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   June 30, 1999
                                ----------------

                                    OR


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

For the transition period from                  to

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


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

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

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

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

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

The number of shares outstanding of each of the issuer's classes of common stock
as of the close of  business  on August  6, 1999 was  478,940  shares of Class A
common and 3,142,418 shares of Class B common.













              PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES




                              Index to Form 10-Q

                          For the Six Months Ended

                                June 30, 1999



Part I - Financial Information (Unaudited)


     Consolidated Balance Sheets

     Consolidated Statements of Operations

     Consolidated Statements of Cash Flows

     Notes to Consolidated Financial Statements

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

Part II - Other Information

     Item 6.  Exhibits and Reports on Form 8-K













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



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

  Mortgage portfolio (Note 2):
    Sold properties, accrual                                                               $28,762,713                $43,440,675
    Related parties, accrual                                                                 1,618,101                  1,698,982
    Sold properties, impaired                                                                                          17,589,027
                                                                                     ------------------         ------------------

    Total mortgage portfolio                                                                30,380,814                 62,728,684
                                                                                     ------------------         ------------------

  Less discounts:
    Sold properties, accrual                                                                 2,077,083                  4,049,630
    Related parties, accrual                                                                   138,646                    149,685
    Sold properties, impaired                                                                                           7,597,138
                                                                                     ------------------         ------------------

    Total discounts                                                                          2,215,729                 11,796,453
                                                                                     ------------------         ------------------

  Less deferred gains:
    Sold properties, accrual                                                                11,320,373                 12,538,907
    Related parties, accrual                                                                   919,470                    930,057
    Sold properties, impaired                                                                                           6,362,838
                                                                                     ------------------         ------------------

    Total deferred gains                                                                    12,239,843                 19,831,802
                                                                                     ------------------         ------------------

  Net mortgage portfolio (of which $277,244 in 1999
    and $931,393 in 1998 are due within one year)                                           15,925,242                 31,100,429
                                                                                     ------------------         ------------------


  Real estate (Note 3)                                                                      35,173,585                 34,703,657
    Less: accumulated depreciation                                                           7,715,051                  7,231,639
                                                                                     ------------------         ------------------

  Net real estate                                                                           27,458,534                 27,472,018
                                                                                     ------------------         ------------------


  Minority partners' interest (Note 4)                                                       7,700,968                  7,552,743
  Prepaid expenses and deposits in escrow                                                    2,225,946                  2,130,214
  Other receivables (net of valuation allowance of
    $124,469 in 1999 and $120,102 in 1998)                                                     725,161                    623,521
  Securities available for sale (Note 5)                                                     8,845,074                  1,274,734
  Cash and cash equivalents                                                                  1,642,598                  1,764,465
  Other assets                                                                               1,656,619                  1,988,121
                                                                                     ------------------         ------------------

  Total Assets                                                                             $66,180,142                $73,906,245
                                                                                     ==================         ==================





  See notes to consolidated financial statements.
</TABLE>









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

Liabilities and Stockholders' Equity

                                                                                         June 30,                   December 31,
                                                                                           1999                         1998
                                                                                       ----------------           ------------------
<S>                                                                                    <C>                          <C>

      Liabilities:
        Mortgage debt (Note 6):
          Properties owned                                                                 $39,597,251                  $39,728,031
          Wrap mortgage debt on sold properties                                                                           4,668,462
                                                                                     -----------------           ------------------

        Total (of which $1,335,642 in 1999 and $905,305
          in 1998 are due within one year)                                                  39,597,251                   44,396,493

        Note payable to bank (Note 7)                                                                                    10,395,361
        Executive pension plan liability                                                     1,488,539                    1,496,357
        Accrued liabilities                                                                  1,646,038                    2,630,564
        Accrued taxes payable (Note 8)                                                       1,566,474
        Accrued postretirement costs                                                           554,828                      562,167
        Deferred income                                                                        151,988                      565,713
        Accounts payable                                                                       341,327                      235,807
        Other liabilities                                                                      789,254                      772,949
                                                                                    ------------------           ------------------

      Total Liabilities                                                                     46,135,699                   61,055,411
                                                                                    ------------------           ------------------


      Stockholders' Equity:
        Common stock; par value $.10 per share
          Class A, authorized 700,000 shares, issued and
            outstanding 478,940 shares                                                          47,894                       47,894
          Class B                  June 30, 1999           December 31, 1998                   314,291                      313,609
           -----------          --------------------       -----------------
          Authorized:                 10,000,000                  10,000,000
          Issued:                      3,142,907                   3,136,092
          Treasury:                        1,258                      11,224

        Additional paid-in capital                                                           2,153,031                    2,172,368
        Retained earnings                                                                   17,955,776                   10,453,253
        Net unrealized gain (loss) on securities available for sale (Notes 5 and 9)           (409,721)                      15,677
        Class B, treasury stock (at cost) (Note 10)                                            (16,828)                    (151,967)
                                                                                    ------------------           ------------------

      Total Stockholders' Equity                                                            20,044,443                   12,850,834
                                                                                    ------------------           ------------------

      Total Liabilities and Stockholders' Equity                                           $66,180,142                  $73,906,245
                                                                                    ==================           ==================







        See notes to consolidated financial statements.
</TABLE>








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





                                                                                        SIX MONTHS ENDED JUNE 30,
                                                                                    ---------------------------------------

                                                                                          1999                  1998
                                                                                    -----------------     -----------------
Income:
<S>                                                                                       <C>                   <C>
  Rental                                                                                  $5,216,605            $4,709,588
  Interest on mortgages - sold properties                                                  1,423,048             1,896,418
  Interest on wrap mortgages                                                                 528,173               641,496
  Interest on mortgages - related parties                                                    144,987               263,564
  Investment income                                                                          338,052                66,593
  Other                                                                                       53,468                28,930
                                                                                    -----------------     -----------------

Total                                                                                      7,704,333             7,606,589
                                                                                    -----------------     -----------------

Costs and Expenses:
  General and administrative                                                               1,365,350             1,401,101
  Interest on note payable and other                                                         215,090               568,656
  Interest on wrap mortgage debt                                                              54,586               105,367
  Amortization of  loan acquisition costs                                                      3,128                16,229
  Depreciation on non-rental property                                                         12,723                11,777
  Rental property:
    Operating expenses                                                                     2,291,040             2,043,870
    Interest on mortgages                                                                  1,483,639             1,181,120
    Real estate taxes                                                                        430,726               439,278
    Depreciation on real estate                                                              491,622               379,655
    Amortization of mortgage costs                                                           239,970               161,359
    Minority interest share of partnership income                                            257,449               214,179
                                                                                    -----------------     -----------------

Total                                                                                      6,845,323             6,522,591
                                                                                    -----------------     -----------------


Income before net gain from sales of properties, notes and securities                        859,010             1,083,998

Net gain from sales of properties, notes and securities (includes a provision
  for Federal and State taxes of $1,566,474 in 1999) (Notes 2 and 8)                       7,798,999               681,218
                                                                                    -----------------     -----------------

Net Income                                                                                $8,658,009            $1,765,216
                                                                                    =================     =================


Earnings per Common Share (basic and diluted) (Note 1-C):
  Income before net gain from sales of properties, notes and securities                        $0.24                 $0.30

  Net gain from sales of properties, notes and securities                                       2.16                  0.19
                                                                                    -----------------     -----------------

Net Income per Common Share                                                                    $2.40                 $0.49
                                                                                    =================     =================

Cash Distributions per Common Share                                                            $0.32                 $0.31
                                                                                    =================     =================

Weighted Average Number of Shares Outstanding                                              3,612,942             3,586,805
                                                                                    =================     =================



See notes to consolidated financial statements.
</TABLE>



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





                                                                                        THREE MONTHS ENDED JUNE 30,
                                                                                    ---------------------------------------

                                                                                          1999                  1998
                                                                                    -----------------     -----------------
Income:
<S>                                                                                       <C>                   <C>
  Rental                                                                                  $2,612,844            $2,342,122
  Interest on mortgages - sold properties                                                    581,995               952,817
  Interest on wrap mortgages                                                                 228,786               320,064
  Interest on mortgages - related parties                                                     89,535                98,564
  Investment income                                                                          226,645                37,780
  Other                                                                                       42,770                25,080
                                                                                    -----------------     -----------------

Total                                                                                      3,782,575             3,776,427
                                                                                    -----------------     -----------------

Costs and Expenses:
  General and administrative                                                                 698,483               738,676
  Interest on note payable and other                                                          29,241               283,625
  Interest on wrap mortgage debt                                                              23,264                52,000
  Amortization of  loan acquisition costs                                                                            8,114
  Depreciation on non-rental property                                                          6,468                 6,574
  Rental property:
    Operating expenses                                                                     1,122,281             1,005,908
    Interest on mortgages                                                                    737,334               652,983
    Real estate taxes                                                                        209,151               219,641
    Depreciation on real estate                                                              248,181               191,370
    Amortization of mortgage costs                                                            18,199               124,067
    Minority interest share of partnership income                                            128,796                42,176
                                                                                    -----------------     -----------------

Total                                                                                      3,221,398             3,325,134
                                                                                    -----------------     -----------------


Income before net gain from sales of properties, notes and securities                        561,177               451,293

Net gain from sales of properties, notes and securities                                    1,080,031               617,649
                                                                                    -----------------     -----------------

Net Income                                                                                $1,641,208            $1,068,942
                                                                                    =================     =================


Earnings per Common Share (basic and diluted) (Note 1-C):
  Income before net gain from sales of properties, notes and securities                        $0.16                 $0.12

  Net gain from sales of properties, notes and securities                                       0.30                  0.18
                                                                                    -----------------     -----------------

Net Income per Common Share                                                                    $0.46                 $0.30
                                                                                    =================     =================

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



See notes to consolidated financial statements.
</TABLE>








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


                                                                                                  SIX MONTHS ENDED JUNE 30,
                                                                                        --------------------------------------------

                                                                                             1999                        1998
                                                                                        ----------------            ----------------
<S>                                                                                     <C>                         <C>

Cash Flows from Operating Activities:
   Cash received from rental properties                                                      $5,268,840                  $4,602,224
   Interest received                                                                          2,118,885                   2,362,793
   Miscellaneous income                                                                          55,448                      27,682
   Interest paid on rental property mortgages                                                (1,493,243)                 (1,171,692)
   Interest paid on wrap mortgage debt                                                          (54,586)                   (105,367)
   Interest paid on note payable and other                                                     (200,609)                   (466,545)
   Cash disbursed for rental property operations                                             (2,522,018)                 (3,287,776)
   Cash disbursed for general and administrative costs                                       (1,506,057)                 (1,406,232)
                                                                                        ----------------            ----------------

 Net cash provided by operating activities                                                    1,666,660                     555,087
                                                                                        ----------------            ----------------


 Cash Flows from Investing Activities:
   Payments received on notes receivable                                                      1,897,826                   1,021,673
   Payments disbursed for investments in notes receivable                                                                   (60,000)
   Payments disbursed for deferred sales commission                                          (1,000,000)
   Proceeds from sale of notes receivable (net of a $400,000
    deposit on sale received in 1998)                                                        20,331,599
   Payments disbursed for additions and improvements                                           (533,114)                   (253,422)
   Proceeds from sale of property                                                                91,452                      74,550
   Purchases of securities                                                                   (7,995,738)                    (41,625)
                                                                                        ----------------            ----------------

 Net cash provided by investing activities                                                   12,792,025                     741,176
                                                                                        ----------------            ----------------

 Cash Flows from Financing Activities:
   Principal payments on mortgage debt:
     Properties owned                                                                          (206,090)                   (252,431)
     Wrap mortgage debt on sold properties                                                     (156,222)                   (238,223)
   Mortgage debt payment from proceeds of mortgage refinancing                               (3,120,190)                (10,788,825)
   Mortgage proceeds                                                                          3,195,500                  19,800,000
   Repayment of wrap mortgage debt                                                           (2,300,000)
   Mortgage refinancing repairs and replacement escrows                                                                    (558,730)
   Mortgage costs                                                                               (82,824)                   (467,404)
   Principal payments on note payable                                                       (10,395,361)                    (72,083)
   Cash distributions on common stock                                                        (1,155,486)                 (1,111,778)
   Proceeds from dividend reinvestment and share purchase plan                                   45,795                      94,975
   Distributions to minority partners                                                          (405,674)                 (3,825,839)
                                                                                        ----------------            ----------------

 Net cash (used in) provided by financing activities                                        (14,580,552)                  2,579,662
                                                                                        ----------------            ----------------


 Net (Decrease) Increase in Cash and Cash Equivalents                                          (121,867)                  3,875,925

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

 Cash and Cash Equivalents, End of Period                                                    $1,642,598                  $4,855,637
                                                                                        ================            ================



 See notes to consolidated financial statements.
</TABLE>








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


                                                                                                  SIX MONTHS ENDED JUNE 30,
                                                                                        --------------------------------------------

                                                                                             1999                        1998
                                                                                        ----------------            ----------------
<S>                                                                                     <C>                          <C>

Reconciliation of Net Income to Net Cash
  Provided by Operating Activities

Net Income                                                                                   $8,658,009                  $1,765,216
                                                                                        ----------------            ----------------


Adjustments  to  reconcile   net  income  to  net  cash  provided  by  operating
  activities:
    Depreciation and amortization                                                               747,443                     569,020
    Gain from sales of properties, notes and securities (includes a provision
      for Federal and State taxes of $1,566,474 in 1999)                                     (7,798,999)                   (681,218)
    Issuance of treasury stock                                                                   10,755                      10,440
    Amortization of discounts on notes and fees                                                (455,484)                   (546,801)
    Minority share of partnership income                                                        257,449                     214,179
Changes in assets and liabilities:
    Decrease (increase) in accounts receivable                                                 (101,640)                    157,045
    Increase (decrease) in accounts payable and accrued liabilities                             344,926                     (11,470)
    Decrease in deferred income                                                                 (13,725)                     (8,714)
    Decrease (increase) in prepaid expenses, deposits in escrow
      and deferred charges                                                                       17,682                    (644,533)
    Increase in security deposit restricted funds                                                                          (293,667)
    Increase (decrease) in security deposit liabilities                                          (1,478)                     27,886
    Other                                                                                         1,722                      (2,296)
                                                                                        ----------------            ----------------

Total adjustments                                                                            (6,991,349)                 (1,210,129)
                                                                                        ----------------            ----------------


Net cash provided by operating activities                                                    $1,666,660                    $555,087
                                                                                        ================            ================


Supplemental noncash disclosures:

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










See notes to consolidated financial statements.
</TABLE>








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

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

All significant intercompany balances and transactions have been eliminated.

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

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

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

2. MORTGAGE PORTFOLIO

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

Notes receivable - sold properties consist of:

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

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


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

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

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

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

Fairfield Towers

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

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

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

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

Grant House

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

Pinewood

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

Crown Tower and Madison Towers

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

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

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


3. REAL ESTATE

   Real estate is comprised of the following:
                                                 June 30,       December 31,
                                                  1999              1998
                                              -----------       -----------
Land                                          $ 5,453,208       $ 5,454,549
Buildings and leaseholds                       29,456,380        29,008,677
Furniture and equipment                           263,997           240,431
                                              -----------       -----------
Total real estate                             $35,173,585       $34,703,657
                                              ===========       ===========

4. MINORITY PARTNERS' INTEREST

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

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

Minority partners' interest is comprised of the following:

                                                   June 30,     December 31,
                                                     1999           1998
                                                  ----------    ------------
Home Mortgage Partnership                         $7,881,341      $7,735,342
UTB Associates                                      (180,373)       (182,599)
                                                  ----------    ------------
Total minority partners' interest                 $7,700,968      $7,552,743
                                                  ==========    ============

5. SECURITIES AVAILABLE FOR SALE

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

                                                   June 30,      December 31,
                                                     1999             1998
                                                 -----------     ------------
Cost                                             $9,254,795       $1,259,057
Gross unrealized gains                                6,243           23,433
Gross unrealized losses                            (415,964)          (7,756)
                                                 -----------     ------------
Fair value                                       $8,845,074       $1,274,734
                                                 ===========     ============
During  the six  months  ended  June 30,  1999 and 1998,  there were no sales
of securities available for sale.

6. MORTGAGE DEBT

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

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

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

7. NOTE PAYABLE TO BANK

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


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

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

8. INCOME TAXES

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

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

As previously stated, in order to retain REIT status, Presidential is required
to distribute 95% of its REIT taxable income (exclusive of capital gains).  As
of June 30, 1999, Presidential has distributed the required 95% of its 1998 REIT
taxable  income.  In addition,  although no assurances  can be given,  it is the
Company's  present  intention to distribute  all of its 1998 taxable income and,
therefore, no provision for income taxes was made at December 31, 1998.

Furthermore,   the  Company  had  taxable   income  (before   distributions   to
stockholders) for the six months ended June 30, 1999 of approximately
$4,580,000 ($1.26 per share), which included approximately $4,273,000 ($1.18 per
share) of capital gains. This amount will be reduced by 1999  distributions that
were not  utilized in reducing  the  Company's  1998  taxable  income and by any
eligible 2000 distributions that the Company may elect to utilize as a reduction
of its 1999 taxable income.

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

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

9. COMPREHENSIVE INCOME

The Company's  only element of other  comprehensive  income is the change in the
unrealized  gain (loss) on the Company's  securities  available for sale.  Thus,
comprehensive  income,  which  consists  of  net  income  plus  or  minus  other
comprehensive  income,  for the six  months  ended  June  30,  1999 and 1998 was
$8,232,611 and $1,771,544, respectively.



10. TREASURY STOCK

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

11. COMMITMENTS AND CONTINGENCIES

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




PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES

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

Results of Operations

Financial Information for the six months ended June 30, 1999 and 1998:
----------------------------------------------------------------------------

Revenue  increased  by  $97,744  primarily  as a result of  increases  in rental
income,  investment  income and other  income.  These  increases  were offset by
decreases in interest on mortgages-sold  properties,  interest on wrap mortgages
and interest on mortgages-related parties.

Rental income increased by $507,017 primarily as a result of rental income of
$488,180 at the Sunwood Apartments property, which was purchased in August
of 1998.  In addition, rental income increased by $81,994 at the Home Mortgage
Plaza and Continental Gardens properties.  These increases were offset by a
decrease of $69,690 at the Fairlawn Gardens property.

Interest on mortgages-sold properties decreased by $473,370 primarily due to the
sale of the Fairfield Towers First Mortgage in February of 1999, which decreased
interest income by $595,780. In addition, the amortization of discounts on notes
receivable  decreased by $87,922.  Amortization of discounts on notes receivable
decrease as notes mature or are sold.  These decreases were partially  offset by
the  $136,889  of  interest  received on the  $4,000,000  unsold  portion of the
Fairfield  Towers  Second  Mortgage  and  interest  of $78,925  received  on the
modified New Haven note (see below).

Interest on wrap  mortgages  decreased by $113,323  primarily as a result of the
Company's repayment in June, 1999 of the first mortgage debt on the Crown Tower
and Madison Towers  properties.  The Crown Tower and Madison  Towers  wraparound
mortgage notes were modified into one consolidated  note (the "New Haven note").
As a result of these  transactions,  wrap mortgage interest decreased by $78,441
because  the  modified  New Haven note is not a  wraparound  mortgage  note.  In
addition,  the sale of the Grant House wraparound mortgage note in January, 1999
decreased interest by $34,882.

Interest on  mortgages-related  parties  decreased  by $118,577  primarily  as a
result of  decreases  in  interest  on the  Consolidated  Loans of  $49,324  and
decreases in interest on the Overlook loan of $67,851.  The decrease in interest
on the Overlook loan is a result of principal prepayments received in 1998.

Investment  income  increased  by $271,459  primarily  as a result of  increased
dividend income on securities available for sale.

Other  income  increased  by  $24,538  primarily  as a result of a  $30,750  fee
received on the modification of the New Haven note.

Costs and expenses  increased by $322,732  primarily  due to increases in rental
property operating expenses, interest on mortgages,  depreciation on real estate
and  amortization of mortgage costs.  These increases were partially offset by a
decrease in interest  expense on note payable and a decrease in interest on wrap
mortgage debt.

Rental property  operating  expenses increased by $247,170 primarily as a result
of the  acquisition in August,  1998, of the Sunwood  Apartments  property which
increased operating expenses by $160,211. In addition, operating expenses at the
Cambridge Green property increased by $116,393. These increases were offset by a
$30,628 decrease in operating expenses at the Home Mortgage Plaza property.

Interest on mortgages  increased by $302,519 as a result of a $131,142  increase
in mortgage  interest expense on the Home Mortgage Plaza property  mortgage.  In
April,  1998  the  Company  refinanced  the  $10,788,825   mortgage  for  a  new
$17,500,000  mortgage.  In addition,  the acquisition of the Sunwood  Apartments
property increased mortgage interest expense by $158,712 and the new mortgage on
the  Fairlawn  Gardens  property  which was obtained in March,  1998,  increased
mortgage interest expense by $34,966.  These increases were offset by a decrease
of $16,379 on the  Cambridge  Green  mortgage  which was  refinanced in January,
1999.

Depreciation  expense on real estate increased by $111,967 primarily as a result
of $83,272  of  depreciation  expense on the  Sunwood  Apartments  property  and
increases  in  depreciation  expense  on a number of  properties  as a result of
additions and improvements.

Amortization of mortgage costs increased by $78,611 primarily as a result of the
write-off of unamortized  mortgage costs of $166,756 and the $31,200  prepayment
penalty fee  resulting  from the  refinancing  of the mortgage on the  Cambridge
Green  property  in January,  1999.  This  increase  was offset by a decrease of
$125,618 in  amortization of mortgage costs on the Home Mortgage Plaza property.
In 1998, the Company had written off $107,412 of  unamortized  mortgage costs in
connection  with the  refinancing  of the  mortgage on the Home  Mortgage  Plaza
property.

Interest on note payable and other  decreased by $353,566  primarily as a result
of the repayment of the note payable in February, 1999.

Interest on wrap mortgage debt decreased by $50,781 as a result of the repayment
of the first mortgage debt on the Crown Tower and Madison Towers properties
in June of 1999. In addition, in January, 1999, the Company sold the Grant House
wraparound mortgage note and the related first mortgage debt on the property was
assigned to the purchaser.

Net gain from sales of  properties,  notes and  securities are sporadic (as they
depend on the timing of sales or the receipt of  installments  or prepayments on
purchase money notes). In 1999, the net gain from sales of properties, notes and
securities was $7,798,999 compared with $681,218 in 1998:

Gain from sales recognized at June 30,                      1999          1998
  Sales of mortgage notes:                                  ----          ----
    Fairfield Towers First and Second Mortgages
    (net of taxes of $1,566,474) sold in 1999            $6,050,740
    Grant House wraparound mortgage note sold in 1999       425,000
  Deferred gains recognized upon receipt of
    principal payments on notes:
    New Haven - $1,000,000 principal payment
      received in 1999                                    1,000,000
    Pinewood - $317,662 principal prepayment
         received in 1999                                   218,534
    Overlook                                                 10,587     $603,213
    Fairfield Towers Second Mortgage                         19,466       33,898
    Towne House                                                            3,672
  Sales of property:
    Sherwood House                                           74,672       40,435
                                                         ----------     --------
                                                         $7,798,999     $681,218
                                                         ==========     ========



Financial Information for the three months ended June 30, 1999 and 1998:
----------------------------------------------------------------------------

Revenue  increased by $6,148 primarily as a result of increases in rental income
and investment  income.  These increases were offset by decreases in interest on
mortgages-sold properties and interest on wrap mortgages.

Rental  income  increased by $270,722  primarily as a result of rental income of
$250,551 at the Sunwood  Apartments  property  and  increases  of $47,725 at the
Continental  Gardens and the University  Towers  Professional  Space properties.
These  increases  were  offset by a  $27,247  decrease  in rental  income at the
Cambridge Green property.

Investment  income  increased  by $188,865  primarily  as a result of  increased
dividend income on securities available for sale.

Interest on mortgages-sold properties decreased by $370,822 primarily due to the
sale of the Fairfield Towers First Mortgage in February of 1999, which decreased
interest income by $412,484. In addition,  the amortization of discount on notes
receivable  decreased by $113,241.  These decreases were partially offset by the
$97,320 of interest  received on the $4,000,000  unsold portion of the Fairfield
Towers Second Mortgage and interest of $78,925 received on the New Haven note.

Interest on wrap  mortgages  decreased  by $91,278  primarily as a result of the
modification of the Crown Tower and Madison Towers wraparound  mortgage notes in
June of 1999 which decreased interest on wrap mortgages by $73,970. In addition,
the sale of the Grant  House  wraparound  mortgage  note  decreased  interest by
$17,308.

Costs and expenses  decreased by $103,736  primarily due to decreases in general
and administrative expense,  interest expense on note payable,  interest expense
on wrap mortgage debt and a decrease in amortization  of mortgage  costs.  These
decreases  were  offset by  increases  in rental  property  operating  expenses,
interest on  mortgages,  depreciation  expense on real estate and an increase in
minority interest share of partnership income.

General and  administrative  expenses decreased by $40,193 primarily as a result
of decreases of $148,541 in franchise tax expense resulting from the partnership
distribution received in 1998 from the proceeds of the mortgage on Home Mortgage
Plaza.  This  decrease was offset by increases in salary  expense of $28,956 (of
which $16,117 relates to executive bonuses), increases in payroll tax expense of
$14,252, increases in professional and directors fees of $38,486 and an increase
in executive pension plan expense of $25,463.

Interest  on note  payable  and other  decreased  by $254,384 as a result of the
repayment of the note payable in February, 1999.

Interest on wrap mortgage debt decreased by $28,736 as a result of the repayment
of the first  mortgage debt on the Crown Tower and Madison Towers properties and
the sale of the Grant House wraparound mortgage note.

Rental property  operating  expenses increased by $116,373 primarily as a result
of the addition of the Sunwood  Apartments  property which  increased  operating
expenses by $83,254.  In addition,  operating  expenses at the  Cambridge  Green
property  increased  by $61,633.  These  increases  were offset by a decrease in
operating expenses of $35,440 at the Home Mortgage Plaza property.

Interest on mortgages increased by $84,351 primarily as a result of the addition
of the Sunwood Apartments  property which increased mortgage interest expense by
$79,245.

Depreciation  on real estate  increased by $56,811  primarily as a result of the
addition of the Sunwood Apartments property which increased depreciation expense
by  $41,698.  In  addition,  additions  and  improvements  to  other  properties
increased depreciation expense by $15,113.

Amortization  of mortgage costs  decreased by $105,868  primarily as a result of
the decrease of $107,914 in  amortization of mortgage costs on the Home Mortgage
Plaza  property.  In 1998,  the mortgage on the Home Mortgage Plaza property was
refinanced and the mortgage costs  pertaining to the prior mortgage were written
off.

Minority  interest share of partnership  income increased by $86,620 as a result
of an increase in partnership income on the Home Mortgage Plaza property.

Net gain from sales of  properties,  notes and  securities are sporadic (as they
depend on the timing of sales or the receipt of  installments  or prepayments on
purchase money notes). In 1999, the net gain from sales of properties, notes and
securities was $1,080,031 compared with $617,649 in 1998:

Gain from sales recognized at June 30,                   1999           1998
  Deferred gains recognized upon receipt of              ----           ----
    principal payments on notes:
    New Haven - $1,000,000 principal payment
      received in 1999                               $1,000,000
    Overlook                                              5,359        $596,854
    Fairfield Towers Second Mortgage                                     17,123
    Towne House                                                           3,672
  Sale of property:
    Sherwood House                                       74,672
                                                    -----------        ---------
                                                     $1,080,031        $617,649
                                                    ===========        =========
Balance Sheet

Net mortgage  portfolio  decreased by  $15,175,187  primarily as a result of the
sale of the Fairfield  Towers First and Second Mortgage  Notes,  the sale of the
Grant House wraparound  mortgage note and the principal  prepayment  received on
the Pinewood note receivable.  The sale of the Fairfield Towers First and Second
Mortgages resulted in a net decrease of $12,980,517, the sale of the Grant House
wraparound  mortgage  note  resulted  in a net  decrease of  $2,224,287  and the
principal  prepayment  of $317,662  received  on the  Pinewood  note  receivable
resulted  in a net  decrease of $99,128  after  recognizing  a deferred  gain of
$218,534.  In addition,  although the effect on net mortgage  portfolio is zero,
the Company  received a $1,000,000  principal  payment on the New Haven note and
recognized a deferred gain on sale of $1,000,000.

Securities  available for sale  increased by $7,570,340 as a result of purchases
of  $7,995,738  in  marketable  equity  securities,  primarily  interest-bearing
corporate  preferred  stocks,  offset by a $425,398 decline in the fair value of
securities available for sale.

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

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


Accrued  liabilities  decreased by $984,526 primarily as a result of the payment
of a $1,000,000 deferred brokerage commission,  which arose from the sale of the
New Haven properties in 1984.

Net  unrealized  gain (loss) on securities  available  for sale  decreased by
$425,398 as a result of the decrease in the fair value of securities available
for sale.

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

Year 2000 Compliance

The Company has completed its assessments of its information  technology systems
("IT")  and  its  non-information  technology  systems  ("NIT")  for  Year  2000
compliance.  All  Year  2000  sensitive  systems  have  been  updated  and  date
sensitivity testing is in progress,  with a target completion date of September,
1999.  Requests  have been sent and  responses  have been received for Year 2000
compliance confirmations from tenants,  mortgagors,  third party vendors and the
Company's property management company.  All responses that have been received by
the Company have verified Year 2000  compliance or completion of compliance in a
timely manner.

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

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

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

Forward-Looking Statements

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

Liquidity and Capital Resources

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

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

At June 30, 1999, Presidential had $1,642,598 in available cash and cash
equivalents,  a decrease of $121,867  from the  $1,764,465 at December 31, 1998.
This  decrease in cash and cash  equivalents  was due to cash used in  financing
activities of  $14,580,552  offset by cash  provided by operating  activities of
$1,666,660 and investing activities of $12,792,025.

Operating Activities

Presidential's  principal  source  of cash  from  operating  activities  is from
interest  on its  mortgage  portfolio,  which  was  $1,863,690  in 1999,  net of
interest  payments on wrap  mortgage debt and note  payable.  In 1999,  net cash
received  from  rental  property  operations  was  $995,905,  which  is  net  of
distributions  from  partnership  operations  to  minority  partners  but before
additions and improvements and mortgage amortization.

Investing Activities

Presidential  holds a portfolio  of mortgage  notes  receivable,  which  consist
primarily of notes arising from sales of real properties previously owned by the
Company.  Some  of  these  notes  wrap  around  underlying  mortgage  debt  (the
"Underlying  Debt") which is paid by Presidential  only out of funds received on
its mortgage portfolio relating to the Underlying Debt. During 1999, the Company
received  principal payments of $1,741,604 on its mortgage portfolio (net of any
principal  payments  attributable to the Underlying  Debt), of which  $1,667,427
represented  prepayments,  which are  sporadic  and  cannot be relied  upon as a
regular source of liquidity.

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

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

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

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

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

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

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

During 1999, the Company invested  $533,114 in additions and improvements to its
properties.

The Company  also holds a portfolio of  marketable  equitable  securities  which
increased by  $7,570,340,  primarily as a result of the  $7,995,738  purchase of
interest-bearing  corporate  preferred stocks,  offset by a decrease in the fair
value of securities of $425,398.


Financing Activities

The Company's indebtedness at June 30, 1999, consisted of $39,597,251 of
mortgages.  The mortgage  debt,  which is secured by individual  properties,  is
nonrecourse  to  the  Company  with  the  exception  of the  $265,929  Mapletree
Industrial Center mortgage,  which is secured by the property and a guarantee of
repayment by Presidential.  In addition, some of the Company's mortgages provide
for  personal   liability  for  damages   resulting   from   specified  acts  or
circumstances,  such as for  environmental  liabilities  and  fraud.  Generally,
mortgage debt  repayment is serviced  with cash flow from the  operations of the
individual  properties.  During  1999,  the Company  made  $206,090 of principal
payments on mortgage debt on properties which it owns.

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

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

During 1999,  Presidential declared and paid cash distributions of $1,155,486 to
its shareholders and received proceeds from its dividend  reinvestment and share
purchase plan of $45,795.









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 June 30, 1999.


SIGNATURES


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


PRESIDENTIAL REALTY CORPORATION
       (Registrant)


DATE:  August 10, 1999             By:  /s/ Jeffrey F. Joseph
                                      ---------------------
                                      Jeffrey F. Joseph
                                      President



DATE:  August 10, 1999             By:  /s/ Elizabeth Delgado
                                      ---------------------
                                      Elizabeth Delgado
                                      Treasurer