordingly, we do not express such an opinion.

Based on our review of the consolidated  financial statements referred to above,
we are not  aware  of any  material  modifications  that  should  be made to the
accompanying consolidated financial statements for them to be in conformity with
generally accepted accounting principles.

We have  previously  audited,  in accordance  with generally  accepted  auditing
standards,  the  balance  sheet of the Trust as of  October  31,  1999,  and the
related statements of income,  comprehensive  income and undistributed  earnings
and cash flows for the year then ended which are not  presented  herein,  and in
our report dated November 22, 1999, we expressed an unqualified opinion on those
financial  statements.  In  our  opinion,  the  information  set  forth  in  the
accompanying  balance  sheet as of October  31,  1999 is fairly  stated,  in all
material  respects,  in  relation  to the  balance  sheet from which it has been
derived.

The accompanying  statements of income,  comprehensive  income and undistributed
earnings for the nine and three months ended July 31, 1999 and the  statement of
cash flows for the nine months  ended July 31, 1999 were not audited or reviewed
by us and,  accordingly,  we do not  express  an  opinion  or any other  form of
assurance on them.

                                            J.H. Cohn LLP

Roseland, New Jersey
August 23, 2000

<PAGE>

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

Overview

The Registrant is an equity REIT that owns a portfolio of residential  apartment
and retail properties,  and undeveloped land. The Registrant's  revenues consist
primarily of fixed rental income and  additional  rent in the form of percentage
rents and  expense  reimbursements  derived  from its  income  producing  retail
properties.  The registrant also receives  income from its 40% owned  affiliate,
Westwood  Hills  LLC,  which  owns  a  residential   apartment   property.   The
Registrant's policy has been to acquire real property for long-term investment.

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

Results of Operations
Nine months ended July 31, 2000 vs. 1999
Acquisition

On March 29, 2000,  the Registrant  completed the  acquisition of the Olney Town
Center ("Olney"),  in Olney, MD. Olney is a 98,800 sq. ft. neighborhood shopping
center with expansion potential to 131,000 sq. ft. The center is 91.5% occupied.
The shopping center is situated on approximately 13 acres of land. Approximately
11 acres are subject to a ground lease  expiring in 2078,  and  approximately  2
acres are owned in Fee simple.

The center  was  acquired  by  purchasing  100%  ownership  interest  of S And A
Commercial  Associates Limited  Partnership ("S and A"). S and A's only asset at
the closing date was the  shopping  center.  The  purchase  price of the center,
approximately  $15,648,000,  was  financed,  in  part,  with the  proceeds  of a
$10,920,000  mortgage,  with the balance of the purchase price being supplied by
the proceeds from liquidating a portion of the Trust's marketable securities.

The Registrant has agreed to sell, as of March 29, 2000, a 25% interest is S and
A to a group consisting  principally of employees of Hekemian & Co., Inc. on the
same basis and cost to the Registrant.  The  accompanying  financial  statements
include the operations of Olney since the acquisition  date which are summarized
as follows:
<TABLE>
<CAPTION>
                                                                                 % Of Consolidated
                                                                          ----------------------------------
                                         Nine Months      Three Months     Nine Months       Three Months
                                            Ended            Ended           Ended              Ended
                                        July 31, 2000     July 31, 2000   July 31, 2000      July 31, 2000
<S>                                     <C>               <C>             <C>                <C>
 Selected Income Statement Data:
 Revenues                                      $  737            $  552             5.5%              11.3%
                                        --------------    --------------
 Operating Expenses                               223               174             4.8%              11.4%
 Financing Costs                                  321               237             8.5%              16.9%
 Depreciation                                     124                93             8.6%              17.2%
 Minority Interest                                 17                11           100.0%             100.0%
                                        --------------    --------------
             Total Expenses                       685               515             6.9%              14.8%
                                        --------------    --------------
 Net Earnings                                  $   52            $   37             1.5%               2.6%
                                        ==============    ==============  ===============    ===============
 Earnings Per Share                            $ 0.03            $ 0.02             1.5%               2.6%
                                        ==============    ==============  ===============    ===============
</TABLE>

<PAGE>
Revenues

For the nine  months  ended July 31, 2000  ("Current  Period"),  total  revenues
increased 14.6% to $13,311,000  from  $11,614,000 for the nine months ended July
31,  1999  ("Prior  Period").  The revenue  increase  results,  in part,  from a
$1,367,000  increase  in  revenues  from the  Trust's  operating  properties,  a
$130,000  increase in Net Investment Income from investing the Registrant's cash
equivalents and Marketable  Securities,  and a positive swing of $200,000 in the
Registrant's share of operations at the Registrant's 40% owned affiliate.

Real Estate  Operations:  Revenues from real estate  operations  for the Current
Period increased 12.2% to $12,584,000 from $11,217,000 for the Prior Period. The
increase came, in part,  from higher  revenues at the  Registrant's  residential
properties  resulting from higher per unit net rental collections  off-setting a
1.9%  decline to 93.2% in  average  occupancy;  and  increased  revenues  at the
Registrant's  retail  properties.   The  increase  at  the  Registrant's  retail
properties   resulted   primarily  from   increased   fixed  rents  and  expense
reimbursements,  and a one time $150,000  tennant lease  termination  fee. These
increases  resulted,  primarily,  from increased  occupancy at the  Registrant's
Franklin  Crossing  (Franklin  Lakes,  NJ) shopping  center,  which is now 87.6%
occupied and 91.8% leased, and Olney.

Net  Investment  Income:  The  increase in Net  Investment  Income  results from
earning higher  interest rates from the  redeployment  (during the quarter ended
October  31,  1999) of Funds  from  institutional  money  market  pools to fixed
income,  short-to-intermediate  term  Government  Agency bonds.  The increase of
$130,000 for the Current Period is net of a $68,000 loss resulting from the sale
of bonds used for the cash portion of the Olney purchase.

Earnings From 40% Owned Affiliate:  During the Prior Period the Registrant's 40%
owned affiliate,  Westwood Hills L.L.C.,  refinanced its mortgage loan incurring
one-time  refinancing  costs of $440,000.  The  Registrant's  40% share of these
costs  ($176,000) was charged  against  income during the Prior Period.  No such
comparable  costs were incurred  during the Current Period  contributing  to the
positive earnings swing of $200,000.

Expenses:

For the Current Period overall operating  expenses  increased $867,000 (9.6%) to
$9,883,000  from  $9,016,00  for the  Prior  Period.  The  major  increases  and
percentage  increases  came  in the  following  areas:  Real  estate  operations
$239,000 (9.4%);  real estate taxes $236,000  (17.3%) and depreciation  $165,000
(12.9%).  These  increases  were  partially  offset  by a decline  in  Corporate
Administrative expenses of $86,000 (24.0%).

The majority of expense increases  resulted from the acquisition of Olney during
the Current Period,  and the  consolidation of its operations.  Overall expenses
excluding Olney increased 2.0%.

Net Income

For the  Current  Period Net Income  increased  $829,000  (32.0%) to  $3,418,000
($2.19 per share) from  $2,589,000  ($1.66 per share) for the Prior Period.  The
earning component  increases during the Current Period over the Prior Period are
as follows:
                                           Current Period
                                              Changes
                                         -----------------

Real Estate Operations                      $  891,000
Net Investment Income                          130,000
Equity in Income of Affiliate                  200,000
Financing Costs                               (313,000)
Depreciation                                  (165,000)
Administrative Costs                            86,000
                                         -----------------
                                            $  829,000
                                         =================

The Registrant  believes that in fiscal 2000 the continued  economic strength in
the  employment  markets in which its  properties  are located  should allow the
Registrant to realize or increase its current  occupancy rates for its apartment
properties with a sound support base for its retail properties.

<PAGE>
Results of Operations
Three months ended July 31, 2000 vs. 1999
Revenues

For the three  months ended July 31, 2000  ("Current  Quarter")  total  revenues
increased  21.1% to $4,892,000  from  $4,039,000 for the three months ended July
31, 1999 ("Prior Quarter"). The revenue increase results,  principally, from the
addition of Olney and  increased  occupancy  and  lease-up  at the  Registrant's
Franklin Crossing Shopping Center in Franklin Lakes, NJ, and a one time $150,000
tennant lease termination fee.

Expenses

Expenses for the Current Quarter  increased  $483,000 (16.1%) to $3,480,000 from
$2,997,000 for the Prior Quarter.  Almost the entire increase is attributable to
the consolidation of Olney's  operations.  (See  Acquisition).  Excluding Olney,
expenses would have been  approximately the same, with reductions in real estate
operating expenses offsetting slight increases in the other categories.

Net Income

Net Income for the Current Quarter increased 35.7% to 1,409,000 ($.90 per share)
from  $1,038,000  ($.67 per  share)  for the Prior  Quarter.  The  increase  was
attributable  to higher  earnings  at the  operating  properties  and  increased
earnings from the Registrant's 40% owned affiliate.

Funds From Operations ("FFO")

FFO is considered by many as a standard measurement of a REIT's performance. The
Registrant computes FFO as follows:
<TABLE>
<CAPTION>
                                                      Nine Months Ended                Three Months Ended
                                               -------------------------------   ------------------------------
                                                   7/31/00           7/31/99        7/31/00         7/31/99
                                               --------------    ------------    ------------   ---------------
<S>                                                <C>              <C>            <C>              <C>
Net Income                                         $ 3,418          $ 2,589        $ 1,409          $ 1,038
Depreciation - Real Estate                           1,442            1,277            542              432
Amortization of Deferred Mortgage Costs                 80               67             32               23
Deferred Rents                                        (319)            (305)          (123)             (98)
Capital Improvements - Apartments                     (230)            (170)          (115)             (86)
Other                                                   73              251             29               26
                                               --------------    ------------   -------------   ---------------
             Funds From Operations                 $ 4,464          $ 3,709        $ 1,774          $ 1,335
                                               ==============    ============   =============   ===============
</TABLE>

FFO does not represent cash  generated  from operating  activities in accordance
with generally accepted accounting principles ("GAAP"), and therefore should not
be considered a substitute  for net income as a measure of results of operations
or for cash flow from  operations as a measure of liquidity.  Additionally,  the
application  and  calculation of FFO by certain other REIT's may vary materially
from that of the Registrant,  and therefore the  Registrant's FFO and the FFO of
other REIT's may not be directly comparable.

Inflation

The Registrant  anticipates that the U.S.  Mid-Atlantic  States will continue to
experience moderate growth with limited inflation.  Any sustained inflation may,
however,  negatively  impact  the  Registrant  in at least  two  areas:  (i) the
interest  costs of any new  mortgage  financing;  and (ii)  higher  real  estate
operating  costs,  especially in those areas where such costs are not chargeable
to commercial tenants.

Liquidity and Capital Resources

At July 31,  2000,  the  Registrant's  cash,  cash  equivalents  and  marketable
securities totaled $11,740,000  compared to $16,536,000 at October 31, 1999. The
principal reason for the reduction was the liquidation of marketable  securities
to be used for the cash portion of the purchase  price of Olney.  A  significant
portion of these funds are available for property acquisitions.

<PAGE>

At July 31, 2000,  the  Registrant's  aggregate  outstanding  mortgage  debt was
approximately  $70.4 million.  Approximately $59.5 million bear a fixed weighted
average  interest  cost  of  7.513%,   and  an  average  life  of  10.47  years.
Approximately $10.9 million of mortgage debt bears an interest rate equal to 175
basis points over LIBOR and resets every 90 days. This mortgage is due March 28,
2002 and can be extended for one additional  year.  The  Registrant  anticipates
that the cash flow from  operations  will be more  than  sufficient  to meet the
Registrant's  operational  needs and the  increased  mortgage  obligations.  The
Registrant  believes  that its exposure to market risk relating to interest rate
risk is not  material  since most of its  mortgage  debt is long term with fixed
rates. However, to the extent the proceeds from the various financings cannot be
redeployed to earn more than the stated interest costs, there will be a negative
impact on  earnings  and cash flow  available  to pay  dividends.  To offset the
Registrant's   increased   debt-carrying  costs,  the  Registrant  has  invested
approximately $9.4 million in short-to-intermediate fixed rate Government Agency
Bonds.  These  bonds  yield a  weighted  average  interest  of 6.483% and have a
weighted  maturity  of 30.0  months.  Since the market  value of these bonds are
interest  rate  sensitive,  a sale of all or a portion of these  bonds  prior to
maturity  in a high  interest  rate  environment,  may  result  in a loss to the
Registrant (See Net Investment Income above).

The Registrant  makes capital  improvements to its properties when it deems such
improvements  to be  necessary or  appropriate.  The  short-term  impact of such
capital  outlays  will be to depress the  Registrant's  current  cash flow.  The
Registrant is now experiencing the benefits of these  expenditures by preserving
the physical integrity of its properties and securing  increased rentals.  Other
than the capital improvement program described above, the Registrant has made no
commitments  and has no  understandings  for any  material  capital  expenditure
during fiscal 2000 other than in the ordinary course of business.

Distributions to Shareholders

Since its inception in 1961,  the Registrant has elected to be treated as a REIT
for Federal  income tax purposes.  In order to qualify as a REIT, the Registrant
must satisfy a number of highly technical and complex  operational  requirements
including that it must  distribute to its  shareholders at least 95% of its REIT
taxable income. The Registrant  anticipates making distributions to shareholders
from operating cash flows,  which are expected to increase from future growth in
rental  revenues.  Although  cash  used to make  distributions  reduces  amounts
available for capital investment, the Registrant generally intends to distribute
not less than 95% of REIT taxable income in order to satisfy the applicable REIT
requirement as set forth in the Internal Revenue Code.

It has been the  Registrant's  policy to pay fixed  quarterly  dividends for the
first three quarters of each fiscal year,  and a final fourth  quarter  dividend
based on the fiscal year's net income and taxable income.

    =====================================================================
                                    FISCAL 2000          FISCAL 1999
                                    -----------          -----------
    =====================================================================
         First Quarter                 $  .50               $  .40
    ---------------------------------------------------------------------
         Second Quarter                $  .50               $  .40
    ---------------------------------------------------------------------
         Third Quarter                 $  .50               $  .40
    ---------------------------------------------------------------------
         Fourth Quarter                                     $ 1.05
    ---------------------------------------------------------------------
             Year To Date              $ 1.50               $ 2.25
                                       ======               ======
    =====================================================================


Item 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

         See  "Liquidity and Capital Resources" above.

<PAGE>

Part II: Other Information


Item 1. Legal Proceedings
                  None.

Item 4. Submission of Matters to a Vote of Security Holders.
                  None.

Item 5. Other Events

                  None.

Item 6. Exhibits and Reports of Form 8-K

          On August 24, 2000, the  Registrant  filed a Report on Form 8-K, which
          is  incorporated  herein  by  reference.  The  Form 8-K  reported  the
          Registrant's third quarter dividend declaration and included a copy of
          its results of its  operations  for the nine  months and three  months
          ended July 31, 2000 that was sent to shareholders on August 23, 2000.

<PAGE>

                                   SIGNATURES

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

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




Date September 14, 2000



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


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