SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended April 30, 1998 Commission File No. 2-27018
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.) Balance Sheets for April 30, 1998 and October 31, 1997;
b.) Statements of Income and Undistributed Earnings For Six
and Three Months Ended April 30, 1998 and 1997;
c.) Statements of Cash Flows for Six Months Ended
April 30, 1998 and 1997;
Item 2: Management's Discussion and Analysis of Results of Operations
and Financial Condition
Part II: Other Information
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
<PAGE>
Disclosure Concerning Forward-Looking Statements
Certain statements in the "Management's Discussion and Analysis of the
Results of Operation and Financial Condition", and certain of the Notes to the
Registrant's Financial Statements, in particular Note 6, contain or may contain
information that is forward-looking within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The
Registrant cautions readers that forward-looking statements, including, without
limitation, those relating to the Registant's liquidity and capital resources,
are subject to certain risks and uncertainties. Actual results may differ
materially from those described in the forward-looking statements and will be
affected by a variety of risk and factors, including without limitation, the
Registrant's future financial performance; the availability of capital; general
market conditions; national and local economic conditions, particularly
long-term interest rates; the terms of federal, state and local governmental
regulations that affect the Registrant; and the competitive environment in which
the Registrant operates, including, the availability of commercial office space
and residential units in the areas where the Registrant's properties are
located. In addition, the Registrant's continued qualification as a real estate
investment trust involves the application of highly technical and complex
programs of the Internal Revenue Code. The forward-looking statements are made
as of the date of this Form 10-Q and the Registrant assumes no obligation to
update the forward-looking statements or to update the reasons actual results
could differ from those projeced in such forward-looking statements.
<PAGE>
<TABLE>
<CAPTION>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
BALANCE SHEETS
APRIL 30, 1998 AND OCTOBER 31, 1997
April October
ASSETS 30, 1998 31, 1997
------- -------
(Unaudited)(See Note 1)
(In Thousands
of Dollars)
<S> <C> <C>
Real estate, at cost, net of accumulated depreciation ............... $65,092 $53,737
Equipment, at cost, net of accumulated depreciation of $677,000
and $657,000 .................................................... 185 184
Investment in affiliate ............................................. 1,863 1,905
Cash and cash equivalents ........................................... 318 228
Tenants' security accounts .......................................... 757 719
Sundry receivables .................................................. 710 280
Prepaid expenses and other assets ................................... 758 1,470
Deferred charges, net ............................................... 1,175 710
------- -------
Totals ................................................... $70,858 $59,233
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Mortgages payable ............................................... $48,186 $24,429
Note payable - bank ............................................. 11,429
Accounts payable and accrued expenses ........................... 446 409
Construction liabilities ........................................ 118 496
Dividends payable ............................................... 624 1,326
Tenants' security deposits ...................................... 946 905
Deferred revenue ................................................ 87 255
------- -------
Total liabilities ........................................ 50,407 39,249
------- -------
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 .......................................... 1,137 670
------- -------
Total shareholders' equity ............................... 20,451 19,984
------- -------
Totals ................................................... $70,858 $59,233
======= =======
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
STATEMENTS OF INCOME AND UNDISTRIBUTED EARNINGS
SIX AND THREE MONTHS ENDED APRIL 30, 1998 AND 1997
(Unaudited)
Six Months Three Months
Ended April 30, Ended April 30,
INCOME 1998 1997 1998 1997
------- ------- ------- -------
(In Thousands of Dollars,
Except Per Share Amounts)
<S> <C> <C> <C> <C>
Revenue:
Rental income ................... $ 6,026 $ 4,911 $ 3,108 $ 2,425
Reimbursements .................. 824 685 441 357
Equity in income of affiliate ... 78 77 42 46
Sundry income ................... 102 83 65 42
------- ------- ------- -------
Totals ...................... 7,030 5,756 3,656 2,870
------- ------- ------- -------
Expenses:
Operating expenses .............. 1,518 1,321 794 676
Management fees ................. 273 248 145 127
Real estate taxes ............... 889 839 447 409
Interest ........................ 1,836 1,313 931 653
Depreciation .................... 792 646 417 329
------- ------- ------- -------
Totals ...................... 5,308 4,367 2,734 2,194
------- ------- ------- -------
Income before state income taxes .... 1,722 1,389 922 676
Provision for state income taxes .... 7 6 3 3
------- ------- ------- -------
Net income........................... $1,715 $ 1,383 $ 919 $ 673
======= ======= ======= =======
Earnings per share .................. $ 1.10 $ .89 $ .59 $ .43
======= ======= ======= =======
UNDISTRIBUTED EARNINGS
Balance, beginning of period ........ $ 670 $ 670 $ 842 $ 670
Net income .......................... 1,715 1,383 919 673
Less dividends ...................... (1,248) (1,092) (624) (546)
------- ------- ------- -------
Balance, end of period .............. $ 1,137 $ 961 $ 1,137 $ 797
======= ======= ======= =======
Dividends per share ................. $ .80 $ .70 $ .40 $ .35
======= ======= ======= =======
</TABLE>
See Notes to Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED APRIL 30, 1998 AND 1997
(Unaudited)
1998 1997
-------- --------
(In Thousands
of Dollars)
<S> <C> <C>
Operating activities:
Net income ..................................................... $ 1,715 $ 1,383
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization .............................. 852 665
Deferred revenue ........................................... (168) (230)
Equity in income of affiliate .............................. (78) (77)
Changes in operating assets and liabilities:
Tenants' security accounts .............................. (38) (9)
Sundry receivables, prepaid expenses and other assets ... 282 515
Accounts payable and accrued expenses ................... 37 82
Tenants' security deposits .............................. 41 17
-------- --------
Net cash provided by operating activities ........... 2,643 2,346
-------- --------
Investing activities:
Capital expenditures ........................................... (5,026) (946)
Distributions from affiliate ................................... 120 80
-------- --------
Net cash used in investing activities ............... (4,906) (866)
-------- --------
Financing activities:
Dividends paid ................................................. (1,950) (1,575)
Proceeds (repayments) of note payable - bank ................... (11,429) 675
Net proceeds from mortgage refinancing ......................... 5,443
Proceeds from mortgage borrowings .............................. 11,100
Deferred mortgage costs ........................................ (525) (202)
Repayment of mortgages ......................................... (286) (274)
-------- --------
Net cash provided by (used in) financing activities . 2,353 (1,376)
-------- --------
Net increase in cash and cash equivalents .......................... 90 104
Cash and cash equivalents, beginning of period ..................... 228 189
-------- --------
Cash and cash equivalents, end of period ........................... $ 318 $ 293
======== ========
Supplemental disclosure of cash flow data:
Interest paid .................................................. $ 1,837 $ 1,091
======== ========
Supplemental schedule of noncash investing and financing activities:
Dividends declared but not paid amounted to $624,000 and $546,000 at April
30, 1998 and 1997.
During the six months ended April 30, 1998, the Trust completed its
acquisition of a 64,000 square foot commercial property in Patchogue, New
York for approximately $11,000,000, in part, with the proceeds of a
$7,500,000 mortgage.
</TABLE>
See Notes to Financial Statements.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
Note 1 - Organization and significant accounting policies:
Organization:
First Real Estate Investment Trust of New Jersey (the
"Trust") was organized on November 1, 1961 as a New Jersey
Business Trust. The Trust is engaged in owning residential
and commercial income producing properties located in New
Jersey, Maryland and New York.
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 financial information included herein as at April 30,
1998 and for the six and three months ended April 30, 1998
and 1997 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
financial position as of that date and the results of
operations for those periods. The information in the balance
sheet as of October 31, 1997 was derived from the Trust's
audited annual report for 1997.
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.
Investment in affiliate:
The Trust's 40% investment in Westwood Hills, LLC (the
"Affiliate") is accounted for using the equity method.
Cash and cash equivalents:
The Trust maintains its 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 October 31, 1997, the Trust had no cash equivalents.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
Note 1 - Organization and significant accounting policies (concluded):
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 $23,000 and $13,000 for the six months
ended April 30, 1998 and 1997, respectively, and
approximately $9,000 and $8,000 for the three months ended
April 30, 1998 and 1997, respectively.
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
six and three month periods ended April 30, 1998 and 1997.
Reclassifications:
Certain amounts in the 1997 financial statements have been
reclassified to conform with the current presentation.
Note 2 - Investment in affiliate:
The Trust is a 40% member of the Affiliate, a limited liability
company that is 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
Affiliate owns a residential apartment complex located in
Westwood, New Jersey.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
Note 2 - Investment in affiliate (concluded):
Summarized financial information of the Affiliate as of April
30, 1998 and October 31, 1997 and for the six and three months
ended April 30, 1998 and 1997 is as follows:
<TABLE>
<CAPTION>
April October
30, 1998 31, 1997
------- -------
(In Thousands
of Dollars)
<S> <C> <C>
Balance sheet data:
Assets:
Real estate and equipment, net ............ $14,563 $14,696
Other ..................................... 584 551
------- -------
Total assets .......................... $15,147 $15,247
======= =======
Liabilities and equity:
Liabilities:
Mortgage payable ........................ $10,110 $10,192
Other ................................... 382 295
------- -------
Totals .............................. 10,492 10,487
------- -------
Members' equity:
Trust ................................... 1,863 1,905
Others .................................. 2,792 2,855
------- -------
Totals .............................. 4,655 4,760
------- -------
Total liabilities and equity ........ $15,147 $15,247
======= =======
<CAPTION>
Six Months Ended Three Months Ended
April 30, April 30,
1998 1997 1998 1997
------ ------ ------ ------
(In Thousands of Dollars)
<S> <C> <C> <C> <C>
Income statement data:
Rental revenue ............ $1,293 $1,246 $ 648 $ 625
Rental expenses ........... 1,098 1,055 542 514
------ ------ ------ ------
Net income ................ $ 195 $ 191 $ 106 $ 111
====== ====== ====== ======
</TABLE>
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
Note 3 - Real estate:
Real estate consists of the following:
<TABLE>
<CAPTION>
Range
of Estimated April October
Useful Lives 30, 1998 31, 1997
------------ -------- --------
(In (Thousands
of Dollars)
<S> <C> <C> <C>
Land $22,768 $20,244
Unimproved land 2,308 2,310
Apartment buildings 7-40 years 10,892 10,711
Commercial buildings and shopping
centers 15-50 years 39,400 30,328
Construction in progress 2,478 2,126
--------- ---------
77,846 65,719
Less accumulated depreciation 12,754 11,982
-------- --------
Totals $65,092 $53,737
======= =======
</TABLE>
Note 4 - Mortgages payable:
Mortgages payable consist of the following:
<TABLE>
<CAPTION>
April October
30, 1998 31, 1997
-------- --------
(In Thousands
of Dollars)
<S> <C> <C>
Northern Life Insurance Cos. (A) ......... $19,002 $19,123
Travelers Insurance (B) .................. 5,181
National Realty Funding L.C. (B) ......... 10,576
Summit Bank (C) .......................... 78 125
Summit Bank (D) .......................... 7,465
Federal Home Loan Mortgage Corporation (E) 11,065
------- -------
Totals ............................ $48,186 $24,429
======= =======
</TABLE>
(A) The mortgage is payable in monthly installments of $152,153
including interest at 8.31% through June 2007 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 $24,819,000.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
Note 4 - Mortgages payable (concluded):
(B) On January 9, 1998, the Trust repaid the existing
mortgage on the Westwood, New Jersey shopping center
utilizing proceeds from a new mortgage in the amount
of $10,600,000 with National Realty Funding L.C. The
new mortgage is payable in monthly installments of
$73,248 including interest at 7.38% through February
2013 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 $11,626,000.
(C) Payable in monthly installments of $8,555 including
interest at 7.625% through March 1999. The mortgage
is secured by an apartment building in Spring Lake,
New Jersey having a net book value of approximately
$578,000. One of the directors of the bank is a
trustee of the Trust.
(D) Payable in monthly installments of $54,816 including
interest at 7.375% through January 2005 at which time
the outstanding balance is due. The mortgage is
secured by a commercial building in Patchogue, New
York having a net book value of approximately
$10,873,000.
(E) Payable in monthly installments of $76,023 including
interest at 7.29% through July 2010 at which time the
outstanding balance is due. The mortgage is secured
by an apartment building in Wayne, New Jersey having
a net book value of approximately $1,621,000.
Principal amounts (in thousands of dollars) due under the above
obligations in each of the five years subsequent to April 30,
1998 are as follows:
Year Ending
April 30, Amount
--------- ------
1999 $559
2000 512
2001 554
2002 599
2003 648
Based on borrowing rates currently available to the Trust, the
carrying amount of mortgages payable approximates fair value at
April 30, 1998.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
Note 5 - Note payable - bank:
At October 31, 1997, note payable - bank consisted of borrowings
under a revolving line of credit agreement with Summit Bank
which expired on April 30, 1998, at which time the agreement was
renegotiated and extended to May 31, 1999. Maximum borrowings
under the agreement were $12,310,000 and $20,000,000 at April
30, 1998 and October 31, 1997, respectively. The line of credit
bears interest at the bank's floating base rate plus .25% or the
LIBOR rate plus 175 basis points. Outstanding borrowings are
secured by all of the Trust's properties except commercial
property located in Frederick, Maryland, Westwood, New Jersey
and Patchogue, New York, apartment buildings in Wayne, New
Jersey, River Edge, New Jersey and Maywood, New Jersey and any
vacant land owned by the Trust. There were no outstanding
borrowings under the agreement at April 30, 1998.
Note 6 - Commitments and contingencies:
Leases:
Commercial tenants:
The Trust leases commercial space having a net book
value of approximately $57,292,000 at April 30, 1998 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
noncancelable operating leases in years subsequent to
April 30, 1998 are as follows:
Year Ending
April 30, Amount
--------- ------
1999 $ 5,968
2000 5,611
2001 5,343
2002 5,042
2003 4,752
Thereafter 51,599
-------
Total $78,315
=======
The above amounts assume that all leases which expire
are not renewed and, accordingly, neither minimal
rentals nor rentals from replacement tenants are
included.
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
six and three months ended April 30, 1998 and 1997 were
not material.
<PAGE>
FIRST REAL ESTATE INVESTMENT TRUST OF NEW JERSEY
NOTES TO FINANCIAL STATEMENTS
Note 6 - Commitments and contingencies (concluded):
Residential tenants:
Lease terms for residential tenants are usually one
year or less.
Standby letters of credit:
At April 30, 1998, the Trust was obligated under irrevocable
standby letters of credit of approximately $100,000 in
connection with certain required land improvements at the
Franklin Lakes shopping center.
Environmental concerns:
In accordance with applicable regulations, the Trust
reported to the New Jersey Department of Environmental
Protection that a discharge of hazardous material was
recently discovered at the newly renovated Franklin Crossing
Shopping Center (the "Center").
At present, the discharge material appears to be isolated
and management believes there will be no significant effect
on the operations of the Center.
In connection therewith, the Trust is required to
investigate and monitor such discharge, the cost of which
will not be material.
Note 7 - Management agreement and related party transactions:
The properties owned by the Trust are currently managed by
Hekemian. The management agreement requires fees equal to a
percentage of rents collected. Such fees were approximately
$273,000 and $248,000 for the six months ended April 30, 1998
and 1997, respectively, and approximately $145,000 and $127,000
for the three months ended April 30, 1998 and 1997,
respectively.
Note 8 - Earnings per share:
Earnings per share, based on the weighted average number of
shares outstanding during each period, are comprised of ordinary
income.
* * *
<PAGE>
Part 1.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE RESULTS OF OPERATIONS
AND FINANCIAL CONDITION
The following discussion should be read in conjunction with the
attached financial statements and notes thereto, and the Registrant's Audited
Financial Statements and notes thereto for Fiscal Year Ended October 31, 1997.
Liquidity and Capital Resources
Line of Credit
In order to pursue individual permanent financing on three properties,
the Registrant elected to remove these properties from Summit Bank's collateral
package securing the $20 million Line of Credit. (On December 15, 1997, an $11.1
million mortgage was placed on Berdan Court Apartments, one of the properties
removed from the collateral package.) As a result, the Credit Line was extended
to May 1, 1999 with draws against the Credit Line limited to $12.3 million.
There is no principal balance, as of June 15, 1998, outstanding under the Credit
Line.
The reduction of the Credit Line will not negatively impact on the
Registrant's operations given the Registrant's ability to finance additional
properties in its portfolio of assets.
Liquidity
Cash from operations has enabled the Registrant to meet all current
obligations; Registrant expects that cash from operations will allow it to meet
all future requirements as they become due.
Results of Operations
The Registrant's net income for the second quarter ended April 30,
1998, increased 36.6% to $920,000 ($.59 per share) from $673,000 ($.43 per
share) for the comparable prior year quarter.
Net income for the six months ended April 30, 1998, increased 24.0% to
$1,715,000 ($1.10 per share) from $1,383,000 ($.89 per share) for the six months
ended April 30, 1997.
Earnings from operating properties (before interest costs) increased
$895,000 over the prior year. While earnings at comparable properties in both
years increased as a result of higher base rents and lower operating costs, the
principle increase in earnings came from the Registrant's new commercial
properties in Patchogue, New York, and Franklin Lakes, New Jersey.
<PAGE>
Funds from operations, consisting of net income, excluding deferred
rents and gains and losses from property sales, plus real estate related
depreciation and amortization, ("FFO") was $1,288,000 for the second quarter of
fiscal 1998 as compared to $1,035,000 for the same period in 1997. FFO for the
six months 1998 was $2,567,000 as compared to $2,100,000 for the same period in
1997.
Part II.
Item 4. Submission of Matters to a Vote of Security Holders
On May 27, 1998 at the Annual Meeting of the Shareholders, the
Shareholders re-elected Donald W. Barney, Ronald A. Artinian and Alan L. Aufzien
as Trustees for additional three year terms. A total of 1,316,848 votes were
cast in favor of each Trustee; there were 1,559,788 shares of the Registrant
eligible to vote. There were no negative votes.
Item 5. Other Information
The Board of Trustees declared a $.40, second quarter dividend payable
on June 22, 1998, to shareholders of record on June 8, 1998. This will raise
dividends paid thus far this fiscal year to $.80 per share compared to $.70 per
share paid during the same period in 1997.
Item 6. Exhibits and Reports on Form 8-K
No Form 8-K was filed during the Second Quarter of fiscal year 1998
which ended April 30, 1998.
<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 June 18, 1998
/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> 6-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> APR-30-1998
<CASH> 318,000
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 78,708,000
<DEPRECIATION> (13,431,000)
<TOTAL-ASSETS> 70,858,000
<CURRENT-LIABILITIES> 0
<BONDS> 48,186,000
0
0
<COMMON> 19,314,000
<OTHER-SE> 1,137,000
<TOTAL-LIABILITY-AND-EQUITY> 70,858,000
<SALES> 0
<TOTAL-REVENUES> 7,030,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,472,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,836,000
<INCOME-PRETAX> 1,722,000
<INCOME-TAX> 7,000
<INCOME-CONTINUING> 1,715,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,715,000
<EPS-PRIMARY> 1.10
<EPS-DILUTED> 1.10
</TABLE>
