SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20594
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended July 31, 1996 Commission File No. 2-48728
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 [ ]
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
INDEX
Part I: Financial Information
Item 1: Financial Statements
a.) Combined Balance Sheets for July 31, 1996 and October 31,
1995;
b.) Combined Statements of Income and Undistributed Earnings
For Nine and Three Months Ended July 31, 1996 and 1995;
c.) Combined Statements of Cash Flows for Nine Months ended
July 31, 1996 and 1995;
Item 2: Management's Discussion and Analysis of Results of Operations
and Financial Condition
Part II: Other Information
Item 5. Other Information
Item 6. No Exhibits
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Trustees and Shareholders
First Real Estate Investment
Trust of New Jersey
The accompanying combined balance sheet of FIRST REAL ESTATE INVESTMENT TRUST OF
NEW JERSEY AND AFFILIATE as of July 31, 1996, and the related combined
statements of income and undistributed earnings for the nine and three months
ended July 31, 1996 and 1995, and the combined statements of cash flows for the
nine months ended July 31, 1996 and 1995, and the accompanying supplementary
information were not audited by us and, accordingly, we do not express an
opinion on them.
Roseland, New Jersey
August 21, 1996
<PAGE>
<TABLE>
<CAPTION>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
COMBINED BALANCE SHEETS
JULY 31, 1996 AND OCTOBER 31, 1995
(Unaudited)
July October
ASSETS 31, 1996 31, 1995
------ -------- --------
(In Thousands
of Dollars)
<S> <C> <C>
Real estate, at cost, net of accumulated
depreciation ....................................... $61,748 $62,324
Equipment, at cost, net of accumulated
depreciation of $592,000 and $553,000 .............. 251 224
Cash ................................................. 469 533
Tenants' security accounts ........................... 987 947
Sundry receivables ................................... 822 248
Prepaid expenses and other assets .................... 1,562 911
Deferred charges, net ................................ 306 348
------- -------
Totals ..................................... $66,145 $65,535
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgages payable ................................ $34,123 $34,598
Note payable - bank .............................. 6,166 5,169
Accounts payable and accrued expenses ............ 645 361
Dividends payable ................................ 546 1,154
Tenants' security deposits ....................... 1,085 1,048
Deferred revenue ................................. 356 257
------- -------
Total liabilities .......................... 42,921 42,587
------- -------
Minority interest .................................... 2,983 2,959
------- -------
Commitments and contingencies
Shareholders' equity:
Shares of beneficial interest without par
value; 1,560,000 shares authorized;
1,559,788 shares issued and outstanding ........ 19,314 19,314
Undistributed earnings ........................... 927 675
------- -------
Total shareholders' equity ................. 20,241 19,989
------- -------
Totals .................................... $66,145 $65,535
======= =======
See Notes to Combined Financial Statements.
<PAGE>
<CAPTION>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
COMBINED STATEMENTS OF INCOME AND UNDISTRIBUTED EARNINGS
NINE AND THREE MONTHS ENDED JULY 31, 1996 AND 1995
(Unaudited)
Nine Months Three Months
Ended July 31, Ended July 31,
INCOME 1996 1995 1996 1995
------ ---- ---- ---- ----
(In Thousands of Dollars,
Except Per Share Amounts)
<S> <C> <C> <C> <C>
Rental revenue:
Rental income .................... $ 8,951 $ 8,727 $ 3,016 $ 2,920
Real estate taxes reimbursed ..... 840 617 282 288
Common area maintenance reimbursed 348 285 44 102
Sundry income .................... 134 119 29 48
-------- -------- -------- --------
Totals ....................... 10,273 9,748 3,371 3,358
-------- -------- -------- --------
Rental expenses:
Operating expenses ................. 2,340 2,033 693 609
Management fees .................... 436 416 145 141
Real estate taxes .................. 1,551 1,132 505 376
Interest ........................... 2,265 2,311 752 773
Depreciation ....................... 1,192 1,140 401 388
-------- -------- -------- --------
Totals ....................... 7,784 7,032 2,496 2,287
-------- -------- -------- --------
Income from rental operations ........ 2,489 2,716 875 1,071
-------- -------- -------- --------
Other income (expense):
Interest income .................. 6 6 1 2
Interest expense ................. (347) (363) (120) (128)
General and administrative ....... (174) (193) (51) (67)
-------- -------- -------- --------
Totals ....................... (515) (550) (170) (193)
-------- -------- -------- --------
Income before minority interest ...... 1,974 2,166 705 878
Minority interest .................... (84) (81) (48) (34)
-------- -------- -------- --------
Net income ........................... $ 1,890 $ 2,085 $ 657 $ 844
======== ======== ======== ========
Earnings per share ................... $ 1.21 $ 1.34 $ .42 $ .54
======== ======== ======== ========
<PAGE>
<CAPTION>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
COMBINED STATEMENTS OF INCOME AND UNDISTRIBUTED EARNINGS
NINE AND THREE MONTHS ENDED JULY 31, 1996 AND 1995
(Unaudited)
(continued)
Nine Months Three Months
Ended July 31, Ended July 31,
INCOME 1996 1995 1996 1995
------ ---- ---- ---- ----
(In Thousands of Dollars,
Except Per Share Amounts)
<S> <C> <C> <C> <C>
UNDISTRIBUTED EARNINGS
Balance, beginning of period ......... $ 675 $ 1,834 $ 816 $ 1,375
Net income ........................... 1,890 2,085 657 844
Less dividends ....................... (1,638) (2,246) (546) (546)
-------- -------- -------- --------
Balance, end of period ............... $ 927 $ 1,673 $ 927 $ 1,673
======== ======== ======== ========
Dividends paid per share ............. $ 1.05 $ 1.44 $ .35 $ .35
======== ======== ======== ========
See Notes to Combined Financial Statements.
<PAGE>
<CAPTION>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
COMBINED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED JULY 31, 1996 AND 1995
(Unaudited)
1996 1995
------- -------
(In Thousands
of Dollars)
<S> <C> <C>
Operating activities:
Net income ........................................... $ 1,890 $ 2,085
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization .................... 1,234 1,152
Deferred revenue ................................. 99 199
Minority interest ................................ 84 81
Changes in operating assets and liabilities:
Tenants' security accounts .................... (40) (39)
Sundry receivables, prepaid expenses and
other assets .................................. (1,225) (502)
Accounts payable and accrued expenses ......... 284 (34)
Tenants' security deposits .................... 37 46
Other liabilities ............................. (50)
------- -------
Net cash provided by operating activities . 2,363 2,938
------- -------
Investing activities - capital expenditures .............. (643) (353)
------- -------
Financing activities:
Dividends paid ....................................... (2,246) (2,246)
Minority interest distribution
Deferred charges ..................................... (277)
Proceeds from note payable - bank .................... 997 396
Repayment of mortgages ............................... (475) (454)
------- -------
Net cash used in financing activities ..... (1,784) (2,581)
------- -------
Net increase (decrease) in cash .......................... (64) 4
Cash, beginning of period ................................ 533 238
------- -------
Cash, end of period ...................................... $ 469 $ 242
======= =======
Supplemental disclosure of cash flow data:
Interest paid ........................................ $ 2,610 $ 2,674
======= =======
Supplemental schedule of noncash financing activities:
Dividends declared but not paid amounted to $546,000 at July 31, 1996.
See Notes to Combined Financial Statements.
</TABLE>
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
NOTES TO COMBINED FINANCIAL STATEMENTS
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.
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 combined financial information included herein as at July 31,
1996 and for the nine and three months ended July 31, 1996 and
1995 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 combined financial
position as of that date and the combined results of operations
for those periods. The information in the combined balance sheet
as of October 31, 1995 was derived from the Trust's audited
annual report for 1995.
Principles of combination:
The combined financial statements include the accounts of the
Trust and Westwood Hills, LLC (the "Affiliate"), which have been
combined on the basis of common control. The Affiliate is a
limited liability company that is 40%-owned by the Trust and
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 the Affiliate are either trustees of the Trust or
their families or officers of Hekemian. The combined financial
statements include 100% of the Affiliate's assets, liabilities,
operations and cash flows with the 60% interest owned by the
other members of the Affiliate reflected as "minority interest."
All significant intercompany accounts and transactions have been
eliminated in combination.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
NOTES TO COMBINED FINANCIAL STATEMENTS
Note 1 - Organization and significant accounting policies (continued):
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.
Cash:
The Trust and its Affiliate maintain their cash in bank deposit
accounts which, at times, may exceed Federally insured limits.
The Trust considers all highly liquid debt instruments purchased
with a maturity of three months or less to be cash equivalents.
At July 31, 1996 and October 31, 1995, the Trust had no cash
equivalents.
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.
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.
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. Deferred leasing commissions are
amortized on the straight-line method over the terms of the
applicable leases.
Advertising:
The Trust expenses the cost of advertising and promotions as
incurred. Advertising costs charged to operations amounted to
approximately $41,700 and $20,200 for the nine months ended July
31, 1996 and 1995, respectively, and approximately $12,000 and
$10,100 for the three months ended July 31, 1996 and 1995,
respectively.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
NOTES TO COMBINED FINANCIAL STATEMENTS
Note 1 - Organization and significant accounting policies (concluded):
Income taxes:
The Affiliate, with the consent of its members, elected to be
treated as a limited liability company under the applicable
sections of the Internal Revenue Code. Under these sections,
income or loss, in general, is allocated to the members for
inclusion in their individual income tax returns. Accordingly,
there is no provision for income taxes applicable to the
operations of the Affiliate in the accompanying combined
financial statements.
Earnings per share:
Earnings per share are computed based on the weighted average
number of shares outstanding. The weighted average number of
shares outstanding was 1,559,788 for each of the nine and three
month periods ended July 31, 1996 and 1995.
Note 2 - Real estate:
Real estate consists of the following:
<TABLE>
<CAPTION>
Range
of Estimated July October
Useful Lives 31, 1996 31, 1995
------------ -------- --------
(In Thousands
of Dollars)
<S> <C> <C>
Land .............................. $21,112 $21,112
Unimproved land ................... 2,464 2,452
Apartment buildings ............... 7-40 years 21,703 21,333
Commercial buildings .............. 25-31.5 years 58 58
Shopping centers .................. 15-50 years 26,947 26,859
Construction in
progress ........................ 817 714
------- -------
73,101 72,528
Less accumulated
depreciation .................... 11,353 10,204
------- -------
Totals ........................ $61,748 $62,324
======= =======
</TABLE>
<PAGE>
Note 3 - Mortgages payable:
Mortgages payable consist of the following:
<TABLE>
<CAPTION>
July October
31, 1996 31, 1995
-------- --------
(In Thousands
of Dollars)
<S> <C> <C>
State Mutual Life Assurance Company
of America (A) ................................. $18,143 $18,359
Aetna Life Insurance Company (B) ................. 5,352 5,444
USG Annuity & Life Company (C) ................... 10,383 10,488
United Jersey Bank (D) ........................... 245 307
------- -------
Totals ....................................... $34,123 $34,598
======= =======
(A) Payable in monthly installments of $160,925 including interest at 9%
through August 1997 at which time the outstanding balance is due. The
mortgage is secured by a shopping center in Frederick, Maryland having a
net book value of approximately $25,903,000.
(B) Payable in monthly installments of $55,287 including interest at 10%
through September 2001 at which time the outstanding balance is due. The
mortgage is secured by a shopping center in Westwood, New Jersey having
a net book value of approximately $11,948,000.
(C) Payable in monthly installments of $79,655 including interest at 7.8%
through October 2002 at which time the outstanding balance is due. The
mortgage is secured by an apartment complex in Westwood, New Jersey
having a net book value of approximately $14,953,000.
(D) Payable in monthly installments of $8,555 including interest at 7.625%
through March 1999 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 $628,000. One of the directors
of the bank is a trustee of the Trust.
</TABLE>
Principal amounts (in thousands of dollars) due under the above
obligations in each of the five years subsequent to July 31, 1996 are as
follows:
Year Ending
July 31, Amount
-------- ------
1997 $ 683
1998 18,229
1999 402
2000 372
2001 407
Based on borrowing rates for mortgages with similar terms, the fair
value of the mortgage debt is approximately $34,648,000 at July 31,
1996.
<PAGE>
Note 4 - Note payable - bank:
Note payable - bank consists of borrowings under a $20,000,000
revolving line of credit agreement with United Jersey Bank which
expires on February 10, 1997. The first $10,000,000 of borrowings
under the line of credit bear interest at either the prime rate or
the LIBOR rate plus 200 basis points. Any excess borrowings bear
interest at either the prime rate plus 1/2% or the LIBOR rate plus
250 basis points. Outstanding borrowings are secured by all of the
Trust's properties except the shopping centers located in
Frederick, Maryland and Westwood, New Jersey and any vacant land
owned by the Trust.
Note 5 - Commitments and contingencies:
Leases:
Commercial tenants:
The Trust leases commercial space having a net book value of
approximately $38,989,000 at July 31, 1996 to tenants for periods
of up to twenty 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 noncancel-
able operating leases in years subsequent to July 31, 1996 are as
follows:
Year Ending
July 31, Amount
-------- ------
1997 $ 3,641
1998 3,216
1999 2,870
2000 2,379
2001 2,169
Thereafter 9,435
=======
Total $23,710
The above amounts assume that all leases which expire are not
renewed and, accordingly, neither minimal rentals nor rentals from
replacement tenants are included. In addition, the above amounts
do not include any future minimum rentals to be received for the
shopping center in Franklin Lakes, New Jersey having a net book
value of approximately $1,138,000 at July 31, 1996. Except for two
tenants, management closed the shopping center on September 1,
1995. Commencement of a complete refurbishing of the premises is
scheduled to begin during the Fall of 1996 and is expected to be
open for operations in the Summer of 1997. The cost of the
refurbishing, which has been put out for bid, is currently
anticipated to approximate $6,000,000. Rental revenue derived from
the shopping center was approximately $106,000 and $140,000 for
the nine months ended July 31, 1996 and 1995, respectively, and
approximately $35,000 for each of the three month periods ended
July 31, 1996 and 1995. The net income (loss) from rental
operations was approximately $(14,000) and $68,000 for the nine
months ended July 31, 1996 and 1995, respectively, and $(29,000)
and $13,000 for the three months ended July 31, 1996 and 1995,
respectively.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
NOTES TO COMBINED FINANCIAL STATEMENTS
Note 5 - Commitments and contingencies (concluded):
Leases (concluded):
Commercial tenants (concluded):
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 each of the
nine and three month periods ended July 31, 1996 and 1995 were not
material.
Residential tenants:
Lease terms for residential tenants are usually one year or less.
Environmental concerns:
A landfill which is considered a superfund site is located next to
a vacant parcel of land which is owned by the Trust. The New
Jersey Department of Environmental Protection and Energy ("NJDEP")
had advised the Trust that it was investigating the property for
contamination as a result of the migration of environmentally
sensitive materials from the landfill. In August 1994, the Trust
was advised that, although the soil had not been environmentally
impaired and a clean-up of the property would not be required, the
NJDEP did determine that the groundwater in the area of the
landfill, including below the Trust's property, is contaminated as
a result of the activity at the landfill. Accordingly, the NJDEP
is currently in the process of enforcing remediation of the
groundwater by the responsible parties. As the Trust is not a
responsible party, management anticipates that it will bear no
liability for the cost of the ground- water remediation.
Acquisition:
The Trust has entered into a contract to purchase a 65,000 square
foot shopping center to be constructed in Patchogue, New York for
approximately $11,000,000 including commissions and estimated
professional fees. The Trust anticipates that it will purchase the
Patchogue center through a joint venture with one or more
investors on a basis where the Trust would retain full management
control. The contract to purchase the Patchogue center is
contingent upon the construction being completed during January
1997.
Note 6 - Management agreement:
The properties owned by the Trust and the Affiliate are currently
managed by Hekemian. The management agreement requires fees equal
to a percentage of rents collected. Such fees were approximately
$436,000 and $416,000 for the nine months ended July 31, 1996 and
1995, respectively, and approximately $145,000 and $141,000 for
the three months ended July 31, 1996 and 1995, respectively.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY AND AFFILIATE
NOTES TO COMBINED FINANCIAL STATEMENTS
Note 7 - Earnings per share:
Earnings per share, based on the weighted average number of shares
outstanding during each period, are comprised of ordinary income.
* * *
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
Results of Operations
1) Third Quarter 1996 versus Second Quarter 1996
The ordinary earnings per share for the Trust were $0.42 for the Third
Quarter 1996 as opposed to $0.35 for the Second Quarter 1996. The results for
the Third Quarter 1996 are consistent with expectations of management and past
experience.
2) Third Quarter 1996 versus Third Quarter 1995
The ordinary earnings per share were $0.42 for the Third Quarter 1996
as compared with $0.54 for the Third Quarter 1995. The results for the Third
Quarter 1996 reflects a substantial increase in real property taxes for its
properties, particularly in New Jersey, together with certain one-time charges
due to an adjustment in Common Area Maintenance charges.
3) Nine Months Ending July 31, 1996 versus Nine Months
Ending July 31, 1995
The ordinary income for the Trust was $1.21 per share for the first
nine months of 1996 as compared with $1.34 for the same period in 1995. The
decrease reflects the decline in the earnings for the Third Quarter 1996 when
compared with the same period in 1995.
<PAGE>
Financial Condition
The Trust is currently generating sufficient cash flow to meet all of
its operational requirements. The Trust does not anticipate that it will be
required to borrow funds to pay any projected dividends other than on a
short-term basis.
The Trust will, however, borrow funds under its Line of Credit or
mortgage financing to raise sufficient funds for the demolishment and
reconstruction of its shopping center in Franklin Lakes, New Jersey, see Part II
- - Other Information, Item 5 (B), which follows, for details. In addition, the
Trust has entered into a contract to purchase a new shopping center in New York
State. In the event that title for the property is closed, the Trust anticipates
that it will secure permanent mortgage financing. In addition, the Trust may
also draw on its Line of Credit with Summit Bancorp (successor to United Jersey
Bank) to fund the purchase of the shopping center.
<PAGE>
PART II. OTHER INFORMATION
Item 5. A) Annual Meeting; Election of Board Members and Officers
At the May 29, 1996 Annual Meeting of the Trust, Messrs. Robert S.
Hekemian, Charles J. Dodge and Dr. John B. Voskian were elected to suc- ceed
themselves as members of the Board of Trustees.
The current officers of the Trust are:
Robert S. Hekemian - Chairman
Donald W. Barney - President
Dr. John B. Voskian - Secretary
William R. DeLorenzo, Jr. - Executive Sec. & Treasurer
The current members of the Board of Trustees are:
Robert S. Hekemian
Donald W. Barney
Dr. John B. Voskian
Hon. Herbert C. Klein
Nicholas A. Laganella
Charles J. Dodge
Ronald J. Artinian
Alan L. Aufzien
B) Franklin Lakes, New Jersey
The Trust has secured all of the local and state approvals required to
demolish the current shopping center located in Franklin Lakes, New Jersey. The
Trust is proceeding to finalize plans to construct a supermarket store for Grand
Union pursuant to a lease which has been executed. The Trust presently
anticipates, that provided the plans are finalized by November 1, 1996, that
construction of the new shopping center will be completed by November 1, 1997.
<PAGE>
ITEM 6. No exhibits are required.
No Form 8-K was filed by the Trust.
<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 25, 1996
/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.
<PAGE>
SALES OF UNREGISTERED SECURITIES (DEBT OR EQUITY)
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
N O N E
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1996
<PERIOD-END> JUL-31-1996
<CASH> 469
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 73,944
<DEPRECIATION> 11,945
<TOTAL-ASSETS> 66,145
<CURRENT-LIABILITIES> 0
<BONDS> 40,289
0
0
<COMMON> 19,314
<OTHER-SE> 922
<TOTAL-LIABILITY-AND-EQUITY> 66,145
<SALES> 0
<TOTAL-REVENUES> 10,273
<CGS> 0
<TOTAL-COSTS> 7,784
<OTHER-EXPENSES> 599
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,890
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,890
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,890
<EPS-PRIMARY> 1.21
<EPS-DILUTED> 1.21
</TABLE>
