SECURITIES AND EXCHANGE COMMISSION

                          Washington, D.C.  20549

                                 FORM 10-Q

(Mark One)

  [x]             QUARTERLY REPORT PURSUANT TO SECTION 13 OR
                 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended   September 30, 1999
                                -------------------

                                    OR


  [ ]        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to

                   Commission file number      1-8594
                                               -------


                    PRESIDENTIAL REALTY CORPORATION
                    -------------------------------
          (Exact name of registrant as specified in its charter)

       Delaware                                        13-1954619
       ---------                                       ----------
(State or other jurisdiction of                    (I.R.S. Employer
  incorporation or organization)                   Identification No.)

  180 South Broadway, White Plains, New York              10605
  ------------------------------------------              ------
  (Address of principal executive offices)              (Zip Code)

Registrant's telephone number, indicating area code     914-948-1300
                                                        ------------

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

The number of shares outstanding of each of the issuer's classes of common stock
as of the close of business  on  November 5, 1999 was 478,940  shares of Class A
common and 3,147,053 shares of Class B common.













              PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES




                              Index to Form 10-Q

                          For the Nine Months Ended

                              September 30, 1999



Part I - Financial Information (Unaudited)


     Consolidated Balance Sheets

     Consolidated Statements of Operations

     Consolidated Statements of Cash Flows

     Notes to Consolidated Financial Statements

     Management's Discussion and Analysis of
       Financial Condition and Results of Operations

Part II - Other Information

     Item 6.  Exhibits and Reports on Form 8-K









<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
<CAPTION>



Assets                                                                                 September 30,               December 31,
                                                                                           1999                       1998
                                                                                     ------------------         ------------------
<S>                                                                                  <C>                        <C>

  Mortgage portfolio (Note 2):
    Sold properties, accrual                                                               $28,503,621                $43,440,675
    Related parties, accrual                                                                 1,602,601                  1,698,982
    Sold properties, impaired                                                                                          17,589,027
                                                                                     ------------------         ------------------

    Total mortgage portfolio                                                                30,106,222                 62,728,684
                                                                                     ------------------         ------------------

  Less discounts:
    Sold properties, accrual                                                                 1,944,669                  4,049,630
    Related parties, accrual                                                                   136,114                    149,685
    Sold properties, impaired                                                                                           7,597,138
                                                                                     ------------------         ------------------

    Total discounts                                                                          2,080,783                 11,796,453
                                                                                     ------------------         ------------------

  Less deferred gains:
    Sold properties, accrual                                                                11,320,373                 12,538,907
    Related parties, accrual                                                                   913,976                    930,057
    Sold properties, impaired                                                                                           6,362,838
                                                                                     ------------------         ------------------

    Total deferred gains                                                                    12,234,349                 19,831,802
                                                                                     ------------------         ------------------

  Net mortgage portfolio (of which $127,957 in 1999
    and $931,393 in 1998 are due within one year)                                           15,791,090                 31,100,429
                                                                                     ------------------         ------------------


  Real estate (Note 3)                                                                      35,437,238                 34,703,657
    Less: accumulated depreciation                                                           7,973,669                  7,231,639
                                                                                     ------------------         ------------------

  Net real estate                                                                           27,463,569                 27,472,018
                                                                                     ------------------         ------------------


  Minority partners' interest (Note 4)                                                       7,944,444                  7,552,743
  Prepaid expenses and deposits in escrow                                                    1,783,587                  2,130,214
  Other receivables (net of valuation allowance of
    $128,799 in 1999 and $120,102 in 1998)                                                     697,695                    623,521
  Securities available for sale (Note 5)                                                     8,304,893                  1,274,734
  Cash and cash equivalents                                                                  1,683,623                  1,764,465
  Other assets                                                                               1,613,698                  1,988,121
                                                                                     ------------------         ------------------

  Total Assets                                                                             $65,282,599                $73,906,245
                                                                                     ==================         ==================




  See notes to consolidated financial statements.
</TABLE>





<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
<CAPTION>

Liabilities and Stockholders' Equity

                                                                                        September 30,                December 31,
                                                                                            1999                         1998
                                                                                      -----------------            -----------------

<S>                                                                                   <C>                          <C>
      Liabilities:
        Mortgage debt (Note 6):
          Properties owned                                                                 $39,494,667                  $39,728,031
          Wrap mortgage debt on sold properties                                                                           4,668,462
                                                                                      -----------------            -----------------

        Total (of which $1,340,736 in 1999 and $905,305
          in 1998 are due within one year)                                                  39,494,667                   44,396,493

        Note payable to bank (Note 7)                                                                                    10,395,361
        Executive pension plan liability                                                     1,483,986                    1,496,357
        Accrued liabilities                                                                  1,759,388                    2,630,564
        Accrued taxes payable (Note 8)                                                       1,566,474
        Accrued postretirement costs                                                           546,993                      562,167
        Deferred income                                                                        104,430                      565,713
        Accounts payable                                                                       284,420                      235,807
        Distribution payable on common stock                                                   580,154
        Other liabilities                                                                      779,211                      772,949
                                                                                      -----------------            -----------------

      Total Liabilities                                                                     46,599,723                   61,055,411
                                                                                      -----------------            -----------------


      Stockholders' Equity:
        Common stock; par value $.10 per share
          Class A, authorized 700,000 shares, issued and
            outstanding 478,940 shares                                                          47,894                       47,894
          Class B              September 30, 1999          December 31, 1998                   314,828                      313,609
           -----------         ---------------------   ----------------------
          Authorized:                  10,000,000                 10,000,000
          Issued:                       3,148,280                  3,136,092
          Treasury:                         1,258                     11,224

        Additional paid-in capital                                                           2,187,530                    2,172,368
        Retained earnings                                                                   17,224,354                   10,453,253
        Net unrealized gain (loss) on securities available for sale (Notes 5 and 9)         (1,074,902)                      15,677
        Class B, treasury stock (at cost) (Note 10)                                            (16,828)                    (151,967)
                                                                                      -----------------            -----------------

      Total Stockholders' Equity                                                            18,682,876                   12,850,834
                                                                                      -----------------            -----------------

      Total Liabilities and Stockholders' Equity                                           $65,282,599                  $73,906,245
                                                                                      =================            =================







  See notes to consolidated financial statements.
</TABLE>



<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
<CAPTION>




                                                                                                NINE MONTHS ENDED
                                                                                                     SEPTEMBER 30,
                                                                                    ---------------------------------------

                                                                                          1999                  1998
                                                                                    -----------------     -----------------
Income:
<S>                                                                                       <C>                   <C>
  Rental                                                                                  $7,900,449            $7,144,012
  Interest on mortgages - sold properties                                                  2,209,995             2,847,079
  Interest on wrap mortgages                                                                 528,173               960,181
  Interest on mortgages - related parties                                                    202,661               372,717
  Investment income                                                                          542,844               117,733
  Other                                                                                       66,648                34,764
                                                                                    -----------------     -----------------

Total                                                                                     11,450,770            11,476,486
                                                                                    -----------------     -----------------

Costs and Expenses:
  General and administrative                                                               2,033,085             2,031,474
  Interest on note payable and other                                                         227,952               849,400
  Interest on wrap mortgage debt                                                              54,586               155,988
  Amortization of  loan acquisition costs                                                      3,128                24,344
  Depreciation on non-rental property                                                         19,085                18,130
  Rental property:
    Operating expenses                                                                     3,491,948             3,108,535
    Interest on mortgages                                                                  2,222,652             1,889,461
    Real estate taxes                                                                        689,237               655,258
    Depreciation on real estate                                                              750,240               587,410
    Amortization of mortgage costs                                                           255,967               174,920
    Minority interest share of partnership income                                            420,975               359,901
                                                                                    -----------------     -----------------

Total                                                                                     10,168,855             9,854,821
                                                                                    -----------------     -----------------


Income before net gain from sales of properties, notes and securities                      1,281,915             1,621,665

Net gain from sales of properties, notes and securities (includes a provision
  for Federal and State taxes of $1,566,474 in 1999) (Notes 2 and 8)                       7,804,493               725,107
                                                                                    -----------------     -----------------

Net Income                                                                                $9,086,408            $2,346,772
                                                                                    =================     =================


Earnings per Common Share (basic and diluted) (Note 1-C):
  Income before net gain from sales of properties, notes and securities                        $0.35                 $0.45

  Net gain from sales of properties, notes and securities                                       2.16                  0.20
                                                                                    -----------------     -----------------

Net Income per Common Share                                                                    $2.51                 $0.65
                                                                                    =================     =================

Cash Distributions Declared per Common Share                                                   $0.64                 $0.63
                                                                                    =================     =================

Weighted Average Number of Shares Outstanding                                              3,616,119             3,589,889
                                                                                    =================     =================



See notes to consolidated financial statements.
</TABLE>



<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
<CAPTION>




                                                                                               THREE MONTHS ENDED
                                                                                                     SEPTEMBER 30,
                                                                                    ---------------------------------------

                                                                                          1999                  1998
                                                                                    -----------------     -----------------
Income:
<S>                                                                                       <C>                   <C>
  Rental                                                                                  $2,683,844            $2,434,424
  Interest on mortgages - sold properties                                                    786,947               950,661
  Interest on wrap mortgages                                                                                       318,685
  Interest on mortgages - related parties                                                     57,674               109,153
  Investment income                                                                          204,792                51,140
  Other                                                                                       13,180                 5,834
                                                                                    -----------------     -----------------

Total                                                                                      3,746,437             3,869,897
                                                                                    -----------------     -----------------

Costs and Expenses:
  General and administrative                                                                 667,735               630,373
  Interest on note payable and other                                                          12,862               280,744
  Interest on wrap mortgage debt                                                                                    50,621
  Amortization of  loan acquisition costs                                                                            8,115
  Depreciation on non-rental property                                                          6,362                 6,353
  Rental property:
    Operating expenses                                                                     1,200,908             1,064,665
    Interest on mortgages                                                                    739,013               708,341
    Real estate taxes                                                                        258,511               215,980
    Depreciation on real estate                                                              258,618               207,755
    Amortization of mortgage costs                                                            15,997                13,561
    Minority interest share of partnership income                                            163,526               145,722
                                                                                    -----------------     -----------------

Total                                                                                      3,323,532             3,332,230
                                                                                    -----------------     -----------------


Income before net gain from sales of properties, notes and securities                        422,905               537,667

Net gain from sales of properties, notes and securities                                        5,494                43,889
                                                                                    -----------------     -----------------

Net Income                                                                                  $428,399              $581,556
                                                                                    =================     =================


Earnings per Common Share (basic and diluted) (Note 1-C):
  Income before net gain from sales of properties, notes and securities                        $0.11                 $0.15

  Net gain from sales of properties, notes and securities                                       0.00                  0.01
                                                                                    -----------------     -----------------

Net Income per Common Share                                                                    $0.11                 $0.16
                                                                                    =================     =================

Cash Distributions Declared per Common Share                                                   $0.32                 $0.32
                                                                                    =================     =================



See notes to consolidated financial statements.
</TABLE>





<TABLE>
 PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<CAPTION>


                                                                                         NINE MONTHS ENDED SEPTEMBER  30,
                                                                                        ------------------------------------------

                                                                                             1999                       1998
                                                                                        ---------------            ---------------
<S>                                                                                      <C>                       <C>
 Cash Flows from Operating Activities:
   Cash received from rental properties                                                     $7,962,377                 $6,961,116
   Interest received                                                                         2,900,941                  3,434,791
   Miscellaneous income                                                                         58,740                     30,892
   Interest paid on rental property mortgages                                               (2,232,799)                (1,853,848)
   Interest paid on wrap mortgage debt                                                         (54,586)                  (155,988)
   Interest paid on note payable and other                                                    (201,234)                  (694,486)
   Cash disbursed for rental property operations                                            (3,508,487)                (4,436,811)
   Cash disbursed for general and administrative costs                                      (1,477,682)                (1,363,154)
                                                                                        ---------------            ---------------

 Net cash provided by operating activities                                                   3,447,270                  1,922,512
                                                                                        ---------------            ---------------


 Cash Flows from Investing Activities:
   Payments received on notes receivable                                                     2,141,403                  1,226,401
   Payments disbursed for investments in notes receivable                                                                 (60,000)
   Payments disbursed for deferred sales commission                                         (1,000,000)
   Proceeds from sale of notes receivable (net of a $400,000
    deposit on sale received in 1998)                                                       20,331,599
   Payments disbursed for additions and improvements                                          (756,906)                  (355,398)
   Proceeds from sale of property                                                               91,452                     74,550
   Purchase of property                                                                                                (6,549,637)
   Proceeds from sales of securities                                                                                       23,986
   Purchases of securities                                                                  (8,120,738)                  (853,812)
                                                                                        ---------------            ---------------

 Net cash provided by (used in) investing activities                                        12,686,810                 (6,493,910)
                                                                                        ---------------            ---------------

 Cash Flows from Financing Activities:
   Principal payments on mortgage debt:
     Properties owned                                                                         (308,674)                  (331,237)
     Wrap mortgage debt on sold properties                                                    (156,222)                  (358,946)
   Mortgage debt payment from proceeds of mortgage refinancing                              (3,120,190)               (10,788,825)
   Mortgage proceeds                                                                         3,195,500                 24,675,000
   Repayment of wrap mortgage debt                                                          (2,300,000)
   Mortgage refinancing repairs and replacement escrows                                                                  (558,730)
   Mortgage costs                                                                              (82,824)                  (574,612)
   Principal payments on note payable                                                      (10,395,361)                  (109,251)
   Cash distributions on common stock                                                       (2,315,307)                (2,263,079)
   Proceeds from dividend reinvestment and share purchase plan                                  80,832                    121,599
   Distributions to minority partners                                                         (812,676)                (3,909,108)
                                                                                        ---------------            ---------------

 Net cash (used in) provided by financing activities                                       (16,214,922)                 5,902,811
                                                                                        ---------------            ---------------


 Net (Decrease) Increase in Cash and Cash Equivalents                                          (80,842)                 1,331,413

 Cash and Cash Equivalents, Beginning of Period                                              1,764,465                    979,712
                                                                                        ---------------            ---------------

 Cash and Cash Equivalents, End of Period                                                   $1,683,623                 $2,311,125
                                                                                        ===============            ===============



 See notes to consolidated financial statements.
</TABLE>




<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<CAPTION>


                                                                                              NINE MONTHS ENDED SEPTEMBER  30,
                                                                                        --------------------------------------------

                                                                                             1999                        1998
                                                                                        ----------------            ----------------

<S>                                                                                     <C>                         <C>

Reconciliation of Net Income to Net Cash
  Provided by Operating Activities

Net Income                                                                                   $9,086,408                  $2,346,772
                                                                                        ----------------            ----------------


Adjustments  to  reconcile   net  income  to  net  cash  provided  by  operating
  activities:
    Depreciation and amortization                                                             1,028,420                     804,804
    Gain from sales of properties, notes and securities (includes a provision
      for Federal and State taxes of $1,566,474 in 1999)                                     (7,804,493)                   (725,107)
    Issuance of treasury stock                                                                   16,133                      15,660
    Amortization of discounts on notes and fees                                                (590,011)                   (820,690)
    Minority share of partnership income                                                        420,975                     359,901
Changes in assets and liabilities:
    Decrease (increase) in accounts receivable                                                  (74,174)                     70,575
    Increase in accounts payable and accrued liabilities                                        388,981                     283,203
    Decrease in deferred income                                                                 (61,283)                    (84,780)
    Decrease (increase) in prepaid expenses, deposits in escrow
      and deferred charges                                                                      454,663                    (644,656)
    Increase in security deposit restricted funds                                                                          (378,363)
    Increase in security deposit liabilities                                                      9,665                     124,196
    Distribution payable on common stock                                                        580,154                     575,915
    Other                                                                                        (8,168)                     (4,918)
                                                                                        ----------------            ----------------

Total adjustments                                                                            (5,639,138)                   (424,260)
                                                                                        ----------------            ----------------


Net cash provided by operating activities                                                    $3,447,270                  $1,922,512
                                                                                        ================            ================


Supplemental noncash disclosures:

    Property received in satisfaction of debt                                                   $39,858                     $11,569
                                                                                        ================            ================



See notes to consolidated financial statements.
</TABLE>







PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. General - Presidential Realty Corporation  ("Presidential" or the "Company"),
a Real Estate Investment Trust ("REIT"),  is engaged  principally in the holding
of notes and mortgages secured by real estate and in the ownership of income
producing real estate.  Presidential operates in a single business segment,
investments in real estate related assets.

B. Principles of Consolidation - The consolidated financial statements include
the  accounts  of   Presidential   Realty   Corporation  and  its  wholly  owned
subsidiaries.  Additionally,  the consolidated financial statements include 100%
of the account  balances of UTB Associates and PDL, Inc. and Associates  Limited
Co-Partnership ("Home Mortgage Partnership"), partnerships in which Presidential
or PDL, Inc., a wholly owned subsidiary of Presidential, is the General Partner.

All significant intercompany balances and transactions have been eliminated.

C. Net  Income  Per  Share - Basic net  income  per share  data is  computed  by
dividing the net income by the weighted  average number of shares of Class A and
Class B common stock outstanding during each period.  Basic net income per share
and diluted  income per share are the same for the nine months  ended  September
30, 1999 and 1998. The dilutive effect of stock options is calculated  using the
treasury stock method.

D. Basis of Presentation - The  accompanying  unaudited  consolidated  financial
statements have been prepared in accordance with generally  accepted  accounting
principles for interim financial information.  In the opinion of management, all
adjustments  (consisting of only normal recurring accruals) considered necessary
for a fair  presentation  of the results for the  respective  periods  have been
reflected.  These financial  statements and accompanying notes should be read in
conjunction with the Company's Form 10-K for the year ended December 31, 1998.

E. Management Estimates - In preparing the consolidated  financial statements in
conformity with generally accepted accounting principles, management is required
to make estimates and assumptions that affect the reported amounts of assets and
liabilities  and disclosure of contingent  assets and liabilities as of the date
of the  consolidated  balance  sheets  and the  reported  amounts  of income and
expense  for the  reporting  period.  Actual  results  could  differ  from those
estimates.

2. MORTGAGE PORTFOLIO

The Company's mortgage portfolio includes notes receivable - sold properties and
notes receivable - related parties.

Notes receivable - sold properties consist of:

(1) Long-term purchase money notes from sales of properties previously owned by
the Company or notes  purchased by the Company.  These purchase money notes have
varying interest rates with balloon payments due at maturity.

(2) Notes  receivable  from sales of cooperative  apartment  units.  These notes
generally  have market  interest  rates and the majority of these notes amortize
monthly with balloon payments due at maturity.


Notes receivable - related parties are all due from Ivy Properties, Ltd. or its
affiliates (collectively "Ivy") and consist of:

(1)  Purchase  money  notes  resulting  from sales of  property  or  partnership
interests to Ivy.

(2) Notes receivable  relating to loans made by the Company to Ivy in connection
with Ivy's cooperative conversion business.

During the nine months ended  September 30, 1999, the Company sold the Fairfield
Towers First Mortgage Note and  substantially all of the Fairfield Towers Second
Mortgage Note (the Fairfield  Towers Second Mortgage Note had been classified as
an impaired  loan).  The Company also sold the Grant House  wraparound  mortgage
note which had been  classified as an impaired  loan and the Company  received a
$317,662 prepayment on its Pinewood mortgage note. In addition,  the $13,300,000
Crown Tower and Madison  Towers  wraparound  mortgage  notes were  modified  and
extended.   In  connection  with  the  modification,   Presidential  received  a
$1,000,000 payment on the mortgage notes, paid a deferred  brokerage  commission
of $1,000,000 and repaid the $2,300,000 first mortgage debt on the properties.

Fairfield Towers

On February 22, 1999, Presidential  consummated the sale of its Fairfield Towers
First and Second  Mortgage Notes  (excluding a $4,000,000  portion of the Second
Mortgage Note, which it retained). At the date of the sale, the Fairfield Towers
First Mortgage Note had an outstanding  principal  balance of $17,002,695  and a
net carrying value of $13,957,284 after deducting a discount of $3,045,411.  The
Fairfield Towers Second Mortgage Note, which was classified as an impaired loan,
had an outstanding  principal balance of $14,206,895 and a net carrying value of
$1,311,908 after deducting discount and deferred gain of $12,894,987.

The aggregate purchase price for the First Mortgage Note and the Second Mortgage
Note  (excluding  the  $4,000,000   interest   retained  by  Presidential)   was
$21,350,000.

In  connection  with this  transaction,  the  $4,000,000  portion  of the Second
Mortgage Note retained by  Presidential  was modified to provide for interest at
the rate of 9.625% per annum for the first  three years and at the rate of 10.5%
per annum for the remaining seven years.  The $4,000,000  outstanding  principal
balance is due at maturity  on February  18,  2009.  To secure this  obligation,
Presidential   obtained   subordinate  security  interests  in  three  apartment
properties located in New Jersey as collateral for the Note.

As a result of this transaction, Presidential repaid the $10,195,442 outstanding
principal  balance of its note payable to Fleet Bank,  which had been secured by
Presidential's  interest in the First Mortgage Note.  Presidential  recognized a
gain on sale (before  taxes) of $7,617,214  and a net gain on sale of $6,050,740
after accrued taxes of $1,566,474.

Grant House

On January 28,  1999,  the Company  sold its equity  interest in the  $3,235,833
Grant House  wraparound  mortgage note, which had been classified as an impaired
loan. The Company's  underlying  second  mortgage in the  outstanding  principal
amount of $1,023,593 was sold to the purchaser for a purchase price of $500,000.
The nonrecourse  first mortgage which  Presidential's  second  mortgage  wrapped
around  was  assigned  to  the  purchaser.  As a  result  of  this  transaction,
Presidential  wrote off the  $2,212,240  balance on the first  mortgage  and the
related  $2,212,240  mortgage debt, $75,000 of the sales proceeds was applied to
accrued  and  unpaid  interest  and  the  Company  recognized  a gain on sale of
$425,000.

Pinewood

In January,  1999, the Company received a $317,662  principal  prepayment on its
$417,662  mortgage note which is secured by 316  apartment  units at Pinewood in
Des Moines, Iowa. As a result of the $317,662 prepayment, the Company recognized
a deferred gain on sale of $218,534.

Crown Tower and Madison Towers

The Crown Tower and Madison Towers wraparound  mortgage notes in the outstanding
principal  amount of  $13,300,000,  which were  secured  by the Crown  Tower and
Madison Towers  properties in New Haven,  Connecticut,  were modified in June of
1999. In connection  with the  modification,  the Company  repaid the $2,300,000
first mortgage debt on these  properties (wrap mortgage debt on sold properties)
and consolidated the $13,300,000 outstanding principal balance of the wraparound
mortgage notes into one  consolidated  note (the "New Haven note").  The Company
received  a  $1,000,000  principal  payment  on the New  Haven  note  and paid a
$1,000,000 deferred brokerage  commission (which had been deferred from the sale
of the New Haven  properties in 1984).  As a result of these  transactions,  the
Company received a $30,750 loan  modification fee and recognized a deferred gain
on sale of $1,000,000.

The New Haven note in the outstanding principal balance of $12,300,000 is due at
maturity on June 29, 2002.  The note  provides  for an interest  rate of 10% per
annum,  with a 1/2  percent  annual rate  increase  and  additional  interest of
$369,000 due at maturity.  The New Haven note is secured by a second mortgage on
the Encore  Apartments and commercial space located in New York, New York and by
a limited guarantee of $2,500,000 from one of the owners of the property.

At September 30, 1999, all of the notes in the Company's  mortgage portfolio are
current.


3. REAL ESTATE

   Real estate is comprised of the following:
                                                September 30,      December 31,
                                                    1999              1998
                                               -----------       -----------
Land                                           $ 5,461,173       $ 5,454,549
Buildings and leaseholds                        29,674,960        29,008,677
Furniture and equipment                            301,105           240,431
                                               -----------       -----------

Total real estate                              $35,437,238       $34,703,657
                                               ===========       ===========


4. MINORITY PARTNERS' INTEREST

Presidential  is the General  Partner of UTB  Associates and PDL, Inc., a wholly
owned  subsidiary  of  Presidential,  is the  General  Partner of Home  Mortgage
Partnership.  Presidential  has  a  66-2/3%  interest  in  UTB  Associates,  and
Presidential  and PDL,  Inc.  have an aggregate  26%  interest in Home  Mortgage
Partnership. As the General Partner of these partnerships, Presidential and PDL,
Inc.,  respectively,  exercise  effective  control  over the  business  of these
partnerships, and, accordingly,  Presidential consolidates these partnerships in
the accompanying financial statements.  The minority partners' interest reflects
the minority partners' equity in the partnerships.

The minority partners'  interest in the Home Mortgage  Partnership is a negative
interest  and  therefore,  minority  partners'  interest  is a net  asset on the
Company's financial  statements.  The negative basis for each partner's interest
in the Home Mortgage  Partnership  is due to the  refinancing of the mortgage on
the property and the distribution of the proceeds to the partners.  The mortgage
debt, which is included in the Company's financial statements,  is substantially
in excess of the net carrying  amount of the property,  but the  estimated  fair
value of the property is significantly greater than the mortgage debt. Thus, the
asset recorded as minority  partners'  interest  should be realized upon sale of
the property.

Minority partners' interest is comprised of the following:

                                                September 30,     December 31,
                                                    1999             1998
                                                ----------        ----------
Home Mortgage Partnership                       $8,137,077        $7,735,342
UTB Associates                                    (192,633)         (182,599)
                                                ----------        ----------

Total minority partners' interest               $7,944,444        $7,552,743
                                                ==========        ==========


5. SECURITIES AVAILABLE FOR SALE

The cost and fair value of securities available for sale are as follows:

                                                September 30,      December 31,
                                                  1999               1998
                                                ------------       ------------

Cost                                            $9,379,795         $1,259,057
Gross unrealized gains                               2,114             23,433
Gross unrealized losses                         (1,077,016)            (7,756)
                                                ----------         ----------

Fair value                                      $8,304,893         $1,274,734
                                                ==========         ==========

During  the  nine  months  ended  September  30,  1999,  there  were no sales of
securities  available for sale. During the nine months ended September 30, 1998,
the Company sold securities available for sale for gross proceeds of $23,986 and
a gross (and net) gain of $21,438.

6. MORTGAGE DEBT

In January,  1999, the Company  refinanced  the mortgage on its Cambridge  Green
property. The existing mortgage balance of $3,120,190 was paid from the proceeds
of the new $3,195,500  mortgage.  The new mortgage bears interest at the rate of
6.65% per annum, requires monthly payments of principal and interest of $20,358,
and matures on October 1, 2029.

As a result of the refinancing of this mortgage,  the Company wrote off $166,756
of  unamortized  mortgage  costs and paid a  prepayment  penalty  fee of $31,200
relating to the prior mortgage.

As described in Note 2 above,  during the nine months ended  September 30, 1999,
the Company sold the Grant House wraparound  mortgage and repaid the Crown Tower
and Madison Towers first mortgage debt (the wrap mortgage  debt). As a result of
these  transactions,  wrap mortgage debt was reduced from $4,668,462 at December
31, 1998 to $0 at September 30, 1999.

7. NOTE PAYABLE TO BANK

In connection with the Company's purchase of the Fairfield Towers First Mortgage
in 1996, the Company  obtained a bank loan from Fleet Bank, N.A. The note, which
was due to mature on October 30, 2001, was secured by a collateral assignment of
the Fairfield  Towers First Mortgage and was nonrecourse to Presidential  except
for a limited  guarantee.

Presidential sold the Fairfield Towers First Mortgage in February,  1999 and
repaid the outstanding  principal  balance of the note to Fleet Bank from the
proceeds of the sale. The outstanding  principal  balance at the date of the
sale was $10,195,442.

The Company has an unsecured $250,000 line of credit from a lending institution.
The interest  rate is 1% above the prime rate and the line of credit  expires in
February,  2000.  Presidential  pays a 1% annual fee for the line of credit.  At
September 30, 1999, no advances are outstanding on this line of credit.

8. INCOME TAXES

Presidential has elected to qualify as a Real Estate  Investment Trust under the
Internal Revenue Code. A REIT which  distributes at least 95% of its real estate
investment trust taxable income to its shareholders  each year by the end of the
following  year and which meets  certain other  conditions  will not be taxed on
that portion of its taxable income which is distributed to its shareholders.

Upon  filing the  Company's  income tax return for the year ended  December  31,
1998,  Presidential  applied its available 1998 stockholders'  distributions and
elected  to apply  (under  Section  858 of the  Internal  Revenue  Code) all but
approximately  $787,000 of its 1999  stockholders'  distributions  to reduce its
taxable income for 1998 to $4,831. As a result, Presidential paid Federal income
taxes of $725 for 1998.

Furthermore,   the  Company  had  taxable   income  (before   distributions   to
stockholders) for the nine months ended September 30, 1999 of approximately
$4,912,000 ($1.35 per share), which included approximately $4,279,000 ($1.18 per
share) of capital  gains.  This amount will be reduced by the $787,000 ($.22 per
share)  of its  1999  distributions  that  were not  utilized  in  reducing  the
Company's  1998 taxable income and by any eligible 2000  distributions  that the
Company may elect to utilize as a reduction of its 1999 taxable income.

Presidential  intends to  continue  to  maintain  its REIT  status.  The Company
intends to retain the  $3,560,000  capital  gain from the sale of the  Fairfield
Towers Mortgage Notes and,  accordingly,  has accrued $1,566,474 for Federal and
State income taxes.  Retaining this capital gain will not affect  Presidential's
REIT status.

Presidential  has, for tax purposes,  reported the gain from the sale of certain
of its properties using the installment method.

9. COMPREHENSIVE INCOME

The Company's  only element of other  comprehensive  income is the change in the
unrealized  gain (loss) on the Company's  securities  available for sale.  Thus,
comprehensive  income,  which  consists  of  net  income  plus  or  minus  other
comprehensive  income, for the nine months ended September 30, 1999 and 1998 was
$7,995,829 and $2,328,723, respectively.

10. TREASURY STOCK

In March,  1999,  three directors of the Company were each given 1,000 shares of
the Company's Class B common stock as partial payment for directors fees for the
1999  year.  Such  shares  had  been  held in  treasury  at an  average  cost of
approximately  $13.54 per share. The average market value for the previous month
of the Class B common stock, on which the fees were based,  was $7.17 per share.
As a result  of this  transaction,  the  Company  recorded  $21,510  in  prepaid
directors  fees (to be amortized  during 1999) based on the average market value
of the stock.  Treasury  stock was reduced by a cost of $40,618  and  additional
paid-in  capital was charged  $19,108 for the excess of the cost over the market
value.  In addition,  on March 24,  1999,  an executive of the Company was given
7,000 shares of the Company's  Class B common stock at a market price of $7.0625
per share (the closing price of the stock on the date of issuance).  The Company
recorded  a salary  expense  of  $49,438,  reduced  treasury  stock by a cost of
$94,780 and charged  additional  paid-in  capital  $45,342 for the excess of the
cost over the market value.

11. COMMITMENTS AND CONTINGENCIES

Presidential is not a party to any material legal  proceedings.  The Company may
be a party to  routine  litigation  incidental  to the  ordinary  course  of its
business.  In the opinion of  management,  all of the Company's  properties  are
adequately  covered by insurance in accordance with normal insurance  practices.
The Company is not aware of any  environmental  issues at any of its properties,
with the exception of the environmental  expenses incurred in prior years at its
Mapletree  Industrial  Center property in Palmer,  Massachusetts.  The presence,
with or without the Company's  knowledge,  of hazardous substances at any of its
properties could have an adverse effect on the Company's  operating  results and
financial condition.



PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998

Results of Operations

Financial Information for the nine months ended September 30, 1999 and 1998:
----------------------------------------------------------------------------
Revenue  decreased by $25,716  primarily as a result of decreases in interest on
mortgages-sold   properties,   interest  on  wrap   mortgages  and  interest  on
mortgages-related  parties.  These  decreases were offset by increases in rental
income, investment income and other income.

Interest on mortgages-sold properties decreased by $637,084 primarily due to the
sale of the Fairfield Towers First Mortgage in February of 1999, which decreased
interest  income by $1,012,796.  In addition,  the  amortization of discounts on
notes  receivable  decreased  by  $249,928.  Amortization  of discounts on notes
receivable decreases as notes mature or are sold. These decreases were partially
offset by the $235,278 of interest  received on the $4,000,000 unsold portion of
the Fairfield  Towers Second  Mortgage and interest of $393,258  received on the
modified New Haven note (see below).

Interest on wrap  mortgages  decreased by $432,008  primarily as a result of the
Company's  repayment in June, 1999 of the first mortgage debt on the Crown Tower
and Madison Towers  properties.  The Crown Tower and Madison  Towers  wraparound
mortgage notes were modified into one consolidated  note (the "New Haven note").
As a result of these transactions,  wrap mortgage interest decreased by $380,086
because  the  modified  New Haven note is not a  wraparound  mortgage  note.  In
addition,  the sale of the Grant House wraparound mortgage note in January, 1999
decreased interest by $51,922.

Interest on  mortgages-related  parties  decreased  by $170,056  primarily  as a
result of  decreases  in  interest  on the  Consolidated  Loans of  $94,375  and
decreases in interest on the Overlook loan of $68,371.  The decrease in interest
on the Overlook loan is a result of principal prepayments received in 1998.

Rental income  increased by $756,437  primarily as a result of increased  rental
income of $657,519 at the Sunwood  Apartments  property,  which was purchased in
August of 1998.  In addition,  rental  income  increased by $156,972 at the Home
Mortgage Plaza,  University Towers  Professional  Space and Continental  Gardens
properties.  These increases were offset by decreases of $72,776 at the Fairlawn
Gardens and Cambridge Green properties.

Investment  income  increased  by $425,111  primarily  as a result of  increased
dividend income on securities available for sale.

Other  income  increased  by  $31,884  primarily  as a result of a  $30,750  fee
received on the modification of the New Haven note.

Costs and expenses  increased by $314,034  primarily  due to increases in rental
property operating expenses, interest on mortgages, depreciation on real estate,
amortization  of mortgage costs,  and an increase in minority  interest share of
partnership  income.  These  increases  were  partially  offset by a decrease in
interest  expense on note  payable and a decrease  in interest on wrap  mortgage
debt.

Rental property  operating  expenses increased by $383,413 primarily as a result
of increased  operating  expenses at the Cambridge Green and Sunwood  Apartments
properties  of  $211,149  and  $208,939,   respectively.  These  increases  were
partially  offset  by a  $50,491  decrease  in  operating  expenses  at the Home
Mortgage Plaza property.

Interest on mortgages  increased by $333,191 as a result of a $128,335  increase
in mortgage  interest expense on the Home Mortgage Plaza property  mortgage.  In
April,  1998  the  Company  refinanced  the  $10,788,825   mortgage  for  a  new
$17,500,000  mortgage.  In addition,  the acquisition of the Sunwood  Apartments
property increased mortgage interest expense by $210,236 and the new mortgage on
the  Fairlawn  Gardens  property  which was obtained in March,  1998,  increased
mortgage interest expense by $34,129.  These increases were offset by a decrease
of $30,055 on the  Cambridge  Green  mortgage  which was  refinanced in January,
1999.

Depreciation  expense on real estate increased by $162,830 primarily as a result
of $111,686 of increased depreciation expense on the Sunwood Apartments property
and  increases in  depreciation  expense on all other  properties as a result of
additions and improvements.

Amortization of mortgage costs increased by $81,047 primarily as a result of the
write-off of unamortized  mortgage costs of $166,756 and the $31,200  prepayment
penalty fee  resulting  from the  refinancing  of the mortgage on the  Cambridge
Green  property  in January,  1999.  This  increase  was offset by a decrease of
$125,091 in  amortization of mortgage costs on the Home Mortgage Plaza property.
In 1998, the Company had written off $107,412 of  unamortized  mortgage costs in
connection  with the  refinancing  of the  mortgage on the Home  Mortgage  Plaza
property.

Minority  interest share of partnership  income increased by $61,074 as a result
of an increase in partnership income on the Home Mortgage Plaza property.

Interest on note payable and other  decreased by $621,448  primarily as a result
of the repayment of the note payable in February, 1999.

Interest  on wrap  mortgage  debt  decreased  by  $101,402  as a  result  of the
repayment  of the first  mortgage  debt on the Crown  Tower and  Madison  Towers
properties in June of 1999. In addition, in January,  1999, the Company sold the
Grant House wraparound  mortgage note and the related first mortgage debt on the
property was assigned to the purchaser.

Net gain from sales of  properties,  notes and  securities are sporadic (as they
depend on the timing of sales or the receipt of  installments  or prepayments on
purchase money notes). In 1999, the net gain from sales of properties, notes and
securities was $7,804,493 compared with $725,107 in 1998:

Gain from sales recognized at September 30,                  1999       1998
                                                             ----       ----
  Sales of mortgage notes:
    Fairfield Towers First and Second Mortgages
    (net of taxes of $1,566,474) sold in 1999            $6,050,740
    Grant House wraparound mortgage note sold in 1999       425,000
  Deferred gains recognized upon receipt of
    principal payments on notes:
    New Haven - $1,000,000 principal payment
      received in 1999                                    1,000,000
    Pinewood - $317,662 principal prepayment
         received in 1999                                   218,534
    Overlook                                                 16,081   $608,186
    Fairfield Towers Second Mortgage                         19,466     51,376
    Towne House                                                          3,672
  Sales of property:
    Sherwood House                                           74,672     40,435
  Sales of securities                                                   21,438
                                                         ----------   --------
                                                         $7,804,493   $725,107
                                                         ==========   ========

Financial Information for the three months ended September 30, 1999 and 1998:
----------------------------------------------------------------------------
Revenue decreased by $123,460  primarily as a result of decreases in interest on
mortgages-sold   properties,   interest  on  wrap   mortgages  and  interest  on
mortgages-related parties. These decreases were partially offset by increases in
rental income and investment income.

Interest on mortgages-sold properties decreased by $163,714 primarily due to the
sale of the Fairfield Towers First Mortgage in February of 1999, which decreased
interest income by $417,017. In addition,  the amortization of discount on notes
receivable  decreased by $161,840.  These decreases were partially offset by the
$98,389 of interest  received on the $4,000,000  unsold portion of the Fairfield
Towers Second Mortgage and interest of $314,333 received on the New Haven note.

Interest on wrap  mortgages  decreased by $318,685  primarily as a result of the
modification of the Crown Tower and Madison Towers wraparound  mortgage notes in
June of  1999  which  decreased  interest  on wrap  mortgages  by  $301,644.  In
addition,  the  sale of the  Grant  House  wraparound  mortgage  note  decreased
interest by $17,041.

Interest on mortgages-related parties decreased by $51,479 primarily as a result
of decreases in interest on the Consolidated Loans of $45,051.

Rental income  increased by $249,420  primarily as a result of increased  rental
income of $169,339 at the Sunwood Apartments  property and increases of $100,672
at a majority of the rental properties. These increases were offset by a $20,591
decrease in rental income at the Cambridge Green property.

Investment  income  increased  by $153,652  primarily  as a result of  increased
dividend income on securities available for sale.

Costs and expenses  decreased by $8,698  primarily  due to decreases in interest
expense on note  payable  and  interest  expense on wrap  mortgage  debt.  These
decreases  were  offset by  increases  in general and  administrative  expenses,
rental  property  operating  expenses,  interest on  mortgages,  real estate tax
expense,  depreciation  expense  on real  estate  and an  increase  in  minority
interest share of partnership income.

Interest  on note  payable  and other  decreased  by $267,882 as a result of the
repayment of the note payable in February, 1999.

Interest on wrap mortgage debt decreased by $50,621 as a result of the repayment
of the first mortgage debt on the Crown Tower and Madison Towers  properties and
the sale of the Grant House wraparound mortgage note.

General and  administrative  expenses increased by $37,362 primarily as a result
of increases in salary expense of $26,423 (of which $13,156 relates to increases
in executive  bonuses),  increases in professional and directors fees of $25,627
and an increase in executive  pension plan expense of $25,461.  These  increases
were  partially  offset by a  decrease  of  $44,524  in  franchise  tax  expense
resulting from the partnership  distribution  received in 1998 from the proceeds
of the mortgage on Home Mortgage Plaza.

Rental property  operating  expenses increased by $136,243 primarily as a result
of an increase in operating expenses at the Cambridge Green property of $94,757.
In addition,  operating expenses at the Sunwood Apartments and University Towers
Professional  Space properties  increased by $48,728 and $17,866,  respectively.
These increases were partially offset by decreases in operating  expenses at the
Home  Mortgage  Plaza and Fairlawn  Gardens  properties  of $19,863 and $13,235,
respectively.

Interest on mortgages increased by $30,672 primarily as a result of the addition
of the Sunwood Apartments  property which increased mortgage interest expense by
$51,524.  This increase was partially offset by a decrease in mortgage  interest
expense of $13,676 at the Cambridge Green property.

Real estate tax expense  increased by $42,531 primarily as a result of increases
in real estate tax  expenses  at the  Sunwood  Apartments  and  Cambridge  Green
properties of $34,187 and $13,661, respectively.

Depreciation  on real estate  increased by $50,863  primarily as a result of the
addition of the Sunwood Apartments property which increased depreciation expense
by  $28,414.  In  addition,  additions  and  improvements  to  other  properties
increased depreciation expense by $22,449.

Minority  interest share of partnership  income increased by $17,804 as a result
of a $19,266 increase in partnership income on the Home Mortgage Plaza property.

Net gain from sales of  properties,  notes and  securities are sporadic (as they
depend on the timing of sales or the receipt of  installments  or prepayments on
purchase money notes). In 1999, the net gain from sales of properties, notes and
securities was $5,494 compared with $43,889 in 1998:

Gain from sales recognized at September 30,                   1999      1998
                                                              ----      ----
  Deferred gains recognized upon receipt of
    principal payments on notes:
    Overlook                                                 $5,494    $ 4,973
    Fairfield Towers Second Mortgage                                    17,478
  Sales of securities                                                   21,438
                                                            -------    -------
                                                             $5,494    $43,889
                                                            =======    =======
Balance Sheet

Net mortgage  portfolio  decreased by  $15,309,339  primarily as a result of the
sale of the Fairfield  Towers First and Second Mortgage  Notes,  the sale of the
Grant House wraparound  mortgage note and the principal  prepayment  received on
the Pinewood note receivable.  The sale of the Fairfield Towers First and Second
Mortgages resulted in a net decrease of $12,961,511, the sale of the Grant House
wraparound  mortgage  note  resulted  in a net  decrease of  $2,224,287  and the
principal  prepayment  of $317,662  received  on the  Pinewood  note  receivable
resulted  in a net  decrease of $99,128  after  recognizing  a deferred  gain of
$218,534.  In addition,  although the effect on net mortgage  portfolio is zero,
the Company  received a $1,000,000  principal  payment on the New Haven note and
recognized a deferred gain on sale of $1,000,000.

Prepaid expenses and deposits in escrow decreased by $346,627 primarily due to a
$483,981  decrease  in  mortgagee  replacement  reserve  deposits as a result of
reimbursements  for  replacements  at  rental  properties.   This  decrease  was
partially  offset by  increases of $137,354 in prepaid  expenses  and  mortgagee
escrow deposits.

Securities  available for sale  increased by $7,030,159 as a result of purchases
of  $8,120,738  in  marketable  equity  securities,  primarily  interest-bearing
corporate preferred stocks,  offset by a $1,090,579 decline in the fair value of
securities available for sale.

Other assets decreased by $374,423  primarily as a result of a $286,116 decrease
in  mortgage  and loan  acquisition  costs and a $102,659  decrease  in deferred
charges. Mortgage costs decreased as a result of the refinancing of the mortgage
on the Cambridge  Green property and the write-off of the  unamortized  costs of
the prior  mortgage.  In addition,  the sale of the  Fairfield  Towers First and
Second Mortgage Notes resulted in the write-off of unamortized  loan acquisition
costs.  Deferred  charges  decreased  as a result of the  write-off  of deferred
expenses  incurred in connection with the sale of the Fairfield Towers First and
Second Mortgage Notes.

Wrap mortgage debt on sold properties  decreased by $4,668,462  primarily due to
the  repayment of the  $2,300,000  Crown Tower and Madison  Towers wrap mortgage
debt by the  Company in June,  1999 and the sale of the Grant  House  wraparound
mortgage note in January, 1999.

Note payable to bank decreased by $10,395,361  primarily as a result of the sale
of the Fairfield Towers First and Second Mortgages.  The note payable, which had
been secured by  Presidential's  interest in the First Mortgage Note, was repaid
from  the  proceeds  of the  sale  of the  Fairfield  Towers  First  and  Second
Mortgages.

Accrued  liabilities  decreased by $871,176 primarily as a result of the payment
of a $1,000,000 deferred brokerage commission,  which arose from the sale of the
New Haven properties in 1984.

Net  unrealized  gain (loss) on securities  available for sale decreased by
$1,090,579 as a result of the decrease in the fair value of securities available
for sale.

Treasury stock  decreased by $135,139.  In March,  1999,  three directors of the
Company  were each given 1,000 shares of the  Company's  Class B common stock as
partial payment for 1999 directors fees. In addition,  an officer of the Company
was given  7,000  shares of the  Company's  Class B common  stock as  additional
compensation. Such shares had been held in treasury at an average cost of $13.54
per share.

Year 2000 Compliance

The Company has completed its assessments of its information  technology systems
("IT")  and  its  non-information  technology  systems  ("NIT")  for  Year  2000
compliance.  All  Year  2000  sensitive  systems  have  been  updated  and  date
sensitivity  testing has been  completd.  Requests  have been sent and responses
have  been  received  for  Year  2000  compliance  confirmations  from  tenants,
mortgagors,  third party vendors and the Company's property  management company.
All  responses  that have been  received by the Company have  verified Year 2000
compliance or completion of compliance in a timely manner.

At September 30, 1999, there were no additional costs to be incurred in relation
to the Year 2000  compliance.  At December 31, 1998, the Company had capitalized
$32,393 for  replacement of equipment and had expensed  $4,789 for the upgrading
of its systems.  The costs to complete date sensitivity  testing and assessments
of third party vendors were minimal.

The Company has tested its IT systems  and all systems are  operational  and are
Year 2000 compliant.  The responses that the Company has received  indicate that
the financial  institutions,  utility  companies and major suppliers of services
which are utilized by the Company are or will be Year 2000  compliant.  However,
the Company's business operations could be affected if these third party vendors
fail to become Year 2000 compliant.  The effect of non-compliance by these third
party  vendors  is not  determinable  at this time.  If a  supplier  of goods or
services  were to fail to become Year 2000  compliant,  the Company would obtain
these goods or services  from another  source.  However,  the failure of utility
companies  (electric,  gas,  water and  telephone) to become Year 2000 compliant
could have an adverse  effect on the  operations  of the  Company's  properties.
These  services  are not  readily  available  from other  sources  but should be
available in some form. The Company does not anticipate that the Year 2000 issue
will have an adverse  effect on the ability of its mortgagors or tenants to make
payments due to the Company in a timely fashion.

As a result of the  Company's  evaluation  of its systems and third party vendor
systems, no formal contingency plan is required.

Forward-Looking Statements

Certain   statements  made  in  this  report  may  constitute   "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such
forward-looking  statements include statements  regarding the intent,  belief or
current  expectations  of the Company and its  management  and involve known and
unknown  risks,  uncertainties  and other  factors  which  may cause the  actual
results,  performance or achievements of the Company to be materially  different
from any future  results,  performance or  achievements  expressed or implied by
such forward-looking  statements.  Such factors include, among other things, the
following:  general  economic and business  conditions,  which will, among other
things affect the demand for apartments or commercial  space,  availability  and
creditworthiness  of  prospective  tenants,   lease  rents  and  the  terms  and
availability of financing; adverse changes in the real estate markets including,
among  other  things,  competition  with other  companies;  risks of real estate
development  and  acquisition;   governmental   actions  and  initiatives;   and
environment/safety requirements.

Liquidity and Capital Resources

Management  believes  that the  Company  has  sufficient  liquidity  and capital
resources  to  carry  on its  existing  business  and,  barring  any  unforeseen
circumstances, to pay the dividends required to maintain REIT status in the
foreseeable  future.  The  Company is seeking  to expand its  portfolio  of real
estate equities and plans to utilize for this purpose a portion of its available
funds,  funds received from sales of securities  and  additional  funds that the
Company may receive from balloon  payments due on the Company's notes receivable
as they mature,  as well as funds that may be available  from external  sources.
However, the Company's plans to expand its portfolio of real estate equities may
be  adversely  affected  by  limitations  on its  ability  to  obtain  funds for
investment  on  satisfactory  terms from external  sources.  Except as discussed
herein,  management is not aware of any other  trends,  events,  commitments  or
uncertainties that will have a significant effect on liquidity.

Presidential obtains funds for working capital and investment from its
available cash and cash  equivalents,  from securities  available for sale, from
operating  activities,  from  refinancing  of mortgage  loans on its real estate
equities,  and from the sales of or  repayments on its mortgage  portfolio.  The
Company  also has at its  disposal a $250,000  unsecured  line of credit  from a
lending institution.

At September 30, 1999, Presidential had $1,683,623 in available cash and cash
equivalents,  a decrease of $80,842  from the  $1,764,465  at December 31, 1998.
This  decrease in cash and cash  equivalents  was due to cash used in  financing
activities of  $16,214,922,  offset by cash provided by operating  activities of
$3,447,270 and investing activities of $12,686,810.

Operating Activities

Presidential's  principal  source  of cash  from  operating  activities  is from
interest  on its  mortgage  portfolio,  which  was  $2,645,121  in 1999,  net of
interest  payments on wrap  mortgage debt and note  payable.  In 1999,  net cash
received  from  rental  property  operations  was  $1,852,415,  which  is net of
distributions  from  partnership  operations  to  minority  partners  but before
additions and improvements and mortgage amortization.




Investing Activities

Presidential  holds a portfolio  of mortgage  notes  receivable,  which  consist
primarily of notes arising from sales of real properties previously owned by the
Company.  Some  of  these  notes  wrap  around  underlying  mortgage  debt  (the
"Underlying  Debt") which is paid by Presidential  only out of funds received on
its mortgage portfolio relating to the Underlying Debt. During 1999, the Company
received  principal payments of $1,985,181 on its mortgage portfolio (net of any
principal  payments  attributable to the Underlying  Debt), of which  $1,880,241
represented  prepayments,  which are  sporadic  and  cannot be relied  upon as a
regular source of liquidity.

On February 22, 1999, Presidential  consummated the sale of its Fairfield Towers
First and Second  Mortgage Notes  (excluding a $4,000,000  portion of the Second
Mortgage Note, which it retained).

The First Mortgage Note, which had an outstanding  principal balance at the date
of sale of  $17,002,695,  was  acquired by  Presidential  in October,  1996 at a
discount of  $3,500,000.  The Second  Mortgage  Note,  which had an  outstanding
principal  balance  at  the  date  of  sale  of  $14,206,895,  was  obtained  by
Presidential when it sold the Fairfield Towers apartment property in 1984.

The aggregate purchase price for the First Mortgage Note and the Second Mortgage
Note  (excluding  the  $4,000,000   interest   retained  by  Presidential)   was
$21,350,000. In connection with this transaction,  the $4,000,000 portion of the
Second  Mortgage  Note  retained  by  Presidential  was  modified to provide for
interest payments at the rate of 9.625% ($385,000) per annum for the first three
years and at 10.5%  ($420,000)  per annum for the  remaining  seven  years.  The
outstanding  principal  balance of  $4,000,000  is due at maturity  in 2009.  To
secure this obligation,  Presidential obtained subordinate security interests in
three apartment properties located in New Jersey as collateral for the Note.

Presidential  repaid the $10,195,442  outstanding  principal balance of its bank
note  payable,  which had been secured by  Presidential's  interest in the First
Mortgage  Note.  After  payment  of the bank loan and  expenses  related  to the
transaction,  but  before  payment  of  any  income  tax on  the  capital  gain,
Presidential  retained  approximately  $10,111,000  from the sale.  Presidential
expects to pay  approximately  $1,567,000 of taxes on the retained  capital gain
and  invest  the  balance  of  approximately   $8,544,000  in  rental  apartment
properties. Presidential recognized a gain on sale of $7,617,214 (before accrued
taxes of $1,566,474).

In  January,  1999,  the  Company  sold its  equity  portion  in the  $3,235,833
wraparound  mortgage note secured by the Grant House apartment  building located
in White Plains,  New York.  Presidential  assigned the  $2,212,240  nonrecourse
first  mortgage note to the purchaser and received  $500,000 for the sale of its
$1,023,593  equity portion of the wraparound  mortgage note. As a result of this
transaction,  the Company wrote off the  $2,212,240  outstanding  balance on the
first mortgage and the related  $2,212,240  mortgage debt, and recognized a gain
on sale of $425,000.

In June,  1999, the Company modified its $13,300,000  wraparound  mortgage notes
secured  by the  Crown  Tower  and  Madison  Towers  properties  in  New  Haven,
Connecticut.  In  connection  with the  modification,  the  Company  repaid  the
$2,300,000  first mortgage debt on these  properties (wrap mortgage debt on sold
properties) and consolidated the $13,300,000  outstanding  principal  balance of
the wraparound  mortgage  notes into the New Haven note. The Company  received a
$1,000,000  principal  payment  on the New  Haven  note  and  paid a  $1,000,000
deferred brokerage commission (which had been deferred from the original sale of
the New Haven properties). In connection with the modification Presidential also
received a fee of $30,750.

The note  matures on June 29,  2002,  provides  for an interest  rate of 10% per
annum with a 1/2  percent  rate  increase  annually  and a  $369,000  payment of
additional  interest due at maturity.  The New Haven note is secured by a second
mortgage on the Encore  Apartments and commercial space located in New York, New
York and by a limited  guarantee  of  $2,500,000  from one of the  owners of the
property.

During 1999, the Company invested  $756,906 in additions and improvements to its
properties.

The Company  also holds a portfolio of  marketable  equitable  securities  which
increased by  $7,030,159,  primarily as a result of the  $8,120,738  purchase of
interest-bearing  corporate  preferred stocks,  offset by a decrease in the fair
value of securities of $1,090,579.

Financing Activities

The Company's indebtedness at September 30, 1999, consisted of $39,494,667 of
mortgages.  The mortgage  debt,  which is secured by individual  properties,  is
nonrecourse  to  the  Company  with  the  exception  of the  $262,533  Mapletree
Industrial Center mortgage,  which is secured by the property and a guarantee of
repayment by Presidential.  In addition, some of the Company's mortgages provide
for  personal   liability  for  damages   resulting   from   specified  acts  or
circumstances,  such as for  environmental  liabilities  and  fraud.  Generally,
mortgage debt  repayment is serviced  with cash flow from the  operations of the
individual  properties.  During  1999,  the Company  made  $308,674 of principal
payments on mortgage debt on properties which it owns.

In January,  1999,  Presidential  refinanced the mortgage on its Cambridge Green
property. The existing $3,120,190 mortgage was paid from the proceeds of the new
$3,195,500  mortgage.  The new mortgage  bears interest at the rate of 6.65% per
annum,  requires  monthly  payments of principal  and  interest of $20,358,  and
matures on October 1, 2029.

The mortgages on the Company's properties are self-liquidating at fixed rates of
interest with the exception of the mortgages on Fairlawn Gardens,  Home Mortgage
Plaza, Building Industries Center, Sunwood Apartments and Continental Gardens.

During 1999,  Presidential  declared cash distributions of $2,315,307 (including
$580,154  payable  in the  fourth  quarter)  to its  shareholders  and  received
proceeds from its dividend reinvestment and share purchase plan of $80,832.








PART II - OTHER INFORMATION



Item 6.  Exhibits and Reports on Form 8-K.

(a)   Exhibit 27.  Financial Data Schedule.

(b) No reports on Form 8-K were filed  during the quarter  ended  September  30,
1999.


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.


PRESIDENTIAL REALTY CORPORATION
       (Registrant)


DATE:  November 8, 1999           By: /s/ Jeffrey F. Joseph
                                      ---------------------
                                      Jeffrey F. Joseph
                                      President



DATE:  November 8, 1999           By: /s/ Elizabeth Delgado
                                      ---------------------
                                      Elizabeth Delgado
                                      Treasurer