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   March 31, 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 May 7, 1999 was 478,940  shares of Class A common
and 3,138,480 shares of Class B common.













              PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES




                              Index to Form 10-Q

                          For the Three Months Ended

                                March 31, 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                                                                                   March 31,                 December 31,
                                                                                           1999                       1998
                                                                                     ------------------         ------------------
<S>                                                                                  <C>                        <C>

  Mortgage portfolio (Note 2):
    Sold properties, accrual                                                               $29,839,603                $43,440,675
    Related parties, accrual                                                                 1,648,314                  1,698,982
    Sold properties, impaired                                                                                          17,589,027
                                                                                     ------------------         ------------------

    Total mortgage portfolio                                                                31,487,917                 62,728,684
                                                                                     ------------------         ------------------

  Less discounts:
    Sold properties, accrual                                                                 2,232,641                  4,049,630
    Related parties, accrual                                                                   141,467                    149,685
    Sold properties, impaired                                                                                           7,597,138
                                                                                     ------------------         ------------------

    Total discounts                                                                          2,374,108                 11,796,453
                                                                                     ------------------         ------------------

  Less deferred gains:
    Sold properties, accrual                                                                12,320,373                 12,538,907
    Related parties, accrual                                                                   924,829                    930,057
    Sold properties, impaired                                                                                           6,362,838
                                                                                     ------------------         ------------------

    Total deferred gains                                                                    13,245,202                 19,831,802
                                                                                     ------------------         ------------------

  Net mortgage portfolio (of which $1,286,372 in 1999
    and $931,393 in 1998 are due within one year)                                           15,868,607                 31,100,429
                                                                                     ------------------         ------------------


  Real estate (Note 3)                                                                      34,968,594                 34,703,657
    Less: accumulated depreciation                                                           7,475,080                  7,231,639
                                                                                     ------------------         ------------------

  Net real estate                                                                           27,493,514                 27,472,018
                                                                                     ------------------         ------------------


  Minority partners' interest (Note 4)                                                       7,694,760                  7,552,743
  Prepaid expenses and deposits in escrow                                                    2,070,293                  2,130,214
  Other receivables (net of valuation allowance of
    $124,418 in 1999 and $120,102 in 1998)                                                     485,847                    623,521
  Securities available for sale (Note 5)                                                     4,330,053                  1,274,734
  Cash and cash equivalents                                                                  9,531,879                  1,764,465
  Other assets                                                                               1,634,224                  1,988,121
                                                                                     ------------------         ------------------

  Total Assets                                                                             $69,109,177                $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

                                                                                         March 31,                  December 31,
                                                                                           1999                         1998
                                                                                    ------------------           ------------------
<S>                                                                                 <C>                          <C>

      Liabilities:
        Mortgage debt (Note 6):
          Properties owned                                                                 $39,697,741                  $39,728,031
          Wrap mortgage debt on sold properties                                              2,357,499                    4,668,462
                                                                                    ------------------           ------------------

        Total (of which $776,690 in 1999 and $905,305
          in 1998 are due within one year)                                                  42,055,240                   44,396,493

        Note payable to bank (Note 7)                                                                                    10,395,361
        Executive pension plan liability                                                     1,492,775                    1,496,357
        Accrued liabilities                                                                  2,642,730                    2,630,564
        Accrued taxes payable (Note 8)                                                       1,566,474
        Accrued postretirement costs                                                           559,639                      562,167
        Deferred income                                                                        250,498                      565,713
        Accounts payable                                                                       446,771                      235,807
        Other liabilities                                                                      773,320                      772,949
                                                                                    ------------------           ------------------

      Total Liabilities                                                                     49,787,447                   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                   March 31, 1999            December 31, 1998                313,971                      313,609
           -----------          ----------------------    ---------------------
          Authorized:                   10,000,000                   10,000,000
          Issued:                        3,139,711                    3,136,092
          Treasury:                          1,258                       11,224

        Additional paid-in capital                                                           2,132,525                    2,172,368
        Retained earnings                                                                   16,893,403                   10,453,253
        Net unrealized gain (loss) on securities available for sale (Notes 5 and 9)            (49,235)                      15,677
        Class B, treasury stock (at cost) (Note 10)                                            (16,828)                    (151,967)
                                                                                     -----------------           ------------------

      Total Stockholders' Equity                                                            19,321,730                   12,850,834
                                                                                     -----------------           ------------------

      Total Liabilities and Stockholders' Equity                                           $69,109,177                  $73,906,245
                                                                                    ==================           ==================








     See notes to consolidated financial statements.
</TABLE>



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





                                                                                              THREE MONTHS ENDED MARCH 31,
                                                                                         ---------------------------------------

                                                                                             1999                     1998
                                                                                         --------------           --------------
Income:
<S>                                                                                         <C>                      <C>       
  Rental                                                                                    $2,603,761               $2,367,466
  Interest on mortgages - sold properties                                                      841,053                  943,601
  Interest on wrap mortgages                                                                   299,387                  321,432
  Interest on mortgages - related parties                                                       55,452                  165,000
  Investment income                                                                            111,407                   28,813
  Other                                                                                         10,698                    3,850
                                                                                         --------------           --------------

Total                                                                                        3,921,758                3,830,162
                                                                                         --------------           --------------

Costs and Expenses:
  General and administrative                                                                   666,867                  662,425
  Interest on note payable and other                                                           185,849                  285,031
  Interest on wrap mortgage debt                                                                31,322                   53,367
  Amortization of  loan acquisition costs                                                        3,128                    8,115
  Depreciation on non-rental property                                                            6,255                    5,203
  Rental property:
    Operating expenses                                                                       1,168,759                1,037,962
    Interest on mortgages                                                                      746,305                  528,137
    Real estate taxes                                                                          221,575                  219,637
    Depreciation on real estate                                                                243,441                  188,285
    Amortization of mortgage costs                                                             221,771                   37,292
    Minority interest share of partnership income                                              128,653                  172,003
                                                                                         --------------           --------------

Total                                                                                        3,623,925                3,197,457
                                                                                         --------------           --------------


Income before net gain from sales of properties, notes and securities                          297,833                  632,705

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)                         6,718,968                   63,569
                                                                                         --------------           --------------

Net Income                                                                                  $7,016,801                 $696,274
                                                                                         ==============           ==============


Earnings per Common Share (basic and diluted) (Note 1-C):
  Income before net gain from sales of properties, notes and securities                          $0.08                    $0.18

  Net gain from sales of properties, notes and securities                                         1.86                     0.01
                                                                                         --------------           --------------

Net Income per Common Share                                                                      $1.94                    $0.19
                                                                                         ==============           ==============

Cash Distributions per Common Share                                                              $0.16                    $0.15
                                                                                         ==============           ==============

Weighted Average Number of Shares Outstanding                                                3,608,628                3,582,623
                                                                                         ==============           ==============





See notes to consolidated financial statements.
</TABLE>





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


                                                                                              THREE MONTHS ENDED MARCH 31,
                                                                                      --------------------------------------------

                                                                                          1999                        1998
                                                                                      ----------------            ----------------
Cash Flows from Operating Activities:
<S>                                                                                   <C>                         <C>       
  Cash received from rental properties                                                      $2,674,090                  $2,547,560
  Interest received                                                                          1,119,661                   1,190,351
  Miscellaneous income                                                                          10,074                       3,226
  Interest paid on rental property mortgages                                                  (751,264)                   (529,576)
  Interest paid on wrap mortgage debt                                                          (31,322)                    (53,367)
  Interest paid on note payable                                                               (199,983)                   (228,775)
  Cash disbursed for rental property operations                                             (1,052,703)                 (1,456,900)
  Cash disbursed for general and administrative costs                                         (392,859)                   (767,873)
                                                                                       ----------------            ----------------

Net cash provided by operating activities                                                    1,375,694                     704,646
                                                                                       ----------------            ----------------


Cash Flows from Investing Activities:
  Payments received on notes receivable                                                        790,446                     201,097
  Payments disbursed for investments in notes receivable                                                                   (60,000)
  Proceeds from sale of notes receivable (net of a $400,000
    deposit on sale received in 1998)                                                       20,331,599
  Deposit received on contract of sale of property                                              87,300
  Payments disbursed for additions and improvements                                           (267,844)                   (113,249)
  Proceeds from sale  of property                                                                                           74,550
  Purchases of securities                                                                   (3,120,231)                    (41,625)
                                                                                       ----------------            ----------------

Net cash provided by investing activities                                                   17,821,270                      60,773
                                                                                       ----------------            ----------------

Cash Flows from Financing Activities:
  Principal payments on mortgage debt:
    Properties owned                                                                          (105,600)                   (158,382)
    Wrap mortgage debt on sold properties                                                      (98,723)                   (118,577)
  Mortgage debt payment from proceeds of mortgage refinancing                               (3,120,190)
  Mortgage proceeds                                                                          3,195,500                   2,300,000
  Mortgage costs                                                                               (82,824)                   (142,527)
  Principal payments on note payable                                                       (10,395,361)                    (35,671)
  Cash distributions on common stock                                                          (576,651)                   (537,175)
  Proceeds from dividend reinvestment and share purchase plan                                   24,969                      49,043
  Distributions to minority partners                                                          (270,670)                    (70,502)
                                                                                       ----------------            ----------------

Net cash provided by (used in) financing activities                                        (11,429,550)                  1,286,209
                                                                                       ----------------            ----------------


Net Increase in Cash and Cash Equivalents                                                    7,767,414                   2,051,628

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

Cash and Cash Equivalents, End of Period                                                    $9,531,879                  $3,031,340
                                                                                       ================            ================



See notes to consolidated financial statements.
</TABLE>




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


                                                                                          THREE MONTHS ENDED MARCH 31,
                                                                                 -------------------------------------------------

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

<S>                                                                                  <C>                         <C>
Reconciliation of Net Income to Net Cash
  Provided by Operating Activities

Net Income                                                                                $7,016,801                    $696,274
                                                                                     ----------------            ----------------


Adjustments  to  reconcile   net  income  to  net  cash  
provided  by  operating   activities:
    Depreciation and amortization                                                             474,595                     238,895
    Gain from sales of properties, notes and securities (includes a provision
      for Federal and State taxes of $1,566,474 in 1999)                                   (6,718,968)                    (63,569)
    Issuance of treasury stock                                                                  5,378                      20,880
    Amortization of discounts on notes and fees                                              (296,829)                   (273,187)
    Minority share of partnership income                                                      128,653                     172,003
Changes in assets and liabilities:
    Decrease (increase) in accounts receivable                                                137,674                      (4,506)
    Increase (decrease) in accounts payable and accrued liabilities                           456,109                     (79,987)
    Increase (decrease) in deferred income                                                     (2,515)                     73,207
    Decrease (increase) in prepaid expenses, deposits in escrow
      and deferred charges                                                                    173,077                     (80,191)
    Increase in security deposit liabilities                                                    2,601                       6,495
    Other                                                                                        (882)                     (1,668)
                                                                                      ----------------            ----------------

Total adjustments                                                                          (5,641,107)                      8,372
                                                                                      ----------------            ----------------


Net cash provided by operating activities                                                  $1,375,694                    $704,646
                                                                                      ================            ================


Supplemental noncash disclosures:

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










See notes to consolidated financial statements.
</TABLE>










PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 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 three  months ended March 31,
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 quarter ended March 31, 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.  In addition,  the Company
received a $317,662 prepayment on its Pinewood mortgage note.

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.

At March 31, 1999,  all of the notes in the  Company's  mortgage  portfolio  are
current with the exception of the Mark Terrace  mortgage note,  which is secured
by 172 unsold cooperative apartment units at Mark Terrace Apartments, Bronx, New
York. The annual interest on the Mark Terrace note is due in advance in February
of each year.  The 1999  interest  payment of $115,774 has not been received and
the  Company  has  accrued  interest  income  of  $28,943  for the  period.  The
outstanding  principal  balance of the note is  $2,244,000  and the net carrying
value of the note is $1,479,941  after deducting a discount and deferred gain of
$764,059.  The Company  anticipates  that the annual  interest  payment  will be
received in the second quarter of 1999.

3. REAL ESTATE

   Real estate is comprised of the following:

                                               March 31,        December 31, 
                                                 1999              1998    
                                              -----------       ------------

Land                                          $ 5,454,549       $ 5,454,549
Buildings and leaseholds                       29,261,542        29,008,677
Furniture and equipment                           252,503           240,431
                                              -----------       -----------

Total real estate                             $34,968,594       $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:

                                                  March 31,     December 31,
                                                    1999           1998     
                                                  ----------    ---------- 
Home Mortgage Partnership                         $7,883,107    $7,735,342
UTB Associates                                      (188,347)     (182,599)
                                                  ----------    ----------

Total minority partners' interest                 $7,694,760    $7,552,743
                                                  ==========    ==========

5. SECURITIES AVAILABLE FOR SALE

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

                                                  March 31,      December 31,
                                                    1999             1998    
                                                ----------       ---------- 
Cost                                            $4,379,288       $1,259,057
Gross unrealized gains                               9,318           23,433
Gross unrealized losses                            (58,553)          (7,756)
                                                ----------       ----------

Fair value                                      $4,330,053       $1,274,734
                                                ==========       ==========

During the three  months  ended March 31, 1999 and 1998,  there were no sales of
securities available for sale.

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.

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 March 31,  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.

For the year ended  December 31, 1998,  the Company had taxable  income  (before
distributions to  stockholders)  of  approximately  $1,738,000 ($.48 per share),
which included  approximately  $777,000 ($.21 per share) of capital gains.  This
amount will be reduced by  approximately  $199,000  ($.06 per share) of the 1998
distributions  that were not  utilized in reducing  the  Company's  1997 taxable
income and by any  eligible  1999  distributions  that the  Company may elect to
utilize as a reduction of its 1998 taxable income.

As previously stated, in order to retain REIT status, Presidential is required
to distribute 95% of its REIT taxable income (exclusive of capital gains).  As
of March 31, 1999,  Presidential  has  distributed all but $.04 per share of the
required  95%  of its  1998  REIT  taxable  income.  In  addition,  although  no
assurances can be given, it is the Company's present intention to distribute all
of its 1998 taxable income and therefore, no provision for income taxes was made
at December 31, 1998.

Furthermore,   the  Company  had  taxable   income  (before   distributions   to
stockholders)  for the  three  months  ended  March  31,  1999 of  approximately
$3,398,000 ($.94 per share), which included  approximately  $3,497,000 ($.97 per
share) of capital gains. This amount will be reduced by 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 three  months  ended March 31, 1999 and 1998 was
$6,951,889 and $704,528, 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 THREE MONTHS ENDED MARCH 31, 1999 AND 1998

Results of Operations

Financial Information for the three months ended March 31, 1999 and 1998:
----------------------------------------------------------------------------

Revenue increased by $91,596 primarily as a result of increases in rental income
and investment  income.  These increases were offset by decreases in interest on
mortgages-sold properties and interest on mortgages-related parties.

Rental  income  increased by $236,295  primarily as a result of rental income of
$237,628 at the Sunwood Apartments property, which was purchased in August
of 1998.

Investment  income  increased  by  $82,594  primarily  as a result of  increased
dividend income on securities available for sale.

Interest on mortgages-sold properties decreased by $102,548 primarily due to the
sale of the Fairfield Towers First Mortgage in February of 1999, which decreased
interest income by $183,296.  This decrease was partially  offset by the $39,569
of interest  received on the $4,000,000  unsold portion of the Fairfield  Towers
Second Mortgage and a $30,000  interest payment received on the Fairfield Towers
Second Mortgage prior to the sale.

Interest on  mortgages-related  parties  decreased  by $109,548  primarily  as a
result of  decreases  in  interest  on the  Consolidated  Loans of  $52,282  and
decreases in interest on the Overlook loan of $56,988.  The decrease in interest
on the Overlook loan is a result of principal prepayments received in 1998.

Costs and expenses  increased by $426,468  primarily  due to increases in rental
property operating expenses,  interest on mortgages and amortization of mortgage
costs.  These increases were partially  offset by a decrease in interest expense
on note payable and a decrease in minority interest share of partnership income.

Rental property  operating  expenses increased by $130,797 primarily as a result
of the addition of the Sunwood  Apartments  property which  increased  operating
expenses by $76,957.  In addition,  operating  expenses at the  Cambridge  Green
property increased by $54,760.

Interest on mortgages  increased by $218,168 primarily as a result of a $109,462
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 $79,467 and the new
mortgage on the Fairlawn Gardens property which was obtained in March, 1998,
increased mortgage interest expense by $34,885.

Amortization  of mortgage costs  increased by $184,479  primarily as a result of
the  write-off  of  unamortized  mortgage  costs  of  $166,756  and the  $31,200
prepayment penalty fee associated with the prior mortgage on the Cambridge Green
property. In January, 1999, the Cambridge Green property mortgage was refinanced
and the mortgage costs relating to the prior mortgage were written off.

Interest on note payable and other decreased by $99,182 primarily as a result of
the repayment of the note payable in February, 1999.

Minority  interest share of partnership  income decreased by $43,350 as a result
of a decrease 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 $6,718,968 compared with $63,569 in 1998. In the 1999 period, the
Company  recognized  a  deferred  gain of  $6,050,740  (which is net of taxes of
$1,566,474)  from the sale of the Fairfield  Towers First and Second  Mortgages.
The Company  also  recognized a deferred  gain of $425,000  from the sale of the
Grant House  wraparound  mortgage  note. In addition,  the Company  recognized a
deferred gain of $218,534 from the sale of the Pinewood  property as a result of
the  $317,662  principal  prepayment  received  on that  note.  As a  result  of
principal payments received on the Overlook loan and the Fairfield Towers Second
Mortgage (prior to the Fairfield  sale),  the Company also  recognized  deferred
gains of $5,228 and  $19,466,  respectively.  In the 1998  period,  the  Company
recognized  a gain of  $40,435  from  the  sale of a  cooperative  apartment  at
Sherwood House. In addition, the Company recognized deferred gains of $6,359 and
$16,775, respectively, from principal payments received on the Overlook loan and
the Fairfield Towers Second Mortgage.

Balance Sheet

Net mortgage  portfolio  decreased by  $15,231,822  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 $12,999,827, 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.

Securities  available for sale  increased by $3,055,319 as a result of purchases
of  $3,120,231  in  marketable  equity  securities,  primarily  interest-bearing
corporate  preferred  stocks,  offset by a $64,912  decline in the fair value of
securities available for sale.

Cash and cash equivalents  increased by $7,767,414  primarily as a result of the
$9,711,157  received  from the sale of the  Fairfield  Towers  First and  Second
Mortgages,  the $425,000  received  from the sale of the Grant House  wraparound
mortgage and the $317,662  principal  prepayment  received on the Pinewood  note
receivable.

Wrap mortgage debt on sold properties  decreased by $2,310,963  primarily due to
the sale of the Grant House wraparound  mortgage note. As a result of this sale,
the $2,212,240  nonrecourse first mortgage which Presidential's  second mortgage
wrapped around was assigned to the purchaser.

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.

Net unrealized gain (loss) on securities available for sale decreased by $64,912
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 is in progress,  with a target completion date of September,
1999.  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 March 31, 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 estimated  costs to complete date  sensitivity  testing and
further assessments of third party vendors are minimal.

The Company  does not  anticipate  any problems in the testing of its IT systems
and will be 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 and  additional  funds that the Company may receive from balloon  payments
due on the Company's note  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 March 31, 1999, Presidential had $9,531,879 in available cash and cash
equivalents, an increase of $7,767,414 from the $1,764,465 at December 31, 1998.
This increase in cash and cash equivalents was due to cash provided by operating
activities of $1,375,694 and investing activities of $17,821,270, offset by cash
used in financing activities of $11,429,550.

Operating Activities

Presidential's  principal  source  of cash  from  operating  activities  is from
interest on its mortgage portfolio,  which was $888,356 in 1999, net of interest
payments on wrap mortgage debt and note payable. In 1999, net cash received from
rental  property  operations was $747,453 , 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 $691,723 on its mortgage  portfolio (net of any
principal  payments  attributable  to the  Underlying  Debt),  of which $659,143
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.

During 1999, the Company invested  $267,844 in additions and improvements to its
properties.

The Company  also holds a portfolio of  marketable  equitable  securities  which
increased by  $3,055,319,  primarily as a result of the  $3,120,231  purchase of
interest-bearing  corporate  preferred stocks,  offset by a decrease in the fair
value of securities of $64,912.

Financing Activities

The  Company's  indebtedness  at March 31,  1999,  consisted of  $42,055,240  of
mortgages  (including  $2,357,499 of underlying  indebtedness  on properties not
owned by the Company but on which the Company holds wraparound  mortgages).  The
mortgage debt, which is secured by individual properties,  is nonrecourse to the
Company with the exception of the $269,089 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  $105,600  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 and paid cash  distributions of $576,651 to
its shareholders and received proceeds from its dividend  reinvestment and share
purchase plan of $24,969.
















PART II - OTHER INFORMATION



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

(a)   Exhibit 27.  Financial Data Schedule.

(b)   During the calendar  quarter ended March 31, 1999,  the Company filed a
      Form 8-K  dated  March 1, 1999  which  disclosed  under  Item 5 - Other
      Events the sale of substantially  all of its Fairfield Towers First and
      Second Mortgage Notes.


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:  May 13, 1999                By:  /s/ Jeffrey F. Joseph
                                      ---------------------
                                      Jeffrey F. Joseph
                                      President



DATE:  May 13, 1999                By:  /s/ Elizabeth Delgado
                                      ---------------------
                                      Elizabeth Delgado
                                      Treasurer