----

----

|   | T | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---|-----------------------------------------------------------------------------------------|

|   | £ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------|------------------------------------------------------------------------------------------|

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

| Large accelerated filer  £                                  | Accelerated filer £               |
|----------------------------------------------------------------------------|----------------------------------------|
|                                                                       |                                   |
| Non-accelerated filer £ (Do not check if a smaller reporting company) | Smaller reporting company  T |

----

----

----

PRESIDENT

|    |                                                                                        |                                                             | Page   |
|---------|---------------------------------------------------------------------------------------------|------------------------------------------------------------------|--------|
|    |                                                                                        |                                                             |   |
| Part I  | Financial Information (Unaudited)                                                           |                                                             |
|    |                                                                                        |                                                             |   |
| Item 1. | Financial Statements                                                                        |                                                             |
|    |                                                                                        | Consolidated Balance Sheets (Unaudited)                          | 1      |
|    |                                                                                        | Consolidated Statements of Operations (Unaudited)                | 2      |
|    |                                                                                        | Consolidated Statement of Stockholders’ Equity (Unaudited) | 3      |
|    |                                                                                        | Consolidated Statements of Cash Flows (Unaudited)                | 4      |
|    |                                                                                        | Notes to Consolidated Financial Statements (Unaudited)           | 6      |
|    |                                                                                        |                                                             |   |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 24                                                               |
|    |                                                                                        |                                                             |   |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk                                  | 40                                                               |
|    |                                                                                        |                                                             |   |
| Item 4. | Controls and Procedures                                                                     | 40                                                               |
|    |                                                                                        |                                                             |   |
|    |                                                                                        |                                                             |   |
| Part II | Other Information                                                                           |                                                             |
|    |                                                                                        |                                                             |   |
| Item 6. | Exhibits                                                                                    | 40                                                               |

----

Index

PRES

|                                                                                                     |   | September 30, |       |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                                                     |   | 2010          |       |   | 2009         |   |
| Assets                                                                                                   |   |          |       |   |         |   |
|                                                                                                     |   |          |       |   |         |   |
| Real estate (Note 2)                                                                                     |   | $             | 15,658,670 |   |         | $      | 16,595,998 |   |
| Less: accumulated depreciation                                                                           |   |          | 1,523,363  |   |         |   | 1,516,641 |   |
|                                                                                                     |   |          |       |   |         |   |   |   |
| Net real estate                                                                                          |   |          | 14,135,307 |   |         |   | 15,079,357 |   |
| Mortgage portfolio held for sale (Note 3)                                                                |   |          | 2,074,994  |   |         |   | - |   |
| Net mortgage portfolio (of which $769,338 in 2010 and $769,037 in 2009 are due within one year) (Note 3) |   |          | 796,076    |   |         |   | 2,880,922 |   |
| Investments in joint ventures (Note 4)                                                                   |   |          | 1,980,879  |   |         |   | 2,595,603 |   |
| Assets related to discontinued operations (Note 5)                                                       |   |          | 683,716    |   |         |   | 231,813 |   |
| Prepaid expenses and deposits in escrow                                                                  |   |          | 912,102    |   |         |   | 1,132,569 |   |
| Other receivables (net of valuation allowance of $219,295 in 2010 and $234,316 in 2009)                  |   |          | 389,324    |   |         |   | 804,376 |   |
| Cash and cash equivalents                                                                                |   |          | 1,486,221  |   |         |   | 784,674 |   |
| Securities available for sale (Note 6)                                                                   |   |          | 2,872,225  |   |         |   | 3,614,113 |   |
| Other assets                                                                                             |   |          | 444,160    |   |         |   | 518,185 |   |
|                                                                                                     |   |          |       |   |         |   |   |   |
| Total Assets                                                                                             |   | $             | 25,775,004 |   |         | $      | 27,641,612 |   |
|                                                                                                     |   |          |       |   |         |   |   |   |
| Liabilities and Stockholders' Equity                                                                     |   |          |       |   |         |   |   |   |
|                                                                                                     |   |          |       |   |         |   |   |   |
| Liabilities:                                                                                             |   |          |       |   |         |   |   |   |
| Mortgage debt (of which $366,112 in 2010 and $375,916 in 2009 are due within one year)                   |   | $             | 14,668,159 |   |         | $      | 14,969,607 |   |
| Liabilities related to discontinued operations (Note 5)                                                  |   |          | 22,763     |   |         |   | 1,045,867 |   |
| Contractual pension and postretirement benefits liabilities                                              |   |          | 918,779    |   |         |   | 927,882 |   |
| Defined benefit plan liability                                                                           |   |          | 2,179,248  |   |         |   | 1,957,522 |   |
| Accrued liabilities                                                                                      |   |          | 1,911,956  |   |         |   | 1,797,502 |   |
| Accounts payable                                                                                         |   |          | 359,953    |   |         |   | 780,128 |   |
| Other liabilities                                                                                        |   |          | 425,576    |   |         |   | 464,242 |   |
|                                                                                                     |   |          |       |   |         |   |   |   |
| Total Liabilities                                                                                        |   |          | 20,486,434 |   |         |   | 21,942,750 |   |

|                                   |   |                    |       |   |                  |   |       |   |   |   |    |   |
|----------------------------------------|--------|-------------------------|------------|--------|-----------------------|--------|------------|--------|--------|--------|---------|--------|
| Stockholders' Equity:                  |   |                    |       |   |                  |   |       |   |   |   |    |   |
| Common stock: par value $.10 per share |   |                    |       |   |                  |   |       |   |   |   |    |   |
|                                   |   | September 30, 2010 |       |   | December 31,2009 |   |       |   |   |   |    |   |
| Class A                                |   |                    |       |   |                  |   |       |   | 47,894 |   |    |   | 47,894 |   |
| Authorized:                            |   |                    | 700,000    |   |                  |   | 700,000    |   |   |   |    |   |   |   |   |   |
| Issued:                                |   |                    | 478,940    |   |                  |   | 478,940    |   |   |   |    |   |   |   |   |   |
| Treasury:                              |   |                    | 36,407     |   |                  |   | 36,407     |   |   |   |    |   |   |   |   |   |
|                                   |   |                    |       |   |                  |   |       |   |   |   |    |   |   |   |   |   |
| Class B                                |   |                    |       |   |                  |   |       |   |   |   | 353,055 |   |   |   | 352,755 |   |
| Authorized:                            |   |                    | 10,000,000 |   |                  |   | 10,000,000 |   |   |   |    |   |   |   |   |   |
| Issued:                                |   |                    | 3,530,547  |   |                  |   | 3,527,547  |   |   |   |    |   |   |   |   |   |
| Treasury:                              |   |                    | 570,400    |   |                  |   | 570,400    |   |   |   |    |   |   |   |   |   |

| Additional paid-in capital                                 |   |   | 4,672,366  |   |   |   | 4,636,633  |   |
|------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
| Retained earnings                                          |   |   | 6,625,935  |   |   |   | 6,855,088  |   |
| Accumulated other comprehensive loss (Note 9)              |   |   | (2,795,238 | )      |   |   | (2,799,464 | )      |
| Treasury stock (at cost)                                   |   |   | (3,129,388 | )      |   |   | (3,129,388 | )      |
|                                                       |   |   |       |   |   |   |       |   |
| Total Presidential Realty Corporation stockholders' equity |   |   | 5,774,624  |   |   |   | 5,963,518  |   |
| Noncontrolling interest (Note 7)                           |   |   | (486,054   | )      |   |   | (264,656   | )      |
|                                                       |   |   |       |   |   |   |       |   |
| Total Stockholders' Equity                                 |   |   | 5,288,570  |   |   |   | 5,698,862  |   |
|                                                       |   |   |       |   |   |   |       |   |
| Total Liabilities and Stockholders' Equity                 |   | $      | 25,775,004 |   |   | $      | 27,641,612 |   |

----

Index

PRESI

|                                                              |   | THREE MONTHS ENDED |      |   | NINE MONTHS ENDED |   |
|-------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                              |   | SEPTEMBER 30,      |      |   | SEPTEMBER 30,     |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |
|                                                              |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
| Revenues:                                                         |   |               |      |   |              |   |   |   |   |   |   |   |
| Rental                                                            |   | $                  | 959,402   |   |              | $      | 991,839 |   |   | $ | 3,119,138 |   |   | $ | 3,086,685 |   |
| Interest on mortgages - notes receivable                          |   |               | 211,499   |   |              |   | 103,451 |   |   |   | 360,121 |   |   |   | 350,833 |   |
| Other revenues                                                    |   |               | 13        |   |              |   | 12 |   |   |   | 18,617 |   |   |   | 23,626 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                             |   |               | 1,170,914 |   |              |   | 1,095,302 |   |   |   | 3,497,876 |   |   |   | 3,461,144 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Costs and Expenses:                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                                        |   |               | 826,372   |   |              |   | 865,834 |   |   |   | 2,364,328 |   |   |   | 2,748,724 |   |
| Depreciation on non-rental property                               |   |               | 8,772     |   |              |   | 10,518 |   |   |   | 26,393 |   |   |   | 31,419 |   |
| Rental property:                                                  |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                |   |               | 482,067   |   |              |   | 484,260 |   |   |   | 1,498,849 |   |   |   | 1,451,232 |   |
| Interest on mortgage debt                                         |   |               | 370,598   |   |              |   | 370,160 |   |   |   | 1,099,406 |   |   |   | 1,098,135 |   |
| Real estate taxes                                                 |   |               | 122,714   |   |              |   | 111,280 |   |   |   | 345,274 |   |   |   | 245,897 |   |
| Depreciation on real estate                                       |   |               | 113,532   |   |              |   | 110,237 |   |   |   | 338,288 |   |   |   | 325,735 |   |
| Amortization of in-place lease values and mortgage costs          |   |               | 7,668     |   |              |   | 12,469 |   |   |   | 25,554 |   |   |   | 43,664 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                             |   |               | 1,931,723 |   |              |   | 1,964,758 |   |   |   | 5,698,092 |   |   |   | 5,944,806 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other Income (Loss):                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                                                 |   |               | 23,466    |   |              |   | 31,486 |   |   |   | 54,264 |   |   |   | 63,868 |   |
| Equity in the loss from joint ventures (Note 4)                   |   |               | (205,355  | )      |              |   | (466,127 | ) |   |   | (614,724 | ) |   |   | (1,052,005 | ) |
| Gain on settlement of joint venture loans (Notes 3 and 4)         |   |               | 150,000   |   |              |   | - |   |   |   | 150,000 |   |   |   | 3,979,289 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                          |   |               | (792,698  | )      |              |   | (1,304,097 | ) |   |   | (2,610,676 | ) |   |   | 507,490 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations (Note 5):                                 |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations                               |   |               | 40,379    |   |              |   | 30,950 |   |   |   | 96,571 |   |   |   | 155,081 |   |
| Net gain from sales of discontinued operations                    |   |               | 1,764,313 |   |              |   | - |   |   |   | 2,063,554 |   |   |   | 3,208,336 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total income from discontinued operations                         |   |               | 1,804,692 |   |              |   | 30,950 |   |   |   | 2,160,125 |   |   |   | 3,363,417 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                 |   |               | 1,011,994 |   |              |   | (1,273,147 | ) |   |   | (450,551 | ) |   |   | 3,870,907 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Add: Net loss from noncontrolling interest (Note 7)               |   |               | 102,545   |   |              |   | 87,936 |   |   |   | 221,398 |   |   |   | 171,552 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) attributable to Presidential Realty Corporation |   | $                  | 1,114,539 |   |              | $      | (1,185,211 | ) |   | $ | (229,153 | ) |   | $ | 4,042,459 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per Common Share attributable to Presidential            |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Realty Corporation (basic and diluted) (Note 10):                 |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                          |   | $                  | (0.20     | )      |              | $      | (0.36 | ) |   | $ | (0.70 | ) |   | $ | 0.20 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations:                                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations                               |   |               | 0.01      |   |              |   | 0.01 |   |   |   | 0.02 |   |   |   | 0.05 |   |
| Net gain from sales of discontinued operations                    |   |               | 0.52      |   |              |   | - |   |   |   | 0.61 |   |   |   | 0.95 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total income from discontinued operations                         |   |               | 0.53      |   |              |   | 0.01 |   |   |   | 0.63 |   |   |   | 1.00 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) per Common Share - basic                        |   | $                  | 0.33      |   |              | $      | (0.35 | ) |   | $ | (0.07 | ) |   | $ | 1.20 |   |
| - diluted                                                         |   | $                  | 0.33      |   |              | $      | (0.35 | ) |   | $ | (0.07 | ) |   | $ | 1.19 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Number of Shares Outstanding - basic             |   |               | 3,393,482 |   |              |   | 3,381,982 |   |   |   | 3,391,277 |   |   |   | 3,380,667 |   |
|    - diluted                                            |   |               | 3,393,482 |   |              |   | 3,381,982 |   |   |   | 3,391,277 |   |   |   | 3,399,592 |   |
|                                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Amounts attributable to Presidential Realty Corporation           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Common Shareholders:                                              |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                          |   | $                  | (690,153  | )      |              | $      | (1,216,161 | ) |   | $ | (2,389,278 | ) |   | $ | 679,042 |   |
| Total income from discontinued operations                         |   |               | 1,804,692 |   |              |   | 30,950 |   |   |   | 2,160,125 |   |   |   | 3,363,417 |   |
| Net Income (Loss)                                                 |   | $                  | 1,114,539 |   |              | $      | (1,185,211 | ) |   | $ | (229,153 | ) |   | $ | 4,042,459 |   |

----

Index

PRESID

|                                                               |   | Presidential Realty Corporation Stockholders |    |   |                       |   |      |              |   |   |                                 |   |
|--------------------------------------------------------------------|--------|----------------------------------------------|---------|--------|----------------------------|--------|-----------|-------------------|--------|--------|--------------------------------------|--------|
|                                                               |   | Common Stock                                 |    |   | Additional Paid-in Capital |   |      | Retained Earnings |   |   | Accumulated Other Comprehensive Loss |   |   | Treasury Stock |   |   | Noncontrolling Interest |   |   | Comprehensive Loss |   |   | Total Stockholders' Equity |   |
|                                                               |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2010                                         |   | $                                            | 400,649 |   |                       | $      | 4,636,633 |              |   | $      | 6,855,088                            |   |   | $ | (2,799,464 | ) |   | $ | (3,129,388 | ) |   | $ | (264,656 | ) |   |   |   |   | $ | 5,698,862 |   |
|                                                               |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance and vesting of restricted stock                           |   |                                         | 300     |   |                       |   | 35,733    |              |   |   | -                                    |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   |   |   |   | 36,033 |   |
| Comprehensive loss:                                                |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                           |   |                                         | -       |   |                       |   | -         |              |   |   | (229,153                             | )      |   |   | - |   |   |   | - |   |   |   | (221,398 | ) |   | $ | (450,551 | ) |   |   | (450,551 | ) |
| Other comprehensive income (loss) -                                |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized gain on securities available for sale               |   |                                         | -       |   |                       |   | -         |              |   |   | -                                    |   |   |   | 27,675 |   |   |   | - |   |   |   | - |   |   |   | 27,675 |   |   |   | 27,675 |   |
| Adjustment for contractual postretirement benefits                 |   |                                         | -       |   |                       |   | -         |              |   |   | -                                    |   |   |   | (23,449 | ) |   |   | - |   |   |   | - |   |   |   | (23,449 | ) |   |   | (23,449 | ) |
| Comprehensive loss                                                 |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (446,325 | ) |   |   |   |   |
| Comprehensive loss attributable to noncontrolling interest         |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 221,398 |   |   |   |   |   |
| Comprehensive loss attributable to Presidential Realty Corporation |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | (224,927 | ) |   |   |   |   |
|                                                               |   |                                         |    |   |                       |   |      |              |   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at September 30, 2010                                      |   | $                                            | 400,949 |   |                       | $      | 4,672,366 |              |   | $      | 6,625,935                            |   |   | $ | (2,795,238 | ) |   | $ | (3,129,388 | ) |   | $ | (486,054 | ) |   |   |   |   |   | $ | 5,288,570 |   |

----

Index

PRESID

|                                                   |   | NINE MONTHS ENDED SEPTEMBER 30, |       |
|--------------------------------------------------------|--------|--------------------------------------|------------|
|                                                   |   |                                 |       |   |   |   |
|                                                   |   | 2010                                 |       |   | 2009 |   |
| Cash Flows from Operating Activities:                  |   |                                 |       |   |   |   |
| Cash received from rental properties                   |   | $                                    | 3,975,458  |   |   | $ | 4,269,683 |   |
| Interest received                                      |   |                                 | 465,141    |   |   |   | 394,170 |   |
| Miscellaneous income                                   |   |                                 | 10,042     |   |   |   | 10,942 |   |
| Interest paid on rental property mortgage debt         |   |                                 | (891,742   | ) |   |   | (944,782 | ) |
| Cash disbursed for rental property operations          |   |                                 | (2,897,223 | ) |   |   | (2,602,299 | ) |
| Cash disbursed for general and administrative costs    |   |                                 | (2,245,100 | ) |   |   | (3,143,968 | ) |
|                                                   |   |                                 |       |   |   |   |   |   |
| Net cash used in operating activities                  |   |                                 | (1,583,424 | ) |   |   | (2,016,254 | ) |
|                                                   |   |                                 |       |   |   |   |   |   |
| Cash Flows from Investing Activities:                  |   |                                 |       |   |   |   |   |   |
| Payments received on notes receivable                  |   |                                 | 23,850     |   |   |   | 107,839 |   |
| Proceeds from sales of properties                      |   |                                 | 2,349,850  |   |   |   | 1,545,851 |   |
| Payments received on settlement of joint venture loans |   |                                 | 650,000    |   |   |   | 65,289 |   |
| Payments disbursed for additions and improvements      |   |                                 | (124,417   | ) |   |   | (392,995 | ) |
| Purchase of securities available for sale              |   |                                 | -          |   |   |   | (4,431,622 | ) |
| Proceeds from sales of securities                      |   |                                 | 750,900    |   |   |   | 804,766 |   |
|                                                   |   |                                 |       |   |   |   |   |   |
| Net cash provided by (used in) investing activities    |   |                                 | 3,650,183  |   |   |   | (2,300,872 | ) |
|                                                   |   |                                 |       |   |   |   |   |   |
| Cash Flows from Financing Activities:                  |   |                                 |       |   |   |   |   |   |
| Principal payments on mortgage debt                    |   |                                 | (2,574,552 | ) |   |   | (303,683 | ) |
| Proceeds of mortgage refinancing                       |   |                                 | 1,250,000  |   |   |   | - |   |
| Payments disbursed for mortgage costs                  |   |                                 | (40,660    | ) |   |   | (1,500 | ) |
|                                                   |   |                                 |       |   |   |   |   |   |
| Net cash used in financing activities                  |   |                                 | (1,365,212 | ) |   |   | (305,183 | ) |
|                                                   |   |                                 |       |   |   |   |   |   |
|                                                   |   |                                 |       |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents   |   |                                 | 701,547    |   |   |   | (4,622,309 | ) |
|                                                   |   |                                 |       |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning of Period         |   |                                 | 784,674    |   |   |   | 5,984,550 |   |
|                                                   |   |                                 |       |   |   |   |   |   |
| Cash and Cash Equivalents, End of Period               |   | $                                    | 1,486,221  |   |   | $ | 1,362,241 |   |

----

Index

|                                                                                            |   | NINE MONTHS ENDED SEPTEMBER 30, |       |
|-------------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|
|                                                                                            |   |                                 |       |   |   |   |
|                                                                                            |   | 2010                                 |       |   | 2009 |   |
|                                                                                            |   |                                 |       |   |   |   |
|                                                                                            |   |                                 |       |   |   |   |
| Reconciliation of Net Income (Loss) to Net Cash Used in Operating Activities                    |   |                                 |       |   |   |   |
|                                                                                            |   |                                 |       |   |   |   |
| Net Income (Loss)                                                                               |   | $                                    | (450,551   | ) |   | $ | 3,870,907 |   |
|                                                                                            |   |                                 |       |   |   |   |   |   |
| Adjustments to reconcile net income (loss) to net cash used in operating activities:            |   |                                 |       |   |   |   |   |   |
| Net gain from sales of discontinued operations                                                  |   |                                 | (2,063,554 | ) |   |   | (3,208,336 | ) |
| Gain on settlement of joint venture loans                                                       |   |                                 | (150,000   | ) |   |   | (3,979,289 | ) |
| Equity in the loss from joint ventures                                                          |   |                                 | 614,724    |   |   |   | 1,052,005 |   |
| Depreciation and amortization                                                                   |   |                                 | 409,181    |   |   |   | 461,612 |   |
| Net change in revenue related to acquired lease rights/obligations and deferred rent receivable |   |                                 | (546       | ) |   |   | (25,300 | ) |
| Amortization of discounts on notes and fees                                                     |   |                                 | (13,998    | ) |   |   | (62,570 | ) |
| Issuance of stock to directors and officers                                                     |   |                                 | 35,531     |   |   |   | 37,644 |   |
|                                                                                            |   |                                 |       |   |   |   |   |   |
| Changes in assets and liabilities:                                                              |   |                                 |       |   |   |   |   |   |
| Decrease (increase) in other receivables                                                        |   |                                 | (96,112    | ) |   |   | 142,453 |   |
| Decrease in accounts payable and accrued liabilities                                            |   |                                 | (132,395   | ) |   |   | (393,062 | ) |
| Increase (decrease) in other liabilities                                                        |   |                                 | 24,787     |   |   |   | (75,587 | ) |
| Decrease in prepaid expenses, deposits in escrow and deferred charges                           |   |                                 | 220,969    |   |   |   | 170,664 |   |
| Other                                                                                           |   |                                 | 18,540     |   |   |   | (7,395 | ) |
|                                                                                            |   |                                 |       |   |   |   |   |   |
| Total adjustments                                                                               |   |                                 | (1,132,873 | ) |   |   | (5,887,161 | ) |
|                                                                                            |   |                                 |       |   |   |   |   |   |
| Net cash used in operating activities                                                           |   | $                                    | (1,583,424 | ) |   | $ | (2,016,254 | ) |
|                                                                                            |   |                                 |       |   |   |   |   |   |
|                                                                                            |   |                                 |       |   |   |   |   |   |
|                                                                                            |   |                                 |       |   |   |   |   |   |
| SUPPLEMENTAL NONCASH DISCLOSURES:                                                               |   |                                 |       |   |   |   |   |   |
|                                                                                            |   |                                 |       |   |   |   |   |   |
| Fair value of assets received in settlement of notes receivable due from joint ventures:        |   |                                 |       |   |   |   |   |   |
| 50% partnership interest in IATG Puerto Rico, LLC                                               |   |                                 |       |   |   | $ | 3,250,000 |   |
| Note receivable                                                                                 |   |                                 |       |   |   |   | 664,000 |   |
|                                                                                            |   |                                 |       |   |   | $ | 3,914,000 |   |
|                                                                                            |   |                                 |       |   |   |   |   |   |
| Satisfaction of mortgage debt as a result of assumption of the mortgage debt by purchaser       |   |                                 |       |   |   | $ | 2,053,964 |   |

----

Index

PRESI

| 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|----|--------------------------------------------|

----

Index

----

Index

| 2. | REAL ESTATE |
|----|-------------|

|                    |   | September 30, |       |   | December 31, |   |
|-------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                    |   | 2010               |       |   | 2009              |   |
|                    |   |               |       |   |              |   |
| Land                    |   | $                  | 1,906,466  |   |              | $      | 1,995,982 |   |
| Buildings               |   |               | 13,745,829 |   |              |   | 14,563,891 |   |
| Furniture and equipment |   |               | 6,375      |   |              |   | 36,125 |   |
|                    |   |               |       |   |              |   |   |   |
| Total real estate       |   | $                  | 15,658,670 |   |              | $      | 16,595,998 |   |

| 3. | MORTGAGE PORTFOLIO |
|----|--------------------|

|                          |   | September 30, |      |   | December 31, |   |
|-------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                          |   | 2010               |      |   | 2009              |   |
|                          |   |               |      |   |              |   |
| Note receivable held for sale |   | $                  | 2,074,994 |   |              | $      | - |   |
|                          |   |               |      |   |              |   |   |   |
| Notes receivable              |   | $                  | 817,262   |   |              | $      | 2,917,134 |   |
| Less: Discounts               |   |               | 21,186    |   |              |   | 36,212 |   |
|                          |   |               |      |   |              |   |   |   |
| Net mortgage portfolio        |   | $                  | 796,076   |   |              | $      | 2,880,922 |   |

----

Index

----

Index

| 4. | INVESTMENTS IN JOINT VENTURES |
|----|-------------------------------|

----

Index

|           |   | Balance at December 31,2009 |      |   | Equity in the Loss from Joint Ventures |   |     | Balance at September 30,2010 |   |
|----------------|--------|----------------------------------|-----------|--------|----------------------------------------|--------|----------|-----------------------------------|--------|
|           |   |                             |      |   |                                   |   |     |                              |   |
| IATG (1)       |   | $                                | 2,595,603 |   |                                   | $      | (614,724 | )                                 |   | $ | 1,980,879 |   |
| Shawnee/Brazos |   |                             |      |   |                                   |   |     |                              |   |   |   |   |
| Malls (2)      |   |                             | -         |   |                                   |   | -        |                              |   |   | - |   |
|           |   |                             |      |   |                                   |   |     |                              |   |   |   |   |
|           |   | $                                | 2,595,603 |   |                                   | $      | (614,724 | )                                 |   | $ | 1,980,879 |   |

|           |   | Three Months Ended |     |   | Nine Months Ended |   |
|----------------|--------|--------------------|----------|--------|-------------------|--------|
|           |   | September 30,      |     |   | September 30,     |   |
|           |   | 2010               |     |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|           |   |               |     |   |              |   |   |   |   |   |   |   |
| IATG (1)       |   | $                  | (205,355 | )      |              | $      | (201,787 | ) |   | $ | (614,724 | ) |   | $ | (429,629 | ) |
| Shawnee/Brazos |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Malls (2)      |   |               | -        |   |              |   | (264,340 | ) |   |   | - |   |   |   | (622,376 | ) |
|           |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|           |   | $                  | (205,355 | )      |              | $      | (466,127 | ) |   | $ | (614,724 | ) |   | $ | (1,052,005 | ) |

----

Index

|                                         |   | September 30,     |   |   | December 31, |   |
|----------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                                         |   | 2010                   |   |   | 2009              |   |
|                                         |   | (Amounts in thousands) |   |
|                                         |   |                   |   |   |              |   |
| Condensed Balance Sheets                     |   |                   |   |   |              |   |
| Net real estate                              |   | $                      | 5,373  |   |              | $      | 5,506 |   |
| Cash and cash equivalents                    |   |                   | 38     |   |              |   | 43 |   |
| Accounts receivable                          |   |                   | 98     |   |              |   | 4 |   |
| Deferred expenses                            |   |                   | 183    |   |              |   | 203 |   |
| Prepaid expenses                             |   |                   | -      |   |              |   | 14 |   |
|                                         |   |                   |   |   |              |   |   |   |
| Total Assets                                 |   | $                      | 5,692  |   |              | $      | 5,770 |   |
|                                         |   |                   |   |   |              |   |   |   |
| Note payable (1)                             |   | $                      | 8,502  |   |              | $      | 7,748 |   |
| Other liabilities                            |   |                   | 2,854  |   |              |   | 2,456 |   |
|                                         |   |                   |   |   |              |   |   |   |
| Total Liabilities                            |   |                   | 11,356 |   |              |   | 10,204 |   |
| Members’ Deficit                       |   |                   | (5,664 | )      |              |   | (4,434 | ) |
|                                         |   |                   |   |   |              |   |   |   |
| Total Liabilities and Members’ Deficit |   | $                      | 5,692  |   |              | $      | 5,770 |   |

|                                      |   | Three Months Ended September 30, |   |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |   | Seven Months Ended September 30, |   |
|-------------------------------------------|--------|--------------------------------------------|--------|--------|--------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------------------------------------|--------|
|                                      |   | 2010                                       |   |   | 2009                                       |   |   | 2010                                      |   |   | 2009                                       |   |
|                                      |   | (Amounts in thousands)                     |   |
|                                      |   |                                       |   |   |                                       |   |   |                                      |   |   |                                       |   |
| Condensed Statements of Operations        |   |                                       |   |   |                                       |   |   |                                      |   |   |                                       |   |
| Revenues                                  |   | $                                          | 252    |   |                                       | $      | 158    |                                      |   | $      | 711                                        |   |   | $ | 465 |   |
| Interest on note payable                  |   |                                       | (250   | )      |                                       |   | (220   | )                                         |   |   | (728                                       | )      |   |   | (503 | ) |
| Other expenses                            |   |                                       | (362   | )      |                                       |   | (289   | )                                         |   |   | (1,055                                     | )      |   |   | (698 | ) |
|                                      |   |                                       |   |   |                                       |   |   |                                      |   |   |                                       |   |   |   |   |   |
| Loss before depreciation and amortization |   |                                       | (360   | )      |                                       |   | (351   | )                                         |   |   | (1,072                                     | )      |   |   | (736 | ) |
| Depreciation and amortization             |   |                                       | (51    | )      |                                       |   | (52    | )                                         |   |   | (157                                       | )      |   |   | (123 | ) |
|                                      |   |                                       |   |   |                                       |   |   |                                      |   |   |                                       |   |   |   |   |   |
| Net Loss                                  |   | $                                          | (411   | )      |                                       | $      | (403   | )                                         |   | $      | (1,229                                     | )      |   | $ | (859 | ) |

----

Index

|                                            |   | December 31,      |    |
|-------------------------------------------------|--------|------------------------|---------|
|                                            |   | 2009                   |    |
|                                            |   | (Amounts in thousands) |    |
|                                            |   |                   |    |
| Condensed Balance Sheets                        |   |                   |    |
| Net real estate                                 |   | $                      | 38,714  |   |
| In-place lease values and acquired lease rights |   |                   | 607     |   |
| Prepaid expenses and deposits in escrow         |   |                   | 3,903   |   |
| Cash and cash equivalents                       |   |                   | 1,311   |   |
| Deferred financing costs                        |   |                   | 643     |   |
| Other assets                                    |   |                   | 1,069   |   |
|                                            |   |                   |    |   |
| Total Assets                                    |   | $                      | 46,247  |   |
|                                            |   |                   |    |   |
| Nonrecourse mortgage debt                       |   | $                      | 39,061  |   |
| Mezzanine notes payable (1)                     |   |                   | 39,373  |   |
| Other liabilities                               |   |                   | 7,960   |   |
|                                            |   |                   |    |   |
| Total Liabilities                               |   |                   | 86,394  |   |
| Members’ Deficit                          |   |                   | (40,147 | ) |
|                                            |   |                   |    |   |
| Total Liabilities and Members’ Deficit    |   | $                      | 46,247  |   |

|                                      |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
|-------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                      |   | 2009                                  |   |   | 2009                                 |   |
|                                      |   | (Amounts in thousands)                |   |
| Condensed Statements of Operations        |   |                                  |   |   |                                 |   |
| Revenues                                  |   | $                                     | 2,344  |   |                                 | $      | 7,378 |   |
| Interest on mortgage debt and other debt  |   |                                  | (1,591 | )      |                                 |   | (4,625 | ) |
| Other expenses                            |   |                                  | (1,446 | )      |                                 |   | (4,242 | ) |
|                                      |   |                                  |   |   |                                 |   |   |   |
| Loss before depreciation and amortization |   |                                  | (693   | )      |                                 |   | (1,489 | ) |
| Depreciation and amortization             |   |                                  | (758   | )      |                                 |   | (2,257 | ) |
|                                      |   |                                  |   |   |                                 |   |   |   |
| Net Loss                                  |   | $                                     | (1,451 | )      |                                 | $      | (3,746 | ) |

| 5. | DISCONTINUED OPERATIONS |
|----|-------------------------|

----

Index

|                                           |   | Three Months Ended |      |   | Nine Months Ended |   |
|------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                           |   | September 30,      |      |   | September 30,     |   |
|                                           |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                           |   |               |      |   |              |   |   |   |   |   |   |   |
| Revenues:                                      |   |               |      |   |              |   |   |   |   |   |   |   |
| Rental                                         |   | $                  | 295,630   |   |              | $      | 324,795 |   |   | $ | 913,686 |   |   | $ | 1,115,446 |   |
|                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Rental property expenses:                      |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses                             |   |               | 183,531   |   |              |   | 210,708 |   |   |   | 602,379 |   |   |   | 633,149 |   |
| Interest on mortgage debt                      |   |               | 19,866    |   |              |   | 15,164 |   |   |   | 54,935 |   |   |   | 82,133 |   |
| Real estate taxes                              |   |               | 47,653    |   |              |   | 46,116 |   |   |   | 141,154 |   |   |   | 184,584 |   |
| Depreciation                                   |   |               | -         |   |              |   | 20,928 |   |   |   | 7,566 |   |   |   | 56,714 |   |
| Amortization of mortgage costs                 |   |               | 4,372     |   |              |   | 1,001 |   |   |   | 11,380 |   |   |   | 4,079 |   |
|                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total                                          |   |               | 255,422   |   |              |   | 293,917 |   |   |   | 817,414 |   |   |   | 960,659 |   |
|                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other income:                                  |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Investment income                              |   |               | 171       |   |              |   | 72 |   |   |   | 299 |   |   |   | 294 |   |
|                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations            |   |               | 40,379    |   |              |   | 30,950 |   |   |   | 96,571 |   |   |   | 155,081 |   |
|                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net gain from sales of discontinued operations |   |               | 1,764,313 |   |              |   | - |   |   |   | 2,063,554 |   |   |   | 3,208,336 |   |
|                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total income from discontinued operations      |   | $                  | 1,804,692 |   |              | $      | 30,950 |   |   | $ | 2,160,125 |   |   | $ | 3,363,417 |   |

----

Index

|                                            |   | September 30, |     |   | December 31, |   |
|-------------------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                            |   | 2010               |     |   | 2009              |   |
|                                            |   |               |     |   |              |   |
| Assets related to discontinued operations:      |   |               |     |   |              |   |
| Land                                            |   | $                  | 79,100   |   |              | $      | 62,601 |   |
| Buildings                                       |   |               | 905,255  |   |              |   | 1,324,074 |   |
| Furniture and equipment                         |   |               | 29,750   |   |              |   | 44,705 |   |
| Less: accumulated depreciation                  |   |               | (330,482 | )      |              |   | (1,199,567 | ) |
|                                            |   |               |     |   |              |   |   |   |
| Net real estate                                 |   |               | 683,623  |   |              |   | 231,813 |   |
| Other assets                                    |   |               | 93       |   |              |   | - |   |
|                                            |   |               |     |   |              |   |   |   |
|                                            |   | $                  | 683,716  |   |              | $      | 231,813 |   |
|                                            |   |               |     |   |              |   |   |   |
| Liabilities related to discontinued operations: |   |               |     |   |              |   |   |   |
| Mortgage debt                                   |   | $                  | 22,763   |   |              | $      | 1,045,867 |   |

----

Index

| 6. | SECURITIES AVAILABLE FOR SALE |
|----|-------------------------------|

|                                                                      |   | Amortized Cost |      |   | Gross Unrealized Gains |   |   | Gross Unrealized Losses |   |   | Fair Value |   |
|---------------------------------------------------------------------------|--------|----------------|-----------|--------|------------------------|--------|--------|-------------------------|--------|--------|------------|--------|
|                                                                      |   |           |      |   |                   |   |   |                    |   |   |       |   |
| September 30, 2010                                                        |   |           |      |   |                   |   |   |                    |   |   |       |   |
|                                                                      |   |           |      |   |                   |   |   |                    |   |   |       |   |
| U.S. Government Agencies notes and bonds maturing within one year         |   | $              | 927,794   |   |                   | $      | -      |                    |   | $      | (15,608    | )      |   | $ | 912,186 |   |
| U.S. Government Agencies notes and bonds maturing from one to three years |   |           | 1,929,280 |   |                   |   | 20,474 |                    |   |   | (2,284     | )      |   |   | 1,947,470 |   |
| Common stock of REITS                                                     |   |           | 2,011     |   |                   |   | 10,558 |                    |   |   | -          |   |   |   | 12,569 |   |
|                                                                      |   |           |      |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
|                                                                      |   | $              | 2,859,085 |   |                   | $      | 31,032 |                    |   | $      | (17,892    | )      |   | $ | 2,872,225 |   |
|                                                                      |   |           |      |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
| December 31, 2009                                                         |   |           |      |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
|                                                                      |   |           |      |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
| U.S. Government Agencies notes and bonds maturing within one year         |   | $              | 719,591   |   |                   | $      | -      |                    |   | $      | (12,402    | )      |   | $ | 707,189 |   |
| U.S. Government Agencies notes and bonds maturing from one to four years  |   |           | 2,907,046 |   |                   |   | 5,683  |                    |   |   | (16,270    | )      |   |   | 2,896,459 |   |
| Common stock of REITS                                                     |   |           | 2,011     |   |                   |   | 8,454  |                    |   |   | -          |   |   |   | 10,465 |   |
|                                                                      |   |           |      |   |                   |   |   |                    |   |   |       |   |   |   |   |   |
|                                                                      |   | $              | 3,628,648 |   |                   | $      | 14,137 |                    |   | $      | (28,672    | )      |   | $ | 3,614,113 |   |

|                  |   | Three Months Ended |   |   | Nine Months Ended |   |
|-----------------------|--------|--------------------|--------|--------|-------------------|--------|
|                  |   | September 30,      |   |   | September 30,     |   |
|                  |   | 2010               |   |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                  |   |               |   |   |              |   |   |   |   |   |   |   |
| Gross sales proceeds  |   | $                  | -      |   |              | $      | 804,766 |   |   | $ | 750,900 |   |   | $ | 804,766 |   |
|                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Gross realized gains  |   |               | -      |   |              |   | 343 |   |   |   | 228 |   |   |   | 343 |   |
| Gross realized losses |   |               | -      |   |              |   | (562 | ) |   |   | (18,891 | ) |   |   | (562 | ) |
|                  |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net realized loss     |   | $                  | -      |   |              | $      | (219 | ) |   | $ | (18,663 | ) |   | $ | (219 | ) |

| 7. | HATO REY PARTNERSHIP |
|----|----------------------|

----

Index

| 8. | INCOME TAXES |
|----|--------------|

----

Index

| 9. | ACCUMULATED OTHER COMPREHENSIVE LOSS |
|----|--------------------------------------|

|                                                        |   | September 30, |       |   | December 31, |   |
|-------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                        |   | 2010               |       |   | 2009              |   |
|                                                        |   |               |       |   |              |   |
| Defined benefit plan liability                              |   | $                  | (3,739,084 | )      |              | $      | (3,739,084 | ) |
| Contractual postretirement benefits liability               |   |               | 168,355    |   |              |   | 191,804 |   |
| Minimum contractual pension benefit liability               |   |               | 762,351    |   |              |   | 762,351 |   |
| Net unrealized gain (loss) on securities available for sale |   |               | 13,140     |   |              |   | (14,535 | ) |
|                                                        |   |               |       |   |              |   |   |   |
| Total accumulated other comprehensive loss                  |   | $                  | (2,795,238 | )      |              | $      | (2,799,464 | ) |

|                                                                        |   | Three Months Ended |      |   | Nine Months Ended |   |
|-----------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                        |   | September 30,      |      |   | September 30,     |   |
|                                                                        |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                                                        |   |               |      |   |              |   |   |   |   |   |   |   |
| Net income (loss)                                                           |   | $                  | 1,011,994 |   |              | $      | (1,273,147 | ) |   | $ | (450,551 | ) |   | $ | 3,870,907 |   |
|                                                                        |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss)-                                          |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net unrealized gain (loss) on securities available for sale                 |   |               | (2,613    | )      |              |   | 20,669 |   |   |   | 27,675 |   |   |   | (2,327 | ) |
| Adjustment for contractual postretirement benefits                          |   |               | (7,816    | )      |              |   | (6,165 | ) |   |   | (23,449 | ) |   |   | (18,494 | ) |
|                                                                        |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                 |   |               | 1,001,565 |   |              |   | (1,258,643 | ) |   |   | (446,325 | ) |   |   | 3,850,086 |   |
|                                                                        |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss attributable to noncontrolling interest                  |   |               | 102,545   |   |              |   | 87,936 |   |   |   | 221,398 |   |   |   | 171,552 |   |
|                                                                        |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss) attributable to Presidential Realty Corporation |   | $                  | 1,104,110 |   |              | $      | (1,170,707 | ) |   | $ | (224,927 | ) |   | $ | 4,021,638 |   |

----

Index

| 10. | EARNINGS PER COMMON SHARE |
|-----|---------------------------|

|                                                                             |   | Three Months Ended |      |   | Nine Months Ended |   |
|----------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                             |   | September 30,      |      |   | September 30,     |   |
|                                                                             |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                                         |   | $                  | (792,698  | )      |              | $      | (1,304,097 | ) |   | $ | (2,610,676 | ) |   | $ | 507,490 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations:                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations                                              |   |               | 40,379    |   |              |   | 30,950 |   |   |   | 96,571 |   |   |   | 155,081 |   |
| Net gain from sales of discontinued operations                                   |   |               | 1,764,313 |   |              |   | - |   |   |   | 2,063,554 |   |   |   | 3,208,336 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total income from discontinued operations                                        |   |               | 1,804,692 |   |              |   | 30,950 |   |   |   | 2,160,125 |   |   |   | 3,363,417 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                                |   |               | 1,011,994 |   |              |   | (1,273,147 | ) |   |   | (450,551 | ) |   |   | 3,870,907 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Add: Net loss from noncontrolling interest                                       |   |               | 102,545   |   |              |   | 87,936 |   |   |   | 221,398 |   |   |   | 171,552 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) attributable to Presidential Realty Corporation                |   | $                  | 1,114,539 |   |              | $      | (1,185,211 | ) |   | $ | (229,153 | ) |   | $ | 4,042,459 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per Common Share attributable to Presidential Realty Corporation basic: |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                                         |   | $                  | (0.20     | )      |              | $      | (0.36 | ) |   | $ | (0.70 | ) |   | $ | 0.20 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations:                                                         |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations                                              |   |               | 0.01      |   |              |   | 0.01 |   |   |   | 0.02 |   |   |   | 0.05 |   |
| Net gain from sales of discontinued operations                                   |   |               | 0.52      |   |              |   | - |   |   |   | 0.61 |   |   |   | 0.95 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total income from discontinued operations                                        |   |               | 0.53      |   |              |   | 0.01 |   |   |   | 0.63 |   |   |   | 1.00 |   |
|                                                                             |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) per Common Share – basic                                 |   | $                  | 0.33      |   |              | $      | (0.35 | ) |   | $ | (0.07 | ) |   | $ | 1.20 |   |

----

Index

|                                                                               |   | Three Months Ended |      |   | Nine Months Ended |   |
|------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|-------------------|--------|
|                                                                               |   | September 30,      |      |   | September 30,     |   |
|                                                                               |   | 2010               |      |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |
| Earnings per Common Share attributable to Presidential Realty Corporation diluted: |   |               |      |   |              |   |   |   |   |   |   |   |
| Income (loss) from continuing operations                                           |   | $                  | (0.20     | )      |              | $      | (0.36 | ) |   | $ | (0.70 | ) |   | $ | 0.20 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued Operations:                                                           |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income from discontinued operations                                                |   |               | 0.01      |   |              |   | .01 |   |   |   | 0.02 |   |   |   | 0.05 |   |
| Net gain from sales of discontinued operations                                     |   |               | 0.52      |   |              |   | - |   |   |   | 0.61 |   |   |   | 0.94 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total income from discontinued operations                                          |   |               | 0.53      |   |              |   | 0.01 |   |   |   | 0.63 |   |   |   | 0.99 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) per Common Share – diluted                                 |   | $                  | 0.33      |   |              | $      | (0.35 | ) |   | $ | (0.07 | ) |   | $ | 1.19 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding:                                     |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                              |   |               | 3,393,482 |   |              |   | 3,381,982 |   |   |   | 3,391,277 |   |   |   | 3,380,667 |   |
| Effect of dilutive securities – restricted stock                             |   |               | -         |   |              |   | - |   |   |   | - |   |   |   | 18,925 |   |
|                                                                               |   |               |      |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                                            |   |               | 3,393,482 |   |              |   | 3,381,982 |   |   |   | 3,391,277 |   |   |   | 3,399,592 |   |

| 11. | COMMITMENTS AND CONTINGENCIES |
|-----|-------------------------------|

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Index

| 12. | CONTRACTUAL PENSION AND POSTRETIREMENT BENEFITS |
|-----|-------------------------------------------------|

|                               |   | Three Months Ended |    |   | Nine Months Ended |   |
|------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                               |   | September 30,      |    |   | September 30,     |   |
|                               |   | 2010               |    |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                               |   |               |    |   |              |   |   |   |   |   |   |   |
| Service cost                       |   | $                  | -       |   |              | $      | - |   |   | $ | - |   |   | $ | - |   |
| Interest cost                      |   |               | 7,531   |   |              |   | 19,450 |   |   |   | 22,595 |   |   |   | 58,349 |   |
| Amortization of prior service cost |   |               | -       |   |              |   | (7,730 | ) |   |   | - |   |   |   | (23,191 | ) |
| Recognized actuarial (gain) loss   |   |               | (11,831 | )      |              |   | 14,029 |   |   |   | (35,493 | ) |   |   | 42,089 |   |
|                               |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net periodic benefit cost          |   | $                  | (4,300  | )      |              | $      | 25,749 |   |   | $ | (12,898 | ) |   | $ | 77,247 |   |

|                               |   | Three Months Ended |   |   | Nine Months Ended |   |
|------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                               |   | September 30,      |   |   | September 30,     |   |
|                               |   | 2010               |   |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                               |   |               |   |   |              |   |   |   |   |   |   |   |
| Service cost                       |   | $                  | 444    |   |              | $      | 406 |   |   | $ | 1,333 |   |   | $ | 1,217 |   |
| Interest cost                      |   |               | 5,471  |   |              |   | 6,701 |   |   |   | 16,412 |   |   |   | 20,102 |   |
| Amortization of prior service cost |   |               | 926    |   |              |   | 925 |   |   |   | 2,777 |   |   |   | 2,776 |   |
| Recognized actuarial (gain) loss   |   |               | (9,533 | )      |              |   | (8,194 | ) |   |   | (28,600 | ) |   |   | (24,581 | ) |
|                               |   |               |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net periodic benefit cost          |   | $                  | (2,692 | )      |              | $      | (162 | ) |   | $ | (8,078 | ) |   | $ | (486 | ) |

----

Index

| 13. | DEFINED BENEFIT PLAN |
|-----|----------------------|

|                                    |   | Three Months Ended |     |   | Nine Months Ended |   |
|-----------------------------------------|--------|--------------------|----------|--------|-------------------|--------|
|                                    |   | September 30,      |     |   | September 30,     |   |
|                                    |   | 2010               |     |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|                                    |   |               |     |   |              |   |   |   |   |   |   |   |
| Service cost                            |   | $                  | -        |   |              | $      | 39,393 |   |   | $ | - |   |   | $ | 118,178 |   |
| Interest cost                           |   |               | 123,900  |   |              |   | 69,452 |   |   |   | 371,701 |   |   |   | 208,358 |   |
| Expected return on plan assets          |   |               | (122,863 | )      |              |   | (36,891 | ) |   |   | (368,590 | ) |   |   | (110,674 | ) |
| Amortization of prior service cost |   |               | -        |   |              |   | 3,154 |   |   |   | - |   |   |   | 9,462 |   |
| Amortization of accumulated loss        |   |               | 72,872   |   |              |   | 63,183 |   |   |   | 218,615 |   |   |   | 189,549 |   |
|                                    |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net periodic benefit cost               |   | $                  | 73,909   |   |              | $      | 138,291 |   |   | $ | 221,726 |   |   | $ | 414,873 |   |

| 14. | ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS |
|-----|-----------------------------------------------|

----

Index

|                           |   | September 30, 2010 |   |   | December 31, 2009 |   |
|--------------------------------|--------|-------------------------|--------|--------|------------------------|--------|
|                           |   |                    |   |   |                   |   |   |   |   |   |   |   |
|                           |   | Net Carrying Value (1)  |   |   | Estimated Fair Value   |   |   | Net Carrying Value (1) |   |   | Estimated Fair Value |   |
|                           |   | (Amounts in thousands)  |   |
| Assets:                        |   |                    |   |   |                   |   |   |   |   |   |   |   |
| Cash and cash equivalents      |   | $                       | 1,486  |   |                   | $      | 1,486 |   |   | $ | 785 |   |   | $ | 785 |   |
| Securities available for sale  |   |                    | 2,872  |   |                   |   | 2,872 |   |   |   | 3,614 |   |   |   | 3,614 |   |
| Notes receivable held for sale |   |                    | 2,075  |   |                   |   | 2,171 |   |   |   | - |   |   |   | - |   |
| Notes receivable               |   |                    | 796    |   |                   |   | 810 |   |   |   | 2,881 |   |   |   | 2,973 |   |
|                           |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                   |   |                    |   |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage debt                  |   |                    | 14,668 |   |                   |   | 19,791 |   |   |   | 14,970 |   |   |   | 20,239 |   |

----

Index

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | continuing generally adverse economic and business conditions, which, among other things (a) affect the demand for apartments, retail and office space at properties owned by the Company or which are security for loans made by the Company and (b) affect the availability and creditworthiness of prospective tenants and the rental rates obtainable at the properties; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | continuing adverse conditions in the real estate markets, including a severe tightening of the availability of credit, which adversely affect the ability of the Company or the joint ventures in which the Company is a member to sell, or refinance the mortgages on, their properties and which may also affect the ability of prospective tenants to rent space at these properties; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | if the Board of Directors seeks shareholder approval of the sale of all or substantially all of the Company’s assets and the adoption of a plan of liquidation, the risk that such approval is not obtained, or if obtained, that management may not be able to execute the plan of liquidation; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | general risks of real estate ownership and operation; |
|--------|--------|-------------------------------------------------------|

|   | · | governmental actions and initiatives; |
|--------|--------|---------------------------------------|

|   | · | environmental and safety requirements; and |
|--------|--------|--------------------------------------------|

|   | · | failure to comply with continuing listing standards of the NYSE AMEX. |
|--------|--------|-----------------------------------------------------------------------|

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Index

|                                            |   | 2010   |      |   | 2009   |   |
|-------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                            |   |   |      |   |   |   |
| Income (loss) from discontinued operations:     |   |   |      |   |   |   |
|                                            |   |   |      |   |   |   |
| Building Industries Center, White Plains, NY    |   | $      | (30,435   | )      |   | $      | (28,375 | ) |
| Mapletree Industrial Center, Palmer, MA         |   |   | 70,814    |   |   |   | 62,466 |   |
| Cooperative apartment units, Riverdale, NY      |   |   | -         |   |   |   | (3,304 | ) |
| Cooperative apartment units, New York, NY       |   |   | -         |   |   |   | 163 |   |
|                                            |   |   |      |   |   |   |   |   |
| Income from discontinued operations             |   |   | 40,379    |   |   |   | 30,950 |   |
|                                            |   |   |      |   |   |   |   |   |
| Net gain from sales of discontinued operations: |   |   |      |   |   |   |   |   |
|                                            |   |   |      |   |   |   |   |   |
| Building Industries Center, White Plains, NY    |   |   | 1,764,313 |   |   |   | - |   |
| Cooperative apartment units, Riverdale, NY      |   |   | -         |   |   |   | - |   |
| Cooperative apartment units, New York, NY       |   |   | -         |   |   |   | - |   |
|                                            |   |   |      |   |   |   |   |   |
| Net gain from sale of discontinued operations   |   |   | 1,764,313 |   |   |   | - |   |
|                                            |   |   |      |   |   |   |   |   |
| Total income from discontinued operations       |   | $      | 1,804,692 |   |   | $      | 30,950 |   |

----

Index

|                                            |   | 2010   |      |   | 2009   |   |
|-------------------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                            |   |   |      |   |   |   |
| Income (loss) from discontinued operations:     |   |   |      |   |   |   |
|                                            |   |   |      |   |   |   |
| Building Industries Center, White Plains, NY    |   | $      | (82,593   | )      |   | $      | (77,100 | ) |
| Mapletree Industrial Center, Palmer, MA         |   |   | 182,272   |   |   |   | 197,363 |   |
| Cooperative apartment units, Riverdale, NY      |   |   | (2,266    | )      |   |   | (10,206 | ) |
| Cooperative apartment units, New York, NY       |   |   | (842      | )      |   |   | 556 |   |
| Crown Court, New Haven, CT                      |   |   | -         |   |   |   | 44,468 |   |
|                                            |   |   |      |   |   |   |   |   |
| Income from discontinued operations             |   |   | 96,571    |   |   |   | 155,081 |   |
|                                            |   |   |      |   |   |   |   |   |
| Net gain from sales of discontinued operations: |   |   |      |   |   |   |   |   |
|                                            |   |   |      |   |   |   |   |   |
| Building Industries Center, White Plains, NY    |   |   | 1,764,313 |   |   |   |   |   |
| Cooperative apartment units, Riverdale, NY      |   |   | 63,827    |   |   |   | - |   |
| Cooperative apartment units, New York, NY       |   |   | 235,414   |   |   |   | - |   |
| Crown Court, New Haven, CT                      |   |   | -         |   |   |   | 3,208,336 |   |
|                                            |   |   |      |   |   |   |   |   |
| Net gain from sales of discontinued operations  |   |   | 2,063,554 |   |   |   | 3,208,336 |   |
|                                            |   |   |      |   |   |   |   |   |
| Total income from discontinued operations       |   | $      | 2,160,125 |   |   | $      | 3,363,417 |   |

----

Index

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Index

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Index

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Index

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Index

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Index

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Index

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Index

|           |   | Balance at December 31,2009 |      |   | Equity in the Loss from Joint Ventures |   |     | Balance at September 30,2010 |   |
|----------------|--------|----------------------------------|-----------|--------|----------------------------------------|--------|----------|-----------------------------------|--------|
|           |   |                             |      |   |                                   |   |     |                              |   |
| IATG (1)       |   | $                                | 2,595,603 |   |                                   | $      | (614,724 | )                                 |   | $ | 1,980,879 |   |
| Shawnee/Brazos |   |                             |      |   |                                   |   |     |                              |   |   |   |   |
| Malls (2)      |   |                             | -         |   |                                   |   | -        |                              |   |   | - |   |
|           |   |                             |      |   |                                   |   |     |                              |   |   |   |   |
|           |   | $                                | 2,595,603 |   |                                   | $      | (614,724 | )                                 |   | $ | 1,980,879 |   |

|           |   | Three Months Ended |     |   | Nine Months Ended |   |
|----------------|--------|--------------------|----------|--------|-------------------|--------|
|           |   | September 30,      |     |   | September 30,     |   |
|           |   | 2010               |     |   | 2009              |   |   | 2010 |   |   | 2009 |   |
|           |   |               |     |   |              |   |   |   |   |   |   |   |
| IATG (1)       |   | $                  | (205,355 | )      |              | $      | (201,787 | ) |   | $ | (614,724 | ) |   | $ | (429,629 | ) |
| Shawnee/Brazos |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Malls (2)      |   |               | -        |   |              |   | (264,340 | ) |   |   | - |   |   |   | (622,376 | ) |
|           |   |               |     |   |              |   |   |   |   |   |   |   |   |   |   |   |
|           |   | $                  | (205,355 | )      |              | $      | (466,127 | ) |   | $ | (614,724 | ) |   | $ | (1,052,005 | ) |

----

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Index

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

| ITEM 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

|   | a) | As of the end of the period covered by this quarterly report on Form 10-Q, the Company carried out an evaluation, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures.  Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective in timely alerting them to material information required to be included in this report. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | There has been no change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter that has materially affected or is reasonably likely to materially affect the Company’s internal control over financial reporting. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 6. | Exhibits |
|---------|----------|

|   | 31.1 | Certification of Chief Executive Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer of the Company pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                    | PRESIDENTIAL REALTY CORPORATION                                                                                                                         |
|-------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|                    |                         (Registrant) |
|                    |                                                                                                                                                    |   |
|                    |                                                                                                                                                    |   |
| DATE: November 10, 2010 | By:                                                                                                                                                     | /s/ Jeffrey F. Joseph |
|                    |                                                                                                                                                    | Jeffrey F. Joseph |
|                    |                                                                                                                                                    | President and Chief Executive Officer |
|                    |                                                                                                                                                    |   |
|                    |                                                                                                                                                    |   |
| DATE: November 10, 2010 | By:                                                                                                                                                     | /s/ Elizabeth Delgado |
|                    |                                                                                                                                                    | Elizabeth Delgado |
|                    |                                                                                                                                                    | Treasurer |

----