U.S. Securities and Exchange Commission
Washington, D.C.  20549

Gentlemen,

We are transmitting herewith Form 10-QSB for the quarter ended June 30, 2003
for Diversified Realty, Inc.


                               Diversified Realty, Inc.



                               s/D. Mellinger
                                 D. Mellinger
                                 Accountant




<PAGE>

                	U.S. Securities and Exchange Commission
                        	Washington, D.C.  20549


                              	FORM 10-QSB

(Mark One)
[X]	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

       For the quarterly period ended         June 30, 2003


[ ]	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

       For the transition period from                   to

       Commission file number              0-2864


                            DIVERSIFIED REALTY, INC.
       (Exact name of small business issuer as specified in its charter)


          Montana                                  81-0268110
(State or other jurisdiction of         (IRS Employer Identification No.)
incorporation or organization)

              128 Second Street South, Great Falls, Montana   59401
	                   (Address of principal executive offices)

                              (406) 727-2600
	                       (Issuer's telephone number)


                              Not Applicable
(Former name, former address and former fiscal year, if changed since last
report)

Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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


                	APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
	                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court. Yes         No


                     	APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:

           Class                       Outstanding at June 30, 2003
$.10 Par Value Common Stock                     5,367,591 Shares


Transitional Small Business Disclosure Format (Check One): Yes    ; No  X


<PAGE>


                        	DIVERSIFIED REALTY, INC.


                                 	INDEX

                             	JUNE 30, 2003

                                                             	Page Number
PART I

Condensed Financial Statements:

  Balance Sheet
    June 30, 2003                                                  2

  Statements of Income and Comprehensive Income -
    Three Months and Six Months Ended June 30, 2003 and 2002       3

  Statements of Cash Flows -
    Six Months Ended June 30, 2003 and 2002                        4

  Notes to Financial Statements		                           5


Management's Discussion and Analysis
  of the Statements of Income		                           6


PART II

  Other Information	  	                                   7

  Signatures	                                                   8

  Certification							9-10

                                     1

<PAGE>


                        	DIVERSIFIED REALTY, INC.

                             	BALANCE SHEET

                          	AS OF JUNE 30, 2003


     ASSETS

Current Assets

  Cash                                                        $  2,254,704

  Marketable Securities						     3,386

  Due From Parent Company                                          111,492

  Prepaid Income Taxes                                              30,706

   Total Current Assets                                          2,400,288


Property, Plant and Equipment, Net                                 181,001

            TOTAL ASSETS                                      $  2,581,289



    LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

  Accounts Payable and Accrued Expenses                       $     15,324

             Total Current Liabilities                              15,324

Stockholders' Equity
  Common Stock - $.10 Par Value,
  11,000,000 shares authorized,
  5,375,000 shares issued                                          537,500
  Additional Paid-In-Capital                                     1,929,408
  Retained Earnings                                                 99,928
  Accumulated Other Comprehensive Income			     2,007
Cost of Common Stock in Treasury                                   (2,878)

             Total Stockholders' Equity                          2,565,965

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                    $  2,581,289


                      	See Notes to Financial Statements

                                      2
<PAGE>


                        	DIVERSIFIED REALTY, INC.

                         	STATEMENTS OF INCOME
			      AND COMPREHENSIVE INCOME

                              For The Three Months         For the Six Months
                                     Ended                        Ended
                                   June 30,                      June 30,
                                2003      2002             2003       2002

Operating Revenues           $ 22,433    $ 23,350        $ 44,163   $ 48,836

Operating Expenses             21,571      19,171          39,881     32,550

                                  862       4,179           4,282     16,286

Income Tax Expense              3,599         800           1,724     10,550

    Net Income               $  4,461    $  4,979         $ 6,006   $ 26,836


Other Comprehensive Income (Loss)
   Net of Income Taxes:

   Unrealized Holding
   Gains (Losses)		  292         --              328        --

      Comprehensive Income   $  4,753   $  4,979          $ 6,334   $ 26,836



                     	See Notes to Financial Statements


                                     3
<PAGE>


                      	DIVERSIFIED REALTY, INC.

                      	STATEMENTS OF CASH FLOWS

                                                    For The Six Months Ended
                                                             June 30,
                                                         2003         2002

     CASH FLOWS FROM OPERATING ACTIVITIES

Net Cash From Operations                               $ 14,903   $   18,255

Income Taxes Paid in Cash                                   --          (50)

     Net Cash Provided By
       Operating Activities                              14,903   $   18,205


     CASH FLOWS FROM FINANCING ACTIVITIES

Cash Purchases of Treasury Stock                            (42)        (43)

Net Cash Advances
   From (To) Parent Company                               2,641        4,700


     Net Cash Provided (Used) By
       Financing Activities                               2,599        4,657

NET INCREASE (DECREASE) IN CASH                          17,502       22,862

CASH - BEGINNING OF PERIOD                            2,237,202    2,225,554

CASH - END OF PERIOD                                 $2,254,704   $2,248,416


                      	See Notes to Financial Statements

                                     4
<PAGE>


                          DIVERSIFIED REALTY, INC.

                      	NOTES TO FINANCIAL STATEMENTS

                              	JUNE 30, 2003


In the opinion of management, all adjustments necessary (consisting of only
normal recurring accruals) have been made to the unaudited financial
statements to present fairly the financial position as of June 30, 2003 and
the results of the Company's operations for the six months and three months
ended June 30, 2003 and 2002 and cash flows for the six months ended
June 30, 2003 and 2002.

The results of operations for the six months and three months ended
June 30, 2003 and 2002 are not necessarily indicative of the results to be
expected for the full year.


Parent -

M Corp, Great Falls, Montana owns approximately 95% of the outstanding shares
of the Company.



                                  5
<PAGE>



                       DIVERSIFIED REALTY, INC.

                  	MANAGEMENT'S DISCUSSION AND ANALYSIS

                       OF THE INCOME STATEMENT

                            June 30, 2003

A summary of the period to period changes in items included in the statements
of income is shown below.


                                        COMPARISON OF

                           THREE MONTHS                 SIX MONTHS
                               ENDED	                   ENDED
                             JUNE 30,	                  JUNE 30,
                          2003 AND 2002                 2003 AND 2002
<TABLE>
<S>                    <C>         <C>               <C>          <C>

Revenues	   $ (917)       (3.9%)       	 $ (4,673)       (9.6%)

Expenses	     2,399       12.5%              7,331       (22.5%)

Net Income	     (517)      (10.4%)           (20,830)      (77.6%)

</TABLE>


   Revenues decreased $4,673 (9.6%)in the first six months of 2003 as compared
with the first six months of 2002 due primarily to a decrease in interest
revenues of $5,654 (38%).  Interest revenues decreased due to a decrease in
interest bearing deposits and intereset rates earned by the company.  Operating
expenses increased $7,331 (22.5%) in the first six months of 2003 as compared
with the first six months of 2002.  The provision for income tax expense
increased$8,826 (83.7%) in the first six months of 2003 as compared with the
first six months of 2002, due to a change in the recording of income tax
provisions, excluding nontaxable income.


                                   6


<PAGE>

                       	DIVERSIFIED REALTY, INC.

                              	PART II

                         	OTHER INFORMATION


                           	JUNE 30, 2003



ITEM 1	LEGAL PROCEEDINGS

       None

ITEM 2	CHANGES IN SECURITIES AND USE OF PROCEEDS

       None

ITEM 3	DEFAULTS UPON SENIOR SECURITIES

       None

ITEM 4	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

       None

ITEM 5	OTHER INFORMATION

       None

ITEM 6	EXHIBITS AND REPORTS ON FORM 8-K

       None



                                   7
<PAGE>



                               	SIGNATURES




In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.





                           	 DIVERSIFIED REALTY, INC.
                                 	Registrant




Date:  August 1,2003             s/A. Semenza
                                        A. Semenza,
                                        Assistant
                                        Secretary-Treasurer



Date:  August 1, 2003             s/D. Mellinger
                                        D. Mellinger,
                                        Accountant




                                  8

<PAGE>


                         	CERTIFICATION


I, Paul J. McCann, certify that:

1.  I have reviewed this quarterly report on Form 10-QSB of
    Diversified Realty Inc.

2.  Based on my knowledge, this quarterly report does not contain any
    untrue statement of a material fact or omit to state a material fact
    necessary to make the statements made, in light of the circumstances
    under which such statements were made, not misleading with respect to
    the period covered by this quarterly report;

3.  Based on my knowledge, the financial statements, and other financial
    information included in the quarterly report, fairly present in
    all material respects the financial condition, results of operations
    and cash flows of Diversified Realty, Inc. as of, and for, the
    periods presented in this annual report.

4.  Diversified Realty, Inc.'s other certifying officers and I are responsible
    for establishing and maintaining disclosure controls and procedures (as
    defined in Exchange Act Rules 13a-14 and 15d-14) for Diversified Realty,
    Inc.  We have:

    a.  designed such disclosure controls and procedures to ensure that material
        information relating to Diversified Realty, Inc. is made known to us
        by others within those entities, particularly during the period in which
        this quarterly report is being prepared.

    b.  evaluated the effectiveness Diversified Realty, Inc. disclosure controls
        and prodecures as of a date with 90 days prior to the filing date of
        this quarterly report (the "Evaluation Date"); and

    c.  presented in this quarterly report our conclusions about the
        effectiveness of the disclosure controls and procedures based on our
        evaluation as of the Evaluation Date;

5.  Diversified Realty, Inc.'s other certifying officers and I have disclosed,
    based on our most recent evaluation, to Diversified Realty, Inc. auditors
    and the audit committee of Diversified Realty, Inc. board of directors
    (or persons performing the equivalent functions):

    a.  all significant deficiencies in the design or operation of internal
        controls which could adversely affect Diversified Realty, Inc.'s
        ability to record, process, summarize and report financial data, and
        I have identified for Diversified Realty, Inc.'s auditors any
        material weaknesses in internal controls; and

    b.  any fraud, whether or not material, that involves management or
        other employees who have a significant role in Diversified Realty,
        Inc.'s internal control; and

6.  Diversified Realty, Inc.'s other certifying officers and I have indicated
    in this annual report whether there were significant changes in internal
    controls or in other factors that could significantly affect internal
    controls subsequent to the date of our most recent evaluation, including
    any corrective actions with regard to significant deficiencies and
    material weaknesses.

    Date: August 1, 2003             s/Paul J. McCann
                                           Paul J. McCann



                                  9

<PAGE>

                         CERTIFICATION PURSUANT TO
                         18 U.S.C. SECTION 1350
                         AS ADOPTED UPRSUANT TO
                      SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Diversified Realty, Inc. on Form
10-QSB for the period ending June 30, 2002 as filed with the Securities
and Exchange Commission on the date hereof (the "Report"), I, Paul J. McCann,
Representative of Diversified Realty, Inc., certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Subanes-
Oxley Act of 2002, that:

1.  The report fully compiles with the requiremtns of section 13(a) or
    15(d) of the Securities Exchange Act of 1934; and

2.  The information contained in the Report fairly presents, in all
    material respects, the financial condition and result of operations
    of Diversified Realty, Inc.

Date: August 1, 2003                s/Paul J. McCann
                                          Paul J. McCann,
                                          Representative


                                10

<PAGE>