8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15 (d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

March 5, 2010

FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY

(Exact name of registrant as specified in charter)

New Jersey	000-25043	22-1697095
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

505 Main Street, Hackensack, New Jersey	07601
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (201) 488-6400

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2 (b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange  Act (17 CFR 240.13e-4 (c))

Item 2.02  Results of Operations and Financial Condition

OPERATING RESULTS

The registrant has released its operating results for the three months ended January 31, 2010.  The Press Release is included as Exhibit 99.1 to this Form 8-K.

Item 9.01  Financial Statements and Exhibits

(d)  Exhibits

99.1  Registrant’s press release dated March 5, 2010

The statements in this report that relate to future earnings or performance are forward-looking. Actual results might differ materially and be adversely affected by such factors as longer than anticipated lease-up periods or the inability of tenants to pay increased rents. Additional information about these factors is contained in the Trust’s filings with the SEC including the Trust’s most recent filed report on Form 10-K and Form 10-Q.

2

SIGNATURES

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

FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
(Registrant)
By:	/s/ Robert S. Hekemian
	Robert S. Hekemian
	Chairman of the Board

Date:  March 5, 2010

3

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release – Operating results for the three-month period ended January 31, 2010.

4

EX-99.1

Exhibit 99.1

HACKENSACK, NJ,   March 5, 2010 – First Real Estate Investment Trust (“FREIT”) announced its operating results for the First Quarter ended January 31, 2010 (“Current Quarter”), as compared to the First Quarter ended January 31, 2009 (“Prior Year’s Quarter”). The results of operations for the Current Quarter as presented in this earnings release are unaudited, and are not necessarily indicative of future operating results.

HIGHLIGHTS - 1st Quarter Ended January 31, 2010:
*  Net Income Per Share (Basic & Diluted):  $0.17	*  Dividends Per Share:  $0.30
*  FFO Per Share:  $0.37	*  FFO Payout:  81%
*  Average Residential Occupancy:  93.2%	*  Average Commercial Occupancy:  90.5%

RESULTS OF OPERATIONS

Real Estate revenue for the Current Quarter increased 0.9% to $10,849,000 compared to $10,749,000 for the Prior Year’s Quarter. The increase in real estate revenues for the Current Quarter was primarily attributable to higher base rental income at FREIT’s commercial operations.

Net income attributable to common equity (“Net Income”) for the Current Quarter was $1,172,000 ($0.17 per share diluted) compared to $1,521,000 ($0.22 per share diluted) for the Prior Year’s Quarter. The schedule below provides a detailed analysis of the major changes that impacted net income for the three months ended January 31, 2010 and 2009:

	Three Months Ended January 31,
	2010			2009			Change
	(in thousands, except per share)
Real estate revenues:
Commercial properties	$	6,141		$	5,858		$	283
Residential properties		4,708			4,891			(183	)
Total real estate revenues		10,849			10,749			100
Operating expenses:
Real estate operations		4,621			4,341			280
General and administrative		428			414			14
Depreciation		1,521			1,474			47
Total operating expenses		6,570			6,229			341
Operating income		4,279			4,520			(241	)
Investment income		36			79			(43	)
Financing costs		(2,862	)		(2,715	)		(147	)
Net income		1,453			1,884			(431	)
Net income attributable to noncontrolling interests (formerly referred to as minority interests)		(281	)		(363	)		82
Net income attributable to common equity	$	1,172		$	1,521		$	(349	)
Earnings per share (attributable to common equity):
Basic	$	0.17		$	0.22		$	(0.05	)
Diluted	$	0.17		$	0.22		$	(0.05	)
Weighted average shares outstanding:
Basic		6,942			6,946
Diluted		6,942			6,946

Net Income for the Current Quarter decreased 14.6% compared to $1,372,000 reported for the fourth quarter ended October 31, 2009 (“Prior Year 4th Quarter”). While revenues increased modestly for the Current Quarter compared to the Prior Year 4th Quarter, unreimbursable operating expenses at our residential properties, principally snow removal and utility costs, increased $241,000 over the Prior Year’s 4th Quarter, due to this year’s unusually colder winter. Adjusting out these costs, net income for the Current Quarter would have exceeded the Prior Year 4th Quarter.

SEGMENT INFORMATION

The following table sets forth comparative net operating income ("NOI") data for FREIT’s real estate segments and reconciles the NOI to consolidated net income for the Current Quarter, as compared to the Prior Year’s Quarter:

	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
										*Formerly referred to as minority interests.

NOI is based on operating revenue and expenses directly associated with the operations of the real estate properties, but excludes deferred rents (straight lining), lease amortization, depreciation, financing costs and other non-operating activity. FREIT assesses and measures segment operating results based on NOI. NOI is not a measure of operating results or cash flow as measured by generally accepted accounting principles, and is not necessarily indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity.

COMMERCIAL SEGMENT

Total revenue and NOI from FREIT’s commercial segment for the Current Quarter increased by 4.8% and 6.0%, respectively, as compared to the comparable prior year’s period. The primary reasons for the increase in both revenue and NOI for the Current Quarter were higher base rental income and higher occupancy levels, primarily at the Damascus Center. The average occupancy rate for the Damascus Shopping Center in Damascus, Maryland (the “Damascus Center”) for the Current Quarter was at 56.5% compared to 41.4% for the Prior Year’s Quarter. This improvement was primarily attributable to Safeway occupying its new space as part of the Phase II redevelopment.

The economic recovery in the U.S. has resulted in modest increases in retail sales, although among the retailers results have been mixed. This gives us a modicum of guarded optimism.Average occupancy rates for FREIT’s commercial segment (exclusive of the Damascus Center) for the Current Quarter was at 95.0% compared to 95.2% for the Prior Year’s Quarter. For the Current Quarter, tenant fall-out has been minor as evidenced by average occupancy (exclusive of the Damascus Center) declining only 0.2%. However, we may experience additional fall-out if the economic recovery is slow.

RESIDENTIAL SEGMENT

Total revenue and NOI from FREIT’s residential segment for the Current Quarter decreased by 3.7% and 13.8%, respectively, as compared to the comparable prior year’s period. The Current Quarter’s poorer operating results reflect the culmination of the downward spiral of occupancy and rents over the past year. The effect of lower revenues was exacerbated by higher operating costs, particularly utility costs caused by the colder winter this year. The revenue declines are attributable to higher than normal unemployment in our areas of operation. However, it should be noted that over the last several months, occupancy is showing signs of improvement.

2

FUNDS FROM OPERATIONS (“FFO”):

Many consider FFO as the standard measurement of a REIT’s performance. We compute FFO as follows:

Funds From Operations ("FFO")
		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

FFO does not represent cash generated from operating activities in accordance with accounting principles generally accepted in the United States of America, and therefore should not be considered a substitute for net income as a measure of results of operations or for cash flow from operations as a measure of liquidity. Additionally, the application and calculation of FFO by certain other REITs may vary materially from that of FREIT’s, and therefore FREIT’s FFO and the FFO of other REITs may not be directly comparable.

DIVIDENDS

The 1st quarter dividend of $0.30 per share is payable on March 16, 2010 to shareholders of record on March 2, 2010.

The statements in this report that relate to future earnings or performance are forward-looking. Actual results might differ materially and be adversely affected by such factors as longer than anticipated lease-up periods or the inability of tenants to pay increased rents. Additional information about these factors is contained in the Trust’s filings with the SEC including the Trust’s most recent filed report on Form 10-K and Form 10-Q.

First Real Estate Investment Trust is a publicly traded (over-the-counter – symbol FREVS) REIT organized in 1961. It has approximately $250 million (historical cost basis) of assets. Its portfolio of residential and commercial 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

Visit us on the web:  www.freitnj.com

3