STOCK DIVIDEND

HACKENSACK,  NJ, October 2, 2001 - First Real Estate  Investment Trust ("FREIT")
announced the declaration of a stock dividend.

FREIT'S  Board  of  Trustees  declared  a  Share  split  in the  form of a Share
dividend.  The Share  dividend is payable by the issuance of one share for every
Share issued and outstanding. All shareholders of record on October 8, 2001 will
be entitled to receive the Share dividend,  which will be distributed on October
18, 2001. The Shares are expected to begin trading on a split-adjusted  basis in
the over the counter  market on October 19, 2001.  After the Share  dividend the
issued and outstanding shares will increase to 3,119,576 from 1,559,788.

In connection with this share dividend, the Board also authorized an increase in
the authorized shares to 4,000,000 from 1,790,000.

FREIT'S Board  decision to declare this Share  dividend is based on a desire to
make the shares more  affordable  to individual  investors  and broaden  FREIT's
investor base.


      Certain information included in this release and the Trust's filings
    with the Securities and Exchange Commission ("SEC") under the Securities
      Act of 1933, as amended, and the Securities Exchange Act of 1934, as
      amended, contains or may contain forward-looking information that is
   subject to certain risks, trends and uncertainties that could cause actual
     results to differ materially from expected results. Among these risks,
         trends and uncertainties are matters relating to general market
        conditions, national and local economic conditions and the terms
  of federal, state and local governmental regulations that affect the Trust.
       Additional information about these and other factors is contained
                      in the Trust's filing with the SEC.

             First Real Estate Investment Trust is a publicly traded
        (over-the-counter - symbol FREVS) REIT organized in 1961. It has
        approximately $96 million (historical cost basis) of assets. Its
           portfolio of residential and retail properties extends from
            Eastern L.I. to Maryland, with the largest concentration
                            in Northern New Jersey.

  For additional information contact Shareholder relations at (201) 488-6400.