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):

June 2, 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 six and three month periods ended April 30, 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 June 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.

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:  June 2, 2010

3

EXHIBIT INDEX

Exhibit
Number	Description
99.1	Press Release – Operating results for the six and three month periods ended April 30, 2010.

4

EX-99.1

Exhibit 99.1

HACKENSACK, NJ,    June 2, 2010 – First Real Estate Investment Trust (“FREIT”) announced its operating results for the six and three-months ended April 30, 2010. The results of operations as presented in this earnings release are unaudited, and are not necessarily indicative of future operating results.

FINANCIAL HIGHLIGHTS	Six Months Ended April 30, 2010	Three Months Ended April 30, 2010
*  Net Income Per Share-Basic:	$0.33	$0.16
*  Dividends Per Share:	$0.60	$0.30
*  FFO Per Share-Basic:	$0.74	$0.37
*  FFO Payout:	81.1%	81.1%
*  Average Residential Occupancy:	93.8%	94.6%
*  Average Commercial Occupancy:	90.1%	89.5%

RESULTS OF OPERATIONS

Real Estate revenue for the six months ended April 30, 2010 (“Current Six Months”) increased 4.2% to $22,209,000 compared to $21,319,000 for the six months ended April 30, 2009 (“Prior Six Months”). Real Estate revenue for the three months ended April 30, 2010 (“Current Quarter”) increased 7.5% to $11,360,000 compared to $10,570,000 for the three months ended April 30, 2009 (“Prior Year’s Quarter”).

Net income attributable to common equity (“Net Income”) for the Current Six Months decreased 11.7% to $2,302,000 ($0.33 per share basic) compared to $2,606,000 ($0.38 per share basic) for the Prior Six Months. Net Income for the Current Quarter increased 4.1% to  $1,130,000 ($0.16 per share basic) compared to $1,085,000 ($0.16 per share basic) for the Prior Year’s Quarter. Refer to the schedule below for a detailed analysis of the major changes that impacted revenue and net income for the six and three-months ended April 30, 2010 and 2009:

	Six Months Ended April 30,									Three Months Ended April 30,
	2010			2009			Change			2010			2009			Change
	(in thousands, except per share)									(in thousands, except per share)
Real estate revenues:
Commercial properties	$	12,699		$	11,577		$	1,122		$	6,559		$	5,719		$	840
Residential properties		9,510			9,742			(232	)		4,801			4,851			(50	)
Total real estate revenues		22,209			21,319			890			11,360			10,570			790
Operating expenses:
Real estate operations		9,705			8,987			718			5,085			4,646			439
General and administrative		841			880			(39	)		413			466			(53	)
Depreciation		3,065			2,937			128			1,543			1,463			80
Total operating expenses		13,611			12,804			807			7,041			6,575			466
Operating income		8,598			8,515			83			4,319			3,995			324
Investment income		66			130			(64	)		30			51			(21	)
Financing costs		(5,781	)		(5,381	)		(400	)		(2,919	)		(2,666	)		(253	)
Net income		2,883			3,264			(381	)		1,430			1,380			50
Net income attributable to noncontrolling interests (formerly referred to as minority interests)		(581	)		(658	)		77			(300	)		(295	)		(5	)
Net income attributable to common equity	$	2,302		$	2,606		$	(304	)	$	1,130		$	1,085		$	45
Earnings per share-basic (attributable to common equity)	$	0.33		$	0.38		$	(0.05	)	$	0.16		$	0.16		$	-
Weighted average shares outstanding		6,942			6,945						6,942			6,942

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 Six Months and Current Quarter, as compared to the prior year’s comparable periods:

	Commercial												Residential												Combined
	Six Months Ended												Six Months Ended												Six Months Ended
	April 30,						Increase (Decrease)						April 30,						Increase (Decrease)						April 30,
	2010			2009			$			%			2010			2009			$			%			2010			2009
	(in thousands)												(in thousands)												(in thousands)
Rental income	$	9,633		$	8,746		$	887			10.1	%	$	9,395		$	9,559		$	(164	)		-1.7	%	$	19,028		$	18,305
Reimbursements		2,890			2,641			249			9.4	%		-			-			-						2,890			2,641
Other		82			104			(22	)		-21.2	%		115			183			(68	)		-37.2	%		197			287
Total revenue		12,605			11,491			1,114			9.7	%		9,510			9,742			(232	)		-2.4	%		22,115			21,233
Operating expenses		5,003			4,721			282			6.0	%		4,702			4,266			436			10.2	%		9,705			8,987
Net operating income	$	7,602		$	6,770		$	832			12.3	%	$	4,808		$	5,476		$	(668	)		-12.2	%		12,410			12,246
Average
Occupancy %		90.1	%		89.7	%					0.4	%		93.8	%		93.3	%					0.5	%
										Reconciliation to consolidated net income:
										Deferred rents - straight lining																109			104
										Amortization of acquired leases																(15	)		(18	)
										Investment income																66			130
										General and administrative expenses																(841	)		(880	)
										Depreciation																(3,065	)		(2,937	)
										Financing costs																(5,781	)		(5,381	)
										Net income																2,883			3,264
										Net income attributable to noncontrolling interests																(581	)		(658	)
										Net income attributable to common equity															$	2,302		$	2,606

	Commercial											Residential												Combined
	Three Months Ended											Three Months Ended												Three Months Ended
	April 30,						Increase (Decrease)					April 30,						Increase (Decrease)						April 30,
	2010			2009			$		%			2010			2009			$			%			2010			2009
	(in thousands)											(in thousands)												(in thousands)
Rental income	$	4,996		$	4,387		$	609		13.9	%	$	4,743		$	4,769		$	(26	)		-0.5	%	$	9,739		$	9,156
Reimbursements		1,456			1,236			220		17.8	%		-			-			-						1,456			1,236
Other		58			52			6		11.5	%		58			82			(24	)		-29.3	%		116			134
Total revenue		6,510			5,675			835		14.7	%		4,801			4,851			(50	)		-1.0	%		11,311			10,526
Operating expenses		2,629			2,414			215		8.9	%		2,456			2,232			224			10.0	%		5,085			4,646
Net operating income	$	3,881		$	3,261		$	620		19.0	%	$	2,345		$	2,619		$	(274	)		-10.5	%		6,226			5,880
Average
Occupancy %		89.5	%		90.4	%				-0.9	%		94.6	%		92.6	%					2.0	%
									Reconciliation to consolidated net income:
									Deferred rents - straight lining																56			53
									Amortization of acquired leases																(7	)		(9	)
									Investment income																30			51
									General and administrative expenses																(413	)		(466	)
									Depreciation																(1,543	)		(1,463	)
									Financing costs																(2,919	)		(2,666	)
									Net income																1,430			1,380
									Net income attributable to noncontrolling interests																(300	)		(295	)
									Net income attributable to common equity															$	1,130		$	1,085

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.

2

COMMERCIAL SEGMENT

Total revenue and NOI from FREIT’s commercial segment for the Current Six Months increased by 9.7% and 12.3%, respectively, over the Prior Six Months. For the Current Quarter total revenue and NOI increased by 14.7% and 19.0%, respectively, as compared to the comparable prior year’s period. The primary reasons for the increase in revenue as compared to the prior year were: higher base rental income; an increase in reimbursable expenses, due to higher expenses resulting from this year’s unusually colder winter; a tenant lease termination fee of approximately $250,000; and a percentage rent payment of $123,000 relating to a tenant coming off of a percentage rent holiday.

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.To date, our tenant fall-out has been minor, as average occupancy (exclusive of the Damascus Center, which is undergoing a major redevelopment project) for the Current Six Months was 94.6%, a decrease of 0.6% from last year’s comparable period, and decreased 1.4% for the Current Quarter to 93.9% as compared to 95.3% for the Prior Year’s Quarter. 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 Six Months decreased by 2.4% and 12.2%, respectively, as compared to the Prior Six Months. For the Current Quarter total revenue and NOI decreased by 1.0% and 10.5%, respectively, as compared to last year’s comparable period. The current year’s poorer operating results reflect the downward movement of occupancy and rents over the past year. The effect of lower revenues was exacerbated by recent storm damage costs at the Pierre Towers approximating $260,000, and overall 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 over the past year. However, it should be noted that over the last several months, occupancy is showing signs of improvement, as evidenced by average occupancy for the Current Six Months and Current Quarter increasing by 0.5% and 2.0%, respectively, over last year’s comparable periods. Additionally, total revenue and the occupancy percentage for the Current Quarter increased over the current year’s first quarter ended January 31, 2010.

FUNDS FROM OPERATIONS (“FFO”):

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

		Six Months Ended						Three Months Ended
		April 30,						April 30,
		2010			2009			2010			2009
		($ in thousands)						($ in thousands)
Net income		$	2,883		$	3,264		$	1,430		$	1,380
Depreciation			3,065			2,937			1,543			1,463
Amortization of deferred mortgage costs			106			118			53			59
Deferred rents (Straight lining)			(109	)		(104	)		(56	)		(53	)
Amortization of acquired leases			15			18			7			9
Capital Improvements - Apartments			(120	)		(106	)		(35	)		(27	)
Distributions to noncontrolling interests			(692	)		(563	)		(344	)		(443	)
	FFO	$	5,148		$	5,564		$	2,598		$	2,388
	FFO Per Share-Basic	$	0.74		$	0.80		$	0.37		$	0.34
Weighted Average Shares Outstanding			6,942			6,945			6,942			6,942

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.

3

DIVIDENDS

The 2nd quarter dividend of $0.30 per share is payable on June 15, 2010 to shareholders of record on June 1, 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 $245 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

4