8-K

                       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): December 31, 2003

             FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
             (Exact name of registrant as specified in its charter)

                                      Ohio
                 (State or Other Jurisdiction of Incorporation)

             001-06249                                34-6513657
     (Commission File Number)            (I.R.S. Employer Identification No.)

                                 125 Park Avenue
                               New York, NY 10017
          (Address of principal executive offices, including ZIP code)

                                 (212) 949-1373
              (Registrant's telephone number, including area code)

                                 Not Applicable
          (Former name or former address, if changed since last report)












ITEM 5. OTHER EVENTS AND REQUIRED FD DISCLOSURE

The registrant issued a press release on December 31, 2003, in which it
announced that the registrant and FUR Investors LLC have closed the transactions
provided for pursuant to a Stock Purchase Agreement between the parties,
resulting in the purchase by FUR Investors LLC of 5,000,000 newly issued common
shares from the registrant at a price of $2.60 per share, following the closing
of the public tender offer of FUR Investors LLC, in which it acquired 5,000,000
outstanding common shares at a price of $2.30 per share. The press release is
attached hereto as Exhibit 99.1.

ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND EXHIBITS

Exhibit No.      Description
- -----------      -----------

   99.1          Press Release, dated December 31, 2003, issued by First
                 Union Real Estate Equity and Mortgage Investments














                                   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.

Date:    December 31, 2003


                                      FIRST UNION REAL ESTATE EQUITY AND
                                      MORTGAGE INVESTMENTS



                                      By: /s/ Neil H. Koenig
                                         --------------------------------------
                                         Name:  Neil H. Koenig
                                         Title:  Interim Chief Financial Officer











                                  EXHIBIT LIST

Exhibit No.      Description
- -----------      -----------

   99.1          Press Release, dated December 31, 2003, issued by First Union
                 Real Estate Equity and Mortgage Investments

EX-99.1

                                                                    EXHIBIT 99.1

            FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
            -------------------------------------------------------

AT THE COMPANY
- --------------
Neil H. Koenig
Interim Chief Financial Officer
(212) 949-1373

             FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS
             -------------------------------------------------------
                     ANNOUNCES CLOSING OF EQUITY INVESTMENT
                     --------------------------------------
                              BY FUR INVESTORS LLC
                              --------------------

FOR IMMEDIATE RELEASE - December 31, 2003 - First Union Real Estate Equity and
Mortgage Investments (NYSE:FUR) announced the closing of the transactions under
the previously announced Stock Purchase Agreement between the Company and FUR
Investors LLC, an entity controlled by real estate investor Michael L. Ashner.
Pursuant to the closing, on December 31, 2003, FUR Investors LLC purchased
5,000,000 newly issued common shares from the Company at a price of $2.60 per
share. This purchase occurred immediately following the closing of the public
tender offer of FUR Investors LLC in which it acquired 5,000,000 outstanding
Company common shares at a price of $2.30 per share. As a result of these
transactions, FUR Investors LLC owns 10,000,000 common shares or approximately
32.3% of the outstanding shares.

As part of the transaction, Mr. Ashner has been appointed President and Chief
Executive Officer of the Company, and an affiliate of Mr. Ashner has entered
into an advisory agreement to provide asset management and general advisory
services for the Company. Prior to the closing of the transaction, Mr. Ashner
had no affiliation with the Company.

                               -------------------

Certain statements contained in this press release that are forward-looking are
based on current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. Further information about these
matters and the risks generally with respect to First Union can be found in
First Union's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q
filed with the Securities and Exchange Commission.

First Union Real Estate Equity and Mortgage Investments is a NYSE-listed real
estate investment trust (REIT) headquartered in New York, New York.