SECURITIES AND EXCHANGE COMMISSION

                          Washington, D.C.  20549

                                 FORM 10-Q

(Mark One)


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

For the quarterly period ended  September 30, 2000
                                ------------------

                                    OR


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

For the transition period from                  to

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


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

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

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

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

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes    x      No
                                                     ------        ------

The number of shares outstanding of each of the issuer's classes of common stock
as of the close of business  on  November 6, 2000 was 478,940  shares of Class A
common and 3,225,070 shares of Class B common.










              PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES




                              Index to Form 10-Q

                          For the Nine Months Ended

                               September 30, 2000



Part I - Financial Information (Unaudited)

     Consolidated Balance Sheets

     Consolidated Statements of Operations

     Consolidated Statements of Cash Flows

     Notes to Consolidated Financial Statements

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

Part II - Other Information

     Item 6.  Exhibits and Reports on Form 8-K







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



Assets                                                                           September 30,               December 31,
                                                                                     2000                        1999
                                                                               ------------------          -----------------
<S>                                                                            <C>                         <C>
  Real estate (Note 2)                                                               $63,404,954                $35,647,633
    Less: accumulated depreciation                                                     9,374,323                  8,231,480
                                                                               ------------------          -----------------

  Net real estate                                                                     54,030,631                 27,416,153
                                                                               ------------------          -----------------

  Mortgage portfolio (Note 3):
    Sold properties                                                                   28,353,320                 28,481,797
    Related parties                                                                    1,464,258                  1,574,028
                                                                               ------------------          -----------------

    Total mortgage portfolio                                                          29,817,578                 30,055,825
                                                                               ------------------          -----------------

  Less discounts:
    Sold properties                                                                    1,675,664                  1,837,722
    Related parties                                                                      116,930                    132,073
                                                                               ------------------          -----------------

    Total discounts                                                                    1,792,594                  1,969,795
                                                                               ------------------          -----------------

  Less deferred gains:
    Sold properties                                                                   11,304,373                 11,320,373
    Related parties                                                                      890,578                    908,343
                                                                               ------------------          -----------------

    Total deferred gains                                                              12,194,951                 12,228,716
                                                                               ------------------          -----------------

  Net mortgage portfolio (of which $1,388,873 in 2000
    and $127,803 in 1999 are due within one year)                                     15,830,033                 15,857,314
                                                                               ------------------          -----------------

  Minority partners' interest (Note 4)                                                 7,864,729                  7,904,533
  Prepaid expenses and deposits in escrow                                              2,106,259                  1,434,079
  Other receivables (net of valuation allowance of
    $157,495 in 2000 and $139,822 in 1999)                                               737,251                    494,220
  Securities available for sale (Note 5)                                                   5,112                  2,299,494
  Cash and cash equivalents                                                            1,912,671                  7,014,542
  Other assets                                                                         2,018,666                  1,641,095
                                                                               ------------------          -----------------

  Total Assets                                                                       $84,505,352                $64,061,430
                                                                               ==================          =================





See notes to consolidated financial statements.
</TABLE>



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

Liabilities and Stockholders' Equity

                                                                                 September 30,     December 31,
                                                                                    2000                 1999
                                                                                --------------      ---------------
<S>                                                                             <C>                 <C>
      Liabilities:
        Mortgage debt (of which $609,131 in 2000 and
         $1,338,491 in 1999 are due within one year) (Note 6)                     $59,992,469          $39,379,458
        Executive pension plan liability                                            1,518,529            1,479,185
        Accrued liabilities                                                         2,063,876            1,637,069
        Accrued taxes payable                                                                              220,500
        Accrued postretirement costs                                                  515,597              538,398
        Deferred income                                                               145,972               46,533
        Accounts payable                                                              431,198              414,195
        Distribution payable on common stock                                          592,588
        Other liabilities                                                             912,855              799,490
                                                                                --------------      ---------------

      Total Liabilities                                                            66,173,084           44,514,828
                                                                                --------------      ---------------


      Stockholders' Equity:
        Common stock; par value $.10 per share
          Class A, authorized 700,000 shares, issued and
            outstanding 478,940 shares                                                 47,894               47,894
          Class B             September 30, 2000          December 31, 1999           322,599              321,240
           -----------        -------------------         -----------------
          Authorized:                 10,000,000                 10,000,000
          Issued:                      3,225,994                  3,212,402
          Treasury:                        1,258                      1,258

       Additional paid-in capital                                                   2,654,442            2,573,281
       Retained earnings                                                           15,690,144           17,209,589
       Net unrealized gain(loss)on securities available for sale (Notes 5 and 8)        1,517             (221,074)
       Class B, treasury stock (at cost)                                              (16,828)             (16,828)
       Notes receivable for exercise of stock options                                (367,500)            (367,500)
                                                                                --------------      ---------------

      Total Stockholders' Equity                                                   18,332,268           19,546,602
                                                                                --------------      ---------------

      Total Liabilities and Stockholders' Equity                                  $84,505,352          $64,061,430
                                                                                ==============      ===============




See notes to consolidated financial statements.
</TABLE>



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




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

                                                                                   2000               1999
                                                                              ---------------     --------------
Income:
<S>                                                                              <C>                 <C>
  Rental                                                                         $10,619,587         $7,900,449
  Interest on mortgages - sold properties                                          2,255,466          2,209,995
  Interest on wrap mortgages                                                                            528,173
  Interest on mortgages - related parties                                            155,460            202,661
  Investment income                                                                  202,697            542,844
  Other                                                                               33,707             66,648
                                                                              ---------------     --------------

Total                                                                             13,266,917         11,450,770
                                                                              ---------------     --------------

Costs and Expenses:
  General and administrative                                                       2,037,887          2,033,085
  Interest on note payable and other                                                                    227,952
  Interest on wrap mortgage debt                                                                         54,586
  Amortization of  loan acquisition costs                                                                 3,128
  Depreciation on non-rental property                                                 17,615             19,085
  Rental property:
    Operating expenses                                                             4,631,845          3,491,948
    Interest on mortgages                                                          3,098,629          2,222,652
    Real estate taxes                                                                885,539            689,237
    Depreciation on real estate                                                    1,143,703            750,240
    Amortization of mortgage costs                                                    65,037            255,967
    Minority interest share of partnership income                                    447,737            420,975
                                                                              ---------------     --------------

Total                                                                             12,327,992         10,168,855
                                                                              ---------------     --------------


Income before net gain (loss) from sales of properties, notes and securities        938,925          1,281,915

Net gain (loss) from sales of properties, notes and securities (includes
  a provision for Federal and State taxes of $1,566,474 in 1999)                    (91,250)         7,804,493
                                                                              ---------------     --------------

Net Income                                                                         $847,675         $9,086,408
                                                                              ===============     ==============


Earnings per Common Share (basic and diluted) (Note 1-C):
  Income before net gain (loss) from sales of properties, notes and securities        $0.25              $0.35

  Net gain (loss) from sales of properties, notes and securities                      (0.02)              2.16
                                                                              ---------------     --------------

Net Income per Common Share                                                           $0.23              $2.51
                                                                              ===============     ==============

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

Weighted Average Number of Shares Outstanding                                     3,696,605          3,616,119
                                                                              ===============     ==============



See notes to consolidated financial statements.
</TABLE>



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




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

                                                                               2000               1999
                                                                          ---------------     --------------
Income:
<S>                                                                           <C>                <C>
  Rental                                                                      $3,876,116         $2,683,844
  Interest on mortgages - sold properties                                        765,820            786,947
  Interest on mortgages - related parties                                         65,539             57,674
  Investment income                                                               38,630            204,792
  Other                                                                            9,006             13,180
                                                                          ---------------     --------------

Total                                                                          4,755,111          3,746,437
                                                                          ---------------     --------------

Costs and Expenses:
  General and administrative                                                     658,020            667,735
  Interest on note payable and other                                                                 12,862
  Depreciation on non-rental property                                              6,155              6,362
  Rental property:
    Operating expenses                                                         1,799,426          1,200,908
    Interest on mortgages                                                      1,166,542            739,013
    Real estate taxes                                                            317,233            258,511
    Depreciation on real estate                                                  439,574            258,618
    Amortization of mortgage costs                                                21,711             15,997
    Minority interest share of partnership income                                126,970            163,526
                                                                          ---------------     --------------

Total                                                                          4,535,631          3,323,532
                                                                          ---------------     --------------


Income before net gain from sales of properties, notes and securities            219,480            422,905

Net gain from sales of properties, notes and securities                           22,070              5,494
                                                                          ---------------     --------------

Net Income                                                                      $241,550           $428,399
                                                                          ===============     ==============


Earnings per Common Share (basic and diluted) (Note 1-C):
  Income before net gain from sales of properties, notes and securities            $0.06              $0.11

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

Net Income per Common Share                                                        $0.07              $0.11
                                                                          ===============     ==============

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

Weighted Average Number of Shares Outstanding                                  3,700,994          3,622,733
                                                                          ===============     ==============



See notes to consolidated financial statements.
</TABLE>





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


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

                                                                                2000                 1999
                                                                           ---------------      ----------------
 Cash Flows from Operating Activities:
<S>                                                                           <C>                    <C>
   Cash received from rental properties                                       $10,664,890            $7,962,377
   Interest received                                                            2,342,276             2,900,941
   Miscellaneous income                                                            31,836                58,740
   Interest paid on rental property mortgages                                  (3,016,951)           (2,232,799)
   Interest paid on wrap mortgage debt                                                                  (54,586)
   Interest paid on note payable and other                                                             (201,234)
   Cash disbursed for rental property operations                               (5,811,081)           (3,508,487)
   Cash disbursed for general and administrative costs                         (1,518,723)           (1,477,682)
                                                                           ---------------      ----------------

 Net cash provided by operating activities                                      2,692,247             3,447,270
                                                                           ---------------      ----------------


 Cash Flows from Investing Activities:
   Payments received on notes receivable                                          253,301             2,141,403
   Proceeds from sale of notes receivable                                                            20,331,599
   Payments disbursed for deferred sales commission                                                  (1,000,000)
   Payments of taxes payable on gain from sale of notes                          (220,500)
   Payments disbursed for additions and improvements                             (504,290)             (756,906)
   Purchase of property                                                       (27,275,886)
   Proceeds from sale of property                                                  69,979                91,452
   Purchases of securities                                                                           (8,120,738)
   Proceeds from sales of securities                                            2,331,119
                                                                           ---------------      ----------------

 Net cash (used in) provided by investing activities                          (25,346,277)           12,686,810
                                                                           ---------------      ----------------

 Cash Flows from Financing Activities:
   Principal payments on mortgage debt:
     Properties owned                                                          (1,286,989)             (308,674)
     Wrap mortgage debt on sold properties                                                             (156,222)
   Mortgage debt payment from proceeds of mortgage refinancing                                       (3,120,190)
   Mortgage proceeds                                                           21,900,000             3,195,500
   Repayment of wrap mortgage debt                                                                   (2,300,000)
   Mortgage costs paid                                                           (350,094)              (82,824)
   Principal payments on note payable                                                               (10,395,361)
   Cash distributions on common stock                                          (2,367,120)           (2,315,307)
   Proceeds from dividend reinvestment and share purchase plan                     64,295                80,832
   Distributions to minority partners                                            (407,933)             (812,676)
                                                                           ---------------      ----------------

 Net cash provided by (used in)  financing activities                          17,552,159           (16,214,922)
                                                                           ---------------      ----------------


 Net Decrease in Cash and Cash Equivalents                                     (5,101,871)              (80,842)

 Cash and Cash Equivalents, Beginning of Period                                 7,014,542             1,764,465
                                                                           ---------------      ----------------

 Cash and Cash Equivalents, End of Period                                      $1,912,671            $1,683,623
                                                                           ===============      ================



 See notes to consolidated financial statements.
</TABLE>




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


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

                                                                                     2000                    1999
                                                                                ---------------          -------------

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

Net Income                                                                            $847,675             $9,086,408
                                                                                ---------------          -------------


Adjustments  to  reconcile   net  income  to  net
  cash  provided  by  operating activities:
    Depreciation and amortization                                                    1,226,355              1,028,420
    Losses (gains) from sales of properties, notes and securities                       91,250             (7,804,493)
    Issuance of treasury stock for fees and expenses                                                           16,133
    Amortization of discounts on notes and fees                                       (299,927)              (590,011)
    Minority share of partnership income                                               447,737                420,975
Changes in assets and liabilities:
    Increase in accounts receivable                                                   (135,360)               (74,174)
    Increase in accounts payable and accrued liabilities                               460,353                388,981
    Increase (decrease) in deferred income                                              99,439                (61,283)
    Decrease (increase) in prepaid expenses, deposits in escrow
      and deferred charges                                                            (661,268)               454,663
    Increase in security deposit liabilities                                            11,608                  9,665
    Distribution payable on common stock                                               592,588                580,154
    Other                                                                               11,797                 (8,168)
                                                                                ---------------          -------------

Total adjustments                                                                    1,844,572             (5,639,138)
                                                                                ---------------          -------------


Net cash provided by operating activities                                           $2,692,247             $3,447,270
                                                                                ===============          =============


Supplemental noncash disclosures:

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




See notes to consolidated financial statements.
</TABLE>




PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

All significant intercompany balances and transactions have been eliminated.

C. Net  Income  Per  Share - Basic net  income  per share  data is  computed  by
dividing the net income by the weighted  average number of shares of Class A and
Class B common stock outstanding during each period.  Basic net income per share
and diluted  income per share are the same for the nine months  ended  September
30, 2000 and 1999. The dilutive effect of stock options is calculated  using the
treasury stock method.

D. Basis of Presentation - The accompanying unaudited consolidated financial
statements have been prepared in accordance with accounting principles generally
accepted in the United States of America for interim financial  information.  In
the opinion of management,  all adjustments (consisting of only normal recurring
accruals)  considered  necessary for a fair  presentation of the results for the
respective periods have been reflected.  These consolidated financial statements
and  accompanying  notes should be read in  conjunction  with the Company's Form
10-K for the year ended December 31, 1999.

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

2. REAL ESTATE

   Real estate is comprised of the following:
                                            September  30,     December 31,
                                                2000               1999
                                            -------------       ------------

Land                                        $ 9,599,970         $ 5,461,173
Buildings and leaseholds                     53,471,613          29,909,205
Furniture and equipment                         333,371             277,255
                                            -----------         -----------

Total real estate                           $63,404,954         $35,647,633
                                            ===========         ===========

In March,  2000,  the Company  purchased  two apartment  properties,  Farrington
Apartments,  a 224 unit garden  apartment  property in  Clearwater,  Florida and
Preston  Lake  Apartments,  a 320 unit  garden  apartment  property  in  Tucker,
Georgia.  The  purchase  price  for  the  Farrington   Apartments  property  was
$9,630,950 and the purchase price for the Preston Lake Apartments property was
$17,450,000. Additional acquisition costs for these properties were $165,471 and
$29,465,  respectively.  In connection  with the purchase of these two apartment
properties,  the  Company  obtained  first  mortgage  loans  of  $7,900,000  and
$14,000,000, respectively.

3. MORTGAGE PORTFOLIO

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

Notes receivable - sold properties consist of:

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

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

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

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

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

At September 30, 2000, all of the notes in the Company's  mortgage portfolio are
current.

4. MINORITY PARTNERS' INTEREST

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

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

Minority partners' interest is comprised of the following:

                                                September 30,    December 31,
                                                    2000             1999
                                                -------------    ------------
Home Mortgage Partnership                        $8,061,789      $8,112,127
UTB Associates                                     (197,060)       (207,594)
                                                 ----------      ----------

Total minority partners' interest                $7,864,729      $7,904,533
                                                 ==========      ==========

5. SECURITIES AVAILABLE FOR SALE

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

                                                September 30,   December 31,
                                                   2000             1999
                                                -------------   ------------
Cost                                              $3,595        $2,520,568
Gross unrealized gains                             1,550             1,824
Gross unrealized losses                              (33)         (222,898)
                                                  ------        ----------

Fair value                                        $5,112        $2,299,494
                                                  ======        ==========


During the nine months ended  September  30, 2000,  the Company sold  securities
available for sale for gross  proceeds of $2,331,119 and a net loss of $185,854.
This net loss was  composed  of a gross  loss of  $188,160  and a gross  gain of
$2,306.  During the nine months ended September 30, 1999, there were no sales of
securities available for sale.

6. MORTGAGE DEBT

In  connection  with the  purchase of  Farrington  Apartments  and Preston  Lake
Apartments  in  March,   2000,   the  Company   obtained  first  mortgage  loans
collateralized by the properties as follows:

                           Mortgage   Interest   Monthly   Maturity    Balloon
Property                     Loan       Rate     Payment     Date      Payment
--------                   --------   -------    -------   --------    -------
Farrington Apartments   $ 7,900,000    8.25%   $ 59,350   5/1/2010  $ 7,106,299
Preston Lake Apartments  14,000,000    8.15%    104,195   5/1/2010   12,564,077

In May, 2000, the mortgage on the Company's Building  Industries Center property
became  due and the  Company  made a  $901,689  balloon  payment  to  repay  the
mortgage.

7. INCOME TAXES

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

Upon  filing the  Company's  income tax return for the year ended  December  31,
1999,  Presidential  applied its available 1999 stockholders'  distributions and
elected  to apply  (under  Section  858 of the  Internal  Revenue  Code) all but
approximately $87,000 of its year 2000 stockholders' distributions to reduce its
taxable  income for 1999 to zero.  For the year ended  December  31,  1999,  the
Company retained  undistributed  capital gains designated as paid (under Section
857(b)(3)(D))in the amount of $630,000 ($.17 per share) and paid income taxes of
$220,500 in January, 2000 on that retained gain.

Furthermore,   the  Company  had  taxable   income  (before   distributions   to
stockholders) for the nine months ended September 30, 2000 of approximately
$542,000  ($.15 per  share),  which is net of  capital  losses of  approximately
$78,000 ($.02 per share). This amount will be reduced by 2000 distributions that
were not  utilized in reducing  the  Company's  1999  taxable  income and by any
eligible 2001 distributions that the Company may elect to utilize as a reduction
of its 2000 taxable income.

Presidential  intends to continue to  maintain  its REIT status and  although no
assurances can be given at this time, the Company  expects that it will not have
to pay  Federal  income  taxes for 2000  because  its  present  intention  is to
distribute  all of its 2000 taxable income during 2000 and 2001.  Therefore,  no
provision for income taxes has been made at September 30, 2000.

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

8. COMPREHENSIVE INCOME

The Company's  only element of other  comprehensive  income is the change in the
unrealized  gain (loss) on the Company's  securities  available for sale.  Thus,
comprehensive  income,  which  consists  of  net  income  plus  or  minus  other
comprehensive  income, for the nine months ended September 30, 2000 and 1999 was
$1,070,266 and $7,995,829, respectively.

9. COMMITMENTS AND CONTINGENCIES

Presidential  is not a party to any material legal  proceedings  except as noted
below.

UTB Associates,  a partnership in which the Company holds a 66-2/3% interest, is
a tenant under a lease (the "Professional Space Lease") of 24,400 square feet of
professional office space at University Towers, a cooperative apartment building
in New Haven,  Connecticut.  UTB Associates  sublets the  professional  space to
unrelated  parties.   In  June,  1999,   University  Towers  Owners  Corp.,  the
cooperative corporation, filed a petition for reorganization under Chapter 11 of
the U.S.  Bankruptcy Code in the United States Bankruptcy Court for the District
of Connecticut,  New Haven division. As part of the bankruptcy  proceedings,  in
July, 1999 the cooperative corporation filed an Adversary Proceeding against UTB
Associates for termination of the Professional Space Lease and damages primarily
based on claims arising under  Connecticut  law. The Company has been advised by
its litigation  counsel that there are meritorious  defenses to the claim raised
by the cooperative corporation and that if these defenses are successful,  it is
unlikely  that the  Professional  Space  Lease  will be  terminated  or that any
damages  will be  assessed  against  UTB  Associates.  However,  in light of the
uncertainties of litigation, no assurances can be given as to the outcome of the
litigation.  The Company's financial  statements reflect a loss of approximately
$44,000 from the  Professional  Space Lease for the period ended  September  30,
2000 and income of  approximately  $49,000 for the period  ended  September  30,
1999.

In addition,  the Company may be a party to routine litigation incidental to the
ordinary course of its business.

In the opinion of  management,  all of the Company's  properties  are adequately
covered by insurance in accordance with normal insurance practices.  The Company
is not aware of any environmental issues at any of its properties. The presence,
with or without the Company's  knowledge,  of hazardous substances at any of its
properties could have an adverse effect on the Company's  operating  results and
financial condition.


PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999

Results of Operations

Financial Information for the nine months ended September 30, 2000 and 1999:
----------------------------------------------------------------------------

Revenue  increased  by  $1,816,147  primarily as a result of increases in rental
income,  offset  by  decreases  in  interest  on  wrap  mortgages,  interest  on
mortgages-related parties, investment income and other income.

Rental income  increased by $2,719,138  primarily as a result of the purchase of
Farrington  Apartments  and  Preston  Lake  Apartments  in  March,  2000,  which
increased rental income by $2,301,051.  In addition,  rental income increased by
$173,602  at the Home  Mortgage  Plaza  property  and by  $244,485  at all other
properties.

Interest on wrap mortgages decreased by $528,173 as a result of the modification
of the New  Haven  wraparound  mortgage  notes in 1999 and the sale of the Grant
House wraparound mortgage note in 1999. As a result of these  transactions,  the
Company no longer holds any wraparound mortgage notes.

Interest on mortgages-related parties decreased by $47,201 primarily as a result
of the $61,413  decrease in interest  received on the Consolidated  Loans.  This
decrease was partially  offset by increases of $20,989 from the  amortization of
discounts  on the UTB End Loans as a result  of  prepayments  received  on those
loans in the 2000 period.

Investment  income  decreased  by $340,147  primarily as a result of the sale of
securities in the fourth quarter of 1999 and during 2000.

Other  income  decreased  by  $32,941  primarily  as a result of a  $30,750  fee
received in the 1999 period from the modification of the New Haven notes.

Costs and expenses  increased by  $2,159,137  primarily  due to increases in all
categories  of  rental  property  operations.  The  increases  were  due  to the
acquisitions  of  Farrington  Apartments  and Preston Lake  Apartments in March,
2000.  These  increases were partially  offset by a decrease in  amortization of
mortgage  costs, a decrease in interest  expense on note payable and other and a
decrease in interest expense on wrap mortgage debt.

Interest on note payable and other  decreased by $227,952  primarily as a result
of the repayment of the note payable in February, 1999.

Interest on wrap mortgage debt decreased by $54,586 as a result of the repayment
and sale of the wrap mortgage debts in 1999.

Rental  property  operating  expenses  increased by $1,139,897.  Rental property
operating  expenses for Farrington  Apartments and Preston Lake  Apartments were
$1,056,266.  Operating  expenses  increased by $148,566 at the University Towers
Professional Space property as a result of increased legal and professional fees
incurred in connection with the litigation  with University  Towers Owners Corp.
In addition, operating expenses at the Home Mortgage Plaza property increased by
$69,675  primarily  as a  result  of a  $54,212  increase  in bad  debts.  These
increases were offset by decreases of $128,291 at the Cambridge Green property.

Interest on  mortgages  increased  by $875,977.  Mortgage  interest  expense for
Farrington Apartments and Preston Lake Apartments was $945,376.  These increases
were partially  offset by a $39,825 decrease at the Building  Industries  Center
property as a result of the repayment of that mortgage in May of 2000.

Real  estate tax  expense  increased  by  $196,302.  Real estate tax expense for
Farrington Apartments and Preston Lake Apartments was $167,066.  Real estate tax
expense increased by $26,423 at the Continental  Gardens property as a result of
refunds for prior years' real estate  taxes which were  received in 1999 thereby
reducing 1999 expenses below that which was expected to recur.

Depreciation  on real estate  increased  by $393,463.  Depreciation  expense for
Farrington  Apartments and Preston Lake  Apartments  was $348,912.  Depreciation
expense  increased by $44,551 at all other  properties  as a result of additions
and improvements made to the properties.

Amortization  of mortgage costs  decreased by $190,930  primarily as a result of
the write-off in 1999 of unamortized  mortgage costs of $166,756 and the $31,200
prepayment penalty fee associated with the prior mortgage on the Cambridge Green
property which was refinanced in 1999.

Net gain from sales of  properties,  notes and  securities are sporadic (as they
depend on the timing of sales or the receipt of  installments  or prepayments on
purchase money notes). In 2000, the net loss from sales of properties, notes and
securities was $91,250 compared with a net gain of $7,804,493 in 1999:

Gain (loss) from sales recognized at September 30,      2000              1999
                                                        ----              ----
  Sales of mortgage notes:
    Fairfield Towers First and Second Mortgages
    (net of taxes of $1,566,474)                                      $6,050,740
    Grant House wraparound mortgage note                                 425,000
  Deferred gains recognized upon receipt of
    principal payments on notes:
    New Haven - $1,000,000 principal payment                           1,000,000
    Pinewood - $317,662 principal prepayment                             218,534
    Mark Terrace                                     $ 16,000
    Overlook                                           17,765             16,081
    Fairfield Towers Second Mortgage                                      19,466
 Sales of property:
    Sherwood House                                                        74,672
    Broad Park Lodge                                   60,839
  Sales of securities                                (185,854)
                                                     ---------       -----------
  Net gain (loss)                                    $(91,250)        $7,804,493
                                                     =========       ===========


Financial Information for the three months ended September 30, 2000 and 1999:
----------------------------------------------------------------------------

Revenue  increased  by  $1,008,674  primarily as a result of increases in rental
income, offset by a decrease in investment income.

Rental income  increased by $1,192,272  primarily as a result of the acquisition
of Farrington  Apartments and Preston Lake  Apartments,  which increased  rental
income by  $1,107,132.  In addition,  rental income  increased by $26,490 at the
Home Mortgage Plaza property and rental income at all other properties increased
by $58,650.

Investment income decreased by $166,162 as a result of the sale of securities in
the fourth quarter of 1999 and during 2000.

Costs and expenses  increased by  $1,212,099  primarily  due to increases in all
categories of rental property operating expenses. These increases were partially
offset by a decrease in minority  interest share of partnership  income.

Rental property  operating  expenses increased by $598,518 primarily as a result
of the addition of Farrington  Apartments and Preston Lake  Apartments  which
increased operating expenses by $559,200. In addition,  rental property
operating expenses increased by $100,965 at the University Towers  Professional
Space property as a result of increased legal and professional  fees. These
increases were offset by a $66,186 decrease in operating expenses at the
Cambridge Green property.

Interest  on  mortgages  increased  by  $427,529  primarily  as a result  of the
addition of Farrington  Apartments and Preston Lake  Apartments  which increased
mortgage  interest expense by $457,162.  This increase was partially offset by a
$22,941  decrease  in  mortgage  interest  at  the  Building  Industries  Center
property.

Real  estate  tax  expense  increased  by $58,722  primarily  as a result of the
addition of Farrington  Apartments and Preston Lake Apartments,  which increased
real estate tax expense by $79,472.  These increases were offset by decreases of
$20,196 at the Sunwood Apartments and Cambridge Green properties.

Depreciation on real estate  increased by $180,956  primarily as a result of the
addition of Farrington  Apartments and Preston Lake  Apartments  which increased
depreciation  expense by $171,791.  Depreciation  expense increased by $9,165 at
all other properties.

Minority interest share of partnership  income decreased by $36,556 primarily as
a result of a  decrease  in  partnership  income on the UTB  Professional  Space
property.

Net gain from sales of  properties,  notes and  securities are sporadic (as they
depend on the timing of sales or the receipt of  installments  or prepayments on
purchase money notes). In 2000, the net gain from sales of properties, notes and
securities was $22,070 compared with a net gain of $5,494 in 1999:

Gain from sales recognized at September 30,                   2000      1999
                                                              ----      ----
  Deferred gains recognized upon receipt of
    principal payments on notes:
    Mark Terrace                                            $16,000
    Overlook                                                  6,070    $5,494
                                                            --------   -------
  Net gain                                                  $22,070    $5,494
                                                            ========   =======

Funds From Operations

Funds from operations ("FFO") represents net income (computed in accordance with
generally accepted  accounting  principles)  ("GAAP"),  excluding gains (losses)
from  sales  of  properties,   notes  and  securities,   plus  depreciation  and
amortization  on real estate.  FFO is calculated in accordance with the National
Association of Real Estate Investment Trusts ("NAREIT") definition. FFO does not
represent cash generated from operating activities in accordance with GAAP which
is  disclosed  in the  Consolidated  Statements  of Cash Flows  included  in the
financial statements and is not necessarily indicative of cash available to fund
cash requirements. There are no material legal or functional restrictions on the
use of FFO. FFO should not be considered as an  alternative  to net income as an
indicator of the Company's  operating  performance  or as an alternative to cash
flows as a measure of liquidity. Management considers FFO a supplemental measure
of operating  performance  and along with cash flow from  operating  activities,
financing  activities and investing  activities,  it provides  investors with an
indication  of the  ability of the Company to incur and  service  debt,  to make
capital expenditures and to fund other cash requirements.

FFO, as calculated in accordance with the NAREIT definition, for the nine months
and  three  months  ended  September  30,  2000  and 1999 is  summarized  in the
following table:
                                Nine months ended            Three months ended
                                    September 30,                September 30,

                                  2000          1999         2000       1999
                               ----------    ----------    --------   ---------

Income before net gain
  (loss) from sales of
  properties, notes and
  securities                   $  938,925    $1,281,915    $219,480   $422,905
Depreciation and
  amortization on real
  estate                        1,143,703       750,240     439,574    258,618
                               ----------    ----------    --------   --------
Funds From Operations          $2,082,628    $2,032,155    $659,054   $681,523
                               ==========    ==========    ========   ========

Distributions paid to
  shareholders at
  September 30                 $1,774,532    $1,735,153
                               ==========    ==========

FFO payout ratio
  (Distributions paid)              85.2%         85.4%
                               ==========    ==========

Cash flows from:
Operating activities         $  2,692,247  $  3,447,270
                             ============  ============
Investing activities         $(25,346,277) $ 12,686,810
                             ============  ============
Financing activities         $ 17,552,159  $(16,214,922)
                             ============  ============

In addition,  distributions  of $592,588 and $580,154 were declared in the third
quarter of 2000 and 1999,  respectively.  These distributions are payable in the
fourth quarter of each year and are not included in the above FFO payout ratio.

Balance Sheet

Real estate  increased by  $27,757,321 as a result of the purchase of Farrington
Apartments and Preston Lake Apartments in March, 2000. The capitalized costs for
Farrington  Apartments,  a 224 unit garden  apartment  property  in  Clearwater,
Florida was $1,900,000  for land and $7,896,421 for buildings and  improvements.
The capitalized  costs for Preston Lake Apartments,  a 320 unit garden apartment
property  in  Tucker,  Georgia,  was  $2,240,000  for land and  $15,239,465  for
buildings and  improvements.  In addition,  net additions  and  improvements  to
properties were $481,435.

Prepaid  expenses  and deposits in escrow  increased by $672,180  primarily as a
result of the purchase of Farrington Apartments and Preston Lake Apartments.

Other  receivables  increased  by $243,031 as a result of increases of $7,617 in
tenants accounts receivables, increases of $123,630 in miscellaneous receivables
and an increase of $111,784 in accrued interest receivable.

Securities available for sale decreased by $2,294,382 as a result of the sale of
$2,516,973 in marketable equity securities, primarily interest-bearing corporate
preferred stocks,  offset by a $222,591 increase in the fair value of securities
available for sale.

Cash and cash equivalents  decreased by $5,101,871  primarily as a result of the
cash  utilized  for the  purchase of  Farrington  Apartments  and  Preston  Lake
Apartments.  In addition,  in the second quarter of 2000, the Company repaid the
$901,689 outstanding mortgage debt on its Building Industries Center property.

Other assets increased by $377,571  primarily due to increases in mortgage costs
and  tenant  security  deposits  as a  result  of  the  purchase  of  Farrington
Apartments and Preston Lake Apartments.

Mortgage debt increased by $20,613,011  primarily due to the $7,900,000 mortgage
on  Farrington   Apartments  and  the  $14,000,000   mortgage  on  Preston  Lake
Apartments.  This increase was partially offset by the $901,689 repayment of the
mortgage on the Building Industries Center property.

Accrued liabilities increased by $426,807 primarily due to increases in accruals
for real estate tax expense and mortgage interest expense.

Deferred  income  increased  by $99,439  primarily as a result of an increase of
$32,694 in deferred interest income and an increase of $69,295 in prepaid rents.

Other  liabilities  increased by $113,365  primarily as a result of increases of
$115,237 in tenant security deposits.

In March,  2000,  three directors of the Company were each given 1,000 shares of
the Company's Class B common stock as partial payment for directors fees for the
2000 year. The average market value for the previous month of the Class B common
stock,  on which the fees were based,  was $6.075 per share. As a result of this
transaction,  the  Company  recorded  $18,225 in prepaid  directors  fees (to be
amortized  during  2000) based on the  average  market  value of the stock.  The
Company recorded  additions to the Company's Class B common stock of $300 at par
value of $.10 per share and $17,925 to additional paid-in capital.

Net  unrealized  gain  (loss) on  securities  available  for sale  decreased  by
$222,591  primarily as a result of the sales of  securities in the first half of
2000 and an increase in the fair value of securities available for sale.

Forward-Looking Statements

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

Liquidity and Capital Resources

Management  believes  that the  Company  has  sufficient  liquidity  and capital
resources  to  carry  on its  existing  business  and,  barring  any  unforeseen
circumstances, to pay the dividends required to maintain REIT status in the
foreseeable future. In March, 2000, the Company purchased two new properties and
utilized a  substantial  portion of its  available  funds,  as well as obtaining
mortgage  financing  for the purchase of these  properties.  Except as discussed
herein,  management is not aware of any other  trends,  events,  commitments  or
uncertainties that will have a significant effect on liquidity.

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

At September 30, 2000, Presidential had $1,912,671 in available cash and cash
equivalents,  a decrease of $5,101,871 from the $7,014,542 at December 31, 1999.
This  decrease in cash and cash  equivalents  was due to cash used in  investing
activities of  $25,346,277,  offset by cash provided by operating  activities of
$2,692,247 and financing activities of $17,552,159.

Operating Activities

Presidential's principal source of cash from operating activities is from
interest on its mortgage  portfolio,  which was $2,342,276 in 2000. In 2000, net
cash received from rental property  operations was  $1,428,925,  which is net of
distributions  from  partnership  operations  to  minority  partners  but before
additions and improvements and mortgage amortization.

Investing Activities

Presidential  holds a portfolio  of mortgage  notes  receivable,  which  consist
primarily of notes arising from sales of real properties previously owned by
the Company. During 2000, the Company received principal payments of $253,301 on
its mortgage  portfolio of which  $143,636  represented  prepayments,  which are
sporadic and cannot be relied upon as a regular source of liquidity.

In March,  2000, the Company  purchased  Farrington  Apartments and Preston Lake
Apartments for a purchase price of $9,630,950 and $17,450,000, respectively. The
Company   obtained  first   mortgage   loans  of  $7,900,000  and   $14,000,000,
respectively, which are collateralized by the properties.

During 2000, the Company invested  $504,290 in additions and improvements to its
properties.

Financing Activities

The Company's indebtedness at September 30, 2000, consisted of $59,992,469 of
mortgage  debt.  The  mortgage  debt,  which  is  collateralized  by  individual
properties,  is  nonrecourse  to the Company with the  exception of the $248,650
Mapletree  Industrial  Center mortgage,  which is collateralized by the property
and a guarantee of repayment by Presidential. In addition, some of the Company's
mortgages  provide for personal  liability for damages  resulting from specified
acts  or  circumstances,  such  as  for  environmental  liabilities  and  fraud.
Generally,  mortgage  debt  repayment  is  serviced  with  cash  flow  from  the
operations  of  the  individual  properties.   During  2000,  the  Company  made
$1,286,989 of principal  payments on mortgage  debt.  Included in the $1,286,989
principal  payments on mortgage debt was a balloon  payment of $901,689 that the
Company paid in May, 2000 on the outstanding mortgage on its Building Industries
Center property.

In  connection  with the  purchase of  Farrington  Apartments  and Preston  Lake
Apartments  in  March,   2000,   the  Company   obtained  first  mortgage  loans
collateralized by the properties as follows:

                             Mortgage   Interest   Monthly   Maturity    Balloon
Property                       Loan       Rate     Payment     Date      Payment
--------                     --------   --------   -------   --------    -------
Farrington Apartments     $ 7,900,000    8.25%  $ 59,350   5/1/2010  $ 7,106,299
Preston Lake Apartments    14,000,000    8.15%   104,195   5/1/2010   12,564,077


In addition,  the Company  paid  mortgage  costs of $350,094  for the  mortgages
obtained for the new properties.  These mortgage costs were capitalized to other
assets  and  will be  amortized  over  the life of the  mortgages  applying  the
interest method.

The mortgages on the Company's  properties  are at fixed rates of interest.  The
majority  of the  mortgages  have  balloon  payments  due at  maturity  with the
exception of four mortgages which are self-liquidating.

During 2000,  Presidential  declared cash distributions of $2,367,120 (including
$592,588  payable  in the  fourth  quarter)  to its  shareholders  and  received
proceeds from its dividend reinvestment and share purchase plan of $64,295.


PART II - OTHER INFORMATION



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

(a)   Exhibit 27.  Financial Data Schedule.

(b) No reports on Form 8-K were filed  during the quarter  ended  September  30,
2000.


SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


PRESIDENTIAL REALTY CORPORATION
       (Registrant)


DATE:  November 10, 2000         By:  /s/ Jeffrey F. Joseph
                                      ---------------------
                                      Jeffrey F. Joseph
                                      President



DATE:  November 10, 2000         By:  /s/ Elizabeth Delgado
                                      ---------------------
                                      Elizabeth Delgado
                                      Treasurer